Sponsored by Bitpanda

Bitpanda is a leading European investment platform that allows users to buy, sell, and manage a variety of financial assets, including cryptocurrencies, fractional shares, indices, ETFs, and precious metals.

The platform offers over 3000 assets, including 400 crypto assets.

AWS Outage Affects Binance, KuCoin, and Others

A major outage at AWS has caused disruptions for crypto platforms Binance, KuCoin, Rabby, DeBank, highlighting their critical dependence on centralized cloud infrastructures.

This incident has temporarily interrupted withdrawals and revealed the vulnerabilities of a crypto ecosystem built on the promise of decentralization.

It also brings to light the urgent need for decentralized alternatives to the cloud, such as Filecoin, Akash Network, and Storj, to strengthen the resilience and true independence of the crypto sector.

Hyperliquid Dominates On-Chain Derivatives Market

Hyperliquid emerges as the undisputed leader in decentralized crypto derivatives, capturing nearly 70% of the on-chain perpetual contracts market.

With a monthly trading volume of $175 billion and a non-custodial model based on smart contracts, Hyperliquid is attracting active traders seeking performance, security, and transparency.

Its rapid growth reflects a marked shift towards decentralized alternatives, signifying a new era for decentralized finance.

White House Considers Financing Bitcoin Reserve

The Trump administration is exploring various options to establish a strategic Bitcoin reserve without using public funds.

Potential options include the reevaluation of underpriced gold certificates held by the US Treasury and the use of customs revenues.

However, concerns about conflicts of interest related to the TRUMP memecoin and the delayed audit of the government’s Bitcoin holdings persist.

China Faces Dilemma with Seized BTC

Despite the official ban on cryptocurrencies, China secretly sells seized BTC through private companies operating abroad in order to address local budget deficits.

Jurists and economists call for clear regulation or the creation of a sovereign Bitcoin fund to regulate and leverage this digital wealth.

OM Plunges 90%: Mantra Announces Massive Burn

The token OM from the Mantra protocol, which specializes in tokenized real-world assets, has experienced a drastic 90% drop in value.

To restore credibility, the CEO announced a massive burn, including his own tokens. However, suspicions of opaque governance and past OTC sales remain.

Powell Opens Door to Looser Crypto Banking Rules

Jerome Powell, Chair of the Federal Reserve, suggests loosening banking rules on cryptocurrencies to strike a balance between innovation and financial stability.

This move comes in a pro-crypto political climate and allows banks to access crypto opportunities while ensuring consumer protection.

Other News

• DWF Labs invests $25 million in World Liberty via WLFI
• Kraken trims staff ahead of IPO
• Babylon TVL drops by 32% after $1.2 billion BTC withdrawal

The article This Week in Crypto: AWS Outage, Hyperliquid Dominates Markets appeared first on Coin Academy.

The SEC, under the leadership of Gary Gensler, is facing increasing pressure. Eighteen U.S. states, including Texas and Florida, accuse the agency of exceeding its powers and engaging in abusive regulation in the cryptocurrency sector. These states argue that the agency has encroached on the jurisdiction of Congress or local governments, resulting in nearly $500 million in losses for the crypto industry. This complaint reflects widespread frustration with a strategy perceived as punitive and opaque, hindering innovation and jeopardizing numerous projects.

Amid a tense political climate, this action aligns with the election of Donald Trump, who promised to appoint a more crypto-friendly leadership at the SEC. Gary Gensler, criticized for his coercive approach, hints at an imminent resignation, fueling hope for a more balanced regulatory framework. This shift could redefine crypto regulation in the United States, providing a more favorable environment for startups and emerging projects while adjusting the roles of federal and local authorities in this rapidly expanding sector.

The article Gary Gensler Resigns as 18 U.S. States File Complaint Against the SEC and its President Gary appeared first on Coin Academy.

Apecoin Announces Its Layer 3 Based on Arbitrum: ApeChain

ApeChain is a Layer 3 built on Arbitrum Orbit, in partnership with Layer Zero and its standard LayerZero Omnichain Fungible Token, allowing the use of the APE token as a GAS Token for the blockchain.

The price of $APE doubled in less than 24 hours following the announcement, and the community is already having fun trading numerous memecoins on the platform, with the ecosystem already offering its own version of Pump.fun called Ape Express.

Worldcoin Also Deploys Its Layer 2: World Chain Based on OP Stack

World, formerly known as Worldcoin, has launched World Chain, a layer 2 network based on Ethereum that prioritizes verified human users through a World ID.

This network grants its users priority access to the block space and free gas allocation, while excluding bots. With over 15 million users who have verified their identity through iris scanning, World Chain aims to revolutionize the crypto market by introducing a new human-centric approach and promoting cryptocurrency adoption.

Pump.fun Plans to Launch a Token

Pump.Fun, the Solana-based memecoin exchange platform, has announced the future launch of a token and the establishment of ‘Pump Advanced,’ a trading terminal with advanced features for intensive users.

This new interface offers real-time statistics, charts, and advanced filters, with 0% fees during the first month. The team has specified that early users will be rewarded during the token launch.

Vitalik Shares His Vision for Ethereum’s Future

Vitalik Buterin shares his vision for Ethereum, focusing on faster transactions, increased accessibility to staking, and enhanced security.

He proposes reducing the transaction finalization time to a single slot, which is 12 seconds, compared to the current 32 slots (or 384 seconds), increasing network responsiveness and reducing congestion. It is even possible that finality could decrease to 8 seconds if the block time is further reduced (which is also under discussion).

In addition, he aims to lower the staking participation threshold from 32 ETH to 1 ETH in the long term, making the network more accessible to a larger number of users and reinforcing decentralization.

These changes aim to improve the user experience and make Ethereum a more competitive network, but many complex modifications are needed, so patience is required.

For security, Vitalik suggests introducing the ‘single secret leader election’ cryptographic mechanism and strengthening protections against 51% attacks.

He is also preparing the network for the upcoming Pectra update in 2025, which will bring improvements in scalability for rollups, security, and efficiency. This update will mark a new milestone in Ethereum’s evolution, consolidating the progress made since the transition to proof-of-stake and enhancing the network’s resilience and innovation.

The Trump Family Earns 75% of World Liberty Financial’s Revenues

The Trump family will receive 75% of the net revenues from the crypto project World Liberty Financial (WLF), without any management responsibility, according to the ‘World Liberty Gold Paper.’ This model, which values the Trump family while shielding them from operational risks, raises questions about transparency and the project’s ethics.

Although WLF aims for a valuation of $1.5 billion and seeks to raise $300 million in its initial token sale, only $13.5 million has been raised so far, which amounts to 904 million tokens at $0.015 per token.

The project, positioned as a kind of ‘crypto bank,’ would allow users to borrow and invest in cryptocurrencies via a decentralized finance platform. However, the significant portion of revenues allocated to the Trump family, without direct involvement in management, fuels debates about ethical practices and the project’s financial structure.

The European Central Bank Reduces Interest Rates by 0.25%, With a Key Rate at 3.25%

The European Central Bank (ECB) has reduced its interest rates by 0.25%, bringing the key rate to 3.25% in response to economic slowdown and declining inflation in the eurozone. This decision, supported by an evaluation of economic prospects, aims to adjust monetary policy in the face of well-established disinflation, according to ECB President Christine Lagarde.

The markets anticipate further rate cuts in the coming months, while the ECB adopts a data-based approach without committing to a fixed trajectory for 2025.

Grayscale Files Application for ETF Combining Bitcoin, Ethereum, Solana, Ripple, and Avalanche

Grayscale has filed an application with the SEC to convert its Grayscale Digital Large Cap Fund (GDLC) into an ETF, aiming to make major cryptocurrencies more accessible to traditional investors.

This fund will track the CoinDesk Large Cap Select index, including major cryptos like Bitcoin, Ethereum, Solana, Ripple, and Avalanche, and will be listed on NYSE Arca once approved.

This initiative reflects Grayscale’s desire to expand access to digital assets despite the significant outflows from some of its funds converted into ETFs.

DeFi: Radiant Capital Suffers Another $50 Million Hack and Suspends Its Markets

Radiant Capital, a decentralized lending protocol, has been hacked for over $50 million. The attackers compromised three out of eleven private keys of the platform’s multi-signature wallet, allowing them to manipulate smart contracts on Binance Smart Chain and Arbitrum, thus draining users’ funds. This is the second major attack on Radiant this year, following an earlier incident in January, raising concerns about the protocol’s security.

In response, Radiant Capital has suspended its markets on Base and Mainnet, and is collaborating with several security partners to mitigate the consequences. The platform, managed by a DAO, aims to aggregate fragmented liquidity from the web3 money markets, but these recurring security vulnerabilities question the ability to maintain a secure decentralized environment.

News in Brief

• SOL: Ethena Labs proposes adding Solana to collateral positions of the USDe stablecoin
• Base surpasses Arbitrum and becomes the leading Layer 2 in terms of TVL and user activity
• XRP: Ripple Labs announces partners for the upcoming launch of its stablecoin RLUSD
• SingularityDAO, Cogito Finance, and SelfKey merge their tokens to create an AI layer 2
• Tesla transfers all of its BTC: Is Elon Musk preparing a Bitcoin sale?
• Robinhood officially announces the arrival of futures trading on Bitcoin and Ethereum
• The FBI arrests the hacker linked to the fake tweet about Bitcoin ETF approval by the SEC

The article The Coin Weekly: Crypto News Summary appeared first on Coin Academy.

The IMF has stated that the use of Bitcoin as an official currency poses a significant risk to a country’s economic stability. The unpredictable fluctuations in Bitcoin’s value, which can sometimes reach 70% within short periods, create extreme uncertainty for governments trying to manage their budgets.

Despite the IMF’s clear recommendation against recognizing cryptocurrencies as official currencies, El Salvador has chosen to disregard this advice. This decision has led to growing tension in discussions regarding loan and refinancing conditions between the two entities. The IMF’s reluctance has become a major obstacle for the country’s access to new funding.

The Role of the IMF and Its Relationship with El Salvador

The International Monetary Fund (IMF) plays a crucial role in global economic stability by providing financial assistance and advice to member countries. It monitors economic policies, helps resolve balance of payment issues, and promotes international monetary cooperation.

In the case of El Salvador, the IMF has been involved in assessing the country’s economy and has proposed recommendations to improve its financial stability. The relationship between the IMF and El Salvador has intensified in recent years, particularly due to the country’s adoption of Bitcoin as legal tender. This decision has raised concerns within the IMF regarding potential risks to economic stability. Currently, El Salvador is in negotiations with the IMF for financial aid, but the discussions are complicated by the implications of its innovative monetary policy.

El Salvador’s Debt and Critical Refinancing Needs

Despite having “only” $188 million in debt with the IMF, El Salvador heavily relies on its international credit to finance its operations and stabilize its economy.

The country’s ability to refinance depends on the credibility it obtains from major institutions like the IMF. El Salvador is compelled to maintain good relations with the Fund to secure favorable loan terms, not only from the IMF itself but also from other international lenders.

In fact, the impact of the IMF’s position goes beyond its direct loans. Many other international creditors rely on the IMF’s opinion to assess a country’s solvency, similar to credit rating agencies like Standard & Poor’s. Without this validation, the interest rates on the loans obtained by El Salvador could increase, further exacerbating the already high national debt burden.

Debt Management: El Salvador Announces Invitation for Buyback of its Outstanding Bonds

El Salvador has announced the launch of an invitation to submit offers for the cash repurchase of all its outstanding bonds. This invitation is part of a broader program for proactive management of the country’s external public debt, aiming to promote conservation and sustainability initiatives.

The invitation began on October 4, 2024, and will end, unless extended or terminated early, on October 10, 2024, at 5:00 pm New York time. El Salvador reserves the right to accept only a portion of the submitted offers or extend this period at its sole discretion. The process also includes concurrent financing ensured by JPMorgan Chase Bank.

More information

The article Bitcoin as Legal Tender in El Salvador: A Risky Decision appeared first on Coin Academy.

Attacker Compromises Token Transfer in Email Exchange

An attacker compromised a token transfer transaction via an insecure email exchange, resulting in the loss of these funds.

Part of the stolen funds was immediately exchanged for stablecoins through a decentralized exchange before being transferred to centralized platforms. EigenLayer’s team acted swiftly, collaborating with authorities to freeze a portion of the affected funds.

An Isolated Incident without Protocol Vulnerability

EigenLayer reassured its community that this incident was an isolated case and did not involve a vulnerability related to the Eigen Layer protocol. There were no identified flaws in the token smart contracts or on-chain functionalities, ensuring the overall security of their system.

The EigenLayer team stated that a thorough investigation is underway and updates will be provided as new information becomes available.

The attack was due to an infiltration of an email conversation between an investor and the custody service responsible for token transfer. The hacker managed to deceive the investor into sending the tokens to an address under their control. Once the tokens were obtained, the attacker quickly exchanged them for stablecoins like USDC and transferred them to centralized exchanges.

Market Reaction to EIGEN’s Price

The price of EIGEN token has recently experienced a significant decline, dropping from over $4 at the time of its listing to the current value of $3.1.

This fluctuation has elicited various reactions among investors and market observers. On platforms like X, users express a mix of surprise and strategic anticipation, with some seeing it as a buying opportunity in anticipation of a future rise, while others are concerned about the volatility and its long-term implications on the valuation of EIGEN.

The article EigenLayer Incident: Token Theft and Market Reaction appeared first on Coin Academy.

Osmosis unveils Polaris Token Portal: a huge step forward for decentralized trading experience

Osmosis unveils Polaris: Token Portal, an innovative solution to unite chains and simplify the user experience. Polaris provides a unique interface that allows users to exchange tokens from different blockchains with a single click.

It integrates features such as multi-chain wallet tracking and automatic acquisition of tokens needed for gas fees, making DeFi more accessible and less fragmented for users.

The goal is to offer users all the assets they need without the hassle of switching between wallets and different blockchains, bringing them closer to the experience of a decentralized financial platform while enjoying the benefits of decentralization.

ASI: Cudos protocol could join the alliance

The Artificial Superintelligence Alliance (ASI), formed by SingularityNET, Fetch.ai, and Ocean Protocol, is considering welcoming Cudos, a key player in decentralized computing, to enhance its computing capabilities. With its decentralized cloud network and advanced resources, including GPUs, Cudos could help ASI reduce its reliance on centralized services like Amazon Web Services. A community vote from September 19 to 24 will determine Cudos’ integration, with the possibility of a token merger between Cudos and FET. This alliance aims to promote a decentralized AI model, improving security, scalability, and innovation.

The European Central Bank lowers its interest rate by 0.25% to 3.5%

The European Central Bank (ECB) has lowered its interest rate by 0.25%, bringing it to 3.65%, in response to a decreasing inflation rate of 2.2% in August and signs of economic stagnation in the Eurozone, with growth forecasts for 2024 revised downwards to 0.8%. This decision could encourage investments in risk assets such as cryptocurrencies, strengthening Bitcoin’s appeal as a safe haven in a low-interest-rate and reduced-yield environment for traditional assets.

eToro pays $1.5 million to the SEC and limits its trading services to BTC, ETH, and BCH in the USA

Financial platform eToro has agreed to pay $1.5 million to the United States Securities and Exchange Commission (SEC) and significantly restrict its cryptocurrency services in the country.

Following SEC allegations accusing eToro of operating as an unregistered broker and clearing agency, eToro will now only offer three cryptocurrencies to its US users: Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). The company must liquidate all other crypto assets by March 2025 to comply with US securities laws.

Starknet governance votes 99% in favor of STRK staking, despite 0.085% participation

Starknet governance has approved 98.94% in favor of introducing staking for the STRK token, despite only 0.0857% participation from eligible holders.

Through the decentralized platform Snapshot X, this vote will allow holders of over 20,000 STRK to secure the network starting in the fourth quarter of 2024 while receiving rewards as native stakers. No minimum token is required for those who wish to delegate their staking and earn rewards.

Snapshot X: the future of on-chain governance

Snapshot X, recently launched on Starknet, offers several significant advantages for DAO governance. Snapshot X combines the modularity and flexibility of Snapshot with the benefits of fully on-chain voting, while being 10 to 50 times cheaper than voting on the Ethereum Layer 1.

Snapshot X allows advanced features such as inter-chain voting and voting strategy suggestions while maintaining a familiar and frictionless user experience. It offers increased security and verifiability through on-chain voting, while upholding the fundamental principles of Web3: resilience, censorship resistance, and immutability.

News in Brief

• Tether and Tron launch T3 Financial Crime Unit to combat on-chain illegal activities
• GRVT secures $3.3 billion monthly volume from 16 market makers
• Grayscale announces the first US XRP trust: towards an XRP Spot ETF?
• Stablecoin: UK High Court recognizes USDT as property

The article Weekly Crypto News: Unveiling Osmosis’ Polaris Token Portal and More appeared first on Coin Academy.

A Strategic Endorsement for Kamala Harris

“The best way to support the strength, security, and reliability of our democracy and economy is to elect Harris as president.”

Excerpt from the letter signed by multiple personalities

Chris Larsen is among a group of 88 business leaders who have officially expressed their support for Kamala Harris through a letter shared on CNBC. This endorsement marks a turning point for Larsen, especially considering that his company, Ripple, and its CEO, Brad Garlinghouse, have previously directed some of their political contributions towards Republican candidates. Larsen joins leaders from other major tech companies, such as Yelp and Snapchat, in publicly endorsing the Democratic candidate.

Ripple and its Political Contributions: A Bipartisan Approach

Ripple’s involvement in this election goes beyond endorsing Kamala Harris. The company has emerged as a major contributor to the pro-crypto political action committee (PAC) Fairshake. Ripple has donated approximately $48 million to this PAC and its affiliates to support candidates favorable to cryptocurrencies from both major parties. Fairshake’s mission is to elect politicians who are likely to promote favorable regulations for the digital asset industry.

Brad Garlinghouse has personally contributed $50,000 to another super PAC aimed at securing a Republican majority in the Senate, highlighting Ripple’s pragmatic and strategic approach to its political contributions.

Internal Divergences within Ripple?

Chris Larsen’s endorsement of Kamala Harris may raise questions about potential divergences of views within Ripple. While Larsen publicly supports the Vice President and her promise of business-friendly policies and economic stability, Brad Garlinghouse seems to lean more towards aligning with Republicans, particularly in the battle against legislators like Elizabeth Warren. This contrast illustrates the complexity of Ripple’s interests, which oscillate between the two parties depending on their long-term priorities.

The Shadow of the Ripple vs. SEC Lawsuit

Ripple is still entangled in a legal dispute with the Securities and Exchange Commission (SEC) regarding the classification of XRP, the company’s native token. The SEC accuses Ripple of violating securities laws in the sale of its digital assets. This case represents a prominent battle between the cryptocurrency sector and regulators, with significant implications for the industry’s future in the United States.

Chris Larsen’s support for Kamala Harris comes in the midst of this tense context, where SEC Chairman Gary Gensler is perceived as aligned with Elizabeth Warren’s positions regarding strict cryptocurrency regulation. This could explain Ripple’s caution in maintaining balanced political relationships while seeking to advance its interests against regulators.

Kamala Harris and Crypto: A Still Unclear Stance

To date, Vice President Kamala Harris has not expressed her position on cryptocurrency as explicitly as her Republican rival Donald Trump. While Trump has clearly stated his ambition to make the United States the global capital of cryptocurrencies if reelected, Harris’ stance remains more nuanced. However, some of her campaign advisors have hinted that she could support initiatives for the growth of the digital asset industry. One of her support committees has recently opened the door to cryptocurrency donations, suggesting a more open attitude towards this sector.

The Crypto Industry at a Crossroads of Politics

As cryptocurrency companies intensify their engagement in the 2024 presidential election, Ripple finds itself juggling diverging political interests. Chris Larsen’s endorsement of Kamala Harris adds to the complexity of lobbying strategies adopted by industry players, seeking to influence the regulatory future of cryptocurrencies in the United States. The clash between proponents of strict regulation, exemplified by Elizabeth Warren, and those advocating for a more liberal approach, such as Donald Trump, makes this election particularly crucial for the future of crypto in the country.

The article Chris Larsen Endorses Kamala Harris for 2024 Presidential Election, Reflecting Ripple’s Evolving Political Strategy appeared first on Coin Academy.

Emmanuel Macron has appointed Michel Barnier as Prime Minister to overcome the political crisis following early legislative elections, hoping to unite a fragmented assembly in the face of the budget challenges of 2025.

A strategic choice to resolve the political crisis

Barnier’s appointment comes at a crucial moment for Macron. The surprise election, held two months earlier, weakened the president’s centrist majority, creating a situation where neither the left nor the right could obtain an absolute majority in the National Assembly. Faced with the urgency of impending budget discussions for 2025 and pressures on France’s public finances, Macron had to react quickly to avoid prolonged deadlock.

Barnier, aged 73, embodies a respected figure both nationally and internationally. A longstanding member of the Republicans (LR) party, he has forged his career within the French right while holding strategic positions within European institutions, including as European Commissioner for Financial Services. This background gives him a reassuring profile for the markets and for Europe, an asset that Macron hopes to use to restore confidence in the French economy.

A nomination under the banner of political cohesion

Although Barnier comes from a rival party, Macron is taking a gamble on uniting divergent forces within parliament by appointing a respected conservative. Barnier’s task is to form a government capable of navigating a fragmented assembly while avoiding rolling back the pro-business reforms already implemented by Macron.

This nomination also symbolizes a stronger right-leaning orientation for Macron. Tensions are already palpable with left-wing parties, particularly France Insoumise, whose leader, Jean-Luc Mélenchon, criticized this decision as a betrayal of electoral results. In this context, Barnier will have to deal with a fragmented but combative opposition while seeking to avoid motions of censure that could weaken his government.

Moderate support from the National Rally

Barnier’s choice could paradoxically appeal to Marine Le Pen’s National Rally (RN). Although some RN members criticized him as a “vestige of the past,” Le Pen welcomed Barnier’s appointment as a sign of respect for all political forces, including her own. This cautious attitude from the RN could offer Barnier tacit support on certain measures, particularly those related to the management of public finances.

Barnier, during his attempted presidential candidacy in 2022, had taken a firm stance on immigration, an issue dear to the RN, by calling for a moratorium on arrivals from outside the EU. This positioning could facilitate some convergence on economic and social issues, although the alliance with the RN remains politically sensitive for Macron.

Reaffirming international stature

The choice of Barnier sends a clear signal about France’s desire to maintain its influence on the European stage. Ursula von der Leyen, President of the European Commission, quickly congratulated Barnier, highlighting his experience and commitment to European interests. With a Prime Minister who has successfully negotiated complex issues such as Brexit, Macron hopes not only to emerge from the internal crisis but also to strengthen France’s role as a leader within the European Union.

Challenges and opportunities for the new government

The task ahead for Barnier is not simple. He must not only form a government capable of governing in a parliament without a clear majority but also manage pressing economic issues. The 2025 budget, with public finances under pressure, will be a major initial test for this government. If Barnier can maintain a balance between different political forces, he may succeed where others have failed.

However, opposition within the National Assembly, whether from the left or the right, will remain vigilant. Every measure proposed by Barnier could be a reason for contestation, with a constant risk of coalitions forming against him. His political skill and diplomatic experience will be crucial in avoiding pitfalls and maintaining government stability.

The article Macron Appoints Barnier as Prime Minister to Overcome Political Crisis appeared first on Coin Academy.

Polygon, one of Ethereum’s most popular Layer 2 solutions, has introduced a long-anticipated transformation by replacing its historical token, MATIC, with a new token named POL.

For the majority of users, this change occurred automatically.

This migration is part of the Polygon 2.0 strategy unveiled last year, with the goal of making POL the native token not only of the Polygon mainnet (Polygon PoS) but also of other chains that will be developed within this ecosystem. This change represents a crucial step for Polygon in its quest for increased flexibility and strengthened blockchain infrastructure.

The Essential Role of POL in Polygon 2.0

The first phase of this migration saw POL replace MATIC as the primary token for transaction fees and staking on the Polygon PoS network. However, the role of POL will extend beyond that. It will also be utilized within AggLayer, a key system on Polygon’s roadmap, designed to aggregate affiliated blockchains that leverage Polygon’s technology.

Furthermore, the Polygon community has proposed that POL plays even broader roles in the coming years. By 2025, POL is expected to become a central element in Polygon’s staking hub, facilitating block generation, zero-knowledge proofs, and participation in Data Availability Committees (DACs).

A New Economic Model: Tokenomics Changes

The introduction of the POL token brings significant changes to its token economy (tokenomics). An annual emission rate of 2% will be implemented, with a portion allocated to Polygon PoS network validators as rewards, and the remaining portion fueling the community treasury. This treasury will serve as a self-sustaining ecosystem fund to support various activities and initiatives.

Marc Boiron, the CEO of Polygon Labs, explained that the main technical reason for this change is that the upgrade keys for MATIC were intentionally burned years ago, making any future modifications to the token impossible. POL will introduce new emission and expansion mechanisms that were previously inaccessible with MATIC. Boiron highlighted that the issuance of POL will offer the community increased control over available funds, facilitating ecosystem growth through grant programs.

Stimulating Decentralization through POL

Another crucial aspect of this transition is how it will foster decentralization of Polygon chains and newly emerging projects within the ecosystem. According to Boiron, over time, these new chains will seek to decentralize and, instead of relying solely on a centralized sequencer, will need to incentivize participants to manage decentralized validator or proof groups. POL will play a key role in this process by providing rewards to validators and redistributing a portion of the fees generated by these new chains to POL holders.

Boiron emphasized that this approach will grant projects the flexibility to gradually decentralize, even if they do not immediately intend to launch their own token. POL emissions can be utilized to incentivize validator participation and allow POL holders to benefit from the fees generated by the new networks, thereby strengthening adoption and participation in the Polygon ecosystem.

The article Polygon Replaces MATIC Token with POL in Pursuit of Enhanced Ecosystem appeared first on Coin Academy.

Uniswap Labs, the developer of decentralized exchange Uniswap, has agreed to settle a $175,000 fine with the Commodity Futures Trading Commission (CFTC) in the United States. The fine comes as a result of allegations regarding the offering of illegal derivative products on digital assets, a violation of commodity laws. While the case is now closed, it raises questions about the future of DeFi protocols in the US.

The Context of the Violations

The dispute between Uniswap Labs and the CFTC stems from the platform’s operations, which allowed institutional and individual users to trade digital assets through liquidity pools on the Ethereum blockchain. These pools, consisting of digital asset pairs, enabled the creation and trading of leveraged tokens, providing exposure to cryptocurrencies such as ETH and BTC.

However, the CFTC determined that these leveraged tokens were considered margin transactions, involving commodities that could not be delivered within 28 days, and therefore subject to strict regulations. According to the CFTC, these products should only have been offered on designated contract markets or registered with the agency, which was not the case for Uniswap Labs. As a result, the company violated the law by not complying with the necessary regulatory requirements.

Uniswap Labs Under Regulatory Pressure

This case is not the first time Uniswap Labs has faced regulators in the US. In May 2024, the company had already received a ‘Wells Notice’ from the Securities and Exchange Commission (SEC), a preliminary document warning of potential legal action. The SEC accused Uniswap of acting as an unregistered exchange and unauthorized broker-dealer.

These two cases highlight the increasing pressure exerted by regulators on DeFi protocols, and more broadly, on the digital asset industry. While the $175,000 fine is relatively modest, the potential impact of this decision on innovation in the decentralized finance (DeFi) sector is more concerning.

Reaction of the CFTC and the DeFi Sector

The Director of the CFTC’s Division of Enforcement, Ian McGinley, stated that this action underscores the agency’s commitment to enforce the law as digital asset and DeFi ecosystems continue to evolve. He emphasized that DeFi operators must remain vigilant to ensure their transactions comply with the current legislation.

Katherine Minarik, the Legal Director of Uniswap Labs, responded by highlighting the company’s cooperation with the authorities and expressing satisfaction with the swift resolution of this matter. She affirmed that this violation only concerns a tiny fraction of trading activities on their platform. In a message posted on X (formerly Twitter), she shared the details of the settlement.

Criticism within the CFTC

Although the case is closed, the CFTC’s decision has not been universally acclaimed, even within the agency. Two Republican commissioners expressed their discontent, criticizing the commission’s approach. Commissioner Summer Mersinger denounced ‘regulation by enforcement,’ arguing that the CFTC’s laws and regulations were designed for centralized and traditional market infrastructures, not DeFi protocols.

Mersinger warned that this decision could have long-term consequences, including discouraging DeFi innovations in the US and pushing this activity to other jurisdictions. She added that the agency should consider establishing clear guidelines to enable DeFi protocols to comply with legal requirements.

Another commissioner, Caroline Pham, also criticized the action, arguing that it could violate the Administrative Procedures Act (APA), which governs how federal agencies develop and enforce rules. She advocated for a more thoughtful approach to DeFi regulation, noting that this case centered not on fraud but on a jurisdictional battle between the CFTC and the SEC.

The article Uniswap Labs Settles Fine with CFTC for Illegal Derivative Products appeared first on Coin Academy.