June 2023

Litecoin has been an investor favorite since 2023 began after the digital asset went through multiple rallies that saw it bring double-digit gains for investors. But despite how much the cryptocurrency has already grown, the bull case for the asset continues. This time around, a crypto analyst has come out to paint a very bullish […]

Two blockchain networks had previously announced integration with the Fed’s instant payment service, but they were not found on a new list of certified providers.

The Federal Reserve’s upcoming instant payment system, FedNow, released its list of certified “early adopters” on June 29. The organizations on the list have been certified as ready to connect with the platform when it launches in late July. No blockchain networks are on the list, despite at least two having previously announced that they would connect to the instant payment system.

The FedNow service stated that some organizations not on the list may be integrated later, and Metal Blockchain said it still intends to connect with the platform once it gains “the appropriate bank sponsor.”

FedNow is an instant payment service in development by the United States Federal Reserve. The Federal Reserve claims that the service will allow for instant transfers between banks in the U.S., similar to the United Kingdom’s Faster Payments and Europe’s Single Euro Payments Area systems.

Currently, bank transfers within the U.S. can only be done through ACH or wire transfers, which are not settled instantly. FedNow is scheduled to launch in July.

At least two blockchain networks have announced that they will be “connecting” to FedNow when it launches. One is Metallicus’ Metal Blockchain. The Metallicus team stated in May that its network will allow instant conversion of cash to stablecoins through a connection with FedNow. At the time, FedNow’s official website also listed Metallicus in its “service provider showcase,” providing further evidence that the integration was going to occur.

This listing was removed within a few days of the announcement being made. On May 15, Twitter user JeffXRP remarked on the strangeness of its sudden removal.

The list of “service providers” released on June 29 includes ACI Worldwide, ECS Fin, FPS Gold, Open Payment Network and 11 other payment providers, but neither Metallicus nor Metal Blockchain are on it.

In a conversation with Cointelegraph, Metallicus co-founder and CEO Marshall Hayner claimed that the company still intends to integrate Metal Blockchain with FedNow once it obtains the proper bank sponsorship, stating:

“Metallicus is currently in communication with the Federal Reserve and the FedNow program administrators while we seek the appropriate bank sponsor and stay focused on building our bank chain technology.”

The other blockchain network that had announced integration with FedNow was Tassat, creator of the TassatPay service and Digital Interbank Network. Tassat claims its network is a business-to-business private blockchain for commercial banks. In March, it announced that it will connect its digital B2B payment platform to the upcoming FedNow service.

Tassat was listed on the FedNow website’s “service provider showcase” as of June 30.

However, Tassat is not listed as a certified service provider in the June 30 list of “early adopters.” Cointelegraph reached out to the Tassat team through email but did not receive a response by the time of publication.

In the Federal Reserve’s announcement, it explained that some organizations not on the list may become service providers in the future:

“In addition to the initial adopters, the Federal Reserve continues to work with and onboard financial institutions and service providers planning to join later in 2023 and beyond, as the initial step to growing a robust network aimed at reaching all 10,000 U.S. financial institutions.”

FedNow has been criticized by some blockchain users for allegedly being a step toward a central bank digital currency (CBDC). U.S. presidential candidate Robert F. Kennedy Jr. has claimed that it will lead to “financial slavery.” In April, the Federal Reserve issued a statement denying that FedNow is related to a CBDC.

Several asset managers have resubmitted applications for their spot Bitcoin ETFs following this morning’s reports that those applications did not meet the U.S. Securities and Exchange Commission’s (SEC) standards over language surrounding surveillance-sharing agreements. The Wall Street Journal reported on June 30, 2023, that spot Bitcoin ETF applications submitted by Fidelity, WisdomTree, VanEck, Invesco, and […]

The post Fidelity, VanEck, and more refile spot Bitcoin ETF applications after reports of SEC rejections appeared first on CryptoSlate.

The Bank of Italy (Banca d’Italia), called for thorough stablecoin regulations in a report published on June 28. Bank questions the reliability of stablecoins The central bank described cryptocurrency regulation in general but emphasized a need to regulate stablecoins, which it alleges “have not proved stable at all.” The bank said that algorithmic stablecoins have […]

The post Italian central bank calls for stablecoin regulations in new report appeared first on CryptoSlate.

The special purpose acquisition company deal, first reported in August 2022, cost $885 million and is expected to allow investors exposure to Bitcoin Depot’s common stock.

Bitcoin Depot, one of the largest cryptocurrency ATM firms in the United States, has announced the closing of a merger deal allowing the company to go public.

In a June 30 announcement, fintech firm GSR II Meteora Acquisition Corporation said its stockholders had approved the merger for the firm to act as a special purpose acquisition company for Bitcoin Depot. The deal, first reported in August 2022, cost $885 million and is expected to allow investors exposure to Bitcoin Depot on the Nasdaq starting July 3.

$GSRM & Bitcoin Depot deal closing PR. Will trade as $BTM on Monday, July 3.https://t.co/tlimnZdQqF

— SPAC Track (@SPACtrack) June 30, 2023

According to Bitcoin Depot founder and CEO Brandon Mintz, the merger deal was aimed at supporting “numerous growth opportunities” and promoting the adoption of Bitcoin (BTC) in North America. Investors will be able to find shares of Bitcoin Depot under the ticker symbols BTM and BTMWW for its common stock and public warrants, respectively.

Related: Net Bitcoin ATMs record an increase after 4 months of global downtrend

The announcement came amid regulatory scrutiny of firms in the U.S. offering crypto products or services. The Securities and Exchange Commission filed lawsuits against exchanges Binance and Coinbase for alleged unregistered securities offerings. However, investment vehicles with exposure to crypto also seem to be on the rise following BlackRock filing an application in June to list a spot Bitcoin exchange-traded fund.

Founded in 2016, Bitcoin Depot is one of the biggest crypto ATM firms in North America, with more than 9,130 locations, according to its website. In May, fellow ATM provider Bitcoin of America announced it would shutter operations in Connecticut following the state’s Department of Banking saying the firm didn’t have the proper licensing.

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

The Ethereum ecosystem had a positive run in the second quarter of 2023. From the Shapella upgrade in April to May’s memecoin frenzy, there was a lot of buzz surrounding the most prominent smart contract blockchain. This was reflected in the network’s on-chain activity and gas fees. According to the quarterly report by blockchain analytics […]

This week’s Crypto Biz examines the story behind Binance’s debanking in Australia, Bitcoin miners preparing for the next halving and Bitfinex’s expansion in Latin America.

June was a tough month for Binance, as it faced stress tests worldwide after the United States Securities and Exchange Commission (SEC) filed a lawsuit against the crypto exchange and its leadership.

In a nutshell, over the past 30 days, the Belgian financial regulator ordered Binance to cease all crypto services, the exchange failed to obtain a license in the Netherlands, Binance’s Brazil head has been subpoenaed to appear before Congress concerning a Ponzi scheme investigation, and just a few days ago, another ongoing investigation in France became public.

And there’s more: Binance’s United Kingdom-based subsidiary canceled its registration with the Financial Conduct Authority, and in the U.S., the exchange still has a long road ahead in its struggle with regulators. Moreover, the exchange was denied a crypto custody license in Germany and lost its euro banking partner.

Yet, despite all these developments, Binance remains untouched as the top dog among centralized exchanges, with $58.11 billion in total value locked, down from $63.8 billion on June 1, according to data from DefiLlama. The exchange’s next big focus is in the United Arab Emirates, an allegedly “prime destination” for crypto businesses seeking a clear path forward.

“We keep building,” Binance CEO Changpeng Zhao said in a tweet on June 28, following a long and hectic month.

This week’s Crypto Biz looks at the story behind Binance’s debanking in Australia, Bitcoin (BTC) miners preparing for the next halving, MicroStrategy’s latest Bitcoin purchase and Bitfinex’s expansion in Latin America.

Binance Australia got 12 hours’ notice before it was debanked, exec says

There was no prior warning, consultation or redress. In the middle of the night, Binance Australia’s team was suddenly told it would be “cut off” from the country’s banking system. Binance regional manager Ben Rose shared details of the exchange’s debanking in the country at the Australian Blockchain Week on June 26. In May, the company announced that its dollar services were suspended after its payments provider Zepto was told to discontinue support for Binance. According to Rose, the move impacted around 1 million Australian-based customers, with Binance now seeking an alternative payment provider.

Riot Platforms to add 33,000 Bitcoin miners ahead of 2024 halving

Bitcoin miner firm Riot Platforms is loading up for the next halving cycle by purchasing 33,280 “next-generation” rigs for its Texas facility, costing $162.9 million. The miners, which were sourced from MicroBT, will boost the firm’s self-mining capacity by 7.6 exahashes per second (EH/s) to 20.1 EH/s once the machines are installed in the first quarter of 2024. Among the machines, 8,320 are M56S+ models with a hash rate of 220 terahashes per second (TH/s), while the remaining 24,960 M56S++ are slightly more powerful at 230 TH/s.

MicroStrategy buys $347 million worth of Bitcoin amid market thaw

MicroStrategy announced the purchase of 12,333 Bitcoin on June 28, worth $347 million at publication. MicroStrategy now owns 152,333 BTC worth $4.52 billion, with an average purchase price of $29.668 per coin. The coins were bought between April 27 and June 27, with the purchase partly financed by the issuance of new stock. MicroStrategy has been actively purchasing Bitcoin using cash and stock financing during the crypto bear market, sometimes irrespective of price. In Q1 2023, the firm reported its first profitable quarter since 2020 due to a one-time income tax benefit. 

MicroStrategy has acquired an additional 12,333 BTC for ~$347.0 million at an average price of $28,136 per #bitcoin. As of 6/27/23 @MicroStrategy hodls 152,333 $BTC acquired for ~$4.52 billion at an average price of $29,668 per bitcoin. $MSTR https://t.co/joHo1gEnR0

— Michael Saylor⚡️ (@saylor) June 28, 2023

Bitfinex launches P2P trading platform in Venezuela, Argentina and Colombia

Digital asset exchange Bitfinex is expanding its operations to Latin America. The crypto company has launched a peer-to-peer trading platform in Venezuela, Argentina and Colombia, allowing users in the South American nations to buy and sell Bitcoin, Ether (ETH), Tether (USDT), Tether’s euro-pegged stablecoin, Tether EURt (EURT), and Tether Gold (XAUT). In April, Bitfinex’s El Salvador arm received a digital asset service provider license from the National Digital Asset Commission. Last month, the exchange partnered with Chile-based crypto platform OrionX to support local education and financial literacy programs.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Litecoin has seen a remarkable rise in its value in the recent trading day. The digital currency spiked to $105, a noteworthy increase of 24.6% within the last 24 hours. At this juncture, the sharp increase in Litecoin’s valuation does not appear to be linked to any particular event or news release. Litecoin was officially […]

The post Litecoin spikes 25%: What’s behind the sudden surge? appeared first on CryptoSlate.

Approximately $215 million of stolen assets have since been recovered.

According to a June 30 report by Web3 security firm Beosin, the total value of cryptocurrencies lost in scams, hacks and rug pulls amounted to $656 million during the first half of 2023. This includes the loss of $471.43 million in 108 protocol attacks, $108 million in various phishing scams and $75.87 million over 110 rug pulls. For hacks, the amount represented a significant decrease over H1 2022 and H2 2022, where $1.91 billion and $1.69 billion were lost, respectively. In addition, Beosin analysts wrote:

“Approximately $215 million of stolen assets were recovered, accounting for 45.5% of all stolen assets. In contrast, in 2022, only 8% were recovered. $113 million of stolen assets were transferred to mixers: $45.38M into Tornado Cash and $68.14M into other mixers."

In a dashboard compiled by Beosin and Footprint Analytics, only one project was hacked for more than $100 million, that being Euler Finance’s $195 million flash loan hack on March 13. The firm opened redemptions on April 12 after hackers returned most of the stolen assets. 

The vast majority of crypto lost in H1 2023 were coins and tokens minted on the Ethereum blockchain, at 75.6%. Meanwhile, the second largest stolen asset class, Binance Smart Chain tokens, came at just 2.6%.

Furthermore, most of the stolen crypto was lost due to smart contract vulnerabilities (56%), while 21.4% had no clear identifiable reasons for the loss. Nevertheless, the numbers represent a significant decrease over H2 2021, when a record $2.1 billion in crypto was lost due to hacks, phishing scams and rug pulls.

H1 2023 Web3 Security Statistics

Total losses from hacks, phishing scams, and rug pulls in Web3 reached $655.61 million in the first half of 2023.

Among them,
108 attacks -> $471.43M
Phishing scams -> $108M
110 rug pulls -> $75.87M pic.twitter.com/8Q9kmDETfQ

— Beosin Alert (@BeosinAlert) June 30, 2023

Magazine: Should crypto projects ever negotiate with hackers? Probably

The top 100 DeFi tokens didn’t see much change in price over the past week, with the majority posting minor weekly gains.

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.

The second quarter of 2023 saw over $208 million exploited and hacked from DeFi protocols, and with just $4.5 million of funds recovered, total losses to exploits were over $204 million.

The DeFi ecosystem is an ever-growing industry with billions of dollars in daily trading volume. Still, it remains niche to a small population in the crypto industry and out of reach for some. For a thorough overview of DeFi, check out the new report from Cointelegraph Research titled: “Investing in DeFi: A Comprehensive Guide.”

The DeFi lending protocol Maple Finance has decided to offer direct loans to some borrowers instead of relying solely on pool delegates to provide capital to fill the void left by bankrupt major lending protocols like BlockFi.

The popularity of Bitcoin’s BRC-20 token standard has led many leading wallet service providers to add support for the new token standard, and Optimism network transactions surged 67% following the Bedrock upgrade.

The top 100 DeFi tokens continued their bullish momentum into the last week of June, with most tokens trading in green.

Over $204 million was lost in Q2 DeFi hacks and scams: Report

Over $204 million was lost in DeFi hacks and scams in the second quarter of 2023, according to a June 27 report from Web3 portfolio app De.Fi.

The report, titled “Q2 De.Fi Rekt Report,” was partially based on data from De.Fi’s Rekt Database. Over $208.5 million was exploited during the quarter, but $4.5 million was recovered through prosecutions, deals with hackers and other recovery methods. According to the report, the number of DeFi hacks in Q2 rose by “almost 7 times” year-over-year, with 117 incidents compared with only 17 in the same quarter of 2022. In total, over $665 million was lost during the first half of 2023.

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Maple Finance announces direct lending to fill the void left by BlockFi, Celsius

Web3 lending platform Maple Finance has announced the launch of a direct lending program, according to a June 28 fact sheet from the platform’s development team. The program is intended to replace services previously provided by Celsius, BlockFi and other now-bankrupt lenders.

In the past, Maple relied on credit professionals, called “pool delegates,” to provide capital for these loans. For example, Celsius used Maple to create a Wrapped Ether (WETH) lending pool in February 2022.

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Optimism network transactions surged 67% following Bedrock upgrade — Nansen

Transactions on the Optimism network surged 67% following its June 7 “Bedrock” upgrade, according to a June 26 Twitter thread from blockchain analytics firm Nansen. The network had seen less than 300,000 transactions per day before the upgrade, but this figure increased to over 550,000 by the middle of June.

Optimism saw a sharp increase in transactions immediately following the hard fork, rising to over 400,000 from approximately June 5 to 9. Volume rose slower after the initial spike, reaching a peak of over 550,000 on or around June 15. It then started to fall slowly, reaching 500,000 transactions per day by the end of the time data was collected around June 23, according to a chart posted in Nansen’s Twitter thread.

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Wallet providers introduce BRC-20 token support despite market drawdown

On June 21, self-custody wallet provider BitKeep announced support for BRC-20 tokens issued on the Bitcoin network. With the feature, users can view, rank and transfer BRC-20 tokens and nonfungible tokens. Developers also stated BRC-20 in-wallet swaps are coming “in [the] future."

Last month, cryptocurrency exchange OKX also announced support for BRC-20 assets via the OKX Wallet app. Many centralized and decentralized exchanges have also rolled out BRC-20 support.

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DeFi market overview

DeFi’s total market value saw a bullish surge after three bearish weeks. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a bullish week, with most tokens trading in the green. The total value locked in DeFi protocols remained below $50 billion.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.