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Coinbase Released Its Own Blockchain; Jump Crypto 'Exploit' Wormhole Hacker | Cointime Weekly Feb.19 – Feb.25

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Coinbase Released Its Own Blockchain Base

Coinbase has announced the launch of the testnet launch of Base, an Ethereum Layer 2 (L2) network. The Base network is designed to "provide easy, secure access to Ethereum L1, other L2s, as well as other L1 ecosystems like Solana".

More Layoffs: Dapper Labs Axes Another 20%Polygon Cut 100 People

Dapper Labs, the company behind the NFT-focused blockchain Flow, decided to lay off another 20% of full-time staff, while Polygon Labs, the developer of the Polygon blockchain, said it was going to reduce headcount by 20%, affecting about 100 people. 

Jump Crypto Counter-Exploited the Wormhole Hacker for $140 Million

Jump Crypto and Oasis.app teamed up to perform a "counter exploit" against the Wormhole protocol hacker. As a result of their efforts, they were able to recover $225 million worth of digital assets and transfer them to a secure wallet.

Australian Regulator Is Reviewing Binance Australia's Derivatives Services

Binance incorrectly classed 500 Australian users as "wholesale investors," resulting in their derivative positions being unceremoniously closed. Australian Securities and Investments Commission (ASIC) is conducting a targeted review of Binance Australia's derivatives business.

Judge Says NBA Top Shot Moments NFTs are Securities

Judge has ruled that the NBA-branded non-fungible tokens (NFTs) offered by Dapper Labs, known as “NBA Top Shot” Moments, may be securities.

Global regulations

IMF Said Crypto Assets Should Not Be Legal Tender

IMF board directors "generally agreed that crypto assets should not be granted official currency or legal tender status in order to safeguard monetary sovereignty and stability", highlighting fiscal risks posed by crypto assets including contingent liabilities to the government.

Fed Issued Joint Statement on Liquidity Risks to Banks

The statement highlighted certain sources of funding from crypto-asset-related entities may pose heightened liquidity risks to banking organizations due to the unpredictability of the scale and timing of deposit inflows and outflows. 

Canada Gives Crypto Companies 30 Days To Meet Updated Registration Guidelines

Cryptocurrency companies in Canada and those planning to operate in the country have 30 days to meet updated crypto registration guidelines that were released on Wednesday, or risk losing their Canadian users.

Hong Kong Outlines Upcoming Crypto Licensing Regime

Under the new regime, all crypto trading platforms planning to apply for a license – including pre-existing platforms – "should begin to review and revise their systems and controls to prepare for the new regime," the notice said.

Bill Allows Russian Financial Platforms to Operate Blockchains, Issue Digital Assets

A draft law filed in the Russian parliament permits operators of platforms providing financial services to also run blockchain platforms. The legislation will allow them to combine their regular activities in the traditional financial market with issuing digital assets.

Crypto weekly price action

Cryptocurrency Prices Heat Map in 7 Days, Source COIN360

Research and technology

Tokenomics Failures in 2022

CertiK conducted investigations into several prominent tokenomics-related incidents, including Terra, Celsius Network, Beanstalk, Fortress, Axie Infinity, Solend, and Babylon Finance. These widely reported incidents have caused over $790 million in direct asset losses and have affected billions of dollars worth of other assets.

How to Choose an Anti-Phishing Plugin

In response to the frequent and significant consequences of NFT theft, SlowMist Technology has released two specialized tracking analyses to address NFT phishing groups.

A Guide to Metaverse Real Estate Development

By the end of this guide, you will have a deeper understanding of the metaverse and its potential impact on various aspects of our lives. You will also have gained insight into the technology and applications behind the metaverse, as well as the challenges and opportunities that lie ahead.

How to Evaluate Blockchain Analysis Tools

If you’re considering investing in this technology, read on to learn about the use cases, their ideal tool sets, and how to evaluate your options.

Fundraising and investment

Israeli Blockchain Chip Startup Chain Reaction Raises $70 Mln

The fund will be used to expand its engineering team as it develops its next chip and rolls out its first one to the market this year.

Galaxy Digital Closes $44M Acquisition of Self-Custody Platform GK8

Mike Novogratz's crypto-focused financial services firm Galaxy Digital has closed its acquisition of institutional self-custody platform GK8 more than two months after winning an auction to buy the company from bankrupt crypto lender Celsius.

Bitcoin Mining Consulting Firm Sabre56 Raises $35M

Sabre56, a company that consults miners on the development and operations of facilities, has raised $35 million to build its own hosting sites, aiming to have 150 megawatts (MW) of energy capacity ready by the end of the year. 

Web3 Social Startup Towns Raises $25.5M Led by Andreessen Horowitz

Others joining Andreessen Horowitz in the Series A funding include Benchmark and Framework Ventures.

DWF Labs Invests $25M in Privacy Tech Startup Beldex

The funds will help fuel research and development for the Beldex ecosystem, and DWF will serve as a counselor and help with marketing.

Viral Quotes

"We’re going to keep seeing these crypto exchanges going to ZERO, until we actually force regulation on these guys."

—  Kevin O'Leary, Canadian investor and television personality

"[Stablecoins] do not settle in central bank money or enjoy lender-of-last-resort support. Accordingly, they cannot guarantee the singleness of money."

—  Agustin Carstens, the general manager of the Bank for International Settlements (BIS)

"I think bitcoin fixes democracy… because I think democracies have been disabled and infected with fiat currency essentially, and I think they’ll be much better off on the other side, whereas I think tyrannies and police states are going to have a really hard time on the bitcoin standard."

— Alex Gladstein, CSO of the Human Rights Foundation  

"Regulators let the bad guys get big and blow up because it serves their agenda"

— Jesse Powel, CEO of Kraken

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