Scenius Sync (Issue #124)

Bitcoin Smashes $70k, Hacker Returns $19.3M To Drained US Govt. Wallets, Tigran Released From Nigerian Prison, Kraken To Launch Own Blockchain, & Buenos Aires Launches ZKsync-Powered ID Solution

Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.

Welcome to The Scenius Sync.

Our mission with this concise publication is twofold:

1. Share the essential stories driving the crypto industry and markets.

2. Highlight innovative applications and mainstream adoption of crypto and blockchain technology.

If you find this newsletter valuable, please subscribe and share The Scenius Sync with your network 💪

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Essential News 🗞

1. Bitcoin Smashes Past $70,000 Ahead of US Election

   • It's happened again. Bitcoin's price has blasted beyond $70,000 for the first time since June. The largest crypto by market capitalization is up 3% on the day to $70,100, according to CoinGecko data. The asset's rise comes as investors again turn to the newly-approved exchange-traded funds (ETFs), providing a path for institutional investors—previously too cautious to purchase the asset on exchanges—regulated exposure to crypto. Investors this month have thrown billions of dollars at the new investment vehicles following a hiatus earlier this year. The products have been wildly popular, taking in more than $20 billion this year. BlackRock's iShares Bitcoin Trust has been the most successful of the ten vehicles to date.

   • More on this price action here: Bitcoin trades above $70,000 for first time in over seven months

2. Hacker Returns $19.3 Million to Drained US Government Crypto Wallet

   • A government-controlled wallet that had been drained of $20 million on Thursday received most of its funds back Friday, adding another layer of mystery to transactions flagged by blockchain analysts as likely being connected to a high-profile theft.

3. Freed Binance Exec Departs Nigeria as Country Teams With US on Crypto Task Force

   • Binance executive Tigran Gambaryan, held for eight months in a Nigerian prison, was freed after the country dropped charges against the United States citizen. Now Gambaryan’s family has confirmed that he has left Nigeria—and the two countries have launched a task force to combine resources towards fighting crypto-related crimes.

   • Bloomberg coverage here.

4. Vitalik publishes pt. 5 of his Ethereum Roadmap: “The Purge”

   • The goal of the purge? Simplify the protocol, eliminate technical debt and limit costs of participating in the network by clearing old history.

5. Crypto lobbying groups file court brief supporting lawsuit against SEC, seeks clarity over token airdrops

   • Washington D.C.-based crypto lobbying firms Blockchain Association and the Crypto Council for Innovation have filed a “friend-of-the-court” brief supporting an ongoing lawsuit against the U.S. Securities and Exchange Commission looking for proactive clarity on token airdrops. In March, Beba and DeFi Education Fund sued the SEC, arguing that token airdrops cannot violate the so-called Howey Test — the nearly century-old law used to determine whether a transaction represents an “investment contract” — in part because there is no reasonable expectation of profit. 

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Innovation & Adoption 💡📈

1. World's First ZK-Backed Digital Identity Launched in Buenos Aires for 3.6M Eligible Citizens

   • The Government of the City of Buenos Aires announced the integration of QuarkID, a ZKsync-powered decentralized identity solution, into its miBA platform. This groundbreaking initiative makes Buenos Aires the first city worldwide to implement blockchain and zero-knowledge cryptography for creating self-sovereign digital identities. By empowering 3.6 million residents with enhanced control over their personal data, the city sets a new standard in privacy and security for digital identity management. All governments own their citizens’ data, Buenos Aires is the first to relinquish control.

2. Crypto Exchange Kraken Plans to Launch Its Own Blockchain Early Next Year

   • One of world’s oldest crypto exchanges, Kraken, plans to launch a blockchain early next year for decentralized applications that allow for trading, borrowing and lending of tokens without intermediaries. Called Ink, the new digital ledger will use similar technology to Coinbase Global Inc.’s Base. Since its debut more than a year ago, Base has become one of the largest DeFi platforms. A so-called testnet, where developers will be able to try apps for Ink, will start later this year, and the blockchain is expected to become open to retail and institutional users in the first quarter, Andrew Koller, founder of Ink, said in an interview.

3. Hong Kong Mulls Tax Incentives for Sophisticated Crypto Investors

   • Hong Kong is preparing to introduce policy by the end of the year seeking to extend tax incentives to family offices and private funds investing in crypto on behalf of wealthy clients. Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, said the Special Administrative Region of China wants to ensure it has the “right conducive environment for blockchain, in particular their financial applications.”

4. Peter Thiel's Founders Fund invests in Infinex's Patron NFT sale as total amount raised hits $67.7 million

   • Peter Thiel’s Founders Fund was unveiled as an investor in Infinex’s new “patronage” fundraising model on Monday, as the sale officially closed. The fundraising model, which sold Patron NFTs to venture capitalists, angel investors and the community, raised a total of $67.7 million, according to Infinex. Other venture capital firms participating in the sale include Wintermute Ventures, Framework Ventures and Solana Ventures, alongside angel investors such as Ethereum co-founder Vitalik Buterin, Solana co-founder Anatoly Yakovenko and Aave founder Stani Kulechov.

5. Emory University reports holding $15 million worth of shares in Grayscale Bitcoin Mini Trust

   • Emory University reporting holding nearly 2.7 million shares of the Grayscale Bitcoin Mini Trust valued at around $15.1 million as of Sept. 30. The University also reported holding 4,312 shares in the crypto exchange Coinbase, with the dollar amount rising to $768,269.