🔮 tfBILL Launches, PayPal Shows Red Flags, Binance Gets Licensed, OlympusDAO Knocks Three Times

Adapt3r Digital, an affiliate of MJL Capital, is excited to announce the Adapt3r Short-Term U.S. Treasury Bill Fund ("ADAPT I LP" or "tfBILL"). With $123 billion in stablecoins outstanding on-chain today, we saw the need to offer compliant access to simple, liquid fixed-income products. Given the anticipation of sustained elevated levels of the federal funds rate, short-term Treasury Bills remain an attractive avenue for Web3 investors. tfBILL enables large holders of stablecoins to earn low-risk yields, extend operational runway, and diversify into stable assets. We believe this will lead to a stronger foundation for the decentralized economy and enable new products that bridge the gap to the traditional system.

Token Specific News

My New Pal Has Some Red Flags

PayPal recently introduced a new stablecoin named PYUSD, generating significant interest in the crypto community. However, subsequent scrutiny by developers has revealed concerns with the token's code: it is based on an outdated version of Solidity, grants the owner the power to freeze accounts, erase funds, pause transfers, and increase token supply at will. These issues have led to a change in sentiment toward the stablecoin. Despite being labeled a stablecoin, its attributes resemble those of a centralized company digital currency (CCDC) rather than a truly decentralized one. This situation underscores the importance of thoroughly assessing smart contract functionalities before embracing new tokens. Not to mention: PayPal Stablecoin Launch Sparks Wave of Fake PYUSD Tokens and if you need more: Rep. Maxine Waters (D-Calif.) said Wednesday she’s “deeply concerned that payments giant PayPal (PYPL) is launching its own stablecoin without federal rules for stablecoins in place

Halve You Started To Get Excited?

Litecoin recently underwent its third halving, prompting discussions about Bitcoin's upcoming fourth halving expected in April 2024. Halvings, programmed events in Bitcoin's blockchain design, cut miner rewards in half to decrease coin supply growth. This scarcity, coupled with mining difficulty increases, impacts Bitcoin forks like Litecoin. The 2024 halving will reduce Bitcoin's block reward from 6.25 BTC to 3.125 BTC. Historically, Bitcoin has surged after previous halvings, but uncertainties arise due to significant developments since 2020. Bitcoin's evolution from niche curiosity to global phenomenon amidst macroeconomic events, regulatory scrutiny, and institutional involvement has reshaped its landscape. Despite extreme price volatility, Bitcoin has maintained its price range, and miners now face potential challenges due to halving effects on profitability, requiring significant price increases to offset.

Source: Coingecko

CyberConnect's User Trends: From Cryptic to Committed

Amid concerns about privacy and data on conventional Web2 social platforms, there's a growing demand for decentralized alternatives. In this evolving landscape of social connectivity, CyberConnect has risen to prominence with over a million users. The sustainability of platforms like CyberConnect relies on three key factors: establishing robust infrastructure, effective user acquisition, and crafting engaging applications that retain users' interest. With its recent V3 update, CyberConnect aims to bolster its infrastructure, fostering app development and attracting more users. However, for sustained success, CyberConnect needs not only to attract a diverse user base but also to provide them with compelling reasons to engage, remain active, and contribute to its ecosystem.

Source: Messari

Touching Home Base

Coinbase's Layer 2 network, known as Base, has been made accessible to the public, attracting more than 100 dApps, $142M already on its network, ade $242,000 from fees over the last 24/~$20M in trading volume over the last 24 hours, and ~140K active users. The "Onchain Summer" initiative seeks to involve users through engagement rather than airdrops. This release highlights the rising significance of Layer 2 solutions within the cryptocurrency realm, contributing to the competitive landscape of Ethereum scaling. Despite its launch, Base's progress has encountered challenges and disputes. See similar: Base is 'permissionless,' says Coinbase's Jesse Pollak .See similar: Tokenized Coinbase Stocks Are Coming to Polygon Thanks to Backed Finance

Don't Let Me DAOn (3,3)

OlympusDAO, once marked by the meme "(3,3)" during the crypto bull market, has seen its market value plummet by over 95% to $190 million from a peak of $4.3 billion. The project is introducing "Cooler Loans," allowing users to borrow 95% of their OHM tokens' value at an exceptionally low interest rate of 0.5%. This shift has raised concerns about the project's viability, as it diverges from its original goal of creating a crypto-native reserve currency. While OlympusDAO has introduced innovative ideas like Range Bound Stability and Boosted Liquidity Vaults, its reputation suffered due to market decline. Despite this, the project continues to develop, aiming for on-chain governance, liquidity migration to Uniswap V3, and the launch of Cooler Loans later this month.

Source: CoinGecko

Microsoft, Aptos Labs Team Up

Aptos Labs, the blockchain initiative founded by former Meta (formerly Facebook) employees, has partnered with Microsoft to leverage its AI technology for various purposes. The partnership will explore innovative solutions in asset tokenization, digital payments, and central bank digital currencies. Aptos will also use Microsoft's Azure OpenAI Service to develop tools like Aptos Assistant, a user-friendly digital assistant that can provide information about the Aptos blockchain. The collaboration aims to combine AI and blockchain technologies to democratize the use of blockchain and facilitate onboarding to web3. The partnership reflects the growing convergence of AI and blockchain as transformative technologies, enabling broader accessibility and fostering the development of decentralized applications.

Regulation

U.K. Will Implement New Rules to Support Sunak's Crypto Ambitions

Rishi Sunak, formerly the head of the UK's Treasury, initially aimed to establish the country as a global crypto hub with plans such as tax breaks on crypto investments and regulated stablecoins. However, after becoming prime minister, his focus shifted, and the crypto agenda largely fell to Parliament. In response, Parliament moved swiftly, incorporating crypto within financial services regulations through the Financial Services and Markets Act of 2023, which aims to foster a technologically advanced financial sector. The Act empowers regulatory bodies like the Financial Conduct Authority (FCA) to oversee cryptoassets and encourages technological adoption through "sandboxes." The FCA also imposes strict cryptocurrency marketing rules starting October 8, 2023. While a decision on a digital pound isn't expected until 2025 or later, Bank of England's Sarah Breeden, formerly on the CBDC task force, has been appointed the UK deputy governor for monetary policies and financial stability. See similar: UK mulls granting Bank of England more power in stablecoin regulation

FED Up With Crypto Banking

The U.S. Federal Reserve has introduced a program aimed at overseeing crypto-related operations within banks, encompassing partnerships with non-banks, crypto asset custody and trading, and regulations concerning engagement with stablecoins. This development signifies a notable regulatory pivot, acknowledging the increasing integration of cryptocurrency into traditional banking systems. The response to this move varies: while some consider it a potential impediment to innovation, others regard it as a constructive stride towards facilitating mainstream adoption of cryptocurrencies.

Not Very Appealing

The U.S. Securities and Exchange Commission (SEC) plans to appeal a section of the Ripple Labs case ruling, specifically the part that concluded programmatic sales of XRP on crypto trading platforms didn't breach securities regulations. Ripple faced a lawsuit for selling over $10 billion of XRP on secondary markets and to qualified investors, with the latter found in violation. The SEC's "interlocutory appeal" seeks to address this ruling and might also impact the related lawsuit against Terraform Labs, potentially avoiding a trial. Similarly, in a motion to dismiss the lawsuit brought by the U.S. Securities and Exchange Commission (SEC), Coinbase apparently “backpedaled” on a lifetime of saying crypto is the future of finance. The document was submitted on Aug. 4, 2023 but seemingly only recently has caught attention.

Binance Secures Crypto Exchange License in El Salvador

El Salvador's central bank and crypto regulator have granted Binance licenses to operate in the country, marking a significant development for the exchange. The Bitcoin Services Provider License (BSP) and Digital Assets Services Provider license (DASP) enable Binance to offer custodial services, process crypto payments, provide digital wallets, and operate a digital asset exchange platform within El Salvador. This move is aligned with El Salvador's pro-crypto stance, as the country recognized Bitcoin as legal tender in 2021. While Binance's expansion plans include acquiring local permissions in key international markets, the exchange has faced challenges and regulatory setbacks in various regions, including Europe. Despite these obstacles, Binance has secured licenses in 18 jurisdictions globally, seeking to navigate the evolving regulatory landscape. See similar: Binance is applying to get registered in Taiwan for AML compliance: sources See similar: Blockchain.com obtains major payment institution license in Singapore More Binance?: Binance is set to introduce its opBNB Layer 2 network, a feature of BNB Chain, in the upcoming month. opBNB utilizes Optimism's open-source technology stack to provide optimistic rollups based on the BNB Chain. This strategic move aims to enhance BNB Chain's competitiveness in comparison to Ethereum's expanding scaling ecosystem. Ethereum's Layer 2 solutions have impacted the market share of cost-effective Layer 1 networks like BNB Chain since 2022, making this development a crucial step in maintaining competitiveness.

Source: Coingecko

Other Domestic Regulation Updates

• DoJ will still argue campaign finance charges against Sam Bankman-Fried
• Coinbase launches nonprofit to advance crypto legislation
• Sen. Lummis joins call to dismiss the SEC's case against Coinbase
• Hedera Hashgraph’s HBAR token took the lead among major cryptocurrencies on Monday after the U.S. Federal Reserve’s FedNow added a Hedera Hashgraph-based micropayments platform, Dropp, as a service provider
• Gemini lawsuit is filled with ‘misrepresentations,’ DCG claims in motion to dismiss
• Galaxy CEO: Crypto headwinds dissipating with bitcoin ETF plans, Ripple ruling
• Sen. Lummis joins call to dismiss the SEC's case against Coinbase
• Seven Major Asset Managers File Ethereum ETF Applications

Other International Regulation Updates

• Singapore Financial Regulator Issues Key Requirements for Stablecoin Issuers
• DeFiance Capital’s $140 million dispute with 3AC liquidators will be heard in Singapore
• Bank of Italy Taps Polygon for Institutional DeFi Pilot
• Jacobi Asset Management Launch Europe's First Bitcoin ETF
• India Publishes Its Input Ahead of G20 Global Rulemaking Session
• Kenyan Government Suspends Worldcoin Activities

Pain & Gain

Pain

• Galaxy’s trading revenue plummets 54% 
• After the Curve Attack: What's Next for DeFi?
• Crypto market maker GSR scales back, CFO and other top executives depart
• Goldfinch Writes Down Failed $5M Loan To Kenyan Taxi Financier
• Yield Guild Games Token Halves In A Day After 500% Rally

Gain

• Tokenized Coinbase Stocks Are Coming to Polygon Thanks to Backed Finance
• Visa Trials Ethereum Gas Fee Payments Using Cards
• Shiba Inu Aims to Become a DeFi Contender by Offering Digital IDs
• MakerDAO Jacks DAI Savings Rate To 8% For Spark Protocol Users
• MakerDAO Attracts $700M In Deposits After Hiking DAI Savings Rate
• DeFi Lender Alchemix Says Vyper Hacker Returned Stolen Crypto

• Coinbase to partially buy back $1 billion bonds at a premium

• DeFi Lender Alchemix Says Vyper Hacker Returned Stolen Crypto
• MakerDAO Jacks DAI Savings Rate To 8% For Spark Protocol Users