Kraken Introduces New Layer 2 Blockchain 'Ink'
Kraken Introduces New Layer 2 Blockchain 'Ink'
Kraken plans to launch its Ethereum Layer 2 blockchain called "Ink" in early 2025. The testnet is expected to debut later this year, providing access to various decentralized finance (DeFi) applications. Built using the OP Stack, Ink aims to improve scalability and interoperability within the Superchain ecosystem, which has 57 projects at the moment.
Initially, Kraken will act as the sole sequencer for managing transactions, but it plans to decentralize this function over time. Unlike other Layer 2s, Kraken does not intend to issue a specific token for Ink. This strategic choice aligns with Kraken's ongoing efforts to expand its product offerings and compete more effectively in the crowded crypto exchange market.
With Ink, Kraken aims to attract developers and users seeking efficient and secure DeFi services and also battle its US competitor Coinbase which was very successful so far with their own L2 - Base. Ink's testnet is scheduled to go live in 17 days.
US Government Wallet Might've Been Drained For $20 Million
A US government crypto wallet linked to the 2016 Bitfinex hack was possibly drained of over $20 million on Thursday. Analysts suggest that the suspicious transfers indicate potential theft, as assets were moved to a newly created address. The drained assets included $1.25 million in Tether, $5.5 million in USDC, and approximately $13.7 million in aUSDC.
Blockchain analytics firm Arkham Intelligence reported unusual withdrawals prior to the transfers from a lending protocol. The funds were subsequently redirected to instant exchanges, including one associated with Binance. Blockchain investigator ZachXBT described the activity as “nefarious,” indicating the funds were likely the result of theft.
Microsoft Shareholders to Vote on Bitcoin Investment Proposal
Microsoft will hold a shareholders meeting on December 9 to discuss a potential investment in Bitcoin. The company’s board has recommended that shareholders vote against the investment proposal, emphasizing their cautious approach. It remains unclear whether this pertains to adding Bitcoin to Microsoft’s balance sheet or a broader strategy regarding digital assets.
Currently, Microsoft accepts Bitcoin for transactions in its online stores, demonstrating some openness to cryptocurrency. If the vote passes in favor of investment, Microsoft could join a select group of US companies that have embraced Bitcoin. MicroStrategy, which has heavily invested in Bitcoin, serves as a notable example, holding over 250,000 in Bitcoin treasuries.
South Korea to Regulate Cross-Border Crypto Transactions
South Korea plans to impose a reporting requirement for firms handling cross-border cryptocurrency transactions. Finance Minister Choi Sang-mok announced this initiative to combat foreign exchange crimes involving digital assets. Businesses will need to pre-register and report transaction details to the Bank of Korea monthly.
Approximately 88% of foreign exchange crimes in South Korea have involved cryptocurrencies, amounting to $1.2 billion. Legal revisions to establish this regulatory framework are expected to be finalized by mid-2025. The government aims to create a comprehensive approach to regulating its digital asset sector.
Data of the Day
The EURC stablecoin has reached an all-time high supply of over 90 million, equating to nearly $100 million in market cap. This growth is primarily driven by activity on the Coinbase-incubated Base Layer 2 network. Circle’s EURC now stands as the largest euro stablecoin by market capitalization, surpassing Tether’s EURT.
Since its launch, EURC's supply has more than doubled, reflecting its rising dominance in the market. Despite this progress, US dollar-denominated stablecoins still vastly outweigh euro-based options in the crypto market. Currently, EURC represents less than 0.1% of the total $176.6 billion global stablecoin market.
More Breaking News
- BingX launches the ShieldX wallet firewall to enhance security after a $52 million hack earlier this year, partnering with security firms for monitoring.
- Goatseus Maximus (GOAT), a Solana AI meme coin, reached an all-time high after being listed for futures trading on Binance yesterday.
- A solo Bitcoin miner earned $222,438 (3.125 BTC) by processing a block, despite increasing mining difficulties and competition in the Bitcoin network.
- GnosisDAO announces a $40 million venture fund to invest in real-world assets and crypto infrastructure, supported by early-stage projects.
- TeraWulf plans to raise $350 million through convertible notes to fund a $200 million share buyback program and cover expenses of its BTC mining business.
- Base Layer 2 is set to implement permissionless fault proofs on October 30 to enhance decentralization and reduce single-entity control.
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