Daily Report | Vitalik: The future of Ethereum is to truly create an independent open technology stack; friend.tech's TVL surpasses 30 million USD, ranking third in protocol fees in 24 hours

"What Important Events Happened in the Last 24 Hours"

1. DWF Labs Partner: Considering Purchasing FTX Assets

DWF Labs Managing Partner Andrei Grachev stated on social media that DWF Labs is considering purchasing FTX assets to provide the best execution price for creditors and mitigate the risk of significant aggressive selling pressure, which could bring the market back to 2020 levels. (Source link)

2. U.S. SEC Charges Stoner Cats Creators with Unregistered Issuance of Crypto Asset Securities in NFT Form

According to the SEC's official website, the SEC charged Stoner Cats 2 LLC (SC2) with conducting an unregistered issuance of crypto asset securities in the form of NFTs, raising approximately $8 million from investors to fund an animated web series called "Stoner Cats." (Source link)

3. Modular Blockchain Network Movement Labs Completes $3.4 Million Pre-Seed Funding, Led by Varys Capital, dao5, and Others

The modular blockchain network Movement Labs, based on the Move language, announced the completion of a $3.4 million Pre-Seed funding round, led by Varys Capital, dao5, Blizzard The Avalanche Fund, Borderless Capital, and their cross-chain fund focused on the Wormhole ecosystem, with participation from Colony, Interop Ventures, Elixir Capital, BENQI, as well as George Lampeth from dao5, Calvin Liu from Eigenlayer, Smokey The Bera from Berachain, Anurag Arjun from Avail, CoinFlipCanada from GMX, and co-founders from Ankr.

Movement Labs also announced the launch of Movement SDK, which will provide a secure and high-performance Move environment to the blockchain ecosystem. (Source link)

4. Starknet Ecosystem Derivatives Protocol ZKX Announces Launch of Governance Token ZKX

Starknet ecosystem derivatives protocol ZKX announced on social media that it will launch the governance token ZKX. Users can obtain governance rights, USDC-denominated protocol revenue, and other community benefits by staking ZKX tokens.

Additionally, ZKX revealed its governance token economic model, with a total supply of a fixed 100 million tokens, of which 18% will be distributed as trading rewards through smart contracts and tasks, 17% allocated to core contributors representing the ZKX team, 1% to current protocol advisors, 20% to early investors who supported ZKX over the past two years, and 20% of tokens will be allocated to a ZKX treasury governed by ZKX DAO (once formed), with 15% allocated to the community, and 9% of ZKX tokens specifically for incentivizing users and market makers providing liquidity to exchanges and AMMs. (Source link)

5. Court Approves FTX to Liquidate Its Crypto Assets

A Delaware district judge approved an order allowing the bankrupt crypto exchange FTX to sell or invest its $3.4 billion worth of cryptocurrencies. The plan indicates that most tokens can only be sold for $100 million per week, but the cap for each token may be permanently raised to $200 million. When selling Bitcoin, Ethereum, and other tokens, the management must notify the U.S. Trustee's Office 10 days in advance.

Previous reports indicated that FTX holds $1.16 billion in SOL and $560 million in BTC. (Source link)

6. Vitalik: The Future of Ethereum is to Truly Create an Independent Open Technology Stack

Vitalik Buterin stated at the Permissionless conference that crypto-based solutions have the potential to be more decentralized, privacy-protecting, and secure than the current Web2. He cited innovations like ENS and POAP as building blocks (or next-generation versions), or using zero-knowledge technology as better alternatives (e.g., Gitcoin Passport).

Vitalik Buterin mentioned, "The great dream here is to truly create an independent open technology stack that can compete with companies like Google and Twitter, but without needing to be tightly integrated with closed centralized systems."

He envisioned a gradual process where new Web3 users create an Ethereum address initially controlled by familiar services like Gmail, but using account abstraction to allow people to gain ownership as they are ready to use more crypto-native methods.

He also stated, "Basically, giving people the opportunity to step down from the decentralized ladder and then, in the end, really enter this completely independent stack correctly, where all the different parts can actually work together." (Source link)

7. Data: friend.tech TVL Surpasses $30 Million, 24-Hour Protocol Fees Rank Third

According to DeFiLlama data, friend.tech's TVL has surpassed $30 million, reaching $32.14 million.

Additionally, in the past 24 hours, friend.tech's protocol fees reached $1.2 million, surpassing Tron to rank third, only behind Ethereum ($4.4 million) and Lido ($1.59 million). (Source link)

8. Singapore MAS Imposes 9-Year Ban on Three Arrows Capital Founders Su Zhu and Kyle Davies

According to official news, the Monetary Authority of Singapore (MAS) issued a nine-year prohibition order against Mr. Zhu Su and Mr. Kyle Livingston Davies, prohibiting them from engaging in any regulated activities and from managing, serving as directors, or being major shareholders of any capital market service companies.

The MAS accused Three Arrows Capital of providing false information and failing to report changes in the directorship and shareholding of Mr. Zhu and Mr. Davies, as well as exceeding the asset management limits allowed for registered fund management companies. Furthermore, the MAS found that Three Arrows Capital violated certain SFA and SFR regulations between August and September 2020.

MAS Assistant Director Loo Siew Yee stated, "Senior management of fund management companies must implement sound risk management measures to protect investors' interests. The MAS takes Mr. Zhu Su and Mr. Davies's blatant disregard for regulatory requirements and misconduct seriously. The MAS will take action to remove senior management with such misconduct." (Source link)

9. FTX Cryptocurrency Liquidation Process: Initial Weekly Sale Limit of $50 Million, Increasing to $100 Million Weekly Thereafter

North Rock Digital shared its understanding of the FTX cryptocurrency liquidation plan on social media after the hearing: FTX can sell $50 million worth of altcoins this week and next week, after which the weekly limit will increase to $100 million; they can hedge unlimited BTC and ETH through arbitrage (buying put options and selling call options) at any time; then, after obtaining approvals from various groups, they can sell actual spot BTC and ETH.

FTX seems not to intend to wait until after 2028 to distribute cash to creditors; the plan is to finalize the entire distribution plan and all details before the second quarter of 2024. North Rock Digital indicated that from the tone of various parties, they seem to hope to complete this work efficiently and orderly, emphasizing the need to minimize downside risks. (Source link)

10. Cross-Border Payment Platform Fipto Completes €15 Million Seed Round Funding, Led by Serena Capital and Motier Ventures

Cross-border payment platform Fipto has completed a €15 million seed round funding, led by Serena Capital and Motier Ventures. Fipto plans to use this funding to further develop its platform, providing integrated payment and financial solutions that enable businesses to leverage the advantages of blockchain to exchange and send any currency. (Source link)

11. CoinEx: Preliminary Cause of Incident Identified as Hot Wallet Private Key Leak, Rebuilding Wallet System

Crypto exchange CoinEx announced the latest developments regarding the hacking incident, stating that the preliminary cause of the incident was identified as a hot wallet private key leak, primarily involving crypto assets such as BTC, ETH, XRP, BCH, and SOL, with the specific value still being liquidated. The assets in CoinEx's cold wallet were not affected by this incident. CoinEx promised that its user asset security fund would cover the economic losses caused by this incident.

Currently, CoinEx is working on rebuilding its wallet system, including 211 chains and 737 tokens, and during this period, users are advised not to deposit to old addresses to avoid potential asset losses. (Source link)

"What Exciting Articles Are Worth Reading in the Last 24 Hours"

1. "Dialogue with Polygon Co-Founder: Deep Dive into Polygon 2.0, Understanding L2 Wars and Business Models"

In this episode of Empire, Polygon co-founder Sandeep Nailwal elaborated on the bold approach of Polygon 2.0 to achieve infinite scalability in blockchain networks. The conversation explored various components of Polygon 2.0, including innovations in zk EVM and the pillars of governance. Nailwal also outlined the perspectives in the Polygon paper, viewing 2.0 not only as a scalability solution but also as a foundational "internet value layer."

2. "Friend.Tech In-Depth Report: Outbreak Journey, Airdrop Expectations, Death Spiral, and Top Ten Risks"

Folius Ventures released an analysis report on Friend Tech, indicating that it currently refuses to engage with all VCs except Paradigm, with mining being the only way to gain exposure to the company, and the final FDV is expected to be around $1.5 billion; a continuous payment mechanism must be introduced, or a bidirectional death spiral will form; at least two more DAU peak impacts are expected, provided execution is good enough, and strong airdrop expectations will keep the heat up until January-February 2024; KEY faces a significant risk of being defined as a security and may ultimately not issue tokens.

3. "Comprehensive Analysis of Bitcoin ETF: Definitions, Progress, Controversies, and Potential Impacts"

Among mainstream financial professionals, Bitcoin exchange-traded funds (ETFs) are seen as the holy grail that could truly propel cryptocurrencies into the spotlight alongside stocks and bonds. But what exactly are Bitcoin ETFs, why are they so important, and what are the obstacles? This comprehensive guide aims to unveil all the information you need to know about this coveted prize in the race for the mass adoption of cryptocurrencies.