Daily Report ｜Do Kwon denies that Jump Trading restored UST to $1; former League of Legends mobile game producer joins Azuki
Alliance DAO announced 8 Web3 accelerator projects including Thunder; Gemini, Genesis, and DCG are accused of fabricating financial conditions.整理：flowie, ChainCatcher
What important events have occurred in the past 24 hours?
1. Gemini, Genesis, and DCG accused of fabricating financial conditions to cover up a $1 billion hole
According to ChainCatcher, New York Attorney General Letitia James announced on Thursday that her office has sued Gemini Trust, Genesis Global, and Digital Currency Group for defrauding approximately 230,000 investors, amounting to over $1 billion.
The civil lawsuit also accuses former Genesis CEO Soichiro Moro and DCG founder and CEO Barry Silbert of attempting to conceal the true financial condition of Genesis, its lending division, from the Gemini trading platform, its customers, and the public. (Source link)
2. FTX used over $1 billion of customer deposits to repurchase shares from Binance
According to ChainCatcher, CoinDesk reported that the U.S. Department of Justice (DOJ) has hired University of Notre Dame accounting professor Peter Easton to track billions of dollars between Alameda and FTX. The professor testified during the SBF trial hearing that FTX used customer funds in 2022 to repurchase all shares held by the competitor exchange Binance, with over $1 billion coming from FTX exchange customer funds. The professor testified that user deposits were also reinvested into businesses and real estate, used for political donations, and donated to charities.
Previously, in 2019, Binance invested an undisclosed amount in FTX as part of a strategic partnership between the two companies. Binance CEO Changpeng Zhao stated in a 2022 article that as part of the buyback, the company received over $2.1 billion in BUSD and FTX's FTT tokens. (Source link)
3. Do Kwon denies that market maker Jump Trading restored UST to $1 in 2021
According to ChainCatcher, CoinDesk reported that documents submitted to a New York court on Wednesday indicate that the legal case against Do Kwon and his company Terraform Labs may hinge on the role of market maker Jump Trading. Jump Trading appears to have made a profit of $1.28 billion during the collapse of its ecosystem. Do Kwon told investors that the token maintained its $1 value due to its automated algorithm, but SEC experts stated that this was actually due to Jump intervening in the market at Terraform's request.
According to a letter from Do Kwon's team to the Singapore Supreme Court, "The defendants deny these allegations and claim that Jump's trading in UST was not the reason for the peg restoration in May 2021. The decoupling in May 2022 was the result of third parties deliberately shorting UST, leading to its price decoupling, and involved direct public intervention to combat short-selling." Do Kwon's defense team also argued that the SEC lacks jurisdiction because the assets involved are currencies, not securities. (Source link)
4. Parity analyst: Polkadot 2.0 expected to launch on Rococo testnet by the end of the year, mainnet in Q2 next year
According to ChainCatcher, PolkaWorld reported that Parity research analyst Joe Petrowski stated in the Polkadot governance forum that Agile Coretime (Polkadot 2.0) is expected to launch on the Rococo testnet by the end of the year, with the Kusama canary network launching in the first quarter of next year and the Polkadot mainnet in the second quarter. This means that the project will soon have direct access to Polkadot's relay chain services without the need to rent parachain slots for a long time. (Source link)
5. Former League of Legends mobile game producer Jonathan Chao joins Azuki, responsible for game development
According to ChainCatcher, former League of Legends mobile game producer Jonathan Chao has joined the development team of Azuki, Chiru Labs, where he will be responsible for building interactive games for the Azuki metaverse.
According to public records, Jonathan Chao has worked at major gaming companies such as Ubisoft, Riot Games, and Tencent's TiMi Studios, where he served as the balance director responsible for managing character balance in League of Legends mobile. On September 22, Jonathan Chao revealed on the X platform that he had left TiMi, with his next move temporarily undisclosed, but this week he added a tag for Chiru Labs to his personal profile, and Azuki founder ZAGABOND has also followed his X account. (Source link)
6. Alliance DAO announces 8 Web3 accelerator projects, including Thunder, Tailwind, Tazz, etc.
According to ChainCatcher, Techcrunch reported that Alliance DAO announced 8 projects selected for the Web3 accelerator and builder community (ALL11), including fiat on-ramp and off-ramp Kravata, on-chain trading terminal Thunder, decentralized broadcasting network Blockcast, mobile app game Sleepagotchi, Cosmos ecosystem wallet Tailwind, decentralized lending protocol Tazz, Web3 full-stack security platform Upshield, and EVM-compatible Layer1 Inco Network.
It is reported that this accelerator program received a total of 1,083 applications, a decrease of 36% from the previous batch, ALL10. Only 6 teams passed the program and are about to graduate, and two startups from ALL10 also participated in the showcase.
ChainCatcher previously reported on May 18 that Alliance DAO announced 16 Web3 accelerator projects in the ALL10 accelerator program, including Bitcoin wallet Xverse, ZK rollups as a service Snapchain, carbon credit proof of labor protocol Glow, and ZK-based AI project Modulus Labs. (Source link)
7. Web3 growth analytics platform Superdao to gradually cease operations, remaining funds to be returned to investors
According to ChainCatcher, Web3 growth and DAO creation platform Superdao announced it will soon shut down. Superdao stated that in 2022 it began building growth and analytics tools for already launched and operational Web3 projects, and it clearly sees that the crypto industry itself has become much smaller than its original aspirations ("the new internet"), making it unlikely that providing specialized tools for crypto companies will yield venture capital-scale returns.
In light of this perspective, Superdao has decided to return a significant amount of remaining funds to investors and gradually cease operations. Team members of Superdao have already founded at least 7 new companies. Some of the work results will be released as open-source projects.
Additionally, according to crypto data platform RootData, Superdao announced a $10.5 million seed round financing at a valuation of $160 million in January 2022, led by SignalFire, with participation from Alliance DAO, Shima Capital, Circle Ventures, and others. (Source link)
8. Elon Musk and Mark Cuban join forces to fight the SEC, demanding a complete overhaul of administrative procedures
According to ChainCatcher, Fox reporter Eleanor Terrett posted on social media that Elon Musk and Mark Cuban are joining forces against the SEC. In a joint non-party opinion statement submitted today, the two expressed support for a complete reform of the SEC's current administrative procedures. The current procedures allow the use of internal judges to preside over cases brought by the SEC itself and prohibit defendants from having the right to a jury trial. (Source link)
9. Invesco and Galaxy have submitted amendments to their spot Ethereum ETF application
According to ChainCatcher, Bloomberg ETF analyst James Seyffart tweeted that Invesco US and Galaxy Digital have applied for a spot Ethereum ETF, which is currently the fifth spot Ethereum ETF application. The application was first submitted on September 29, and this version is an amendment. Earlier reports mentioned that Galaxy Digital founder Mike Novogratz stated in an interview with CNBC that Galaxy is also working with Invesco to develop an application.
Previous reports indicated that Invesco submitted an application for a spot exchange-traded fund (ETF) for Ethereum, named Invesco Galaxy Ethereum ETF, with Galaxy Digital helping the trust fund buy and sell Ethereum. (Source link)
10. Tesla did not sell any Bitcoin in Q3, holding steady for five consecutive quarters
According to ChainCatcher, Tesla's latest quarterly report indicates that it did not buy or sell any Bitcoin in the third quarter of 2023, marking its fifth consecutive quarter without any trading activity. As of September 30, Tesla holds approximately 9,720 Bitcoins, valued at about $275.6 million. (Source link)
"What are some great articles worth reading in the past 24 hours?"
Electric Capital released updated October developer data analysis on October 19 on social media, indicating a decrease in the number of new developers exploring cryptocurrency in 2023.
The report reviewed over 164 million crypto submissions and concluded that as of October 1, 2023, the number of monthly active open-source developers was 19,300. Compared to the same period last year, the number of developers decreased by 27%. The recent departures from the crypto field were mainly new developers with less than 12 months of experience in the crypto space, accounting for about 25% of all code submissions. This finding is consistent with our research results from July 2023, and this trend continues.
A core challenge of democratizing online governance systems is how to incentivize long-term civic participation through rewards. Current Web3 governance systems often use transferable tokens, but these tokens have some obvious limitations (e.g., tendencies toward oligarchic domination, lower resistance to Sybil attacks, and incentives for holders to sell tokens and exit), which can be overcome by moving beyond token voting.
In this article, considerations for both reputation-based and token-based participation governance reward systems are outlined, discussing how to earn these rewards and what power they may translate into.
As a co-founder of Ethereum, Vitalik Buterin's every move is always under scrutiny, and the dynamics of his wallet addresses have become a "reference" for crypto investors to gauge industry trends, sometimes even triggering market reactions and affecting cryptocurrency prices.
On October 18, Vitalik Buterin clarified on social media, "If you see an article saying 'Vitalik sent *** ETH to some exchange,' then it is not me selling. I have made donations to certain charities, non-profit organizations, or other projects, and those sale transactions are made by the recipients of the donations because they need to pay some fees. However, I have not sold ETH for personal gain since 2018."
