Snapshot Web3

January 3, 2024

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Regulatory and Legal News

Investors Forecast 88% Probability to SEC Approving Spot Bitcoin ETF

Investors are expressing an 88% probability on decentralized prediction platform Polymarket that the US Securities and Exchange Commission (SEC) will approve spot Bitcoin ETFs by January 15, 2024. This significant increase from 50% a month ago aligns with recent reports suggesting the SEC is on the verge of notifying 14 applicants of the spot Bitcoin ETFs about their approval status. The market response to this anticipation has been substantial, with Bitcoin's value surging over 55% since early October, recently crossing $45,000. While approval could broaden the crypto market to more investors, some traders are hedging against potential price drops, cautious of a "Sell-the-News" event if approvals are delayed or denied.

China experiencing increased crypto-related corruption, bribery cases

China is reportedly witnessing a surge in corruption and criminal activities associated with cryptocurrencies and digital financial instruments, according to discussions at the 2023 Annual Conference of the Chinese Association for the Study of Integrity and Law. Experts highlighted the exploitation of advancements in digital currencies and electronic gift cards for corrupt transactions, pointing out the challenges in monitoring these sophisticated forms of corruption. Cryptocurrency "cold storage," allowing discreet cross-border transfers, was discussed as a notable method employed by corrupt individuals. Legal experts emphasized the urgent need for China to upgrade its legal framework and technological capabilities to effectively combat this new wave of corruption.

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Innovation and Launches

South Korean blockchain Klaytn onboards gold RWA DeFi platform

The Klaytn Foundation, the entity behind South Korea's public blockchain Klaytn, has onboarded $GPC (Gold-Pegged Coin) and its supporting DeFi platform Goldstation onto its blockchain. Klaytn, developed by South Korean internet giant Kakao, claims that $GPC, launched by CREDER, is the first gold token offered on DeFi outside of Ethereum and the first tokenized gold without percentage-based transaction fees. The move aims to leverage the Klaytn blockchain's low gas fees, enabling users to make small investments in gold cost-effectively. Goldstation plans to commence services, including $GPC staking, on January 24, initially catering to South Korean residents with future global expansion plans.

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NFT, Gaming and Metaverse

Steamboat Willie's Mickey Mouse Goes NFT After Entering Public Domain

One of the first depictions of Mickey Mouse, featured in the 1928 animated short "Steamboat Willie," has entered the public domain. To commemorate this occasion, a limited edition of 2,000 non-fungible tokens (NFTs) featuring Steamboat Willie's Mickey Mouse was minted on New Year's Eve. Alexander Taub, cofounder of Truth, launched the Ethereum NFT collection, allowing content creators to use this version of the character without associating it with Disney or paying rights. Each NFT was minted for 0.001 ETH (approximately $2), and the tokens depict Mickey at the ship's rudder. This version of Mickey Mouse is the only one in the public domain until now.

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Scams and Hacks

Orbit Chain exploited, $81.6 million drained from cross-chain bridge

Orbit Chain's cross-chain bridging protocol, Orbit Bridge, was exploited on December 30th, resulting in over $81 million being stolen across major cryptocurrencies such as USDT, ETH, and WBTC. Preliminary examination suggests the attacker leveraged the Tornado Cash mixing service and exploited vulnerabilities in Orbit Chain's Ethereum vault. The stolen funds included $30 million in USDT, $10 million in USDC, 21.7 million in ETH, $9.8 million in WBTC, and $10 million worth of DAI. Orbit Chain is coordinating its investigation with the Korean National Police Agency and KISA, along with Theori, a Korea-based global security firm. The project has requested major global crypto exchanges to freeze the stolen assets, and its native ORC token experienced a 13% decline after news of the exploit surfaced.

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Price Action

Polygon Price Prediction: MATIC Eyes $1.20 As Bullish Momentum Builds

Polygon's native token, MATIC, is experiencing a noticeable bullish trend as it enters 2024, drawing attention from investors and analysts. MATIC has seen a 2.04% increase on New Year's Eve and a broader trend that resulted in nearly a 17% gain over the past week. Currently trading at $1.02 with a 24-hour surge of 5.38%, analysts are optimistic about its future performance. "Altcoin Sherpa" predicts a potential rise to $1.20 in the short to medium term, while Ali Martinez anticipates a climb to $1.25 in the near future, with a long-term target of $1.82 based on technical analysis. The market is showing signs of building momentum, and bulls aim to surpass the $1.50 threshold.

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Interesting Reads

Why You Should Buy Bitcoin Over Diamonds: The Future of Luxury Investment

The traditional allure of diamonds is diminishing as lab-grown alternatives gain traction, challenging the diamond market. Lab-grown diamonds, now recognized as authentic luxury items, present a threat to the conventional diamond industry, offering similar aesthetic appeal at a fraction of the cost. As diamond prices decline and the industry faces challenges, Bitcoin emerges as a compelling investment option, positioned for growth, especially amid expectations of a spot Bitcoin ETF approval. Bitcoin's limited supply and decentralized nature make it attractive to investors seeking a hedge against inflation and market volatility, marking a significant shift in luxury goods and investment preferences. The declining diamond market and the rise of Bitcoin highlight evolving societal values and investment strategies.

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Resource of the Day

What Are Sandwich Attacks in Crypto and How to Prevent Them?

Sandwich attacks, a form of maximal extractable value (MEV) exploitation in crypto, involve strategically placing orders before and after a targeted transaction to manipulate prices. To prevent such attacks, traders can set low slippage to limit price range, use larger liquidity pools, pay higher gas fees for faster transactions, employ Telegram bots with private transaction functions, utilize private RPC networks to hide transactions, run their own nodes for more control, consider MEV Blocker as an RPC endpoint, and integrate Flashbots Protect to connect to a private RPC network and prevent front-running. These measures collectively enhance transaction security and reduce vulnerability to unfair trading practices.

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Miscellaneous

Michael Saylor Selling MicroStrategy Shares Worth $216M, To Buy Bitcoin

Michael Saylor, the founder and Chairman of MicroStrategy, is reportedly selling $MSTR shares valued at approximately $216 million, potentially with the intention of increasing his Bitcoin holdings. The move comes amid the anticipation of a spot Bitcoin ETF approval before the January 10, 2023 deadline. Saylor's decision to sell shares aligns with MicroStrategy's significant position as the largest institutional holder of BTC. The company currently holds around 189,150 BTC, purchased for a total of $5.9 billion over the past few years. If approved, Bitcoin ETFs could potentially manage larger amounts than MicroStrategy's existing holdings, prompting speculation about the impact on crypto stocks and MicroStrategy's stock price.

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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.