Headlines
According to information shared by Eric Balchunas, senior ETF analyst at Bloomberg, there are currently 6 companies applying for Ethereum futures ETFs.
Following Volatility Shares' application for Ethereum futures ETF on July 28, Bitwise, Roundhill, VanEck, Proshares, and Grayscale followed suit on August 1, with Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF, Ethereum Strategy ETF, Proshares Short Ether Strategy ETF, and Grayscale Ethereum Futures ETF (ETHG) respectively.
The next deadline for the SEC to make a decision on Volatility Shares' application is October 11, and for the other five applications, the next deadline is October 16.
Volatility Shares plans to launch an Ethereum Futures ETF and submitted an application to the SEC on July 28. Previously, Grayscale, Bitwise Asset Management, Direxion, and Roundhill Investments also submitted applications for an Ethereum Futures ETF but withdrew them after communication with the SEC. (Blockworks)
Industry News
Insiders: CZ attempted to shut down Binance.US this year but was opposed by Binance.US CEO
Two insiders revealed that CZ attempted to shut down Binance.US earlier this year to protect the overall interests of Binance.
One insider stated that the Binance.US board, with CZ as chairman, held a vote on whether to liquidate the company but failed to gain unanimous approval.
Binance.US CEO Brian Shroder was the only person who opposed this decision as he was concerned that abruptly closing the exchange might force customers to rapidly transfer or liquidate their cryptocurrencies, which could harm the customers. (The Information)
The FTX Creditor Alliance expressed their opinions on the FTX restructuring plan via Twitter. The alliance stated that the Unsecured Creditors Committee's (UCC) opinions were ignored, and the UCC made the following demands: the right to choose who will operate FTX, restart and recover tokens, invest $2.6 billion in short-term government bonds and receive interest on holdings. In addition, the UCC opposes FTX's application to extend the exclusivity period, so creditors can propose their own plans.
Curve Event Updates
Data: Curve founder's main loan position health ratio has recovered to 1.09 or above
According to Debank interface, Curve founder Egorov's main loan position health ratio has recovered to 1.09 or above:
- Aave V2: 1.64;
- Abracadabra: 1.63, 1.89;
- Fraxlend: 1.90;
- Inverse: 1.49, 1.57;
- Silo: 1.93;
- Curve Stablecoin: 1.09, 1.12.
Former CFO of Frog Nation, 0x sifu tweeted that the CRV sold by Curve founder Michael Egorov through OTC today has a six-month lock-up period. It is reported that Michael Egorov has transferred 22.5 million CRV today.
Delphi Digital tweeted that Curve founder Michael Egorov used 59 million CRV as collateral for Frax Finance's 15.8 million FRAX debt. Although this is much smaller than their position on Aave, it brings greater risk to CRV due to the time-weighted variable rate of Fraxlend. When the liquidation threshold is 55%, their position will be liquidated at 0.3767 USDT.
Global Regulatory Trends
FTX has submitted a restructuring plan to resume offshore exchanges and fill the customer gap
The FTX 2.0 Coalition, an alliance of FTX creditors, tweeted that FTX has submitted a restructuring plan. Key information includes: all non-customer claims (such as the U.S. Internal Revenue Service) will be subordinate, FTT claims will have zero value, and offshore exchanges will resume to fill the customer gap.
The U.S. Internal Revenue Service issues new tax guidelines: PoS rewards tokens should be taxed
The U.S. Internal Revenue Service has issued new tax guidelines stating that tokens obtained through PoS should be included in annual income and reported to the U.S. Internal Revenue Service for taxation. This rule also applies to investors who pledge tokens through exchanges. (CoinDesk)
GameStop: Will stop supporting crypto wallets due to "regulatory uncertainty"
Game retailer GameStop announced that it will stop supporting its cryptocurrency wallet due to "regulatory uncertainty." According to the company's website, GameStop will remove its iOS and browser plugin wallets from the market on November 1, which allow users to manage their cryptocurrency and NFT.
This means that GameStop is abandoning its cryptocurrency strategy, which was previously part of Chairman Ryan Cohen's broader efforts to revive the struggling video game retailer through digital services. GameStop did not respond to requests for comment from reporters. The company did not mention NFT or cryptocurrency in its recent conference call with investors.
Coinbase: SEC did not ask Coinbase to delist any assets
A spokesperson for Coinbase stated that the SEC did not ask Coinbase to delist any assets. The SEC acknowledged this in the same article, and the previous report by the Financial Times was inaccurate and omitted important background information about the conversation with the SEC. The views shared in the article may represent the opinions of some employees at that time, but they do not represent broader SEC requirements. (Blockworks)
Voyager may have been hacked after reopening withdrawals, bankruptcy officials are investigating
The lawyer, Darren Azman, of Voyager Digital Holdings, told the bankruptcy judge at a hearing that the company may have been subject to a hacker attack since resuming withdrawals. The incident has been reported to law enforcement, and officials overseeing the company's bankruptcy are investigating it.
According to Azman, customers have encountered various scams. Typically, scammers would set up a fraudulent website claiming that Voyager customers can increase their compensation amount by linking their non-Voyager crypto wallets to a new account. Once the new account is created, the assets in the non-Voyager wallet are emptied. He added that few customers have fallen victim to these scams, but there have been some victims.
In April of this year, Binance. US terminated its acquisition of Voyager. At the time, Voyager management estimated that customers would be able to recover approximately 36% of their assets. However, if the company prevails in the lawsuit against FTX Trading, this percentage would exceed 60%. Court documents show that Voyager only has around $630 million to pay $1.8 billion in account claims.
Top News
zkSync stablecoin USD+ issuer Overnight.fi issued an update. Overnight.fi stated that EraLend and other affected parties have been working around the clock with CEX and security firm Slow Mist to trace and ensure fund safety. They are also seeking assistance from local law enforcement, and EraLend has reported the situation to them. Furthermore, Overnight.fi suggested that, considering the recovery process may take longer or may not be fully restored, EraLend compensates the individuals affected by the hackers by allocating 1/2 of the future zkSync airdrops. As the affected party, Overnight.fi will treat these funds as part of the recovery and distribute them in full to the affected USD+ holders. "We are confident in persuading the zkSync team to ensure the execution of this agreement." Overnight.fi stated that while EraLend has not finalized any outcomes, they intend to reach the aforementioned cooperation. This solution will enable EraLend to resume operations promptly and facilitate collaboration between Overnight.fi and the broader market, ensuring their position as a top zkSync lender.
Justin Sun, the founder of TRON and member of Huobi's Global Advisory Council, tweeted that the actual revenue for the second quarter was $193 million, with expenses amounting to $108 million, resulting in a quarterly profit of $85 million. This represents a significant increase of 183% compared to the $30 million profit in the first quarter, demonstrating the effectiveness of the measures taken to increase revenue and reduce costs. In addition, Justin Sun conservatively forecasts $200 million in revenue and $100 million in expenses for the third quarter, resulting in a quarterly profit of $100 million. (This data does not include investment gains and losses)
Sei reveals token economic model, with 48% allocated to ecosystem reserve fund and 3% for Launchpool
Sei token economic model, with a total supply of 10 billion SEI tokens, 20% will be allocated to private investors, 20% to the team, 9% to the foundation, 48% to the ecosystem reserve fund, and 3% as rewards for Binance Launchpool.
CyberConnect reveals token economic model: 9% for community rewards, 34% for ecosystem development
Web3 social graph protocol CyberConnect reveals token economic model, with a total supply of 100 million CYBER tokens, 9% for community rewards, 34% for ecosystem development, 25.12% allocated to private investors, 15% to the team and advisors, 10.88% to the community treasury, and 3% for CoinList public sale and Binance Launchpool.
Investment and Financing
Web3 startup Naval raises $4 million in seed funding, led by BlockTower
Web3 startup Naval has completed a $4 million seed funding round in July, led by BlockTower.
Naval, led by University of Cincinnati, Kroger, GE, and Matt Schoch, is building a Web3 wallet usability platform that allows organizations to securely use digital assets in the Web3 space, such as NFTs and other use cases. (Bizjournals)
Diversified digital asset fund platform Solv Protocol raises $6 million
Solv Protocol, a one-stop, diversified digital asset fund platform, announced the completion of a $6 million financing. Investment institutions under the Japanese banking giant Nomura Securities, such as Laser Digital, UOB Venture Management, Mirana Ventures, Emirates Consortium, Matrix China, Bing Ventures, Apollo Capital, HashCIB, Geek Cartel, and Bytetrade Labs, have invested in Solv V3. Solv V3 is committed to introducing billion-dollar-level revenue assets to the industry through the fund platform. Solv has raised a total of $14 million in financing and has previously received support from institutions such as Blockchain Capital and Binance Labs.
Since the launch of Solv V3 platform, cumulative assets have generated sales exceeding $150 million and the first low-risk income open product based on GMX has been launched.
Fund under Coatue Management completes $331 million financing, 34% below target
Investment firm Coatue Management's latest fund has completed a $331 million fundraising, 34% below the target. Last year, three general partners of Coatue Management, including Luca Schmid, who led some well-known investments in cryptocurrency and financial technology, left the company (The Information).
Coatue Management is a hedge fund based in New York that focuses on technology companies and led a $300 million Series C financing for OpenSea.
According to the latest equity disclosure data from Nasdaq, as of June 30, 2023, IDG Capital increased its holdings of cryptocurrency mining company Bitdeer (Nasdaq: BTDR) by 91,308 shares, with an investment of approximately $93.1 thousand.
IDG Capital, established in 1993, is a global leading venture capital firm that focuses on investing in technology-driven enterprises.
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