| |
| Hey Insider! Welcome to the week's last Inside Cryptocurrency newsletter! As the week is closing, blockchain-focused efforts from giant companies have come to the fore in the crypto industry. Today's issue covers the details of these efforts as well as several other prominent stories, including the U.S. derivatives market regulator's crackdown on decentralized finance (DeFi) platforms, the markets in Coinbase's priority, the global crypto wealth statistics, and more. Enjoy your reading, and if you find this newsletter useful, please do not forget to share it with your friends and colleagues! Doğa
p/dogayurduneri | |
| 1 | | The U.S. Commodity Futures Trading Commission (CFTC), the top derivatives market regulator in the U.S., has recently taken new enforcement actions against three separate decentralized finance (DeFi) platforms. The companies that came under scrutiny include Opyn Inc., ZeroEx Inc., and Deridex Inc. More: - The agency has alleged these three companies of violating the CFTC's rules by illegally allowing customers in the U.S. to trade digital asset derivatives without registration.
- The commission also issued a cease-and-desist order for these firms, ordering them to halt their illegal operations.
- Besides, the three DeFi platforms were fined $250,000, $200,000, and $100,000, respectively.
- The companies have yet to admit or deny the CFTC's allegations.
- CFTC's enforcement director, Ian McGinley, said DeFi platforms got the idea that unlawful transactions become lawful if facilitated by smart contracts.
- However, some CFTC members, including Republican commissioner Summer Mersinger, disagreed with the agency's judgment and enforcement actions.
- Mersinger stated that the CFTC should focus first on establishing clear rules for DeFi rather than taking enforcement action.
Q: Do you agree with the idea that the regulatory agencies should focus on establishing clear rules rather than enforcement while overseeing the crypto industry? Join the conversation here. |     | |
| 2 | | 
What the numbers say: A recent report from investment firm Henley & Partners and wealth intelligence company New World Wealth has revealed the global crypto wealth statistics as of June 30, 2023. The study has shown that only 22 of the total 425 million crypto owners worldwide are billionaires, with six from Bitcoin (BTC), the largest cryptocurrency by market cap. The statistics have also pointed out that there are currently 88,200 crypto millionaires, and nearly half of them became rich from Bitcoin. The numbers of the crypto and Bitcoin centi-millionaires, holding $100M or more, were also recorded as 182 and 78, respectively. Besides, crypto media outlet The Block has indicated that 88,200 crypto millionaires account for only 0.15% of the estimated 60 million millionaires all around the world. Relevance: On the other hand, another report from June showed that Bitcoin made 47,994 people crypto millionaires in 2023. The number of Bitcoin addresses holding more than $1M increased to 76,078 as of June from 28,084 in January, with a 170.89% surge in just five months. The increased number of addresses with more than $1M of BTC was mainly attributed to the price increase Bitcoin saw since the beginning of the year. The leading cryptocurrency spent the first half of the year more successfully than last year, capturing an upward trend. However, the token later experienced a slight price decrease again due to a broader market downturn. Brands that should care: Besides, the increased crackdown by regulators on the crypto market, the surge in the volatility of cryptocurrency prices, and the consecutive collapses of high-profile crypto firms have caused investors to lose interest in digital assets over the past year. Recent data showed that trading volumes on the spot crypto exchanges, such as Binance, Coinbase, and OKX, retreated to the lowest level in four and a half years in August. | | | |
| |
|
| 3 | | JPMorgan, the largest U.S. bank by assets, has started working on a blockchain-based digital deposit token that could be used to easily send money to clients of other banks, according to a recent report from Bloomberg citing sources familiar with the issue. The deposit token will aim to speed up cross-border payments and settlements. More: - The bank has already developed most of the token's infrastructure, though it does not plan to launch the token before the project is approved by the U.S. regulators.
- The product is expected to be launched for corporate clients less than a year after receiving the necessary approvals.
- Deposit tokens serve as digital coin versions of deposits held by customers in their accounts to represent a deposit claim against a commercial bank.
- Deposit token transactions are mostly cheaper and immediate since they are processed on the blockchain, though they are designed to be used within the traditional financial system.
- JPMorgan also has another similar blockchain-based project dubbed JPM Coin that allows institutional customers to move dollars and euros between their various accounts within the bank.
- The new deposit token, however, will be used to transfer money to clients of another bank.
- The token will be first denominated in U.S. dollars (USD), with plans for availability in other fiat currencies later.
- The bank will also not allow its deposit token to be used for purchases of cryptocurrencies or as a replacement for stablecoins.
Zoom Out: - JPMorgan has launched many high-profile projects so far to bring blockchain technology to traditional finance (TradFi), becoming one of the few companies that managed to put some of these projects to commercial use among its rivals.
- The bank previously tested the issuance of deposit tokens in a single transaction in 2022 as part of a joint project with the Monetary Authority of Singapore (MAS).
| | | |
| 4 | | Binance, the largest crypto exchange by trading volume, has announced that it would end support for Polygon-based NFTs on its NFT marketplace as of Sept. 26. The platform said users would not be able to buy, deposit, offer, or list NFTs from the Polygon blockchain network after the specified deadline. More: - All impacted listings for NFTs minted on Polygon will also be automatically canceled by Binance NFT, and the corresponding NFTs will be returned to the users' accounts after Sept. 28.
- However, users will have time until Dec. 31, 2023, to withdraw their NFTs through Polygon from Binance's NFT marketplace.
- Additionally, Binance will also discontinue the NFT staking program for The Sandbox.
- The company cited its careful consideration and evaluation while explaining the decision.
- The move will see Binance users unable to stake The Sandbox's Polygon-based LAND NFTs to earn daily SAND rewards as of Sept. 26.
- All remaining staked SAND NFTs on Binance will be automatically unstaked on Sept. 27 and returned to the users' accounts after Sept. 28.
- Binance's NFT marketplace will start supporting only three blockchains, including BNB Chain, Ethereum, and Bitcoin, after removing Polygon.
| | | |
| A message from our sponsor, Segment. |  | | Segment is now free for early-stage startups. Here’s why you should care. If you’ve ever had to deal with customer data, you’ve probably run into Segment. You might know that Segment: 🙌 Simplifies tracking (client and server-side), so you don’t need to log every event with 8 different tools 💪 Empowers marketing to install tools without bugging a developer (crazy we know) ⛽ Pumps data from various tools into others (e.g., Intercom ⇒ Mixpanel) …. but what you probably DON’T know is that if you’re an early stage startup, you can get Segment FOR FREE. Yep, you read that right. The ultimate analytics setup, free, for up to two years. And there’s loads of other perks. Check if you're eligible now. Apply Here 
| |
|
| 5 | | Coinbase, the largest U.S. crypto exchange, has arrayed new regions and countries that are its priority to establish or strengthen its operations in the near term. The list includes the European Union (EU), the U.K., Canada, Brazil, Singapore, and Australia. More: - The company cited clearer crypto regulations in these regions while explaining its choices.
- The official statement has pointed out that Coinbase would focus on obtaining licenses, registering with local regulators, and establishing or boosting its operations in these markets.
- The firm also criticized its home country, stating that every major economy in the world made progress toward regulatory clarity for crypto except for the U.S.
- The platform added that the U.S. is sidelining itself on crypto regulations, putting its influence over the digital asset market at risk.
- The statement further underlined that Coinbase is still committed to helping update the global financial system and providing more economic freedom and opportunity.
Zoom Out: - Earlier in 2023, Coinbase entered a legal battle with the Securities and Exchange Commission (SEC) in the U.S. after the agency filed a lawsuit against the platform over alleged securities law violations.
- The heightened regulatory pressure in its homeland forced the company to accelerate its global expansion plans, though the CEO Brian Armstrong reiterated their commitment to the U.S. several times.
- Over the last months, many other crypto exchanges, including Binance, Kraken, Gemini, and Bittrex, also came under increased crackdown by the SEC.
| | | |
| 6 | | Ant Group, the financial technology-focused affiliate of the Chinese e-commerce giant Alibaba, has launched a new blockchain service dubbed ZAN. The new brand will offer blockchain application development products and services to both institutional and individual Web3 developers. More: - The service will also help institutional clients issue and manage real-world assets in compliance with local regulations.
- The technical products offered by ZAN will include electronic identity verification, transaction checking, anti-money laundering, and counter-terrorism financing measures.
- Web3 businesses will be able to improve their abilities in identity authentication, security protection, and risk management using these products.
- HashKey Group, the parent company of Hong Kong-based crypto exchange HashKey, has already adopted ZAN's electronic identity verification feature.
Zoom Out: - Ant Group, also the owner of the world's largest mobile payment platform, Alipay, previously launched another blockchain brand dubbed AntChain in 2020.
- Over the last several years, Alibaba's cloud computing arm, Alibaba Cloud, has also accelerated its efforts toward the Web3 industry by entering into strategic partnerships with some of the leading brands in the market, such as NEAR Foundation, the Avalanche network, and Mysten Labs.
| | | |
| 7 | | Quick Hits: - Launch your MVP with AWS. The Build Accelerator offers access to on-demand content, technical support, and $2K in AWS Activate credits. Apply today!*
- Collapsed Turkish crypto exchange Thodex's CEO, Faruk Fatih Ozer, has been sentenced to 11,196 years in prison for committing aggravated fraud, leading a criminal organization, and money laundering.
- Bankrupt crypto exchange FTX's former executive, Ryan Salame, has been released on a $1M bond after he pleaded guilty to criminal charges against him.
- The U.S. Federal Bureau of Investigation (FBI) has identified North Korean cybercrime organization Lazarus Group as responsible for a $41M crypto theft targeting the largest crypto gambling site, Stake.
- ARM targets $60B IPO valuation, Instacart at $24B. Get access to the Top 25 pre-IPO deals like Stripe, OpenAI, Databricks and Anduril.*
*This is a sponsored post. | | | |
| Upcoming Events | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | * This is a sponsored event | | | |
Term of the Day Data mining: Data mining refers to the process of sorting through and analyzing large quantities of raw data. Question of the Week Do you share details about your salary with your coworkers? Join the conversation |
INSIDE CRYPTOCURRENCY LEADERBOARD (ALL-TIME) |
 | Staff Writer | | Doga is a tech and science editor who has been writing news for nearly 10 years. She worked for leading tech platforms and mainstrem media channels as an editor and presenter throughout his career. Then, she carried her know-how to more than one platform. She is a part-time cat lover and binge-watcher, and also fond of science, space, and emerging tech. She always has a story to tell. She is a bit addict to the laughter and -unfortunately- the '90s culture. | | This newsletter was edited by Aaron Crutchfield | |
| |
 | Harness A.I. Technology for Trading Success with VantagePoint. | |
|
 | Segment is now FREE for select startups | |
|
| |
Comments
Post a Comment