Crypto News Roundup: July 29, 2023 👀

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29 Jul 2023

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Hello, and welcome to the crypto news roundup for July 29, 2023. In this edition, we will cover some of the most important and interesting stories from the world of cryptocurrencies and blockchain technology.

Here are the headlines:

📉 Pond0X Token Launch Snafu Leads to Millions of Dollars in Losses
👁 France’s Privacy Watchdog Questions Legality of Worldcoin Biometric Data Collection
❗️ Crypto.com Trumps Binance, Securing Netherlands Registration as Larger Rival Withdraws
⚖️ DoJ Continues Push to Revoke Bankman-Fried’s Bond, Files to Federal Judge

Let’s dive into the details of each story.

📉 Pond0X Token Launch Snafu Leads to Millions of Dollars in Losses

Pond0x, a memecoin that was supposed to be a parody of the popular Dogecoin, turned out to be a nightmare for many investors who lost millions of dollars in a matter of minutes. The token launch, which was announced by Twitter user Pauly0x, was marred by confusion and chaos as he posted both the pre-sale link and the contract address of the token on his account.

This led to two groups of investors: one that minted the token on the website using Ethereum, and another that bought the token on Uniswap using the contract address. The problem was that the minted tokens were not locked or vested, meaning that they could be sold immediately on Uniswap. This created an opportunity for some early minters to dump their tokens on the unsuspecting buyers, who paid a much higher price for them.

The result was a massive price crash that wiped out almost all the value of the token in less than five minutes. According to CoinGecko, Pond0x reached a peak price of $0.0000000000000000012 per token, and then plummeted to $0.000000000000000000000000001 per token. That’s a drop of more than 99.9999999999999999%!

Many investors were outraged by this incident, and accused Pauly0x of orchestrating a scam. Pauly0x denied any wrongdoing, and claimed that he was just trying to create a fun project for the community. He also said that he did not sell any of his tokens, and that he lost money as well.

However, some analysts have pointed out that Pauly0x may have benefited from the pre-sale fees that he collected from the minters, which amounted to more than $300,000. They also questioned his motives for posting both the pre-sale link and the contract address, which created unnecessary confusion and competition among the investors.

This story serves as a reminder of the risks and challenges involved in investing in new and untested tokens, especially those that are based on memes or jokes. Investors should always do their own research and due diligence before putting their money into any project, and be wary of potential scams or exploits.

👁 France’s Privacy Watchdog Questions Legality of Worldcoin Biometric Data Collection

Worldcoin, a project that aims to create a global digital currency that is distributed to everyone based on their biometric data, has faced scrutiny from France’s data protection agency over its data collection methods. The agency, known as CNIL, has stated that the legality of Worldcoin’s biometric data collection “seems questionable” and has initiated investigations into the company.

Worldcoin claims that it wants to create a more inclusive and fair economic system by giving everyone access to its cryptocurrency. To do so, it uses a device called an orb, which scans people’s eyes using infrared light and generates a unique identifier for each person. This identifier is then used to distribute Worldcoin tokens to the participants.

However, CNIL has raised concerns about the privacy and security implications of this process. It has questioned how Worldcoin ensures that the biometric data is not stored or used for other purposes, such as surveillance or profiling. It has also asked how Worldcoin obtains consent from the participants, and how it complies with the European Union’s General Data Protection Regulation (GDPR).

The Worldcoin Foundation, which oversees the project, has responded to CNIL’s inquiries by stating that it complies with all laws and regulations governing the processing of personal data in the markets where Worldcoin is available. It has also said that it does not store or share any biometric data with third parties, and that it uses encryption and anonymization techniques to protect the data.

The Worldcoin Foundation has also claimed that it has received positive feedback from thousands of people who have participated in its pilot program in various countries, including France. It has said that it will continue to cooperate with CNIL and other regulators on requests for more information about its privacy and data protection practices.

This story highlights the challenges and opportunities that arise from using biometric data for innovative purposes such as creating a global digital currency. While biometric data can offer a unique and secure way of identifying and rewarding people, it also poses significant risks and responsibilities for the data collectors and processors. It is important that projects like Worldcoin respect the rights and interests of the data subjects, and adhere to the highest standards of privacy and security.

❗️ Crypto.com Trumps Binance, Securing Netherlands Registration as Larger Rival Withdraws

Crypto.com, one of the leading crypto platforms in the world, has achieved a major milestone by securing a registration as a crypto service provider by the Dutch central bank (DNB). This makes Crypto.com one of the few crypto platforms that are authorized to operate in the Netherlands, and gives it a competitive edge over its larger rival Binance, which had to withdraw from the country last month.

According to DNB’s website, Crypto.com has met the requirements of the Dutch Anti-Money Laundering and Counter-Terrorist Financing Act, which came into effect in May 2020. This means that Crypto.com has demonstrated that it has adequate policies and procedures to prevent and combat money laundering and terrorist financing activities involving cryptocurrencies.

Crypto.com’s CEO, Kris Marszalek, has expressed his delight at obtaining the DNB registration, and has said that it is a significant milestone for his business and the latest testament to his commitment to compliance. He has also said that Crypto.com will continue to collaborate with regulators to responsibly advance the crypto and blockchain industry.

This achievement comes at a time when Binance, the world’s largest crypto exchange by trading volume, is facing regulatory pressure from various jurisdictions around the world. Last month, Binance announced that it would stop offering its services to customers in the Netherlands, following similar moves in other countries such as Japan, Germany, Italy, and the United Kingdom.

Binance’s CEO, Changpeng Zhao, has acknowledged that his company needs to improve its compliance and communication with regulators, and has said that he is willing to work with them to find solutions. He has also said that Binance is not leaving any country, but rather adapting to the local regulations and requirements.

This story shows how crypto platforms are facing different regulatory environments in different countries, and how they need to adjust their strategies accordingly. While some platforms, such as Crypto.com, are able to obtain regulatory approval and recognition in certain markets, others, such as Binance, are facing challenges and restrictions in others. It is crucial that crypto platforms work with regulators to establish clear and consistent rules and standards for the crypto industry, and to foster trust and confidence among customers and stakeholders.

⚖️ DoJ Continues Push to Revoke Bankman-Fried’s Bond, Files to Federal Judge

The U.S. Department of Justice (DoJ) has reportedly filed a written submission to a federal judge on Friday, seeking detention for Sam Bankman-Fried, the founder of FTX, one of the most popular crypto derivatives exchanges in the world. The DoJ alleges that Bankman-Fried has violated the terms of his bond by leaking private diaries belonging to Caroline Ellison, the former CEO of Alameda Research, a quantitative trading firm that Bankman-Fried also founded.

Bankman-Fried was arrested in June 2020 on charges of market manipulation, fraud, and insider trading involving cryptocurrencies. He was released on a $10 million bond, which required him to surrender his passport, wear an ankle monitor, and refrain from contacting any witnesses or co-defendants in his case.

However, according to the DoJ’s filing, Bankman-Fried breached these conditions by sharing Ellison’s private writings with a reporter from the New York Times, who published an article about them on July 18. The article revealed intimate details about Ellison’s personal and professional life, including her relationship with Bankman-Fried, her struggles with mental health issues, and her involvement in Alameda Research’s trading activities.

The DoJ claims that Bankman-Fried’s leaking of Ellison’s private writings is an attempt to intimidate and corruptly persuade Ellison with respect to her upcoming trial testimony, as well as an effort to influence or prevent the testimony of other potential trial witnesses by creating the fear that their most personal information is at risk of being exposed in the media.

The DoJ also argues that Bankman-Fried poses a flight risk and a danger to the community, given his access to vast amounts of cryptocurrency assets and his connections to foreign jurisdictions. The DoJ requests that Bankman-Fried be detained pending trial or until further order of the court.

Bankman-Fried’s lawyers have not yet responded to the DoJ’s filing. They have previously denied any wrongdoing on behalf of their client, and have said that he is innocent of all charges. They have also said that Bankman-Fried cooperated fully with the authorities during his arrest and release process.

This story illustrates how the U.S. authorities are cracking down on alleged misconduct and malpractice in the crypto industry, especially involving high-profile figures and platforms. It also shows how the legal battles and controversies involving the crypto industry can have an impact on the reputation and performance of the crypto players, as well as the public perception and adoption of the crypto technology.

Conclusion 🙌

That’s all for today’s crypto news roundup. I hope you enjoyed this edition and learned something new and interesting. Stay tuned for more updates and insights from the crypto world. Thank you for reading and have a great day! 😊

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