Schlagwort: blockchain markets

• Cosmos co-founder Jae Kwon alleges North Korean agents helped develop Cosmos Hub’s LSM code.
• Kwon accuses Iqlusion’s Zaki Manian of hiding unresolved security risks.
• Kwon urges an immediate audit and stricter oversight for future implementations.

Cosmos co-founder Jae Kwon has raised serious concerns regarding the integrity of the Cosmos Hub’s liquid staking module (LSM), alleging that significant portions of its development involved individuals linked to North Korea.

In a statement released on Tuesday, Kwon accused Cosmos validator hosting firm Iqlusion and its leader, Zaki Manian, of “gross negligence” in allowing the module’s integration without adequate security vetting.

Cosmos Hub’s LSM developers North Korea agents

According to Kwon, development of the LSM began in August 2021 under the direction of Iqlusion and Manian, with contributions from developers Jun Kai and Sarawut Sanit.

Kwon alleges that these developers were later identified as North Korean agents and had provided a substantial portion of the module’s code.

Despite awareness of their connections since March 2023, Kwon claimed Manian withheld this information and failed to disclose several unresolved security risks associated with the LSM.

The controversy gained traction following Manian’s social media acknowledgement that he had known about the North Korean-linked developers for months. However, instead of taking preventive actions, such as conducting an additional audit or informing the Cosmos community, Kwon stated that Manian continued to assert the module was “ready to be deployed.”

Kwon accused Manian of a “profound breach of trust” for prioritizing deployment over community safety.

Critical vulnerabilities in the LSM

Security issues had already surfaced during a 2022 audit that revealed critical vulnerabilities in the LSM. These vulnerabilities were reportedly addressed by the same North Korean-linked developers.

Kwon suggested that despite Manian’s claim of rewriting the LSM code before deployment, significant risks persisted, especially since the module was not a standalone feature but a set of modifications built atop existing Cosmos staking modules.

This could potentially expose all staked ATOM tokens to security threats.

Kwon has called on the Cosmos governance community to initiate a comprehensive audit of the LSM immediately. Additionally, he urged the Interchain Foundation to impose stricter auditing standards and create an oversight framework to ensure the security of future Cosmos implementations.

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• Grayscale filed to convert its $524M Digital Large Cap Fund into an ETF.
• The fund includes BTC, ETH, Solana, XRP, and Avalanche among its holdings.
• This is Grayscale’s third ETF conversion after its Bitcoin and Ethereum funds.

Grayscale Investments has taken a significant step toward expanding its suite of cryptocurrency-based financial products by filing with the US Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF).

The GDLC, which currently trades over the counter, offers diversified exposure to several leading digital assets, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Ripple (XRP), and Avalanche (AVAX).

Grayscale’s move marks a continued effort by Grayscale to make cryptocurrency investments more accessible to traditional investors.

Grayscale’s Digital Large Cap Fund (GDLC)

According to the company’s report, the fund has $524 million in assets under management, with a significant concentration in Bitcoin and Ethereum, which make up nearly 75% and 19% of the holdings, respectively.

The remaining portion is allocated to Solana, XRP, and Avalanche, providing investors with a balanced exposure to established and emerging cryptocurrencies.

The third time Grayscale is converting a fund into an ETF

If approved, the ETF would represent Grayscale’s third conversion of a fund into an ETF, following its previous transitions of Bitcoin and Ethereum funds earlier this year.

A spokesperson from Grayscale emphasized that the filing reflects the firm’s commitment to enhancing the accessibility of the crypto asset class for mainstream investors.

The company aims to leverage the regulatory structure of an ETF to offer a more efficient and widely accepted investment vehicle, which could attract additional interest from institutional and retail investors.

In parallel with Grayscale’s move, the market has seen a surge in ETF filings for various crypto assets.

Recently, Bitwise submitted an application to the SEC seeking permission to list a spot XRP ETF and Canary Capital submitted applications to list XRP and Litecoin ETFs. However, these filings have yet to receive approval, underscoring the regulatory uncertainty surrounding crypto-based ETFs in the United States.

Grayscale’s initiative to convert GDLC into an ETF aligns with its broader strategy of offering products that bridge the gap between traditional finance and the evolving digital asset landscape.

Alongside its proposed conversion, the firm has also introduced funds that provide exposure to XRP and the AAVE governance token, reflecting its proactive approach to navigating the competitive and regulatory dynamics of the crypto market.

The post Grayscale wants to convert its mixed-crypto fund into an ETF appeared first on CoinJournal.

• John Deaton questioned Elizabeth Warren’s “anti-crypto” approach during the debate
• Warren said she wants the crypto industry to “follow the same rules as every bank and stockholder”
• Warren asked what favors crypto insiders were expecting for the financial help they were giving Deaton’s campaign

Senator Elizabeth Warren and crypto lawyer John Deaton took part in a heated debate over the crypto industry as they took up positions to claim the seat as the US senator from Massachusetts.

Speaking about when he first heard about Bitcoin, Deaton, a Republican, said that it could help “cut out predatory banks and middlemen…and helped unbanked people like my mom.” Questioning Warren’s perceived “anti-crypto” approach, Deaton added:

“With illegal immigration bankrupting the state, with inflation pricing regular people out of the economy […] why did this senator wake up one day and say with all that, I will build an anti-crypto army because crypto is so important to her?”

Warren answered that she was “fine” with people buying and selling crypto, but that she wants the industry to “follow the same rules as every bank, every stockholder, every credit union, and that [there are] some consumer protection laws and some laws to make sure that it’s not open for terrorists, drug traffickers, human traffickers, and Iran.”

Continuing to hit back at Deaton, Elizabeth Warren questioned who the people wanted representing them in Washington, adding:

“There’s one candidate standing here who gets 90% of the funding to keep their campaign going from one industry – the crypto industry. One candidate who has said quite openly that his personal worth is 80% tied up in crypto.”

What do they want in return?

While Deaton didn’t respond to Warren’s claims, he argued that her bill “bans crypto self-custody in America, yet she’s allowing the banks to custody Bitcoin, another example that Senator Warren’s policies do not help poor people, they do not help the working class.”

“She favors the accredited investor rule that excludes 85% of the American population.”

Warren, in turn, said she was confused by Deaton’s claim that he had upset the crypto industry and “crypto billionaires,” adding:

“I’m just trying to understand why crypto folks are so mad at him, so mad that they’re funding 90% of his campaign.”

She also questioned what crypto insiders were expecting in return for their financial help during his campaign.

Deaton, known for his involvement in the Ripple vs. SEC lawsuit, highlighted his role in helping XRP holders, adding that it was due to his actions that eventually led to Ripple co-founder Chris Larsen donating $1 million to Vice President Kamala Harris’s campaign.

In February, it was reported that Deaton would run for Senate against Warren. Following the news, Warren labelled Deaton’s bid a “threat” as she mobilized supporters to secure her seat.

The post Lawyer John Deaton questions Warren’s “anti-crypto” approach during debate for US Senate seat appeared first on CoinJournal.

• The TRON meme coin ecosystem is flourishing, with SunPump projects at the forefront.
• SunPump aims to expand its meme coin market foothold leveraging BitMart’s established presence in the crypto space.
• One of the most popular meme coin projects within the TRON ecosystem is SUNDOG.

In a significant move to enhance the meme coin market, SunPump has announced a partnership with BitMart, a leading global cryptocurrency exchange recognized for its large user base and competitive trading fees.

This collaboration aims to expand SunPump’s footprint in the rapidly growing meme coin sector, leveraging BitMart’s established presence in the crypto community.

We’re excited to announce our new ecosystem partnership with @BitMartExchange!👏

As a premier global digital asset trading platform, #BitMart is ranked among the top crypto exchanges on CoinGecko, boasting millions of users and competitive trading fees🔥

This partnership is set… pic.twitter.com/6Vhs3NOMfF

— SunPump (@sunpumpmeme) October 15, 2024

SunPump distinguishes itself as the first platform exclusively dedicated to the fair launch and trading of meme coins.

By providing creators with a simple and cost-effective way to introduce their projects, SunPump emphasizes security and user-friendliness. The integration with BitMart is set to increase visibility for SunPump’s offerings, particularly within the TRON ecosystem, which is celebrated for its speed and efficiency.

The meme coin ecosystem on TRON is flourishing, with SunPump projects at the forefront. This partnership will enable meme coin creators to reach a broader audience, enhancing their marketing and trading opportunities.

As interest in meme coins continues to surge, SunPump’s collaboration with BitMart aligns perfectly with its strategy to offer premium visibility for its projects.

Recent data highlights the success of SUNDOG, a prominent meme coin within the TRON ecosystem.

SUNDOG has amassed a remarkable 517,324 holders, nearly matching the population of Wyoming, which stands at approximately 584,057 residents. This impressive growth signifies the increasing popularity of meme coins among investors and crypto enthusiasts alike.

SunPump’s market presence is also on the rise, with its token currently priced at $0.0001247, reflecting a 22.42% increase over the past 24 hours. The market capitalization has reached $118,470, also seeing a 22.42% boost, while the 24-hour trading volume climbed to $3,000, marking a 24.14% rise.

These figures underscore the growing interest in SunPump and its ecosystem.

As the TRON meme ecosystem garners attention, the partnership between SunPump and BitMart is poised to create new opportunities for meme coin projects, potentially leading to long-term success in this dynamic market.

The post SunPump partners with BitMart to boost meme coin market on TRON appeared first on CoinJournal.

• Canary Capital has filed for a spot Litecoin ETF.
• The ETF aims to offer institutional investors exposure to Litecoin’s value.
• Regulatory challenges may arise, especially regarding market infrastructure and liquidity.

Canary Capital, a notable name in the world of cryptocurrency investment, has filed for a spot Litecoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC).

This recent filing comes just days after the company submitted a similar registration for a spot XRP ETF.

The latest filings signal the firm’s ambitious expansion plans in the digital asset investment landscape, targeting institutional investors seeking reliable cryptocurrency exposure.

Aiming to tap into the potential of Litecoin (LTC)

The newly filed S-1 registration statement outlines Canary Capital’s objective to provide investors with exposure to the value of Litecoin (LTC) held by the trust.

According to the filing, the ETF will track the price movements of Litecoin, although specifics about the custodian or administrator for the fund were not disclosed.

Canary Capital aims to position Litecoin as a compelling choice for institutional investors looking for exposure to a “time-tested and reliable cryptocurrency.”

In a statement, the firm emphasized Litecoin’s prominent role in the broader cryptocurrency ecosystem. The digital currency is recognized as one of the longest-running blockchains, boasting 100% uptime since its inception in 2011.

This impressive track record of security and reliability, along with significant enterprise use cases, has positioned Litecoin as an attractive asset for potential investors.

Canary Capital’s move to file for a spot Litecoin ETF is based on the belief that the cryptocurrency’s resilience and long-standing history make it a unique and appealing investment option.

Navigating regulatory hurdles

James Seyffart, an ETF analyst at Bloomberg, weighed in on the filing, noting that while there are existing exchange-traded products that include Litecoin, such as those from CoinShares in Switzerland and a Grayscale trust in the US, gaining approval from the US SEC will not be without challenges.

Also there are some ETPs that already hold Litecoin.$LITE in Switzerland from @CoinSharesCo $ELTC in Germany from @ETCGroupLLC (now owned by @BitwiseInvest )

We also have a @Grayscale trust here in the US:$LTCN

— James Seyffart (@JSeyff) October 15, 2024

However, Seyffart highlighted the possibility that Litecoin could be treated similarly to Bitcoin in terms of regulatory classification. Since Litecoin originated as a fork of Bitcoin, it shares some of Bitcoin’s decentralized and commodity-like characteristics.

The approval of Bitcoin ETFs earlier this year set a potential precedent that could work in favour of Litecoin’s case, given their shared history and similar characteristics.

However, Seyffart cautioned that despite this similarity, Litecoin would still need to meet the SEC’s stringent requirements for market infrastructure and liquidity.

The current regulatory environment under the SEC requires a sizable and liquid futures market that is federally regulated in the United States, which Litecoin presently lacks. This absence of a regulated futures market could complicate the approval process for the ETF, especially under the current administration’s regulatory framework.

Nonetheless, the upcoming US presidential election could significantly influence the SEC’s stance on cryptocurrency ETFs. Former President Donald Trump, who has been viewed as more favourable toward the cryptocurrency industry, has previously expressed his intention to dismiss current SEC Chair Gary Gensler if he were to return to the office.

Should there be a shift in leadership at the SEC, it could create a more accommodating regulatory environment for cryptocurrency products, including the potential approval of spot crypto ETFs such as those for Litecoin and XRP.

Seyffart pointed out that the filing for a spot Litecoin ETF could be seen as a strategic move in anticipation of a potential change in the SEC’s leadership.

Nevertheless, a 19b-4 filing, which would be submitted by exchanges on behalf of the issuer, is still required to start the official approval process. Once this document is filed, it will trigger a specific timeline for the SEC to review and respond to the ETF application.

Canary Capital’s broader crypto ETF strategy

Canary Capital’s decision to file for a spot Litecoin ETF comes shortly after its S-1 registration statement filed on Tuesday for a spot XRP ETF, reflecting the firm’s broader strategy to bring multiple cryptocurrency ETFs to the market.

The company has expressed confidence in the growth potential of both Litecoin and XRP, which are recognized as significant players in the digital currency space. If approved, these ETFs would provide institutional investors with new avenues for diversifying their portfolios through direct exposure to the respective cryptocurrencies.

The SEC has yet to approve a spot XRP ETF, and the application may face additional scrutiny due to the agency’s ongoing legal battle with Ripple Labs, the company behind XRP. The SEC has accused Ripple of conducting an unregistered securities offering worth $1.3 billion, a legal dispute that could complicate the approval process for a spot XRP ETF.

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