PA Daily | Trump accepts cryptocurrency donations for presidential campaign; Bitcoin mining difficulty drops by 5.63% to 83.15T
Robinhood's cryptocurrency trading volume in the first quarter increased by 224% year-on-year, with net profit rising to $157 million; Puffer Finance announced that its mainnet has officially launched; Musk's xAI, under his umbrella, is expected to complete financing this week at a valuation of $18 billion.
Today's Headlines:
Trump announces he is accepting cryptocurrency donations for his U.S. presidential campaign
Bloomberg: Musk's xAI to complete financing this week, valued at $18 billion
Uniswap founder calls for stopping premature high valuations: Crypto projects need to prove value before talking about unicorns
friend.tech: Will start returning 2/3 of the protocol fees in Club Key exchange transactions to APP users in the next few days
Vitalik discusses the importance and implementation of introducing a multi-dimensional Gas pricing mechanism in Ethereum
Puffer Finance announces the official launch of its mainnet
Crypto trading platform Arbelos completes $28 million financing, led by Dragonfly
Bitcoin mining difficulty drops by 5.63% to 83.15T, expected to decrease next time
Regulatory News
The U.S. House of Representatives passes resolution aimed at overturning SEC's crypto custody accounting policy
According to The Block, the U.S. House of Representatives voted to pass a resolution aimed at overturning the SEC's announcement on cryptocurrency custody accounting standards. The vote was 228-182, with majority Republicans in support and 21 Democrats voting in favor. The announcement was first issued in 2022 and has sparked controversy over the past year. It requires cryptocurrency custodians to record customer-held cryptocurrencies on their balance sheets as liabilities. The crypto industry is concerned that this move may hinder banks from safeguarding digital assets. It is currently unclear whether this resolution will become law. However, the White House released a "government policy statement" on Wednesday, stating that President Biden will veto the resolution. The White House stated, "Limiting the SEC's ability to maintain a comprehensive and effective financial regulatory framework for crypto assets will bring serious financial instability and market uncertainty." The resolution may be submitted to the Senate Banking Committee and then voted on by all Senate members.
Trump announces he is accepting cryptocurrency donations for his U.S. presidential campaign
According to Watcher.Guru, Donald Trump announced that he is accepting cryptocurrency donations in his bid for the U.S. presidency. Trump said, "Biden doesn't even know what cryptocurrency is. If you like cryptocurrency, you better vote for Trump." Trump also pledged to end America's hostility towards cryptocurrency and embrace it.
Later in the day, influenced by Trump's remarks, the meme coin named after him, TRUMP, surged over 26% in 24 hours.
New regulations in Taiwan's Anti-Money Laundering Act: Unregistered virtual asset service providers face up to 2 years in prison
According to Ab Media, Taiwan recently passed a new regulation called the "Anti-Scam New Fourth Law," aimed at further strengthening the fight against fraudulent activities and strictly regulating anti-money laundering measures. This set of laws includes the Anti-Fraud Crime Prevention Act, the Anti-Money Laundering Act, the Technology Investigation and Protection Act, and the Communication Protection and Supervision Act, aiming to enhance the government's ability to prevent various criminal activities. The amendment to the Anti-Money Laundering Act specifically targets virtual asset service providers and includes three main amendments. First, any virtual asset service provider that fails to complete anti-money laundering registration may face up to 2 years in prison. Secondly, the law also introduces special money laundering crime modes, targeting the use of virtual asset accounts and third-party payment accounts as money laundering tools, with penalties ranging from 6 months to 5 years in prison and a maximum fine of NT$50 million.
AI
Bloomberg: Musk's xAI to complete financing this week at a valuation of $18 billion
According to Bloomberg, Elon Musk's artificial intelligence startup xAI is set to complete its latest round of financing this week, with a valuation of around $18 billion, with Sequoia being one of the potential investors. Bloomberg reported last week that xAI is expected to raise $6 billion in the new round of financing (currently about 43.38 billion RMB), initially estimated at $3 billion, but due to the subsequent participation of a large number of investors, the valuation has skyrocketed. Earlier, sources told Bloomberg that Musk's close associates in Sequoia Capital and Future Ventures, as well as other undisclosed investors, are joining this financing battle. The new round of financing will help xAI gain more AI computing resources to compete with openAI and Anthropic: Musk recently stated that xAI's next-generation Grok model is being trained on 20,000 Nvidia H100s, and the future Grok 3 will require up to 100,000 AI GPUs.
Project Updates
Grayscale CEO: Company to focus on spot Ethereum products
According to DL News, Grayscale Investments CEO Michael Sonnenshein stated at an event hosted by the Financial Times in London on Wednesday that the company will focus on converting its Ethereum Trust Fund into spot ETF products; the company is withdrawing applications as many futures products are already available to investors; sometimes we apply for products, but that doesn't necessarily mean they will enter the market. Sonnenshein said that while it is difficult to know the U.S. SEC's view on Ethereum, Grayscale "optimistically believes that the SEC will make the right decision for investors." He added, "Grayscale Ethereum Trust is already a company that submits reports to the SEC. We submit 10-Ks and 10-Qs (disclosure documents to the SEC), and we have always been a company that pushes for regulators to further include cryptocurrencies in their regulatory scope." Earlier yesterday, Grayscale withdrew its Ethereum futures ETF application from the U.S. SEC.
Uniswap founder calls for stopping premature high valuations: Crypto projects need to prove value before talking about unicorns
Uniswap founder Hayden Adams wrote on X platform that cryptocurrency founders and venture capitalists need to stop valuing projects at over $1 billion in the early stages of development and before tokens are released until they truly deserve that valuation. Building something worth 7-9 figures is an incredible achievement, not every project needs to be a unicorn right at the start. Hayden Adams also said, "Perhaps a bit naive, but I think funding as a founder at a fair valuation (real talent wants upside), and investing as a VC at a fair valuation (LPs want upside) can make more money. It's just harder to do it this way."
friend.tech: Will start returning 2/3 of the protocol fees in Club Key exchange transactions to APP users in the next few days
Decentralized social media platform friend.tech announced on X platform that in the coming days, it will start returning 2/3 of the protocol fees in Club Key exchange transactions to APP users. 0.5% of each exchange transaction value will go to the Club chairman, and exchange traders will collectively pay 0.5% less. This announcement was made in advance to give users time to reconsider their votes. This change will use the referral fee feature in the Clubs contract. Other clients will be able to decide where the referral fee for each transaction goes.
ZeroLend: Airdrop claim range expanded to wallets with at least 1 earlyZERO
Decentralized multi-chain lending protocol ZeroLend announced on X platform that over 450,000 wallets have been uploaded to the airdrop claim website. Previously, at least 20,000 earlyZERO tokens were required at the snapshot deadline. Now, wallets with at least 1 earlyZERO token have been added to ensure compliance with the 1:1 redemption promise from earlyZERO to ZERO. Most of the airdrop allocations are expected to be officially completed at this point, but there may still be some areas that need to be addressed.
Injective plans to establish Layer-3 network "inEVM" on Arbitrum
According to CoinDesk, Injective Labs announced plans to launch its independent Layer-3 network "inEVM" on top of Arbitrum's Layer-2 technology. The network will connect the Ethereum, Cosmos, and Solana blockchains, using the Arbitrum Orbit toolkit to enhance interoperability and composability. "inEVM" is compatible with the Ethereum Virtual Machine (EVM), providing developers with new opportunities to build applications within the Ethereum Layer-2 ecosystem.
Vitalik discusses the importance and implementation of introducing a multi-dimensional Gas pricing mechanism in Ethereum
Ethereum founder Vitalik Buterin published an article titled "Multi-Dimensional Gas Pricing," discussing the importance and feasible paths of introducing a multi-dimensional Gas pricing mechanism in Ethereum. Vitalik pointed out that currently Ethereum simplifies the pricing and limits of all resources into a single dimension of Gas, which, while simplifying market design, also leads to significant efficiency losses. If the network needs to manage n different resources, a single-dimensional Gas could result in throughput losses up to n times. EIP-4844 introduced multi-dimensional pricing for the first time in Ethereum, adding a dedicated Blob data area with independent pricing and limits. This improvement reduced the cost of Rollups by 100 times, increased transaction volume by over 3 times, while the theoretical maximum block size only slightly increased.
The article also discusses the necessity of adopting multi-dimensional Gas when introducing storage proofs for stateless clients. Due to quantum security risks in the Verkle tree scheme, the community hopes to switch to Binary Merkle trees and STARK, but their proof generation speed is much slower. By independently pricing and restricting storage access, stability can be ensured while avoiding cost issues caused by raising Gas prices. Additionally, Vitalik proposed two approaches to implementing multi-dimensional Gas pricing: 1. A simpler approach is to set resource limits for each transaction, valuing each transaction's Gas based on the larger of the consumed data and computational resources, as suggested by EIP-7623. 2. The ideal but more complex approach is to establish a dynamic adjustment mechanism for each resource similar to EIP-1559.
Vitalik emphasizes that introducing multi-dimensional Gas pricing is essential for optimizing Ethereum's efficiency and ensuring a fair and stable ecosystem.
Sharding on the EVM layer will bring a certain level of complexity, but the trade-off is worth it for safely enhancing the scalability of the Ethereum L1. The community also needs to further explore more elegant designs in terms of economic feasibility and developer-friendliness.
The new token economic model of EOS is planned to be deployed on the mainnet by the end of May, and the EOS staking rewards are expected to be launched by the end of June.
Yves La Rose, CEO of the EOS Network Foundation (ENF), stated on the X platform: "Our current goal is to complete the coding, auditing, testing of the new EOS token economic model, and submit them as MSIG (multi-signature proposal) for deployment on the mainnet by the end of May. After this initial activation phase, our goal is to launch the EOS staking rewards by the end of June." Earlier reports indicated that the main content of the EOS new token economic proposal includes a fixed token supply of 21 billion to curb inflation and the destruction of 80% of the future total supply.
io.net: Ignition Season 1 points are now live.
The DePIN protocol of Solana's ecosystem, io.net, announced on the X platform that Ignition Season 1 points are now live.
Puffer Finance announced the official launch of its mainnet.
The Ethereum liquidity staking protocol, Puffer Finance, announced on the X platform that the Puffer mainnet has been officially launched. The mainnet release marks the fourth chapter of the Crunchy Carrot mission. Users can now deposit ETH, stETH, or wstETH. The fourth chapter of Crunchy Carrot is coming soon and will bring an improved scoring system. Puffer Finance also stated that the over-centralization of LST could threaten the decentralization of Ethereum, leading to risks such as transaction censorship, manipulation of MEV extraction, and affecting block times. These behaviors threaten the integrity and decentralization of the network. To address this issue, in the coming weeks, all stETH deposits will be converted to ETH to provide funding for a new wave of diversified validators.
Funding News
Modular blockchain Sophon raised $60 million through node sales.
According to The Block, the modular blockchain platform Sophon, based on zkSync, raised $60 million through node sales. Investors include Maven 11, Paper Ventures, Spartan Group, and SevenX Ventures. The sale offered the purchase of 200,000 nodes, using a tiered pricing model with prices ranging from 0.0813 ETH to 2.0556 ETH per node.
Cryptocurrency startup Lagrange completes a $13 million seed round, led by Founders Fund.
According to CoinDesk, Lagrange, a crypto tech startup supported by Peter Thiel, successfully raised $13 million. The company focuses on developing advanced encryption solutions to enhance data security and privacy protection. In addition to Founders Fund, Lagrange's seed round funding includes participation from Archetype Ventures, 1kx, Maven11, Fenbushi Capital, Volt Capital, CMT Digital, Mantle, and Ecosystem. Lagrange Labs is a crypto startup based on the Ethereum EigenLayer re-collateralization platform. Lagrange utilizes its proprietary technology to provide a new encryption method that can offer a higher level of data protection for both enterprise and individual users without sacrificing performance. This funding will be used to further develop its encryption technology and expand its market influence.
Cryptocurrency trading platform Arbelos raises $28 million, led by Dragonfly.
According to CoinDesk, cryptocurrency trading platform Arbelos Markets announced the completion of a $28 million funding round led by Dragonfly Capital. This round of funding also includes participation from FalcolnX, Circle, Paxos, Polygon, and Deribit. Arbelos Markets will use this capital to enhance its trading capabilities in derivatives and over-the-counter markets, focusing on serving institutional clients such as hedge funds and venture capital firms. The company's focus is to provide necessary trading liquidity for these institutional participants and act as a counterparty for products like options and futures. The company's co-founders, Joshua Lim and Shiliang Tang, both have backgrounds in traditional finance and cryptocurrency trading. They plan to use this funding to drive further growth and innovation for the company while improving the transparency and risk management capabilities of the trading platform.
Web3 game developer Seeds Labs completes a $12 million seed round.
Web3 game developer Seeds Labs announced the completion of a $12 million seed round, with participation from Avalanche's Blizzard Fund, Solana Foundation, Krust, Hashkey Capital, UOB Ventures, Signum Capital, IVC, and Emoote. Seeds Labs, founded in 2021, is set to release its flagship product, the global cross-platform Web3 game Bladerite, later this month.
Key Data
Robinhood's cryptocurrency trading volume in the first quarter increased by 224% year-on-year.
According to The Block, Robinhood released its first-quarter earnings report on Wednesday. Revenue from trading increased by 59% year-on-year, reaching $329 million. Robinhood attributed this mainly to cryptocurrency revenue of $126 million, a 232% increase, and options revenue of $154 million, a 16% increase. Driven by the rise in stock and cryptocurrency valuations, Robinhood's assets under custody (AUC) grew by 65% to $129.6 billion. Net profit increased to $157 million, compared to a net loss of $511 million in the same period last year. Earnings per share were $0.18, higher than analysts' estimate of $0.6, with revenue of $618 million, exceeding analysts' estimate of $549 million. It is worth noting that the nominal trading volume of cryptocurrencies increased by 224% year-on-year to reach $36 billion.
MakerDAO: DAI supply increased by nearly 1 billion tokens in the past two months and became the largest stablecoin by on-chain trading volume in April.
MakerDAO announced on the X platform that in the past two months, the DAI supply surged by nearly 1 billion tokens. After adjustments to Stability fees and DAI borrowing APY by SparkLend and an increase in DSR rates, the DAI supply increased from 4.4 billion tokens to 5.4 billion tokens within 60 days. In addition to the growth in supply, DAI set a new record in April, with on-chain transaction volume reaching $636.72 billion, making it the largest stablecoin by on-chain trading volume for the month. The Dai Savings Rate (DSR) also showed positive momentum, with DSR steadily increasing in recent months, and total deposits exceeding $2 billion last week.
Data: 6 Hong Kong virtual asset ETFs traded approximately HK$19.04 million today, a 27% decrease from yesterday.
According to Hong Kong stock market data, as of the close of trading, the trading volume of 6 Hong Kong virtual asset ETFs today was HK$19.04 million, a 32.18% decrease from yesterday. Among them, the trading volume of Huaxia Bitcoin ETF (3042.HK) was HK$4.0287 million, Huaxia Ethereum ETF (3046.HK) was HK$0.8167 million, Harvest Bitcoin ETF (3439.HK) was HK$9.1015 million, Harvest Ethereum ETF (3179.HK) was HK$2.4537 million, Bosera HashKey Bitcoin ETF (3008.HK) was HK$2.4565 million, and Bosera HashKey Ethereum ETF (3009.HK) was HK$0.1824 million.
Earlier today, the Hong Kong Bitcoin ETF had a total subscription volume of 101.6 coins, while the Ethereum ETF saw net redemptions for two consecutive days.
The US Bitcoin spot ETF had a total net inflow of $11.5409 million yesterday, with an ETF net asset ratio of 4.25%.
According to SoSoValue data, yesterday (May 8th, US Eastern Time), the total net inflow of the US Bitcoin spot ETF was $11.5409 million. The Grayscale (GBTC) ETF had a net outflow of $0.00 yesterday, with a historical net outflow of $17.487 billion for GBTC. The Bitwise ETF BITB had the highest single-day net inflow yesterday, with $11.5409 million, bringing the total net inflow of BITB to $1.758 billion. As of the time of writing, the total net asset value of the Bitcoin spot ETF is $51.504 billion, with an ETF net asset ratio (percentage of market value to total Bitcoin market value) of 4.25%, and a total cumulative net inflow of $11.774 billion.
Bitcoin mining difficulty decreased by 5.63% to 83.15T, and is expected to decrease further in the next adjustment.
According to Mempool data, Bitcoin mining difficulty underwent a 5.63% decrease to 83.15 T at 19:00 today (block height 842688). The next difficulty adjustment is estimated to decrease by 6.39%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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