Amid a Sharp Fall the Crypto Sector Expands as Coinbase and Huobi Join New Markets
Welcome to the 17th edition of Shrimpy’s weekly newsletter, a place for staying up to date on the latest trends, news, and events in the cryptocurrency industry.
Digital assets evolve and move faster compared to any other market. For those who do not have time to constantly scroll Crypto Twitter, we wrote a special weekly update covering everything major that happened this week.
This week we are met with more than a few surprises. Although markets have faced a sharp downfall earlier this week bullish news surfaced from both the east and west. Crypto exchanges joined new markets, platforms raised more money in funding rounds, and existing projects have improved their technical capabilities.
Summary
Two South Korean crypto exchanges have delisted altcoins amid regulatory pressure
Social money platform Roll partnered with Fireblocks to improve its security
Huobi will return to U.S. markets with Nevada-based Huobi Trust affiliate
Two co-founders of a leading crypto investment firm in South Africa have disappeared with $3.6 billion in client funds
Software magnate and Bitcoin bull John McAfee has been found dead in prison shortly after his extradition to the U.S. was confirmed
Norway’s regulatory agency wishes to implement a legal framework for cryptocurrencies
Fireblocks was sued by a client after losing $70M worth of Ethereum
Coinbase will now enter the Japanese market after successfully registering itself with the country’s financial watchdog
Regulatory pressure forces Bithumb and Upbit to delist coins
An upcoming regulatory review from South Korea’s Financial Intelligence Unit of the Financial Services Commission led to the country’s two largest crypto exchanges delisting a number of altcoins this month.
Upbit announced the removal of 24 tokens along with the removal of fiat on-ramps for five select tokens. On the other hand, Bithumb told its customers that it would only remove four tokens near the start of next month.
The afflicted altcoins included those dabbling in privacy solutions, as well as altcoins that are no longer being developed or are not listed on more than five exchanges. Their removal is a prerequisite for South Korean crypto exchanges to be eligible for registration.
Roll partners with Fireblocks to improve security
Ethereum-based social money platform Roll announced its new focus on upgrading its security capabilities nearly three months after experiencing a $5.7 million hack.
To roll out the new set of features, Roll has hired Fireblocks, a leader in digital asset custody and settlement. According to the platform, Fireblock’s multiparty computation (MPC) wallet infracture will allow them to securely sign transactions while storing private keys safely.
As a reminder, Fireblock’s MPC infrastructure is implemented by a wide number of platforms, which include: Celsius, BlockFi, Revolut, and Salt Lending.
Moreover, Roll’s co-founder Sid Kalla revealed that the platform would roll out a $30 million insurance fund for all creators on Roll.
Huobi to return to U.S. markets in July
Major Asian cryptocurrency exchange Huobi has planned its reentrance to the western digital assets market by launching a U.S. affiliate exchange. The move resembles Binance’s decision, which also has a separate exchange focused on the North American front.
According to the exchange, its subsidiary Huobi Trust will launch such an exchange by the end of next month. While Huobi Trust is a daughter company based in Nevada, its parent company Huobi Tech is a firm based in Hong Kong.
Apart from trading services, the U.S. affiliate will also provide compliance and custodial services to crypto businesses operating in the U.S.
$3.6B worth of Bitcoin ‘disappear’ as founders of South African crypto investment company go missing
The two founders of Africrypt, a crypto investment firm headquartered in South Africa, have gone missing - disappearing with 69,000 BTC worth approximately $3.6 billion. Before disappearing from the face of the earth, the firm’s clients were told not to report a supposed hack to the police in order to not slow down the recovery of their funds.
Ameer Cajee and Raees Cajee are Africrypt’s founders who are respectively 20 and 17 years old. Their disappearance was followed by the transfer of client funds from a local bank. Once the scam is confirmed, Africrypt will become the highest-valued scam in crypto history.
McAfee found dead in prison hours after U.S. extradition confirmation
Software magnate, digital asset investor, and beloved crypto figure John McAfee has been found dead in prison only hours after the Spanish High Court authorized his extradition to the U.S. According to news sources, McAfee allegedly committed suicide.
As a reminder, McAfee was hunted across the world by U.S. authorities for committing tax fraud and supposedly murdering a U.S. citizen. He was arrested last October at an airport in Barcelona right before a flight to Turkey.
John McAfee spent the last few years actively commenting on developments in the cryptocurrency community, marketing crypto projects, and sharing his world views on Twitter. He is remembered for his bullish stance on Bitcoin and strong support of decentralized currencies and everything else that escapes the hand of the government.
Norway’s financial regulator pushes for new crypto legal framework
The Norwegian Financial Supervisory Authority (FSA) shared its stance this week, stating that the nation needs an updated legal framework for cryptocurrencies that could protect consumers and investors.
The FSA noted the market’s recent rise in attention to retail investors, as well as the recorded rise in criminal activity. For them, the ongoing environment represents a high risk for loss among investors.
Norway’s regulator reminded citizens that until the relevant regulations are in place, customers should not invest more than they can afford to lose and to think carefully of the risks found in such investments.
This week in DeFi
1. Rarible has plans to launch a marketplace on the Flow Blockchain after raising $14.2 million in a recent funding round. The NFT platform will use the capital to launch a new marketplace, creating another hotspot for non-fungible tokens besides Ethereum.
CEO Alexei Falin stated that Raribe is “determined to pioneer the next wave.”
So far, Rarible has processed more than $150 million in NFT sales
2. Insurance platform Risk Harbor is now live after completing a $3.25M seed funding round. The platform now automatically pays out insurance claims to eligible customers.
The seed funding round was co-led by Pantera Capital and Framework Ventures
Bain Capital Ventures, Nima Capital, Digital Currency Group, among others, have invested funds in Risk Harbor
3. Polkadot rises 70% on Coinbase among tense market volatility. The smart contract ecosystem saw a sharp rise this week while other altcoins were left devastated. Although DOT’s price declined on other exchanges, it was sharply bought up on Coinbase.
The project’s team revealed that it initiated an investigation to figure out what caused the major price discrepancy.
At the time of writing, Polkadot’s price has reached an equal rate across all exchanges
Fireblocks sued for losing more than $70M in Ethereum
Due to the mistake of an employee, who did not take precautionary measures to properly back up private keys of a certain digital wallet, Fireblocks has lost more than $70 million worth of Ethereum. As a result, the custodian is being sued by its client and staking platform StakeHound.
During the court process, Fireblocks noted that Stakehound built a wallet configuration that is not supported by the custodian’s native multi-party computation (MPC) infrastructure. Because of that, the error does not fall under any failed responsibilities as Fireblocks had no contractual obligation to store and back up Stakehound’s BLS keys. Moreover, the custodian revealed that they had urged the staking platform ‘numerous times’ to back up their BLS keys.
Coinbase to enter Japanese market after receiving exchange license
World-famous cryptocurrency exchange Coinbase has reportedly registered with Japan’s financial watchdog, the Financial Services Agency (FSA). Once the registration is finalized, Coinbase will start offering five major digital currencies to Japanese clients. These cryptocurrencies include Bitcoin, Ethereum, Stellar, Litecoin, and Bitcoin Cash.
As a reminder, the exchange started its venture into new Asian markets last year after a wave of job advertisements targeting workers from Tokyo. Coinbase’s entrance to the new market will surely pay off as Japan represents one of the largest crypto trading regions in the world.
Quote of the week
The Good News
Chainalysis recorded another significant investment round, raising $100 million in funds. The newest round brought the firm’s valuation to $4.2 billion.
Blockchain-powered web browser Brave announced plans for developing a privacy-focused search engine.
VC crypto firm Andreessen Horowitz raised $2.2 billion in its third and latest crypto venture fund.
The Bad News
The Securities and Exchange Commission (SEC) delayed another Bitcoin ETF decision, this time Valkyrie’s application.
News reports indicate that cryptocurrency investors located in South Africa are barred from buying digital assets with debit and credit cards operated by local banks.
Crypto Twitter Highlights
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