WuBlockchain Weekly: CZ's First Post-Release Statement, Influx of North Korean Engineers into Crypto Sphere, Fed Not Rushing to Cut Rates, etc

Oct 04, 2024

1. Powell: Committee Not in a Hurry to Cut Rates link

Federal Reserve Chair Jerome Powell stated on Monday that Fed officials are in no hurry to implement further significant rate cuts. While acknowledging that the labor market remains robust and inflation is gradually declining, Powell indicated that the Fed is unlikely to repeat September’s large rate cut in the next two meetings. “If the economy performs as expected, it would mean two more rate cuts this year,” he added, noting that the federal funds rate would decrease by “50 basis points before the end of the year.”

2. IMF Pressures El Salvador to Revise Bitcoin Regulations link

At a press conference on October 3, the International Monetary Fund (IMF) once again urged El Salvador to scale back its Bitcoin policy and to undertake a comprehensive overhaul of its regulatory framework concerning digital assets. Julie Kozack, Director of the IMF’s Communications Department, did not provide specific details regarding the proposed regulatory changes but issued the following statement: “We recommend narrowing the scope of the Bitcoin law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting the public sector’s exposure to Bitcoin.” Since El Salvador legalized Bitcoin as legal tender in 2021, the IMF has repeatedly pushed for the country to abandon Bitcoin in favor of traditional financial infrastructure.

3. Japan’s New PM Sees Blockchain and NFTs Driving Regional Growth link

Japan’s newly appointed Prime Minister, Shigeru Ishiba, has unveiled policies supporting blockchain and NFTs, and plans to appoint the current leader of the Liberal Democratic Party’s Web3 Task Force, Masaaki Taira, as the new Minister of Digital Affairs. According to official policy documents from Ishiba’s office and reports from CoinPost, the Prime Minister sees blockchain and NFTs as tools to boost local economies. “By utilizing blockchain technology and NFTs, we will seek to maximize the value of local products, such as food and tourism experiences, by restoring their value to global market standards,” the documents state. Additionally, Taira has previously mentioned plans to leverage NFTs to enhance the visibility of Japan’s intellectual property assets.

4. CZ’s First Post-Release Statement: Binance Appears to Be Thriving Without Me link

Binance co-founder CZ has made his first post after being released, stating, “The food tastes great, and having more than one serving of fruit every day is truly a luxury! I know some of you may have many questions, but I cannot provide all the answers. Let me take a moment to calm down and consider the next steps; opportunities in the future are always greater than those in the past. Giggle Academy is progressing well and will become an important part of my life in the coming years. Additionally, I will continue to invest in blockchain/decentralized technologies, artificial intelligence, and biotechnology. I am a long-term investor, focused on impact rather than returns. I will also dedicate more time and resources to charitable causes (and education). Currently, I am still writing a book and have completed about two-thirds of it. Writing has proven to be much more challenging than I anticipated, but I will persist until it’s finished. Binance seems to be doing well without me, which is fantastic; it’s every founder’s dream. Stay tuned. See you during the meeting.”

5. BlackRock Exec: Ethereum ETF Unlikely to Match Bitcoin ETF Performance in the Short Term link

Mitchnick acknowledged that BlackRock’s Ethereum ETF has not performed as impressively compared to Bitcoin ETFs so far. However, he urged listeners to compare ETHA to the broader ETF market, stating, “It’s extremely rare for an ETF like Ethereum’s to reach $1 billion in assets under management within seven weeks. In most cases, it takes many years for a new ETF to hit that level.” He added, “I believe the investment narrative around Ethereum is harder for many investors to grasp, which is why we’re so committed to an educational journey with many of our clients. So, you wouldn’t expect it to see the same traffic or asset growth as Bitcoin. But it’s still a very strong start.”

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6. September Bitcoin Miner Revenue Drops to $816M, Yearly Low link

In September, Bitcoin miners’ revenue, measured in USD, totaled $816 million, marking the lowest point in the past year. Of this, revenue from Bitcoin network transaction fees amounted to only $13.86 million, the lowest since the emergence of BRC-20 tokens in March 2023.

7. Bitwise Files First XRP ETF Application link

Bitwise has submitted its S-1 filing for the first exchange-traded fund (ETF) based on XRP, becoming the first company to apply for a spot ETF focused on XRP. The application was submitted to the U.S. Securities and Exchange Commission on Wednesday morning. Bitwise CEO Hunter Horsley stated that XRP is one of the most recognized and enduring assets in the cryptocurrency space, with significant potential to attract mainstream investors.

8. FTX Restructuring Plan May See Small Creditors Paid by End of 2024 link

According to the latest bankruptcy filing from FTX, the next court hearing to confirm the reorganization plan is scheduled for October 7, 2024. If the plan is approved, creditors with claims under $50,000 may begin receiving compensation by the end of 2024, while those with larger claims may have to wait until the first or second quarter of 2025 for their payments. Some creditors are requesting compensation in cryptocurrency rather than cash, which is facing some opposition.

9. Over a Dozen Blockchain Companies Unknowingly Hired IT Staff from North Korea link

North Korea has infiltrated the crypto industry through identity fraud, with over a dozen blockchain companies unknowingly hiring IT workers from the country. Notable projects such as Cosmos Hub, Injective, Fantom, Sushi, and Yearn Finance were among those affected. Investigations reveal that these North Korean workers successfully passed interviews and background checks using false identities and transferred their salaries to blockchain addresses linked to the North Korean government. It is estimated that North Korea’s IT workers generate up to $600 million annually for the regime, some of which is used to fund its nuclear weapons program. Additionally, some companies that employed North Korean workers later experienced hacking incidents; for instance, Sushi lost $3 million in 2021 due to malicious code.

10. Coinbase Predicts Positive Q4 Amid U.S. Rate Cuts and China Stimulus link

Coinbase Institutional’s latest report indicates that the cryptocurrency market is expected to perform positively in the fourth quarter of 2024, buoyed by anticipated interest rate cuts in the U.S. and significant stimulus measures from China. While Bitcoin’s outlook remains robust, Ethereum faces challenges from rising transaction fees and limited impacts from spot ETFs. Solana and other Layer 1 networks are increasingly focused on scalability and transaction efficiency, with improvements in decentralized exchanges and blockchain infrastructure signaling positive developments for the cryptocurrency sector.

Fundraising

Binance Labs has announced an investment in ZKsync’s expansion chain, Sophon. link
OpenAI has completed a new funding round of $6.6 billion, achieving a valuation of $157 billion. link
The metaverse project SecondLive has announced the completion of $12 million in funding. link
Re-staking network Mind Network has secured $10 million in Pre-A funding. link
Solana DePIN project Mawari Network has completed a strategic financing round of $10.8 million. link
YuanCoin Technology has announced the completion of $7.8 million in A1 funding. link
Decentralized 3D mapping project MeshMap has successfully raised $4 million. link
Full-stack decentralized development tool developer Layer has completed a seed round of $6 million in financing. link

Learn more, check out crypto-fundraising.info.

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