Experts Weigh In on Coinbase-BlackRock “Paper Bitcoin” Spot ETF Rumors

Coinbase, America's largest crypto exchange, and BlackRock, the world's premier asset manager, have found themselves rooted in a new conspiracy theory. Skeptics are spreading unsubstantiated rumors that Coinbase may not actually be buying the real Bitcoin requested by ETF funds but instead issues what they call "paper Bitcoin" or IOUs.

These rumors spread far enough on social media platforms to warrant a response from Coinbase CEO Brian Armstrong. Armstrong waved off the concerns, saying: "All ETF mints and burns we process ultimately settle on-chain."

But conspiracy theorists got new ammo when BlackRock filed an amendment to its ETF registration with the SEC that requires Coinbase to release Bitcoin to the asset manager within 12 hours of notice when customers buy shares of its Bitcoin ETF product.

Other vocal critics online have gone so far as to say that BlackRock can "take as much Bitcoin as they want from Coinbase" through transactions recorded off-chain.

However, Bloomberg ETF analyst Eric Balchunas said those are unfounded conspiracy theories. "This isn't like FTX, where you just throw up an exchange out of nowhere, and some buffoon is running it from a Bahama penthouse," he said. "BlackRock's a serious company that has dozens of lawyers. They're not going to blow their well-earned reputation, let alone get sued by all those investors.

To further debunk these rumors, Balchunas said that, after speaking to BlackRock, he was able to confirm the asset manager operates its own blockchain node and routinely verifies Bitcoin balances from their wallet addresses on Coinbase Prime.

China Reveals Massive Stimulus Package, Increased Liquidity Could Boost Crypto Prices

The People's Bank of China just announced a massive stimulus package that is reverberating through global markets. According to the South China Morning Post, the "policy bazooka" follows a rate cut from the US Federal Reserve.

Measures by the Chinese central bank also include a dramatic cut to the bank reserve requirements, as well as a 50-basis-point cut to the existing mortgage rates. The motive has been to infuse more liquidity into the economy and firm up the sectors that have been performing weakly, especially in housing and consumer spending.

No sooner were the reports out than cryptocurrency enthusiasts started speculating at the possible implications of the monetary easing in China for digital assets. Su Zhu, the founder of the now-defunct Three Arrows Capital, proclaimed that the "China stimulus cycle is kicking in," insinuating that crypto prices could benefit from such a move.

Economist Lyn Alden suggests that Bitcoin's price is historically closely tied to global liquidity, which would indicate the Chinese stimulus could support cryptocurrency valuations into the future.

Beyond the issue of cryptocurrencies, the Chinese government has been working to shore up its economy in other ways, including an 800 billion yuan infusion to prop up Chinese stocks and a plan to create a stock market stabilization fund. These moves have managed to push the value of the CSI 300 index up 7% in the last week.

The timing of this Chinese stimulus package, coming so close to the heels of the Federal Reserve's first rate cut in four years, has set up an extraordinary global economic environment. Classically, these conditions of increased liquidity and lower interest rates usually signal great times for risk assets such as stocks and cryptocurrencies.

XProtocol Announces XForge, Ethereum DePIN Smartphone for Blockchain Gaming

XProtocol announced Wednesday its plans to release the XForge, an Android-powered gaming smartphone that has been referred to as the world's first "DePIN phone," slated to hit the market later this year.

Competitively priced at $299, XForge features 256GB of storage, 12GB of RAM, and a strong Snapdragon 8 Gen 2 processor. But in terms of differentiation, it's how this device connects with the layer-3 network that XProtocol built atop Coinbase's Base layer-2 scaling solution for Ethereum.

The company announced plans to migrate further onto its independent layer-1 network due to a need for "greater autonomy and scalability." An ambitious roadmap underlines a commitment to push the boundaries of blockchain integration into everyday devices.

DePIN stands for decentralized physical infrastructure networks, meaning blockchain-powered networks of physical hardware. XProtocol foresees a future in which the network is powered not just by software running on XForge handsets but also by dedicated Xardian Nodes.

XProtocol's announcement comes after an incursion into the crypto smartphone market by Solana Mobile. After launching its first crypto smartphone, the Saga, last year, Solana Mobile recently announced its second-generation Seeker smartphone that promises greater functionality at a more affordable price than its predecessor, from $450 for early pre-orders.

Hacker of Indian Exchange WazirX Nearly Fully Laundered Funds

The mastermind of India's biggest crypto heist has almost fully washed the tokens stolen from the platform. The July hack resulted in WazirX, once considered one of India's leading cryptocurrency exchanges, losing more than $230 million in funds.

According to on-chain data, the wallet of the hacker, which held the pilfered funds from the start, now has a mere $6 million in Ethereum. Blockchain analytics firm Arkham previously traced these funds and noticed that the stolen tokens have been transferred around new wallets and then transferred through Tornado Cash, one of the notorious privacy services.

This laundering operation has increased manifold in the last couple of months. In August alone, close to $50 million in tokens were transferred into Tornado Cash. However, this illegal activity increased considerably in September. The latest occurred on early Wednesday, transferring 3,792 ETH worth roughly $10 million.

Tornado Cash lets users swap cryptocurrencies across blockchains and anonymizes wallet addresses in question. The Tornado Cash saga took a sharp turn in May when a Dutch court found one of its developers, Alexey Pertsev, guilty of money laundering and gave him a prison sentence of over five years.

The hack that really set this chain of events in top gear was back in July, where one of the multisig wallets of WazirX got breached. The attack is reportedly said to siphon off more than $100 million in SHIB tokens and $52 million in Ethereum among other assets. That staggering loss was more than 45% of the total reserves the exchange reported back in June 2024.

South Korean Crypto Traders Shift Focus to Altcoins as Bullish Market Forecasts Abound

Traders in South Korea have started to shift their attention away from Bitcoin (BTC) and toward altcoins. This is hot on the heels of predictions for lucrative markets following the most recent slashing of interest rates by the United States.

This is revealed by the unexpected move of the Bitcoin Korea premium index, which measures the price difference between Korean and international exchanges, from analytics firm CryptoQuant. It plunged to -0.55 for the first time since October 2023 on Wednesday, the largest discount. In some sense, this signals that Korean investors are not interested in Bitcoin.

Further building evidence of this trend, trading volume data from exchanges domiciled in Korea shows a clear shift toward high-beta alternative cryptocurrencies. A chart compiled by 10x Research, which maps daily Korean trading volumes over the past 40 days, shows a sharp swing away from the bitcoin-Korean won (BTC/KRW) pair. Traders increasingly have shifted to altcoins like UXLINK, CKB, ARK and PEND.

But this is not limited to South Korea, as traders around the world are looking towards altcoins on the basis of more interest rate cuts by the Federal Reserve in the months to come. Markus Thielen, founder of 10x Research, pointed this out in a note recently, saying, "Quick money is positioned to load the boat on its favorite altcoins on the anticipation of a strong Q4 rally."

Thielen furthered the strategic moves of savvy traders: "As Bitcoin soared above $60,000 and sets its sights on breaking through $65,000, savvy traders have been accruing undervalued altcoins, a list consisting of TAO, ENA, SEI, APT, SUI, NEAR, and GRT". The observation is a wider reflection of market sentiment favorable to diversification and probable high-yielding opportunities in the altcoin space.

SEC Delays Decision on BlackRock and Bitwise Spot Ethereum ETF Options

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Nasdaq’s proposed rule change regarding the listing and trading of options on BlackRock and Bitwise’s spot Ethereum exchange-traded funds (ETFs).

The ruling, originally set for this Thursday, will now be delayed until November 10, as stated in a release from the agency.

The SEC's decision follows the recent approval for options trading on BlackRock’s iShares Bitcoin Trust (IBIT), which was granted last week. This approval has been characterized as a significant development for bitcoin ETFs, according to industry analysts.

In addition to BlackRock's proposals, the SEC has also delayed a ruling on NYSE American’s plan to list and trade options on Bitwise’s spot Ethereum ETFs, which include the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust.

The new deadline for this decision has been set for November 11.

The Nasdaq International Securities Exchange submitted the proposal for IBIT options on August 6, aiming to simplify access to Ethereum ETFs for both retail and institutional investors.

The proposal emphasized that the shares are designed to eliminate the complexities and operational burdens typically associated with direct investments in ether.

Despite these developments, the nine spot Ethereum ETFs have faced challenges, with a total of over $624 million in outflows since their launch on July 23.

BlackRock’s ETHA, however, has managed to attract substantial investments, holding net assets of approximately $977 million and accumulating $1.10 billion in net inflows, the highest among its peers according to SoSoValue.

Exodus Donates $1.3 Million to Mobilize Crypto Voters Ahead of Election

Exodus, a cryptocurrency wallet provider founded in 2015, has announced a $1.3 million donation to the Stand With Crypto Alliance, a political action committee (PAC) focused on increasing political engagement among American crypto voters.

The donation, made public on September 24, aims to support the PAC's mission of educating voters about cryptocurrency and advocating for regulatory clarity in the industry.

The Stand With Crypto Alliance, established in May 2023 by Coinbase, seeks to mobilize an estimated 52 million American crypto owners as the presidential election approaches on November 5.

The alliance claims to have raised a total of $180 million from approximately 1.49 million crypto advocates, although the Federal Election Commission reports that only $13,690 had been contributed directly to the PAC as of June 30.

In addition to voter mobilization, the organization is advocating for policies such as the “Financial Innovation and Technology for the 21st Century Act” (FIT21), which has garnered bipartisan support in Congress.

The alliance has developed a database of over 1,000 politicians, providing letter grades based on their support for the crypto industry.

The organization updated its scorecard on September 25, indicating a need for clearer stances from candidates to qualify for a grade.

Political analysts have highlighted the significance of crypto voters in the upcoming election. John Anzalone, a former campaign strategist for Joe Biden, noted that this demographic could be a crucial factor in determining electoral outcomes.

Current polling suggests a tight race between Democratic candidate Vice President Kamala Harris and Republican candidate former President Donald Trump, with Harris holding a slim lead of 50% compared to Trump’s 48%, according to the crypto prediction platform Polymarket.

Banana Gun to Refund $3 Million Following Exploit of Telegram Bot

Banana Gun has announced that it will refund $3 million to 11 users affected by a recent exploit involving its Telegram trading bot.

The incident, which occurred last week, led to unauthorized transfers from user wallets, raising concerns about the security of the platform.

The trading bot, which facilitates on-chain transactions and allows users to capitalize on upcoming token launches, has processed over $6.3 billion in trading volume across nearly 279,000 users.

Following the exploit, Banana Gun temporarily disabled its Ethereum Virtual Machine and Solana bot while investigating the incident. The team stated that its back-end systems remained uncompromised.

An internal investigation, along with external assessments, revealed a potential vulnerability in the Telegram message oracle utilized by Banana Gun. This flaw is believed to have been exploited, allowing attackers to target experienced traders known for their presence in the crypto community.

In a statement posted on X, the Banana Gun team assured users that "all impacted users will be fully refunded from the Banana Gun treasury, with no tokens being sold for reimbursements."

The company emphasized that the affected group included a small number of users—specifically, fewer than 10—who were considered “smart money” traders.

To enhance security following the incident, Banana Gun has implemented several mitigations, including a two-hour transfer delay and the addition of two-factor authentication for transactions. Audits of both the front-end and back-end systems are also underway.

The bots were reinstated after the vulnerability was patched last Friday, and no subsequent attacks have been reported since the initial shutdown.

Viral Sensation Moo Deng Solana Meme Coin Surges to $80M Market Cap

A Solana-based meme coin boosted by Moo Deng, a viral pygmy hippo native to Thailand, saw its market cap surge to over $80 million in less than two weeks.

Moo Deng, which roughly translates to "bouncy pork" in Thai, is a two-month-old resident at Khao Kheew Open Zoo, Chonburi, Thailand.

This pint-sized hippo has won the hearts of millions across the globe because of her endearing facial features, which also include chubby cheeks and an always-wet appearance. Social media posts of the baby hippopotamus have gained views running into millions easily, confirming her status as an internet celebrity.

The Solana token MOODENG was created on the meme coin platform Pump.fun, and immediately started flying high. This Tuesday alone, the token's market capitalization reached a high of $80.14 million.

MOODENG now stands as the fourth-largest meme coin on Pump.fun, going above notable contenders like BILLY, SCF, and DADDY. Meanwhile, Moo Deng's popularity in the real world continues to balloon. Khao Kheow Open Zoo has announced plans to launch a 24-hour livestream of the pygmy hippo responding to overwhelming public demand.

Turkey Scraps Plans for Stock and Crypto Profit Tax

Turkey has abandoned its plans to levy a tax package on profits from stock trading and cryptocurrency transactions. The move, announced by Turkey's Vice President Cevdet Yilmaz, is a sudden about-face regarding the country's stance on financial market oversight.

Yilmaz ruled out the stock tax once proposed and now taken off the agenda. "We don't have a stocks tax on our agenda. It was discussed previously and fell from our agenda," he said in an interview with Bloomberg. On his part, the Vice President gave an indication of what the government's priority would be in the coming period: "narrowing" the tax exemptions.

This move comes after a period of turmoil in the financial markets of Turkey. In June, the government had delayed plans to impose taxes on stocks after a steep fall in the equity market of the country. The decline in the market was largely blamed on news about the proposed additional taxes-a proof of how sensitive such a fiscal policy change could be.

In that case, Turkish Finance Minister Mehmet Simsek announced the delay on X, formerly Twitter. "We are postponing the draft tax study for the stock exchange for a while to re-evaluate in line with feedback from all relevant parties," said Simsek, buckling under pressure from the markets to show that the administration was open to market reaction and stakeholder input.

The withdrawal of the draft tax package, which also included levies on cryptocurrency gains, places Turkey in step with what has been an ongoing global debate to seek better ways of regulating and taxing digital assets.

Countries around the world, including the leading economic hubs like the United Kingdom and Japan, have been racing against time, trying to come up with appropriate tax frameworks for cryptocurrencies.

Former Alameda CEO Caroline Ellison Sentenced to Two Years in FTX Collapse Case

Caroline Ellison, the former chief executive of Alameda Research, received a two-year prison sentence in a minimum-security prison.

Judge Lewis Kaplan from District Court of Southern New York handed her the sentence on September 24th, as part of the ongoing legal saga that has resulted from one of the most high-profile failures in crypto history.

Despite the possibility of up to 110 years in prison on charges brought against her, Ellison was handed what has been described as a relatively lenient sentence. Judge Kaplan was sympathetic to Ellison's position, acknowledging forces in her relationship with FTX founder Sam Bankman-Fried: "You're a very strong person, Ms. Ellison, in some ways, but not inviolable. Mr. Bankman-Fried had your Kryptonite," Kaplan said, implying she had been open to victimization because of her susceptibility.

Ellison was also ordered to forfeit around $11 billion in earnings from FTX. Her sentencing date is on or after November 7, 2024. Cooperation with prosecutors against Bankman-Fried played a major role in Ellison's lenient sentence. Her cooperation resulted in prosecutors asking for leniency, though Judge Kaplan made it very clear that there would be no "get out of jail free" card.

Ellison's sentencing is part of the wider legal fallout following the collapse of FTX, while others await their fates. Two former executives from FTX, Gary Wang and Nishad Singh, have pleaded guilty to charges against them, with sentences due to be passed on November 20 and October 30, respectively.

Another former executive at FTX, Ryan Salame, was given a seven-and-a-half year prison sentence back in May. Most notably of all, the founder and former CEO of FTX, Sam Bankman-Fried, was sentenced to 25 years back in March for his main role in the exchange's downfall.

TrueUSD Issuers Settles Fraud Charges With SEC, Casting Doubts on Stablecoin's Backing

The firms behind TrueUSD, a USD-pegged stablecoin, have been charged by the U.S. Securities and Exchange Commission. On Tuesday, the SEC announced charges against TrueCoin LLC and TrustToken Inc. for fraud and unregistered sales of investment contracts, casting doubt on the safety and backing of the dollar-pegged digital asset.

The regulator accused both firms of making misleading claims about the backing of TUSD, calling it a "purported stablecoin." Both companies placed a large chunk of TUSD's reserves in a "highly speculative and illiquid offshore investment fund" in an effort to inflate returns, the SEC said.

Jorge G. Tenreiro, Acting Chief of the SEC's Crypto Assets & Cyber Unit said, "This case is a prime example of why registration matters, as investors in these products continue to be deprived of the key information needed to make fully informed decisions."

The complaint filed by the SEC also alleges that TrueCoin and TrustToken knew about various issues related to redemptions regarding the offshore fund but nonetheless continued to invest TUSD's backing in the venture. At one point in time, according to the regulator, 99% of the backing of TUSD was invested in this unnamed fund, supposedly focused on "trade finance" and related investments.

The allegations notwithstanding, the companies have agreed to settle the charges without admitting or denying any wrongdoing and will pay, collectively, an approximate $700,000 penalty under the settlement.

This move comes when the market position of TUSD had already been under pressure. The market capitalization of the stablecoin has dived 86% from its high of nearly $3.8 billion last October to around $500 million today. That coincided with changes in Binance's zero-fee trading policies, which up until then had given prominence to TUSD in the market for stablecoins.

Crypto Community Divided Over Kamala Harris's Stance on Digital Assets

Vice President Kamala Harris' new "B" grade from crypto advocacy group Stand With Crypto is being received with heavy skepticism and criticism from industry insiders and enthusiasts alike.

Harris first spoke about cryptocurrency on the campaign trail in a New York City fundraising event, promising to "encourage innovative technologies like AI and digital assets while protecting our consumers and investors." Stand With Crypto, a nonprofit initially founded by Coinbase, changed Harris' status following this to "somewhat supports crypto."

Not everyone in the crypto space is convinced, however. The timing of Harris' crypto-friendly remarks, coming just 41 days before the U.S. presidential election, has raised some eyebrows.

The move has been seen by some as a way to court the crypto vote, considering her Republican rival, former President Donald Trump, has already received an "A" rating from Stand With Crypto.

Critics promptly jumped at Harris's brief reference to crypto as cursory and not taking into consideration what many perceive as antagonism towards the sector by the administration in office. Matthew Sigel, head of digital assets research at VanEck, doubted the seriousness of Harris, noting how the Biden administration had laid regulatory restrictions on crypto firms such as Coinbase.

He explained further that if Harris really wished to aid in advancing the prospects of digital assets, she could use her clout to get rid of SEC Chair Gary Gensler, who is widely viewed as a foe by many in the crypto world.

Ryan Selkis, who stepped down as CEO of crypto data firm Messari in February, questioned the motivations behind Stand With Crypto's ratings, saying they likely suffered from "wishful thinking" and efforts to stay in good graces with political incumbents in a hotly contested election.

Kraken Acquires Dutch Crypto Broker BCM to Enhance European Presence

Kraken, the US-based cryptocurrency exchange, has finalized its acquisition of Coin Meester B.V. (BCM), one of the oldest registered crypto brokers in the Netherlands.

This strategic move is part of Kraken’s ongoing efforts to expand its operations throughout Europe and solidify its status as a registered Virtual Asset Service Provider (VASP).

The acquisition allows Kraken to extend its services directly in several European countries, including the Netherlands, Germany, Spain, Italy, Belgium, Ireland, France, and Poland.

Following the integration, BCM clients will gain access to Kraken’s extensive range of over 200 digital products and 24/7 customer support in local languages.

In a recent blog post, Brian Gahan, Kraken's Managing Director for Europe, described the acquisition as a significant milestone in the company's European expansion strategy. Over the past two years, Kraken has intensified its growth efforts in the region, particularly in anticipation of the implementation of the Markets in Crypto-Assets Regulation (MiCA).

As part of the new regulatory framework, which became partially applicable on June 30, 2023, crypto asset service providers will need to meet specific KYC and AML requirements.

Full compliance is expected by December 2024. Kraken aims to leverage its global scale to provide a compliant offering and enhance the client experience in Europe.

Ark Invest Sells $2.8 Million in Spot Bitcoin ETF Shares

Ark Invest, led by Cathie Wood, has sold 44,609 shares of its ARKB spot Bitcoin ETF, amounting to $2.8 million.

This transaction occurred on September 24, as part of the firm’s strategy to rebalance its fund weightings. To date, Ark Invest has sold a total of $17.5 million worth of ARKB shares from its Next Generation Internet ETF (ARKW), though it still retains a significant investment, holding $139.7 million in the Bitcoin ETF.

The ARKB ETF accounted for approximately 9.93% of the ARKW fund's total assets as of September 24, making it the second-largest holding within the fund. Tesla remains the largest holding in ARKW, with a weight of 10.15%, valued at $142.9 million.

The ARKB ETF traded at $63.25 at market close on September 24, reflecting a 0.8% increase for the day and a notable 26.5% rise year-to-date.

This recent sale follows a pattern of divestiture by Ark Invest, which earlier offloaded $6.9 million in ARKB shares on August 1 and $7.8 million in July. The investment firm maintains a policy of limiting any single holding to no more than 10% of its ETF portfolio, a strategy aimed at ensuring diversification.

In the broader market context, U.S. spot Bitcoin ETFs experienced net inflows of $4.5 million on September 24, marking a positive trend that has accumulated over three days, totaling more than $250 million.

US Republicans Unite to Oppose SEC's Crypto Custody Rule, Calling for Its Repeal

More than 40 Republicans of the United States have united in an appeal for the rescission of the contentious Staff Accounting Bulletin No. 121 expressed by the Securities and Exchange Commission.

The letter addressed to the regulator stated that if it was unwilling or unable to provide the needed relief, then the contentious guidance needed to be rescinded. This move comes as a bipartisan repeal bill was rejected by President Joe Biden back in June.

House Financial Services Committee Chairman Patrick McHenry, along with Senator Cynthia Lummis and 40 other politicians, lashed out at SEC Chairman Gary Gensler in an angry letter dated Sept. 23.

They say it's their belief that SAB 121 treats "all forms of custody by an SEC reporting company" of cryptocurrencies "for purposes of financial statement presentation as a liability," which is disastrous because it undermines consumer protection and stifles financial innovation.

The politicians said the rule was promulgated without the input of "prudent regulators" and strayed from accounting precedent. They said SAB 121 does not faithfully represent the legal and economic responsibilities of custodians and may expose consumers to a loss.

One of the major criticisms in the letter is that the SEC took a path of sidestepping the proper procedures. "By issuing this rule under the guise of staff guidance, the SEC evaded the notice and comment rulemaking process required by the Administrative Procedure Act," the politicians said.

They strongly believe that "rescinding SAB 121 is the only appropriate action and well within the SEC's authority."

Chinese Bitcoin Miners Retain 55% of Bitcoin Hashrate Despite Ban

Chinese Bitcoin miners continue to dominate despite a cryptocurrency ban in China. According to Ki Young Ju, founder and CEO of CryptoQuant, while Chinese mining pools are responsible for 55% of the Bitcoin hashrate, U.S. pools manage about 40%.

The dominance of China miners is noteworthy considering the complete ban of mining and Bitcoin trading in this country in 2021.The measure was implemented by the Chinese authorities to crackdown on cryptocurrencies to reduce financial risks and manage the flow of money in the system.

However, according to reports, China is considering a major revision in its anti-money laundering legislation in 2025, extending its scope to cryptocurrency transactions. The changes would be in response to the growing demands for increased oversight into the sector.

Proposed amendments come at a time when mainland users have found ways to get around the existing ban to access the crypto market, exposing the potential for money laundering.

Mike Novogratz, CEO of Galaxy Digital, shared on X that he has been hearing reports suggesting China might "unban" Bitcoin by late 2024. That would be a policy reversal with significant implications for the global cryptocurrency market.

Miner revenue fell to $827.56 million in August, which is more than 10.5% below the figure of $927.35 posted for the previous month of July. This represents the worst month for revenue taken in by Bitcoin miners since September 2023, when they made $727.79 million.

Polymarket Eyes $50M Funding, Potential Token Launch

The leading blockchain-based predictions market platform Polymarket is said to be considering raising $50 million in fresh capital, and a potential token launch.

According to the report, token warrants will be given to the investors of the round, entitling them with the right to purchase tokens in case Polymarket decides to launch one.

This latest funding initiative comes hot on the heels of Polymarket's successful capital raises earlier in the year. It secured $25 million in a Series A round led by General Catalyst. Later, it went on to secure an additional $45 million in a Series B funding round, in which Ethereum co-founder Vitalik Buterin participated.

Polymarket has surged in popularity, seemingly due to the buzz surrounding the upcoming U.S. presidential election. It has seen almost a billion dollars in trade volume while people guess who will win the White House race.

Built on both the Ethereum and Polygon blockchain networks, Polymarket facilitates the buying and selling of shares of possible outcomes about real events. Share prices range from $0.00 to $1, with the price reflecting the percentage chance or odds of a particular outcome occurring.

Polymarket also offers markets in the areas of pop culture, sports, and all other forms of political events. The platform has lately seen a surge in its popularity as total volumes traded in the website reached $472.8 million last month alone.

Celestia Foundation Raises $100 Million, TIA Bounces 17%

The Celestia Foundation, the team behind modular blockchain network Celestia, announced that it had raised USD $100 million in an investment round.

Following the news of this large-scale investment led by Bain Capital Crypto, TIA, the native token of Celestia, gained 17.5% over the past 24 hours, reaching a price of $6.42. However, the token remains 69% below its all-time high of $20.91 reached in February this year.

Investors that participated in this funding round included Syncracy Capital, 1kx, Robot Ventures, and Placeholder. This latest funding brings the total funds of the Celestia Foundation to $155 million cumulatively.

Celestia was one of the most-discussed token airdrops of 2023, with TIA distribution to a whopping 580,000 users. On the other hand, the success of the airdrop and the achievement with respect to fundraising stand side by side with very poor market performance of this token.

The core developers are focused on implementing the recently unveiled roadmap. As stated by Mustafa Al-Bassam, the co-founder of Celestia: "When Celestia launched last year as the first modular data availability layer, it scaled blockspace from the dial-up era to the broadband era. Today, core developers have introduced the technical roadmap to scale blockspace to the fiber optic era – while keeping it verifiable and low latency."

Celestia is making a space for itself in blockchains due to the tendency of modularity, which should be one of the keys for solving scalability problems haunting these blockchains from time to time.

Celestia is trying to provide solutions regarding the availability of data by placing themselves as a cheaper alternative for storing data on layer-1 blockchains like Ethereum.

Hong Kong Expands Digital Currency Project to 21 Financial Institutions

The Hong Kong Monetary Authority has launched the second phase of the e-HKD pilot study. The broader project, renamed Project e-HKD+, will now research 11 different use cases of the CBDC and tokenized deposits on the back of 21 financial institutiThis article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.

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This will be another new phase, which will last for about a year, running in a sandbox environment. HKMA extended the scope of the project due to the growing interest and expanding range of uses of digital currencies within finance.

Project e-HKD+ will focus on three key themes: settlement of tokenized assets, programmability, and offline payments. As part of the pilot, Visa, ANZ, Fidelity, and ChinaAMC will be working on real-time, almost instant-settlement of interbank transfers, cross-border payments, and a DvP mechanism using e-HKD and tokenized deposits.

Another interesting application case is when Hang Seng Bank, Aptos Lab, and Boston Consulting Group jointly will test the commercial viability of a settlement of tokenized funds by using digital money on a public blockchain. This can unlock new efficiency and transparency for the fund management practice.

Bank of Communications (Hong Kong) and China Mobile (Hong Kong) will also explore the use of e-HKD stored on mobile SIM cards for making payments and transfers in an offline manner. It may further extend the reach and usefulness of the digital currency, particularly where connectivity is poor.

Additionally, the authority is extending its technological horizons as it also announced a separate Generative AI sandbox in collaboration with Cyberport.