LianGuai Morning Post | Federal Reserve Meeting Minutes Core Inflation Will Significantly Decrease in the Second Half of the Year

LianGuai Morning Post | Fed Minutes Core Inflation to Decrease in H2

Headlines

▌Fed Meeting Minutes: No Longer Expecting Mild Recession Before the End of the Year, Core Inflation to Decline Significantly in the Second Half of the Year

The Fed minutes show that since mid-March when pressures on the banking industry emerged, the performance of spending and real activity indicators has been stronger than expected, so participants no longer expect the economy to enter a mild recession before the end of the year. However, staff still expect that actual GDP growth in 2024 and 2025 will be lower than their estimates of potential output growth, which will result in a slight increase in the unemployment rate relative to its current level.

Participants also expect overall and core personal consumption expenditure inflation to decline in the coming years. Most of the decline in core inflation is expected to occur in the second half of 2023, with forward-looking indicators suggesting that the pace of increase in housing services prices will slow down, and core non-housing services prices and core goods prices are expected to decelerate for the remainder of 2023. With continued resolution of supply-demand imbalances, inflation is expected to further ease in 2024, with the total price increase in personal consumption expenditure in 2025 expected to be 2.2% and core inflation expected to be 2.3%.

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Market

As of press time, according to coinmarketcap data:

The recent trading price of BTC is $28,741.7, with a daily change of -1.23%;

The recent trading price of ETH is $1,808.54, with a daily change of -0.64%;

The recent trading price of BNB is $232.15, with a daily change of -0.55%;

The recent trading price of XRP is $0.5887, with a daily change of -0.96%;

The recent trading price of DOGE is $0.0672, with a daily change of -2.71%;

The recent trading price of ADA is $0.2748, with a daily change of +0.50%;

The recent trading price of MATIC is $0.6234, with a daily change of +0.37%.

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Policies

▌US Federal Judge to Submit Motion for Binance’s Protective Order to Magistrate Judge

In documents filed with the US District Court for the District of Columbia on August 16, US Judge Amy Berman Jackson stated that she would submit Binance.US’s motion for a protective order against the SEC to Magistrate Judge Faruqui to seek a resolution. As of press time, the SEC has not filed any motions in response to Binance.US’s request.

LianGuai previously reported that Binance.US’s legal team submitted the motion on August 14, believing it was necessary to protect the company from “fishing enforcement” by the SEC during the discovery process.

▌Kraken Executive: Clear Regulatory Pathway in Canada, Over 250 Employees in the Country

Mark Greenberg, Managing Director of Kraken Canada, stated that despite the high requirements of the regulatory registration process in Canada, the clarity of regulation has benefited the company. Kraken has over 250 employees in Canada, and this strong foundation is key to the company’s success in the country. Greenberg said that since 2011, the company has been conducting currency services registration in Canada: “It requires a lot of work for us, and we’re fortunate because we have a large user base in Canada, and we can control these costs.”

▌Ripple Labs Opposes SEC’s Appeal Request

Ripple Labs’ lawyers wrote to Judge Analisa Torres expressing their opposition to the U.S. Securities and Exchange Commission’s (SEC) move last week to seek an intermediate appeal of the summary judgment order. The lawyers stated, “Having failed to meet its burden of providing facts to support bringing all defendants’ distributed digital asset XRP within the purview of Howey, the SEC now seeks to appeal its claimed contentions in a purely ‘legal issue’ that affects all other digital asset cases.”

Ripple Labs argues that the SEC does not meet the standard for pursuing an intermediate appeal, specifically stating that the regulatory agency does not have enough evidence to prove “substantial grounds for difference of opinion.”

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Blockchain Applications

▌Shiba Inu’s Ethereum L2 Blockchain Shibarium Goes Live

Shiba Inu has launched the Shibarium mainnet, which is an Ethereum L2 scaling solution. It is reported that the Shibarium network has created over 21 million wallets during its testnet period.

Shibarium will utilize Heimdall validators and Bor block producers, similar to the Polygon ecosystem. Heimdall will be based on the Tendermint consensus engine, while Bor will be fully interoperable with the Ethereum Virtual Machine. Users must lock 10,000 BONE tokens in the Shibarium network to become a validator. 21 million BONE tokens will be reserved as rewards for validators and delegators within the Shibarium ecosystem, as well as for paying authorized gas fees.

▌Dapp Development Team Smol Releases MultiSafe, Allowing Users to Have the Same Address Across Multiple Blockchains

Dapp (decentralized application) development team Smol has recently released MultiSafe, which allows users to have the same address across multiple blockchains. The dapp is built on top of Saf (previously known as Gnosis Safe), a modular infrastructure developed by the company for users to access and manage their crypto assets. According to Smol core contributor draper, building MultiSafe was intended to make it easy for anyone to deploy a safe on the most commonly used chains in the simplest way possible and have the same address across all chains. Users can deploy a brand new safe or clone an existing safe with just a few clicks.

The Smol team has already built and released seven different dapps, and according to draper, the team is in negotiations with other teams for future projects.

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Cryptocurrencies

▌Valkyrie Files New Ethereum Futures ETF Application

Bloomberg Senior ETF Analyst Eric Balchunas tweeted that Valkyrie has just filed a new application for an Ethereum futures ETF. According to the filing on August 16, this application is a supplement to the company’s previous requests to change the investment strategy of its Bitcoin futures ETF.

According to the filing, the fund will not directly invest in Ethereum but will seek capital appreciation for investors through investments in Ethereum futures contracts traded on exchanges and collateral investments in high-quality securities such as government bonds and commercial paper.

▌SEI Trading Volume Surpasses $1.6 Billion in the Past 24 Hours

According to data from CoinMarketCap, the trading volume of SEI has surpassed $1.6 billion in the past 24 hours. Cryptocurrency exchanges such as Coinbase, Binance, and Kraken have all listed the token on their platforms since its debut on the SEI network.

Sei is a new network built using the Cosmos SDK, a software development toolkit that enables easy construction of new blockchains that can interoperate with other networks in the Cosmos ecosystem.

▌Coinbase Donates $120,000 Worth of Bitcoin to WNBA Players

Cryptocurrency exchange Coinbase has donated $120,000 worth of Bitcoin to WNBA players as part of its ongoing sponsorship of the Women’s National Basketball Association. Players from the New York Liberty and Las Vegas Aces teams received $5,000 worth of Bitcoin as rewards from the exchange during the WNBA Commissioner’s Cup Championship on Tuesday, which were deposited into their personal Coinbase accounts.

After becoming the first cryptocurrency sponsor for the WNBA and NBA in September 2021, Coinbase expanded its partnership with the WNBA in 2022. As part of the expansion, the exchange helped set up cryptocurrency education for all players in the league and established individual cryptocurrency accounts for them.

▌Solidus Labs Discovers Over 500 Scam Tokens on Base

Cryptocurrency trade surveillance service Solidus Labs has released a blog post stating that the company has discovered over 500 scam tokens on Base. Among them, 300 tokens have hidden functionalities that allow for the minting of an unlimited number of tokens. Additionally, 70 tokens have hidden transaction fees, and 60 tokens do not allow buyers to resell their tokens.

According to Solidus, scammers have already stolen $2 million worth of cryptocurrencies. This does not include soft Rug pull scams like BALD, where investors are still deceived by deceptive marketing and trading practices without the presence of hard-coded exploitation. Solidus Labs estimates that this scam has caused users to lose $5.2 million.

▌SHIB Drops 7.8% as Shibarium Mainnet Launches

Shiba inu (SHIB) has dropped 7.8% in the past 24 hours as the Shibarium Layer 2 mainnet launches. The token is now trading at $0.00000920, according to data from CoinGecko. Other memecoins have also experienced declines during the same period, with pepe dropping 9.5% and HarryPotterObamaSonic10Inu (HPOS10I) dropping 10.6%.

Shytoshi Kusama, the lead developer of Shibarium, stated that the new Layer 2 combines community and decentralization, setting it apart from other blockchains. Shibarium is inviting all tokens to build and launch on its mainnet.

▌Data: 7-Day Moving Average of Cryptocurrency Spot Trading Volume Drops to $11.2 Billion, Less Than 30% of March

Data from The Block shows that the 7-day moving average of cryptocurrency spot trading volume has dropped to $11.2 billion, which is less than 30% of the $46 billion in March. Bitcoin’s volatility is at a historical low, and trading volume is also at its lowest level since 2020.

▌Nansen: Many top Bitcoin holders have owned or currently own Pepe

Data tracked by Nansen shows that many top Bitcoin holders have owned or currently own Pepe, including 4 out of the top 10 Bitcoin holders.

Nansen states that 137,000 addresses hold PEPE, while 10,300 addresses hold BITCOIN, but only 1.27% of addresses hold both tokens. Nansen has identified 9 addresses holding over 50,000 Bitcoins, with hgvmax.eth holding the most Pepe and Bitcoin among all smart currency addresses, with a total value of over $650,000.

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Important Economic News

▌Fed Minutes: Uncertainty remains high for the US economic outlook

The Fed minutes reveal that uncertainty remains high for the US economic outlook, and future decisions will be determined based on data.

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LianGuai Encyclopedia

▌Six Misunderstandings about the Lightning Network

Six misunderstandings about the Lightning Network: Misunderstanding 1: Running your own node is necessary to use the Lightning Network in a non-custodial manner, which prevents ordinary users from using mobile devices; Misunderstanding 2: The sender and receiver must be online at the same time for a successful Lightning Network payment (no offline/synchronized payments); Misunderstanding 3: The Lightning Network requires both users to lock the same amount of BTC in a channel to open it; Misunderstanding 4: The Lightning Network requires users to specify specific, single-purpose invoices, which provides a poor user experience; Misunderstanding 5: Users need to understand and choose between Bitcoin and the Lightning Network when sending BTC; Misunderstanding 6: The Lightning Network has low capital efficiency, making it impractical.

Disclaimer: LianGuai, as a blockchain information platform, publishes articles for information purposes only and should not be considered as actual investment advice. Please establish the correct investment concept and increase risk awareness.

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