Today's news tips:
1. Belgian Financial Supervisory Authority: BTC, ETH and other cryptocurrencies without issuers are not securities and do not need to comply with financial regulations
2. Binance issued the Web3 Industry Recovery Initiative (IRI) and disclosed the wallet addresses of 1 billion BUSD
3. ConsenSys: The privacy policy update is intended to provide transparency rather than respond to regulatory needs, and the information collected has not changed
4.8 EIPs have been included in the consideration of the Ethereum Shanghai upgrade, including EIP-4895 and EIP-4844
5. MakerDAO cancels the use of renBTC as collateral
6. Solana Foundation lost over $180 million in crypto assets due to FTX bankruptcy
7. Wu Jihan's crypto financial services platform Matrixport is seeking to raise $100 million at a valuation of $1.5 billion
8. Binance releases Merkle tree BTC asset reserve proof
Regulatory News
European Parliament approves EU Digital Decade policy to build blockchain-based public services
The European Parliament plenary voted 529 to 22, with 25 abstentions, for the EU Digital Decade policy plan, which includes investing in cross-border blockchain infrastructure as part of its 2030 goals. Existing blockchain initiatives in Europe may receive more support to build blockchain-based public services. The policy document sets out ambitions for the EU to achieve its 2030 digitalization goals. It outlines large-scale, so-called "multinational projects" to achieve these goals, covering topics such as building a common data infrastructure, strengthening high-performance computing, rolling out 5G internet corridors, and investing in blockchain and web3 solutions.
Belgian Financial Supervisory Authority: BTC, ETH and other cryptocurrencies without issuers are not securities and do not need to comply with financial regulations
According to CoinDesk, the Belgian Financial Services and Markets Authority (FSMA) recently stated that cryptocurrencies such as BTC and ETH without issuers are not securities. Belgian rules are "technically neutral," and they believe that classification as financial instruments or securities should not depend on whether the asset uses blockchain or something more traditional. However, crypto companies still need to comply with relevant regulations such as anti-money laundering.
After discussing the attributes of crypto assets, FSMA stated that if crypto assets are not securities, investment tools or financial instruments, attention must be paid to any other legislation that may apply; if crypto assets are regarded as securities or investment tools based on Prospectus Regulation or Prospectus Law, attention must also be paid to any other legislation that may apply, such as rules for managing market abuse and rules for controlling crowdfunding.
UK House of Commons votes in favor of bill giving local law enforcement powers to seize crime-related cryptocurrencies
According to CoinDesk, the House of Commons of the British Parliament voted in favor of a bill that would help law enforcement agencies seize cryptocurrencies related to terrorist activities, the Economic Crime and Corporate Transparency Bill. The bill originally gave local law enforcement agencies the power to seize, freeze and recover cryptocurrencies related to crime. During the second reading, MPs called for the scope of the amendment to be expanded to anti-terrorism legislation. The bill will continue to be reviewed in Parliament before formal legislation.
NFT
US law firm Scott + Scott announces investigation into Yuga Labs
According to Businesswire, the US law firm Scott + Scott Attorneys at Law LLP announced an investigation into Yuga Labs to investigate whether some of its officers, directors, promoters and company insiders violated federal securities laws. Scott + Scott said that if anyone has purchased BAYC, MAYC, BAKC, ApeCoin tokens or virtual land and suffered losses from their investment, they can contact their lawyers.
original universe
Sony acquires Metaverse sports portal Beyond Sports
According to Sony's official website, Sony announced the acquisition of AI data analysis and visualization company Beyond Sports, and added Beyond Sports to Sony's sports business. Beyond Sports will work with Hawk-Eye and Pulselive as part of Sony to promote the development of Sony's sports business. It is reported that the acquisition price is between US$35.36 million and US$70.72 million.
Beyond Sports is positioned as a metaverse sports portal and is an AI-based data analysis and visualization company. Its Emmy Award-winning visualization platform provides real-time digital sports engagement solutions for leagues, broadcasters, brands and ultimately consumers, and delivers sports content from traditional media to the metaverse.
Hangzhou's new policy supports the integrated application of new technologies such as the Metaverse and blockchain in the fields of animation, games and e-sports
According to the official website of Zhejiang Government Service Network, the General Office of Hangzhou Municipal Party Committee and the General Office of Hangzhou Municipal Government recently jointly issued the "Several Opinions on Promoting the High-Quality Development of Hangzhou's Animation, Games and E-sports Industries in the New Era" (hereinafter referred to as the "Opinions"). The "Opinions" pointed out that we must adhere to integrated development. Based on the integration and innovation of "animation +", "game +", "e-sports +" and "metaverse +", we will promote the integrated development of Hangzhou's animation, games and e-sports industries with digital economy, science and technology, culture and tourism, sports, modern manufacturing, finance and other industries. The "Opinions" also pointed out that we should support the application of new technologies. We will support the integrated application and innovation of new technologies such as metaverse, cloud computing, artificial intelligence, Internet of Things, blockchain, etc. in the animation, games and e-sports industries, and provide support.
Project News
Security agency: A fake account pretending to be the official Twitter account of Flow used airdrops to defraud user authorization, and thousands of people have been deceived
Web3 security infrastructure company GoPlus Security tweeted that it has discovered a large phishing scam with 4,565 transactions. The attacker forged the official Twitter account of Flow and purchased 157,600 fake followers. Using fake Flow high-value airdrops, users were lured to click on phishing websites, which were actually fraudulent authorizations. Thousands of people have been fooled, and the attackers have made millions of dollars in profits. On-chain data shows that new users are constantly being deceived. GoPlus reminds everyone to be cautious and not to trust malicious addresses that may lead to the liquidation of assets.
Amazon commissions independent film and television production company AGBO to shoot a TV series about FTX
Amazon Studios, a subsidiary of tech giant Amazon, has commissioned a TV series about the scandalous collapse of the FTX exchange, Variety reported. Independent film and television production company AGBO will be responsible for the production of the new series. The studio is led by American directors and producers Anthony Russo and Joseph Russo, collectively known as the Russo Brothers. The series is expected to start filming in early 2023 and will consist of eight episodes. American writer, producer and director David Weil will be responsible for writing and producing the pilot episode of the series. In addition to executive producing, the Russos are also in talks to direct. Other executive producers include Mike Larocca, Angela Russo-Otstot and Scott Nemes of AGBO, and Natalie Laine Williams.
According to sources, the Amazon series will be based on "inside reporting" from a number of journalists who have covered FTX and Bankman-Fried, though the source material the show will draw inspiration from is being kept under wraps at this time. The source also noted that multiple Marvel actors who the Russos have worked with in the past have been discussed joining the show in key roles, but all of these discussions are preliminary at this time.
Binance launches Web3 Industry Recovery Initiative (IRI) and discloses 1 billion BUSD wallet addresses
Binance published a document introducing the details of the Web3 Industry Recovery Initiative (IRI) and disclosed the wallet address information of the initial commitment of 1 billion BUSD: 0x043a80999cEe3711D372FB878768909fbE7F71E6. It intends to increase this amount to $2 billion when needed in the near future. So far, Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have also pledged to participate, with an initial total commitment of approximately $50 million. The addresses of other participants will be announced next week.
Binance states that the Industry Recovery Initiative (IRI) is not an investment fund. In order to obtain investment opportunities obtained through the IRI application process, each participant will need to reserve committed capital (which can be stablecoins or other tokens - each participant can decide at their own discretion) within a public address to ensure transparency. Each participant, including Binance, will review investment opportunities on a case-by-case basis and make investment decisions independently. Willing to explore other transaction structures besides the public address. This initiative is expected to last for approximately six months and will maintain flexibility in the investment structure. Each participant can withdraw any remaining unused funds from the public address at the end of the program. Binance said it will look for projects with the following characteristics: 1) innovation and long-term value creation, 2) clearly defined and viable business models, and 3) a strong focus on risk management.
Approximately 150 applications have been received from companies seeking IRI support. In addition to financial support, selected founders and projects will be provided with comprehensive support - from formation, technical execution, fundraising, etc.
In addition, in response to Willy Woo's questioning of the high proportion of BNB in Binance's SAFU Fund, Zhao Changpeng responded that the SAFU Fund is composed of BTC, BUSD and BNB. Since the last rebalancing, the price of BNB has risen faster than BTC; in addition, the $1 billion industry recovery fund will be all BUSD. After Sun Yuchen posted a tweet "Supporting the BNB Chain ecosystem and BUSD, and a major partnership is about to be announced", some media reported that Sun Yuchen and Tron DAO have applied to inject capital into Binance's industry recovery fund.
In addition, Binance also released the Merkle Tree BTC asset reserve certificate today. Binance clarified that the initial 1 billion BUSD of the Industry Recovery Fund came from its own assets.
MakerDAO removes renBTC as collateral
Dai stablecoin issuer MakerDAO passed a governance proposal to remove the use of renBTC as collateral and reduce exposure to assets deemed risky by the DAO. RenBTC is a wrapped Bitcoin asset developed by Ren Protocol, a project backed by Alameda Research.
Earlier today, Maker governance voted to cancel the RENBTC-A vault type and will initiate the liquidation process in the coming days.
Musk: Twitter will pilot a new multi-color authentication system next week
According to TechCrunch, Elon Musk said Twitter will pilot a new multi-color verification system next Friday. Corporate accounts will be certified with a gold logo, government officials will be certified with a gray logo, and blue certification will be for individuals, including previously verified accounts and new users who participate in the $8 monthly paid plan. Musk said that all verification information will be manually reviewed before the new certification system is officially launched.
Affected by the industry environment, Argentine crypto exchange Lemon Cash laid off 38% of its employees
According to CoinDesk, Argentine cryptocurrency exchange Lemon Cash announced a 38% layoff of about 100 employees, citing a challenging industry environment and a lack of clear prospects for recovery in the venture capital market. The company's CEO Marcelo Cavazzoli said in an interview that both the Argentine and Brazilian offices were affected. In July 2021, Lemon completed a $16.3 million Series A financing round led by British fund Kingsway Capital. On November 3, Lemon withdrew almost all of the funds invested in Alameda Research, leaving only a "small portion" of FTX Ventures' investment in Lemon. Cavazzoli said the exchange does not expect to recover the funds. In addition, Lemon issued a certificate of reserves and a certificate of liabilities certified by an auditor last week. Founded in 2019, Lemon has 1.6 million users in Argentina and has issued 760,000 prepaid crypto cards.
8 EIPs have been included in the Ethereum Shanghai upgrade, including EIP-4895 and EIP-4844.
According to CoinDesk, on Thursday, Ethereum developers decided to consider eight Ethereum Improvement Proposals (EIPs) for inclusion in the network's upcoming hard fork called "Shanghai". The hard fork upgrade will unlock ETH withdrawals for beacon chain stakes (EIP-4895), and may include proposals to address scalability issues (EIP 4844) and other proposals aimed at improving the Ethereum Virtual Machine (EVM) (EOF implementation-related proposals EIP-3540, EIP-3670, EIP-4200, EIP-4570, EIP-5450). Other proposals include EIP-2537, which adds BLS precompilation. With this proposal, Ethereum can create more secure cryptographic proofs and allow better interoperability with the beacon chain.
But there is no consensus on the timing of the Shanghai hard fork upgrade. Some developers want to speed up the Shanghai upgrade process sometime in March 2023 and include only the ETH withdrawal EIP and some other smaller EIPs, and then the subsequent fork will include another important upgrade EIP-4844; while other developers hope that the Shanghai hard fork will be a larger and more comprehensive upgrade, including two major upgrades at a later time.
Having an EIP “Consideration for Inclusion” (CFI) means that developers will work on developing these proposals and will run them through the Devnet testnet. However, there is no guarantee that all of these proposals will eventually be included in the Shanghai upgrade.
Starkware has open-sourced its programming language Cairo 1.0, which will support writing StarkNet contracts in the first quarter of next year
According to the official announcement, Ethereum scaling solution Starkware announced the open source of a new version of its programming language Cairo, Cairo 1.0. This is the first step in open sourcing its entire blockchain stack for StarkNet. Developers can now compile and execute simple Cairo 1.0 programs for the first time.
According to reports, Cairo 1.0 is a fully typed language inspired by rust, making it easier and less error-prone to write the same logic. The Cairo 1.0 compiler was written from scratch, allowing faster feature development and more community participation. With Cairo 1., programs are provable in every possible branch, which is especially important for DOS protection and censorship resistance in StarkNet.
Officials said that this is not a release, more improvements are in progress, and the first version of the programming language is scheduled to be launched in the early first quarter of next year. StarkNet does not yet support Cairo 1.0, that is, Cairo 1.0 still does not support writing StarkNet contracts, and StarkNet syntax (storing variables/calling contracts/events and other system calls) will be added in the next few weeks. Cairo 1.0 will be supported on StarkNet in the first quarter of next year.
ConsenSys: Privacy policy update is intended to provide transparency rather than respond to regulatory needs, and the information collected has not changed
In response to the collection of user information in the updated privacy policy, Ethereum infrastructure development company ConsenSys said, “We believe in transparency and want to ensure that all users know what we collect and how we use it. This update will not result in more invasive data collection or data processing, nor is it in response to any regulatory changes or inquiries. The ConsenSys privacy policy has always stipulated that certain information about how users use our website will be automatically collected, and this information may include IP addresses.”
Earlier yesterday, ConsenSys updated its privacy policy, stating that when users use Infura as the default RPC in MetaMask, the corresponding IP address and ETH address will be collected when the user sends a transaction.
Solana Foundation loses over $180 million in crypto assets due to FTX bankruptcy
According to Cryptopotato, the Solana Foundation released a fact sheet showing that as of November 6, the organization held about $1 million in cash on FTX, but it said that these funds were "negligible" for its operations and accounted for less than 1% of its cash reserves. However, the Solana Foundation's losses in crypto assets are much greater. The fund holds about 3.43 million FTT and 134.54 million SRM, which are now trapped in FTX, with risk exposures of $75.46 million and $107.6 million, respectively.
In addition, the Solana Foundation also holds $40 million worth of Sollet assets (such as soBTC) and 3.24 million shares of FTX common stock. However, the Solana Foundation clarified that USDC and USDT on the Solana chain are risk-free. These two stablecoins are directly issued by Circle and Tether respectively, and are currently fully anchored.
Justin Sun responds to rumors of a merger between P2P and Huobi: the P2P brand will continue to exist
According to Wu Blockchain, several people familiar with the matter revealed that Poloniex, which Sun Yuchen acquired from Circle in 2019, will merge with Huobi, which he recently acquired, and the personnel of both parties have begun to integrate. Sun Yuchen responded that the P network brand will continue to exist.
Coingecko shows that Poloniex’s daily spot trading volume is only 1/10 of Huobi’s.
Ethereum Developers: Devnet 3 of the scaling solution EIP-4844 will be released on November 30
terence.eth, an Ethereum developer and the R&D team of Arbitrum, tweeted: “Today, we are working closely to rebuild EIP-4844 on top of the Capella hard fork, add all new network changes, and integrate the new KZG library. We are very happy to launch Devnet 3 for EIP-4844, scheduled for release on November 30. Arbitrum fully supports EIP-4844 and believes in the Rollup-centric roadmap. Since it will benefit from 4844 by reducing data gas fees, there will be great synergy.”
It is reported that EIP-4844 was jointly tested, implemented and released by developers from Coinbase, Prysm and Worldcoin. The proposal proposes to replace the expansion solution Danksharding with proto-danksharding. The proposal is committed to deploying most of the logic and transaction format and verification rules that constitute the complete Danksharding specification without actually implementing any sharding. Arbitrum developer Offchain Labs acquired Prysm's core engineering team Priysmatic Labs in October this year.
Financing News
Blockchain game publisher Fenix Games completes $150 million financing
According to VentureBeat, blockchain game publisher Fenix Games has completed a $150 million financing round, with Phoenix Group and Dubai venture capital firm Cypher Capital participating. This round of financing will be used to acquire, invest in and distribute blockchain games.
According to reports, Fenix Games will focus on the combination of game market economy and real-time operations, providing publishing services for all game models, including paid, free and blockchain games across all platforms. Chris Ko, CEO and co-founder of Fenix Games, said: "We are similar to a venture capital fund and are using the venture capital department to fund the next generation of games. We also hope to use our balance sheet to acquire a series of existing games in the Web2 field to build an investment portfolio."
Matrixport, the crypto financial services platform owned by Wu Jihan, is seeking to raise $100 million at a valuation of $1.5 billion
According to Bloomberg, Wu Jihan's Singapore-based encrypted financial services platform Matrixport is seeking to raise $100 million at a valuation of $1.5 billion, and has already received a $50 million investment commitment from major investors. According to disclosed investor information, Matrixport said it processes $5 billion in transactions per month, manages and custodies assets worth tens of billions of dollars, and has nearly 300 employees.
Earlier in August last year, it was reported that Matrixport completed a US$100 million Series C financing.
Crypto Payment Infrastructure Company XanPool Completes $41 Million Funding, Led by Target Global
According to Forbes, XanPool, a crypto payment infrastructure company that provides fiat currency and cryptocurrency exchange services, completed a $41 million financing in the second quarter of 2022, led by Target Global. Target Global invested $35 million and Antler Elevate invested $6 million. XanPool's valuation has reached $400 million. XanPool will use the new funds to accelerate market expansion in Europe, the Middle East, North Africa, and Latin America, and establish a research and development center in Thailand.
It is reported that XanPool is a payment and liquidity network that can realize a non-custodial crypto-to-crypto (C2C) network composed of liquidity providers, including crypto funds, money service operators and traditional export companies, who have idle funds in their crypto wallets, e-wallets or bank accounts. XanPool aims to become similar to the SWIFT network, which can also settle without holding its own liquidity, but is compatible with cryptocurrencies, fast payment services and e-wallets.