LianGuai Morning News | Fidelity Becomes First Customer of Yong’an Blockchain Tool, BlackRock’s Spot Bitcoin ETF Approved as Fake

LianGuai Morning News | Fidelity Becomes First Customer of Yong'an Blockchain Technology, BlackRock's Spot Bitcoin ETF Approved and Exposed as Fake

Headlines

▌Fidelity Digital Assets Becomes First Corporate Customer of EY Blockchain Tool

Fidelity Digital Assets has become the first corporate customer of EY’s blockchain tool, Reconcile, which can be accessed through EY’s SaaS platform. Fidelity will use the web-based analytics dashboard to query on-chain data for risk management. According to a statement, EY’s fourth-generation blockchain analyzer, Reconciler, is designed to help organizations independently access and query on-chain data to enhance their internal risk management procedures.

It is reported that EY currently supports the blockchains of Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, and Dogecoin. It is also committed to expanding support for other blockchains’ data based on client demand, as well as additional features such as address derivation, block explorers, and staking.

▌Cointelegraph: Bitcoin Spot ETF News originated from unverified screenshot

Cointelegraph has officially responded to its earlier incorrect reports on the approval of a Bitcoin Spot ETF. The media outlet stated that its social media team had posted a message on X without prior editorial approval, claiming that the U.S. Securities and Exchange Commission had approved BlackRock’s iShares Bitcoin Spot Exchange-Traded Fund (ETF). This was incorrect and the result of misinformation. The news lead originated from an unverified screenshot shared by a user on X, who claimed the screenshot came from Bloomberg Terminal.

Cointelegraph ultimately did not publish an article containing this erroneous information but deeply regrets the error in posting this information on X and the impact it caused. An internal investigation revealed that we did not follow the standard procedures for posting breaking news on social media, including verifying the source of the news before posting it on social media.

To ensure similar incidents do not recur, the Cointelegraph team is thoroughly reviewing and revising its social media management process, particularly the verification of breaking news before posting, and engaging in discussions with all relevant staff for necessary structural changes.

Market Data

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

The recent trading price of BTC is $28,498.8, with a daily change of +1.54%;

The recent trading price of ETH is $1,599.67, with a daily change of +1.40%;

The recent trading price of BNB is $214.67, with a daily change of +0.90%;

The recent trading price of XRP is $0.4977, with a daily change of +1.15%;

The recent trading price of DOGE is $0.060, with a daily change of +0.44%;

The recent trading price of ADA is $0.2513, with a daily change of +0.48%;

The recent transaction price for SOL is $23.977, with a daily change of +3.47%.

Policy

▌The Australian Treasury Consults on New Approach to Regulating Tokenized Digital Assets

The Australian Treasury has released a consultation paper on regulating digital assets. The consultation is open until December 1st. The approach is focused on intermediaries, particularly those holding assets under custody, rather than the digital assets themselves. The paper highlights the significant consumer risks associated with intermediaries holding or controlling assets, citing FTX as an example. Therefore, intermediaries that control assets are a key target.

The paper classifies digital assets into financial digital assets, securities, bonds, etc., and non-financial digital assets. For financial digital assets, it takes a “same risks, same rules” approach, whereby all typical intermediaries would require an Australian Financial Services License (AFSL).

▌SEC Plans to Examine Cryptocurrency Exchange Brokers and Transfer Agents Based on 2024 Exam Outline

The U.S. Securities and Exchange Commission (SEC) has issued its exam priorities for 2024. The agency’s examination division has been issuing similar reports for over a decade, informing its registrants about emerging risks of interest, including cryptocurrency exchange brokers.

The report states that the SEC’s examination division expanded its capabilities and established teams across its various programs to address cryptocurrency, fintech, artificial intelligence, and cybersecurity in 2023. It also mentions that the SEC continues to observe broker-dealers and advisors engaged in cryptocurrency activities and will examine registrants for adherence to conduct standards in providing advice to clients and their understanding of the products they offer, as well as assess risks associated with the use of blockchain and distributed ledger technology.

▌Judge Orders Genesis to Respond to Subpoena Related to UST Collapse Within 5 Days

New York court Judge Jed Rakoff has ordered cryptocurrency lending and trading firm Genesis to comply with a subpoena request within five days. Genesis had failed to respond to a legal request for information related to the collapse of the 2022 UST stablecoin by the October 9th deadline, without specifying the sought-after information in the court order.

Genesis had provided billions of dollars in loans to the now-defunct hedge fund Three Arrows Capital, and three entities of Genesis filed for bankruptcy in January 2023, with the trading division closing its U.S. spot market business in September.

Blockchain Applications

▌BNB Greenfield Mainnet to Launch in Q4 2023

BNB Chain announced on social media that the decentralized data storage network BNB Greenfield has achieved over 200,000 transactions during the testnet phase, over 150,000 wallet addresses, and support from multiple storage providers. The BNB Greenfield mainnet is expected to launch in Q4 2023.

Cryptocurrency

▌BlackRock CEO responds to fake news: This is a retaliatory rebound of crypto interest, we have heard from customers around the world about their demand for cryptocurrency

Fox reporter Eleanor Terrett wrote on X platform that BlackRock CEO Larry Fink responded to the fake news that caused Bitcoin to skyrocket after his ETF was approved: “I’ve been busy all day, I just heard this news an hour ago. This is a retaliatory rebound of the suppressed interest in cryptocurrencies, we have heard from customers around the world about their demand for cryptocurrency.”

▌Xu Mingxing: It doesn’t matter whether the news is true or false, believe in the development potential of Bitcoin and hold on firmly

In response to the false news of “SEC approves Bitcoin spot ETF,” Xu Mingxing commented: “It doesn’t matter if it’s real news or fake news. The key is whether you believe that Bitcoin will become a key asset in the global economy. If you believe, then hold; if you don’t believe, just sell.”

▌Cathie Wood predicts multiple spot Bitcoin ETFs will be approved

Cathie Wood, CEO of Ark Invest, said today in an interview with CNBC’s Halftime Report host that she is very optimistic about the possibility of the U.S. Securities and Exchange Commission (SEC) approving the Bitcoin exchange-traded fund (ETF). The fact that the SEC chose to ask questions instead of rejecting the filing “indicates willingness” to move forward. Wood emphasized the growing optimism within the crypto community about Bitcoin ETFs.

Wood stated that multiple Bitcoin ETFs may be approved by the end of 2023 or early 2024, and added that the final deadline for Ark’s application is January 10th.

▌Former FTX Director of Engineering faces up to 75 years in prison after pleading guilty

According to Cointelegraph, Nishad Singh, former Director of Engineering at now-defunct cryptocurrency exchange FTX, is facing a maximum of 75 years in prison on charges related to defrauding users. Singh also revealed details of the agreement he reached with the U.S. Department of Justice, which led to his pleading guilty to the fraud charges announced in February. Singh stated that, as part of the agreement with prosecutors, he “hopes to avoid jail time.”

▌SBF requested the transfer of personally owned SRM tokens to Alameda’s balance sheet to deceive the CFTC

Nishad Singh, former Engineering Manager at FTX, testified that SBF attempted to deceive the U.S. Commodity Futures Trading Commission (CFTC) by requesting his deputy to transfer his personally owned Serum (SRM) tokens to Alameda’s balance sheet. Singh told the court that he did not complete the transaction because attempting to deceive federal regulators “didn’t feel right.”

In addition, former CEO Caroline Ellison of Alameda once told Singh, “It’s impossible” to stop the operations of this quantitative trading company, implying that Alameda cannot close its accounts and repay the debts of its sister company’s clients. Singh said that then he realized “users had been betrayed.”

▌Former FTX Engineering Director: FTX paid $1.3 billion to celebrities and influencers

According to Inner City Press, during Sam Bankman-Fried’s criminal trial, former FTX Engineering Director Nishad Singh read out a transaction list from a spreadsheet in court, which showed that FTX had given promotional funds to celebrities and influencers far exceeding $1 billion.

These transactions included FTX spending $135 million to rename the famous entertainment center in Miami as FTX Arena (now Kaseya Center). The list also included $28 million paid to NBA basketball player Stephen Curry, $14 million paid to Canadian businessman Kevin O’Leary, as well as undisclosed amounts paid to NFL quarterback Tom Brady, model Gisele Bundchen, and actor Larry David. Singh stated that the total value of these transactions amounted to $1.3 billion.

▌Coinbase Vice President: Taxation on DeFi will be “extremely challenging”

Coinbase’s Vice President of Taxation, Lawrence Zlatkin, stated that the proposed tax reporting requirements by the U.S. Department of the Treasury and the Internal Revenue Service (IRS) for cryptocurrency brokers are ultimately unrealistic. When discussing the new rules proposed earlier this year by the Biden administration, Zlatkin said that collecting information from decentralized exchange (DEX) users would be “extremely challenging.” Furthermore, tracking the profits and losses of traders and investors should not specifically target DEXes.

▌Uniswap to charge 0.15% fee for token swaps with ETH, USDC, and more

Uniswap Labs announced that starting from October 17th, Uniswap will charge a 0.15% fee for certain token swaps on its web interface and wallet. The affected tokens include ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD. Stablecoin swaps and trades between Ethereum and wrapped Ethereum are not affected.

Uniswap founder Hayden Adams stated on the X platform (formerly Twitter), “This is separate from Uniswap protocol fees, which are governed by UNI token voting… This interaction fee is one of the lowest in the industry, which will allow us to continue researching, developing, building, transmitting, improving, and extending cryptocurrencies and DeFi.”

▌Bloomberg Analyst: Proshares short Ethereum ETF to launch in early November

Bloomberg analyst James Seyffart tweeted on the X platform that the Proshares short Ethereum ETF (SETH) will launch in early November. The analyst mentioned that SETH did indeed become effective on October 15th, but it will be officially launched several weeks later.

Important Economic Trends

▌BlackRock: Raises Investment Recommendation for Long-Term US Bonds to Neutral for the Next 6-12 Months

BlackRock Think Tank stated on Monday that long-term US government bond yields may still have room to rise, but with inflation easing and the Federal Reserve nearing peak rates, yields may fluctuate in the short term. The think tank announced that it is adjusting its investment recommendation for long-term US bonds from “underweight” to “neutral” for the next 6-12 months. However, in the long term, the think tank still advises against heavy allocation to US bonds, expecting investors to demand more compensation to hold long-term bonds due to ongoing inflation, rising fiscal deficits, and increased government debt issuance. The think tank stated, “The term premium increase is likely to be the next driving factor for yield increases. In the long term, the 10-year US bond yield may reach 5% or higher.” (Jin10 Data APP)

LianGuai Encyclopedia

▌Finality of Blockchain

In traditional financial systems, once a transaction is confirmed, it cannot be cancelled. Similarly, achieving finality on a blockchain network ensures that transactions are permanent and cannot be modified after being added to the blockchain. Finality is achieved through consensus in a blockchain network. Different blockchain networks employ different consensus algorithms, each with unique methods to verify transactions and ensure finality, such as Proof of Work (PoW), Proof of Stake (PoS), or practical Byzantine Fault Tolerance (PBFT). The finality in a blockchain can be probabilistic, economic, immediate, unconditional, or related to the entire state of the blockchain.

Disclaimer: LianGuai, as a blockchain information platform, publishes article content for informational purposes only and does not serve as actual investment advice. Please establish a correct investment concept and always increase risk awareness.

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