🔮 Tons of Regulation Abbreviations, Binance's IRI Doesn't Pay, Illicit Thor Concerns, Chainlink Data Streams

Token Specific News

Chainlink Introduces Data Streams on Arbitrum, Expands Decentralized Computing Capabilities

Chainlink has introduced "Data Streams" to lower network latency, accessible in early access on Arbitrum Layer 2. This innovation combines low-latency market data with automated execution to facilitate faster and more user-friendly derivatives products. Using a "pull-based" data oracle system, it offers high-frequency market data off-chain, allowing users to validate it with on-chain transactions, thereby reducing latency in distributed networks. In addition, Chainlink has unveiled decentralized computing capabilities with Functions Beta and Automation 2.0 on its mainnet. This allows developers to link decentralized apps to APIs and automate tasks at a significantly lower cost, potentially saving up to 90% in gas expenses. These advancements aim to enhance user efficiency and reduce costs, particularly in the DeFi sector, while upholding the values of fairness, transparency, and decentralization in the Web3 ecosystem.

Source: Chainlink

Not Super Friendly / The SIM Battle

Friend Tech users are increasingly falling victim to SIM Swap attacks, raising concerns about the platform's security measures. Researchers suggest that around 40% of the total value locked (TVL) on Friend Tech might be at risk from opportunistic hackers. While Friend Tech has gained popularity in the web3 space, it faces challenges related to the security of its users' keys, especially for high-profile individuals who are susceptible to doxxing.

Source: Messari

Binance's Industry Recovery Initiative (IRI) Raises Over $1 Billion in Commitments, Deploys Only Fraction Amid Crypto Recovery

In response to FTX's collapse, Binance launched the Industry Recovery Initiative (IRI), with pledges exceeding $1 billion. However, it has deployed less than $30 million so far. Binance allocated $1 billion in BUSD stablecoin, and several crypto firms contributed an additional $70 million. Among the participants, only Aptos Labs fully invested their pledged funds, while Binance's disclosed investment in South Korean exchange GOPAX awaits regulatory approval. Despite the crypto market's recovery, the industry still grapples with funding challenges and job cuts.

The Travel and Hospitality Industries Embrace Web3 Innovations

The travel and hospitality sectors, which were traditionally resistant to technology, are now embracing Web3 innovations, promising a vastly improved experience for the projected two billion travelers in 2024. This transformation is highlighted by a recent travel conference in Barcelona, underscoring the industry's shift toward Web3 technologies. Zurich-based Sleap.io is set to launch its Web3 hotel booking platform in Q1 2024, with a focus on reducing fees, issuing NFT booking confirmations, and providing personalized AI-generated recommendations, backed by various travel companies acting as blockchain validators on Sleap.io's Camino Network. Additionally, Lufthansa Group, Europe's second-largest airline, is introducing a Web3 rewards program on Polygon, offering digital collector cards that can be traded for free miles and lounge access, while UAE's Etihad Airlines allows travelers to stake NFTs in exchange for travel perks. Lingo, supported by notable companies like Consensys, Expedia, Google, and Booking.com, has launched a token holder club to enhance rewards flexibility across providers and simplify vacations with a real estate portfolio. These advancements signify the growing adoption of Web3 technologies in the travel and hospitality sector.

THORSwap/Chain Enter Maintenance Mode Amid Illicit Activity

THORSwap, a THORChain-based decentralized exchange, is temporarily switching to maintenance mode due to concerns about potential illicit fund movement. This decision follows the "FTX hacker" transferring 22,500 ETH (around $38 million) in the past week through THORChain. THORSwap is working on a more permanent solution in consultation with legal experts, advisors, and law enforcement agencies. The FTX hacker is exploring alternatives to THORSwap for converting ether to bitcoin. Transaction volume on THORChain has notably increased, reaching a record $355 million on October 5.

Source: Thorchain Explorer

Crypto Fundraising Trends in Challenging Q3 2023

In Q3 2023, the cryptocurrency industry faced the ongoing bear market's impact, witnessing a significant 36% reduction in both total funding amounts and the number of deals compared to the previous quarter. Fundraising in this quarter amounted to just under $2.1 billion across 297 deals, marking levels last seen in Q4 2020. Early-stage deals, particularly seed funding, gained prominence, reflecting a strategic approach by investors to support projects with potential for high returns in anticipation of improved market sentiment. Notably, strategic investments, including corporate and private equity deals, surged to 22%, a stark contrast to the 0.2% seen during the peak of the bull market in Q4 2021. Despite market challenges, certain sectors like chain infrastructure, DeFi, and gaming attracted substantial investments, while funding for infrastructure projects outpaced user-facing applications. The top 10 most active investors accounted for just 7% of all crypto deals, emphasizing the diverse investor landscape in crypto fundraising. Binance Labs took the lead in investments during Q3, with a focus on DeFi and gaming. The United States remained a significant hub for crypto investors, with the majority of active Q3 investors based there, underscoring its continued importance in the crypto investment ecosystem. These trends collectively offer insights into the ever-evolving crypto fundraising landscape amid persisting market challenges.

Source: Messari

Regulation

Unraveling the SBF Trial: Decrypting Crypto Chaos in the Courtroom

As of the most recent developments in the Sam Bankman-Fried trial, the proceedings have been marked by a mix of legal complexities, financial controversies, and occasional humor. Bankman-Fried, the founder of FTX and Alameda Research, has faced allegations related to the management of his hedge fund, Alameda Research, including purportedly joking about losing substantial assets, with reports suggesting up to $50 million. The judge overseeing the case has at times displayed impatience and cracked jokes during the proceedings, adding an unusual dynamic to the courtroom environment. Additionally, Bankman-Fried's family, specifically his parents, have become entangled in the legal battle, with allegations that they played a significant role in shaping his crypto empire and received substantial gifts. There has also been scrutiny of the bail terms set for Bankman-Fried, with claims that they are excessive and described as "ludicrous" by some legal experts. These legal and financial controversies have kept the trial in the spotlight and generated significant attention within the cryptocurrency and financial communities, as observers closely follow the unfolding developments in this high-profile case.

Anthropic Raise Offers Hope for FTX Creditors

Artificial intelligence startup Anthropic's recent fundraising activities have ignited hope for creditors of the bankrupt cryptocurrency exchange FTX. In 2022, FTX had invested $500 million in Anthropic, which positioned itself as a rival to OpenAI. Anthropic now intends to raise an additional $2 billion from investors like Google. Moreover, Amazon recently agreed to invest up to $4 billion in Anthropic. This surge in Anthropic's value has created the possibility of a larger payout for FTX creditors, should the exchange decide to sell its stake in the artificial intelligence company.

A Ripple In Time: SEC’s motion to appeal its loss in Ripple case is denied

A U.S. federal judge has denied the U.S. Securities and Exchange Commission's (SEC) attempt to appeal its legal defeat against Ripple, the company behind the XRP cryptocurrency. District Judge Analisa Torres issued a concise ruling stating that the SEC had not met the legal requirements to demonstrate the existence of pivotal legal questions or substantial disparities in opinion. While this is not a complete setback for the SEC, Judge Torres scheduled a trial for April 2024 to address remaining unresolved matters. It remains possible for the SEC to pursue an appeal for the entire case after this upcoming trial.

DBS Bank Holds Key Licenses for Securities Trading with Stablecoins but Delays Launch

DBS Bank, based in Singapore, possesses all three licenses required for clients to purchase traditional securities using stablecoins. However, the bank has not yet initiated these services, while competitors have moved forward. The only other entity in Singapore with all three licenses, MetaComp, has become the first to enable clients to pay for securities with cryptocurrency holdings, although this involves converting stablecoins to fiat first. The delay in DBS's services is due to its thorough token tracking process, which traces the history of every wallet associated with a token before entering the DBS system. DBS established its digital asset platform, DBS Digital Exchange, in 2020.

Ether Futures ETFs

The launch of Ether futures ETFs was anticipated and recently approved by the SEC. While there are applications for spot Ether ETFs, no decisions have been made. These spot Ether ETFs are unlikely to face the same issues as spot Bitcoin ETFs due to previous rulings in favor of Grayscale. However, the initial trading volumes of Ether futures ETFs have been notably low, with ProShares' EETH leading but trading under $1 million daily. This could be attributed to the broader bear market and risk-off sentiment in both the crypto and financial sectors, as well as the different market conditions compared to Bitcoin's ETF launch.

Source: The Block

All That Glitters Is Not Silver

Silvergate Bank's transition from a community lender to a prominent crypto bank went unnoticed by the Federal Reserve, as revealed in a report from the Federal Reserve's Office of Inspector General investigating the bank's failure. While Silvergate played a crucial role in serving the crypto industry when traditional banks hesitated, the OIG determined that the bank should have sought Federal Reserve approval when it shifted entirely to crypto operations under banking regulations. Additionally, the bank's California regulators were criticized by examiners for failing to recognize the bank's rapid, unregulated expansion, subpar management, and elevated risk profile.

Other Domestic Regulation Updates

• IMF Proposes Framework for Assessing Crypto Asset Risks
• Anchorage and Eaglebrook link up in bid to boost crypto SMA access

Other International Regulation Updates

• OKX updates UK marketing for FCA rule compliance

• Celsius successor to be seeded with $450 million in crypto if restart plan approved
• 6th Swiss Bank Joins SDX Crypto Exchange
• Binance Teams with Japan’s Largest Bank to Explore Issuing Stablecoins
• Thai FinServ Giant SCB Inks Partnership with Korean Web3 Firm
• Nine ETH Futures ETFs Begin Trading in U.S.
• Head of Portugal Central Bank Calls for Global Crypto Rules

Pain & Gain

Pain

• BAYC Creator Yuga Labs Announces Major Restructuring
• Yuga Labs, the team behind the prominent Bored Ape Yacht Club NFT collection, has undergone a restructuring and laid off some U.S. employees as a result
• Galaxy mining head exits to consult miners ahead of halving
• A slow year for crypto M&A, fundraising got even slower in Q3
• Chainalysis lays off 15% of staff, plans to focus on public sector

Gain

• The ‘next leg’ of DeFi users will be institutions, Blockchain Capital’s Larsen expects
• Sui Foundation Announces Ecosystem Fund Worth Over $50M
• Andreessen Horowitz leads $24 million Blackbird round
• VanEck Commits 10% of ETH Futures ETF Profits to Ethereum Dev Group
• Walmart Introduces NFT Inspired Pudgy Penguins in 2,000 Stores