Innovation & Launches
Crypto exchange FTX U.S. gets into stock trading (2 minute read)
Crypto exchange FTX plans to roll out zero-commission stock trading. The company's owner acquired a minority stake in Robinhood last week. Robinhood is also planning to expand its crypto services. FTX US will offer no-fee brokerage accounts, commission-free trading, and market and company data. Customers will be able to fund their accounts using stablecoins in addition to normal dollar deposits. There will be no minimum required balances. FTX Stocks is now available for a small number of users in the US.
Magic Eden Tops OpenSea in Daily Trading Volume as Solana NFTs Heat Up (2 minute read)
Solana NFT market Magic Eden saw roughly 275,000 daily transactions according to weekly data from DappRadar. Magic Eden's own data, which does not include bids and listings, showed that the marketplace had around 47,000 daily transactions. The platform hosted 24,000 unique users in the past 24 hours. OpenSea is still far in the lead with $35 million of sales volume and an average NFT price of over $700 compared to Magic Eden's $10 million and average NFT price of $123.
Guides & Resources
What is the future of Ethereum? (1 minute read)
The future of Ethereum, according to Vitalik Buterin, revolves around soulbound tokens (SBTs). SBTs are NFTs that can't be transferred after they are received. Buterin predicts that SBTs will be available for early use by the end of 2022 and that they will be the focus of the 2024 upcycle. SBTs could be used for university degrees, verifying attendance to events, or as a way to build a community. A link to the full 37-page paper from Buterin and his colleagues on SBTs and the future of Ethereum is available in the thread.
New Tether Report Shows 17% Reduction in Commercial Paper (3 minute read)
Tether's Q1 2022 assurance report shows that it has reduced the commercial paper in its USDT reserves by 16.8%. Its $82 billion reserves at the end of March were made up of 86% cash and cash equivalents, $4 billion in corporate bonds, $3 billion in secured loans, and $5 billion in other investments. The cash and cash equivalent portion consisted of 52% US Treasury bonds, 37% commercial paper, money market funds, and actual cash deposits. A link to the report is available in the article.
Could Terra's Do Kwon Go to Prison? (4 minute read)
While Do Kwon's actions may be bad, they may not be criminal. Any criminal case brought up against Kwon would have to show that Kwon committed fraud as opposed to engaging in reckless mismanagement. It would be challenging to find evidence for such a case. The South Korean government is investigating the Terra debacle and Kwon is facing a series of civil lawsuits. It is unlikely that Kwon will go to prison.
@stablegains are in deep trouble (1 minute read)
Stable Gains took USDC and USD from customers and promised them 15% gains. It did this by putting everything into Anchor and skimming 4% off the top. The company lost around $42 million in funds from 4,878 customers and is likely unable to pay it back. Stable Gains have changed the denominations in its app from USD to UST and have changed its landing page and terms. Screenshots of the changes are available.
Coinbase is freezing hiring for 2 weeks and aiming to cut its cloud spending (1 minute read)
Coinbase is freezing hiring for two weeks and reassessing its business priorities as the crypto market faces a downturn. It plans to cut down spending on Amazon Web Services and Datadog. The company is giving employees stock grants to boost compensation. It will focus its efforts on retail trading, institutional trading and custody, staking, and international expansion.