Snapshot Web3

October 26, 2023

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Regulatory and Legal News

Crypto firms have already breached new UK promo rules 221 times, says FCA

UK's FCA reports 221 breaches of new crypto marketing rules since early October. Firms fail to provide adequate risk warnings and make misleading claims about crypto safety. Legitimate businesses also affected, as seen with Binance partner Rebuildingsociety. FCA collaborates with platforms to halt banned promotions and funds flow. New rules apply to all businesses, mandating clear risk warnings and prohibiting incentivized crypto investments. FCA believes these measures will enhance consumer protection and drive adoption.

Sam Bankman-Fried will testify at criminal trial, say defense lawyers

Former FTX CEO, Sam Bankman-Fried, will testify in his criminal fraud case, according to his defense attorney, Mark Cohen. After the prosecution presents its case, Bankman-Fried's team plans to call three witnesses, including Bankman-Fried himself. The defense case is estimated to take around three days. The U.S. government is set to conclude its case on October 26, with the defense likely finishing the following day. The trial, which has been on hiatus since October 19, is expected to resume on October 26. The outcome of Bankman-Fried's testimony may influence the need for rebuttal witnesses.

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Innovation and Launches

Ledger hardware wallet rolls out cloud-based private key recovery tool

Ledger, a hardware wallet company, has introduced Ledger Recover, a cloud-based private key recovery tool, despite prior community criticism. This paid subscription service by Coincover allows users to back up their Secret Recovery Phrase (SRP), providing access to their crypto assets. Ledger ensures high security by fragmenting the encrypted SRP, distributed across three independent companies. Ledger Recover is optional and available to select countries. The identity verification process is distinct from KYC checks conducted by centralized exchanges, requiring only a valid government-issued document. The service is priced at $9.99 per month and was launched after a temporary pause due to community concerns.

Bitfinex Securities announces tokenized bond

Bitfinex Securities, a platform for tokenized securities, is set to list its first tokenized bond, ALT2611, in November. This 36-month bond, denominated in Tether (USDT), will be issued by global microfinance leader, Mikro Kapital. ALT2611 will encompass risks associated with microfinance organizations, small financial institutions, and more across various countries, including those along the Silk Road. Bitfinex's CTO, Paolo Ardoino, sees this move as the dawn of a new era for capital raising, leveraging deep liquid markets. The bond will start trading at 100 USDT with a minimum investment of 125,000 USDT, governed by Luxembourg law.

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NFT, Gaming and Metaverse

NFT market remains sluggish despite crypto’s rise

Despite a notable surge in digital asset prices, particularly Bitcoin, which rose by as much as 22% in the past week, the NFT market remains sluggish. Floor prices for major NFT projects like CryptoPunks and Pudgy Penguins have dropped by 4% and 5% respectively over a 7-day period. The Nansen NFT-500 index is also experiencing a decline, currently at 308 compared to its yearly high of 1,700 in October. However, there are some positive indicators, including a rise in overall trading volumes and an increase in "active projects" with significant sales.

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Scams and Hacks

Telegram trading bot Maestro refunds users 610 ETH after router exploit

Following a smart contract exploit on October 24th that resulted in a loss of 280 ETH, the Maestrobots team on Telegram is refunding affected users. They've returned a total of 610 ETH, valued at over $1 million, covering the full losses. The refunds included both affected tokens and ETH. For nine of the 11 exploited tokens, Maestrobots chose to buy and refund tokens, spending 276 ETH to secure users' assets. Two other tokens with liquidity issues were refunded in ETH, with an additional 20% added. The attack did not compromise any wallets, only the MaestroRouter. The breach impacted 106 user addresses and various tokens, most of which have recovered. Maestrobots operates on Ethereum, BNB Chain, and Arbitrum networks.

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Interesting Reads

The Future of Cryptocurrencies: Leading Currencies in the Coming Years

According to Chainaliz's 2023 global cryptocurrency adoption index, the United States ranks fourth in adoption, following India, Nigeria, and Vietnam. North America leads in cryptocurrency usage, with an estimated value of $1.2 trillion. Stablecoin activity in the US has shifted from licensed to unlicensed services, prompting a call for balanced regulations to support industry growth and consumer safety. Canada ranks 19th in global adoption.

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Funding

Neon Machine raises $20M Series A for blockchain-based Call of Duty competitor ‘Shrapnel’

Neon Machine, a Web3 gaming developer, has raised $20 million in Series A funding for their upcoming game, Shrapnel. The game, described as a AAA title, combines first-person shooter gameplay with multiplayer components. What sets it apart is its integration of Web3 and blockchain, giving players full ownership of in-game assets. Shrapnel is set for early-access testing in December for paid subscribers, with a free-to-play release slated for 2024. Neon Machine also plans to license its Web3 developer’s API platform, GameBridge, post-launch.

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Miscellaneous

Bank of Spain embraces ‘digital euro,’ explains its benefits

Spain's central bank, Banco de España, has voiced support for the potential advantages of a digital euro, emphasizing that physical cash limits the benefits of digitalization. The digital euro is seen as vital for electronic payments in the financial system, offering offline payment options and ensuring privacy levels akin to cash transactions. The Bank of Spain clarified that users' data in online transactions would only be visible to their financial institutions, not the CBDC infrastructure provider. The preparation phase for the digital euro is set to conclude by 2025, with a final issuance decision pending.

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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.