Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC), is preparing to reduce its support for OpenSea due to the imminent removal of the Operator Filter, a tool designed to enforce on-chain royalties.
Introduced in November 2022, the Operator Filter allowed creators to limit secondary sales of nonfungible tokens (NFTs) to marketplaces that upheld creator royalties, effectively excluding platforms like Blur.
Nonetheless, OpenSea disclosed on August 17 that it would discontinue the tool by the end of the month.
The rationale cited a lack of widespread adoption within the ecosystem, instances of platforms bypassing the tool, and opposition from creators.
Responding to this decision, Yuga Labs CEO Daniel Alegre posted an announcement on X (previously known as Twitter), revealing the gradual phasing out of their reliance on OpenSea’s Seaport marketplace smart contract.
In his statement, Alegre outlined that Yuga Labs would initiate the process of winding down support for Seaport across upgradable contracts and new collections.
The objective is to complete this transition by February 2024, aligning with OpenSea’s strategy.
Alegre underlined Yuga Labs’ commitment to safeguarding creator royalties and ensuring fair compensation for their creative efforts.
The BAYC community responded positively to Alegre’s announcement, with prominent content creators and NFT project founders, including EllioTrades and Alex Becker, voicing their support.
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The CEO and co-founder of the Forgotten Runes Wizards Cult NFT project, dotta, lauded Yuga Labs for taking a leading role in championing the cause of creator royalties.
This move also garnered interest from Luca Netz, CEO of the Pudgy Penguins NFT project, who commended Yuga Labs and suggested they might follow suit.
Netz indicated a willingness to engage in dialogue about enforcing creator royalties, as highlighted in a post by Coinbase NFT.
The question of whether to uphold and enforce creator royalties has ignited debates within the NFT community over the past year.
Initially, enforcing creator royalties was the norm during the NFT boom in 2021.
However, platforms like Blur disrupted the scene in October 2022, gaining significant market share by offering zero trading fees and an optional creator royalty payment structure.
Consequently, trading fees and royalty percentages experienced a general decline as marketplaces competed for user adoption.
The NFT community now finds itself divided between proponents of the cost-effective trading approach offered by platforms like Blur, advocating for diverse creator compensation models, and those advocating unwaveringly for royalty payments as a necessity.
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Shiba Inu’s layer-2 Shibarium network has successfully resumed block production after a temporary suspension of transactions that lasted nearly a full day.
The block explorer Shibariumscan.io confirms that the layer-2 blockchain, Shibarium, is back online and actively generating blocks.
The pause in operations was triggered by an unexpected surge in traffic shortly after the mainnet launch, which prompted the network to activate a fail-safe mode to protect user funds.
Lead developer Shytoshi Kusama has reassured the community that despite the challenges posed by the heightened blockchain traffic, the security of funds remains uncompromised.
Both the bridge and the chain are reported to be functioning seamlessly, and Kusama is optimistic about a smooth restart for Shibarium.
A recent blog post by Shiba Inu developer Kaal Dhairya, dated August 18th, has outlined the project’s strategy to address the surge in traffic.
Plans include scaling operations to accommodate the increased activity on Shibarium. Regular updates on the network’s status will be provided to users.
It’s worth noting that Shibarium is built on the foundation of Polygon, a blockchain network.
The Shiba Inu project has taken proactive steps to ensure a safe restart.
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They have secured insurance coverage worth $2 million to mitigate any potential challenges related to fund retrieval.
This announcement has instilled confidence in the community, leading to the resumption of block production on the network.
The development team is maintaining vigilant oversight to monitor the network’s performance.
Despite these positive developments, the ShibArmy community has expressed concerns about the spread of fear, uncertainty, and doubt (FUD), which can have a negative impact on the project’s reputation.
Nevertheless, community members remain optimistic and supportive of the network’s efforts to address the temporary transaction pause.
In terms of price movements, Shiba Inu (SHIB) has shown fluctuation within the past 24 hours, with a trading range spanning from a low of $0.0000076 to a high of $0.0000093.
Concurrently, the price of BONE has experienced a 15% decline, settling at $1.18, while LEASH has seen a 5% drop in the same timeframe, currently valued at $430.
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SoFi Bank, headquartered in San Francisco, has reported an impressive surge in its cryptocurrency holdings, disclosing nearly $170 million in its Q2 earnings report.
This marks a substantial escalation compared to the previous quarter and underscores the bank’s growing involvement in the crypto market.
With an extensive customer base of over six million individuals, SoFi has established itself as a prominent player in the United States banking landscape.
Of the total crypto investments amounting to $166 million, SoFi Bank’s portfolio encompasses $82 million in Bitcoin (BTC) and $55 million in Ethereum (ETH).
Additionally, Dogecoin (DOGE) claims the third spot with an allocation nearing $5 million, while Cardano (ADA) holdings total $4.5 million.
Notably, the bank’s investor presentation highlighted its impressive feat of onboarding more than 500,000 new customers, expanding its support to facilitate trading for over 22 different cryptocurrencies.
Beyond mere crypto holdings, SoFi offers its clientele the ability to buy and sell a diverse array of cryptocurrencies, leveraging its strategic partnership with the Coinbase crypto exchange.
This move is aligned with the bank’s earlier initiative, commencing crypto services in September 2019.
Interestingly, SoFi evolved into a full-fledged bank in February 2022 when it obtained a banking license, distinguishing itself as one of the limited traditional banks delving into the crypto realm.
Despite its strides in the crypto domain, SoFi’s crypto venture has encountered resistance from regulatory quarters.
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In November 2022, a U.S. Senate committee raised concerns about the bank’s adherence to banking laws, spotlighting a looming deadline in January 2024.
SoFi Bank’s response to these concerns remains pending, as Cointelegraph’s outreach for clarity regarding its compliance deadline and potential implications for crypto holdings did not yield a response at the time of publication.
The integration of the cryptocurrency sector with conventional banking has long been deemed a pivotal milestone for mainstream adoption.
However, the crypto industry weathered a tumultuous 2022, which was further exacerbated by the collapse of several banks focused on crypto affairs in 2023.
In response, U.S. legislators hurriedly intervened to safeguard customers’ assets, albeit at the cost of disrupting the synergistic relationships between crypto and traditional finance.
As the regulatory landscape grapples with assigning accountability, the future trajectory of this evolving partnership remains uncertain.
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The Bored Ape Yacht Club (BAYC) is a collection of 10,000 unique Bored Ape NFTs (Non-Fungible Tokens) that serve as a membership card for an exclusive club. The NFTs exploded in popularity in the latter part of 2021, providing owners with access to virtual events, parties, and other benefits. However, the project also became the subject of controversy, particularly regarding allegations of racism.
Bored Ape Yacht Club’s Popularity
Bored Ape Yacht Club became one of the most coveted NFT projects, with prices for individual apes soaring into the hundreds of thousands of dollars, or even more. Celebrities, athletes, and wealthy collectors jumped on board, touting their membership in this virtual club. The popularity of the club has led to several collaborations and merchandising opportunities, making BAYC more than just a collection of digital assets but rather an influential brand in the burgeoning NFT space.
Racist & Nazi Allegations
The racism allegations against BAYC began to surface as the community grew. Critics pointed to certain elements within the artwork and community that they felt propagated racial stereotypes and biases. Some of the illustrations were claimed to perpetuate harmful stereotypes, sparking heated debates both within the BAYC community and outside of it.
In August 2022, some artists even accused backers of the Bored Ape Yacht Club of having ties to neo-Nazis.
Community Response
Reactions to the allegations were mixed within the BAYC community. Some members acknowledged that certain aspects could be interpreted as insensitive or offensive, calling for changes or updates to the art. Others argued that the allegations were a misunderstanding or an overreaction, insisting that the illustrations were not intended to be offensive.
The developers and founders of BAYC were put in a complex position, as making changes to the NFTs would be a difficult proposition given the decentralized and immutable nature of blockchain technology. Altering the content of an NFT after it has been minted is a contentious issue and could potentially lead to legal challenges.
BAYC’s Response
BAYC’s team was relatively slow to respond to the allegations, but they eventually issued statements acknowledging the concerns and outlining their stance. They expressed their commitment to fostering an inclusive community and stated that they would be taking steps to ensure that all members felt welcome and respected.
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However, some critics felt that the response was inadequate and that more direct action was required to address the underlying issues. The debate over the allegations continued to simmer, with some arguing that the incident was indicative of broader problems within the NFT space related to diversity and inclusion.
Impact and Reflection
The controversy surrounding the Bored Ape Yacht Club serves as a stark reminder of the complexities that can arise when blending art, technology, and community. The situation highlights the challenges of navigating cultural sensitivities in a global and diverse user base, particularly within a new and rapidly evolving field like NFTs.
Despite the allegations, BAYC remains a powerful player in the NFT world, but the episode has left lingering questions about the responsibilities of developers and community leaders. The controversy prompts reflection on how to foster inclusive and respectful spaces within the world of digital assets.
The incident also underscores the need for clearer guidelines and ethical standards in the creation and promotion of NFTs. As the NFT market continues to grow, the lessons learned from the BAYC experience may help shape how future projects approach these complex issues. Whether or not the allegations are found to have merit, they serve as an important reminder that digital art and communities must strive to be conscious of and responsive to diverse perspectives and concerns.
Decentralized exchange LeetSwap, which runs on Coinbase’s Base network, has declared a temporary halt on trading activities due to concerns over a possible exploit.
The exchange made this announcement via a tweet on August 1st, after discovering potential compromises in some of its liquidity pools.
As a precautionary measure, LeetSwap suspended trading to conduct a thorough investigation into the matter.
To aid in resolving the issue, the exchange has enlisted the assistance of on-chain security experts in an attempt to recover the locked liquidity.
Although LeetSwap did not divulge detailed information about the incident, a number of blockchain experts have offered their insights into how the exploit might have occurred.
According to Igor Igamberdiev, the head of research at algorithmic market maker Wintermute, the attacker may have taken advantage of an exposed smart contract function.
By leveraging this vulnerability, the attacker would have been able to artificially increase the price of a token, thereby draining wrapped Ether (ETH) worth $1,828 from LeetSwap’s liquidity pools.
Igamberdiev estimated that the attacker gained approximately 342.5 ETH, equivalent to over $630,000.
Several blockchain security firms, including PeckShield, Beosin, BlockSec, and CertiK, have corroborated Igamberdiev’s theory about the exploit and the amount that was siphoned.
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LeetSwap subsequently provided an update approximately an hour and a half after the trading halt, stating that they are actively collaborating with security experts to explore options for recovering the locked liquidity on their platform.
This incident marks the second controversy related to the Base network on the same day. Earlier, a developer of a memecoin called BALD, which was inspired by Coinbase CEO Brian Armstrong, removed liquidity for the token, causing its price to plummet.
The move sparked accusations of an exit scam, which the project developer vehemently denied.
In response to the exploit, LeetSwap has taken swift action and has engaged with industry experts to ensure the safety and integrity of its platform.
Users and the broader cryptocurrency community are keenly monitoring the situation as the investigation unfolds, awaiting further updates from the exchange and security teams involved.
As the decentralized exchange space continues to evolve, the incident serves as a stark reminder of the importance of robust security measures to protect user funds and assets.
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In Miri, Borneo, authorities have taken decisive action against an illegal cryptocurrency mining operation, thanks to a tip-off from the public.
The operation, discovered by Sarawak Energy, involved 34 cryptocurrency mining servers that were illicitly powered through cable tapping, using stolen electricity.
Following the tip-off, a swift crackdown ensued, resulting in the seizure of all equipment used in the illegal mining endeavor, including servers and tapping cables.
Local police have initiated an investigation into the matter, marking a significant victory against cryptocurrency-related crimes on the island.
According to Sarawak Energy’s estimates, the operation was siphoning approximately 6,000 Malaysian ringgits per month (equivalent to $1300) worth of stolen electricity.
This incident sheds light on the persistent issue of energy theft, despite the fact that Sarawak offers some of the lowest energy prices in Malaysia.
Interestingly, this was not the only instance of cryptocurrency mining illegalities in the region.
Earlier in 2023, another public tip-off led to the seizure of more than 137 cryptocurrency mining servers in the nearby state of Senadin, where Miri is situated.
Meanwhile, the global cryptocurrency market, particularly Bitcoin (BTC), has been experiencing a prolonged bear market that has strained many mining operations.
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Consequently, numerous mining firms and operators have resorted to selling BTC in unprecedented amounts to cope with the challenging market conditions.
On the other hand, the Bitcoin mining ecosystem has reached significant milestones in terms of network hash rate, which hit all-time highs in 2023, along with record network difficulty levels.
While this generally indicates the network’s resilience and increased competition among miners, it also poses challenges for smaller operators lacking the economies of scale enjoyed by larger players.
Operators benefiting from lower electricity prices tend to be more profitable, which is a contributing factor driving illegal mining operators to resort to stealing electricity from the grid.
By eliminating electricity costs, unlawful operators can generate profits and offset hardware expenses more easily.
As authorities continue their efforts to combat illegal cryptocurrency mining, the incident in Miri serves as a reminder of the importance of public vigilance and cooperation in safeguarding communities from such illicit activities.
Additionally, the broader cryptocurrency mining landscape must find ways to support smaller operators and address the challenges posed by volatile market conditions, ensuring a more sustainable and secure future for the industry.
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Binance, a major cryptocurrency exchange, has achieved a significant regulatory milestone in its relationship with authorities in the United Arab Emirates (UAE) by obtaining a new license in Dubai.
The license was granted to Binance’s Dubai-based subsidiary, Binance FZE, by Dubai’s Virtual Asset Regulatory Authority (VARA) on July 31.
With this operational minimum viable product (MVP) license, Binance is now officially permitted to offer cryptocurrency exchange and virtual asset broker-dealer services in Dubai.
However, the services allowed by the license are currently limited to institutional and qualified retail investors within Dubai.
Eligible investors in the region can access authorized services, including crypto-to-fiat exchanges that comply with the guidelines set by the intergovernmental Financial Action Task Force (FATF).
To become a user of Binance in Dubai, an investor must hold the status of a “qualified retail client” and meet specific criteria.
This includes being at least 21 years old and having a net liquid asset value of 500,000 United Arab Emirates dirhams ($136,000), supported by relevant documentation such as bank statements and proof of funds.
Qualified investors also need to provide valid identification documents like passports, visas, and proof of a valid UAE address with contact details.
Binance’s Dubai entity can now offer a range of services, including crypto-to-fiat exchange and conversions, transfers and custody, brokerage, and virtual asset payments and remittance services.
This latest regulatory achievement for Binance builds upon the progression from the provisional MVP license issued by VARA in March 2022, as well as the preparatory MVP license obtained in September 2022.
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In April 2023, VARA requested more information from Binance about its business requirements, aiming to enhance regulatory standards in Dubai.
Binance complied with the request and expressed its willingness to cooperate further with VARA as they prepare for the next phase of licensing.
It’s worth noting that the preparatory MVP license previously granted by VARA only allowed exchanges to serve a restricted set of accredited investors.
This limitation was highlighted by some crypto exchanges, such as Bybit, earlier this year.
The news of Binance’s new license comes shortly after VAR suspended the operational license of another crypto exchange, BitOasis, for not meeting regulatory conditions within specified timeframes.
BitOasis is currently working with VARA to fulfill the remaining conditions.
Binance emphasized that VARA’s framework includes compulsory rulebooks related to general operations, compliance, and market conduct requirements.
Key highlights of these regulations were published by VARA in 2023.
As Binance moves forward with its operations in Dubai, it will continue to comply with the regulatory standards set by the UAE authorities.
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Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC), expressed deep concerns over the prevalence of fraud within the crypto market.
In an interview with Bloomberg on Thursday, Gensler pointed out that the crypto market is plagued with fraudulent schemes and deceitful actors, overshadowing the presence of genuine participants.
Highlighting the challenges faced by investors, Gensler emphasized that the speculative nature of the crypto industry is not the sole issue.
He stressed that crypto investors should not assume they are receiving the same level of protection as provided by securities laws, even though some cryptocurrencies may fall under their purview.
Gensler raised alarm over the lack of full, fair, and truthful disclosures provided to US investors, with platforms and intermediaries engaging in practices that would not be acceptable on traditional stock exchanges like the New York Stock Exchange or Nasdaq.
This concern by the SEC Chairman comes in the aftermath of a US court ruling in favor of Ripple during the ongoing lawsuit brought by the SEC.
The court ruled that selling XRP on exchanges does not constitute an investment contract, but it recognized XRP as a security when sold to institutional investors based on the Howey Test conditions.
In response to recent collapses of prominent crypto companies, the SEC has intensified its scrutiny of the crypto industry.
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Lawsuits have been filed against major exchanges like Binance and Coinbase, as well as enforcement actions taken against Kraken, Bittrex, and Nexo.
The increased regulatory pressure has led some crypto companies to consider relocating to more favorable jurisdictions, with Coinbase establishing a presence in Bermuda and Bittrex ceasing operations in the US.
Moreover, the regulatory uncertainty in the US has driven away blockchain developers, as evidenced by a decline in the country’s share of blockchain developers from 40% in 2017 to 29% in 2020, according to a report by Electric Capital.
This trend suggests that the stringent regulatory environment may be discouraging crypto businesses and talent from operating in the United States.
In conclusion, Chairman Gensler’s apprehensions about fraud in the crypto market reflect the SEC’s growing concerns.
The recent legal developments and regulatory actions indicate a shift towards increased scrutiny of the crypto industry, leading some companies to consider more hospitable jurisdictions.
The impact of these regulatory moves may have significant implications for the future of crypto operations in the United States.
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Worldcoin, the Proof of Humanity protocol that gained attention in 2021 for its promise of free tokens to users verifying their humanity through iris scans, has recently faced increased criticism regarding its data collection practices.
In response to mounting concerns, Worldcoin released its audit reports on July 28, conducted by security consulting firms Nethermind and Least Authority.
The audit by Nethermind unveiled 26 security issues within the protocol, with 24 of them being addressed and resolved during the verification phase.
One issue was mitigated, and another was acknowledged, demonstrating Worldcoin’s commitment to enhancing its security measures.
Least Authority, on the other hand, discovered three issues and made six suggestions. Worldcoin promptly resolved all the identified issues or planned resolutions for them, as outlined in their official announcement.
Worldcoin’s public launch took place on July 25, following nearly two years of development and beta testing. However, the project faced immediate criticism.
The UK’s Information Commissioner’s Office (ICO) was considering an investigation into potential violations of data protection laws, while the French data protection agency, the National Commission on Informatics and Liberty, also raised concerns about the project’s legality.
The concept behind Worldcoin, co-founded by Sam Altman, aimed to combat the rise of AI bots on the internet by offering a means of verifying users’ humanity without compromising their privacy.
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The process involved iris scans through a device called the “Orb,” which generated a hash of the user’s iris scan without storing the actual scan data.
The crypto community had mixed reactions to Worldcoin’s launch. Some saw it as a step toward protecting humans from malicious AI, while others feared it could lead to a dystopian future with diminished privacy.
The audit reports focused on various security aspects, including protection against distributed denial of service attacks, specific implementation errors, proper encryption and key management, data leak prevention, and information integrity.
Some issues arose due to dependencies on Semaphore and Ethereum, involving elliptic curve precompile support and Poseidon hash function configuration.
Worldcoin made commendable progress in addressing the security concerns raised during the audits. Almost all identified issues were either fixed, mitigated, or had planned solutions.
The remaining security issue’s severity was labeled “undetermined,” but it was acknowledged and being monitored.
As Worldcoin continues to evolve, addressing security challenges and data privacy concerns will be crucial in gaining public trust and support.
The project’s innovative approach to proving humanity may pave the way for future developments in the blockchain and AI space, but ensuring responsible data handling remains paramount.
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Phoenix Technology, a leading crypto mining hardware provider, is reportedly in discussions to launch an initial public offering (IPO) in the United Arab Emirates (UAE), as per Bloomberg’s anonymous sources.
While the specifics of the IPO are yet to be finalized, the company is known for its development of one of the largest mining facilities in the Middle East.
Additionally, it holds distribution rights for various tech hardware manufacturers across the Middle East, Africa, and Türkiye. Cointelegraph reached out to Phoenix Technology for a comment, but no immediate response was received.
The UAE has emerged as one of the most crypto-friendly jurisdictions worldwide, striving to establish regulatory clarity through its crypto-dedicated regulator, the Dubai Virtual Asset Regulatory Authority (VARA).
Moreover, the emirate of Ras Al Khaimah (RAK) has established a crypto-focused free trade zone called the RAK Digital Assets Oasis, also known as RAK DAO.
In an effort to further solidify its position in the sector, the UAE approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority, aiming to ensure transparency and security for investors through collaboration with relevant entities.
Crypto players operating in the UAE have expressed their preference for the country’s business-friendly infrastructure over that of the United States.
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Saqr Ereiqat, an executive at Crypto Oasis, highlighted in a previous Cointelegraph interview that the regulatory frameworks in the UAE are more streamlined compared to the fragmented regulatory environment in the US.
Despite its crypto-friendly stance, the UAE’s regulators are stringent regarding compliance with requirements and deadlines.
This was evident when the Dubai Virtual Asset Regulatory Authority suspended the license of BitOasis, one of the country’s largest local exchanges, and the first to obtain an operating license in Dubai.
The suspension was due to BitOasis’s failure to meet the deadlines for submitting the required documents as mandated by the regulator.
In summary, Phoenix Technology is exploring the possibility of launching an IPO in the UAE, a jurisdiction known for its friendly approach to crypto businesses.
However, despite this friendliness, the UAE’s crypto regulators are strict when it comes to compliance, as demonstrated by the recent suspension of BitOasis’s license.
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