The dramatic decline of NFTs
The NFT market, which peaked at $526 billion in May 2022, has
shrunk to $18 billion, a 97% drop. NFTs dominated the market
between 2021 and 2022, with collections like CryptoPunks and Bored
Apes coveted by celebrities and investors. For example, CryptoPunk
#5822, sold for $23.7 million in 2022, has seen its value drop
significantly. Similarly, Bored Ape #8817, sold for $3.4 million in
2021, was followed by recent Bored Ape sales at much lower prices,
like $665,000, reflecting significant market devaluation. Investors
who acquired NFTs during the peak are facing substantial losses,
with many assets losing nearly all value: 95% of people holding NFT
collections have an investment valued at zero, according to an
analysis by DappGambl.
Bitfarms acquires Stronghold Digital Mining for $175 million
Bitfarms (NASDAQ:BITF) agreed to acquire Stronghold Digital
Mining (NASDAQ:SDIG) for $125 million in equity value and $50
million in assumed debt. The merger, approved by both companies and
expected in Q1 2025, will see Stronghold shareholders receive 2.52
Bitfarms shares for each share held. The merger will increase
Bitfarms’ capacity to 307 MW, advancing its goal of 950 MW by
2025.
Trader loses $55 million in DAI in phishing attack
A cryptocurrency trader lost $55.47 million in DAI after falling
victim to a phishing attack. The victim, identified as ‘0xf2B8,’
mistakenly transferred ownership of their collateralized debt
position (CDP) in DeFi Saver Proxy to a phishing address. The
attacker used the Inferno Drainer kit to gain control of the
contract and drain the funds. So far, 27.5 million DAI have been
exchanged for 10,625 ETH, highlighting the ongoing risks of
phishing in the crypto sector.
U.S. jobs data revision boosts Bitcoin
The U.S. job market was revised to show 818,000 fewer jobs than
expected between March 2023 and March 2024, indicating a weaker
economy. The revisions suggest the Federal Reserve’s monetary
policy may become more flexible, benefiting Bitcoin. Bitcoin
(COIN:BTCUSD) surged to $60,535, a 2.6% increase in the last 24
hours. Ethereum (COIN:ETHUSD) gained 2.45% to $2,635.
Mt. Gox moves $700 million in Bitcoin, sparking refund speculation
On Wednesday morning, the defunct exchange Mt. Gox made its
largest transaction in weeks, transferring over $700 million in
Bitcoin to unknown wallets. A total of 12,000 BTC and 1,265 BTC
were moved, totaling around $784 million. This transfer may signal
new refunds to creditors affected by the 2014 hack.
Privacy and the true purpose of Bitcoin transactions
Bitcoin is celebrated for its ability to guarantee finality in
transactions, making them technically irreversible after six block
confirmations. However, without strong privacy, this guarantee can
be compromised by legal and social interventions. Privacy prevents
third parties from identifying the involved parties, protecting
transactions from external coercion. Technologies like Silent
Payments promise to enhance this privacy, ensuring Bitcoin
transactions can achieve their true potential of final,
irreversible, and intervention-resistant settlement, solidifying
Bitcoin as a revolutionary form of money. With reusable payment
codes or stealth addresses, Silent Payments allows users to receive
payments at a single static address without compromising
privacy.
BlackRock’s Ether ETF nears $1 billion in net inflows
BlackRock’s Ether ETF, the iShares Ethereum Trust (NASDAQ:ETHA),
is close to reaching $1 billion in net inflows, according to
Morningstar data. As of August 21, the fund had raised $992
million, maintaining its lead among cryptocurrency ETFs. Although
net assets are below $1 billion due to Ether’s underperformance,
the fund continues to attract significant interest, especially
among investment advisors.
Tron sets revenue record with SunPump memecoin
The Tron blockchain, led by Justin Sun, achieved a record daily
revenue of $3.84 million, driven by the SunPump memecoin generator.
The success of SunPump, which enables memecoin creation on the Tron
network, highlights the platform compared to Ethereum and Solana.
SunPump’s revenue reached $1.39 million, with a significant peak of
$400,000 on August 20. Tron’s stablecoin volume, exceeding $60
billion, also contributes to the project’s success.
Aptos Foundation and Myco join forces to decentralize Web3
streaming
The Aptos Foundation (COIN:APTUSD) has partnered with Myco, a
Web3 streaming platform, to integrate its infrastructure into the
Aptos blockchain, aiming for the complete decentralization of the
service. The collaboration includes launching a native utility
token on Aptos in Q4 2024. Myco views this integration as a crucial
milestone in making Web3 streaming widely accessible, aligning with
Aptos’ mission of technological advancement.
Tether to launch UAE Dirham-pegged stablecoin
Tether, the issuer of USDT (COIN:USDTUSD), announced the launch
of a new stablecoin pegged to the UAE Dirham (AED) in partnership
with Phoenix Group and Green Acorn. The new stablecoin will be
pegged 1:1 to the AED and backed by reserves in the Emirates. This
launch aims to facilitate regional and international transactions,
boost trade, and offer protection against currency fluctuations,
aligning with the growing regulation and expansion of the crypto
market in the UAE.
PKT launches on Base to transform the film industry
PKT, a decentralized media network, is launching on Coinbase’s
(NASDAQ:COIN) Base blockchain. The project aims to bring
transparency to film production using blockchain and smart
contracts. Starting with its BIA streaming platform, PKT seeks to
align incentives and facilitate access for the general public.
Additionally, it will offer a token airdrop in three phases
throughout 2025.
Compliance challenges for crypto projects in the US
EigenLayer and associated projects like Renzo and Ether.Fi
attempted to avoid U.S. regulation by allocating tokens via
offshore entities and blocking U.S. residents. However, analyses
show that Seattle-based Eigen Labs employees were able to claim
these restricted tokens using strategies like VPNs. This behavior
reveals selective compliance and a possible deviation from
regulatory practices, highlighting the challenge of maintaining
effective geo-blocking.
Tokenization and the redundancy of digital receipts
BlackRock’s BUIDL tokenized funds (NYSE:BLK) and Franklin
Templeton’s FOBXX (TG:TESL) have nearly $1 billion in assets.
However, they use blockchain only for digital records while
retaining traditional transfer agents. According to a CoinDesk
report, this approach results in redundancy and inefficiency, as
blockchain could entirely replace intermediaries. True financial
innovation requires assets to be issued directly on the blockchain,
eliminating the need for digital receipts and intermediaries,
offering greater transparency, efficiency, and cost reduction.
Prometheum advances with Uniswap and Arbitrum token custody
Prometheum, a U.S.-regulated crypto broker, has aligned with the
SEC’s vision by adding Uniswap (COIN:UNIUSD) and Arbitrum
(COIN:ARBUSD) tokens to its custody service, which already includes
Ether (COIN:ETHUSD). The company plans to treat these tokens as
securities, reinforcing its commitment to regulatory compliance.
While much of the industry challenges the SEC, Prometheum is taking
a distinct path, preparing to onboard institutional clients by the
end of the month.
Cardano proposes Chang hard fork for August 27
Cardano’s (COIN:ADAUSD) Intersect organization has proposed the
Chang hard fork for August 27, subject to final confirmation on
August 23. The proposal follows 80% adoption of Node 9.1 by stake
pool operators, although exchange liquidity remains a concern.
Named after Phil Chang, the upgrade will enable greater ADA holder
participation in network governance and introduce smart contract
enhancements, marking a step forward in Cardano’s
decentralization.
PIP Labs raises $80 million in Series B for Story Protocol
Palo Alto-based startup PIP Labs raised $80 million in a Series
B round led by 16z Crypto and Polychain Capital to advance the
Story Protocol, a layer 1 blockchain focused on intellectual
property (IP) management. The funding brought the company’s total
to $140 million, raising its valuation to $2.25 billion. The
technology allows for the tokenization and protection of IP,
promising compensation for creators when AI is trained using their
work.
El Salvador trains 80,000 public servants in Bitcoin
El Salvador’s National Bitcoin Office (ONBTC) has launched a
Bitcoin training and certification program for 80,000 public
servants. This program is part of a governance initiative created
by President Nayib Bukele, aiming to elevate administrative
standards. The course covers nine modules, including Bitcoin,
Blockchain, and Cybersecurity, and is part of El Salvador’s ongoing
effort to promote cryptocurrency education, aligning with its
national Bitcoin adoption strategy.
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