Daily Crypto News | August 18th, 2022

Welcome to Barmy’s Daily Crypto News – August 18th, 2022

1. The Phantom wallet app has launched a new Burn Token feature.

The new function, which allows users to get a tiny deposit of Solana (SOL) each time they use it, is accessible via the Burn Token button in the Phantom wallet app, according to a blog post from the Phantom team on August 18.

Phantom is one of the most well-liked wallet providers for Solana-based NFTs and decentralized fiance (DeFi), with more than 2 million active users each month according to the company,

The recipient of spam NFT is typically instructed to click a link to generate a free NFT, but if they do so, their wallet is really depleted of funds. As an alternative, the link will request the recipient’s seed phrase, which will have the same effect.

The action is a part of a larger Phantom initiative to counter spam NFTs and bad actors in the market. By alerting users to “any malicious transactions that could compromise their assets or permissions” after clicking on dubious links, the team claimed to be fighting scammers as well.

2. Korean police seize crypto for unpaid traffic fines in trial.

Gunpo, a city  close to Seoul, around 275,000 people in the northwest Gyeonggi province of South Korea, has been successfully running a trial program that enables police to take cryptocurrency from the exchange accounts of those with unpaid traffic fines.

Gunpo police achieved an 88% collection rate on traffic penalties totaling $668,000, putting the city on pace to greatly exceed its goal of pursuing $759,000 in traffic fines by the end of the year. This indicates that the program looks to have been successful, at least in the first half of 2022.

While crypto seizures were only used as a last resort if an individual’s bank accounts had run out of money, the trial only saw unpaid fines reaching an excess of around $759 from one person who was subject to crypto seizures by the police.

Although the report did not specify which cryptocurrency would be seized and sold to pay fines, it is clear that the Korean crypto market is a lucrative one for law enforcement to extract fines from. In 2021, the market was worth $45.9 billion.

3.European Central Bank addresses guidance on licensing of digital assets.

The criteria that the European Central Bank, or ECB, would take into account when standardizing the licensing regulations for cryptocurrency throughout Europe, was established. The ECB will specifically take into account the corporate governance, business models, and “fit and appropriate” determinations used to license other companies of crypto enterprises.
The ECB announced that it would evaluate license requests for crypto-related activities and services using standards from the Capital Requirements Directive, which has been in operation since 2013.

The central bank will specifically take into account the internal governance of crypto firms, their business strategies, and “fit and proper” assessments that are used to license other companies. Furthermore, the ECB declared that it will rely on national Anti-Money Laundering (AML) agencies and the financial intelligence units of the relevant nations to supply the information required to evaluate potential risks.

The role that cryptocurrencies might play in Europe is now being studied, according to the ECB, and will “remain a focus for European banking supervision in years to come.” Global regulators may start to harmonize rules for crypto service providers within the European Union with the passage of MiCA.

4. Lido Finance ft. KyberSwap Elastic: $120,000 in Liquidity Mining Rewards on Polygon.

In order to improve the liquidity farming on Polygon, Lido Finance, a massive Ethereum staking project, will collaborate with KyberSwap Elastic, the most recent KyberSwap protocol. A tick-based AMM called KyberSwap Elastic offers Liquidity Providers the benefits of focused liquidity as well as the flexibility to maximize capital efficiency and control risks.

The biggest Ethereum staking platform is called Lido Finance. Lido Finance, which combines DeFi and CeFi, gives stakers the ability to spend their staked assets across their supported networks, including Ethereum, Solana, Polygon, and Polkadot.

With more incentives to come soon, the partnership’s first phase project is expected to reward liquidity providers with over $120,000 in liquidity mining prizes.

5. Ethereum Foundation: The Merge Will Not Improve Fees and Throughput.

Ethereum Foundation yesterday stated that: ‘Gas Fees Are a Product of Network Demand’ which means the Merge does not significantly change any parameters that directly influence network capacity or throughput.

This is raise the awareness of that while The Merge will transition from PoW to PoS, assumptions that fees will drop are false. The statement was added to the foundation’s definition and summary of The Merge hosted on ethereum.org. At the meantime, statistics show the average network fee today is 0.0012 $ETH (about $2.28 per transfer). Etherscan.io’s Gas Tracker is even lower showing a high fee is around 22 gwei or $0.85 per transaction.

An Opensea marketplace sale is $2.90, a Uniswap swap is $7.47, and transferring an ERC20 like tether (USDT) is $2.19 per transfer on Wednesday. L2 fees are the lowest on Loopring and Zksync as costs can range between $0.04 to $0.06 to send ether.

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