Binance approves Shiba Inu as collateral asset

August 4, 2023 Coin Telegraph

Binance

The cryptocurrency exchange also announced the addition of 22 cryptocurrencies as loanable assets and collateral assets on its Flexible Loan and VIP Loan services.

Crypto exchange Binance on Friday, August 4, said it is adding 22 new loanable assets and new collateral assets to its Flexible Loan and VIP Loan service.

In its official statement, the crypto exchange disclosed several new collateral assets, among them Shiba Inu (SHIB), Compound (COMP) and Theta Network (THETA). This development has also fueled speculation about the potential listing of BONE token on Binance, coinciding with the upcoming launch of the Layer-2 blockchain, Shibarium, anticipated to take place in August.

The cryptocurrency exchange concurrently announced the addition of 22 cryptocurrencies as loanable assets and collateral assets on its Flexible Loan and VIP Loan services.

*Screenshot of Binance's new collateral assets announcement. Source: Binance*

Binance has now expanded its Flexible Loan service by including 8 new loanable assets, which are AUCTION, PYR, ILV, KNC, YGG, GAS, CELO and IRIS. Furthermore, the VIP Loan service has been expanded with 6 new loanable assets, including NKN, FARM, DIA, YGG, OGN and ACA.

In a separate announcement, Binance introduced XEM as a newly available borrowable asset on Cross Margin. The XEM/USDT pair is now supported on the cross-margin trading platform.

Following the Shibarium testnet PuppyNet launch, BONE has been listed on various cryptocurrency exchanges, including OKX, Huobi and Crypto.com. The milestones achieved by the Shibarium testnet reflect the growing demand for the chain and its associated token, BONE.

Binance is closely considering the listing of the BONE token, and its potential inclusion is contingent upon the forthcoming Shibarium mainnet launch, which fulfills one of the listing prerequisites for new tokens. The lead developer, Shytoshi Kusama, had previously disclosed the possibility of the Shibarium launch happening in August.

Currently, SHIB is trading at $0.0000083, showing an increase of approximately 2% in the last 24 hours. On the other hand, BONE has experienced a 1% price rise in the past 24 hours and a notable 24% surge over the past week.

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Huobi’s Jun Du acquires 10 million CRV tokens to support Curve

August 3, 2023 Coin Telegraph

Coin Telegraph

Du said the existing challenges were transitory and that he believes the industry would benefit from collective support.

Jun Du, the co-founder of Huobi, has purchased 10 million Curve DAO Tokens (CRV) for $4 million from Curve Finance founder Michael Egorov, who is seeking to decrease his exposed loan position.

In a tweet on Aug. 1, Du revealed his intention to acquire 10 million CRV tokens at the prevailing market rate of $0.40 — a value established through various over-the-counter transactions involving Egorov and several members of the crypto community. A report in The Block states that Du confirmed via direct message on X (formerly Twitter) that he completed the purchase and decided to lock up the tokens as veCRV, giving him voting rights on the platform.

*Screenshot showing Jun Du’s 10 million CRV token transaction. Source: Etherscan*

The Huobi co-founder took to X and expressed his support for Curve, highlighting his previous assistance during BendDAO’s liquidity crisis. Du said the existing challenges were transitory and that he believes the industry would benefit from collective support. Du is also the CEO of New Huo Tech, a digital assets service platform, and co-founder of the Web3 fund ABCDE.

Egorov took out a $100 million stablecoin loan using his own CRV stash as collateral. However, the protocol was exploited on July 30, resulting in a 30% crash in CRV prices.

According to Debank, Egorov has managed to repay over $17 million in stablecoin loans, leading to a marginal improvement in the overall health of the loans. However, he still faces a significant debt burden, with approximately $60 million in stablecoins owed on Aave, $12 million on Abracadabra and around $8 million on Inverse. To mitigate the risks associated with its exposure to CRV, Abracadabra Money has suggested raising the interest rate on its outstanding loans.

Aave (AAVE), which serves as the governance token for the decentralized finance (DeFi) protocol, Aave, saw a significant drop of 17% from July 30 to August 1, bringing its value down to $62. This decline was attributed, in part, to concerns about cascading liquidations on DeFi protocols triggered by the recent Curve exploit.

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Binance starts BTC/FDUSD and ETH/FDUSD trading pairs with zero-fees

August 3, 2023 Coin Telegraph

Binance

Users can trade ETH/FDUSD with zero maker fee, while the standard taker fee will apply based on the user’s VIP level.

Crypto exchange Binance, on Thursday, Aug. 3, announced that it would be opening trading for the Bitcoin/First Digital USD (BTC/FDUSD) and Ether/First Digital USD (ETH/FDUSD) trading pairs alongside an updated zero-fee Bitcoin (BTC) and Ether (ETH) trading, with newly added FDUSD stablecoin spot and margin pairs.

Per the announcement, starting from 08:00 UTC on Aug. 4, users will benefit from zero maker and taker fees for BTC/FDUSD spot and margin trades through the Zero-Fee Bitcoin Trading Program. Additionally, users can trade ETH/FDUSD with zero maker fee, while the standard taker fee will apply based on the user’s VIP level.

The trading volume for BTC/FDUSD spot and margin trading pairs is not included in the VIP tier volume calculation or the Liquidity Providers programs, enhancing the trading experience for users.

“BNB discounts, referral rebates, and any other adjustments will not apply to the BTC/FDUSD spot and margin trading pairs during the promotion.”

The recently introduced stablecoin, First Digital USD (FDUSD), scheduled to be listed on Binance on July 26, 2023, at 8:00 am UTC, was postponed until 2:00 pm UTC on July 26 due to FDUSD pairs’ liquidity providers experiencing technical issues.

*Screenshot of Binance’s announcement on the FDUSD pairs and zero-fee Bitcoin trading. Source: Binance*

In March, Binance concluded its zero-fee Bitcoin trading program and Binance USD (BUSD) zero-maker fee promotion, shifting to the lesser-known TrueUSD (TUSD) stablecoin from BUSD. This change, along with the removal of Tether (USDT) from the zero-fee program, led to a significant drop in Binance’s market share and trading volumes by over 50%. Consequently, the prices of cryptocurrencies, such as BTC and ETH, remained under pressure after the alteration.

First Digital USD is backed by Hong Kong-based custodian and trust company First Digital. The group announced the launch of the United States dollar-pegged FDUSD on June 1. FDUSD’s market cap of $257 million is still low compared to other stablecoins, such as USDT, TUSD, BUSD and TerraClassicUSD (USTC). Thus, it will not have much impact on the crypto market now, but minting new FDUSD amid demand from Binance can cause a significant boost in market cap.

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Ripple CEO slams SEC over use of XRP report in lawsuit

August 2, 2023 Coin Telegraph

Coin Telegraph

Brad Garlinghouse stressed Ripple's unchanged commitment to transparency but hinted that future reports might undergo some changes.

Ripple CEO Brad Garlinhouse on August 2, expressed his disapproval of the United States Securities and Exchange Commission (SEC) for utilizing Ripple's quarterly XRP Markets Report, designed to enhance transparency in the cryptocurrency industry, as evidence against the company in the ongoing lawsuit.

Garlinghouse stated that the company initiated the reports with the intention of voluntarily offering updates on their XRP holdings. However, the CEO said, these reports were later "used against" the company in the SEC lawsuit. Garlinghouse reiterated the company's commitment to transparency but hinted that future reports might undergo some changes.

We began these reports to voluntarily provide updates given our XRP holdings. Sadly, they were used against us in the SEC lawsuit - however, we remain steadfast in our commitment to transparency but I suspect they’re going to look a bit different moving forward https://t.co/oANR6WCG09
— Brad Garlinghouse (@bgarlinghouse) August 2, 2023

As per the official announcement on July 31, Ripple, the crypto payments solutions firm, unveiled its Q2 2023 XRP Markets Report. This report stands out from previous quarters as it centers on key highlights such as Judge Torres' significant summary judgment ruling, clarifying misconceptions and shedding light on Ripple's XRP holdings.

The report reveals that Ripple's XRP holdings surged from 5,506,585,918 to 5,551,119,094, representing an increase of approximately 45 million. Simultaneously, the total XRP on ledger escrow decreased by nearly 1 billion, which can be attributed to the rising demand for XRP.

In addition to Ripple CEO's criticism, XRP lawyer John Deaton also expressed strong disapproval of the SEC's use of these reports as evidence against the company and its executives in the ongoing lawsuit. He said that Ripple willingly publishes these reports on a quarterly basis, while other firms not only conceal token sales but also deliberately disguise such transactions.

It is absolutely true that the SEC used the transparency of these reports against Ripple and its two executives. As a private company, Ripple was under no obligation to share this info. Other companies not only didn’t share token sales, but intentionally disguised those… https://t.co/mbAO6feEfW
— John E Deaton (@JohnEDeaton1) August 2, 2023

Ripple acknowledged the significant ruling made by Judge Torres in the case of Securities & Exchange Commission v. Ripple Labs on July 13, which declared that XRP is not considered a security. However, the company clarified that while all XRP sales are not classified as securities, sales executed under written contracts can be categorized as investment contracts and thus fall under the security classification.

Furthermore, Ripple addressed misconceptions surrounding its partial victory, stressing that while XRP is not a security in certain contexts, it may still be considered as such in specific circumstances. Additionally, the company clarified that the ruling provides protection to sophisticated institutions but does not extend the same protection to retail buyers.

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DOJ wants SBF’s bail revoked over tampering, diary leak allegations

July 30, 2023 Coin Telegraph

Coin Telegraph

The filing revealed that on Jan. 15, 2023, SBF contacted the current general counsel of FTX US, who could potentially serve as a witness in the trial.

According to a July 28 court filing, the United States Department of Justice (DOJ) is seeking the revocation of Sam Bankman-Fried’s (SBF) bail, accusing him of attempting to tamper with witnesses and leaking Caroline Ellison’s diary to The New York Times.

The DOJ notes in the filing that SBF was released on a bond on Dec. 22, 2022, but later requested multiple bail modifications. According to the filing, on Jan. 15, 2023, the defendant reached out to the current general counsel of FTX US, who could potentially serve as a witness in the trial.

According to allegations, SBF purportedly reached out to the FTX U.S. lawyer through the encrypted messaging application Signal and email. In the communication, SBF expressed a desire to reconnect and explore the possibility of establishing a constructive relationship. He inquired about the potential of using each other as resources or providing mutual input on various matters.

Screenshot of the DOJ’s filing. Source: CourtListener.

As per the DOJ's findings, SBF allegedly employed Signal for obstructive purposes and the auto-deletion feature of messages from communication channels has complicated the investigation. The court expressed concerns regarding the potential risk of witness tampering in light of the defendant's behavior.

According to John Reed Stark, Former Chief of the SEC Office of Internet Enforcement, Judge Kaplan has several options. He could view SBF's actions as an effort to improperly influence witnesses and choose to either make further modifications to his bail conditions or even revoke his bail entirely.

He argued that Judge Kaplan will face a tough decision in this case. If SBF is permitted to stay free, the judge will undoubtedly reiterate his previous warnings.

The written submission comes after a Wednesday hearing in a Manhattan federal court, during which prosecutor Danielle Sassoon stated that no set of release conditions can guarantee the safety of the community.

One week prior, the DoJ leveled accusations against Bankman-Friend for leaking Ellison's personal diary. During the court session, Sassoon informed the judge that Bankman-Friend attempted to "intimidate" Ellison and made around 100 calls to the NYT reporter.

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Lawmakers probe Apple’s App Store policies on blockchain, NFTs

July 29, 2023 Coin Telegraph

Apple

Their letter aimed to explore whether these guidelines might inadvertently hinder the progress and growth of cutting-edge innovations.

United States Representatives Gus Bilirakis and Jan Schakowsky penned a formal letter to Apple CEO Tim Cook about concerns related to the California-based company’s App Store, and the potential effect of its guidelines on emerging technologies like blockchain and nonfungible tokens (NFTs).

The letter requests information about whether the App Store’s guidelines might inadvertently hinder the progress and growth of cutting-edge innovations.

*Screenshot of the letter from the lawmakers addressed to Apple's CEO. Source: Bilirakis blog.*

The lawmakers observed a pattern in Apple’s approach to its App Store guidelines, where the company seemingly capitalized on and simultaneously limited the functionality of crypto apps. They pointed out that Apple achieved this by mandating the release of “lite” versions, which both generated profits for Apple and diminished the overall utility of the applications. As evidence, they specifically mentioned the case of Axie Infinity’s App Store experience.

By dispatching the letter, the lawmakers expressed apprehensions regarding the potential negative consequences of Apple's policies on the United States' standing in the realm of emerging technologies. The Chairman and Ranking Member of the Innovation, Data, and Commerce Subcommittee conveyed their viewpoint, noting that while Apple has justified these limitations as a means to enhance security through a "walled garden" approach, there is widespread concern that the company might be wielding the App Store as a tool to suppress competition.

They emphasized the utmost importance for Congress to gain a comprehensive understanding of the App Store Guidelines and to assess to what extent these guidelines may impede innovation and have an impact on American technological leadership. They added:

"Our subcommittee remains committed to promoting full transparency and ensuring that Big Tech is held accountable for monopolistic behavior,"

They stated that they intend to create a level playing field within the industry so that American ingenuity can continue to thrive. The lawmakers previously penned a similar letter to Apple regarding App Store policies relating to TikTok and other apps originating from China.

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SEC, Binance unite against Eeon’s lawsuit intervention

July 29, 2023 Coin Telegraph

Binance

The US SEC contends that Eeon has a history of repeatedly representing themselves in court cases, but their claims have consistently been unsuccessful in federal courts.

The response from the United States Securities and Exchange Commission (SEC) and crypto exchange Binance has been submitted regarding the entity "Eeon," which has sought to intervene on behalf of customers in the case. Both the SEC and Binance are against Eeon's petition to intervene, citing that it does not meet the necessary legal requirements for intervention and consent.

According to the District Court for the District of Columbia, both Defendant Binance and Plaintiff U.S. SEC objected to Eeon's request to intervene in the lawsuit.

The US SEC contends that Eeon has a history of repeatedly representing themselves in court cases, but their claims have consistently been unsuccessful in federal courts. The SEC has urged the court to reject Eeon's petition for several reasons.

*Screenshot of SEC's response to the intervention petition. Source: Court Listener*

Firstly, the Exchange Act prohibits private litigants from intervening, making Eeon's request impermissible. Secondly, the SEC argues that Eeon's participation in the lawsuit would have no significant impact as their claims align with those of the defendants. Lastly, Eeon's petition fails to meet the necessary requirements for intervention. Additionally, Eeon's counterclaims, seeking relief against both the SEC and Binance, are contradictory in nature.

Binance provided three grounds for dismissing Eeon's petition. Firstly, the lack of consent from the SEC; secondly, Eeon's failure to establish itself as a legitimate party of interest; and thirdly, the failure to meet the necessary legal requirements for intervention. Furthermore, Eeon's counter-claim was deemed vague and unrelated to the current lawsuit.

*Screenshot of Binance's response to the intervention petition. Source: Court Listener*

Therefore, both the plaintiff (SEC) and the defendants (Binance and CEO Changpeng "CZ" Zhao) are united in their opposition to any intervention by Eeon in the SEC's lawsuit against Binance and its CEO.

In the meantime, Binance has filed a motion to dismiss the lawsuit brought by the US CFTC, arguing that the global crypto exchange is not under the jurisdiction of the CFTC and that the CFTC lacks the right to sue its CEO, CZ. However, due to the court's extended deadlines for the submission of responses by both the CFTC and Binance, the dismissal process is expected to extend into the following year.

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Here’s how big food and beverage brands are using NFTs: Report

July 28, 2023 Coin Telegraph

Coin Telegraph

The key supporting factors for the market are the adoption of blockchain technology and the demand for NFTs for transparency and traceability in the food industry.

Nonfungible tokens (NFT) adoption is picking up steam across the food and beverage industry, with many fast-food chains displaying interest in this new asset class.

A report by ResearchAndMarkets.com states that the global food & beverage NFT market size is expected to reach USD 2,134.04 Million by 2032. These statistics have been evident as recently, Global fast-food brands, including Pizza Hut and Papa John’s, are discovering new ways to integrate NFTs into their marketing strategies.

The report states that the key supporting factors for the market are the adoption of blockchain technology and the demand for NFTs for transparency and traceability in the food industry. Unique ownership opportunities, using NFTs in virtual reality and video games, promotions and advertising from food companies and restaurants are other factors expected to drive the market in the forecast period.

*Graphic representation of predicted growth for the Food & Beverage NFT market. Source: Research and Markets*

NFTs are unique digital assets verified on a blockchain network. These are created using blockchain technology, a decentralized digital ledger that records transactions transparently and securely.

The value of an NFT can vary greatly depending on the rarity and popularity of the item it represents, with some NFTs selling for millions of dollars. In the food industry, the NFT market gains traction due to the demand for transparency and traceability. Tracking and verifying food origin, quality and safety is crucial for consumers, retailers and regulators.

In March 2021, Pizza Hut Canada joined the NFT trend with "1 Byte Favorites," a digital pizza collection. The NFTs represented pizza slices with unique recipes on Rarible, featuring popular choices like Hawaiian, Pepperoni, Canadian and Margherita. The NFTs gained popularity and sold out, being used as a marketing campaign to promote their pan pizzas and engage customers.

Papa John's International, Inc., a pizza take-out chain, entered the NFT market with its "Hot Bags" collection. These NFTs showcased handbag designs to promote their new business line, Papa John's X Cheddar, which offers merchandise. The NFTs were minted on the Tezos blockchain, with the numbers symbolizing the company's founding year (1984).

However, the report mentions that NFT adoption in the food & beverage industry is hindered by technical complexities, especially for smaller producers. Limited awareness among consumers and industry stakeholders about NFT benefits also poses a challenge.

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Securitize issues tokenized assets in Spain, plans September trading start

July 27, 2023 Coin Telegraph

Coin Telegraph

The U.S.-based trading platform is set to become the first to issue and trade tokenized assets in both the U.S. and the EU, and will operate under the new DLT pilot regime.

Digital asset trading platform Securitize has begun tokenizing equity in the Spanish real estate investment trust Mancipi Partners, it announced on June 27. The firm expects to launch secondary trading on the Avalanche blockchain in September.

Securitize plans to carry out the first natively tokenized equity issuance under the European Union’s pilot regime for distributed ledger technology supervised by the European Securities Market Authority. The pilot regime was introduced in March.

The company will undergo a six-month sandbox period under the supervision of Spain’s National Securities Market Commission, known by its Spanish acronym CNMV. In addition, it must receive regulatory approval under the pilot regime to allow it to issue, manage and trade tokenized securities in Spain and throughout the EU.

Securitize is already registered with the United States Securities and Exchange Commission as a stock transfer agent and alternative trading system, and is a member of the Financial Industry Regulatory Authority. Securitize CEO Carlos Domingo said in a statement:

“Securitize is now the first firm to be able to issue and trade tokenized securities in both the U.S. and Europe.”

Securitize partnered with asset manager KKR to tokenize an interest in its Health Care Strategic Growth Fund II in September 2022. It announced a partnership with SBI Digital Markets, a Singapore-based subsidiary of Japan’s SBI Digital Asset Holdings, in October 2022, shortly after SBI Digital Markets was granted a license by the Monetary Authority of Singapore.

Though most value is created in private capital markets, they remain notoriously impenetrable, illiquid and inefficient. At Securitize, we’re making #privatemarkets more accessible, and securities more productive.

Listen to @carlosdomingo's full interview with @fintechfrank for… pic.twitter.com/DquglSYFuw
— Securitize (@Securitize) July 21, 2023

Tokenization makes private equity investment more accessible to retail investors and improves liquidity by making the tokenized assets tradable on secondary markets. It also benefits businesses.

“European businesses will be a major beneficiary of this innovation, giving businesses a new way to raise capital through primary capital raises, and obtain potential tax benefits and liquidity through secondary trading,” Domingo said.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

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Hong Kong and Saudi Arabia collaborate on tokens and payments

July 27, 2023 Coin Telegraph

Coin Telegraph

The Saudi Central Bank warned in 2019 that Bitcoin is “not recognized by legal entities” but hasn’t made many statements on crypto since.

Hong Kong is expanding its financial collaboration with the Kingdom of Saudi Arabia, targeting tokenization and payments infrastructure agreements.

On July 26, the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) held a bilateral meeting to strengthen the integration of financial services between the two countries.

As part of the meeting agenda, the HKMA and the SAMA discussed initiatives such as financial infrastructure development, open market operations, market connectivity and sustainable development. The central banks also signed a memorandum of understanding (MoU) to promote joint discussions on financial innovation.

*HKMA chief executive Eddie Yue (left) and SAMA governor Ayman Alsayari (right). Source: HKMA*

According to an official joint announcement, Hong Kong and Saudi Arabia’s authorities also took the opportunity to share their expertise in areas like tokenization, payment infrastructure and supervision technologies.

“There is a lot of room for cooperation between the Kingdom of Saudi Arabia and Hong Kong in the fields of economy and trade, sustainable development, finance and fintech,” HKMA chief executive Eddie Yue said.

SAMA governor Ayman Alsayari noted that the MoU will not only promote the continued development of the relationship between Hong Kong and Saudi Arabia, but also help them “in the future.”

The announcement doesn’t specify whether the development would include any joint efforts related to cryptocurrencies like Bitcoin (BTC), despite the HKMA recently allowing retail investors to trade crypto. On the other hand, the government of Saudi Arabia hasn’t been vocal on any plans to promote crypto in recent years, only warning that Bitcoin is “not recognized by legal entities” in the country in 2019.

The HKMA didn’t immediately respond to Cointelegraph’s request for comment.

Hong Kong is already participating in several inter-jurisdictional tokenization initiatives. In mid-June, the Bank of China’s investment bank subsidiary BOCI issued a $28 million tokenized security in Hong Kong, minted on the Ethereum blockchain. The project deployed Goldman Sachs’ tokenization protocol GS DAP and cash tokens representing claims on the Hong Kong dollar.

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