Cryptocurrency News by Tradecoind2

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Several intriguing developments have surfaced in the field of AI during the past week. During this period, the focus within this burgeoning sector has shifted towards a waning of investor excitement. Morgan Stanley, the financial services company, has voiced the view that the AI bubble is reaching its zenith.

Edward Stanley, who leads thematic research at Morgan Stanley, suggests that investors should exercise caution when delving into AI investments and should approach the "bubble-like euphoria" with prudence. He draws parallels between the current AI excitement and the market bubbles that emerged and subsequently burst in the 1970s. According to the researcher, historical patterns indicate that investors need not rush into multiyear themes.

Stanley further highlights that the exuberant surge in AI stocks, combined with a recent deceleration in the launch of AI products, might necessitate a measured approach from investors during the latter half of the year.

On a different note, in China, multinational technology company Alibaba has expressed concerns about limitations impeding their AI training endeavors as the country intensifies its AI initiatives. The e-commerce giant points to a scarcity of crucial components like relevant chips that is inhibiting their AI progress. This scarcity is perceived as a potential setback for China's aspiration to keep stride with the United States in the global AI competition. Significantly, the U.S. has recently barred China from acquiring advanced chips manufactured by tech firm Nvidia.

Alibaba's Chairman and Chief Executive Officer, Daniel Zhang, revealed that in the previous quarter, they experienced heightened demand for AI model training and related services. However, their capacity to fulfill these demands was hampered due to supply chain bottlenecks on a global scale.

Numerous other nations are also escalating their endeavors in the AI realm. Israeli Prime Minister Benjamin Netanyahu, in a recent interview with Bloomberg, articulated his ambition to formulate a government policy and allocate funds to position Israel as one of the top three AI powerhouses worldwide.

 

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Legal representatives for Kyle Davies have presented evidence showing that he renounced his U.S. citizenship in 2021. This development, as determined by a bankruptcy judge, places him outside the jurisdiction of the court.

In the bankruptcy proceedings of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), a judge has rejected a motion seeking to hold co-founder Kyle Davies in contempt of court and impose sanctions.

In a submission made on August 11th to the United States Bankruptcy Court for the Southern District of New York, Judge Martin Glenn stated that previous rulings on motions related to a subpoena directed at Davies through X, formerly known as Twitter, were made without the knowledge that the co-founder of 3AC was a non-U.S. citizen residing abroad. He invoked federal laws pertaining to compliance outside the U.S., further noting that his approval of motions starting from December 2022 "was based on the assumption, according to the information available at that time, that Mr. Davies was a United States citizen."

On August 1st, Davies' legal representatives provided evidence that he had applied to renounce his U.S. citizenship in December 2020 and had subsequently become a citizen of Singapore after marrying a national of that country. Notably, Singapore does not allow dual nationality. This submission was made in response to a contempt motion filed by foreign representatives of 3AC in the U.S. bankruptcy case due to Davies' failure to respond to an online subpoena.

Judge Glenn highlighted that, until Davies contested the issue, the court had been operating under the assumption that he was a U.S. citizen, which had implications for establishing personal jurisdiction. However, because Davies' U.S. citizenship was a prerequisite for the valid service of the subpoena, he was not appropriately served with the court's issued subpoena.

The judge suggested that the foreign representatives could explore enforcing Davies' compliance through Singaporean courts. He ultimately rejected the contempt motion and emphasized that the U.S. court largely lacked the authority to "exercise jurisdiction over Mr. Davies."

Co-founder Su Zhu of 3AC, who was also served a summons via X, is a citizen of Singapore and, as such, not subject to the subpoena, as he resides outside the United States. Since the collapse of 3AC in July 2022, the whereabouts of both Zhu and Davies have largely remained unknown. However, Davies' legal team disclosed his residence in Singapore in the August 1st filings.

The liquidators overseeing 3AC are striving to recover approximately $1.3 billion in funds from the two co-founders, as reports suggest the firm owes creditors around $3.5 billion. In April, both Davies and Zhu were involved in the launch of Open Exchange, a platform designed to enable users to trade claims against insolvent cryptocurrency companies.

 

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Visa, the prominent player in the payments industry, is actively exploring the potential of enabling users to pay transaction fees on the leading Ethereum smart contract platform using a traditional card-based method.

In a fresh blog post, the credit card giant outlines how this could simplify the intricate process of conducting transactions on Ethereum by allowing users to settle gas fees using cards.

Currently, Ethereum transactions necessitate the use of its native cryptocurrency, ETH, to cover gas fees. This requirement often results in converted transactions. Visa argues that by facilitating the payment of Ethereum gas fees through a card, the steps involved in completing transactions could be significantly reduced.

The blog post elaborates on the hurdles posed by the existing system:

"The complexity of paying for transactions or operations on blockchains is a significant barrier in the realm of cryptocurrencies. Each operation on a blockchain incurs a 'gas' fee, which represents the computational effort needed to execute the action. Ethereum's gas fees, for instance , must be settled using the platform's native token, ETH."

Despite the existence of stablecoins like USDC for transactional purposes, users are still compelled to maintain a separate ETH balance to cover Ethereum's gas fees. This often leads to the adoption of intricate and occasionally expensive methods. Some rely on on-ramp services to convert fiat currencies into ETH, while others buy ETH on centralized crypto exchanges and subsequently transfer it to their wallets.

Visa's proposition intends to address these challenges by users allowing to use a fiat-loaded card to cover Ethereum's gas fees. Through a collaborative effort involving three of its departments, Visa has developed a solution utilizing Ethereum's ERC-4337 standard and a paymaster contract. This approach would empower Visa cardholders to directly settle their gas fees using their cards.

In the company's view, this innovative approach holds the potential to simplify the onboarding process for new cryptocurrency users and enhance the experience for existing ones. By offering a more user-friendly and adaptable approach, Visa aims to bridge the gap between traditional financial transactions and the intricate realm of cryptocurrency operations on the Ethereum platform.

 

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Base has burst onto the Layer 2 (L2) scene with a surge in user engagement and a remarkable rise in Total Value Locked (TVL). This impressive growth raises questions about its potential to challenge established L2 giants.

Since its launch in July, Base has maintained a respectable level of user engagement. However, it recently experienced a significant update in both active users and TVL. This surge in growth prompts us to explore how it measures up against other Layer 2 solutions.

https://twitter.com/x/status/1689847907875504128

Notably, data from Dune Analytics indicates that Base, functioning as a Layer 2 solution, recently witnessed a significant spike in its daily active user count. On August 10th, the number of active users exceeded 136,000—a record high since its inception. Experts suggest that this sudden increase could be attributed to the growing popularity of a social network built on the Base platform.

Currently, the network boasts more than 75,000 active addresses.

Prior to the surge in active users, Base had demonstrated consistent growth in the value bridged across its platform. According to figures from Dune Analytics, the cumulative bridged value has reached around $180 million. Concurrently, daily transaction volumes have experienced a significant boost, reaching their second-highest point since the platform's inception. On August 10th, approximately 580,000 transactions were recorded, and the number stood at about 300,000 at the time of writing.

In addition, the platform continues to attract numerous new users on a daily basis. On August 10th, this count was around 42,000, and more than 27,000 new users have joined since then. This upward trajectory across various metrics has consistently influenced the platform's Total Value Locked.

Source: DuneAnalytics

In terms of TVL within the Layer 2 landscape, Base has achieved a remarkable 80% surge within the last 24 hours, bringing its TVL to approximately $171 million. This represents about 1.63% of the total TVL across various Layer 2 solutions.

It's remarkable that this performance positions Base as the fifth-largest holder of TVL within the Layer 2 ecosystem. However, Arbitrum continues to dominate the L2 market with over 50% market share and around $6 billion in TVL. As Base continues to make waves, its potential to disrupt the existing L2 landscape remains an attractive development to watch.

Source: L2 Beats

 

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Chen Peiyun has revealed that the Financial Supervisory Commission (FSC) of Taiwan has identified Binance, the world's leading cryptocurrency exchange by trading volume, as a potential player in the Taiwanese crypto market.

Reports indicate that Binance has initiated the registration process within Taiwan's regulatory framework, as mandated by the Money Laundering Control Act and the FSC. This move is in line with the exchange's efforts to ensure compliance with Anti-Money Laundering (AML) regulations.

Chen Peiyun, co-founder of BitShine, a cryptocurrency exchange based in Taiwan, shared these insights. He revealed that the FSC has communicated with various local crypto service providers about Binance's endeavor to achieve AML compliance in Taiwan.

Binance has not yet commented on these developments.

Taiwan's cryptocurrency sector has operated with limited regulation thus far. However, the FSC introduced AML guidelines in July 2021 to enhance security and transparency. These guidelines require all cryptocurrency exchanges operating within or offering services to Taiwan to adhere to AML regulations.

Binance's presence in Taiwan is established through a local subsidiary known as Binance International Limited Taiwan Branch (Seychelles). This entity was formally established on May 12, 2023, as indicated by registration records.

Beyond registration, Binance has also collaborated with local governmental bodies to combat cybercrime, underscoring their dedication to security.

It's important to note that Taiwan's cryptocurrency policies remain distinct from those of mainland China, which implemented a comprehensive ban on all cryptocurrency-related activities in 2021.

Binance's reported interest in the Taiwanese cryptocurrency market coincides with its facing increased regulatory scrutiny in the United States and Europe. The company is currently dealing with multiple legal actions in the U.S. and has withdrawn from several European jurisdictions due to regulatory conflicts.

 

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What is FedNow? The Fed’s New Instant Payment System and Its Implications for CBDCs​

The Federal Reserve has launched a new payment system called FedNow, which will allow banks and financial institutions to perform interbank transactions instantly and at a cost of 0.40 cents, with 24/7 availability.

The FedNow system has been the topic of discussion for many politicians, financial institutions, cryptocurrency enthusiasts, and the average US citizen. So what is FedNow? A prototype for a central bank digital currency (CBDC) or just an instant payment system?

Understanding FedNow​

FedNow is a payment system for interbank transactions, exclusive to financial institutions of all sizes and shapes which can access it through FedLine, the Federal Reserve’s electronic messaging system.

Comparing ACH and Wire Transfers​

Compared to other interbank transaction systems, we see why FedNow is much needed and desirable to businesses and average citizens.

• In the US, the two most common ways of doing interbank transfers are through ACH and wire.
• However, ACH can take up to 2-3 business days and can either go through FedACH, or EPN, the only private operator on the ACH network.
• On the other hand, wire transfers can take a few hours but are considerably more expensive.

Either way, these two systems have to go through the Fed, which will take care of withdrawing money from the specified issuer and send it to the specified recipient’s account.

FedNow vs ACH, Wire Transfer​

FedNow, on the other hand, provides 24/7 availability, near instant transactions, and with transaction fees as low as $0.045. Here’s a look at FedNow’s 2023 fees schedule:

It’s quite an efficient interbank settlement system that’s much needed for the US financial system, but some people will probably ask themselves why the US didn’t bother to launch it decades ago, considering Europe has SEPA and Brazil has PIX. These systems have been up and running efficiently for several years now.

Going back to FedNow’s structure, it will allow natural people to transfer from $100,000 to $500,000 —though they won’t be using FedNow directly, and will rather use it through banks and financial institutions that will be offering them to clients.

Intermediated CBDCs​

The last point is important. FedNow resembles a lot an intermediated CBDC, which is the model proposed by the Federal Reserve a year ago.

Under an intermediated model, the private sector would offer accounts or digital wallets to facilitate the management of CBDC holdings and payments. An intermediated model would facilitate the use of the private sector’s existing privacy and identity-management frameworks.

In short, intermediated CBDCs is a model in which the central bank controls the CBDC but the private sector (the banks) offer accounts and wallets for their users. It’s a bit more complex procedure but that’s the gist of it. By now, it should sound similar to what FedNow is, or can be.

The Fed Speak Phenomenon​

What’s more concerning is how Jerome Powell addressed the question of what are the proper legal parameters the Fed needs to follow if it were to launch a CBDC. He said Congress approval is needed for retail and wholesale CBDCs, but doesn’t elaborate on intermediated CBDCs, which leaves a lot of questions in the air, for starters:

• What legal parameters do they need to cover?
• Why doesn’t Powell mention intermediated CBDC?
• And how will this affect the financial privacy and freedom of US citizens?

The way Powell avoids direct questions and employs misleading or confusing comments is a common speech form called Fed Speak, a term coined by Alan Blinder to describe the “turgid dialect of English” used by Fed chair members to speak sentences that have no substance or clear meaning and with as much words as possible.


Another example of this occurred in September 2022, when the House Committee demanded Lael Brainard, the Fed’s former Vice Chair to provide clear and insightful answers to a series of questions regarding how much authority the Fed has for issuing a CBDC and also clarify other testimonies in a May hearing. Instead of answering in a clear, concise manner, she repeated the Fed’s stance on a CBDC.

“The Board’s January discussion paper notes only that, “The Federal Reserve does not intend to proceed with issuance of a CBDC without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law.”

The first question that pops into mind is, what does ideally mean here? Do they actually need approval from Congress, or are they just going to bypass the law?

Is FedNow a CBDC Prototype?​

Shortly after it was announced in March 2023, there were a number of concerns regarding FedNow and its eerie resemblance to a permissioned blockchain; an ecosystem in which only permissioned financial institutions and individuals have control of the blockchain, managing who makes transactions, the amount of said transaction, what will be transferred, block undesired users, etc.

One of the main concerns is FedNow being used to become the next CBDC prototype. And this concern has been voiced by multiple financial institutions and politicians in the US. Tom Emmer issued the CBDC anti-surveillance State Act in order to stop the Fed’s effort of researching and prototyping a CBDC.

Private Banking and Lending: Risks of CBDCs​

Credit institutions like The Credit Union Association (CUNA) said that a CBDC is unnecessary, and that the current financial landscape in the US could be modernized and enhanced without destabilizing the economy.

Private banking is another sector where CBDCs could become a radical disruption; crowding out the banks as the government provides the same services without charging. This will not create healthy competition, like the Fed says, but cause people to quit their banks instead and undermine financial markets.

Cyber-security Threats Can Cause Systemic Risk​

The second biggest concern is how well the Fed is informed and prepared to create a state-of-the-art infrastructure that’s bulletproof against major hacks and cyber-attacks. A hack into a monetary system, for example, could cause systemic risk since said system contains the information and account access of multiple financial institutions, corporations, government officials, wealthy individuals and the average users.

Integration With Blockchain Systems​

Another concern, which is by far the most evident but seemed completely overlooked, is the fact that FedNow integrated with Metal Blockchain, a layer zero (an infrastructure in which layer-1s are built) that complies with the Bank Secrecy Act, therefore they are compliant with anti-money laundering (AML) and know your customer (KYC) laws and this allows Metal Blockchain to provide decentralized finance builders and projects with compliance-friendly options.

But another feature is that Metal Blockchain is built as a fork of Avalanche (AVAX), so it makes sense that they have the X-Chain, which allows builders to create, customize and manage tokens as they please as per their criteria. As per its founders, Metal Blockchain can be used as a foundational layer for CBDCs, allowing a system of “bank chains” that communicate and manage CBDCs.

In theory, a CBDC can be an effective way of modernizing and automating transfers and keeping track of a system’s financial health, avoiding any undesired users or preventing major scams. But it can also become a dangerous tool in the hands of surveillance-obsessed governments and institutions, squeezing what little is left of financial freedom and privacy.

 

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One under-the-radar decentralized finance (DeFi) altcoin is outpacing the overall crypto market this week as the project launches the testnet of a new payments feature.

In a new announcement, cloud-focused DeFi protocol Akash Network (AKT) says it has rolled out the testnet of its Stable Payments feature, which will allow traders to settle payments using Circle’s stablecoin, USD Coin (USDC).

As stated by Overclocked Labs, the creators of Akash Network,

“Stable Payments on Akash just successfully passed initial testing. This key feature of AKT 2.0 will enable users to settle deployments in USDC. It’s live on the public testnet right now, and it will be included as part of the upcoming Akash GPU (Graphics Processing Unit) mainnet upgrade.”

News of the new feature sent AKT skyrocketing, as the digital asset went from a price of $0.577 on August 6th to a peak of $1.17 on August 11th, an increase of over 102%. The altcoin is trading at $1.12 at time of writing.

Circle CEO Jeremy Allaire gave a shout-out to the collaboration with Akash Network, describing the partnership as a decentralized cloud infrastructure with globally available settlement currency.

According to Cheng Wang, CFO of Overclock Labs, adding USDC to Akash Network will help alleviate the issues associated with only having AKT as the only supported form of payment over the protocol. Wang says the issues include a lack of price stability and the process users have to go through to acquire AKT.

AKT, which also focuses on machine learning and artificial intelligence (AI), launched AI testing on its testnet in May, which at the time also caused the crypto asset’s price to rise.

 

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$99,000,000,000 Withdrawal Goes Viral As JPMorgan Chase Accused of Initiating Massive Transaction and Freezing Bank Account​

An apparent banking blunder is going viral after a Reddit user reported a truly massive withdrawal from his JPMorgan Chase account.
A post shot to the front page of Reddit after the user said the bank abruptly withdrew over $99 billion from his checking account.
According to the user, the withdrawal automatically caused his account to freeze, and all attempts to contact customer support for an explanation have failed.

“My checking account has been like this since last Monday and I’ve called Chase and been transferred to five different departments and nobody knows WTF is going on.

And I’ve got a mortgage due at the first of the month. Once this clears up, because of Chase’s incompetence I’m considering switching to Wells Fargo.”
This wouldn’t be the first time a JPMorgan Chase account has been overdrawn by $99 billion.
In April of 2016, a woman in Chicago abruptly realized $99 billion had been withdrawn from her deceased mother’s bank account.
At the time, Chase told ABC News it was “investigating the issue”.
And in February of 2020, a woman in Texas was shocked to see that the account that she shared with her late husband was also overdrawn by more than $99 billion.
In response to that report, a Chase representative said it routinely places massive debt on accounts held by people who have passed away to protect against unauthorized withdrawals.

 

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Polkadot’s staking ecosystem has been growing since July 2023. Its TVL has also been on the rise for multiple months.

• DOT’s daily chart turned green as its price increased by 1.3%.
• Most of the metrics were bearish on DOT, but a few indicators suggested otherwise.

Polkadot’s [DOT] price has been on a declining trend for quite a few weeks now. Despite the drop in its value, the blockchain’s staking ecosystem has witnessed substantial growth during that period. In fact, its staked token trend surged by more than 300% in just the last 24 hours.

https://twitter.com/x/status/1689848645988884480

Not only that, but the total amount of DOT staked has also risen, reflecting stakers’ confidence. As DOT’s price continues to remain somewhat under bears’ influence, will the growth in staking have any positive impact on the token’s value?

Polkadot’s staking ecosystem is growing well​

Despite the drop in price, Staking Rewards’ data pointed out that Polkadot’s staking ecosystem has been growing since July 2023. This was evident from the rise in the total amount of staked DOT.

At press time, Polkadot had nearly 39k staking wallets with more than 615 million staked tokens.
Moreover, there was a rise noted in terms of the number of DOT stakers over the last month. While writing. Polkadot had a staking ratio of 45.8% and a staking market capitalization of $3.08 billion.

Source: Staking Rewards​

Growth was not only noted in terms of staking but also in the blockchain’s DeFi space. DeFiLlama’s data pointed out that the blockchain’s TVL has been on the rise since the beginning of the year, which looked encouraging.

TVL represents the number of assets that are being staked under a specific protocol at the moment. Therefore, a rise in the metric reflects an expansion in the DeFi space.

Source: DeFiLlama​

Polkadot turns green
After a long wait, DOT finally showed signs of recovery as its chart turned green. According to CoinMarketCap, DOT’s price increased by nearly 1.3% in the last 24 hours. At press time, it was trading at $5.02 with a market cap of over $6.1 billion.

However, the uptrend might not last long, as its price uptick was accompanied by a decline in its trading volume. Additionally, negative sentiment around DOT was dominant in the market, as evident from its weighted sentiment.

Crypto prices tend to move in the opposite direction from their funding rate. In this case, DOT’s Binance funding rate was green, increasing the chances of a price decline.

Source: Santiment​

Nonetheless, a few of the market indicators were bullish. DOT’s MACD displayed the possibility of a bullish crossover. Its Money Flow Index (MFI) was just near the oversold zone, which can increase buying pressure.
Moreover, Polkadot’s Chaikin Money Flow (CMF) was resting above the neutral mark, which was bullish.

Source: TradingView​

 

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AAVE’s price began its descent prior to Curve’s hack. As the lending protocol gears up to purchase Curve tokens, interest in AAVE wanes further.

• Aave DAO has passed a proposal to purchase $2 million CRV tokens.
• The majority of AAVE investors continued to hold at a loss.

In a new proposal, the governing body of the Aave [AAVE] lending protocol has approved the acquisition of $2 million worth of Curve [CRV] tokens.

This decision was necessary due to the protocol’s exposure to Curve’s hack. As contained in the proposal,

“The acquisition aims to support the DeFi ecosystem and position Aave DAO strategically in the Curve wars, benefiting GHO secondary liquidity.”

Day traders remain unmoved​

While this was a significant development that might influence the protocol’s trajectory in the coming months, holders of its AAVE tokens appear unimpressed.

An assessment of trading activity in the past 24 hours revealed that sentiment remained negative amid declining accumulation pressure. In fact, the decline in interest in governance tokens preceded Curve’s hack.
According to data from IntoTheBlock, AAVE’s network activity has dwindled since the end of June. The count of daily active addresses trading the altcoin has since dropped by 94%. For context, as of 11 August, only 514 addresses completed AAVE transactions. On 23 June, this was 11,280 addresses.

Likewise, daily new addresses have also plummeted. With only 125 new addresses created on 11 August, new demand for AAVE has dropped by 14% during the same period.

As interest in AAVE declined, whale activity also fell. Per IntoTheBlock, the daily count of large transactions that exceed $100,000 has been reduced by 94% since 23 June.

With a persistent drop in value and token accumulation, many AAVE holders have remained “out of money,” according to IntoTheBlock’s In/Out of the Money metric.

This metric calculates the average price at which investors purchase tokens. It then contrasts it with the asset’s current market value. If this value is higher than the average cost for an address, the address is said to be “in the money,” that is, the account holds at a profit.

Conversely, if the current price is lower than the calculated average cost, the address is categorized as “Out of the Money,” as it holds at a loss.

At press time, 78.48% of all AAVE holders hold below their average cost prices.

Amongst day traders, AAVE accumulation slowed. At press time, key momentum indicators remained below their respective neutral lines, suggesting that selling pressure outweighed buying momentum.

At 21.43%, AAVE’s Aroon indicator showed that the token’s most recent high was reached long ago.

 

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Bitcoin experienced a slight dip, maintained a range near $29,380 over the weekend. Ether and most other cryptocurrencies in the top 10 by market remain relatively stable.

During Monday morning in Asia, Bitcoin witnessed a marginal decrease after hovering around the $29,380 mark throughout the weekend. Ether and the majority of the top 10 cryptocurrencies, excluding stablecoins, saw minimal changes in their values. Notably, Dogecoin faced a significant drop, while Shiba Inu showed an exception by surging ahead due to its upcoming layer-2 network launch. This improvement followed a period of green ink for the Forkast 500 NFT index. In addition, risk sentiment in the U.S. equities showed signs of improvement as traders assessed the latest inflation data. Investors are now anticipating a series of earnings reports scheduled for the upcoming week.

Over the last 24 hours, Bitcoin experienced a minor decline of 0.10%, landing at $29,375.75 as of 5:45 a.m. in Hong Kong. However, it had recorded a 0.96% gain for the week, as reported by CoinMarketCap. While the weekend, the world's largest cryptocurrency maintained its price around the aforementioned level.

Ether, on the other hand, demonstrated a slight increase of 0.11%, reaching $1,849.50 and securing a weekly gain of 1.00%.

Industry analysts continue to forecast a potential market upswing in anticipation of various U.S. application rulings related to spot Bitcoin exchange-traded funds (ETFs).

In June 2023, notable financial entities like BlackRock and other major U.S. financial institutions submitted applications to the U.S. Securities and Exchange Commission (SEC) for the creation of spot Bitcoin ETFs. While the SEC had previously rejected similar applications due to concerns about market manipulation and volatility, the recent surge in applications has raised hopes for the introduction of a spot Bitcoin ETF. The SEC was initially expected to announce its decision on the Spot Bitcoin ETF application from Ark Investment on August 13. However, the regulatory body announced on a Friday filing that it would extend the deadline by soliciting public comments on the ETF proposal.

Luuk Strijers, the Chief Commercial Officer of the crypto derivatives exchange Deribit based in Panama, mentioned, "Any announcement related to ETFs would likely impact BTC more significant than ETH, although the likelihood of immediate ETF-related news is low." He noted that there's a minor uptick in BTC, particularly concerning its comparison to ETH. He attributed this potential catalyst to the impending ETF news in the short term and the influence of the halving event on the longer-term market.

Bitcoin's next halving event is projected to occur in April 2024. This event will lead to a reduction in the introduction of new Bitcoin by half, subsequently increasing its scarcity. This scenario is widely anticipated to result in a surge in the token's value.

Most other non-stablecoin cryptocurrencies within the top 10 remain stable on Monday morning. The exceptions were the meme coins Dogecoin and Shiba Inu.

Dogecoin faced a decrease of 2.11%, valuing at $0.07524 and exhibiting a 0.25% decline over the past seven days. Meanwhile, the Shiba Inu meme coin briefly entered the top 10 cryptocurrency list on CoinMarketCap over the weekend. This pushed Polkadot's DOT down to the eleventh position in terms of market capitalization. Despite a 3.01% decline over the last 24 hours, the meme token still recorded an 11% gain for the week.

Developers of Shiba Inu are expected to launch its layer-2 network, Shibarium, in the near future, although a specific date has not been announced. This update aims to enhance user security through self-sovereign identity (SSI) protocols, according to a Shiba Inu blog post uploaded on August 6.

Over the past 24 hours, the total crypto market capitalization grew by 0.09% to reach $1.17 trillion. Simultaneously, the trading volume increased by 7.08% to $17.82 billion.

 

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The former president and leading Republican contender for the 2024 election has previously expressed skepticism about the value of cryptocurrency.

Recent financial disclosure documents submitted to a federal ethics agency reveal that Donald Trump possesses an estimated half a million dollars in cryptocurrency. The disclosure, filed with the Office of Government Ethics, details his various assets and income sources. Within the 82-page document, a "cryptocurrency wallet (Ethereum)" is mentioned, with a valuation ranging between $250,000 and $500,000.

This cryptocurrency wallet appears to be associated with a collection of non-fungible tokens (NFTs) that were released by his campaign as part of his endeavors to secure the presidency in 2024. These NFTs consist of virtual trading cards depicting Trump in diverse roles such as a superhero, cowboy, and astronaut. Priced at $99 each, these tokens were launched in December 2022.

The tokens achieved significant traction over the following months, including a period after Trump faced legal action in New York, but the demand subsided when he introduced a second batch in April, causing the value of the initial set to plummet.

This development is considering Trump's previous negative stance on cryptocurrencies. Despite being critical of digital currencies, he has questions their value in a manner resembling his Democratic rivals rather than his Republican counterparts.

During his time in office, Trump tweeted about cryptocurrencies just once in July 2019, expressing his lack of enthusiasm for Bitcoin and other digital currencies. Anthony Scaramucci, his former communications director, later suggested that Trump might not have personally composed the now-deleted tweet.

Following his defeat in the 2020 presidential election, Trump stated in a June 2021 interview with Fox Business that he viewed Bitcoin as a potential scam, asserting his preference for traditional fiat currency. He emphasized his desire for the U.S. dollar to maintain its position as the global currency.

Interestingly, Trump's skepticism about cryptocurrency stands in contrast to the more welcoming attitude exhibited by certain members of his own party. Since gaining control of Congress, Republican lawmakers in both the House and Senate have worked to introduce legislation aimed at regulating cryptocurrencies, garnering support from the industry, albeit with some reservations.

Although a few GOP contenders for the presidency, such as Miami Mayor Francis Suarez, entrepreneur Vivek Ramaswamy, and Florida Governor Ron DeSantis, have expressed pro-crypto views, they still lag far behind Trump in terms of public opinion.

On the Democratic side, a lesser-known candidate, Robert F. Kennedy Jr., has openly endorsed cryptocurrencies, revealing his ownership of around 14 Bitcoin, despite denying involvement as an investor.

 

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A collaborative venture centered on providing initial investment support to emerging crypto startups, helmed by Gin Chao, the former strategy chief of Binance, has successfully concluded its inaugural fund-raising effort, amassing over $50 million.

This partnership, forged between NoLimit Holdings and the private equity firm ClearVue Partners, saw the closure of CVP NoLimit Fund I on July 25, as confirmed by a recent announcement.

In October 2022, reports from The Block had indicated that NoLimit was actively seeking investors to secure $100 million for the fund.

Gin Chao conveyed his appreciation for the trust and confidence that their partners have bestowed upon them for this maiden fund. He acknowledged the diverse industries represented by their LP base and acknowledged the challenging macroeconomic circumstances of the period. He expressed optimism about the current market conditions, describing them as conducive to capital deployment into the promising opportunities it offers.

NoLimit's primary focus lies in nurturing seed-stage investments and strategic rounds. The fund allocates check sizes ranging from $250,000 to $3 million. Its portfolio already includes engagements with projects such as Mysten Labs, Connext, Hogwarts Labs, Binance.US, and IQ Protocol. In totality, the fund has invested in over 20 projects on a global scale. It intends to further expand its investments by an additional 20 within the upcoming 12 months, as disclosed in the recent announcement.

 

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https://twitter.com/x/status/1689022029142560771

The disappearance of approximately $900,000 has drawn attention to the vintage Bitcoin project called Libbitcoin, which was originally created by a group of open-source developers, including Amir Taakia, a British-Iranian anarchist developer. This alternative software to Bitcoin Core, the original and widely used method of connecting to the Bitcoin network, has evolved into a comprehensive suite of tools that facilitate essential functions like communication with the Bitcoin blockchain and the generation of cryptographic keys. The project gained recognition, even being featured in Andreas Antonopoulos's influential book "Mastering Bitcoin."

However, recent events have exposed the vulnerabilities within Libbitcoin. An information security firm named Distrust, along with independent contributors, discovered a vulnerability in wallets generated by the Libbitcoin explorer, BX. Hackers managed to exploit this vulnerability, subsequently stealing funds from unsuspecting users. The issue was referred to as "Milk Sad" due to the first two words in a wallet-recovery seed phrase that the vulnerability produced.

The most significant theft occurred on July 12, resulting in the loss of 29.65 bitcoin (BTC) valued at around $870,000. This incident impacted multiple blockchains, including Ethereum, Zcash, Solana, and Dogecoin, affecting approximately 2,600 bitcoin wallets.

BX, a tool within Libbitcoin, includes a command called "bx seed," which uses a developer's computer clock to generate a seed phrase for wallet creation. However, the resulting phrase lacked sufficient randomness, making it susceptible to brute-force attacks. Essentially, malicious actors could guess all possible word combinations for a user's seed phrase in a relatively short time frame.

Eric Voskuil, the lead developer of BX, acknowledged the insecurity of the seed generator but argued that the vulnerability stemmed from the misuse of the bx seed text command, rather than a bug in the software.

Despite the vulnerabilities exposed by "Milk Sad," the incident has spotlighted the ongoing challenges within the crypto ecosystem, where security remains a paramount concern, even for projects that have been in existence for a significant period.

https://twitter.com/x/status/1688657656620167169

 

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Emerging risks associated with AI models are becoming a growing concern for businesses, according to a recent survey conducted by Gartner, a US technology research and consulting firm. The survey involved risk executives from 249 organizations, and it highlighted generative AI models like OpenAI's ChatGPT as the second top emerging risk for businesses.

Gartner's experts emphasized three critical points that need addressing to mitigate the risks posed by large language models (LLMs) such as ChatGPT. Firstly, there's a concern about the compromise of intellectual property rights and data privacy due to the uncertainty surrounding how ChatGPT uses its dataset to generate outputs. This uncertainty could lead to sensitive corporate data being inadvertently shared with unintended recipients.

Additionally, cybersecurity poses a significant concern. Recent incidents have demonstrated that hackers were able to manipulate ChatGPT to generate ransomware and malware code, facilitating what Gartner calls the "industrialization of advanced phishing attacks."

A prior blog post by Gartner also pointed out the potential risks associated with AI-generated "hallucinations," which could erode user trust in the technology. This phenomenon could lead to users unknowingly interacting with machine learning systems instead of human agents, as well as result in output biases, such as unintentional alterations in images due to AI editing.

Gartner did not provide details about whether organizations are actively taking steps to address these emerging risks.

While AI offers numerous benefits and possibilities, a growing number of experts and prominent figures are urging caution in the development of advanced machine learning systems. They highlight the need for global standards and regulations in preparation for more advanced forms of AI, such as General Artificial Intelligence (AGI).

OpenAI, the developer of ChatGPT, has been involved in discussions with European lawmakers regarding their AI system's classification. OpenAI is concerned that classifying their system as "high-risk" could lead to more stringent regulatory requirements that could potentially hinder quick responses to emerging risks due to bureaucratic processes.

 

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There were also strong indications of incoming Ethereum Futures ETFs this week.​

Undoubtedly, the talk of Cryptoville this week was PayPal’s announcement that it would be releasing an Ethereum-based dollar-pegged stablecoin called PayPal USD (PYUSD) as a native payment method integrated into the platform.


The fact that an American payments giant like PayPal is openly embracing a technology that is still unregulated was taken as a bullish sign among crypto fans–the market response was cautiously optimistic, breaking six weeks of inertia.

Crypto Twitter was ablaze with reactions to the news. TRON founder Justin Sun expressed some interest in hosting the coin on his blockchain.

https://twitter.com/x/status/1688573051179552768

Chinese blockchain journalist Colin Wu disseminated news that the Seychelles-based Huobi exchange is an early supporter of the project.

https://twitter.com/x/status/1688867120267059200

There was some concern over the smart contract functions of the new token, but Carl Vogel, a partner at crypto VC firm 6MV, helped to allay any fears by explaining just how routine PayPal’s new offering is.

https://twitter.com/x/status/1688746527584296960

The news put stablecoins firmly in the spotlight. Perhaps it even moved the hand of the Federal Reserve, which later in the week issued a statement announcing incoming guidance for chartered banks dealing with dollar-pegged stablecoins. Meanwhile, a clip of Joe Rogan and Post Malone discussing centrally-issued stablecoins made the rounds.

https://twitter.com/x/status/1689305096306245632

In other news, on Monday an analyst at crypto metrics platform Glassnode announced that Bitcoin has hit an all-time high of sorts. A staggering three quarters of the circulating supply is currently being HODLed!

https://twitter.com/x/status/1688350682682888193

 

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The Union for the Homeland coalition, representing the incumbent government, stands at the third position with slightly over 28.5% of the total votes.
In a significant political development, an Argentine politician advocating for Bitcoin adoption and the dismantling of the central bank has surged ahead in the country’s presidential open primary elections.
With more than 90% of the votes counted, Javier Milei, a prominent libertarian with pro-Bitcoin sentiments, has taken the lead with an impressive nearly 32% of the votes.
This places him ahead of the conservative Together for Change party, which has secured just under 30% of the votes, according to data from Bloomberg.
The Union for the Homeland coalition, representing the incumbent government, stands at the third position with slightly over 28.5% of the total votes.
Milei, a central figure in the Liberty Advances coalition (La Libertad Avanza), has been associated with views that span from libertarian to far-right ideologies.
Milei, who identifies as an anarcho-capitalist, has been a vocal proponent of abolishing Argentina’s central bank, labeling it a fraudulent institution.
He has also controversially stated that the trading of human organs should be treated as a regular market transaction.
He attributes the rise of Bitcoin to a response against what he terms “central bank scammers.”
Furthermore, he argues that fiat currency enables politicians to exploit Argentinians through inflation, a message that has struck a chord with the country’s populace.
The resonance of Milei’s rhetoric among voters is driven by Argentina’s staggering annual inflation rate of 116%, the highest in over 30 years.
This dire economic situation has exacerbated the country’s ongoing cost of living crisis, making the call for alternative financial mechanisms like Bitcoin more appealing to a frustrated electorate.
The culmination of this political landscape will be Argentina’s general presidential election scheduled for October 22nd.
In the event that no candidate secures a minimum of 45% of the votes, a runoff election is slated for November.
As the nation grapples with economic challenges and increasing public support for unconventional approaches, the upcoming election holds the potential for a significant shift in Argentina’s political trajectory.

 

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Apparel brands Adidas Originals and BAPE have unveiled a limited-edition sneaker collaboration for the Triple-White Forum 84 BAPE Low, which will be auctioned off and paired with a “digital twin” NFT version of the kicks that can potentially be worn in the metaverse.

Supported by the Adidas /// Studio (Three Stripes Studio), the auction will be centered around redeemable NFTs via the Adidas Collect platform. While Adidas has previously launched multiple initiatives around NFTs, this is the first time that the brand will use an auction format for an NFT-driven drop.
Just 100 Ethereum NFTs, which can in turn be exchanged for one of 100 corresponding pairs of sneakers, will be made available.

https://twitter.com/x/status/1691359070815449089

The sneakers feature BAPE’s iconography via a shooting star motif on the lateral upper and the “A Bathing Ape” logo embossed in metallic silver foil. The white colorway, in contrast to previous camo iterations, is tied into a narrative hook around a “pristine laundrette, located in the heart of a mysterious desert.”

Each pair of kicks is equipped with an NFC chip, placed in the left tongue, which provides the owner with access to its NFT-based certificate of authenticity when scanned with a smartphone.

Once the access pass NFT is redeemed for the physical shoes, owners will also receive a “digital twin” Ethereum NFT that will be “interoperable” with Adidas’ ALTS avatar project, suggesting that owners will be able to wear their kicks in the metaverse too. Adidas previously teased that holders of its 19,500 tokens will be able to exchange their current incarnations for functional avatars.

Auction details​

The Adidas Originals x BAPE “Fresh Forum” access pass NFT auction will begin on August 22 and run for 72 hours until August 25.

Holders of Adidas’ 2,298 ALT[er] Ego “Soles”—sneaker-specific traits that make up one of the eight ALTS NFT traits available—plus members of the BAPE: (B)APETAVERSE community will have a complimentary 10% premium added to their bidding price, giving them a bidder advantage.

Bids can be placed according to shoe size, and while only one bid per size can be active at any one time, prospective purchasers can bid as many times as they want. According to Adidas, bidding starts at 0.3 ETH (about $550 at present) and there is no maximum bid.

The 100 winners of the Adidas Originals x BAPE NFT auction will be able to burn their tokens to redeem the physical sneakers and digital twin starting on September 26 via Adidas Collect, with shipping set to begin in October.

The launch is the third part of a collaboration celebrating BAPE’s 30th anniversary. Previous releases earlier this year included co-branded versions of the Forum Low with a camo motif.

 

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Ethereum's Layer-2 scaling solution, Arbitrum, is set to introduce over $1 billion worth of ARB tokens in the upcoming March. This marks the initiation of a four-year phased release plan for its native token, as reported by Token Unlocks.

On March 16, 2024, the protocol, designed to enhance scalable and cost-effective smart contract capabilities, will execute a "Cliff Unlock" event for 1.11 billion ARB tokens, valued at $1.24 billion at the current rate of $1.12. This quantity represents 87% of the total circulating supply of 1.275 billion ARB tokens. Currently, there are still more than 5 billion ARBs that remain locked.

In cryptocurrency, "unlocks" refer to scheduled intervals where initially allocated tokens are released to prevent massive sell-offs by early investors or project team members. The "Cliff Unlock" approach permits the immediate release of a specific token amount following a distribution time, followed by a linear pattern for the subsequent unlocking process.

Following the March 16, 2024 unlock event, Arbitrum will maintain a consistent schedule of releasing a fixed quantity of tokens every four weeks for a span of four years, as highlighted in a tweet by Token Unlocks.

https://twitter.com/x/status/1691648214553014458

The unlocking process contributes to increased liquidity but is often considered a negative influence on cryptocurrency prices. Research conducted by analytics firm The Tie indicated that when unlock volumes exceed 100% of the average daily trading volume, they typically impact the value of ARB tokens.

As of the current data provided by TradingView, ARB is currently trading at $1.12, reflecting a 4% decrease over the past month.

 

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Mastercard, a prominent player in the global payments sector, has initiated the creation of a central bank digital currency (CBDC) program in collaboration with key industry entities such as Ripple and Consensys, a blockchain development firm.

In an announcement made on Thursday, Mastercard revealed its intention to assemble a consortium of blockchain and payment service providers to partake in this novel initiative. The primary objective of the CBDC program is to cultivate cooperation among significant stakeholders within the field, as stated by Raj Dhamodharan, Mastercard’s Head of Digital Assets and Blockchain.

Dhamodharan emphasized, "Our belief in the importance of diverse payment options and the essential role of interoperability across various payment methodologies underpins a thriving economic environment."

Among the inaugural members of this program are Ripple, Consensys, Fireblocks, and Fluency—a provider of tokenized asset services. Dhamodharan, during a recent podcast interview with The Block, conveyed that for a government to construct a CBDC accessible to both businesses and consumers, it must encompass fundamental attributes such as adaptability from its inception, safeguarding consumer interests, and preserving privacy.

While intricate details of the program's framework are not yet unveiled by Mastercard, the organization underlined that CBDCs should not be implemented in isolation. The CBDC Partner Program endeavors to furnish guidance to central banks on formulating CBDCs that introduce innovative and value-added elements to the economic landscape.

Mastercard's proactive engagement with CBDCs traces back to September 2020 when it introduced a test platform facilitating central banks in evaluating CBDC systems. By February 2021, the company took a step further by introducing prepaid cards in the Bahamas. This pioneering approach allowed users to convert their national CBDC, the Sand Dollar, into a practical payment method.