Crypto News Roundup: August 21, 2023 🗞️

Welcome to the crypto news roundup, where I bring you the latest and most important stories from the world of cryptocurrencies. Today, I have some shocking, exciting, and controversial news to share with you. Let’s dive in!

Recur Shuts Down After Raising $50 Million 💸

Recur, a startup that aimed to create NFTs for college sports and other brands, has announced its decision to shut down its platform less than two years after raising $50 million in a series A funding round. The team cited “unforeseen challenges and shifts in the business landscape” as the reason behind the move.

Recur’s platform allowed users to buy, sell, and trade NFTs that represented digital collectibles of college athletes, teams, and events. The startup had partnered with several universities and sports organizations, such as the University of Miami, the Rose Bowl, and the Heisman Trophy Trust.

However, Recur faced several hurdles in its journey, such as regulatory uncertainty, legal disputes, and technical issues. The closure of the platform’s functionality will begin with the disabling of primary and secondary sales from Aug. 18, 2023. New user account creation has already been stopped, and all remaining site functions will cease by Nov. 16, 2023.

Recur’s CEO Zach Bruch said that the team is “deeply saddened” by the decision and thanked the investors, partners, and users for their support. He also said that the team is “exploring options” to ensure that the NFTs created on Recur’s platform will remain accessible and transferable in the future.

Recur’s shutdown is a reminder of the risks and challenges involved in the nascent and volatile NFT industry. It also raises questions about the sustainability and viability of NFT projects that rely on third-party licenses and partnerships.

Bitget Tightens KYC Requirements 🆔

Bitget, a Seychelles-based crypto derivatives exchange, is reportedly updating its Know Your Customer (KYC) requirements for users wishing to deposit or trade on its platform from the start of next month. The exchange stated that the move was “to comply with regulatory requirements in the global cryptocurrency sector and create a secure cryptocurrency trading environment.”

Bitget is one of the leading crypto derivatives exchanges in terms of trading volume and liquidity. It offers futures, perpetual swaps, options, and spot trading for various cryptocurrencies, such as Bitcoin, Ethereum, Dogecoin, and Shiba Inu.

According to Bitget’s announcement, newly signed-up users must complete level-one KYC verification to deposit and trade digital assets on Bitget. Existing customers have until Oct. 1 to complete the process, after which time they will only be able to withdraw, cancel orders or close positions.

Level-one KYC verification requires users to provide their name, nationality, ID number, and a photo of their ID document. Bitget said that it will protect the privacy and security of user data and comply with relevant laws and regulations.

Bitget’s move is in line with the tightening global regulations on crypto exchanges and platforms. Several countries have imposed stricter rules on KYC, anti-money laundering (AML), and counter-terrorism financing (CTF) for crypto businesses. For example, South Korea has mandated that all crypto exchanges must register with its financial watchdog and partner with local banks to offer real-name accounts by Sept. 24.

Friend.tech Becomes Ether Money Machine 💰

Friend.tech, a social app that allows users to create and join communities based on their interests and passions, has become a massive Ether money machine as it has generated protocol fees exceeding $1.42 million in the last 24 hours. This ranks the platform as one of the top three crypto projects with respect to user-paid fees, right behind Ethereum and Lido.

Friend.tech is powered by Ethereum and uses its native token FRND to reward users for creating content, engaging with others, and participating in governance. Users can also stake FRND to earn interest and access premium features.

The app has recently attracted new high-profile members such as startup incubator Y Combinator CEO Garry Tan and NBA player Grayson Allen. Tan said that he joined Friend.tech because he was “impressed by how fast they are building” and that he was “excited to see what they do next.” Allen said that he liked Friend.tech because it was “a fun way to connect with fans and other athletes.”

Friend.tech’s popularity and growth have also boosted its token price and market cap. FRND has surged by over 300% in the past month and reached an all-time high of $0.87 on Aug. 20. The token’s market cap is currently over $400 million.

Friend.tech’s success shows how Ethereum-based social apps can create value for users and generate revenue for developers. It also demonstrates how crypto communities can foster engagement and loyalty among their members.

Token Founder Loses $250K And His House In Scam, Sues Crypto.com ⚖️

Glow Token LLC and its CEO Bryan Lawrence have filed a lawsuit in a Florida court against Crypto.com, a major crypto exchange and platform. The crypto project has accused the exchange of breach of contract and claims it owes over $250,000 in damages after Glow CEO Bryan was duped by fake Crypto.com employees for a token listing earlier this year.

Glow Token is a project that aims to create a decentralized social network that rewards users for their creativity and influence. The project launched its token sale in January 2023 and raised over $1 million from investors.

According to the lawsuit, Bryan contacted Crypto.com in February 2023 to inquire about listing Glow Token on its exchange. He received an email from someone claiming to be a Crypto.com listing agent and was directed to a website that looked identical to Crypto.com’s official site. He was then asked to pay a listing fee of $250,000 in Bitcoin, which he did.

However, Bryan soon realized that he had been scammed by impostors who had created a fake website and email address to trick him. He contacted Crypto.com’s customer support and reported the incident, but received no response. He also found out that the scammers had hacked his email account and accessed his personal information, such as his bank account details and home address.

Bryan said that he lost not only his money, but also his house, as he had mortgaged it to pay for the listing fee. He said that he was “devastated” by the scam and that he felt “betrayed” by Crypto.com’s lack of action and communication.

The lawsuit alleges that Crypto.com breached its contract with Glow Token by failing to provide the listing service and by failing to protect its customers from fraud. It also alleges that Crypto.com was negligent and reckless in its security measures and that it caused Bryan emotional distress and financial harm.

Crypto.com has not yet commented on the lawsuit or the scam. The exchange has previously warned its users about phishing attempts and fake websites that try to impersonate its brand and services.

Conclusion 🎁

That’s all for today’s crypto news roundup. I hope you enjoyed reading it and learned something new. If you did, please share it with your friends and family who are interested in crypto. And don’t forget to check out my other articles and guides on Bulb. Thank you for your time and attention. See you next time! 😊

Sources 🔗

1. Recur to Shut Down Less Than Two Years After Raising $50 Million In Series A | Source: The Block
2. Bitget Mandates KYC Requirements in Line with Tightening Global Regulations | Source: Cointelegraph
3. Friend.tech Becomes Massive Ether Money Machine as NBA Players, FaZe Clan Join In | Source: CoinDesk
4. Token Founder Loses $250,000 and His House in Scam, Sues Crypto.com | Source: Decrypt

 Don’t forget to subscribe to my newsletter for daily updates on the crypto world. I will keep you informed about the latest news, trends, tips, and insights on everything related to cryptocurrencies.
Thank you for reading and stay tuned for more!