Krystal Newsflash (25th Nov 2022)
Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:
Binance eyes the hardware wallet industry? 👀
After the FTX debacle, self-custody of your assets has become a hot topic.
Apart from Trust Wallet, Binance has now expanded its reach to the hardware wallet industry after it invested in Ngrave.
Ngrave is a cold wallet that does not have any form of connection with the Internet, making your funds extremely secure.
We would recommend you buy a hardware wallet if you own a large sum of funds in your non-custodial hot wallet.
Recently, Bo Shen, a general partner Fenbushi Capital, announced that he lost $42 million worth of cryptocurrency funds from his wallet.
After further investigation, it was discovered that his seed phrase was compromised, which led to his wallet being drained.
We would like to emphasise the importance of keeping your seed phrase secure, and you can find out more about that here.
More stablecoins launching 🚀
3 big players in the crypto world have announced that they will be issuing their own stablecoins.
2 stablecoins will be launched on the Cardano blockchain, including USDA by Emurgo,
and the Djed stablecoin.
Meanwhile, Curve Finance has released its whitepaper for the crvUSD stablecoin that uses a unique lending-liquidating AMM algorithm (LLAMMA).
This unique approach is rather complex, but it mainly uses liquidity pools as its form of collateral, which ensures that the collaterisation to the US dollar remains stable.
New privacy policies raise eyebrows 🤨
Changes to privacy policies were announced for both Uniswap,
Uniswap mentioned that they will be collecting on-chain and off-chain data, which “could be used to remember which tokens users have imported, and their preferences in trading”.
However, Uniswap will not be collecting sensitive data like names, emails or IP addresses.
In a show of transparency after the FTX debacle, crypto exchange OKX has launched its Proof of Reserves dashboard for users to verify their assets.
At the time of writing, OKX’s reserves have a collaterisation ratio of between 101–102% for BTC, ETH and USDT.
This is a first step to transparency by centralised exchanges, as OKX moves towards publishing a Merkle tree Proof of Reserve in the coming weeks.
You can find out why this technology is so important as a Proof of Reserve for these platforms here.
DBS completes trade on JP Morgan crypto network
While this transaction usually takes days to settle, it was done in a matter of hours when conducted on the blockchain.
Banks and traditional financial institutions are becoming increasingly interested in blockchain technology, which has the potential for greater use cases.
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