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- Bitcoin, Ethereum, Cosmos and more Week 32 2024
Bitcoin, Ethereum, Cosmos and more Week 32 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
Russia Legalizes Cryptocurrency Mining
Metaplanet's $70M Bitcoin Investment Plan
Nasdaq Seeks SEC Approval for BlackRock ETH Options
Vitalik Buterin Moves $8M Ether—Possible Donation?
Kujira Partners with THORChain
Injective Burns $344,478 of $INJ in Record Auction
SEC Targets Crypto VC Firms in Ongoing Investigation
"Dark Skippy" Bitcoin Wallet Vulnerability
and much more!
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Bitcoin Highlights of the Week
Russian President Vladimir Putin has signed a law legalizing cryptocurrency mining in Russia, defining digital currency mining, mining pools, and mining infrastructure operators. The law allows Russian legal entities and registered individual entrepreneurs to engage in mining, while individual miners can participate if they stay within government-set energy limits.
It also permits trading foreign digital financial assets on Russian blockchain platforms, though the Bank of Russia can restrict certain assets to protect financial stability. Putin emphasized the importance of this legal framework for leveraging digital currencies in Russia's economic development. The law takes effect ten days after publication.
Mox, a virtual bank under Standard Chartered, has launched Bitcoin and crypto ETF trading, becoming the first virtual bank in Hong Kong to offer these products. The offerings include spot Bitcoin ETFs in Hong Kong and derivative Bitcoin ETFs in the US, with competitive fees due to Mox's lean infrastructure.
The move aligns with rising retail demand, as a recent survey revealed significant interest in Bitcoin among Hong Kong residents. Mox’s CEO, Barbaros Uygun, stated that the launch empowers customers to access emerging asset classes, potentially setting a new standard for virtual banks in the region.
Japanese firm Metaplanet plans to raise $70 million through a stock rights offering, with most funds allocated to Bitcoin. Inspired by MicroStrategy's strategy, Metaplanet seeks to protect against the yen's volatility and Japan's high debt by increasing its Bitcoin holdings. This move also includes a shift in its struggling hotel business to cater to Bitcoin enthusiasts.
Metaplanet's bold investment positions it as a leading Bitcoin holder in Japan, potentially setting a trend among other Japanese firms. The market responded positively, with the company's stock rising 12% after the announcement, signaling confidence in this strategic financial shift.
The USABTC policy group has proposed creating a Bitcoin tax-free Digital Economic Zone (DEZ) in the United States to boost the digital economy while maintaining the dollar's dominance. The DEZ would allow Bitcoin transactions without capital gains taxes but impose a tax on converting Bitcoin back to traditional currency.
This initiative aims to attract investors and stimulate economic growth within a regulated environment. The proposal includes a phased implementation plan, starting with a presidential directive and collaboration with the IRS to establish a legal framework. If successful, the DEZ could position the US as a leader in the global digital economy by 2026.
Michael Saylor, MicroStrategy's executive chairman, disclosed in a Bloomberg interview that he personally owns 17,732 Bitcoin, worth around $1 billion. Saylor reiterated his strong belief in Bitcoin as a premier investment, stating he hasn't sold any and continues to accumulate more, viewing it as a top capital asset for individuals, institutions, and even nations.
Saylor also highlighted shifting political attitudes towards Bitcoin, referencing U.S. Senator Cynthia Lummis's proposal for a Strategic Bitcoin Reserve and former President Trump's advice to "never sell your Bitcoin." He emphasized Bitcoin's value as a long-term investment rather than a currency for everyday purchases.
Ethereum Highlights of the Week
Nasdaq has proposed to the SEC the approval of options trading for BlackRock's iShares Ethereum Trust, which will exclusively hold Ethereum and cash assets. The trust will avoid Ethereum staking or validation, maintaining its role as a purely passive investment vehicle. This initiative aims to expand investment opportunities by integrating Ethereum into traditional financial markets.
The proposal seeks to offer investors a cost-effective method to gain exposure to Ethereum through public securities. If approved, the options will adhere to standard ETF trading regulations, providing flexibility for hedging and speculative strategies.
Vitalik Buterin, co-founder of Ethereum, has recently transferred 3,000 Ether, worth about $8 million, to a new multisignature wallet. This action has sparked speculation that Buterin may be planning a major charitable donation, following his past philanthropic efforts.
Previously, Buterin made headlines for donating over $1 billion in Shiba Inu tokens to an Indian COVID relief fund and $441 million in Akita coins to Gitcoin. This latest transfer aligns with his history of significant crypto donations and may signal another large-scale contribution to a charitable cause.
The NYSE American has submitted a proposal to the SEC to list and trade options on three Ether ETFs managed by Grayscale and Bitwise. This includes the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini.
The proposal aims to enhance investment options and provide a cost-effective means for investors to gain exposure to Ether, along with a mechanism for hedging investment positions. This filing follows a similar request by Nasdaq for options on the BlackRock iShares Ethereum Trust. Both exchanges are awaiting regulatory approval, a process that has seen delays for Bitcoin ETF options.
The SEC has extended its review period for the Hashdex Nasdaq Crypto Index US ETF, a proposed fund that aims to track both Bitcoin and Ethereum. Originally set for a 45-day review, the SEC's new deadline for a decision is September 30.
This delay comes as the SEC continues to evaluate the implications of allowing an ETF that combines the two leading cryptocurrencies. Nasdaq filed the proposal in June, seeking approval to list and trade this dual-asset ETF. The postponement highlights the ongoing regulatory scrutiny and anticipation surrounding new cryptocurrency investment products.
BlackRock’s iShares Ethereum Trust (ETHA) has achieved nearly $900 million in total inflows just 11 days post-launch. On August 6, the ETF attracted $109.9 million, marking it as one of the top six performing ETFs of 2024. Despite a significant market downturn on August 5, which saw Ether’s price drop by 18%, ETHA has remained resilient.
This strong inflow performance reflects high investor interest in Ethereum, contributing to a notable position in the market. The ETF’s success is underscored by its rapid growth and investor confidence amidst broader market challenges...
Cosmos Highlights of the Week
Kujira has announced a strategic partnership with THORChain, integrating its DeFi suite with THORChain’s native assets and liquidity. This collaboration will leverage THORChain's cross-chain capabilities, including native $BTC and $ETH deposits, and will support THORChain’s smart contract development.
Despite recent challenges, including a balance sheet deficit, the partnership will facilitate a token raise to clear debts and align community interests. Team changes are also underway, with new leadership joining to enhance treasury management and dApp operations. A PILOT raise, supported by THORChain founder JPTHOR, will start soon, marking a pivotal moment in Kujira’s growth.
LayerBank has announced a strategic partnership with NibiruChain, joining its seed round and planning to build a comprehensive lending protocol on the Nibiru-EVM platform. This collaboration will enable users to access LayerBank’s advanced money market on Nibiru, addressing the need for scalable and user-friendly Web3 applications.
The integration aims to enhance financial services within the Nibiru ecosystem, reflecting both companies' commitment to innovation and growth. Further updates on this partnership will be shared as the project progresses.
Noble is collaborating with IBCProtocol to introduce SP1, a streamlined IBC system implemented in Solidity. This new system aims to facilitate secure and cost-effective IBC transfers by enabling trustless verification of Tendermint state transitions.
The launch of SP1 represents a significant advancement in bridging solutions, offering enhanced efficiency and security. Congratulations to SuccinctLabs for their support and contributions to this innovative project.
Injective's recent burn auction saw a significant reduction of $344,478 worth of $INJ, marking one of the highest burn days to date. The Injective Burn Auction is designed to decrease the total supply of INJ systematically, enhancing its deflationary traits.
The process involves accumulating revenue from participating applications and individual contributions into an Auction Fund. Participants then bid with INJ in a weekly auction for the fund's assets. The highest bidder receives the assets, while their bid is burned, reducing INJ supply and boosting the ecosystem's growth.
Injective has integrated with Elliptic, a top blockchain analytics platform, to bolster compliance and security. This collaboration allows developers and businesses to track fund flows within the Injective network while adhering to global regulatory standards.
The integration facilitates institutional onboarding by providing essential compliance frameworks, highlighting Injective's commitment to maintaining high standards in blockchain finance.
Other Highlights of the Week
The SEC has subpoenaed three crypto venture capital firms to examine their involvement in token deals, focusing on whether they acted as "statutory underwriters" by distributing unregistered securities to the public. The investigation, disclosed by DL News, is part of the SEC's broader crackdown on the crypto industry.
Although the specific firms were not named, this move signals increased regulatory scrutiny on how VCs may be influencing token markets. Legal experts view this as a logical extension of the SEC's ongoing efforts to enforce securities laws within the rapidly evolving crypto space.
To counter Donald Trump's rising influence in the cryptocurrency sector, the Democrats have introduced the "Crypto for Harris" campaign. This initiative aims to consolidate support from crypto voters for Vice President Kamala Harris. The campaign will kick off with a virtual town hall featuring notable crypto figures like Mark Cuban and Anthony Scaramucci, along with Democratic representatives.
The move comes as Trump, who has gained traction in the crypto space by promising a strategic Bitcoin reserve and addressing national debt, continues to appeal to the large base of U.S. cryptocurrency holders. Harris has responded by adding crypto advisors to her team, seeking to solidify her stance in the crypto arena.
Security researchers have uncovered a new attack method named "Dark Skippy," which can steal private keys from Bitcoin hardware wallets using only two signed transactions. This vulnerability, affecting all hardware wallet models, exploits malicious firmware to embed secret data into public transactions on the blockchain.
The attacker then uses Pollard’s Kangaroo Algorithm to compute the secret data from the public nonces. This method, which significantly reduces the number of transactions required compared to previous versions, underscores the need for improved security measures in wallet firmware and user practices. To combat this, researchers recommend enhancing firmware protection and employing anti-exfiltration signing protocols.
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