June 02, 2024
Weekly: Latest Updates and Insights
Mt. Gox Transfers Over 140,000 BTC in Preparation for Creditor Repayments: On May 28, Mt. Gox transferred over 140,000 BTC, valued at approximately $9 billion, to a new wallet as part of its long-awaited repayment plan for creditors, with the rehabilitation trustee confirming that no sales of Bitcoin or Bitcoin Cash had occurred. Despite reassurances, the market reacted negatively, causing Bitcoin’s price to drop by about 2%, as concerns grew over potential selling pressure from creditors once repayments commence, with a deadline set for October 31, 2024.
Biden Campaign Shifts Approach, Engages Crypto Industry for 2024 Elections: President Biden’s re-election campaign has begun actively reaching out to cryptocurrency industry players, marking a notable shift from previous interactions characterized by distance. This engagement is seen as a strategic move to understand crypto policy better and address the potential impact of digital assets on the upcoming presidential race, especially following recent developments in the crypto space.
U.S. Treasury Clarifies Stance on Crypto Mixers, Aims for Transparency: The U.S. Department of the Treasury, through Under Secretary Brian Nelson, has stated that they are not attempting to ban cryptocurrency mixing services, but rather seeking to drive transparency and prevent their misuse for illicit activities like terrorist financing. Nelson acknowledged the industry’s desire for privacy and expressed willingness to collaborate on tools that enhance privacy while complying with anti-money laundering regulations.
EU Draft Standards Classify MEV as Market Abuse Under MiCA Regulations: The European Securities and Markets Authority (ESMA) has identified Maximum Extractable Value (MEV) as a clear example of illegal market abuse in its draft technical standards for the upcoming Markets in Crypto-Assets (MiCA) regulation. This classification will require regulated crypto businesses in the EU to monitor and report instances of MEV, raising concerns about the feasibility of extensive reporting requirements in a complex and rapidly evolving market.
Binance Sells GOPAX Victims’ Asset Claims at Deep Discount: Binance, the largest shareholder of the South Korean exchange GOPAX, has sold asset claims of victims for less than half their face value, despite initially promising full compensation for losses incurred from a withdrawal suspension. Instead of using its own funds for compensation, Binance opted for a “debt-for-debt” transaction, selling these claims at a low price while the value of cryptocurrencies surged, leading to increased losses for GOPAX, which now faces an estimated debt of around 100 billion KRW.
PayPal’s PYUSD Stablecoin Launches on Solana: PayPal’s stablecoin, PYUSD, is now live on the Solana blockchain, allowing users to onramp the stablecoin via platforms like Crypto.com and Phantom. This move aims to leverage Solana’s lower transaction fees and higher throughput for payments and peer-to-peer money transfers, as PayPal explores various use cases for PYUSD beyond trading.
Bitcoin and Ether ETF Markets Projected to Reach $450 Billion: According to a Bernstein report, the bitcoin and ether exchange-traded fund markets are anticipated to grow to $450 billion, reflecting over $100 billion in inflows within the next two years. The approval of ether as a commodity is expected to positively impact other cryptocurrencies, including Solana, as it sets a precedent for blockchain assets transitioning from token sales to ETF trading.
Fundraising
Bitcoin Staking Protocol Babylon Secures $70 Million Funding Round Led by Paradigm: Babylon, a Bitcoin staking protocol, has successfully raised $70 million in a funding round led by Paradigm, with participation from notable investors such as Bullish Capital and Polychain Capital. The funds will be utilized to enhance Babylon’s mission of establishing Bitcoin as the security backbone for proof-of-stake (PoS) systems, leveraging its modular design to improve crypto-economic security and unlock value from the Bitcoin ecosystem.
Aperture Finance Secures $12 Million in Series A Funding to Enhance DeFi Solutions: Aperture Finance has successfully raised $12 million in a Series A funding round, achieving a valuation of $250 million, to further develop its intent-based architecture for decentralized finance (DeFi). The funding will be used to enhance its innovative Intents system, which simplifies complex DeFi operations and aims to democratize access to advanced financial tools for a broader range of users.
GaiaNet Raises $10 Million to Decentralize AI Networks: The decentralized AI project GaiaNet has secured $10 million in funding to advance its mission of decentralizing networks for generative AI tools. The investment will support the development of AI-powered educational tools for STEM students and the establishment of a distributed network of edge nodes to enhance privacy and security in AI applications.
Switchboard Secures $7.5 Million in Series A Funding: Switchboard, an oracle protocol, has completed a $7.5 million Series A funding round led by RockawayX and Tribe Capital. This investment will enhance the development of its customizable, multi-chain oracle protocol, which aims to provide secure data feeds and verifiable randomness for various blockchain applications.
Neynar Secures $11 Million in Series A Funding to Enhance Web3 Social Networks: Neynar, a toolbox for decentralized social networks, has raised $11 million in Series A funding led by Haun Ventures, with additional investments from Coinbase and a16z. The funding will support Neynar’s mission to provide developers with essential tools for building social applications on the Farcaster protocol, while also aiming to expand its services to other social protocols in the future.
Fortunafi Raises $9.51 Million and Launches New Stablecoin Protocol Reservoir: Fortunafi, a real-world asset tokenization platform, has raised $9.51 million in strategic and seed funding rounds, bringing its valuation to $48 million, while also unveiling its new stablecoin protocol called Reservoir. The protocol, set to launch in June, will offer yield-bearing products backed by both digital and real-world assets, with its native stablecoin rUSD designed for use across various decentralized finance platforms.
Mighty Jaxx Secures $11 Million in Series A Extension to Expand Globally: Mighty Jaxx, a Singapore-based collectibles and lifestyle brand, has raised an additional $11 million in its Series A funding round, bringing the total to $16 million, to drive its growth in the United States and Europe. The company plans to use the funds to expand its team, enhance its platform, and further develop its product offerings to cater to the growing demand for high-quality collectibles and lifestyle products worldwide.
Supervillain Labs Raises $4.5 Million in Seed Funding: Blockchain gaming developer Supervillain Labs has successfully secured $4.5 million in seed funding, with the round co-led by Aptos Labs and Neowiz’s Intella X. The funding will support the company’s efforts to expand its gaming initiatives and enhance its platform offerings in the blockchain space.
Parasail Secures $4 Million in Seed Funding Led by Protocol Labs: The infrastructure project Parasail, developed by DePIN, has successfully completed a $4 million seed funding round led by Protocol Labs. The round saw participation from various investors, including D11 Labs, MH Ventures, BitRise Capital, EV3, and Fenbushi Capital, aiming to enhance hardware security within the decentralized infrastructure space.
OpenSocial Raises $5 Million in Seed Funding to Enhance SocialFi Infrastructure: OpenSocial, a composable infrastructure layer for building social applications, has successfully completed a $5 million seed funding round led by Portal Ventures and SNZ Capital. The funding will support the development of its multichain SocialFi protocol, empowering developers to create innovative decentralized applications with a variety of social tools.
NodeOps Secures $5 Million Seed Round to Transform Node Orchestration: NodeOps has successfully raised $5 million in a seed funding round led by L1D, with participation from Blockchain Founders Fund and other notable investors, to revolutionize blockchain node orchestration. The platform aims to simplify node deployment and management across multiple blockchain networks, leveraging AI-driven infrastructure to enhance accessibility for developers and node operators.
Mint Blockchain Raises $5 Million in Seed Funding, Launches Developer Mainnet: Mint Blockchain, an Ethereum L2 network focused on NFT infrastructure, has completed a $5 million seed funding round and launched its mainnet, attracting over 400,000 active users and supporting 80+ applications. The funding will support the network’s global market expansion and further development of its NFT-centric tools and services, positioning it as a distinctive L2 for Web3 developers building decentralized applications.
PlayAI Raises $4.3 Million in Seed Funding to Advance Web3 Gaming: Web3 AI and gaming firm PlayAI has announced the completion of a $4.3 million seed funding round, bringing its total valuation to $70 million as it emerges from stealth mode. The funding will be used to expand its team and launch stream-to-earn campaigns, enabling gamers to share their data for rewards while facilitating the development of AI-driven gaming experiences.
Kuroro Beasts Secures $2.5 Million in Strategic Financing: Blockchain game Kuroro Beasts has successfully completed a strategic funding round, raising $2.5 million with participation from notable investors including Animoca Brands and Sanctor Capital. The game, which operates within the Arbitrum ecosystem, aims to leverage this funding to enhance its development and expand its player base.