EDX, a recently launched cryptocurrency exchange, is reportedly preparing to switch its custody provider from Paxos Trust to Anchorage Digital.
The exchange, which received support from prominent traditional finance entities like Citadel Securities, Fidelity Digital Assets, and Charles Schwab, operates on a noncustodial business model aimed at eliminating conflicts of interest.
EDX currently facilitates trading in two cryptocurrencies, Bitcoin and Bitcoin Cash.
Notably, Bitcoin Cash has experienced significant growth since the exchange’s inception, with a 70.43% increase over the past week and a remarkable 101.36% surge in the last month.
Following the exchange’s announcement of its partnership with Paxos in October, the United States Securities and Exchange Commission proposed stricter custody regulations for crypto firms.
Paxos, holding a BitLicense from the New York Department of Financial Services, faced an investigation earlier this year for undisclosed reasons.
Additionally, Paxos obtained preliminary conditional approval for a U.S. bank charter from the United States Comptroller of the Currency (OCC) in 2021, but that approval reportedly lapsed by the end of March.
Anchorage Digital, on the other hand, became the first crypto firm to receive a national trust bank charter from the OCC in January 2021.
However, it faced regulatory issues a year later due to Anti-Money Laundering deficiencies and subsequently agreed to a consent order.
Shortly thereafter, Anchorage Digital formed a custody network with prominent crypto exchanges including Binance.US, CoinList, Blockchain.com, Strix Leviathan, and Wintermute.
EDX has plans to introduce EDX Clearing, a clearinghouse designed to settle trades executed on the EDX Markets platform, later this year.
While EDX declined to comment on the change of its custody provider, Anchorage Digital did not respond to requests for comments regarding the matter.
The decision to switch custody providers signifies EDX’s commitment to establishing a secure and compliant infrastructure for its users.
With the support of reputable financial heavyweights and the intention to introduce a clearinghouse, EDX aims to enhance its trading platform and ensure a seamless experience for cryptocurrency traders.
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The Sui network and its native SUI token have faced allegations of unlocking and “dumping” SUI staking rewards on Binance, but the team behind the project has vehemently denied these claims.
In a series of tweets on June 27, the Sui Foundation refuted the accusations and stated that no staking rewards or other tokens from locked or non-circulating staked SUI were sold on Binance or any other platform.
The foundation emphasized that all insider token allocations adhere to the lock-up periods and transfer restrictions set forth in their contracts.
Sui operates as a decentralized proof-of-stake blockchain, allowing users to stake their SUI tokens in exchange for more SUI through the proof-of-stake mechanism.
Unlike some other platforms, Sui does not impose a minimum staking period.
The foundation’s denial came in response to claims made by a pseudonymous crypto commentator known as DeFiSquared on Twitter.
DeFiSquared alleged that the Sui Foundation had been transferring staking rewards from locked and non-circulating SUI to Binance without any restrictions.
While Sui argued that the transactions were subject to contractual lock-ups, DeFiSquared argued that the SUI tokens could be unlocked without limitations.
DeFiSquared further claimed that the Sui Foundation’s wallet address, “0x341f,” transferred 3.125 million SUI tokens in staking rewards to three separate addresses, which eventually ended up on Binance after multiple transfers.
They speculated that this process was done to obscure the selling or potentially distribute the funds among team members.
The commentator also raised concerns about SUI’s sell pressure and alleged that the foundation was inflating the token supply by approximately 20% per month for non-foundation token holders.
Sui’s blockchain aims to provide users with high transaction throughput at low fees, as outlined by Mysten Labs, the creators of the Sui Foundation.
At the time of writing, the SUI token has a market capitalization of $427.7 million, with approximately 604 million tokens in circulation.
Its current trading price is $0.70, reflecting a 2.4% decline in the past 24 hours.
The Sui Foundation has announced its intention to release a detailed projection of the token release schedule soon.
According to the tokenomics dashboard Token Unlocks, the next unlock of 61 million tokens ($43 million) is slated for June 3.
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The lower house of the North Carolina General Assembly has approved a bill that paves the way for the state to study the feasibility and advantages of holding Bitcoin.
The bill, which passed the North Carolina House of Representatives on June 28, would allocate $50,000 for a study to explore the potential acquisition, secure storage, insurance, and liquidation of both gold bullion and virtual currencies, including Bitcoin.
The study aims to assess the impact of incorporating gold and cryptocurrency holdings into North Carolina’s financial assets.
It will investigate whether such holdings can act as a hedge against inflation and systemic credit risks.
Additionally, the study will examine whether including gold and crypto assets in the state’s portfolio could reduce volatility and increase overall returns.
One of the bill’s proposals involves the creation of a state-administered depository to house the digital asset holdings. Under this arrangement, North Carolina would act as the custodian of its crypto assets.
The study will also consider the costs and benefits associated with using a privately managed depository or utilizing the depository of another state.
The bill received support from the majority of the 120-member House, with 73 representatives voting in favor, 40 against, and seven absentees.
However, before the bill can become law or be vetoed, it must also pass through the Senate and receive final approval.
In a related development, on May 3, the North Carolina House unanimously passed a bill prohibiting payments to the state using a central bank digital currency (CBDC).
The legislation also forbids the United States Federal Reserve from conducting any future pilot CBDC tests in North Carolina.
Prior to that, on May 2, the Buncombe County Board of Commissioners in North Carolina passed a one-year moratorium on cryptocurrency mining.
This temporary ban reflects a growing concern over the environmental impact of mining operations.
As the bill progresses through the legislative process, North Carolina is demonstrating an increased interest in exploring the potential benefits and risks associated with cryptocurrencies, digital assets, and their role within the state’s financial infrastructure.
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Global investment firm BlackRock, known for managing $10 trillion in assets, has emphasized the significance of artificial intelligence (AI) in its mid-year outlook report.
The company sees AI as a “mega force” that could generate substantial returns for investors, particularly in today’s “unusual” market conditions.
BlackRock’s report highlights the increasing concentration of gains in the S&P 500, with only a few tech stocks driving the index.
The firm believes that investing in AI presents an opportunity to capitalize on this concentration. Despite challenging macroeconomic conditions, BlackRock’s investment team views AI as a major driver of returns.
The report identifies automation as the most apparent benefit of AI. While acknowledging the increased risk of automation for white-collar jobs, BlackRock suggests that the resulting cost savings could significantly enhance profit margins, especially for companies with high staffing costs and tasks that are easily automated.
Additionally, the firm recognizes the potential of AI-powered tools in leveraging proprietary data to create innovative models.
BlackRock also points out several key drivers of growth in the coming decade, including the global shift towards low-carbon economies, aging populations, and the rapidly evolving financial system.
The firm’s perspective on AI aligns with other voices in the investment industry. Matt Huang, CEO of Paradigm, a crypto investment firm, emphasized the compelling developments in the AI field and their significance.
However, not all commentators share the same bullish outlook on AI investments. Macro-finance commentator Financelot highlights that the recent AI boom, exemplified by the soaring shares of GPU manufacturer Nvidia, is largely driven by demand for AI-focused computing chips. He suggests that potential U.S. export restrictions on these chips could negatively impact the share prices of AI-related companies.
While BlackRock has shown enthusiasm for AI, recent developments have also seen the company turning its attention to Bitcoin.
The firm has submitted an application to the Securities and Exchange Commission for a spot Bitcoin Exchange Traded Fund (ETF), aiming to be the first to receive regulatory approval for such a product. Bloomberg analysts estimate BlackRock’s chances of approval at 50%.
In summary, BlackRock identifies AI as a powerful force that can drive significant returns for investors.
The firm sees automation, data leverage, and several macroeconomic trends as key factors contributing to AI’s growth potential.
However, there are differing opinions regarding the long-term sustainability of the AI boom, with concerns over the dependence on AI-focused computing chips.
BlackRock’s recent interest in Bitcoin further demonstrates its adaptability to emerging investment opportunities.
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Recent developments have raised concerns about the popular cryptocurrency Shiba Inu (SHIB) as significant outflows from the wallets of large investors have been detected by IntoTheBlock, a blockchain analytics firm.
This sudden shift in sentiment from bullish to bearish has grabbed attention. Since Monday, an astounding one trillion SHIB tokens have been withdrawn from the wallets of major investors, surpassing the inflow of 745 billion tokens.
Consequently, the netflow of Shiba Inu whales’ wallets over the past seven days has reached a disheartening -377.35 billion SHIB, indicating a substantial drop of half a trillion tokens from the previous day’s value.
Two key considerations emerge when examining the reasons behind the behavior of these large SHIB holders: fundamental and technical factors.
The first consideration revolves around the adoption of Shiba Inu and its associated projects, with Shibarium taking center stage.
Although Shibarium, a Layer 2 solution, is currently operating in a test network, the team behind it has remained tight-lipped, providing minimal information beyond cryptic Twitter messages.
The uncertainty surrounding the release of Shibarium on the main network may have prompted major holders to decrease their SHIB positions.
The second factor pertains to the price of the Shiba Inu token, which recently failed to surpass the critical resistance level of $0.0000084 per SHIB.
Despite a noteworthy rally, the token has experienced a 12% decline since then, leaving its trading status uncertain.
This ambiguity regarding the future price direction of SHIB may have discouraged significant whales, who typically exercise caution in their operations due to the substantial sums involved.
The question now arises: can Shiba Inu overcome these challenges and regain its momentum? The path forward for SHIB depends on addressing the concerns surrounding Shibarium’s release on the main network.
Transparent communication and timely updates from the project team would help instill confidence in the ecosystem and potentially attract back large investors.
Additionally, efforts to stabilize and elevate the token’s price beyond the critical resistance level could reignite bullish sentiment among investors.
As the Shiba Inu community awaits further developments, it is essential for stakeholders to closely monitor both the progress of Shibarium and the market dynamics affecting SHIB’s price.
By addressing these concerns and providing a clear roadmap for the future, Shiba Inu has the potential to restore investor confidence and reclaim its upward trajectory.
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FTX’s attempt to fill a $2 billion gap in its balance sheet has hit a snag as the sale of its $500 million stake in Anthropic, an artificial intelligence startup, has been temporarily halted.
According to Bloomberg’s sources on June 27, Parella Weinberg Partners, FTX’s advisory investment bank, decided to pause the sale despite the interest shown by multiple parties.
The sale of FTX’s stake in Anthropic would have been a significant step towards recovering funds for the bankrupt crypto exchange.
FTX’s restructuring chief, John Ray, stated in a report on June 26 that around $8.7 billion in user funds were misused, but they have managed to recover approximately $7 billion of that amount.
Before the sale was paused, several potential buyers had expressed interest in acquiring FTX’s stake in Anthropic. In early June, Semafor reported that FTX was actively promoting the AI firm to potential investors.
FTX had initially acquired $500 million worth of Anthropic stock prior to its bankruptcy in November, and with the current boom in the AI industry, the stake is expected to have significantly increased in value.
Anthropic itself has experienced substantial growth recently. In its most recent funding round, the company achieved a reported valuation of $4.6 billion and secured $450 million in investments.
Anthropic’s main product, an AI chatbot named “Claude,” has versatile applications in sales, customer service, and web searches.
The news of the sale pause comes shortly after Ray’s report revealed that FTX still had $2 billion to recover in assets.
The report highlighted the alleged misuse of customer funds, including thousands of dollars in grants for non-crypto-related projects, investments in venture capital firms.
A $243 million real estate portfolio in the Bahamas, and donations to non-profit organizations and a political action committee operated by Gabe Bankman-Fried, the younger brother of FTX co-founder Sam Bankman-Fried.
Cointelegraph reached out to Parella Weinberg Partners and Anthropic for comment but has not received an immediate response.
The delay in selling FTX’s stake in Anthropic adds another hurdle to the crypto exchange’s efforts to address its financial shortfall and rebuild its balance sheet.
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Drop Wireless, a trailblazer company specializing in decentralized physical infrastructure development, is thrilled to announce its partnership with NextEPC, a cellular core network development and private 5G network solution expert.
This collaboration will redefine and expand the cellular communications landscape, bridge the digital divide, and drive groundbreaking advancements in network infrastructure with a vision to provide decentralized 5G connectivity worldwide, including areas completely marginalized or underserved by centralized providers.
Drop Wireless and NextEPC will explore innovative technologies, enhance network scalability, and develop groundbreaking solutions that will reshape the future of cellular communications. By joining forces, Drop Wireless and NextEPC will unlock a wide range of compelling opportunities, including digital twins, AR gamification, IoT sensor monitoring, and pervasive edge computing.
The partnership will also enable the processing of vast amounts of data collected by devices in infrastructure facilities at the network edge, as well as facilitate seamless transfer to cloud networks. This approach will empower individuals and communities by delivering a true metaverse experience, combining ultra-real-time sensing with AI compute capabilities at the network edge.
Expanding connectivity worldwide
The collaboration between Drop Wireless and NextEPC has the potential to completely transform the cellular core network landscape. By combining Drop Wireless’ decentralized physical infrastructure with NextEPC’s expertise, the partnership aims to establish a new paradigm in network development. The combined efforts will facilitate the deployment of resilient, flexible, and cost-effective cellular networks.
“We are thrilled to join forces with NextEPC,” said Dr. Andrew Baek, CEO of Drop Wireless. “Their extensive experience in cellular core network development aligns perfectly with our vision of creating decentralized physical infrastructure. Together, we will unlock new possibilities for connectivity, enabling reliable communication in areas that were previously considered unreachable.”
Dr. Jihoon Lee, CEO of NextEPC, also expressed enthusiasm. “The partnership with Drop Wireless marks a significant milestone for us. By leveraging our expertise in cellular core network development, we can contribute to Drop Wireless’ mission of expanding connectivity and bridging the digital divide. We look forward to jointly developing cutting-edge solutions that will redefine the way networks are built and operated.”
Connectivity for all
Drop Wireless is at the forefront of the connectivity revolution by pioneering decentralized physical infrastructure. Their innovative approach enables seamless and robust network connectivity in challenging environments, remote areas, and disaster-stricken regions where traditional infrastructure is limited or non-existent.
By leveraging cutting-edge technologies, Drop Wireless empowers individuals and communities, granting access to critical services, information, and communication channels.
NextEPC brings an impressive wealth of knowledge and experience, boasting a proven track record in designing and constructing efficient and scalable cellular networks. They have developed cellular products for major global telecom operators.
Their expertise has earned them the trust of industry leaders worldwide. NextEPC’ s core team has extensive experience in cellular network development, including the inception of all IP-based fourth-generation mobile communications. Furthermore, NextEPC provides a comprehensive suite of 5G NR core network functionalities.
Expanding its ecosystem
This new collaboration agreement with NextEPC comes several months after Drop Wireless migrated its blockchain operations onto IoTeX’s layer one, adopting its W3bstream, the world’s first open, chain-agnostic data computational infrastructure. It makes Decentralized Physical Infrastructure Network (DePIN) deployment dramatically faster and cheaper.
“We’re excited to see Drop Wireless’ development progressing incredibly well and its partnership with NextEPC is testament to its commitment to advancing the decentralized communication landscape,” said Chai.
“Drop Wireless shares our vision to fast-forward the DePIN sector and transcend borders with the deployment of DePIN projects that, like them, will have a tremendous social impact.”
Drop Wireless and NextEPC are committed to making a global impact by ensuring connectivity for all, regardless of geographical location or infrastructure limitations.
By revolutionizing the way cellular networks are developed and operated, the partnership will bring transformative benefits to individuals and communities worldwide by revolutionizing the way cellular networks are developed and operated.
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Bitcoin miners are experiencing a significant surge in revenue sent to exchanges, according to a tweet by Glassnode, an on-chain analytics platform.
The platform reported that miners had sent a record-breaking $128 million to exchanges in the past week, which amounts to a staggering 315% of their daily revenue.
While there have been previous spikes in miner revenue during the 2021 bull run, this recent surge surpasses them all by a considerable margin.
Typically, miners send their Bitcoin profits to exchanges to cover expenses and secure their profits. Given that Bitcoin reached its highest price of the year, touching $31,185 on June 24, this past week presented an opportune time for miners to cash out.
CryptoQuant co-founder and CEO Ki Young Ju echoed this sentiment, noting that the current price-to-earnings ratio was attractive for miners to sell.
However, despite the increased activity from miners, Bitcoin’s price remains relatively stable above the $30,000 threshold.
The $31,000 price level poses a significant resistance for Bitcoin, as it failed to break it both in mid-April and late June.
If bulls are unable to make progress and miners continue liquidating their holdings, the possibility of future losses looms.
Although Bitcoin’s price has surged by over 88% year-to-date, miners still face numerous challenges.
Profitability has dropped by more than 30% since July of the previous year and has plummeted over 80% since the peak of the 2021 bull market.
Moreover, record hash rates of 377 EH/s and peak difficulty levels further compound the obstacles faced by Bitcoin miners.
With rising hash rates, difficulty levels, and energy costs, mining profitability has been negatively impacted.
Consequently, miners may reluctantly need to sell their hard-earned Bitcoin to cover expenses, a situation that is far from ideal.
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SYS Labs has today announced the launch of Rollux, an innovative EVM Layer-2 solution that is designed to optimize the performance of Ethereum network applications. It achieves this by harnessing the strength of Bitcoin, setting SYS Labs aside from its current competitors in the market.
Rollux is powered by Syscoin and its utility token $SYS. It functions as Syscoin’s Layer 2 and provides scope for huge scalability.
This cutting-edge EVM Layer-2 solution sets a new standard in the marketplace as the highest-performing EVM-rollup solution, “offering unparalleled speed, scalability, and affordability.”
In addition to boasting the fastest speeds, highest throughput at scale, and the lowest transaction fees, it is the only major rollup to offer merged mining with Bitcoin.
SYS Labs CEO Jagdeep Sidhu hailed the launch of Rollux, while emphasizing its primary benefits.
“Rollux is the embodiment of our shared vision and unwavering commitment. We’re delivering on our promise of speed, decentralization, security, affordability, and scalability — the core pillars of blockchain technology that we always believed were vital for fostering mass adoption,” Sidhu said.
Rollux is the first product to be developed and rolled out by SYS Labs, but other equally innovative blockchain solutions will be unveiled by the firm in due course.
It leverages the capabilities of SuperDapp, an AI-enhanced Web3 social platform, which has essential chat features, a built-in non-custodial wallet, and a mobile responsive version.
Furthermore, the ecosystem incorporates Pegasys DeFi exchange and AMM, Luxy NFT Platform, Pali Wallet (web & mobile), DAOSYS, and Camada, a noncustodial, regulatory-compliant crypto trading platform to accelerate mainstream investments and self-custody.
SYS Labs has already inked partnerships with several developers who will also be launching their own products on Rollux.
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Nevada’s Financial Institutions Division has taken further action against crypto custodian Prime Trust, following the filing of a cease and desist order, by petitioning for the appointment of a receiver.
In a recent filing on June 26, the regulator sought a temporary restraining order and the appointment of a receiver to Prime Trust Technologies, which includes its crypto custodian division.
The decision for receivership was agreed upon by Prime Trust due to the significant deficit between its assets and liabilities.
The petition emphasized the need for immediate action, citing the risk of “irreparable harm” to customers, the public, and the confidence in the cryptocurrency market.
The regulator expressed concerns over Prime Trust’s financial condition, stating that the custodian was unsafe and possibly insolvent.
The situation was expected to worsen as customers continued to withdraw from Prime Trust.
According to the filing, Prime Trust had engaged Fireblocks in 2019 to store all its crypto assets and underwent a change in management in 2020.
In January 2021, the custodian reintroduced legacy wallet forwarding addresses to customers due to limitations with Fireblocks.
Since December 2021, Prime Trust has been unable to access its users’ legacy wallets and had been purchasing crypto using customer funds.
The petition revealed that Prime Trust owed over $85 million in fiat currency to its clients but had only approximately $2.9 million available at the time of filing.
In terms of digital assets, the custodian’s liability amounted to over $69.5 million, with holdings of around $68.6 million.
The regulatory action came after Nevada’s financial watchdog issued a cease and desist order on June 21, citing Prime Trust’s deteriorating financial condition and its inability to fulfill customer withdrawals due to a shortfall of funds.
Following this development, BitGo, a wallet infrastructure provider and digital asset custodian, announced on June 22 that it would cancel its planned acquisition of Prime Trust.
The appointment of a receiver and the initiation of legal proceedings against Prime Trust highlight the seriousness of the situation.
The financial condition of the custodian has raised concerns among regulators and industry participants, who are keen to safeguard the interests of customers and maintain trust in the cryptocurrency market.
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