$1bn of ETH lost, JPMorgan dollar blockchain accounts, ETH upgrade Shapella launching, BlackRock tokenizing stocks+bonds, What the FOMC, Microsoft Testing Crypto Wallet, Circle Seeks to Register in FR
23 March 2023
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Table of Content
šļøThe 14 news you should be aware of
šøPE/VC funding
āļøPolicies and laws
šReports, here is the TLDR
šCharts of the week
š”Metaverse and NFT news, trends, and insights
š Blockchain, Crypto, and Web3 events calendar
š©āš»The job fair
šThe term of the week
šļø The 14 news you should be aware of
1. Polygon to help develop Immutable zkEVM secured by matic stakers
Polygon and web3 gaming blockchain project Immutable are collaborating to launch a Layer 2 blockchain network called Immutable zkEVM. Immutable zkEVM will leverage ZK-Rollup technology for scalable Ethereum smart contracts, and in the future, it will be secured by validators who stake Matic tokens.
2. Central bankers push bank deposit tokens as the mainstream digital currency.
Deposit tokens are part of bank ādeposits in digital form, where our own rights are embedded together in the form of a token and it can be transacted on a blockchain or a distributed ledger During BIS innovation, two central bankers discussed bank deposit tokens as the heart of future money.Ā CBDC is not likely to be the primary form of payment, just like cash is not today.
3. More than 90% of all-time DeFi insurance payout value was in 2022: OpenCover
According to a report by DeFi cover industry data specialistĀ Open Cover, More thanĀ $3 billionĀ was lost in exploits last year, 2022 proved a significant stress test for the DeFi insurance industry, paying out $34.4 million worth of claims ā over 90% of all-time payouts. Total of 19,839 policies sold, 552 claims, and 379 pay-outs across the leading on-chain DeFi cover providers to date.
4. State Street splits with Copper for digital asset custody
After the split, two questions remain about which alternative technology partner State Street will contract with and the impact on the launch date of State Streetās offering. However, State Street has significant internal technical expertise and built most of itsĀ digital asset custodyĀ solution in-house. Hence this is a matter of replacing a component, albeit an important one.
5. Over $1 billion of ether has been lost forever due to bugs and human error
According to research by Coinbase director Conor Grogan, with thousands of mistakes and bugs on the Ethereum blockchain, - $1.15B worth of ETH( 636,000) has beenĀ lost forever ā and thatās not including people that have lost access to their wallets.
6. Crypto Trading Tech Firm Coin Routes Wins Patent for āSmart Order Router.
Coin Routes, a startup that aims to help crypto hedge funds and other investors get the best price on trades, has won a patent for its system of routing transactions to exchanges and estimating costs. The invention allows āclients to keep control of their own private and exchange keys to their wallets and accounts
7. JP Morgan to pilot dollar blockchain accounts in Indiaās GIFT City financial center
Dollar payments in India are usually made by holding Nostro accounts at U.S.-based banks. In Indiaās GIFT City, an international financial center,Ā JP MorganāsĀ recently created branch has been given the green light for a pilot to act as an international settlement bank for other GIFT City banks. Ā GIFT city is considered a quasi-foreign territory with regulations that differ from the rest of India.
8. Ethereum's next big upgrade Shapella expected to hit main net on April 12
Ethereum core developers are targeting April 12 to release the highly-anticipated Shanghai-Capella upgrade, on the main net. The main feature of the upgrade isĀ EIP 4895, which aims to enable validator staking withdrawals on the main network. This critical function was not introduced during Ethereum's switch to a proof-of-stake consensus in September to ensure a safe transition.
9. Salesforce expands web3 offering beyond NFT Cloud
Salesforce launched Web3, a new offering from the CRM company, which is about more than launchingĀ NFTĀ collections. A key feature is Web3 Connect which imports web3 data, such as wallets and NFT collections into customer profiles.Ā
10. BlackRock Chair interested in tokenizing stocks, bonds
BlackRock Chairman Larry Fink as part of his annual letter wrote about the appeal of tokenization to the asset management industry, highlighting the industry shifting its focus from cryptocurrencies to tokenized assets driven by the fallout of FTX, in which Black rock invested. Black rock is continued to explore digital ecosystem areas such as permissioned blockchain and tokenization of stocks, and bonds.
11. Cryptocurrency Outlook Is Strengthened by U.S. Banking Turmoil: Coinbase
The medium to long-term outlook for the cryptocurrency market has been āreinforced to the upsideā following recent turmoil in the U.S. banking industry, More people now appreciate the fundamental value proposition of having an alternative to the traditional financial system, Coinbase report said.
12. Circle Seeks to Register in France, Ramping Up European Play
Circle, the issuer of USDC, is filing applications to register as a crypto service provider in France and obtain an e-money provider license. The company aims to make France a hub for its EU operations, which could allow them to focus on EU specific regulations around stablecoins to maintain continuity of service there. Circle plans for its euro-backed stablecoin, EUROC, to comply with the upcoming Markets in Crypto-Assets (MiCA) regulation.
13. What the FOMC? The Fed, Interest Rates, Dot Plots & What it All Means for Crypto
After a tumultuous couple weeks in the US banking system, the US Federal Reserve is expected to make an interest rate decision today, leaving analysts divided on expectations of the outcome. Despite earlier expectations of a 50 basis point hike, the recent economic volatility has changed predictions. The CME FedWatch tool shows an 86% probability of a 25-basis point increase, while Goldman Sachs expects the FOMC to pause hikes.
14. Microsoft Testing Crypto Wallet in its Web Browser Edge: Bleeping Computer
Microsoft is reportedly developing a self-custody wallet for its Edge web browser, even offering a swap feature in collaboration with Consensys. The wallet, which is currently in a limited testing phase, will allow users to control their funds directly, without the need for extensions. It is said to support NFTs, crypto swaps, and integrations with Coinbase and Moonpay. While Microsoft had not officially confirmed the project at the time of this report, similar features are already available in rival browsers Opera and Brave.
šø PE/VC funding Ā
1. A16z leads $40 million round for blockchain game set in Eve universe
Iceland-based CCP Games raised $40 million to build a new blockchain-based game set in the Eve Universe. The seed round was led by a16z, with other participants including Makers Fund, Bitkraft, Kingsway Capital, Hashed and Nexon, the company said in a press release.
2. Bitget acquires a controlling stake in BitKeep with additional investment at $300 million valuation
Crypto exchange Bitget acquired a controlling stake in crypto wallet BitKeep with an additional $30 million investment at a $300 million valuation. "The investment in the wallet is an important move for Bitget as it will expand its business territory to the wallet sector and help it provide native storage and asset management services," Bitget said in a statement.
3. Crypto slump leaves VCs eying startup bargains, but they're facing tighter pocket books
Crypto venture capitalists are looking around at the carnage in the industry and licking their lips at the deals on offer. The only problem is that it's not clear if anyone will give them money to invest.Ā Valuations are down, competition for deal allocation is easing and the crypto market has ā at least partially ā been cleansed of bad actors, so the VCs say. Yet many Limited Partners, burned from months of crypto freefall, are too fed up to care. Ā
4. Social platform OP3N secures $100 million valuation in Series A funding round: TechCrunch
OP3N raised $28 million led by Animoca Brands, according to a report from TechCrunch. The fundraising efforts bring the startup's valuation to $100 million, the report said. Other investors that participated in the round include Dragonfly Capital, Galaxy Digital, Ā Republic Crypto and New Enterprise Associatesā Connect Ventures.
5. Two Sigma, Flow Traders and Laser Digital back crypto trading venue CrossX
Digital assets trading firm Crossover Markets is launching a new trading venue, CrossX, to meet the liquidity requirements of institutions participating in the crypto markets. The firm has received $6.35 million in a seed round from leading participants in the trading industry ā including Two Sigma, Flow Traders, Wintermute Ventures and Nomura's Laser Digital.
6. 'We're not sharks': Haun Ventures' Sam Rosenblum on haggling hard in crypto investing
A year on from Haun Ventures raising $1.5 billion, the firm remains as cautious as ever when it comes to deploying capital.Haunās Sam Rosenblum shares why the firmās hunt for venture-like returns isnāt an attempt to ālowballā startups or ābe sharks.ā
7. Animoca Brands and Hex Trust's joint wallet venture Gryfyn raises $7.5 million
Web3 investing behemoth Animoca Brands and digital asset custodian Hex Trust have launched Gryfyn, a custodial wallet solution, in a joint venture. The wallet startup, which focuses on onboarding users into web3, raised $7.5 million from investors including Liberty City Ventures, Lavender Hill Capital Partners, Animoca Ventures, Leadblock Partners, Mind Fund and GameFi Ventures, according to a company release.
8. Paradigm funds auditing DAO Code4rena with $6 million token purchase
The DAO, which was first formed last year amid rising hacks resulting from smart contract vulnerabilities that have caused billions in losses, is working to solve inefficiencies that plague the traditional audit model.
9. Turkey's Metatime raises $11 million in seed funding amid rising crypto adoption
The Turkish crypto startup is developing an exchange, wallet, blockchain, NFT marketplace and a stablecoin.
āļø Policies and laws
1. White House blasts digital assets in a new report, sees little value in crypto
A White House report paints a dim picture of digital assets, arguing their use cases have not been fulfilled while suggesting they present risks to consumers and the broader financial system.Ā The report may signal a shift in approach by the Biden administration, from ostensibly agnostic about the sector to openly adversarial.Ā
2. IRS to formalize tax treatment of NFTs as collectables, similar to other art
The IRS and Treasury Department sought public comment on the current tax treatment of non-fungible tokens as collectables, the agencies said in a statement released Tuesday,.Ā The IRS said it also plans to define NFTs as collectables until āfurther guidance is issued.āĀ
3. Luxembourg law supports DLT securities as collateral
Luxembourg parliament adopted a bill that recognizes DLT-based securities as collateral. It also expands the definition of financial instruments to include those issued under the EUāsĀ DLT Pilot Regime, which comes into force later this month.
4. Australian regulator tells banks to report exposure to startups and crypto-related business: Report
The move comes in the wake of Silicon Valley Bank's collapse and global lender volatility. Australia's Prudential Regulation Authority (APRA) has asked banks to report their exposure to startups and crypto-related businesses, in some cases on a daily basis.
5. UK regulator FCA asks if fund tokenization is a high priority
Financial Conduct Authority(FCA) is keen to assess whether the tokenization of fund units is a high priority and whether they should consider amending regulations. Responses are requested by May 22. The FCA paper explored three aspects of tokenization: tokenizing the fundās units, a fund investing in tokenized securities, and whether or not funds can invest in crypto-assets
6. Taiwanās crypto industry welcomes the regulatory announcement
Taiwan will soon have special legislation to regulate cryptocurrency and its Financial Supervisory Commission will be in charge. The Financial Supervisory Commissionās chairman confirms the islandās top financial watchdog will regulate crypto. An initial framework for the law is expected by June, with an initial draft for later this year.
š Reports, here is the TLDR
The Deposit Token: SBA white paper on a digital Swiss franc - Swiss Banking
As the digital transformation sweeps through the economy and society at large, it requires support from efficient, widely accepted and secure means of payment. How can banks best support this development?Ā That question lies at the heart of the current work by the Swiss Bankers Association (SBA) on the concept of a digital Swiss franc. The Swiss Bankers Association (SBA) jointly with experts from its member institutions and academia, published a white paper on digital Swiss franc, the idea of a ādeposit tokenā (DT). In the report it outlines various designs of ātokenisedā deposits on the blockchain
The basic concept of the DT is derived from the ātokenisationā of deposits based on public blockchain technology. The DT is āprogrammable moneyā, i.e. a purely digital form of the Swiss franc that can be enhanced with programmable functions. The main use cases include the trading and settlement of digital assets, payments in the context of the āEconomy 4.0ā (including payments executed among machines within the Internet of Things), and decentralised finance applications.
Given the DTās character as a platform technology and a public good, further innovative areas of application are likely to emerge over time. Ensuring the DTās stability is crucial for its acceptance and widespread use. A digital Swiss franc resemble conventional deposits from an economic perspective as closely as possible. Since programmable tokens bear the hallmark of the issuing party, it is essential to ensure that different tokens can be exchanged for each other without complications and always be converted into conventional deposits at the same value. The white paper discusses three main variants of DT that can meet these requirements.
The paper concludes that the DT can be a viable means of ensuring the financial centreās competitiveness and strengthening the digital economy and its innovative power going forward, while also safeguarding Switzerlandās economic and technological sovereignty. In addition, advantages for private households and companies stem from the availability, usability, reliability and security of payments.
Feasibility studies are now needed to drive the DT concept forward. To this end, a dialogue must take place with the relevant authorities to bindingly resolve legal and regulatory issues. The SBA and its members are committed to obtaining this needed clarification and to continuing their joint work on the DT.
Comparison of digital forms of money
š Charts of the week
DAOs represent a new paradigm for organizational leadership and decision-making. They have the potential to create inclusive and participatory organizations that are more aligned with the values āāand interests of their members and enable new forms of collaboration and innovation.
The DAO Ecosystem Map 2022 from shows us what is currently relevant for DAOs and in which sectors they operate. Here are the 3 highlighted DAOs:
š³The service organization UniWhalesDAO focuses on providing liquidity for DeFi projects in the form of tokens as well as other services such as market making, trading and analysis. Besides, UniWhalesDAO is working on developing new tools and services that can help improve the DeFi ecosystem. This includes new analytics and data tools that can help investors and traders make more informed decisions.
šø ProsperDAO is a community that provides credit and loan services to individuals and businesses in the decentralized space. This includes, for example, creating new lending and borrowing protocols and mechanisms tailored to the needs of the DeFi ecosystem.
š¤The Media-DAO Forefront creates and manages so-called social tokens. Social tokens are a new type of digital assets that represent ownership of communities, creators, or other social entities and can be used to monetize various forms of social capital such as reputation, influence, and expertise.
In addition to the categories to which these three DAOs belong, our chart of the week also distinguishes between Protocol, Investment, Collector, Grants and Operation System DAOs. But they all have one thing in common: they are transparent, decentralized and autonomous
š”Metaverse and NFT news, trends, and insights
IQST - iQSTEL Announces Metaverse Solution Targeting $61 Billion Market
IQSTĀ today announced entering into a Joint Venture with GOTMY to accelerate the launch of a turnkey, white label metaverse solution for iQSTEL's telecommunication customers. The metaverse market size by revenue is estimated to currently be worth $61.8 billion and expected to grow to $426.9 billion by 2027.
Microsoft Azure to Host NVIDIA DGX Cloud for AI Supercomputing, and NVIDIA Omniverse Cloud for Building and Operating 3D Worlds; Companies to Connect Omniverse Platform to Microsoft 365 Applications
HCLTech launches service to help companies use metaverse for customers
HCLTech Metafinity will serve financial services, retail and consumer packaged goods, high-tech, telecom, manufacturing and life sciences and healthcare companies. It is available on the metaverse, SAP and Salesforce.
Meta's metaverse is on the back burner
A year and a half after renaming itself after its metaverse initiative, Meta has noticeably de-emphasized that vision for the future. Meta is fully in sync with a moment that has many large companies cutting headcounts, shuttering side projects and chasing the promise of generative AI. - Mark Zuckerberg Quietly Buries the Metaverse
South Korea launches āMetaverse Fundā to expedite domestic initiatives
With the help of the Metaverse Fund, South Korea will support the mergers and acquisitions of various firms from the metaverse ecosystem.
Enabling the metaverse with a device-edge-cloud continuum
No single company, network or technology can build the metaverse. Instead, the industry will have to tap into every available foundational technology across the ecosystem, from the very edge of the network all the way to the devices themselves. 5G and Wi-Fi, high-powered cameras and sensors, advanced hardware and software and graphics and audio will all have a role to play in creating the metaverse experience.
The Metaverse: What Brands Should Know Moving Forward
Importantly, consumers want to see the brands they know and trust in those virtual spaces. Companies that can position themselves and their clients in the metaverse will see growth. They just have to take the first step.
Whoās still buying real estate in the metaverse?
Over in the metaverse, though, real estate is undergoing a different sort of struggle, as itās tied so closely to the price of Ethereum. Average sales prices for parcels of virtual land have dropped from more than $11,000 to less than $2,000, according to WeMeta. But not all the news is bad.Ā
Metaverse Can Boost Employee Retention, Training and Growth for Insurance Industry, ISG Says
Insurers that leverage the metaverse now to attract a new generation of talent and tech-savvy customers will gain considerable market advantage, an expert with Information Services Group (ISG) said.
Flying Sheep Studios gets $1.2M in German government funding for metaverse game
The game is focused on cooperation, and community-driven experiences that will prioritize socializing, diversity and being the party as well as being part of the metaverse, eventually hosting events and concerts for players.
NVIDIA Redefines Workstations to Power New Era of AI, Design, Industrial Metaverse
NVIDIA announced six new NVIDIA RTXā¢ Ada Lovelace architecture GPUs for laptops and desktops, which enable creators, engineers and data scientists to meet the demands of the new era of AI, design and the metaverse.
Huobi Launches the Dominica Metaverse Bound Token (DMBT)
Huobi, the virtual asset trading platform, has announced the launch of the Dominica Metaverse Bound Token (DMBT). The launch of DMBT is part of the rollout of the Dominica Metaverse Digital Citizen (DMDC), which was authorized by the government of Dominica in collaboration with TRON and DMC Labs.
š Blockchain, Crypto, and Web3 events calendarĀ
ā¦.for the next couple of months
March 2023
NFT LA | Mar 20-23, 2023 | Los Angeles, USA
FOMO Asia Genesis Conference | Mar 20-23, 2023 | Hong Kong
Paris Blockchain Week 2023 | Mar 20-24, 2023 | Paris, France
DC Blockchain Summit | Mar 21, 2023 | Washington, DC
Art Basel | Mar 23-25, 2023 | Hong Kong
Nigeria Bitcoin Conference | Mar 24-25, 2023 | Lagos, Nigeria
American Metaverse Summit | Mar 29-30, 2023 | Miami, FL, USA
WOW Summit Hong Kong 2023 | Mar 29-30, 2023 | Hong Kong
Crypto Assets Conference 2023 | Mar 29-30, 2023 | Frankfurt, Germany
Miami NFT Week | Mar 30-Apr 2, 2023 | Miami, FL, USA
April 2023
Pantera Blockchain Summit | Apr 3-4, 2023 | San Francisco, CA, USA
NFT.NYC 2023 | Apr 12-14, 2023 | New York, USA
DAO Tokyo | Apr 13, 2023 | Tokyo, Japan
ETHGlobal Tokyo | Apr 14-16, 2023 | Tokyo, Japan
EthereumZuri.ch | Apr 14-16, 2023 | Zurich, Switzerland
Bitcoin Alive 2023 | Apr 15, 2023 | Sydney, Australia
HYFI Conference 2023 | Apr 20, 2023 | Ho Chi Minh, Vietnam
Sol.Ladies Build Hacker House | Apr 20-24, 2023 | Austin, TX, USA
Consensus 2023 | Apr 26-28, 2023 | Austin, TX, USA
Bitcoin Day Omaha | Apr 29, 2023 | Omaha, NE, USA
May 2023
Avalanche Summit 2023 | May 3-5, 2023 | Barcelona, Spain
MoneroTopia 2023 | May 5-7, 2023 | Mexico City, Mexico
Blockchain Economy Istanbul Summit | May 8-11, 2023 | Ä°stanbul, Turkey
NFT Tallinn | May 8-10, 2023 | Tallinn, Estonia
The Crypto and Digital Assets Summit | May 9-10, 2023 | London, UK
š CryptoVSummit | May 10, 2023 | Dubai, UAE
š Solana Taipei Hacker House | May 10-14, 2023 | Taipei City, Taiwan
š Crypto-Energy Summit | May 11, 2023 | Pittsburgh, PA, USA
š©āš»The job fair
Linera : Head of Community Growth, Remote
Livepeer : Growth Operations Manager, Remote
Coinbase : Associate Product Manager, Miami, FL
Consensys : Product Owner, United States/Remote
Portal : Blockchain and protocol engineer, San Francisco/Remote
šThe term of the week
Wallet: a non-physical storage device for Cryptocurrency that a person downloads as a software file and that remains connected to the internet. A Wallet (Software) can be downloaded and installed on a computer, run online via the cloud, or run on a smart device via a mobile application.
š Miscellaneous Resources
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