Author | Wu Talks Blockchain
Top 10 News of the Week
1. Cleveland Fed President: May Need to Raise Interest Rates Again This Year
On October 3, Cleveland Fed President Loretta Mester stated in a speech that although progress has been made, the inflation rate is still too high and the risks of inflation forecasts still tend to be upward; however, the medium-term inflation expectations remain reasonably stable within the range consistent with the Fed’s 2% inflation target; I suspect that we may need to raise interest rates again this year and then maintain them for a period of time; there is considerable uncertainty in the outlook, especially whether the good progress in the inflation rate over the past three months can be sustained, and whether the labor market conditions remain healthy while slowing down.
2. Judge Rejects SEC’s Motion for Intermediate Appeal in Ripple Case
On October 4, the Southern District of New York Court stated that the SEC’s motion for intermediate appeal in the Ripple case has been rejected, and the SEC’s request for a stay has been denied as it has no practical significance; the trial in this case is scheduled to begin at 9:00 a.m. on April 23, 2024; the court still believes that objective and reasonable programmatic buyers do not acquire expected profits through purchasing Ripple; the SEC emphasized that the Terraform ruling is not in conflict with this case, as Terraform sold tokens to retail investors and claimed to obtain additional profits, but Ripple’s promotional materials claiming to make money were only provided to institutional buyers.
3. Former BlackRock Executive: SEC May Approve All Spot Bitcoin ETFs Simultaneously
On October 6, former BlackRock executive Martin Bednall stated at the CCData Digital Asset Summit that the SEC may approve all spot Bitcoin ETF applications simultaneously. Steven Schoenfeld, CEO of MarketVector Indexes, a subsidiary of VanEck, also expressed agreement and stated that approvals may be completed within the next 3 to 6 months because the SEC has not completely rejected ETF applications recently, but has been seeking opinions. Schoenfeld added that the SEC recently lost the Grayscale case, indicating that it may have to allow the conversion of Grayscale Bitcoin Trust funds into spot Bitcoin ETFs.
4. UBS Launches First Tokenized Currency Market Fund on Ethereum
On October 2, UBS Asset Management, one of the world’s largest fund companies, launched a pilot of the first tokenized currency market fund “Site” on Ethereum. The fund is part of the “Project Ubin” led by the Monetary Authority of Singapore (MAS). This pilot allows UBS to test various fund activities on the blockchain, including subscription and redemption.
5. Bitwise Announces Launch of AETH and BTOP Ethereum Futures ETFs
On October 3, Bitwise Asset Management officially announced the launch of two Ethereum futures ETFs: Bitwise Ethereum Strategy ETF (stock code: AETH) and Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF (stock code: BTOP), “Investors can now gain exposure to Ethereum futures through widely popular and regulated ETF formats for the first time”. However, the trading volume on the first day of listing was very low.
ProShares, VanEck, and Bitwise jointly launched six Ethereum futures ETFs; these six funds had a total trading volume of $1.92 million on the first day of trading. VanEck had the lowest expense ratio at 0.66%, while the two Bitwise funds had expense ratios of 0.85%, and the ProShares ETF had an expense ratio of 0.95%.
6. Brazilian Government Launches Blockchain-based Digital ID
On October 1st, the Brazilian government launched a blockchain-based digital ID. Rio de Janeiro, Goiás, and Paraná will be the first states to issue identification documents using a private blockchain developed by Brazil’s National Data Processing Service (Serpro). A decree issued on September 25th stated that by November 6th, identity documents should be able to be issued nationwide using blockchain technology, and over 214 million Brazilians will soon use blockchain technology for digital identity recognition.
7. El Salvador Establishes First Bitcoin Mining Pool, Lava Pool
On October 5th, Volcano Energy announced a new agreement with Luxor Technologies to establish El Salvador’s first Bitcoin mining pool, Lava Pool. The goal of this mining pool is to decentralize Bitcoin mining and leverage El Salvador’s “regulatory clarity.” Volcano Energy is building Bitcoin mining facilities using wind and solar energy, generating 241 megawatts of renewable energy capacity, some of which will be used for mining Bitcoin and providing cheap electricity to local communities.
Volcano Energy received a $1 billion investment commitment in June, led by Tether Energy, and has deployed $250 million for the development of renewable energy and Bitcoin mining operations in the country. 23% of its net income is contributed to the Salvadoran government as part of a public-private partnership. Volcano Energy is co-led by 23-year-old Bitcoin advocate Josue Lopez from El Salvador and Max Keiser, who serves as chairman and advisor to the President of El Salvador.
8. Multiple MPI Licenses Issued in Singapore
a. Coinbase Singapore Granted Major Payment Institution License by the Monetary Authority of Singapore
On October 2nd, Coinbase announced that Coinbase Singapore has been granted a Major Payment Institution (MPI) license by the Monetary Authority of Singapore. It has developed and released products tailored for Singapore and will carry out training and recruitment plans at its Singapore tech center. Previously, Coinbase achieved VASP registration in Spain, Italy, Ireland, and the Netherlands.
b. Ripple Subsidiary Receives Major Payment Institution License from the Monetary Authority of Singapore
On October 4th, Ripple’s Singapore subsidiary, Ripple Markets ALianGuaiC Pte Ltd, received an MPI license from the Monetary Authority of Singapore, allowing the company to provide regulated digital asset token services in the country.
c. Sygnum Singapore Receives MPIL from MAS Singapore
On October 3rd, Sygnum Singapore, a subsidiary of Swiss cryptocurrency bank Sygnum, received the Major Payment Institution License (MPIL) from the Monetary Authority of Singapore (MAS). This license allows Sygnum Singapore to provide cryptocurrency brokerage services to qualified investors and institutions in Singapore. In addition, the company plans to expand its regulated products to the Asia-Pacific (APAC) market, including Hong Kong.
d. GSR Markets Receives Provisional Approval for MPIL from MAS Singapore
On October 2nd, cryptocurrency market maker GSR announced that its Singapore subsidiary, GSR Markets, has received provisional approval for the Major Payment Institution License (MPIL) from the Monetary Authority of Singapore (MAS). The company is now working towards obtaining the official license. The Chief Operating Officer stated that MAS has provided a clear framework for digital asset utilities, and GSR will continue to play its role as a liquidity provider in the ecosystem.
9. Weekly Updates from SBF
a. Michael Lewis Claims SBF Considered Paying $5 Billion to Prevent Trump from Running for President
On October 2nd, Michael Lewis, the author of “The Big Short,” claimed that SBF, the founder of failed cryptocurrency exchange FTX, considered paying $5 billion to Donald Trump to prevent him from running for President. SBF is currently investigating whether such a payment would be legal. Prior to the collapse of FTX, SBF was actively involved in political donations.
b. Michael Lewis’ New Book “Going Infinite” Reveals Details of SBF’s Stock Buyback from CZ
On October 4th, the book mentioned that to avoid increasing regulatory scrutiny, SBF proactively proposed to buy back the FTX shares that Zhao Changpeng acquired in late 2019 for $80 million. Zhao Changpeng demanded $2.2 billion, and SBF agreed to pay. However, just as the formal agreement was about to be signed, Zhao Changpeng suddenly requested an additional $75 million. SBF agreed to this additional cost and ultimately completed the stock buyback. In addition, SBF was concerned that its employees would become wealthy due to holding a large amount of SRM tokens after a significant price increase. As a result, SBF modified the release rules for SRM tokens and locked the employees’ SRM tokens for a period of seven years.
c. U.S. Prosecutor: SBF’s Wealth Built on Lies
On October 5th, according to Bloomberg, Assistant U.S. Attorney Nathan Rehn accused SBF of “lying to the world” in building his cryptocurrency empire FTX, with only his friends and girlfriend knowing the truth. Prior to the company’s bankruptcy a year ago, SBF used FTX’s investors’ deposits for his personal bank account, and only SBF’s inner circle knew that he was using customer funds to finance his lifestyle. “He has wealth, power, influence, but it’s all built on lies. He is perpetrating a massive fraud, taking billions of dollars from thousands of victims,” said Rehn. SBF’s lawyer stated that SBF works extremely hard, does not drink or attend parties, and went to MIT. He has no intention of defrauding anyone, and the rise and fall of FTX reflects the changes in the entire cryptocurrency industry.
According to Cointelegraph, the defense argues that SBF is just a young entrepreneur who made “unsuccessful” business decisions. The defense denies the existence of secret transactions or the theft of customer funds between Alameda and FTX. The defense further claims that every transaction is transparent and legal. The defense team argues that SBF believes that the loans provided by FTX to Alameda were legitimate business transactions with market makers.
d. The US Department of Justice is investigating two luxury airplanes worth about $28 million under SBF’s name
On October 6th, according to Bloomberg, the US Department of Justice is investigating two luxury airplanes under SBF’s name, Bombardier Global 5000 BD700-1A11 and Embraer Legacy EMB-135BJ. A Bahamian charter airline claimed that it bought these planes last year from SBF based on verbal agreements for $28.4 million and financed by FTX. Prosecutors claim that these two planes are the proceeds of the billions of dollars fraud case that SBF is currently being tried for in the Manhattan Federal Court.
10. Ledger and Chainalysis lay off employees
a. Cryptocurrency wallet hardware manufacturer Ledger announces a 12% layoff
On October 6th, Ledger’s CEO LianGuaiscal Gauthier announced that the company will lay off 12% of its employees. Gauthier stated that macroeconomic headwinds have limited its revenue-generating capacity. In response to the current market conditions and business reality, it is necessary to reduce the roles in the global business. According to LinkedIn data, the company has 734 employees, and a 12% layoff would mean cutting about 88 positions. Previously, Ledger announced that it had raised most of the $109 million financing, with a valuation of about $1.4 billion.
b. Chainalysis plans to lay off about 150 employees and focus on government business
On October 3rd, according to Forbes, blockchain analysis company Chainalysis CEO Michael Gronager notified employees by email that the company plans to lay off about 150 employees, slightly higher than 15% of its total staff of 900. The company’s valuation in 2022 is $8.6 billion. Chainalysis has reduced its investment in the private sector and shifted its focus to the government sector, which accounts for 70% of the company’s revenue.
Key Financing Events
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Privacy blockchain Fairblock, based on Cosmos SDK, completes a $2.5 million Pre-Seed round of financing
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Web3 social protocol Phaver completes a $7 million financing
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Cicada LianGuairtners completes a $9.7 million Pre-Seed round of financing
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Convergence RFQ, a trading platform based on Solana, raises $2.5 million in a seed round of financing
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Blackbird announces the completion of a $24 million Series A financing led by a16z
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Blockchain product development company Trinetix completes a $10 million strategic financing
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DeFi derivative lending platform LianGuairaFinance completes a $5 million financing
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Liquidity staking platform Accumulated Finance V2 completes a private placement financing
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NexGami completes a $2 million seed round of financing, with participation from Polygon Ventures and others
For more industry financing events, you can refer to crypto-fundraising.info.
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