🔮 Gobble Gobble, Binance Makes a Serious Change, ETH Shows Strength, ETfrenzy

Token Specific News

dYdX Conflicted

Decentralized exchange dYdX has entered the beta mainnet for its layer-1, allowing USDC staking rewards on the proof-of-stake blockchain. The move has faced criticism on Crypto Twitter, with concerns raised about the timing of staking rewards being distributed two weeks before a significant token unlock for dYdX insiders. The project's founder, Antonio Juliano, maintains that dYdX is focused on long-term goals and is not seeking short-term gains. The platform has shifted from being a layer-2 decentralized exchange for perpetual swaps to its own chain built with the Cosmos SDK to enhance throughput for the order book.

A Beacon of Resilience

In 2023, a significant achievement for Ethereum was the continuous increase in the number of ETH securing the network after the activation of the Shapella upgrade, allowing withdrawals from the Beacon chain. The upgrade enabled validators to withdraw their funds, challenging earlier concerns about a potential erosion of security and a significant price dip for ETH. Despite some initial withdrawals, the amount of ETH securing the network showed steady growth, with deposits often exceeding withdrawals. This trend was attributed to increased confidence in staking due to the assurance that funds could be withdrawn, coupled with a lack of motivation to sell ETH earlier in the year. The recent rally in ETH's price has coincided with larger withdrawals, reflecting a possible connection between withdrawal activity and ETH's value.

Source: The Block

Jump into the Wormhole

Jump Trading has spun off its cross-chain protocol, Wormhole, into an independent business entity. This move follows a reduction in staff levels at Jump Crypto, the cryptocurrency division of Jump Trading, with the workforce reportedly halved from a peak of 150 in 2022. The decision to spin off Wormhole comes amid a scaling down of crypto market activities by Jump Trading, which started in May, partially attributed to regulatory uncertainties in the U.S. The firm also terminated its longstanding partnership with Robinhood earlier this year. Wormhole faced a significant hack in February 2022, where Jump Crypto replenished the $323 million in stolen ether.

Source: The Block

NFT Trading Volume Hits 4-Month High
The NFT market has experienced a surge in trading volumes, hitting a four-month high on November 10. Major NFT collections, such as Cryptopunks, have seen double-digit percentage gains, with increased activity driven by airdrop farmers. Blur, the leading NFT marketplace, has run an airdrop campaign contributing to its increased trading volume, and its native token, BLUR, has more than doubled in price. The NFT market's bounce is attributed to a combination of renewed interest, airdrop campaigns, and the ongoing crypto rally. However, the total number of NFT traders remains relatively low, indicating that the increased activity may be driven by existing participants rather than new entrants. In November, CryptoPunk NFTs' floor price surged over 10 ETH, escalating from 46.87 ETH on November 1st to 58.95 ETH on November 12th. This rise, driven by a notable buying spree from Yuga Labs' co-founder, positioned CryptoPunks as the dominant NFT collection by floor price. Despite bullish NFT market sentiment, other collections like Bored Ape Yacht Club did not witness comparable floor price growth. CryptoPunks' ascent in floor price correlates with increased trading volume and sales, solidifying its position as a significant beneficiary of the recent market upturn.

Source: Dune

Regulation

4B to Make Your Problems Go Away Binance

Binance has reached settlements with various U.S. agencies, concluding a significant regulatory action. The settlement involves Binance paying substantial fines, including $1.8 billion in fines, $2.5 billion in forfeitures, and a $1.35 billion civil penalty for operating an unlicensed crypto derivatives trading platform. Binance's CEO, Changpeng "CZ" Zhao, faces potential prison time and will pay $50 million. Binance will make a complete exit from the U.S. and undergo strict oversight. The total settlement amount, distributed among multiple agencies, amounts to $4.3 billion. Binance's role as a major crypto exchange operating secretly in the U.S., targeting VIP users, and allowing trading between U.S. users and those in sanctioned nations, is highlighted. The settlement aims to address issues related to anti-money laundering, sanctions violations, and operating without proper registration. The Justice Department and FinCEN will appoint monitors for three and five years, respectively, with access to Binance's records. Notably, the Securities and Exchange Commission (SEC) did not announce settlements, possibly indicating its pursuit of court wins to regulate crypto exchanges similarly to U.S. stock exchange systems.

ETFrenzy

BlackRock, the world's largest asset manager, has officially filed for a spot Ethereum exchange-traded fund with the United States Securities and Exchange Commission. The ETF, named iShares Ethereum Trust, aims to track the performance of the price of ether. The filing comes after BlackRock registered the iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations. Coinbase Custody Trust Company is selected as the custodian, and the CME CF Bitcoin Reference Rate from CF Benchmarks is chosen as the benchmark for the proposed ETF, aligning with BlackRock's approach for its spot Bitcoin ETF.

Sideburns, Bitcoin, Steakhouse: Argentina's New Leader

Javier Milei is a notable figure known for his love of Bitcoin, disdain for central banks, and distinctive appearance, characterized by prominent sideburns and a hairstyle that exudes a vintage vibe. He passionately advocates for Bitcoin, seeing it as a tool against political manipulation through inflation, while strongly criticizing central banks, which he views as a mechanism for politicians to deceive the public. Milei's unique persona includes memorable moments like celebrating his birthday on national TV by beating a piñata shaped like a central bank.

Harmony in the Chains - JPMorgan's Onyx Orchestrates Blockchain Symphony

JPMorgan's Onyx, in collaboration with WisdomTree, Apollo, and other blockchain technology providers, has participated in a proof-of-concept for blockchain interoperability in investment portfolio management. This initiative, under the Monetary Authority of Singapore's Project Guardian, aims for open and interoperable private networks that facilitate tokenized asset exchange using decentralized finance protocols. The testnet system, involving Axelar, Provenance Blockchain, LayerZero Labs, and others, enables fund managers to tokenize, purchase, and automatically rebalance real-world asset portfolios across multiple blockchains. The collaboration seeks to streamline the complexities of blockchain interactions, including transaction fees, through solutions like Biconomy's Paymaster service.

CoinShares Secures Strategic Option to Acquire Valkyrie Funds

Crypto asset manager CoinShares has secured an exclusive option to purchase the ETF unit of Valkyrie Investments, marking its entry into the U.S. market. CoinShares, based in Saint Helier, Jersey, sees this move as strategic amid expectations that the Securities and Exchange Commission (SEC) might approve a spot bitcoin ETF soon. The option, which expires on March 31, positions CoinShares to make a significant move if the anticipated regulatory developments unfold. Spot crypto exchange-traded products are already available in Europe, and a similar product in the U.S. could broaden bitcoin investment accessibility.

Lost Crypto, Unclaimed Assets: Navigating Legal Gray Areas in State Laws

The loss of private keys leading to the permanent inaccessibility of crypto assets poses a significant challenge for holders, with legal and financial implications. While unclaimed property laws exist in all U.S. states, including Maine, covering traditional assets, the treatment of crypto in this context remains uncertain. States vary in their approach to crypto under unclaimed property laws, with some explicitly including it, while others lack clear definitions or specific liquidation requirements. Firms are navigating this issue independently, with examples like the Arbitrum Foundation transferring unclaimed rewards to the network's treasury and Ethereum's Optimism planning to distribute unclaimed airdropped funds. However, such initiatives may trigger tax considerations for recipients of airdrops.

SEC Postpones Decisions

The Securities and Exchange Commission (SEC) has extended the deadline for its decision on Grayscale's Ethereum Futures Trust proposal, pushing it to January 1, 2024. Grayscale filed in October to convert its Ethereum Trust into an ETF, and this extension allows the SEC more time to review and decide on the proposed rule change. This delay is seen as not surprising by some analysts, and it follows Grayscale's court win against the SEC regarding its bitcoin trust application, where the court ordered the SEC to re-examine the application it had originally denied. Similarly, SEC)has postponed its decision on Hashdex's application to convert its existing bitcoin futures ETF into a spot vehicle. The SEC has also delayed action on Grayscale's proposal to launch a new futures-based ether ETF. Both filings, originally set for a decision by November 17, are now subject to an extended review period, according to filings made on Wednesday.

Other Domestic Regulation Updates

• U.S. Crypto Tax Proposal Draws 120K Comments
• Bullish buys CoinDesk from DCG
• Tether says it froze $225M in USDT following DOJ collaboration
• Kraken says products remain unaffected amid SEC’s new 'disastrous' lawsuit

Other International Regulation Updates

• 47 Countries Agree to Framework for Crypto Tax Reporting
• Singapore plots ‘live’ wholesale CBDC pilot for next year
• The UK Won’t Regulate AI Anytime Soon
• Do Kwon, who faces four months in Montenegro prison, loses appeal
• The Philippines government said it plans to raise 10 billion pesos ($180 million) through the sale of a tokenized treasury bond next week
• Commerzbank scores crypto custody license in Germany
• India Supreme Court Rejects Petition for Crypto Rulemaking
• Kazakhstan launches CBDC pilot

Pain & Gain

Pain

• Singapore VC Buys Media Firm The Block for $60MM
• Singapore central bank exec said crypto failed
• dYdX tokenomics scrutinized as staking goes live
• After claiming it "partnered" with Disney on an NFT app, Dapper Labs looked to change the story

Gain

• Blockchain Payments Firm Fnality Raises $95MM B Round From Goldman
• Crypto Fund Inflows Pass $1B for 2023 Led by BTC, ETH, and SOL
• Disney Partners with Dapper Labs on New NFT Collection
• Japan’s SBI Holdings Raises $662MM to Invest In Web3, AI, Fintech
• Vietnam Web3 Coalition Launches $25MM Ecosystem Fund
• Blockchain.com has closed a $110 million Series E