Day: August 30, 2023

OKX Discloses Monthly Proof of Reserves, Holding $10.4 Billion in BTC, ETH, and USDT

by Blockchain News

OKX, a global Web3 technology firm and cryptocurrency exchange, disclosed its 10th consecutive monthly Proof of Reserves (PoR) report today. The report shows that the exchange holds USD$10.4 billion in primary assets, such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).

In an effort to understand public sentiment about PoR and transparency, OKX conducted two Twitter polls. The data reveals that 84% of respondents consider monthly PoR reports to be either ‘somewhat important’ or ‘very important.’ Additionally, 88% of respondents indicate that transparency is a significant factor in choosing a crypto platform.

The August PoR report from OKX encompasses 22 commonly traded digital assets and demonstrates that the exchange has maintained a reserve ratio above 100% for ten consecutive months. The reserve ratios for BTC, ETH, and USDT are currently 102%, 102%, and 103%, respectively. Lennix Lai, OKX Global Chief Commercial Officer, stated, “The 38% increase in assets under management on OKX coincides with our focus on transparency, as indicated by our monthly PoR reports.”

Since the launch of its PoR page in late 2022, the exchange reports that hundreds of thousands of users have engaged with its open-source verification tool. This tool enables users to independently verify the solvency of OKX while maintaining their privacy. To date, the exchange has made over 210,000 addresses public for its PoR program.

OKX plans to continue publishing monthly PoR reports and is developing tools for user verification of its solvency and asset backing.

The firm, which has over 50 million global users, is known for its crypto trading services and publishes its Proof of Reserves on a monthly basis as part of its operational transparency.

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SEBA Hong Kong Gains Preliminary Approval for Crypto-Related Services

by Blockchain News

SEBA Hong Kong, a subsidiary of Swiss-based SEBA Bank AG, has been granted an “Approval-in-Principle” (AIP) by Hong Kong’s Securities and Futures Commission (SFC). This preliminary approval positions SEBA Hong Kong to become one of the first licensed corporations in the city to offer crypto-related investment services.

Regulatory Green Light for Crypto Services

The AIP allows SEBA Hong Kong to proceed with its license application for conducting regulated activities in the city. The scope of the license includes dealing in securities and virtual assets-related products such as OTC derivatives and structured products. Additionally, the firm is authorized to advise on securities and virtual assets and manage discretionary accounts in both traditional and digital assets.

“The AIP marks a significant leap forward in SEBA group’s mission to secure the future of the global crypto economy and, in turn, validates SEBA Hong Kong’s position in the market as a trusted and regulated partner,” said Franz Bergmueller, Group CEO of SEBA Bank.

A Strategic Move in Asia Pacific

The AIP is a crucial step in SEBA Hong Kong’s broader Asia Pacific strategy. The firm aims to offer wealth management, investment, and advisory services with the security and customer experience that accompanies a regulated institution. “This AIP signifies that all our efforts are heading in the right direction,” commented Amy Yu, CEO APAC of SEBA Hong Kong.

Aligning with Global Regulatory Standards

SEBA Bank already holds licenses from Swiss regulatory body FINMA and Abu Dhabi’s Financial Services Regulatory Authority (FSRA). The Hong Kong AIP “significantly extends our global regulatory footprint,” Bergmueller noted.

Market Implications

The move is indicative of Hong Kong’s growing role in the global crypto economy and sets a precedent for regulatory standards in the digital asset space. “We see enormous potential in Hong Kong’s journey to becoming a global crypto market leader,” said Yu.

 SFC’s Comprehensive Virtual Asset Framework

The SFC has been a pioneer among major jurisdictions in establishing a comprehensive regulatory framework for virtual assets, commonly referred to as cryptocurrencies. Under the guiding principle of “same business, same risks, same rules,” the SFC aims to regulate various virtual asset-related activities. These include the operation of virtual asset trading platforms, fund management, and advising or dealing in virtual assets. The regulatory body’s approach aims to balance investor protection, market integrity, and risk management for financial institutions.

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Japan’s FSA Unveils Financial Policy Focus for 2023:

by Blockchain News

Japan’s Financial Services Agency (FSA) released its financial administrative policy for the fiscal year 2023 on August 29, outlining key areas of focus. The policy aims to ensure that Japan’s economic activities and public life remain stable amidst changing socio-economic conditions and are geared towards future growth. 

The agency is also committed to creating a financial system that balances economic growth with the resolution of various social challenges, including climate change and digital transformation. To achieve this, the FSA will implement in-depth monitoring to ensure that financial institutions maintain their integrity while adhering to laws and regulations and focusing on customer-centric operations. 

Additionally, the FSA plans to continually evolve its financial administration by enhancing data utilization, strengthening policy communication both domestically and internationally, and improving the skills and qualities of its staff. The agency emphasizes the importance of “in-depth monitoring” to ensure that financial institutions not only comply with laws and regulations but also operate in a manner that is customer-centric. 

One of the standout points in the policy is the FSA’s commitment to addressing issues related to climate change and the advancement of digitalization. The FSA’s financial administrative policy for 2023 reflects a balanced approach to economic growth and social challenges, aiming to stabilize Japan’s economic activities and public life, build a problem-solving financial system, ensure the stability and trust of the financial system, and continually evolve financial administration.

The official announcement was made on the FSA’s website on August 29, 2023. This article is based on the official announcement by the Financial Services Agency (FSA) and aims to provide an unbiased, third-party perspective.

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Binance Completes BNB Smart Chain Upgrade and Hard Fork: What You Need to Know

by Blockchain News

Key Points

* Binance successfully completes BNB Smart Chain (BEP20) network upgrade and hard fork.

* Deposits and withdrawals were temporarily suspended from approximately 07:15 am UTC and have now resumed.

* The announcement was made on August 30, 2023, at 11:14 AM, and garnered significant attention on social media.

Binance, a global leader in digital asset exchanges, announced today the successful completion of a critical upgrade and hard fork for its BNB Smart Chain (BEP20). The upgrade, which temporarily halted deposits and withdrawals, has now been successfully implemented, and all services have resumed as of 11:14 AM on August 30, 2023.

The Upgrade: A Focused Look

The upgrade was initially announced on August 28, 2023, and was scheduled for today. Deposits and withdrawals on the BEP20 network were suspended from approximately 07:15 am UTC. A reminder was issued an hour before the upgrade commenced, stating that all deposits and withdrawals would be temporarily suspended until the network was deemed stable. Finally, Binance confirmed the completion of the upgrade, stating, “Binance has completed the BNB Smart Chain (BEP20) network upgrade and hard fork, with deposits and withdrawals back online.”

User Impact and Market Response

While Binance thanked its users for their patience, it also apologized for any inconvenience caused during the upgrade. The temporary suspension of deposits and withdrawals was a necessary step to ensure the successful implementation of the network changes. 

Broader Context: BNB Chain’s Future Plans

In a recent interview, Binance revealed ambitious plans for its BNB Smart Chain, aiming to lay the groundwork for the next 1 billion Web3 users. The chain is focusing on performance and scalability improvements, including the implementation of layer 2 solutions like opBNB, which can handle around 4K TPS and offers a 90% reduction in gas fees at $0.005.

Conclusion

The completion of the BNB Smart Chain upgrade and hard fork marks a pivotal moment for both Binance and its community of users. Although the immediate market ramifications remain unclear, the reinstatement of deposit and withdrawal functions signals a return to normalcy for the platform’s operations. 

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Shibarium Wallets Surge 200% to 306K in One Day: Limited Impact on Shiba Inu ($SHIB) Price

by Blockchain News

Shiba Inu’s Layer 2 network, Shibarium, has witnessed an explosive growth in wallet addresses, reaching 306,205 as the time of writing. This marks a staggering 200% increase from just over 100,000 wallet addresses reported yesterday. The network has also processed 524,559 transactions and mined 368,891 blocks, according to the latest data from Shibariumscan.

A Meteoric Rise Following Operational Mainnet

Just yesterday, Shibarium reported crossing the 100,000 wallet address milestone, along with completing over 445,000 transactions. This data was confirmed by Shibariumscan, the network’s block explorer. The surge in activity comes on the heels of an announcement by Shiba Inu’s lead developer, Shytoshi Kusama, who stated that Shibarium’s mainnet and cross-chain bridges became fully operational as of August 28, 2023.

Overcoming Initial Hurdles

Shibarium, a fork of Polygon, initially encountered technical difficulties due to an unexpected spike in user activity. The network’s fail-safe mode was activated to safeguard users’ funds. Within the first 30 minutes of its launch, nearly half of the platform’s monthly allocation of 400 million compute units was consumed. However, partnerships with entities like Alchemy led to a 1500% scaling of operations, ensuring the network’s ability to accommodate its rapidly expanding user base.

Functionality and User Experience

As per Shytoshi Kusama’s statement on August 28, the Shibarium mainnet and its cross-chain bridges are now fully functional. Users can execute withdrawals of various assets, including ETH, Shib, Leash, and WEth, within a time frame of 45 minutes to 3 hours. Withdrawals involving the network’s native token, Bone, may take up to 7 days.

The Layer 2 Advantage

The Layer 2 network aims to mitigate the congestion and high transaction fees associated with the Ethereum mainnet. Layer 2 solutions are increasingly popular in the crypto space, offering scalability and lower transaction costs, which are beneficial for decentralized finance (DeFi) applications and non-fungible tokens (NFTs).

Implications for the Shiba Inu Ecosystem

Shibarium’s rapid adoption could potentially attract more developers to its platform, thereby enhancing its utility and value proposition. The Shiba Inu ecosystem, initially known for its meme cryptocurrency status, is evolving to include faster and more cost-effective transaction options through Shibarium.

The Limited Impact on Shiba Inu ($SHIB) Price Despite Shibarium’s Growth

Despite the positive news of a surge in Shibarium’s wallet addresses, the price of Shiba Inu ($SHIB) has only increased by 2.5% over the last 24 hours. This modest gain lags behind Bitcoin, which saw a 6% uptick in the same period, driven by news of Grayscale’s legal victory over the Securities and Exchange Commission (SEC).

Conclusion

The exponential growth in Shibarium’s wallet addresses and transactions signifies a robust user engagement and adds another layer of utility to the Shiba Inu ecosystem. As Layer 2 solutions continue to gain traction, Shibarium’s recent milestones could serve as a bellwether for the broader adoption of scalable blockchain networks.

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CoinDesk Under Fire for Retracting Articles on Justin Sun and Chainalysis

by Blockchain News

Leading cryptocurrency news source CoinDesk has lately come under criticism for removing stories that criticised specific players in the industry. The retractions have called into doubt the platform’s commitment to balanced reporting and editorial integrity.

L0la L33tz, a Twitter user, disclosed that CoinDesk had withdrawn an opinion piece she had published regarding Chainalysis on August 28, 2023. The centrepiece of the report was a witness statement made by Chainalysis‘ head of investigations, Elizabeth Bisbee, “in which she admitted to having no scientific evidence of the software’s accuracy.” Along with failing to notify L0la L33tz of the retraction, CoinDesk allegedly failed to disclose that its parent firm, DCG, had a “substantial investment in Chainalysis Inc.” “Today I discovered that @CoinDesk removed my opinion piece on @chainalysis… CoinDesk did not notify me of the retraction or reveal the sizeable interest its parent firm, DCG, has in Chainalysis Inc.

On August 27, 2023, a different Twitter user named Cryptadamist brought attention to the fact that CoinDesk has also since removed a Justin Sun-critical piece because it did not adhere to their “standards.” Coindesk recently withdrew an article that was critical of Justin Sun because it didn’t adhere to their “standards,” contrary to what they claim they almost never do.

These occurrences have sparked a discussion regarding the function of the media in the bitcoin sector. The retractions, according to critics, undermine CoinDesk’s reputation and imply a lack of openness. Speculation regarding the impact of outside influences, such as investments or partnerships, on CoinDesk’s editorial choices is further fueled by the company’s failure to provide a public retraction statement or explanation.

The incident highlights the more general problem of journalistic ethics in the high-stakes, quick-paced world of cryptocurrency reporting. The need for objective, truthful reporting is more urgent as the sector expands. For investors, regulators, and the general public, media sources are a crucial source of information. Any apparent bias or lack of transparency may have significant effects, not just on the media outlet’s reputation but also on the amount of public confidence in bitcoin journalism as a whole.

Due to CoinDesk’s recent activities, some have begun to wonder whether the platform can be relied upon to “act in favour of the people, putting factual reporting over shareholder incentives,” as L0la L33tz noted. The retractions highlight the need of preserving editorial independence and openness for other media entities covering the cryptocurrency field.

As of right now, CoinDesk hasn’t made any public remarks addressing the retractions or the bias claims. The instances serve as a reminder that media outlet integrity continues to be a subject of continuing worry and scrutiny in the quickly changing crypto scene.

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Ethereum Introduces EELS: A New Execution Layer Specification

by Blockchain News

Key Takeaways

* Ethereum unveils EELS, a Python-based reference implementation for its execution client.

* EELS aims to be a more programmer-friendly successor to the Yellow Paper.

* The project has been in development for over a year and is backed by ConsenSys’ Quilt team and the Ethereum Foundation.

Introduction

Ethereum has publicly introduced the Ethereum Execution Layer Specification (EELS), a Python reference implementation designed to make the core components of an Ethereum execution client more readable and clear. Developed over more than a year, EELS is intended to be a “spiritual successor to the Yellow Paper” and is focused on “readability and clarity.”

Background and Context

The EELS project comes on the heels of significant upgrades to the Ethereum network, notably the Shapella upgrade. Shapella, which went live on April 12, 2023, followed “The Merge” and enabled validators to withdraw their stake from the Beacon Chain back to the execution layer. It also introduced new functionalities to both the execution and consensus layers. The Shapella upgrade was first tested on the Sepolia testnet and was a collaborative effort that combined changes to the execution layer (Shanghai), consensus layer (Capella), and the Engine API.

What is EELS?

EELS is an “execution layer reference implementation in Python” that is “up to date with mainnet.” It can “fill and execute state tests” and “follow mainnet.” The project aims to provide complete snapshots of the protocol at each fork, making it easier to follow than EIPs (Ethereum Improvement Proposals) and production clients, which often mix multiple forks in the same code path.

Technical Features

EELS is “just regular Python” and can be tested like any other Python library. It supports the entire “ethereum/tests” suite and also includes a selection of “pytest” tests. The project does not implement peer-to-peer networking and requires a production client to sync blocks.

Future Prospects

While EELS is still “a bit rough around the edges,” it aims to become the “default way to specify Core EIPs” and the “first place EIP authors go to prototype their proposals.” Those interested in contributing can join the “#specifications” channel or pick an issue from the project’s repository.

Conclusion

The introduction of EELS marks a significant step in Ethereum’s ongoing efforts to make its execution layer more accessible and understandable. By providing a Python-based, readable, and testable reference implementation, EELS aims to serve as a valuable resource for both developers and researchers in the Ethereum ecosystem.

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Binance to Delist Multiple Trading Pairs Including ANKR, IOTA, LRC, Effective September 1, 2023

by Blockchain News

Reflecting the dynamic nature of the crypto industry, Binance, a global frontrunner in cryptocurrency exchanges, has declared the discontinuation of multiple spot trading pairs. The adjustments are scheduled to be implemented on September 1, 2023, as confirmed by an official statement from the Binance Team, released on August 30, 2023, at 16:15 UTC.

Details of the Removal

The trading pairs to be removed are as follows:

At 03:00 (UTC) on September 1, 2023: ANKR/BNB, CVC/BUSD, EPX/BUSD, HIVE/BUSD, IOTA/BNB

At 04:00 (UTC) on September 1, 2023: KLAY/BUSD, LRC/BNB, MBL/BUSD, MTL/ETH, UMA/BUSD

The announcement also stated, “Users can still trade the above assets on other trading pairs that are available on Binance.”

Impact on Spot Trading Bots

For traders who utilize Binance’s Spot Trading Bots services, it’s crucial to note that these services will also be terminated for the aforementioned trading pairs. The termination will occur at the same times as the delisting of the pairs: 03:00 (UTC) and 04:00 (UTC) on September 1, 2023. Binance “strongly advised” users to update and/or cancel their Spot Trading Bots “prior to the cessation of Spot Trading Bots services to avoid any potential losses.”

Implications and Considerations

While the announcement did not specify the reasons for the removal, such actions are generally taken due to low trading volume or other market factors that make the pairs less viable for the exchange. Traders and investors should be aware that the removal of these pairs could impact liquidity and trading strategies, particularly for those who rely on automated trading systems.

Regional Restrictions

The announcement included a disclaimer stating that “Products and services referred to here may not be available in your region,” highlighting the importance of regional regulations and availability in the cryptocurrency market.

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Bitcoin Miner Canaan Reports $73.9M Revenue in Q2

by Blockchain News

Canaan Inc. (NASDAQ: CAN), a leading provider of high-performance computing solutions, unveiled its unaudited financial metrics for the second quarter of 2023 on August 29. In the face of market headwinds, the company saw a notable 44.2% sequential growth in total computing power sold, hitting 6.1 million Thash/s. Yet, the organization is contending with regulatory shifts in Kazakhstan and an ongoing legal battle in the United States, factors that may affect its future operations.

Financial Overview

For the second quarter of 2023, Canaan reported revenues of $73.9 million, a rise from the first quarter’s $55.2 million but a decline from $245.9 million in the corresponding quarter of 2022. Mining-related revenue experienced a substantial surge, climbing to $15.9 million, up 43.3% from $11.1 million in the previous quarter. Despite these revenue increases, the company logged a net loss of $110.7 million, largely due to non-cash charges such as inventory write-downs, which amounted to $54.7 million.

Regulatory Challenges

In July 2023, Kazakhstan introduced new licensing rules for digital mining activities. Canaan has temporarily shut down approximately 2.0 Exahash/s of its mining computing power in the country and is in the process of obtaining a specialized license. The company expects this suspension to continue into Q3 2023, affecting its bitcoin generation capabilities.

U.S. Legal Dispute

Canaan U.S. Inc., a subsidiary, is embroiled in a legal dispute with a U.S.-based partner over a breach of their Joint Mining Agreement. The disagreement involves issues ranging from installation failures to unreturned deposits and profits. With mediation proving unsuccessful, Canaan U.S. plans to proceed to arbitration.

Business Outlook

For Q3 2023, Canaan expects total revenues to be around $30 million, citing challenging market conditions. As of June 30, 2023, the company held cryptocurrency assets primarily comprising 1,125 bitcoins with a total carrying value of $28.8 million.

Analyst Take

Canaan’s Q2 results show resilience in a volatile market, but the firm is not without its challenges. Regulatory changes and legal disputes could hamper its growth trajectory. Investors should keep an eye on how the company navigates these hurdles, especially as it holds a conference call to discuss these financial results today at 8:00 A.M. U.S. Eastern Time.

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Native USDC Integration on Base Blockchain

by Blockchain News

Circle has announced the upcoming launch of native USDC on the Base blockchain. The announcement, part of Circle’s #StableSeptember series, outlines the benefits and implications of this integration for both developers and users.

Key Takeaways

– Native USDC will be the “official form” of USDC for the Base ecosystem.

– The token aims to replace the currently circulating bridged USDbC liquidity originating from Ethereum.

– Native USDC will be “fully reserved and always redeemable 1:1 for US dollars,” according to Circle’s official blog.

– The launch will facilitate institutional on/off-ramps.

The Official Form of USDC

According to the official blog post from Circle, native USDC issued by Circle will be considered the “official form” of USDC within the Base ecosystem. The token address for this native USDC is 0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913. This move is expected to gradually shift liquidity from the bridged USDbC token, which has its roots in Ethereum and holds the token address 0xd9aAEc86B65D86f6A7B5B1b0c42FFA531710b6CA.

Liquidity and Transition

The blog post also mentions that over time, native USDC liquidity “may replace” the currently circulating bridged USDbC liquidity. Base will collaborate with ecosystem apps to offer a smooth, optional transition from USDbC to native USDC. Importantly, there will be “no immediate changes to Base Bridge,” which will continue to operate as usual.

Institutional On/Off-Ramps

One of the key benefits cited is the enablement of institutional on/off-ramps. While the blog does not delve into specifics, the 1:1 redeemability for US dollars suggests a level of stability and trust that could attract institutional investors.

Upcoming Launch Details

Details about the launch, including the ecosystem apps that will support the swap from USDbC to native USDC, will be shared by @BuildOnBase on the launch day. A tweet from Coinbase confirmed that both native and bridged USDC will “continue to coexist on Base.”

Summary of Coinbase’s Base Network

Base, incubated within Coinbase, is an Ethereum Layer 2 (L2) network designed to offer a secure, cost-effective, and developer-friendly environment for building on-chain applications. Launched on February 23, 2023, in testnet phase, Base is developed in collaboration with Optimism and is built on the open-source OP Stack. It aims to provide enhanced scalability, faster transaction speeds, and reduced gas fees, all while maintaining the security measures of Ethereum’s mainnet. Base also offers seamless integration with Coinbase’s ecosystem, giving developers access to 110 million verified users and over $80 billion in assets. Despite rumors, Coinbase has clarified that they do not currently plan to issue a new network token for Base; ETH will serve as the native gas token.

Implications and Future Outlook

The integration of native USDC into the Base ecosystem could have far-reaching implications. It not only offers a more stable and official stablecoin option but also potentially streamlines transactions and lowers costs. As #StableSeptember unfolds, more details are expected to emerge, shedding light on how this move will shape the Base ecosystem and beyond.

In summary, the upcoming native USDC launch on Base is a noteworthy development in the stablecoin arena, offering benefits like enhanced liquidity and institutional access. As the launch date approaches, all eyes will be on how this integration impacts the Base ecosystem and the stablecoin market at large.

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Bitcoin (BTC) $ 39,734.65 2.50%
Ethereum (ETH) $ 2,162.27 2.92%
Litecoin (LTC) $ 71.81 0.28%
Bitcoin Cash (BCH) $ 227.72 1.01%