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Daily Crypto, Blockchain & Web3 Update 2023-04-23
CRYPTOCURRENCY
‘Crypto is dead in America’: Tech billionaire Chamath Palihapitiya (2 min read)
Palihapitiya’s comment came in response to the news that cryptocurrency exchange Coinbase is now considering a move offshore.
“Crypto is dead in America. I mean now you have Gensler even blaming the banking crisis on crypto — so the United States authorities have firmly pointed their guns at crypto.”
“In fairness to the regulators, [the crypto sector] did push the boundaries more than any other sector of the startup economy.”
Ordinals Finance has conducted a $1M rug pull: CertiK (2 min read)
Ordinals Finance, a DeFi protocol built on Ethereum for lending and borrowing, has been accused of carrying out a "rug pull" exit scam.
In an April 24 press release seen by Cointelegraph, blockchain security firm CertiK reported that the protocol’s developer pulled 256 million OFI tokens out of its smart contracts using a “safuToken” function. Another 13 million OFI were removed through an “ownerRewithdraw” function, bringing the total number of tokens withdrawn to 269 million, CertiK stated.
Ether price struggles to maintain support as regulatory challenges and network issues weigh (4 min read)
The Ether price has struggled to sustain $1,850 support since April 21, the same level it held before the rally toward $2,100 initiated on April 13. First, the regulatory environment seems to have gotten stricter for centralized exchanges.
United States-based crypto exchange Gemini announced on April 21 the upcoming launch of a derivatives’ platform outside the country. The uncertain regulatory environment forced the company to seek alternative locales, though only clients from selected regions can access the new service.
France mulls fast-tracking registered crypto firms to new EU rules (2 min read)
The French Financial Markets Authority (AMF) published a statement on April 21 approving MiCA and explaining French regulation during the upcoming 18-month transitory period.
A key focus for the AMF will be guiding the switch over to MiCA regulation for French providers of digital asset services (PSANs).
The AMF is considering expedited options for these companies to comply with MiCA regulations quickly.
BLOCKCHAIN
Stablecoins must be programmable to counter CBDCs (5 min read)
When it comes to providing stable value, stablecoins and central bank digital currencies (CBDCs) appear to be two sides of the same proverbial coin. Crypto-stable assets, however, can provide entirely different use cases, and CBDCs simply cannot compete.
The key is programmability—smart contracts that automate and add new features to money. Programmability allows for asset backing and decentralization that are not possible under current CBDC designs. Developers should be taking advantage of the programmable opportunities that stable assets offer rather than trying to compete with CBDCs.
Blockchain for a better society: How to reach beyond financial inclusivity (4 min read)
Blockchain technology offers a traceable and unchangeable infrastructure for philanthropy, but the Bitcoin blockchain's proof-of-work consensus is criticized for its high energy usage.
The Fruits Eco-Blockchain aims to promote an eco-friendly and sustainable economy that is accessible to everyone. To address blockchain's high gas fees and energy usage, they use the proof-of-capacity (PoC) algorithm.
BUSINESS
German regulators launch inquiry into ChatGPT GDPR compliance (2 min read)
German authorities are investigating OpenAI's compliance with GDPR and privacy regulations, posing another challenge for the company in its European operations.
Marit Hansen, commissioner of Schleswig-Holstein, Germany, informed AFP that authorities are verifying whether a data protection impact study has been conducted and if there is adequate control over data protection hazards. The commissioner added that the country was also asking OpenAI for “information on issues that stem from the European General Data Protection Regulation.”
Who on Crypto Twitter chose not to pay for a blue checkmark? (5 min read)
Although many Crypto Twitter influencers have a considerable following, not all of them have obtained the blue checkmark verification, which was removed by the platform on April 20th. As a result, they remain vulnerable to impersonation by scammers.
Most Twitter users are unwilling to pay $8 per month to keep their blue checkmark, which was once a verification symbol, in a discussion dominated by strong supporters of the platform.
Bybit to introduce mandatory KYC requirements starting May 8 (1 min read)
Starting May 8, Know Your Customer (KYC) identity verification will be mandatory for all products and services offered by cryptocurrency exchange Bybit.
According to an April 24 update, Bybit users who have not completed KYC by May 8 can only “close existing open positions or orders, return loans, or withdraw. Any new trading activities will be restricted.” Before the update, non-KYC Bybit users had a daily withdrawal limit of 20,000 Tether and a monthly withdrawal limit of 100,000 USDT.
OpenAI’s CTO says government regulators should be ‘very involved’ in regulating AI (3 min read)
The chief technology officer of OpenAI, Mira Murati, thinks that the government regulators should have a significant role in establishing safety protocols for sophisticated AI models, including ChatGPT.
She disagrees with the idea of pausing development for six months as a means of building safer systems and adds that the industry is far from achieving artificial general intelligence (AGI), which is the ability of an artificial agent to perform any task requiring intelligence.
US Presidential Hopefuls Rally Against a Digital Dollar Ahead of 2024 Elections (8 minute read)
US presidential hopefuls, including Ron DeSantis and Vivek Ramaswamy, have expressed their opposition to a central bank-backed digital US dollar (CBDC). While CBDCs are still a ways off in the US, the issue has become a point of contention among politicians. Critics, such as Wall Street banks and digital-asset companies, argue that a digital dollar could destabilize the banking sector and compromise privacy. Proponents contend that CBDCs could improve payments, maintain the dollar's global dominance, and protect consumer privacy if implemented correctly.