6 October

“Rep. Patrick McHenry (R-N.C.), the ranking member on the House Financial Services Committee, unveiled a safe harbor bill on Tuesday ahead of a committee hearing with Securities and Exchange Commission Chair Gary Gensler.

The “Clarity for Digital Tokens Act of 2021″ would effectively codify SEC Commissioner Hester Peirce’s Token Safe Harbor proposal, a pitch the regulator made in 2020 and 2021 to create a pathway for crypto startups to launch token sales to fund their projects without fear of SEC enforcement.

Under the Peirce proposal, these businesses would have three years to either register with the securities regulator or meet a set of requirements to prove themselves fully decentralized.

Industry proponents praised the effort in statements on Tuesday. Perianne Boring, the president of the Chamber of Digital Commerce, said the bill “has the potential” to create a path for startups in the crypto industry.”

“SEC Chair Gary Gensler told Congress on Tuesday that the SEC has no plans to ban crypto.

Gensler’s assertion that the SEC does not plan to ban crypto mirrors similar remarks made by Federal Reserve Chair Jerome Powell last week, when the central bank head told the House Financial Services Committee that the Fed had “no plans to ban” the $2.2 trillion asset class.”

BTC is up about 22% over the past week and has decoupled from slumping global equities. Sentiment on bitcoin significantly improved over the past week, signaling a shift away from market panic, according to the Fear and Greed Index. Technical indicators are also showing improving short-term momentum.

We expect short-term overbought conditions to be weathered long enough for a test of minor resistance near $52.9K, a breakout above which would target the all-time high.”

See Also: 4 Factors Helping Bitcoin to Decouple From Falling Stock Market

“The three firms will support different segments of the market – from small DAOs to multibillion-dollar crypto funds.

The partnership will involve MetaMask Institutional being integrated with BitGo wallets. He says that’s significant because it ‘validates the growing appetite for institutional investors to participate in DeFi with the highest level of security possible.’

Bruzzesi said BitGo is seeing pent-up demand from institutional players to gain access and exposure to decentralized lending platforms. BitGo currently has $40 billion in assets under custody; once the integration with MetaMask Institutional is completed, over 500 firms in crypto will be able to access DeFi.”

See Also: Fifth Largest US Bank Launches Crypto Custody With NYDIG Backing
See Also: Bitpanda to Offer Its Digital Asset Investing Product to Italian Banks, Fintechs
See Also: DeFi Custodian Trustology Gets Green Light From UK’s FCA

“Circle, a key supporter of the USDC stablecoin, said in a regulatory filing that it received an “investigative subpoena” from the SEC’s Enforcement Division in July. That subpoena requests ‘documents and information regarding certain of our holdings, customer programs and operations.’

[Circle] didn’t elaborate on what the SEC’s investigation was focused on, [however] the subpoena arrived one month after Circle began onboarding corporate USDC holders into its first high-interest yield product, Circle Yield.

It’s not the firm’s first disclosed run-in with the SEC as it prepares to go public in a special purpose acquisition company deal that values the company at $4.5 billion.”

See Also: The US Inches Closer to Stablecoin Rules

Credit Suisse is taking part in the tokenization of a Swiss resort using the Ethereum blockchain. The law in Switzerland was updated in February to allow tokenized securities to trade on a blockchain with the same legal standing as traditional assets.

What’s interesting is that this project is also making a private placement, i.e. capital increase, based on tokenized securities, with the objective to provide secondary market trading.

The shares will begin to trade on the Taurus Digital Exchange (TDX) in the first quarter of next year to provide liquidity to Alaïa investors and employees. Earlier this year, Taurus received a license from the Swiss Financial Market Supervisory Authority to run a marketplace for digital assets.”

See Also: Altair Upgrade Set to Activate on Ethereum Mainnet This Month

THORSwap is the first multi-chain exchange using the THORChain protocol. This means that it allows users to swap tokens, for example, BTC for ETH, in one step without using an intermediary like a centralized exchange.

THORSwap currently only offers coins that are supported by THORChain, including BTC, LTC, ETH (and ERC-20 tokens) and BNB, but it is looking to integrate more coins outside of THORChain’s liquidity. Two networks of interest are 1inch and 0x.

Multi-chain solutions are said to be a game-changer by many people in the industry, with Arc Managing Director David Nage calling it the “actualization of free markets.”

Unlocking cross-chain liquidity will be critical to the future of decentralized finance.”

See Also: Blockstream’s Liquid Network Faces Delay in Processing as Transactions Begin to Stack Up

While very similar in look and feel to popular blogging platform Medium, Mirror shakes things up with an array of crypto-native features and capabilities. It’s a decentralized protocol that lets users log in and “sign” posts with an Ethereum wallet, plus it uses blockchain-based storage protocol Arweave to “permanently” back up posts and boost their censorship resistance.

Over the past several months, Mirror has added various crypto-centric economic elements to enable monetization for users, unlocking the ability to offer NFT collectibles, hold auctions, and even launch crowdfunding campaigns.

In April, the writer Emily Segal funded her next novel on Mirror. In July, the creators of an upcoming documentary film about Ethereum raised $1.9 million worth of ETH through a Mirror crowdfunding drive. In particular, Mirror has become a popular tool for DAOs, or decentralized autonomous organizations. DAO communities largely live within Discord servers, so Mirror provides a decentralized way to publicly share long-form information.

Mirror also shared a list of features coming to the platform in the future, including subscriptions, blog feeds and discovery elements, a richer editing platform, and support for Ethereum Name Service (ENS) domain-like names.”

5 October

“Bank of America has launched digital assets research coverage nearly three months after forming a crypto group. Digital assets are a $2 trillion market with 200 million users, according to a Bank of America press release, and the sector is “too large to ignore.”

We believe crypto-based digital assets could form an entirely new asset class.

Bitcoin is important with a market value of ~$900bn, but the digital asset ecosystem is so much more: tokens that act like operating systems, decentralized applications (DApps) without middlemen, stablecoins pegged to fiat currencies, central bank digital currencies (CBDCs) to replace national currencies, and non-fungible tokens (NFTs) enabling connections between creators and fans.

Bank of America noted that venture capital investments in digital assets and blockchain technology surpassed $17 billion in the first half of 2021, “dwarfing” the $5.5 billion from the same period last year.

This creates a new generation of companies for digital assets trading, offerings and new applications across industries, including finance, supply chain, gaming and social media. And yet we’re still in the early innings.”

See Also: ‘Not Just Bitcoin’: Bank of America ‘Bullish’ on Ethereum, DeFi and NFTs

The cryptocurrency is up about 15% over the past week as traders appear to be exiting short positions. Analysts are waiting for the U.S. Securities and Exchange Commission (SEC) to approve a bitcoin exchange-traded product (ETF), which could happen in a matter of weeks.

It would open the floodgates for institutional adoption and hopefully result in a spot-backed ETF being approved in the not-so-distant future, which would allow ordinary people to include the asset easily.”

“The working group published not one but three new reports on Thursday exploring customer needs, technological design alternatives and financial stability implications of a general purpose or “retail” CBDC – meaning a digital currency issued directly by a central bank – that would coexist with private payment systems.

The prevailing fear is that the use of any CBDC would require a shift of funds out of bank deposits and into digital cash. Should CBDCs rapidly replace bank deposits, they could reduce banks’ ability to lend, leading to instability in the financial system. But if it happens slowly, with enough time for banks to adjust, the report says the effects of such a shift would be manageable.

The report lays out a number of design options that could help control CBDC take-up and the crowding out of banks including setting holding and transactional limits on CBDCs, and considering different ways of remuneration. For example, a CBDC can be non-interest bearing like cash, in which case it would seem less attractive.

Polygon’s count of unique daily addresses active either as sender or receiver rose to a record high of 566,516 on Saturday, surpassing Ethereum for the first time. Non-fungible tokens (NFT) adoption and gaming have fueled the growth in Polygon’s user base.

Since July, traders on Polygon OpenSea [the NFT marketplace] have multiplied 45.5x, and NFTs sold by 17.5x. Second, gaming is taking off. Arc8 is one example, achieving 104K DAU [daily active users] days after launch.”

Trading volume has been trending upward on the marketplace over the last week following wider declines throughout much of September. Leading the charge this time around are pixel-based toad avatars, which are suddenly coveted by collectors. To date, the collection has yielded $88 million worth of trading.

Despite some recent doom-and-gloom chatter around the declining market, OpenSea’s final numbers actually weren’t far off of August’s, with more than $3 billion between both Ethereum and Polygon-based sales.”

See Also: Dapper Labs Acquires Influencer Platform Brud, Launches Unit Focusing on DAOs

“El Salvador is looking to bolster adoption of its government-issued Chivo Bitcoin wallet by offering discounts on petrol purchases of $0.20 per gallon to consumers who pay using BTC.

The state company Chivo negotiated with the largest gas station companies in our country, so that starting tomorrow, their stations will sell each gallon of fuel $ 0.20 cheaper, with Chivo wallet.”

The Disrupt Weekend

“The current, dominant economic regime in the U.S. is nominally capitalist, but in practice, it is something far afield. Government actors and the unelected Federal Reserve have long been in the business of picking and choosing winners in the market – sometimes directly. Regulation is often treated as a moat for powerful incumbents. If crypto is the Wild West, then traditional finance is the protectionism, cronyism and decadence of early modern Western Europe.

By comparison, crypto is a textbook example of “free enterprise.” It is a global financial architecture that anyone with internet access can use. It runs 24/7, it’s liquid, and it has winners and losers determined by the rules of the game.

When liquidity crises happen, people get liquidated. Businesses go bankrupt. Exchanges go down. People lose in proportion to the risks they take. Those are market forces functioning according to the rules.

There’s a case to be made that crypto ought to and can stand independent of the current economic system. As The Economist wrote recently, the state’s role in markets is to guarantee property rights. Crypto is a grand experiment with conceding that turf to blockchains. Taking ownership of your keys means taking on associated risks.

“Pure” capitalism promises something ruthless, but sticks to its own rules. Too bad it’s never been tried. Not even in the Wild West.”

See Also: Rep. Tom Emmer on Crypto Regulation, CBDCs, Infrastructure Bill (Video)

The core problem with the TradFi money stack is that all of its components require participants in the system to trust a centralized entity. Someone or some institution must be trusted to keep the ledger, to issue the currency, to coordinate the conversion of short-term savings into longer-term loans and to certify people’s rights to property.

That trust imperative implies that the centralized entity has the capacity to act in its own interests against those of the users of the system. For that reason, society has developed a complex nexus of laws, regulations, accounting and auditing procedures to provide people with the confidence they need to use these services. All of that adds friction to our transactions and, ultimately, burdens the economy with massive costs.

This is where the decentralizing, disintermediating promise of cryptocurrencies, blockchains, digital assets and smart contracts comes in. These technologies are coming together to forge a decentralized version of the money stack. Here’s how it maps out:

  • Ledger = blockchains like Bitcoin and Ethereum
  • Currency = bitcoin the currency, ether and/or other cryptocurrency payment vehicles
  • Debt = DeFi
  • Property = Non-fungible tokens (NFTs)

What I’m Looking For Come October & November | Raoul Pal

See Also: Bitcoin On-Chain Analysis (Video)

Investors can make double-digit returns via weekly ether or bitcoin “covered call” strategies offered by decentralized finance (DeFi) asset management platforms, including Ribbon Finance and StakeDAO. All you have to do is deposit coins in “strategy vaults” designed to automate the trade.

A popular traditional market strategy, “covered calls” involve selling out-of-the-money (OTM) call options, or those with strike prices above the current market level, while owning the underlying asset. It is typically seen as a neutral to bullish strategy, because the upside is capped.

At press time, projected yields from Stake DAO’s ETH and BTC covered call strategies were 31% and 32%, respectively, while Ribbon Finance’s ETH covered call offered a 12% yield. Check that versus the cash-and-carry trades executed on Binance, the world’s largest centralized crypto exchange by volume: Traders would earn just 5%.

With Stake DAO and Ribbon Finance, the strategy is automated. Users deposit their coins, wrapped ETH (wETH) or wrapped BTC (wBTC), into the strategy vaults, which take care of the complexities, like selecting the appropriate strike price for selling the weekly option.

These structured products open doors for the retail crowd to participate and earn yield from the otherwise complex options market, dominated mainly by sophisticated traders and institutions with ample capital and experience.

The emergence of this new category of offerings in the crypto options marketplace provides yet another example of how blockchain-industry developers are engineering cryptocurrency projects to replicate the structured-finance alchemy pioneered by Wall Street, and in some cases taking it to the next level.”

See Also: How to lend crypto to institutions

As DeFi matures, it is becoming increasingly clear that [liquidity mining] incentives are not a viable long-term strategy for networks. The goal should always be to bootstrap and accrue long-term defensible value, rather than perpetually pay high interest on mercenary capital.

Olympus flipped this model on its head. While we started with liquidity incentives at launch, we used them (as they should be used) as a short-lived bootstrapping mechanism. LP incentives allowed us to build up a large liquidity pool quickly, but it was never a long term strategy. Bonds are.

Bonds are a mechanism by which the protocol itself can trade its native token in exchange for assets. Instead of renting liquidity from third parties, it purchases them outright. Once the bond is created, the protocol owns those assets.

Olympus has found enormous success through bonds. Within the first six months, the protocol has amassed over $150 million in assets. This is higher than many protocol’s TVL, and it will never have to pay another dime for them. Not only that, most of these assets are productive; instead of costing the protocol money, they make the protocol money.

Through bonds, protocols can accumulate the crucial infrastructural liquidity that they generally service via liquidity mining. Instead of renting that liquidity (often at astronomical interest rates), they simply purchase it, turning a value-draining perpetual expense into revenue-producing assets that facilitate the functionality of the rest of the platform.”

In September, bitcoin dominance was 42%. That’s the lowest it’s been at that point in the year in any of the previous four years. While Ethereum’s share was higher in the most recent September than at any time in the series since 2017, the share for all other blockchains was the highest of any of the last five Septembers.

BTC losing dominance does not imply that it is losing, especially as it continues to cement itself as a sound money and global monetary network. Waning dominance for bitcoin more accurately suggests that there is money flowing into other projects with different use cases.”

“Mozilla Foundation, which develops the Firefox browser and is usually a half-decent supporter of internet privacy and security, filed an objection in early September to the working draft of a new DID standard being developed by the collaborative W3C foundation.

Coin Center, in an open letter this week, characterized those objections in part as “transparently irrelevant,” and more broadly warned that a promising effort to standardize Decentralized Identifiers (DIDs) at the W3C is being waylaid by the objections of centralized digital identity providers. The new standard would potentially disrupt centralized digital identity providers such as Google and Facebook.

Among other benefits, this is a much more secure and private model than the Facebook or Google logins which currently dominate identity verification on the web. That’s in part because service providers could limit the data they see or collect based on their security risk level or specific qualification requirements.

The Mozilla objection … dedicates the vast majority of its critique to the putative environmental costs of proof-of-work mining. This is transparently irrelevant to the W3C DID standardization process.

It is especially strange since the current DID draft standard does not even mention PoW mining, according to Coin Center, and can accommodate many data architectures. Coin Center characterizes Mozilla’s statement as “scare tactics and hyperbole,” and it is certainly a strange and off-putting position from an organization that is usually quite intellectually honest.”

“One approach that has been growing in popularity lately is what we’re calling “Airdrop scams”. A typical airdrop scam involves minting a new malicious token, sending it to user accounts, and relying on users investigating what this mysterious token is to phish those users.

These tokens however do not behave like normal tokens, and when those users try to swap them, they throw an error, which directs the user to a phishing site for help, where they are phished.”

The Nigerian Federal High Court joins the growing list of regulators across the globe to approve the rollout of a central bank digital currency (CBDC) as a legal tender. Named eNaira, the digital currency will be issued by the central bank and supported by a homegrown eNaira wallet.

The official eNaira website says that the digital version of the Nigerian naira will be made available universally, stating “anybody can hold it.” While eNaira will continue to circulate alongside its fiat counterpart, it is marketed as a faster, cheaper and more secure option for monetary transactions.

It is important to note that the move to introduce digital naira also coincides with the falling value of the nation’s fiat currency, currently standing at its lowest point since 2003.”

2 October

“In a proposal on Thursday on MakerDAO’s governance forums, French multinational banking giant Société Générale (SocGen) submitted an application for the decentralized finance (DeFi) lending platform to accept on-chain bond tokens issued by the bank as collateral for a stablecoin DAI loan.

The loan would be for up to $20 million in DAI – likely the largest step towards institutional adoption of DeFi to date. SocGen has been a leader in experimenting with blockchain assets for years, having issued bond-backed tokens on the Ethereum blockchain as far back as 2019.

In April, Maker made headlines by issuing a $38,000 loan to finance a real-world mortgage and has been exploring other real-world options in collaboration with Tinlake and Centrifuge.

This is the next logical step in MakerDAO’s mission to integrate the crypto and real-world economies. This collateral should be seen as step one of what is next to come. Integrating all publicly traded bonds and providing repo. Quite a huge market.

The tokens that SocGen has submitted for application as collateral were issued in 2020, have a fixed rate of 0%, and mature in 2025. They sport a AAA rating from rating agencies Moody’s and Fitch. Both the bond tokens and DAI are recognized under French law.”

See Also: SocGen Proposal

Bitcoin is pushing higher despite classic risk-off action in traditional markets. The cryptocurrency’s resilience has raised investors’ hopes for a stellar rally in October. Reduced probability of a regulatory clampdown on crypto markets seems to be cushioning bitcoin from the instability of traditional markets.

October is a seasonally bullish period, and bitcoin’s recent stability amid stock market losses and China’s blanket ban on virtual currency businesses is reminiscent of the cryptocurrency’s resilience in the face of the negative news seen just before the beginning of the bull run from $10,000 in September and October 2020.

It remains to be seen if history will repeat itself. While rising inflation expectations across the globe and falling real or inflation-adjusted bond yields are supportive of a renewed bull run, the Fed’s impending taper – or scaling back – of stimulus may slow down the ascent.

Data released early today showed eurozone inflation rose 3.4% on an annual basis in September, hitting the highest reading since September 2008.”

See Also: Market Wrap: Cryptocurrencies Rally as Short Sellers Exit Positions
See Also: ‘Coinbase Premium’ Indicates Whales on Binance May Be Behind Bitcoin’s Rally

“The reported recommendation is part of a Treasury-led presidential advisory group’s upcoming stablecoin report. First announced in July, the report is now expected to be released in late October.

A senior administration official confirmed to CoinDesk that the report is accurate and that the federal government is looking at two different pathways. The first is the congressional pathway outlined by the WSJ, though the official did not provide specifics. The second is through the Financial Stability Oversight Council (FSOC), a panel of regulators tasked with monitoring potential risks to the financial system.

In a floor speech on Wednesday, pro-crypto Sen. Cynthia Lummis (R-Wyo.) called for regular audits of stablecoin issuers and expressed concern with the lack of transparency of major issuers’ reserve backings.

A number of stablecoin issuers are in the process of, or have stated intentions to, obtain bank-like regulatory status. Circle said in August it wants to be a national crypto bank; Paxos, which issues USDP (formerly PAX) and BUSD in partnership with Binance, got a conditional banking charter in April.

Today’s news reports about the potential recommendations from the President’s Working Group on Financial Markets (PWG) is encouraging, as the time has come to address the risks and seize the significant opportunities of dollar digital currencies like USD Coin (USDC).”

See Also: SEC Delays Decision on 4 Bitcoin ETFs

“The BIS’ latest CBDC report refers to joint efforts with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the United States Federal Reserve, Sveriges Riksbank and the Swiss National Bank to explore a retail CBDC.

The central banks participating in the report agreed that any CBDC ecosystem would involve the public and private sectors in a balance to provide ‘desired policy outcomes and enable innovation that meets users’ evolving payment needs.’

A theme that cuts through almost every consideration is interoperability. Domestic interoperability would be key to ensuring a CBDC system coexists with other national payment systems and contributes to broader accessibility, resilience and diversity.”

See Also: IMF Says Crypto Boom Poses Challenges to Financial Stability

“Robert Leshner today tweeted asking that users who erroneously received large amounts of COMP tokens due to a bug return it to the Compound Timelock, or it would be ‘reported as income to the IRS, and most of you are doxxed.’

Perhaps unsurprisingly, the tone of Leshner’s tweet didn’t go down too well with the DeFi community.

Julien Bouteloup, a member of the core team at automated market maker Curve Finance, argued that Leshner’s comment ‘sounds like Compound has been gathering personal data about its users & willing to dox’ them all if they don’t return the fund earned at the casino.’ ‘Code is law. Unless we fuck up. Then we call the IRS on you,’ ironically noted Blockstream CSO Samson Mow.

Leshner later admitted that his comments about doxxing and the IRS were “a bone-headed tweet/approach” and he appreciates the community’s “ridicule and support.” Meanwhile, Compound Labs has published a new proposal to temporarily disable COMP rewards, although voting won’t start until tomorrow.”

See Also: Compound Founder Says $80M Bug Presents ‘Moral Dilemma’ for DeFi Users
See Also: Coinbase Multi-Factor Authentication Hack Affects at Least 6,000 Customers

“Following the approval by El Salvador’s congress for the adoption of bitcoin as legal tender in June, Bukele said he had instructed state-owned geothermal electric company LaGeo to allow bitcoin miners to tap the country’s volcanic resources.

With 20 “potentially active” volcanoes, which account for almost 22% of the country’s energy supply, El Salvador’s harnessing of geothermal energy could provide an answer to the hunt for a reliable clean energy source to power bitcoin mining.

This is officially the first bitcoin mining the volcanode.”

See Also: Billion-dollar Bitcoin mining industry resumes in Iran after three-month ban

1 October

“U.S. Federal Reserve Chairman Jerome Powell said he does not intend to ban cryptocurrencies, but said stablecoins need greater regulatory oversight. Powell made the comments in a two-hour long House Financial Services Committee meeting on Thursday.

When asked by Budd directly whether or not he intended to “ban or limit the use of cryptocurrencies,” Powell’s response was a resounding “No.”

[I have] no intention to ban them.

When asked about earlier comments he had made about CBDCs replacing private crypto, Powell said he’d “misspoken.”

See Also: Market Wrap: Bitcoin Above $42K; Analysts See Rebound Ahead
See Also: Technical Analysis (Video)

Visa has proposed a platform to enable interoperability between central bank digital currencies (CBDCs) and other stablecoins. The “universal payments channel” (UPC) aims to allow the cryptocurrencies to be transferred between different blockchain networks.

The UPC technology can play an important role between private stablecoins and public CBDCs by providing permissioned access for whitelisted stablecoins to be interoperable with CBDCs.

The UPC protocol will allow payments through an entity known as the “UPC Hub,” which would be a trusted gateway to read the state of two ledgers.”

“Canadian exchange-traded funds (ETF) provider Evolve Funds Group has launched the country’s first multi-crypto ETF on the Toronto Stock Exchange, the Evolve Cryptocurrencies ETF. Trading under the tickers ETC, the Evolve Cryptocurrencies ETF will initially invest in Bitcoin ETF (“EBIT”) and Ether ETF (“ETHR”).

Even though these two cryptocurrencies are somewhat correlated to each other, they’ve had different return profiles. Such diversified funds allow investors to dampen some of that volatility and hopefully capitalize on the cryptocurrency that’s significantly outperforming the other.”

Compound erroneously paid out millions in liquidity mining rewards following an update to one of its smart contracts. In one transaction, $27 million was claimed. The botched payout sums indicate a flaw in the comptroller contract, which disburses the COMP liquidity mining rewards, possibly related to a recent upgrade.

Compound acknowledged the exploit on its official Twitter handle and said no user funds are at risk.

There are no admin controls or community tools to disable the COMP distribution; any changes to the protocol require a 7-day governance process to make their way into production. Labs, and members of the community, are evaluating potential steps to patch the COMP distribution.”

A three-way race involving Gelato, Keep3r and Chainlink to corner the massive automation market is gaining speed.

The raise comes at a time where teams are just beginning to scratch the surface of smart contract automation – a key piece of blockchain plumbing that has the potential to be a massive market, and what Orth describes as the Google Cloud of Web 3.

Rather than you building every bot from scratch for every single specific use case out there in Web 3, and there are millions, we just built a general-purpose protocol and and network that you can plug into and you can automate any function you want without having to build this infrastructure.

This is a much, much wider market than oracles.”

See Also: Polygon Bolsters Augur Betting Platform With $1M Liquidity Program

“TikTok has announced a collection of non-fungible tokens (NFTs) featuring contributions from Grimes, Lil Nas X, Bella Poarch and more. Called “TikTok Top Moments,” the collection is the social media app’s first whole-hog foray into the world of blockchain-based digital collectibles.

The idea is to pair TikTok creators with artists in the crypto space. The NFTs also represent a partnership with Immutable, a layer 2 network built on top of Ethereum.”

See Also: Old Meets New as Czech Royal Family Drops High-Art NFTs

As of September 29, the decentralized exchange aggregator 1inch has begun geofencing U.S. IP addresses. Such geofencing is notoriously simple to circumvent using VPNs. The move aims to pave the way for a new product to launch in the U.S.

Series B funding will be used for the development and launch of the 1inch Pro product which is specifically designed for the US market and for global institutional investors in accordance with all the regulatory requirements.”

See Also: Coincidence or Insider Trading? Price Pops Before Incentive Announcements Raise Questions

“The Terra blockchain has completed Columbus-5, a hotly anticipated upgrade that is expected to make the system work more seamlessly with other cryptocurrency networks. The easy transfer of assets across networks stems from Terra now being able to use the Inter-Blockchain Communication (IBC) standard, which eases the exchange of data among all the networks that adopt it.

At least 10 other blockchains have integrated IBC, the most famous of them being Cosmos, which was built with interoperability in mind. Terra’s compatibility with other systems is set to further improve in the coming weeks, when yet another “bridge” protocol, Wormhole V2, is fully connected to the chain.

Interoperability means products built on Terra, such as the Anchor lending system and Mirror protocol for tokenizing stocks like Tesla and Apple, can now accept coins from other chains as collateral.

“The pilot program aims to give 1,300 participating households a one-time payment of $120 that they can use to pay for low-cost internet for one year. To fund those payments, the mayor’s Office of Technology and Innovation will install 20 Helium-compatible hotspots with volunteer residents and small businesses. The hotspots will mine HNT tokens for six months.

Helium aims to provide wireless connectivity that doesn’t rely on centralized wireless carriers. Instead, it seeks to build a global peer-to-peer network of nodes that power internet-of-things (IoT) devices. The network includes more than 200,000 nodes.”

Iranian authorities have conducted many raids on crypto miners in abandoned factories, homes and small businesses — nothing quite as high profile as the country’s largest stock exchange.

The TSE reportedly initially denied the existence of the miners, saying the equipment was part of a research project. However, executive deputy director Beheshti-Sarsht later said the company should be held accountable for its actions.”

30 September

“Gensler singled out bitcoin ETFs which invest in futures contracts that trade on the Chicago Mercantile Exchange and register under the Investments Company Act of 1940. The so-called ‘40 Act “provides significant investor protections,” he said in prepared remarks for a Financial Times conference:

I look forward to staff’s review of such filings.

The SEC is reviewing almost two dozen ETF filings for bitcoin, bitcoin futures, ether and ether futures products. Industry observers expect decisions as early as October.

See Also: First cryptocurrency fund approved in Switzerland

The Merge Interop spec was released on Friday. This “meta-spec” provides stable targets for engineers for an initial wave of testing and devnets.

After a flurry of specification activity over the past few months, Merge specs are near feature complete, and the core logic is stable. In this next phase, engineers will build out the Merge logic and test their software with other teams on short-lived devnets. The engineers will vet the specs as they stand today and provide dynamic feedback into the specs to refine and/or fix issues as they arise.

Proof-of-stake superceding proof-of-work is years in the making, and we’re just as excited as you to see it in action. Much fun coming in October. 🏺🚀”

“Twitter Spaces software engineer Mada Aflak showed a quick demo in which a person would click on their avatar and select an NFT from their crypto wallet. After downloading their NFTs from OpenSea, a popular marketplace for the digital collectibles, they can put the NFT in their avatar—complete with the customary blue checkmark to show that they’re the true owner of the image.

NFTs have become akin to social currency of late as devotees of Ethereum and other smart contract blockchains have recently begun posting their digital possessions as profile photos.”

“4K platform, a marketplace that allows users to mint non-fungible tokens (NFTs) representing physical assets, launched on the Ethereum network Wednesday morning.

4K says it will bring real-world assets onto the blockchain by issuing users of the platform an NFT symbolizing ownership of a physical good. The company obtains the item from a seller, authenticates, insures and stores it. The NFT holder can then trade their NFT for the physical item. Upon redemption, the NFT is destroyed, meaning the holder cannot possess both the physical object and the NFT simultaneously.

4K is an analog to digital converter for physical collectibles.

According to Li, most sales of luxury artworks occur only “on paper,” with no physical transferring of goods. ‘The ownership changes, but the pieces don’t move.’ NFTs therefore make ownership of non-fungible, real-world items easy to trade and gift, potentially disrupting traditional marketplaces or auction houses such as eBay, Christie’s and Sotheby’s.”

See Also: 4K Platform
See Also: Pawn Your CryptoPunk: A New NFT DeFi Lending Market Blooms

“The region of Central, Northern, and Western Europe (CNWE) has become the world’s largest cryptocurrency economy thanks to the proliferation of decentralized finance (DeFi), according to the latest report by crypto analytics firm Chainalysis.

Larger traditional institutional players have been paying increasingly more attention to DeFi, and this trend was most prominent in CNWE’s crypto sector. The combined value of large institutional-sized transactions—i.e. transfers worth $10 million or more—reportedly grew from $1.4 billion in July 2020 to $46.3 billion in June 2021. The data shows that over the last 12 months, the majority of large institutional-sized transfers went to DeFi platforms.

DeFi protocols represent three to four of the top five services in most months, with Uniswap, Instadapp, and dYdX making frequent appearances.

Ethereum and Wrapped Etherum became the most popular cryptocurrencies in almost every CNWE country, outpacing Bitcoin in terms of sheer volume. In the U.K., for example, Bitcoin makes up 27% of the total crypto transaction value while ETH and WETH made up 40%.”

See Also: Crypto Gains Ground in Latin America Amid Venture Capital Boom
See Also: Former Bitcoin lead dev predicts demise of BTC network… with a major silver lining

See Also: Cross-Chain Wallet XDEFI Raises $6M to Take on MetaMask, Phantom
See Also: Celer (CELR) gains 400% after traders embrace its multi-chain ‘cBridge 2.0’ solution

“The 12 relatively unknown options merchants accused of failing to register with the CFTC are New York-based, according to a Wednesday press release. The two companies that are accused of “making false and misleading claims of having CFTC registration and National Futures Association (NFA) membership”– Climax Capital FX and Digitalexchange24.com – are based in Texas and Arkansas.

The CFTC has traditionally taken more of a backseat role in crypto regulation than the U.S. Securities and Exchange Commission (SEC), but there are signs this might be changing as the two regulatory bodies jockey for power.”

See Also: Opposition mounts to Biden’s OCC pick, fears she could ‘regulate crypto into oblivion’

29 September

Cryptocurrencies were mostly lower on Tuesday, tracking losses in equities after the U.S. Senate failed to act to extend the debt ceiling and avoid a partial federal government shutdown as soon as Oct.15. The 10-year Treasury bond yield rose to 1.50%, the highest level since June, accompanied by a rally in the dollar as investors position themselves for a potential government default.

In equities, we are about to enter the most dangerous month of the year – October has been the month where crashes and major corrections take place.

Crypto is vacillating between resistance and support, waiting for regulatory clarity in the U.S. and central bank moves around the Chinese debt crisis.”

See Also: Bitcoin whales move ‘record’ BTC value as metric sounds alarm over price volatility

Some prominent bitcoin influencers have begun pushing back against toxicity and isolationism in the bitcoin community. As Wertheimer argues, the case for coin tribalism is wearing thin.

For the past few days noted bitcoin booster Udi Wertheimer has been kicking the cyber hornet’s nest, challenging a non-dominant opinion in some of the online spaces bitcoiners congregate that bitcoin is the one, true crypto asset.

He’s been on a tear, questioning the immune-like response bitcoiners activate when anyone denigrates “the coin” or mentions other cool crypto things happening on other chains. Everything “crypto” – that is non-bitcoin – is a scam; everyone who sees value elsewhere is a scammer.

As bitcoin continues to gain prominence in the global economy and activity on the internet, it has also become central to some people’s sense of identity. Bitcoin is not just an asset to hold but a movement in which you participate. Extreme fanaticism conflates perceived attacks on the Bitcoin network to one’s sense of self. Bitcoin became a mind colony. Ideas about bitcoin hardened, the scope of acceptable debates shrunk and everyone slightly heterodox was now a heathen.

[S]eparatism used to be a fitting response, e.g., in 2017, when actual bad actors tried to hurt the movement. [H]owever, 2021 is different, the new crowds aren’t trying to hurt anyone, and separatism doesn’t achieve the stated goal of ‘educating’ anyone.

I used to believe that Bitcoin should be the base layer of everything and we should just build layer 2 solutions on top … to add flexibility.’ Looking a little closer, however, Wall discovered that these add-ons failed to live up to their expectations. That wasn’t the case for Ethereum, which has suffered from its own expansion issues but found “flexible,” “feature rich” and “decentralized” solutions like rollups.

That’s something that made me start to change my position on whether or not bitcoin was the only asset that had a role to play in the cryptocurrency ecosystem.

Sometimes when people invest in a blockchain’s promises, ‘they feel as if they have no way of backing out or changing their mind in light of new information or evidence.’ But crypto markets are open 24/7, and markets account for all available information.

When I realized this, the only thing that I had to do was to buy some ether [the native currency of the Ethereum blockchain] to be in alignment with my beliefs. Now I’m not afraid of ether becoming successful.”

“Connext, a platform based on the Ethereum blockchain that allows users to conduct transactions across different Ethereum-compatible networks, announced the launch of NXTP, a tool that allows communication between different blockchains and their offshoots, known as layer 2 systems and sidechains.

Our vision for NXTP is that it will become the internet protocol of the Ethereum multi-chain ecosystem. Now that it’s live, our focus will be on growing liquidity within the system, rapidly adding support for new chains/L2s, and transitioning the protocol to becoming entirely owned and operated by the community.

The growing field of “cross-chain interoperability” networks also includes Hermez, Loopring and StarkEx. Connext says one big advantage of NXTP is that it doesn’t introduce third-party validators to control user funds, which can pose a security risk.”

See Also: Institutional DeFi Push Continues as Ethereum Scaler Nahmii Launches Mainnet
See Also: Clearpool Raises $3M to Build Decentralized Capital Markets on Ethereum

Altair, which is described as the first mainnet upgrade to the Beacon Chain, is scheduled to take place at epoch 74240, or roughly Oct. 27.

This upgrade brings light-client support to the core consensus, cleans up beacon state incentive accounting, fixes some issues with validator incentives and steps up the punitive params as per EIP-2982.

EIP-2982 introduces “punitive parameters” to ensure that the proof-of-stake protocol is economically secure. “Inactivity leak” and “slashing” are the two proposed penalties under the improvement proposal.”

The issue of CBDCs and financial privacy were featured during Tuesday’s contentious Senate Banking Committee hearing. Powell called the development of a U.S. central bank digital currency (CBDC) “critical work,” telling Senate Banking Committee ranking member Sen. Pat Toomey (R-Pa.) that “broad consultation and, ultimately, authorizing legislation from Congress” would be “ideal.”

The privacy of Americans has to be respected. We shouldn’t design a central bank digital dollar that allows the government to spy on Americans every transaction. [Sen. Toomey]

Sen. Cynthia Lummis (R-Wyo.), a well-known supporter of cryptocurrencies and blockchain technology, lambasted the Treasury Department for the Internal Revenue Service’s (IRS) push to enact new regulations requiring banks to report transactions from all accounts with over $600.

This is invasive of privacy. Wyoming’s people literally will find alternatives to traditional banks just to thwart IRS access to their personal information, not because they’re trying to hide anything, but because they’re not willing to share everything.”

See Also: Nigeria’s eNaira Website Goes Live Ahead of Scheduled October Rollout

“Securitize has been issuing security tokens since 2017 through its U.S. Securities and Exchange Commission-registered transfer agent. Now it can sell and trade them through its alternative trading system (ATS), which is run by its broker-dealer.

We want to facilitate liquidity to companies earlier on without having to go through the expensive and lengthy process of registering with the SEC. We also want to give the opportunity to individual investors to invest in these companies early on and get a return that is otherwise not available to the public.”

See Also: Bacon Protocol launches decentralized mortgage platform
See Also: Solana-Based Prediction Market Uses DeFi Yields to Finance ‘No Loss’ Betting

“Announced Monday, the bill would task the Treasury Department, Attorney General, U.S. Trade Representative, the Office of the Director of National Intelligence and members of the Federal Reserve with monitoring how crypto is used by both governments and private entities.

These groups would also be charged with estimating how much crypto was mined overall between 2016 and 2022, and identifying which cryptocurrencies were mined. It is unclear whether mining in the context of the bill refers solely to cryptocurrency mining through proof-of-work coins like bitcoin, or if proof-of-stake coins would also qualify.

The bill would also require the U.S. agencies to ‘identify vulnerabilities, including those related to supply disruptions and technology availability of the global microelectronic supply chain, and opportunities with respect to virtual currency mining operations.'”

28 September

“Native tokens of leading decentralized trading platforms are surging as the biggest centralized exchanges, Binance and Huobi, cut back on China to comply with local regulations.

Decentralized finance (DeFi) coins have picked up in the wake of China’s blanket ban on virtual currency-related businesses announced Friday, and Huobi’s decision to stop serving mainland Chinese investors. The crypto market is perhaps pricing an impending shift in trading volumes to the supposedly censorship-resistant DeFi rails from centralized exchanges.

According to China journalist Colin Wu, Chinese users will flock to DeFi platforms, bringing solid user growth to MetaMask and dYdX.

All Chinese communities are discussing how to learn DeFi.

dYdx has registered a trading volume of more than $4.3 billion in the past 24 hours, surpassing the Nasdaq-listed centralized crypto exchange Coinbase’s $3.7 billion.

Synergia Capital’s Denis Vinokourov told CoinDesk that the great rotation into all things DeFi has begun, and the sub-sector could see a prolonged bull run. Spartan Capital’s general partner and head of research, Jason Choi, tweeted that overregulation would be a bullish catalyst for DeFi.”

See Also: Huobi outlines plan for Chinese investors after halting crypto trading
See Also: Chinese Ethereum Mining Pool SparkPool to Halt All Services Due to Crackdown

“Aave Arc may be close to onboarding its first “whitelister” – a possible step towards institutional users integrating with the decentralized lending platform.

Aave Arc is an implementation of the Aave version 2 code designed to allow institutions to enforce regulatory compliance. Whitelisters would ensure that users of these permissioned lending pools comply with relevant laws depending on the jurisdiction of the user.

Fireblocks’ R&D, compliance and legal teams have developed a new whitelister framework for permissioned DeFi. This framework meets both enterprise-grade requirements for accessing DeFi and adheres to Aave Arc’s whitelister governance criteria.

Approving Fireblocks could also lead to integrations enabling new products, ‘such as the onboarding of regulated fiat on/off ramps and protocol deployments connected to debit cards, high yield savings accounts and other innovative fintech products.’

See Also: Atari Founder Is Launching Augmented Reality NFTs on Ethereum

“Up north in Canada, all is quiet. The debate over whether cryptocurrency exchanges need to register with Canada’s version of the SEC has already been settled. In a March 2021 notice, the Canadian Securities Administrators confirmed that crypto exchanges do need to be registered with a securities regulator.

To bring Coinbase and Kraken under the jurisdiction of securities law, the CSA has created a new catch-all term: a crypto contract. Crypto contracts are securities, and because Coinbase and Kraken offer them these platforms come under the ambit of Canadian securities law.

Pretty much everyone (including Canada’s regulators) agree that bitcoin is not a security. But according to the CSA, the bitcoin that a Coinbase client holds in their Coinbase account isn’t actually bitcoin. It is a contractual right or claim to underlying bitcoin, or as the CSA terms it, a crypto contract. Furthermore, the CSA deems all crypto contracts to be securities, even if the underlying crypto, say bitcoin, isn’t itself a security.

The CSA’s assertion about crypto contracts is one that ‘no other international securities regulator has yet taken.’ Will large U.S. exchanges like Kraken and Coinbase that serve Canadians choose to comply with Canadian securities laws?

The CSA’s list of requirements is long and demanding. Many exchanges won’t meet the CSA’s requirements, or can’t. But Canadian cryptocurrency venues such as Wealthsimple and Coinberry have fallen into line. And they don’t seem too salty about it, either. From the perspective of consumers, I’d argue the Canadian approach makes a lot of sense.

Whether Canada’s approach to crypto regulation becomes another export to the U.S., along with maple syrup or hockey, remains to be seen. But you can be sure that Gary Gensler is watching and pondering the idea of crypto contracts.

“On Monday, Coinbase announced “Get paid in crypto,” a new service that will let nearly anyone in the U.S. who gets paid by direct deposit receive all or part of their wages in Bitcoin, Ethereum or various other cryptocurrencies.

Coinbase is working with major payroll and HR companies to let millions of workers get paid in crypto. Coinbase is billing the service as the “future of payroll.”

You can set up direct deposit in just a few steps without leaving the Coinbase app. Find your current payroll company or employer and we’ll automatically update your paycheck allocation.

Coinbase’s direct deposit offering follows a nascent push by 401k providers to let employees put crypto in their retirement accounts, reflecting how crypto is becoming increasingly mainstream in the broader American workforce.”

See Also: Revolut to Launch Crypto Token: Sources

Pelosi announced that the house will vote on whether to pass the Biden administration’s controversial $1 trillion bipartisan infrastructure bill on Thursday, Sept. 30. However, the infrastructure bill faces opposition from some lawmakers who believe it should be held back until negotiations have ended regarding the follow-up $3.5 trillion social welfare and climate bill.

Tomorrow, September 27, we will begin debate on the Bipartisan Infrastructure Framework on the Floor of the House and vote on it on Thursday, September 30.”

“Shares of crypto-focused bank Silvergate Capital Corp. rose about 6% Monday after Morgan Stanley initiated coverage of the stock with an overweight rating and a $158 price target, indicating a 52% upside from the current price.

Silvergate gives bank investors a nearly pure-play way to participate in the rapid growth of the nascent cryptocurrency industry.

Silvergate Bank accepted a whopping $4.3 billion in new deposits from new and existing digital currency customers in the second quarter, the company announced in July.”

“CTX sold tokens corresponding to 5,000 metric tons of carbon credits generated by a wind project in Zhangjiakou. To issue a token, companies verify their carbon credits with a third-party agency, and then “freeze” the carbon credits at China’s national carbon trading market.

Tokens contain shared carbon information including emission records and tracing, carbon offsetting, carbon capture, storage, and reuse.

China launched its carbon trading market in July. The market is predicted to be the world’s largest once it is fully operational.”

See Also: Ethereum Developer Virgil Griffith Pleads Guilty to Conspiracy Charge in North Korea Sanctions Case

The Disrupt Weekend

“We’ve certainly come to an era now where private currencies are in real competition with central bank currencies.

The major trendlines, of private companies creating their own money, the rise of open-source crypto projects, the fintech stack, have not even begun to play themselves out.

To stay relevant, governments around the world will likely issue their own central bank digital currencies (CBDCs). This might be the most significant monetary event of all, which will have far-reaching consequences at every level of society. Money will never have been more transparent, more programmable, more technocratic.

In countries that are small, or where the central banks themselves are not that credible, and where their currencies suffer from a lot of volatility or possibly inflation or hyperinflation, the easy availability of digital versions of major currencies such as the dollar, the euro or even the Chinese renminbi, or even stablecoins issued by corporations such as Facebook, could lead to the decimation of some of the smaller currencies.

There are questions about whether something like ether – if Ethereum does adopt proof-of-stake – could serve as a more efficient medium of exchange, because it would then have lower latency and higher throughput. So maybe that might be a route to stability. But it’s hard to see proof-of-work protocols successfully supporting mediums of exchange. Perhaps ethereum will start giving fiat currencies some degree of competition.”

See Also: Is the Dollar Doomed?

“On July 28, 2021, a new bill was introduced in the US House of Representatives. The bill is called the “Digital Asset Market Structure and Investor Protection Act” (“Digital Asset Bill”). And for the majority, it sets out future rules for crypto. However, hidden in this bill, changes to the foundation of the Dollar are proposed.

Included in the Digital Asset Bill, amendments to the Federal Reserve Act and the definition of legal tender are proposed. These amendments drastically expand the powers of the Federal Reserve, and change how money is created and distributed in the US.

The original idea behind the Federal Reserve was for private bank deposits to be combined in a reserve. This could provide an emergency line of credit in times of economic stress. Contrary to what is widely understood, the Fed does not “print money.” It can only manage the money supply indirectly.

According to the Digital Asset Bill, section 11 of the Federal Reserve Act is to be amended to provide the Federal Reserve Board with new powers:

The Federal Reserve System is authorized to issue digital versions of Federal reserve notes in addition…is authorized to use distributed ledger technology for the creation, distribution and recordation of all transactions involving digital Federal reserve notes.

The Fed is currently not as powerful as it wants the market to believe; the Federal Reserve Act restricts a lot of its actions. This amendment, however, could drastically expand the powers of the FED, by allowing them to create and distribute a “digital USD” directly. It could change the entire structure of the financial system, with far reaching consequences.

It is a bit hard to imagine that such a centralized structure would not lead to monitoring of all transactions. And what mechanism will determine how funds (and how much) are added to the economy? And where and how will they be distributed? Will this all be under the control of a board of seven unelected bureaucrats? And how will they control a distributed ledger of such magnitude?

“Fans buy, acquire or earn tokens, which represent a share in a creator’s career.

Crypto networks facilitate stronger relationships between creators and users. These relationships will introduce economic rewards and incentives to strengthen network effects.

It’s possible that “empowered” fans may go too far. Giving someone an economic stake in your career may make them feel entitled to make decisions on your behalf. Artists may be less incentivized to experiment or change direction, and super-fans may become your most vocal critics. And it’s not just your art that affects a token’s price, but potentially anything you do or say.

There’s also the unknown effects of conflating artistic worth with financial success. In a great introduction to social tokens, venture capitalist Rex Woodbury wrote, ‘In the future, instead of measuring a creator’s clout based on her Instagram following, we’ll point to her market cap.’

So what happens after the token creator dies? Assuming crypto is as “unstoppable” as claimed, the tokens should still exist and be tradeable. It’s possible death spells the end for a community, or, as so often the case in the history of art, a new critical awareness of the artist’s work.

There’s no single answer to this question, in part because tools like social tokens allow for the creation of so many different types of communities.”

Frontrunning isn’t just for Citadel anymore. Undertaking these types of transactions in the world of crypto is far easier than it is on equity markets or futures markets.

The creators of Flashbots attest that they are simply “trying to solve a serious problem” of miners having power to decide which transactions in a block get priority while processing transactions for the ledger. While Flashbots doesn’t eliminate the frontrunning, it makes it available for everyone. The software “makes a market out of cutting in line.”

These transparent auctions differentiate crypto from the predatory, opaque manipulation that goes on in traditional financial exchanges.”

Similar to the “.com” web craze, the latest fever in cryptocurrency markets has buyers scooping up blockchain domain names, which are being minted and sold as NFTs. Blockchain domains turn complex hexadecimal wallet addresses into easy-to-remember names and also enable censorship-resistant websites.

The domain names typically end in phrases such as “.crypto” or “.eth.” And some of the tokens are changing hands for upwards of $100,000 on NFT marketplaces like OpenSea. Since starting in 2018, Unstoppable Domains has registered over 1.4 million domain names, including several for Fortune 1000 companies.

These blockchain naming services are similar to the Internet’s Domain Name Service (DNS) but possess different underlying architecture and are based on the Ethereum blockchain. Some speculators are betting the value of blockchain domain names will approach the value of their Internet equivalents if crypto adoption heats up.”

“NFTs and blockchain technology have steadily seeped into the art and charity world, enabling artists and museums to monetize their work and continue to receive payments for their work even after it is sold.

Earlier this month, Russia’s Hermitage Museum, the largest art collection in the world, sold NFTs of several masterpieces in partnership with Binance’s NFT marketplace in order to cover the budget shortfalls brought about by the continuing COVID-19 crisis, with the auction including the sale of a work by Leonardo da Vinci for $440,000. New York’s Metropolitan Museum of Art, the largest art museum in the U.S., is expected to do the same by selling 219 prints and photographs to help make up for $150 million in lost revenue.

DoinGud’s blockchain-based social media and marketplace is designed to facilitate charitable giving via NFT sales to vetted social impact organizations of the creator’s choice. It will lead to ever-increasing opportunities to support worthy charitable causes that share the UN’s 17 Sustainable Development Goals like ending world hunger, solving climate change and more.”

With Oasis Multiply, you can now use your ETH, wBTC or other Maker supported collateral types to create a Multiply position (up to 4x*) and take advantage of upward trends of the supplied collateral.

Oasis Multiply, which is built on top of the Maker Protocol, 1inch DEX aggregator and Aave, allows users to borrow Dai and create Multiply Positions, which are similar to leveraged or margin positions but without the need to borrow funds from a centralised counterparty.

Overall, the approach in Oasis differs from existing models because instead of traditional options, such as counterparties lending users traditional fiat money for assets (like stocks), users access Dai by utilizing Vaults on the Maker Protocol. A user deposits collateral in a Vault to self-generate Dai as a funding source to purchase more collateral, multiplying their exposure to the asset.”

See Also: Official DAI Token Bridge now live on Arbitrum One


According to the Bitcoin Mining Council’s Q2 2021 Global Review, 56% of the energy used to power the Bitcoin network is renewable. Bitcoin mining companies do have a financial incentive to lower their energy costs and be sustainable.

In a memo in April, ARK Funds, led by Cathie Wood, and Square Crypto, led by Steve Lee, elaborated on research into how the Bitcoin network will lead to the growth of renewable energy. They made the case that bitcoin will likely do more than any government subsidy or program to grow renewables.

Former engineer and bitcoin mining expert Hass McCook noted that bitcoin mining emits less than 5% of the legacy financial sector’s carbon emissions.


Some 70% of the citizens of El Salvador are unbanked according President Nayib Bukele, and yet most have a phone. Accordingly, they can use a mobile bitcoin wallet, which is now plugged into a worldwide monetary system.

Because the supply of bitcoin is capped at 21 million, foreign leaders cannot make decisions that affect the savings of Salvadorans.


Bitcoin has no decision-makers. Bitcoin is for all, and whether you have 0.00001 BTC or 10,000 BTC, the rules are the same, and you have the same benefits. There is no insider information – Bitcoin is open-source for all to review and see. Bitcoin does not discriminate by faith, sex, creed, gender – or anything.

Rules without rulers – what is fairer than that?

See Also: A third of Salvadorans ‘actively’ using Chivo wallet, President Bukele claims

Reddit forum WallStreetBets has traditionally been standoffish toward crypto. It’s finally branching out into Bitcoin and beyond. The WSB forum was ground zero for GameStop stock purchases earlier this year. Its members now number close to 11 million.

In April, WSB made a small concession to its members interested in cryptocurrency, allowing discussion of Bitcoin, Ethereum, and Dogecoin—but no others—on a single thread. bawse1 wrote that the moderators didn’t want to “burden everyone with crypto spam.” That concession was reversed within 48 hours after Bloomberg ran an article titled “WallStreetBets Bows to Crypto.”

Now, crypto comments have their own home, with far fewer restrictions. The new subreddit, called WallStreetBetsCrypto, already has 14,000 members.”

25 September

“The People’s Bank of China (PBoC) announced tougher measures on crypto trading that, for the first time, makes illegal crypto-related transactions, including services provided by off-shore crypto exchanges.

The Sept. 24 notice bans banks and other financial institutions from offering services related to crypto, including transactions of fiat to crypto currencies, or from one crypto to another. Anyone facilitating trades is subject to legal prosecution. The involvement of law enforcement agencies, rather than civil entities, means crypto trading in China now has added a “financial crime aspect.”

This is certainly much bigger and more expansive than the destruction of the mining industry. It could easily be construed as making anything related to crypto possibly illegal under the menu of statutes the notice cites.

Despite the severity of the new language, some have remained positive about crypto’s future when it comes to China. Justin Sun, the founder of the Tron blockchain, pointed out the latest ban does not deny citizens’ “freedom of owning and exchanging virtual currency,” meaning there’s no clear ban on crypto possession.

Do not be too pessimistic about it. I think the biggest possibility in the future is that once major countries in Europe, North America as well as Japan, South Korea have come out with clearer regulatory policies on crypto, China will slowly introduce laws and regulations on crypto, too.”

See Also: Bitcoin Drops $2K as China Declares Cryptocurrency-Related Business Illegal

“While each time this happens, the markets react with a price drop, each time the effect is smaller and more short-lived. The ‘China bans bitcoin’ story has gained almost a meme-like status in the bitcoin community because of this.

If China continues to enforce at this magnitude, crypto trading will shift to venues in countries with more stable regulatory environments, which means more predictable liquidity and healthier, more robust trading across the globe.

For the institutional crypto industry it won’t change much. The retail market most likely has gone under the radar and will continue to support market volumes.”

“After weeks of teasing the release on Twitter, Andre Cronje has launched Artion, an NFT marketplace on the Fantom blockchain. Artion appears to be a clear-cut vampire attack on OpenSea.

Artion sports a remarkably similar front end to OpenSea. Unlike OpenSea, Artion’s code is entirely open source, and the platform does not charge a fee for minting or purchasing NFTs. OpenSea charges a flat 2.5% fee on all purchases. OpenSea has no token, and has been continually raising hundreds of millions of dollars in private equity rounds throughout the last year.

Cronje revealed that Artion is preparing for a robust cross-chain market with a NFT token bridge, and that the platform will launch “on a new chain every week,” with Ethereum, Arbitrum, Avalanche and Polygon as early targets.

We are open-sourcing it completely and encouraging teams to fork it. It’s about sending a message.”

“The U.S. regulator cited a law enforcement exemption in denying a Freedom of Information Act request about Tether. The SEC said it would not release records around Tether because they were collected for enforcement purposes, according to a FOIA response the SEC sent to The New Republic staff writer Jacob Silverman.

This exemption protects from disclosure records compiled for law enforcement purposes, the release of which could reasonably be expected to interfere with enforcement activities.

Any SEC investigation would have to have started recently. According to Bennett Tomlin, a data scientist, a similar FOIA request filed in February and returned in July found the SEC did not “locate or identify any information responsive to your request.”

The SEC response also said the withholding of records for the law enforcement exemption does not necessarily mean any charges or enforcement actions will be brought.”

“The U.S. House of Representatives has included a crypto provision in this year’s version of the annual defense budget bill. The defense bill generally receives wide bipartisan support and is seen as a must-pass bill.

The proposed legislation would require the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to clearly define which agency has oversight of which aspects of the crypto market. If the bill is enacted into law, Congress would create a working group within 90 days of the bill’s passage composed of SEC and CFTC representatives.

Over the course of a year, the group would then be required to analyze the current regulations and their impact on the primary and secondary markets while filing a report describing how current regulations affect the country’s competitiveness.”

“This will be the largest integration yet of crypto with an existing, mainstream digital service (aside from crypto features in financial apps like RobinHood and PayPal). And the fact that it’s Twitter making the first move could hardly be more bullish.

That said, I’m actually not certain the Bitcoin integration is the biggest part of the Twitter news. The friendly-looking Lightning interface is exciting, but Twitter has never prevented posting public crypto addresses to profiles, so in some sense it’s more an upgrade than an entirely new option.

NFT verification, however, will be a step change. The feature is still in development but it will provide some way of confirming and visually conveying that an NFT displayed in a Twitter profile is authentic, and that it is owned by the same person as the Twitter profile. This integration will make those claims vastly clearer and more powerful.

“Securitize has signed on to provide a smart contract and issuance platform for the firm, starting with Arca’s tokenized fund dubbed the “Arca U.S. Treasury Fund,” which was launched in July 2020. Securitize is a registered transfer agent with over 200 clients and nearly a half-billion dollars in regulated securities issued in the past three years.

Arca touts the Arca U.S. Treasury Fund as the first treasury fund registered under the Investment Company Act of 1940 to issue shares as digital assets via the blockchain. The fund meets the same regulatory requirements as a mutual fund, but differs by offering exposure via Ethereum-based digital asset security tokens called “ArCoin.”

Institutions have struggled to meet investor demand because few tokenization companies have met the rigorous regulatory and operational thresholds required by investors.”

“The Future of Life Institute, a charity and outreach organization, is launching two fellowship programs named after Ethereum creator Vitalik Buterin. The Vitalik Buterin Ph.D. and postdoctoral fellowships are centered on “existential safety research” in artificial intelligence (AI).

The institute is ‘working to ensure that tomorrow’s most powerful technologies are beneficial for humanity.’ Specifically, the Future of Life Institute focuses on keeping artificial intelligence “beneficial,” while exploring ways of reducing risks from nuclear weapons and biotechnology.

The fellowship includes an annual $80,000 stipend and a fund of up to $10,000 that can be used for research-related expenses such as travel and computing.”