Crypto Guides, Knowledge & Insights

Paradigm Partner: Planning to Raise a $1 Billion Fund by the End of the Year or Early Next Year

Paradigm Partner Matt Huang, in an interview with The Information, stated that Paradigm will not abandon its investments in the cryptocurrency space and plans to raise a $1 billion fund by the end of the year or early next year.　　Earlier in May, it was reported by insiders that Paradigm was expanding its focus beyond cryptocurrency to include “cutting-edge” technologies such as artificial intelligence (AI). According to their official website, the company removed references to cryptocurrency/Web3 from its homepage earlier that month and now identifies itself as a “research-driven technology investment firm.” This suggests that the company is repositioning itself to address some of the challenges in the cryptocurrency space and the uncertainty surrounding U.S. regulation.　　

2023-09-15Deep Dive

Arca CIO: FTX Asset Sales Dominated by OTC, Unlikely to Be Liquidated in Bulk via Exchange or TWAP

Arcas Chief Information Officer, Jeff Dorman, summarized key information regarding the court-approved sale of cryptocurrency assets by FTX on the X platform as follows:　　The winning bidder is Galaxy Asset Management, not their trading division. They must act as trustees and sell gradually and opportunistically.　　Galaxy has received numerous reverse inquiries (some from real funds and some from pre-investigation). However, the asset sale will primarily take place over-the-counter (OTC) and is unlikely to involve bulk sales via exchanges or time-weighted average price (TWAP). They will participate as long as there are good bids.　　The $100 million weekly limit is not really relevant. If they receive higher bulk bids, they can request court approval, and they are not obligated to sell any assets in any given week. The $100 million is just a guideline to prevent forced sales and damage to the value of the crypto assets.　　Hedging will be opportunistic (e.g., taking bearish options positions to offset significant portfolio declines). Some believe that Galaxy may be eager to sell $3 billion in futures, which is quite aggressive. Their goal is to outperform the performance of a static portfolio, not to turn bankruptcy funds into long/short (L/S) funds.　　Galaxy cannot engage in insider front-running and profiting,

2023-09-15Deep Dive

CoinEx: Preliminary Investigation Indicates Attack Event Resulted from Hot Wallet Private Key Leak,

CoinEx has issued an update regarding the recent hacking incident, stating that they have preliminarily determined the security breach to be due to a hot wallet private key leak. The investigation and resolution efforts are currently proceeding in an organized manner.　　The attack primarily involved cryptocurrencies such as BTC, ETH, XRP, BCH, SOL, and others. The specific value of the affected assets is still being calculated. Assets in CoinExs cold wallet have not been affected by this incident.　　CoinEx has taken the following measures:　　Suspended all cryptocurrency deposit and withdrawal services and urgently shut down the hot wallet servers.　　Transferred the remaining assets from the compromised hot wallet to secure addresses.　　Rebuilt and redeployed the wallet system.　　Conducted an investigation into the attack by CoinExs wallet and security teams based on collected information and leads.　　Contacted other exchanges to freeze the malicious attackers assets.　　CoinEx assures users that their assets have not been and will not be affected by this attack, and any economic losses resulting from this incident will be covered by the CoinEx User Asset Security Foundation.　　Currently, CoinEx is actively rebuilding the wallet system, which includes 211 chains and 737 cryptocurrencies. This process will take some time, and the team will gradually restore deposit and withdrawal

2023-09-15Deep Dive

CoinEx Hacking Incident Progress Tracking

Previously, as reported by WikiBit, CoinEx exchange fell victim to a theft, resulting in the loss of a staggering $54 million.　　https://www.wikibit.com/en/202309139084547370.html　　CoinEx has now disclosed the third batch of addresses related to the hacker. Additionally, they are earnestly requesting assistance from relevant project teams and institutions to aid in the freezing and recovery efforts.　　According to statistics from MistTrack, it appears that more of the stolen funds have been consolidated, causing the balance related to the hackers addresses in the CoinEx theft to increase from $53.97 million to $55.57 million.　　During their analysis, SlowMist has made the following findings:　　The known Alphapo Exploiter (TDrs…WVjr) utilized TransitSwap to convert TRX to ETH and then cross-chain to the address (0x22be3b0a943b1bc0ea3aec2cb3ef511f3920a98d). As a result, this address has been marked as an Alphapo Exploiter on the ETH blockchain as well.　　The hackers address, 0x22be3b0a943b1bc0ea3aec2cb3ef511f3920a98d, is labeled as an Alphapo Exploiter on the ETH blockchain and as a Stake.com Exploiter on the BSC blockchain, indicating that this address is a shared address.　　Address 0x75497999432B8701330fB68058bd21918C02Ac59 is marked as a CoinEx Exploiter on the ARB and OP blockchains and as a Stake.com Exploiter on the Polygon blockchain. This suggests that this address is a shared address.　　Due to the FBIs association of the Stake.com

2023-09-14Deep Dive

MakerDAO to Introduce New Stablecoin and Governance Token in Early Next Year

On September 14th, during the TOKEN2049 conference, Rune Christensen, one of the co-founders of MakerDAO, announced that MakerDAO is set to introduce a new unified brand, which is currently unnamed. This rebranding will not affect DAI and MKR users, who will be able to revalue their assets at a rate of 1:12000. Furthermore, the introduction of the new stablecoin will allow users to mine a new governance token.　　Rune Christensen also disclosed that the new stablecoin and governance token are scheduled to be launched in early 2024. They are preparing to support subSAO mining and, in the second quarter of 2024, issue subDAO tokens, which can be mined using the new stablecoin.　　

2023-09-14Deep Dive

Judge Approves Order Allowing FTX to Commence Crypto Sales

In a recent development, Delaware Court Judge John Dorsey has approved a plan that allows FTX to sell its cryptocurrency holdings worth billions of dollars. The specific details of the sales format have not been disclosed. When selling bitcoin, ether and other tokens, the estate would be required to give the U.S. Trustees office 10 days notice.　　Earlier, FTX had submitted a plan in August with the aim of selling its cryptocurrency holdings under the guidance of financial advisors. According to the plan, there is a weekly sales limit of $100 million for most types of cryptocurrencies, with the possibility of permanently increasing this limit to $200 million.　　According to previously filed court documents, FTX holds cryptocurrency assets valued at $3.4 billion.　　

2023-09-14Deep Dive

Vitalik Buterin Envisions A New Decentralized Future For Ethereum And Web3

Key Points:　　Vitalik Buterin calls for more innovation in blockchain, saying current developments lack imagination. Hes excited about decentralized social platforms like Farcaster on Ethereum. Buterin envisions a gradual onboarding process for Web3 users, bridging traditional services with crypto-native options.　　In a recent interview with David Hoffman at the Permissionless event of Blockworks, Ethereum co-founder Vitalik Buterin shared his vision for the future of Ethereum and the broader Web3 ecosystem.　　Buterin emphasized the need for innovation and imagination in the blockchain space, stating that current developments, such as DeFi and NFTs, are important but somewhat limited in scope.　　He expressed his excitement about the potential of decentralized social platforms, prominently mentioning Farcaster—a Twitter-like protocol built on the Ethereum mainnet, along with a companion mobile app named Warpcast. Farcaster, currently in an invite-only alpha release, represents a new breed of social experiences that leverage cryptocurrency tools to challenge centralized platforms.　　The Ethereum co-founder underscored the importance of creating sybil-resistant systems in these decentralized social networks, ensuring that user engagement is genuine and not manipulated.　　Buterin further highlighted the potential of crypto-based solutions to enhance decentralization, privacy, and security, especially in comparison to the existing Web2 landscape. He cited various building blocks within the Ethereum ecosystem, including the

2023-09-14Deep Dive

FTX Allowed To Sell $3.4 Billion Cryptocurrency Assets

Key Points:　　A Delaware judge approves FTXs request to liquidate $3.4 billion in cryptocurrency assets. The court-approved plan allows FTX to sell up to $100 million worth of most tokens per week. Galaxy Digital, led by Mike Novogratz, will manage the asset liquidation process　　Delaware district judge, John Dorsey, has given the green light to FTX, the beleaguered cryptocurrency exchange, to proceed with the liquidation of its digital assets, valued at approximately $3.4 billion. This landmark decision marks a significant step in FTXs efforts to settle its debts to creditors amid bankruptcy proceedings.　　According to CoinDesk, during the court hearing, Judge Dorsey not only approved the motion but also dismissed two objections raised against the plan, clearing the path for FTX to sell, stake, and hedge its cryptocurrency holdings. Notably, the exchanges assets comprise approximately $7 billion, including $1.16 billion in Solana (SOL) tokens, $560 million in Bitcoin (BTC), and $119 million in XRP.　　FTX filed a proposed plan in August, outlining its strategy for selling off its cryptocurrency holdings under the guidance of a financial advisor. According to the approved plan, the estate will be allowed to sell up to $100 million worth of most tokens per week, with the potential to increase

2023-09-14Deep Dive

Binance.US Will Still Face Regulatory Challenge Until CZ Severs Relations

Key Points:　　Binance.US grapples with regulatory issues, including a lawsuit against Binances CEO, affecting its growth. The company staff mulls over options—resolve regulatory issues, cut costs, seek investment, or hibernate operations. CEO Brian Shroder steps down amidst regulatory pressure, while staff reductions continue amid legal challenges.　　In a tumultuous turn of events, Binance.US, the American arm of the global cryptocurrency exchange, finds itself grappling with regulatory hurdles and internal reorganization, The Block reported.　　Sources suggest that the connection between Binance‘s CEO, Changpeng Zhao, and the prevailing regulatory landscape in the United States may hinder the platform’s future growth.　　Following the Securities and Exchange Commissions (SEC) lawsuit against Binance, which accused Zhao of having the power to “divert customer assets,” Binance.US has taken steps to scale back its operations and workforce. Binance responded to the lawsuit by pledging a vigorous defense of its platform.　　During a recent all-hands meeting, Binance.US employees were presented with three potential strategies to navigate the current challenges.　　The first option entails continuing with planned growth measures, contingent on Zhao resolving his regulatory issues with the SEC and selling or transferring his Binance.US shares to a confidentiality trust.　　The second approach involves a moderate reduction in expenses, including sub-account functions and infrastructure optimization, while

2023-09-14Deep Dive

Electric Capital, a Web3 Venture Capital Firm, to Raise $300 Million for New Fund

According to documents filed with the U.S. Securities and Exchange Commission (SEC), Web3 venture capital firm Electric Capital is currently in the process of raising $300 million for its third fund, known as the Electric Capital Venture Fund III. The fund has not yet had its initial sale, and the issuance period is not expected to exceed one year.　　Electric Capital, headquartered in Palo Alto, California, was founded in 2018 by Curtis Spencer and Avichal Garg. In 2020, Electric Capital successfully raised $110 million for its second venture fund.　　As previously reported by The Block, in March 2022, Electric Capital secured $1 billion in venture funding, earmarked for investments in early-stage crypto startups.　　According to Crunchbase data, Electric Capital has made a total of 79 investments in the past, with 31 of them as the lead investor.　　

2023-09-13Deep Dive

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