Cryptocurrency exchange Coinbase is acquiring a minority stake in Circle Internet Financial, dissolving their partnership and bringing the stablecoin USD Coin fully in-house, while also adding native support for USDC on six additional blockchains, bringing the total to 15.
The decentralized finance (DeFi) landscape is experiencing a significant loss of Total Value Locked (TVL) across major blockchain networks, including Ethereum, Solana, and Cardano, causing unease in the crypto market, while the Base blockchain network shows unexpected growth in TVL.
Ethereum mixer Tornado Cash co-founders Roman Storm and Roman Semenov have been charged with money laundering over $1 billion in criminal proceeds, while FTX-affiliated Farmington State Bank has been shut down for attempting to create a stablecoin without proper approval. Prime Trust has filed for bankruptcy after losing $6 million of customer money in Terra-Luna gambling, and Binance has lost its UK payment processor Checkout.com over money laundering concerns. Furthermore, Sam Bankman-Fried plans to blame FTX's lawyers for his decision-making in his legal defense. The SEC has sued Titan for promising unrealistic investment returns, Coinbase has suspended certain stablecoins for Canadian users, and the Centre consortium that issued the USDC stablecoin is being dissolved.
The past week in DeFi saw the developers behind Base and Optimism protocols collaborate on a revenue and governance sharing framework, while evidence emerged regarding the $1.5 billion Multichain hack and victims search for answers, and blockchain security provider Quantstamp introduced a new DeFi tool to detect flash loan attack vulnerabilities. Additionally, Shiba Inu's Ethereum layer 2, Shibarium, is preparing for a relaunch, and the DeFi market experienced a minor dip in total value locked.
Decentralized finance (DeFi) has been heavily impacted by the crypto bear market, with the total value locked in DeFi reaching its lowest point since February 2021, as investors withdraw approximately $170 billion in deposits due to decreased yields and increased exploits. However, newer protocols like Unibot are attempting to simplify the DeFi experience and show promising signs for reigniting the DeFi space.
Coinbase CEO Brian Armstrong shared ten emerging ideas in the cryptocurrency space that excite him, including the creation of a CPI-linked stablecoin, on-chain reputation systems, on-chain advertising, and decentralized labor markets.
Hackers have targeted decentralized finance (DeFi) protocols almost 500 times since 2019, stealing a total of $6 billion, highlighting the vulnerabilities of the smart contracts that underpin DeFi platforms. The recent surge in hacks, along with declining market share and increasing interest rates, has led to the closure of several platforms and calls for regulations to prevent money laundering and enhance security measures.
Ethereum staking services have agreed to limit all validators to 22% in order to ensure the decentralization of the Ethereum network, while DeFi hacks and exploits resulted in a loss of $16 million in August, including a nearly $900,000 exploit on Balancer protocol, and Shibarium's second launch saw over 100,000 new wallets added to the layer-2 protocol. Additionally, the USDC stablecoin is set to launch on Coinbase's layer-2 platform, and the DeFi market experienced a bearish decline in response to a delay in the approval of a Bitcoin spot ETF.
Binance CEO Changpeng "CZ" Zhao predicts that decentralized finance (DeFi) has the potential to surpass centralized finance (CeFi) in the next bull run, emphasizing the positive impact of regulatory clarity and the need for broader cryptocurrency adoption worldwide.
The Commodity Futures Trading Commission (CFTC) has charged Opyn, ZeroEx, and Deridex with illegally offering derivatives trading through decentralized finance (DeFi) operations, requiring them to pay penalties of $250,000, $200,000, and $100,000 respectively. The companies are accused of using blockchain-based protocols and smart contracts to function as trading platforms in violation of regulations.
Coinbase CEO Brian Armstrong discusses the company's base layer 2 blockchain network, interest in flatcoin, and the need for regulatory clarity in the crypto industry, suggesting that the courts, congress, and the CFTC could provide clarity and that there could be a new SEC chair in 2024.
The lack of clear crypto regulations in the US has caused significant issues for the industry, leading to collapses and a weakening of America's position as a financial hub, according to Coinbase CEO Brian Armstrong. He emphasizes the need for clear rules that recognize the innovation potential of the technology while protecting consumers. Armstrong also highlights the potential benefits of Bitcoin exchange-traded funds (ETFs) and Coinbase's role as custodian in many ETF applications.
Binance CEO predicts that DeFi will surpass centralized finance in the next bull run, while the US CFTC takes regulatory action against three DeFi protocols for alleged registration failures; a report from the Bank for International Settlements argues that pure DeFi has little use case in the real world due to the need for oracles; Binance is refunding $1 million to users over a token incident, and the Shiba Inu ecosystem's layer-2 network, Shibarium, has reached over one million wallets but has yet to impact the price of SHIB token.
Coinbase CEO Brian Armstrong predicts that cryptocurrencies will be a prominent topic in the 2024 US elections as the gap between current crypto policies and the needs of Americans becomes more apparent.
Coinbase CEO Brian Armstrong revealed in an interview that the exchange is interested in developing the next generation of stablecoins, including the concept of flatcoin, which would be backed by the Consumer Price Index (CPI) or purchasing power rather than a fiat currency.
Coinbase CEO Brian Armstrong confirms that the crypto exchange will integrate the Lightning Network, a move that will significantly speed up bitcoin transactions and make it a more viable payment option.
Ethereum co-founder Joseph Lubin believes that the U.S. Securities and Exchange Commission's dispute with crypto firms over whether crypto tokens are considered securities will be resolved in favor of the industry, stating that "clear heads will prevail." He also expressed confidence that decentralized protocols, blockchain, and cryptocurrency align with the philosophies of the U.S. and that other countries will follow suit.
Coinbase CEO Brian Armstrong urges the U.S. CFTC to avoid enforcement actions against decentralized finance (DeFi) protocols, stating that they should be resolved in court to set a precedent.
The concentration of assets in decentralized finance (DeFi) could pose a risk if stablecoins surpass the market capitalization of the native tokens of their underlying blockchains, creating a potential for double-spending and control by token holders, highlighting the need to rethink distributed ledger technology (DLT) architecture and explore alternatives to blockchain such as directed acyclic graphs (DAG).
Decentralized finance (DeFi) projects in the US face significant regulatory risk, according to Synthetix founder Kain Warwick, who believes that US regulators are neglecting the advantages of transparent and open infrastructure in financial markets and that it will be left to the courts to resolve these issues.
The U.S. Securities and Exchange Commission's head of the Crypto Assets and Cyber Unit, David Hirsch, announced that the agency will continue to pursue crypto exchanges and DeFi projects for violating securities laws, similar to Coinbase and Binance, stating that they have several other businesses on their radar; however, the SEC's current litigation load is heavy and they are limited in their capacity to take action against all entities.
The volatility in Bitcoin remains low, similar to the stability in US stock and bond markets, and is expected to continue after the Federal Reserve rate decision.
The filing from FTX's bankruptcy estate reveals that Sam Bankman-Fried's father, Joe Bankman, was paid a $200,000 salary by FTX's US division but expected to receive $1 million annually.
Binance's Bitcoin trading volumes have decreased significantly due to lawsuits and regulatory scrutiny, while Coinbase's volumes have increased.
TON coin has replaced Solana's SOL token as the 10th largest cryptocurrency by market capitalization.
Summary: Economic activity in the DeFi sector dropped by 15.5% in August, according to an analysis by investment management fund VanEck, while blockchain capital announced two new crypto-focused funds totaling $580 million, and Balancer protocol attributed its recent exploit to a vulnerability in its DNS service provider. Additionally, Chainlink and Arbitrum have partnered for decentralized application development, and the top 100 DeFi tokens experienced a bearish week.
Coinbase, the U.S. cryptocurrency exchange operator, may invest more elsewhere if the U.S. cannot get crypto regulation right, raising questions about whether the U.S. is still the primary hub for crypto innovation and development.
The prices of leading cryptocurrencies have stabilized, while the crypto-friendly game engine developer Unity issued an apology and promised to revise its controversial fee policy. Balancer, a DeFi liquidity protocol, was attacked and NFT royalties were accumulating on the decentralized social token platform Friend.tech. Additionally, a resurfaced video of Hal Finney talking about zero-knowledge proofs gained attention, Dogecoin surpassed Bitcoin in price stability, and Venezuelan authorities discovered inmates mining Bitcoin in a maximum security prison.
Coinbase CEO Brian Armstrong believes that the crypto industry needs to enhance its lobbying efforts before the 2024 elections in order to address the unfair regulatory environment faced by US-based crypto firms.
DeFi has become centralized, with stablecoins and real-world assets dominating the market, but crypto staking yields can bring decentralization back to the space by offering a viable alternative.
Decentralized finance (DeFi) derivatives ecosystem Avantis Labs has raised $4 million in a seed funding round led by Pantera Capital to grow its flagship product Avantis, a perpetual-trading and market-making protocol that aims to enable forex and commodities to be hedged and traded on-chain without the need for tokenization, with plans to expand its capabilities beyond perpetual trading to include options trading in the future.
Coinbase is leading a major lobbying effort in Washington D.C. to garner support for new regulations in the cryptocurrency industry.
Coinbase CEO Brian Armstrong criticizes JPMorgan Chase's decision to block crypto transactions at its U.K. digital banking subsidiary, calling for government regulation rather than banks de-platforming the industry.
Stablecoin issuer Circle Internet Financial has released Perimeter Protocol, an open-source smart contract codebase that allows for the development of tokenized credit markets, enabling various credit use cases such as invoice factoring, payroll advances, instant settlement, and credit trading for institutional investors. This move comes as the tokenization of real-world assets gains momentum, with tokenized assets predicted to grow to a $5 trillion market in the next five years. Circle aims to leverage the protocol to enhance the utility of its stablecoin USDC and Euro-pegged token EURC in decentralized finance (DeFi) credit platforms.
Despite tight liquidity and adverse macroeconomic conditions, several crypto startups have successfully raised significant capital, including Bubblemaps with $3.2 million for data visualization, CoinScan with $6.3 million for crypto analytics, Hinkal with $4.1 million for privacy in DeFi trading, and Mythic Protocol with $6.5 million for collaborative entertainment. Additionally, Blockchain Capital closed two new funds with $580 million to be deployed in crypto gaming and decentralized finance projects.
Decentralized social media platform Friend.tech, built on Coinbase's layer-2 protocol, has experienced significant growth in revenue and total value locked, proving critics wrong who predicted its failure.
The co-founder of Aptos believes that a universal identity application, stablecoins, and decentralized finance (DeFi) innovation are the key factors that could attract a billion new users to the digital assets space.
Coinbase, the top US crypto exchange, is focusing on international markets due to regulatory uncertainty in the US and aims to bring a billion people into crypto.
September became the biggest month for crypto exploits in DeFi, with over $300 million in losses, the popular DeFi lending protocol Yield announced its permanent closure by December, and Polygon co-founder Jaynti Kanani stepped down from his day-to-day roles at the firm, while decentralized autonomous organizations (DAOs) were praised for their potential in helping scientists find funding and community.
The chief content officer of CoinDesk, Michael Casey, discusses the future of cryptocurrency and the challenges facing the industry, including regulation and the need for decentralized systems to protect against fraud and manipulation by centralized entities. Despite recent setbacks, Casey remains optimistic about the potential of blockchain technology and the importance of creating a safer, more decentralized financial system.
Coinbase, the largest US crypto exchange, argues that a proposed IRS rule to define crypto brokers and regulate tax payments will threaten the industry and invade Americans' privacy.
The total amount of capital locked in decentralized finance (DeFi) protocols has dropped to its lowest point since February 2021 as traders seek higher yields and less risk in traditional finance products, leading to a decline in the DeFi sector during the ongoing cryptocurrency bear market.
Bitcoin has outperformed other cryptocurrencies due to traders anticipating the potential approval of spot-based exchange-traded funds (ETFs), according to Coinbase Institutional. Meanwhile, former Voyager Digital CEO Steve Ehrlich has been accused of fraud and misrepresenting customer protections, and the Ethereum mainnet's daily fee revenue has reached its lowest point since the DeFi boom of 2020.
