LianGuai Daily | BC Technology plans to sell its cryptocurrency exchange platform OSL; Tether has frozen a total of 835 million USDT to date.
LianGuai Daily | BC Technology to Sell Cryptocurrency Exchange Platform OSL; Tether Freezes over $835 Million USDT to DateToday’s News Highlights:
Grayscale: ready to convert GBTC to ETF after receiving SEC approval
- Opinion The USDe issued by Ethena is just a bond, not a stablecoin at all.
- How will the cryptocurrency sea change in the next decade?
- Research on the LP Mechanism of Various DEX Mainstream, AMM, and Cross-Chain
Coinbase Report: demand for Ethereum staking rewards slowing down
Tether has frozen a total of $835 million in assets to date
Data: AXS worth about $64.59 million, APE worth about $16.6 million to be unlocked this week
Bitcoin mining difficulty increases by 6.47% to 61.03T, reaching an all-time high
Regulatory News
Australia plans to regulate cryptocurrency exchanges
According to Bloomberg, in a consultation paper titled “Regulating Digital Asset Platforms” released by the Australian Treasury on Monday, digital asset platforms that hold more than AUD 5 million (about USD 3.2 million) or individuals holding more than AUD 1,500 must obtain a license from the Australian Securities and Investments Commission (ASIC). The consultation paper proposes regulating cryptocurrency exchanges under existing financial services laws instead of enacting new cryptocurrency-specific rules. The obligations for cryptocurrency companies will come from existing financial services laws, including submitting financial records, monitoring market misconduct, meeting solvency and cash reserve requirements. In addition, cryptocurrency companies will have more obligations in areas such as trading, staking, and token creation. The Australian government will engage in consultation on the proposal before December 1. It is expected that the legislation will be introduced next year, and then exchanges will have 12 months to ensure compliance.
According to The Wall Street Journal, the U.S. government is one of the largest holders of Bitcoin in the world, but unlike other crypto giants, it does not care whether the value of the digital currency goes up or down. This is because the approximately 200,000 Bitcoins held by the U.S. government were confiscated from cyber criminals and dark web marketplaces. These Bitcoins are mainly stored in encrypted, password-protected hardware wallets controlled by the Department of Justice, the Internal Revenue Service, or other agencies and are not traded online.
The process of converting Bitcoin to dollars for the U.S. is notoriously slow. It does not hold Bitcoin for the long term and refuse to sell, a behavior referred to as “holding on tight to Bitcoin.” Additionally, it is not waiting for the price of Bitcoin to rise so it can sell at a higher price. The large amount of Bitcoin held by the U.S. seems more like a byproduct of lengthy legal procedures rather than a strategic plan. Jarod Koopman, Director of the IRS Criminal Investigation Division, said, “We don’t participate in market transactions. Our actions are mostly determined by the timing of legal procedures.”
According to the analysis of public documents by the crypto company 21.co, the government has seized over 200,000 Bitcoins in just the past three cases, which have entered the government’s treasury. Even though the government has sold about 20,000 Bitcoins, the value of its remaining holdings is still over $5 billion. From the seizure of illegal Bitcoins to receiving the final order to liquidate the tokens, the legal process could take several years. In some cases, this works in favor of the government, as the value of cryptocurrencies can rise significantly.
NFT
NFT project y00ts announced on X platform that the y00ts cross-chain bridge for migrating y00ts from Polygon back to Ethereum has gone live. The team will cover all gas fees for the first day and randomly distribute 10 y00ts to wallet addresses that complete the cross-chain transfer within 24 hours.
During the migration period, cross-chain transactions will be verified on Polygon within seconds but must first be verified on the Ethereum mainnet before NFTs can be minted. Additionally, starting from October 22nd, a 33.3% royalty fee will be charged for trading y00ts on Polygon, and the team advises users to complete the migration within 7 days.
Project Updates
Grayscale: Ready to Convert GBTC to ETF After Obtaining SEC Approval
Fox Business reporter Eleanor Terrett tweeted that Grayscale has issued a statement regarding the decision by the US SEC not to seek a rehearing, stating, “The 45-day period to seek rehearing under the Federal Rules of Appellate Procedure has expired. The court will issue final authorization within 7 days. The Grayscale team is ready to convert GBTC to ETF once approved by the SEC.” According to previous reports, the SEC does not plan to appeal the Grayscale ruling, which aligns with the predictions of many industry experts and increases the likelihood of GBTC being converted to an ETF.
Stars Arena Reopens but Trading Not Yet Restored
LianGuaiNews reported on October 16th that the social protocol Stars Arena, based on the AVAX network, announced its reopening on Twitter, but trading has not yet been restored. Stars Arena previously stated that trading would only resume after the full audit report is published and the contracts are open-sourced for community review.
ether.fi to Launch Native Re-staking Token eETH on EigenLayer, Aims for DAO Governance in March 2022
Non-custodial liquidity staking protocol ether.fi released its decentralized roadmap on the X platform and announced market share limitations. The team pledged to limit the number of validators and ETH within the consensus layer to less than 25%.
According to their decentralized roadmap, ether.fi will launch the native re-staking token eETH on EigenLayer within a month. In addition, the team plans to open-source the protocol completely in December this year and achieve DAO governance, Phase 2 of Distributed Validator Technology (DVT) integration (unpermissioned individual staking), and contract ossification in March next year.
Coinbase Report: Investors’ Demand for Ethereum Staking Rewards Slowing Down
According to CoinDesk, Coinbase (COIN) stated in a research report on Friday that the Ethereum blockchain validator queue cleared for the first time since the Shanghai upgrade in May, indicating a stabilizing demand for staking Ethereum (ETH) by investors.
The report mentions that with the influx of validators in recent months, staking yields have dropped from over 5% to 3.5%. If the underlying activity and transaction fees on the network remain consistent, the staking yields are expected to remain stable due to the slowing growth of validators. Additionally, the report points out that activity on the Ethereum mainnet remained stable in the third quarter, while total transaction volume increased.
The report further states, “Given no significant Ethereum protocol upgrades prior to Dencun (likely to occur in the first half of 2024), we believe there are no meaningful technological driving factors that would impact on-chain activity unless there are major new protocols or severe hacking incidents.”
According to Cointelegraph, the new hook (known as “KYC hook”) provided in the Uniswap V4 hook open source directory has sparked controversy within the crypto community. This hook allows users to perform KYC checks before entering the trading pool. A user from platform X criticized this hook, pointing out that it opens up the possibility for decentralized finance (DeFi) protocols to be included in the regulator’s whitelist.
A hook is a tool that allows developers to customize code without changing the main structure of the program. In Uniswap V4, this hook will allow developers to use KYC verification in decentralized finance protocols. The KYC hook was introduced as an optional feature by community developers on the Uniswap V4 directory, with KYC verification being executed by NFTs. According to another user from platform X, this NFT is specifically designed for liquidity providers and may be useful for projects that need to comply with regulatory requirements in certain jurisdictions.
It is reported that Uniswap V4 introduces customizable hook functionalities, which are expected to be launched in early 2024 and will only be accessible to entities approved by governance.
SBF applies to increase drug dosage during trial to ensure testifying ability
The proxy lawyer of Sam Bankman-Fried (SBF), the founder of FTX, submitted an application to the court on Sunday evening local time, hoping that SBF would be allowed to increase the dosage of Adderall during the trial, highlighting that this may affect SBF’s ability to testify.
It is reported that Adderall is a type of neurostimulant drug that can increase alertness, temporarily relieve fatigue, and enhance aggression. It is commonly used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy.
According to Sing Tao Daily, Meitu recently announced a turnaround in its performance. Meitu’s Senior Investor Relations Manager Kang Yicong pointed out that the significant profitability is largely attributed to the company’s subscription model, which avoids large fluctuations in profits due to macroeconomic changes. The AI business, which has been popular recently, is also driving Meitu’s growth, not only helping boost subscriptions, but also expecting to contribute increasing profitability. As for the market’s focus on cryptocurrency investments, she revealed that the company is no longer focusing on and buying such assets, and may sell them at the right time.
Kang Yicong believes that AI has greatly driven the company’s development, especially in converting subscribers. She expects that AI’s contribution to the company’s profits will continue to increase in the second half of this year and next year. The company has basically stopped buying cryptocurrencies after 2021. She mentioned that the initial purchase was a strategic consideration, but no further actions were taken afterwards. She emphasized that the company’s current strategic focus is on image production.
ZepetoX: ZTX Token Officially Launched, Airdrop Completed
Korean internet giant Naver’s metaverse platform Zepeto, in collaboration with Jump Crypto, announced that the token airdrop has been completed and ZTX is officially launched and listed on Bybit, Gate.io, Bithumb, Coinone, and SushiSwap.
Insider: BC Technology Plans to Sell Cryptocurrency Exchange OSL for $128 Million Valuation
According to insider reports cited by Bloomberg, Hong Kong-based BC Technology Group is considering selling its cryptocurrency exchange OSL. Insiders suggest that BC Technology Group has assessed the interest of industry participants and funds as potential buyers for OSL and has proposed a valuation of HK$1 billion ($128 million). OSL is one of the only two exchanges in Hong Kong with a virtual asset trading license.
OSL’s platform covers major brokerage, trading, and custody services in the cryptocurrency market, as well as infrastructure for financial institutions to facilitate their virtual asset trading. Insiders suggest that BC Technology Group may sell some of OSL’s business rather than the entire operation. Discussions are still ongoing, and there is no guarantee that a final agreement will be reached.
BC Technology’s interim report shows that the net loss for BC Technology narrowed from over HK$300 million in the same period last year to HK$95 million in the six months ending in June. OSL’s digital asset and blockchain platform business are the main sources of revenue for BC Technology. The digital asset trading volume on OSL decreased nearly by half in the first six months of 2023 compared to the same period last year, amounting to HK$112.6 billion.
In response to this, insiders from OSL stated that the Bloomberg report is not entirely accurate.
TrueUSD Discloses Third-Party Security Vulnerability Resulting in Partial Customer Information Leak
According to The Block, stablecoin issuer TrueUSD has disclosed a third-party security vulnerability that resulted in the personal identification information of some customers being leaked. This information includes customers’ first and last names, email addresses, and phone numbers (applicable to customers who joined between 2018 and 2019). Customer addresses, birthdates, bank names, transaction history, and blockchain account public addresses were also included. This breach involved TrueUSD’s former bank, customer onboarding, and product management service provider TrueCoin.
Web3 Foundation Announces the 19th Batch of Grant Funding, 33 Projects Selected
Web3 Foundation has released the 19th batch of grant funding, providing a total funding amount of approximately $1.1 million for 33 projects.
Funding News
According to The Block, MyShell, a platform that provides AI tools based on opBNB, has completed a $5.6 million seed round of financing. INCE Capital led the financing round, with participation from Hashkey Capital, Folius Ventures, SevenX Ventures, and OP Crypto. Co-founder Ethan Sun stated that this financing round includes token warrants and has valued MyShell at $57 million. Earlier this year, MyShell raised $200,000 in seed funding from friends and the crypto community.
Important Data
Data: $64.59 million worth of AXS and $16.6 million worth of APE will be unlocked this week
According to Token Unlocks data, four projects will unlock tokens this week, with a total value of over $87.8 million.
Flow (FLOW) will unlock approximately 7.29 million tokens worth approximately $3.23 million on October 16 at 8:00 AM;
ApeCoin (APE) will unlock approximately 15.6 million tokens worth approximately $16.6 million on October 17 at 8:00 AM;
Axie Infinity (AXS) will unlock approximately 1,513 tokens worth approximately $64.59 million on October 20 at 9:10 PM;
SLianGuaiCE ID (ID) will unlock approximately 18.49 million tokens worth approximately $3.41 million on October 22 at 8:00 AM.
Tether has frozen a total of $835 million in assets to date
In a statement, Tether announced that it has assisted 31 institutions worldwide in 19 jurisdictions in investigations and has frozen a total of $835 million in assets. These assets are primarily related to theft (blockchain and exchange hacks), with a small portion related to other crimes. Tether has frozen 32 addresses worth $873,118.34, which have been found to be involved in illegal activities in Israel and Ukraine.
Bitcoin mining difficulty increases by 6.47% to 61.03T, reaching a new all-time high
According to Mempool data, the mining difficulty of Bitcoin underwent an adjustment at 19:32 today (block height 812,448), increasing by 6.47% to 61.03T, reaching a new all-time high.
Grayscale GBTC’s negative premium narrows to 15.87%, approaching a two-year low
According to CoinDesk, as of last Friday, Grayscale GBTC’s negative premium has narrowed to 15.87%, reaching the lowest level since the end of December 2021. The negative premium of Grayscale GBTC has been steadily decreasing since reaching a historic low of nearly 50% during the peak of the bear market in December last year.
SEC may now come up with new reasons to reject Grayscale’s proposal to convert GBTC to an ETF, or request a full appeal. However, considering that regulatory agencies have been actively involved in other spot ETF applications, this possibility seems unlikely.
LianGuaiNews, October 16: Binance completes its 25th BNB quarterly burn, with a total of 2,139,182 BNB burnt, worth approximately $453 million.
CoinShares: Net inflows of digital asset investment products amounted to $15.2 million last week
According to CoinShares’ weekly report, net inflows of digital asset investment products amounted to $15.2 million last week, marking the third consecutive week of capital inflows. Net inflows of Bitcoin investment products amounted to $16.4 million last week, bringing the year-to-date inflow to $260 million. Ethereum investment products saw a net outflow of $7.4 million, while investment products shorting Bitcoin saw a net inflow of $1.7 million. In addition, Solana investment products saw an inflow of $3.7 million.
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