The Protocol: Insights into the Latest in Crypto
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Network News
Tyler and Cameron Winklevoss with their father, Howard (Winklevoss family)
Trump’s Crypto Venture Unveiled
In a much-anticipated announcement, former President Donald Trump unveiled his new crypto venture, World Liberty Financial. The announcement did not disappoint traders on the Polymarket prediction-betting site, who had previously wagered that the project would indeed announce plans for a new token. This token, with the ticker symbol WLFI, was confirmed by Trump’s sons, Don Jr. and Eric, during an X Spaces discussion.
However, as the two-hour session unfolded, it became less clear what the actual functions of World Liberty Financial would be. A critical piece of information emerged from CoinDesk reporters, including Sam Kessler, who acquired a draft white paper suggesting that World Liberty Financial could be closely related to a DeFi project known as Dough Finance. This project had previously struggled to gain traction and was notably hacked for $2 million.
Zak Folkman and Chase Herro, who were pivotal figures in Dough Finance, acknowledged their involvement in the new venture during the X Spaces event. The session’s lead moderator, Rug Radio’s Farokh Sarmad, expressed surprise that Trump found time to participate, given his busy schedule filled with political rallies, debates, and other commitments, including a recent incident in Florida.
Amidst the excitement, Politico Morning Money raised concerns about the risks Trump faces by embracing this business venture so close to an election. Eric Trump emphasized the need for decentralized finance to be more user-friendly, recounting his difficulties with “looping Ethereum on Aave,” the leading DeFi lending platform. Notably absent from the dialogue was a discussion on the potential risks associated with hacks, exploits, and vulnerabilities that are often at the forefront of blockchain architecture conversations. Eithan Raviv, CEO of Israeli crypto-recovery firm Lionsgate Network, highlighted significant security concerns tied to the project, such as a lack of transparency and unclear asset protections.
Vitalik Buterin’s Decentralization Standards
In a noteworthy development, Ethereum co-founder Vitalik Buterin announced on X that he would refrain from mentioning projects that do not meet a specific decentralization threshold. He outlined that only projects achieving at least “Stage 1” decentralization, as defined in a blog post he published years ago, will be acknowledged in his future communications. Buterin stated, “Starting next year, I plan to only publicly mention (in blogs, talks, etc) L2s that are stage 1+,” emphasizing that personal investments or friendships would not influence his decisions.
SEC Takes Action Against Pig Butchering Scams
In a significant crackdown, the U.S. Securities and Exchange Commission (SEC) has filed lawsuits against three individuals and five companies for allegedly orchestrating pig butchering scams. This type of scam, where fraudsters befriend victims via text-based apps and convince them to invest in fictitious crypto platforms, has become increasingly prevalent. The SEC’s actions aim to protect unsuspecting investors from these confidence-based scams.
Additionally, the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) has imposed sanctions against a prominent Cambodian businessman linked to serious human rights abuses tied to a pig butchering scam operation in Southeast Asia. This development underscores the increasing scrutiny and action taken against individuals and entities involved in fraudulent activities.
Bhutan’s Bitcoin Accumulation
The small Himalayan nation of Bhutan, with a population of fewer than 1 million, has reportedly accumulated over $780 million in Bitcoin. This impressive figure accounts for nearly a third of the nation’s GDP. Unlike most governments, Bhutan’s Bitcoin holdings do not stem from law enforcement asset seizures but rather from an increase in Bitcoin mining operations that have significantly ramped up since early 2023, according to blockchain analysis platform Arkham.
Winklevoss Donation to Grove City College
In a remarkable initiative, Howard Winklevoss, father of the renowned Winklevoss twins, is donating $4 million in Bitcoin to Grove City College. This pioneering donation marks a significant moment in the intersection of academia and cryptocurrency. Winklevoss expressed that his interest in sound money and the Austrian school of economics was cultivated at Grove City College, where he studied under Hans Sennholz, a noted free-market economist with ties to Ludwig von Mises.
Ethereum’s Upcoming Upgrade: Pectra
The Ethereum community is buzzing with anticipation for the upcoming upgrade known as Pectra. This major software update is particularly notable as it’s poised to be Ethereum’s largest hard fork to date. However, developers have recognized that the extensive list of priorities may necessitate a division of the upgrade into two parts to manage complexity and reduce the risk of bugs.
During a recent All Core Developers call, the possibility of splitting the Pectra upgrade was discussed. Parithosh Jayanthi, an Ethereum Foundation DevOps Engineer, indicated that this strategic move could enable faster delivery of both parts of the upgrade while mitigating potential risks associated with deploying numerous features simultaneously.
Market Insights and Future Developments
As the crypto landscape continues to evolve, investor interest in blockchain-based tokenization is reflected in the value of on-chain real-world assets (RWAs). According to a report by Binance Research, the market value of these assets has climbed past $12 billion, excluding stablecoins, demonstrating a growing trend among investors looking to leverage the benefits of blockchain technology for traditional asset tokenization.
Conclusion
The developments in the crypto space are rapid and multifaceted, ranging from new ventures and regulatory actions to significant donations and technological upgrades. As the industry matures, stakeholders must navigate the complexities and emerging challenges while capitalizing on the opportunities that blockchain technology presents.
