LianGuai Daily | Binance launches new coin mining projects Sei and CyberConnect; Curve founder has sold a total of 54.5 million CRV coins.
Binance launches Sei and CyberConnect coin mining projects, while Curve founder sells 54.5 million CRV coins.
IRS Releases New Guidance: Staking Rewards on POS Blockchains are Subject to Taxation
Binance Launches 36th Phase of Token Mining, SEI Can be Mined with BNB, TUSD, and FDUSD
Binance Launches 37th Phase of Token Mining, CYBER Can be Mined with BNB, TUSD, and FDUSD
FTX Submits Restructuring Plan, Offshore Exchanges to Resume Operations
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Binance Launches Compliant Crypto Platform in Japan: Account Applications Accepted in Mid-August, Trading Begins in December
Curve Founder Sells 54.5 Million CRV Tokens, Raises $21.8 Million in Funding
Data: a16z Transfers Final 6,586 MKR, Transferred Over 30,000 MKR to Coinbase in the Past Month
Coinbase Product Director: Richard Heart Holds at Least $703 Million DAI, Accounting for 15.5% of Total Circulation
The IRS Releases New Guidance: Staking Rewards on POS Blockchains are Subject to Taxation
According to CoinDesk, the latest tax guidance from the Internal Revenue Service (IRS) outlines how and when to tax cryptocurrency staking rewards. According to a decision released by the IRS on Monday, cryptocurrency investors who receive rewards for validation activities on proof-of-stake (POS) networks should include these rewards as income for the year in which the investor controls the tokens.
According to legal analysis, “the fair market value of the validation reward received is included in the taxpayer’s total income for the taxable year in which the taxpayer has dominion and control over the validation reward,” and the value should be calculated from the moment the US taxpayer gains control over the tokens.
The IRS notes in the guidance that if “a taxpayer receives additional units of cryptocurrency as a result of validation,” the rule also applies to investors who stake tokens through cryptocurrency exchanges.
PBOC, SAFE Working Conference: Steadily Promote and Continue to Drive the Research and Development Pilot of Digital RMB
The People’s Bank of China and the State Administration of Foreign Exchange held a working conference for the second half of 2023. The conference called for continuous improvement of financial services and management levels, coordinated promotion of key legislation and amendment projects, deepening the pilot work on statistical analysis and big data application, conducting governance of “funding chains” related to gambling and fraud, continued promotion of the research and development pilot of digital RMB, steady construction of the national treasury informatization project, comprehensive strengthening of credit reporting supervision and anti-money laundering work, and further enhancement of the effectiveness of financial research and policy advice.
OpenAI: Android Version of ChatGPT Now Fully Launched
OpenAI announced on Twitter that the Android version of ChatGPT is now available in all countries and regions that support ChatGPT.
It is reported that OpenAI officially launched the Android version of ChatGPT on July 26th. Android users in the United States, India, Bangladesh, and Brazil can download it from the Google Play Store. Later, the Android version of ChatGPT was expanded to 16 countries and regions.
Binance launches the 36th phase of new coin mining with BNB, TUSD, and FDUSD to mine Sei (SEI).
According to the official announcement, Binance has now launched the 36th phase of the new coin mining project Sei (SEI). Users can deposit BNB, TUSD, and FDUSD into the SEI mining pool on the LaunchLianGuaid website starting from 8:00 on August 2, 2023, to receive SEI rewards. SEI can be mined for a total of 30 days. The website is expected to be updated approximately five hours after this announcement, before the start of the mining activity.
Binance will list Sei (SEI) on August 15, 2023, at 20:00 and open SEI/BTC, SEI/USDT, and SEI/BNB trading pairs, following the seed label trading rules.
Later today, Sei announced the token distribution details: a total of 10 billion tokens, with 20% allocated to investors and 20% to the team.
Binance launches the 37th phase of new coin mining with BNB, TUSD, and FDUSD to mine CyberConnect (CYBER).
According to the official announcement, Binance has now launched the 37th phase of the new coin mining project CyberConnect (CYBER). CyberConnect is a Web3 social network that enables developers to create social applications. Users can deposit BNB, TUSD, and FDUSD into the CYBER mining pool on the LaunchLianGuaid website starting from 08:00 on August 2, 2023 (GMT+8) to receive CYBER rewards. CYBER can be mined for a total of 30 days. The website is expected to be updated approximately five hours after this announcement, before the start of the mining activity.
In addition, Binance will list CyberConnect (CYBER) on August 15, 2023, at 20:00 (GMT+8) and open CYBER/BTC, CYBER/USDT, and CYBER/BNB trading pairs, following the seed label trading rules.
Later today, CyberConnect disclosed the token economic model: a total of 100 million tokens, with 9% allocated for community rewards. In addition, CyberConnect will launch the first season of community rewards on August 15, distributing a total of 2.4 million CYBER tokens.
Binance launches a compliant cryptocurrency platform in Japan: accepting account applications in mid-August, trading starts in December.
According to Bloomberg, Binance announced that it has officially launched a compliant cryptocurrency trading platform in Japan on Tuesday local time. Japanese customers can start applying for accounts from mid-August and will no longer have access to the global Binance platform after November 30, but can trade on the new platform starting from December 1.
Earlier today, it was reported that Binance Japan will initially support trading of 34 tokens, making it the Japanese exchange that supports the most number of cryptocurrencies.
Bloomberg: Blockchain company Figure to lay off 20% of its workforce this week, planning to go public next year.
According to Bloomberg, blockchain lending company Figure Technologies Inc. laid off 90 employees this week, accounting for about 20% of its total workforce. About half of the laid-off employees are engineers. The company also plans to conduct an initial public offering (IPO) for its lending division “LendCo” next year and has begun discussions with bankers. Figure founder Mike Cagney said he expects LendCo’s post-IPO valuation to reach $2.5 billion. In addition, according to a letter sent by Cagney to Figure investors and partners in July of this year, the transaction volume of Figure’s lending business reached a record $900 million in the second quarter of this year, and the revenue for the first half of the year reached $83.5 million. Previously, Figure Technologies completed a $200 million Series D financing in 2021 with a valuation of $3.2 billion.
DCG: Expects Genesis Capital Chapter 11 bankruptcy case to be resolved soon
According to CoinDesk, Digital Currency Group (DCG) stated in a letter to shareholders on Monday that it is close to reaching a “principled agreement” on resolving the claims in the Genesis Capital Chapter 11 bankruptcy protection case, and expects the bankruptcy case to be resolved “soon”. Previously, DCG was selling shares of CoinDesk to an investor group, including long-term crypto investor Matthew Roszak. The group plans to acquire CoinDesk for about $125 million, and the transaction has entered the final negotiation stage. In addition, DCG is also seeking strategic investors for its crypto exchange Luno.
Curve calls for cancelation of voting on WETH+CRV and USDT+WBTC+WETH pools on Arbitrum
Curve Finance tweeted, “Incentives for voting on WETH+CRV and USDT+WBTC+WETH pools on Arbitrum have been removed from the voting market. Please cancel your votes for these pools: the first pool has been exploited and the second pool may not be safe.”
Volatility Shares plans to launch Ethereum futures ETF
According to Blockworks, Volatility Shares plans to launch an Ethereum futures ETF. The company detailed its proposed “Ethereum Strategy ETF” in a filing submitted to the U.S. Securities and Exchange Commission (SEC) on July 28, which will invest in cash-settled Ethereum futures contracts traded on the Chicago Mercantile Exchange (CME). It will not directly invest in Ethereum. In May of this year, Grayscale revealed plans to launch an Ethereum futures ETF. Subsequently, Bitwise Asset Management, Direxion, and Roundhill Investments also submitted applications. A few days later, Grayscale amended the filing, indicating that it would abandon the launch of the product. Other companies have also withdrawn their applications for Ethereum futures ETFs. Industry insiders believe that the potential reasons are concerns about the liquidity of Ethereum futures and uncertainty about whether Ethereum is classified as a security or a commodity. Previously, Volatility Shares launched the first leveraged Bitcoin futures ETF in the United States in June of this year.
Curve incident report: Approximately $61.7 million in losses caused by 4 pools, next step is to stop Gauge emissions to affected pools
Curve Finance retweeted the post-analysis of the Curve pool reentry vulnerability exploit released by the crypto risk assessment group LlamaRisk. LlamaRisk’s report stated that an error in the old version of the Vyper compiler caused a failure in the security feature used by a limited number of Curve pool groups, allowing attackers to deplete tokens in the affected pools. Although Curve is trying to contact the exploiters and recover user funds, the exploitation of this vulnerability directly harmed the interests of Curve liquidity providers in these affected mining pools. Thanks to white hat hackers, the DAO was able to recover some tokens from the affected pools. The Curve eDAO cannot pause Curve pools or handle user funds in any way, but it can stop CRV Gauge emissions to Curve pools, and it is expected that the eDAO will eliminate Gauge emissions to all affected pools.
The affected pools and the amounts of loss caused in this incident are as follows: 1. pETH/ETH: 6,106.65 WETH (approximately $11 million); 2. msETH/ETH: 866.55 WETH (approximately $1.6 million) and 959.71 msETH (approximately $1.8 million); 3. alETH/ETH: 7,258.70 WETH (approximately $13.6 million) and 4,821.55 alETH (approximately $9 million); 4. CRV/ETH: 7,193,401.77 CRV (worth approximately $5.1 million when utilized), 7,680.49 WETH (approximately $14.2 million), and 2,879.65 ETH (approximately $5.4 million). The total loss of the above-mentioned pools is approximately $61.7 million.
The report also states that the next immediate steps are to stop the Gauge emissions to the affected pools and create new ordinary pools for alETH, msETH, and pETH. The new ETH pool should be paired with ETH or an ETH pool. CRV already has a new Tricrypto pool paired with crvUSD and ETH, which is not affected by the reentrancy exploit. The Curve team will continue to explore all avenues to recover user funds and will provide updates on social channels.
FTX has submitted a restructuring plan, which includes the offshore exchange reopening
FTX 2.0 Alliance (@AFTXcreditor) tweeted that FTX has submitted a restructuring plan, with key information including: 1. All non-customer claims (such as the US Internal Revenue Service) will be subordinate; 2. FTT claims will have a zero amount; 3. The offshore exchange will reopen to compensate for customer shortfalls.
Coinbase spokesperson: SEC did not request delisting of any specific assets, Financial Times report is inaccurate
According to Blockworks, based on the latest statements from Coinbase and the US Securities and Exchange Commission (SEC), the SEC did not request Coinbase to delist any specific assets before suing Coinbase.
A Coinbase spokesperson stated, “An article in The Financial Times claimed ‘Coinbase CEO Brian Armstrong said that the SEC has demanded a halt to trading in all cryptocurrencies except for Bitcoin,’ this is ‘an inaccurate characterization of the facts’; the SEC never requested Coinbase to delist any specific assets before filing the lawsuit, and the SEC acknowledged this in the same article; the interview published by The Financial Times overlooked important context regarding Coinbase’s conversations with the SEC.”
The Coinbase spokesperson explained that the alleged SEC request for Coinbase to “delist all assets except for Bitcoin” was just the view of some SEC staff members at the time and not the view of the broader committee. Such requests can only be made after being voted through by a majority of the committee members themselves. An SEC spokesperson stated in the latest statement, “SEC staff would not request a company to delist crypto assets. During the investigation process, staff may express their views on which actions may be subject to securities laws to the Commission.”
Analysis: The position of Curve founder in Frax Finance could pose greater risks to CRV and even trigger a DeFi domino effect
Cryptocurrency research firm Delphi Digital stated on Twitter that Curve founder Michael Egorov holds 59 million CRV collateral and a debt position of 15.8 million FRAX in Frax Finance. Although this is much smaller than his position in Aave, it poses greater risk to CRV due to the time-weighted variable interest rate in Fraxlend.
An analysis suggests that when the utilization rate of Fraxlend reaches 100%, the interest rate doubles every 12 hours, reaching 81.2% as of the time of writing (about 1 hour ago). It is expected to rise to a maximum of nearly 10,000% APY in 3.5 days. Regardless of the CRV price, this extremely high interest rate could potentially lead to Michael being liquidated. With a maximum LTV of 75%, the liquidation price of his position could reach 0.517 CRV/FRAX within 4.5 days, which can be reached with a drop of less than 10% in the current price. Michael has tried twice to reduce his debt and utilization, repaying 4 million FRAX in the past 24 hours, but the market utilization rate remains at 100% because users are eager to remove liquidity once he repays. Due to the significant risk associated with such a large position and considering the existing low liquidity, these liquidation risks pose a serious concern to the CRV price. If this eight-digit position size is liquidated, the CRV price could plummet to extremely low levels, causing a ripple effect on a large part of the DeFi ecosystem.
Standard Chartered Bank Hong Kong: The group has a specific framework for opening accounts for virtual assets
According to Sing Tao Daily, Mary Huen, CEO of Standard Chartered Bank Hong Kong, stated that the group views virtual assets as an important part of the future of the financial industry, and has established a specific framework for opening accounts for such assets. As long as the relevant companies meet due diligence, anti-money laundering, and risk management requirements, accounts will be opened. The group has also had successful cases, but admits that if it involves cryptocurrencies without any underlying support, Standard Chartered Bank will be more cautious in dealing with these companies.
Shapella upgrade successfully activated on Gnosis Chain
Ethereum sidechain Gnosis Chain announced on Twitter that the Shapella upgrade has been successfully activated on Gnosis Chain.
LeetSwap: If the attacker returns the funds, they will be allowed to keep 50 ETH
LeetSwap, the largest DEX on the Base chain, tweeted: “We would like to reach an agreement with you to allow you to keep 50 ETH and return the rest to the LeetSwap deployer wallet. In return, we will not interfere with your use of the Base bridge.”
LeetSwap also stated: “Our website on Base was disabled shortly after the exploit, and our servers were subjected to DDoS attacks. Despite being behind proxies and caching on Cloudflare, it was completely destroyed. Someone tried to stop us, but we have been working hard to salvage as much ETH liquidity as possible to limit the damage caused by the hacker.”
Earlier today, it was reported that the axlUSD/WETH pool on LeetSwap was subjected to price manipulation attacks, resulting in a loss of approximately $620,000. Subsequently, liquidity for one trading pair on LeetSwap was removed, causing the token LEET price to momentarily drop to zero.
Investment and Financing
Coatue Management’s fund, a subsidiary of the investment company Coatue Management, has completed a $331 million financing, 34% lower than the target amount.
According to The Information, Coatue Management, based in New York, has raised $331 million for its latest fund, 34% lower than the target amount. Coatue Management has previously invested in crypto startups such as MoonLianGuaiy, Chainalysis, and Fireblocks. Last year, three general partners of Coatue Management, including Luca Schmid, who led some of the company’s notable crypto and fintech investments, left the firm. In addition, according to K33 Research, venture capital investments in Web3 companies in the first quarter of this year have decreased by 80% compared to the previous year.
Solv Protocol, a DeFi protocol, has completed a $6 million financing round. According to CoinDesk, Laser Digital, a subsidiary of Japanese bank giant Nomura Securities, participated in this round of financing. Other investors include Dahua Venture Capital, Mirana Ventures, Emirates Consortium, Matrix LianGuairtners, Apollo Capital, HashCIB, Geek Cartel, and Bytetrade Labs. The new funds will help the company expand its team and continue to focus on the technical development of its platform. According to data from DeFiLlama, the total locked value of Solv Protocol has grown to $2.8 million since its launch in the second quarter of this year, serving over 25,000 users and facilitating over $100 million in trading volume.
Data: a16z transfers the last 6,586 MKR, accumulating over 30,000 MKR transferred to Coinbase in the past month.
According to on-chain analyst Yu Jin, a16z transferred 6,586 MKR from two addresses about 3 hours ago, worth approximately $8.1 million. Based on previous transfer patterns, these MKR tokens will be gradually transferred to Coinbase in the next few days.
Yu Jin predicts that this continuous transfer of MKR from a16z addresses will come to an end, with a total of 37,518 MKR (approximately $46.14 million) transferred to Coinbase over the course of nearly a month.
Curve founder has sold a total of 54.5 million CRV, exchanging it for $21.8 million in funds.
Yu Jin, an on-chain analyst, stated in a post that the Curve founder has sold a total of 54.5 million CRV, exchanging it for $21.8 million in funds.
Of these, 12.5 million CRV was sold to DWFLabs; 3.75 million CRV was sold to machibigbrother; 2.5 million CRV was sold to CreamdotFinance; 2.5 million CRV was sold to an address starting with 0xb0b; 2.5 million CRV was sold to an address starting with 0xb0b; 1.25 million CRV was sold to an address starting with 0xcb5; and 0.25 million CRV was sold to an address starting with 0x9db.
Earlier today, it was reported that the Curve founder continues to repay FRAX debt, with a cumulative repayment of 7.14 million FRAX as of 16:45.
Coinbase Product Lead: Richard Heart holds at least $703 million DAI, accounting for 15.5% of the total circulating supply.
Conor Grogan, Coinbase Product Lead, tweeted that according to public information and SEC allegations, wallets associated with Richard Heart (including PulseX/Pulsechain) hold at least $703 million worth of DAI, accounting for 15.5% of the circulating supply of DAI. Previously, the U.S. Securities and Exchange Commission (SEC) sued Richard Heart, accusing him of selling unregistered securities. Heart is the founder of Pulsechain, PulseX, and Hex projects, and has raised over $1 billion by selling tokens for these projects.
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