21/07/2024. Weekly CryptoNews Digest (July, 15 – July, 21)

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So grab your favorite summer drink, settle in, and let’s explore the most impactful crypto events from July 15th to July 21st, 2024 in MNO’s traditional Weekly CryptoNews Digest!

BITCOIN UNAFFECTED BY CROWDSTRIKE OUTAGE

Earlier his week a faulty software update issued by security giant CrowdStrike resulted in a massive overnight outage that affected Windows computers worldwide. The disruption impacted businesses, airports, train stations, banks, broadcasters, and the healthcare sector, causing widespread network failures and the infamous “blue screen of death” on affected systems. Additionally, airport check-in systems, supermarkets, and media companies were among those hit by the chaos caused by the CrowdStrike outage. Microsoft also reported difficulties with its Microsoft 365 apps and Azure cloud system during the same period, further compounding the global IT challenges.

Bitcoin’s Resilience: Amidst the chaos caused by a faulty software update from CrowdStrike, Bitcoin remains unaffected due to its decentralized nature. Unlike centralized systems that rely on specific providers and infrastructure, Bitcoin operates independently. Most Bitcoin miners use Linux-based frameworks, which shield them from the network failures caused by the CrowdStrike incident. As a result, Bitcoin’s hash rate chart shows no significant impact during this crisis.

CrowdStrike Outages and Bitcoin: The widespread network failures triggered by CrowdStrike’s faulty update affected various services and organizations. However, Bitcoin’s mining operations continued seamlessly. SunnySide Digital founder and CEO Taras Kulyk emphasized that Bitcoin’s resilience stems from its reliance on decentralized mining nodes. These nodes collectively maintain the network, ensuring that hashing activities persist even when other systems falter.

Decentralization as a Strength: The incident highlights the strength of decentralized systems like Bitcoin. By avoiding dependence on any single entity or software provider, Bitcoin remains robust and secure. Its hash rate, a measure of computational power dedicated to mining, reflects this resilience. While centralized networks face vulnerabilities during outages, Bitcoin’s decentralized architecture allows it to “keep hashing” even amidst widespread disruptions.

WINKLEVOSS TWINS DONATE $1M TO UNSEAT SEN. ELIZABETH WARREN

The Winklevoss twins, founders of Gemini exchange, made a significant donation to support a political cause related to crypto regulation.

The Donation and Motivation: Tyler and Cameron Winklevoss, co-founders of the cryptocurrency exchange Gemini, recently donated a total of $1 million to support efforts aimed at unseating United States Senator Elizabeth Warren. The twins contributed $500,000 each in Bitcoin to John Deaton, a crypto advocate running for Senate. Their goal is to put an end to what they perceive as Warren’s detrimental stance on cryptocurrencies. Tyler Winklevoss publicly criticized Warren, calling her “public enemy number one” when it comes to crypto.

Warren’s Stance and Impact: Elizabeth Warren has been a vocal critic of cryptocurrencies and their regulation. She has actively pushed for stricter oversight and has directed the Securities and Exchange Commission (SEC) to investigate crypto-related activities. The Winklevoss twins argue that Warren’s actions harm the industry by using government agencies to attack crypto businesses through debanking and enforcement actions. They view her as a significant threat to American prosperity.

The Commonwealth Unity Fund: The donations made by the Winklevoss twins will go to the Commonwealth Unity Fund, a “super” political action fund created to replace Elizabeth Warren with John Deaton. Although the funds won’t directly benefit Deaton’s campaign, they will support campaign ads and related efforts. This move comes after the twins previously donated $2 million in Bitcoin to GOP presidential nominee Donald Trump. Warren, in response, has expressed confidence in facing a pro-crypto opponent, emphasizing her stance against “crypto scams.

ZERO-ENERGY STORAGE BREAKTHROUGH FOR ETERNAL BLOCKCHAINS

Researchers achieved a breakthrough in zero-energy data storage, which could have implications for blockchain technology.

The Immortal Blockchains: Recent advancements in long-term storage have opened up the possibility of creating digital ledgers that can store data for millions of years without the need for power. These decentralized systems are aptly referred to as “immortal blockchains.” Unlike centralized servers that rely on continuous access to electricity, these blockchains remain unaffected during local power outages or server failures as long as operational nodes exist elsewhere. The breakthrough could revolutionize data storage, ensuring the preservation of valuable information for future generations.

Challenges and Threats: While modern computer systems use battery backups to retain data during temporary power outages, global threats like natural disasters or electromagnetic pulses pose risks to both decentralized and centralized data storage. Governments often lack contingency plans for critical systems like Bitcoin and Ethereum blockchains in such cataclysmic scenarios. If power were permanently lost across all nodes, the fate of average blockchains would become uncertain. Enter the concept of immortal blockchains, which could safeguard data even in the face of human extinction or the degradation of traditional storage mediums over centuries.

Long-Term Storage Solutions: Beyond blockchain networks, advanced long-term storage solutions offer hope for preserving critical data. DNA storage involves encoding data onto artificial fossils, while Ceramic Nano Memory allows data to be stored on glass, theoretically preserving it indefinitely without degradation. Although these technologies weren’t specifically designed for blockchains, they demonstrate the potential of zero-energy storage. With this breakthrough, creating a snapshot of a functioning blockchain becomes conceivable, paving the way for eternal data storage.

ETH ETFs LAUNCH DATE ANNOUNCED BY CBOE

The Chicago Board Options Exchange (CBOE) has officially announced the launch date for five spot market Ethereum (ETH) exchange-traded funds (ETFs). These ETFs are set to begin trading on July 23, pending regulatory approval. The CBOE’s move comes after the United States Securities and Exchange Commission (SEC) approved rule changes allowing the listing of several spot Ether ETFs. However, before trading could commence, the regulator needed to sign off on each fund issuer’s respective S-1 registration statements.

The Five Spot Ether ETFs: The five spot Ether ETFs scheduled for trading on the CBOE are as follows: 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, Franklin Ethereum ETF. These ETFs aim to provide investors with exposure to Ethereum’s price movements without directly holding the cryptocurrency. To gain an early market advantage, most of the ETF issuers have announced plans to temporarily waive or discount fees, competing for market share once the products are live.

Potential Impact and Market Expectations: Industry analysts anticipate that Ether ETFs could attract billions in net inflows in the months following their launch. Increased demand from institutions looking to include Ether in their exchange-traded funds may lead to a supply crunch. Some experts believe that Ether’s price could outperform Bitcoin in percentage terms due to lower liquidity and increased price volatility. Overall, the CBOE’s announcement marks a significant step in bringing Ethereum exposure to traditional financial markets.

CRYPTO EXCHANGE CEO ARRESTED FOR $26M FRAUD

The mastermind behind the collapse of the digital currency platform AAX has been apprehended after evading authorities for 20 months. According to a recent report by Oriental Daily News, the 39-year-old man was arrested upon re-entering Hong Kong on July 18. He is set to appear in Eastern Law Court on July 20 to face charges related to a $26 million fraud. AAX, a local cryptocurrency exchange, ceased operations in November 2022, leaving over 300 customers unable to withdraw approximately $12.8 million in assets. Authorities discovered that the shutdown was orchestrated through false information and illegal methods, prompting an extensive investigation.

During the investigation, law enforcement agencies froze assets totaling approximately $256,100 in the bank accounts of the involved company and suspects, as well as properties valued at $7 million. It was later revealed that the AAX’s mastermind had already fled Hong Kong with his crypto wallet and private keys. This individual managed the digital currency platform and orchestrated its collapse through false information and illegal means. The man left Hong Kong in November 2022 and was arrested when he re-entered. As of today, law enforcement agencies have received reports from 890 victims, involving a total amount of $26 million.

Recently, the Hong Kong Securities and Futures Commission (SFC) identified seven crypto exchanges operating without authorization and added them to its Alert List for conducting activities in the region without the necessary licenses. The public record, known as the Alert List, has been maintained since January 2020. This year alone, 28 unlicensed crypto exchanges have been flagged. The case of AAX highlights the importance of regulatory oversight and vigilance in the crypto industry, especially as adoption continues to grow.

CRYPTO CEO ON ART, ADOPTION, AND INNOVATION

In an exclusive interview with the Cryptonews Podcast, Burnt Banksy, the founder of XION, delved into intriguing topics related to art, adoption, and innovation. Let’s explore the key points from the conversation:

The ‘Moron’ Experiment: Burnt Banksy made headlines in 2021 when he and two friends burned a Banksy print called ‘Morons’ during a livestream. The audacious experiment aimed to test the value of the NFT (non-fungible token) version of the artwork. Despite the initial perception that NFTs were mere JPEGs with no inherent worth, the trio purchased the piece for $95,000 and later sold it for a staggering $380,000, breaking the previous NFT sale record. Reflecting on the experience, Burnt Banksy candidly admitted, “We were f***ing stupid. It was dumb.” The experiment highlighted the evolving perception of NFTs and their potential value.

Creating Walletless Layer 1 Blockchain: Before founding XION, Burnt Banksy was already deeply entrenched in the crypto world. However, he recognized a major issue: the user experience (UX) was often terrible. Many people found it challenging to navigate the complexities of blockchain technology unless they were well-versed in its intricacies. To address this, XION set out to create the first walletless Layer 1 blockchain specifically designed for consumer needs. By removing unnecessary technical barriers, XION aims to make Web3 accessible to everyone, everywhere. Burnt Banksy’s vision centers on improving UX and ensuring that blockchain adoption becomes seamless for users.

Chain Abstraction and Mass Adoption: XION’s solution to enhancing user experiences involves chain abstraction. This concept simplifies interactions with Web3 by abstracting away the complexities of different blockchain layers. Rather than competing directly with other Layer 1 blockchains, Burnt Banksy believes that specialized Layer 4s, Layer 8s, and beyond will play a crucial role in the ecosystem. As these layers emerge, the industry inches closer to mass adoption. Burnt Banksy’s passion lies in creating innovative solutions that bridge the gap between crypto enthusiasts and mainstream users, ultimately propelling the entire space forward.

That’s all for today’s Weekly CryptoNews Digest on MNO. Tune in next week for more cryptocurrency news, everyone!

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Weekend warriors, go forth and conquer! July is simmering with possibilities, so soak up the sunshine and recharge your crypto batteries.

I’ll be back next Sunday, ready to dive into the latest crypto intel. Until then, stay informed, stay prosperous, and remember: MNO – For Money Lovers!