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Good morning to one and all here in the crypto world. This is Tokengraph, your one-stop newsletter for all things Web3. Today, weāve got a wild lineup of stories from the past week ā so strap in, and letās get started!
On todayās agenda:
Desantis Makes Big Crypto Promises
Binance Denies Commingling of Funds
Dubai Is Getting a Bitcoin Tower
Shaq just Got Served
Pro Bowling Assoc. + AVAX NFTs?
And moreā¦
Ron DeSantis, Florida's incumbent governor, has officially declared his intention to run for President in the 2024 U.S. elections and, interestingly, has pledged his support for Bitcoin. During the Twitter Space broadcast that was used to make his announcement with Elon Musk, which attracted roughly 520,000 live listeners, DeSantis emphasized his commitment to ensuring Bitcoin's future.
Iām running for president to lead our Great American Comeback.
— Ron DeSantis (@RonDeSantis)
May 24, 2023
In the conversation moderated by venture capitalist David Sacks, DeSantis expressed his belief in the cryptocurrency, stating, "As president, we'll protect the ability to do things like Bitcoin." He acknowledged the risks associated with the digital currency but argued that Bitcoin investors are well-informed and capable of making their own decisions. He further defended the right of individuals to engage with Bitcoin, insinuating that the only reason politicians in Washington oppose it is their inability to control it.
Ron Desantis said that the only reason politicians in Washington hate Bitcoin is because they can't control it. He also said if elected he will protect your right to use Bitcoin.
I agree on point one, as for point two, never can trust what a politician says on the campaign trail
— Lark Davis (@TheCryptoLark)
May 25, 2023
He also indirectly referred to the ongoing jurisdictional disputes involving the U.S. Securities and Exchange Commission (SEC) and cryptocurrencies. Gary Gensler, the current SEC chair, maintains that his agency has regulatory power over the crypto industry. But DeSantis disagreed, pointing out that Congress hasn't specifically addressed cryptocurrencies, leaving regulatory bodies to operate based on their interpretations, which could stifle innovation and activity in the crypto sphere.
The Florida governor also predicted that if President Joe Biden were to secure another term in 2024, the regulatory measures under his administration would likely kill Bitcoin altogether.
šŗšø 2024 US Presidential Candidates on Bitcoin:
Pro-Bitcoin & Crypto:
DeSantis
Ramaswamy
KennedyAnti-Bitcoin & Crypto:
Biden
Trump— Altcoin Daily (@AltcoinDailyio)
May 26, 2023
Prior to his presidential campaign announcement, DeSantis had shown his support for cryptocurrencies by passing a bill in Florida that essentially goes against the concept of central bank digital currencies (CBDCs). This legislation restricts the use of a federal CBDC as well as foreign CBDCs.
Florida governor and presidential candidate Ron DeSantis warning about the dangers of central bank digital currencies and a cashless society
— Crypto Tea (@CryptoTea_)
May 26, 2023
The journey to the 2024 U.S. presidential election is still long, with DeSantis potentially competing against several others, including former President Donald Trump, in the first GOP presidential primary debate set for August.
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Binance, the world's leading cryptocurrency exchange, is facing serious allegations of mixing or "commingling" billions of dollars of its customer funds in 2020 and 2021, according to a new report from Reuters. The report, which refers to three anonymous sources, including one with purported direct knowledge of Binance's financial operations, maintains that the exchange employed the now-defunct Silvergate Bank to mix these substantial funds on an almost daily basis.
BREAKINGā¼ļø Crypto giant Binance mixed customer funds and company revenue in 2020-21, a former insiders say - Reuters
— RadaršØ (@RadarHits)
May 23, 2023
However, this isn't the first time Binance has been subjected to such significant accusations. Previously, Reuters has published reports suggesting the exchange's involvement in money laundering and peculiar monetary transfers. Binance has consistently disputed such claims. Responding to the latest allegations, Patrick Hillman, Binanceās chief communications officer, dismissed the contents of the report as false via a tweet. He questioned why a reputed news organization like Reuters would indulge in creating false narratives.
Itās also important to note that Reuters while reporting on the matter, couldn't independently authenticate the scale or frequency of the alleged transactions. Moreover, the outlet found no proof that Binance had lost any of the supposedly mixed funds.
Binance has refuted recent allegations of customer funds comingling made by a Reuters report and called a "1000 words of conspiracy theory."
— Cointelegraph (@Cointelegraph)
May 23, 2023
The controversy reportedly revolves around Binance USD (BUSD), Binance's own stablecoin. Allegations suggest that BUSD was employed to credit customers' accounts, giving the appearance that they were depositing actual U.S. dollars. Previously issued and backed by reserves maintained by the New York-based firm Paxos, BUSD hasn't been minted since the SEC delivered a Wells notice to Paxos, indicating its intention to initiate litigation for "violating investor protection laws."
The world's largest cryptocurrency exchange, Binance, commingled customer funds with company revenue in 2020 and 2021, in breach of U.S. financial rules that require customer money to be kept separate, three sources familiar with the matter told Reuters.
— *Walter Bloomberg (@DeItaone)
May 23, 2023
As of now, the market capitalization of BUSD stands at $5 billion, a stark drop from the $16 billion it held the day Paxos announced it would stop minting the stablecoin.
We are intrigued to see if anything comes of this ā Binance faces a lot of FUD (fear, uncertainty, and doubt) as a company, and much of it has no base; however, if there is a legitimate concern here, we hope itās brought to light as soon as possible.
In the world of blockchain, what does the term "Fork" refer to?
A. The splitting of a blockchain into two versions
B. A tool for mining cryptocurrency
C. The end of a blockchain
D. A type of smart contract
Scroll down to the bottom to see if you're right!
ā” Lightning Round: Weekly Updates
Real estate developer Salvatore Leggiero unveiled the design for the Bitcoin Tower at a private event in Dubai. Leggiero intends for the project to bridge his real estate expertise and interest in crypto. The structure will have a virtual counterpart in the metaverse, and potentially a DAO for community input.
Ā
Former NBA star Shaquille O'Neal is facing two class-action lawsuits for allegedly promoting the now-defunct FTX exchange and a Solana-based NFT project called Astrals. The latter suit alleges the NFTs were unregistered securities. The suits were served during an NBA playoff game O'Neal was commentating.
Ā
Now this is a fun one. The Professional Bowlers Association (PBA), in collaboration with parent company Bowlero and Layer 3 Labs, plans to commemorate bowlers' achievements with NFTs minted on the Avalanche blockchain. The non-transferable tokens, called League Bowler Certification (LBC) Awards, will initially honor significant scores and performance milestones. While currently focused on Bowlero leagues, the PBA aims to extend the initiative to all bowling alleys across the globe, potentially introducing millions of bowlers to the world of Web3. Future plans include exchanging earned points for physical rewards and integrating bowlersā progress into a metaverse game.
ā Trivia Answer
Answer: A.
In blockchain, a āforkā is what happens when alterations are introduced to the fundamental guidelines, or protocol, of a blockchain by its community. This results in the emergence of a distinct, parallel blockchain. While this new blockchain carries the identical historical data of its predecessor, it embarks on a unique trajectory all its own as a separate entity.
Web3 Resource of the Day
Top 50 Cryptocurrencies summarized in 1 sentence | Video from Whiteboard Crypto
We have a fascinating resource to share with you today. In this video, Whiteboard Crypto goes through the top 50 cryptocurrencies by market cap (as of last year) and explains each of them in just one sentence ā turning a huge amount of very important information into manageable, bite-sized chunks. With a helpful continuous visual representation of the market cap size differences running in the background, this video will leave you with a solid perspective on just what these cryptos do and how big they are relative to one another.
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DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice to buy or sell any assets or to make any financial decisions. Do your own research.