[Link to FM] Coinbase faces SEC investigation due to cryptocurrency listing issues, Teddy Doge appears Rugpull

【Data Intelligence】

Total cryptocurrency market capitalization drops to $1 trillion

Prices for bitcoin, ethereum and other major cryptocurrencies fell on Monday as the Federal Reserve is expected to raise its benchmark interest rate by 0.75%, the biggest increase in nearly 30 years. At the time of writing, Bitcoin fell to a weekly low of around $21,935, down 2.8% over the past 24 hours, while Ethereum was down nearly 5% on the day to a current value of $1,528. The total market capitalization of all cryptocurrencies has fallen to $1 trillion from $1.08 trillion last Wednesday, according to data provided by CoinMarketCap. The latest price action comes ahead of a two-day Federal Reserve meeting that begins on Tuesday, when the central bank is expected to hike rates by another 75 basis points. Fed officials have already raised the benchmark short-term borrowing rate by 1.5 percent this year, including a 75 basis point hike in June, the biggest increase in nearly 30 years.

Coinbase fell nearly 6% in the second quarter, and the number of venture capital transactions fell 34% month-on-month

According to the market, Coinbase (COIN.O) fell nearly 6%, and the number of venture capital transactions in the company's second quarter fell by 34% month-on-month.

【 Regulatory News 】

US CFTC to Boost Cryptocurrency Work with New Office of Technology Innovation

Rostin Behnam, head of the U.S. CFTC, said the derivatives watchdog is upgrading its LabCFTC to an office of technology innovation as cryptocurrency regulation moves beyond the sandbox stage. The agency’s LabCFTC, a long-running financial technology team, will be transformed into the new office, which will be headed by a director reporting to Behnam. The office will also be staffed with specialists, and existing CFTC staff will have the opportunity to rotate, for cryptocurrency experience. As a research project, we have moved beyond the stage of digital assets, regulators must be flexible, and new challenges may require us to dig deeper, looking differently at how our organic regulations can enable us to grow with the markets we regulate.

US delays consideration of bipartisan bill to regulate stablecoins until September

Lawmakers in the U.S. House of Representatives will delay consideration of a bipartisan bill to regulate stablecoins until after Congress recesses in August, according to people familiar with the matter. The delay was likely because lawmakers were unable to complete work on the draft bill ahead of a committee vote tentatively scheduled for Wednesday. That could delay consideration of the package until September, when Congress is expected to come out of its late summer recess. Biden administration officials and a bipartisan group of lawmakers have expressed concern that current laws do not provide comprehensive standards for new assets and have warned of the potential risks that stablecoins pose to financial stability. The bill marks an important first step in the United States to impose stricter rules on an underregulated industry.

【Industry Trends】

Rugpull appeared on Teddy Doge, and the project party’s volume exceeded US$4.55 million

According to news on July 26, Teddy Doge, a blockchain project based on the BNB chain, was questioned about Rug pull. The wallet of the project party sold native TEDDY tokens worth more than $4.5 million and exchanged them for 10,000 BNB (approximately $2.55 million) and 2 million BUSD (2 million U.S. dollars), resulting in the price of its token TEDDY approaching zero. PeckShield said on social media today that the official wallet transferred 30 billion TEDDY tokens to PanckSwap and exchanged them for 10,000 BNB and 2 million BUSD, and then slowly transferred them to an anonymous wallet in Binance (0x902…) , Pie Dun called these behaviors "soft Rug pulls". Addresses associated with the project exchanged TEDDY for wrapped BNB, which in turn exchanged for more than 10,000 BNB and 2 million BUSD, PeckShield added. The converted funds are then sent to the cryptocurrency exchange Binance.

Lido DAO votes against $14.5 million LDO token sale to Dragonfly Capital

The Lido Finance community voted against a proposed sale of 10 million LDO tokens to venture capital firm Dragonfly Capital for $14.5 million, according to a vote that concluded on Monday. Monday’s vote ended with nearly 600 DAO members, representing a total of 43 million Lido DAO (LDO) tokens, voting against the proposal. This figure accounts for 66% of all votes cast. Meanwhile, only two addresses, totaling 21 million LDO tokens, voted for the token sale. The token sale is part of Lido's financial diversification proposal. The DAO proposal calls for the sale of 20 million LDO tokens, half of which will be allocated to Dragonfly. The latest vote was only to determine whether to proceed with the sale of tokens to Dragonfly.

Curve Finance Applies to Optimism for a 1 Million OP Token Grant

According to a submitted post on the Optimism forum, Curve Finance has submitted a governance proposal for Optimism to award 1 million OP tokens. Curve’s total value locked on Optimism is currently $17.4 million, with an average weekly volume of $3.4 million in Optimism’s Curve pool. According to the grant proposal, 1 million OP tokens, currently worth $850,000, will be distributed on Curve within 20 weeks. This means that if passed, 50,000 OP tokens will be distributed to the Curve pool every week. These tokens will serve as incentives for the Liquidity Providers (LPs) of the Optimism Measuring Curve Pool. Metering pools on Curve receive token emissions on a weekly basis. These pools are determined by weekly on-chain DAO voting conducted on Curve. Currently there are three measurement curve pools on Optimism: sUSD, sETH and sBTC. According to the announcement, the three pools will be the recipients of 50,000 OP token emissions per week, but this number is expected to increase over time.

Optimism launches Ethereum-native conditional trading system Drippie

On July 25th, OP Labs stated that Optimism launched Drippie, a trust-minimized Ethereum native conditional trading system, which allows transactions to be executed under specific conditions. Drippie allows for easy programming (in Solidity) of sets of checks/actions that Optimis calls "drips" to perform most of the on-chain operations that Optimis requires day-to-day. Optimism uses drips to maintain balances in various accounts, periodically transfer funds between L1 and L2, and even automatically pay for Drippie's own transactions.

Zipmex seeks to raise at least $50 million to repair its balance sheet

According to news on July 25, the encryption exchange Zipmex stated that it is seeking to raise at least 50 million US dollars to repair its balance sheet. Zipmex is in discussions to sell all or some of its assets, the people said. Funding targets roughly represent Zipmex’s total exposure to Babel and Celsius, which are $48 million and $5 million, respectively. Earlier news, Singapore-based cryptocurrency exchange Zipmex said on Thursday that it had lent funds to cryptocurrency lenders Babel Finance and Celsius. Zipmex’s current exposure to Babel is $48 million, compared to $5 million for Celsius, which filed for bankruptcy last week.

【Elite Viewpoint】

V God: Merge, Surge, Verge, Purge and Splurge will happen at the same time

On July 26th, Vitalik replied on his personal social media platform about Argent’s review of the five stages of the Ethereum roadmap of the ETHCC conference, saying that the five stages of Merge, Surge, Verge, Purge, and Splurge are not stages, they all happen at the same time ongoing. As previously reported, on July 21, V God talked about the future roadmap of Ethereum at the EthCC conference in Paris, including Merge and Surge. At the end of this roadmap, ethereum will be a more scalable system, and by the end, ethereum will be able to process 100,000 transactions per second, he said. Pursuing these goals of decentralization is difficult, though, due to the complexity of the network and the rate of change.

Goldman Sachs: Recent Crypto Price Drop and Shift to Proof-of-Stake

According to news on July 25, Goldman Sachs said: This slowdown further reflects the impact of a strong consumption base effect in the second half of 2021. The recent decline in cryptocurrency prices and the shift to proof of equity have reduced mining electricity consumption.

【What to watch today】

Coinbase faces SEC investigation over cryptocurrency listing issues

According to news on July 26, according to three people familiar with the matter, the cryptocurrency exchange Coinbase is facing a US investigation into whether the company improperly allows Americans to trade digital assets that should be registered as securities. Since Coinbase expanded the number of tokens it offers to trade, SEC scrutiny of the platform has increased, people familiar with the matter said.

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