📈 OnlyFans invests in Ethereum?!

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We reported on Friend.tech just last Monday, and now, barely a week later, people are already proclaiming its death. Yes, the world of crypto moves fast, but are these claims justified? It’s not just Friend.tech grappling with challenges; PayPal is also encountering hurdles with the adoption of its recently launched stablecoin, PYUSD.

In an unexpected turn of events yesterday, the parent company of OnlyFans disclosed its UK tax return, revealing that they are actively holding Ethereum.

Let's dive into the news!

Markets

Friend.tech pronounced ‘dead’ after activity and fees tank (3 minute read)
Barely three weeks since its much-anticipated launch, the decentralized social network Friend.tech finds itself labeled "life support" by critics due to a recent slump in crucial metrics like activity, inflows, and volume. Friend.tech had an electrifying beta debut on Coinbase’s layer-2 Base on August 11, stealing the spotlight a mere week later as its fees surged past $1 million in a 24-hour span on August 19, even overshadowing Uniswap and the Bitcoin network.However, these fees have taken a nosedive since then. The pinnacle of daily fees, a staggering $1.7 million on August 21, plummeted by over 87%, dwindling to around $215,000 by August 26, as reported by DefiLlama. Simultaneously, Friend.tech's transaction numbers also underwent a drastic decline of over 90%, tumbling from the peak of nearly 525,000 on August 21 to slightly above 51,000 on August 27, according to data from Dune Analytics as assembled by Crypto Koryo.

PayPal Stablecoin PYUSD Faces Low Demand (2 minute read)
PayPal's freshly introduced stablecoin, PYUSD, seems to have hit a stumbling block in its quest for popularity since its recent unveiling. Recent information from crypto data firm Nansen, highlights the tepid reception the coin has received: a mere handful of individuals are engaging with and retaining PYUSD in self-custody wallets. Further analysis by Nansen underscores a trend where smart money holders appear to be steering clear of the stablecoin, given that its issuer, Paxos, still maintains a firm grip on 90% of its total supply in custody. In contrast, centralized exchanges such as Kraken, Gate.io, and Crypto.com collectively hold 7% of the token's supply. Adding to the narrative, data illuminates that beyond the realm of smart contracts and exchanges, a mere 10 holders of the stablecoin possess balances exceeding $1,000.

Coinbase and Binance settlement with SEC is a good idea, analyst says (3 minute read)
Drawing parallels, Fineqia International's Matteo Greco notes that Bittrex's recent $24 million pact with the SEC reflects a similar situation currently involving Coinbase and Binance. As the SEC pursues separate legal actions against Coinbase and Binance for alleged securities law violations, Greco provides insight into how each company might navigate these challenges and whether the Ripple Labs case could offer some guidance for the crypto exchanges. Bittrex's resolution of charges related to unregistered securities accessible to U.S. investors prompts the question of whether Coinbase should follow suit. According to Greco, settling with the SEC stands as a prudent move whenever feasible, as it avoids protracted legal battles and the ensuing business uncertainty. He points to Ripple Labs' experience, where the lawsuit significantly impacted the firm and its native token, XRP, over the past years. Notably, prior to Bittrex's settlement, Kraken also reached a similar resolution, amounting to $30 million, pertaining to identical allegations.

Tech

FTX, BlockFi, Genesis Customer Data Compromised in Kroll Hack (2 minute read)
The bankruptcy woes of crypto exchange FTX, along with Genesis and lender BlockFi, have been exacerbated by a breach at Kroll, a third-party agent overseeing creditor claims for insolvent businesses. Thankfully, crypto account passwords and sensitive information remained untouched, providing a silver lining to the situation. However, customers have been cautioned to stay vigilant against potential scams involving impostors posing as participants in the bankruptcy process. While BlockFi acknowledged that certain client data under its purview had been accessed by an unauthorized third party via Kroll's platform, FTX reassured stakeholders that it's keeping a close watch on the unfolding events.

Shiba Inu’s Highly Anticipated Shibarium Bridge is Now 'Fully Functional' (1 minute read)
The eagerly anticipated token withdrawals from the Shibarium bridge have finally sprung to life, marking a turnaround from its initial launch that was marred by software glitches, leaving millions of dollars in a state of limbo within the network. In a recent update on Monday, developers announced that users can now smoothly retrieve their Shibarium ecosystem tokens, including shib (SHIB), leash (LEASH), wrapped ether (wETH), and bone (BONE). The withdrawal process is estimated to take anywhere from 45 minutes to 3 hours for the former tokens, while bone (BONE) withdrawals might extend to about 7 days. Notably, chief developer Shytoshi Kusama shared their commitment to preventing a recurrence of the previous outage and mentioned their collaboration with Polygon blockchain developers to iron out potential issues. Shibarium, a derivative of Polygon, operates with customized code inherited from its predecessor. As an Ethereum layer-2 network, Shibarium employs SHIB tokens as fees.

Misc

Sam Bankman-Fried's Defense Renews Push for 'Temporary Release' Ahead of October Trial (2 minute read)
Sam Bankman-Fried's legal team has taken a creative approach to ensure his active involvement in his defense, filing a motion seeking his "temporary release" from jail or, failing that, the opportunity for him to collaborate with his defense lawyers five days a week. The motion, filed on Friday, highlights Bankman-Fried's right to actively contribute to his defense strategy and cites the challenge that his current incarceration presents due to his reliance on online documents for case preparation. In a letter drafted by defense attorney Christian Everdell, the team emphasizes their belief that only temporary release will effectively address these concerns and protect Bankman-Fried's right to participate in his own defense

South Korean crypto exchanges must set aside $2.3 million in reserves starting September (2 minute read)
Prepare to see a change in South Korea's cryptocurrency landscape as crypto exchanges gear up to squirrel away a minimum of 3 billion won (approximately $2.3 million) in bank reserves, starting this September. This move is part of a broader effort by the country to bolster safeguards for consumers in the burgeoning crypto industry. Leading South Korean exchanges, such as Upbit and Bithumb, are reportedly aligning with the freshly minted regulations, outlined in the "Virtual Asset Real-Name Account Operation Guidelines" by the Korea Federation of Banks. These guidelines advocate for exchanges to stash away either 3 billion won or 30% of their daily average deposits in reserves, ensuring they can shoulder potential user damages in case of unexpected mishaps. Interestingly, there's a cap on the reserve size at 20 billion won.

OnlyFans parent company reports ether holdings, impairment loss (3 minute read)
Fenix International, the UK-headquartered parent company of the well-known content subscription platform OnlyFans, has playfully dipped its toes into the world of cryptocurrency by allocating a portion of its working capital into ETH. This move comes as Fenix International proudly announces crossing the $1 billion revenue mark for the first time. In its recently submitted financial statements up to November 30, 2022, and disclosed on August 24 via UK corporate registry Companies House, the company elaborated on its cryptocurrency venture, asserting its unrestricted ability to trade the newly acquired cryptocurrency assets.

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