EigenLayer Launches Slashing Testnet

EigenLayer's slashing testnet went live on December 20, featuring Unique Stake Allocation and Operator Sets for Actively Validated Services (AVS). Unique Stake Allocation allows operators to allocate portions of their staked Ether to specific AVSs, isolating slashing risks.

Operator Sets enable AVSs to organize operators, define tasks, and set slashing conditions. Slashing penalizes validators for errors or dishonest behavior, enhancing network trust. The testnet phase temporarily pauses some functionality, with the mainnet launch proposed for late Q1 2025.

EigenLayer currently secures $15.2 billion in total value locked ahead of its competitors Babylon ($5.4 billion TVL), Symbiotic ($2.2 billion TVL), and Karak ($0.9 billion TVL). Meanwhile, the price of the EIGEN token has crashed by 27% in the past week, while being up 45% in the last month.

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SEC Approves First Hybrid Bitcoin-Ethereum ETFs

The SEC approved the first spot exchange-traded funds combining Bitcoin and Ethereum, to be listed on Nasdaq and Cboe BZX exchanges. The Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF are set to launch in January, featuring most likely an 80% Bitcoin and 20% Ethereum allocation. The funds will comply with strict listing and transparency requirements.

The approval follows multiple review extensions, reflecting growing acceptance of hybrid crypto products. Current Bitcoin ETFs, led by BlackRock’s $56 billion fund, dominate the market. Hybrid ETFs’ surveillance-sharing agreements aim to mitigate fraud and manipulation risks. Analysts predict high demand for these diversified crypto investment options.

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SEC Fines Jump Trading $123 Million Over TerraUSD Actions

The SEC fined Jump Trading subsidiary Tai Mo Shan $123 million for misleading actions during TerraUSD’s 2021 depeg. Tai Mo Shan spent $20 million to stabilize the token’s $1 peg, allegedly deceiving investors about the algorithmic mechanism’s efficacy. The penalty includes $86 million in disgorgement and $36 million in civil fines.

Tai Mo Shan’s actions allegedly profited from early access to Luna tokens, selling them for significant gains. Terraform Labs also faced SEC scrutiny, settling for over $4 billion in fines. This situation emphasizes the regulatory difficulties for projects involving stablecoins and related market players.

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Hawk Tuah Influencer Responds to Meme Coin Allegations

Haliey Welch, known for her viral “Hawk Tuah” clip, addressed allegations following the rapid pump-and-dump of the HAWK token launched on December 4. The meme coin peaked at a $500 million market capitalization before dropping 90%, prompting a lawsuit against its creators for promoting unregistered securities.

Welch, who promoted the token but is not named in the lawsuit, stated she is cooperating with lawyers representing affected investors. Blockchain data reveals a single wallet purchased 18% of the meme coin supply shortly after launch, profiting over $1 million while most investors got rugged. Welch strongly advised affected parties to contact lawyers.

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Data of the Day

MicroStrategy’s Bitcoin acquisitions in late 2024 surpassed its 2021 bull market levels, totaling 439,000 BTC worth approximately $27 billion. November purchases included 55,500 BTC at an average price of $97,000 each. The company’s corporate strategy has drawn institutional capital into the Bitcoin market.

MicroStrategy will join the Nasdaq 100 index on December 23, providing stock investors with indirect Bitcoin exposure. The company’s board recently added former Binance.US CEO Brian Brooks and other prominent executives. Co-founder Michael Saylor reiterated MicroStrategy’s commitment to purchasing Bitcoin throughout its life cycle, regardless of price levels.

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More Breaking News

• Interpol issued a Red Notice for Hex and PulseChain founder Richard Heart, accusing him of gross tax evasion and physical assault.
• Tether invested $775 million in streaming platform Rumble, sparking a 44.6% after-hours rally and signaling its broader push into censorship-resistant technologies.
• Ethereum layer 2 networks now hold a record $13.5 billion in stablecoins, contributing to a $205 billion global stablecoin market cap.
• Deribit and Bitget executives discussed the coexistence of centralized and decentralized exchanges, as DEX volumes reached a record $300 billion in November.
• Roman Storm, co-founder of Tornado Cash, sought dismissal of charges, citing a court ruling that smart contracts cannot be considered sanctionable property.
• Aptos Labs co-founder Mo Shaikh stepped down as CEO, with co-founder Avery Ching assuming the role to drive technological innovation.

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