“A new report from the Proof of Stake Alliance calls attention to a little-debated tax provision that would require some peer-to-peer crypto transactions to be reported to the government. And unlike other tax code reporting violations, violations of this provision – Tax code section 6050I – are felonies.
The law requires recipients to verify the sender’s personal information and record their Social Security number, the nature of the transaction and other information, and report the transaction to the government within 15 days.
POSA, a crypto lobbying group, called for the reporting mandate to be struck from the infrastructure bill in a report published Friday, calling it intrusive and overly broad. Applied to digital assets, which could include cryptocurrencies and non-fungible tokens (NFTs), Sutherland believes that the law would be nearly impossible to comply with.
Sutherland wrote that the provision has largely escaped public scrutiny because it uses a nearly 40-year-old law that was meant to apply to in-person cash transactions over $10,000.”
“$1.2 billion worth of ETH was withdrawn from centralized exchanges on Thursday to mark a new record in short-term outflows from exchanges, leading to speculation about imminent price gains for Ether as supply shrinks on many trading venues.
IntoTheBlock noted that Ether’s price rallied by 60% in the 30 days after $1 billion was pulled from centralized trading platforms in April.
Bitcoin (BTC) has also seen steady outflows from centralized trading venues since peaking at 17% of supply in May. According to on-chain analytics firm Glassnode, centralized exchanges’ BTC reserves have fallen to their lowest level since February 2018.“
“Shortly after Texas securities regulators issued crypto lender Celsius with an order to appear in court on Friday, New Jersey is piling on by filing a cease-and-desist order. New Jersey and Texas were also among the states to slap crypto lender BlockFi with similar actions in July.
If you sell securities in NJ, you need to comply with NJ’s securities laws. Our Bureau of Securities has ordered an NJ-based company – Celsius – to stop offering interest-bearing accounts.
Earlier this week, BlockFi CEO Zac Prince said crypto lenders need federal guidance on the status of accounts that provide interest on crypto deposits.
We’re not going to decide what box crypto lending belongs in based on what New Jersey does or what Texas does or what any one other state does.”
“Blockchain technology will reshape financial services in the coming decade in the same way broadband internet reshaped media companies, CMCC Global co-founder Charlie Morris said.
Twenty years ago, broadband enabled explosive growth of the internet. We are now at the broadband moment for blockchain technology. Larger scalability, clearer regulation landscape and increasing institutional adoptions are signs that we are standing at the pivot point.
Where some see regulatory threats, Morris sees opportunity, as what is occurring now is ‘actually regulators regulating the space into existence.'”
“A security token offering (STO) operating on the Bitcoin sidechain Liquid Network has been approved by Germany’s Federal Financial Supervisory Authority, BaFin. This is the first approval of an STO issued on a Bitcoin sidechain by BaFin.
Luxembourg-based video game publisher Exordium’s EXOeu token is now available to all German investors on digital asset marketplace STOKR.”
“The U.S. Treasury Department is preparing a report on stablecoins and their potential risks to the financial system, Bloomberg reported Thursday. Treasury officials reportedly met with representatives from financial institutions to discuss stablecoin regulations and other crypto issues last week.
How stablecoins are actually used remains top-of-mind for the Treasury officials working on this report, Bloomberg said, citing anonymous sources.”
“WeWork said Revolut will use bitcoin to pay for its 300-employee office space at a WeWork site in Dallas, its largest office in the U.S. The office space provider first began accepting cryptocurrency as payment in April.
We’re excited to continue on our rapid growth trajectory with an innovative partner like WeWork that affords us the flexibility to pay using cryptocurrency – a technology whose future we vehemently believe in.”
“The leading blockchain-based music platform is getting attention from the stars. With more than six million monthly users, the platform claims to be the largest decentralized consumer product on earth.
Aoki said that he has spent more time making music for his non-fungible tokens than working on traditional music in the last six months.
I’ve known that blockchain will change the world since I invested in Coinbase five years ago and I believe it might be the most important technology to ever hit the music industry.
The platform tries to serve as an alternative to mainstream apps like Spotify or Apple Music by being governed by holders of its AUDIO token. The approach seeks to eliminate the middlemen who have long been a thorn in the side of many a musician.”
“The Avalanche Foundation said in a statement it will use the funds ‘to support and accelerate the rapid growth of DeFi, enterprise applications and other use cases on the Avalanche public blockchain.’
Large-scale liquidity is a clear focus for the young chain. Two weeks ago the Avalanche Foundation announced a $180 million “Avalanche Rush” incentive program.”
“Nate Chastain, head of product at the non-fungible token (NFT) marketplace OpenSea, has resigned following allegations of insider trading. Chastain, the user alleged, was snapping up cheap NFTs before OpenSea planned to feature them on the site’s homepage, and then quickly selling them after the increased attention sent the prices up.
The company said it has implemented new policies to prevent this kind of activity from being repeated.“
“The appearance of the golden cross marks a dramatic comeback for bitcoin since a “death cross” appeared in the price chart three months ago. At the time, bitcoin was descending from the all-time high near $65,000 reached in February.
Bitcoin was changing hands at around $9,500 in May 2020, the last time a golden cross appeared. Over the remainder of the year, the price tripled, and then doubled again early this year before peaking.”
“The storied magazine gave a nod to the crypto wunderkind in its 2021 edition, which dropped Wednesday. The honorific comes as Ethereum continues to grow as a major force in the world of finance and beyond.
‘What makes Vitalik so special, though, is that he is a builder’s builder,’ Reddit co-founder Alexis Ohanian wrote for Time. ‘I’ve never been more excited about the potential of the internet thanks to him.'”
“Engineers succeed in restoring service across Solana’s network of node-runners after the system was in the dark for almost 20 hours. Even so, service remained spotty immediately following the patch.
The Solana validator community successfully completed a restart of Mainnet Beta after an upgrade to 1.6.25. Dapps, block explorers, and supporting systems will recover over the next several hours, at which point full functionality should be restored.”
“Coinbase has sold $2 billion worth of debt via junk bonds, up from an initial target of $1.5 billion due to strong market interest. The move highlights crypto’s evolution from a fringe asset class to one under the spotlight of mainstream financial types.
The strong demand is clearly a big endorsement by debt investors.
The exchange joins Michael Saylor’s MicroStrategy, which sold $500 million worth of bonds in June to fund its bitcoin purchases.”
“The financial services giant urged the regulator to approve its fund, citing increased investor interest in crypto. Fidelity also pointed to the rising number of investors holding bitcoin and similar funds worldwide.
The SEC has yet to approve a bitcoin ETF. Presently, there are more than 10 applications pending. Fidelity originally filed its Wise Origin Bitcoin Trust in March with a follow-up response in June.”
“Cathie Wood, CEO of Ark Invest, has doubled down on her prediction that the price of Bitcoin (BTC) will grow tenfold in the next five years and said the growth of decentralized finance (DeFi), nonfungible tokens (NFT) and the Ethereum 2.0 upgrade has massively increased Ark’s confidence in Ether’s (ETH) future.
Our confidence in Ethereum has gone up dramatically as we have seen the beginning of the transition from proof-of-work to proof-of-stake.
I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now.
Her BTC price thesis is based on more companies adding Bitcoin to their balance sheets and institutional investors allocating around 5% of their portfolios toward Bitcoin or other cryptos.”
“Tether Ltd., the company behind the world’s largest stablecoin, has pushed back against lingering speculation that its dollar-pegged currency USDT is backed by commercial paper issued by the now cash-strapped Chinese property giant Evergrande Group.
Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so.
Tether’s denial comes amid Evergrande’s deepening liquidity crisis. The troubled property giant with $300 billion in liabilities warned Wednesday that it could default on its massive debts.”
“Allegations of insider trading at OpenSea appeared last night, courtesy of a Twitter account called @ZuwuTV, and quickly went viral. In a thread, the Twitter user assembled a paper trail of transaction receipts tied to Nate Chastain, OpenSea’s head of product.
In a statement issued Wednesday, OpenSea said it uncovered evidence of insider trading by one of its employees.
Yesterday we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly.
Insider trading on NFTs is, of course, not explicitly illegal yet, because there’s so little legal precedent for digital assets on the blockchain, but OpenSea is coming down hard anyway. The company says it’s implementing new policies that prohibit this kind of behavior.“
“The outage began early Tuesday after “resource exhaustion” on the network brought blockchain validation to an hours-long halt. On-chain activity froze across Solana’s multibillion-dollar ecosystem of trading, staking and lending projects. It is the second time in two weeks that Solana’s mainnet cluster experienced “instability.”
The outage impacts everything built on Solana, but the issue is the underlying [layer 1].
A flood of transactions pushed the network past its limits early Tuesday. The activity triggered a forking that knocked multiple nodes offline. Engineers tried and failed to triage the problem. Engineers were rushing to push a patch to Solana node runners. Solana developers have decided to restart the network after over seven hours of downtime.
It is unclear what implications the Tuesday outage may have for Solana. One source in the developer community pointed out that some projects have time-sensitive operations, like liquidations and IDO launches. Those could become thorny the longer the network remains down.”
“The Ethereum Foundation (EF) and Ethereum Name Service (ENS) are backing a proposed system for secure sign-in using Ethereum from decentralized identity software firm Spruce. The firm aims to give users control of their own online identities, offering an alternative to handing over one’s personal data to the likes of Google, Apple and Facebook.
The Ethereum ecosystem already has tens of millions of monthly active wallet users signing with their cryptographic keys for financial transactions, community governance, and more. These secure wallets can also be used to sign in to Web2 services.
By standardizing this workflow, millions of Ethereum users will be able to use a digital identity that they fully control to seamlessly access the web.”
“CACEIS, which has €4.2 trillion ($4.96 trillion) in assets under custody and €2.2 trillion ($2.6 trillion) in assets under administration, is working with Swiss-based custody technology provider Metaco. Headquartered in Paris, CACEIS has a strong presence in Europe, especially Germany.
BNY Mellon set off a rush of bank activations when it emerged in May that it was working with custody tech firm Fireblocks to hold crypto on clients’ behalf.”
“The Consumer Price Index rose 5.3% over the past 12 months, below economists’ average prediction of a 5.4% increase. Core CPI rose 0.1% last month, lower than economists’ expectation of 0.3% and the slowest increase the U.S. has seen in six months.
The soft inflation report may encourage the U.S. central bank’s stimulus program, known as “quantitative easing,” to persist longer than expected. Many cryptocurrency investors speculate that QE could weaken the dollar, pushing up the value of bitcoin.
While August’s lower-than-expected numbers may be regarded as a positive sign for transitory inflation, they could also be a sign of increasing macroeconomic uncertainty as COVID-19 variants fill hospitals even in highly vaccinated countries.”
“EY will adopt Polygon’s scaling products to allow it to boost transaction volumes and to provide “predictable costs” and settlement for business customers. EY will also have an option to move transactions onto the public Ethereum network.
Polygon’s “commit chain” has been retrofitted by EY to create permissioned, private industry chains that take advantage of new models used to verify transactions. The company said its new “industry chains” would provide customers with the security of a closed system while retaining a close relationship with the public Ethereum mainnet.
Working with Polygon provides EY teams with a powerful set of tools to scale transactions for clients and offers a faster road map to integration on the public Ethereum mainnet.”
“The Ethereum Layer-2 protocol says it has created the underlying infrastructure for any business to build a game, marketplace or NFT application.Immutable provides a Layer-2 scaling solution for NFTs on Ethereum capable of processing 9,000 transactions per second with zero gas fees.
Immutable is the developer of NFT games Gods Unchained and Guild of Guardians, which it intends to scale using the new funds. The money will also go toward strengthening partnerships with gaming companies.”
“They haven’t yet registered with us, even though they have dozens of tokens that may be securities.
That is the most explicit Gensler has been about having crypto trading platforms register as a securities trading platform. In prepared remarks for the committee published Monday, he wrote that any exchange that has a security listed must register with the SEC.
Sen. Pat Toomey (R-Pa.) pushed Gensler on a lack of explicit guidance on how a cryptocurrency might qualify as a security under federal law.
Based on your public statements, it’s pretty clear that you believe that some are securities, but others are not. So I’m frustrated by the lack of helpful SEC public guidance, explaining how you make this distinction.”
“The pair of provisions intends to prevent individuals from reporting a tax loss by selling cryptocurrencies at a loss but immediately (meaning within 30 days) buying the same cryptocurrencies. The other provision intends to ensure taxpayers properly report capital gains, even if they purchase an offsetting position on their investments.
The wash sale rule in section 1091 prevents taxpayers from claiming tax losses while retaining an interest in the loss asset. The amendments made by this section apply to taxable years beginning after December 31, 2021.
These proposals anticipate raising $16 billion in tax revenue from the cryptocurrency sector. The overall House is expected to vote on the bill in two weeks.”
“Peer-to-peer digital asset marketplace Paxful has integrated the Lightning Network. According to a company statement, the global integration will serve over seven million Paxful users, allowing them to transfer bitcoin “in a matter of seconds with much lower fees.”
The value limit for each Lightning transaction will be capped at $750, for now.
Founded in 2015, Paxful doubled its size over the last 12 months, reaching a 400 employees team. In August, the Lightning Network surpassed 25,000 active nodes for the first time.”
“Arbitrum, a so-called layer 2 scaling solution that works alongside the Ethereum blockchain to accelerate transactions, has seen a near 10-fold rise since Friday in the total value locked in decentralized finance (DeFi) projects.
The project launched Aug. 31 and currently holds $2.23 billion in assets in various DeFi projects, up from $238 million on Friday. For comparison, the rival layer 2 solution dYdX has $329 million locked, while Optimism, another closely tracked project, has $155 million.
The number of unique addresses on Arbitrum has also seen an impressive three-fold rise to 70,000 since Friday, while the network’s daily transaction volume has surged above $250,000 in just ten days.”
“Bitcoin traded with great volatility around $44,000 on Monday as some traders were duped by a fake news release stating that Walmart is partnering with Litecoin (LTC). The cryptocurrency is roughly flat over the past 24 hours after Walmart stated that it “had no knowledge of the press release issued by GlobeNewswire, and it is incorrect.”
Also on Monday, MicroStrategy announced that it bought an additional 5,050 BTC. The company now holds 114,042 BTC, which were acquired for a total of $3.16 billion and at an average price of $27,713 per bitcoin.
On the regulatory front, stablecoins are under increasing pressure as U.S. officials discuss launching a formal review into whether tether and other stablecoins threaten financial stability, according to Bloomberg. President Biden’s working group plans to issue stablecoin recommendations by December.
Long-term bitcoin holders appear to be unshaken by the sell-off last week.
We can also see that LTH (long-term holders) owned supply has reached 79.5% of all BTC coins this week, which is equivalent to the level reached in October, prior to the bull market kicking off.”
“Gensler will emphasize that almost all crypto trading platforms need to register with the SEC in testimony he plans to give before the Senate Committee on Banking, Housing and Urban Affairs on Tuesday. A copy of his prepared remarks was released on Monday.
Gensler wrote that while not every crypto token qualified as a security, the fact that platforms have allowed the trading of so many tokens means it is highly likely that at least some securities are being offered on the platforms.
Make no mistake: To the extent that there are securities on these trading platforms, under our laws they have to register with the commission unless they qualify for an exemption.”
“Ark Investment Management revised the prospectus for its ARK Next Generation Internet ETF (ARKW) to open the possibility of investing in crypto exchange-traded funds (ETFs) in Canada.
Bloomberg ETF analyst Eric Balchunas speculated that Ark was looking to replace ARKW’s investment in GBTC with a Canadian ETF.ARKW holds over 8.5 million shares of GBTC, making it the second-largest holding in the fund. Balchunas noted that GBTC is down 22% year to date, while the Canadian ETF has dropped 6%. ‘That’s pretty significant dispersion.'”
“One of the key projects in digitalization until 2030 will be the launch of the digital ruble.
The bank has been contemplating issuance of its own central bank digital currency (CBDC) since last October, when it published its first analytical report outlining potential designs for a CBDC. Bank of Russia will start testing the digital ruble in January.
We’re actively developing the platform at the moment. We don’t see any obstacles for launching the digital ruble; however, we will test it in pilot first.”
“Marvel and DC seem to be breaking away from the established tradition of allowing creators and artists to sell original prints of published works due to their reported plans for entry into the nonfungible token (NFT) space. Both Marvel and DC reportedly have designs on leveraging their vast collection of comic book art in the expanding NFT scene.
By preventing artists from selling derivative works based on their comic book creations, the likes of Marvel and DC could be precluding creators from a significant revenue source.”
“I believe that the multi-chain ecosystem will generally follow a power law distribution where there will be a handful of massive winners (the 80%) and a long-tail of smaller ones (the 20%). I believe that Ethereum will remain the king of smart contract platforms (and I also believe it will flip Bitcoin in market cap) but I think the jury is still out on which other chains will fill in that last 20%. Will it just be Ethereum layer 2’s? Will there be some other smart contract chains that gain long-term traction? Will something like Arweave or Filecoin become massive winners with decentralized data storage?
I don’t blame people for speculating on these things because being the top smart contract platform is a $100 trillion+ opportunity – it’s essentially the same size opportunity as the internet. Though even if a chain/platform only captures just 2% of that opportunity it’s still worth $2 trillion – now you can probably see why there’s such intense speculation on so-called “Ethereum killers”.
Over the coming years, we’ll find out which projects fit into the 80% category, which fit into the 20% one and, of course, which projects basically lose all relevance.”
“After multiple betas over years, followed by multiple audits from some of the biggest in the industry, we’ve spared no effort to produce and refine a first ever decentralised staking protocol for Ethereum.
Rocket Pool will launch to mainnet on the 6th October, 2021 00:00 UTC. The mainnet staking site will be open to the public, running from https://stake.rocketpool.net.
Rocket Pool is a base layer protocol for staking in ETH2 and it aims to align the interests of those who want to stake without running a node, with those who want to run a node and generate a higher return on their own staked ETH during the process.”
“The future of humanity rests on our ability to coordinate. I truly believe that Ethereum’s impact on the world will be significantly better coordination.
For the first time ever, we have a transparent, immutable, programmable, substrate upon which to build new institutions. Institutions that cannot be corrupted even if their founders are. In other words, we can now invent new mechanisms upon an unprecedentedly solid and incorruptible foundation, and use this to fundamentally change how resource allocation is coordinated. Improving coordination means better resource allocation, less corruption, and more symmetry between value created and value captured.
DAOs are the fundamental building block for this problem space. Their permissionless, mission-driven, and community-run architecture represents a step function improvement for the future of work.
DAOs are still quite primitive. As always, we’re early. Yet, despite just barely learning to crawl, DAOs are already teaming with life and activity. Together, GitcoinDAO and BanklessDAO have compiled a comprehensive report that distills the insights of over 400 DAO creators.”
“The powerful combination of decentralized finance (DeFi) protocols, on-chain asset management and smart contract technology is heralding the arrival of the decentralized version of ETFs, tokenized and fully collateralized baskets of digital assets called ETPs (exchange-traded portfolios).
These “baskets” are fully collateralized by the pooled assets that are held within the relevant smart contract. These “smart pools” can then be tokenized so investors can deposit funds into the smart contract, receiving a corresponding number of tokens that represent a given share in the underlying assets.
In addition, ETPs are non-custodial, meaning the investor remains in control of their deposited assets, and can withdraw them at any time by redeeming the corresponding tokens. Goodbye, brokerage fees and market hours.
As layer 2 blockchain protocols help reduce what have been the traditional gas fees associated with the deposit and withdrawal of smart contract funds, ETPs begin to look like very attractive products from a cost perspective.
ETFs have come a long way in the last 30 years, but trying to use that framework for crypto is a bit of a non-starter, even as tantalizing as it might be to some in the industry. With the advent of products that concentrate both investment and investment tools in crypto innovation – products like ETPs – investors will be able to participate in more opportunities offering better liquidity and less friction than ever.
For the old guard, it will require even more trust in a new paradigm that discards old inefficiencies. For the new guard, it will require even more imagination to not dress up tomorrow’s solutions in those same inefficiencies.”
“Given our current focus on The Merge, this post isn’t an “update” but a deep dive into the roadmap evolution which led to the current architecture choice. In a few weeks, expect a similar post going over the details of how the Ethereum network will operate post-merge.”
“With full support for legacy and EIP-1559 transactions, our new browser extension makes it easy for you to access the most accurate and actionable gas estimations. Gas Platform inspects all public pending Ethereum transactions and predicts the minimum gas price required for next-block confirmation.
Go hands-on with our Gas Estimator extension today and receive free updates once every 5 seconds. Commercial Blocknative customers will receive updates once every second.”
“Most recently, Texas implemented two laws to ensure that cryptocurrencies are recognized under state commercial law. While Texas appears to be following in the footsteps of other innovative states, members of the Texas Blockchain Council shared that bigger plans are underway.
There are discussions to integrate Bitcoin into the Texas Constitution.
There is the idea for a Texas constitutional amendment to allow property tax payment in Bitcoin. This would put Bitcoin on par with gold at the Texas Comptroller’s Office and Treasury.
Florida and Tennessee have [also] recently been exploring ways to accept BTC for property tax payments. By implementing a Bitcoin amendment into the Texas Constitution [however], Texas aims to go above and beyond pure legislation. Constitutional amendments require a vote from the citizens in Texas, which would be a greater legal standard than enacted crypto laws.”
“At 21:44:51 UTC tonight, Cardano will usher in smart contracts by implementing the Alonzo hard fork. But due to problems with its design, several decentralized applications have delayed their launch, and Alonzo may only go live with a “few toy smart contracts” developed by Cardano’s creator.
The first Cardano dApp, a multipool exchange named Minswap, shut down shortly after it launched because it struggled to process multiple transactions at once—“the very thing you need for DeFi.” IOHK tweeted that the way Cardano handles unspent transactions affords “greater security” and “fee predictability.”
Still, due to the issues, it’s looking unlikely that Alonzo will launch with any killer applications. Several decentralized exchanges have said that they’ll delay their launch until definitive solutions are found to the transaction bottleneck. A troubled launch could be taken as a major step back.”
“The SIX Digital Exchange (SDX) has been authorized by Swiss financial regulator FINMA to offer trading and custody of digital assets.
Having first announced it was building an exchange for digital assets based on blockchain technology in July 2018, SIX has been granted two licenses from FINMA to operate a stock exchange and central securities depository (CSD). It appears to be the first major stock exchange to be starting its own digital asset exchange.
This is an important milestone in providing institutional investors with a safe and robust infrastructure meeting all of the core requirements of a traditional exchange and CSD infrastructure.
It is not clear yet exactly which digital assets will be supported, though SIX’s initial announcement three years ago made reference to tokenizing traditional securities.”
“The Bank of International Settlements (BIS) is signaling to central banks that they must prepare for the advent of central bank digital currencies (CBDC). Cœuré’s speech reinforced global regulators’ growing apprehension towards stablecoins and DeFi solutions.
We should roll up our sleeves and accelerate our work on the nitty-gritty of CBDC design. CBDCs will take years to be rolled out, while stablecoins and crypto assets are already here. Central banks have to act while the current system is still in place – and to act now.
Global stablecoins, DeFi platforms and big tech firms will challenge banks’ models.
Cœuré also said that central banks need to consider a number of implications including how public and private money should coexist in new ecosystems, and if central bank money, for instance, should be used in DeFi rather than private stablecoins.”
“According to The Washington Post on Friday, Diem is facing difficulties smoothening regulatory wrinkles with senior policymakers in the Biden administration. Feelers from Washington say key policymakers like Treasury Secretary Janet Yellen and several members of Congress are against privately issued stablecoins.
Even with the full weight of Facebook’s significant lobbying power in Washington, the digital currency project is yet to get off the ground.”
“Bitcoin was trading around $45,000 at press time and is down about 8% over the past week. Some analysts expect BTC to consolidate with support nearby at the 200-day moving average. Ether is holding support above the $3,000 breakout level that was achieved in August.
The macro and on-chain (blockchain) pictures remain consistent, and therefore we believe these mid-cycle liquidations are good opportunities to consolidate positions.
Analysts and traders are also monitoring regulatory risk, which could damp sentiment in the crypto market.”
“A judge ruled today that Apple can no longer block the use of external payment options in iOS apps. Currently, app developers on the platform can only route payments through Apple, which takes up to a 30% cut of all revenue for in-app purchases.
Apple is hereby permanently restrained and enjoined from prohibiting developers from including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to in-app purchasing.
This may ultimately open the door to much easier use of cryptocurrency wallets to pay for goods and services, and a wider array of mobile payment options for iOS users. It’s a major blow to Apple and its “walled garden” ecosystem strategy.”
“Miami’s SCOPE Art Show is working with YellowHeart, a blockchain-based live event ticketing platform, to sell VIP tickets in the form of non-fungible tokens (NFTs). YellowHeart, which is built on the Polygon blockchain, aims to change the way tickets are sold by creating a more transparent ticket sale experience.
This unique set of minted tickets will feature exclusive editioned artwork by emerging and celebrated artists.”
“El Salvador’s move to embrace Bitcoin has ruffled the feathers of bond investors, with yields spiking as investors signal uncertainty for the emerging economy.
However, El Salvador’s move to recognize Bitcoin as legal tender is not the sole force exerting bearish pressure on the country’s bond market.
Other pundits have emphasized Bukele’s sudden ousting of the country’s constitutional tribunal in May as a major source of negative sentiment regarding El Salvador’s economic outlook, with Bukele having fired the country’s attorney general and top judges.”
“Payments giant Mastercard has agreed to buy CipherTrace, a firm that scans blockchains for illicit transactions. The surprise acquisition announced Thursday gives Mastercard the ability to track over 900 cryptocurrencies. Details of the acquisition were not disclosed.
The deal is the latest sign of robust activity in the crypto tracing sector as governments and banks look to ramp up monitoring and compliance.”
“The Securities and Exchange Commission (SEC) has once again delayed ruling on VanEck’s bid for a bitcoin exchange-traded fund (ETF). The U.S. regulator on Wednesday gave itself until Nov. 14 to approve or reject “VanEck Bitcoin Trust,” one of the earliest bitcoin ETF hopefuls to try its luck this filing cycle.
Unless it rules on one of the many other bitcoin ETF applications in the interim, Nov. 14 will yield a final answer on where VanEck’s offering stands.”
“The former CFTC chairman described the current rules for digital assets as anachronistic and unevenly enforced. His comments come in the wake of Coinbase’s revelation that the SEC threatened to sue the cryptocurrency exchange should it introduce a proposed savings account-like product.
It’s important for this new innovation that we don’t apply 90-year-old statutes, which is effectively what we have.
Ultimately, it will be the courts that will have to determine jurisdiction and apply the security laws to these asset classes, and I’m optimistic that Congress steps in. Congress in the last few months has really recognized crypto […] and has woken up to this technology and its power and potential.”
“Cryptocurrencies and risky traditional assets like stocks have been major beneficiaries of the liquidity-boosting asset-purchase programs launched by the ECB, Federal Reserve and other major central banks following the coronavirus-induced crash of March 2020. So any reduction in the pace of these “quantitative easing” programs, known as QE, might prove a headwind for the bitcoin market.
But the limited scope of the ECB’s latest move shows the level of caution monetary policy makers are taking as they unwind the approach.
The Governing Council judges that favorable financing conditions can be maintained with a moderately lower pace of net asset purchases.
The central bank said it will continue to conduct PEPP purchases in a total envelope of €1,850 billion until at least March 2022 – indicating that the overall size of the program hasn’t changed – while maintaining the deposit facility rate, main refinancing rate, and marginal lending facility rate unchanged at historically low levels of -0.5%, 0.00%, and -0.50%, respectively.”
“Balancer, a popular automated market maker, has today announced a strategic partnership with WSBDApp, the blockchain-based trading platform created by the WallStreetBets subreddit original founders.
The collaboration will see WSBDApp’s decentralized exchange-traded portfolios (ETPs) launched on Balancer V2 to ‘further expand the possibilities of DeFi and increase crypto exposure.’
Through its collaboration with Balancer, the WSBDApp is rolling out a community-selected basket of stablecoins backed by fiat money like the U.S. dollar, as well as tokenized commodities and cryptocurrencies. Users will be able to connect their WSBDApp wallets to a portfolio rebalanced with the help of the Balancer protocol and then use fiat money to purchase a token representing their holdings.
The ultimate goal was to turn decentralized ETPs into ‘an alternative to the kind of market manipulation perpetuated by opaque and politically connected banks and hedge funds.’“
“Lend aims to provide eligible customers a 4% annualized percentage yield by lending out USD coin (USDC) to “verified borrowers.” Coinbase said it had been in discussions with the SEC over its program for almost six months.
Coinbase says the SEC won’t explain its issue with the Lend program. ‘Rather, they have now told us that if we launch Lend they intend to sue.’ Armstrong also said the agency gave no reasons for a potential lawsuit.
“Eden seeks to shield Ethereum traders from the menace of miner extractable value (MEV). MEV is the measure of profits miners can make by capriciously reordering transactions within blocks they produce.
Backed by some of the largest Ethereum mining pools, Eden creates new incentives for block producers and redistributes MEV in a more equitable way. Eden creates clear and transparent rules with incentives for miners and traders to follow.
Eden Network represents a fairer, more democratic and market-driven approach to fixing MEV than anything that has come before it.
For institutional [decentralized finance] participants, the market for MEV is becoming as critical as spot liquidity and depth.
Since Ethereum’s London hard fork went live on Aug. 5, Eden represents 50% of the total hash power on the Ethereum network, meaning Eden blocks are being produced more than anywhere else.”
“Bitcoin is stabilizing around the 200-day moving average at $46,000 after a sharp sell-off on Tuesday. The cryptocurrency is down about 8% over the past 24 hours, with sellers in control of the $50,000 resistance zone.
Upside momentum has slowed over the past month, although buyers were able to defend support around the $42,000 breakout level achieved Aug. 6. Buying could be limited, however, as overhead resistance remains strong around the $55,000-$60,000 range.”
“The world’s biggest asset manager is joining Citi and Goldman Sachs, among others, on the network. Starting with equity swaps, Axoni will help BlackRock build ‘scalability while mitigating risks in the investment life.'”
“Bitcoin was sharply lower on Tuesday, at one point declining nearly 19% from the $52,000 resistance level. The drop occurred after El Salvador bought 200 BTC on Monday ahead of the Central American nation’s Bitcoin Law going into effect.
The sharp BTC decline triggered about $3 billion of trading position liquidations. Bitcoin was trading around $47,000 at press time and is down 10% over the past 24 hours.
The market’s been overextended for the last six weeks without any significant pullback.
From a technical perspective, bitcoin briefly dipped below the 200-day moving average and found support just above the $42,000 breakout level. The sell-off occurred after multiple signs of upside exhaustion and slowing momentum ahead of the $52,000-$55,000 resistance zone.”
“El Salvador’s legislature passed the Bitcoin Law on June 9 by a supermajority, with 62 members voting in favor of the bill, while 19 opposed and three abstained. The crypto officially became legal tender on Tuesday.
Bitcoin is now on equal footing with the U.S. dollar, which has been in circulation throughout the country since 2001. Goods, services and even taxes can now be paid using the world’s oldest crypto. “Every economic agent” must accept the use of bitcoin as a legal form of payment under the law.
We must break the paradigms of the past. El Salvador has the right to move toward the First World.
This is an historic day and a great opportunity for the people of El Salvador to build financial freedom.
A day before the law came into effect, El Salvador purchased its first 200 BTC, with Bukele saying the country’s brokers would be buying a lot more.”
“It’s vanishingly rare for a country as small as El Salvador to find leverage where they can actually play a leading role on the world stage. So while this is a ridiculously gutsy move for the country, especially given the pushback they’re receiving from world powers like the IMF, it’s an asymmetrical bet that is likely to garner huge rewards.
El Salvador’s economy depends on money sent back from workers abroad. As such, it suffers greatly from predatory bank and wire transfer fees.
The implementation of bitcoin stands to have a revelatory and positive impact on the lives of those protesting its arrival.Cryptocurrency promises both accessibility and freedom from the arbitrary tyranny of both international borders and bank fees.”
“Bitfinex is moving into the security token offering (STO) industry by launching a new STO platform regulated in Kazakhstan. The new STO platform will operate under the AIFC Fintech Lab, a regulatory sandbox established in the AIFC by the Astana Financial Services Authority.
This meaningful step for the industry will widen access to a variety of innovative financial products, including notably blockchain-based equities and bonds, along with investment funds.
Kazakhstan is an emerging hub in Asia well placed geographically to service our Asian and European markets and it’s poised to play an important role in this emerging alternative financial system.
The exchange then expects to debut trading with Exordium (EXO), a security token “representing equity and profit sharing rights” on Liquid Securities, a platform built on top of Bitcoin (BTC) sidechain Liquid Network. According to a legal statement, Bitfinex Securities has an extensive list of jurisdictions and persons prohibited from trading on the platform.”
“The highest bid for a non-fungible token (NFT) collection of 101 bored-looking apes has fetched $19 million at Sotheby’s, surpassing the auction house’s original estimate of $12 million to $18 million. The auction – set to close in just under two days – features NFTs from Yuga Labs’ Bored Ape Yacht Club (BAYC).
The project highlights the community-building aspect that has become increasingly important to new NFT projects. Each Bored Ape doubles as a “Yacht Club” membership card, granting the holder to members-only benefits, including access to the BAYC Bathroom, a “dive bar bathroom” where each ape-holder will be able to paint a pixel on the digital bathroom wall every 15 minutes. BAYC envisions the Bathroom as ‘a members-only canvas for the discerning minds of crypto twitter.'”
“China’s highest economic planning body gave the go-ahead for trials using blockchain for green power trading to start across the country. State Grid, the world’s largest utility operator, has applied for a patent for blockchain-based certificates of green power transactions.
The NDRC hopes that trading system will not only help China hit its carbon goals by incentivizing the use of green energy, but will be a Chinese solution to global energy problems.”