PA Daily | UK FCA warns Pump.fun of providing financial services or products without permission; "Crypto Czar" David Sacks is a Solana supporter and investor in Multicoin Capital

Today's news tips:

1. Trump’s appointed crypto chief David Sacks is a Solana supporter and Multicoin Capital investor

2. The Czech Republic has unanimously agreed to exempt Bitcoin held for more than 3 years from capital gains tax.

3. The UK FCA issued a warning to Pump.fun, saying that it provided financial services or products without permission. After being warned, the latter banned UK users from accessing

4. Musk posts portraits with the words "The Dogeson" and "The Dogefather"

The 5.1inch team sold 5.217 million 1INCH in the past day, and 15.698 million 1INCH so far since December 5

6. The hack of the multi-chain lending protocol Radiant Capital was caused by hackers related to North Korea

7. EigenLayer plans to launch an upgraded version of Rewards v2 in January next year, aiming to enhance the flexibility of the re-staking ecosystem

8. Bloomberg: Trading platform eToro plans IPO in the US, working with Goldman Sachs

Regulatory News

Trump-appointed crypto chief David Sacks is a Solana backer and investor in Multicoin Capital

According to Cointelegraph, David Sacks, the crypto chief appointed by Trump, is a staunch supporter of Solana and an investor in crypto investment company Multicoin Capital. In October 2021, David Sacks publicly disclosed in the 50th episode of the "All-In" podcast that he bought a large amount of Solana (SOL) at a discount. He also said that he did not sell SOL after the collapse of FTX. He also mentioned that Solana has the potential to replace Ethereum and become the preferred blockchain platform. Earlier news, Trump appointed David Sacks as the head of the crypto field. The VC founded by David Sacks has invested in crypto projects such as dYdX and Lightning Labs.

Related reading: White House encryption chief David Sacks' diverse background: Silicon Valley investor, Musk's close friend, Vance's financial sponsor

Former New York Fed President: Building Bitcoin reserves is not good for the U.S. government or non-coin holders

According to Jinshi, former New York Fed President Bill Dudley said that since Trump won the US presidential election, the price of Bitcoin has risen by more than 40%, partly because people hope that he will support the establishment of a government reserve of this cryptocurrency. He supported the idea during the campaign, and lawmakers who support cryptocurrency have also proposed ways to achieve this goal. It is hard to imagine what good this will do for most Americans.

But what are the benefits of building a Bitcoin reserve for the government or for people who don’t hold Bitcoin? There are none. There is no exit strategy, so the purpose is to drive up inflation rather than create value for the government — which would be forced to hold a volatile token that generates no income. To fund the purchases, the Treasury would either have to borrow (thus raising the cost of debt servicing) or the Fed would have to create money (thus increasing inflation). The latter would be little different from the Fed monetizing U.S. government debt (as would proposed congressional legislation directing the Fed to use the government’s gold reserves).

Czech Republic unanimously approves capital gains tax exemption for Bitcoin held for more than 3 years

According to Cointelegraph, the Czech Republic has unanimously approved by parliament to exempt Bitcoin from capital gains tax if it is held for more than three years.

Letter obtained by Coinbase shows that US regulators have asked banks to stop crypto business

According to CoinDesk, according to information obtained by a research company hired by Coinbase Inc. (COIN), in 2022, the Federal Deposit Insurance Corp. suspended or blocked a large number of U.S. banks' crypto banking activities. History Associates Inc., a helper hired by Coinbase, took the FDIC and the U.S. Securities and Exchange Commission to court in June and eventually gained access to certain internal communications of the FDIC. A large number of redacted documents released on Friday showed that bank regulators have taken severe measures against lenders that provide or consider providing products and services in the field of digital assets.

The industry has long complained that it is in the midst of a banking crisis, with companies and leading crypto figures being barred from using U.S. banking services. Coinbase Chief Legal Officer Paul Grewal argued that the letters are hard evidence that regulators are systematically isolating cryptocurrency businesses from banking. Grewal said: "These letters show that this is not a conspiracy theory at all, this is not just speculation or the whims of a paranoid industry, the FDIC had an elaborate plan that they had no qualms about implementing to deny banking services to a legitimate U.S. industry. This should give everyone food for thought."

Grewal said the next step for the federal court would be to require the redactions in the letters to be cleared to reveal the institutions involved, the services they were trying to provide and all the questions they were asked. He said that would help understand the "why" of the FDIC's position. "Even though the federal courts have repeatedly ordered the FDIC to provide this information, they continue to drag their feet, and we think it's time for them to stop," Grewal said. The government has previously tried to separate controversial but legal businesses from banking operations, and the de-banking effort is known in the industry as "Operation Chokepoint 2.0."

People's Court Daily: Virtual currency has property attributes, and stealing virtual currency constitutes theft

The People's Court Daily published an article entitled "Criminal Characterization of Illegal Theft of Virtual Currency", pointing out that stealing virtual currency constitutes theft. It is generally believed that as economic property, it must have value, including utility, scarcity and disposability. Scarcity is reflected in the fact that the total amount of virtual currency is constant and not infinitely supplied. Disposability is reflected in the fact that virtual currency uses asymmetric encryption technology and exists in a "wallet" (i.e., address). After obtaining the address and private key, the virtual currency can be controlled. Utility is reflected in the fact that virtual currency, as a specific data code, must be generated through "mining", and "mining" condenses social abstract labor. In real life, virtual currency can be transferred and traded to obtain calculable economic benefits, and has use value and exchange value. Therefore, virtual currency has property attributes.

The act of stealing virtual currency constitutes the crime of illegally obtaining computer system data. "Data" is defined as "any record of information in electronic or other form". Virtual currency is generated and exists in computer networks. In terms of technical attributes, it is a string of digital combinations that exist in electronic form and has the criminal law attributes of computer information system data. Virtual currency has data properties, and the act of illegally stealing virtual currency constitutes the crime of illegally obtaining computer system data.

After determining that the theft of virtual currency is an imaginary competition of the crime of illegally obtaining computer system data and the crime of theft, the question arises as to how to calculate the value of the virtual currency involved. Since the price of virtual currency changes at any time, in practice, it should be objectively determined based on the principles of fairness, rationality and convenience. Since virtual currency is property, the illegal possession of other people's virtual currency constitutes a property crime, and the amount of loss of the victim is used as the amount involved in the case, which is in line with the basic principle of calculating the amount of property crime. However, due to the supply and demand relationship and artificial speculation of virtual currency, its price will show a large appreciation or depreciation change. Therefore, it is more reasonable to calculate the amount of virtual currency involved as the time when the defendant committed the crime rather than when the victim purchased the virtual currency.

Project News

Binance Finance, One-click Coin Purchase, Flash Exchange, Leverage, Contracts Launch Across Protocol (ACX) and Orca (ORCA)

According to the official announcement, Binance Finance, One-Click Coin Buying, Flash Exchange Trading Platform, Leverage, Fixed Investment Platform and Binance Contracts will launch Across Protocol (ACX) and Orca (ORCA). Among them, Binance will launch ACX 1-75x U-standard perpetual contract and ORCA 1-75x U-standard perpetual contract at 23:00 on December 6, 2024 (Eastern Time Zone 8).

Sky is questioned for using external accounts to manage $756 million USDC reserves

According to Cointelegraph, Sky (formerly MakerDAO) uses an external account (EOA) to manage its $756 million USDC reserve for its streamlined pegged stable module (PSM), raising questions about security and transparency. Critics believe that this custody model could make funds vulnerable to potential attacks or internal abuse.

Bloomberg: Trading platform eToro plans IPO in the US, partners with Goldman Sachs

According to Bloomberg, people familiar with the matter revealed that eToro, an online brokerage company that provides cryptocurrency and stock trading, is working with Goldman Sachs Group to prepare for an initial public offering in the United States. eToro is considering going public as early as the second quarter, but this timetable may change. The company said its listing valuation may be higher than the $3.5 billion achieved in private financing last year. People familiar with the matter said that details such as the issuance time may change, and more banks may be added to the list.

Previously, eToro attempted to go public at a valuation of $10.4 billion through a merger with a special purpose acquisition company led by serial trader Betsy Cohen. Both parties agreed to terminate the transaction in 2022.

Market News: Pump.fun bans UK users from using the platform due to local laws and regulations

According to Aggr News, the Pump.fun website shows that the website is banned in the UK. According to the screenshot of the Pump.fun website provided by it, Pump.fun said: "Our system has identified that you are located in the UK. In accordance with UK laws and regulations, this website is currently not open to UK users. If you have tokens in your private key wallet, please click the link below to withdraw."

UK FCA issues warning to Pump.fun for providing financial services or products without permission

According to the official website, the UK Financial Conduct Authority (FCA) issued a warning to Pump.fun, saying that "the company may provide or promote financial services or products without our permission. You should avoid dealing with the company and be wary of scams."

EigenLayer plans to launch an upgraded version of Rewards v2 in January next year, aiming to increase the flexibility of the re-staking ecosystem

According to Cointelegraph, Eigen Labs plans to launch an upgraded version of Rewards v2, which aims to bring greater flexibility, efficiency and customization to rewards in the EigenLayer ecosystem. The testnet launch will be deployed on the Holesky testnet on December 12 and will be deployed on the mainnet in January next year.

The proposed upgrade is also the first EigenLayer Improvement Proposal (ELIP) using the EigenLayer Governance Process (EigenGov) recently announced by the Eigen Foundation. The Rewards v2 upgrade proposes to expand the platform rewards functionality, introducing several features: Operator-oriented rewards: AVS can reward operators based on performance or custom logic. Variable operator fees: Operators can set their own rates based on AVS, providing economic flexibility and attracting diverse participation. Batch reward claiming: Stakers and Operators can claim multiple rewards in a single transaction, thereby reducing gas costs.

These upgrades enable AVS to dynamically incentivize operators, allowing for the customization of reward mechanisms that better suit their specific needs.

Farcaster plans to launch new data layer Snapchain in Q1 next year

Farcaster co-founder Varun Srinivasan said on the X platform that Snapchain, the new data layer of the Farcaster social network, will enter Alpha testing in December, with the goal of full launch in the first quarter of 2025. Snapchain is written in Rust, can handle 10,000+ TPS, and will support millions of daily active users. Snapchain allows users to pay a certain fee per year to make unlimited transactions. Users create an account by initiating a transaction to the registration contract on the OP mainnet. After creating an account, users can sign Snapchain transactions using the "application key" configured by the registry.

Sushi DAO launches funding diversification strategy proposal to reduce asset volatility and enhance liquidity

Sushi DAO has launched a fund diversification strategy proposal, intending to transfer 100% of the treasury assets SUSHI tokens to 70% stablecoins (USDC, USDT, etc.), 20% blue-chip cryptocurrencies (ETH, BTC) and 10% DeFi tokens (such as AAVE). The strategy aims to reduce volatility, enhance liquidity and generate income through staking, lending and liquidity provision.

Musk posts portrait photo with the words "The Dogeson" and "The Dogefather"

Musk posted a portrait photo with his son on social media, with the words "The Dogeson" and "The Dogefather" on the photo, and the comment "Doge & Minidoge".

Radiant Capital, a multi-chain lending protocol, was hacked by hackers linked to North Korea

Multichain lending protocol Radiant Capital has released an update on the October 16 hack, which resulted in a loss of approximately $50 million. While the investigation is ongoing, cybersecurity firm Mandiant has a high degree of confidence that the attack was carried out by threat actors with ties to North Korea. In addition to working with Mandiant, Radiant DAO continues to work closely with U.S. law enforcement and zeroShadow to freeze the stolen assets.

Earlier news, Radiant Capital suspended its loan market due to a vulnerability attack, with an estimated loss of approximately US$58 million .

Important data

ETH breaks through $4,000 for the first time since March, up 2.88% on the day

Bitcoin spot ETF had a net inflow of $377 million yesterday, continuing its net inflow for 7 consecutive days

Ethereum spot ETF had a net inflow of $83.7587 million yesterday, continuing its net inflow for 10 consecutive days

The total holdings of U.S. Bitcoin spot ETFs have exceeded Satoshi Nakamoto's BTC holdings

Eric Balchunas, senior analyst at Bloomberg, wrote on the X platform: "The total Bitcoin holdings of US spot ETFs have just exceeded Satoshi Nakamoto's Bitcoin holdings, and currently hold more than 1.1 million Bitcoins, more than anyone else in the world. These funds have been established for less than a year and are simply 'baby' level."

A certain whale spent 45.81 million USDT to buy 468.7 WBTC again, the fourth time since October.

According to on-chain analyst Ember’s monitoring, a WBTC whale sold WBTC at $101,437 yesterday after BTC broke $100,000, and spent 45.81 million USDT to buy back 468.7 WBTC at $97,725 two hours ago.

This is his fourth WBTC trade since October, and because the BTC price has been rising, all of his trades have been profitable.

Tether Treasury mints 2 billion new USDT on Ethereum network

According to WhaleAlert monitoring, Tether Treasury minted 2 billion new USDT on the Ethereum network in the early morning.

The 1inch team sold 5.217 million 1INCH in the past day, and 15.698 million 1INCH so far since December 5

According to on-chain analyst Yu Jin, the 1inch team investment fund sold 1INCH for the third consecutive day: they sold 5.217 million 1INCH in the past day for 2.815 million USDC. Since the 1inch team started selling 1INCH on the 5th, they have sold a total of 15.698 million 1INCH for 8.38 million USDC, with an average selling price of $0.533.

Marathon Digital, a US-listed mining company, has increased its holdings of 1,300 Bitcoins in the past 7 hours

According to Lookonchain monitoring, Marathon Digital, a US-listed mining company, purchased an additional 1,300 bitcoins in the past 7 hours.

A whale deposited 2.78 million WIF to Coinbase 12 hours ago, or made a profit of $8.48 million

According to Lookonchain monitoring, 12 hours ago, a whale deposited 2.78 million WIF (9.5 million U.S. dollars) to Coinbase. This whale spent 9,300 SOL (1.02 million U.S. dollars at the time) to buy 2.78 million WIF 10 months ago, making a profit of 8.48 million U.S. dollars.