Gryphsis Cryptocurrency Weekly: SBF family under scrutiny amid bankruptcy woes

Welcome, dear reader, to Gryphsis Academy’s weekly cryptocurrency digest. We bring you key market trends, in-depth insights on emerging protocols, and new industry dynamics, all designed to enhance your expertise on cryptocurrency and Web3. Happy reading! Follow ourTwitterandMediumGet deeper research and insights.

Market and Industry Snapshot:

Layer 2 Overview:

Most networks in the Layer 2 space have seen positive growth over the past week, with Starknet leading the way in terms of percentage growth. zkSync continues to dominate on-chain activity. As for protocols, Range Protocol, XY Finance, Autoearn Finance, Interport Finance, and Cairo experienced the largest gains in TVL.

LSD Sector Overview:

The LSD space has maintained steady growth over the past week, with %ETH now sitting at 22% staked. As for LSD’s market share, there hasn’t been any significant change.

RWA Sector Overview:

Over the past week, RWA private credit values ​​have increased slightly, while tokenized USD Treasuries have continued to decline. Clear winners this week include $DEXTF, $BST, and $DETF, while $LABS V2, $RIO, and $INX faced significant losses.

Main Topics

Macro overview:

• US Stock V.S. Crypto

Big news this week:

• FTX Sues SBF’s parents

Weekly Agreement Recommendations:

• Eclipse

Gryphsis Research:

• Cosmos, Polkadot, L2 Stacks

Weekly VC Investment Focus

• Core Scientific ($ 53 M)

• Proof of Play ($ 33 M)

Twitter Alpha:

• @wacy_time 1  zkSync alpha thread.

• @cyrilXBT potential airdrop list

• @Deebs_DeFi 45 tools to use

• @TheDefiDog’s thread on Polytrade x Mastercard

Macro Overview

Crypto markets have shown greater resilience than equities over the past week, with $BTC outperforming $ETH, SPX, and NAQ. Key events to watch over the coming week include the release of data on building permits, CB consumer confidence, GDP and initial jobless claims data.

Big news this week

Source: Bloomberg

FTX’s legal crossfire: Bankman-Fried family under scrutiny amid bankruptcy woes

FTX, the cryptocurrency exchange that declared bankruptcy, has taken legal action against the parents of its founder, Sam Bankman-Fried. The lawsuit claims that Joseph Bankman and Barbara Fried abused their influence within the FTX structure to improperly enrich themselves, causing the exchange to suffer significant financial losses. The alleged unjust enrichment included deals like a $10 million cash gift and a $16.4 million luxury home in the Bahamas, both of which were made without any financial input from the parents.

The extent of parental involvement in FTX operations is a point of contention. Contrary to Sam Bankman-Fried’s assertions, the lawsuit implies that the two Stanford Law School professors were closely involved in FTX’s business decisions and political contributions from its inception to its collapse. Joseph Bankman is said to have significant decision-making power within FTX Group, while Barbara Fried played a key role in the companys political donations.

In response to the lawsuit, legal representatives for Bankman and Fried have vehemently denied the allegations, labeling them"Totally wrong". They believe the legal move is an attempt to derail the upcoming trial of their son, Sam Bankman-Fried, who faces charges of alleged fraudulent activity related to funds from FTX and Alameda Research. The outcome of this lawsuit could have broader implications for the cryptocurrency space and the individuals involved.

As the investigation into FTX continues, more allegations and complexities emerge. For many retail investors, hope remains that justice will be served and lost funds recovered. Encouragingly, some of FTXs debt has been resolved. If you havent submitted your customer claim yet, its critical that you complete it, the deadline is September 29, 2023, at 4 PM ET. Well guide you through this process in the next section:

1. Navigate toFTX Customer Claims Portal, and select the platform on which you own your assets.

2. Log in using the same username and password from your previous FTX account.

3. Once logged in, confirm your email address.

4. Continue with the KYC (Know Your Customer) process, uploading your ID card and any other required documents.

5. Verify and confirm your account balance.

6. Submit your electronic proof of claim. This involves completing three subsequent forms:

   - FTX Details

   - Scheduled Claim Information

   - Submission Information

After completing these steps, the user will receive a confirmation email with additional documentation of the process.

Weekly Agreement Recommendations

On September 20, Eclipse, a universal second-layer solution for Ethereum, announced its mainnet architecture. The most unique feature of Eclipse is its network architecture, which uses Ethereum as the settlement layer, Solana Virtual Machine (SVM) as the execution layer, Celestia as the data availability layer, and RISC Zero as the verification layer. The concept behind this is to leverage the strengths of different technology solutions to build a high-performance second layer.

Here is a more detailed description of each component:

Settlement:

Eclipse leverages the strong security properties of the Ethereum network. This strategic decision ensures that all Eclipse transactions are strictly verified through a dedicated bridge, which not only prevents commits in invalid states but also enforces ultimate liveness and censorship resistance. This approach guarantees that even in the event that the sequencer encounters problems at the L2 level, users still retain the ability to force inclusion of their transactions through the bridge.

implement:

For the execution layer, SVM is employed. Known for its parallel transaction execution capabilities, SVM ensures that transactions with no overlapping states are executed simultaneously, thus optimizing throughput. Although Eclipse essentially runs on SVM, it supports programs designed for the Ethereum Virtual Machine (EVM) through Neon EVM. This flexibility, coupled with the SVMs design to facilitate checkpointing and zero-knowledge proofs, highlights Eclipses commitment to scalability and performance.

Data availability:

Eclipse solves data availability issues by partnering with Celestia. Celestia features its Data Availability Sampling (DAS) light nodes, which initially launch with 2 MB blocks and are expected to increase to 8 MB upon launch. These nodes serve a dual purpose: they verify the availability of block data and contribute to the secure expansion of the entire network. Celestia combines DAS light node support, crypto-economic security mechanisms, and scalable data throughput, making it the best choice for Eclipses data availability needs.

prove:

For proofs, Eclipse uses RISC Zero, a mechanism that creates zero-knowledge fraud proofs without the need for intermediate state serialization. By avoiding the need to reintroduce a Merkle tree in the SVM, Eclipse ensures efficient failure proofing. This system requires commitment to the transaction inputs, the transaction itself, and proof that re-execution will produce a different output. With two main categories of failures, incorrect output and input, RISC Zeros ability to produce ZK proofs of SVM executions becomes extremely valuable, reinforcing Eclipses stance on security and transparency.

our insights

Eclipse appears to offer a transformative solution to the blockchain space, solving the challenges inherent in existing rollups. By integrating the best of the modular stack: settling on Ethereum, executing on the Solana VM, ensuring data availability with Celestia, and leveraging RISC Zero for zero-knowledge fraud proofs, Eclipse challenges the equation of “modular” with “specific The general concept of application provides a new option for the future non-decentralized low-throughput chain world.

By leveraging Solanas execution environment, Eclipse provides unparalleled parallel transaction processing, laying the foundation for efficient scalability. Its emphasis on compatibility, particularly through integration with Neon EVM and MetaMask Snaps, ensures a seamless experience for both developers and end users. Choosing to settle on Ethereum underscores Eclipse’s commitment to top-notch security and liquidity. At the same time, their partnership with Celestia ensures robust data availability.

In short, Eclipse serves as a compelling example of innovation in layer 2 networking, and the markets reaction to this development will be very exciting.

Gryphsis Research Spotlight

Welcome to this week’s Gryphsis Research Spotlight, where we share our team’s latest insights with you. Our dedicated research team continuously explores cutting-edge trends, developments and breakthroughs in the crypto space. This week, we are excited to share with you our research, titled Cosmos Polkadot VS Layer 2 Stacks: Series 2 - Choosing Between Layer 1 or Layer 2, designed to deepen your understanding of the ever-evolving crypto world , and stimulate your curiosity.

The second series of reports provides a comprehensive comparison between CP (Cosmos Polkadot) and Layer 2 Stack technology solutions. While CP’s technology was highlighted as superior to Layer 2 Stack, the focus shifted to the mind-bending world of token economics and ecosystem growth. This in-depth study of the token economics and ecosystem growth of major blockchain solutions highlights the strengths, weaknesses, and future prospects of each platform.

Token Economics:

1. Cosmos:

-The practical application of Cosmos Hub’s $ATOM token is limited because each chain has its native token.

-ATOM 2.0 initiative aims to add more utility to the $ATOM token.

-Cosmos’ token economics encourage staking, which enhances network security but results in low token liquidity.

2. Polkadot:

-Polkadot’s $DOT token has not yet been fully released.

-Polkadot’s governance mechanism is comprehensive, with recent updates to its parachain slot auction mechanism.

3. Optimism:

-The specific use cases of $OP tokens in superchain networks are yet to be defined.

-The governance structure consists of Token House and Citizens House, balancing power and preventing excessive centralization.

4. Arbitrum:

- Specific use cases for $ARB in superchain networks have not yet been released.

-Arbitrum DAO will use $ARB to manage all aspects of the superchain network.

5. Polygon 2.0:

-$POL is an upgrade of $MATIC and is planned to replace it in the future.

-Polygon 2.0 allows each superchain to use its own token for transaction fees, respecting the autonomy of each superchain.

Ecosystem comparison:

Cosmos & Polkadot:

-Polkadot’s market capitalization is approximately three times that of Cosmos.

- Cosmos mainly focuses on financial projects, while Polkadot has various infrastructure-related projects.

-Both CPs have released their 2.0 versions, providing improvements in ecosystem governance and token empowerment.

This section provides a concise preview of our detailed study on Cosmos/Polkadot VS Layer 2 Stacks. We encourage readers to read furtherfull report, for complete understanding and expert analysis of this fascinating topic!

Weekly VC Investment Focus

Welcome to our weekly Investing Spotlight, where we reveal the biggest venture capital developments in the crypto space. Each week, we’ll spotlight the protocols that received the most funding.

Core Scientific

Bitmain, a global leader in cryptocurrency mining technology, has committed a $53.9 million investment in North American blockchain specialist Core Scientific. The move deepens their existing partnership dating back to 2017. The investment consists of a $23.1 million cash transaction and an equity exchange in Core Scientific, with a specific equity value to be determined following a Chapter 11 reorganization plan. By the end of 2023, Core Scientific plans to integrate 27,000 new Bitmain mining units, aiming to significantly increase its self-mining hash rate. The collaboration is seen as a strategic shift for the North American cryptocurrency mining landscape, especially amid the current market uncertainty and regulatory challenges.

Proof of Play

Web3 gaming company Proof of Play has secured $33 million in investment from a16z’s Chris Dixon and Greenoaks. The company was founded by key figures from Epic Games, Zynga, and Activision to develop games powered by blockchain technology. CEO Amitt Mahajan emphasized the twin goals of technological innovation and genuine player enjoyment. These funds will enhance software engineer hiring and game development. Mahajan, a key figure behind Zyngas Farmville, envisions blockchain ensuring the longevity of games, even outlasting their creators. Their first game, Pirate Nation, embodies this vision and marks a step towards long-lasting, decentralized gaming.

https://x.com/ProofOfPlay/status/1704876956762956188?s=20

protocol event

Kwenta staking V2 live

friend.tech browser version

Opensea introdcues Creator Studio

Balancer frontend attacked

Polygon Dragonfruit Upgrade

JonesDAO $JONES buyback program

Dolomite audit completed by Cyfrin Audits

Velodrom Slipstream

Industry updates

Google Cloud adds 11 new blockchains to BigQuery data analytics service

PayPal USD (PYUSD) is now available on Venmo

Coinbase mulled buying FTX Europe post-bankruptcy

New York state regulator's virtual currency chief Peter Marton to depart

CoinShares launches hedge fund division in US expansion

Mt. Gox Delays repayment deadline by a year

FTX sues former employees of Hong Kong affiliate, seeks $ 157 million

CFTC Denies Kalshi’s plan to let users bet on control of U.S. Congress

Twitter Alpha

Theres a lot of alpha in crypto Twitter, but navigating thousands of Twitter threads can be difficult. Each week, we spend hours doing research, curating threads full of insight, and curating your weekly picks list. Let’s dive in!

https://twitter.com/wacy_time1/status/1705274668297379854?s=61&t=R6Lkbq6JN0mLhUpX8jPsRA

https://twitter.com/cyrilxbt/status/1705315428971774248?s=61&t=R6Lkbq6JN0mLhUpX8jPsRA

https://twitter.com/deebs_defi/status/1705321487102550322?s=61&t=R6Lkbq6JN0mLhUpX8jPsRA

https://twitter.com/thedefidog/status/1704160003974971817?s=61&t=R6Lkbq6JN0mLhUpX8jPsRA

next week events

News sources/references:

https://cryptorank.io/news/feed/27ea4-core-scientific-receive-a-53-9m-frombitmain

https://www.investing.com/news/cryptocurrency-news/bitmain-invests-539m-in-core-scientific-to-expand-bitcoin-mining-operations-93CH-3180299

https://finance.yahoo.com/news/web3-gaming-company-proof-play-150000585.html? guccounter= 1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS50dy8&guce_referrer_sig=AQAAAK60OFV3JKd4NNyXRFmh-cu8JJ8IB29fQ8vYbyMjeEiPFwf7hq7ghnK-_VWaykf9VogGaiwvYy99TU79Nfp9X5puBDJ7SNIOSzT-MdpfOrV6bZgxNmdIdbZJW3elZceNx1_3sHQpo2vF_LbbaltPEpMtFSwcCwc-sj 2 OqSHPthMC

https://fortune.com/crypto/2023/09/21/web3-gaming-proof-of-play-33-million-a16z-chris-dixon-greenoaks/

https://www.google.com.tw/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiLh6aBosCBAxWBQ94KHdVjC-A4ChAWegQIEBAB&url=https%3A% 2 F% 2 Fcointelegraph.com% 2 Fnews% 2 Ffarmville-co-creator-led-company-raises-33-million-create-web3-games&usg=AOvVaw0vqj7ddsIIKCTWr3Tr7u8q&opi= 89978449 

https://www.cnbc.com/2023/09/19/sbfs-parents-sued-by-ftx-for-millions-of-dollars-in-misappropriated-funds.html

https://arstechnica.com/tech-policy/2023/09/sbfs-parents-were-given-16-4m-house-paid-for-entirely-by-ftx-lawsuit-says/

https://cointelegraph.com/news/ftx-founder-parents-sued-accused-stole-millions

https://www.bloomberg.com/news/articles/2023-09-19/ftx-sues-sam-bankman-fried-s-parents-to-claw-back-funds#xj4y7vzkg

That’s all for this week. Thank you for reading this weeks newsletter. We hope you benefit from our insights and observations.

Follow us on Twitter and Medium for instant updates. See you next time!

This weekly report is provided for informational purposes only. It should not be relied upon as investment advice. You should conduct your own research and consult independent financial, tax or legal advisors before making any investment decisions. And the past performance of any asset is not indicative of future results.