Crypto News Roundup: July 19, 2023 📰

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19 Jul 2023

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Welcome to the crypto news roundup, where I bring you the most important headlines from the current web page context.

In this edition, I will cover topics such as stablecoin payments, crypto custodian receivership, metaverse funding, dormant ETH movement, and gaming VC hiring. Let’s dive in!

South Korea’s Shinhan Bank Tests Stablecoin Payments on Hedera Network 🇰🇷

Shinhan Bank, one of the largest banks in South Korea, has completed its second proof-of-concept (PoC) for stablecoin remittance payments using Hedera’s distributed ledger technology (DLT). The project aims to lower fees and settlement times for cross-border payments.

Stablecoins are digital tokens that are pegged to a fiat currency or a basket of assets, such as the US dollar or gold. They offer a low-cost, fast, and reliable way to transfer value across borders, without the volatility of cryptocurrencies or the intermediaries of traditional payment systems.

Shinhan Bank partnered with Hedera Hashgraph, a public DLT platform that claims to offer high scalability, security, and decentralization. Hedera uses a consensus mechanism called hashgraph, which is based on a gossip protocol that allows nodes to quickly and efficiently exchange information.

The PoC involved sending stablecoins from Shinhan Bank’s branch in Singapore to its headquarters in Seoul. The transaction was completed in less than 10 seconds, with a fee of less than $0.01. The PoC also demonstrated the interoperability of different stablecoins, such as USDC, HBAR, and KLAY.

Byunghee Kim, who leads blockchain at Shinhan Bank, stated,

“Stablecoins offer a low-cost, fast, and reliable way to transfer value across borders, which can help to increase financial inclusion and improve access to financial services for individuals and businesses in underserved communities.”

Shinhan Bank plans to launch its own stablecoin called Shinhan Digital Currency (SDC) by the end of this year. The bank hopes to leverage Hedera’s network to expand its global remittance services and offer more value-added features to its customers.

Source: The Block

Prime Trust Put into Receivership Amid Shortfall in Funds, Charges It Misused Customer Money ⚖️

Prime Trust, a crypto custodian and financial services provider based in Nevada, has been put into receivership by the state’s Financial Institutions Division (NFID). The approval comes after the state ordered the company to cease all activities amid a shortfall in customer funds and accusations that it misused money from its customer accounts to satisfy requests for withdrawals from its “legacy wallets.”

A custodian is an entity that holds and safeguards assets on behalf of its clients. Crypto custodians are responsible for storing and securing cryptocurrencies and other digital assets using various methods such as cold storage, multisig wallets, or encryption.

According to the NFID’s petition, Prime Trust had over $1 billion in customer assets under custody as of June 30th. However, the company allegedly failed to maintain adequate reserves and liquidity to meet its obligations. The NFID also claimed that Prime Trust used customer funds from its omnibus accounts to purchase cryptocurrencies from its legacy wallets without proper authorization or disclosure.

The legacy wallets are old accounts that Prime Trust used to store cryptocurrencies before it migrated to a new platform called PrimeCore in 2020. The legacy wallets had been hacked several times in the past and suffered losses of over $10 million. The NFID alleged that Prime Trust tried to cover up these losses by using customer funds from its omnibus accounts.

The NFID appointed a receiver to take over the management and control of Prime Trust’s assets and operations. The receiver’s duties include conducting an audit of Prime Trust’s books and records, securing and recovering customer funds, investigating any potential fraud or misconduct by Prime Trust or its officers, and pursuing any legal actions or claims against third parties.

Source: CoinDesk

Futureverse Raises $54 Million From 10T, Ripple Labs for Metaverse Push 💰

Futureverse, a crypto tech and gaming startup, has raised $54 million in a Series A funding round. The round was led by venture capital firm 10T Holdings and saw participation from other investors such as Ripple Labs, the company behind the XRP cryptocurrency.

Futureverse has developed an immersive and vertically-integrated metaverse platform that acts as an AI technology provider, metaverse infrastructure builder, layer-1 architect, creative studio, and digital community all in one. The metaverse is a term that refers to a virtual world where people can interact with each other and with digital content using various devices such as VR headsets, smartphones, or computers.

Futureverse’s platform is powered by its own blockchain called The Root Network, which supports the use of XRP and its non-fungible tokens (NFTs). NFTs are unique digital assets that can represent anything from art to music to gaming items. Futureverse plans to use the funds for research and development, as well as to further its gaming-focused blockchain.

10T CEO and Chief Investment Officer Dan Tapiero, stated,

“Futureverse has developed an immersive and vertically-integrated metaverse platform that acts as an AI technology provider, metaverse infrastructure builder, layer-1 architect, creative studio, and digital community all in one.”

Futureverse’s flagship game is called Futureworld, a sci-fi adventure game that allows players to explore, create, and socialize in a futuristic metaverse. Futureworld is expected to launch in beta later this year.

Source: Decrypt

Dormant Pre-Mined Ethereum Worth $116M Resurrects After 8 Years 🐳

A wallet that received over 61,000 ETH in the Ethereum initial coin offering (ICO) eight years ago, has transferred the entire stash to an address on the Kraken crypto exchange. Notably, the movement of funds comes after a dormancy period of over eight years. The holdings are currently worth over $116 million. The reason behind the wallet’s sudden transfer of ETH to Kraken remains unclear.

An ICO is a fundraising method that involves selling new cryptocurrencies or tokens to investors in exchange for other cryptocurrencies or fiat money. Ethereum conducted its ICO in 2014, raising over $18 million worth of bitcoin at the time. The ICO participants received ETH tokens at a rate of 2,000 ETH per bitcoin.

The wallet in question received 61,013 ETH on July 31st, 2014, as part of the ICO distribution. The wallet did not move any of its ETH until July 19th, 2023, when it sent the entire balance to an address on Kraken. The transaction was spotted by Whale Alert, a service that tracks large cryptocurrency transfers.

The wallet’s owner could be an early investor who decided to cash out after holding ETH for eight years. Alternatively, the wallet could have been hacked or compromised by someone who gained access to its private key. The private key is a secret code that allows the owner of a wallet to control its funds.

Source: Cointelegraph

Ex-FTX Chief Operating Officer Constance Wang Emerges at Sino Global 🤔

Zhe “Constance” Wang, the former chief operating officer (COO) of FTX, a leading crypto exchange founded by billionaire Sam Bankman-Fried, has joined crypto venture capital firm Sino Global Capital as its head of gaming. In the past, Wang has been described as Bankman-Fried’s “right hand” in his fundraising drive.

FTX is a crypto exchange that offers various products such as futures contracts, options, leveraged tokens, and prediction markets. FTX was launched in 2019 by Bankman-Fried and his team at Alameda Research, a quantitative trading firm that specializes in crypto markets. FTX has grown rapidly since its inception and has raised over $900 million in funding at a valuation of $18 billion.

Wang joined FTX as its COO in 2020 and was responsible for overseeing its operations, business development, partnerships, and marketing. She also played a key role in securing investments from prominent backers such as Sequoia Capital, SoftBank Group, Coinbase Ventures, and Binance.

However, Wang left FTX earlier this year under mysterious circumstances. Neither FTX nor Wang disclosed the reason for her departure or her future plans. Some speculated that Wang had a fallout with Bankman-Fried or that she was poached by another company.

Now, Wang has resurfaced at Sino Global Capital, a crypto venture capital firm that focuses on investing in blockchain and gaming projects in China and abroad. Sino Global Capital has backed projects such as Layer2, Nervos Network, Solana, and Axie Infinity.

Wang will lead Sino Global Capital’s gaming division, which aims to support and incubate innovative gaming projects that leverage blockchain technology and NFTs.

Source: Bloomberg

Conclusion

That’s all for today’s crypto news roundup. I hope you enjoyed reading this article and learned something new. If you have any questions or feedback, please feel free to leave a comment below. I would love to hear from you.

Question for you: Which of these news stories did you find the most interesting or surprising? Why?

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