🔮BRC-69, Proto-Danksharding, Volume, Binance Secures Its Spot

Token Specific News

New Bitcoin Standard BRC-69 Removes Data Limit for Ordinals

A new token standard called BRC-69 has been launched for Bitcoin Ordinals, which are often considered Bitcoin's version of NFTs. Ordinals previously had a 4-megabyte limit on inscriptions, but the BRC-69 standard introduces "recursive inscriptions" that allow users to extract data from existing inscriptions and use them to create new ones. This aims to bypass the limit and reduce the cost of making inscriptions by over 90%. The simplicity and potential of BRC-69 have been praised, with proponents highlighting its ability to render images on-chain using recursive inscriptions. This development is seen as a significant moment in Bitcoin's history, as it expands the possibilities and utility of the blockchain.

Source: Dune

Dumb Name, Interesting Product... Proto-Danksharding and Why it Matters

Core developer Mario Havel believes that the upcoming Ethereum upgrade, known as "Dencun," will bring significant positive changes to the network. One of the major enhancements is the introduction of proto-danksharding, a feature that aims to scale Ethereum and enable it to process up to 100,000 transactions per second. The focus of the upgrade is on implementing EIP-4844, which introduces a new transaction type called "data blob" and lays the foundation for data sharding. The data blobs utilize KZG commitments, allowing for efficient access to information required for layer-2 scaling solutions like Optimism and Arbitrum. The blobs store data for a limited time and don't directly interact with the Ethereum Virtual Machine (EVM), making data management more efficient and cost-effective. The proto-danksharding upgrade is nearing its final planning stages.

Centralization At Stake?

Liquid staking, the practice of staking cryptocurrencies while maintaining liquidity, has rapidly gained popularity in the Ethereum ecosystem. However, dominant protocols like Lido have introduced a form of delegated proof-of-stake, deviating from Ethereum's initial goal of having individual solo-stakers. Centralized exchange services offering staking became an attractive option due to the barriers and technical challenges of becoming validators. Lido emerged as a solution to prevent centralization risk but has now become dominant in the liquid staking market, raising concerns about centralized control. Similarly, projects like Rocket Pool have faced criticism for centralization in their governance structures, leading to calls for fully decentralized models and on-chain governance development. See similar: Does Ethereum Still Have a Cartel? Glassnode Unpacks Skyrocketing Staking See similar: Value Locked in Solana's Liquid Staking Protocols Surged by 91% in the First Half of the Year

Source: Dune

Roll-up, Go Forward

The convergence of optimistic and zero-knowledge (zk) solutions in the rollup scaling space is a significant development. Optimistic rollups assume transaction validity by default and rely on fraud proofs, while zk-rollups validate transactions before submission using validity proofs. While optimistic rollups have an early-mover advantage, zk-rollups offer stronger security guarantees and lower latency. However, zk-rollups are more costly to develop and implement. Projects are exploring hybrid solutions that combine the strengths of both approaches. Notable projects include Polymer, Sovereign SDK Zk-Optimistic Sovereign Rollups, Optimism's request for proposal (RFP) for a zkp for the OP Stack, and Layer N. As zk-proving systems mature, they may surpass optimistic systems in scalability, but both approaches are likely to coexist and find ways to benefit from each other.

Source: Messari

Crypto Trading Volumes Rise for First Time in 3 Months Amid ETF Optimism

In June, crypto trading volumes saw a 14% increase, marking the first monthly rise in three months. The combined spot and derivative trading volumes on centralized exchanges reached $2.71 trillion, driven by optimism surrounding the filing of spot bitcoin exchange-traded fund (ETF) proposals by major institutions like BlackRock and Fidelity. The derivatives market accounted for 78.7% of the crypto market, while the spot trading volume remained historically low. Additionally, the Chicago Mercantile Exchange (CME) experienced a 23.6% increase in total derivatives volume traded in June. See similar: Former SEC Chair Jay Clayton said that applicants for a spot bitcoin ETF have a strong chance of approval if they can demonstrate it's a more efficient way for investors to access the digital asset.

Regulation

Being 6 foot 5, 220 with two of you doesn't always help: Gemini’s Winkleboyz demands $1.47 billion

Cameron Winklevoss, co-founder of Gemini exchange, has given a "final offer" to Barry Silbert, founder of Digital Currency Group (DCG), to repay a total debt of $1.46 billion or face a lawsuit. Winklevoss demanded DCG to make payments totaling $1.465 billion, including a $630 million payment due in May. If Silbert does not agree to the deal by July 6, Gemini plans to file a lawsuit against DCG and Silbert on July 7. The dispute stems from Gemini's lending of customer funds to Genesis Global, owned by DCG, as part of its retail Earn program. Genesis Global filed for Chapter 11 bankruptcy in January, and DCG missed a $630 million payment to Genesis in May.

93% of banks exploring potential CBDC: Bank of International Settlements

Central banks' interest in exploring central bank digital currencies (CBDCs) has reached 93%, according to a Bank for International Settlements (BIS) survey. While 86 banks responded to the survey, a separate study by the Atlantic Council found that around 130 countries are actively exploring CBDCs. The BIS survey also revealed that 18% of respondents are considering issuing a CBDC within the next three years, but 68% consider it unlikely in the near future. The survey highlighted a divergence among central banks, with some becoming more likely to issue a retail CBDC and others less likely. The BIS expects 15 retail CBDCs and nine wholesale CBDCs to be launched by the end of the decade. The volatility of crypto assets, as evidenced by events such as the collapses of TerraUSD and FTX, has further accelerated the interest in CBDCs, with 60% of central banks attributing their work on CBDCs to the emergence of stablecoins and other crypto assets. See similar: UK to Exclude 'Unbacked’ Cryptocurrencies From Digital Securities Sandbox Initiative

Prometheum Dumps Crypto Advocacy Group, Embraces SEC's Regulatory Love Affair

Prometheum has left the Chamber of Digital Commerce due to differences in their approach to crypto regulation. While the Chamber advocates for further regulatory clarity, Prometheum believes that the SEC has already provided sufficient guidelines for compliance. Although Prometheum announced the launch of an alternative trading system in October 2022, it has not yet officially launched, and no tokens are currently traded on its platform. The company faces challenges in offering trading for most crypto tokens, as they are considered unregistered securities by the SEC. This issue is also faced by regulated exchanges like Robinhood, as demonstrated by recent delistings of certain tokens.

Source: Coinglass

Death and Taxes

Kraken has been ordered by the courts to provide the IRS with account and transaction information. The IRS sought this data to investigate potential tax underreporting by Kraken users. As per the court order, Kraken must disclose information for users who transacted with over $20,000 in a calendar year, including their names, birthdates, taxpayer identification numbers, addresses, phone numbers, email addresses, and other relevant documents. However, it seems that the judge overseeing the case rejected the IRS's request for employment information and the source of wealth from Kraken.

I'm Starting to Fink ETFs Could Work

The Nasdaq exchange has refiled its application to list BlackRock's proposed bitcoin exchange-traded fund (ETF), following feedback from U.S. securities regulators. The refiling now includes Coinbase as the market that will be monitored in a surveillance-sharing agreement, which helps guard against market manipulation. This move follows similar updates made by other pending ETF applications, including Fidelity, which named Coinbase as the surveillance-sharing partner. The original filing did not specify the partner exchange. The Securities Exchange Commission (SEC) had reportedly informed Nasdaq and Cboe that their initial ETF applications were "inadequate" without the name of the surveillance-sharing partner. The inclusion of Coinbase is seen as a strengthening measure to increase the chances of approval by the SEC. BlackRock CEO Larry Fink has expressed support for crypto, stating that bitcoin could revolutionize finance and serve as an alternative asset. See similar: Nasdaq has submitted a filing for Valkyrie's proposed spot bitcoin ETF — a fund initially proposed last month

Binance's Bridge Bonanza

Binance has suspended deposits and withdrawals for ten Multichain-bridged tokens due to issues with the Multichain protocol. The tokens can still be withdrawn through other supported networks. The problems with Multichain's cross-chain bridge began when users reported stuck transfers, and rumors circulated about the arrest of Multichain executives, including the CEO. Multichain confirmed the CEO's absence and his sole access to the servers responsible for the delays. Although the fate of the CEO remains unknown, there were indications that Multichain partially resumed operations. Cross-chain bridges have faced criticism for their vulnerabilities, with Ethereum co-founder Vitalik Buterin advising against relying on them and suggesting holding assets on their native chains. Cross-chain bridges have also been targeted by hackers, with Multichain losing $3 million and Axie Infinity losing $622 million. See more: Multichain urgently cautioned its users to refrain from using its cross-chain bridging platform after a mysterious transfer of $126 million in crypto assets to various wallets. See similar: Binance European Banking Partner Will Terminate Relationship

Other Domestic Regulation Updates

CFTC Investigation of Celsius

‘SEC investigation’ leads Ethereum DeFi protocol BarnBridge to order halt

Other International Regulation Updates

Saxo Bank instructed to sell crypto holdings by Danish regulator

Terraform co-founder faces trial in South Korea

Belarus plans to issue legislation banning peer-to-peer (P2P) crypto transactions to reduce fraud

Binance Australia Says It’s ‘Cooperating’ With Authorities Amid Regulatory Scrutiny

UK Officially Classifies Crypto as a Regulated Financial Activity

South Korea Passes Inaugural Crypto Bill

Singapore Securities Regulator to Require VASPs to Keep Customer Assets in a Trust

EU Banking Watchdog Issues Stablecoin Guidance, Urges Compliance Ahead of MiCA

Pain & Gain

Pain

Canadian Police Say Investigation Into Crypto Crime Involving Coinbase 'Did Not Occur'

Gutter Cat Gang Twitter Hacked, At Least $750K Worth of NFTs Swiped

Crypto has 3 months to clean up UK ads — or face jail and ‘unlimited’ fines

Sega exec ices blockchain gaming plans, calls play-to-earn ‘boring’

Gain

ATM Provider Bitcoin Depot Launches on Nasdaq

Sound Raises $20 Million, Opens Music NFT Platform to All Artists

Bitcoin Hash Rate Hits New All-Time High Amid Stagnating Prices

Institutions are turning pro-crypto because of demand, not because they believe in it

Credit Suisse issues Ethereum NFTs to raise funds for women’s football

NEAR Foundation Partners With Alibaba Cloud on Developer Tools

Warner Partners With Polygon on Accelerator for Music Projects