🤖 Bot borrows $200M to make $3 profit - stupid or smart?

Markets

XRP Drops 5% as Markets Digest Hinman Documents, SEC Court Case (2 minute read)
Ripple and the XRP token have faced a tumultuous week amid their legal battle with the SEC. XRP has dropped 4.6% in the past 24 hours, now trading at $0.50, following the release of the Hinman documents. Ripple aims to challenge the SEC's claims of selling unregistered securities by utilizing a 2018 speech by former SEC Director Bill Hinman that emphasized Ethereum's decentralized nature. Seeking the release of the Hinman documents, Ripple believes they could help refute the security label and sway the outcome of the case.

Binance applies to deregister its local entity in Cyprus (2 minute read)
In a surprising move, crypto exchange Binance has applied for deregistration in Cyprus, as stated on the website of the Cyprus Securities and Exchange Commission. The exact timing and reasons behind this decision remain unclear, as Binance has yet to comment on the matter. This development comes on the heels of the recent lawsuit filed against Binance and its U.S. counterpart, Binance.US, by the United States Securities and Exchange Commission, alleging violations of securities laws.

SEC responds to Coinbase’s second request for action: ‘Still no’ (3 minute read)
In response to a court's request for clarity within a seven-day deadline, the SEC has issued a statement regarding Coinbase's case against the commission, not the SEC's own lawsuit against the crypto exchange. The regulatory agency stated that the "mandamus petition should be denied," which is a legal action to compel a government agency to fulfill its duties. The SEC's lawyers emphasized that they have not yet made a decision on the petition in its entirety, as it was filed relatively recently and supplemented by Coinbase. However, they assured that the Commission's staff aims to provide a recommendation on Coinbase's rulemaking petition within the next 120 days. It seems the wheels of progress are turning, albeit at a measured pace.

Tech

Itoka wants to license AI-generated music via the blockchain (4 minute read)
AI-generated music is on the rise, with tools like Meta's MusicGen allowing users to create impressive songs across various genres without musical skills or sheet music. However, the use of existing song databases to train these tools has sparked copyright concerns in the music industry. Universal Music Group has criticized AI-generated music using artists' voices as "fraud," while musician Grimes supports its use. Startups like Itoka are proactively proposing blockchain-based solutions to tokenize and license AI-generated music, ensuring fair compensation for creators. Efforts are being by various parties to strike a balance between the creative potential of AI music and the protection of intellectual property rights.

Someone Flash Loaned $200M From MakerDAO to Make $3 Profit (2 minute read)
An arbitrage bot utilized a flash loan from MakerDAO, borrowing $200 million worth of the DAI stablecoin, and managed to make a profit of $3.24 after factoring in transaction fees. The bot leveraged MakerDAO's 'DssFlash' contract, which allows users to borrow DAI without incurring fees. Crypto data provider Arkham Intelligence highlighted this intriguing maneuver. Flash loans are unique as they are received and repaid within a single block, without requiring any upfront collateral. In this case, the bot borrowed 200 million DAI tokens, supplied them to the Aave DAI market, and borrowed $2,300 worth of wrapped ether (WETH) against it.

Misc

Crypto.com to Shut Down U.S. Institutional Services After SEC Lawsuits Target Industry (2 minute read)
Crypto.com, the Singapore-based cryptocurrency platform, has announced that starting June 21, it will be discontinuing its institutional services in the United States. The decision comes as a response to the "current market landscape" where the company has observed "limited demand" for its institutional offerings. The recent regulatory scrutiny faced by major crypto exchanges like Binance and Coinbase from U.S. regulators likely influenced Crypto.com's move to deprioritize and temporarily halt its institutional services for American clients. However, the company assures that its retail trading app, including UpDown Options will continue to be available. 

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