The Optimism Foundation recently sold approximately 19.5 million OP tokens, valued at nearly million, to an unnamed buyer, with these tokens being sourced from the unallocated segment of their OP Token treasury initially set aside as working capital. This sale is part of the foundation’s management of the Optimism network, a blockchain designed to […]
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Citi Completes Private Market Tokenization Test Using Avalanche
Citi, in alliance with Wellington Management, Wisdomtree, and ABN AMRO, completed a proof of concept for the tokenization of a private fund on top of the Avalanche blockchain. The test used Spruce, an Avalanche subnet, to tokenize the fund and transact the tokenized assets, which were programmed to “automate operations, settle faster, and enable new […]
Bitcoin News
Sam Altman-Backed Crypto Startup Looks To Secure $100 Million For Bitcoin Private Credit Fund
Meanwhile Advisors, a crypto startup backed by the American entrepreneur Sam Altman, has announced plans to raise 0 million for a Bitcoin (BTC) private credit fund.
The fund, known as Meanwhile Private Credit Fund aims to provide institutional investors with access to BTC while targeting an additional 5% yield denominated in the cryptocurrency.
Bitcoin Rally Sparks Launch Of Meanwhile Advisors Fund
According to a report by The Block, Meanwhile Advisors has launched the fund as Bitcoin continues its recent rally, with prices currently falling from the ,000 level down to the ,200 mark.
Zac Townsend, the co-founder and CEO of Meanwhile Group, stated that the belief is that Bitcoin will appreciate significantly in the future, and the fund offers investors a unique opportunity to increase their exposure to digital assets.
The Meanwhile BTC Private Credit Fund adopts a single-close, closed-end structure. Participating limited partners (LPs) will contribute US dollars to the fund, which will be immediately converted to Bitcoin following the single close.
Meanwhile will lend this BTC to borrowers to generate the targeted 5% return in Bitcoin. This structure allows LPs to accumulate more Bitcoin if its price appreciates during the fund’s lifecycle without requiring additional principal investment.
Townsend mentioned that the minimum investment amount per LP is 0,000, with no maximum limit. The fund’s investment period spans three years, followed by a four-year harvest period, resulting in a total term of seven years.
However, capital is returned to investors during harvest, meaning a significant portion of the invested capital may be returned well before the seven-year mark.
Innovative Fee Approach?
Per the report, the Meanwhile BTC Private Credit Fund charges a 2% management fee and a 20% carried interest fee, both in Bitcoin. The carried interest fee only applies when the LP’s Bitcoin holdings are increased.
This fee structure ensures that if Bitcoin experiences substantial price appreciation, Meanwhile does not benefit from the price appreciation itself but rather from generating more Bitcoin for the LPs.
Addressing concerns about risk management, Townsend highlighted that the closed structure of the fund eliminates the risk of a “bank run” scenario that can lead to insolvency. Moreover, the fund focuses on making conservative loans to “creditworthy institutional borrowers”, mitigating risks associated with lending to retail investors at higher rates.
The Block also reported that Anchorage Digital serves as the fund’s custodian. Meanwhile Group’s insurance unit has previously launched a Bitcoin-denominated life insurance policy, and Townsend mentioned plans to introduce an accidental death coverage policy in Bitcoin as well.
When writing, the leading cryptocurrency in the market is trading at ,200, marking a decrease of nearly 2% within the last 24 hours. This decline follows an unsuccessful attempt to solidify its position above the significant ,000 milestone.
Nevertheless, Bitcoin has managed to maintain a 14% increase over the past seven days and is currently holding strong at the support level of ,000, as it sets its sights on achieving a new annual peak.
Featured image from iStock, chart from TradingView.com
Solana Upgrade Ushers in Era of Private Transactions
Solana has successfully implemented its 1.16 upgrade, introducing several new features, including improved runtime support for zero-knowledge proofs and enhancements for validators. However, the highlight of this upgrade is the “confidential transfers,” a feature that allows fully encrypted transactions for SPL tokens, bolstering user privacy.
Solana’s 1.16 Upgrade Bolsters Privacy with Confidential Transfers
Per an announcement via helius.dev, “Solana’s network of validators has successfully reached a super-majority in the adoption of version 1.16.” This upgrade introduces a privacy layer to transactions on Solana with the inclusion of confidential transfers. In essence, these transactions employ sophisticated cryptography, known as zero-knowledge proofs, to hide transaction amounts and SPL token account balances on Solana. This ensures that third parties cannot access these details, thereby boosting user confidentiality.
For activating confidential transfers, those minting new SPL tokens can now select a “confidential transfers” option. Tokens already in circulation can also activate this feature later via a transaction, as mentioned in a blog post by helius.dev. Users have the choice to protect their token balances and conduct transactions privately. The Solana CLI has incorporated commands to facilitate the configuration of confidential transfers.
Solana’s focus with this feature is on confidentiality rather than anonymity. While transactions remain private, wallet addresses are still publicly visible on the blockchain. This maintains accountability while also improving privacy, as detailed in the helius.dev blog post. Confidential Transfers strike a balance between transparency and user discretion over sensitive financial information.
The 1.16 upgrade follows thorough testing on the testnet and canary nodes on the mainnet. This phased introduction enabled the resolution of issues such as node instability and delayed startups before a full network launch. The activation of confidential transfers will also undergo a phased approach within Solana’s “feature gates” framework. Solana’s native cryptocurrency, SOL, currently ranks eighth in market capitalization.
After a significant drop following the FTX crash last year, SOL has risen 19.5% in the past month and has seen a 14% increase against the U.S. dollar this week. However, SOL is still 91% below its all-time high of 9 per coin on November 6, 2021, trading at per coin today.
What do you think about Solana’s latest upgrade and the privacy feature? Share your thoughts and opinions about this subject in the comments section below.
Optimism To Sell 116 Million OP Tokens Via Private Sale: Will The Price React?
Optimism has revealed its plans to sell 116 million OP tokens to seven private buyers. According to the update, this sale is for treasury management tokens.
Based on current prices, this sale will transfer approximately 9 million worth of OP tokens to the buyers. Given the sheer amount of the sale, some traders believe it will likely cause a decline in OP’s price.
Optimism Announces Sale OF 116 Million OP Tokens Following Third Airdrop Event
In detail, Optimism posted a community update on September 20 on selling approximately 116 million OP tokens. The tokens are from the unallocated portion of the OP Token treasury, and these tokens are part of the Foundation’s original working budget of 30% of the initial OP supply.
According to the update, the tokens are subject to a two-year lockup. During the lockup period, the purchasers can delegate the tokens to third parties for on-chain governance.
Also, the announcement stated that from September 20, several transactions will take place with the released tokens. It noted that the transactions are pre-planned.
It bears mentioning that this token sale comes a few days after Optimism announced its third OP airdrop to reward community members for participation in on-chain governance. Optimism released over 19 million OP tokens to over 31,000 unique addresses.
Meanwhile, the OP community received the announcement with mixed reactions, with one user expressing disappointment. He expressed concerns that the token sale will increase Optimism’s circulating supply, impacting the price.
Optimism’s Private Token Sale: Will It Affect OP’s Price?
Some observers have expressed concern that the sale will affect OP’s price negatively, as the buyers may dump their tokens. However, there are a few reasons why this is unlikely to happen.
Firstly, the sale is private, meaning the buyers are not required to disclose their identities or intentions for the tokens. Therefore, it makes it difficult for traders to anticipate the buyers’ actions.
Secondly, the tokens are from the OP treasury’s unallocated portion and are not part of the circulating supply. It means that the sale will have a minimal impact on the availability of OP on the open market.
Furthermore, the tokens are subject to a two-year lockup period. The lockup prevents buyers from selling them on secondary markets until at least 2025, reducing the likelihood of a sell-off that could depress price.
Overall, Optimism can fund its development by raising capital from investors without relying on the public. Such action could lead to increased demand for OP from bullish investors on the project’s long-term prospects.
Historical Data Suggests Private Sales Could Boost OP Price
Other projects have held similar private sales in the past. Recall that Polygon raised 0 million last year in a private token sale led by Sequoia Capital India. Also, in 2021, Arbitrum raised 0 million in a private token sale led by Lightspeed Venture Partners.
In both of these cases, the private token sales positively impacted the price of the respective tokens. The Polygon MATIC’s price increased by over 50% in the two weeks following the announcement of the private sale.
Similarly, the price of AAVE increased by 20% in the two weeks following Arbitrum’s private sale announcement.
Therefore, based on this historical precedent, the private sale could benefit OP in the long run. However, note that the cryptocurrency market is volatile, and OP’s price is not guaranteed to increase.
Report: FTX Co-CEO Ryan Salame in Plea Deal Talks; Private Jet May Be Forfeited
A Bloomberg article, citing “people familiar with the case,” reveals that FTX’s co-CEO Ryan Salame is allegedly in talks with prosecutors, and a plea agreement could be forthcoming. Insiders also emphasize that Salame’s privately owned aircraft may be surrendered as part of the suspected plea deal.
Private Jet on the Bargaining Table as FTX’s Salame Discusses Plea Deal
Bloomberg’s Ava Benny-Morrison quotes sources who say Ryan Salame, the former co-CEO of FTX, could be negotiating a settlement with federal prosecutors concerning the collapse of the now-defunct cryptocurrency exchange.
Individuals in the know stated that Salame might enter a plea agreement as early as the upcoming month. Former FTX leader Sam Bankman-Fried is scheduled for trial in October after pleading not guilty to the charges against him.
Several colleagues have already reached plea agreements with federal prosecutors, including FTX co-founder Gary Wang, former FTX director of engineering Nishad Singh, and ex-Alameda Research CEO Caroline Ellison.
In late April, Federal Bureau of Investigation (FBI) agents searched Salame’s Maryland residence and confiscated his cell phone. Reports also indicate that Salame snitched on Bankman-Fried days before FTX declared bankruptcy.
The report by Benny-Morrison further specifies that prosecutors aim to confiscate some luxury assets acquired by FTX senior staff during the company’s peak. Sources mentioned by Benny-Morrison reveal that law enforcement is keen on having Salame forfeit his private jet.
These individuals indicated that the aircraft may play a role in the plea bargain negotiations. The report noted that messages seeking comment from Salame’s lawyers were not immediately returned.
How do you perceive the potential forfeiture of luxury assets, including Salame’s private jet, in the ongoing legal saga surrounding FTX’s collapse? Share your thoughts and opinions about this subject in the comments section below.
Kaspersky Uncovers Counterfeit Trezor Wallets That Jeopardize Crypto Assets With Pre-Knowledge of Private Key
Kaspersky, the multinational cybersecurity and anti-virus provider, made a startling revelation on May 10th. According to their report, a victim of a crypto hack had unwittingly purchased a counterfeit Trezor Model T from a “trusted seller through a popular classifieds website.” The researchers at Kaspersky were able to extract the custom firmware that the hackers had installed on the device. This revealed that the private key was already known to the hackers before the victim had even purchased the machine.
Cybersecurity Firm Kaspersky Investigates Phony Trezor Hardware Wallet
It seems crypto enthusiasts need to be extra cautious about counterfeit Trezor hardware wallets circulating in the market, designed with the malicious intent of pilfering cryptocurrency holdings. This unsettling revelation underscores the imperative for heightened prudence and attentiveness when acquiring hardware devices related to digital currencies.
Kaspersky, the Russia-based cybersecurity firm, exposed this disconcerting development on May 10, 2023, subsequent to an examination of a forged Trezor Model T that had successfully stolen a victim’s virtual funds. The unsuspecting victim acquired the counterfeit Trezor from a “reliable vendor on a well-known online marketplace.”
Furthermore, the device’s packaging was meticulously sealed and utilized Trezor’s tamper-resistant holographic labels typically affixed to their products. “At first cursory glance, the wallet we examined appeared to be exactly the same as a genuine one, and showed no signs of tampering,” stated the researchers at Kaspersky. Yet, on a fateful occasion, “a large sum of money was transferred to someone else” a few weeks after the victim loaded the wallet with their cryptocurrency assets.
In an intriguing twist, Kaspersky also revealed that the fraudulent hardware wallet executed unauthorized transactions without even being connected to a computer. “When handling the wallet, nothing felt suspicious either: all the functions worked as they should, and the user interface was no different from the original one. However, mindful of the theft that had occurred via it, we delved deeper,” explained Kaspersky.
A notable cause for concern arose when the counterfeit Trezor was found to possess bootloader version 2.0.4., a bootloader release that was deliberately omitted due to previous instances involving counterfeit devices. Gaining access to the internal components proved challenging due to copious amounts of adhesive and tape, a stark departure from Trezor’s meticulous ultrasonic bonding technique.
Moreover, distinct traces of soldering were evident, alongside the presence of an “entirely different microcontroller.” Kaspersky unveiled that their experts successfully extracted the counterfeit wallet’s firmware and, through painstaking code reconstruction, made a startling revelation: “attackers indeed knew the private key in advance.” Armed with this information, the attackers could commandeer the funds through an alternate wallet employing the same private key, thereby pilfering the valuable assets.
“The fake crypto wallet would operate as normal, but the attackers had full control over it from the very beginning,” Kaspersky detailed. “According to the transaction history, they were in no hurry, waiting a whole month after the wallet was credited for the first time before they grabbed the money. The owner had no protection whatsoever: the game was lost from the very moment the money first arrived in the Trojan wallet.”
The recent revelation serves as a stark reminder that individuals invested in cryptocurrencies must exercise heightened vigilance to safeguard their valuable digital assets. Over the years, attackers have honed their techniques for pilfering crypto holdings, presenting an ever-present threat.
While hardware wallets have long been regarded as a trusted solution, users must now grapple with the risks entangled within the intricate web of supply chains and so-called reputable vendors. Kaspersky’s groundbreaking discovery underscores the pressing need for individuals to exercise utmost diligence when entrusting significant sums of funds to a hardware device.
What steps do you think crypto enthusiasts should take to protect their digital assets from the growing threat of counterfeit hardware wallets? Share your insights and strategies in the comments section below.
Long Queues Seen At Silicon Valley Bank-Owned Boston Private – A Bank Run?
Long queues have been observed at Boston Private, a banking service provider, that was recently acquired by Silicon Valley Bank (SVB).
Bank Run At Boston Private Bank?
According to Lawrence Lepard, an investment manager, Boston Private might be currently experiencing a bank run.
As of March 11, there were long queues as depositors looked to withdraw their hard-earned cash.
Shades of 1930’s. This is my bank in Wellesley this morning. Boston Private Bank, recently acquired by Silicon Valley Bank. Ruh, roh. pic.twitter.com/MAD46ozShx
— Lawrence Lepard, "fix the money, fix the world" (@LawrenceLepard) March 10, 2023
In 2021, Boston Private was acquired by SVB for billion.
The collapse of SVB has also put USDC, the stablecoin issued by Circle, a consortium of among other companies, under immense pressure.
At the time of writing on March 11, USDC had de-pegged, trading at .96 to the USD.
SVB is one of six banking partners Circle uses for managing around a quarter of its reserves held in cash. While Circle and USDC continue to operate normally, the position of USDC in crypto and the uncertainty surrounding SVB has caused a ripple effect across the market.
The Federal Deposit Insurance Corporation (FDIC) has stepped in and is now the receiver at SVB. This move would likely prevent a much larger crisis in what is considered one of the largest bank failures since 2008.
All assets held in SVB have now been frozen and can only be accessed by insured depositors. However, uninsured depositors will only be gifted a coupon to access part of their money within the next week. With FDIC as the receiver, many of the bank’s employees would not receive their paychecks if they run their payroll through SVB.
The main office and all branches of SVB will reopen on Monday, March 13. The FDIC will pay uninsured depositors an advance dividend within the next week. As the FDIC sells all the bank’s assets, future dividend payments may be made to uninsured depositors.
Silicon Valley Bank Had Billions In Assets And Deposits
As of December 31, 2022, Silicon Valley Bank had approximately 9 billion in total assets and about 5 billion in total deposits. The amount of deposits in excess of the insurance limits is yet to be determined. The number of uninsured deposits will be determined once the FDIC obtains additional information from the bank and its customers.
The collapse of SVB is a reminder that the traditional finance system is also very fragile, showing the importance of diversification between fiat and digital assets. It’s worth knowing that while the FDIC has stepped in, less than 3% of users are insured, meaning that most customers, around 97%, may be left holding the bag.
Russia’s Largest Private Bank Launches Digital Asset Platform
Alfa-Bank, one of the major Russian banking institutions, has established its own platform for digital financial assets. The launch became possible after Russia’s monetary authority added Alfa-Bank to its register of digital asset issuers this week.
Privately-Owned Alfa-Bank Sets Up Digital Asset Platform With Central Bank’s Permission
Russia’s Alfa-Bank has launched ‘A-Token,’ a platform allowing the issuance of digital financial assets (DFAs), the business news portal RBC reported, quoting its Director of Innovation Denis Dodon. The bank was able to do so after the Bank of Russia announced its registration as a DFA issuer on Thursday.
The authorization makes Alfa-Bank, which is the country’s biggest private bank, the second-largest banking institution that can mint digital coins, after the state-owned Sberbank, which is the largest bank in the Russian Federation in terms of assets.
The list of licensees also includes the fintech company Lighthouse, which is cooperating with VTB bank, and the tokenization service Atomyze, which is working in partnership with Rosbank. These have already issued various digital assets. Sberbank is preparing to launch a defi platform as well.
Alfa-Bank plans to issue its own DFAs on the new platform, with a pilot release scheduled for the end of February. It also wants to provide its infrastructure to other market participants. The bank hopes to work with both investment companies and private investors and A-Token will be accessible through its mobile app.
Dodon further explained that the platform will issue two types of financial instruments — DFAs equivalent to traditional financial instruments in the form of monetary claims and entirely new investment instruments, including tokenized physical assets such as precious metals.
Alfa-Bank announced its intentions to create an infrastructure for DFAs in September, 2022. Their issuance in Russia is regulated by the law “On Digital Financial Assets” which went into force in January, 2021. While this legislation is mostly devoted to digital assets that have an issuer, Russian authorities have been also developing a legal framework for decentralized cryptocurrencies like bitcoin.
Crypto payments have been considered in Moscow as a way to circumvent Western financial restrictions imposed over the war in Ukraine and a digital ruble is also in the making. Both Alfa-Bank and Sberbank have been placed under sanctions by the U.S. Treasury Department and Russian access to crypto assets has been targeted by the European Union.
Do you expect other Russian banks to launch digital asset platforms in the future? Tell us in the comments section below.
Protecting Your Crypto Assets: The Importance of Private Keys
Cryptocurrencies offer a world of opportunities. Quick and easy payments, innovative financial services, and inclusivity to previously unbanked regions in the world are all made possible by the crypto ecosystem.
But with these opportunities come challenges and risks. Many crypto platforms lack strong operational, governance, and risk practices. These problems have emerged with huge ramifications in 2022 with the collapse of Terra Luna — one of the biggest stablecoins — and FTX — the second biggest exchange that filed for bankruptcy.
Beyond these collapses, there are also several high-profile cases of hacking-related theft of customer funds on centralized and DeFi platforms. These problems have reinforced the debate about the importance of private keys.
We recently caught up with Georgios Kalmpazidis, co-founder and CEO of Swaps.app, who shared his thoughts on the topic.
Q — What do you think about the current security problems plaguing the blockchain industry?
Talking about blockchains, maybe this is the most transparent, secure and democratic technology and system humanity has ever created. It’s getting increasingly popular over the years, and today besides crypto, it is widely used in many other fields, such as health care, property, smart contract, etc.
Blockchain is a relatively new technology that currently meets several security challenges, but I would like to look at those challenges from two perspectives – blockchain and users. From the blockchain perspective, most vulnerabilities are related to the sybil, 51% and routing attacks, which are common issues, are successfully taken care of by cyber security professionals.
Regarding the user side, the main challenges are phishing attacks and the security of private keys, which are some of the top issues. When we look deeper, the problems here are similar to the ones in traditional financing, and consistently guiding and educating the users is the key to protecting their funds and fighting fraudsters. It should be one of the top priorities for the companies.
Above all the mentioned factors, there is another major problem, which is the biggest roadblocker for the industry’s organic development. I call it an irresponsible and immature business strategy, which misleads and mistreats the users bringing them enormous losses. Unfortunately, we have several similar cases in the industry that we all can recall.
Q — Do you think the collapse of major crypto platforms threatens crypto adoption?
The drop in market capitalization and what happened with some of the major crypto platforms during 2022 led to a sense of uncertainty regarding the crypto adoption rate. Past events have eroded trust in the industry and affected the market, raising the urgency over keeping private keys independently and securely.
At Swaps.app we are optimistic that the industry will survive after all those collapses. Definitely, the pace would be different, but through more comprehensive regulation, the industry will become much healthier, more trustworthy and more consistent.
Q — How important is it for users to hold their private keys?
As I mentioned earlier, the security of private keys remains one of the top issues, especially amid the current market situation. It’s the main key to the users’ funds and should be owned and kept by them. Of course, it also depends on the users’ needs and trading behaviour. Many crypto platforms offer custodial wallet services that offer high-level security and protection of the wallet and are convenient for those who actively trade crypto. In this case, users must be picky when choosing between public custodial wallets. Nevertheless, we advise always keeping most of your funds on your private key.
Q —- How can crypto users best protect their private keys from being guessed or hacked?
When protecting private keys, I always compare it with the situation when we lock the front door after leaving home. We never keep it open or leave the key on the lock. It’s the same with the private keys. If it is weak or unprotected, your funds are at risk.
The first step, maybe a trivial one, for users to protect their private keys is to keep their credentials private from others. I call it trivial because it sounds basic, but in most cases, users mistakenly share it with hackers during phishing attacks.
Also, it’s vital to use keep the two-factor authentication on, avoid simple combinations of passwords, don’t save your password in the browsers, regularly clear the cookies and caches of your browser, and save your credential in a safe way where no one, even a close friend or a family member, has access, use malicious link detection software or apps, improve device security with antivirus software, keep the device system and browser up to date, avoid connecting to the open or public WiFi networks.
We constantly remind our users of these simple rules and encourage them to keep their personal information and credentials safe when they buy crypto at Swaps.app.
Q —- What are the security features that crypto platforms need to incorporate to prevent high-profile hacks and scams
Security is the cornerstone of the crypto industry, and while platforms compete over price, rates, speed and other important parameters, security wins the competition. After it comes the rest.
A cryptocurrency system requires secure creation of cryptographic keys and seeds. Companies shoul examine their organization’s security measures in this area, paying close attention to confidentiality and unguessable numbers.
Maintaining cryptocurrency wallet/key usage integrity is also critical. Risks such as lost or stolen keys or unintentional disclosure of the wallet holder’s identity can be avoided with best practices such as key storage and more firm ongoing assessments.
Q —- What do you think will be the biggest trend in blockchain for the next 12 months?
There are many blockchain trends to look out for in 2023, but the biggest one for me is the wide usage of CBDCs, as more governments will introduce their digital assets. At Swaps.app, we look forward to supporting CBDCs for users and business partners whenever they are public. The rising investment in stablecoins and more interest towards DeFi will be blockchain trends, too, during the next 12 months.
Q —- What has been the toughest challenge you’ve faced in our industry so far?
High velocity and trust issues in the industry were our toughest challenges. I can proudly notice that due to the consistent improvements and updates Swaps.app succeeds in providing high-quality and seamless crypto purchases for customers and quick and secure crypto and fiat payment processing for online businesses.
Also, we are very careful and selective about choosing liquidity, fraud-prevention and payment partners, making us a secure crypto platform. During the last 12 months, we’ve finished our integration with industry-leading companies, including TrueLayer, Stripe, Sumsup, and Binance, updated our services, and introduced new coins and features, making a big leap to the next chapter of the company’s history.
Swaps.app is a fully compliant and regulated European crypto company which effectively combines industry-leading security with a blazingly fast and incredibly easy-to-use platform to bring buying and selling crypto to everyone, beginner or expert, company or individual.