Daily Report | Trump will not hold the next presidential debate with Harris; The UK High Court rules that stablecoin USDT is property; Tether's profits last year exceeded BlackRock
September 13 News OverviewOrganizer: Luan Peng, ChainCatcher
Important News:
- Shanghai Financial Regulatory Bureau: Supports institutions in using AI, blockchain, and other technologies to provide more customized financial products for clients
- ARK Invest Report: As of the end of August, the cost for U.S. spot Bitcoin ETF investors has exceeded the Bitcoin price
- Kraken claims digital assets are not securities, denying SEC's allegations against it
- U.S. Treasury sanctions Cambodian tycoon Li Yongfa, accusing him of involvement in cryptocurrency scams and human trafficking
- UK High Court rules that stablecoin USDT is property
- People's Bank of China Shanghai Headquarters: Exploring new models for cross-border remittance and tax payment based on blockchain technology
- Trump's cryptocurrency project WLFI will go live on September 17 at 8:00 AM, Trump will give a speech
- Pharmaceutical company CelaCare sues Circle for refund after CEO mistakenly destroys $1 million USDC
"What important events have occurred in the past 24 hours"
The Shanghai Municipal Government's Information Office held a press conference to introduce the recently issued "Action Plan for Promoting the Construction of a Global Financial Technology Center in Shanghai" (hereinafter referred to as the "Action Plan"). He Weili, Deputy Director of the Technology Supervision Department of the Shanghai Financial Regulatory Bureau, stated that the bureau will focus on "three promotions" around the main content. Promote the innovative application of financial technology in the banking and insurance industries. In the future, the Shanghai Financial Regulatory Bureau will guide banks and insurance institutions in the region to strengthen the innovative application of financial technology, supporting institutions in using technologies such as artificial intelligence, blockchain, the Internet of Things, and big data to promote product and service innovation, providing clients with more personalized, diverse, and customized financial products. (Jin Shi)
ARK Invest, led by Cathie Wood, released a monthly report stating, "During August, the price of Bitcoin fell by 8.7%, dropping to $58,972. By the end of August, Bitcoin failed to break through its 200-day moving average and the cost basis for short-term holders, which were $63,693 and $63,245, respectively. Currently, the most important price support levels for Bitcoin are $52,000 and $46,000.
The decline in Bitcoin's price in 2024 aligns with adjustments in historical bull market trends.
As of the end of August, the estimated cost basis for U.S. spot Bitcoin ETF investors has exceeded the price of Bitcoin, indicating that ETF holders are facing average losses.
Kraken claims digital assets are not securities, denying SEC's allegations against it
Kraken responded to the U.S. Securities and Exchange Commission (SEC) allegations that it violated federal securities laws. The SEC claims that various digital assets offered by Kraken are unregistered securities. In its legal response, Kraken firmly denied these allegations, insisting that the assets in question do not meet the legal definition of securities under U.S. law, including Cardano (ADA), Algorand (ALGO), Cosmos (ATOM), and other digital assets traded on Kraken. The exchange argued that the SEC failed to prove that the digital assets in question met the standards outlined in the Howey Test, and therefore are not under the SEC's jurisdiction.
The U.S. Treasury has imposed sanctions on Cambodian tycoon Li Yongfa and his companies, accusing them of involvement in human trafficking and forced labor related to cryptocurrency scams. The sanctions freeze Li Yongfa's and his companies' assets in the U.S. and prohibit U.S. citizens from engaging in related transactions.
Li Yongfa and his companies are accused of luring victims to scam centers and forcing workers to participate in cryptocurrency fraud. The Treasury emphasized that this move aims to hold accountable those involved in human rights abuses and fraud. These sanctions are based on Executive Order 13818, which expands the Global Magnitsky Human Rights Accountability Act.
UK High Court rules that stablecoin USDT is property
According to Cointelegraph, the UK High Court ruled on September 12 that the stablecoin USDT is recognized as property. This is the first ruling in UK law regarding the treatment and status of cryptocurrencies after a comprehensive trial. The victim's stolen cryptocurrency (including USDT) was transferred through various cryptocurrency exchanges after going through a cryptocurrency mixer.
Deputy Judge Richard Farnhill stated that USDT has property rights under English law, can be traced, and is considered trust property. This ruling came after a bill proposed by the UK government that explicitly includes NFTs, cryptocurrencies, and carbon credits within the scope of property law.
The judge pointed out that a ruling from the same court in 2019 (not made during the trial) indicated that cryptocurrencies are considered property, which is "strong evidence." This is also consistent with the stance of the Law Commission for England and Wales in its 2023 report on digital assets, which labeled cryptocurrencies as property.
To further optimize the business environment and enhance the convenience of cross-border tax payments, since February 2024, the People's Bank of China Shanghai Headquarters, in collaboration with the Shanghai Municipal Taxation Bureau, has actively explored new models for cross-border remittance and tax payment, using blockchain technology to achieve "one-stop" online processing of cross-border electronic tax payment services such as overseas remittances, tax payments, and fund deposits, effectively resolving the three major pain points of non-resident enterprises in cross-border remittance and tax payment: "multiple runs," "high costs," and "difficult currency exchange."
As of the end of August 2024, the new model for cross-border remittance and tax payment in Shanghai has completed tax payments totaling 1.486 billion yuan, with pilot banks including ICBC, ABC, and BOC in the city, involving currencies such as RMB, USD, EUR, and JPY, and tax types including corporate income tax and stamp duty. (Jin Shi)
The Trump family project World Liberty Financial (WLFI) announced on the X platform that it will go live on September 17 at 8:00 AM Beijing time, during which Trump will deliver a speech.
Pharmaceutical company CelaCare sues Circle for refund after CEO mistakenly destroys $1 million USDC
Pharmaceutical company CelaCare is suing stablecoin issuer Circle, seeking a refund for the $1 million USDC that its CEO Kenneth Yates mistakenly sent to the wrong address and "destroyed."
The lawsuit states that on July 3, 2024, while sending USDC from a Coinbase account, Yates mistakenly entered the letter B as the number "8" in the address, causing the funds to enter an unowned and inaccessible wallet address. CelaCare requests the court to confirm that the USDC has been destroyed and demands Circle to compensate $1 million.
However, Circle rejected the refund request on September 6.
Digital asset management company ParaFi Capital to tokenize $1.2 billion fund
Digital asset management company ParaFi Capital announced that it will tokenize part of its $1.2 billion portfolio on the Avalanche blockchain through the Securitize platform. This is the company's first attempt at fund tokenization, offering a portion of equity in its latest venture capital fund. Through tokenization, investors can buy and sell these tokenized shares on digital platforms.
ParaFi Capital founder Ben Forman stated that this move is not only an investment in technology but also a practical application. Tokenization helps lower the investment threshold, allowing more people to participate in opportunities that were previously limited to large institutions or wealthy investors.
Tether's profits last year exceeded BlackRock
According to Coinpost, Tether, the issuer of the stablecoin USDT, revealed in its Q2 2024 financial report that the company's net profit reached a record high of $5.2 billion in the first half of this year. In Q2 2024 (April-June), the company achieved a net profit of $1.3 billion, setting a new historical record.
Tether's revenue in 2023 was $6.2 billion, surpassing the $5.5 billion revenue of major global investment firm BlackRock in the same year. BlackRock has 20,000 employees, while Tether has 100 employees, indicating Tether's extremely high profitability per employee.
According to Bitcoin.com, the Brazilian Federal Police recently launched "Operation Nifheim," successfully dismantling three criminal organizations that used cryptocurrency for money laundering. The operation involved Casias do Sul, São Paulo, Fortaleza, and Brasília, issuing 8 arrest warrants and 19 search and seizure warrants.
Since 2021, the involved gangs have laundered over $9.7 billion through cryptocurrency, with funds primarily sourced from drug trafficking and smuggling. The Brazilian Federal Court has frozen $1.58 billion in assets and seized multiple vehicles and real estate. Police revealed that these gangs used shell companies to conceal the source of funds, which were then transferred to the U.S., UAE, Hong Kong, and China.
Trump: Will not hold the next presidential debate with Harris
According to Caixin, U.S. Republican presidential candidate and former President Trump stated after his first presidential debate with current Vice President and Democratic presidential candidate Harris that he will not hold the next presidential debate with her.
Trump wrote on his social media platform "Truth Social": "There will be no third debate!"
"What are the exciting articles worth reading in the past 24 hours"
Today, we are fortunate to interview Ken Zhou, the founder of Node-X, to discuss how Node-X provides efficient node management and computing power optimization services for Web3 and blockchain through its one-click node deployment, AI-driven Hub system, and upcoming C2C computing power trading market, aiming to achieve computing power equality and lower participation thresholds.
Opinion: Destroy the "four-year cycle" theory, only then can cryptocurrency truly bridge the gap
Recently, I shared some thoughts on cryptotwitter (CT). To my surprise, these views sparked intense discussions within the community. I'm not sure if my opinions exceeded the understanding of critics or if I touched on the vested interests of CT.
This is not to say that people won't occasionally find useful investment advice on CT. CT is a novel form of information frenzy, an endless soap opera with absurd plots and villains. It is a platform for entertainment.
This experience led me to reflect on the current state of cryptocurrency. At some point, I suddenly realized: cryptocurrency has already become mainstream. It may not be mainstream adoption, but it is mainstream entertainment. How many people around you have not heard of cryptocurrency? Today, cryptocurrency has become a hot topic in the U.S. presidential election; how can it not be mainstream?
People love to be "early birds," deluding themselves into thinking that acting early will lead to profits. Participation is a prerequisite for success, and CT is a false prophet that perpetuates this view. This is Alpha, that is Alpha… CT is a reality show that sells tokens as entertainment.
CT is neither good nor bad for the industry; it is merely a manifestation of the mainstreaming of cryptocurrency. From humble anarcho-capitalism to peak idealistic culture, cryptocurrency is now experiencing a TikTok-like transformation, packaged and presented to consumers in ways that Satoshi Nakamoto could not have imagined.
Counting the Seven Deadly Sins of Ethereum, who can play the "rescue anthem" for it?
Despite the recent poor performance of Ethereum's market price, Ethereum's "soul leader" Vitalik has already entered the "Next Level."
On September 11, while discussing the value of ENS with former core contributor Brantly.eth, Vitalik once again displayed a "rebellious side"—he first crafted a rather sarcastic evaluative tweet, stating, "Look, Mr. Buterin. Here are those who think only PoW is decentralized. Here are those who do not appreciate your support for synthetic wombs. Here are those who do not like vaccines. What happens when they all try to cancel you together?" (Note: The accompanying image is a highly ironic diagnostic scene from The Simpsons S 11-EP 12.) After X platform users left comments like "What A D*ck," "Brave Little V" unceremoniously responded: "No, it's a d*ck," along with an image of a big yellow duck holding a sign saying "PoS is more decentralized than PoW."
It must be said that after the "10th anniversary" and the completion of milestone events such as the Ethereum spot ETF, Ethereum, as a blockchain network ecosystem with a market value of nearly $284 billion, inevitably begins to face its own "adolescent crisis"—Can the Ethereum ecosystem continue to thrive? What problems currently exist? How can existing problems be solved?
This article approaches the topic from the perspective of the "seven deadly sins," discussing the direction Ethereum is heading, for readers' reference. (Note: This is the first article in this series.)
The battle escalates, revealing the current state of the Ethereum L2 war
If we only value L1 tokens based on MEV and fees, they will ultimately all go to zero.
Points, points, points.
Since the launch of the points system by Friend.tech last August, rewarding early users of the protocol with off-chain points has become an industry standard. It can be said to have triggered the current wave of airdrops, with many projects issuing tokens over the past year. As with many trends in the crypto space, everyone rushed into this "gold rush," ultimately leading to excessive bubble formation in the industry and gradually losing its appeal.
Has the airdrop craze ended, or are we just taking a brief pause?
