Crypto lending company BlockFi, which had faced financial challenges, has taken a step forward in its fund recovery process.
Seeking approval from the United States Bankruptcy Court for the District of New Jersey, BlockFi has requested the transfer of “trade-only” assets from users’ accounts into stablecoins, enabling users to withdraw their funds.
These assets, including Algorand’s native token, Bitcoin Cash, and Dogecoin, have posed withdrawal difficulties.
To address this, BlockFi proposes a one-time conversion into stablecoins like Gemini Dollar (GUSD).
The application clarifies that these trade-only assets constitute less than 0.5% of the total U.S. wallet assets of BlockFi users.
Meanwhile, other trade-only assets like Cardano, Solana, and Avalanche are being held separately by BlockFi International.
Importantly, the request has received the backing of the committee of BlockFi creditors, a body recognized by the court.
Having filed for Chapter 11 bankruptcy protection in 2022, BlockFi joined other companies like FTX, Celsius Network, and Voyager Digital in facing financial turmoil.
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Last year, client fund withdrawals were temporarily suspended, but on August 16, the court granted permission for withdrawals after a nine-month hiatus.
The court has also provisionally endorsed BlockFi’s restructuring strategy.
The company’s focus is on recuperating funds from key entities such as Alameda Research, FTX, Three Arrows Capital, Emergent, and Core Scientific.
Notably, a recent legal move by BlockFi sought to prevent FTX from retrieving substantial funds to repay its creditors, marking the ongoing complexities in the process.
As of April 2023 estimates, BlockFi’s debt reached up to $10 billion, owed to over 100,000 creditors.
Among them, the three largest creditors were owed $1 billion collectively, while the defunct crypto hedge fund 3AC was owed $220 million.
In summary, BlockFi’s application to transfer trade-only assets into stablecoins is a significant stride towards refunding users.
Supported by a recognized creditors’ committee, this move aligns with BlockFi’s ongoing efforts to navigate its financial challenges and meet its debt obligations.
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TinyTap, a subsidiary of Animoca Brands specializing in educational technology (ed-tech), has revealed its latest advancements on August 30th, featuring the integration of cutting-edge artificial intelligence (AI) and nonfungible token (NFT) tools tailored for educators and parents.
With the newly integrated AI, both educators and platform users can now effortlessly craft educational games through topical prompts.
These prompts trigger the AI to swiftly generate corresponding games in mere minutes.
This update also introduces a text-to-image feature, enabling the creation of dynamic educational visuals to enrich the gaming experience.
The AI technology draws from a wealth of data amassed over a decade within the TinyTap system.
This database comprises the “learning architecture” gleaned from more than 250,000 games, millions of activities, and over 170 million play sessions.
Yogev Shelly, CEO of TinyTap, emphasized that the AI-generated content is carefully curated, ensuring alignment with specific age ranges:
“We have incorporated governors within the output to ensure games exist within the desired age range.”
Shelly elaborated that topics evolve from explanations to comprehensive activities.
Although the current beta tools are restricted to single-topic prompts, the future vision is to expand AI integration for richer and more engaging game creation.
Shelly highlighted that these tools expedite content development and access, ultimately empowering educators and parents to offer tailor-made learning experiences for individual children.
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The roadmap of TinyTap also includes an AI tool named “Practice Anywhere,” which transforms existing media like educational YouTube videos into interactive content and games.
Animoca Brands’ Co-founder and Executive Chairman, Yat Siu, lauded the potential of AI in the education technology sector, predicting that streamlined content production will lead to an extensive educational library accessible to educators and parents.
Beyond AI enhancements, in the upcoming Q4, TinyTap plans to collaborate with Open Campus.
This partnership will enable NFT holders and EDU token holders to mint the educational games they create as NFTs.
This innovation is anticipated to invigorate the educational ecosystem, injecting new vitality into the field. Shelly remarked that “Teachers are some of the world’s biggest content creators…
These teachers will be able to reach wider audiences and start earning from beyond their classrooms.”
Amid the burgeoning concept of a “smart education system,” integrating blockchain, decentralized autonomous organizations, NFTs, and AI components, industry leaders inside and outside the Web3 realm have been underlining the transformative potential of this paradigm shift.
TinyTap’s recent advancements stand as a testament to the ever-evolving landscape of educational technology.
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The recent enforcement action by the United States Securities and Exchange Commission (SEC) against an NFT project has ignited a debate within the community, raising concerns about potential repercussions for similar projects falling under the same description and becoming targets for future SEC actions.
On August 28, the SEC took legal action against entertainment company Impact Theory, alleging the sale of unregistered securities through their NFTs named “Founder’s Keys.”
The SEC claims these NFTs were marketed as investments in the company, resulting in a purported fundraising of approximately $30 million.
The SEC contends that the NFTs in question meet the criteria for investment contracts and should be classified as securities.
According to the commission, the company violated the Securities Act of 1933 by conducting NFT sales without proper registration.
However, not everyone concurs with the SEC’s stance.
On the same day, SEC commissioners Hester Peirce and Mark Uyeda expressed their dissent, arguing that the statements made by the company and purchasers cited in the order do not constitute the kind of promises that form an investment contract.
Peirce and Uyeda further highlighted the SEC’s inconsistency in not pursuing enforcement actions against sales of other collectible items like watches and paintings that also come with vague promises of brand-building and increased resale value.
The incident has elicited reactions from community members who believe that numerous NFT projects align with the SEC’s description.
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A representative from the well-known NFT collection Azuki noted the potential significance of the case, suggesting that multiple NFT projects could share similarities with the charged project.
Critics contend that many NFT project founders, akin to Impact Theory, promote their offerings by enticing potential buyers with promises of profits tied to the project’s success.
In a conversation with Cointelegraph, Oscar Franklin Tan, Chief Legal Officer of NFT platform Enjin, expressed concerns over labeling all NFTs as securities.
Tan emphasized the diverse nature of NFTs, which can range from visual art to health records and property titles.
He cautioned against stifling creators’ exploration of various Web3 models due to regulatory uncertainty.
Tan emphasized the need for clearer regulatory guidelines from the SEC to prevent creators from inadvertently producing investment products and hindering the potential benefits of Web3 models.
This situation is not the first instance where NFTs have been debated in the context of securities.
Earlier in the year, a U.S. judge indicated that NBA Top Shot NFTs might qualify as securities based on the legal relationship established between investors and promoters.
As the debate rages on, the outcome of this case could set a precedent for the classification of NFTs in terms of securities regulation, shaping the future landscape of NFT projects and their interactions with regulatory authorities.
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In 2023, Pepe (PEPE), a prominent memecoin, faced a significant setback as its anonymous creators abruptly sold nearly $16 million worth of tokens on August 24, resulting in a partial rug pull.
The incident prompted a drop of up to 26% in Pepe’s value, causing confusion and concern among cryptocurrency investors and memecoin enthusiasts.
The official Pepe X (formerly known as Twitter) account attributed the decline to three former team members who sold tokens without authorization, exacerbating the token’s already volatile nature.
Despite the turmoil, opinions on Pepe’s future diverged. Reetika Trades, a crypto trader, suggested that the impact of the developers’ departure might be limited due to Pepe’s lack of utility and inherent value.
The sudden sell-off potentially reduced the risk of future coin dumps, which could bode well for the token’s long-term health.
However, the extreme volatility of memecoins, coupled with their speculative nature, underlines the risk inherent in such investments.
Horse, an anonymous trader, emphasized the benefits of removing remaining token supply from the hands of the selling developers.
Drawing parallels to Dogecoin, Horse expressed optimism about Pepe’s potential resurgence and comeback.
Kaiko, a crypto data provider, noted that despite the sudden price crash, Pepe’s liquidity held up surprisingly well, suggesting that the project’s abandonment might not be as dire as initially presumed.
Contrasting viewpoints emerged as Santiment analysts predicted increased volatility for Pepe despite its surge in popularity post-rug pull.
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In contrast, prominent trader Kaleo took a more pessimistic stance, expressing a desire for Pepe to collapse entirely.
Following the turmoil, an anonymous team introduced a new spin-off of the original Pepe token, highlighting its alignment with the principles of decentralized finance (DeFi).
The team described the new PEPE token as a truer representation of what the initial Pepe token should have been, characterized by decentralization, community involvement, absence of team tokens, and deflationary mechanisms.
In summary, the eventful saga of Pepe’s rug pull in 2023 underscored the inherent risks and volatility associated with memecoins.
While opinions on Pepe’s future varied, the incident prompted the emergence of a new token striving to embody the ideals of decentralized finance.
The broader memecoin ecosystem continues to be a space marked by excitement, speculation, and uncertainty.
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The Grayscale Bitcoin Trust (GBTC) might see its BTC price “discount” eliminated by 2024, according to CoinGlass, a monitoring resource.
After Grayscale secured a legal victory over US regulators on August 29th, the declining performance of GBTC could potentially be addressed.
With a holding of over 600,000 BTC, the fund has been trading below the Bitcoin spot price, known as net asset value, since February 2021.
The once-positive “GBTC premium” has been negative for more than two and a half years, but this trend might be reversing soon.
The US Securities and Exchange Commission’s requirement to consider GBTC’s conversion into a Bitcoin spot price exchange-traded fund under the same terms as other applicants pushed the “discount” to its lowest point since December 2021, now standing at just -17%, less than half of its peak around 50%.
CoinGlass expressed optimism in a future recovery: “Expect Grayscale $GBTC premium to close the discount next year.”
Dylan LeClair, senior analyst at digital asset fund UTXO Management, emphasized GBTC’s significance in influencing Bitcoin’s journey to record highs in 2021 due to its vast assets under management.
He noted, “Today’s discount move from -26% to -17% is the equivalent of 56,000 BTC returning to the AUM of $GBTC if shares are marked to market.”
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The recent Grayscale development might also impact Bitcoin’s price action by reintroducing key moving averages (MAs).
The 200-week and 200-day trend lines, which failed to provide support during Bitcoin’s previous drop in August, could potentially regain their importance.
Despite BTC/USD struggling to maintain these levels, Rekt Capital, a prominent trader and analyst, highlighted the significance of these MAs in reclaiming bullish momentum.
Rekt Capital noted, “This is great initial momentum from ~$26K support which never broke down to fully confirm the Double Top.”
He also stressed the importance of Bitcoin reclaiming Bull Market moving averages as support to confirm a bullish outlook.
In summary, the Grayscale Bitcoin Trust (GBTC) could reverse its negative price “discount” in 2024, supported by recent legal developments and positive sentiments.
The fund’s large BTC holdings and its potential impact on Bitcoin’s price movement were highlighted, along with the significance of reclaiming key moving averages for sustained bullish momentum.
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Digital Currency Group (DCG), a prominent cryptocurrency industry venture capital firm, has reached a preliminary agreement with creditors of its cryptocurrency lending subsidiary, Genesis.
According to a court document released on August 29, if the revised plan is sanctioned, unsecured creditors could potentially recover between 70% and 90% of the equivalent United States dollar value.
The revised plan also offers the possibility of recovering 65% to 90% on an in-kind basis, dependent on the specific digital asset denomination.
In a statement to Cointelegraph, DCG expressed satisfaction in reaching a preliminary agreement with both Genesis and the Unsecured Creditors Committee.
This agreement establishes the groundwork for a comprehensive resolution of the claims within the Genesis Chapter 11 Cases, aiming to provide significant recovery opportunities for creditors.
The formalized agreement will be documented and presented to the bankruptcy court for ultimate approval, aligned with the confirmation of a chapter 11 plan.
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In order to address its existing obligations to debtors, which encompass a $630 million obligation in unsecured loans maturing in May 2023, as well as a $1.1 billion commitment under an unsecured promissory note due in 2032, DCG is planning to enter into novel debt facilities and a partial repayment arrangement.
These liabilities encompass a first-lien facility with a two-year maturity totaling $328.8 million, along with a second-lien facility with a seven-year maturity totaling $830 million.
Additionally, DCG has agreed to make $275 million in payments in installments before the effective date of the plan, in accordance with the terms of the partial repayment agreement outlined in the filing.
Genesis, along with numerous other crypto lending entities, faced the impact of the extensive bear market in 2022, resulting in the filing for bankruptcy in January 2023.
The company found itself indebted to its top 50 creditors with a sum exceeding $3.5 billion, which included notable firms like Gemini and VanEck’s New Finance Income Fund.
In prior reports, Genesis suspended withdrawal operations in mid-November 2022, attributing the decision to unparalleled market turbulence caused by the collapse of the FTX crypto exchange.
The company cited an unexpectedly high volume of withdrawals that surpassed its available liquidity as a consequence of this incident.
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Decentralized exchange (DEX) platform dYdX is set to unlock approximately $14.02 million worth of its native DYDK tokens, distributing them across its community treasury, as well as offering rewards to traders and liquidity providers.
Scheduled for August 29, dYdX plans to release 6.52 million tokens, equivalent to 3.76% of the total circulating supply of DYDX.
Among these, a portion of 2.49 million DYDX tokens, valued at $5.36 million, will be assigned to the community treasury.
This fund will support various initiatives, including grants for contributors, community-driven projects, and liquidity mining efforts.
The remaining 4.03 million DYDX tokens will be divided between liquidity provider rewards and trading rewards.
Liquidity providers are set to receive 1.15 million tokens, totaling $2.47 million, while trading rewards will be granted 2.88 million tokens valued at $6.18 million.
This initiative follows a previous unlock event on August 1, which followed a similar fund allocation pattern.
Insights from TokenUnlocks reveal that investors hold the largest share at 27.7%, trailed by trading rewards at 20.2%, and the community treasury at 16.2%.
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DYDX has a total token supply capped at 1 billion tokens, with over 75% of these tokens currently locked.
Antonio Juliano, the founder of DYdX, has recently advised cryptocurrency entrepreneurs to explore opportunities in international markets beyond the United States.
Juliano underlines that crypto startups could experience accelerated growth in more accommodating foreign markets.
He suggested that, given the challenges and compromises associated with serving US customers, crypto builders should temporarily divert their focus away from the US market and consider re-entry after 5-10 years.
Juliano emphasizes that a substantial portion of the crypto market is situated overseas, thus encouraging innovators to discover product-market fit and innovate in these regions before returning to the US market with increased leverage.
Juliano’s perspective arises from the sluggish progress of US crypto regulation.
He believes that the crypto sector’s influence on US policy would strengthen with further growth and development.
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A federal judge has overturned the United States Securities and Exchange Commission’s (SEC) denial of Grayscale Investments’ exchange-traded fund (ETF) proposal for its Bitcoin Trust.
However, experts caution that this ruling does not guarantee the immediate approval of the first Bitcoin ETF in the country.
Judge Neomi Rao of the U.S. Court of Appeals for the District of Columbia Circuit ruled on August 29 that Grayscale’s Bitcoin ETF plan was “materially similar” to already approved Bitcoin futures exchange-traded products by the SEC.
Rao’s decision largely criticized the SEC’s reasoning for rejecting Grayscale’s ETF, which was based on the ETF not being “designed to prevent fraudulent and manipulative acts and practices.”
Consequently, the matter will be sent back to the SEC for further review.
The U.S. SEC has consistently rejected applications for spot cryptocurrency ETFs thus far. Various applications, including those from BlackRock, ARK Invest, Bitwise Asset Management, and others, are currently under review.
The commission retains the authority to delay decisions on these applications, potentially postponing approvals until March 2024.
The SEC has not yet publicly commented on the appeals court’s ruling, but reports suggest that the commission will assess the case to determine its subsequent steps.
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While the SEC may contest the ruling, experts speculate that Grayscale’s initial triumph might set a precedent for future approvals.
ETC Group’s CEO, Tim Bevan, expressed confidence that the victory would pave the way for U.S. spot Bitcoin ETFs despite an anticipated SEC appeal.
He predicted a likely mass approval of applications meeting requirements, possibly occurring in the first quarter of 2024.
Alex Adelman, CEO and co-founder of Lolli, contended that the appeals court’s decision would pressurize the SEC to reconsider its stance on spot Bitcoin ETFs.
Adelman perceived the surge in BTC price following the news as a “vote of confidence” in investment products linked to Bitcoin.
The Crypto Council for Innovation (CCI) spokesperson noted that the ruling broadens the scope for various investors to introduce spot Bitcoin vehicles in the U.S., bringing spot Bitcoin ETFs closer to potential launch.
The next steps for Grayscale or the SEC remain uncertain. Grayscale could rework its application to align more closely with a Bitcoin futures-linked ETF.
Alternatively, the SEC might opt for an “en banc” hearing involving all judges on the D.C. circuit, rather than the three who presided over the Grayscale case.
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Georgetown, Cayman Islands, August 30th, 2023, Chainwire
Multiple core contributors of Quickswap, celebrated for their success on Polygon, have launched their next venture: Kinetix Finance on Kava Chain. Kava Chain is a Layer-1 Cosmos-Ethereum interoperability blockchain. The Kinetix Finance perpetual exchange is tailored for users eager to leverage trade without the limitations of traditional centralized exchanges.
Kinetix’s innovative Perpetual Market allows users to leverage trade on the Kava Chain. The Perpetual Market meets the rising demand for decentralized trading solutions, offering users leveraged exposure to crypto assets like KAVA, axlETH, axlWBTC, ATOM, and USDt all while ensuring utmost transparency and security.
“The Perpetual Market is not just another trading platform — it is a reflection of Kinetix’s dedication to providing decentralized solutions that empower our users. With this platform, we’re offering a unique, secure, and efficient way to leverage trade on the Kava Chain,” said Kinetix team lead Alexi Atlas.
At the heart of Kinetix’s Perpetual Market is the distinctive liquidity pool system, KLP. LPs can offer any of the initial five supported assets: KAVA, axlETH (ETH), axlBTC (BTC), ATOM, and USDT. In return for contributing these tokens, participants receive KLP, a special liquidity token representing the entire basket. This decentralized structure, combined with the protocol’s AMM, facilitates leverage trading, allowing users to borrow based on the value of their collateral.
“Kinetix’s Perpetual Market boasts a suite of features tailored to cater to sophisticated DeFi users. Its decentralized nature guarantees that positions of any size can be taken with clarity and safety,” said Scott Stuart, Kava Chain Co-founder. “And the KLP token is a nod to traditional liquidity pool systems, ensuring familiarity and ease of use for traders.”
For more updates, follow Kava Chain and Kinetix Finance on X (fka Twitter).
About Kava
Kava Chain is a secure, lightning-fast Layer-1 blockchain that combines the developer power of Ethereum with the speed and interoperability of Cosmos in a single, scalable network. Committed to fostering innovation and growth, Kava Chain is a trusted choice for developers and users worldwide.
About Kinetix
Kinetix Finance is building a DeFi Hub featuring perpetual futures trading and the most sophisticated trading instruments on Kava, connecting the major building blocks of decentralized finance. Your best trade, every trade.
Contact
Media Manager
Guillermo Carandini
Kava
[email protected]
Right now, it seems that the sporting sector is undergoing a huge transformation. A lot of this comes down to the lasting impact of the pandemic. Even though it has caused a lot of challenges for the industry, it has also sped up the adoption of new technologies. This can include the blockchain. At the end of the day, the use of blockchain technology has become very popular within the sporting industry and this offers new opportunities for clubs and fans.
When you break everything down, you will soon see that blockchain technology is a decentralised ledger and it is able to provide a lot of transparency and security for a number of transactions. The tech has a lot of applications too, including sports. You can use it for ticket sales as well as fan engagement.
Opportunities to Generate Revenue
One very important thing to remember is that clubs now have the chance to generate as much revenue as they want. When utilising blockchain technology, European teams have been able to gain over $200 million in revenue, from tokens that are sold on Socios.
This new stream of revenue has helped clubs to recover some of the losses that they might have incurred during the pandemic. Another area where blockchain could possibly revolutionise the area is through sports betting. By using blockchain, sports can become way more transparent. It can also be used to eliminate the risk of fraud, and any negative stigma that might be associated with sports betting. This helps to provide a much safer environment for fans.
Transforming Fan Engagement
One thing to know about football and football live stream providers is that blockchain could revolutionise the way things are done. Web3 is now coming out and blockchain technology could easily drive the adoption of a way more decentralised internet. The sports sector really is one of the leading industries that is able to benefit from the power of blockchain too which is great.
Juan Mata has been exploring the blockchain for quite some time and he has also explored a lot of charitable causes as well. The Common Goal initiative looks to use blockchain as it encourages people to take part in various social organisations.
This happens across the world. Through the Common Goal, it seems that Mata is able to make the world a better place and he also wants to increase transparency where possible. He has the aim of being able to increase the trust that people have in the sport and this is great to say the least.
The Use of Blockchain in Sport
Right now, it would seem that blockchain has a lot of use within the sporting world. It is in the early stages but the potential is great. This kind of tech could well account for the opportunities present and it is being valued in the trillions. The sporting sector is increasing the surface of possibilities and it is phenomenal to think about what blockchain technology could bring.
In conclusion, it would seem that the use of blockchain in terms of fan engagement could well be transforming the sporting industry. It’s a win-win for both clubs and it is also a w
in for fans too. It offers a new transformative landscape and you also have the emergence of Web3 as well. This is blockchain technology that drives the adoption of a user-focused internet. The sporting industry is one of the many that are able to benefit from the power of blockchain tech and it is of no surprise to see that things are only going to grow from here.
Who knows what the future holds or what is going to happen next, but with that in mind, more has to be done to make sure that the sector keeps on track with its current pacing.