Ripple Skips the Pond for Greener Shores
CoinEx's Hack Nightmare, Coinbase's Lightning Integration, and Binance.US' Staff Cuts
Welcome to Coinfeeds Daily Digest, your guide to the crypto world! Today's edition covers security breaches to shifts in market focus and regulatory hurdles. CoinEx faces a nightmarish hack, shaking investor confidence, while Coinbase is met with a reality check as retail interest appears to be dwindling. Binance.US is under the microscope, shedding a significant portion of its workforce amid declining business. Let's dive in!
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OneCoin Co-Founder Sentenced to 20 Years in Prison
Karl Greenwood, co-founder of the OneCoin pyramid scheme, has been sentenced to 20 years in prison and ordered to forfeit $300 million. OneCoin, which claimed to be a cryptocurrency, was actually a pyramid scheme that defrauded over $4 billion from millions of victims. Greenwood was the leader of the MLM network that marketed and sold the fraudulent cryptocurrency. He pleaded guilty to charges of wire fraud and money laundering. The co-founder, Ruja Ignatova, remains at large.
Ripple Expanding Services Outside the U.S
Ripple CEO Brad Garlinghouse has stated that the United States is the worst place to launch a cryptocurrency startup due to its regulatory environment. He suggests that the US should learn from countries like Singapore, the UK, the UAE, and Switzerland in enacting policies that encourage crypto innovation while protecting consumers. Despite the US being a big market for Ripple, Garlinghouse states that the company is expanding services to more progressive countries.
Astar Network Launches Ethereum Layer 2 Solution
Astar Network is collaborating with Polygon Labs to launch Astar zkEVM, an Ethereum Layer 2 scaling solution. The partnership aims to promote blockchain adoption in Japan, particularly in the entertainment and gaming sectors. Astar zkEVM will utilize the Polygon CDK to build its Layer 2 solution, which will provide an Ethereum-compatible scalability solution for applications.
Telegram Integrates TON-Based Crypto Wallet
Telegram has endorsed the TON network as its blockchain network of choice for Web3 infrastructure, causing the TON token to surge by 7%. The TON blockchain project was initially abandoned in 2020 due to legal action from the SEC, but was later picked up by the TON Foundation. Despite the project's separation from Telegram, the messaging platform remained popular among crypto enthusiasts. Noteworthy developments, such as a TON-built Web3 wallet, were made available on Telegram.
Franklin Templeton Files for Bitcoin Spot ETF
Franklin Templeton has filed with the Securities and Exchange Commission (SEC) for a spot bitcoin ETF. The proposed ETF, called the Franklin Bitcoin ETF, would primarily hold bitcoin in custody with Coinbase Custody Trust Company. If approved, the ETF's shares would be listed and traded on the Cboe BZX Exchange. The SEC has yet to approve a spot crypto ETF, and it recently delayed decisions on existing proposals.
CoinEx Exchange Hacked
CoinEx, a cryptocurrency exchange, has confirmed that it was hacked and millions of dollars worth of cryptocurrency was stolen. The exchange detected anomalous withdrawals from several wallets and an investigation revealed unauthorized transactions involving ETH, TRON, and Polygon coins. The total amount of losses is still being determined, but blockchain data suggests that around $31 million worth of coins was stolen.
Sam Bankman-Fried's Request for Temporary Release Denied
FTX founder Sam Bankman-Fried's request for temporary release from jail ahead of his trial has been denied by a U.S. judge. The judge ruled that Bankman-Fried was responsible for his own situation and refuted his multiple motions for pretrial release. Bankman-Fried's defense team argued that he needed access to online databases and the ability to work on a shared document, but the judge was unconvinced. The trial is currently set to begin on October 3.
Coinbase to Integrate Bitcoin Lightning Network
Coinbase CEO Brian Armstrong has confirmed that the cryptocurrency exchange will integrate Bitcoin's lightning network. This move will enable cheaper and faster transactions for Coinbase's over 100 million users. The implementation process will take time, but Coinbase joins other top-tier exchanges like Binance, Kraken, and Bitfinex in supporting the lightning network.
Binance.US CEO Leaves, Crypto Exchange Cuts 1/3 of Workforce
Binance.US, the American offshoot of crypto exchange Binance, has experienced a significant decline in business and has laid off one third of its staff. The president of Binance.US, Brian Shroder, has also left the company. The firm's monthly volumes have dropped from $10.58 billion in January to $70 million this month. Binance, the parent company, has also faced executive departures and layoffs.
Coinbase to Face 'Reality Check' as Retail FOMO Is Fading
Mizuho Securities has warned that Coinbase may face a 'reality check' as retail interest in Bitcoin appears to be fading. The research report highlights a divergence between the price of Bitcoin and Coinbase's trading volumes, indicating potential fatigue among retail customers. In previous cycles, fear-of-missing-out (FOMO) would drive investors to trade Bitcoin when prices rose, but this trend seems to be diminishing. Mizuho warns that this could be problematic for Coinbase, as it heavily relies on retail trades for transaction revenue.
Bullish Among Bidders for Bankrupt FTX
Crypto exchange Bullish and Tribe Capital are among the bidders interested in acquiring the defunct trading platform FTX, which filed for bankruptcy protection in November. Bullish aims to tap into FTX’s customer base, while the estate overseeing the failed crypto exchange’s assets has set a deadline for new bids by Sept. 24.
Vitalik Wants a Better Crypto Mixer
Vitalik Buterin and his colleagues have proposed a solution to the privacy issues in blockchain technology. They have developed a theoretical paper that combines zero-knowledge proofs and "Privacy Pools" to create a unique cryptocurrency mixer. This mixer allows users to hide their blockchain history while also dissociating from criminals or bad actors. However, there is controversy surrounding the idea of picking and choosing who to interact with in a smart contract. The researchers are still working on coding a minimum viable product and determining its legality.
As always, stay tuned for more updates in crypto!