LianGuai Morning News | ARK Invest and 21Shares Submit Ethereum ETF Application

LianGuai Morning News | ARK Invest and 21Shares Apply for Ethereum ETF

Headlines

▌ARK Invest and 21Shares jointly submitted two Ethereum futures ETF applications

Bloomberg ETF analyst James Seyffart tweeted that ARK Invest and 21Shares have once again jointly submitted two Ethereum futures ETF applications. One of them is a pure Ethereum futures ETF with the code ARKZ, and the other is a Bitcoin + Ethereum futures ETF with the code ARKY.

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Market

As of the time of writing, according to coinmarketcap data:

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BTC recent trading price is $26,146.0, with a daily change of +0.55%;

ETH recent trading price is $1,660.39, with a daily change of +1.05%;

BNB recent trading price is $218.7, with a daily change of +0.89%;

XRP recent trading price is $0.5182, with a daily change of +0.63%;

DOGE recent trading price is $0.0630, with a daily change of +0.74%;

ADA recent trading price is $0.2657, with a daily change of +1.19%;

MATIC recent trading price is $0.547, with a daily change of +0.92%.

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Policies

▌CoinRoutes CEO: Regulatory agencies need to reconsider cryptocurrency regulatory rules

CoinRoutes CEO Dave Weisberger said that the problem in the United States stems from the lack of clear regulations and rules, which leads to regulatory agencies applying different rules arbitrarily. Weisberger added that this problem arises from the existence of two different regulatory agencies (SEC and CFTC) that play different roles in the financial system, which may overlap depending on the cryptocurrency assets involved and the use cases under review. Moreover, the SEC’s rules were formulated in the 1940s and updated in the 1970s, and should not be used to regulate new asset classes and technology-driven products. Weisberger gave an example that “it is more difficult to renovate a house than to build one from scratch,” and regulatory agencies need to reconsider their approach to cryptocurrency regulation.

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Blockchain Applications

▌Base and Optimism launch governance sharing and revenue sharing framework

Developers behind Base and Optimism networks jointly announced a revenue sharing and governance sharing protocol. According to the post, Base’s smart contracts can only be upgraded through a 2/2 multisig wallet account. One signature is controlled by Base, and the other is controlled by the Optimism network team (referred to as the “Optimism Foundation”). As more chains choose to use the OP Stack and become part of the “superchain,” governance will be handed over to a “security council” composed of representatives from all chains that make up the ecosystem.

Base will also pay 2.5% of its revenue or 15% of its profits to the Optimism Collective, whichever is higher. In return, it will receive “up to approximately 118 million OP tokens,” giving it a voice in Optimism’s protocol governance. The announcement stated that “to maintain balance,” this amount will be capped at 9% of the total voting supply.

The team will continue to develop Pessimism, a real-time network monitoring tool, in an attempt to detect network security threats as early as possible. In addition, Base will share revenue with Optimism Collective and eventually upgrade key transfer to the Optimism Security Council.

▌Base Announces Superchain Decentralization Plan, Covering Fault Tolerance and OP Client Diversity

Base has released an article titled “Commitment to Superchain Decentralization,” focusing on multiple technical updates to ensure that no single entity can control the project. The core team of Base stated that they will strive to achieve network decentralization by implementing fault tolerance and using different client software to maintain network resistance to censorship, thereby eliminating the existing stage where Coinbase is the sole operator of the Base network sequencer entity. Coinbase will collaborate with the decentralized autonomous organization Optimism Collective and OP Labs to transition Base (part of the Optimism OP Stack) to complete decentralization. However, the team has not provided a specific timeline for this transition.

The decentralization efforts include contributions to the OP Stack, creating OP chains such as Base, and the ecosystem known as the “superchain.” They are also the main contributors to OP-geth (the first client of the OP Stack) and are working with LianGuairadigm to develop another client, OP-reth, aimed at achieving fault tolerance diversity and minimizing network failure risks.

Finally, the Base team plans to assist in the formation of a “Security Council” for the superchain, aiming to implement further checks and balances to enhance the security and decentralization of Base, the OP mainnet, and related chains.

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Cryptocurrency

▌Num Finance Launches Stablecoin Anchored to the Colombian Peso on Polygon

Stablecoin issuer Num Finance announced in a press release that it has launched a stablecoin called nCOP pegged to the Colombian peso on the Polygon network. The stablecoin is overcollateralized by reserve assets and allows individuals and businesses to use blockchain for transfers, payments, and deposits. Agustín Liserra, CEO of Num Finance, said, “Currently, Colombia is one of the main remittance receiving countries in Latin America, with nearly $10 billion flowing into the country. Num Finance aims to provide people with a new possibility to send and receive nCOP as remittances and earn from it.”

▌Coinbase is in Talks with Canadian Banking Giants to Promote the Cryptocurrency Economy

US-based cryptocurrency exchange Coinbase is in negotiations with Canadian banking giants in an attempt to persuade them to support the country’s cryptocurrency ecosystem. Lucas Matheson, Director of Coinbase Canada, stated in an interview with CoinDesk that he has been in discussions with the top banks in Canada, without disclosing specific names. The “Big Five” Canadian banks are Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce.

Matheson said, “I hope that in the next few quarters, we will see some large Canadian banks getting involved in the crypto economy.”

▌Prime Trust’s parent company loses $8 million in TerraUSD investment

Prime Trust, a cryptocurrency custody provider, is currently involved in Chapter 11 bankruptcy proceedings in the United States. The company reported losing approximately $8 million in funds through its TerraUSD (USTC) investment.

In documents filed with the US Bankruptcy Court in Delaware on August 24, Prime Core Technologies reported that under previous management, the company lost $6 million in customer funds and $2 million in financial funds through its TerraUSD (USTC) investment, which occurred around the collapse of the TerraUSD algorithmic stablecoin in May 2022. The company stated that this investment, as well as increased expenses in October and November 2022, were among the reasons for its bankruptcy.

A document from June showed that Prime Trust owed its customers over $85 million in fiat currency and $69.5 million in cryptocurrency. It was reported that the company held only about $2.9 million in fiat currency and $68.6 million in cryptocurrency.

▌Data: Total market value of listed mining companies in the crypto sector has fallen by about 30% in the past month

According to data published by AltIndex.com, the total market value of listed mining companies in the crypto sector, including Riot Blockchain, Marathon Digital, Canaan Inc., Hut 8 Mining, and Cipher Mining Technologies, has fallen by about 30% in the past month. Data compiled by YCharts and ComLianGuainiesMarketCap showed that the total market value dropped to $6.7 billion last week, down from $9.5 billion in July.

Riot Blockchain and Marathon Digital, the two largest listed mining companies by market value, saw their stock prices drop by about 40% and 36% respectively last month. Hut 8 fell by about 32%, while Canaan and Cipher Mining saw their stock prices drop by about 29% and 23% respectively compared to a month ago.

▌PEPE multi-signature wallet rules changed from 5/8 to 2/8, over 16 trillion tokens transferred to exchanges

Crypto detective CryptoNoddy discovered that the PEPE multi-signature wallet has changed the threshold from 5/8 to only 2/8, meaning it no longer requires five out of eight wallets to sign a transaction, but only two out of eight. Meanwhile, as of around 5:00 AM Beijing time on Friday, over 16 trillion tokens (worth about $15.6 million) flowed out of the PEPE multi-signature wallet and into addresses associated with Binance, OXK, and Bybit. As these on-chain actions were exposed, the PEPE token fell by about 12%.

▌Data: NFT total trading volume has dropped by 49% this month

According to data from analytics platform Nansen, the total trading volume of NFTs has dropped by 49% this month to 223,000 Ethereum, equivalent to $367 million. Over the past 90 days, both daily total sales and daily active wallet numbers have been declining. The floor price of Azuki has dropped from 33 ETH to 3.9 ETH. The Moonbirds series supported by Kevin Rose has steadily declined from its peak of 36 ETH in April 2022 to 1.29 ETH today.

According to Nansen’s NFT Index, the best-performing sector this year is art, with the Nansen Art-20 Index only falling by 40%, while other sectors have fallen by 50% or more.

▌Data: Over 90% of altcoin holders are in a loss

According to IntoTheBlock data, many altcoins are experiencing unprecedented losses, with over 90% of altcoin holders in a loss. However, mainstream decentralized finance (DeFi) tokens have performed much better, including Compound (COMP), 0x Protocol (ZRX), Uniswap (UNI), AAVE, and Maker (MKR). Maker stands out as the only asset that has suffered less losses compared to a year ago. Additionally, for most of this year, it has remained the highest-return token in holders’ portfolios.

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Important Economic Developments

▌Fed officials believe interest rates are nearing their peak, but further rate hikes are not ruled out

Two Federal Reserve officials have stated that policymakers may be nearing the end of rate hikes, but one of them said that the possibility of further rate hikes should not be ruled out until clearer evidence shows that inflation is on a downward trajectory. Boston Fed President Collins said in an interview on Thursday, “We may need to add a bit more, and we may already be very close to a level where we can sustain rates for a long time. I think we are likely at a stage where we can hold steady for quite a while. As for where the top of the rate is, I’m not going to give any hints right now.” Collins told the Financial Times that the U.S. economy has not slowed enough to bring inflation to a level that is sustainably downward, and the resilience of the economy means that the Fed may need to do more work. Philadelphia Fed President Harker reiterated on Thursday that the Fed may have done “enough” in terms of tightening policy and that rates should be kept at a restrictive level when assessing the impact of policy on the economy.

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LianGuai Encyclopedia

▌Side-channel attack

Side-channel attacks target the physical implementation of a system rather than its algorithms. They exploit information leaked during device operation, such as power consumption, electromagnetic radiation, or timing variations, to launch an attack. These subtle leaks can allow attackers to gain insight into sensitive data such as encryption keys, potentially compromising the security of cryptocurrency hardware wallets.

Disclaimer: As a blockchain information platform, LianGuai’s published article content is for informational reference only and should not be considered as actual investment advice. Please establish the correct investment concept and be sure to increase risk awareness.

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