Crypto News Roundup: August 17, 2023 📰

Welcome to Crypto News Roundup, your daily dose of the latest and hottest developments in the world of cryptocurrencies.


Today, I have four exciting stories to share with you, covering topics such as Shibarium’s launch, Ledger’s PayPal integration, Coinbase’s futures trading approval, and BitGo’s funding round. Let’s dive in!

Shibarium’s Launch: A Bumpy Ride for the SHIBarmy 😵‍💫

Shibarium, the long-awaited Ethereum layer-2 network powered by SHIB tokens, finally went live on Monday, August 16, after months of testing and anticipation. The network aims to provide a scalable and cost-effective platform for decentralized applications (dApps), metaverse, and gaming projects built on the Shiba Inu ecosystem.

According to Shiba Inu’s lead developer, Shytoshi Kusama, Shibarium is a unique layer-2 solution that combines community and decentralization principles, making it a potential game-changer for the crypto industry. He said:

“Many in the tech world, inside and outside the blockchain ecosystem, are promising ‘everything apps’ and full user interactivity in the world of ideas, goods, services and other opportunities. However, any such promise absolutely must start at a place of both community and decentralization. As part of one of the most popular cryptocurrencies on the planet, Shibarium lives at the intersection of those two principles in a way that eludes most other technologies, even many other blockchains.”

However, the launch was not without its challenges. Shortly after going live, Shibarium faced a massive traffic surge that caused transactions to be stuck in pending state for hours.

According to blockchain data, about 954 ETH (worth $1.7 million) and $750,000 worth of BONE were trapped on the bridge between Ethereum and Shibarium. Shytoshi Kusama later admitted that the team made a mistake and that all the Ether bridged onto the network was currently unrecoverable.

“We messed up. We underestimated the demand for Shibarium and didn’t prepare enough servers to handle the load. We’re working hard to fix this issue and restore normal operations as soon as possible. Unfortunately, all the Ether that was bridged onto Shibarium is lost forever. We apologize for this inconvenience and hope you can forgive us.”

The news caused a sharp drop in the price of SHIB, which fell by 9% in 24 hours. However, some loyal fans of the project remained optimistic and supportive of the team’s efforts to resolve the situation.

“I’m not selling my SHIB. I believe in Shibarium and its vision. This is just a minor setback and I’m sure they will bounce back stronger than ever. SHIBarmy for life!”

Ledger Integrates PayPal for Crypto Purchases 🚀

Ledger, one of the leading providers of hardware crypto wallets, has announced that it has integrated its Ledger Live software with PayPal, one of the largest online payment platforms in the world. This means that U.S. customers can now buy cryptocurrencies such as BTC, ETH, BCH and LTC using their PayPal account directly from their Ledger device.

Ledger chairman and CEO Pascal Gauthier expressed his excitement about the partnership and said:

“We’re combining the uncompromising security of Ledger with PayPal’s leadership in protected payments technology to help facilitate a seamless platform for user crypto transactions. Ledger is committed to simplifying the world of crypto and PayPal is committed to making the movement of money as simple, reliable and affordable as possible.”

The integration is expected to boost the adoption and accessibility of cryptocurrencies among Ledger’s user base, which currently stands at over 3 million. It will also provide an additional layer of security for crypto transactions, as Ledger devices are designed to protect users’ private keys from hackers and malware.

To buy crypto with PayPal using Ledger Live, users need to have a verified PayPal account and a compatible Ledger device (Nano S or Nano X). They can then select PayPal as their payment method when buying crypto from Ledger Live’s Buy/Sell tab. The minimum purchase amount is $50 and the maximum is $25,000 per week.

Coinbase Gets Green Light for Crypto Futures Trading ⚖️

Coinbase Financial Markets, a subsidiary of Coinbase Global Inc., has obtained approval from the National Futures Association (NFA) to offer investments in crypto futures to eligible customers in the United States. The approval comes nearly two years after Coinbase first applied to join the NFA in September 2021.

Coinbase Financial Markets will operate as a futures commission merchant (FCM), which means it will act as an intermediary between customers and derivatives clearing organizations (DCOs) that clear and settle futures contracts. Coinbase Financial Markets has partnered with Nodal Clear, a DCO that provides central counterparty clearing services for Coinbase Derivatives.

Greg Tusar, Coinbase’s vice president of institutional product, called the approval a “critical milestone” and said:

“We are the first crypto-native leader to directly offer traditional spot crypto trading alongside regulated and leveraged crypto futures for verified customers. This is a significant step forward in bringing federal regulatory oversight over the crypto markets.”

Coinbase plans to roll out futures trading in the coming weeks to its retail customers first, followed by its institutional clients. The exchange will offer futures contracts on bitcoin, ether, bitcoin cash, and litecoin, with up to 4x leverage. Customers will need to complete a verification process and meet certain eligibility criteria to access futures trading.

The approval is a major win for Coinbase, which has been facing regulatory scrutiny from the Securities and Exchange Commission (SEC) over its lending product and exchange-traded products. Coinbase has openly criticized the SEC, which in a June lawsuit accused Coinbase of operating illegally because it had failed to register as an exchange.

BitGo Raises $100 Million at $1.75 Billion Valuation 💰

BitGo, a leading crypto custody firm, has announced that it has raised $100 million in a Series C funding round at a $1.75 billion valuation. The round was led by Valor Equity Partners, with participation from Morgan Creek Digital, Goldman Sachs, Craft Ventures, DRW, Galaxy Digital Ventures, Redpoint Ventures, and others.

BitGo said it will use the new capital for strategic acquisitions and global expansion. The firm currently serves over 400 institutional clients in more than 50 countries, holding over $40 billion in assets under custody. BitGo offers a range of products and services, including multi-signature wallets, cold storage vaults, lending solutions, staking services, tax reporting tools, and more.

BitGo CEO Mike Belshe said:

“We are grateful for the support of our investors who share our vision of building the most secure and compliant platform for digital assets. This funding round will help us accelerate our growth and innovation in the crypto space.”

The funding round comes nearly two months after BitGo scrapped plans to buy rival Prime Trust, a crypto custodian and compliance platform. The deal was reportedly worth $1.2 billion in stock and cash but fell apart due to regulatory hurdles and valuation disputes.

Conclusion

That’s all for today’s Crypto News Roundup. I hope you enjoyed reading my summaries and learned something new about the crypto world. If you have any questions or feedback, feel free to leave a comment below. And don’t forget to subscribe to our newsletter for more updates on the latest crypto news. Thank you for reading and have a great day!

Sources 🔗

1. Shibarium 'Sloppy Launch' Sees $1.8 Million Stuck in Pending State | Source: CoinDesk
2. Ledger Adds PayPal as On-Ramp for Bitcoin, Ethereum Purchases | Source: Decrypt
3. Coinbase Obtains Regulatory Approval to Offer Crypto Futures Trading to Eligible Clients | Source: The Block
4. BitGo Bucks Crypto Downturn to Raise Funding at $1.75 Billion Valuation | Source: Bloomberg

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