Autor Cointelegraph By Zhiyuan Sun

Controlling shareholders' stakes in GBTC are 'highly illiquid': Report

Controlling shareholders' stakes in GBTC are 'highly illiquid': Report

Uverejnil používateľ | nov 28, 2022 |

According to a new Twitter post by Ryan Selkis, CEO of blockchain research firm Messari, Grayscale Bitcoin Trust’s (GBTC) controlling shareholders Genesis Global and Digital Currency Group cannot simply “dump” their holdings to raise more capital. Selkis explained that the restrictions are due to Rule 144A of the U.S. Securities Act of 1933, which forces issuers of over-the-counter, or OTC, traded entities to give advance notice of proposed sales, as well as a quarterly cap on sale of either 1% of outstanding shares or weekly traded volume. 2/ DCG bought nearly $800mm worth of GBTC shares since the premium flipped to a discount in early 2021.DCG’s board authorized up to $1.2bn of share purchases across Grayscale Trusts.In light of the current liquidity issues, the remainder is likely on hold indefinitely.— Ryan Selkis (@twobitidiot) November 28, 2022Based on calculations provided by Selkis, this works to a maximum of $62 million in liquidations per quarter based on the outstanding shares test and $23 million in liquidations per quarter based on the trading volume test. “It’s *much* more likely DCG-Genesis refinance using GBTC as collateral,” he wrote.Grayscale Bitcoin Trust, the largest Bitcoin investment trust in the world, is currently trading at a discount to net asset value (NAV) of 40% due to liquidity issues surrounding its operator Genesis Global and rumors of insolvency surrounding its owner Digital Currency Group. It is said that Digital Currency Group bought nearly $800 million worth of GBTC shares since it began trading at a discount to NAV. The firm and its affiliates now own roughly 10% of the trust’s outstanding shares.After Genesis Global began halting withdrawals on Nov. 16, rumors began circulating that its parent company Digital Currency Group, was also in a state of insolvency and would need to liquidate GBTC to pay back its creditors. Grayscale has since clarified that “the laws, regulations, and documents that define Grayscale’s digital asset products prohibit the digital assets underlying the products from being lent, borrowed, or otherwise encumbered” and that “the $BTC underlying Grayscale Bitcoin Trust are owned by $GBTC and $GBTC alone.”Grayscale also published a letter signed by Coinbase’s CFO, Alesia Haas, and CEO of Coinbase Custody, Aaron Schnarch, showing that it currently holds 635,235 Bitcoins (BTC) under custody in Grayscale’s name. 

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Game7 allocates $100M in open-source technology grants for Web 3.0 gaming companies

Game7 allocates $100M in open-source technology grants for Web 3.0 gaming companies

Uverejnil používateľ | nov 28, 2022 |

On November 28, blockchain gaming accelerator Game7 announced that it would allocate $100 million in open-source technology grants to upcoming Web 3.0 startups. As told by the Game7, distributions will support individuals and entities building blockchain games, smart contracts, core software infrastructures, and community tooling. The grants will be paid in USD Coin (USDC).What’s first?Open source technology grants are the first to launch – and we’ll be supporting individuals, DAOs, and companies working on:Game development toolingSmart contracts and standardsCore infrastructureCommunity tooling— Game7 (@G7_DAO) November 28, 2022Beyond the initial funding, the team said developers will also gain access to tech support, mentoring, and early Game7 initiatives. The decentralized autonomous organization, or DAO, claims it is chain agnostic and will support applications from any blockchain network. While award amounts have not been disclosed, in a list of frequently asked questions, Game7 explained that “applicants should not view grants as a substitute for venture funding.”In addition, upfront payments are only awarded “in exceptional cases,” and most payments will only be issued contingent on the completion of certain project milestones. Developers must also undergo know-your-customer checks, sign a contract, and apply with their digital wallets. However, developers are not bound by any exclusivity agreements and can also apply for other grants or VC funding. Game7 estimates that after submission, its due diligence process will take four to six weeks before a decision is issued.Game7 was created on November 18, 2021, as part of a $500 million blockchain ecosystem accelerator backed by BitDAO. Most of the funding came from its namesake decentralized treasury. At the same time, Forte, Mirana Ventures, Warner Music Group, Aleo, Avalanche, Interchain Foundation, Off-chain Labs, OP Games, Polygon Studios, Solana Ventures, and now defunct Alameda Research also participated in the seed round. 

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Leading Cardano stablecoin project shuts down after excruciating launch delays

Leading Cardano stablecoin project shuts down after excruciating launch delays

Uverejnil používateľ | nov 24, 2022 |

On Nov. 24, Ardana, a leading decentralized finance (DeFi) and stablecoin ecosystem building on Cardano (ADA), abruptly halted development, citing “funding and project timeline uncertainty.” The project will remain open-source for builders while treasury balances and remaining funds will be held by Ardana Labs “until another competent dev team in the community comes forward to continue our work.””Development on Cardano has been difficult with alot of funding going into tooling, infrastructure and security. This alongside the uncertainty around development completion has led to the best course of action being halting development of dUSD.”The move came as a shock to many due to the sudden nature of the announcement. However, it appears that issues were already present for some time. Beginning July 4, Ardana has held an ongoing initial stake pool offering, or ISPO, to fund its operations. Unlike traditional fundraising mechanisms, developers do not receive the ADA delegated by users, but instead, the staking rewards. Users are incentivized to keep delegating by receiving the native DANA tokens as a reward.Unfortunately, a simultaneous collapse of the price of DANA, ADA, as well as declining Cardano staking yields from the ongoing crypto winter has caused issues for ISPO issuers. Over the past year, Ardana’s native DANA tokens have lost close to 99.85% of their value.In January, Ardana claimed that “almost all of the product/smart contract development is finished. We could launch our products within a few weeks if we so wanted” and instead blamed the delay on the Cardano network’s “liquidation issues,” and “risk to users’ funds.” Most users reacted negatively, placing the blame on Ardana instead. One individual, @LucidCiC, wrote: “Sounds like you’re blaming Cardano for your own lack of motivation and dedication. You decided to build here for a reason, And now you’re giving up. Others like Axo will come in and take all the glory.”

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MetaMask will start collecting user IP addresses

MetaMask will start collecting user IP addresses

Uverejnil používateľ | nov 24, 2022 |

According to a revised privacy policy agreement published by ConsenSys on Nov. 23, MetaMask will begin collecting users’ IP addresses and Ethereum wallet addresses during on-chain transactions.However, ConsenSys, the wallet’s creator, explains that the collection of users’ data will only apply if they use MetaMask’s default Remote Procedure Call (RPC) application, Infura. Individuals using their own Ethereum node or a third-party RPC provider with MetaMask are therefore not subject to the newly updated ConsenSys privacy policy. Instead, the terms of the other RPC provider apply. According to ConsenSys, information gathered in this manner may be disclosed to affiliates, during business deals, or to comply with Know Your Customer and Anti-Money Laundering requirements dictated by law enforcement. MetaMask is currently one of the most popular self-custody wallets on the market with more than 21 million monthly active users.The reaction within the crypto community has been mostly negative. For example, Adam Cochran, partner at Cinneamhain Ventures, stated: “There is nothing more important than consumer privacy, especially when it comes to your financial data — you have a right to be anonymous. Metamask has provided a great free service for a long time, but their decision to log IPs and tie it to transactions is unacceptable.”At the same time, Hayden Adams, inventor of the Uniswap protocol, responded to inquiries by outlining that the decentralized exchange neither tracks IPs nor allows third-party tools on the platform to do so. ConsenSys has joined the ranks of notable Web3 companies, such as Coinbase, that adopted IP collection partly due to increasingly stringent regulations. 

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Aave proposes governance changes after failed $60M short attack

Aave proposes governance changes after failed $60M short attack

Uverejnil používateľ | nov 23, 2022 |

On Nov. 23, one day after Mango Markets exploiter Avraham Eisenberg attempted to use a series of sophisticated short sales to exploit decentralized finance protocol Aave, project contributors have put forth a series of proposals to deal with the aftermath. As told by protocol engineering developer Llama and financial modeling platform Gauntlet  both of whom are deployed on Aave: “Over this past week, the user 0x57e04786e231af3343562c062e0d058f25dace9e [wallet associated with Eisenberg] opened a short position on CRV [Curve] using USDC as collateral. At its peak, the user was shorting ~92M units of CRV (roughly $60M USD at today’s prices). The attempt to short CRV on Aave has been unsuccessful, and the user lost ~$10M USD from the liquidations.”Llama wrote that the user had been liquidated but at the cost of $1.6 million in bad debt, likely due to slippage. “This excess debt is isolated only to the CRV market,” the firm wrote. “While this is a small amount relative to the total debt of Aave, and well within the limits of Aave’s Safety Module, it is best practice to recapitalize the system to make whole the CRV market.”Going forward, Llama’s proposal calls upon the Gauntlet’s insolvency fund and Aave Treasury to make whole the bad debt. Another separate proposal put forth by Gauntlet calls for temporarily freezing a list of token markets (including CRV) on Aave V2. The day prior, Eisenberg attempted to induce a liquidity crunch on Aave by shorting large amounts of CRV, which was illiquid on the platform, and forcing the smart contracts to buyback the positions at a loss due to very high slippage (upwards of 90%). However, the trade failed when Eisenberg was liquidated with much lower slippage levels than expected. 

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