Trump’s Crypto Project, Solana vs. Ethereum Debate: Weekly Recap

Transcript

welcome to this week's crypto Roundup in today's recap we dive into Donald Trump's latest crypto Venture World Liberty financial and its ties to do Finance we also explore the heated debate between salana and ethereum communities over Network extensions and the sec's warning to FTX about repaying creditors with crypto plus will cover the Federal Reserves cease and desist order against United Texas Bank polygon's migration from mad to Paul and the challenges Bitcoin miners faced in August lastly we discussed the Wier X hack and a surprising marketing Stunt by near protocol thanks for tuning in to the Weekly News recap let's begin Trump backed defi project allegedly based on

doe finance code details have surfaced about Donald Trump's crypto project World Liberty Financial revealing that its foundation may be built on the code of defi protocol do Finance according to a coindesk report the project which involved Trump's Sons Donald Jr Eric and baron centers around a credit account system on the ethereum blockchain the project initially branded as the defiant ones has been shrouded in secrecy since it was first announced in late August however a white paper and a since deleted GitHub codebase indicate that the project closely mirrors doe Finance which suffered a $1.8 million hack in July despite these Revelations the team has yet to confirm if the final product

will incorporate Doe's code the project will also reportedly feature a non-transferable governance token called WLFI adding another layer of intrigue critics have raised concerns about the Project's transparency given its connections to a previously hacked platform and the involvement of several controversial figures in addition to the credit protocol World Liberty Financial has expressed a strong interest in driving the mass adoption of stable coins the project team has emphasized their commitment to security announcing Partnerships with top security firms such as zoko fuz land and PEX Shield according to a statement from the group The Project's code has undergone thorough reviews by these industry leaders to ensure user safety the trump-backed initiative aims to leverage

stable coins as a key component in its mission to revolutionize the defi space Solana's Network extensions stir debate among ethereum supporters a controversy has erupted between the salana and ethereum communities over Solana's introduction of network extensions which some argue are essentially layer 2 solutions by another name traditionally salana Advocates have criticized ethereum's modular approach of using layer 2 networks to scale its blockchain however salana is now embracing a similar concept though it avoids the L2 label calling these Technologies Network extensions instead this shift has sparked debate particularly among ethereum proponents who argue that l2s are not parasitic as some salana

supporters claim ethereum investor Ryan burkman's emphasized that l2s compliment ment the base layer rather than detract from it despite the rebranding the core functionality of these Network extensions seems similar to l2s Leading some in the community to see the distinction as mere semantics Solana's co-founder anat yakovenko defended the term arguing that Network extensions serve unique purposes such as specialized processing unlike ethereum's general purpose l2s SEC warns FTX on repaying creditors with crypto the US Securities and Exchange Commission has issued a warning to FTX in a recent filing signaling potential

opposition to the bankrupt exchanges plan to repay creditors using stable coins or other digital assets the SEC also expressed concerns about a discharge provision that could limit the future legal liabilities of the FTX estate during ftxs bankruptcy proceedings various strategies have been considered to maximize creditor recovery including proposals to restart the exchange or distribute claims as tradeable to tokens despite these discussions FTX under CEO John Ray III has rejected the idea of relaunching the exchange citing a lack of investor interest research firm split Capital suggested this week on X that FTX might ultimately inject around $1.5 billion back into the crypto Market however

split noted that this amount is significantly less than the $16 billion initially expected Federal Reserve issues cease and assist order to crypto-friendly bank the Federal Reserve has issued a cease and desist order against United Texas Bank citing significant deficiencies in its management of risks related to crypto customers and foreign correspondent banking an examination in May 2023 revealed shortcomings in the bank's governance particularly in its anti-money laundering compliance and oversight by its board and Senior Management the dallas-based bank which has ties to the crypto industry has agreed to the order and is now required to file a detailed action plan within 90 days to strengthen its AML programs 21 shares enters ethereum's wrapped Bitcoin

Market 21 Co the parent company of 21 shares has introduced a new wrapped Bitcoin token 21 BTC on the ethereum blockchain this move follows the earlier launch of 21 BTC on salana aiming to provide a secure alternative to existing options such as wrapped Bitcoin the launch comes as wbtc faces declining trust due to changes in its custodial Arrangements 21 Co says that 21 BTC is designed with enhan security measures and backed by institutional grade custodians positioning it as a more reliable option in the wrapped Bitcoin Market polygon begins migration from madic to pole polygon has started its planned migration from the madic token to the new Paul token as part of its

polygon 2.0 in road map the upgrade which began on Wednesday marks a significant shift in polygon's tokenomics introducing an annual inflation rate of 2% the new PE token will replace mtic as the native gas and staking token on the polygon POS chain and will play a central role in upcoming features such as the Ager and the polygon staking Hub set to launch in 2025 according to polygon lab CEO Mark Boon the migration allows for greater flexibility and Community involvement in the Network's growth and sustainability Bitcoin miners face toughest month since 2023 Bitcoin miners experienced their worst month in a year with August 2024

Revenue dropping to $851 million a 10% decrease from July this marks a 57.5% decline since March when minor Revenue peaked at $2 billion when Bitcoin reached all-time price highs the recent downturn has been attributed to the post having landscape which reduced block rewards by 50% severely impacting profitability despite a record high hash rate of 782.ersp.biz have also plummeted by nearly 45% since September 2023 wer users fa significant losses after $234 million hack users of the Indian crypto exchange was zerx are

expected to lose over 40% of their funds following a $234 million hack in July per a tech crunch report The Exchange now undergoing a restructuring process in Singapore has informed users that they may only recover between 55% and 57% % of their assets the hacker believed to be associated with North Korea's Lazarus group has started moving nearly $4 million in stolen ether using tornado cash to obscure the transaction Trail wazirx has requested breathing space from Singapore's high court to develop the fastest and most effective method for users to reclaim their remaining funds which will be distributed on a prata basis time for fun bits near protocols X

account hack turns out to be a marketing stunt on Wednesday near protocol's X account appeared to be hacked with the hacker posting a series of messages criticizing the crypto ecosystem the incident caused a stir as many believed the account had genuinely been compromised however it was later revealed that this so-called hack was actually a marketing gimmick by near protocol to promote their upcoming hackathon the account was even renamed scam as part of the stunt while some found the move clever others weren't so impressed calling it a cringe Fest on crypto Twitter love it or hate it the hackathon is now definitely on everyone's radar and that's all thanks so much for joining us today if you enjoyed this recap go to Unchained crypto.com that is unchain crypto.com

and sign up for our free newsletter so that you can stay up toate with the latest in crypto Unchained is produced by Laura Shin with help from Matt pilchard Wan aranovich Megan gavis Pam mumar and Margaret Korea the weekly recap was written by Hanan rovic and edited by Nelson Wang thanks for [Music] listening Unchained is now a part of the coindesk podcast Network for the latest in digital assets check out markets daily 5 days a week with host Noel aters follow the coindesk podcast Network for some of the best shows in crypto