PayPal receives SEC subpoena Institutions escrow too much BTC will kill it

Headlines

Arthur Hayes: Institutional custody of too much Bitcoin could kill Bitcoin**

A craze for potential spot Bitcoin ETF approvals is on the rise in the crypto ecosystem, but Maelstrom Fund founder Arthur Hayes doesn't see such an event as good for Bitcoin or those who use it.

Arthur Hayes said asset managers like BlackRock are in fact "agents of the state" who act on the state's beheels. Bitcoin is the antithesis of nationalist currencies, and let's say BlackRock and other traditional financial peers come in and hoard a large portion of the freely traded bitcoins in circulation. In the asset management company's system, the user buys derivatives, the asset management company goes and buys some bitcoins, and then puts it with the custodian, the user can't actually use these bitcoins, the user buys the financial asset and not the bitcoin itself. If the BlackRock ETF is too big, it will actually kill Bitcoin because it's just a bunch of bitcoins that don't move and just put it there.

▌****PayPal receives SEC subpoena to focus on stablecoin work

PayPal received a subpoena from SEC enforcement for work related to its dollar-pegged stablecoin. Regulatory filings show that the subpoena requires PayPal to provide documents related to the project. The agency is also investigating how Venmo provided transactions to customers' linked bank accounts, the filing said.

In addition, the Consumer Financial Protection Bureau (CFPB) is also investigating the company.

PayPal launched a stablecoin called PayPal USD (PYUSD) in August. The San Jose, Calif.-based payments company said at the time that the token was pegged to the U.S. dollar and was fully backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents. According to CoinGecko data, the token's market cap is around $158 million.

Quotes

As of press time, according to CoinMarketCap data:

BTC was last traded at $35,029.3, with an intraday change**+****0.41%**;

ETH last traded at $1,893.42, with an intraday change**+1.01%**;

BNB was last traded at $244.08, with an intraday change**+1****.35%**;

XRP was last traded at $0.6597, with an intraday change**+****2.45%**;

DOGE last traded at $0.0711, with an intraday change**+1****.80%**;

ADA last traded at $0.3418, with an intraday change**+****0.07%**;

SOL was last traded at $41.17, with an intraday change**+1****.12%**.

POLICY

▌****Leung Fung Yee: If regulatory issues are met, consider allowing retail investors to participate in spot crypto ETFs

Hong Kong Securities and Futures Commission Chief Executive Officer Julia Leung said in an international interview that Hong Kong is considering allowing retail investors to participate in spot crypto ETFs if regulatory concerns are met. We welcome proposals to use innovative technologies to improve efficiency and customer experience, and we are happy to try them whenever new risks are addressed. Our approach is consistent regardless of the asset.

Blockchain Applications

▌****Ordinals Wallet: Chrome extension will always be at the mercy of Google, wallet reduces contact with third parties

Ordinals Wallet posted on social media that it cares more about its customers than it thinks, and as a result, offers a variety of login methods for the market. This is an option for users who think the browser extension is the best. It is also an option for users who consider web wallets to be the best. Chrome extensions will always be at the mercy of Google. We took steps to reduce our contact with third parties, and we learned this from Satoshi Nakamoto.

Cryptocurrency

▌******Nearly $200 million worth of HFT and APT will be unlocked this week

According to TokenUnlocks data, from November 6th to November 12th, GLMR, HFT, EUL, 1INCH, and APT tokens will be unlocked at one time, including:

3.04 million tokens (approximately $688,000) of Moonbeam token GLMR will be unlocked at 08:00 on November 7, representing 0.39% of the circulating supply.

The Hashflow token HFT will unlock 160 million (about $41.66 million) at 08:00 on November 7, accounting for 73.74% of the circulating supply. The Early Investors & Core Team section will be unlocked starting this week;

The Euler token EUL will unlock 140,000 tokens (about $500,000) at 11:04 on November 9, accounting for 0.75% of the circulating supply;

15,000 tokens (about $4,980) will be unlocked at 20:00 on November 9, accounting for 0% of the circulating supply;

The Aptos token APT will unlock 24.84 million (about $172 million) at 08:00 on November 12, accounting for 10% of the circulating supply, and the investor and core contributor portion will be unlocked starting this week.

▌********** Report: From January to October 2023, a total of more than $1.41 billion was lost in 292 hacking incidents**

According to Immunefi's latest report, from January to October 2023, in 292 specific incidents, hacking and fraudulent activities caused a total of more than $1.41 billion in damage. In October 2023 alone, the losses amounted to about $22.2 million, mainly due to hacking and fraud. The most frequently attacked blockchain networks during this period were BNBChain and Ethereum, accounting for 83.3% of the total losses of the target chain. Immunefi revealed that BNBChain suffered the highest number of single attacks with 11, accounting for 45.8% of the overall loss of the target chain.

Ethereum, on the other hand, had 9 incidents, accounting for 37.5% of the total losses. Among the Layer 1 blockchains, Avalanche had 2 incidents in October, accounting for 8.3%. Polygon and Fantom each had one incident, accounting for 4.2 per cent each. Hacking incidents continue to be the leading cause of financial losses, outpacing the fraudulent activities that resulted in total losses of more than $16.35 million that month. In addition, DeFi platforms remained the main focus of utilization in October, accounting for 100% of total losses. In contrast, no major vulnerabilities have been reported in the CeFi platform.

▌**********Glassnode analysts: Bitcoin may rise sharply again

Glassnode analysts pointed to a historic bullish signal for Bitcoin (BTC) that had previously prompted an explosive rally in BTC. Glassnode co-founders Jan Happel and Yann Allemann said that Bitcoin has "broken" several key resistance levels and is currently in a phase of gaining momentum. The two analysts focus on Bitcoin's Relative Strength Index (RSI), which is traditionally used to measure the momentum of an asset. Given that Bitcoin's RSI is currently above the 70 level, analysts say that based on historical records, Bitcoin could rise sharply again.

Important Economic Dynamics

▌The probability that the Fed will keep interest rates unchanged in December is 95.2%

According to CME's "Fed Watch", the probability that the Fed will keep interest rates unchanged in the range of 5.25%-5.50% in December is 95.2%, and the probability of raising interest rates by 25 basis points to the range of 5.50%-5.75% is 4.8%. The probability of keeping interest rates unchanged by January next year is 91.2%, the probability of a cumulative rate hike of 25 basis points is 8.6%, and the probability of a cumulative rate hike of 50 basis points is 0.2%.

Golden Encyclopedia

▌****AA Technology

Account Abstraction(AA) is a new paradigm of contract wallet based on ERC-4337, which implements on-chain interaction of contract accounts in an application-layer way. AA does not need to modify the ETH node consensus, and can achieve more programmability and contract composability than the current EOA external accounts (such as Metamask accounts) by operating on-chain contract accounts.