Twitter Embraces Crypto 🐤🫂🪙

Bitcoin ETF Imminent as Grayscale wins in court, ZTX shows the power of real utility.

Author

Manan Vora
August 30, 2023

Snapshot Web3

August 30, 2023

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Regulatory and Legal News

Twitter has successfully obtained a Rhode Island money transmitter license, permitting it to facilitate cryptocurrency payments and transactions in the US. This move enhances its suite of crypto-related features, which previously included Bitcoin tipping and NFT profile images. The license underscores Twitter's commitment to integrating cryptocurrencies into its platform, potentially boosting mainstream digital currency adoption.

The US Court of Appeals has ruled in favor of Grayscale in its dispute against the SEC regarding the conversion of Grayscale Bitcoin Trust (GBTC) into an ETF. The court found the SEC's denial of Grayscale's proposal to be "arbitrary and capricious." This ruling does not guarantee approval for GBTC's ETF conversion but invalidates the SEC's past reasons for denial. The decision holds significance for other ETF proposals, including those from BlackRock, Bitwise, Fidelity, VanEck, Galaxy & Invesco, and Wisdomtree. Bitcoin's price surged about 7% in response to the news.

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Innovation and Launches

HashKey Exchange in Hong Kong has gained regulatory approval to allow retail investors to trade Bitcoin and Ethereum with fiat. This supports Hong Kong's efforts to legitimize its crypto industry. The exchange aims to register millions of users by 2025 and will focus on these two cryptocurrencies, excluding derivatives and stablecoins.

OpenZeppelin has launched Defender 2.0, an upgraded security solution for blockchain apps. It ensures end-to-end security from coding to deployment and monitoring. The version comprises four modules for code publishing, vulnerability tracking, secure deployment, and event monitoring. Already operational, it supports 30+ blockchains, including Ethereum and Polygon. Matter Labs and TheGraph are among the early adopters. Defender 2.0 aims to enhance blockchain app security and minimize risks.

Binance has launched "Send Cash," a crypto-to-bank account payment solution in Latin America, enabling users in nine countries, including Colombia and Argentina, to directly transfer cryptocurrency funds to bank accounts. The move addresses challenges of limited access to bank accounts and increasing crypto adoption for remittances due to ongoing inflation issues in the region. Binance Pay facilitates the service, contributing to cryptocurrency's practical use in everyday transactions.

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NFT and Metaverse

ZTX onboarded over 200,000 users on Arbitrum via a virtual hoodie airdrop, addressing the user onboarding challenge in Web3. The hoodie highlights ZTX's interoperability between Web2 and Web3. Prominent creators are supporting ZTX's transition initiatives. Upcoming ZTX projects include launching 2,000 NFT homes on OpenSea and releasing an updated private beta for its on-chain platform. Recently, ZTX secured $13 million in funding led by Jump Crypto to further its Web3 expansion.

The SEC fined Impact Theory $6 million for selling unregistered securities through NFTs, igniting concerns about regulations in the broader NFT industry. While some see NFTs as art, there's debate about whether large-scale NFT projects resemble investment structures. The SEC's focus on Impact Theory’s 10% resale royalty might indicate that NFTs with creator royalties could be viewed as securities. This perspective could impact many in the NFT market, especially given recent debates over these royalties.

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Funding

Dubai's BitOasis crypto exchange has secured investment from CoinDCX, among other investors. BitOasis gained an operational license in Dubai and plans to offer broker-dealer services for digital assets. CoinDCX, recently transformed into India's first crypto unicorn, invested after raising over $90 million. This comes amidst regulatory uncertainty in India's crypto sector, which led CoinDCX to cut 12% of its workforce.

AI crypto signals platform yPredict has raised $3.6 million to develop its user-friendly ecosystem. The platform uses AI to provide advanced analytical tools for informed trading decisions. It features a prediction marketplace where financial data scientists can share predictive model results through subscriptions. yPredict combines traditional ARIMA statistical models with modern LSTM models for price predictions. The platform plans to launch various products, including yPredict Analytics, Marketplace, and Terminal, catering to different financial needs.

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Interesting Reads

BitTorrent, a pioneering peer-to-peer file-sharing protocol, has shaped the way we share and distribute content online. By enabling users to exchange files directly, bypassing conventional central servers, which has its roots in the history of decentralization, it represented a paradigm shift in file sharing. By enabling users to exchange files directly, bypassing conventional central servers, which has its roots in the history of decentralization, it represented a paradigm shift in file sharing.

The U.S. government is believed to possess a BTC wallet, ranking fifth largest globally, with 94,643 BTC (around $2.46 billion). The wallet is linked to the 2016 Bitfinex hack and also has ties to the Silk Road, a notorious dark web marketplace operational between 2011 and 2013. The marketplace solely used BTC for transactions. Recent investigations by the IRS's Criminal Investigations Unit and the U.S. Attorney’s Office for Northern California have connected the stolen Silk Road Bitcoins to multiple addresses in 2013. These seized assets are likely to be auctioned, consistent with prior government actions. Notably, since 2020, the U.S. has confiscated over 215,000 BTC. The recent transfer of 49,000 BTC to Coinbase has sparked discussions in the crypto community regarding potential market implications. The U.S. government's role and intentions in the crypto space are being closely watched.

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Quick Links

The U.S. Securities and Exchange Commission (SEC) is poised to decide on seven Bitcoin (BTC) spot exchange-traded fund (ETF) applications by Sept. 4. This follows a court ruling criticizing the SEC's denial of Grayscale's Bitcoin ETF. The outcome doesn't guarantee future approvals, and if the SEC doesn't challenge the ruling, they might need to approve Grayscale's application or provide a new rationale for its rejection. Revoking existing Bitcoin futures ETFs is deemed improbable.

Circle's CEO, Jeremy Allaire, announced that USDC will soon be natively available on the Base Network. This update, shared on social platform X (previously Twitter), emphasizes how USDC by Circle will become the official USDC form within the Base Network ecosystem, replacing the Ethereum-originated USDbC liquidity over time. The integration brings potential benefits, including increased liquidity and a self-sustaining ecosystem with enhanced efficiency and security. The move also aims to provide more opportunities for developers to incorporate stablecoin features in their decentralized apps and make it easier for institutions to bridge fiat and crypto. Base Network will work with ecosystem apps to ensure a smooth liquidity transition. While this integration is seen as promising, its real impact on the Base Network's user attraction remains to be observed.

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Resource of the Day

Event management in the metaverse encompasses organizing virtual and augmented reality events, necessitating steps from goal setting to post-event activities. While traditional events prioritize physical interaction, metaverse events provide a global, immersive experience. However, they come with challenges like potential anonymity-driven harassment. Costs vary based on event complexity, chosen platform, and integrated features. Ensuring safety and inclusivity in this new virtual realm is paramount. The article is available as an NFT to support crypto journalism.

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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.

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