Australia has an answer for crypto

Good morning! Welcome to The Daily Moon. Coinbase is a gift that just keeps giving. Not. We’ve told you how the company has fallen into troubled waters over the last year. Now a new class action lawsuit has alleged the crypto exchange failed to secure customer accounts properly and left them vulnerable to unauthorised transfers. A class act gone wrong, perhaps?

The markets were green Tuesday, with Bitcoin trading up 0.71%, and Ethereum above $1,600. Nasdaq was up in early trade. Back home, the markets pared Monday’s losses even as the overall sentiment was muted on global cues.

Australia Crafts The Map

The Australian government is finding a way to regulate crypto. Lawmakers are toying with the idea of mapping the entire Australian crypto market so it can be understood and regulated. This will be the first regulation of its kind in the world and may lay the groundwork for many other countries to follow its path. So, let’s break down what token mapping really means. 

Down under

The regulation is still in the consultation phase and the government is inviting suggestions, after which a paper will be released. But the objective is to:

1. Create definitions that help consumers understand the token. 

2. Chart out the characteristics of each token so investors can make informed decisions. 

3. Map the underlying code so regulators can monitor them better. 

The Australian central bank is also going to start a ring-fenced pilot to try out a digital currency. 

In Seoul

Meanwhile, in South Korea, Samsung, along with a few others, is planning to start a crypto exchange. Unlike the one owned by a single company, this will be owned by a collective to trade digital assets and will have its own goals as well. 

Around the world

The EU has taken a step closer to banning dollar-pegged stablecoins in the 27 member countries. The indication is that any stablecoins pegged to a foreign currency may not be allowed. The Terra collapse has left a mark.

Inside Acala’s $3b Hack

The recent attack on the DeFi platform Acala raised a question: what happened to the audits? Well, it turns out the audits went according to plan, but the fault lay with a liquidity pool protocol. That led to the $3 billion hack. 

What happened?

The culprit was a misconfiguration in one of Acala’s liquidity pools, which originated from a protocol called the Honzon protocol. 

FYI: Liquidity pools are digital assets where cryptocurrencies are swapped according to an equation instead of a conventional order book. 

This equation allowed 3.02 billion new Acala USD (aUSD) stablecoins to be minted. This drove down the price waaaay lower than the intended $1 each. 

Where does that leave things?

So about 2.97 billion of the mistakenly minted 3.02 billion aUSD were recovered, and another 1.29 billion aUSD were burnt. Transfers of the remaining 1.7 billion aUSD are on pause.

Lending A Disaster

It would suck to be a crypto lender and while the Terra-led contagion has largely been contained, some remnants of the collapse still remain. And finally, there could be closure. 

Going, going, gone

BlockFi is headed to an acquisition, and it seems it could be for a bargain basement of $15 million. Sam Bankman-Fried’s FTX is going to finally acquire the beleaguered lender. This number could go up if BlockFi hits its targets. Not too long ago, SBF was offered the company at a valuation of up to $240 million. 

Crazier daysCelsius, another lender in the middle of bankruptcy proceedings, has denied that it doesn’t have enough working capital to last out the year. 

Another one?

NFT lending platform BendDao is running out of capital. With ETH dropping, its reserves are dangerously low. 

Chingaari Lights NFT Marketplace

Remember the GARI token that India’s short-video app Chingari launched last year? Well, it turns out it has decided to take things one step further. On Tuesday, it announced a video NFT marketplace called “Creator Cuts”. 

What is it?

It is claiming to be a first-of-its-kind v-NFT marketplace. Every video will have a unique price assigned to it, based on creator activity on the app. 

Setting the base

ICYMI but Chingari has been upping its GARI token game. In June this year, it said it will start paying its creators in the GARI token from a daily pool of 50,000 tokens. As of Tuesday evening, the GARI token was trading at $0.0726. 

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Who are we? There is a lot happening in our world. Everything has layers, and each layer has to be carefully peeled so you, the reader, know how the world of money is changing every day. That’s our promise. Help you unpeel the onions, which are the public markets in the US, India, and crypto, so that you know just a little more.