LianGuai Daily | BlackRock Clarifies Rumor about Proposed Launch of XRP Spot ETF; BC Technology Group Secures HKD 710 Million Strategic Investment

Breaking News LianGuai Daily | BlackRock Addresses Speculation on XRP Spot ETF; BC Technology Group Receives HKD 710 Million Strategic Investment

Today’s headlines:

BlackRock: No plans to launch XRP spot ETF, online circulated regulatory documents are forged

Licensed trader OSL’s parent company BC Technology Group receives strategic investment of 710 million Hong Kong dollars from BGX

Reddit administrators plan to abandon MOON contract for complete decentralization, MOON’s 24-hour growth exceeds 155%

Six Coinbase employees file lawsuit, requesting review of Tornado Cash being included in sanction list

Vitalik: Plasma is an underestimated design space, proof-of-effectiveness could solve its challenges

Blockchain payment company Fnality raises $95 million, led by Goldman Sachs and BNP Paribas

OpenAI CEO: Next-generation AI model GPT-5 is in training, needs more data

FTX deposits $24 million worth of SOL, MATIC, and ETH into Kraken and OKX

Regulatory news

APEC Finance Ministers’ Meeting to discuss digital assets, covering unsecured encrypted assets, stablecoins, and central bank digital currencies

The week-long Asia-Pacific Economic Cooperation (APEC) summit opened in San Francisco on November 11. US Treasury Secretary Janet Yellen stated in her opening remarks at the finance ministers’ meeting on November 13 that they will discuss “long-term areas of priority,” with a focus on sustainability. They will also hold two meetings to discuss supply-side economics and digital assets. Yellen specifically mentioned unsecured encrypted assets, stablecoins, and central bank digital currencies. Yellen said, “Sharing insights and working with the private sector allows us to gain a deeper understanding of the tools available to policymakers to responsibly develop and use digital assets.”

South Korean Financial Supervisory Service starts planning cryptocurrency listing and delisting guidelines

The Financial Services Commission of South Korea recently established a task force (TF) for virtual asset listings and began discussing the “regulatory standards (guidelines) for listing, maintaining listing, and delisting.” The task force includes financial authorities, public and private sectors, and external experts. Officials from the Financial Supervisory Service stated: “We plan to reach a conclusion and report to the parliament in the months leading up to the implementation of the Act on the Protection of Asset Users at the end of next July,” and added: “We will study how to take measures to enhance the effectiveness of standards (under the supervision of financial authorities) and ensure that the industry can protect itself through self-regulation.”

Court issues protective order regarding material disclosure in SEC vs Binance lawsuit

The U.S. court has approved a protective order that will govern the production, use, and disclosure of all information and materials provided by either party in the lawsuit filed by the SEC against Binance and its CEO, Changpeng Zhao. Previously, both the SEC and Binance had requested the court to seal the evidence. Therefore, according to the court’s ruling, some of Binance’s financial information and trade secrets may be kept confidential.

According to the court order, either party may designate discovered materials as confidential if they have a good faith belief that the material is confidential information and at least falls within one of the categories described by the court. Some of these categories include: (1) non-public business secrets, proprietary information, and financial information, including profit reports or estimates, percentage fees, design fees, royalty fees, minimum guarantees, sales reports, and sales profits; (2) non-public materials relating to ownership or control of any non-public company, including non-public customer information.


OpenAI CEO: Next-generation AI model GPT-5 is currently in training and needs more data

According to an interview with OpenAI CEO Sam Altman in the UK’s Financial Times, he revealed more about OpenAI’s future plans. Altman stated that the company is developing the next-generation AI model, GPT-5. However, he did not commit to a release schedule. Altman mentioned that this will require more data for training, which will come from publicly available datasets on the internet as well as the company’s proprietary data. OpenAI recently put out a call for large-scale datasets, particularly those that are not readily available on the internet today, specifically for long-form writing or any format of dialogue.

Altman also mentioned that OpenAI, like most other large AI companies, uses Nvidia’s advanced H100 chips for training its models. He noted that there has been a “severe shortage” in the supply of Nvidia’s chips this year. However, with other companies like Google, Microsoft, AMD, and Intel preparing to release competitors’ AI chips, the dependency on Nvidia may not last much longer.

In addition, although OpenAI has achieved consumer success, Altman stated that the company is seeking progress in building artificial general intelligence. He believes that large language models (LLMs), which support ChatGPT, are “one of the core components of building AGI, but there will be many other parts on top of it.” He also emphasizes the importance of language as a form of information compression, which he considers to be a factor that companies like Google DeepMind have overlooked.

Project Updates

BlackRock: No plans to launch XRP spot ETF, online leaked regulatory documents are forged

In response to previous news about “BlackRock applying to register iShares XRP Trust in Delaware,” a spokesperson for BlackRock stated that the leaked regulatory documents online are forged and that BlackRock has no plans to launch an XRP spot ETF. The price of Ripple’s XRP coin briefly rose by over 10% after the fake news spread, but it has since fallen back to around $0.65. BlackRock had previously submitted applications for Bitcoin spot and Ethereum spot ETFs to the U.S. Securities and Exchange Commission (SEC). Before submitting the applications to the SEC, BlackRock first registered the related ETF in Delaware.

Hong Kong-listed company Boyaa Interactive requests shareholder approval for “plan to purchase up to $100 million worth of cryptocurrencies”

Boyaa Interactive, a company listed on the Hong Kong Stock Exchange, has issued an announcement to shareholders stating that the board of directors believes that purchasing and holding cryptocurrencies is an important initiative for the group’s business layout and asset allocation strategy in the Web3 field. After careful consideration, the board of directors recommends seeking prior approval from shareholders to grant purchasing authorization, empowering the board of directors to make potential cryptocurrency purchases during the authorization period, which is 12 months from the date of the special shareholders’ meeting approving the general resolution on the authorization and potential cryptocurrency purchases, with a total purchase amount not exceeding $100 million.

Previous news from August, Hong Kong-listed company Boyaa Interactive announced that the board of directors has approved a budget of $5 million (approximately HKD 39.098 million) for the group to purchase cryptocurrencies on regulated and licensed trading platforms within the next year, primarily including Bitcoin (BTC) and Ethereum (ETH), to promote the company’s future business layout in the Web3 field. Boyaa Interactive also revealed that the funds for this purchase will come from the group’s cash reserves generated from operations in Hong Kong and overseas, and the purchase of cryptocurrencies will be executed at the discretion of market conditions and will strictly comply with the regulatory policies of relevant jurisdictions regarding cryptocurrencies.

Solana-based real estate platform LianGuaircl launches V3 version

Solana-based real estate platform LianGuaircl has launched its V3 version, which introduces scalable liquidity pool models, implements a cross-margin system, and enhances risk management, among other features.

May 2021 news, Solana-based real estate platform LianGuaircl announced the completion of a $7.5 million strategic financing round with participation from Archetype, Dragonfly, NotBoring, Solana Ventures, FJLABS, Fifth Wall, JAWS (Barry Sternlicht), Hack VC, IA Capital & Eberg Capital, BigBrainHoldings, and angel investor Santiago Santos.

June 2021, virtual real estate market LianGuaircl raised $4 million in seed funding with Framework Ventures as the lead investor, along with participation from Fifth Wall, Blizzard Fund (Avalanche), AVIV Group, Stake Capital, AppWorks, InterVest, Contents Technologies, Serafund, Sky9 Capital, and Great Oaks Venture Capital.

HashKey Exchange to launch Lido DAO (LDO) for professional investors

According to an official announcement, HashKey Exchange will launch Lido DAO (LDO) for professional investors. User deposits and withdrawals are now open, and LDO/USD trading pairs will be available from 16:00 Beijing time on November 16. Professional investors, as defined by the Securities and Futures Commission (SFC) of Hong Kong, refer to high-net-worth individuals with investment portfolios of no less than HK$8 million.

Six Coinbase employees file lawsuit in court, requesting review of Tornado Cash’s inclusion on sanctions list

According to court documents, six employees of Coinbase (Joseph Van Loon, Tyler Almeida, Alexander Fisher, Preston Van Loon, Kevin Vitale, and Nate Welch) have submitted the case of the U.S. Treasury’s inclusion of Tornado Cash on the sanctions list to the Fifth Circuit Court of Appeals for review.

In September 2022, six individuals, including two Coinbase employees, filed a lawsuit in the Western District Court of Texas against the U.S. Treasury’s decision to include Tornado Cash on the sanctions list, with financial support from Coinbase. The plaintiffs in this lawsuit claim that this action exceeded the authority of the Treasury Department, resulting in personal assets being locked in Tornado Cash and impairing the rights of users seeking to protect their privacy. They are requesting that the court remove Tornado Cash from the Treasury’s sanctions list. In April 2023, the plaintiffs filed a motion for a simple judgment. In August 2023, in the Coinbase-backed lawsuit regarding Tornado Cash sanctions, Judge Robert Pitman issued a document in the U.S. District Court stating that he denied in part the plaintiffs’ motion for a simple judgment. The court determined that Tornado Cash is an association in the ordinary sense and therefore an entity that can be designated under OFAC regulations.

Binace will launch MBL 1-50x U-based perpetual contract

According to the official announcement, Binace will launch MBL 1-50x U-based perpetual contract on November 14, 2023 at 23:00 (GMT+8). When MBLUSDT perpetual contract is launched, its funding rate upper limit and lower limit will be +2.00% / -2.00%; funding fees will be settled every four hours.

Reddit admins plan to decentralize MOON contract, MOON 24-hour increase over 155%

According to Decrypt, the mod team of Reddit’s r/CryptoCurrency community has stated that they plan to impose hard restrictions on the supply of native token MOON in the future. Reddit admins will abandon the MOON token contract and it is expected to be completed by the end of this month. This process will mean that no new MOON tokens can be created, and after the contract is sent to the burn address, the MOON tokens will become “completely decentralized”. The moderators clarified, “In fact, no one will control the contract, including Reddit or the mod team.” All the MOON stored in the community will be burned, reducing the total supply of MOON to over 83 million. As a result, the token will no longer have inflationary properties and if MOON is burned in the future, it will become deflationary.

The mod team announced that they will “work with the community to develop the future plans for Moon”, including distributing the remaining MOON in the community wallet and deciding whether to burn or distribute MOON from ad banner leasing and AMAs conducted by the community. The mod team will “continue to develop bots and use available APIs to enhance the utility of MOON”, including a genius bot that can display the total number of MOON holders in r/CryptoCurrency and a bot for tipping MOON to other users.

According to Coingecko, the price of the MOON token is now $0.1302, with a 24-hour increase of 155.1%. Earlier on October 18, news broke that Reddit shuts down blockchain-based community point program.

Vitalik: Plasma is an undervalued design space, validity proof can solve its challenges

Vitalik Buterin, co-founder of Ethereum, wrote an article today titled “Exit Games Verified by EVM: The Return of Plasma”. The article states that Plasma is a type of blockchain scaling solution that greatly improves the scalability of the blockchain, no longer limited by the availability of on-chain data. Plasma was first invented in 2017 and underwent multiple iterations in 2018, but unfortunately, it has largely been replaced by rollups. The emergence of validity proofs (also known as ZK-SNARKs) can effectively address the biggest challenges that Plasma faces in terms of payments and client data storage. In addition, validity proofs provide a set of tools to help build a Plasma-like chain that can run the EVM. Although Plasma’s security guarantees cannot cover all users, in practice, a large portion of assets can still be ensured to remain secure through certain methods. While it is fundamentally impossible to extend Plasma-style exit solutions to a wide range of complex applications, its feasibility can still be explored and more efficient solutions can be sought to simplify the developer experience and protect user funds. This article reexamines the feasibility of Plasma and describes how to expand on the ideas of Plasma to achieve this goal.

Vitalik Buterin summarized that in 2023, Plasma is an underrated design space. While Rollups are still the gold standard with unparalleled security properties, the advantages of Plasma cannot be ignored from a developer experience perspective. Its simplicity allows application developers to not have to consider ownership graphs and incentive flows within applications, greatly simplifying the development process. At the same time, Plasma helps completely bypass data availability issues, effectively reducing transaction fees. For chains that were originally validators, Plasma provides an important security upgrade solution. And with the achievements of ZK-EVM this year, we have the opportunity to explore this design space again and propose more efficient structures to simplify the developer experience and protect user funds.

Funding News

Blockchain payment company Fnality raises $95 million in funding, led by Goldman Sachs and BNP Paribas

Blockchain payment company raised $95 million (£77.7 million) in a Series B funding led by Goldman Sachs and BNP Paribas. DTCC, Euroclear, Nomura Securities, and WisdomTree also participated in this round of funding. Several banks have also made further commitments to support Fnality’s $63 million financing in 2019, including Santander, Bank of New York Mellon, Barclays, CIBC, Commerzbank, ING, Lloyd’s Banking Group, Nasdaq Ventures, State Street Bank, Sumitomo Mitsui Banking Corporation, and UBS Group.

Fnality International CEO Rhomaios Ram said, “Our Series B funding represents the financial sector’s desire for blockchain-based settlement solutions with central bank funding support, which can bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi) in the wholesale market,” in a statement.

Previously reported, Japan’s banking giant Nomura Securities invested in London-based blockchain payment company Fnality.

South Korean Web3 K-Pop project Modhaus raises $8 million in Series A funding, led by Sfermion

Modhaus, a blockchain-based South Korean pop music start-up (Web3 K-Pop project), raised $8 million in a Series A funding round led by U.S. venture capital firm Sfermion. Investors participating in this round of funding also include SM Culture LianGuairtners, Laguna Investment, KDDI Open Innovation Fund III, and Foresight Ventures. The new funds aim to drive its development and introduce more blockchain-based use cases in the Korean entertainment industry.

It is reported that Modhaus was established in December 2021 and formed a girl group named TripleS through its NFT voting system, which has over 1.74 million subscribers on YouTube. Modhaus’ subsidiary, Cosmo, is a blockchain-based entertainment platform, where fans can purchase NFT photo cards and use them as voting tokens on the COSMO application.

Licensed trader OSL’s parent company BC Technology Group receives strategic investment of HKD 710 million from BGX

According to official sources, Hong Kong licensed virtual asset exchange OSL’s parent company BC Technology Group announced that it has received a strategic investment of approximately HKD 710 million from cryptocurrency group BGX. Yesterday, BC Technology Group issued a notice stating that trading on the Hong Kong Stock Exchange will be temporarily suspended starting from 9:00 on November 13, pending the announcement of a transaction that constitutes inside information.

Earlier today, it was reported that BC Technology Group sells 90% equity of its subsidiary Shanghai Jingwei for CNY 23 million and continues suspension.

Automatic stay between FTX and BlockFi lifted, allowing negotiations for claims and settlement

According to CoinDesk, Judge Michael Kaplan in the United States has ordered the termination of the automatic stay between bankrupt cryptocurrency companies FTX and BlockFi, which means that the two companies can begin negotiations for claims and settlement. The injunction has been modified to allow FTX debtors to “assert counterclaims, defenses, recoupments, setoffs, or other…” with respect to BlockFi claims in the FTX bankruptcy proceeding.

BlockFi filed for bankruptcy at the end of November last year, partly due to the ripple effect caused by the sudden crash of FTX earlier that month. This triggered the automatic stay, halting litigation between the two. It is estimated that BlockFi has frozen $355 million on cryptocurrency exchange platforms, and Alameda Research owes BlockFi $671 million.

Mining News

BitDeer mines 1,085 bitcoins in Q3 of this year, with total revenue of $87.3 million

BitDeer Technology Group (NASDAQ: BTDR) released its unaudited financial performance for the third quarter of 2023. The report shows that the company’s mining business mined 1,085 bitcoins in the third quarter, a 121% year-on-year increase. Total revenue was $87.3 million, a 14% increase compared to the same period in 2022. Net loss decreased from $22.1 million in the same period of 2022 to $18 million. Adjusted profit reached $10.5 million, compared to a loss of $4.1 million in the same period of 2022. Adjusted EBITDA was $28 million, an increase compared to $8.7 million in the same period of 2022. As of September 30, the company had cash and cash equivalents of $134.5 million and total borrowings of $22.6 million.

Important Data

The Sandbox genesis address transferred 20 million SAND, with 10 million transferred to Binance

According to the Chain Analyst Yu Jin, The Sandbox’s genesis address transferred 20 million SAND (approximately $8.8 million) three hours ago. Out of this, 10 million SAND was transferred to Binance, and 10 million SAND was transferred to an address starting with 0x73b.

FTX deposits $24 million worth of SOL, MATIC, and ETH into Kraken and OKX

As per Spot On Chain’s monitoring, FTX further deposited $24 million worth of three assets (25,000 SOL worth $13.5 million, 8.27 million MATIC worth $7.41 million, and 1,500 ETH worth $3.1 million) into Kraken and OKX within the last 5 hours.

In total, as of November 14th, FTX and Alameda have transferred 42 assets worth $438 million to exchanges. Currently, FTX only has liquidity for 3,408 SOL ($179,000). However, according to CoinGecko, they still hold 42.2 million SOL ($2.19 billion) in locked state. These SOL tokens will only start unlocking in the next year and will remain mostly frozen until 2027 or 2028.

PaiDun: FTX address transferred 1.19 billion SPELL to Coinbase Prime

According to PaiDun’s monitoring, the address associated with FTX transferred 1.19 billion SPELL to Coinbase Prime.

Storj team deposits 1.5 million STORJ (approximately $1.14 million) into Binance

As per Spot On Chain’s monitoring, the Storj team deposited 1.5 million STORJ (worth approximately $1.14 million) into Binance via GSR Markets. The price of STORJ has risen by around 65% in the past 7 days. During this period, the Storj team’s address has deposited 9.8 million STORJ (approximately $7.42 million) into Binance.

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