Hong Kong to Kickstart New Web3 and Digital Yuan Initiatives This Year
Hong Kong announced a series of new actions and policies it will adopt in 2024. In a speech offered by Financial Secretary Paul Chan, it was explained that the extension of these policies would be focused on accelerating the promotion of high-quality development of the city’s digital economy.
Chan announced that the new phase of the e-HKD, its central bank digital currency (CBDC), would explore new use cases, apart from programmable payments, offline payments, and tokenized deposits that were studied during its first phase. Also, the city will expand the scope of the digital yuan pilot in Hong Kong.
On this subject, Chan explained that citizens will create digital yuan wallets funded by the Faster Payment System (FPS), a use case previously tested during the 19th Asian Games in October. He emphasized this would enhance “the efficiency and user experience of cross-boundary payment services.”
Founders of $400 Million Cryptocurrency Ponzi Scheme Arrested in Argentina
Argentina Captures Couple Accused of Orchestrating a $400 Million Ponzi Scheme in Brazil
The Federal Police of Argentina reported capturing two individuals, a woman and a man, founders of a Ponzi scheme that moved over $400 million worth of crypto in Brazil. The operation managed to track the location of these two individuals after entering the country with fake names.
The man, known as “Joao Felipe Costa” in Argentina, was identified by the local press as Antonio Inacio Da Silva Neto, one of the founders of Braiscompany, a company aiming to “build financial freedom for thousands of people through information.” The woman was identified as Fabricia Farias Campos, Da Silva’s partner.
Da Silva Neto had a red Interpol warrant on his name, issued on March 2023, on the charges of committing crimes against the Brazilian financial system, money laundering, and crimes against the capital market. In February, the couple was sentenced to spend more than 150 years in jail, 88 years and 7 months for Da Silva Neto and 61 years and 11 months for Farias Campos.
Bitcoin (BTC-USD) and the general cryptocurrency space have seen a momentous rally in February, with the former peaking back above $60,000. After revitalized interest in digital assets following the Securities and Exchange Commission's (SEC) approval of spot bitcoin ETF offerings in January, Grayscale's Bitcoin Trust (GBTC) has seen outflows of nearly $8 billion over the past month.
Yahoo Finance's Madison Mills is joined by Grayscale Global Head of ETFs Dave LaValle on the floor of the New York Stock Exchange to talk about the spot bitcoin ETF landscape and the crypto asset manager's premium fees on its offering.
"We came to market with $28 billion in assets, and we had 100% market share, so for us to expect that we were going to maintain 100% market share really wasn't something that we were looking at, so the outflows that we have seen have been expected. we anticipated that," LaValle explains. "Look, we have a premium fee for a premium product, and so that's where we're standing right now."
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Oliver Knight
Updated Sat, March 2, 2024, 2:51 AM GMT+7
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CORRECTION (19:08 UTC): An original version of this story misinterpreted data from DefiLlama to suggest that most of the funds in the original Blast deposit contract were withdrawn immediately after the network's launch this week. The funds were indeed withdrawn from the Blast contract, but further analysis shows that most of the funds were just moved to a new address associated with Blast's mainnet, not withdrawn from Blast entirely.
Investors who had staked ether {{ETH}} on Blast, a layer-2 network atop Ethereum that launched Thursday, have bridged many of those assets over to another Blast address, "ETH Yield Manager."
Early data from DefiLlama data showed that, as of early Friday, some $1.6 billion of assets were moved out of the original Blast deposit contract. The amount remaining in the original contract was down to about $350 million at press time.
Blast posted on X on Thursday that "early access users can bridge to Mainnet and use Blast-native Dapps that don’t exist anywhere else."
As of early Friday, a new Blast address labeled "ETH Yield Manager" held some $1.8 billion of stETH tokens; stETH tokens represent ether (ETH) that has been deposited into Lido, which "stakes" tokens with Ethereum and rewards interest to users. (Staking tokens is the main part of Blast's strategy for rewarding yields to users.)
The movement comes months after Blast, promising on its website to be the "only Ethereum L2 with native yield," announced a deposit-only bridge in November that quickly garnered more than $2 billion in inflows.
Depositors received Blast "points" for holding their ETH on Blast, and the assumption is that the points could eventually be redeemed for a token airdrop; in crypto trading, the pursuit of these points is known as "points farming."
Backed by the crypto-focused venture firm Paradigm, Blast initially polarized crypto investors, with several observers claiming that it resembled a pyramid scheme due to its controversial one-way bridge. Others simply called out the less-than-ideal optics of a project soliciting deposits and disabling withdraws while its technology remained under development.
Yet in spite of skepticism, Blast rapidly became one of the most active layer-2 networks in terms of deposits even before the mainnet had gone live. It attracted $2.3 billion in deposits from 181,000 users, generating an annual yield of $85 million.