News Weekly | US Judge Accepts Zhao Changpeng’s Guilty Plea Agreement, Mark Zuckerberg Sells Over 560,000 Shares of Meta Stock

Breaking News US Judge Approves Zhao Changpeng's Guilty Plea Deal, Mark Zuckerberg Sells Over 560,000 Shares in Meta Stock

LianGuai Weekly is a column launched by LianGuai, summarizing the blockchain industry on a weekly basis. The content covers key news, mining information, project updates, technological advancements, and other industry dynamics. This article is the news summary, taking you through the major events in the blockchain industry this week.

Headlines

▌US Judge Accepts CZ’s Guilty Plea Agreement

A court document shows that US Judge Richard Jones in Seattle has accepted former Binance CEO CZ’s guilty plea agreement for anti-money laundering violations. However, the judge has not yet considered whether CZ can return to the United Arab Emirates before the February sentencing. The sentencing is currently scheduled for February 23, 2024. After years of investigation by federal regulatory agencies, CZ admitted last month to violating anti-money laundering and sanction rules. Binance agreed to pay $4.3 billion, making it one of the largest corporate settlement agreements in history, while CZ agreed to pay a $50 million fine and resign as CEO.

▌Zuckerberg Sells Over 560,000 Meta Shares, Cashing Out Nearly $200 Million

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According to the documents submitted by Mark Zuckerberg to the US Securities and Exchange Commission (SEC), he has been selling Meta Platforms shares almost every day in November. As of November 29th, he had sold over 560,000 shares in total. Based on the Form 144 submitted to the SEC on November 30th, Zuckerberg plans to sell another batch of 28,009 shares of Meta Platforms. The total value of Zuckerberg’s sold shares reached $192.9 million.

▌SlowMist: 47 Security Vulnerabilities Recorded in November, Estimated Total Loss of $349 Million

According to the security report released by SlowMist, there were numerous security vulnerabilities in the blockchain field in November 2023. A total of 47 different incidents were recorded, resulting in an estimated cumulative loss of about $349 million. In November, the losses caused by Poloniex and Heco Bridge alone reached $243 million, accounting for 69% of the total losses of security incidents in November. There were 24 Rug Pull incidents, accounting for 51% of the total number of security incidents. Users should fully understand the project background and team and make cautious investment choices before participating. Two incidents involving liquidity attacks resulted in a loss of approximately $54.99 million for the project operators.

▌BTC Breaks $40,000, the First Time Since April 2022

As of December 4th, BTC has broken $40,000, the first time since April 2022.

▌IRS: Nearly Half of Digital Asset Investigations in the Past Year are Related to Tax Evasion

According to Bloomberg, the head of the criminal division of the US Internal Revenue Service (IRS), Jim Lee, stated that cases involving cryptocurrency-related tax evasion are increasing. Jim Lee mentioned that three years ago, the majority of ongoing cryptocurrency investigations (over 90%) were related to money laundering. However, in the past year, approximately half of the digital asset investigations are related to taxes/tax evasion. According to the latest annual report covering October 1, 2022, to September 30, 2023, these investigations cover a range of issues, including taxpayers failing to report capital gains or income from mining activities, intentional non-disclosure of the amount of cryptocurrency held by individuals, and more.

Policies

▌Norman Chan: Second Tokenized Green Bond Expected in the Next Few Months

Norman Chan, the Chief Executive of the Hong Kong Monetary Authority, stated that they will continue to work on opportunities in mainland China, green finance, and financial technology in the coming years. During his speech at the Hong Kong Economic Summit, Chan mentioned that in February next year, the Monetary Authority and the government will host the “Green Finance Week,” which includes the Global Climate Business Forum, jointly organized with the International Finance Corporation under the World Bank, to gather global experts to discuss the transition to green finance. They will also hold a roundtable conference with the International Monetary Fund (IMF) to discuss blended finance, and several financial institutions will organize green finance events. Chan noted that Hong Kong’s green bonds and green loans have increased from $11 billion two years ago to over $80 billion, and he believes the momentum will continue with plenty of room for further expansion. Chan also mentioned that green finance can go hand-in-hand with fintech, and they expect to launch the second tokenized green bond in the next few months. The entire process, including redemption, will be conducted on the blockchain, and they are considering incorporating the Internet of Things (IoT) to let investors know the progress of green bond projects and reduce “greenwashing.” He also highlighted that Hong Kong is recognized as being at the forefront of central bank digital currency projects, and they reiterate their plan to launch the “Minimum Viable Product” (MVP) for the multiple central bank digital currency cross-border network (mBridge) project in the first half of next year. They hope that more central banks will join after the introduction of the product. As for the retail-level digital Hong Kong dollar, further research will be conducted with financial institutions next year. He also mentioned that if Hong Kong banks fully digitize, it will not only enhance their competitiveness within the region but also bring many opportunities for startups.

▌Singapore and China Strengthen Digital Financial and Capital Market Cooperation, Including Cross-Border Pilot of Digital RMB

The Monetary Authority of Singapore (MAS) announced new initiatives in digital finance and capital markets today to expand financial cooperation with China. These initiatives include a cross-border pilot of digital RMB between China and Singapore. After the MAS and the Digital Currency Institute of the People’s Bank of China (PBCDCI) signed a Memorandum of Understanding (MOU) for digital financial cooperation in 2020, the MAS and PBCDCI are now conducting the pilot, allowing travelers from both countries to use digital RMB for tourism consumption in Singapore and China. They are also launching the Exchange-Traded Fund (ETF) Connect between the Singapore Exchange (SGX) and the Shanghai Stock Exchange (SSE). Following the successful launch of ETF Connect between SGX and the Shenzhen Stock Exchange (SZSE) in the 18th Joint Council for Bilateral Cooperation (JCBC) in 2022, SGX and SSE signed a memorandum of understanding in May 2023 to establish the ETF Connect. Local Singaporean banks and China UnionPay International have also begun early-stage feasibility discussions on the potential remittance links between Singapore LianGuaiyNow and UnionPay Travel Pass with the legal and regulatory frameworks of various jurisdictions. This connection can facilitate secure, convenient, and cost-effective cross-border payments and remittances between the two countries.

▌Crypto.com Authorized by UK FCA as Electronic Money Institution

Crypto.com announced that it has been authorized by the UK Financial Conduct Authority (FCA) as an Electronic Money Institution (EMI). Prior to this approval, Crypto.com registered with the FCA in August 2022 as a crypto asset business. With the EMI authorization, Crypto.com will offer a suite of UK-localized electronic currency products.

▌Congresswoman Waters Calls for Meeting on Crypto-related Issues

Congresswoman Maxine Waters has called for a meeting among US lawmakers to discuss crypto-related issues. She hopes that lawmakers will conduct deeper research on companies operating in the industry and explore how to regulate them. She stated, “I want to try to organize a congressional working group so that we can ask more questions and be more involved in some of the actual assets of these companies.” During the hearing, Waters inquired about the possibility of holding a meeting with members of Congress and asked the SEC if they would consider having some “special meetings” to discuss potential issues and pitfalls and provide information.

▌Japanese Government Considers Exempting Companies Holding Cryptocurrencies from Unrealized Capital Gains Tax

According to Nikkei Asia, lawmakers from Japan’s ruling party, the Liberal Democratic Party, and its coalition partner, New Komeito LianGuairty, are currently discussing a tax reform bill that would exempt Japanese companies from paying taxes on unrealized profits from holding virtual assets. The proposal is expected to be included in the tax reform plan for the fiscal year 2024, which is set to be released this month. Specifically, this reform would exempt companies holding cryptocurrencies for purposes other than short-term trading. In such cases, the value of the held cryptocurrencies by the company would be evaluated based on the market price at the end of the fiscal year, and corporate tax would be exempted. Nikkei Asia describes this move by the Japanese government as “aimed at bringing back start-ups that have flowed to crypto-friendly countries like Singapore, Dubai, and Switzerland due to the tax environment.”

Blockchain Applications

▌Cosmos Proposes “Allocation of 900,000 ATOM as Liquidity Held by the Cosmos Hub Protocol in the Osmosis stATOM/ATOM Pool” Vote

Voting has begun on Cosmos Hub Proposal 858, which suggests “allocation of 900,000 ATOM as liquidity held by the Cosmos Hub protocol in the Osmosis stATOM/ATOM pool.” The proposal aims to increase liquidity for ATOM by distributing 900,000 ATOM to the stATOM/ATOM pool. The proposal suggests allocating 90% of the funds to the static liquidity position in Osmosis and 10% to the upcoming stATOM/ATOM Dynamic S+ vault by Quasar for long-term benefits. The aforementioned LP’ing strategy will bring income based on exchange fees to the Cosmos Hub community pool. Currently, the approval voting rate for the proposal is 67.1%, and the disapproval voting rate is 6.0%. The voting will conclude on December 17.

▌Forbes Launches Web3 Experience and Community Center ForbesWeb3

According to official account news on X, Forbes has launched ForbesWeb3. It is described as an experience and community center created for Web3 entrepreneurs, creators, and innovators from all over the world. The publication states that Forbes has been at the forefront of supporting entrepreneurs and success since 1917. Forbes has been reporting on Web3 for nearly a decade and has published some interesting content in the process. ForbesWeb3 is different from any community and is nurturing a network for Web3 practitioners, providing enhanced benefits and opportunities to help write the next chapter.

▌Coinbase and Sound.xyz join forces to enter the music market

Web3 music NFT platform Sound.xyz has announced a collaboration with cryptocurrency exchange Coinbase to help artists increase exposure, monetize their artwork, and direct most of the minting fees to art to enhance their income. Participants can earn OP tokens as rewards. It is reported that the first music exploration event will collaborate with Sara Phillips, Annika Rose, Xcelencia, Beachcrimes, and TK. Participants need to access the Coinbase wallet on their mobile devices and follow the prompts to collect and mint music track NFTs to earn rewards.

▌DWF Labs launches 2024 Angel Investment Program, focusing on GameFi, SocialFi, and other sectors

DWF Labs co-founder Andrei Grachev announced on social media the launch of the 2024 Angel Investment Program, with a focus on GameFi, SocialFi, Meme, RWA, derivatives, and innovative DeFi solutions.

▌Cosmos-based blockchain Neutron acquires 25% stake in Confio

The Cosmos-based blockchain Neutron has acquired a 25% stake in Confio, a software company known for developing CosmWasm. This investment and strategic partnership aim to increase the adoption of CosmWasm and coordinate the development strategies of Neutron and Confio. Neutron has not disclosed the investment amount.

▌IBM launches new encrypted asset cold storage technology “OSO”

IBM has introduced a new encryption signature technology called IBM Hyper Protect Offline Signing Orchestrator (OSO), designed to deal with digital assets in cold storage, reduce risks associated with manual procedures, and keep assets at a certain distance from the internet. OSO helps protect high-value transactions by providing additional security layers, including network disconnection operations, time-based security, and electronic transaction approval by multiple stakeholders. Metaco, a custody company under Ripple, a long-term partner of IBM in the cryptocurrency field, is using the new OSO technology.

▌South Korean chain supermarket Emart: Next-generation ATMs will have cryptocurrency and STO trading capabilities

Emart, the largest retailer and chain supermarket in South Korea, has announced that its next-generation ATMs will soon have cryptocurrency and Security Token Offering (STO) trading capabilities. Emart’s convenience store brand Emart24 has installed new “crypto ATMs” in branches in Myeongdong and Samseong district in Seoul. These machines mainly target foreign tourists and have foreign currency exchange capabilities. Lee Jong-wan, head of Emart24 service platform department, explained that the two-factor authentication (2FA) function of the ATMs is groundbreaking, and the 2FA function of this digital ATM means that we can expand the possibilities of services it offers in the future. In the future, it may support options including cryptocurrency trading and STO trading.

Cryptocurrencies

▌Bitcoin Miners’ Income Reaches New Annual High of $1.16 Billion in November

In November, Bitcoin miners’ income reached $1.16 billion, setting a new high for the year. This number surpasses the peak reached in May 2023, when the total income was $919.22 million, including $125.92 million in fees. Additionally, the number of Bitcoin transactions processed in November slightly increased compared to May, with a total of 16.42 million transactions, slightly higher than the 16.30 million transactions in May.

▌Data: Blur’s NFT Marketplace Accounts for Nearly 80% of NFT Trading Volume

According to The Block’s data dashboard, Blur’s NFT marketplace currently accounts for nearly 80% of NFT trading volume. In just four days into December, the NFT trading volume for the month has reached nearly $90 million, with nearly $70 million coming from transactions on the Blur NFT marketplace. Since February of this year, there has been a significant shift in market share in the NFT space from OpenSea to Blur, with the latter now dominating nearly 80% of the total trading volume in the Ethereum-based NFT market. OpenSea, which once held a dominant position, has gradually reduced its market share and currently accounts for only about 17% of NFT trading volume.

▌Highest Number of Addresses Holding over 0.01 BTC

Data shows that the number of Bitcoin addresses holding more than 0.01 BTC has reached a historical high of 12.54 million.

▌Bonk, Based on Solana Blockchain, Becomes the Third-Largest Dog-Themed Token

Since Sunday, Bonk has surged over 70% and has become the third-largest dog-themed token, following Dogecoin (DOGE) and Shiba Inu (SHIB). Currently, its market value of $500 million is higher than Floki’s $400 million and BabyDogeCoin’s $350 million. Bonk was launched on the Solana blockchain in December last year.

▌Bitcoin Core Developer: Ordinals Are Just a Scam

X (formerly Twitter) user “Web 390” posted a question about Ordinals: “If you have 10,001 sat in your wallet and only 1 of them is a so-called rare sat, why don’t you send the rare one when you send 10,000 sat? How do you choose which sat to send?” In response, Bitcoin Core developer Luke Dashjr replied, “There is no such thing, Ordinals are just a scam.”

▌Meanwhile, Backed by Sam Altman, Launches Bitcoin Private Credit Fund with Aim to Raise $100 Million

Meanwhile Group, a crypto startup backed by Sam Altman, is seeking to raise $100 million for its Bitcoin Private Credit Fund. The fund, called Meanwhile Private Credit Fund LP, is launched by Meanwhile’s investment management subsidiary Meanwhile Advisors and aims to provide institutional investors with Bitcoin investment opportunities, targeting a 5% Bitcoin-denominated yield. The fundraise is expected to be completed by the end of the first quarter of 2024. It is worth noting that Meanwhile Group announced raising $20 million in seed funding in June, led by Sam Altman, Lachy Groom, and Gradient Ventures (Google).

▌Kraken Strategy Director: Halving, Fed Rate Cuts, and ETF to Bring “Perfect Storm” for Investors

Kraken Strategy Director Thomas Perfumo stated that the next Bitcoin halving is expected to take place in April 2024, while the Fed may adjust its policies and US spot ETFs may be approved for listing. Against this backdrop, investors may experience a “perfect storm.” Perfumo said, “If history repeats itself, you often see the rise of smart contract platforms, followed by applications like dapps that are more affected by higher volatility (smaller market cap assets). The Bitcoin rebound will drive Ethereum, Solana, and some other altcoins into a sector rotation phase.”

Important Economic Developments

▌Spot Gold Surges Over $60 after Opening, Hits a Historical High of $2133

Boosted by weak US economic data and dovish comments from Federal Reserve officials, spot gold opened with a surge of over $60, peaking at $2133 per ounce, with an intraday gain of over 3%, reaching a historical high. Analyst Eamonn Sheridan of financial website Forexlive stated that this is because the market’s prospects for future Fed rate cuts are stimulating investors to buy gold in large quantities, and investors are currently betting that the Fed will cut rates early next year.

▌BlackRock Chief Investment Officer: Fed Rate Hike Cycle Has Ended

According to CNBC, BlackRock Chief Investment Officer Rick Rieder stated that the Federal Reserve rate hike cycle has ended.

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

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