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Synthetix Stops SNX Inflation & Prioritizes Buyback and Burn

Synthetix Stops SNX Inflation & Prioritizes Buyback and Burn

Synthetix shifts strategy, Google revises crypto ad rules, Binance faces market share drop, FTX disputes IRS tax bill.

Welcome to the newest issue of Datawallet Daily. As usual, we’ve diligently scoured various news sources to present you with the most important updates from the past day:

Synthetix Will Stop SNX Inflation, Prioritize Buybacks and Burns

Synthetix, the largest decentralized derivatives protocol by market capitalization, has passed governance proposal SIP-2043, marking the end of SNX token inflation and the beginning of a new strategy focused on token buybacks and burns. This change will be implemented in the upcoming Andromeda software release. Inflationary rewards, previously used to stimulate liquidity and growth, are deemed less effective, leading to their discontinuation. 

Synthetix will now utilize trading fees to acquire and burn SNX tokens, aiming to reduce the token supply. The Synthetix token has seen a rally to a yearly high of $4.75, with a fully diluted market capitalization of $1.5 billion and a total value locked of over $890 million across Ethereum and the Optimism Layer 2 network.

Google Updates Crypto Ad Policy Pre-Bitcoin ETF Approvals

Google has revised its cryptocurrency advertising policy to permit “Cryptocurrency Coin Trusts” ads in the U.S. from January 29. This change allows advertising for financial products that let investors trade shares in trusts with large digital currency pools. Crypto trusts must complete Google’s certification and voluntarily register with the SEC (Form 10-12g) to be eligible. 

The updated policy also supports ads for NFT games, crypto-accepting companies, and licensed crypto exchanges and wallets, while banning ads for ICOs, gambling, and staking NFT games. This update aligns with the anticipated SEC decision on spot bitcoin ETFs, suggesting potential advertising opportunities if approved.

Binance’s 2023 Crypto Trading Market Share Dropped to 30%

In 2023, Binance’s share of the cryptocurrency trading market significantly dropped to 30% in December from 55% at the beginning of the year. The exchange faced a regulatory crackdown in the U.S., resulting in a settlement of nearly $3 billion with the U.S. Commodity Futures Trading Commission and separate settlements with the Department of Justice and Treasury Department. This led to a decline in its monthly spot volumes from $474 billion in January to $114 billion in September, a decrease of over 70%. 

Despite a slight increase in trading volumes since September, the company experienced high-profile executive departures, including its CEO Changpeng Zhao. Nonetheless, Binance remains the largest crypto exchange, with its closest competitor, Seychelles-based OKX, holding an 8% market share in December.

FTX Debtors Contest $24B IRS Tax Bill 

FTX Trading has challenged a $24 billion tax bill proposed by the U.S. Internal Revenue Service (IRS), asserting it lacks merit and threatens the potential recoveries for the defrauded creditors. Originally demanding $44 billion, the IRS reduced the claim to $24 billion, which FTX contends greatly exceeds its actual earnings. 

In a Dec. 10 court filing, FTX argued that satisfying such a hefty bill would impede meaningful compensation for the victims of its bankruptcy. FTX has so far recovered around $7 billion in assets. Meanwhile, its former CEO Sam Bankman-Fried, convicted on fraud charges, awaits sentencing in March 2024.

Other breaking news

Wrapping up

Today's edition of Datawallet Daily illuminated key developments in the crypto world. From Synthetix's strategic shift away from SNX token inflation to Google's updated crypto ad policy and Binance's market share decline, the landscape continues to evolve rapidly. Additionally, FTX's challenge against the IRS's hefty tax bill highlights the ongoing complexities in the sector. Stay informed with Datawallet Daily for your essential dose of crypto insights!