Visa's crypto strategy; Startup compensation; Ethereum staking withdrawals; Coinbase L2 & BUSD; Polygon ZK; Solana troubles; Oil traceability; Chainlink & Web2; Marco Polo; New funds and $250M raised.
2 March 2023
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Table of Content
🗞️The 12 news you should be aware of
💸PE/VC funding
⚖️Policies and laws
📚Reports, here is the TLDR
📈Charts of the week
💡Metaverse and NFT news, trends, and insights
🔦Company spotlight
📅Blockchain, Crypto, and Web3 events calendar
👩💻The job fair
📚The term of the week
📎Miscellaneous resources
🗞️ The 12 news you should be aware of
1. Ethereum steps towards staking withdrawals with successful testnet upgrade
Ethereum developers successfully launched the Shanghai Capella upgrade on Sepolia testnet at midnight ET, Tuesday. This deployment is a step in Ethereum's roadmap to allow validators to withdraw ether when the update is complete on mainnet. While Sepolia isn't open to permissionless validators, the testnet was launched in October 2021 and was used to test the Merge upgrade successfully. The deployment comes after developers ran the application on the Zhejiang testnet earlier this month, following the Shanghai upgrade plans that have been underway since 2020.
2. Visa's crypto strategy remains intact despite crypto winter
Yesterday, Reuters published an article claiming that Visa was “slamming the breaks” on new crypto initiatives; however, Visa’s head of crypto, Cuy Sheffield, strongly refuted that sentiment and reiterated Visa’s focus on crypto and crypto-related innovation. According to Sheffield, Visa is still forging new partnerships in the crypto space and still holds the long-term belief that fiat-backed digital currencies running on top of blockchain rails will be an important piece of the overall payments ecosystem.
3. Coinbase exchange unveils layer 2 blockchain to boost adoption
The Coinbase cryptocurrency exchange launched the testnet for Base, an Ethereum layer 2 blockchain network. Its stated goal is to create a low-cost, developer-friendly environment. The base will also be the home of the crypto exchange’s on-chain products. The Uniswap decentralized exchange (DEX) frequently has higher daily trading volumes than Coinbase. The lack of a token means Coinbase is less likely to attract regulatory interest on the topic.
4. Coinbase announces suspension of BUSD trading beginning March 13
Coinbase announced that it will suspend trading of Binance USD (BUSD) on March 13, citing its "listing standards" as the reason behind the decision. The suspension will apply to all Coinbase services, and users will still have access to their funds. The decision follows reports earlier in the month of a Wells Notice by the SEC and an order from the New York State Department of Financial Services to Paxos to stop issuing BUSD. Paxos is now apparently in constructive talks with the SEC.
5. Polygon rolls out Zero-Knowledge, privacy-enhanced Identification product
Polygon launched a new Polygon ID product based on Zero-Knowledge (ZK) technology that will allow users to verify their identities or credentials without revealing sensitive information.Polygon specializes in scaling systems for the Ethereum blockchain, including the popular Polygon PoS sidechain.
6. Solana network stumbles, on-chain trading slows after ‘forking’ incident
Over the weekend the Solana blockchain came to a halt after a ‘Forking’ incident. At one point, the chain was only processing 93 TPS versus the 5,000 TPS it was processing just hours before. After hours of coordination between validators, the chain was back to processing transactions normally late Saturday night.
7. Scroll’s zk-EVM layer 2 goes live on Ethereum’s Goerli testnet
Scroll has launched its zk-EVM on the Goerli testnet in an alpha testing phase ahead of a planned mainnet launch late this year. The network uses zero-knowledge proofs to achieve scalability, while maintaining EVM compatibility, making it easy for developers to port applications over to the network. There are two main ways to develop zk-EVMs: leveraging a programming language designed for zero-knowledge proofs or using Solidity. Those that are built with zk-native languages are easier to build but make it more difficult for developers to port to.
8. Homeland Security makes an award for blockchain oil traceability
The US Department of Homeland Security (DHS) has made a Phase 4 contract award of almost $200,000 to blockchain firm Neoflow to digitally trace natural gas and crude oil transiting from Canada to the United States. The objective is to prevent fraud, so the solution uses verifiable credentials, decentralized identifiers, and distributed ledger technology to address this.
9. Chainlink launches platform to help Web2 connect with smart contracts
Chainlink has released a platform that will enable developers to connect data to smart contracts, Chainlink Functions will allow any smart contract – blockchain protocols that execute the terms of a contract – to connect to any Web2 application programming interface (API). Chainlink has aimed to provide products to connect the world with blockchain technology
10. IMF makes crypto policy suggestions. Some directors won’t rule out bans
IMF Executive Board published a paper on crypto-assets with policy recommendations. Beyond the suggestions, the IMF said an outright ban on cryptocurrencies should not be the ‘first-best’ option. The key recommendations fall into three themes: macroeconomic, legal and regulatory, and international coordination. The document’s timing is opportune given this week’s G20 summit, where crypto-assets are a high-profile topic
11. Blockchain trade finance network Marco Polo is insolvent
Earlier this week, the holding company of the Marco Polo trade finance network (formerly Trade IX) entered insolvency in Ireland. At one stage, the blockchain network had more than 30 bank members such as Commerzbank, BNY Mellon, and SMBC. This is the second failed blockchain trade finance network after bank-backed we.trade entered insolvency in Ireland in mid-2022.
12. HSBC, and Northern Trust estimate 5-10% of assets will be tokenized by 2030
In a recent report, HSBC and Northern Trust predict that 5%-10% of all assets will be tokenized by 2030. While they didn’t provide a dollar figure, our estimates equate this to $19.5 trillion, compared to the $16 trillion predicted by BCG last year. Tokenization could drive the growth in assets under management. One of the touted benefits of DLT is fractionalization.
💸 PE/VC funding
1. US Bancorp invests in Ownera, a digital asset startup backed by J.P. Morgan
Today it was announced that US Bancorp, America’s fifth largest, has invested in Ownera, the creator of FINP2P that aims to connect digital asset tokenization platforms to wealth managers and exchanges. While the investment amount was not revealed, corporate registry filings show fresh funds of $3 million earlier this month.
2. Figment Capital seeks $50M for second venture fund
Figment Capital is launching its second venture fund. The fund is targeting to raise $50 million, a source with direct knowledge of the matter told The Block.
3. Impossible Cloud raises $7M to decentralize storage
Impossible Cloud, a cloud platform working with decentralized technology, raised $7 million in a funding round led by HV Capital and 1kx
4. Conflux raises $10M from DWF Labs in token round
Conflux, a Layer 1 blockchain developer, raised $10 million from DWF Labs. The investment will help Conflux expand its technology and grow its user base, DWF Labs said Wednesday. Conflux co-founder Fan Long confirmed the investment, saying it was settled "a few days ago."
5. Web3 infrastructure startup Portal raises $5.3M
Portal, a Web3 wallet infrastructure startup, has raised $5.3 million in a funding round that included Slow Ventures and Haun Ventures, the venture capital firm founded by Andreessen Horowitz alum Kaite Haun, according to a press release provided to CoinDesk.
6. Blockchain Founders Fund raises $75M to encourage Web3 mass adoption
The fundraising round included Polygon, Ripple, Octava, NEO Global Capital, Appworks, Sebastien Borget of The Sandbox, GSR, LD Capital, Metavest Capital and others.
7. AI-powered crypto search engine Kaito raises $5.3M
Kaito, an AI-powered search engine for crypto, raised $5.3 million in a seed round led by Dragonfly Capital, to improve browsing with AI, ChatGPT.
8. Green Crypto raises nearly $2M for EV charging payments solution
Web3’s hottest green presale is about to reach a huge milestone. Crypto start-up C+Charge, which is building a revolutionary electric vehicle (EV) charging payments solution set to transform the industry and, hopefully, accelerate the transition to EVs, has now nearly raised $2.0 million via the sale of CCHG tokens that will power its platform.
9. Redeem raises $2.5M to let users receive NFTs via phone numbers
Redeem, which provides Web3 technology that allows users to send and redeem non-fungible tokens (NFT) using their phone numbers, has raised $2.5 million in a pre-seed round led by digital asset-focused investment firm Kenetic Capital. The startup will use the funds toward its second-quarter product launch and to continue building out the core technology.
10. Crypto wallet ZenGo is raising funds at a flat valuation of $100M
ZenGo is raising $10 million in a Series A extension round via convertible notes, according to a pitch deck obtained by The Block. The round is being raised at a valuation of $100 million, the same as ZenGo’s Series A round, according to a separate pitch message.
11. Israeli startup Chain Reaction raises $70M to build Blockchain Silicon
Chain Reaction, a Tel Aviv-based blockchain startup, announced it has raised $70 million as part of its Series C funding round. The objective of the company is to expand its engineering staff to accelerate the production of its blockchain-focused silicon and collaborate in the development of its cryptographic-focused chips.
12. Bitcoin mining consulting firm Sabre56 raises $35M
Sabre56, a company that consults miners on the development and operations of facilities, has raised $35 million to build its own hosting sites, aiming to have 150 megawatts (MW) of energy capacity ready by the end of the year. Hosting is a service that data centers provide to crypto miners that want to run their mining rigs without having to build the infrastructure themselves.
13. Orange Comet raises over $7M in new funding for NFT Media Play
Los Angeles-based NFT entertainment company Orange Comet, the studio behind Anthony Hopkins’ “The Descendants” NFT collection, raised $7.24 million from selling equity options, according to documents filed with the U.S. Securities and Exchange Commission.
14. Polychain Capital eyes $400M raise for fourth fund
Olaf Carlson-Wee’s investment firm is in talks with potential investors about raising $400 million for a fourth fund. Polychain is one of the crypto sector’s top investors, with over $6.6 billion under management as of March 2022.
15. Term Labs raises $2.5M in seed round to build safer crypto lending for institutions
Term Labs, Inc., a blockchain R&D company, today announced it has raised a $2.5 million seed round led by Electric Capital with participation from Coinbase Ventures, Circle Ventures, Robot Ventures, MEXC Ventures, and with angel investment from DeFi founders from Aura, Balancer, Hashlow and Llama.
16. Mangrove raises $7.4M Series A to enable market makers to operate without locked capital
ZenGo is raising $10 million in a Series A extension round via convertible notes, according to a pitch deck obtained by The Block. The round is being raised at a valuation of $100 million, the same as ZenGo’s Series A round, according to a separate pitch message.
17. Web3 social startup Towns raises $25.5M led by Andreessen Horowitz
The project is centered around the idea of moving messaging on-chain, and today its backers announced a $25.5 million investment led by Andreessen Horowitz.
18. Bain Capital Ventures raises $1.9B in new funds
Docker and DocuSign backer Bain Capital Ventures, an offshoot of the Boston-based private equity firm Bain Capital, has raised $1.9 billion across two new funds. The news comes about a year after the firm unveiled a $560 million fund dedicated to crypto investments.
19. NFT certification protocol Wakweli raises $1.1M to increase trust in Web3
Wakweli, a Web3 infrastructure protocol that issues certificates of authenticity of NFTs, has raised $1.1M in a seed funding round. The funds raised from the seed funding came from blockchain investment firm Summit which led the round alongside Funfair Ventures and plenty of business angels.
20. Web3 database developer Polybase raises $2M preseed
Decentralized database developer, Polybase has raised $ 2 million pre-seed in a round led by 6th Man Ventures.
21. Hack VC and Jump Crypto back DeFi yield startup Affine Protocol
Affine Protocol closed a $5.1 million seed round to build a decentralized protocol and app that offers users access to sustainable and diversified yields. Other investors in the round included Spartan Group, Coinbase Ventures, Circle Ventures and AlphaLab Capital, the company said in a statement.
⚖️ Policies and laws
1. Coinbase launches grassroots campaign to influence US lawmakers and regulators
Coinbase posts online petitions as it looks to mobilize an army of American crypto advocates. The cryptocurrency exchange wants to educate people on how they can reach out to local lawmakers. Reaching out to politicians and potentially influencing how they vote on future legislation appears to be at the heart of the exchange’s campaign.
2. France passes new crypto registration rules for firms
Crypto firms in France dodged far tougher provisions proposed in response to the collapse of FTX. The rules on crypto firms mean that French companies offering crypto services must attain a registration more robust than currently offered by the Financial Markets Authority (AMF).
3. US SEC Plans to Keep Growing Crypto Unit as Enforcement Ramps Up
In May 2022 SEC added 20 people to its newly named Crypto Assets and Cyber Unit. That nearly doubled the size of the 50-person operation. ”Now the agency is “planning to add additional staff” to that unit, further underlining the priority that digital assets enforcement has become for the SEC.
4. Mini-burritos and MiCA: US congressional staff talk crypto with Europeans
In a hushed meeting with industry representatives and EU officials, a delegation of U.S. congressional staff discussed the bloc’s latest efforts on crypto regulation It also highlighted political splits in U.S. views on digital assets.
5. Wholesale digital pound is a question of how, not when, says Bank of England
While a retail digital pound is a prime topic of crypto discussion in the UK, wholesale solutions are steadily brewing in the background. The Bank of England Deputy Governor assured the Treasury Committee that the UK is on track compared to competitors working on CBDCs.
📚 Reports, here is the TLDR
REPORT 1 - State of Digital Assets Data & Infrastructure: 2023 Edition
The Block Research’s Digital Asset Data and Infrastructure report analyzes two pillars of the emerging digital asset economy – data and infrastructure – to shed light on how firms are making the increasingly intricate digital asset economy navigable. It answers the two following questions: (i) How do data providers help industry participants extract value from a seemingly endless deluge of digital asset data?, and (ii) How do infrastructure providers make operating blockchain networks and accessing the applications built on top of them feasible for everyday users?
The report builds on The Block Research’s 2021 Data and Infrastructure Report and is structured in four parts:
Part 1 provides an overview of the different components of digital asset data and infrastructure.
Part 2 outlines the landscape of firms focused on providing digital asset data.
Part 3 sheds light on the landscape of firms that operate core blockchain infrastructure.
Part 4 concludes by emphasizing how data and infrastructure providers are playing a crucial role in making digital asset integration accessible and reliable for institutions and individuals. While there is some consolidation in the data provider landscape, multiple winners are likely to emerge.
REPORT 2 - State of startup compensation, H2 2022
In this interesting report, Carta analyses changes in the tech compensation market, focusing on how the pandemic-related layoffs affected compensation and how startups adjusted hiring plans. The report provides insights on paying international talent competitively and it also includes an equity addendum with key updates on equity compensation.
The data is drawn from over 216,000 employee records from startups and includes metrics on employee movement from over 1 million employees currently working for 33,000 startups that use Carta. Here are the highlights:
Salaries have stopped rising: The average salary band in Carta Total Comp rose 2.1% from April to August last year. From August to November, the average fell by 0.4%
Layoffs are impacting all sectors: Laid-off employees accounted for 52% of all employee departures in December 2022 after representing just 13% of departures in July 2021.
Hiring is not keeping pace with departures: Net headcount growth across Carta cap table companies turned negative in September 2022 and has yet to rebound.
📈 Charts of the week
The Coinbase Ventures Web3 Security Stack
How big corporations continued to engage with NFTs in the second half of 2022 - By BLOCKDATA
💡Metaverse and NFT news, trends, and insights
1. Emmy-winning, Disney-backed Baobab Studios launches ‘Momoguro’ Ethereum NFTs
Hollywood’s Baobab Studios has won nine Emmy Awards for its short films and virtual reality (VR) experiences. Now, they’re branching out into the world of Web3 with a family-friendly project called “Momoguro” and an accompanying Ethereum NFT collection.
2. Metaverse already needs competition scrutiny, says EU antitrust chief
The metaverse could be next in EU competition regulators' crosshairs, said antitrust chief Margrethe Vestager on Thursday — with concerns about Meta's dominance at the top of the docket.
3. The Sandbox warns users of security breach used for email phishing campaign
The Sandbox, a blockchain-based metaverse company, released a warning regarding a security breach. In a blog post on Thursday, the company explained that an unauthorized third party accessed an employee's computer and sent a fraudulent email to the platform's users.
4. Starbucks's web3 Odyssey is seeing early signs of success, BofA says
Bank of America said that Starbucks's Odyssey program, an extension of Starbucks Rewards that seeks to expand brand loyalty in the virtual world, is seeing encouraging signs of early success.
5. MUFG, SMBC, Fujitsu in web3 metaverse interoperability consortium
Today ten companies announced their involvement in the Japan Metaverse Economic Zone (JMEZ), which aims to build an open ecosystem for enterprises creating metaverse experiences With an interim name of RYUGUKOKU, the metaverses will have role-play game (RPG) themes for the virtual worlds, including castles and cities.
🔦Company spotlight
The company: 👉 Starlight 👈 is a Financial OS for Web3 Teams, developing the fastest, most secure, and compliant platform to manage your team's money and digital assets. They aim to onboard the next million companies into crypto, serving as their primary treasury solution. Hence, they aim to make crypto accessible for companies of all stages and industries.
The story: Starlight raised $5.4 in seed capital. They make up a diverse team led by Grey Nguyen and Ben Yang. Starlight is hiring, check out the vacancies here.
Why should I care: Starlight is an all-in-one solution for companies to manage their crypto assets. They offer everything a company needs to operate in the crypto economy from setting up wallets, to buying crypto, to tracking expenses. Starlight helps businesses manage their finances in the background, streamlining operations and creating efficiencies in treasury management, often a pain point within financial management.
📅 Blockchain, Crypto, and Web3 events calendar
….for the next couple of months
February 2023
ETHDenver | Feb 24-Mar 5, 2023 | Denver, CO, USA
Miami Web3 Week | Feb 27-Mar 5, 2023 | Miami, FL, USA
March 2023
Web3 Toronto Summit 2023 | Mar 1-2, 2023 | Toronto, Canada
Supermoon Tower ETH Denver | Mar 1-3, 2023 | Denver, CO, USA
Advancing Bitcoin Conference | Mar 2-3, 2023 | London, UK
Crypto, Blockchain & Metaverse Expo | Mar 3-4, 2023 | Dubai, UAE
The Blockchain & Youth Summit | Mar 5-6, 2023 | Dubai, UAE
Saudi Meta Show | Mar 8, 2023 | Riyadh, Saudi Arabia
Empower: Energizing Bitcoin 2023 | Mar 8-9, 2023 | Houston, TX, USA
Crypto Expo Dubai | Mar 8-9, 2023 | Dubai, UAE
Blockchain Economy Dubai Summit | Mar 8-9, 2023 | Dubai, UAE
Blockchaincon Latam 2023 | Mar 9-11, 2023 | Lima, Peru
World Digital Assets Investment Summit | Mar 10-11, 2023 | Dubai, UAE
Arts DAO Fest | Mar 11, 2023 | Dubai, UAE
Women In Blockchain Summit | Mar 13-15, 2023 | Limassol, Cyprus
Blockchain & Fintech Week Tel Aviv | Mar 13-15, 2023 | Tel Aviv, Israel
Sustex - Blockchain for Climate | Mar 15-16, 2023 | Dubai, UAE
ETHDubai | Mar 15-16, 2023 | Dubai, UAE
Solana Hacker House | Mar 15-19, 2023 | Ho Chi Minh City, Vietnam
Virtuality Web3 Summit | Mar 16-17, 2023 | Paris, France
Blockchain Africa Conference | Mar 16-17, 2023 | Johannesburg, South Africa
ETH Porto | Mar 16-18, 2023 | Porto, Portugal
5th Blockchain Int’l Scientific Conference | Mar 18, 2023 | Manchester, UK
Crypto Expo Europe | Mar 19-21, 2023 | Bucharest, Romania
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
👩💻The job fair
ZTX Foundation : Product Manager, Remote
Arts Block.Inc : Social media marketing, Los Angeles, California
Austin Werner : Head of Business Development, Austin, Texas
Status : Grassroots community Manager, Remote/Worldwide
Consensys : Project Manager Development Centre, Remote/USA
📚The term of the week
Token: a type of Fungible and tradeable Cryptocurrency that can be used for payment on, access to, or to otherwise facilitate operations on, a particular Blockchain, and that requires another Blockchain to exist and operate. In contrast to Coins, which operate in a manner similar to E-Currency on their own separate Blockchain, a Token runs on top of another Blockchain and is used to access the features and functionality of applications on that Blockchain.
📎 Miscellaneous Resources
A Developer’s Guide to the Web3 Security Stack from Coinbase Ventures
A Guide to the Upcoming Shanghai Upgrade and What it Means for Staking and DeFi
The opinions are our own. The content of this newsletter is not intended to serve as financial advice and is for general informational and educational purposes only. We do not warrant, endorse, or assume responsibility for the accuracy of any information offered by the third-party websites linked above.