Binance’s zero-fee Bitcoin update could echo March downturn

August 24, 2023 Coin Telegraph

Binance

In an official statement, cryptocurrency exchange Binance unveiled its plans to implement updates to the zero-fee Bitcoin trading starting from September 7.

Binance cryptocurrency exchange announced its intention to modify its zero-fee Bitcoin trading program on Aug. 24. This action has the potential to initiate a significant market downturn, reminiscent of the 90% trading volume decline observed following Binance's discontinuation of zero-fee trading in March.

In an official statement, cryptocurrency exchange Binance unveiled its plans to implement updates to the zero-fee Bitcoin trading starting from Sept. 7. Binance intends to modify the zero-fee Bitcoin trading for the Bitcoin (BTC)/ True USD (TUSD) spot and margin trading pair.

Previously, traders experienced zero maker and taker fees while engaging in BTC trading with TUSD pairs. However, a regular taker fee will now be implemented based on the user's VIP level. Nonetheless, users will still encounter no maker fees when conducting Bitcoin trades on the BTC/TUSD spot and margin trading pair.

“The corresponding trading volume on the BTC/TUSD spot and margin trading pair will count toward VIP tier calculation and all Liquidity Provider programs. In addition, BNB discounts, referral rebates and any other fee adjustments will resume for BTC/TUSD spot and margin trading volumes.”

Seemingly, Binance is discontinuing its zero-fee Bitcoin trading initiative for TUSD, indicating a decreased backing for the TUSD stablecoin due to various concerns. Importantly, users will still retain the privilege of zero maker and taker fees while engaging in Bitcoin trading within the FDUSD spot and margin trading pair.

Binance's adjustment of its zero-fee Bitcoin trading scheme for the BTC/TUSD spot and margin trading pair could be inadvertently inciting another round of selloffs in the market.

According to CoinMarketCap, the BTC/TUSD and BTC/USDT pairs are the most frequently traded for Bitcoin, constituting 11% and 7% respectively. The trading volume in Tether (USDT) pairs experienced a significant drop after Binance stopped supporting BUSD and designated TUSD as the sole trading pair for zero-fee Bitcoin trading.

Yet again, the exchange is redirecting attention away from the widely traded TUSD to the lesser-known FDUSD stablecoin. Notably, FDUSD doesn't rank within the top 10 Bitcoin pairs by trading volume, with The market capitalization of FDUSD standing at $324 million.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Shiba Inu hints at making Shibarium public soon

August 24, 2023 Coin Telegraph

Coin Telegraph

The Shibarium community known as Shibarmy has taken to X (formerly known as Twitter) to respond enthusiastically to the development.

Progress is underway in the field of blockchain technology, with the highly anticipated public launch of the Shibarium (L2) version happening soon. The Shiba Inu team has announced that the platform is running smoothly and just needs to be made public.

The team behind Shibarium, an Ethereum layer-2 network, has indicated that the platform is currently live and in private mode having functioned smoothly during its two-day test, and is on the verge of becoming available to the public.

The Shibarium team claimed in recent blog post that funds remain safe, and users can look forward to a fresh experience when the platform becomes accessible to all. Those who have benefited from the update are already celebrating as bridged $BONE tokens make their entry.

Things are going in the right direction ✨ https://t.co/yS8iqbz1ra
— Daniel (@Pasaben101) August 24, 2023

The Shibarium community known as Shibarmy, are commenting on X (formerly known as Twitter) in response to the development. The Shibarium team expressed their satisfaction with the progress, stating that the network has achieved a "ready" state after thorough testing and parameter adjustments. Although testing is ongoing, the team revealed that blocks are consistently being generated without issues.

The recent updates include added safety measures and a monitoring system. These enhancements involve implementing rate limiting at the remote procedure call (RPC) level and an automatic server reset mechanism. These improvements are intended to avert potential problems stemming from abrupt traffic surges, guaranteeing users a steady and dependable experience.

During its testing phase, the network garnered significant attention with millions of wallets engaged in over 22 million transactions spanning four months. However, the initial launch encountered challenges. An overwhelming surge of activity overloaded the network, leading to a temporary halt in transactions for several hours. Consequently, millions of dollars were trapped on a bridge tool, causing a 10% decrease in SHIB pricing.

Subsequently, developers have addressed the issues and clarified that the servers were overwhelmed due to an unforeseen surge in transaction volume. The network's team says it is now assured of the reopening's success despite the initial challenges.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Nigerian crypto exchange’s token launch draws scrutiny

August 24, 2023 Coin Telegraph

Coin Telegraph

This development follows the company's previous disclosure of a security breach resulting in fund losses in May 2023.

Patricia, a Nigerian cryptocurrency exchange, has revealed the introduction of its own native token named Patricia token (PTK). However, this launch has generated more doubt than applause within the local cryptocurrency community.

Native tokens are digital assets that are specific to a particular blockchain platform or cryptocurrency exchange. They are created and issued directly by the platform or exchange itself. Examples of native tokens include Binance Coin (BNB) on the Binance exchange, Ether (ETH) on the Ethereum network, and SOL on the Solana blockchain.

In the official communication on X (formerly Twitter), the company stated its intention to transition exchange operations to the Patricia Plus app. The newly introduced native token, which the company asserts is a stablecoin with a 1:1 peg to the dollar (1PTK = $1), is expected to take the place of customers' existing bitcoin (BTC) and naira balances.

The major issue here is

If u can afford to give people(converting their balance) a stable coin backed by Usd

Then Why not just give them their tokens back ? https://t.co/GKgBQdi4Yg
— Solomon_Gift (@Crypto__hub) August 19, 2023

This development follows the company's previous disclosure of a security breach resulting in fund losses in May 2023. Despite asserting that customer funds remained unaffected, platform users have faced ongoing difficulties in accessing their funds since April.

The response to Patricia's announcement has led to speculation around fears of a potential exit scam, which could leave customers who have funds stuck on the platform in a precarious situation.

Highlighted in posts by members of the local crypto community, there are a few indicators of concern surrounding Patricia's introduction of PTK. The token is absent from major cryptocurrency aggregators like CoinMarketCap and Coingecko. These platforms offer comprehensive details about tokens, including their real value, issued quantity, contract address and launch blockchain.

PTK does not exist on widely adopted blockchains used by exchanges for launching their native tokens. To illustrate, PayPal's newly introduced stablecoin, PYUSD, is accessible on the Ethereum blockchain, the platform on which it was introduced.

In its statement on X, Patricia disclosed its plan to convert outstanding balances to PTK without obtaining customer consent. This unilateral action has raised concerns, as many worry about their ability to exchange the token for fiat currency or alternate cryptocurrencies like bitcoin.

If customers initiate withdrawals in large numbers, a surge of withdrawals could lead to PTK losing its peg, potentially leaving those who couldn't withdraw stranded.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Central African Republic expands Sango project to land, resource tokenization

August 21, 2023 Coin Telegraph

Assets

Asset tokenization has been in the works for a year. The ambitious project has also included investor citizenship and an island in the metaverse.

The Central African Republic (CAR) has extended its Sango blockchain project to tokenization of its land and natural resources. The country, one of the poorest and most crypto-friendly in the world, is one of the most active in crypto innovation.

According to an announcement posted on X (formerly known as Twitter), the CAR National Assembly passed a law on tokenizing land and natural resources on July 24. Among other provisions of the law, it will make it possible to obtain business visas online and allow citizens and foreigners to set up businesses “easily” and obtain licensing in real estate, agriculture, natural resource exploitation and forestry. The statement said the law was "unanimously approved."

The CAR had announced its intentions to tokenize its natural resources last year, not long after the launch of Project Sango in May 2022. The Sango Project also called for the creation of its own Crypto Island Metaverse.

The CAR’s efforts to position itself in the vanguard of crypto adoption has faced significant obstacles. The CAR was the first country in Africa, and second country worldwide, to adopt Bitcoin (BTC) as a national currency in April 2022. It reportedly repealed its status in May of this year. The country also launched its own cryptocurrency, the Sango in an effort to displace the CFA (Financial Community of Africa) franc. The Sango was not intended to be a central bank digital currency.

*The Sango logo imposed over Bitcoin's. Source: the Sango website*

The Sango faced several obstacles before its launch, including the rejection of the Sango-linked citizenship program by the Constitutional Court. Nonetheless, the citizenship program, which costs $60,000 in Sango, remains on offer on the Sango Project website. The country is also considering the introduction of other cryptocurrencies.

The International Monetary Fund, which opposed the CAR’s adoption of Bitcoin, estimates the country’s GDP growth at 2.2% this year.

The SANGO Project's Next Chapter

Exciting news! The Central African Republic is ushering in a new era of #financial empowerment through #blockchain technology.

Guided by the visionary leadership of President Professor @FA_Touadera , we're ready to make a global impact. pic.twitter.com/m1jYjsvc0q
— Sango (@sangoproject) August 21, 2023

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Ripple CTO clarifies on SEC appeal, highlights case complexity

August 20, 2023 Coin Telegraph

Coin Telegraph

According to David Schwartz, the SEC is seeking an appeal at this specific point based on its interpretation that the legal case has not yet concluded.

In a recent update on X (formerly Twitter), the chief technology officer of Ripple Labs, David Schwartz, brought attention to a recent development involving the United States Securities and Exchange Commission’s (SEC) appeal.

According to Schwartz, the SEC is seeking an appeal at this specific point based on its interpretation that the legal case has not yet concluded. This understanding affords involved parties the privilege to appeal after the finalization of the case. This procedural strategy is intended to enhance the legal proceedings’ efficiency and avoid continuous disruptions to the main case due to multiple appeals concerning minor decisions.

Following Judge Analisa Torres’ July 13 ruling that XRP (XRP) is not a security when sold on digital asset exchanges, the SEC has since submitted an appeal. Although prompted by the favorable verdict for Ripple, this move by the SEC focuses on an unforeseen development within the legal proceedings.

Yes. A party that loses on any claim or issue in their suit is entitled to appeal any adverse rulings at the conclusion of the suit. The SEC is asking for permission to appeal here because the suit is not complete yet for any party.

You can see why there would be a rule like…
— David "JoelKatz" Schwartz (@JoelKatz) August 18, 2023

Schwartz stressed that combining appeals is vital to improve things, with separate appeals likely to make the legal process even longer.

However, the exec clarified a rule for special situations. The SEC argues that the unique situation, in this case, is a reason to do things differently. It suggests stopping the process until the appeal is settled, but Ripple disagrees.

Ripple believes that even if the SEC can appeal, the main lawsuit should proceed while the appeal process happens. This matches the idea of letting the trial continue and looking at appeals carefully when everything else is done.

Schwartz provided more information because of rumors in the Bitcoin community about discussions that the SEC might want to appeal Torres’ decision to higher courts.

The outcome of the legal disagreement between Ripple Labs and the SEC could be influenced by the court’s choice about whether to accept the appeal request.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Securitize acquires $40b crypto fund manager Onramp

August 18, 2023 Coin Telegraph

Securitize acquires b crypto fund manager Onramp

Coin Telegraph

Digital securities firm Securitize will provide new alternative assets to major cryptocurrency firms like WisdomTree and Valkyrie Invest.

Tokenized asset firm Securitize continues expanding investor access to private market alternative assets with the acquisition of the cryptocurrency fund manager Onramp Invest, which manages more than $40 billion in assets.

Securitize is planning to simplify the access of registered investment advisors (RIA) to private equity, private credit and secondary asset classes with the acquisition of Onramp.

The acquisition brings more than $40 billion in combined assets, which the Onramp platform handles for a community of RIAs across the United States. Onramp’s customer base features some prominent firms in the crypto industry, including the exchange-traded (ETF) fund WisdomTree, asset manager Valkyrie Invest, the ETF firm Global X, crypto media Coindesk and others.

As a result of the acquisition, RIAs will be able to offer their clients investments in alternative asset classes like private equity, private credit and real estate via Onramp Invest’s dashboard. According to the announcement, Securitize will increase and diversify the investments available to RIAs by giving them direct access to its alternative investment portfolio.

“Onramp already offered RIAs easy access to digital assets, so it is a very natural extension to offer them tokenized alternative assets to complement their portfolios,” Securitize CEO Carlos Domingo said, adding:

“Most wealth is generated in private market alternative assets and bringing Securitize and Onramp together enables registered investment advisors to give their clients access to that wealth generation.”

The latest acquisition builds on a previous partnership of Securitize and Onramp announced in March 2023. The partnership was focused on distributed access to tokenized private equity funds from investment firms like Hamilton Lane. At the time, Onramp’s platform had RIA firms with a combined AUM of over $35 billion.

The news comes soon after Securitize started tokenizing equity in the Spanish real estate investment trust Mancipi Partners in June. The firm expects to launch secondary trading on the Avalanche blockchain in September.

Securitize did not immediately respond to Cointelegraph’s request for comment.

Big Questions: Did the NSA create Bitcoin?

Shiba Inu’s Shibarium Network resumes block production after brief pause

August 18, 2023 Coin Telegraph

Coin Telegraph

The Shiba Inu project has opted to secure insurance coverage amounting to $2 million to address potential fund retrieval challenges upon the restart of Shibarium.

Shiba Inu's Layer-2 Shibarium network has resumed block production following a nearly day-long transaction pause.

As per Shibariumscan.io block explorer, Shiba Inu's layer-2 blockchain Shibarium (SHIB) has reactivated and is generating blocks. The Shibarium network entered a fail-safe mode and paused operations to safeguard funds due to unexpectedly high traffic after the mainnet launch.

Lead developer Shytoshi Kusama verified that elevated blockchain traffic led to certain challenges, but said that fund security remains intact. He asserted that both the bridge and the chain are functioning smoothly and Shibarium is poised for a swift restart.

*Screenshot of restarted block production. Source: Shibariumscan.io*

In an official blog post dated August 18, Shiba Inu developer Kaal Dhairya outlined plans for scaling operations to accommodate substantial traffic on Shibarium. The team will also provide regular updates on the status of the Shibarium network, a fork of Polygon, he said.

“In fact, as we slowly and carefully investigated where the problem exactly took place and found thousands upon thousands of contract creation and normal transactions IN ONE BLOCK.”

Furthermore, the Shiba Inu project has opted to secure insurance coverage amounting to $2 million to address potential fund retrieval challenges upon the restart of Shibarium. Following this announcement, block production resumed on the network as the team maintains vigilant oversight.

Nonetheless, the ShibArmy community expresses apprehension over spreading Fear, Uncertainty and Doubt (FUD) that negatively impacts the project. The members of the community are positive and have shown support for the network’s efforts in working on the transaction pause.

Large holders and traders offloaded their SHIB, BONE, and LEASH tokens, with the spread of FUD prompting significant divestment of their major holdings. Despite this, prices are rebounding following the reactivation of Shibarium, even in the face of a broader crypto market sell-off.

Over the last day, SHIB's value dropped by 11%, presently standing at $0.0000082. Its range within the past 24 hours fluctuated between a low of $0.0000076 and a high of $0.0000093. Simultaneously, BONE's price has slid by 15%, settling at $1.18, while LEASH is currently at $430, marking a 5% decline in the same timeframe.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

BitExchange enables XRP options trading, no need for ownership

August 17, 2023 Coin Telegraph

Coin Telegraph

Profit and loss settlement will occur in U.S. dollars, with OrBit Markets responsible for order book liquidity.

BitExchange has introduced XRP (XRP)-linked options on its cryptocurrency derivatives platform. According to an Aug. 17 statement from the exchange, the initiative will allow users to engage in XRP options trading without the need for cryptocurrency ownership.

Profit and loss settlement will occur in United States dollars, with OrBit Markets responsible for order book liquidity, the exchange said, adding that the latest addition adds to its offerings, including Bitcoin (BTC), Ether (ETH), Cardano (ADA), Toncoin (TON) and Milady (LADYS).

Options represent derivative agreements that bestow the buyer with the privilege to purchase or vend the underlying asset at a predetermined price on or before a specified date. Call options grant the buying right, while put options offer the selling right.

Typically, traders utilize options for hedging purposes, lessening bearish or bullish risks, or generating supplementary earnings by “writing” options alongside their spot market holdings.

Justin Buitendam, BitExchange’s global head of institutional sales, said:

“We’re excited to be among the early platforms offering XRP options trading to institutional and retail traders, providing both long and short options trading opportunities.”

With a current market capitalization of $30.88 billion, XRP ranks as the fifth-largest cryptocurrency globally. Like other alternative cryptocurrencies, XRP exhibits higher volatility than Bitcoin and Ether.

BitExchange’s choice to introduce XRP options follows a recent ruling partially in favor of Ripple Labs — which issues the XRP token — in its ongoing battle against the United States Securities and Exchange Commission (SEC). The judge ruled that XRP is not considered a security when traded on centralized exchanges but could be classified as one when directly sold to institutions.

After the ruling, numerous exchanges relisted XRP . In a more recent development, the SEC has sought permission to challenge the court’s decision.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Voyager’s token transfer to Coinbase sparks sell-off suspicions

August 13, 2023 Coin Telegraph

Coin Telegraph

The motive behind the transactions has triggered speculation within the broader crypto community.

Bankrupt cryptocurrency lender Voyager Digital transferred 1,500 Ether (ETH), worth around $2.77 million and an additional 250 billion Shiba Inu (SHIB), worth roughly $2.7 million, to crypto exchange Coinbase on Aug.11, according to Etherscan.

The motive behind the transactions has triggered speculation within the broader crypto community. One theory suggests a probable sell-off, given that the transfers have diminished the distressed crypto lender’s wallet holdings to $81.63 million of digital assets.

The transactions occurred at one-hour intervals, according to Etherscan. The abrupt movement of the tokens has triggered discussions regarding a possible liquidation. However, some sources say that Voyager is consolidating all tokens from various addresses into a primary address.

*Screenshot of the transfers from Voyager to Coinbase. Source: Etherscan*

The speculation of a sell-off is further supported by Voyager’s ongoing divestment of its SHIB holdings since the start of 2023. In February, the company executed transfers of nearly $10 million worth of digital assets to multiple cryptocurrency exchanges in a single day.

The tokens moved include 270 billion SHIB, worth $3.2 million; 4.9 million Voyager Token (VGX), worth $2.1 million; 3,050 ETH, worth $3 million; and 221,000 Chainlink (LINK), worth $1.5 million.

Following Binance.US’s court-sanctioned acquisition of the lender’s assets, blockchain analysis platform Lookonchain disclosed that Voyager liquidated digital holdings exceeding $56 million across three cryptocurrency exchanges. Approximately three months later, the insolvent exchange engaged in various transactions involving the transfer of around 350 billion SHIB tokens.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Legal scholars file amicus brief in support of Coinbase

August 13, 2023 Coin Telegraph

Coin Telegraph

The legal practitioners asked the court to adhere to the established definition of “investment contract” when interpreting its scope.

A group of six legal scholars specializing in securities law and related fields submitted an amicus brief in favor of crypto exchange Coinbase in its ongoing legal battle against the United States Securities and Exchange Commission (SEC).

An amicus brief is a document filed in court by a party not directly involved with the related case. It is generally used to add supporting arguments to one side of the lawsuit and emphasizes how the case will have a broader impact beyond the involved parties.

The group of legal scholars filed the amicus brief in the U.S. District Court for the Southern District of New York on Aug. 11.

*Screenshot of the amicus brief. Source: CourtListener*

On the same day, Senator Cynthia Lummis also submitted an amicus brief in support of the crypto exchange.

The following individuals, namely Stephen M. Bainbridge of UCLA, Tamar Frankel of Boston University, Sean J. Griffith hailing from Fordham Law School, Lawrence Hamermesh representing Widener University, M. Todd Henderson associated with the University of Chicago Law School and Jonathan R. Macey from Yale Law School, are the scholars who have collectively assumed the role of amici. Their collective effort has outlined an illustrative chronicle detailing the evolution and delineation of investment contracts, as manifested in the submitted filing.

In their filing, the legal practitioners contended that federal precedents, as encapsulated by the Howey test, acknowledge that "investment contracts" necessitate anticipation of business income, profits, or assets. In general, the esteemed law scholars advocated for the Court to steadfastly adhere to the established definition of the term 'investment contract' when interpreting its scope.

“An investor must be promised, by virtue of his or her investment, an ongoing contractual interest in the income, profits, or assets of the enterprise. In this section, we discuss some of these cases.”

Meanwhile, the group of legal scholars clarified that their affiliations with universities or law schools in no way bear any relevance to their involvement with the amicus brief.

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Tokens