Coinbase acquires stake in Circle, Lido's token unlocks, Gemini battles SEC, Recur shuts down, Friend.tech soars and more.
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Coinbase Acquires Minority Stake in Circle (USDC)

Coinbase Acquires Minority Stake in Circle (USDC)

Coinbase acquires stake in Circle, Lido's token unlocks, Gemini battles SEC, Recur shuts down, Friend.tech soars and more.

Last update:
Aug 22, 2023
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87

Welcome back to another week of Datawallet Daily, your premier destination for all things crypto. In our ever-changing and fast-paced crypto world, we stand as your reliable guide. Today's edition unravels insights and breakthroughs on the topics that matter most. Buckle in as we dive deep into:

Coinbase acquires minority stake in Circle (USDC)

Coinbase announced overnight that they will be acquiring a minority stake in Circle Internet Financial, leading to the dissolution of their Centre Consortium that managed USD Coin (USDC). Circle will now fully control USDC's issuance, and six additional blockchains will integrate with it, taking the total to 15. Though specifics were not disclosed, Circle had plans to add Polkadot, Near, Optimism, and Cosmos in 2023.

The deal doesn't involve cash and comes as the stablecoin market sees significant shifts, such as PayPal's introduction of its PYUSD token. This move may challenge the dominance of USDT and USDC.

From Coinbase's perspective, the move signals a broader vision for USDC, potentially extending beyond crypto trading to areas like foreign exchange and cross-border transfers. Coinbase's senior director downplayed any competition with PayPal's entry into the stablecoin space.

Market eyes multi-million-dollar token unlocks for Lido

This week, there are plans to implement unlocks for three tokens: Lido (LDO), the liquid staking protocol; Avalanche Blockchain's native token (AVAX); and the token associated with the Yield Guild Games DAO (YGG). These unlocks will result in an increase in the supply of these tokens available on the market. Token unlocks involve releasing previously frozen coins in a staggered manner to prevent early investors or project team members from selling off their holdings all at once.

Gemini moves to dismiss SEC lawsuit

Gemini is urging a federal judge to dismiss the lawsuit filed by the SEC, stating that the agency has failed to provide conclusive evidence that unregistered securities were sold on their exchange.

In January, the SEC accused Gemini and Genesis of mishandling customer funds, specifically mentioning concerns about Gemini Earn and the obligatory Master Digital Asset Loan Agreement (MDALA) required for program participation. According to their lawsuit, the SEC claims that both Gemini Earn and MDALA can be classified as securities.

Recur will shut down only two years after raising $50 million

Recur, the platform for non-fungible tokens (NFTs), has recently declared its intention to cease operations. This decision comes shortly after the company raised $50 million in a series A funding round. According to the announcement, Recur's closure will be implemented in phases. Starting from August 18, 2023, primary and secondary sales will be disabled. Additionally, no new user accounts are being created moving forward. Finally, on November 16, 2023, all remaining functions of the site will come to a complete halt.

Friend.tech generates over $1 million fees in 24h

Friend.tech, a decentralized social (DeSo) network that recently launched, achieved more than $1 million in fees within a 24-hour period on August 19th. This impressive performance surpassed well-established players in the crypto ecosystem such as Uniswap and the Bitcoin network.

The platform introduced its beta version on August 11th, offering users the opportunity to tokenize their social networks by buying and selling "shares" of their connections. This unique feature allows individuals who purchase someone else's share to communicate privately with each other. The protocol applies a 5% fee on transactions, where the owner profits from the spread resulting from trades.

Other breaking news

Here are a few other stories making headlines in the last 24 hours:

Wrapping up

Wrapping up today's edition, the last 24 hours have been filled with noteworthy developments in the crypto landscape. From Coinbase's acquisition of a minority stake in Circle, signaling major changes in the stablecoin market, to the substantial fees generated by Friend.tech, we've witnessed significant moves that continue to shape the digital finance world. Stay connected with Datawallet Daily, and we'll ensure you stay at the forefront of this ever-evolving and exciting industry.