24 May

On Monday, in an interview for CNBC, Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), affirmed his perspective that Bitcoin and Ethereum are commodities and ought to fall under the CFTC remit.

The CFTC chairman said that it would analyze a wide range of assets to determine which of these assets qualify as commodities or securities. When asked about the connection between the SEC and the CFTC, he answered that the agencies are attempting to offer investor assurance.”

See Also: CNBC: Bitcoin, ethereum are commodities, says CFTC Chair Rostin Behnam (Video)

Video game retailer GameStop Corp (NYSE: GME) today launched its non-custodial, browser-based Ethereum wallet similar to MetaMask. The wallet leverages Loopring’s ZK-rollup technology, an Ethereum layer-2 scaling protocol for cheaper and faster transactions. The wallet can be downloaded as a browser extension from the chrome web store.

The wallet would let users store, send, and receive cryptocurrencies and non-fungible tokens (NFTs) across various crypto apps. It will support NFT trading through the upcoming launch of GameStop’s NFT marketplace in Q2 2022.

Though the wallet is non-custodial, it does track certain user information, including IP address, GPS coordinates, and information near to the user’s device, according to their privacy policy.

It also monitors the user’s network, clicks, mouse position and keystroke logging.”

See Also: Interest in Ethereum Name Service reaching ‘critical mass’

“The Seoul Metropolitan Police have asked various crypto exchanges to ban Luna’s capability of withdrawing company funds. Seoul police are seeking to ban the entity from withdrawing suspectedly embezzled funds.

Terraform Labs CEO Do Kwon is already under the financial crimes microscope and is facing a tax evasion investigation by a South Korean police unit known as the ‘Grim Reaper.'”

See Also: Litecoin confidential transactions spook Korean exchanges
See Also: Terra’s Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins
See Also: Goldman Sachs Says DeFi’s Interconnections Can Increase Systemic Risk

The e-commerce giant is testing the NFT waters with digital hockey collectibles. Following the Gretzky launch, eBay said it will continue its push into NFTs later this year with digital reinterpretations of various Sports Illustrated covers.

The Gretzky NFTs—unique blockchain tokens that signify ownership—are on the Ethereum sidechain Polygon and were issued through a partnership with Sports Illustrated and NFT platform OneOf. Some of the NFTs contain Gretzky’s digitized autograph.”

“The Onyx Digital Assets network uses tokens for short-term trading in fixed income markets, enabling investors to lend out assets for as little as a few hours without them actually leaving their balance sheets.

Goldman Sachs (GS) has also previously tapped JPMorgan’s network for repo trading. Some $300 billion of intraday repo deals have been conducted on the Onyx network since its launch in 2020.

We see this as part of our efforts to utilise the technology for the whole trading and operations lifecycle as the market evolves.”

See Also: PayPal looks to embrace all possible crypto and blockchain services
See Also: Fed Finds Unbanked Americans Are Turning to Crypto at a Higher Rate

“Lockheed and Filecoin plan to identify a satellite or other space-faring platform that can hold the technology to operate an InterPlanetary File System (IPFS) node, identify that platform’s needs and try and identify a test mission by August 2022.

IPFS is an open-source data storage and sharing protocol. The idea is to reduce latency when downloading data from remote locations, such as the moon, said Marta Belcher, the head of policy and general counsel at Protocol Labs.

Joe Landon, vice president of advanced programs development at Lockheed, said the move is meant to anticipate an emerging “space economy.”

In the future, we’ll have one satellite refueling another. That’s a transaction that takes place entirely in space that doesn’t really have a nexus back on Earth. Decentralization makes sense for that. [We’re] redesigning a lot of the technologies [that] just aren’t ready to work in space.”

“An L2 scaling solution takes advantage of the security of an L1 chain like Ethereum and alleviates traffic on it by “rolling up” a number of transactions into a single package to be settled at once. The incoming Optimism airdrop could mark the beginning of a rapid influx of users to L2s.

L2s right out of the gate, more secure and decentralized than alt-L1s and are built to use sound money on a credibly neutral platform.

Several major decentralized apps (DApps) are already deployed on L2s. Decentralized exchange (DEX) SushiSwap and yield aggregator Curve are on Arbitrum. Meanwhile, crypto derivatives protocol Synthetix and DEX Uniswap are on Optimism.

As of the time of writing, Arbitrum is the largest L2 on Ethereum with $2.65 billion in TVL, according to L2beat. The entire Ethereum L2 ecosystem has a TVL of $4.77 billion. These numbers may be set for an explosion if the right forces conspire to draw users and capital away from other L1s.”

“I think at the high level for us, Web 3 is the term for the movement whereas crypto is the underlying tech that makes it possible.

A16z compared take rates, or the fee a marketplace charges on a transaction from a third party, between Web 2 and Web 3. Meta (FB) had nearly 100% take rates across Facebook and Instagram compared to the 2.5% take rate for non-fungible token (NFT) marketplace OpenSea.

A16z conducted new data analysis to compare the payouts of Ethereum-based NFT creators with Web 2 creators. Last year, primary sales and royalty payments of Ethereum-based NFTs totaled $3.9 billion, four times the $1 billion that Meta reserved for creators through 2022.

While Web 2 currently holds far larger user numbers, the upstart rival wins in terms of payouts. Overall, Web 3 paid out $174,000 per creator compared to the $0.10 per user for Meta, $636 per artist for Spotify and $2.47 per channel for YouTube.

Using a number of on-chain metrics, a16z estimates a wide range of between 7 million and 50 million active Ethereum users. The firm estimates that Web 3 could potentially reach 1 billion users by 2031, meaning we are currently still in the early innings.

Analogizing to the early commercial Internet, that puts us somewhere around the year 1995 in terms of its development timeline. The internet reached 1 billion users by 2005 – incidentally, right around the time Web 2 started taking shape amid the founding of future giants such as Facebook and YouTube.”

“Cointelegraph’s team is on the ground in Davos, Switzerland to bring in the latest updates from one of the most significant global events of the year. The topics of discussion among world leaders include blockchain technology, the role of central bank digital currencies (CBDCs), Web3 and nonfungible tokens (NFTs).

Crypto used to be a bad word in Davos. Now, it’s being talked about, and there are more and more cryptocurrency companies taking part.”