New Proposal for Ethereum, Solana Dominates Token Launches, and UAE Exempts Crypto from VAT - October 8, 2024
A quick and digestible recap of yesterday’s crypto news.
TL;DR: Market Insight in Seconds
Solana: Accounting for 87% of new tokens in 2024
UAE: Exempts crypto transactions from VAT.
Crypto: Global market sees $147 million in outflows.
Hong Kong: Regulator to approve more crypto exchange licenses.
FTX: A judge approves the reorganization plan.
Coinbase: Users lose $5M in alleged social engineering scheme.
Ethereum: A new proposal to improve throughput by 50%.
Price Update
Bitcoin Nears $64K as Investors Eye U.S. Economic Data
Bitcoin is approaching the $64,000 mark as traders await crucial U.S. economic data. The U.S. economy is reportedly in a "Goldilocks" state—neither too hot nor too cold—which is fueling confidence in risk assets like Bitcoin. Additionally, Bitcoin’s potential recovery has been encouraged by a positive "Uptober" sentiment as markets anticipate even stronger performance through the month.
Market Trends
Solana Dominates Token Launches in 2024
Solana has established itself as the leader in new token launches, accounting for over 87% of all tokens issued in 2024. This dominance is a testament to Solana’s efficient blockchain, attracting a variety of projects, particularly those seeking speed and scalability.
Global Crypto Fund Outflows Continue
Global crypto funds have reported $147 million in outflows, reflecting caution from institutional investors despite Bitcoin’s recovery. Analysts note that geopolitical and macroeconomic concerns are driving this cautious approach.
Regulatory and Legal Updates
UAE Exempts Crypto Transactions from VAT
The UAE has introduced a policy that exempts cryptocurrency transactions from value-added tax (VAT). This regulatory shift seeks to further encourage the adoption of digital assets in the region, making the UAE one of the most crypto-friendly jurisdictions globally.
Hong Kong Regulator to Approve More Crypto Exchange Licenses
Hong Kong's financial regulator is set to approve more crypto exchange licenses by the end of the year. The region is making an effort to become a global hotspot for digital assets, with plans to issue approvals in batches.
FTX Reorganization Plan Approved
Two years after its collapse, a U.S. bankruptcy judge has officially approved the FTX reorganization plan. This development could pave the way for partial recovery of creditor funds, although the timeline for disbursement remains uncertain.
Bluprynt Releases Standards for EU Crypto Compliance
Bluprynt, a crypto disclosure firm, has released new standards to help token issuers comply with upcoming EU regulations. This initiative is designed to make it easier for projects to navigate Europe’s stringent regulatory environment.
Don’t Miss Anything
Coinbase Users Lose $5M in Alleged Social Engineering Scheme
A recent social engineering scheme targeting Coinbase users has resulted in over $5 million in stolen crypto. The attack is part of a larger wave of scams exploiting the growing popularity of digital assets.
Ethereum Proposal to Improve Throughput by 50%
A new Ethereum upgrade proposal, EIP-7781, seeks to increase network throughput by 50% by reducing slot times from 12 to 8 seconds, allowing for faster transactions. The proposal, led by Ben Adams, also increases the capacity for data blobs used by layer-2 networks like Arbitrum and Optimism, improving data storage capabilities. Ethereum co-founder Vitalik Buterin and other key figures support the change.
Three Possible Candidates for “Who Is Satoshi Nakamoto”
An upcoming HBO documentary titled "Money Electric: The Bitcoin Mystery" claims to reveal the identity of Bitcoin's creator, Satoshi Nakamoto. The most likely candidates, according to speculation on Polymarket, include Adam Back, Nick Szabo, and the late Len Sassaman. Memecoins have emerged honoring these cryptographers, such as tokens named after Sassaman's cats.
Bitcoin is inching closer to $64K as optimism returns to the market. Solana's dominance in token launches highlights its growing influence in the blockchain ecosystem. The UAE’s tax exemption on crypto transactions and Hong Kong's plans to approve more exchange licenses show a continued global adoption of digital assets. As the market evolves, being informed and adaptable is crucial for investors and participants. Stay tuned for tomorrow’s newsletter to get the latest insights and updates in the market.
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