Are you curious about the latest in the crypto world? Here’s a rundown of today’s key trends and events affecting Bitcoin prices, blockchain technology, DeFi, NFTs, Web3, and crypto regulations.
Maker DeFi lending protocol rebrands to Sky ahead of USDS stablecoin launch
The Maker Protocol, now officially rebranded as Sky, has unveiled new names for its upgraded stablecoin and native governance token, all in a bid to make decentralized finance (DeFi) more accessible to a wider audience.
As part of this rebranding effort, Maker, recognized as the longest-standing DeFi lending protocol, has renamed the world’s largest decentralized stablecoin, Dai (DAI), to USDS. In addition, the protocol has introduced the Sky (SKY) native governance token for the broader Sky ecosystem, serving as an enhanced version of the Maker (MKR) token.
This rebranding is a key move towards the "next evolution of DeFi," according to Rune Christensen, co-founder of MakerDAO.
In the broader DeFi landscape, Spark is one of the most prominent lending protocols. Currently, 443 DeFi lending protocols have a combined total value locked (TVL) of over $33.4 billion, making lending the second-largest protocol category after liquid staking, which has a TVL exceeding $44.3 billion, according to DefiLlama data.
Among these lending protocols, Spark ranks third-largest, with a TVL of $2.66 billion, though it has decreased nearly 14% over the past month. Aave continues to dominate as the leading DeFi lending protocol, boasting a TVL of over $12.1 billion despite a decline of over 5% during the same period.
SEALSQ-Enabled Digital Crypto Wallet Features Designed to Safeguard Against Potential Quantum Computing Threats
SEALSQ Corp ("SEALSQ" or the "Company"), a leading developer and provider of semiconductors, PKI, and post-quantum technology hardware and software products, has announced the launch of advanced digital crypto wallet features designed to safeguard against potential threats posed by quantum computing. These innovations include a converged eSIM solution incorporating an embedded secure element (eSE), eUICC, and certified NFC connectivity into a unified platform. SEALSQ is also partnering on a proof-of-technology project with the Hedera blockchain, aiming to integrate Public Key Infrastructure (PKI) signatures with biometric authentication.
As quantum technology advances, concerns within the crypto community have heightened over its potential to breach cryptographic systems, including the 12-word seed phrases crucial to crypto wallet security. SEALSQ’s cutting-edge solutions address these risks by bolstering the resilience of these seed phrases, making them more resistant to future quantum decryption techniques.
In a rapidly advancing world of quantum computing, SEALSQ is leading the way in innovation with its quantum-proof cryptography research. The company is committed to developing robust security measures that protect the integrity of cryptocurrency transactions and shield users from emerging threats. This initiative is a key element of SEALSQ’s broader strategy to maintain a competitive edge in the ever-evolving digital landscape.
Crypto Bank Xapo to Manage $200M Bitcoin-Denominated Hedge Fund With Hilbert Capital
Xapo Bank and Hilbert Capital, the asset management division of the Swedish investment firm Hilbert Group (HILB), are planning to manage a bitcoin (BTC)-denominated hedge fund with an initial capital of $200 million.
The fund, which is scheduled to launch in September, will be available to corporations, businesses, and professional investors, as announced on Tuesday.
"We believe that providing the right products for participants in this space who seek not only exposure to Bitcoin's price but also structured strategies to enhance the Bitcoin value of their investments is a natural evolution of the asset class," stated Xapo Director Joey Garcia.
While the firms have not disclosed the specific fees associated with the fund, they have indicated that the fees will be "at a lower level than other 2% and 20% hedge funds." This refers to the common fee structure where the manager charges a 2% management fee and a 20% performance fee on the fund's gains.
The expansion of bitcoin hedge funds could be seen as an indicator of increasing institutional adoption of cryptocurrency, reflecting a growing demand for sophisticated investment products beyond what is typically available to retail investors.
Celsius bankruptcy distributions exceed $2.5 billion to 251,000 creditors
The now-defunct centralized crypto lender Celsius has distributed over $2.53 billion in liquid cryptocurrency and cash to its creditors, representing approximately 93% of the $2.73 billion owed.
According to the firm, around 251,000 of the 372,000 eligible creditors spanning 165 countries have received their distributions. The remaining distributions primarily involve smaller amounts, as confirmed by Celsius’ bankruptcy plan administrator in a status report filed late Monday.
The distributions include $1.43 billion in cryptocurrency via PayPal/Venmo, $917 million in cryptocurrency via Coinbase, and $178 million in cash transfers. Celsius began this process on January 31, and by February, had distributed $2 billion, as previously reported by The Block. The payouts are based on cryptocurrency prices as of January 16, 2024.
Approximately 121,000 creditors have yet to successfully claim their distributions due to the complexity of the process, such as opening a PayPal account with a matching date of birth, opening a Coinbase account with a matching email address and date of birth, or providing the Post-Effective Date Debtors with accurate wire instructions or a mailing address for a check, according to the filing.
However, most of the remaining creditors are owed small amounts, with around 64,000 creditors due less than $100 and 41,000 between $100 and $1,000. The filing notes that “given the small amounts at issue for many of these creditors, they may not be incentivized to take the necessary steps to successfully claim a distribution.”
The Plan Administrator reported making over 2.7 million distribution attempts for the 372,000 creditors, typically retrying distributions via Coinbase every two weeks and cash distributions once per week, with numerous reattempts for nearly all creditors who have yet to receive their distributions successfully.
As part of Celsius’ approved reorganization plan, some funds were allocated to establish a new bitcoin mining company, Ionic Digital. Certain Celsius creditors will hold ownership in the mining company through common shares, which are expected to be publicly traded once necessary approvals are secured. The Miami-based mining company Hut 8 will manage Ionic’s mining operations under a four-year management agreement.
Celsius filed for bankruptcy in 2022 after discovering a $1.2 billion shortfall in its balance sheet. The company emerged from bankruptcy in November.
Last year, Celsius and its founder and former CEO, Alex Mashinsky, were sued by several regulators, including the Securities and Exchange Commission, the Federal Trade Commission, and the Commodity Futures Trading Commission, for allegedly misleading customers. Mashinsky was also charged with fraud, with his trial scheduled to begin on September 17.
Telegram CEO Pavel Durov Arrest in France Sparks Polymarket Speculation
Polymarket’s prediction platform estimates only a 35% chance of Telegram CEO Pavel Durov being released in August, indicating a low likelihood of his release. Despite these odds, the prediction market has been gaining traction, with key metrics such as active traders and monthly volume experiencing significant growth.
Optimistic bettors continue to wager on Durov's release, pointing to France's history of frequently releasing high-profile individuals and the involvement of the UAE in the situation.
These bets persist even though French authorities have hinted at a potential release on Wednesday. Notably, no formal charges have yet been filed against Durov.
A press release issued by the Paris Judiciary Tribunal on Monday suggested that the charges against Pavel Durov might be specific to France and unrelated to the European Commission. The inclusion of cryptography-related charges raises concerns about a potential attack on fundamental security technologies, which are critical for encrypted messaging platforms. This has also sparked worries about the implications for decentralization and privacy protections.
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