Crypto News Roundup: July 28, 2023 📰

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28 Jul 2023

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Welcome to the Crypto News Roundup, where I bring you the latest and most important developments in the crypto space.

Today, I have some exciting news about bankrupt crypto platforms, Palm Network, Securitize, Grayscale, and Sequoia Capital. Let’s dive in!

Bankrupt Crypto Platforms FTX, Genesis Set to Resolve Dispute ⚖️

FTX Trading Ltd. and Genesis Global Holdco LLC are two of the largest crypto platforms that filed for bankruptcy protection in June 2023, after suffering massive losses from the May 2023 market crash. The two companies have been locked in a legal battle over their respective claims and liabilities, involving hundreds of millions of dollars.

However, it seems that the dispute is finally coming to an end, as the firms have reportedly reached an in-principle agreement to settle their differences. According to a letter filed by their lawyers on Wednesday, the settlement would resolve the claims asserted by both parties in their Chapter 11 cases. The details of the settlement have not been disclosed yet, but it is expected to be finalized soon.

This is good news for the creditors and customers of FTX and Genesis, who have been waiting for months to get their money back. The settlement could also pave the way for the restructuring and recovery of the two platforms, which were once among the leading players in the crypto industry.

Source: Bloomberg

Palm Network to Launch NFT Creators’ Platform on Polygon Supernet ❗️

Palm Network is an Ethereum-sidechain that was launched in March 2023 as a dedicated network for non-fungible tokens (NFTs). It boasts of low fees, fast transactions, and high scalability, making it ideal for NFT creation and trading. Some of the notable projects that have used Palm Network include Damien Hirst’s The Currency and Uniswap’s Unicorns.

Now, Palm Network is taking its game to the next level by announcing plans to transition its existing proof-of-authority (PoA) mechanism sidechain to a proof-of-stake (PoS) mechanism sidechain within the Polygon ecosystem using the Supernets software stack. Polygon is a layer-2 scaling solution that aims to create a multi-chain system for Ethereum-compatible blockchains. Supernets is a software stack that enables interoperability and composability among different Polygon chains.

The transition will happen in two stages. The first stage, scheduled for August 2023, will involve the migration of Palm Network into a PoS chain with its own native token, PALM. The second stage, scheduled for sometime in 2024, will see Palm Network upgraded into a Polygon zk Supernet, which will leverage zero-knowledge proofs for enhanced privacy and scalability.

The move will allow Palm Network to tap into the vast resources and community of Polygon, as well as offer new features and benefits to its users and creators. For instance, Palm Network will be able to support smart contracts, decentralized applications (DApps), and other layer-2 solutions on Polygon. It will also be able to integrate with other Polygon chains and ecosystems, such as Aavegotchi, Decentraland, and OpenSea.

Source: Decrypt

Securitize Launches Tokenised Security in Europe 🔐

Securitize is a digital asset trading platform that specializes in tokenizing securities such as stocks, bonds, and real estate. It aims to provide a more efficient and accessible way for investors to access traditional assets using blockchain technology.

Securitize has recently issued its first tokenised equities under the European Union’s pilot regime for digital assets. The pilot regime is a regulatory framework that allows certain types of digital assets to be issued and traded in Europe without requiring full compliance with existing securities laws. It is designed to foster innovation and experimentation in the digital asset space.

Securitize’s first offering is issued via the Avalanche blockchain and represents equity in Mancipi Partners, a Spanish real estate investment trust (REIT) that owns and manages residential properties in Madrid. The offering is open to qualified investors who can purchase tokens representing shares of Mancipi Partners using euros or USDC stablecoins. Secondary trading for the tokens is set to begin in September on Securitize’s platform.

Securitize claims that it is the first firm to be able to issue and trade tokenised securities in both the US and Europe, and the first firm to do so under the EU’s pilot regime for digital assets. It also says that its offering will provide several advantages to investors, such as lower costs, faster settlement, greater liquidity, and potential tax benefits.

Source: The Block

Grayscale Urges SEC To Approve All Bitcoin ETFs Simultaneously 🧐

Grayscale Investments is the largest crypto asset manager in the world, with over $40 billion in assets under management. It offers various products that allow investors to gain exposure to different cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin. One of its most popular products is the Grayscale Bitcoin Trust (GBTC), which holds Bitcoin on behalf of its shareholders.

Grayscale has been trying to convert GBTC into a Bitcoin exchange-traded fund (ETF) for years, but it has faced regulatory hurdles from the US Securities and Exchange Commission (SEC). The SEC has not approved any Bitcoin ETFs yet, despite receiving dozens of applications from various firms. The SEC has cited concerns over market manipulation, investor protection, and custody issues as reasons for its reluctance.

In a letter addressed to the SEC on Wednesday, Grayscale urged the authority to approve all proposed spot BTC ETFs at the same time, rather than giving preference to any one applicant. It argued that the SEC should not pick “winners and losers” and instead make a fair and orderly decision that would benefit the market and the investors. It also criticised the recent surveillance sharing agreements (SSAs) between Coinbase and some of the spot ETF providers, saying that they would not meet the SEC’s standards for preventing fraud and manipulation.

Grayscale’s letter reflects its frustration and impatience with the SEC’s slow and uncertain approach to Bitcoin ETFs. It also shows its determination to compete with other firms that are vying for the coveted approval. Grayscale believes that a Bitcoin ETF would boost its business and attract more institutional and retail investors to the crypto space.

Source: Cointelegraph

Sequoia Capital Slashes Crypto Fund as It Downsizes Amid Startup Crunch ❌

Sequoia Capital is one of the most prestigious and influential venture capital firms in the world, with a track record of backing successful startups such as Google, Apple, Airbnb, and Stripe. It has also been active in the crypto space, investing in companies such as Coinbase, BlockFi, Chainalysis, and Dapper Labs.

However, according to a Wall Street Journal report, Sequoia Capital is shrinking the size of its crypto fund by more than 65% from $585 million to $200 million. It also reduced the size of its ‘ecosystem’ fund from $900 million to $450 million. The firm stated that the move is part of a dramatic downsizing occurring due to the change in market conditions.

The report suggests that Sequoia Capital is facing challenges in finding and funding promising startups amid a global startup crunch. The startup crunch is a phenomenon where there are fewer new startups being created and more existing startups failing or struggling to survive. The causes of the startup crunch include the COVID-19 pandemic, regulatory uncertainties, geopolitical tensions, and market saturation.

Sequoia Capital’s decision to slash its crypto fund indicates that it is becoming more cautious and selective in its crypto investments. It also implies that it sees less opportunities and more risks in the crypto space at the moment. The firm stated that its crypto fund will now focus more on backing early-stage startups that have strong teams, products, and visions.

Source: Wall Street Journal

Conclusion 🙌

That’s all for today’s Crypto News Roundup. I hope you enjoyed reading our summaries and learned something new about the crypto world. Stay tuned for more updates and insights from me. Until next time, happy investing! 😊

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