Trump launches DeFi project with Aave infrastructure and Ethereum blockchain
The World Liberty Financial project, associated with former President Donald Trump, will use Aave’s platform and Ethereum blockchain to create a “credit account system.” Although not a fork of Aave (COIN:AAVEUSD), the project uses its infrastructure, boosting Aave’s token value. With an emphasis on open-source and strong security, the initiative aims to integrate new users into DeFi, aligning with crypto community principles.
Polygon transitions to new POL token with Polygon 2.0 launch
Polygon has initiated the transition from the MATIC token (COIN:MATICUSD) to the new Polygon Ecosystem Token (POL) as part of Polygon 2.0. MATIC tokens on the Polygon PoS Chain will be automatically updated to POL, while those on Ethereum, Polygon zkEVM, and exchanges can be exchanged at any time. POL will serve as the new gas and staking token for Polygon. With a 2% annual issuance rate, POL aims to reward validators and support the Community Treasury.
Sui Blockchain innovates with internet-free crypto transactions
Sui blockchain is developing an innovative technology to enable crypto transactions without an internet connection. Using mobile networks, radio waves, and even underwater communication channels, Sui aims to ensure that payments and data can be transmitted in low-connectivity areas or during outages. Adeniyi Abiodun, co-founder of Mysten Labs, emphasized that this approach could revolutionize financial access and expand digital inclusion, particularly in regions with limited infrastructure.
Bitcoin seeks support at $54,000 as new high lags
Bitcoin (COIN:BTCUSD) hit a low of $55,672.06 in the last 24 hours, with the global crypto market cap falling below $2 trillion as of September 4. Currently priced at $58,364, Bitcoin dropped below the $60,000 psychological mark, and analysts suggest it may find support around $54,000, a key level during previous drops. The current trend, marked by increasingly lower lows, indicates a possible price reversal.
Trader Peter Brandt noted that Bitcoin is taking longer than expected to hit a new all-time high following its last halving. He points out that the 2021 record of $69,000 still stands, even adjusted for inflation. Since the April halving, BTC hasn’t returned to price discovery, frustrating investors. While short-term predictions suggest a possible recovery with U.S. interest rate cuts, Brandt advises patience until 2025.
On a positive note, Howard Lutnick, CEO of Cantor Fitzgerald, shared his view on integrating Bitcoin into traditional finance, highlighting its potential as a key asset. Despite current restrictions preventing banks from transacting or custodying Bitcoin, Lutnick is optimistic about future regulatory changes that will allow full Bitcoin adoption. He also announced a $2 billion Bitcoin financing plan by Cantor Fitzgerald, reflecting a commitment to building a robust crypto ecosystem.
Significant outflows in Bitcoin and Ethereum ETFs on Tuesday
On September 3, Bitcoin ETFs faced a substantial outflow of $287.8 million, the largest since May. Fidelity (AMEX:FBTC) and Grayscale (AMEX:GBTC) funds were the hardest hit, with $162.3 million and $50.4 million in outflows, respectively. ARK (AMEX:ARKB) and Bitwise (AMEX:BITB) ETFs saw withdrawals of $33.6 million and $25 million, while other ETFs experienced moderate outflows. BlackRock (NASDAQ:IBIT), WisdomTree (AMEX:BTCW), and Grayscale Mini Trust (AMEX:BTC) ETFs remained stable. Overall, Bitcoin ETFs lost $767.6 million in five days.
Ethereum ETFs also experienced significant outflows, totaling $47.4 million. Grayscale’s ETF (AMEX:FETH) lost $52.3 million, while Fidelity’s ETF (AMEX:ETHE) slightly offset the impact with a $4.9 million inflow. Cumulative Ethereum ETF outflows reached $524.8 million, according to Farside data.
Ethereum revenue decline accelerates after Dencun upgrade
Ethereum network’s (COIN:ETHUSD) daily revenue has plummeted by 99% since March 2024, dropping from $35 million to around $200,000. This decline is attributed to the growth of layer 2 (L2) networks and the Dencun upgrade, which reduced transaction fees and altered the revenue structure. With activity migrating to L2, Ethereum’s base layer revenue took a severe hit, raising concerns about the main network’s long-term viability.
Cardano faces post-hard fork volatility
Cardano’s (COIN:ADAUSD) price faced volatility in the last 24 hours, with an intraday low of $0.305. This decline follows the Chang hard fork, conducted on September 1, which, contrary to expectations, triggered a wave of selling by large investors. Charles Hoskinson, Cardano’s founder, revealed that an additional update, called “Chang+1,” will be implemented within 90 days. Recent data shows ADA’s Market Value to Realized Value (MVRV) ratio is negative, suggesting the price may be near a bottom, historically between -16% and -27%. If the historical pattern repeats, ADA could be on the verge of a recovery. ADA is currently priced at $0.3242 but could rise to $0.35 if a positive reversal occurs.
Solana price fluctuates with memecoin sales and ETF hopes
Solana’s (COIN:SOLUSD) token price dropped 9% over the past week, hitting an intraday low of $123.00 on September 4 before a slight recovery. The decline was exacerbated by a $1.38 million SOL sale from the Pump.fun fee account, which totals $41.64 million sold at an average price of $157.50. While the memecoin movement pressured the price, a potential ETF listing helped lift the token to $134.00, a 5.2% increase at the time of writing.
Zurich Cantonal Bank offers cryptocurrency trading and custody services
Zurich Cantonal Bank (ZKB), one of Switzerland’s largest banks, has launched Bitcoin (COIN:BTCUSD) and Ether (COIN:ETHUSD) trading and custody services for its clients. The offering is integrated into ZKB’s eBanking and Mobile Banking platforms, allowing 24/7 trading. The bank will also provide secure custody solutions, eliminating the need for personal wallets. The B2B service enables other Swiss banks to offer cryptocurrency trading to their clients, with orders managed by Crypto Finance AG.
Binance hires Grant Thornton for accounting and tax consulting
Binance has hired Grant Thornton’s Singapore division for accounting and tax consulting, as announced on Wednesday. The firm will replace Mazars, which had suspended its work with Binance due to concerns about the public interpretation of proof-of-reserve reports. Grant Thornton will assist Binance with technical accounting, financial reporting, and audit preparation, though it will not act as the exchange’s auditor.
Mark Karpeles closes Mt. Gox chapter and launches new phase with EllipX
Mark Karpeles, former CEO of Mt. Gox, has overcome a decade of legal battles and is now launching a new project, the EllipX exchange. After paying Mt. Gox creditors, Karpeles is launching EllipX, based in Poland, incorporating modern practices learned from Mt. Gox’s failures. The new exchange will use HD wallets and custodians for greater security. Initially focused on the European market, the platform will begin operating solely with crypto assets but plans to expand into banking services in the future. EllipX will comply with the EU’s MiCA regulation and promote transparency with regular audits. Karpeles will offer a 50% fee discount to former Mt. Gox users as a gesture of goodwill. Karpeles also praised Japan’s new regulations, which have improved crypto exchange security.
Japan considers changing crypto taxation to financial assets
Japan’s Financial Services Agency suggests treating cryptocurrencies as financial assets rather than income, potentially reducing the tax burden on holders of large gains. Currently, crypto profits are taxed as income, with rates up to 45%, while stocks have a flat 20% rate. The change could encourage more investment, with the government reviewing its tax treatment after companies left the sector due to high taxes.
South Korea intensifies cryptocurrency exchange inspections
South Korea’s Financial Supervisory Service (FSS) will begin inspecting cryptocurrency exchanges to identify suspicious transactions and illegal activities. The new approach includes severe penalties and potential regulatory adjustments to improve compliance. South Korea implemented the “Virtual Asset User Protection Act” to protect investors from hacks and ensure the separation of customer assets. Exchanges, such as Upbit and Bithumb, must also comply with strict anti-money laundering rules.
John Deaton challenges Elizabeth Warren after winning Republican primary
Pro-crypto attorney John Deaton won the Massachusetts Republican primary, securing a chance to challenge Senator Elizabeth Warren. Deaton, backed by nearly two-thirds of the vote, promises to challenge Warren’s anti-crypto stance. While Warren still holds a significant lead in polls and campaign donations, Deaton’s victory sets up a direct confrontation between the crypto advocate and the progressive leader in the November general election.
Gemini users targeted in new phishing scam
Jameson Lopp, co-founder of CasaHODL, warned of a phishing scam targeting Gemini users. Scammers send a fake data breach notice, claiming that Gemini has partnered with Trust Wallet and requesting fund transfers to a wallet controlled by a seed phrase they provide. Experts warn that phishing scams using mnemonic phrases are common and emphasize the need for increased user awareness and security in cryptocurrency usage.
AI deepfake scams surge in cryptocurrency sector in 2024
In the second quarter of 2024, cryptocurrency scammers intensified their use of AI-based deepfakes, according to Gen Digital, parent company of Norton, Avast, and Avira. The CryptoCore group has been using fake videos of prominent figures like Elon Musk and Vitalik Buterin to deceive investors. These videos are spread across social platforms and hacked accounts, resulting in losses of up to $5 million in cryptocurrencies. The threat continues to grow as fraud techniques become more sophisticated.
Penpie hacker siphons $7 million and continues laundering with Tornado Cash
After siphoning $27 million from the Penpie protocol on September 3, the hacker transferred approximately $7 million to the Tornado Cash cryptocurrency mixer the following day. Cyvers warned of continued laundering of stolen funds, while PeckShield confirmed the hacker is still moving the funds through multiple transactions. In response, Penpie suspended deposits and withdrawals, and Pendle halted its contracts to prevent further losses.
Magic Eden leads NFT market in August with 36.7% share
In August, Magic Eden dominated the NFT market, achieving $122.47 million in trading volume, equivalent to a 36.7% market share. It marked its sixth consecutive month at the top, surpassing Blur and OpenSea. The platform, which supports NFTs on Ethereum, Solana, Polygon, and Bitcoin, benefited from the popularity of Bitcoin Ordinals. In contrast, Blur saw an 83.2% decline in its monthly volume, while OpenSea recorded a partial recovery. August’s total NFT sales volume was $374 million, a 76% drop from the $1.6 billion peak in March 2024, according to CryptoSlam.