September 29, 2024
Weekly: Latest Updates and Insights
China Unveils Comprehensive Stimulus Package to Revive Economy: China’s central bank has launched a broad stimulus initiative, including cuts to reserve requirement ratios and interest rates, aimed at rejuvenating its struggling economy and supporting a growth target of around 5% for 2024. Key measures focus on revitalizing the property market by reducing down payment requirements and easing mortgage burdens, addressing significant challenges such as deflation and a downturn in real estate. While the stock market reacted positively to the announcement, analysts remain cautious about the potential effectiveness of these measures in restoring consumer confidence and driving sustainable economic growth.
Kamala Harris Advocates for U.S. Leadership in Blockchain Technology: In a recent speech, Kamala Harris underscored the necessity for the United States to establish itself as a leader in blockchain technology. She reiterated that digital assets are integral to her economic plan, emphasizing their potential to foster innovation and growth. Harris’s comments reflect a commitment to creating a supportive regulatory environment for the advancement of blockchain in the U.S. economy.
Changpeng Zhao Released from Custody: Changpeng Zhao, the founder of Binance, has been released from federal custody after serving five months for failing to implement proper anti-money laundering controls. With a personal fortune of $60 billion, he plans to focus on philanthropy through his initiative, Giggle Academy, aimed at providing educational resources for underprivileged children. Despite his release, Zhao must step down as CEO and adhere to restrictions on his involvement in daily operations at Binance.
SEC Settles with TrustToken and TrueCoin Over TrueUSD Allegations: The SEC has settled with TrustToken and TrueCoin for $163,000 each, along with an additional $340,000 from TrueCoin, regarding misleading claims about their stablecoin, TrueUSD (TUSD). The allegations centered on the misrepresentation of TUSD’s backing, as over half a billion dollars was reportedly invested in a speculative fund rather than being securely held. This case highlights the increasing regulatory scrutiny surrounding stablecoins and their backing structures in the cryptocurrency market.
Telegram Changes Policy on User Data Sharing After CEO’s Arrest: Telegram will now provide user data, including IP addresses and phone numbers, to authorities following valid legal requests, a significant shift from its previous stance on privacy. This decision comes after CEO Pavel Durov’s arrest in France over allegations related to the platform’s use for illegal activities. The change has raised concerns about user privacy and free speech, particularly among those relying on Telegram for secure communication in oppressive environments.
Ethereum Transaction Fees Surge Despite Declining Active Accounts: Ethereum transaction fees have more than tripled since the beginning of September, climbing to an average of $3.52 by September 21. This surge coincides with an 11% drop in active accounts, which have fallen to their lowest level of the year at around 385,000. Additionally, the increase in fees has resulted in a dramatic rise in ether burned, highlighting a paradox of heightened network activity amidst declining user engagement.
Binance Introduces Pre-Market Spot Trading Service: Binance has launched a pre-market spot trading service, allowing users to trade actual tokens before their official market listing, setting it apart from competitors that primarily offer derivatives. This feature enables users to take early positions on selected tokens after the Launchpool distribution, with trading closing at least four hours before the official listing. However, the service is not available in certain regions, including the U.S., Canada, and Japan.
Bybit Launches World’s First Shariah-Compliant Crypto Account: Bybit has launched the world’s first Shariah-compliant crypto account, allowing users to engage in spot trading with 75 tokens that adhere to Islamic finance principles. This initiative aims to cater to Muslim investors seeking to participate in the cryptocurrency market while maintaining compliance with their religious beliefs. The launch marks a significant milestone in the industry, showcasing Bybit’s commitment to inclusivity and innovation in digital finance.
Caroline Ellison Sentenced to Two Years in Prison: Caroline Ellison, former CEO of Alameda Research, has been sentenced to two years in prison for her role in the FTX fraud scandal, with an additional order to forfeit $11 billion. At 29 years old, she pleaded guilty to conspiracy and financial fraud charges, cooperating with authorities after FTX’s collapse. Her sentence contrasts sharply with that of FTX founder Sam Bankman-Fried, who received a 25-year prison term for his convictions.
Sweden Labels Crypto Exchanges as Professional Money Launderers: Sweden’s Financial Intelligence Unit (FIU) has classified certain cryptocurrency exchanges as “professional money launderers” due to their connections with organized crime and failure to comply with regulations. The FIU identified four profiles of these exchanges and emphasized the need for greater law enforcement oversight to combat illicit activities. Additionally, the Swedish Tax Agency is investigating misleading tax filings by crypto mining firms, demanding approximately $90 million in unpaid taxes.
Fundraising:
Drift Labs Secures $25 Million Funding to Expand Solana Exchange: Drift Labs has raised $25 million in a Series B funding round led by Multicoin Capital, aiming to enhance its decentralized finance platform on Solana and become the “Robinhood of crypto.” The funding will support the development of new financial services, including spot and derivatives trading, while leveraging innovative features like cross-margining for efficient asset management. With over 200,000 users and $50 billion in trading volume since its launch, Drift is poised for significant growth in the competitive DeFi landscape.
Octra Secures Funding and Launches WASM Sandbox: Octra has raised $4 million in pre-seed funding, led by Finality Capital, to advance its development of a universal cryptographic protocol based on fully homomorphic encryption over hypergraphs. The company is also launching a public WASM sandbox to demonstrate the efficiency of its technology, allowing users to test various functions. With plans for a mainnet launch next year, Octra continues to focus on enhancing data security and privacy in both web2 and web3 applications.
Forge Celebrates Major Milestones: Forge has achieved a remarkable milestone by surpassing 1 million registered users, showcasing its rapid growth and popularity. The company also successfully completed a $3 million pre-seed funding round led by 1confirmation and Public Works, reflecting strong investor confidence. These developments position Forge for continued success and innovation in the market.
Helix Labs Secures $2M Pre-Seed Funding to Revolutionize DeFi Liquidity: Helix Labs has successfully raised $2 million in a pre-seed funding round, led by Tribe Capital, to enhance yield earning opportunities for non-ETH Layer 1 asset holders through innovative restaking and liquidity abstraction. The funding will be instrumental in unlocking $12 billion in liquidity within the Cardano ecosystem and supporting the development of an OmniVM rollup future. With backing from industry leaders and participation in the Movement Labs’ Move Collective accelerator, Helix Labs is poised to transform the landscape of decentralized finance.
Darkbright Studio Secures $6 Million for Life Sim RPG Smolbound: Darkbright Studio has raised $6 million in seed funding to develop Smolbound, a life simulation RPG that combines elements of exploration and community engagement. The game will feature Web3 mechanics, allowing players to own and trade in-game assets as NFTs, fostering a deeper connection between players and the game world. With closed beta testing underway, Smolbound is set to launch on the Treasure Layer-2 blockchain in 2025.
Meridian Secures $4 Million Seed Funding to Transform DeFi on Movement: Meridian has raised $4 million in seed funding to develop its decentralized liquidity marketplace and liquid staking protocol on the Movement blockchain. Co-led by ParaFi Capital and Borderless Capital, this investment aims to enhance liquidity and yield opportunities within the Move ecosystem, which is gearing up for its mainnet launch. The funds will enable Meridian to expand its team and accelerate its roadmap, positioning itself as a key player in the evolving DeFi landscape.
Daylight Secures $6 Million Seed Funding to Enhance On-Chain User Experience: Daylight, a platform that offers personalized on-chain action recommendations, has raised $6 million in seed funding led by Union Square Ventures. The funding will help expand its API integration with major wallets and aims to increase user engagement by scaling its monthly active addresses significantly. With this round, Daylight’s total funding reaches $9 million, following a previous $3 million pre-seed investment in 2022.
Initia Secures $14 Million Series A Funding at $350 Million Valuation: Initia has raised $14 million in a Series A funding round, achieving a token valuation of $350 million ahead of its upcoming mainnet and token launch. The funding, led by Theory Ventures and supported by various angel investors, brings Initia’s total funding to $22.5 million as it develops a Layer 1 blockchain and interwoven optimistic rollups. With a successful public testnet concluding recently, Initia is set to launch its mainnet within the next two months, further expanding its team and technological capabilities.
A16z Invests in Decentralized Biobank AminoChain: Andreessen Horowitz (a16z) has made its first investment in the decentralized science sector by backing AminoChain, which has raised a total of $7 million in pre-seed and seed funding. The platform aims to enhance medical data sharing among institutions while ensuring patient privacy through blockchain technology. Its initial application, the Specimen Center, will serve as a peer-to-peer marketplace for bio-samples, promoting transparency and consent in medical research.
Mawari Network Secures $10.8 Million in Funding for Spatial Computing: Mawari Network has raised $10.8 million in a strategic funding round to enhance its decentralized physical infrastructure network focused on spatial computing. Co-led by Anfield Ltd and Borderless Capital, this funding will support the development of real-time 3D content streaming technology for devices like Apple Vision Pro and Meta Quest 3. With a total capital raised now at $17.3 million, Mawari plans to launch its mainnet in early 2025 and is preparing for a node license sale to further expand its infrastructure.