September 01, 2024
Weekly: Latest Updates and Insights
Pavel Durov’s Arrest in France: A Controversial Detention: Pavel Durov, the CEO of Telegram, was arrested in France amid allegations that his platform facilitated illegal activities, including the distribution of child sexual abuse material and drug trafficking. Durov has criticized the arrest as misguided, arguing that authorities should have engaged with his company directly rather than detaining him, and he emphasized that Telegram actively removes harmful content daily.
Federal Reserve’s Rate Cut Plans Amid Economic Stability: The Federal Reserve is expected to implement three 25-basis-point rate cuts this year, signaling confidence in the economy’s resilience despite concerns about inflation and unemployment. Analysts suggest that, while a recession is unlikely, the central bank’s adjustments will depend heavily on upcoming economic data and market conditions
WebX 2024: Kishida Champions Blockchain for Economic Growth: At the WebX 2024 conference in Japan, Prime Minister Fumio Kishida emphasized the importance of Web3 and blockchain technology in driving economic growth and addressing social issues, aligning them with his “New Capitalism” policy. He highlighted the government’s commitment to supporting Web3 startups through tax reforms and legal adjustments, aiming to create a conducive environment for innovation and user protection in the digital economy.
Russia Set to Launch Crypto Payment Trials Amid Sanctions: Russia is poised to begin trials for cryptocurrency exchanges and digital token usage for cross-border transactions starting September 1, aiming to alleviate payment challenges faced by companies under international sanctions. The trials will utilize the National Payment Card System to facilitate conversions between rubles and cryptocurrencies during the testing phase.
SEC Threatens to Sue OpenSea Over NFTs as Securities: OpenSea, the leading NFT marketplace, has received a Wells notice from the U.S. Securities and Exchange Commission (SEC), alleging that NFTs on their platform are considered securities and threatening legal action. The SEC’s stance suggests they view certain NFTs as investment contracts, which would subject them to securities regulations, though OpenSea maintains that NFTs are not securities.
Maker Rebrands to Sky, Launches USDS and SKY Tokens:
Maker has officially rebranded as Sky, introducing a new stablecoin named USDS, which will replace the existing DAI, and a governance token called SKY, set to launch on September 18. This transformation is part of Maker’s “Endgame Plan,” aimed at enhancing DeFi accessibility and innovation through the introduction of new features and decentralized projects known as “Sky Stars” within the Sky ecosystem.
The Importance of DeFi: Democratizing Finance and Empowering Economies: DeFi, or decentralized finance, removes barriers to participation in financial markets, allowing anyone with an internet connection to access lending, borrowing, and trading opportunities. By providing transparent, open-access platforms built on blockchain technology, DeFi has the potential to revolutionize traditional finance and drive economic growth in a more equitable manner.
China Extradites Mastermind of $14 Billion Crypto Pyramid Scheme: China has extradited Zhang, the alleged mastermind behind a $14 billion crypto pyramid scheme, from Thailand, following a nearly four-year investigation. The scheme, which attracted over 10 million members and promised high returns, has prompted Chinese authorities to intensify their crackdown on illegal investment activities to protect citizens from fraud
Fundraising:
Aiming to Revolutionize Stablecoins: Bridge Secures $58 Million in Funding: Bridge, a startup co-founded by former Coinbase and Square executives, has raised $58 million to enhance the utility of stablecoins in global payments. With backing from major venture firms like Sequoia and Ribbit, the company plans to provide a seamless integration of stablecoins into traditional financial systems, positioning itself as a key player in the evolving landscape of digital currencies.
Edge Matrix Chain Secures $20 Million in Funding Led by Polygon Ventures: Edge Matrix Chain has successfully raised $20 million in a funding round led by Polygon Ventures and Amber Group. The investment aims to accelerate the development of its decentralized infrastructure, enhancing the scalability and efficiency of blockchain applications.
Solayer Raises Funding to Enhance Solana’s Restaking Protocol: Solayer, a new restaking protocol built on the Solana blockchain, has secured funding to boost its development and expand its market presence. This investment aims to enhance the efficiency and security of staking on Solana, potentially increasing the network’s overall performance and user engagement.
Microsoft-Backed Space and Time Raises $20 Million to Integrate AI and Blockchain: Space and Time has secured $20 million in funding, led by prominent venture firms including Framework Ventures and Lightspeed, to develop its technology that merges blockchain’s immutability with AI applications. The startup aims to enhance data verifiability and transparency in AI outputs, addressing critical issues such as misinformation and deepfakes in an increasingly AI-driven world.
Time Fun Raises $10 Million from Brevan Howard Digital: Time Fun, a blockchain gaming platform, has secured $10 million in funding from Brevan Howard Digital, a leading crypto investment firm. The investment will enable Time Fun to expand its offerings and enhance the user experience in its blockchain-based games, further driving the adoption of crypto in the gaming industry.
Quai Network Closes $5 Million Strategic Funding Round: Quai Network has successfully closed a $5 million strategic funding round with participation from various venture capital firms, including Cogitent Ventures and MH Ventures, bringing its total funding to $15 million. The new capital will be utilized to scale its engineering teams, enhance research and development, and support community engagement initiatives, coinciding with the launch of its mainnet-compatible devnet.
Peregrine Exploration Secures $3.6 Million to Develop Restaked Dollar-Backed Stablecoin: Peregrine Exploration has raised $3.6 million in a funding round co-led by Polychain Capital and Dragonfly to create Level, a stablecoin protocol backed by restaked dollar tokens. The protocol aims to simplify the minting of its stablecoin, Level USD, while allowing users to earn yield through decentralized finance platforms like Aave and participate in the emerging restaking economy.
Neverless Launches Commission-Free Crypto Trading App with $6.7 Million Funding: Neverless, a new crypto trading app founded by three former Revolut executives, has raised $6.7 million in one of Europe’s largest pre-seed funding rounds. The platform promises zero trading fees and allows users to deposit funds in euros while automatically generating interest on certain cryptocurrencies, aiming to disrupt the market dominated by high-fee platforms.
Double Jump.Tokyo Secures Over $10 Million in Series D Funding to Advance Blockchain Gaming: Double Jump.Tokyo has successfully raised over $10 million in its Series D funding round, led by SBI Investment and featuring participation from notable investors such as Sony Group Corporation and Taisu Ventures. The capital will be utilized to enhance blockchain game development, bolster infrastructure, and expand the company’s talent pool, positioning it as a leader in Japan’s Web3 landscape with upcoming projects like “Battle of Three Kingdoms” based on SEGA’s popular IP.
Gameplay Galaxy Secures $11.17 Million in Seed Extension Round to Enhance Web3 Gaming: Gameplay Galaxy, a web3 game development studio founded by the creators of the Trial Xtreme series, has raised $11.17 million in a seed extension round co-led by Blockchain Capital and Merit Circle. This funding boosts the company’s total to $24 million and will primarily support the development of its first blockchain-based game, “Trial Xtreme Freedom,” while also introducing a hybrid investment structure that includes equity and token warrants, valuing the studio at $71 million.
Legion Raises $2 Million for Merit-Based ICO Platform: Legion has successfully raised $2 million in a seed round led by Cyber Fund, aiming to create a merit-based platform for Initial Coin Offerings (ICOs) that allows non-accredited investors access to early fundraising opportunities. The platform seeks to enhance on-chain fundraising by implementing an investor reputation and accountability layer, ensuring that projects can build supportive communities while navigating regulatory compliance under the MiCA framework.
Solana Optimistic Network (SOON) Closes Funding Round to Enhance Layer 2 Scaling: Solana Optimistic Network (SOON) has successfully completed a “co-builder” funding round, attracting notable participants from the Solana ecosystem, including executives from Solana Foundation and Coinbase Ventures, although the exact amount raised remains undisclosed. The funds will be utilized to develop SOON Stack and SOON Mainnet, aiming to create a high-throughput rollup stack that enhances scalability and efficiency for decentralized applications across various Layer 1 blockchains.
Nectar AI Raises $3.9 Million to Develop Immersive AI Companions: Nectar AI, an immersive AI companionship platform, has announced the successful raising of $3.9 million in a seed round co-led by Mechanism Capital and Karatage, with participation from several notable investors in the crypto space. The funding will be used to expand the team and enhance the platform’s capabilities, allowing users to create highly customizable AI companions that can engage in realistic interactions, while also planning to enable financialization of these AI agents on-chain in the future.
Chainbound Raises $4.6 Million Seed Funding to Develop Bolt Protocol for Ethereum: Chainbound has secured $4.6 million in seed financing, led by Cyber Fund and supported by Maven 11, Robot Ventures, and Bankless Ventures, among others. The funding will be used to develop Bolt, a protocol designed to enable sub-second transaction confirmations on Ethereum through preconfirmations, significantly improving the user experience by reducing the average seven-second confirmation time.