Ripple (XRP) surges on SEC victory, Alex Machinsky arrested Starknet's Quantum Upgrade live, Wallet Pay integrates with Telegram and more.
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XRP Surges on Favourable SEC Ruling

XRP Surges on Favourable SEC Ruling

Ripple (XRP) surges on SEC victory, Alex Machinsky arrested Starknet's Quantum Upgrade live, Wallet Pay integrates with Telegram and more.

Date:
Jul 14, 2023
| Issue
#
60

Hi all! Welcome to another edition of the Datawallet newsletter. As usual, we will get into the nitty-gritty of the crypto world, covering topics that will help you stay ahead of the game. So, read on!

Today’s drop will cover these key daily news items:

XRP Token Surges on Favourable SEC Ruling

In a landmark ruling by U.S. Judge Analisa Torres on July 13, Ripple Labs' XRP token was classified as a security for institutional sales, but not for public sales. Consequently, XRP soared by 71%, rallying from $0.45 to $0.77, marking a substantial win for Ripple Labs and retail traders of XRP. Given the new classification, XRP, when traded by the public, is now considered a digital commodity and thereby escapes securities regulations.

The decision was reached using the Howey Test, a four-point measure crafted by the U.S. Supreme Court to assess whether transactions are investment contracts, thereby classifying them as securities. A key point of debate was whether the traders expected profit from Ripple Labs' activities, a condition many retail buyers argued didn't apply to them.

Notably, the verdict doesn't affect Bitcoin, which doesn't meet the Howey Test's criteria and isn't considered a security, according to SEC Chair Gary Gensler. Ethereum, however, could soon face a similar fate to XRP, as debates over its classification continue.

The ruling brings to light an interesting nuance for other cryptocurrencies, which could be classified as securities if their initial offerings were direct sales to the public. Cryptos like Ethereum, BNB, Cardano, EOS, Cosmos, and Tezos, which sold over 50% of their initial supply to the public, could thus fall under this category. Nevertheless, XRP sales to the public via exchanges remain beyond the SEC's jurisdiction.

Former Celsius CEO allegedly arrested

Reports have emerged detailing the arrest of Alex Mashinsky, the ex-CEO of the now-insolvent cryptocurrency lender, Celsius, on the morning of July 13. The news came to light shortly after the U.S. Securities and Exchange Commission initiated legal proceedings against the cryptocurrency lending firm on that same day. 

According to Bloomberg, who quoted sources close to the situation, Mashinsky's arrest was the result of an investigation into the company's downfall. He is allegedly facing charges of fraud and market manipulation.

Starknet Quantum Leap upgrade live

Starknet, a layer-2 scaling protocol, recently launched its Quantum Leap upgrade on the Ethereum mainnet, unlocking a game-changing speed of up to 90 transactions per second (TPS). The announcement was heralded by Uri Kolodny, StarkWare's co-founder and CEO, as a breakthrough moment that finally makes high TPS a reality on Ethereum.

Unveiled on July 5, the Quantum Leap upgrade performed impressively during its testnet deployment, offering transaction inclusion times of under 10 seconds, significantly faster than the anticipated 15 seconds. This paves the way for speedier DeFi applications and adds an extra dash of realism to AAA-rated games within the network.

For StarkWare co-founder and president, Eli Ben-Sasson, the upgrade is equivalent to arming the community with a "supercharged power tool", enabling the creation of previously impossible projects. In the short term, he envisages a slicker, speedier DeFi experience and seamless on-chain gaming. In the long term, Ben-Sasson anticipates a wave of innovation that will transform our interaction with technology and each other.

Wallet Pay enables crypto payments on Telegram

Wallet, a cryptocurrency and payment solution built on The Open Network (TON) and implemented within Telegram, is initiating Wallet Pay. This feature allows for Bitcoin, Tether, and Toncoin transactions for merchant payments via the widely-used messaging application.

Merchants and Wallet Pay users can utilize these digital assets to conduct immediate and safe transactions for various products and services.

Google Play to introduce easier requirements for Blockchain apps

On Wednesday, Google Play sparked curiosity among cryptocurrency developers by giving the initial go-ahead to a few blockchain-related applications on its platform. According to Google, the approved app categories encompass games that offer NFTs as prizes, as well as cryptocurrency exchanges and wallets. However, the ban on cryptocurrency mining apps remains in place.

Other breaking news

  • Linea Mainnet Alpha is live and available for public use
  • Auto-refinancing lending protocol Fuji Finance launches V2
  • Ribbon community proposes to merge Ribbon into Aevo
  • Brazilian Central Bank to launch an ERC20-based digital currency
  • Bitget reserves top $1.44 billion

Wrapping up

To conclude today's digest, we've seen significant developments across the crypto world. XRP has experienced a considerable surge due to a favourable SEC ruling, while former Celsius CEO, Alex Mashinsky, faces legal troubles. Starknet's Quantum Leap upgrade is now live, promising swift transaction speeds and innovation. Wallet Pay's integration with Telegram offers new transaction possibilities for Bitcoin, Tether, and Toncoin users, and Google Play eases its regulations for blockchain applications. As always, we encourage you to stay tuned and keep ahead in this fast-paced digital asset space.