Snapshot Web3

October 3, 2023

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Regulatory and Legal News

Parliamentary committee calls for shutdown of Worldcoin in Kenya

A Kenyan parliamentary committee has advised shutting down Worldcoin in the country for persistently collecting personal data from residents, including potentially minors. They also recommended investigating Worldcoin's companies for potential criminal charges and emphasized the need for a comprehensive framework for digital assets and virtual asset service providers in Kenya. Lawmakers expressed concerns about the use of retinal scans for identity verification, stating it poses a threat to statehood. Regulators in Germany, Argentina, France, and the UK have also raised concerns about Worldcoin's activities.

IMF working paper proposes country-level assessment matrix for crypto risks

The IMF has introduced a country-level assessment matrix (C-RAM) to evaluate crypto risks and suggest regulatory responses. It involves three steps: assessing macroeconomic impact, examining traditional financial indicators, and considering global risks. When applied to El Salvador, which legalized Bitcoin, it identified market, liquidity, and regulatory risks. The IMF has consistently advised against El Salvador's Bitcoin adoption due to concerns about financial stability and consumer protection. Regulators are working to keep pace with the evolving crypto landscape, recently releasing policy recommendations in collaboration with the Financial Stability Board.

Investors drop class-action lawsuit against Terraform Labs and Do Kwon

Investors have dropped a class-action lawsuit against Terraform Labs and co-founder Do Kwon, who were facing fraud allegations. The dismissal, filed on September 28, did not specify the reasons but stated it was without prejudice. The lawsuit, filed by investor Nick Patterson in June 2022 after Terraform Labs' collapse, had garnered attention for its alleged role in a major crypto market crash. Kwon and the company faced scrutiny globally for their involvement in an alleged scheme to defraud investors. In February, the U.S. SEC filed a civil suit against Kwon and Terra. Kwon's legal situation in Montenegro remains uncertain.

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Innovation and Launches

Swiss bank UBS launches tokenized money market fund on Ethereum

UBS, a leading Swiss bank, has initiated a live pilot of a tokenized version of its variable capital company (VCC) fund, a part of Singapore’s central bank-led Project Guardian. The move is a significant step in understanding funds tokenization and aims to enhance market liquidity and access for clients. This pilot is facilitated through UBS Tokenize, the bank's in-house tokenization service, utilizing Ethereum's smart contract capabilities for activities like redemptions and fund subscriptions. This initiative aligns with UBS's global strategy to leverage blockchain technology for fund distribution and issuance. The tokenization of real-world assets, offering transparency and security, is gaining traction in various industries.

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NFT, Gaming and Metaverse

ZTX Unveils Exciting Metaverse Update to Introduce Virtual Labor

ZTX is launching a beta version introducing virtual labor, where users can collect materials, craft items, and monetize them with NFTs. This innovation aims to boost engagement, creativity, and income generation within the metaverse. ZTX is committed to redefining the standards for virtual world experiences and plans to share the beta launch date soon.

Which NFT Collections Are the Future of the NFT Market?

In the midst of a crypto bear market, the NFT market has also seen a substantial decline. Data from CryptoSlam indicates a 34.70% drop in NFT market sales volume in the last 30 days, with a 24.90% decrease in NFT buyers. Despite this, certain NFT collections are showing resilience. These include the Bored Ape Yacht Club (BAYC) with its exclusive benefits, Mutant Ape Yacht Club (MAYC) as a more affordable option, the pioneering CryptoPunks, the appreciating Dreadfulz, and the algorithmically-created DeGods. These collections are considered potential survivors in the evolving NFT landscape.

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Interesting Reads

Hong Kong could be a ‘tailwind’ for lagging crypto activity in Asia: Chainalysis

Recent crypto advancements in Hong Kong could reinvigorate East Asia's crypto activity, which declined due to China's previous bans. Chainalysis notes Hong Kong's positive initiatives and crypto-friendly regulations. Despite its smaller population, Hong Kong maintains an active crypto market by transaction volume. It received $64 billion in crypto between July 2022 and June 2023, compared to China's $86.4 billion. Experts suggest Hong Kong's crypto push doesn't necessarily indicate China's overall stance on cryptocurrencies. Notably, Hong Kong aims to attract the crypto asset management industry, setting it apart from other regions.

Hashing It Out: What happens when cloud meets Web3?

On the Hashing It Out podcast, Howie Jiang from Tencent Cloud Europe and Fakhul Miah of Elastos discuss the convergence of cloud technology and Web3. They highlight Tencent Cloud's substantial investment in Web3 and their recent partnership with Elastos to advance the Web3 space. Elastos, focusing on digital sovereignty, particularly aims to enhance internet identity verification using decentralized identifiers and verifiable credentials. The conversation also covers how their collaboration utilizes cloud software to address internet challenges, especially in identity verification. They touch on the necessary steps for global Web3 adoption and consider the impact of regulations on the industry.

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Quick Links

Ethereum futures ETFs garner lukewarm reception on first day of trading

Day one trading volume across all nine products stood at less than $2 million.

Harvard Releases Case Study on Ripple Business Model

A top figure in the XRP community spotlights a Harvard Business School case study on Ripple’s business model, noting its implications on Ripple’s IPO valuation.

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Miscellaneous

Chainalysis axes another 15% of staff citing difficult market conditions

Blockchain analytics firm Chainalysis is cutting 15% of its workforce, approximately 135 employees, due to ongoing challenges in the bear market. This is the second round of cuts this year, reflecting reduced demand for commercial products. The reduction will primarily affect marketing and business development teams focused on the private sector. This move is in line with a broader trend in the crypto and blockchain industry, with many companies having to make staff cuts in response to market conditions.

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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.