MetaMask Enables Fiat Cash Outs, Solana User Base Hits Two-Year Low
MetaMask Enables Fiat Cash Outs, Solana User Base Hits Two-Year Low
Grayscale Fights for ETF Conversion, Circle Deploys USDC on New Networks, and Coinbase Enters Institutional Lending
Welcome to today's edition of the Coinfeeds Daily Digest, where we bring you the most pressing stories shaping the crypto landscape.
In today's issue , our spotlight is on MetaMask's new 'cash out' feature that adds a layer of financial flexibility for its users, and Solana's declining user base, a concerning trend for one of the industry's leading networks.
Beyond these lead stories, we'll also delve into Grayscale's bold challenge to the SEC over a Bitcoin ETF, Circle's latest expansion of its USDC stablecoin, and Coinbase's new venture into institutional lending—each with its own potential to reshape the market dynamics. Click here to explore today's trending news on coinfeeds.io.
Market Update
News
Grayscale's Bitcoin ETF Conversion
Grayscale Investments has informed the U.S. Securities and Exchange Commission (SEC) that there are "no grounds" to reject the conversion of its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). This follows a court order last week for the SEC to review its previous rejection of the conversion. Grayscale argues that its proposed product is not significantly different from bitcoin futures exchange-traded products (ETPs) that are already traded in the U.S. Analysts from crypto research firm K33 believe that the crypto market is underestimating the potential impact of a spot Bitcoin exchange-traded fund (ETF) approval on Bitcoin prices. They argue that an approval could attract significant inflows and increase buying pressure for Bitcoin, while a rejection would have negligible impact. The analysts also predict a 75% chance of approval within the year.
MetaMask's New Cash Out Function
MetaMask, a popular crypto wallet, has introduced a 'cash out' function that allows users to convert their cryptocurrency into fiat money. The funds can be sent to the user's bank account or added to their PayPal balance. The feature is currently available in the US, UK, and parts of Europe, initially supporting ETH on Ethereum mainnet. The company plans to expand to native gas tokens on Layer 2 networks soon. Users with crypto wallets connected to MetaMask's Portfolio decentralized application can now cash out ETH and send fiat to their bank accounts in the US, UK, and parts of Europe. The initial rollout is limited to ETH, but MetaMask plans to expand to other tokens in the future.
Solana's Declining User Base and Visa's Adoption
The number of daily active users on the Solana blockchain has dropped to its lowest level in over two years, with around 204,000 active addresses as of August 31. This decline has been attributed to the bankruptcy of crypto exchange FTX last November and the US Securities and Exchange Commission's classification of Solana's native SOL token as a security. The price of SOL has also fallen, currently standing at around $20, a 7% decrease over the past week. Despite this, Visa is expanding its stablecoin settlement capabilities with Circle’s USDC stablecoin to the Solana blockchain to boost the speed of cross-border payment transactions. This makes Visa one of the first major financial institutions to use the Solana network at scale for settlements.
Circle's USDC Expansion
Circle has deployed its stablecoin, USDC, on Layer 2 networks OP Mainnet and Base, expanding the stablecoin's availability. Businesses can now use on/off-ramps for USDC directly on these networks by connecting their accounts with Circle, bypassing the need to go through the Ethereum network and potentially higher fees. OP Mainnet and Base are Layer 2 networks designed to scale Ethereum applications, hosting over $1 billion in total value locked. The supply of native USDC on OP Mainnet is just under 25 million, while on Base it is 19.8 million. Circle's USD Coin (USDC) has officially launched on both Base and Optimism networks, enabling Circle account holders to transfer USDC stablecoin from their accounts to these networks.
Coinbase's New Crypto Lending Service
Coinbase has launched a new crypto lending service for institutional clients in the US, filling the gap left by firms like Genesis and BlockFi. The service was revealed in a US Securities and Exchange Commission filing on September 1, showing $57 million had already been raised. Clients can lend Coinbase money, predominantly crypto assets, while providing more collateral than the loan's worth. The new service is different from the Lend program that Coinbase cancelled in 2021, which was aimed at retail customers. This latest service is geared towards institutions, implying less regulation. Coinbase, the US-based cryptocurrency exchange, has increased the maximum amount of bonds it is willing to purchase through a buyback program to $180 million, up from $150 million.
Sam Bankman-Fried's Legal Troubles
The US Attorney's Office has affirmed the denial of bail to former FTX CEO Sam Bankman-Fried (SBF), stating that he could attempt witness tampering and that no release conditions would assure the safety of the witnesses. Prosecutors called SBF's appeal against the bail revocation "meritless". They argued that SBF had twice attempted witness tampering, violating court orders. The first instance was in January when SBF contacted a potential trial witness, and the second was in July when he leaked private journal messages of a former associate to potentially influence the jury. Sam Bankman-Fried, the founder of the collapsed FTX exchange, now has access to a laptop with a new battery and improved internet connection, according to the U.S. Department of Justice (DOJ).
Global Crypto Framework Discussions
Under India's G20 presidency, discussions are underway to establish a global framework for cryptocurrencies, according to India’s finance minister, Nirmala Sitharaman. Indian Prime Minister Narendra Modi has called for global collaboration on crypto regulations among G20 member states. Sitharaman confirmed that G20 members are working towards this vision and highlighted the need for global cooperation to build a responsible financial ecosystem for regulating cryptocurrencies worldwide. The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have submitted their synthesis papers on cryptocurrency.
MetaMask's Expansion to Other Tokens
MetaMask, a popular Ethereum wallet and browser extension, has introduced a feature allowing users to cash out their digital assets for fiat currency and send it to a bank account or PayPal. The feature is currently available in the U.S., U.K., and parts of Europe, with plans to expand to more regions. The new feature aims to make Web3 more accessible by enabling faster fiat conversion with fewer intermediaries. This follows MetaMask's recent launch of an optimized Apple Pay option and a learning simulation platform. Decentralized exchange (DEX) platform dYdX plans to launch a decentralized order book exchange as it migrates from the Ethereum network to the Cosmos interchain network.
North Korean Hackers Stealing Crypto
North Korea-linked hackers have reportedly stolen $200 million worth of cryptocurrency from January to August 18, 2023, accounting for over 20% of all stolen crypto this year. The stolen assets are believed to be funding the country's nuclear weapons programs. The country is under several U.N. sanctions aimed at limiting its access to funding for its nuclear activities. The FBI has also claimed that North Korean hackers were behind a $100 million crypto heist in 2022. The hackers exploit vulnerabilities in the crypto ecosystem through phishing, supply chain attacks, and infrastructure hacks.
Justin Bieber's Song Turned into NFT
Justin Bieber's hit song "Company" will be turned into a non-fungible token (NFT) by music tech platform anotherblock and co-producer Andreas Schuller (Axident). Only 2,000 NFTs will be available, allowing fans to invest in a stake of the song's royalties. While Axident will retain the rights, NFT owners will share 1% of the song's streaming royalties. The track has over 500 million streams to date. Anotherblock has previously worked with major music industry names like The Weeknd, Rihanna, and Martin Garrix.
Connext Airdrop Exploited
Connext Network's token airdrop was exploited by a wallet that used a sybil attack to claim more than 200 tokens. The wallet, created just hours before the airdrop, was able to filter the claims through multiple wallets, despite the airdrop being restricted to one claim per wallet. The tokens were then quickly sold for profit, with the wallet converting the NEXT tokens into tether and ether, making around $38,000 shortly after the airdrop went live. The attack also took the airdrop user interface offline.
Coinbase's Ethereum Layer-2 Network Outage
Coinbase's Ethereum layer-2 network, Base, experienced its first major outage since its launch on August 9. The outage lasted for approximately 45 minutes on September 5, during which no new blocks were produced on the Base chain. The issue was identified as a delay in block production due to a part of the internal infrastructure requiring a refresh. A fix has been implemented and a "widespread recovery" of block production has been observed. The team continues to monitor the chain for further issues.
As always, stay tuned for more updates in crypto!