Crypto News Roundup: August 10, 2023 📢

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 Coinbase’s Base blockchain, Fireblocks’ BitForge vulnerabilities, DeGods’ network migration, SEC Seeking to Appeal Ruling That Ripple XRP Isn't a Security and Maple Finance Secureing SEC Exemption. Let’s dive in!

Coinbase Launches Base Blockchain to the Public 🎉

Coinbase, the largest crypto exchange in the US, has officially opened its new Base blockchain to the general public. Base is a decentralized platform that aims to enable anyone to create and use applications that leverage crypto and blockchain technology. Base features over 100 dApps and service providers as part of its ecosystem, including Uniswap, Compound, MakerDAO, and more.

Base is also the first blockchain network launched by a publicly listed company, as Coinbase went public in April this year. Jesse Pollak, Coinbase’s head of protocols, said that Base is designed to move crypto from speculation to integration, and to make it accessible and useful for everyone.

Coinbase users can access Base through their existing accounts, and use their Coinbase Wallets to interact with Base dApps. Coinbase also plans to integrate Base with its other products and services, such as Coinbase Pro, Coinbase Earn, and Coinbase Commerce.

Base is powered by a native token called BASE, which is used for governance, security, and utility on the network. BASE holders can vote on proposals, stake their tokens to secure the network, and pay for fees and services on Base. BASE has a fixed supply of 21 million tokens, of which 10% were allocated to Coinbase shareholders at the time of the IPO.

Coinbase said that Base is an open and permissionless network that welcomes anyone to join and contribute. The company also said that it will work with regulators and policymakers to ensure compliance and safety for Base users.

Base is one of the most ambitious projects in the crypto space, and it could potentially revolutionize the way people use crypto and blockchain technology. To learn more about Base, you can visit its official website or read its whitepaper.

Fireblocks Discloses Zero-Day Vulnerabilities Affecting MPC Wallets 😱

Fireblocks, a digital asset infrastructure firm that provides custody and transfer solutions for crypto assets, has disclosed a set of vulnerabilities that impacts over 15 widely-used crypto wallet providers that use multi-party computation (MPC) technology. MPC is a cryptographic technique that allows multiple parties to jointly compute a function without revealing their inputs or outputs.

Fireblocks has named the vulnerabilities as BitForge, and said that they could allow an attacker to steal funds from MPC wallets by exploiting flaws in the key generation, signature verification, and transaction validation processes. Fireblocks has classified BitForge as a zero-day vulnerability, meaning that the vulnerabilities had not previously been identified by the projects.

Fireblocks has stated that it has discovered BitForge in July this year, and has immediately notified the affected projects and offered them assistance in fixing the issues. Fireblocks has also stated that it has not observed any malicious exploitation of BitForge in the wild.
Some of the projects that were impacted by BitForge include Coinbase Wallet, ZenGo, Binance Smart Chain Wallet, Ledger Live, Trust Wallet, MetaMask, and more. Fireblocks said that most of these projects have already worked with the firm to remediate their exposure to potential exploits.

Fireblocks also said that it has followed the industry-standard 90-day responsible disclosure process, and has decided to publicly reveal BitForge after ensuring that most of the affected projects have implemented patches or mitigations. Fireblocks also said that it will release a detailed technical report on BitForge in September this year.

BitForge is a serious threat to the security and integrity of MPC wallets, which are widely used by crypto users and institutions. Fireblocks has urged all MPC wallet users to update their software to the latest versions and follow the recommendations from their respective providers.

Fireblocks has also demonstrated its professionalism and responsibility by disclosing BitForge in a timely and ethical manner. Fireblocks said that it will continue to monitor BitForge and work with the crypto community to improve the security standards of MPC technology.

DeGods Ditches Polygon, Moves y00ts to Ethereum and Returns $3 Million Grant 😮

DeGods, a popular NFT project that features collectible digital gods inspired by mythology and pop culture, has announced that it will migrate its y00ts NFT project from the Polygon network to the Ethereum mainnet. y00ts are pixelated NFT characters that can be used as avatars or companions for DeGods.

DeGods said that it decided to move y00ts to Ethereum in order to let the project live alongside its more prominent DeGods collection, which is also on Ethereum. DeGods said that it believes that Ethereum is the best platform for NFTs, despite its high fees and congestion issues.

DeGods also said that it will return the $3 million grant that it received from Polygon Labs earlier this year, when it migrated y00ts from the Solana blockchain to the Polygon network. Polygon Labs is a subsidiary of Polygon, a layer-2 scaling solution for Ethereum that offers low-cost and high-speed transactions.

DeGods said that it appreciates the support and generosity of Polygon Labs, but it feels that it is the right thing to do to give back the grant, as it is no longer using the Polygon network. DeGods also said that it has no hard feelings towards Polygon, and that it respects its vision and achievements.

DeGods is yet to reveal a date for the migration, but it said that it will provide more details soon. DeGods also said that it will make the migration process as smooth and seamless as possible for its users, and that it will offer incentives and rewards for those who participate in the migration.

DeGods’ network migration is a bold and surprising move, as it goes against the trend of many NFT projects moving from Ethereum to Polygon or other networks in search of lower fees and faster transactions. DeGods’ decision shows that Ethereum still has a strong appeal and loyalty among NFT creators and collectors, despite its challenges and limitations.

SEC Seeks to Appeal Ruling That Ripple XRP Isn’t a Security 🤔

The SEC vs Ripple saga continues, as the U.S. securities regulator has filed a letter with a federal judge seeking to appeal a ruling that Ripple’s XRP token is not a security. The ruling, issued by Judge Analisa Torres of the Southern District of New York in July, granted Ripple’s motion for summary judgement and dismissed the SEC’s claims that XRP was an unregistered security offering.

The ruling was a major victory for Ripple and the XRP community, as it cleared the legal uncertainty surrounding the status of the third-largest cryptocurrency by market cap. The ruling also paved the way for XRP to resume trading on major crypto exchanges in the U.S., such as Coinbase, Binance US, and Kraken, which had suspended XRP trading following the SEC’s lawsuit in December 2020.

However, the SEC is not giving up on its case against Ripple, and has asked Judge Torres to grant it leave for an interlocutory appeal of the summary judgement order. An interlocutory appeal is a request to review a lower court’s decision before the final judgement is issued. The SEC argued that there are two “controlling questions of law” on which there is “substantial ground for differences of opinion” that warrant an interlocutory appeal:

• Whether XRP is an “investment contract” under the Howey test, which is a four-pronged test used by the SEC to determine whether an asset is a security or not.
• Whether Ripple’s distribution of XRP constitutes an “offer” or “sale” of securities under Section 5 of the Securities Act of 1933.

The SEC also cited an “intra-district split” that has developed among different judges in the Southern District of New York, who have reached different conclusions on similar issues involving cryptocurrencies. For example, Judge Kevin Castel ruled that Telegram’s GRAM tokens were securities, while Judge P. Kevin Broderick ruled that Kik’s KIN tokens were not securities.

The SEC also asked Judge Torres to stay the case during the appeal, stating that there are multiple other pending court cases that could be affected depending on the appeal’s outcome. The SEC said that granting an interlocutory appeal would “materially advance the ultimate termination of this litigation” and “avoid inconsistent rulings on important questions of federal securities law.”

Ripple has not yet responded to the SEC’s letter, but it is expected to oppose the request for an interlocutory appeal and argue that the summary judgement order was correct and final. Ripple has maintained that XRP is not a security, but rather a decentralized digital currency that has utility and value beyond its association with Ripple.

The SEC vs Ripple case is one of the most high-profile and contentious legal battles in the crypto space, and it could have significant implications for the future of crypto regulation in the U.S. The case is also closely watched by other crypto projects that use similar technologies or business models as Ripple, such as Stellar, Cardano, and Algorand.

Maple Finance Secures SEC Exemption for On-Chain Treasury Pools 💯

Maple Finance, a blockchain-based credit marketplace that connects institutional borrowers and lenders, has secured a Rule 506© RegD exemption from the U.S. Securities and Exchange Commission (SEC). The exemption allows Maple to offer its one-month U.S. Treasury yields to accredited investors in the United States.

Maple’s USDC cash management pool is an on-chain treasury pool that allows accredited investors, companies, and DAOs to park their spare USDC and USDT stablecoins in one-month U.S. Treasury bills to earn a 4-5% annual yield. The pool uses Chainlink’s Proof-of-Reserve oracle to verify the collateralization of the Treasury bills, and uses Fireblocks’ MPC technology to ensure secure custody and transfer of funds.

Maple said that its USDC cash management pool is the first on-chain treasury pool to receive an SEC exemption, and that it demonstrates Maple’s commitment to compliance and innovation. Maple said that its pool offers a unique value proposition for crypto users and institutions who want to diversify their portfolios and optimize their returns.

Maple also said that its pool has seen strong demand and growth since its launch in April this year. The pool has attracted over $22 million of deposits from over 50 investors, including Alameda Research, Framework Ventures, CoinShares, Wintermute Trading, and more.

Maple’s USDC cash management pool is one of the many products and services that Maple offers on its platform. Maple also provides undercollateralized loans for institutional borrowers, such as market makers, hedge funds, and crypto-native companies. Maple also allows lenders to earn passive income by supplying liquidity to various lending pools on its platform.

Maple is one of the leading projects in the decentralized finance (DeFi) space, and it aims to bridge the gap between traditional and crypto finance. Maple leverages blockchain technology, smart contracts, and oracles to create a transparent, efficient, and secure credit marketplace.

Conclusion 🙌

That’s all for today’s Crypto News Roundup. I hope you enjoyed reading about the latest developments in the crypto space. Stay tuned for more updates and insights from us. Until next time, happy cryptoing! 😊

Sources 🔗

1. Coinbase's Base Mainnet Officially Opens to The General Public | Source: The Block
2. Fireblocks Discloses ‘Zero Day’ Vulnerabilities Impacting Leading MPC Wallets | Source: CoinDesk
3. DeGods Ditch Polygon, Moving y00ts to Ethereum and Returning $3 Million Grant | Source: Decrypt
4. SEC Seeks to Appeal Ruling That Ripple XRP Isn't a Security | Source: Bloomberg
5. Maple Finance Secures SEC Exemption for On-Chain Treasury Pools | Source: CoinTelegraph

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