TOP STORIES OF THE WEEK
Hong Kong plans to legalize retail crypto trading: Bloomberg
The Block
Hong Kong’s government plans to allow retail investors to trade crypto on locally licensed exchanges as part of a wider effort to position the city as a center for virtual asset service providers, according to Bloomberg. A mandatory licensing regime for crypto trading platforms that is due to begin in March will allow retail trading. Details of the new regime are expected to be announced on Monday at an annual fintech conference in the city where senior government and regulatory officials are scheduled to speak. Currently, only two crypto exchanges are licensed to operate in Hong Kong and they are limited to offering a narrow range of services to sophisticated investors only. The city’s regulator, the Securities and Futures Commission, is also looking at allowing licensed exchanges to offer a wider range of coins and tokens on their platforms.
Core Scientific’s stock tanks 75% as troubled bitcoin miner floats bankruptcy
The BlockCore Scientific, the largest publicly traded Bitcoin miner and hosting service provider by deployed hashrate, fell 75% on Thursday after the company announced via an SEC filing that it may run out of cash by the end of the year and may explore options such as bankruptcy. Core Scientific has been affected by a prolonged decline in the price of bitcoin, a rise in electricity costs and the increase in the global bitcoin network hashrate, the company said. On top of that, it has been in a legal battle with bankrupt Celsius Mining over what it claims are “outstanding amounts owed.” The industry in general has faced those same struggles recently, with bitcoin mining hosting company Compute North filing for bankruptcy last month
Apple Reveals New App Store Rules for Cryptocurrencies and NFTs
CryptonewsApple has updated its App Store Review Guidelines with more rules for crypto assets and NFTs. According to updates published on Monday, the tech giant has no problem with crypto exchanges or any other applications that allow the trading of digital tokens and currencies, given that those platforms have the requisite regional licenses to operate where the app is distributed. Moreover, apps can sell digital tokens, but they should not unlock additional features or content and “may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.” This might leave a very bad impact on NFT sales as one of the key use cases for NFTs is that they can unlock access to exclusive content or other perks. For instance, Bored Ape Yacht Club NFTs offer holders access to a number of different communication channels, merchandise, and even physical clubs.
MakerDAO Votes to Custody $1.6 Billion in USDC With Coinbase
Decrypt
Coinbase will custody $1.6 billion worth of MakerDAO’s USDC treasury with its institutional-grade service, allowing the DAO to earn up to 1.5% rewards on the funds. The proposal was ratified with 75% of the votes in favor on Monday afternoon after Coinbase Institutional submitted it on September 6. The USDC represents one-third of the treasury backing the Peg Stability Module, which allows users to deposit collateral in exchange for DAI, Maker’s USD-pegged stablecoin. Maker will not pay a custody fee, according to the proposal, and the community will need to vote on whether to keep its funds custodied with Coinbase after the trial period at the end of the year.
Christensen Under Fire After MakerDAO Members Vote for His Reorganization Plan
The Defiant
MakerDAO governance voted overwhelmingly in favor of making big changes to the project’s structure in line with the Endgame roadmap laid out by Christensen, MakerDAO’s founder, in May 2022. However, poll #882, has come under fire from prominent voices in the web3 industry, who say only 15% of circulating MKR, Maker’s governance token, was mobilized to vote. Moreover, votes delegated by Christensen represented nearly three quarters of those cast. “The Endgame Plan is an exceptionally bad proposal, and it’s really sad for Maker that it passed the signal (shoved through by [Rune Christensen] single handedly in face of strong and justified criticism),” said Hasu, a MakerDAO governance delegate and strategy lead at Flashbots. While the approval was in no way malicious, it highlights a challenge of decentralized governance that Christensen himself has flagged in prior months, namely, that a lack of governance participation amongst token holders is an existential risk to DAOs in general.
BITCOIN
Costa Rican Lawmakers Propose Nixing Almost All Taxes on Bitcoin
Brink Emerges as the Top Funder of Bitcoin Core Development, BitMex Research Says
A record 55,000 Bitcoin, or over $1.1 billion, was just withdrawn from Binance
Asset management firm launches BTC Lightning Network startup accelerator
Bitcoin Scalability: Validity Rollups Will Make Transactions 100x Faster Claims Researcher
Bitcoin ATM operator RockItCoin acquires Tao Bitcoin
Cash App Users Can Now Send and Receive Bitcoin via Lightning
Bitcoin liquidates over $1 billion as BTC price hits 6-week highs
Block is on a Bitcoin mining and wallet hiring spree
ETHEREUM
63% of Ethereum transaction blocks are now OFAC-compliant
Total staked Ethereum surpasses 14 million in Q3 amid 64% decline in price
CFTC and SEC chairs may disagree over whether ether is a security
ZkSync to unveil token details in early November, says Matter Labs’ product head
Ethereum supply on trend to drop below pre-Merge levels
ALTCOINS
Filecoin releases content delivery network called Saturn
THORChain halts its platform due to an unknown bug, no issues of insolvency reported
Axelar and Polygon Supernets Team Up to Provide Cross-Chain Interoperability
Lens Protocol stalls services due to transaction issues
Solana DeFi Projects Reopen Following $114M Mango Markets Hack
SushiSwap to create three DAOs in Panama and Cayman in business restructuring
DOGE up 18% as Elon Musk moves to take over Twitter
Ribbon Finance mulls new DeFi lending pools for institutional borrowers
Primex Finance Deploys Its Beta on zkSync Testnet To Enable Margin Trading on DEXs
Pancakeswap approves DEX launch on Aptos via governance vote
Gaming DAO Merit Circle to Burn Nearly $170M Worth of MC Tokens
Coinbase Says It’s Wary of Suggested Changes to ATOM’s Monetary Policy
Aave Launches Staked Ethereum Earn Strategy Through Oasis
Crypto Staking Platform Freeway Halts All Withdrawals, Triggering 80% Collapse in Native Token
Klaytn pumps after proposal to reduce block rewards passes
Polygon-Based DeFi Platform QuickSwap Closes Lending Service After Exploit
Fan Tokens of Peruvian, Spanish and Brazilian National Soccer Teams Rally as FIFA World Cup Nears
Sui Network Turns to Mist Units to Improve Payment Efficiency
Axie Infinity price struggles as $189M worth of tokens are set to be unlocked
Deep-dive into the Mango Markets economic attack
Aptos surges more than 30% following wave of short liquidations
STABLECOINS
USDC Market Cap Slides By $10B Since Tornado Cash Bans
Crypto exchange Huobi to delist HUSD stablecoin
Singapore Central Bank Proposes Stablecoin Rules to Rein In Crypto Sector
FTX could launch its own stablecoin via a partnership, says Bankman-Fried
Near Foundation sets up $40M fund to bail out USN investors in case of collapse
CRYPTO ECOSYSTEM
Digital Bank Revolut to Allow Customers to Make Purchases With Crypto Balances
Glassnode acquires crypto tax and portfolio platform Accointing.com
Blockchain.com partners with Visa to offer crypto debit card
ConsenSys commits $2.4M annually to launch MetaMask Grants DAO
Standard Chartered-Backed Zodia Custody Offers Crypto Ownership Proofs for Institutions
BitOasis inks deal with Mastercard to launch crypto-linked payment cards
Crypto data firm Amberdata snaps up analytics platform Genesis Volatility
Western Union may be planning to expand its digital offerings far beyond remittances
Block brings on former Argo CTO Hothi: Bloomberg
Y Combinator alumni DAO unveils web3 fellowship program: Exclusive
New York-based forex broker Oanda launches crypto trading services in US
Vauld seeks another four months of protection against creditors
3Commas issues security alert as FTX deletes API keys following hack
NFTS / GAMING / METAVERSE
McCain Foods wants young consumers to farm its metaverse potatoes
New NFT Marketplace Blur Closes in on OpenSea in 24-Hour Trade Volume
Art Blocks founder announces friendship bracelet NFT airdrop
Premier League weighs $34.7 million NFT deal with Sorare: Sky News
Another NFT Marketplace Goes Zero Royalties in ‘Race to the Bottom’
SEBA Bank Offers NFT Custody amid Market Uncertainty
Norway Steps Into the Metaverse With Decentraland Tax Office
Crypto Bank SEBA Launches Institutional Custody Service for Ethereum NFTs
Azuki ‘Proof of Skate’ Auction Draws $2.5 Million for NFT-Backed Skateboards
MINING
Moldova bans crypto mining amid energy crisis
Bitcoin miner Core Scientific to run out of cash ‘by the end of 2022 or sooner’
Bitcoin Miner CleanSpark Hikes 2022 Hashrate Guidance by 10%
Compass Mining inks 27-megawatt hosting deal with Aspen Creek Digital
Bitcoin hardware manufacturer Canaan introduces new A13 series
Mining data center developer Soluna to raise $2 million in equity as shares fall 40%
Core Scientific Again Raises Bitcoin Mining Hosting Rates
Argentina tax authority breaks up crypto mining farm in major crackdown
Kazakhstan among top 3 Bitcoin mining destinations after US and China
Bitcoin mining difficulty rises 3.4%, reaching new ATH
EXCHANGES
Derivatives exchange Kollider launches publicly after a $2.4 million seed round
Prometheum partners with Anchorage Digital on SEC-registered alternative trading system
Binance Launches ‘Reliable And Secure’ Oracle Network
Bitstamp expands white-label services: Exclusive
Pan-African crypto exchange Yellow Card wins virtual asset license
Robinhood Adds Aave and Tezos
On-chain data reveals Binance US, Bittrex also targeted by API attack used on FTX
BitMEX CEO Alexander Hoeptner Departs From the Crypto Futures Exchange
Israel Stock Exchange to Create Crypto Platform Citing ‘Window of Opportunity’
Coinbase to Significantly Benefit From $1.6B Transfer of MakerDAO’s USDC, Analyst Says
Gate.io users at risk as scammers fake giveaway on hacked Twitter account
CAPITAL RAISES
Celo ecosystem projects raise $77.3M in support of interoperability, ReFi
Solana-based protocol seeking to decentralize ride-sharing raises $9M
ParaFi backs Thala Labs’ $6 million raise to build DeFi stack on Aptos: Exclusive
INVESTMENT MANAGEMENT
Pantera Capital’s early-stage token fund is down 71% this year: Exclusive
Institutions Are Still Bullish on Crypto: Fidelity Survey
A16z’s Largest Crypto Fund Loses 40% in First Half of 2022: Report
Pension Fund-Backed Parataxis Digital Yield Fund Targets $500M in Assets in 2023
TRADFI / TECH
Telegram Launches Username Auction Using TON Blockchain
Meta’s Metaverse Business Loses Over $3.5 Billion in Q3 2022
Equifax, known for huge data breach, is building a Web3 KYC solution
eToro snaps up portfolio management startup Bullsheet
Microsoft Cloud UAE prepares to offer tools to build the Metaverse
Twitter Expanding Tweet Tiles Trial Into NFTs
Santander bank trials blockchain platform for used cars in Brazil
CBDC
BIS releases full report on mBridge wholesale CBDC platform after successful pilot
Kazakhstan to launch CBDC on BNB Chain
Nigerians’ passion for crypto is stopping short at the eNaira
Foreign Exchange Transactions Take Center Stage in New BIS CBDC Report
Japanese Credit Card Giant JCB Begins CBDC Pilot in Tokyo
Hong Kong unveils completed retail CBDC project that has a CBDC-backed stablecoin
Japan’s International Payments System will test plastic cards for CBDC
REGULATORY / COUNTRIES
Metaverse platforms to fall under scope of controversial UK Online Safety Bill
EU’s DLT pilot will allow market operators to trade stablecoins before new crypto regulations
US currency comptroller to up its game with new Office of Financial Technology in 2023
Vietnam’s prime minister calls for crypto regulation: Report
UK Stablecoin Rules Approved by Lawmaker Committee
Australia confirms crypto transactions will be subject to capital gains tax
EU Commissioner calls for industry recommendations on DeFi regulation
UK Crypto-Focused Parliament Group Calls on New PM Sunak to Clarify Crypto Policies
Singapore Mulls Ban on Letting Retail Investors Buy Crypto With Leverage
UK lawmakers voted to include crypto rules in finance regulation bill
EU financial authorities increase coordination in light of MiCA, says EBA chair
State Regulators Charge NFT Casino Project With Securities Violations
EU Report on Crypto Regulations Draws Praise From Crypto Attorneys
Crypto-curious Sunak takes early lead in UK leadership race
Spain overtakes El Salvador to become third largest crypto ATM hub
Indictment Against Former OpenSea Employee Moves Forward
Bankruptcy Court Approves FTX Purchase Agreement for Voyager Assets
ENVIRONMENTAL, SOCIAL, GOVERNANCE
Filecoin launches Web3 data-storage solution for carbon offsets
This Green Crypto Has Just Added Microsoft and GameStop to its Affiliate Network
SURVEYS, HACKS, MISC
Venezuela’s Most Expensive House Put up for Sale at $20m, Owner Will Accept Crypto
NYSE delists Twitter shares following Elon Musk acquisition
Infamous Hacker Steals $1 Million Worth of Crypto Including Bored Ape NFT
Crypto Launchpad Team Finance Suffers $14.5M Exploit
DeFi trailblazer Andre Cronje returns with ‘weird psyops’ Medium post
Bloomberg’s Matt Levine Writes 40,000-Word Article on Crypto
OpenSea employee loses motion to strike the term ‘insider trading’
Almost 50% of Gen Z and Millennials want crypto in retirement funds: Survey
Binance ‘Narrowing Down’ Identity of $570M Smart Chain Bridge Attacker
Chinese Intelligence Allegedly Tried to Bribe U.S. Official With Bitcoin
Bithumb owner to receive 8-year jail term for $70M fraud – local media
White hat hacker returns $300k gained from OlympusDAO exploit
Mango Market exploiter brags after rug-pulling Mango Inu ‘shitcoin’
FTX to Compensate Phishing Victims with $6 Million
This material is provided by GSR (the “Firm”) solely for informational purposes, is intended only for sophisticated, institutional investors and does not constitute an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation, to enter into or conclude any transaction (whether on the terms shown or otherwise), or to provide investment services in any state or country where such an offer or solicitation or provision would be illegal. The Firm is not and does not act as an advisor or fiduciary in providing this material.
This material is not a research report, and not subject to any of the independence and disclosure standards applicable to research reports prepared pursuant to FINRA or CFTC research rules. This material is not independent of the Firm’s proprietary interests, which may conflict with the interests of any counterparty of the Firm. The Firm trades instruments discussed in this material for its own account, may trade contrary to the views expressed in this material, and may have positions in other related instruments.
Information contained herein is based on sources considered to be reliable, but is not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made by the author(s) as of the date of publication, and are subject to change without notice. Trading and investing in digital assets involves significant risks including price volatility and illiquidity and may not be suitable for all investors. The Firm is not liable whatsoever for any direct or consequential loss arising from the use of this material. Copyright of this material belongs to GSR. Neither this material nor any copy thereof may be taken, reproduced or redistributed, directly or indirectly, without prior written permission of GSR.
