Today's news tips:
Former Chinese Vice Finance Minister Zhu Guangyao calls for more research into cryptocurrencies
Galaxy: BlackRock's spot Bitcoin ETF options still need approval from the US CFTC and OCC
Forbes: FTX bankruptcy proceedings are expected to inject a large amount of funds into the market in Q4, with total creditor distributions likely to be as high as $16 billion
CCData: It is expected that the Fedâs interest rate cut this year will result in a total reduction of $1.5625 billion in stablecoin interest income
Changpeng Zhao: Will continue to invest in blockchain, AI and other technologies, and devote more energy to charity and education
Worldcoin Expands Its Facial Recognition Technology to Guatemala, Poland, and Malaysia
Fully homomorphic encryption network Mind Network completes $10 million Pre-A round of financing
IntoTheBlock: 1% of Bitcoin supply is currently locked in DeFi
Regulatory News
Former Chinese Vice Finance Minister Zhu Guangyao calls for more research into cryptocurrencies
According to Sina Finance, the 2024 Tsinghua PBC Chief Economist Forum was held in Beijing on September 28. Zhu Guangyao, former vice minister of the Ministry of Finance, attended and delivered a speech. Zhu Guangyao called for attention to the study of the development of cryptocurrency, "It does have negative effects. We must fully recognize its risks and harm to the capital market, but we must study the latest changes and policy adjustments in the world, because it is a crucial aspect for the development of the digital economy." Zhu Guangyao reviewed the development of cryptocurrency. Over the past decade, the United States has always believed that cryptocurrency has great destructive power on international anti-money laundering and international anti-terrorist financing. In addition, the sharp fluctuations in the value of cryptocurrency have a huge impact on the international financial market, but this year, the US policy has undergone a major evolution. Zhu Guangyao introduced that Trump's campaign platform clearly included cryptocurrency, and he also publicly stated, "We must embrace cryptocurrency, otherwise China will replace us." The US Securities and Exchange Commission has also approved the listing of 11 Bitcoin ETFs in the stock market and futures market. Among emerging market countries and BRICS countries, Russia, South Africa, Brazil, and India have also taken action.
Galaxy: BlackRock's spot Bitcoin ETF options still need approval from the US CFTC and OCC, and the trading time is still undetermined
Galaxy posted on the X platform that the U.S. Securities and Exchange Commission (SEC) has approved Nasdaq to list and trade spot Bitcoin ETF options, but it still needs to obtain approval from the U.S. CFTC (U.S. Commodity Futures Trading Commission) and OCC (U.S. Office of the Comptroller of the Currency). There is no definite timetable yet, so the exact start date of trading is still pending. It is reported that there are certain restrictions on spot Bitcoin ETF option trading, such as strict monitoring of market manipulation and clear position limits. Nasdaq ISE plans to cooperate with other exchanges to integrate these requirements with existing monitoring systems. Galax added that in the long run, spot Bitcoin ETF options can stabilize Bitcoin's volatility, enhance investor confidence, and deepen market liquidity. Coupled with the digital asset custody service recently launched by Bank of New York Mellon, the institutionalization of Bitcoin is accelerating.
Project News
Forbes: FTX bankruptcy proceedings are expected to inject a large amount of funds into the market in Q4, with total creditor distributions likely to be as high as $16 billion
Further adding to the positive outlook for the crypto market's fourth quarter, the ongoing FTX bankruptcy process is expected to inject a large amount of capital into the market in the fourth quarter, according to Forbes. It is expected that the total creditor distribution could be as high as $16 billion and will begin in early October. Although rumors of an immediate payment on October 1 remain speculative, its latest press release confirmed that the final voting results will be announced on October 7, 2024, before the confirmation hearing. Given that more than 95% of voting creditors initially support FTX's revised reorganization plan, the plan aims to repay bankruptcy claims in full. These payments will be made in U.S. dollars, most of which are expected to flow back into the market, with Bitcoin expected to receive the largest share.
In addition, the article analyzes that factors favorable to Bitcoin's fourth-quarter trend include the U.S. SEC's quick approval of IBIT's option trading several months in advance and the support of looser global monetary policies. The article states that these factors together indicate that Bitcoin ETFs may regain momentum and see record capital inflows before the end of the year. As price movements begin to align with ETF capital flows, conditions are ripe for Bitcoin to usher in an extremely bullish market before the end of 2024.
CCData: It is expected that the Fedâs interest rate cut this year will result in a total reduction of $1.5625 billion in stablecoin interest income
According to Cryptonews, the Federal Reserveâs recent decision to cut interest rates for the first time since March 2020 is expected to affect the income streams of the five major centralized stablecoins. According to a report released by CCData on September 27, these stablecoins hold a total of nearly $125 billion in U.S. Treasury bonds, and for every 50 basis points (bps) in interest rate cuts, they could lose about $625 million in interest income.
The report shows that U.S. Treasuries account for 80.2% of the reserves held by major stablecoins. Data from the CME FedWatch tool shows that the market expects a total rate cut of 75 basis points by the end of 2024, including a 50 basis point cut in November and another 25 basis point cut in December. If these forecasts come true, stablecoins may face an additional loss of $937.5 million in revenue, bringing the total potential losses caused by the Fed's easing policy to $1.5625 billion.
Among the affected stablecoins, Tether's USDT holds the largest share of U.S. Treasury-backed reserves, totaling $93.2 billion, including U.S. Treasuries and repurchase agreements. It is followed by Circle's USD Coin (USDC), which holds $28.7 billion in U.S. Treasuries through the Circle Reserve Fund. Other stablecoins, such as First Digital USD (FDUSD), PayPal USD (PYUSD), and TrueUSD (TUSD) hold smaller Treasury positions, at $1.83 billion, $634 million, and $502 million, respectively. Despite these potential financial setbacks, the stablecoin market has shown resilience. According to CCData data, in September, the total market value of stablecoins increased by 1.50% to $172 billion, marking 12 consecutive months of growth.
Changpeng Zhao: Will continue to invest in blockchain, AI and other technologies, and devote more energy to charity and education
Changpeng Zhao, former CEO of Binance, posted on X Platform: "I know some of you may have a lot of questions. I won't answer all of them. I want to thank everyone for their support. It means a lot to me and keeps me strong in my darkest moments. Some quick updates/thoughts: Giggle Academy is going well and it will be a big part of my life in the next few years. I will continue to invest in blockchain/decentralized technology, artificial intelligence, and biotechnology. I am a long-term investor who focuses on impact rather than returns. I will also invest more time and money in charity (and education). I have some rough ideas. I'm also writing a book. I think I'm about two-thirds done. Writing a book is much harder than I expected, but I'm going to stick with it. Binance seems to be doing well without me, which is great, and it's every founder's dream."
Zilliqa: Network issues again, all funds are safe
The public chain Zilliqa posted on the X platform that the network has encountered a new problem. The team has discovered the error and will resolve it as soon as possible. All funds are safe. The Zilliqa team is investigating the problem, debugging and trying to restore the network.
CATIZEN launches $CATI token recharge channel and updates the airdrop mechanism for the next quarter
CATIZEN has officially launched the CATI token recharge channel and updated the token application scenarios. Using CATI tokens to purchase assets in the CATIZEN Ecological Application Center can enjoy a 30% discount. The function launched simultaneously with this update also includes its participation and distribution mechanism for the next quarter's airdrops, the airdrop station order. CATIZEN will distribute 1% of its CATI airdrops (about 10 million CATI) every 90 days in the future. Every player can participate in the airdrop battle order event and will be able to view their airdrop share in real time.
Japanese listed company Remixpoint has recently purchased crypto assets worth approximately $5.27 million
According to Coinpost, Japanese listed company Remixpoint officially disclosed the details of its latest round of crypto asset investment on September 27, spending a total of 750 million yen (about 5.27 million US dollars) to purchase 64.4 BTC (600 million yen), 130.1 ETH (50 million yen), 2,260.5 SOL (50 million yen), and 12,269.9 AVAX (50 million yen). This investment is the first batch of the company's "total 1.5 billion yen (about 10.55 million US dollars) virtual currency purchase plan" announced on September 26, aiming to reduce the risk of yen depreciation through diversified investment and optimize cash management strategies.
At the board meeting held on September 26, Remixpoint's decision-makers unanimously agreed to allocate part of the surplus funds to virtual currencies to diversify the risk of the asset portfolio and reduce the exposure to the yen, while expecting to enhance the company's financial resilience through this move. The company has clarified its investment and management strategy, that is, Bitcoin accounts for the majority of the total amount of 1.5 billion yen (1.2 billion yen), while 100 million yen will be invested in Ethereum, Solana and Avalanche respectively. These will be carried out in stages, with the goal of completing them by the end of this year based on market conditions.
Worldcoin Expands Its Facial Recognition Technology to Guatemala, Poland, and Malaysia
According to Bitcoin.com, the decentralized identity project Worldcoin announced that it has launched Orb verification (i.e. iris scanning) services in Guatemala, Poland and Malaysia, and launched the Face Auth feature. Face Auth is a new feature of its World ID suite, allowing other applications to verify whether the person using the ID is the same person who has been verified through the orb device (iris scanning device) at the Worldcoin center. This process only uses information from the user's mobile phone, protecting user data privacy and preventing possible fraud due to device theft.
FTX Creditors: FTX Creditors Can Only Recover â10-25% of Cryptocurrencyâ
According to Cointelegraph, according to the latest revised bankruptcy documents shared by FTX creditor Sunil Kavuri, creditors can only recover 10% to 25% of their cryptocurrency investments, and the compensation is based on the application date price far below the current market, such as Bitcoin was only about $16,000 at the time. Kavuri said that this decision aroused the anger of creditors, and many customers fell into mental distress due to the loss of their life savings, and their property has not been returned to them so far. Other creditors echoed, accusing FTX of being a scam and saying that they were doubly deceived. Kavuri also pointed out that FTX's former CEO SBF misappropriated customer funds to repay outstanding debts, violating the terms of service. Previously, FTX's bankruptcy estate had reached an agreement with Emergent Technologies, founded by SBF, to repay debts with $600 million in Robinhood stocks. In addition, the bankruptcy reorganization plan faces multiple challenges, including questions from the U.S. trustee and the SEC, who believe that the plan provides too much legal protection for managers and may object to the stablecoin compensation plan.
The victim who was phished for more than 12,000 spWETH sent an on-chain message to the phisher: If you agree to a refund, you are willing to provide a 20% reward
Today, it was revealed that the victim who was phished for 12,000 spWETH sent a message to the phisher on the chain, proposing to solve the problem in a "peaceful way (peaceful resolution)", and was willing to provide a 20% reward if the phisher agreed to return the funds. Earlier news, an address lost 12,083 spWETH after signing the "permit" phishing signature, worth about 32.43 million US dollars. Later, Lookonchain posted on the X platform that the address was suspected to be related to Cobo co-founder and CEO Shenyu (@bitfish1).
Next week's macro outlook: Non-farm payrolls week is coming, multiple key data will be released, and the Fed Chairman will speak
According to Jinshi, next week will usher in the US "Non-Farm Week", and a number of key data are expected to be released. The following are macro events worthy of attention: 09:30 on Monday, China's official manufacturing PMI; 01:00 on Tuesday, Federal Reserve Chairman Powell delivered a speech at the National Association for Business Economics; 22:00 on Tuesday, US September ISM Manufacturing PMI; 23:00 on Tuesday, 2024 FOMC voting member, Atlanta Fed President Bostic and Federal Reserve Board member Lisa Cook co-chaired the meeting; 06:15 on Wednesday, 2024 FOMC voting members Bostic, Barkin, and 2025 FOMC voting member Collins participated in a group event; 20:15 on Wednesday, US September ADP employment; 21:00 on Wednesday, 2024 FOMC voting member, Cleveland Fed President Hammack delivered a speech; 22:05 on Wednesday, 2025 FOMC voting member, St. Louis Fed President Musallem delivered an opening speech at an event; At 23:00 on Wednesday, Federal Reserve Board Governor Bowman will deliver a speech; at 20:30 on Thursday, the number of initial jobless claims in the United States for the week ending September 28 will be released; at 22:40 on Thursday, Minneapolis Fed President Kashkari and Atlanta Fed President Bostic will hold a fireside chat on an inclusive economy; at 20:30 on Friday, the U.S. September seasonally adjusted non-farm payrolls (10,000 people); at 21:00 on Friday, FOMC permanent voting member and New York Fed President Williams will deliver an opening speech at a meeting held by the New York Fed; at 20:30 on Friday, the U.S. unemployment rate in September.
Financing News
Fully homomorphic encryption network Mind Network completes $10 million Pre-A round of financing, with Animoca Brands and others participating
According to official news, the fully homomorphic encryption network Mind Network announced the completion of a $10 million Pre-A round of financing. Major investors include Animoca Brands, Arkstream Capital, Cogitent Ventures, G Ventures, MH Ventures, Master Ventures, Moonhill Capital, SwissBorg Ventures, IBC Group, etc. This round of financing also attracted well-known angel investors, including Ether.fi CEO Mike Silagadze, as well as well-known figures in the encryption field Mario Nawfal, Mr Block and Kyle Chassé. After this financing, Mind Network plans to expand its business by integrating more staking protocols and continue to release supporting infrastructure. Users holding staked assets from partner protocols can redeem vFHE on Mind Network and participate in FHE voting.
According to reports, Mind Network is a fully homomorphic encryption (FHE) layer for AI and POS networks. This layer accepts re-staking tokens from ETH, BTC, and AI Blue Chip tokens, and operates as an FHE verification network, providing consensus, data, and crypto-economic security for POS networks such as decentralized AI, DePIN, EigenLayer, Symbiotic, and Babylon AVS. Mind Network has previously been supported by Binance Labs, Hashkey, Big Brain, and Chainlink, and has received funding from the Ethereum Foundation for its FHE research on Ethereum.
Important data
An Ethereum IC0 whale recharged 2,990 ETH to Kraken again, equivalent to about 7.97 million US dollars
According to the monitoring of on-chain analyst @ai_9684xtpa, the ancient whale with 150,000 ETH in Ethereum IC0 recharged 2,990 ETH (worth $7.97 million) to Kraken nine hours ago, which is suspected to be a sale. In the past six days, he has transferred a total of 15,000 ETH to the exchange, with a total value of $39.33 million; so far, all the ETH in this address has been sold, and the remaining 4 addresses still hold 60,000 tokens.
A whale has spent 27,848 SOLs to buy MOODENG so far, becoming the second largest holder of the token
According to Lookonchain monitoring, a whale took out 2,000 SOL (about $311,000) from OKX to buy MOODENG again. So far, the whale has spent 27,848 SOL (about $4.34 million) to buy 17.73 million MOODENG at a price of $0.245, becoming the second largest holder of MOODENG.
A certain address once bought MOODENG at a cost of 6 SOLs, and the current floating profit is more than 10,000 times
According to Lookonchain monitoring, a certain address spent 6 SOL (about US$815) to buy 30.1 million MOODENGs on the 17th. It is currently worth US$9.4 million, and the profit of this transaction has reached 11,534 times.
After hitting a new high of $320 million last night, MOODENG's market value has now fallen back to $285 million
Coingecko data shows that the market value of Solana Meme coin MOODENG, inspired by the Thai Internet celebrity hippopotamus "Moo Deng", has fallen back to $285 million after hitting a new high of $320 million last night. MOODENG is currently trading at $0.288, up 7.5% in the past 24 hours.
This week, the total net inflow of BTC ETFs reached US$1.1085 billion, and the total net inflow of ETH ETFs reached US$85 million.
Lin Chen, head of Deribit's Asia-Pacific business, posted on Among them, BlackRock turned from the previous 0 changes to net inflows for five consecutive days, accumulating a total of 7808.46 BTC, accounting for 45% of the total net inflows. From the side, it reflects that large institutional investors have gradually regained their confidence in buying this week, and market sentiment has picked up. This week, the ETH ETF showed a net inflow overall, with a total weekly net inflow of US$85 million (a total of 31,522.88 ETH was added). Among them, the main force of selling is still ETHE. As of now, ETHE holds a total of 1,673,190.24 ETH, and has sold approximately 942,039.67 ETH in total, accounting for 36.03% of the total. In addition, other institutions have shown net inflows this week, and the overall capital flow has maintained a relatively healthy trend.
IntoTheBlock: 1% of Bitcoin supply is currently locked in DeFi
According to IntoTheBlock, 1% of the current Bitcoin supply is locked in decentralized finance (DeFi). This growth is driven by the market's increased demand for Bitcoin yields, especially the impact of Coinbase's Bitcoin-pegged token $cbBTC.
