Report: Binance reserves prove that assets are healthy and that diversified currencies are safely stored | Binance Morning Report (July 12)

● CMC report: Binance reserves prove that assets are healthy and that diversified currencies are safely stored

The 2023 H1 trading platform data report released by CoinMarketCap shows that Binance’s public reserve reserves are US$57 billion, ranking first among all crypto trading platforms. Among them, Bitcoin and stablecoins constitute the main part of Binance’s reserve assets.

At the same time, although the panic (FUD) in the market in the past three months has caused funds to flow out of Binance, a very positive sign worth noting is that despite the large outflow of funds from the Binance exchange in the second quarter of 2023, the exchange still retains a healthy amount of reserve proof assets and safely stores a variety of currencies. In addition, Binance ranks first in terms of trading volume and market share in the first half of 2023 in the crypto market.

● The European Commission has developed a Metaverse plan to create open and interoperable virtual worlds

According to Reuters, the European Commission has developed a Metaverse plan to take the lead in the Metaverse (a shared virtual world accessible via the Internet) and prevent large technology companies from dominating the emerging field. The plan includes bringing together creators, media companies and others to create an industry ecosystem and establish a regulatory sandbox to help companies test the Metaverse, launch skills development programs and virtual public services.

The EU executive said its initiative aims to reflect EU values ​​and fundamental rights and create an open and interoperable metaverse, a global market expected to exceed 800 billion euros by 2030 from 27 billion euros last year.

● Bank of England Governor urges banks to move forward with tokenizing bank deposits

According to Ledger Insights, Bank of England (BoE) Governor Andrew Bailey delivered a speech on the future of currency on Monday, delving into the potential of new digital currencies. Bailey hopes to maintain the status quo between financial institutions and central banks, but also hopes to encourage banks to stimulate greater innovation, especially in tokenized deposits. The Bank of England believes that as the economy goes digital, it is necessary to protect the foundations of secure currency, not just CBDC.

In addition, Bailey said that stablecoins often fail basic unitary and settlement finality tests, and what is needed is a new form of enhanced digital currency that can incorporate new features, such as programmability of smart contracts, while maintaining its inherent security and confidence. This is particularly important for retail CBDCs or digital pounds.

● Deputy Governor of the Reserve Bank of India: As of June, we have 1.3 million customers and 300,000 merchants using the central bank’s digital currency

According to Jinshi, the deputy governor of the Reserve Bank of India expressed the hope to introduce central bank digital currency (CBDC) not only as a payment tool but also as a digital currency. A separate strategy must be adopted to encourage customers to use central bank digital currency (CBDC). As of June, 1.3 million customers and 300,000 merchants used central bank digital currency. Technical alternatives to central bank digital currency are being studied. The biggest advantage of central bank digital currency (CBDC) will come from cross-border transactions.

It also stated that cryptocurrencies are neither currencies nor assets.

● Fed's Williams: Monetary policy needs to continue to tighten

According to Jinshi.com, Fed’s Williams said, “The current U.S. labor market is still very strong, and job growth is very good. Other indicators such as the labor participation rate are also very high. Therefore, the economy shows no signs of recession at all. Monetary policy needs to continue to tighten to achieve a balance between labor supply and demand and stabilize inflation. Decisions will be based on the overall performance of various data and various other indicators. The current monetary policy framework is effective in dealing with inflation and economic fluctuations. There is no obstacle for the Fed to take strong action. In future framework assessments, I will consider the performance of the economy and inflation, as well as the lessons related to the framework.”

● South Korean prosecutors will set up a "Virtual Asset Joint Investigation Team" at the end of July to specifically handle virtual asset-related crimes

According to Korean media Hankyung, the Korean prosecutors will set up a "Virtual Asset Joint Investigation Team" at the end of July to investigate crimes related to virtual assets. The prosecutors plan to hold a plaque-hanging ceremony to formally establish the joint investigation team as early as the end of this month during the personnel adjustment of prosecutors' civil servants. In addition, the Seoul Southern District Prosecutor's Office has established an informal preparatory organization in order to be able to immediately put it into practice.

● Arkham clarification: It is not affiliated with a government agency, and Arkham Intel Exchange does not allow the exchange of personal information off-chain

Blockchain data company Arkham clarified on Twitter that Arkham's main users are traders, who use Arkham to analyze cryptocurrency market activity. Arkham Intel Exchange is primarily used for on-chain analysis and tagging, and creates a liquid market for it so on-chain researchers can more easily monetize their work and exchange information. Arkham Intel Exchange does not allow the exchange of off-chain personal information, such as addresses or phone numbers. Any posts requesting or containing such personal information are not allowed to appear on the exchange.

Arkham claims that it is not a secret government project and is not affiliated with a government agency, but a crypto-native team. Regarding whether user data will be sold or used as information on the platform, Arkham stated that user-specific tags, imported addresses, or any other user data are not used on the platform, and Arkham has not and will never sell user data.

● Data: Crypto startups raised a total of $2.34 billion in the second quarter

According to TechCrunch, PitchBook data shows that crypto startups raised a total of $2.34 billion through 382 transactions in the second quarter, a significant drop from the peak of $12.14 billion in the first quarter of 2022. Venture capital flowing into the industry has fallen for the fifth consecutive quarter. The largest financing transactions in the second quarter of 2023 were LayerZero’s $120 million Series B financing and Worldcoin’s $115 million Series C financing.

Lydia Chiu, vice president of business development at Ava Labs, said the reduction in capital deployment could be attributed to regulatory headwinds in the U.S., which caused many cryptocurrency-related deal structures in the second quarter to lean toward traditional venture capital structures, such as raising equity, rather than being completed in the form of token investments or SAFTs.

Chiu said the sector saw a massive 50% drop in valuations from the first half of 2022 to the second half of 2022. From there, crypto startup valuations fell another 15% to the first half of 2023, a year-over-year drop of nearly 70%.

● Vanguard Group increased its holdings of Bitcoin mining companies to approximately US$560 million

According to Decrypt, documents submitted by Vanguard Group, the world's second largest fund management company, to the U.S. Securities and Exchange Commission (SEC) show that its current holdings of Bitcoin mining company stocks have increased to approximately US$560 million, including a 60% increase in Marathon Digital MARA shares, from 10.9 million shares to 17.5 million shares (approximately US$280.5 million); and an 18% increase in Riot Blockchain shares, from 15.2 million shares to 17.9 million shares (approximately US$281 million).

● Nomura Securities subsidiary Laser Digital expands cryptocurrency venture capital unit, appoints new partners

According to The Block, Nomura Securities' digital asset subsidiary Laser Digital has appointed industry veteran Florent Jouanneau as a new partner for its venture capital business. Despite low financing levels across the industry, Laser Digital plans to make another 10 investments in early-stage web3 startups this year.

It is reported that before joining Laser Digital, Jouanneau worked at White Star Capital, a venture capital firm that invests in web3 and DeFi startups. He previously worked as a structured credit and ABS trader at Bank of America, and has held sales and trading positions at UBS and Natixis, a subsidiary of BPCE Group.

● Data: About 592,000 bitcoins were traded at $30,200, accounting for 3.45% of the circulating supply

According to Glassnode data, approximately 592,000 Bitcoins (equivalent to 3.45% of the circulating supply) were purchased at a price of $30,200. This suggests that a small price fluctuation in either direction could cause 3.45% of the circulating supply to enter a profit or loss state, respectively. In addition, 3.71% of the circulating supply of Bitcoin (equivalent to 637,000 BTC) was purchased at a price of $16,500, and 3.05% (equivalent to 523,000 BTC) was purchased at a price of $26,800.