🔮 LayerZero Partners With Google, ETH's Update, Active Addresses Increase, FTX Flood

Token Specific News

LayerZero Taps Google Cloud Oracle For Message Verification

LayerZero, a cross-chain interoperability protocol, has integrated Google Cloud as a new "oracle" option for applications built on LayerZero. Google Cloud will replace the Polygon/Sequoia managed oracle as the default configuration for LayerZero applications. This integration aims to enhance security and verification capabilities for LayerZero's cross-chain messaging system. LayerZero is now one of the most mature cross-chain solutions in the market, with integrations with 34 networks and a large bug bounty program. This partnership with Google Cloud may lead to further developments in establishing connections between Ethereum and Solana networks, as well as the potential release of a LayerZero token.

Source: Messari

Coinbase's Base Blockchain Has More Friends Than You: The Social Surge in Crypto Transactions

Coinbase's layer 2 blockchain, Base, launched in August, has experienced a surge in daily transactions, reaching an all-time high of 1.88 million transactions. This surpasses its layer 2 competitors, Arbitrum and Optimism, combined, with 780,000 and 370,000 transactions, respectively. Notably, the increased activity on Base is not primarily driven by decentralized finance (DeFi) or non-fungible token (NFT) applications but rather by a new social application called FriendTech, a decentralized social network platform built on Base. FriendTech recorded its daily transactions also hitting an all-time high at 529,000, contributing significantly to Base's increased usage.

Source: IntoTheBlock

autoMATIC: Polygon Targets Q4 For MATIC Token Migration

Polygon has introduced the first set of Polygon Improvement Proposals (PIPs) for its upcoming Polygon 2.0 upgrade. These PIPs outline the initial phase of the upgrade, which includes token migration from MATIC to POL, making POL the native gas token for Polygon networks, establishing POL as the staking token, and launching the Polygon 2.0 staking layer. Polygon plans to roll out this phase in Q4 of this year if the community approves minimal changes to the proposals. The Polygon 2.0 upgrade aims to create an interconnected network of Layer 2 chains using zero-knowledge (ZK) technology. It will merge existing Polygon networks like PoS Chain and zkEVM to enhance technical capabilities and network scalability. Additionally, Polygon is implementing the new POL token to replace MATIC as the native gas and staking asset.

Holesky In One on The Merge Anniversary

Ethereum has celebrated the first anniversary of The Merge by launching a new testnet called Holesky (previously known as Holli). Holesky aims to enhance Ethereum's testing environment and went live at 10 a.m. ET. Testnets like Holesky run alongside the main network, enabling developers to test applications and fix bugs without affecting the mainnet. It becomes Ethereum's third testnet, joining Goerli and Sepolia. Given reports of Goerli potentially phasing out in the first half of 2024, Holesky's role could become increasingly important. Holesky provides around 1.6 billion testnet ether, making it easier for smart contract developers to access testnet ether compared to current test networks. The Merge upgrade, implemented on September 15th the previous year, transitioned Ethereum from a proof-of-work to a proof-of-stake consensus mechanism, improving its energy efficiency. Update: After starting its genesis epoch at 10 a.m. ET, the Holesky testnet encountered issues and could not attain slot proposals. The developers and client teams have agreed to schedule the testnet relaunch a week from now, according to Nethermind.

It's ZeroKnowledge Time

Messari discusses the innovative use of zero-knowledge (zk) proofs and coprocessors to enhance blockchain scalability. Zk proofs, known for their ability to verify transactions without revealing sensitive data, face computational challenges when implemented at scale. Zk-coprocessors, specialized hardware or software components, are introduced as a solution to expedite zk proof computation, significantly improving transaction processing speed and scalability within blockchain networks. This advancement offers the potential for reduced transaction fees, increased throughput, and support for complex smart contracts. While acknowledging challenges like specialized hardware requirements and centralization risks, the article emphasizes the importance of research and development in maximizing zk-coprocessors' potential to address blockchain scalability issues effectively and broaden adoption across diverse use cases.

Ethereum and Bitcoin Experience Surge in Active Addresses: Trends and Influences

Both Ethereum and Bitcoin have recently seen a surge in active addresses. Ethereum's 7-day moving average for active addresses reached a peak in 2023, rising from 372.36k on September 10th to 507.59k on September 17th. Meanwhile, Bitcoin's 7-day moving average of active addresses climbed to levels not seen since May 2021, going from just under 906,000 on August 28th to 1.11 million on September 15th. Ethereum's increased activity is notably associated with Binance, where one of their hot wallets engaged in over 710,000 transactions on September 13th, although the exact reason for the surge remains uncertain. Conversely, Bitcoin's growth in active addresses seems more organic, possibly driven by reduced transaction fees since July 7th, and an uptick in new addresses, often generated as transactions create change addresses. Additionally, Coinbase CEO Brian Armstrong has underscored Bitcoin's importance and confirmed intentions to integrate with the Bitcoin Lightning Network in the near future.

Source: The Block

A New Wallet With A TON of Space

Telegram, in partnership with the TON Foundation, is launching a self-custodial crypto wallet, providing users with control over their keys. This wallet is set to become available to most Telegram users in November, except for those in the United States. Following this announcement at the Token2049 conference, the native token for the TON blockchain, $TON, saw a 15% increase in value. Telegram, boasting approximately 800 million monthly active users, has been discreetly venturing into the crypto space, introducing decentralized payments within the app and enabling developers to create crypto applications on the TON blockchain, facilitating integration with the new wallet. See similar: MetaMask is launching a new feature called MetaMask Snaps that introduces support for new blockchains

Regulation

G20 Leaders Agree to Advance Global Crypto Rules

During the recent G20 summit in New Delhi, global leaders took significant steps to coordinate cryptocurrency regulation. They emphasized the adoption of the Crypto-Asset Reporting Framework (CARF), created by the OECD, enabling annual information exchange on unregulated cryptocurrency transactions among nations, enhancing tax transparency and curbing illicit crypto activities. The G20's endorsement, alongside EU approval, extends CARF's global impact. Leaders also supported a joint report by the IMF and Financial Stability Board, advocating comprehensive regulatory approaches for digital assets' growing ties to the broader financial system, discouraging blanket jurisdictional bans. India is working on its own crypto legislation. Governments are advised to protect monetary policies, manage fiscal risks, establish clear tax structures, and consider global consequences of crypto regulations. Encouraging uniformity, they should adopt the Financial Stability Board's high-level recommendations from July 2023, emphasizing "same activity, same risk, same regulation." The report highlights potential instability linked to global stablecoins during sudden volatility. See more: Privacy remains sticking point in America’s ongoing CBDC debate. See similar: 'Cast It Into the Fire': GOP Moves to Advance Bills That Ban CBDC

ByeNance

In 2023, Binance.US faced a series of challenges. The Securities and Exchange Commission (SEC) sued the company for alleged securities law violations, leading to asset freezes and loss of banking partners. In response, Binance.US transitioned into a crypto-only exchange and began winding down its stablecoin, BUSD. Adding to the turmoil, CEO Brian Shroder resigned, and the company laid off 100 employees. Norman Reed stepped in as interim CEO, and Binance.US claimed its recent actions provide it with over seven years of financial stability (which means they had less before?). These developments illustrate the turbulent year the exchange has endured amid regulatory pressures and operational changes.

Source: The Block

FTX Plays Peek-a-Boo with Crypto Sales, Winks at U.S. Trustee

FTX has revised its proposal to sell billions in crypto assets in response to concerns from the U.S. Trustee, a part of the Department of Justice focused on bankruptcy cases. In the updated proposal, FTX would still not be required to provide advance public notice of transactions, which could affect the market significantly. This decision comes as the mere possibility of a crypto player selling up to $100 million in assets per week has already had a cooling effect on crypto prices. The U.S. Trustee initially objected to FTX's plan, arguing that any intention to sell bitcoin (BTC) or ether (ETH) should be widely disclosed to allow others to voice their concerns. As a compromise, FTX has agreed to maintain private communication with the U.S. Trustee and committees representing the exchange's creditors.

DCG's Crafty Plan: Gemini Earn Users Could Reclaim All Their Crypto

Digital Currency Group (DCG) has proposed a new creditor agreement in the bankruptcy case of its subsidiary Genesis Global, offering unsecured creditors a baseline recovery of 70-90%. The agreement, pending creditor approval, aims to renegotiate a $630 million loan between Genesis and DCG. Gemini Earn users, holding collateral worth approximately $607 million, have the potential to receive up to 110% of their total claim. DCG's proposal also allows creditors to capture the upside of crypto appreciation, with $85,000 for BTC and $8,500 for ETH. This development is part of the ongoing dispute between DCG and Gemini, with Gemini's Earn customers representing nearly 99% of all claimants in Genesis's bankruptcy.

Source: DCG

Deutsche Bank Goes 'Crypto' in Taurus Partnership for a 'Wunderbar' Future

Deutsche Bank is entering the cryptocurrency space through a partnership with Swiss firm Taurus, aiming to offer digital asset custody and tokenization services. The initial focus will be on providing custody for "selected cryptocurrencies and some stablecoins" to corporate and institutional clients in Germany. Deutsche Bank had previously applied for a crypto custody license from Germany's financial regulator. This move aligns with the bank's objectives outlined in a 2020 report by the World Economic Forum's Global Future Council on Cryptocurrencies, aiming to create a secure bridge between digital assets and traditional banking services. The partnership with Taurus comes after Deutsche Bank participated in Taurus' $65 million funding round in February. See similar: $16 trillion. That’s the forecasted value of real world assets expected to be tokenized by 2030. On-chain analytics show $3 billion in assets are already tokenized.

Other Domestic Regulation Updates

• Franklin Templeton filed for a spot Bitcoin ETF
• New York financial watchdog proposes strengthened crypto guidelines
• Celsius Exec Pleads Guilty, Agrees to Cooperate in Case Against CEO
• SEC goes after Stoner Cats NFT show known for Ashton Kutcher and Jane Fonda
• Proposed California Legislation Would Protect Actors From AI Copycats

Other International Regulation Updates

• Bybit expects to exit UK market as new regulations loom
• Singapore’s financial regulator issued a nine-year prohibition order against the founders of Three Arrows Capital prohibiting them from operating in the country’s regulated financial services industry
• France’s New ‘Finfluencers’ Certificate Will Cover Crypto Influencers
• Thai Authorities Arrest Five in $27MM 3,200 Victim Scam
• Taiwan Will Restrict Unregistered Overseas Exchanges

Pain & Gain

Pain

• Genesis no longer offering trading services through any business units
• Hong Kong influencer arrested over JPEX links amid probe
• Lido Dominance Prompts Warnings About Liquid Staking Derivatives
• Binance.US CEO Brian Shroder left the crypto exchange and the company eliminated one-third of its workforce
• Billionaire Mark Cuban Loses $870,000 In Crypto Scam\
• Did Google Ban AI Artists from Running Stable Diffusion on Its Cloud?
• Nouns Fork: Disgruntled NFT Holders Exit With $27 Million From Treasury
• Web3 is far from its iPhone moment

Gain

• Frame, a new L2 for NFTs, has arrived
• Story Protocol Raises $54MM for Platform Democratizing IP Creation
• D3 Global Raises $5MM Seed to Bridge Web3 Domain Names to Web2
• Lidos’ wrapped staked ETH is coming to Cosmos
• OnChainMonkey Will Migrate 10,000 NFT Collection From Ethereum to Bitcoin
• PayPal to Offer USD Offramp with New Conversion Service
• Crypto derivatives exchange BitMEX started a prediction market that allows traders to bet on the outcome of real-world events
• Sony Network Communications announced it's developing a new blockchain