Synthetix, a decentralized finance (DeFi) protocol, is set to expand its product offerings with the introduction of a new derivatives front-end called Infinex.
The upcoming exchange aims to provide a decentralized trading infrastructure that caters to both novice and experienced traders, offering features similar to centralized exchanges (CEX).
This move is in response to the key issues identified with the current platform, Kwenta, a derivatives decentralized exchange (DEX) operating on Optimism.
Kain Warwick, the founder of Synthetix, highlighted some of the challenges faced by traders on the current platform.
Users are required to bridge their assets to the layer-2 rollup and exchange them for sUSD, Synthetix’s stablecoin used as margin collateral, before they can begin trading.
Additionally, every order or cancellation on the platform incurs a small fee due to the need for the trader’s wallet signature.
Warwick emphasized that the goal of Infinex is to address these issues and eliminate any doubts about the ability of decentralized perpetuals (Perps) to compete with centralized exchanges.
READ MORE: Coinbase Temporarily Suspends Staking Services
Warwick also pointed out the advantages of a noncustodial decentralized exchange, playfully mocking centralized exchanges like FTX for their counterparty risks.
He highlighted the dramatic collapse of FTX in 2022 as an example.
Infinex aims to offer a user-friendly experience for traders familiar with platforms like Binance.
It will provide access through a simple username and password, while still maintaining a noncustodial setup.
Each user will be assigned a unique public-private key pair generated by Infinex, which will be stored locally in the browser.
These keys will be used solely for signing trade orders and not for fund withdrawals.
While the technical implementation details of Infinex were not disclosed, Warwick mentioned that they were entrusted to the core developers.
The launch of the new DEX is expected to coincide with the release of Synthetix’s version three of its perpetual futures trading system, which is scheduled for the coming months.
With the introduction of Infinex and the improvements to its derivatives trading system, Synthetix aims to address the existing limitations and provide a more seamless and efficient trading experience for its users.
By combining the benefits of decentralized finance with features typically associated with centralized exchanges, Synthetix aims to further establish itself as a leading player in the DeFi space.
Other Stories:
Bitcoin Long-Term Holders Return as BTC Price Surges
SEC Stresses Crucial Clarification Amid Coinbase Battle
Cardano Surges 23.9% Following Favorable XRP Ruling, Investors Eye Further Gains
Coinbase, the popular cryptocurrency exchange, has been hitting new highs in the stock market, prompting ARK Invest, the investment management firm led by renowned investor Cathie Wood, to sell off more of its shares in the company.
This marks the second time in a week that ARK Invest has divested a portion of its Coinbase holdings.
At the same time, Wood’s firm has been actively investing in other companies like Meta Platforms and Robinhood Markets.
Recent trading data obtained by Cointelegraph reveals that on July 14, ARK Invest sold a total of 478,356 Coinbase shares, valued at around $53 million.
This sale coincided with Coinbase’s 52-week high of $114.43 per share.
The transactions included the sale of 263,247 Coinbase shares by ARK Innovation ETF, 93,227 shares by ARK Next Generation Internet ETF, and 35,666 shares by ARK Fintech Innovation ETF.
In June, Wood’s firm initiated purchases of Meta Platforms shares following the announcement of the launch of Threads, a social media app similar to Twitter.
ARK Innovation ETF acquired 69,793 Meta shares, while ARK Fintech Innovation ETF purchased 111,843 shares of Robinhood.
READ MORE: Bitcoin Long-Term Holders Return as BTC Price Surges
Furthermore, ARK Next Generation Internet ETF increased its holdings with 12,559 Meta shares and 169,116 Robinhood shares.
As of Friday, according to CoinMarketCap, Coinbase’s closing stock price was $105.31, experiencing a 1.58% decline as investors took profits.
Throughout the week, the price surged by 33%, reaching a 24-hour high of $114.43, indicating a year-to-date increase of 213%.
Alongside the general upward trend in crypto-related stocks, Coinbase received a boost from a summary judgment in the United States Securities and Exchange Commission vs. Ripple lawsuit.
This recent sale by ARK Invest follows previous divestments.
On July 11, Wood’s ARK Innovation ETF sold 135,152 Coinbase shares worth $12 million, and in March, ARK Fintech Innovation ETF sold 160,887 Coinbase shares.
ARK Invest’s moves in the cryptocurrency and technology sectors continue to attract attention, and investors closely follow their investment decisions.
As the market dynamics evolve, it will be interesting to observe how ARK Invest adjusts its portfolio and identifies potential opportunities in the ever-changing landscape of digital assets and emerging technologies.
Other Stories:
SEC Stresses Crucial Clarification Amid Coinbase Battle
Coinbase Temporarily Suspends Staking Services
Cardano Surges 23.9% Following Favorable XRP Ruling, Investors Eye Further Gains
United States Senator Cynthia Lummis has taken to Twitter to stress the importance of a recent court ruling by Judge Analisa Torres, which determined that Ripple’s XRP token should not be classified as a security when traded on digital asset exchanges.
Lummis used this ruling as a platform to emphasize the urgent need for Congress to establish a comprehensive and unambiguous regulatory framework for cryptocurrencies.
Lummis highlighted the significance of the court ruling and its implications for cryptocurrency regulation.
She emphasized that this verdict underscores the immediate necessity for Congress to create a robust crypto framework that prioritizes the protection of consumers.
As a long-time proponent of Bitcoin, Senator Lummis also underscored the importance of a transparent cryptocurrency framework that safeguards investors and fosters innovation in the crypto industry.
Furthermore, Lummis stressed the importance of maintaining the Howey test, which is the legal standard used to determine whether an investment qualifies as a security.
READ MORE: Cardano Surges 23.9% Following Favorable XRP Ruling, Investors Eye Further Gains
She specifically mentioned the Responsible Financial Innovation Act, also known as the Lummis-Gillibrand bill, a legislative initiative co-introduced by herself and Senator Kirsten Gillibrand.
The purpose of this bill is to provide clarity and establish regulatory guidelines for digital assets, aligning them with the interpretation of the Howey test.
Lummis’s call for congressional action carries significant weight, particularly given the wide-ranging implications of the legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission.
The outcome of this case could set a precedent that shapes the regulatory landscape for digital assets in the United States.
The absence of well-defined guidelines leaves entrepreneurs and investors in a state of uncertainty, hindering innovation and economic growth.
While it remains uncertain how Congress will address Lummis’s plea for regulatory clarity in the cryptocurrency market, her efforts indicate an increasing recognition among lawmakers that the crypto industry requires a progressive regulatory strategy to unlock its full potential.
Other Stories:
Bitcoin Long-Term Holders Return as BTC Price Surges
A recent report published by Galaxy Digital, a crypto investment firm, reveals that despite regulatory scrutiny in the United States, crypto firms in the country are still driving innovation.
In fact, nearly half of all capital investments in the crypto industry are flowing toward U.S.-based crypto businesses.
The report, released on July 14, highlights the significant share of interest from venture capital (VC) firms in U.S. crypto startups.
It states that these startups accounted for more than 43% of all completed deals and raised over 45% of the capital invested by VC firms.
Meanwhile, the United Kingdom secured 7.7% of the capital investment, with Singapore and South Korea attracting 5.7% and 5.4% respectively.
However, the report also points out that the total amount of capital invested in crypto and blockchain startups has been declining quarter-to-quarter.
Only $720 million was raised by 10 new crypto VC funds in Q2 2023, marking the lowest since the beginning of the COVID-19 pandemic in Q3 2020.
READ MORE: Coinbase Temporarily Suspends Staking Services
Interestingly, the combined capital raised by crypto and blockchain startups in the last three quarters was less than what they raised in Q2 of the previous year.
The report reveals that while companies in the “broad Web3 category” had more deals, it was companies in the “trading category” that raised more capital.
These findings come at a time when the United States Securities and Exchange Commission (SEC) has been taking action against several U.S. crypto firms.
In a case between the SEC and Ripple Labs, a judge recently ruled partially in favor of Ripple by declaring that XRP is not a security when sold on digital asset exchanges.
Ripple CEO Brad Garlinghouse has criticized the SEC, believing that the regulatory body is stifling innovation and the cryptocurrency industry in the United States.
He argued that the SEC’s handling of the Hinman speech documents during the Ripple case reflects its overall negative stance toward the crypto industry.
Adding to the regulatory actions, the SEC also took action against major crypto exchanges Binance and Coinbase in early June, accusing them of violating securities laws and offering unregistered securities.
Despite these regulatory challenges, the report highlights the resilience and ongoing investment interest in U.S. crypto startups, emphasizing their crucial role in driving innovation within the industry.
Other Stories:
SEC Stresses Crucial Clarification Amid Coinbase Battle
Bitcoin Long-Term Holders Return as BTC Price Surges
Cardano Surges 23.9% Following Favorable XRP Ruling, Investors Eye Further Gains
Ripple CEO Brad Garlinghouse expressed his belief that the United States Securities and Exchange Commission (SEC) will face a lengthy process before having the opportunity to appeal the ruling in its case against Ripple Labs.
On July 13, Judge Analisa Torres of the U.S. district court delivered a partial ruling in favor of Ripple, stating that the XRP token is not a security when sold on retail digital asset exchanges, but ruled it as a security when sold to institutional investors based on the Howey test.
In an interview with Bloomberg on July 15, Garlinghouse downplayed the significance of the institutional sales decision, considering it to be the least significant aspect of the lawsuit.
He believes that if the SEC were to appeal the ruling on retail sales, it would further solidify Judge Torres’ decision.
Garlinghouse emphasized that the current legal stance is that XRP is not a security, and he expressed optimism while noting that the SEC’s appeal process would likely take years.
READ MORE: Bitcoin Long-Term Holders Return as BTC Price Surges
Garlinghouse pointed out that this case marks the first time the SEC has lost a crypto-related lawsuit. He criticized the SEC for targeting players in the crypto industry who lacked the resources to mount a robust defense, describing the agency as a “bully.”
When the case was initially filed against Ripple, many U.S. crypto exchanges adopted a wait-and-see approach due to the resulting uncertainty.
Consequently, exchanges like Coinbase and Kraken completely delisted XRP.
According to Garlinghouse, the SEC’s actions created confusion in the market. He accused the agency of intentionally causing more confusion while having full knowledge of the existing confusion.
This deliberate confusion, in Garlinghouse’s view, allowed the SEC to assert power and hinder innovation within the United States.
Garlinghouse argued that the SEC prioritizes power and politics over sound policy and clear regulatory guidelines.
This approach, he asserted, has made it challenging for entrepreneurs and investors to participate in the U.S. crypto market and blockchain industry, hindering growth and innovation in the country.
Overall, Garlinghouse’s outlook is positive, considering the court ruling a significant milestone for Ripple and suggesting that the SEC’s appeal process would be protracted.
He called for a shift towards clear and supportive regulations to foster a thriving crypto ecosystem within the United States.
Other Stories:
Coinbase Temporarily Suspends Staking Services
Cardano Surges 23.9% Following Favorable XRP Ruling, Investors Eye Further Gains
In a recent letter to Binance users, Changpeng Zhao, the CEO of the popular cryptocurrency exchange, reflected on the company’s past and outlined key trends shaping the industry.
As Binance celebrated its sixth anniversary, Zhao acknowledged the challenges the company has faced over the years.
He recalled the bear market of January 2018, which followed a surge in user registrations.
Despite the market decline, Zhao emphasized the importance of prudent financial management, which the team learned during that period.
Zhao also discussed Binance’s experiences during the company’s second crypto winter. He mentioned the firm’s investments in the collapsed crypto project Terra and the bankrupt crypto exchange FTX.
Binance’s initial $3 million investment in Terra Classic (LUNC) experienced a significant increase in value, soaring to $1.6 billion before crashing close to zero in 2022.
In contrast, the company exited its investment in FTX early, more than a year before it encountered difficulties.
READ MORE:Ripple’s XRP Victory Against SEC: A Blow to Regulator’s ‘War on Crypto’
These incidents led to increased regulatory scrutiny, with Binance being associated with FTX. Zhao addressed these comparisons, stating that Binance and FTX are different entities.
He rejected the notion that they should be grouped together, drawing a parallel to investment firms on Wall Street and the infamous Madoff case.
Despite the challenges, Zhao reassured Binance users that the company remains committed to prioritizing their interests and protecting them.
Looking forward, Zhao highlighted several trends shaping the industry.
He noted that traditional finance entering the crypto space would facilitate institutional adoption, decentralized finance (DeFi) would continue to accelerate, and more people would engage with Binance’s products.
Additionally, he anticipated the growth of regulated exchanges despite current market uncertainties.
Zhao emphasized the significance of getting the regulatory landscape right, asserting that countries that do so will have a significant advantage in the future.
He believes that we are at a pivotal moment in history, where the decisions made now will have far-reaching consequences for centuries to come.
In conclusion, Changpeng Zhao’s letter to Binance users reflected on the company’s journey, highlighting the lessons learned from past challenges.
He also outlined key trends in the industry, emphasizing the importance of regulatory clarity and the potential for transformative shifts in the financial landscape.
Despite the obstacles, Binance remains focused on its users and committed to their protection.
Other Stories:
Worldcoin’s World ID Project Surpasses 2 Million Users
Monochrome Asset Management Proposes Bitcoin ETF on ASX
OpenAI Faces FTC Investigation Over Privacy and Data Practices
OPNX, a specialized exchange for trading bankruptcy claims of collapsed cryptocurrency firms, has recently added FTX and Celsius claims to its platform.
In an announcement made on July 14, it was revealed that FTX claims can be instantly onboarded and converted into collateral in the form of OPNX’s native reborn OX (reOX) tokens or oUSD, the platform’s credit currency.
This allows users to engage in cryptocurrency futures trading using reOX as collateral.
The tokenization of the claims and the onboarding process are facilitated through a partnership with Heimdall, which also handles user verification.
The developers at OPNX explained the conversion process:”At the outset, claims will be converted into reOX tokens with a bonus of 100% of the market price, gradually reducing to 0% over a period of 50 weeks.
This means that during the first week, users will receive double the market price for their FTX claim.”
To illustrate this, OPNX provided an example: Suppose a user holds an FTX claim worth $1 million with a claim price of 30 cents on the dollar.
They would receive $600,000 worth of reOX claim amounts in return.
If a user’s claim is determined to have preference, an equivalent dollar value of the issued reOX tokens will be reclaimed from the user.
READ MORE: Worldcoin’s World ID Project Surpasses 2 Million Users
The claims are transferred and securely stored in a separate trust.
OPNX was established earlier this year by Kyle Davies and Zhu Su, who are the co-founders of Three Arrows Capital, a bankrupt Singaporean hedge fund also known as 3AC.
On its first day of operation, OPNX recorded a modest total trading volume of $13.64.
However, by late June, the daily exchange volume had surpassed an impressive $30 million.
In May, Cointelegraph reported that the United States Internal Revenue Service is seeking $44 billion in unpaid taxes from FTX’s bankruptcy proceedings.
Similarly, on July 13, the U.S. Federal Trade Commission imposed a $4.7 billion fine on Celsius, with the judgment currently suspended.
OPNX’s listing of FTX and Celsius claims demonstrates its commitment to providing a platform for trading these bankruptcy claims in a secure and transparent manner.
With its tokenization process and collaboration with Heimdall, the exchange aims to offer users a convenient and efficient way to convert and trade their claims.
The growing trading volume on OPNX indicates the increasing interest and participation of users in this unique market.
Other Stories:
Ripple’s XRP Victory Against SEC: A Blow to Regulator’s ‘War on Crypto’
Monochrome Asset Management Proposes Bitcoin ETF on ASX
OpenAI Faces FTC Investigation Over Privacy and Data Practices
Cardano, a prominent cryptocurrency, witnessed an impressive surge in price, soaring by 23.9% on July 13.
This significant rally has left investors intrigued about the potential for further gains and has sparked questions regarding Cardano’s ability to break the $0.40 mark.
The surge in price came shortly after a favorable judicial decision related to XRP, another cryptocurrency.
There are three key factors supporting Cardano’s bullish momentum. Firstly, Cardano has the potential to integrate with other blockchains, which opens up new possibilities and expands its reach.
Secondly, there has been increased activity in decentralized applications (DApps) built on the Cardano platform, which demonstrates growing adoption and usage.
Lastly, the recent XRP ruling has alleviated regulatory risks, benefiting ADA and other coins impacted by regulatory concerns.
It is worth mentioning that Cardano and its ADA token faced scrutiny from the United States Securities and Exchange Commission (SEC) during recent legal actions against major exchanges like Coinbase and Binance.
The SEC referred to ADA as a potential security. However, it is important to note that while the staking offering may be considered a security, it does not pose a direct risk to Cardano or its development companies.
READ MORE: Worldcoin’s World ID Project Surpasses 2 Million Users
The XRP ruling on July 13 helped mitigate regulatory concerns and contributed to the rally in ADA’s price.
A proposal to incorporate Algorand as a Cardano sidechain has gained attention within the cryptocurrency community.
Although it may seem unlikely for the Algorand community to accept this suggestion, the proposal gains relevance given AlgoFi’s shutdown announcement following regulatory allegations against Algorand.
This integration could help Algorand avoid regulatory scrutiny while boosting the adoption of Cardano’s ecosystem.
Smaller altcoins could also be incentivized to become Cardano sidechains, benefiting from Cardano’s treasury and marketing potential.
In terms of activity in Cardano’s DApps and NFT markets, the increased usage of smart contracts and NFT sales indicates a growing ecosystem.
Ethereum’s struggles with high transaction fees have made Cardano an attractive alternative for developers and users.
Cardano’s total value locked (TVL) in ADA terms has seen a 10% month-on-month increase, reaching 550 million ADA on July 14.
Additionally, decentralized exchange volumes experienced a 6% rise in the past week.
Cardano’s nonfungible token sales have surged by 56% to $3.1 million, outperforming platforms like Solana and Ethereum.
Despite these positive developments, there are still regulatory risks to consider.
While the XRP decision was beneficial, Cardano’s ICO was not explicitly addressed in the court ruling, and the ongoing XRP trial will determine Cardano’s regulatory status.
Furthermore, Cardano’s TVL of $200 million lags behind other layer-1 smart contract alternatives, suggesting limited demand for its services.
To solidify its position and surpass the $0.40 mark, Cardano must continue growing and delivering on its promises.
Planned updates for 2023, such as the Hydra L2 solution and Basho, will be crucial in improving scalability, performance, and transaction efficiency on the Cardano network.
These updates will help Cardano attract more users and cement its position as a leading blockchain platform.
Other Stories:
Monochrome Asset Management Proposes Bitcoin ETF on ASX
Ripple’s XRP Victory Against SEC: A Blow to Regulator’s ‘War on Crypto’
OpenAI Faces FTC Investigation Over Privacy and Data Practices
The now-bankrupt cryptocurrency lender, Celsius Network, has announced its satisfaction with the resolutions reached with several U.S. government agencies.
This follows the Federal Trade Commission (FTC)’s enforcement of a $4.7 billion fine, which has been suspended to allow the company to return its remaining funds to users amidst its ongoing bankruptcy proceedings.
Celsius has confirmed that these developments will not affect its Chapter 11 bankruptcy plan or its capability to refund customers. The company has further pledged to cooperate with regulators and government agencies during this period.
However, this announcement was met with harsh criticism from members of the crypto community.
READ MORE: OpenAI Faces FTC Investigation Over Privacy and Data Practices
Many expressed outrage on Twitter, accusing the company of mishandling customers and using corporate and legal jargon in its communication.
They also suggested that the company should use its remaining funds to compensate users instead of dealing with more legal expenses.
Simultaneously, former Celsius CEO Alex Mashinsky has been indicted with multiple criminal charges, including securities fraud, commodities fraud, wire fraud, and manipulation of the CEL token.
This development came after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Celsius and Mashinsky for allegedly making false promises about safe investments via the company’s “Earn Interest Program”.
The U.S. Attorney for the Southern District of New York and the Federal Bureau of Investigation further announced fraud charges against Mashinsky, who was subsequently arrested. In response, Mashinsky pleaded not guilty to the charges of misleading customers and inflating the CEL token.
U.S. Magistrate Judge Ona Wang approved Mashinsky’s release on a $40 million bond, under conditions that restrict his travel and prohibit him from opening new bank or cryptocurrency accounts.
As the company struggles with its legal woes and bankruptcy, Celsius is committed to regulatory compliance and user reimbursement.
Despite the severe backlash, it is yet to be seen how these developments will affect the broader cryptocurrency market.
Other Stories:
Ripple’s XRP Victory Against SEC: A Blow to Regulator’s ‘War on Crypto’
Steven Kinard, the director of Bitcoin mining analytics at the Texas Blockchain Council, a crypto advocacy group, has announced his candidacy for the Texas House of Representatives.
Kinard revealed his plans on July 11, stating his intention to seek the Republican Party nomination for Texas House District 70 in the Dallas-Fort Worth area.
If elected, he would serve a two-year term starting in 2025. Prior to joining the Texas Blockchain Council in March 2022, Kinard had worked for approximately three years at BOK Financial.
In his campaign, Kinard expressed his commitment to promoting “digital freedom” and advocating for “strategic technology investments.”
He is expected to compete against the incumbent Democratic Representative, Mihaela Plesa, who has been serving in the Texas House since 2023.
One of Kinard’s key points of criticism is directed at the Federal Reserve for its attempts to launch a central bank digital currency (CBDC), which he considers a reckless move.
This sentiment aligns with that of other Republican lawmakers, including Florida governor and 2024 presidential candidate Ron DeSantis.
READ MORE: Elon Musk Launches xAI: A New Venture to Unravel the Mysteries of the Universe
Kinard’s campaign website states his intention to actively resist and prevent any research into CBDCs.
Texas, particularly the capital city of Austin, has emerged as a significant hub for cryptocurrency mining activity, especially after the departure of many miners from China.
While a bill aimed at limiting incentives for crypto miners was passed by the Texas State Senate in April, the government has also shown support for incorporating crypto into the state’s Bill of Rights.
Governor Greg Abbott has openly identified himself as a supporter of crypto law proposals.
As the 2024 United States primaries approach in the following months, the crypto and blockchain industry has become a prominent issue for many voters.
Coinbase CEO Brian Armstrong has urged crypto users to support pro-crypto candidates in all 435 U.S. congressional districts, emphasizing the importance of electing officials who understand and advocate for effective legislation to regulate digital assets.
Other Stories:
United States DoJ Moves $299 Million Worth of Bitcoin in Recent Transactions
Bitcoin ETF Approval Could Act as Government’s ‘Seal of Approval’