In this recap of the crypto world, let us explore the events and news that had the most significant impact in the past week. Our focus will be on the following developments:
● Animoca Brands x Square Enix
● Jupiter Exchange Acquires Ultimate Wallet
● Biden’s Tax Plan Pushes Capital Gains Rate to 44.6%
● Binance Announces Native Liquid Staking on BSC
● Consensys Sues SEC
Animoca Brands x Square Enix
Japanese gaming giant Square Enix has joined forces with Animoca Brands Japan to push the boundaries of Web3 gaming. In a recent announcement, the two companies revealed a partnership aimed at expanding the global marketing of Symbiogenesis, a Web3 game developed by Square Enix.
The collaboration is built on a memorandum of understanding (MoU), outlining how Animoca Brands Japan will help promote Symbiogenesis on a global scale. Leveraging its expertise in NFT sales and marketing, Animoca Brands Japan will draw from its extensive network of portfolio companies and partners to maximize the game’s reach. This collaborative effort will help raise awareness for Symbiogenesis and create new opportunities for engaging with players worldwide.
One key component of this partnership is the promotion of Symbiogenesis through Animoca Brands Japan’s upcoming NFT Launchpad. This platform is expected to give the game’s NFT collection greater visibility, potentially leading to a surge in global sales. This strategic move could be pivotal for the Japanese Web3 gaming community, providing new avenues for success and innovation.
Overall, this collaboration underscores the growing influence of Web3 technologies in the gaming world. It also highlights the potential for NFT-based games to gain traction on a global scale. With companies like Square Enix and Animoca Brands Japan leading the way, the next chapter in gaming is poised to be more dynamic and interconnected than ever before. Read more on this here.
Jupiter Exchange Acquires Ultimate Wallet
Jupiter, a leading decentralized exchange (DEX) on the Solana blockchain, has announced the acquisition of Ultimate Wallet, along with its experienced mobile development team. This strategic move aligns with Jupiter’s broader ambitions to enhance its mobile presence and attract a significant new user base. The acquisition is set to boost Jupiter’s technology and operations, especially as it prepares for its beta release, scheduled for May 2024.
The acquisition particularly is a critical step in Jupiter’s strategy to establish a stronger foothold in the mobile market, providing users with an enhanced experience in swapping and mobile accessibility. By incorporating Ultimate Wallet’s technology and team, Jupiter aims to deliver a superior mobile experience that complements its existing zero-fee swaps on Solana. This focus on user-centric design and technological innovation is expected to set Jupiter apart in the competitive DEX landscape.
In terms of implications for users, while Jupiter has exciting plans for the future, the Ultimate Wallet app will be phased out on May 22, 2024. Until then, users can continue to use the wallet with confidence. This transition period allows users to make necessary adjustments and ensures a smooth migration to Jupiter’s upcoming mobile platform. Read more on this here.
Biden’s Tax Plan Pushes Capital Gains Rate to 44.6%
President Joe Biden has proposed a significant increase in the capital gains tax rate to 44.6% for 2025, potentially making it the highest rate in over a century. The proposed hike has implications for investors, family businesses, and others with significant capital assets, potentially leading to substantially heavier tax burdens.
When combined with existing state-level capital gains taxes, the proposed federal rate could drive the overall tax rate to over 50% in several states. Among these states, California stands out with a combined rate of 59%, while New Jersey’s total rate would reach 55.3%. Other states impacted by the federal increase include Oregon at 54.5%, Minnesota at 54.4%, and New York at 53.4%.
President Biden’s plan also includes an increase in the corporate tax rate to 28%, contributing to a broader package of tax proposals aimed at raising $5 trillion over the next ten years. However, The proposed capital gains tax hike plays a significant role in this budget. Read more on this here.
Binance Announces Native Liquid Staking on BSC
Binance has announced a strategic move to integrate native liquid staking on its BNB Smart Chain (BSC), signaling a significant shift in the network’s structure. This transition is part of a broader plan to consolidate the BNB Chain’s operations and move away from the BNB Beacon Chain, which is scheduled to close in June 2024.
The integration of Liquid Staking Decentralized Finance (LSDFi) is planned for April to early May, forming a key step in the transition process leading up to the complete shutdown of the BNB Beacon Chain in June. With all functions moving to BSC, this consolidation is expected to optimize the network’s performance, enhance efficiency, and mitigate security risks.
The implementation of LSDFi on BSC will enable BNB holders to earn staking rewards without locking their tokens indefinitely. This increased flexibility can attract more participants to the staking process, contributing to a more robust and secure network. Additionally, the focus on BSC as the primary chain reflects BNB Chain’s commitment to innovation and adaptability in a rapidly changing blockchain landscape. Read more on this here.
Consensys Sues SEC
Consensys, a prominent blockchain and Web3 software company, has taken legal action against the U.S. Securities and Exchange Commission (SEC), filing a lawsuit in the US District Court for the Northern District of Texas. This move is significant in the cryptocurrency world, as it positions the SEC on the defensive, which is relatively uncommon in this regulatory landscape.
The lawsuit centers on the SEC’s attempts to categorize Ethereum as a security, a move that Consensys argues would stifle innovation and damage the U.S. economy. If deemed a security, Ethereum would be subject to more rigorous regulations and compliance requirements, potentially hindering its growth and innovation potential.
Consensys, on the other hand, contends that Ethereum remains a commodity and should not be subjected to the same regulations as securities. The company’s lawsuit aims to establish that the SEC has no legal authority to regulate Ethereum or any related technologies.
In response, Gary Gensler, the chairman of the SEC, has taken a strong stance, asserting that existing securities laws are adequate to regulate cryptocurrencies. However, this perspective has faced substantial criticism from industry leaders and the crypto community. Read more on this here.
