Daily Report | pump.fun generated $100 million in 217 days; Upbit will launch UXLINK; The Financial Supervisory Service of Korea will inspect 6 virtual asset service providers
September 3 News Overview整理：Fairy，ChainCatcher
Important News:
- Data: Ethereum ICO participant addresses transferred over 400 ETH to OKX, worth $1.16 million
- Upbit will launch UXLINK spot trading pair
- pump.fun generated $100 million in just 217 days, becoming the "fastest-growing Dapp by revenue"
- SEC commissioner calls for a dedicated S-1 registration for digital asset securities
- People's Court newspaper suggests the prompt establishment of comprehensive judicial disposal guidelines for virtual currencies
- Korea's Financial Supervisory Service to inspect Upbit and five other virtual asset service providers
"What important events happened in the past 24 hours"
Upbit will launch UXLINK spot trading pair
According to the official announcement, Upbit will launch the UXLINK spot trading pair, supporting KRW, Bitcoin, and USDT markets, with trading starting at 22:00 (local time) on September 3.
SEC commissioner calls for a dedicated S-1 registration for digital asset securities
According to The Block, SEC commissioner Mark T Uyeda stated at the Korea Blockchain Week 2024 event that the SEC needs to create a dedicated S-1 registration for digital asset securities.
Uyeda pointed out that the SEC has the flexibility to customize registration requirements for specific financial products, and this approach should extend to the cryptocurrency and digital asset securities space. He emphasized that the SEC should not create a "catch-22" situation by requiring digital asset securities issuers to provide irrelevant or impossible disclosure information. Uyeda also stated that the SEC should clarify which digital assets fall under the category of securities and consider practices from other jurisdictions in future rule-making. Nevertheless, digital assets are currently not included in SEC Chairman Gary Gensler's regulatory agenda.
People's Court newspaper suggests the prompt establishment of comprehensive judicial disposal guidelines for virtual currencies
The People's Court newspaper published an article titled "The Judicial Disposal of Virtual Currencies Must Be Standardized," stating that the standardization of judicial disposal of virtual currencies is crucial for maintaining financial stability and promoting healthy market development. According to SAFEIS Security Research Institute statistics, the total number of cases involving virtual currency crimes in China in 2023 was 428, a decrease of 88.9% compared to 2022, but the amount involved surged to 430.719 billion yuan, approximately 12.36 times that of 2022.
The article emphasized that the current disposal of virtual currencies faces multiple challenges, including ownership identification, value assessment, and legal monetization. To address these issues, it is recommended to promptly establish comprehensive judicial disposal guidelines for virtual currencies, clarifying their legal status, compliance requirements, asset disposal procedures, and legal responsibilities.
At the same time, the article calls for strengthening international cooperation to jointly address the global challenges posed by virtual currencies and to lay a legal foundation for the development of the digital economy and digital finance.
Korea's Financial Supervisory Service to inspect Upbit and five other virtual asset service providers
The Financial Supervisory Service (FSS) of Korea announced that it will conduct its first inspection of virtual asset service providers, marking the first action since the implementation of the "Virtual Asset User Protection Act" in July. The FSS plans to inspect six institutions, including two KRW market exchanges, three token market exchanges, and one wallet/custody service provider. Notably, two major KRW market exchanges, including Upbit, Bithumb, Coinone, Gopax, and Korbit, will be selected for inspection.
The inspection will focus on compliance with regulations, user protection systems, internal control mechanisms, and monitoring of unfair trading. The FSS will review aspects such as user asset management, cold wallet usage, insurance and reserve status, transaction record maintenance, and abnormal transaction monitoring systems. For violations, the FSS stated that it would impose strict sanctions to maintain market order while supporting operators in strengthening self-regulatory oversight.
pump.fun generated $100 million in just 217 days, becoming the "fastest-growing Dapp by revenue"
Ryan Watkins, co-founder of Syncracy Capital, stated on the X platform that pump.fun has become the fastest-growing application in the history of the crypto economy, achieving $100 million in revenue in just 217 days. Data shows that the second-ranked ENA took 251 days to reach this milestone, while traditional DeFi projects like Curve (CRV) and Sushi took 350 days and 546 days, respectively. Watkins pointed out that, whether people like it or not, pump.fun has sent a strong signal to developers to build on Solana and has also become a "Trojan horse" for driving consumer adoption of blockchain. Notably, pump.fun is also the fastest application to reach $50 million in revenue.
Van Loon plaintiff sues the U.S. Treasury over Tornado Cash sanctions
According to reports, plaintiff Van Loon appealed on September 2 in the Fifth Circuit Court, suing the U.S. Treasury for placing Tornado Cash on the Specially Designated Nationals (SDN) list. The plaintiff argues that the Treasury imposed sanctions on this open-source project without clear guidelines, which could threaten programmers' First Amendment rights. Van Loon and his team sued the Treasury in September 2023, accusing it of overstepping its authority.
Tornado Cash was sanctioned for allegedly being involved in money laundering activities, with the government claiming that the platform has been linked to over $7 billion in illegal funds since 2019. The Electronic Frontier Foundation (EFF) supports this lawsuit, expressing concerns that government sanctions could have a chilling effect on open-source software development. A lower court previously dismissed the lawsuit, stating that the sanctions only apply to transactions involving Tornado Cash smart contracts and do not affect the development and discussion of open-source code. However, the EFF and other digital rights advocates remain vigilant about the broader implications of the case, emphasizing the importance of protecting programmers' rights.
Data: Ethereum ICO participant addresses transferred over 400 ETH to OKX, worth $1.16 million
According to on-chain analyst @ai_9684xtpa, addresses that participated in the Ethereum ICO in 2015 transferred 462 ETH to OKX eight hours ago, worth $1.16 million.
Since July 8, this whale has sold a total of 48,963 ETH, with a total value of $155 million, at an average selling price of $3,169; currently, he still holds 697,000 ETH, equivalent to over $1.7 billion.
Data: DWF Labs received 10 million FET from Fetch.ai Foundation one hour ago
According to Lookonchain monitoring, DWF Labs received 10 million FET from the Fetch.ai Foundation one hour ago, worth approximately $11.8 million.
"What are some noteworthy articles to read in the past 24 hours"
Counting Sony's 8-year Web3 layout, why not to overestimate Layer2 "Soneium"?
Recently, Sony Group announced that it will launch Layer2 "Soneium" on Ethereum, attempting to drive large-scale adoption of Web3, bringing a lot of imagination to Web3.
This Japanese giant, with a market value of over $100 billion and nearly 80 years of history, has businesses covering consumer electronics, gaming, film, music, finance, and more, establishing subsidiaries or factories in over 140 countries and regions.
According to Sony's 2023 financial report, its net profit for the year 2023 was 970.6 billion yen (approximately $6.619 billion).
Whether in terms of bringing a large number of Web2 users to Web3 or potential funding investment, it seems to be a positive signal for Web3.
In fact, this is not Sony's first foray into Web3. Since announcing its investment in blockchain research in 2016, Sony has been involved in various Web3 segments, including hardware wallets, metaverse/blockchain games, NFTs, stablecoins, and crypto exchanges.
However, facing the long innovation cycle of the Web3 field, Sony may also struggle to escape the shackles of "big company syndrome." On one hand, although its reach is broad, the eagerness for quick success can lead to projects being abandoned halfway; on the other hand, it often selectively applies technologies like blockchain, where marketing hype may outweigh actual implementation.
For the Web3 industry, in this wave of innovation-driven change, perhaps there should not be overly high expectations for the participation of traditional giants.
The Dilemma and Path of Web3 Games
With the phenomenal success of "Black Myth: Wukong," there has been a resurgence of voices criticizing Web3 games. In an already very sluggish and self-doubting market sentiment, this adds another layer of debuff.
Is it that Web3 people do not love games? Indeed, during the early bubble phase of the market, a strong speculative atmosphere was inevitable, but many builders still entered this industry with the intention of creating a good game, a game truly belonging to players. For Web3 to achieve genuine mass adoption, games are an unavoidable path that can deeply penetrate the market.
But the reality is harsh. When people want to count the leading Web3 games, they find that the number of quality games is extremely limited, with most games being mediocre, failing to provide a good user experience, and far from meeting the expectations of mass adoption. Many Web2 game teams with successful practical experience have stumbled in Web3, and the main reasons I currently understand are twofold:
Compared to traditional games, Web3 games struggle to provide continuous content updates.
Due to different audiences, Web3 games need to consider more game economics issues beyond gameplay compared to traditional games.
Ethereum Scaling Economic Account: Is it Worth Giving Up Major Sorting Revenue to L2?
This is a good analysis of data availability (DA) and is also the most reasonable bullish speculation on DA. However, I believe DA cannot approach 50% of L2 fees. Because from an economic structure perspective, the value accumulation of sorting always far exceeds DA.
The core business of blockchain is selling block space. Since block space is difficult to interchange between different chains, they almost form a monopoly.
However, not all monopolies can achieve excess profits. The key lies in whether price discrimination can be applied to consumers.
If price discrimination cannot be applied, monopoly profits are almost indistinguishable from ordinary goods. Think about how airlines differentiate between price-insensitive business travelers and budget-conscious regular consumers, or how the same SUV is sold at vastly different prices under the Volkswagen, Audi, and Lamborghini brands.
Priority fees are an extremely effective price discrimination mechanism in blockchain. The fees paid by the highest priority transactions far exceed the median.
