On October 3rd, President of the Cleveland Federal Reserve, Loretta Mester, delivered a speech in which she acknowledged that, despite progress, inflation rates remain elevated, and the risks to inflation forecasts still tend to the upside. However, medium to long-term inflation expectations continue to reasonably stabilize within the range aligned with the Federal Reserve’s 2% inflation target. I am inclined to believe that we may need to raise interest rates once again this year and maintain them for a period. The outlook presents a considerable degree of uncertainty, particularly in terms of whether the favorable progress in inflation rates over the past three months can be sustained and whether labor market conditions will remain robust as the pace moderates.
2. Judge Rejects SEC’s Intermediary Appeal Motion in Ripple Case link
On October 4th, the Southern District of New York Court announced the rejection of the U.S. SEC’s motion for an interlocutory appeal in the Ripple case, and the SEC’s request for a stay was also denied as it lacked practical significance. The trial for this case is scheduled to commence on April 23, 2024, at 9:00 AM. The court maintains its stance that objective and reasonable purchasers do not fall under the category of acquiring expected profits through the purchase of Ripple tokens. The SEC emphasized that the Terraform ruling is not in conflict with this case; Terraform distributed tokens to retail investors, claiming additional profits, whereas Ripple’s promotional materials for profit-making were exclusively provided to institutional buyers.
3. Former BlackRock Executive Speculates SEC May Simultaneously Approve All Spot Bitcoin ETFs link
On October 6th, former BlackRock executive Martin Bednall, speaking at the CCData Digital Assets Summit, suggested that the SEC may potentially approve all pending applications for physically-backed Bitcoin ETFs simultaneously. Steven Schoenfeld, the CEO of MarketVector Indexes under VanEck, concurred with this notion and mentioned that the approval process could be completed within the next 3 to 6 months. This anticipation stems from the SEC’s recent approach of seeking feedback rather than outright rejection of ETF applications. Schoenfeld added that the SEC’s recent loss in the Grayscale case might imply the necessity of allowing Grayscale Bitcoin Trust to convert into a physically-backed Bitcoin ETF.
4. UBS Initiates First Tokenized Currency Market Fund on Ethereum link
On October 2nd, one of the world’s largest asset management companies, UBS, initiated the first-ever tokenized money market fund pilot, ‘Project Nexus,’ on the Ethereum blockchain. This fund is part of the ‘Guardians Programme’ led by the Monetary Authority of Singapore (MAS). The pilot enables UBS to explore various fund activities on the blockchain, including subscriptions and redemptions.
5. Bitwise Announces Launch of Two Ethereum Futures ETFs: AETH and BTOP link
On October 3rd, Bitwise Asset Management officially announced the launch of two Ethereum futures ETFs: the Bitwise Ethereum Strategy ETF (ticker: AETH) and the Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF (ticker: BTOP). Investors can now, for the first time, access Ethereum futures investments through widely popular and regulated ETF formats. However, the trading volume on the first day of listing was notably low.
ProShares, VanEck, and Bitwise collectively introduced six Ethereum futures ETFs, with a combined total trading volume of $1.92 million on their debut day. VanEck’s fund has the lowest expense ratio at 0.66%, while the two Bitwise funds have expense ratios of 0.85%, and the ProShares ETF has an expense ratio of 0.95%.
6. Brazilian Government Unveils Blockchain-Based Digital Identity Card link
On October 1st, the Brazilian government introduced a blockchain-based digital identity card. The states of Rio de Janeiro, Goiás, and Paraná will be the first to issue identity documents using a private blockchain developed by the Brazilian National Data Processing Service (Serpro). A decree issued on September 25th states that by November 6th, the nationwide rollout of identity documents through blockchain technology should be completed, enabling over 214 million Brazilians to soon utilize blockchain technology for digital identity verification.
7. El Salvador Establishes Its First Bitcoin Mining Pool: Lava Pool link
On October 5th, Volcano Energy announced a new partnership with Luxor Technologies to establish El Salvador’s first Bitcoin mining pool, ‘Lava Pool,’ with the aim of decentralizing Bitcoin mining and leveraging the regulatory clarity in El Salvador. Volcano Energy is constructing Bitcoin mining facilities using wind and solar energy, generating a capacity of 241 megawatts of renewable energy, some of which will be used for Bitcoin mining while providing affordable electricity to the local communities.
In June, Volcano Energy secured a $1 billion investment commitment, led by Tether Energy, with $250 million already deployed for developing renewable energy and Bitcoin mining operations in the country. 23% of its net income is contributed to the Salvadoran government as part of a public-private partnership initiative. Volcano Energy is co-led by 23-year-old Bitcoin advocate Josue Lopez from El Salvador and Max Keiser, who serves as Chairman and an advisor to the President of El Salvador.
8. Multiple MPI Licenses Granted in Singapore
a. Coinbase Singapore Secures Major Payment Institution License from Monetary Authority of Singapore (MAS) link
On October 2nd, Coinbase announced that Coinbase Singapore has obtained a Major Payment Institution License (MPI) from the Monetary Authority of Singapore (MAS). Coinbase Singapore has developed and launched products tailored specifically for the Singaporean market and will be implementing training and recruitment initiatives at its Singapore Technology Hub. Prior to this, Coinbase had achieved VASP registration in Spain, Italy, Ireland, and the Netherlands.
b. Ripple Subsidiary Awarded Major Payment Institution License by MAS link
On October 4th, Ripple’s Singapore subsidiary, Ripple Markets APAC Pte Ltd, obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), allowing the company to offer regulated digital asset token services in the country.
c. Sygnum Singapore Obtains MPIL from MAS link
On October 3rd, Sygnum’s subsidiary, Sygnum Singapore, a Swiss cryptocurrency bank, obtained a Major Payment Institution License (MPIL) from the Monetary Authority of Singapore (MAS). This license enables the company to provide cryptocurrency brokerage services to eligible investors and institutions in Singapore. Additionally, the company plans to expand its regulated products to other Asia-Pacific (APAC) markets, including Hong Kong.
d. GSR Markets Receives Principle Approval for Major Payment Institution License from MAS link
On October 2nd, cryptocurrency market maker GSR announced that its Singapore subsidiary, GSR Markets, has received in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution License and is actively pursuing the issuance of the formal license. The Chief Operating Officer of GSR expressed that MAS has taken the lead in providing a clear framework for digital asset utility, and GSR will continue to play its role as a liquidity provider within the ecosystem.
9. SBF’s Weekly Summary
a. Michael Lewis Claims SBF Once Considered Paying $5 Billion to Keep Trump from Running for President link
On October 2nd, Michael Lewis, the author of ‘The Big Short,’ claimed that the founder of the failed cryptocurrency exchange FTX, SBF, had contemplated offering $5 billion to Donald Trump to prevent him from running for president. SBF was also reportedly investigating the legality of such a payment. Prior to the collapse of FTX, SBF had been actively involved in political contributions.
b. Michael Lewis’ New Book ‘Going Infinite’ Reveals Details on SBF Regaining CZ’s Stock and More link
On October 4th, it was mentioned that, in order to avoid increasing regulatory scrutiny, SBF had actively proposed repurchasing the shares of FTX from Zhao Changpeng, which Zhao had acquired for $80 million at the end of 2019. Zhao initially demanded $2.2 billion, and SBF agreed to pay this amount. However, just as the formal agreement was about to be signed, Zhao suddenly requested an additional $75 million, which SBF also agreed to, thus completing the equity repurchase. Additionally, SBF had concerns about his employees becoming wealthy due to the substantial holdings of SRM tokens after a surge in the price of Serum (SRM). To address this, SBF modified the release rules for SRM tokens, locking the employees’ SRM tokens for a period of seven years.
c. U.S. Prosecutors: SBF’s Wealth Built on Lies link
On October 5th, according to Bloomberg, U.S. Assistant Prosecutor Nathan Rehn accused SBF of ‘lying to the world’ while building his cryptocurrency empire FTX, with only his friends and girlfriend knowing the truth. SBF allegedly used investor deposits for FTX as his personal bank account before the company went bankrupt a year ago, and only SBF’s inner circle was aware that he was using customer funds to finance his lifestyle. ‘He has wealth, he has power, he has influence, but it’s all built on lies, and he’s perpetrating a massive fraud, taking billions of dollars from thousands of victims,’ said Rehn. SBF’s lawyers countered by stating that SBF worked hard, did not drink or party, attended MIT, had no intent to defraud anyone, and the rise and fall of FTX reflected changes in the entire cryptocurrency industry.
According to Cointelegraph, the defense argued that SBF was simply a young entrepreneur who made ‘unsuccessful’ business decisions. The defense denied any secret dealings between Alameda and FTX or any backdoor theft of customer funds. The defense further asserted that every transaction was transparent and legal. The legal team argued that SBF believed that FTX providing loans to Alameda was a legitimate business transaction with the market maker.
d. U.S. Department of Justice Investigating SBF’s Two Luxury Planes Valued at Approximately $28 Million link
On October 6th, according to Bloomberg, the U.S. Department of Justice is investigating two luxury planes owned by SBF, a Bombardier Global 5000 BD700–1A11 and an Embraer Legacy EMB-135BJ. A Bahamian charter airline company claimed that it purchased these planes from SBF last year for $28.4 million based on an oral agreement and financed by FTX. Prosecutors allege that these two aircraft are proceeds from the multi-billion-dollar fraud case currently under trial involving SBF in Manhattan federal court.
10. Layoffs Announced by Ledger and Chainalysis
a. Hardware Wallet Manufacturer Ledger Announces 12% Workforce Reduction link
On October 6th, Pascal Gauthier, the CEO of cryptocurrency wallet hardware manufacturer Ledger, announced that the company will be reducing its workforce by 12%. Gauthier cited macroeconomic headwinds as limiting their revenue generation capabilities. To adapt to the current market conditions and business realities, a reduction in roles across global operations is necessary. According to LinkedIn data, the company has 734 employees, and a 12% reduction would mean cutting approximately 88 jobs. Prior to this, Ledger had announced that it had raised most of the funds from a $109 million financing round, valuing the company at around $1.4 billion.
b. Chainalysis to Cut Approximately 150 Jobs, Shifting Focus to Government Initiatives link
On October 3rd, according to Forbes, Michael Gronager, the CEO of blockchain analytics company Chainalysis, informed employees via email about a workforce reduction of approximately 150 individuals, slightly exceeding 15% of its total workforce of 900 employees. The company was valued at $8.6 billion in 2022. Chainalysis has scaled back its investments in the private sector, shifting its focus to government agencies, which now contribute to 70% of the company’s revenue.
Fundraising
- Fairblock, a privacy blockchain based on Cosmos SDK, has successfully concluded a $2.5 million Pre-Seed funding round. link
- Phaver, a Web3 social protocol, has secured $7 million in funding. link
- Cicada Partners has completed a $9.7 million Pre-Seed financing round. link
- Convergence RFQ, a Solana-based trading platform, raised $2.5 million in seed funding. link
- Blackbird has announced the completion of a $24 million Series A financing round led by a16z. link
- Trinetix, a blockchain product development company, has secured $10 million in strategic financing. link
- ParaFinance, a DeFi derivatives lending platform, has completed a $5 million funding round. link
- Accumulated Finance V2, a liquidity staking platform, has successfully concluded a private placement funding round. link
- NexGami has raised $2 million in seed funding, with participation from Polygon Ventures and others. link
Learn more, check out crypto-fundraising.info.
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