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Token Specific News

Layer 2 Scaling Race

In 2023, Ethereum's scaling landscape witnessed a transformative shift, with optimistic rollups, notably Optimism and Arbitrum, initially dominating. While ZK rollups faced limited adoption due to EVM compatibility issues, Arbitrum emerged as a fierce competitor to Optimism, surpassing it in transactions and on-chain fees from January to July after the launch of its native token, ARB. Concurrently, zkSync Era, the first zkEVM, gained prominence, driven by airdrop speculations and EVM compatibility. Despite a brief surge by Coinbase-backed Base in September, Arbitrum reclaimed dominance in Layer 2 solutions, outpacing zkSync in data fees, marking a significant development in Ethereum's scaling solutions.

Source: The Block

Starknet Foundation Addresses Leaked Airdrop Plans Amid Social Media Speculation

The Starknet Foundation has acknowledged the authenticity of leaked plans for an upcoming airdrop, as revealed by screenshots briefly appearing on its website. These preliminary criteria for the airdrop, presented in an early draft with some missing information and a misspelled project name, prompted speculation on social media. The Foundation clarified that the leaked screenshots represent a work in progress, with finalized criteria yet to be announced. Despite the leak, an eligibility cutoff date has been set, signaling that user actions will not impact eligibility. Starknet had previously hinted at a 2022 airdrop, distributing 10 billion Stark (STRK) tokens.

Uniswap Labs, Fireblocks, and Talos Collaborate to Enhance Decentralized Liquidity for Institutional Traders

Uniswap Labs, Fireblocks, and Talos have joined forces to provide professional traders and institutions with improved decentralized liquidity and on-chain settlement. Fireblocks facilitates institutional access to Uniswap, while Talos gains entry to Uniswap Labs' trading APIs and future access to UniswapX. Anton Katz, CEO and Co-Founder of Talos, underscores the collaboration's goal of expanding liquidity access for institutional clients.

NEAR and dear

In recent months, there has been a notable upswing in interest and activity surrounding Ordinals on the Bitcoin network. This phenomenon has expanded beyond Bitcoin to other blockchains, including Polygon and NEAR. On Polygon, the generation of PRC-20 tokens through transaction calldata has led to increased network transactions and fees. NEAR has witnessed a remarkable surge in daily network transactions, reaching 7.39 million on December 2nd, largely propelled by NEAT, the first token launched using the Ordinals-inspired NRC-20 token standard. The swift minting of NEAT, featuring a total supply of 4.2 quadrillion, underscores substantial demand for Ordinals-like tokens, emphasizing the growing significance of non-fungible elements across diverse blockchain ecosystems.

Source: The Block

Regulation

Brazilian Senate Advances Income-Tax Regulations for Cryptocurrency Earnings on International Exchanges

The Brazilian Senate has approved new income-tax regulations that may impose up to a 15% tax on citizens' earnings from cryptocurrencies held on international exchanges, pending approval from President Luiz Inacio Lula da Silva. The proposed regulation, effective from January 1 if sanctioned, applies to Brazilians earning over $1,200 from foreign exchanges and investment funds with a single shareholder. The government aims to generate $4 billion in revenue through these taxes in the upcoming year.

Blockchain, SEC, Buzzwords

November marked a record high in Securities and Exchange Commission (SEC) filings mentioning "bitcoin," with approximately 1,070 references, surpassing the previous peak of 810 in May. The surge is attributed to various factors, including Q3 earnings reports and increased filings related to the bitcoin spot exchange-traded fund (ETF) speculation. Grayscale Bitcoin Trust alone filed 39 documents, including free writing prospectuses (FWPs) covering various communications related to a potential GBTC spot ETF conversion. Morgan Stanley contributed over 50 filings mentioning "bitcoin," mainly in the form of NPORTs disclosing portfolio holdings. The trend indicates a growing interest and engagement with bitcoin among companies filing with the SEC. While blockchain-related terms overall reached around 3,310 mentions, the focus on bitcoin remains pronounced.

Source: Edgar SEC Database

BlackRock Secures $100,000 Seed Capital for Proposed Spot Bitcoin ETF

BlackRock has disclosed that it received $100,000 as "seed capital" for its proposed spot Bitcoin (BTC) exchange-traded fund (ETF), according to a new application filed with the U.S. Securities and Exchange Commission (SEC). The seed capital, provided by an investor, involved the purchase of 4,000 shares at a per-share price of $25.00 on October 27, 2023, enabling the ETF to fund the creation units and facilitate the offering and trading of shares in the open market.

On the House

The House Financial Services Committee (HFSC), crucial in shaping crypto policy, has under Chairman McHenry's guidance advanced five crypto bills addressing market structure and stablecoin regulation. Despite HFSC approval, these bills await passage in the House of Representatives, potentially encountering resistance from Senate Democrats. Led by Chairman McHenry, HFSC Members actively oppose regulatory overreach, challenging the SEC's enforcement-focused approach and Treasury's proposed tax rules for digital asset brokers through tactics like hearings and written communication. The Senate Banking Committee, chaired by crypto-skeptic Senator Sherrod Brown, presents an obstacle to HFSC-passed legislation, but the dynamic could shift if Republicans secure Senate control in the 2024 elections, potentially ushering in a pro-crypto Chairman to the Senate Banking Committee by 2025.

Other Domestic Regulation Updates

• United Nations Taps Algorand To Develop Web3 Education For UN Staff
• Crypto lobbyists descend on Capitol Hill amid fresh push for ‘insanely overbroad’ rules
• A federal judge says SEC lawyers lied to freeze a crypto company’s assets
• U.S. SEC Seeks Comment on Franklin Templeton, Hashdex BTC ETFs

Other International Regulation Updates

• Bitcoin Rally Propels El Salvador's Holdings Into Profit, Says President
• India Leads in Grass Roots Adoption, But Regulatory Uncertainty Stifles Industry 
• Chinese Firms Look for a Web3 Play Despite Official Crypto Ban
• G20’s Financial Stability Board Wants Further Assessment of Crypto Safeguards
• Santander Private Bank Introduces BTC, ETH Trading for Swiss Clients
• Canada’s Madison Metals Launches Uranium-Backed Token
• Belgium Seeks to Reboot EU Blockchain Infrastructure Project
• Australia Updates Capital Gains Tax Guide to Include DeFi

Pain & Gain

Pain

• Ark Invest continues Coinbase selling streak, offloads $15 million for the week
• Ethereum validator and node growth leads to emissions decline: Report
• Tether Freezes $225MM of USDT Linked to Human Trafficking at U.S. DoJ Behest
• This Week on Crypto Twitter: Revenge of the Meme Coins

Gain

• AntPool agrees to refund record $3 million Bitcoin transaction fee
• Crypto VC Funding Surges In November
• Merging in the Cosmos
• 'Data Painter' Refik Anadol Reflects on Historic MoMA AI Art Acquisition
• IBM introduced a new cold storage technology for crypto assets