October 14, 2024
Weekly: Latest Updates and Insights
Vitalik Buterin Nominated for Nobel Prize in Economics: Economist Tyler Cowen has nominated Ethereum creator Vitalik Buterin for the Nobel Prize in Economics, praising his groundbreaking contributions to cryptocurrency and monetary theory. Cowen emphasized Buterin’s innovative transition of Ethereum from proof-of-work to proof-of-stake as a remarkable feat in economic engineering. The Nobel Prize announcement is set for October 14, and Cowen believes Buterin’s character and achievements make him a deserving contender.
Peter Todd: A Controversial Figure in the Bitcoin Community: Peter Todd, a Canadian software developer, has recently been linked to the identity of Satoshi Nakamoto in an HBO documentary, though he firmly denies these claims. His involvement in Bitcoin began in 2014, and he has contributed significantly to its development. Despite the speculation surrounding his potential connection to Bitcoin’s creator, many experts in the cryptocurrency community remain skeptical of these assertions.
U.S. Inflation Update: September 2024 CPI Data: In September 2024, the U.S. Consumer Price Index (CPI) annual rate recorded a modest increase of 2.4%, the lowest since February 2021. Meanwhile, the core CPI, which excludes volatile food and energy prices, rose by 3.3%, indicating persistent inflationary pressures in other sectors. This contrast suggests that while overall inflation may be stabilizing, underlying price increases remain significant in specific areas of the economy.
China’s Economic Recovery Gains Momentum: China’s top economic planner is set to unveil a comprehensive recovery plan, signaling a shift towards more aggressive stimulus measures to revive consumer and investor confidence. This coordinated effort, involving multiple state agencies, aims to address slowing retail sales growth and bolster consumption amid ongoing economic challenges. Market reactions have been positive, with significant gains in Hong Kong’s stock indices as anticipation builds for substantial policy announcements.
Major Cryptocurrency Fraud Crackdown Leads to Indictments of 18 Individuals and Companies: U.S. prosecutors have indicted 18 individuals and companies for engaging in extensive cryptocurrency fraud, including deceptive practices like wash trading, which artificially inflated the market value of tokens. The investigation, supported by the FBI, has resulted in multiple arrests and the seizure of over $25 million in cryptocurrency assets. This significant operation highlights the increasing regulatory scrutiny aimed at protecting investors in the rapidly evolving crypto market.
Irish Authorities Unable to Access $378 Million in Seized Bitcoin: Ireland’s Criminal Assets Bureau (CAB) is struggling to access approximately $378 million worth of Bitcoin seized from drug dealer Clifton Collins due to lost seed phrases. The Bitcoin, originally valued at $56 million when confiscated in 2020, is stored across 12 wallets, and Collins claims the access document was lost during a break-in. Despite the soaring value of the cryptocurrency, recovery efforts remain ongoing as authorities seek potential technological solutions.
Crypto.com Sues SEC to Challenge Regulatory Overreach: On October 8, 2024, Crypto.com filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), alleging that the agency has unlawfully expanded its jurisdiction by categorizing most crypto transactions as securities while exempting Bitcoin and Ethereum. The company argues that the SEC’s actions violate procedural regulations and threaten the future of the cryptocurrency industry in the U.S. Additionally, Crypto.com | Derivatives North America has petitioned the CFTC and SEC for clarification on the regulation of certain cryptocurrency derivative products.
FTX Reorganization Plan Approved by U.S. Bankruptcy Judge: A U.S. bankruptcy judge has approved FTX’s reorganization plan, allowing for the distribution of funds to creditors two years after the exchange’s collapse amid fraud allegations. Under the plan, 98% of creditors are expected to receive at least 118% of their claims in cash, despite some criticism regarding the lack of cryptocurrency payouts. Judge Dorsey reaffirmed that the value of FTX’s native token, FTT, is effectively zero, emphasizing the challenges in reviving the exchange.
Investigation into Upbit’s Monopoly Sparks Regulatory Review: Financial Services Commission Chairman Kim Byung-hwan announced an investigation into Upbit’s dominance in South Korea’s virtual asset market, responding to concerns raised by lawmaker Lee Kang-il. Lee highlighted that Upbit accounts for 20% of K Bank’s deposits, warning of potential risks, including a bank run, as K Bank approaches its initial public offering. Chairman Kim stated that the Virtual Asset Committee will conduct a comprehensive review of the situation to address these pressing issues.
Binance Launches Scroll (SCR) on Launchpool: Binance has officially introduced Scroll (SCR) to its Launchpool, allowing users to stake BNB, Tether (USDT), and Binance USD (BUSD) to earn SCR rewards. This initiative provides a unique opportunity for users to engage with the new token ahead of its broader market release. Participants can start staking immediately to maximize their potential rewards during the pre-market phase.
Fundraising:
Yala Secures $8 Million for Bitcoin-Backed Stablecoin Development: Yala has raised $8 million in an oversubscribed seed funding round to develop its Bitcoin-backed stablecoin, YU. The funding, co-led by Polychain Capital and Ethereal Ventures, will support the launch of its cross-chain protocol, MetaMint, which simplifies Bitcoin-to-stablecoin conversions. Additionally, Yala plans to introduce an innovative insurance feature called Takaful to mitigate risks associated with Bitcoin’s volatility.
Kriptown Secures €4.2 Million to Launch Blockchain-Based SME Stock Exchange: French fintech Kriptown has raised €4.2 million in Series A funding to establish the first European stock exchange dedicated to small and medium-sized enterprises (SMEs) under the European DLT Pilot Regime. The platform will provide investors access to SME shares through a 24/7 secondary market, enhancing liquidity and expanding eligible assets under the PEA-PME framework. With backing from BNP Paribas and Bpifrance, Kriptown aims to reshape market infrastructure and improve equity financing options for SMEs across Europe.
OpenGradient Secures $8.5 Million to Revolutionize Decentralized AI: OpenGradient has raised $8.5 million in seed funding to develop a groundbreaking decentralized platform for hosting AI models and executing secure inferences on blockchain. The company aims to democratize model ownership and streamline AI deployment, ensuring universal access to advanced technologies. With backing from notable investors, OpenGradient plans to launch its developer testnet in Q4 2024, paving the way for a more secure and accessible AI future.
Dragonz Lab Secures $9M Investment to Enhance Dragonz Land Ecosystem: Dragonz Lab has secured a $9 million investment from Syndicate Capital LPF to further develop its Play-2-Earn game, Dragonz Land, which currently has over 5.3 million monthly active users. The funding will enhance features such as PvP tournaments and strategic guild collaborations while promoting digital property rights in the Web3 ecosystem. This partnership aims to create a sustainable gaming environment and boost user engagement through innovative digital assets.
Semantic Layer Secures $3 Million Seed Funding to Enhance dApp Infrastructure: Semantic Layer has raised $3 million in seed funding, led by Figment Capital, with participation from several notable investors. The company aims to improve transaction execution infrastructure for decentralized applications (dApps) by providing tools like Verifiable Aggregation Rules (VAR) and Verifiable Sequencing Rules (VSR) to enhance control over multi-blockchain transactions. Co-founder Daniel Tong stated that the funding will be used to develop their core technology and increase market awareness of their application-specific sequencing framework.
Kiva AI: Bridging Expertise and AI with Cryptocurrency: Kiva AI has raised $7 million in seed funding led by CoinFund to develop specialized AI applications by employing human experts for data labeling. The startup’s human-in-the-loop model ensures high-quality decision-making in critical fields like healthcare and law while offering overseas professionals the opportunity to supplement their income through cryptocurrency compensation. CEO Ahmed Rashad envisions a future where skilled experts can thrive globally, enhancing AI development with their specialized knowledge.
APRO Oracle Secures $3M Seed Funding to Revolutionize Decentralized Oracles: APRO Oracle has raised $3 million in seed funding, led by investors such as Polychain Capital and Franklin Templeton, to enhance its offerings in the Bitcoin ecosystem. The funding will support the development of Oracle 3.0, which combines Bitcoin-level security with advanced technology, addressing critical gaps in decentralized finance and other applications. With a rapid expansion across 15 blockchains and over 140 assets already integrated, APRO Oracle is poised to redefine the standards for decentralized oracles.
Bitlayer Labs Secures $9 Million in Series A Extension Funding: Bitlayer Labs has raised $9 million in a Series A extension funding round, increasing its total funding to $25 million and maintaining a valuation of $300 million. The company, known for its innovative Bitcoin Layer 2 network, is set to launch its V2 mainnet in the fourth quarter of 2024, utilizing its advanced OpVM verification technique. With nearly 300 projects already built on its platform, Bitlayer is positioned as a leading player in the Bitcoin scaling ecosystem.