Jan 29, 2024

Weekly Crypto Recap (January 22nd-28th)

Here's a weekly recap from Metaverse.SG and the most notable crypto events this week were:

  • SaVM Saga

  • Tornado Cash Devs Under The Court 

  • Points Program From Rabby wallet 

  • OKB Short Term Drop 

  • KelpDAO Introduces rsETH

Let’s dive headfirst into the main crypto news of this week!

SaVM Saga

● Introduction:
The saga surrounding the SatoshiVM (SaVM) token has been gaining significant attention this week in the cryptocurrency community, especially given the recent allegations and counter-claims involving the Ape Terminal platform and the crypto educator MacnBTC.

● Raised Сoncerns:
A wallet linked to the SatoshiVM team reportedly received millions of SAVM tokens, which were then distributed and sold in large amounts. This raised concerns about a potential "pump-and-dump" scenario, a situation where developers hype a cryptocurrency project and then sell off their holdings for a profit, leaving other investors with devalued assets​​.

● Ape Terminal’s Manipulation: 

The controversy intensified with MacnBTC's allegations against Ape Terminal. He accused Ape Terminal of manipulating the outcome of several Initial Dex Offerings (IDOs) to benefit its own team members and misappropriating a 25% fee from these transactions. This manipulation, as alleged, not only compromised the fairness of token distribution but also the integrity of the decentralized ethos of the crypto space. MacnBTC supported his claims with blockchain transaction data​​. 

● Radical Twist:

 In response, Ape Terminal refuted these allegations, asserting that MacnBTC was the actual founder of SatoshiVM and accusing him of exploiting the community for personal gain. They claimed that MacnBTC had a significant role in the project and was involved in manipulating token sales for his advantage. Ape Terminal also disputed the claim about retaining a 25% fee, stating that all fees from SAVM token sales were transferred to MacnBTC

Tornado Cash Devs Under The Court

● Massive Laundering:

 This week, the Tornado Cash story has developed significantly with new legal challenges and implications for the cryptocurrency world. Tornado Cash, a virtual currency mixer, was sanctioned by the U.S. Treasury in August 2022 for its role in laundering over $7 billion in virtual currency since 2019. This included substantial amounts stolen by the Lazarus Group, a hacking group sponsored by North Korea, as well as funds from other major heists like the Harmony Bridge and Nomad Heists​​.

● Asking for The Support:

Recently, Roman Storm, one of the co-founders of Tornado Cash, has publicly asked for support ahead of his trial in the United States. Storm, who was arrested last year, faces charges of laundering $1 billion in criminal proceeds. He expressed his fears about the trial's outcome and its potential impact on the future of digital assets and financial privacy. Storm's case is seen as setting a major precedent for the crypto industry, particularly concerning the legal responsibilities of software developers and the privacy protocols they create​​.

● A Lot of Charges:

Moreover, both Roman Semenov and Roman Storm, co-founders of Tornado Cash, have been indicted by the United States for their involvement with the platform and related money laundering activities. The charges include conspiracy to commit money laundering and sanctions violations. While Storm has been arrested in the United States, Semenov, a Russian national, remains at large. 

Points Program From Rabby wallet

● The Launch:

The Rabby wallet, a Web3 wallet developed by DeBank and launched in 2021, has recently introduced a points program aimed at incentivizing usage of its browser extension and desktop app. This program is designed to reward users for engaging with the wallet and its features.

● Details of The Program:

Under this new points program, initial points have been allocated to all Ethereum addresses. Users can claim these points by installing the Rabby wallet, importing their existing wallets, and completing a gasless transaction. This system is part of Rabby's strategy to attract users and encourage the use of its services over competitors like Metamask. In fact, Rabby is offering up to 12,000 bonus points for users who have used Metamask Swap in the past 12 months. The program also allows users to earn daily points through various activities, such as referring friends, swapping, and utilizing Rabby’s gas top-up feature. 

OKB Short Term Drop

● The Main Story:

The OKB token, native to the OKX cryptocurrency exchange, recently experienced a significant price drop. It underwent a flash crash, plummeting by nearly 50% in just a few minutes. The price fell from $46.8 to a low of $25.1 before making a recovery. This sudden drop resulted in a brief plunge of $6.5 billion in the token's market capitalization.

● Why Did It Happen:

The cause of this dramatic price movement was attributed to a series of large leveraged positions being liquidated one after the other, after the cryptocurrency’s price hit a certain point. This initiated a cascade effect, triggering further liquidations in pledged loans, leverage transactions, and cross-currency transactions, which contributed to the rapid decline in OKB's price.

● Announce From OKX:

In response to this event, OKX announced that they would fully compensate users for additional losses caused by the abnormal liquidation within a 72-hour period. This decision was made as part of their commitment to their users and in recognition of the unexpected nature of the price fluctuation.

KelpDAO Introduces rsETH

● Revolution of Liquid Restaking:

KelpDAO's introduction of rsETH marks a significant advancement in the realm of liquid restaking. rsETH, a Liquid Restaked Token (LRT), has been designed to offer users a seamless experience in managing their restaked Ethereum assets. This innovative solution allows for easy access to restaking rewards along with instant liquidity and DeFi composability, making it a versatile tool for cryptocurrency enthusiasts. KelpDAO currently supports tokens like stETH and ETHx, with plans to include other LSTs in the future.

This was the Metaverse.SG team! Don't forget to subscribe and see you next week!

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