In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of July 03. Our focus will be on the following developments:
- AzukiDAO Rally for Legal Action
- Coinbase introduces ‘Coinbase Advanced’
- Valkyrie Files for Spot Bitcoin ETF
- Crypto is Digital Gold Says BlockRock’s CEO
- Meta Launches Its Twitter Rival
AzukiDAO Rally for Legal Action
A recent development within the Azuki community has caught the attention of the Web3 community. A self-proclaimed group of 74 “diamond Azuki holders”, operating as AzukiDAO, has taken a bold step by proposing legal action against Azuki’s founder, Zagabond (Alex Xu), accusing him of “rug-pulling” multiple projects.
AzukiDAO’s proposal seeks to reclaim $39 million worth of ETH, which they claim Zagabond earned through the controversial Elementals NFT collection launched by Azuki. The proposal further entails that the funds, if retrieved, would be reinvested back into the DAO to foster the growth and development of the Azuki community.
However, the origins and intentions of AzukiDAO have been questioned by members of the Azuki community. Critics argue that the relatively small group of collectors comprising AzukiDAO should not dictate the path forward for the broader Azuki community. Moreover, many Azuki holders had never heard of the DAO and suspected it to be either fake or driven by malicious intent.
In addition to these controversies, the DAO encountered a setback when hackers exploited a flaw in the AzukiDAO claiming contract, resulting in the theft of 35 ETH. However, AzukiDAO responded promptly, resolving the contract vulnerability, and ensuring enhanced security measures moving forward. Unfazed by the incident, the organization remains determined, currently consulting with a team of lawyers to pursue its objectives. Read more on this here.
Coinbase introduces ‘Coinbase Advanced’
Despite ongoing legal challenges from the US Securities and Exchange Commission (SEC), Coinbase remains steadfast in its commitment to enhancing its services for cryptocurrency enthusiasts. The exchange has recently launched Coinbase Advanced, a specialized trading platform designed to cater to more experienced traders.
With Advanced Trade, Coinbase introduces a secure and user-friendly platform for buying, selling, and trading digital assets across various trading pairs. The platform offers an array of advanced tools, including interactive charts powered by TradingView, advanced order types, and seamless access to Coinbase’s additional features like staking, borrowing, and the DApp Wallet. In addition to this, Coinbase has announced the introduction of 237 new USDC trading pairs on this platform.
Coinbase has caught the attention of the cryptocurrency community by offering a 4% yield on holdings of USDC. This offering presents an alternative avenue for individuals to maximize their investment growth. In contrast to traditional banks, which typically provide modest APYs ranging from 0.01% to 0.50%, Coinbase’s 4% yield significantly outperforms these offerings. By providing a competitive yield, Coinbase aims to attract more users to its platform and strengthen its position in the crypto world.
Furthermore, Coinbase underscores the distinction between cryptocurrencies available on its new platform and traditional securities. The company asserts that the cryptocurrencies traded on its platform are not subject to arrangements wherein promoters sell assets tied to contracts, citing the precedent-setting Howey case by the Supreme Court. Coinbase emphasizes that the characteristics of cryptocurrencies, particularly those traded on its platform, do not align with the typical attributes associated with securities. By highlighting this distinction, Coinbase aims to alleviate concerns and assure users of its compliance with regulations. Read more on this here.
Valkyrie Files for Spot Bitcoin ETF
Cryptocurrency fund manager Valkyrie has recently filed an application for a spot Bitcoin exchange-traded fund (ETF) in the United States, following the trend set by other firms. As per Cointelegraph, the filing, made with the U.S. Securities and Exchange Commission (SEC), involved a proposed rule change to allow the listing of the Valkyrie Bitcoin Fund’s spot BTC ETF on the Nasdaq stock exchange. This move aligns with recent re-filings from asset managers BlackRock and Fidelity, which have included surveillance-sharing agreements in their submissions.
Valkyrie’s inclusion of a surveillance-sharing agreement with Coinbase aims to strengthen market oversight by providing the Nasdaq with additional data regarding spot Bitcoin trades. Enhancing surveillance capabilities is crucial for regulatory bodies like the SEC, as it allows them to monitor market activity more effectively, identify potential manipulation, and ensure investor protection. By sharing data, the SEC gains access to a comprehensive picture of the spot Bitcoin market, aiding their decision-making process regarding ETF approval.
While Valkyrie is joining the race to launch a Bitcoin ETF, the ultimate decision rests with the SEC, which has yet to approve such a product. The coming weeks and months will reveal whether the flurry of applications will lead to a breakthrough in the approval of a spot Bitcoin ETF.
Crypto is Digital Gold Says BlockRock’s CEO
In a recent interview on FOX Business, Larry Fink, the CEO of BlackRock, the world’s largest asset management firm, discussed the spot Bitcoin ETF filing and expressed his views on the potential benefits of cryptocurrencies. Fink referred to crypto as “digital gold” and classified Bitcoin (BTC) as a digital asset with unique characteristics.
According to Fink, cryptocurrencies play a significant role in digitizing gold. He explained, “I do believe that the role of crypto is digitalizing gold in many ways.” Traditionally, gold has been viewed as a hedge against inflation and a safeguard against currency devaluation in specific countries. Fink highlighted that Bitcoin offers an alternative by acting as an international asset that transcends national boundaries.
As per WatcherGuru, Fink expressed hope that BlackRock’s spot Bitcoin ETF filing would be viewed as a means to “democratize crypto.” However, given the Securities and Exchange Commission’s (SEC) history of rejecting previously filed spot BTC ETF applications, it remains uncertain whether the investment vehicle will receive approval.
However, Fink acknowledged the need to work with regulators and expressed optimism about eventual approval, saying, “We hope that, like in the past, we could be working with our regulators and get the filing approved one day.” While he remained uncertain about the timing, Fink emphasized BlackRock’s commitment to navigating the regulatory landscape and finding a path forward.
Meta Launches Its Twitter Rival
Meta has introduced its new social media platform, Threads, which aims to compete with Twitter. The app is now available for download on the Apple App Store and Google Play Store for Android users. Threads has garnered excitement from users as they embrace the opportunity to publish on a fresh social media timeline.
While the interface offers a less cluttered experience compared to Twitter, it includes familiar functions such as following accounts, engaging with posts, receiving notifications, and conducting searches. However, it is important to note that as part of the Meta family, Threads has raised concerns about data privacy. The app’s access permissions include contact and location information, web browsing and search activity, and other “sensitive” information. Given Meta’s history of handling user data, users should be aware of the extensive data collection associated with Threads and exercise caution while using the platform.
Furthermore, shortly after Threads’ debut, Twitter issued a letter to Meta, threatening to sue the company for alleged theft of trade secrets during the creation of the rival messaging app. As per Financial Times, Twitter demanded that Meta cease using any confidential information belonging to Twitter and take immediate action to address the issue. The letter also warned Meta against engaging in any crawling or scraping of Twitter’s followers or following data. With tens of millions of users flocking to Threads within hours of its launch, Twitter is intent on protecting its intellectual property rights and seeking legal remedies, including both civil remedies and injunctive relief.
