A Twitter hack, a new way to “yield farm” digital collectibles and why stablecoin use is on the rise in Hong Kong.
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Dissent & Stablecoins
Stablecoin usage has spiked in Hong Kong following the imposition of the national security law, which aims to quell opposition to China’s ruling class by giving the Communist Party power to freeze and confiscate assets from people or organizations. Crypto assets and encrypted communication tools are a way to resist financial surveillance and internet censorship. “Many people don’t believe they can trust the government or banks to keep their assets safe anymore,” said Brian Yim, a university student in the U.K. whose family is still in Hong Kong.
A Billion in Crime
Over $1.4 billion worth of cryptocurrency thought to be tied to Ponzi schemes, dark web transactions and hacks have moved onto global exchanges from January to June, according to blockchain analysis firm PeckShield. Huobi, Binance, OKEx, ZB, Gate.io, BitMEX, Bithumb and Coinbase were among the exchanges analyzed. “The problem of the inflow of tainted cryptos has not been entirely put under regulation with strict enforcement,” the firm wrote in the report. “So anti-money laundering is considered as an important issue and then there’s no real follow-up. … But it’s a matter of time, not if, [until] the regulatory hammer will come [down].”
The Bahamas’ central bank said it is “progressing” toward the full launch of a mobile phone-based digital currency (CBDC) it’s betting can withstand the battering of a Category 5 hurricane. The move comes in the wake of Hurricane Dorian last September, which devastated the island’s banking and financial infrastructure, according to the report. “Mobile phone coverage, by contrast, was generally restored within a few days after Dorian,” it said. The central bank’s CBDC effort, known as Project Sand Dollar, is currently in the testing phase on the island of Abaco.
Not a LEND, a Raise
Framework Ventures and Three Arrows Capital announced Wednesday a $3 million investment in Aave, the firm behind the third-largest lending platform in decentralized finance (DeFi). The two funds purchased Aave’s native LEND tokens directly from the company. LEND has appreciated 1,200% on a year-to-date basis. “We believe there will be a significant market shift of private borrow/lend activity moving to decentralized money market protocols,” Framework Ventures’ Michael Anderson said.
Farming Digital Collectibles
Rarible, a dapp that enables users to create and market non-fungible tokens (NFTs), will begin keeping track of all transactions on the site in order to reward users each week with its new governance token: RARI. Approximately 60%…