Fideum Crypto News Desk #65
Stockholm FinTech Week: A Productive Outing for Fideum Team
Stockholm FinTech Week, held from February 13th to 16th, proved to be an exceptional gathering for finance and technology enthusiasts, showcasing the latest innovations in the FinTech sector. Our team, led by our CEO and Co-Founder, Anastasija Plotnikova, had the opportunity to immerse themselves in this vibrant event, engaging with industry leaders and exploring cutting-edge ideas.
Joining Anastasija were Darren Franceschini, our Co-Founder; Vilius Gudavicius, our Chief Operating Officer; Eimante Rimasauskaite, Operations Manager; and Lauryna Einorytė, Account Manager. Together, they represented the core of our company’s vision and operational strength.
The team had a productive time networking with experts, participating in insightful discussions, and discovering potential avenues for innovation and collaboration. The event not only allowed them to share their expertise but also to absorb new knowledge and perspectives that are crucial for staying ahead in the rapidly evolving FinTech landscape.
Stockholm FinTech Week was undoubtedly a productive and insightful event for our team. It served as a platform for connecting with like-minded professionals and reinforcing our commitment to innovation and excellence in the FinTech industry.
Telefonica and Chainlink Labs Forge Alliance to Enhance Security
Spanish telecommunications titan Telefonica has announced a strategic partnership with web3 solutions pioneer Chainlink Labs. This collaboration aims to merge the realms of telecommunications and blockchain technology, thereby enhancing security measures across the board. The partnership’s initial endeavor will leverage the SIM SWAP API, developed by the Global System for Mobile Communications Association (GSMA) Open Gateway, to mitigate fraud in banking and individual accounts by monitoring SIM card modifications. Through the integration of Chainlink’s LINK Functions, developers can now access real-world data via the SIM SWAP API, ensuring heightened security for blockchain transactions. This integration not only provides an additional security layer for smart contracts by verifying the absence of unauthorized SIM changes but also paves the way for novel applications within the industry. Johann Eid, Chainlink Labs’ Chief Business Officer, emphasized the significance of bringing Telefonica’s OpenGateway APIs on-chain, highlighting the potential for enhanced user protection and asset security. With Telefonica’s vast network spanning Europe and Latin America and a market cap of over 20 billion euros, this partnership marks a significant milestone in the convergence of telecommunications and blockchain technologies.
Uniswap v4 Set to Launch Post-Ethereum Dencun Upgrade
Uniswap Foundation has outlined the deployment of Uniswap v4, aligning its launch with the much-anticipated Ethereum Dencun upgrade in Q3 of 2024. This announcement marks a significant milestone for the decentralized finance (DeFi) landscape. Currently in a “Code Freeze” phase, the Uniswap team is fine-tuning the core code, optimizing gas fees, and enhancing security. The deployment process will include rigorous audits by professional firms and a community contest, aiming to make Uniswap v4 one of the most securely audited codes on the Ethereum blockchain. This meticulous preparation underscores the Foundation’s commitment to safety and efficiency ahead of its testnet deployment and eventual mainnet launch.
The integration with Ethereum’s Dencun upgrade, noted for its introduction of proto-danksharding via EIP-4844 to reduce layer2 transaction costs, promises to further elevate Uniswap’s platform. Despite minor delays in the upgrade’s testnet phases, the Ethereum community remains optimistic, with the mainnet upgrade scheduled for March 13, 2024.
Justin Sun Charts a New Course for Bitcoin with Tron’s Layer Two Integration Roadmap
Justin Sun, the visionary founder of Tron, has unveiled a groundbreaking roadmap aimed at revolutionizing the Bitcoin ecosystem. With a clear focus on Bitcoin Layer two solutions, Tron is setting the stage for a new era of blockchain interoperability, particularly targeting the integration of stablecoins and other token types with the Bitcoin network. This ambitious initiative seeks to leverage Tron’s significant presence in the stablecoin market and the DeFi sector, boasting $55 billion and $22 billion in total value locked (TVL), respectively.
Sun’s strategy involves a three-stage development process designed to foster seamless interaction between Tron and Bitcoin, thereby enhancing the utility and scalability of both blockchain networks. The initial stage, Stage α, prioritizes cross-chain connectivity to enable the transfer and exchange of assets across the Tron and Bitcoin ecosystems. This includes the integration of Tron tokens and NFTs into the Bitcoin network, setting a solid foundation for interoperability.
The subsequent phase, Stage β, will see Tron forming strategic alliances with Bitcoin Layer two protocols to support restaking initiatives and contribute to the expansion of the Layer two ecosystem. Finally, Stage γ will introduce a comprehensive Layer two solution that merges Tron, BTTC, and the Bitcoin network, combining the efficiency of PoS systems with the security benefits of PoW and UTXO models.
By bridging the gap between Tron and Bitcoin, Sun aims to invigorate the Tron network with new financial opportunities and enhance the valuation of TRX and BTTC tokens. The market has already responded positively, with a noticeable uptick in the value of the Bittorrent Token (BTT), signaling broad support for Tron’s future-focused Layer two integration plans.
Apple’s Oversight: Fake Rabby Wallet App Continues to Plague Users
A counterfeit version of the Rabby Wallet app has reportedly caused significant financial losses for unsuspecting users. Despite being flagged by users four days after its discovery on February 16, the malicious application remains active on the Apple App Store, posing a serious threat to the crypto community.
The fake app, misleadingly listed as “Rabby Wallet & Crypto Solution” by “Solution Development,” has been on the App Store for several days, even though the legitimate Rabby Wallet team from DeBank has confirmed that their official app is still under review and not yet available on the platform. This lapse has led to a growing concern among users about the safety measures and vetting processes employed by Apple for apps listed in its store.
Victims of the scam have taken to social media platforms, including Reddit and X (formerly known as Twitter), to share their harrowing experiences. Reports from affected users detail losses ranging from significant portions of their crypto portfolios to individual losses of around $5,000. These incidents underscore the sophisticated nature of the scam, which involves the fake app soliciting seed phrases from users, leading to the unauthorized drainage of their wallets.
One particularly alarming case involved an NFT collector known as “bthemouth,” who reported a loss of nearly 14 Ether (worth approximately $40,000 at the time) to the fraudulent app. This incident, among others, highlights the critical need for heightened vigilance and more robust security measures within digital asset storage and management applications.
This is not the first instance of a fake Rabby Wallet app appearing on the App Store, with similar occurrences reported in October and December of 2023. The recurring nature of these incidents points to a broader issue within app stores’ ability to filter out and prevent scam applications from reaching unsuspecting users.
The situation with the fake Rabby Wallet app is a stark reminder of the ongoing challenges and risks associated with storing and managing cryptocurrencies and digital assets.
U.S. Court Greenlights Genesis $1.6 Billion GBTC Share Sale Amid Bankruptcy Resolution Efforts
A U.S. court has sanctioned Genesis’s proposal to sell $1.6 billion in Grayscale Bitcoin Trust (GBTC) shares. This decision marks a pivotal moment in the ongoing efforts to address the fallout from the 2022 bear market, potentially offering relief to Gemini Earn users awaiting the release of their frozen assets.
The approval by Judge Sean Lane enables Genesis to liquidate over 30.9 million GBTC shares, alongside shares in Grayscale’s Ethereum and Ethereum Classic trusts. This strategic sale is aimed at facilitating in-kind distributions to Earn users, ensuring the return of the specific digital assets they loaned, a move celebrated by Gemini, the cryptocurrency exchange spearheaded by the Winklevoss twins.
Genesis, which had borrowed approximately $900M in crypto from around 340,000 Gemini Earn customers, filed for bankruptcy in January 2023, a victim of the contagion risks unleashed by the FTX collapse. This sale, as Genesis points out, will also relieve it from the burden of $1.9M in monthly trust agreement fees.
The court’s decision comes in the wake of Genesis reaching settlements with both the U.S. Securities and Exchange Commission (SEC) and New York Attorney General Letitia James. These settlements, crucially, prioritize customer repayments in the company’s asset liquidation and shutdown strategy. Notably, the SEC stands to receive a $21M fine should any funds remain post-repayments.
Digital Currency Group (DCG), Genesis’s parent company, voiced concerns that the sale could pose complications if Genesis’s comprehensive bankruptcy plan fails to secure court approval. DCG’s objections highlight the delicate balance between fulfilling obligations to customers and creditors and protecting equity holders’ interests under U.S. bankruptcy law.
This court ruling and the ensuing asset sale represent a crucial step toward resolving one of the most significant upheavals in the cryptocurrency industry, offering a glimmer of hope for thousands of investors.
Japan Paves the Way for Venture Capital Crypto Investments
In a move that could significantly bolster the Web3 startup ecosystem, Japan’s cabinet has approved a bill allowing venture capital (VC) firms to include crypto assets in their investment portfolios. This legislative stride, spearheaded by the Ministry of Economy, Trade and Industry, underscores Japan’s commitment to fostering innovation while ensuring stringent user protection measures within the rapidly evolving digital asset landscape.
The approval marks a significant shift in Japan’s approach to cryptocurrency and venture capital, positioning the country at the forefront of regulatory adaptation to the needs of the modern digital economy. With a history of leading regulatory frameworks for stablecoins, Japan is now extending its visionary outlook to encompass the broader spectrum of crypto assets, potentially unlocking new funding avenues for Web3 startups.
Scheduled for debate in the current session of the Diet, Japan’s parliament, the amendment to the Industrial Competitiveness Enhancement Act reflects a deliberate effort to stimulate economic growth by supporting the ventures that drive innovation. By allowing VCs to fund startups in exchange for crypto assets, Japan is not only acknowledging the value and potential of digital currencies but also facilitating a more versatile and dynamic investment environment.
This legislative development comes on the heels of reports from September 2023, indicating Japan’s intent to ease restrictions on VC investments in crypto-centric startups. The move aligns with the country’s broader strategy to promote Web3 technologies, balancing this with a robust framework for user protection.
The amendment’s passage would represent a monumental step in aligning Japan’s economic policies with the digital age, enhancing its position as a global leader in technological innovation and investment. It signals a promising future for Web3 startups in Japan, offering them an expanded pool of resources and support to fuel their growth in the international arena.
