Welcome to the first edition of Datawallet Daily for the week. Here are the key stories that are shaping the crypto landscape over the last 24 hours:
- ZKasino Under Fire for Redirecting $33M in ETH Refunds to Lido
- Woo X Launched First Tokenized T-Bills for Retail Investors
- EigenLayer Nearing Potential Yield Crisis
- Shiba Inu Secures $12M in Token Round for New Blockchain
ZKasino Under Fire for Stealing $33M in ETH
ZKasino, a blockchain-based gambling project, is under scrutiny for not refunding $33M in ETH as originally promised to its users, instead transferring the funds to the staking protocol Lido.
The company’s April 20 blog post disclosed this pivot from its initial plans, converting users’ bridged ETH into ZKasino (ZKAS) tokens at a discounted rate and implementing a 15-month vesting schedule.
This shift has sparked accusations of an exit scam among the community, particularly after misleading claims and a lack of transparency were noted regarding token distribution and technological promises. The controversy escalated with public outrage and legal threats directed at ZKasino’s founder. Furthermore, key investors and partners have distanced themselves, asserting that they too are victims of the situation.
Woo X Launched First Tokenized T-Bills for Retail Investors
Woo X, a cryptocurrency exchange, has launched RWA Earn Vaults, marking the first time retail customers can access tokenized U.S. Treasury bills. Developed in collaboration with the London-based institutional tokenization platform OpenTrade, this product allows users to invest in interest-bearing accounts backed by Treasury bills.
Woo X’s Chief Operating Officer, Willy Chuang, highlighted this as a significant milestone, bridging traditional financial securities with cryptocurrency. The initiative aims to provide a secure and efficient way for users to engage with low-risk financial assets, enhancing their investment opportunities within the crypto space.
EigenLayer Nearing Potential Yield Crisis
EigenLayer, the leading restaking protocol on Ethereum with a TVL of over $15 billion, faces a potential yield crisis due to the disproportionate growth in TVL relative to the security needs of its Actively Validated Services (AVS). The protocol’s AVS only require a fraction of the staked capital for security, raising concerns about future yield sustainability as expressed by a pseudonymous builder at the 3Jane derivatives exchange.
With the recent launch and removal of limits on liquid staking tokens (LSTs), user stakes are automatically delegated to node operators for securing AVS, but the excess capital may not find productive use. This could lead to significant yield reductions unless EigenLayer deepens its integration with the DeFi ecosystem, enhancing LST utility and supporting financial primitives that could stabilize the protocol’s economic model and maintain yield levels.
Shiba Inu Secures $12M in Token Round for New Blockchain
Shiba Inu has successfully raised $12 million through the sale of its TREAT token to develop a new privacy-focused Layer 3 blockchain. Key investors include prominent names like Polygon Ventures, Mechanism Capital, and Shima Capital, despite initial concerns about the U.S. location of some investors.
The TREAT token, which will serve as the utility and governance token of this new blockchain, aims to enhance privacy using fully homomorphic encryption, a cutting-edge technology providing end-to-end data encryption. This initiative marks a significant development within the Shiba Inu ecosystem, which plans to launch the blockchain’s testnet in the third quarter of this year.
Other breaking news
- Thailand Plans to Restrict Access to ‘Unauthorized’ Crypto Platforms
- Mt. Gox Trustee Revises Bitcoin and Fiat Repayment Schedule
- Bitcoin’s ‘DeFi Summer’ Moment: Miners Earn Record $100M Post-Halving
- Crypto Funds See $206M Weekly Outflows Over Rate Concerns
- Hong Kong Police Freeze Assets Linked to JPEX Amid $403M Fraud
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