Ivy JohnsSat, Feb 6, 2021 9:49 AM
Weekly Digest: Indian ban, Binance Pay & DOGE with Cryptonator's
Every week we make a digest about the most significant news in crypto, and we thought it would be fun to ask what the community members and bloggers think about all things crypto. Please, welcome Felix Brocker aka Cryptonator`s, author, publisher and crypto enthusiast!
Projects And Updates
Digital asset management company Grayscale Investments has announced the resumption of placing shares in its Ethereum trust, ETHE. Now accredited investors will again be able to purchase new shares of ETHE by investing fiat money or ETH for subsequent resale on the secondary market. Investments in the trust provide passive income from trading shares linked to the ETH.
Inspired by their newfound ability collectively influence the stock market, Reddit users were looking for their next target and focused their attention on Dogecoin. As a result of their actions to pump up the coin, the price of the meme-cryptocurrency grew drastically, adding about 400% in just a day. The other day, Dogecoin also set a record for daily market cap hitting the mark of $6.8 billion. The goal of Reddit users is to set the DOGE price to $1.
This whole reddit, GameStop, Dogecoin thing makes me believe in the good in humanity again. Well, at least a bit.
The popular digital asset exchange Coinbase plans to become a public company through a direct listing of its Class A common shares. Coinbase representatives applied for a share listing to the US Securities and Exchange Commission (SEC) in mid-January. For the first time, Coinbase's preparation for the DPO became known in the summer of 2020. It is also reported that Coinbase has chosen Nasdaq as a platform for it's listing.
The Solana Foundation and Project Serum have announced a joint international hackathon focused on DeFi. The aim of the hackathon is to bring together developers, web-designers, and entrepreneurs from around the world to develop tools and applications that will enhance the DeFi ecosystem. The prizes totalling up to $400,000 will be drawn between the participants. The top 9 projects will also be able to compete for the seed funding round.
The Indian government plans to introduce a bill to ban private cryptocurrencies such as Bitcoin and to create an incentive framework for the creation of an official digital currency to be issued by the Reserve Bank of India. It is reported that the ban implies certain exceptions for the advancement and adoption of blockchain technology. Earlier, Indian authorities expressed concern about the illegal use of cryptocurrencies, including money laundering. In March 2020, the Supreme Court overturned the ban on trading in digital currencies imposed in 2018 by the Central Bank of India.
The study examined the laws regarding the taxation of cryptocurrencies in 31 countries, focusing on their application regarding coins and tokens earned through mining and staking. It turned out that only five of them (Australia, Switzerland, Finland, New Zealand and Norway) applied tax rules to coins that use the PoS algorithm. Republican Representative Tom Emmer, who commissioned the study, called on the IRS to provide clearer guidance to eliminate this blind spot.
The first part of the blockchain law came into force in Switzerland on Monday. In September 2020, the country's parliament adopted an expanded regulatory plan focused on improving governance of the growing crypto market. The law regulates the issue of tokenized securities. Now tokenized securities are recognized as a new asset class, the ownership rights to which are transferred through the blockchain to the investor. The second part of the law will come into force in August this year and will affect the country's financial infrastructure and regulation of cryptocurrency exchanges.
The popular crypto exchange Binance has introduced a beta version of its contactless payment service Binance Pay. Users can transfer funds from their Binance account using a QR code through the app. At the moment Binance Pay supports six assets, including one fiat currency: BNB, BUSD, BTC, SXP, ETH and EUR. According to the CEO of Binance, CZ, the service was developed as a response to PayPal's adoption of cryptocurrencies.
I believe that Binance Pay really helps the mass-adoption of crypto.
The Chainlink (LINK) project has joined UNESCO's Global Education Coalition for training on the use of smart contracts. In cooperation with UNESCO, Chainlink will create educational programs, conduct training, organize hackathons, and provide training manuals. The program aims to expand basic knowledge and skills, allowing people and organizations around the world to apply blockchain technology and smart contracts and oracle technology.
Cryptocurrency exchange KuCoin hacked in September last year, recovered 84% of the assets stolen, which values about $239.5 million. 78% of these funds were recovered by exchange with the help of project partners, and 6% were returned by law enforcement agencies. Other 16% of the stolen funds that hackers managed to cash out were covered through the exchange's insurance fund. At the time of the theft, they were worth approximately $45.55 million.
It's nice to see the hackers didn't get away with it this time. Kucoin has done a great job by recovering most of the stolen funds.
Hackers found a vulnerability in the system of the decentralized liquidity provider SushiSwap and stole some fees. The attacker exploited the flaws of DIGG token of the Badger DAO protocol. By creating a new trading pair, they formed a low-liquidity DIGG/ETH pool. A malfunction in the process of payment of rewards to the stakers allowed the hacker to assign all the commissions to themselves. In total, they managed to steal 81 ETH this way, that is approximately $103,842. The price of SUSHI token practically showed no reaction to the hack.
We have to face it, there are certain risks involved when it comes to yield farming, no matter what DeFi platform you are choosing. So before you invest in Yield Farming, make sure to evaluate the associated risks.
Billy Marcus, the co-founder of Dogecoin, who left the project and sold his DOGE assets back in 2015, complained that he faced abusive interest in his person, related to the hype created by Reddit users around Dogecoin. Markus, known in the community as Shibetoshi Nakamoto, asks not to associate him with the project and stop the harassment.
The founder of Tesla and SpaceX, Elon Musk, boosted the growth of Dogecoin with his recent publications on Twitter. He posted a photo of the Falcon 9 and wrote the word Doge as a caption.
It`s easy to pump and dump Dogecoin if your name is Elon Musk.
The US House Financial Services Committee will examine the actions of the Robinhood platform in connection with the pumping of GameStop shares. According to them, the co-founder and CEO of the company, Vlad Tenev, will give testimony at the hearing on February 18. On Thursday, January 28, Robin hood banned users from buying shares of GameStop and other companies hit by a wave of speculative demand. According to the plaintiffs, the Robin hood decision deprived retail investors of potential profits. Lawmakers are interested in the existence of collusion between the service and hedge funds.