Welcome to Barmy’s Daily Crypto News – November 24th, 2022
1.OKX launches Proof of Reserves page
In order to ensure its reserves are solvent, the cryptocurrency exchange OKX has made available a Proof of Reserves page for users to inspect. This occurs at a time when cryptocurrency exchanges are being examined more closely following the demise of FTX. Both on its blog and in a tweet, OKX announced the launch of the new page.
Users have two ways to check the exchange’s reserves on the Proof of Reserves page. Users can quickly review the exchange’s current reserves and liabilities for its leading three cryptocurrencies— BTC, ETH, and USDT—by using the first option.
“View my audit” is the second option. The user can log in and view a snapshot of the sums they have on deposit at the exchange. Unless the user has taken out margin loans, the company stated that these balances should match those displayed on the asset overview page in the app’s dashboard.
2. Bo Shen – Chinese VC suffered devastating hack valued $42M
Bo Shen, managing partner of the Vitalik Buterin-advised venture capital fund Fenbushi Capital, said in a fresh tweet on November 23 that $42 million worth of funds were taken from his Trust Wallet on November 10. Shen, who was born in China but now resides in Atlanta, claims that the money was his own property and that no Fenbushi-affiliated companies were harmed by the scam.
Later today, blockchain analytics company SlowMist confirmed the exploit and stated that “mnemonic words compromise” was the cause of the theft. The company also revealed that Shen’s accounts were depleted of 38,233,180 USD Coin (USDC), 1,607 ETH, 719,760 Tether (USDT), and 4.13 Bitcoin. Later, the stolen money was transferred to the exchanges ChangeNow and SideShift.
3. DeFi protocol raises $10M from Bitfinex
As investments continue to uncover projects with promise, the current bear market in cryptocurrencies has shown itself to be a builders market.
For the creation of its new protocol, Onomy, an ecosystem built on the Cosmos blockchain, has lately received millions from investors. The project combines the foreign exchange market and decentralized finance (DeFi) to bring the latter on-chain.
The most recent investment round, according to the developers, received $10 million from major industry participants including Bitfinex, Ava Labs, the Maker Foundation, CMS Holdings, and others.
The fundamental purpose of creating a decentralized autonomous organization with a public infrastructure, according to Onomy co-founder Lalo Bazzi, should support the “basic tenant of crypto — self-custody” without compromising the user experience.
Due to the FTX liquidity-bankruptcy scandal, DeFi and self-custody have both been hot topics in the cryptocurrency community. One of the most important lessons to learn from the situation, according to some experts, is the value of DeFi platforms as opposed to centralized gatekeepers.
4. The Bank of Japan (BoJ) continues experimenting with digital yen with three megabanks
The Bank of Japan (BoJ) is still testing a prospective digital yen despite Japan’s uncertainties on whether to issue a central bank digital currency (CBDC).
According to a Nov. 23 article by the regional news agency Nikkei, the Japanese central bank has begun working with three megabanks and regional banks to execute a CBDC issuance trial.
The pilot program aims to offer demonstration tests for the issuing of the digital yen, Japan’s national digital currency, beginning in the spring of 2023.
The BoJ is anticipated to work with significant private banks and other organizations as part of the trial to identify and address any problems relating to consumer deposits and withdrawals from bank accounts. The pilot will, according to the report, test Japan’s potential CBDC’s offline functionality, focusing on payments made without the use of the internet.
5. Bukele’s government introduced the construction of a “Bitcoin city.”
El Salvador finally took a significant step toward the implementation of its grandiose “Bitcoin bonds” concept during the recent decline in the cryptocurrency market. A law was submitted by the Minister of the Economy, Maria Luisa Hayem Brevé, reaffirming the government’s intention to generate $1 billion and use it to build a “Bitcoin city.”
The digital securities bill implores legislators to develop a legal framework for using digital assets in El Salvador’s public issuances. The obligations of issuers and asset providers should also be taken into account, along with all other requirements for this process.
The administration of Nayib Bukele first issued “volcano bonds” or “Bitcoin bonds” in 2021. A “Bitcoin city” was to be built at the foot of the Colchagua volcano according to the initial plan, which called for issuing about $1 billion worth of those bonds. According to legend, the city would be the ideal location for cryptocurrency mining thanks to the volcano’s hydrothermal energy. The majority of the monies raised would still be put into Bitcoin directly.
The project has seen multiple delays over the past 12 months. At one point, its launch phase was slated to begin in March, but it was later moved to September and then again for “security reasons.” Some sources claim that the legislation might be approved by lawmakers before Christmas.
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