EU Parliament Passes Legislation for EU-wide Digital Wallet, Integrating ZK-Proof Technology
As cryptocurrencies continue to gain popularity around the world, countries are taking a collaborative approach to regulate these digital assets and ensure they are not used for illegal activities such as money laundering and terrorism financing. One way that countries are regulating cryptocurrencies is by launching digital wallets that allow them to track transactions in real time. These digital wallets use blockchain technology to create a transparent and secure ledger of all cryptocurrency transactions.
According to a press release, the European Parliament has passed legislation that paves the way for the creation of an EU-wide digital wallet. The move comes as countries around the world are grappling with how to regulate cryptocurrencies amid concerns about their potential to destabilize financial markets and facilitate illegal activities.
European Parliament Has Passed Union’s Proposal
In a resounding victory for the European Union, the proposal for a digital identity framework has passed the European Parliament’s plenary vote with overwhelming support. With 418 votes in favor, only 103 against, and 24 abstentions, the EU-wide framework is set to provide citizens with access to a range of public services, all while safeguarding their privacy.
At the heart of the legislation is the creation of a digital wallet for each citizen, which will allow them to store and manage their digital identity. Furthermore, to ensure that users’ privacy is protected, the framework will incorporate zero-knowledge-proof technology. This technology allows for the verification of a position without the need to reveal any unnecessary data, providing a secure and privacy-preserving way to authenticate users.
Parliament Is Ready to Negotiate with the Council
With the proposal passing the European Parliament’s plenary vote, the EU-wide digital identity framework is one step closer to becoming a reality after negotiations with the council. It is expected that the framework will be implemented soon, providing citizens across the EU with a secure and convenient way to access public services while protecting their privacy. Socialist MEP Romana Jerkovic, who led Parliament’s negotiations, said:
“The implementation of ZK-proof is foreseen in the European Digital Identity Wallet as one the technologies that will give users more control over sharing of personal data. At the same time, it will reinforce the principles of selective disclosure and data minimization.”
Moving forward, the file will enter inter-institutional negotiations. Jerkovic emphasized the need for existing privacy-enhancing technologies to be aligned with one another as they mature, particularly in relation to the EU’s General Data Protection Regulation. Jerkovic said,
“For me, it is very important that we give the users of the Wallet more control over the use, sharing and managing of their own data. All the technical solutions that can help us achieve that goal should be considered and discussed. That is why the Parliament has introduced ZKPs into its position.”
With the launch of digital wallet, the EU will further enter the crypto market to track crypto transactions to avoid illicit activities.
17th Edition of Digital Transformation Summit: Qatar
Exito, having successfully organized 15+ editions of the Digital Transformation Summit globally, is now preparing to host another significant event that provides an excellent opportunity to “Future-Proof Qatar’s Digital Transformation”. Qatar has been touted as one of the fastest growing economies in the MENA region, and one that is already technologically poised to reap the rewards of digital transformation. Qatar’s National Vision 2030 is the roadmap to Qatar’s future, guiding the State of Qatar to achieve 360-degree growth in all major sectors and transforming it into a developed country.
According to studies, the majority of businesses in Qatar have already started the trip toward digitalization, but more than 70% of them will adopt it globally in the years to come. Organizational digital transformation is a driver of diverse economic growth that is in line with Qatar’s 2030 National Vision, which intends to transform the nation into an advanced society based on sustainable growth and focused toward ensuring a high quality of living for all of its residents.
The upcoming 17th Edition of the Digital Transformation Summit in Qatar aims to assist Qatari companies in identifying optimal strategies for engaging with users across all endpoints, thereby enabling them to effectively embrace digital transformation and operate and grow in a sustainable and efficient manner.
This conference will bring together over 150 C-Level Executives, Directors, and Heads of Technology, and other experts in this domain. This platform will equip you with the essential tools to risk-proof your businesses.
Speakers like Kareem Refaay, Managing Director, The London Institute Of Banking & Finance MENA, John Mankarios, Vice President – IT, QInvest LLC, Dr Mohammed Elhindi, CIO, Hamad Bin Khalifa University (HBKU), Amr Metwally, Assistant Executive Director, ITQAN, Clinical Simulation And Innovation Centre, Hamad Medical Corporation, Javier Hernandez, Technical Director, Iberdrola Innovation Middle East, Imran Chowdhury, Global Head Of Data Protection & Governance, Al Jazeera Media Network, Najmul Haque, Head of PMO, Public Works Authority ‘Ashghal’, among many others will be sharing their experiences and expertise at the summit.
Event registration has commenced for Delegates and Sponsors.
Register now to engage at this grand event as the slots are filling up fast.
To know more about the event, https://digitransformationsummit.com/qatar/
About Exito:
A global B2B business events company focused on crafting bespoke solutions and contexts by designing platforms that create new business opportunities for our clients across concepts and industries. They cherish the trust over the last 12 years garnered from our partnering organizations globally, and with a growing team of young, vibrant, and creative individuals, Exito aims at success and perfection!
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Legal Battle Ensues Over Binance’s Acquisition Of Voyager Digital- Here’s Why.
The Voyager Digital deal with Binance.US has faced legal challenges from financial regulators seeking to stop the acquisition. Binance.US won the bid to acquire Voyager Digital assets last December, but the deal has not gone through yet. In the recent hearing with Michael Wiles, a Bankruptcy Judge in the Southern District of New York, Binance.US received a go-ahead notice to acquire Voyager assets.
As a result, Binance.US is to remit approximately $20 million to Voyager Digital to facilitate the restructuring process. Notably, Binance.US is expected to benefit from more registered users as Voyager creditors are to create an account with the exchange before getting compensated.
The United States DoJ and the SEC have not been pleased with the recent ruling and have filed a motion to oppose the acquisition.
According to a notice of appeal filed late Thursday, the United States Department of Justice challenges Judge Wiles’ decision to approve the $1 billion acquisition of Voyager Digital by Binance.US. Notably, the United States financial regulators claim Binance.US is offering unregistered securities.
Voyager Creditors and Debtors Work Together
Legal Battle Ensues Over Binance’s Acquisition Of Voyager Digital- Here’s Why!
In a series of tweets, the Voyager Official Committee of Unsecured Creditors indicated that the Binance.US acquisition deal is the best path forward for Voyager customers to maximize their recoveries. As such, the Voyager Official Committee of Unsecured Creditors has indicated that it will work closely with the debtors to oppose any appeal by the government agencies.
“Based on certain statements made by government objectors, we anticipate that the confirmation order will be appealed. The UCC will work with the Debtors to oppose any appeal. However, an appeal could significantly delay creditor recoveries,” the Voyager Official Committee of Unsecured Creditors indicated.
Nonetheless, Voyager could proceed with the liquidation plan if the acquisition deal does not go through.
LGND Music Partners with Iconic Musicians to Offer Exclusive Digital Collectibles and Access to Fans
LGND Music, the revolutionary music streaming platform, announces its latest partnerships with iconic musicians to offer exclusive digital collectibles and access to fans. With the power of blockchain technology, they have evolved the way music is consumed and owned, providing music lovers with the opportunity to own both physical and virtual vinyl of their favorite music.
LGND Music’s high-res version of digital music collectibles, known as Virtual Vinyl, has enabled artists to connect directly with their fans, capture a higher share of the sale, and ensure that royalty payments are received. The platform’s unique approach to music ownership has sparked the interest of some of the biggest names in the music industry, and the company is proud to announce its partnerships with iconic musicians.
Fans will now have the opportunity to purchase exclusive digital collectibles featuring their favorite artists, and access to a variety of experiences, including meet-and-greets, backstage passes, and IRL events. They are working closely with each artist, label or management to determine what the offering should be and how they can create a Web3-based community of fans. The platform will also offer bundle digital collectibles for fans in partnership with artists, labels, and locations, making it easier for fans to discover new music and connect with like-minded people around the world.
A one-stop-shop for digital music collectibles, users will be able to play their music digital collectibles on any other existing platform or blockchain, providing users with a level of flexibility in music ownership never seen before. The platform is committed to providing a seamless and user-friendly experience.
LGND Music’s partnerships with iconic musicians and its unique approach to music ownership make it the best choice for music lovers looking for a new and innovative way to connect with their favorite artists. The platform’s offerings of exclusive digital collectibles and access opportunities offers fans a new level of engagement with the music industry and provides artists with a new channel to monetize their work. Get ready to enter the world of LGND Music and join the revolution!
The Haunting Legacy Problem of Digital Assets
Cryptocurrency has introduced a financial revolution that is changing the way we store and manage our wealth. However, the crypto world is still in its infancy and has not yet fully addressed some of the key challenges that come with this new asset class.
One of the most significant problems is the issue of crypto inheritance and what happens to digital assets when an owner dies. Access can be lost, but it can be lost in life too, which poses another problem. This article will look at a promising new solution to each of these.
A grave problem
In December 2018, Gerald Cotten passed away from complications related to Crohn’s disease. Cotten was the founder and CEO of Canadian cryptocurrency exchange QuadrigaCX. It transpired that he was the only person with access to the exchange’s cold storage wallets, where the majority of its clients’ funds were kept.
With Cotten’s death, the funds stored in these wallets became inaccessible, leading to a legal battle between QuadrigaCX’s creditors and the company’s executives. Up to US$190 million in cryptocurrency owed to 115,000 customers was missing or could not be accessed.
The case received widespread media attention, highlighting not only the risks of centralising control over large sums of digital assets, but also the importance for every crypto holder of defining a plan for their crypto holdings in the event of their death.
Crypto legacy provision
Blockchain Testament is a project that solves the problem. Its CEO and co-founder, Vsevolod Sazonov, is an attorney-at-law with over twenty years of international experience. He has a structure to create a solution that combines the security and decentralization of the blockchain with a well-established legal framework.
The project allows users to appoint a decentralised executor to manage their crypto assets and ensure that they are passed on to beneficiaries according to their wishes. Unlike traditional executors such as banks or lawyers, Blockchain Testament operates entirely in a decentralised manner, which will assure purists who place a high value on crypto’s inherent privacy.
With Blockchain Testament, users connect their wallet to a decentralised autonomous organisation (DAO). The user then defines where its contents should be transferred in the event of their death, entering this information into the DAO which serves as executor. No wallet access information is shared with Blockchain Testament itself, maintaining its security. The user appoints trusted validators who can activate the DAO to execute the testament at the appropriate time. These persons are automatically notified by the DAO if the user fails to check in at each six-month interval.
At this point, the validators can attempt to contact the user. If they determine the user is deceased, it is their role to then vote in the DAO that this is the case. Though, if the user still alive, proceedings can be halted via activation of the “I am alive” button in the DAO. If this does not happen within a set period of some months following validation, the testament is then executed. Crypto from the user’s wallet is then transferred to the wallets of successors, as defined in the testament. (See diagram below.)
Blockchain Testament is a unique solution that combines the privacy and decentralization of crypto assets with the security and legal framework of the traditional financial world. It provides a solution for crypto enthusiasts who want to ensure that their assets are passed on to their loved ones according to their wishes, without sacrificing valued principles of decentralization and privacy.
The lost access solution
It is estimated that around 20% of all bitcoins, around 4 million, are permanently lost and cannot be recovered. At the time of writing, this equates to approximately $90 billion. And, of course, bitcoin is not the only cryptocurrency, which means that the value of lost digital wealth is even higher. Some of this is due to a lack of legacy provision, but much is also lost to owners losing their private keys. Recovery Crypto is a company providing a solution to lost wallet access.
This first-of-its-kind audited technology service ensures the recovery of funds when access is lost, without the need to ever share seed phrases. As with Blockchain Testament, the system likewise operates via ingenious algorithms and smart contracts in the form of a DAO.
Recovery Crypto also similarly enlists trusted validators in its solution. In the event that access is lost, say if keys or passwords are mislaid, validators can restore access to assets by voting in the DAO. The validators themselves never have access to funds or private information. However, other wallets controlled by the user can also be employed as validators.
The Recovery Crypto system is built in a way that means the user never needs to share any confidential information with the company itself. Seed phrases, passwords and personal data remain with the user. Any kind of decentralised wallet, hot or cold, can be connected to the system’s DAO.
Some crypto holders appreciated the wallets of crypto exchanges for taking responsibility of custodianship, a likely hangover from the traditional financial world. For others, though, the saying “not your keys, not your coins” comes into play. In the event of a security breach, or exchange collapse, like FTX exchange, funds can be lost. With Recovery Crypto, users have the best of both worlds: decentralised custodianship with a reliable in case of lost access.
The crypto world is still relatively young. The novel nature of digital assets and decentralised, independent control by users means that lost access and a lack of legacy provision will still catch out many crypto holders. It’s therefore encouraging to see that secure, easy-to-use and affordable solutions exist.
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NovaWulf Digital Will Acquire Bankrupt Celsius, Here’s How They Plan to Pay Their Creditors
An agreement in principle has been reached for NovaWulf Digital Management to acquire bankrupt cryptocurrency company Celsius. Out of the more than 130 bids it received during its bankruptcy case, Celsius chose NovaWulf’s offer.
As reported by Coindesk, the arrangement has been approved in principle by the company and NovaWulf, but before moving forward, the parties still require the bankruptcy court’s and the creditors’ consent.
If the proposal put out by Celsius is accepted by US Bankruptcy Judge Martin Glenn, who is overseeing Celsius’ Chapter 11 procedure, those assets would be held by Celsius creditors and managed by NovaWulf under a profit-sharing agreement. According to the proposal’s conditions, the company projects that 85% of Celsius’ clients will receive around 70% of their claims in liquid cryptocurrency.
Creditors would receive the majority of their money back in the form of BTC, ETH, and USDC if they had less than $5,000 in their lending accounts. Larger creditors will obtain tokenized shares in the new company, which will trade on the Provenance blockchain by Figure Technology through a licenced broker-dealer.
NovaWulf has agreed to contribute up to $55 million to the reformed business, which will continue the lending and bitcoin mining operations of Celsius and be held by its creditors. Court filings state that NovaWulf will receive a portion of the new company’s earnings.
After freezing consumer withdrawals, Celsius filed for US bankruptcy in July. At the time, Celsius reported having more than 1.7 million registered members and about 300,000 active users with account balances of at least $100.
The official committee of Celsius’ unsecured creditors stated in a different motion that it was attempting to recover money from the company’s former CEO Alex Mashinsky and other executives who served as the company’s leaders prior to going bankrupt.
Crypto Market Turns Bearish After SEC Wages War on Digital Asset Staking
The cryptocurrency market has turned bearish in the past 24 hours with Bitcoin and Ethereum prices down approximately 4 and 5.6 percent respectively. According to the latest crypto price oracles, the total digital asset’s market capitalization stands at approximately $1.02 trillion, down about 4 percent on Friday. While a crypto market correction had been predicted in the past few weeks, the announcement that the SEC is bound to ban staking-as-a-services has exacerbated the decline.
As the fear of further capitulation increases, crypto liquidations, totaling over $223 million, has intensified in the past 24 hours. Huge transfers of Circle’s USDC token have been observed in the past 24 hours, often a characteristic of impending volatility.
Gary Gensler on Crypto Staking
On Thursday, the United States Securities and Exchange Commission (SEC) charged the Kraken cryptocurrency exchange with failure to register the offer and sale of its digital asset staking-as-a-service program. As a result, Kraken has agreed to cease offering crypto staking programs and had to pay $30 million in disgorgement, prejudgment interest, and civil penalties.
“Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws,” said SEC Chair Gary Gensler.
The agency’s move has, however, been condemned by the crypto community and also some lawmakers. For instance, the United States House Majority Whip Tom Emmer has argued that the SEC is hurting Americans more as the staking services are available off-shore.
Nonetheless, MicroStrategy’s chairman Michael Saylor has backed Gensler’s action by reiterating the old crypto slang; not your keys not your coins.
What Digital Land Should I Buy?
The metaverse age is rapidly drawing upon us, bringing higher numbers of people into a connected, persistent virtual reality where they can live digital lives alongside their existence in the real world.
It’s believed that the metaverse will become a place where people will work, play, socialize and learn without leaving our homes. People will be able to invest, run businesses, make money, buy and own property and assets and more besides.
So-called digital land has become a big business in anticipation of this new reality. Big enterprises including Samsung, JP Morgan, HSBC and PwC, as well as superstars like Snoop Dogg, have already bagged their first plots of metaverse land, which they’re now developing for a range of different purposes. Meanwhile, the earliest buyers have made big profits on their investments. Whereas the first plots of digital land in metaverses like The Sandbox and Decentraland sold for just a few hundred dollars, some land parcels now cost several thousands more.
What’s In It For Me?
There are a few common reasons for wanting to own digital real estate in the metaverse. One of the biggest motivations for some buyers is that they see it as an investment, and hope to resell the land in future for a much higher price. Metaverse land prices might increase for various reasons, such as if the land itself is developed, or due to its proximity to other, popular plots of land. In December 2021 for example, it was reported that three plots of land located adjacent to Snoop Dogg’s virtual mansion in The Sandbox sold for a combined cost of $1.23 million. Just as we see with physical property, digital land that’s nearby to famous landmarks or celebrity homes often carries a much higher price tag.
Other reasons to want to purchase digital real estate include becoming a landlord. In this way, it’s a similar investment, only rather than holding onto the parcel until its price increases, users simply buy a desirable plot and try to rent it out to others. Digital land in the right location is often very desirable, but not everyone can afford to buy that land outright. However, they may still be prepared to lease it.
Then there are the people who actually intend to use metaverse land, either for advertising, building a business, or something else. Some individuals and companies have developed metaverse-based shopping malls, virtual reality experiences, games, art galleries, exhibitions, virtual stadiums etc. So anyone with plans for a project in the metaverse needs the digital real estate to make it happen.
As the metaverse continues to evolve and expand, it’s likely that demand for virtual land and property will increase.
There are dozens of popular metaverses around, and new ones keep popping up all of the time. Before choosing which metaverse to buy land in, it’s a good idea to think about what kind of project you intend to create, and then check to see which virtual world is best suited for it.
The biggest brands would most likely want to be associated with metaverses that already have a significant presence. For instance, Roblox has previously hosted virtual concerts by celebrities such as Lil Nas X, Tai Verdes and Zara Larsson. Meanwhile, Decentraland hosted a virtual fashion week that showcased brands including Estee Lauder, Adidas and Dolce & Gabbana. It has also been graced by events hosted by Paris Hilton and Deadmau5.
Bear in mind that land in the most popular metaverses tends to fetch much higher prices, especially if the plot in question is in close proximity to major attractions.
Decentraland
One of the most popular choices for digital land buyers is Decentraland, which is hosted on the Ethereum blockchain. Decentraland is best known for its Decentral Games casino, where visitors represented by digital avatars come to play high stakes Ice Poker using cryptocurrency, but it is home to many other attractions besides.
Within Decentraland, available land can be found within its structured grid system of three-dimensional virtual plots, known as LAND. The number of plots is finite, a design feature that will hopefully ensure that as demand goes up and available space decreases, land prices will increase.
Ownership of LAND is recorded on the Ethereum blockchain, and owners can use their plots to build virtual structures, host events and concerts, play games and more. LAND plots are represented by non-fungible tokens (NFTs) and identified by a coordinate system, and can be individually owned by members of the community through a proof-of-ownership contract within the corresponding NFT.
While the LAND is finite, bear in mind that Decentraland is still a big place, with over 90,000 LAND available. Each LAND parcel is a square-shaped 3D block that measures 33 feet x 33 feet, with height being unlimited. To purchase Decentraland LAND, it’s necessary to acquire MANA tokens.
Although LAND can be pricey, Decentraland is a good place for many to start their metaverse adventure because developing the plots doesn’t require any coding expertise. Instead, users can develop their plots using various tools Decentraland has put at their disposal, with dozens of pre-built structures and scenery to choose from.
Decentraland saw one of the most expensive digital land sales ever when the Metaverse Group acquired a single plot for 618,000 MANA (worth $2.4 million at the time) in Nov. 2021. It said it intended to develop the land and organize fashion shows and other commercial activities around fashion.
The Sandbox
The Sandbox shares Decentraland’s status as the most famous metaverse platform, and has a lot of similarities. It too is hosted on Ethereum, and each land parcel within it is unique, represented by an ERC-721 NFT.
Land within The Sandbox can be acquired directly from the platform’s marketplace, or from third-party NFT platforms such as Opensea. There are, and can only ever be, 166,464 lands in The Sandbox. Because it’s decentralized, just like Decentraland, land owners have the freedom to do with their land as they see fit, creating experiences like games, 3D dioramas, exhibitions, art galleries and more.
Some users have sought to acquire “estates” within The Sandbox by acquiring multiple connected land plots, an example of which is the Sandbox District. Many of these users have successfully monetized their digital land through the creation of games, or by selling digital merchandise.
The best known landowner in The Sandbox is the hip hop legend Snoop Dogg, who created the Snoop Dogg Mansion, one of its most popular landmarks. Fans are welcome to visit at any time and experience occasional concerts, and even meet and interact with Snoop himself if he happens to be hanging out in his digital lounge. He also created the Snoopverse experience complete with an early access pass for his biggest fans.
The Sandbox’s native token is SAND, an ERC-20 asset that’s used to pay for land, and goods and services sold within the metaverse. All digital items sold within The Sandbox are NFTs, but bear in mind that in addition to SAND, you must also hold an amount of ETH to pay transaction fees.
The Sandbox has created an inclusive economic structure that everyone can benefit from, which explains why it’s one of the most popular choices for gamers, digital artists and even speculators.
Project Origin
Created by Looking Glass Labs’ studio, the House of Kibaa, Project Origin is a new kind of metaverse platform with a focus on hyper-realism and building state-of-the-art facilities and experiences powered by the Unreal Engine 5, which generates extremely realistic graphics.
Whereas metaverses such as Decentraland and The Sandbox are characterized by blocky, cartoony graphics, Project Origin is all about realism, intending to create a premium digital space that will feel altogether more immersive and real. It is planning to create a total of 20 different environments inspired by the real world that will, together, accelerate the intersection of physical and digital worlds.
One of the main areas of focus is HTML5 interoperability, which will enable brands to bring existing Web2 experiences and design teams into the metaverse.
House of Kibaa held its initial land sale in April 2022, raising $2.6 million from the sale of an undisclosed number of plots, which were described as four-acre land parcels located within the consumer-focused section of its metaverse. It’s planning additional sales in future too, with a focus on B2B and brands. Just as with Decentraland and The Sandbox, land within its metaverse will be finite.
Users will be able to perform various activities in Looking Glass Labs’ hyper-realistic metaverse, with mini-games and activities personalized based on the NFTs they hold, with real-time NFT swaps and trades available. There will be user incentives too, with NFT holders able to earn rewards for engaging within its various environments. Of course, user engagement is a big focus, with the potential for life events and more.
Roblox
Roblox stands out for being one of the oldest metaverses of all, having first launched in 2006 even before the concept was established. It’s notably a centralized metaverse, which means it is controlled by its original developers.
While it shares similarities with other metaverses, one of the major drawbacks of Roblox is that it doesn’t have its own cryptocurrency token or NFTs, so play-to-earn experiences are not possible here.
That said, it’s still one of the most popular metaverses around with more than eight million developers and hundreds of millions of players. It currently boasts over 20 million separate lands, known as “experiences”, which host individual games.
Buying land in Roblox has a lot of potential for developers, who can earn money from people who play their games by selling in-game items, though they will only receive a percentage of each sale, with the rest going to Roblox itself. Of course, it’s not necessary to develop games yourself, as many brands (including WalMart) and individuals have bought land and hired developer teams to build game experiences within its metaverse. Experiences can be created within the Roblox Studio, which is a developer portal that comes complete with an array of tools for building games.
The main reason for Roblox’s success is that all of its games are ostensibly free-to-play, with monetization based on encouraging users to purchase in-game avatars and items that increase their chances of winning and help their characters to stand out.
Some of the biggest experiences in Roblox have hired famous artists to appear and perform within their game universes, attracting more players to the event. There have also been reports of developers selling entire experiences for vast sums of cash. So, while Roblox might not be decentralized, making it quite different from other metaverses, there are still good reasons to consider buying digital land here.
It’s hard to say if metaverse land represents a good investment or not, because its success will depend on the idea of living a digital life in a virtual environment really catching on. What we do know is that there are many people who believe in the future of the metaverse, with big tech firms like Facebook – now known as Meta – Nvidia and Microsoft all making big investments in the space.
If the metaverse grows to become the next version of the internet, as many predict, then it seems certain that digital real estate will become an extremely useful and valuable asset. Virtual worlds have the potential to enable a wide range of immersive new experiences, products and services, and concepts like metaverse dating, socializing and collaboration have good prospects in the longer-term. In other words, there are lots of reasons to think that digital land will become increasingly sought after in the future.
Digital Currency Group Sells Grayscale Shares to Raise Funds Amid Financial Difficulties
Digital Currency Group (DCG), a crypto conglomerate backed by SoftBank, is selling shares in several of its investment vehicles run by subsidiary Grayscale. The move is a response to the financial difficulties the company is facing as it attempts to raise funds to pay back creditors of its bankrupt lending arm, Genesis. Connecticut-based DCG, which was founded in 2015, is one of the largest and oldest investors in cryptocurrencies and is backed by investors including SoftBank, CapitalG, and GIC.
Grayscale a Key Source of Income for DCG
Grayscale, which is DCG’s asset management business, is a crucial source of income for the company, earning hundreds of millions of dollars each year in fees for managing pools of cryptocurrencies in funds that can be purchased by investors.
Despite the shares in one of the largest trusts trading at a significant discount to the underlying value of cryptocurrencies, DCG is selling stakes to raise money after the lending units of Genesis filed for bankruptcy in January.
The company has been trying to repay over $3bn to its creditors and is also looking to sell CoinDesk, its trade news site, as well as some of its $500mn venture portfolio. In recent share sales, DCG has focused on its Ethereum Fund, selling around 25% of its stock to raise as much as $22mn since January 24. The shares are being sold at $8 each, despite each share representing $16 of ether.
Grayscale Management Fees a Significant Income Source
Grayscale’s 2.5% management fee on the 3 million ether in the trust equates to $209mn annually, while its flagship Bitcoin Trust, which holds 3% of all Bitcoin, worth $14.7bn, earned $303mn in fees in the first nine months of 2022. DCG has also started selling down smaller blocks of shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust, and Digital Large Cap Fund.
In a nutshell
In conclusion, Digital Currency Group (DCG) is experiencing financial difficulties and is selling shares in some of its investment vehicles managed by its subsidiary Grayscale. This is a response to these difficulties and a move to raise funds to repay creditors of its bankrupt lending arm, Genesis.
Grayscale has been a significant source of income for DCG, generating millions of dollars in management fees each year. The company is also considering the sale of CoinDesk and some of its venture portfolio. DCG has recently been selling shares in the Ethereum Fund and gradually reducing its stake in other trusts and funds.
Marathon Digital Mines Its Way With 2x Sales In January
As Bitcoin price surged above $23,500 level, long time Bitcoin holder Marathon Digital (MARA) has claimed to have sold a few of their Bitcoin holdings. This is for the first time the Bitcoin mining giant has decided to sell its BTC holdings in two years.
As per the official claim posted on Feb 2, in the month of January Marathon Digital has sold 1,500 Bitcoin which is worth $35.3 million. Though a few crypto miners were forced to sell their crypto holdings due to financial distress, Marathon Digital clarified that this wasn’t their condition.
Marathon Digital Plans To Dump More Bitcoin Ahead
As per Charlie Schumacher, corporate communications VP at Marathon, the firm didn’t want to sell their BTC holdings while the production was down. This was one of the main reasons for the company to hold on to their BTC holding until now. However, in 2023 Marathon is looking forward to paying their debts and increasing cash. Also the firm is working towards holding a liquidity of both cash and Bitcoin.
What needs to be noted here is even after the firm sold 1,500 BTC, they have increased their unregistered BTC holdings of 8,090 BTC ($189.8 M) in January. Moreover, while Bitcoin price soared in 2023, Marathon Digital also recorded an increase of 45% in the total Bitcoins minted. In the month of January, the firm minted a total of 687 BTC while in December 2022, they produced only 475 BTC.
Also in terms of stocks, Marathon Digital Holdings stock price (NASDAQ-MARA) saw an increase of 135% in January and is now trading at $8.
As Bitcoin production increases, the company is hoping to sell more Bitcoin ahead to increase their operational costs. As per the data, Marathon Digital is the second biggest publicly-listed holder of Bitcoin after Microstrategy.
Voyager Digital Slammed with $446M Lawsuit by Alameda Research
Alameda Research, the sister company of bankrupt crypto exchange FTX, is suing Voyager Digital in a bid to recover loan repayments made prior to FTX’s own bankruptcy in November 2022.
Alleged Loan Repayments to Voyager
Lawyers representing FTX and Alameda have filed a lawsuit in a Delaware court for $445.8 million against Voyager. This comes after Voyager filed for Chapter 11 bankruptcy in July 2022 and demanded the repayment of outstanding loans from FTX and Alameda.
FTX claims that these loan repayments are eligible to be recovered as they were made shortly before FTX’s own bankruptcy in November. The crypto exchange alleges that it paid Voyager $248.8 million in September, $193.9 million in October, and a $3.2 million interest payment in August.
The filing notes that the total amount being sought could go higher if evidence of more payments from Alameda Research to Voyager Digital is found. The lawyers are also seeking the repayment of legal fees.
The filing also alleges that Voyager played a role in the collapse of FTX and Alameda, calling Voyager a “feeder fund” that did “little or no due diligence” before investing money from retail clients. The exchange hopes to use any recovered funds to repay its creditors.
Exclusion of Turkish Subsidiaries
In a separate motion, FTX has requested the exclusion of two of its Turkish subsidiaries, FTX Turkey and SNG Investments, from the bankruptcy proceedings. The company believes that U.S. courts have no jurisdiction in Turkey and that customers have already started private claims against the company.
FTX had previously planned to buy Voyager out of bankruptcy before its own collapse in November 2022.
The Backstory of FTX Bankruptcy
The top crypto exchange FTX filed for bankruptcy in November 2022, when the crypto giant collapsed after a run on its utility token. It affected millions of customers and investors. Indicted on fraud charges, FTX’s founder Sam Bankman-Fried denies wrongdoing and will stand trial in October. Meanwhile, Alameda Research CEO Caroline Ellison has pleaded guilty to fraud.
What does this mean to the crypto industry?
The outcome of this lawsuit will have significant implications for the future of both Alameda and Voyager, as well as the broader crypto industry. With the increasing number of crypto-related lawsuits and bankruptcies, it is crucial for companies to ensure that they are following proper regulations and investing customer funds responsibly.
The Need For Decentralized Digital Identity
The entire Web2 ecosystem has often been marked with security incidents that end up disclosing the personal information of its users. Several Tech Giants have either been exploited or have intentionally sold user data. Centralized storage has often compromised user data.
However, Web3 allows you complete control over your digital identity. It lets you restrict, deny or allow partial access to your data. Overall, the user is in complete control here. Further, there is decentralized storage which secures your data more effectively.
Security Lapses in Web 2.0
Data breaches, phishing, ransomware attacks, and DDoS are just a few among many incidents that mark the Web 2.0 ecosystem.
Between 2013-14, Yahoo suffered two massive data breaches that exposed the data of several hundred million users.
In 2014, hackers gained access to the iCloud accounts of several celebrities. This incident resulted in several leaked photos and videos. Famous celebrities like Rihanna and Jennifer Lawrence were the ones among those affected.
In 2017, Equifax lost the data of 143 million users following a data breach. The data contained sensitive information such as Social Security numbers, date of birth, and email addresses.
In 2018, BBC reported that Facebook had done data-sharing deals. It paid a staggering $725 million asfine.
In 2021, Bureau Veritas, a laboratory testing company, was compromised, resulting in the loss of confidential information about its clients.
Such incidents hurt thousands of users financially and socially and also erased the trust of millions of others. Identity theft amounts to 25% of financial fraud and similar crimes, according to the US Govt. agency Federal Trade Commission.
When we look at the fundamentals of these hacks, data breaches, and cases of sold-off information, we find one common thread that connects them all.
Centralized storage of information, especially for sensitive data (like digital identity), makes it very easy for hackers to get unauthorized access to them. There are several other problems like:
- Limited Flexibility. Your information can only be as broad as the service provider allows. The flexibility of sharing data, such as totally, partially, or denied, also depends on the service provider.
- Limited Accessibility: Your data can only be accessed from a certain device(mostly a desktop or laptop). You might not be able to access it during vacations, during commutes, or travel.
- Systems Failure: Failure in electricity, natural disasters, theft, and negligence can put the service provider’s system at risk and makes your data vulnerable.
What is the Solution?
Digital identity can be stored far more effectively in a decentralised manner using Blockchain Technology. It offers several core advantages and numerous other benefits.
- Greater transparency as data that is stored on the blockchain is immutable.
- Data is anonymous, can only be paired with users when the user wants and is not at the service provider’s mercy.
- There is no single point of failure. Several nodes secure the blockchain, and even one single running node can run it if all others are down.
- Increased security because blockchains require the consensus of a majority of nodes to approve an action as legitimate.
- Greater user control because no single entity has control over the data.
- Improved accessibility as nodes are often spread worldwide. Users can access the data from anywhere through a node.
Better user experience and greater user control are at the core of Web3. Just a simple technology offering is not enough to encourage users to move from Web2 to Web3. The migration process also has to be easy.
ShareRing is a Web3 data solution that leverages blockchain technology to store data in a decentralized way. No central entity ever controls the data, not even ShareRing. The data is stored on a blockchain called ShareLedger. ShareRing also stores user-related data, such as Govt ID used during verification, only on the user’s phone. ShareRing does not control the data.
Further, ShareApp helps you establish your digital identity and help prove your credentials. This is done through blockchain tokens which, when transferred in a specific way, establish your credentials. ShareRing also helps easy user onboarding that enables even the most novice Web3 user to create a secured digital identity. ShareRing has also focussed on user-level customization, allowing users to customize the user interface according to the information they prioritize.
ShareRing lets users use their service to establish digital identity even in Web 2.0. This helps those users who also need Web 2.0 or user who need more time to migrate.
Conclusion
Digital Identity is a core part of a user’s online life. Securing it becomes a critical need for a secure digital life. Web 2.0 uses centralized identity storage that is owned by single entities, which cannot keep even the most sensitive data safe.
Web 3.0 changes that with blockchain-based security that does not let any single entity control your data. The user becomes the true master of their digital identity, it proves your digital credentials and helps you establish your identity.
Uncovering the Secret Bids: Binance, Galaxy Digital, and Others in the Race to Acquire Celsius’s Assets
Binance, Bank to the Future, NovaWulf, Cumberland/DRW, and Galaxy Digital have reportedly submitted bids to purchase the assets of Celsius, a leading crypto lending platform. According to crypto blogger Tiffany Fong, the bids were submitted in secret in November 2022.
Binance offered $15 million, with $12 million going to the company and $3 million to be distributed to ‘migrated users on a pro-rata basis’. However, these bids are now mostly abandoned and the Celsius’s lawyer recently stated that the bids are not compelling enough, hence Fong revealed this information in her blog.
Fong stated that she is aware of five bids on Celsius Network’s crypto assets and that Binance is the biggest name among them. Furthermore, she highlighted that Novawulf’s bid is particularly noteworthy as it appears to resemble Celsius Network’s recently proposed restructuring plans.
Celsius filed for Bankruptcy in November 2022 due to a liquidity crunch after FTX fell. They were left to sell off some of their assets to pay back their creditors. The news of secret bids has fueled speculation for a potential acquisition or merger.
The 5 companies interested in acquiring Celsius’ assets have been expanding their presence in the crypto lending space. Binance, in particular, has been actively building out its lending and borrowing platform, Binance Lending, and the acquisition of Celsius would give the company a significant boost in this area.
Galaxy Digital, on the other hand, has been focusing on building out its institutional lending business. Celsius’s acquisition would give the company a significant foothold in the retail lending market.
Fong said that she was surprised to learn that most employees of the company, including upper-level management, were not aware of these secret bids. Fong believes that creditors and employees have the right to know more about the bids on assets they deposited on the platform and that they deserve more transparency.
The news has undoubtedly caught the attention of the crypto community and many are eagerly waiting to see how the situation unfolds for Celsius.
Crypto Lawyer Reveals Flaws In SEC’s Confrontational Approach To Digital Assets
It is widely acknowledged that the Securities and Exchange Commission (SEC), particularly under the leadership of Chairman Gary Gensler, has a negative stance toward cryptocurrencies.
John Deaton, a lawyer specializing in digital currencies and the founder of Crypto Law, has highlighted the SEC’s confrontational actions against cryptocurrencies and their issuers, which appear incongruous when compared to the agency’s attitude in the recent past.
Deaton Sheds Some Light
John Deaton has highlighted the inconsistencies in the Securities and Exchange Commission’s (SEC) approach toward cryptocurrencies. He began by referencing William Hinman’s well-known “Hinman speech” in which he argued that a digital asset marketed as an investment to non-users by promoters to develop the enterprise, can be, and most often is, security.
Deaton stated that in this context, XRP does not fit the definition of security, yet the SEC is suing Ripple, the issuer of XRP, for it. The Hinman documents run counter to the SEC’s whole argument and have been a constant source of contention in court. Despite this, Chairman Gary Gensler has repeatedly said that Hinman’s view has nothing to do with the SEC, yet they still do not want the documents revealed for “some” reason.
Deaton also pointed out that according to the SEC’s 2019 Framework for Digital Assets, a cryptocurrency is unlikely to pass the Howey test if it can be used to make instant payments in a broad range of situations or operates as a replacement for fiat currency. It’s worth noting that SEC employees could legally buy and sell XRP up to April 2019.
He said: “On this info alone – even if you hate Ripple – you realize how screwed up and all over the place the SEC’s approach to crypto has been.”
XRP’s Current Performance
As of this writing, XRP has had a nearly 10% gain over the previous week. Despite the ongoing litigation between the Securities and Exchange Commission (SEC) and Ripple, the network has still achieved several major milestones.
Many in the cryptocurrency industry, including Ripple CEO Brad Garlinghouse, believe that the company will ultimately emerge victorious. John Deaton, a lawyer specializing in digital currencies, claims that if Ripple does not win, it could have a negative impact on other crypto assets and platforms as well.
CIP-30 To be Activated on Cardano Soon, Solana Re-Enters Top 10 Digital Asset, Snowfall Protocol Early Investors To Profit Over 5000%
The crypto market has been in a positive cycle lately, with many tokens seeing instant price gains. However, it is yet to be seen if tokens such as Cardano (ADA) and Solana (SOL) will be able to maintain their high growth rates for a long time. On the other hand, some newly launched tokens like Snowfall Protocol (SNW) have been growing consistently since launch. In this article, we will discuss what makes Snowfall Protocol (SNW) stand out from pre-existing and well-known tokens like Solana (SOL) and Cardano (ADA).
Cardano (ADA) developer discloses plans of CIP-30
A developer and contributor to the Cardano (ADA) crypto ecosystem, Adam Dean, has shared the specifics of his work on CIP-30. To connect crypto asset storage with decentralized applications, hot wallets based on Cardano (ADA) need the functionality of web page interaction, which may be achieved with the help of the proposed Cardano (ADA) enhancement. WooCommerce is the most popular e-commerce platform, and now Cardano (ADA) Mercury can be used as a direct payment channel between customers and business owners.
On the price front, Cardano’s (ADA) recent analysis shows that after a strong bullish period, Cardano (ADA) is trading at $0.36. After a few days of ups and downs, the price is 11% higher than it was earlier this week when it hit a high of $0.31. However, technical analysis suggests that the price might fall in the foreseeable future. Cardano (ADA) is still 78% below its price in January 2022, and it will take a long time for the cryptocurrency to recover.
Solana’s (SOL) dramatic price increase may fade soon
After a seven-day surge that saw its value increase by more than 70%, Solana (SOL) got ahead of Polygon on January 15, pushing it to the tenth spot on CoinMarketCap’s list of top crypto assets by market cap. Solana (SOL) returned to the list pushing other well-performing tokens below, especially after the FTX collapse of 2022. The sentiment toward Solana (SOL) appears to have turned positive again, as its price has increased by roughly 135% since the start of 2023.
In the past week, the market value of Solana (SOL) has risen from $5 billion to nearly $9 billion. Further, Mamba, the co-founder of the Solana (SOL) project, stated that believers in the token’s progress bought the coins, leading to a dramatic price increase in just 15 days. The growth of Solana’s (SOL) ecosystem was paralleled by the birth of a new meme coin, Bonk Inu. Solana (SOL) is still much behind its all-time highs and the token’s future depends upon the overall investor interest, which may fade over time.
Snowfall Protocol (SNW) wins in terms of price gains
Though the market was experiencing a dip, Snowfall Protocol’s (SNW) value has been steadily increasing. Snowfall Protocol (SNW) has performed very well since it was launched in the crypto market, and investors have been keen on finding what’s next for the revolutionary token. Despite the decentralized system not yet being live, investors of Snowfall Protocol (SNW) have seen remarkable returns of 500% since the token’s first presale phase.
The final Stage of Snowfall Protocol’s (SNW) presale is presently active, and the token is being offered at a 400% premium over its Stage 2 prices. Snowfall Protocol (SNW) is an attractive investment due to its low price of $0.191, and the benefits it provides its users. Snowfall Protocol (SNW) is set to launch on February 3. In the months following the coin’s launch, investors may witness profits exceeding 5000% of their initial investment.
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Does The Future Of Digital Assets Hinge On The Ripple Lawsuit’s Outcome? Experts Weigh In.
Cryptocurrencies have spent the majority of 2022 in a slump caused by scandal, financial losses, and a public perception issue after reaching a high market value of $3 trillion in 2021.
The FTX collapse shook the cryptocurrency sector. Millions of dollars were invested in the company by renowned investors. Huge losses were also suffered by countless individual dealers. With concerns growing regarding the health of other industry titans like Binance and Crypto.com, it represents one of the biggest issues for cryptocurrency to date.
The Ripple vs SEC case is very crucial for the entire crypto industry. Let’s see why and how?
Ripple’s General Counsel Speaks Out
Ripple’s General Counsel, Stuart Alderoty, expressed his opinion on how significant the XRP case verdict is for the crypto sector. He continued by saying that the decision of the Ripple case will probably have a significant impact on the future of digital assets in the US.
If the SEC prevails in the legal dispute, XRP will no longer be regarded as a currency in the US but rather as a security in 2022. In turn, this might create a legal standard that leads to the classification of related cryptos as securities.
According to Ripple’s general counsel, selling an asset on the secondary market is analogous to selling a commodity and therefore these assets ought to be governed similarly.
Has the FTX debacle weakened the Ripple case?
The recent failure of Sam Bankman-FTX Fried’s cryptocurrency exchange has caused a sharp decrease in the market for digital assets, highlighting the urgent need for legal restrictions.
Former SEC executive Joseph Hall stated that the latest crypto market debacle could affect the court’s decision. He added that the US watchdog will work hard to make it obvious that if the judge finds against them, they will be unable to counter FTX-type situations in the future.
The SEC is sticking to the claim that Ripple is a common enterprise. This claim has become a big issue for the commission once again. The defendants claim that the XRP does not pass the security test because it was sold on the secondary market. It goes on to say that there was no such profit sharing.
Everyone awaits the conclusion of the lawsuit. Ripple winning could provide a lot of clarity in the industry, with an increase in value and trading volume. On the downside, it could appear as a blow to the SEC’s efforts to regulate the cryptocurrency market and enforce investor protections.
Is Digital Currency Group (DCG) a Sinking Ship? What To Expect in 2023 – Another Bankruptcy?
Digital Currency Group (DCG) is a venture capital firm that invests and builds businesses in cryptocurrency, and blockchain-related companies. It is founded in 2015 by Barry Silbert and is headquartered in New York. The subsidiary companies of DCG include Genesis (a crypto lending firm), Grayscale (a securities firm), and Coindesk (a crypto news agency).
Genesis provides liquidity to institutional clients and professional traders by facilitating the trading of large blocks of cryptocurrencies like Bitcoin, Ethereum, etc.
Grayscale is a digital asset management firm that offers investment products for institutional and accredited investors. The firm provides various investment products such as digital currency investment products, and ETFs, that can be bought as shares on OTCQX. The share price mirrors the price movements of bitcoin prices.
Grayscale’s investment products are backed by Bitcoin and other cryptocurrencies. This product was introduced to expose investors to cryptocurrencies without risk involvement. Grayscale makes money by charging a small commission on trading shares and also charging an annual fee.
As of now, Grayscale is the second largest owner of Bitcoin other than Satoshi Nakamoto which amounts to 638,480 BTC.
What happened to Genesis?
Following FTX’s collapse in November 2022, Genesis officially said on their Twitter account that they had lost $175 million, however, they assured that it won’t affect their market-making activities. But within a week they halted withdrawals which caused widespread anxiety among the investors.
The year 2022 had not been good for Genesis, as two companies (Three Arrows Capital and Babel Finance) in which Genesis invested failed miserably which resulted in the loss of millions of dollars for Genesis. This happened in June 2022. FTX collapsed in November 2022 and Genesis was affected. Even though the parent company DCG gave a loan to Genesis to keep the company afloat, it was not enough.
Federal prosecutors are currently investigating the dealings and transactions between DCG & Genesis. Genesis Spokesperson assured that the company operations are done according to federal laws and the current financial crunch will be settled soon.
What happened to Grayscale?
Grayscale Bitcoin Trust (GBTC) is a prominent investment product of Grayscale. GBTC allows investors to follow the movement of Bitcoin without actually owning or holding the bitcoin. GBTC is like a share where the investors can buy, sell and trade just like any other stock.
The amount of GBTC an investor holds is directly proportional to a certain fraction of bitcoin they could have owned. Investors won’t have to take the risk of holding Bitcoin if they are owning GBTC. Grayscale reassured the customers that there is no risk involved and it is a completely secure investment.
The price of GBTC can vary and may be traded at a premium or discount depending on the supply and demand of GBTC shares. GBTC may be sold at a lower price (discounted price) if demand is low and may be sold at a higher price (premium price) if the demand is high. The risk with GBTC is that when there is a downtrend in the market, GBTC will be sold at a discounted price causing a loss for the Grayscale company
After the bull run in 2021, Bitcoin had a bearish year in 2022. This has affected the revenue generation in Grayscale also. On top of that, there are massive withdrawals by investors in every exchange and cryptocurrency investment firm. The ugly truth is that DCG, Genesis, and Grayscale were not prepared for this and hence they halted withdrawals.
How SEC could have helped Grayscale?
Grayscale has done everything from their side to convert GBTC into ETF so as to remove the leverage and thereby remove premium and discounted prices. They have requested this from the Securities and Exchange Commission (SEC) many times. But SEC denied this stating that it might lead to Spot bitcoin manipulation and fraudulent activities. SEC was correct from their point of view and Grayscale has sued SEC for this which will get a final verdict on 3rd Feb 2022.
What is Likely to Happen in 2023?
There is a high chance that DCG may file for Chapter 11 bankruptcy. If that happens they might need to liquidate their assets, but the company cannot just sell off their digital assets so easily and might require more time. The assets of Grayscale might also be liquidated to recover the loan amount.
Winklevoss brothers might sue Genesis for the mismanagement of their investor funds. Genesis is also on the verge of bankruptcy. It had laid off 30% of its employees in 2022.
The bright side is that federal prosecutors are working in the best interest of affected investors and the general public. If there is one big thing you can learn from this prolonged crypto winter is that – “Keep your coins in your own wallet, Be the sole custodian of your coins!”
U.S. Authorities Investigate Transfers Between Digital Currency Group and Genesis
Digital Currency Group (DCG) is a venture capital firm that invests in and incubates companies in the digital currency and blockchain technology space. Genesis is a digital currency trading platform and liquidity provider that is owned and operated by Digital Currency Group. Genesis is a company that is part of the portfolio of companies that are invested in by DCG.
It is speculated that the US authorities are inquiring into the internal financial operations of Barry Silbert’s vast crypto enterprise. The investigation is regarding the transfers between Digital Currency Group Inc. and a subsidiary that provides crypto financing services.
What caused the issues for Genesis?
Genesis, which brokers digital assets for financial institutions such as hedge funds and asset managers, had about $3 billion in total active loans at the end of the third quarter. However, following the extreme market turmoil that followed after FTX declared bankruptcy, its crypto lending business ceased making new loans and restricted customers from withdrawing funds.
Its contagion concerns stem from its close affiliation with troubled crypto firms. Three Arrows Capital, a Singapore-based cryptocurrency hedge fund, and Alameda Research, a trading firm closely associated with FTX, were Genesis’ two biggest borrowers. Both are currently going through bankruptcy.
Genesis employed 260 members but cut it down to 20% in the round I. Round II saw a 30% cut, reducing the team’s size to 145.
According to additional sources, the layoffs were not limited to one area but occurred throughout the company. It is also rumored that Genesis is working with investment firm Moelis & Co. to assess its alternatives moving forward, including a potential chapter 11 filing.
Crypto Conglomerate DCG Being Investigated
Transfers between Digital Currency Group and the conglomerate’s Genesis subsidiary are being investigated by officials of the U.S. Securities and Exchange Commission and the Eastern District of New York (EDNY) of the U.S. Department of Justice.
The Eastern District of New York office of the DOJ has so far asked DCG and Genesis for interviews and documents, and the SEC’s investigation looks to be in a similarly early stage. Up until this point, neither Genesis nor DCG had “been accused of wrongdoing.”
According to the source, the inquiries appear to be particularly focused on the financial interactions between Genesis and DCG.
On Friday, a DCG representative told Bloomberg that the company was not aware of any EDNY inquiry, while a Genesis spokesperson told the news outlet that the company “maintains regular dialogue” with regulators but couldn’t comment on particular topics.
The investigation is still in its nascent stages and neither DCG, nor Genesis is being accused of any crime. However, could things make things worse for the already struggling Genesis?
KEY3.id Launches Bored Ape Domain .bayc, The First Digital Identity Bound To Blue Chip NFTs
November 24,2022 – Today at 20:00 (UTC+8) KEY3.id, a distributed, open, and extensible naming system launched the first Blue Chip NFT bound decentralized identifier (DID) .bayc. Bored Ape (BAYC) NFT holders now claim the corresponding numbered DID, e.g. 0000.bayc, for free at KEY3.id. The .bayc DID is bound one-to-one to the BAYC NFT, and there are only 10,000 DIDs available to claim.
According to the KEY3.id, the .bayc DID is the first ABT (Asset Bound Token) tied to a Blue Chip NFT and is only available to BAYC NFT holders and is not transferable. KEY3.id ‘s CEO Kory Pak tweeted that .bayc may usher in a new stage of “Asset as your DID”.
The launch of .bayc immediately generated mass buzz and followers in the BAYC community, including some of Web3’s most famous influencers. Game Space CEO Michael Cameron minted 6669.bayc and changed his Twitter name into “Michael Cameron 6669.bayc”; former Huobi Global CEO 0xLivio minted 2883. bayc, and also changed his Twitter name accordingly.
Michael Cameron said: “.bayc combines the uniqueness of short digit domains and the numeric features of Bored Ape and only BAYC NFT holders can claim it, which can effectively reflect the assets of DID holders. .bayc is expected soon to become the most sought-after DID , and may even drive up the price of BAYC NFT, especially favorable to the ones who possess great numbers. “
Several BAYC NFT holders said that the most valuable aspect of .bayc is the Asset Bound Token feature. It ensures its reliability, follows the NFT and cannot be traded separately, and once the NFT has been transferred or traded, its corresponding DID will also be destroyed.
KEY3.id CEO Kory Pak continued that KEY3.id will soon partner up with dozens of Wallets, DeFi, GameFi, SocialFi, dApps and other projects, including Bitkeep Wallet and KuCoin Wallet to collaborate on the use of .bayc such as replacing the long public address into easy to read and memorable DID that can be linked to your wallet to send and receive funds,transfer tokens or NFTs, use as an ID, social networking, GameFi and other Web3 scenarios.
In addition to .bayc, KEY3.id will soon support the DIDs of 20 other Blue Chip NFT binding domain names such as .punk, .doodle and .mfer etc. According to its official website, a community voting campaign will be opened in early December and the NFT project with the highest number of votes that week will be available to mint for its corresponding domain name.
About KEY3.id
The KEY3.id is a distributed, open, and extensible naming system based on the Ethereum blockchain. .did is the 1st DID launched by KEY3.id, aimed to provide users’ free with decentralized identity in Web3 with the features of Free to claim, Free to renew, Free forever. KEY3.id also supports the DIDs of 20 other Blue Chip NFT binding domain names such as .punk, .doodle and .mfer etc.
Twitter: https://bit.ly/tuiwly
Medium : https://bit.ly/zhongwly
Website: https://KEY3.id
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U.S. Banking Community Launches Proof-of-Concept Digital Money Platform
A group of United States banks, including BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Trust, U.S. Bank, and Wells Fargo announced the launch of a proof-of-concept (PoC) project aimed at developing a digital dollar currency platform dubbed the regulated liability Network (RLN). According to the announcement, the RLN is expected to harness the prowess of distributed ledger technology.
Reportedly, the regulated liability Network (RLN) is expected to run in a test version for the next twelve weeks. As such, regulated United States banks will come together to test digital dollars in a tokenized version.
“The 12-week PoC will test a version of the RLN design that operates exclusively in U.S. dollars where commercial banks issue simulated digital money or “tokens” – representing the deposits of their own customers – and settle through simulated central bank reserves on a shared multi-entity distributed ledger,” the announcement reads.
The banks will be testing how well a digital dollar could help reduce friction in inter-banks payments. Additionally, the United States banks intend to see how well the RLN will function with existing laws set by different agencies.
U.S Banks Build on Blockchain Tech Amid Bearish Sentiments
The group of United States banks has shocked the cryptocurrency industry by building at a time the FTX collapse has shaken confidence. Notably, most market strategists forecast further capitulation in the crypto market. Moreover, Bitcoin price broke a significant support level at $19k following the Alameda and FTX saga.
The RLN has been developed by SETL, Amazon Web Services, and Swift. As for the legal team, the RNL will be backed by Sullivan & Cromwell LLP while Deloitte will be providing advisory services.
After twelve weeks, the RNL results will be analyzed and used for further development in digital money, according to the announcement. Furthermore, the banking group announced that there is no commitment plan to continue with the project after the RNL simulation is completed.
Banks in the United States have significantly invested in the Web3 industry, despite the sustained bear market.
Nonetheless, cash inflows toward the blockchain and crypto markets are expected to decline in the coming months.
Furthermore, the overall trading volume has significantly shrunk in the past few months. Whereby the remaining majority of trading volume has been scooped by decentralized exchanges (DEXes).
Notably, the digital dollar being tested by the group of United States banks may be a confirmation of a possible CBDC backed by the Fed around the corner.
Marathon Digital Is Now The 2nd Largest Bitcoin Holder
Marathon Digital is now the world’s second largest Bitcoin holder among publicly listed companies. On Nov 8 Marathon Digital CEO Fred Thiel claimed during the company’s third-quarter earnings call that the firm currently holds 11,300 Bitcoin which is now worth around $205 million. The first position is still held by Microstrategy Inc., which claims to hold nearly 130,000 total Bitcoin. The third and fourth position is held by Coinbase and Jack Dorsey owned Block Inc.
As per the reports, Marathon Digital added 616 Bitcoin to its portfolio in the quarter and another 615 Bitcoins were added in the month of October.
AllStars Digital Announces AllStars Coin ($ASX) IEO, Lists on BitMart
By listing the AllStars Coin ($ASX) on leading crypto exchange BitMart ahead of its IEO next week, AllStars Digital hopes to bring new sports-based digital asset trade and investment opportunities to millions around the world. Here’s why that matters and what to expect over the weeks and months to come.
AllStars Digital (ASD), the world’s first digital sports trading exchange, announced a new partnership with BitMart, a recognized leader in the cryptocurrency exchange space. BitMart has millions of customers in 180+ countries around the world and supports the trade of over 1,000 different crypto coins and tokens.
ASD has also announced its upcoming Initial Exchange Offering – IEO – in which a new utility token called AllStars Coin ($ASX) will be created. $ASX will be an important part of the ASD ecosystem and will be used for everything from paying trading fees, staking, and investing in digital assets to gaining access to exclusive NFT drops and both virtual as well as real-life events and collectibles. $ASX will also be used in ASD’s fantasy sports leagues, the ASD Metaverse, and ASD-based decentralized applications (dApps).
By listing $ASX on BitMart and providing access to this utility token to new users around the world through the upcoming IEO, ASD hopes to bring the benefits of sports-based digital asset trade and investment to fans of the world’s most popular sports, starting with cricket, football, and basketball, and even e-sports, with more sports, brand engagements, and activities to come.
How the Technology Works
AllStar Digital uses proven quantitative computation and valuation indices in conjunction with blockchain to transparently and accurately place dollar values on the performance of sports athletes. Instead of restricting sports fans and investors to betting only for or against specific players or teams, $ASX will allow ASD to provide a new generation of participants with access to an exciting range of speculation opportunities in markets that never previously existed.
The platform’s mission is to democratize trading on the performance of sports stars via a digital economy based on $ASX, a brand-new, blockchain-based token. ASD’s trading platform will launch in time for the FIFA football World Cup in Qatar in November, and the project already has key partnerships in place with other industry leaders (such as Aurora Chain for ensuring robust network performance, and BitMart for ensuring wide access to the $ASX utility token.
$ASX will also be used for a wide range of other platform services and functionalities. These include paying transaction fees, buying/investing in digital assets, participating in NFT drops, and staking and earning. $ASX will power ASD’s Metaverse as well and will be used in ASD’s fantasy sports leagues.
To facilitate user onboarding, ASD has released engaging product and utility token overviews. Interested parties – from fans and investors to traders and crypto enthusiasts – are invited to learn more about the project, participate in the upcoming IEO, and become early adopters of this groundbreaking new initiative.
You can find more information about AllStars Digital on their website, as well as on Telegram, Twitter and Instagram.
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Bitcoin Miner Stronghold Digital Terminated a Hosting Deal Slashing Debt by 60%
The post Bitcoin Miner Stronghold Digital Terminated a Hosting Deal Slashing Debt by 60% appeared first on Coinpedia Fintech News
Stronghold Digital Mining (SDIG) has terminated a hosting agreement with Northern Data (NB2X:GER) and reduced some of its obligations in its latest attempt to turn around its strained balance sheet.
According to a Friday statement, the termination of Stronghold’s deal with Northern Data would erase any profit-sharing commitments, which it believes would have been $10M to $25M until September 2024.
Stronghold’s problems began earlier this year when it was unable to meet Wall Street’s profits expectations and lowered its own hash rate expectation for 2022. Since then, the firm has faced several hurdles as both the cryptocurrency and equities markets have declined.
China’s CBDC, Digital Yuan Transactions Crossed the $14B Mark
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China’s central bank digital currency (CBDC), Digital Yuan has reached 100.04 billion yuan (~14 Billion) in transactions in its pilot phase. This makes the e-CNY, or digital yuan the most used CBDC globally.
According to a post on the Bank of China’s official WeChat page on October 10, the number of transactions performed in 15 provinces under the CBDC pilot framework had surpassed 360 million by the end of the summer. According to the report, more than 5.6 million merchant establishments currently accept digital yuan as legal money.
The financial regulator revealed its project development plans, which include the launch of cross-border payments between Hong Kong and mainland China.
India To Test “E-Rupee” Digital Currency Soon
The post India To Test “E-Rupee” Digital Currency Soon appeared first on Coinpedia Fintech News
The national cryptocurrency, “E Rupee,” backed by India’s central bank, is soon to be tested in select pilot launches.
According to a report issued by the Reserve Bank of India on Friday, the agency has recommended a staged trial of its version of a CBDC (Central Bank Digital Currency).
In a “concept note,” the central bank of India described its concept for a digital version of the rupee known as the e-rupee. It also outlined why a central bank digital currency would be implemented and how it would be evaluated in stages.
Surveillance a Trust Building Strategy for the Emerging Digital Asset Market
With 2022 having been a year of severe turbulence for the crypto market, it seems like effective crypto marketing is, at present, a bridge too far. Digital asset marketers often find themselves asking, how do I effectively market my crypto business? The answer or answers might be coming in the form of market regulation and surveillance.
According to a new Nasdaq report, regardless of a financially tumultuous 2022, crypto adoption is continuing to expand and grow. This means that regulators have no choice but to develop a broader framework for the emerging digital asset class.
Just like many financial marketplaces, crypto is all too often vulnerable to abuse and manipulation from bad actors, which highlights the need for stronger surveillance and regulation programs. Over time, these programs can create wider adoption and trust among investors since they will be protected from abuse.
With the crypto market along with crypto businesses and platforms expanding, what kind of role is regulation and surveillance playing when it comes to building trust in the crypto sphere? This was the exact topic recently discussed at a recent webinar hosted by both Nasdaq and Regulation Asia.
Different Market, Similar Challenges
Say the experts, trust in the crypto market varies for retail and institutional investors. Not only because plunging prices in the most popular assets like Bitcoin (BTC) and Ethereum (ETH) have crushed investor expectations, but also because the market, taken as a whole, is actually moving away from the hyper-volatility it experienced in the early days.
However, the Federal Trade Commission (FTC) reports that crypto scam losses in 2021 were calculated to be 60 times higher than that of 2018. It’s said that between January 2021 and July 2022, traders and investors were “scammed out of more than US$1 billion.” Maybe those assets are unrecoverable once they’re gone, but there are ways to block further threats at their origin.
The crypto market is somewhat misunderstood by some investors; the kind of fraud associated with it is said to be anything but unique or new. The FTC goes on to state that just about half of crypto investment scams began with a post, a message, or an ad on one of the many social media platforms. They also come from emails too.
According to the Head of Sales and Business Development for Asia-Pacific at Nasdaq Market Surveillance, David Kwan, as a surveilling expert, he’s witnessed cases of money laundering, wash trading, spoofing, phishing, and more.
He asks, “…why can’t the industry apply the same monitoring and the same protection in crypto as traditional markets?” In Kwan’s opinion, protecting the crypto marketplace is the only way crypto businesses, investments, and the industry as a whole will continue to grow.
Regulatory Leaders
Crypto professionals located in Singapore and Hong Kong are said to be taking the lead on engineering the regulatory frameworks that will inevitably lead to constructing resilience and trust in the crypto industry.
Hong Kong’s government, in particular, has crafted amendments to its Counter-Terrorist Financing Ordinance (AMLO) and its Anti-Money Laundering programs that will now include new licensing protocols for VASPs. This means that any business that intends to operate a VASP will require a license from the Securities & Futures Commission (SFC).
In Hong Kong, the title “virtual asset” is applied to BTC, ETH, and other top-tier altcoins, plus stablecoins like Tether. Virtual assets also include a specific set of governance tokens that can be morphed into non-fungible tokens (NFTs) in the near future.
Says Kwan, the existing financial institution guidelines, which include fund management code of conduct, internal control guidelines, plus the regulation of auto trading services, will be applied to virtual asset license holders by March of 2023. This will be a boon to crypto marketing businesses that desperately need their clients to develop trust in the digital assets they wish to invest in.
Expanding Crypto Regulation
Meanwhile, in Singapore, crypto professionals are creating new legislation to prop up their emerging digital asset market environment. The new laws are said to be somewhat covered by existing legislation called the Payment Services Act which came into existence back in 2020.
But the newly approved Financial Services & Markets Bill is said to strengthen regulations and close any gaps that exist in the Payment Services Act.
Again, more good, trust-building news for the crypto industry.
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Australia To Issue A Digital Form Of The Australian Dollar
The post Australia To Issue A Digital Form Of The Australian Dollar appeared first on Coinpedia Fintech News
Australia is now among the countries making efforts to issue a digital form of national currency. The central banking institution of Australia, the Reserve Bank, has collaborated with the Digital Finance Cooperative Research Centre (DFCRC) to put forward a technical White Paper on its future CBDC. DFCRC is assisting the Reserve Bank on a research project that assesses all technological, legal, and regulatory considerations related to the CBDC.
As one of their steps, the Reserve Bank has asked industry participants to give their opinion on how the digital dollar would interact with the national monetary network. All along, ordinary participants also have the chance to evaluate the product and test its value proposition. The Bank of International Settlement’s Innovation Hub also formed a part of the project.
FTX to Buy Voyager Digital Assets Valued at $1.4 billion
In a press release issued late Monday, Voyager Digital announced that exchange FTX had won the bidding war to purchase the assets of the bankrupt company.
Numerous media sources, FTX, Binance, and CrossTower were vying to buy the ailing crypto lender Voyager Digital’s assets before it filed for bankruptcy. Each of the three exchanges has put out its own acquisition terms and conditions. Sam Bankman-FTX Fried’s won the bid, though.
Following the news, the price of Voyager Token (VGX), which was trading at about 76 cents as of 04:17 UTC, increased by 3.76%.
Voyager Digital, a cryptocurrency lender, declared bankruptcy in July. Industry watchers had been closely scrutinizing Voyager’s business procedures, particularly the way the Canadian-listed company claimed in marketing materials that the deposits of investors were insured by the Federal Deposit Insurance Corporation (FDIC).
According to a tweet by Voyager there announced FTX was the best bidder
According to Voyager, FTX’s bid consisted of an incremental value of $111 million and the fair market value of its cryptocurrency assets at a future date, which is anticipated to be $1.31 billion at the current market price.
The bankruptcy of Voyager
The sector has been hit hard by snowballing problems ever since the collapse of the stablecoin TerraUSD. The cryptocurrency lender restricted customer withdrawals to $10,000 and a maximum of 20 transactions per day in June as a result of market conditions. Customers could access their money after “a reconciliation and fraud prevention process is finished,” according to the company.
During the down market, FTX has been snatching up mergers and acquisitions. Throughout the bear market, numerous businesses have suffered. FTX and Alameda Research invested in companies that were about to file for bankruptcy this year and issued millions of dollars to help the companies.
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Chains.com integrates Fireblocks technology to fortify users’ digital assets against cyber threats
Chains.com taps Fireblocks’ battle-tested security solutions to provide protection against cyberattacks while maintaining regulatory compliance
Tel Aviv, September 2022 – Chains.com, a developer of a stack of interconnected cryptocurrency and NFT products for retail users and SMBs, incorporates a suite of award-winning digital-asset custody, transfer, and settlement technology from Fireblocks to implement the highest level of security protocols and protect customers’ digital assets via its secure wallet infrastructure as well as its own treasury and funds. In addition, Fireblocks will support Chains.com’s native token, $CHA, making it available globally to institutional users through the Fireblocks Network.
While digital asset exchanges are still susceptible to hackers and scammers, many traditional institutions lack the proper infrastructure to manage custody of digital assets, leaving them vulnerable to cyberattacks.
Fireblocks’s multi-layer technology that combines MPC cryptography with hardware insolation prevents cyber-attacks, internal collusion, and human error. As part of the integration, Fireblocks will provide institutional wallet infrastructure for Chains.com users to ensure that assets are protected from external threat vectors.
Chains.com delivers a roster of interconnected, user-friendly products on a single multi-chain platform. The project already boasts 500,000 registered users in over 100 countries and is designed to allow users to participate in blockchain-based products (CeFi, NFT, and DeFi) without having to understand the underlying technologies. With over 60 thousand users applying to its $CHA token whitelist during the presale phase, token holders benefit from increased referral rewards, fee rebates, discounts on token sales, as well as exclusive staking-based access to features and events taking place on the platform.
“At Chains, we constantly seek to enhance our users’ experience while building a world-class stack of in-house and partner solutions,” says Anderson Mccutcheon, Founder and CEO of Chains.com. “As crypto-related cyber attacks continue to threaten the safety of users’ assets, Fireblocks delivers the most secure and reliable treasury and user account management solution on the market today.”
“Like Chains, Fireblocks is committed to providing a simple and foolproof experience for users looking to interact with crypto and Web3,” says Jonathan Dakin, Head of EMEA at Fireblocks. “We are glad to have Chains be a part of the Fireblocks Network and support Chains in its mission to bridge the gap between CeFi and DeFi. We are thrilled to work alongside the highly-experienced team behind Chains and offer their users peace of mind through top-notch custody technology.”
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Who Will Acquire Voyager Digital Assets – Binance Or FTX Exchange?
The post Who Will Acquire Voyager Digital Assets – Binance Or FTX Exchange? appeared first on Coinpedia Fintech News
The auction of Voyager Digital assets began earlier this month on September 13 after Voyager filed for Chapter 11 bankruptcy in July 2022, after facing major liquidity issues amid the crypto market crash. With FTX and Binance leading the auction, many players like CrossTower and Wave Financial also participated.
The current latest report reveals that the two topmost exchanges Binance and FTX are in the race to acquire the assets of bankrupt crypto lender Voyager Digital. People known to the matter told WSJ that FTX and Binance are in a tight race to hold some Voyager assets. Notably, Binance’s current bid is $50 million higher than that of FTX. The winning bid will be disclosed on September 29 or even earlier.