Web3🌕Monday Shakeup: USDC Boost in Japan, ATOM Dips, Ethereum Launch Frenzy, CZ's Flight Risk Term
1. Circle, SBI Holdings bolster USDC in Japan
2. Cosmos Founder pushes Chain Split; ATOM drops 3%📉
3. Ethereum Layer-2 debut rattles; $535M locked💥
4. CZ labeled 'manageable flight risk' by U.S. DOJ ✈️
Stay tuned for deeper insights ahead!🚀
Greetings on this Monday! Get ready to delve into the latest in Web3 highlights. From Circle and SBI Holdings enhancing USDC in Japan to the Cosmos Founder's chain split initiative impacting ATOM's value, today's insights are compelling. Additionally, the Ethereum Layer-2 launch stirring the market with $535M locked and the U.S. DOJ's perspective on CZ as a manageable flight risk add intriguing dimensions to the day's developments. Stay tuned for an in-depth exploration of these significant updates!
1. Circle and SBI Holdings partner to boost USDC circulation in Japan
In an effort to catalyze the adoption of USDC (USD Coin) and accelerate the development of Web3 services in Japan, Circle has joined hands with SBI Holdings, a Tokyo-based financial services firm. The collaboration marks a significant stride towards establishing USDC in Japan's financial landscape. The memorandum of understanding (MOU), sealed on November 27, signifies the strategic expansion of USDC in the country. Following revisions in Japan's Payment Services Act, stipulating regulations for stablecoins, Circle anticipates these changes will drive the issuance and circulation of stablecoins in Japan, fostering the transition towards a robust Web3 economy. SBI Holdings is initiating the process to register as an electronic payment instruments service provider, awaiting regulatory approval. This partnership intends to introduce new standards in Japan's financial sector while providing USDC access and liquidity for local enterprises through SBI Shinsei Bank. The collaboration also aims to propagate Circle's suite of Web3 Services across Japan and Asia, contributing to its expansion strategy in the region.
Brayden Lindrea
2. Cosmos Founder Calls for Chain Split; ATOM Down 3%
The Cosmos Hub, an intermediary among decentralized blockchains within the Cosmos network, has proposed a hard fork named AtomOne. This initiative seeks to split the blockchain following community approval to reduce the native token, ATOM's, inflation from 14% to 10%. This decision, albeit backed with 41.1% support, is causing a stir within the community.
Cosmos' founder, Jae Kwon, is advocating for this hard fork, which could potentially benefit ATOM investors. However, he expressed reservations about the proposal's outcome, citing concerns about the protocol's future and the plan's potential impact on ATOM's value.
The proposed reduction in inflation from 14% to 10% is anticipated to trim ATOM's annualized staking yield from around 19% to roughly 13.4%. While the hard fork aims to address community conflicts and enhance the token's future, uncertainties persist around its potential implications and its effects on ATOM's trading value, which currently stands at $9.59, experiencing a 3.5% drop.
Omkar Godbole
3. Paradigm Says Ethereum Layer-2 Blast Launch 'Crossed Lines' as Users Lock Up $535 Million
Paradigm, an early investor in Ethereum's layer-2 scaling network Blast, expressed reservations despite its significant user engagement and $535 million locked in funds. Blast, initiated by Blur's founder, promised native yield and rewards for Ethereum and stablecoins through staking. However, its launch approach drew criticism for allowing users to lock funds into a bridge before the network's live phase, with no withdrawal possibility until the anticipated mainnet debut in February.
Paradigm's Head of Research, Dan Robinson, took to Twitter to share concerns, disapproving of Blast's execution and messaging. He emphasized the decision to launch the bridge before the network and the unavailability of withdrawals for three months, labeling it as a potentially negative precedent for similar projects. Robinson criticized aspects of Blast's marketing, alleging it undermined the serious nature of the network's development. Despite their disagreement, Paradigm acknowledges Blast's team while asserting their commitment to advocating best practices in the crypto ecosystem.
Andrew Hayward
4. Binance's Changpeng 'CZ' Zhao labeled 'manageable flight risk' by U.S. DOJ
The U.S. DOJ contends that former Binance CEO CZ Zhao should remain free within the United States until his sentencing, asserting him as a "flight risk." Although Zhao, holding UAE and Canadian passports, voluntarily appeared in court, U.S. Attorneys argue that the severity of potential sentencing could incentivize him to flee to the UAE, which lacks an extradition treaty with the U.S. Despite his voluntary surrender and a sizable bail proposal, prosecutors highlight his limited ties to the U.S. Last week, Zhao pleaded guilty to anti-money laundering violations and resigned from Binance, which admitted to criminal charges, agreeing to a $4.3 billion penalty. While Zhao awaits sentencing, the DOJ aims to restrict his movement within the U.S., citing the impending sentence's gravity. Sam Bankman-Fried, another former executive facing sentencing, remains in custody.
Sam Reynolds
In closing, today's Web3 advancements reveal a dynamic landscape of significant events. These highlights illustrate the ongoing transformations within the Web3 sphere. The collaboration between Circle and SBI Holdings signifies potential expansion in Japan, while Cosmos' potential Chain Split and Ethereum Layer-2's launch mark significant advancements. The U.S. DOJ's stance on CZ's situation adds a layer of complexity to this rapidly evolving sector. Stay tuned to explore the implications of these developments and their impact on the exciting world of Web3!
