Uniswap Labs has responded to the U.S. Securities and Exchange Commission’s Wells Notice, asserting that its protocol does not fall under the agency’s regulatory jurisdiction. The response emphasizes the autonomous nature of Uniswap’s decentralized finance (defi) technology and argues against the classification of its activities as operating an exchange or broker. Uniswap Responds to SEC […]
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Tether Counters Deutsche Bank’s Stablecoin Warning, Defends Reserve Transparency
Tether strongly criticized a Deutsche Bank report that raised concerns about the stability of stablecoins, including Tether’s dollar-pegged token, predicting a potential crisis similar to the 2022 collapse of Terrausd, which erased billions from the market. Deutsche Bank analysts, citing a study of 334 historical currency pegs, suggested that most stablecoins will face significant challenges […]
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Edward Snowden Defends Crypto Privacy, Criticizes DOJ for Samourai Wallet Arrests
Edward Snowden criticized the U.S. Department of Justice (DOJ) for targeting app developers aimed at restoring financial privacy, responding to the arrest of the founders and CEO of cryptocurrency mixing service Samourai Wallet on charges related to money laundering and operating without a license. Snowden’s remarks show his ongoing support for financial privacy within the […]
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Paradigm Says Blast Launch ‘Crossed Lines’ in Messaging and Execution, Pacman Defends Platform Amid Criticism
Amid the rapidly evolving landscape of Ethereum layer two (L2) solutions, Blast, a new entrant, has sparked a wave of discussions in the crypto community. Spearheaded by Pacman, known for his work on the non-fungible token (NFT) marketplace Blur, Blast has garnered both significant funding and scrutiny. Despite being a lead investor in the project, Paradigm’s head of research, Dan Robinson, highlighted issues with “the messaging and execution” of Blast’s launch strategy, while Pacman defends the platform’s mechanics and vision.
Paradigm Addresses Blast Launch
Dan Robinson of Paradigm, a key investor in the Ethereum L2 platform Blast, has recently discussed the project’s launch via the social media platform X. Robinson cited issues with the messaging and execution, particularly the decision to launch the bridge before the L2 and the restriction on withdrawals for three months.
He remarked, “We at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the bridge before the L2, or not to allow withdrawals for three months, since we think it sets a bad precedent for other projects. We also think much of the marketing cheapens the work of a serious team.”
Despite these concerns, Robinson acknowledged the team’s proven track record, including their previous work on Namebase and Blur. He stated, “We backed Pacman and his cofounder because they demonstrated an ability to build great products over many years.” Robinson also shared insights into his collaboration with the team on the NFT-collateralized lending protocol, Blend, emphasizing their technical talent and vision for scaling Blur through the L2 chain.
Paradigm, known for its role in investing in the crypto ecosystem, takes its responsibility seriously, according to Robinson. He mentioned ongoing discussions with the Blast team and Paradigm’s commitment to investing in strong, independent founders. “We invest in strong, independent founders who we don’t always agree with. But we understand that people may look to us to set an example on best practices in crypto. We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously,” said Robinson.
Pacman Refutes Allegations
Addressing the allegations of Blast being a Ponzi scheme, Pacman, the entrepreneur behind the platform, offered an explanation of the yield mechanics. He clarified that the yields come from sources like Lido and Makerdao, stating, “The yield that Blast provides users can feel too good to be true, so this meme is understandable. But to put it simply, the yield Blast provides comes (initially) from Lido and Makerdao.”
Pacman also refuted claims about Paradigm’s involvement in Blast’s go-to-market (GTM) strategy, emphasizing the independence of their approach. “Paradigm had zero involvement in Blast’s GTM. Candidly, they probably would have asked me to change a lot about Blast’s launch if they had been involved,” he explained. He highlighted Paradigm’s expertise in technical design and their contributions to Ethereum development.
In response to criticism over Blast’s invite rewards system, Pacman justified the approach as essential for building a robust community. He argued that such mechanisms are not new and are crucial for the growth of the platform. “If you are a user and help make Blast a thriving L2 by bringing friends along, you are providing real value and should be rewarded for that. That’s why invite rewards exist,” Pacman concluded.
What do you think about Paradigm’s statement? What do you think about Pacman’s defense? Share your thoughts and opinions about this subject in the comments section below.
XRP News: Ripple CTO Defends Clawback Feature On The XRPL
Ripple’s Chief Technology Officer (CTO), David Schwartz, has always been quick to come to the defense of the crypto firm and its technology. This time, he has defended Ripple developers implementing a newly proposed ‘Clawback’ feature on the XRP Ledger (XRPL).
Why The Clawback Feature Is Necessary
In a tweet shared on his X (formerly Twitter) platform, Schwartz mentioned that while initially having reservations about the feature as he felt it was “redundant,” he later realized its importance as it differed from the existing freeze feature.
The “clawback” amendment is now eligible for voting. This allowers issuers of new assets specifically created with this feature enabled to claw back a specified quantity of the asset from a holder.
Some thoughts: … https://t.co/OmrerirRQz
— David “JoelKatz” Schwartz (@JoelKatz) October 2, 2023
As the name suggests, the Clawback feature allows a token issuer to “claw back” tokens when there is fraudulent activity or for recovery purposes, like when a user loses access to their account.
Related Reading: Bitcoin Investment Strategy: Analyst Sets Hefty Exit Price
He noted that the clawback feature was primarily to be used to fulfill legal obligations, as in the case of a stablecoin issue fulfilling their redemption obligations or where a court order necessitates the need to use such a feature.
From this premise, he explained that this feature ensures that this event is represented on the ledger, unlike the freeze feature, which doesn’t highlight why an asset was frozen. As such, this latest feature allows for better accountability and makes audits less complex.
Furthermore, he mentioned that the freeze feature was more of a “nuclear” option, unlike the clawback feature, which does less damage and can seen as a viable and probably better alternative.
Schwartz reiterated that this clawback didn’t apply to XRP and suggested that it was an option for stablecoin issuers, noting that other “blockchains that have stablecoins on them have some version of this clawback feature” and how it helped solved an accountability problem.
XRP Ledger Feature Receives Cold Reception
Despite Schwartz’s justification of the feature, many still showed displeasure with it as it undermined the ethos of decentralization and users’ privacy. One X user (@bigcjat) explained that a clawback feature seemed more drastic, unlike the freeze feature, as the former stripped users of their tokens, unlike the latter, where the user still maintained control of his tokens.
He went on to quiz whether this token was simply proposed because of the ‘recent partnership’ considering that the feature was never proposed before now. He then suggested that the crypto firm and its blockchain may have been compromised as he stated, “Money taints, even decentralized ledgers.
In response, Schwartz stated that, to the best of his knowledge, the driving force behind this feature was to ensure accountability as it would reflect the legal obligation of an issuer. He is not aware of anyone stating that they will only partner with Ripple if the XRPL supports clawback.
Other users weighed in on the conversation, with some showing support for the feature, stating that stablecoin issuers needed to implement such a feature. On the other hand, others argued that the clawback feature wasn’t necessary, with a particular user stating that this risk is “akin to being SIM swapped.”
Another concern raised is that token issuers could use this feature maliciously, especially when experiencing financial difficulties. That particular user gave an example of FTX being able to claw back their FTT tokens or a stablecoin issuer like Tether clawing back their USDT tokens in the event of financial difficulty.
The X user @bigcjat once again came into the conversation and noted that Schwartz’s talks about “legal obligation” only undermine the essence of blockchain technology as there was no need for a ledger if the “actual value” and “rules” were off the ledger.
However, Schwartz noted “several benefits” to putting these transactions on the ledger. One of them is that a public blockchain ensures that “the total legal obligations of the issuer can be completely public in a verifiable way.”
The clawback feature will still need to be voted on by validators on the XRP Ledger before it becomes implemented. Once implemented, stablecoin issuers must decide to enable it before they can create their tokens on the network.
Crypto Firm Riot Defends Texas Power Strategy After Headlines Claim State ‘Paid’ Miner
Bitcoin mining company Riot Platforms is defending its participation in Texas’ electricity market programs after recent headlines claimed the state ‘paid’ the miner over million to reduce power in August.
Riot Platforms Sets the Record Straight
In a statement released Friday, the Nasdaq-listed Riot asserted it earned just million through the Electric Reliability Council of Texas’ (ERCOT’s) ancillary services market, while selling million in pre-purchased energy back to its retail provider TXU Energy during August’s heatwave. The company called its ancillary services premium “less than one percent” of the near billion ERCOT spent to ensure grid reliability as temperatures soared.
Riot, which operates a cryptocurrency mining facility in Rockdale, Texas, said it provided over 84,000 megawatt hours of power back to the grid last month by temporarily halting mining operations. This helped reduce strain on the system during extreme weather, preventing disruptions for consumers.
“Riot actively participates in several demand response programs for the benefit of all Texans,” the company statement read. “We are proud to contribute to the overall health and prosperity of the state that has helped our company to grow into the innovative, thriving team that it is today.”
Recent headlines stemming from a CNBC article claimed the state of Texas paid Riot .7 million to shut down last month. Riot contends the reporting was “sensational and inaccurate,” failing to capture the nuances of Texas’ deregulated power market and direct response systems. States and energy producers all across the country are involved with ancillary service programs.
The company says its participation in ERCOT’s ancillary services market is a “competitive bidding process” where large commercial customers like bitcoin miners bid to receive payments for reducing electricity use during peak demand periods. This helps stabilize the grid at critical times.
Riot also stressed that selling pre-purchased energy back to providers like TXU Energy allows it to earn credits that reduce future power bills. This can be an efficient economic move when mining is paused.
As one of the largest publicly traded bitcoin miners in North America, Riot has become a focal point in debates over cryptocurrency’s energy footprint. In the press release announcement, the company maintains its involvement in Texas grid programs provides reliability and cost benefits to consumers, while supporting local jobs.
What do you think about Riot’s statements about its demand response systems and working with ERCOT’s ancillary service programs? Share your thoughts and opinions about this subject in the comments section below.
Former SEC Official Defends Chair Gensler — Urges Crypto Community to Quit Personal Attacks, Focus on Facts
The U.S. Securities and Exchange Commission (SEC)’s former head of internet enforcement has defended SEC Chairman Gary Gensler’s approach to regulating the crypto industry. “It’s time to attack the facts and law on SEC positions and quit the personal attacks on the SEC Chair or the SEC staff,” he stressed. “It’s an anemic and flawed pivot that does not work in a courtroom and is a transparent and bush-league attempt to rally the mob.”
Stark Defends SEC Chair Gensler
Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark has defended SEC Chairman Gary Gensler, calling on the crypto community to quit personal attacks on him. Stark is currently president of cybersecurity firm John Reed Stark Consulting. He founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years.
Gensler has said several times that all crypto tokens, besides bitcoin (BTC), are securities. His stance has raised concerns among many who perceive it as a preconceived judgment. However, when questioned in April by Congressman Patrick McHenry regarding whether ether (ETH) is a security, Gensler evaded a direct answer, insisting he will not make any prejudgments on the matter.
Responding to some people calling for Gensler to recuse himself from enforcement actions concerning crypto, Stark cited Hester Peirce, a pro-crypto SEC commissioner widely recognized in the cryptocurrency community as “crypto mom” as an example. He asserted:
SEC Commissioner Hester Peirce has a clearly pro-crypto ethos but never in a million years would I expect her to recuse herself because of her beliefs. And the same goes for SEC Chair Gary Gensler.
He explained that “Commissioner Peirce has dissented from, or criticized, just about every SEC effort to stop crypto-madness.” In addition, she “blames the SEC for crypto’s massive collapse and impending doom,” which Stark likened to “the CEO of Marlboro blaming the FDA for lung cancer caused by cigarettes.”
Stark stated: “With all due respect to Hester, her pro-crypto antics not only place at risk the investors she is sworn to protect, but they also don’t pass the straight face test.” He advised:
It’s time for Commissioner Peirce to abdicate all ‘crypto mom’ duties and Big Crypto fealty and join the litany of expert computer scientists who believe that when it comes to crypto/defi/NFTs and other web3 nonsense, there is no there there. But recusal? Absolutely not.
Many crypto proponents have criticized Gensler for taking an enforcement-centric approach to regulating the crypto industry. The SEC chairman is also heavily scrutinized for meeting with executives of the collapsed crypto exchange FTX, including former CEO Sam Bankman-Fried, who is currently facing multiple criminal charges.
Stark believes that both Gensler and Peirce have earned the right to be a member of the SEC and both deserve to press their points of view whenever they please. Furthermore, they have the freedom to decide whether or not to hold meetings with cryptocurrency executives as frequently as they want. “That is not regulatory capture but is good communication and education,” Stark said.
Moreover, Stark stressed: “I have taught a cyber/securities regulation course at both Georgetown and Duke Law Schools for 20 years — and what I say in the classroom is irrelevant to how I served as an SEC enforcement lawyer. The same should go for Chair Gensler.”
Stark also shared that during his 11-year tenure as the chief of the SEC Office of Internet Enforcement, he actively engaged with various individuals from the securities industry. He noted that these interactions were essential for him to acquire knowledge, stay updated, and attentively listen to different perspectives. “This was not unethical, it was in my job description, and the same goes for Chair Gensler,” he emphasized, concluding:
It’s time to attack the facts and law on SEC positions and quit the personal attacks on the SEC Chair or the SEC staff. It’s an anemic and flawed pivot that does not work in a courtroom and is a transparent and bush-league attempt to rally the mob.
Do you agree with former chief of SEC internet enforcement John Reed Stark? Let us know in the comments section below.
US Treasury Secretary Defends Dollar Dominance as Emerging Markets Push to De-Dollarize
U.S. Treasury Secretary Janet Yellen has defended the dominance of the U.S. dollar amid rising efforts by emerging countries to de-dollarize. Brazilian President Luiz Inácio Lula da Silva, in particular, is set to raise the issue of de-dollarization at the next BRICS meeting. “There is a very good reason why the dollar is used widely in trade,” Yellen argued.
Yellen Defends US Dollar’s Hegemony
U.S. Treasury Secretary Janet Yellen defended the global dominance of the U.S. dollar Friday at a press conference in Paris, where she attended a summit on global finance hosted by French President Emmanuel Macron.
Brazilian President Luiz Inácio Lula da Silva, who also attended the summit, appeared on a panel with South African President Cyril Ramaphosa. Reiterating his call for countries to abandon the U.S. dollar and trade in their own national currencies or other alternatives, the Brazilian leader stressed that the use of the USD in international trade puts countries like Brazil at a disadvantage.
Ramaphosa responded to Lula’s de-dollarization push by saying that “the issue of currency” would be “on the agenda” for the upcoming BRICS meeting, which South Africa is hosting in August, the Financial Times reported. The BRICS countries are Brazil, Russia, India, China, and South Africa.
Commenting on emerging countries, including Brazil, pushing for de-dollarization, Yellen noted that it would be challenging for countries to find a viable alternative to the U.S. dollar, which has dominated global trade for decades. The treasury secretary was quoted as saying:
There is a very good reason why the dollar is used widely in trade and that’s because we have deep, liquid, open capital markets, rule of law and long and deep financial instruments.
While Yellen defended the U.S. dollar, she acknowledged in April that over time, the use of financial sanctions “could undermine the hegemony of the dollar.” She also said earlier this month that the ongoing trend of countries seeking to establish an alternative reserve currency to rival the U.S. dollar “is something that we simply have to expect.” In addition, she emphasized that no country is able to replicate the USD, including China.
Meanwhile, a growing number of emerging markets are ramping up efforts to de-dollarize, including members of the BRICS economic bloc and the Association of Southeast Asian Nations (ASEAN). The BRICS also has a proposal for a common currency that is expected to be discussed at the upcoming summit in August.
Do you agree with Treasury Secretary Janet Yellen about the U.S. dollar’s dominance? Let us know in the comments section below.
Solana Bulls Defends $10; Here Is Why This Is Good For Bulls
- SOL’s price bounces off key support of as price rallies to a high of as bulls feel a measure of safety.
- SOL’s price continues to look bearish with the market’s current state, as most traders and investors remain cautious.
- SOL’s price bounces from a low of on the daily timeframe as the price looks weak, trading below 50 and 200 Exponential Moving Average (EMA)
Solana (SOL) has had a rough start this month, with the price action not looking nice after suffering a drastic price decline from a region of to due to the FTX fiasco, which has had a more direct impact on the price. Despite the relief bounce from Solana (SOL), the price still trades below the key region of interest that would attract the attention of many buyers. The Domino effect of the FTX saga and other huge investors has left the market at a standstill as the market is yet to make a major move leading to much fear about where the market could be headed. (Data from Binance)
Solana (SOL) Price Analysis On The Weekly Chart
Despite the uncertainty and turbulence that has affected the price of Solana (SOL) and the crypto market at large, many altcoins are struggling for survival, trying to stay afloat as the prices of altcoins continue a downward price movement.
Solana (SOL) has suffered more price loss, and the community has been affected and, as such, needs more rebuilding in terms of price and trust for the project after the damage caused by FTX.
SOL’s price declined from a region of to a region of as SOL lost its key support of . The price of SOL failed to hold above , leading to price retesting lower price points.
The price of SOL continues to hold above , indicating a good sign for the price of SOL on the weekly chart and other timeframes. If the price of SOL loses this region of interest, this will lead to lower prices, and panic could set in.
Weekly resistance for the price of SOL – .
Weekly support for the price of SOL – .
Price Analysis Of SOL On The Daily (1D) Chart
The price of SOL remains considerably weak in the daily timeframe as the price trades above after SOL saw its price decline from to as the market continues in its state of uncertainty.
SOL’s price continues to struggle as price aims for more relief bounce from this region. The price of SOL needs to reclaim and trade above for a short-term relief bounce. The , corresponding to the Fibonacci retracement value of 38.2%, will strongly resist the SOL price.
If the price of SOL flips the region of , we could see more rallies for SOL to a region of or more.
Daily resistance for the SOL price – .
Daily support for the SOL price – .
Featured Image From zipmex, Charts From Tradingview
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Litecoin (LTC) Defends $60 As Altcoins Suffer; Here Are Levels To Watch
- LTC’s price continues to hold strong as the bull refuses to give in to the FTX fiasco as price trends are above .
- LTC’s price continues to look strong despite bearish market sentiments, as things look uncertain for most traders and investors.
- LTC’s price looks strong and continues to hold above the daily 50 Exponential Moving Average (EMA).
The price action displayed by Litecoin (LTC) has been a joy to watch, holding up nicely above the daily range price channel it has formed in the last few weeks despite the uncertainty in the market. The market continued to look like a fairytale, with many traders and investors disheartened, following the collapse of the FTX effect affecting small crypto projects like Genesis as the market continues to look weak on each passing day signifying the bottom is not yet leading to the price of many altcoins declining. Despite the Domino effect of FTX, this has had less effect on Litecoin (LTC) as it continues to show its strength to rally higher. (Data from Binance)
Litecoin (LTC) Price Analysis On The Weekly Chart
The past few days have been filled with so much turbulence in the crypto space as many altcoins have struggled to show strength after losing their key support holding off price decline.
The current uncertainty surrounding the market has resulted in reluctance on the part of traders and investors to make altcoin purchases in the case of LTC looking much different as the price of LTC continues to show bullish price actions as price eyes a rally to a region of -.
FTX and Genesis’s news have hugely impacted the price of altcoins, including LTC, sending the price into a spiral movement to a region of as the price bounced off this region to reclaim .
After the price of LTC closed above the weekly high of , there are high chances of the market going higher, with the prices of LTC looking more with the weekly open.
Weekly resistance for the price of LTC – .
Weekly support for the price of LTC – .
Price Analysis Of LTC On The Daily (1D) Chart
The price of LTC remains considerably strong in the daily timeframe as the price trades above resistance after bouncing off from the region of on several instances, giving bear more of a sense of belief before rallying to .
The price of LTC trades at ; the price needs to hold strong above this region for the price to rally to a high of , where it would face resistance to trend higher. If the price of LTC breaks below , we could see more sell-off, as this has been an area of interest to hold off bears.
Daily resistance for the LTC price – .
Daily support for the LTC price – .
Featured Image From zipmex, Charts From Tradingview
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