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SEC Responds to Ripple Filing, Doubles Down on Appeal

The SEC continues its battle with Ripple ---- plus news from Animoca, Binance, Brine Fi, Thodex, and Celsius

Author

Ryan Allis
September 13, 2023

Issue Summary: Welcome back to Coinstack, the weekly newsletter for institutional crypto investors and industry insiders. We review the top news, stats, and reports in the digital asset ecosystem for our 150k weekly subscribers. This week we cover the SEC responding to the Ripple filing, Vitalik’s Twitter account being hacked from a SIM swap, the Thodex exchange CEO receiving an 11,000 year jail sentence, and big new venture rounds for Animoca Brands ($20M) and Brine Fi ($16.5M).

Price performance since we began writing Coinstack in January 2021

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💵 Weekly Crypto Fundraises & Deals

Here are all the crypto fundraises we heard about this week, ranked by size…

🗞️ Crypto News Recap: The Top 5 Stories

Welcome back to This Week in Crypto… everything you need to know in one scannable format. Here are the top 5 stories of the week…

⚖️ SEC Responds to Ripple Filing, Doubles Down on Appeal Bid- The Securities and Exchange Commission pushed back Friday against Ripple Labs' efforts to block its appeal of a judge's ruling that largely favored the cryptocurrency company in its legal fight with the regulator.

💰 Hacker Steals Over $690k After Hijag Vitalik Buterin's Twitter Account- Ethereum creator Vitalik Buterin appears to have fallen victim to a hacker on Twitter, who went on to steal $691,000 from users who followed a corrupted link posted to his feed.

👨‍⚖️ Thodex CEO Gets 11,000-Year Jail Sentence Over $2B Crypto Exchange Collapse- Faruk Fatih Özer, the founder and CEO of defunct Turkish crypto exchange Thodex, was sentenced to 11,196 years in jail on Thursday, as reported by local media sources.

📝 Former Celsius CEO Alex Mashinsky Seeks to Q U.S. FTC Case- Alex Mashinsky, founder and former chief executive office of crypto lender Celsius, sought to have the Federal Trade Commission (FTC) drop its case against him in a Monday court filing.

🟨 Binance to remove support for Polygon NFTs- Crypto exchange Binance's NFT marketplace is ending support for the Polygon Network.

💬 Tweet of the Week

📊 Key Stats of the Week

Here are the most important and interesting stats in crypto this week...

1. Base saw a 330% month-on-month (MoM) growth in total value locked and a 3,200% MoM surge in unique users in August.

Source: @TheBlockPro__

2. Both Arbitrum and Optimism saw declines of 19.3% and 8.5% in their respective market capitalizations.

Source: @TheBlockPro__

3. Polynomial’s trading volume surpassing $3.8B

Source: @raholloway

4. Crypto spot trading volume has only gotten more concentrated throughout the last two years

Source: @WClementeI

Sui is the fastest growing non-EVM chain in terms of Total Value Locked (TVL) over the past 30 days.

Source: @twobitidiot

📝 Highlights from Top Crypto Reports

Here are the top highlights frhe best crypto research reports this week…

About the Author: Paul Veradittakit, is a Managing Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing into blockchain companies and cryptocurrencies. This is an excerpt from the full article, which you can find here.

Introduction

In the dynamic and ever-evolving landscape of blockchain technology, the pursuit of scalability and the enhancement of transaction throughput have culminated in the emergence of what are known as Layer-2 solutions, or L2s. These innovative augmentations to conventional blockchain protocols have been strategically devised to mitigate the inherent limitations that have persisted within traditional blockchain designs. With the ascendancy of L2 solutions, offering swifter and more resource-efficient transaction processing, a novel challenge has presented itself - the imperative for efficient transaction sequencing.

To address this challenge for efficiency, centralized sequencers have predominantly been employed. These orchestrative mechanisms govern the arrangement of transactions within decentralized networks. Yet, the harmony sought between the decentralized philosophy underpinning blockchains and the centralization inherent in these sequencers has given rise to an extraordinary breakthrough: the dawn of decentralized sequencers. This new approach aims to enhance scalability, strengthen security, and establish a truly decentralized nature within the blockchain space.

What are Centralized saction Sequence

Centralized transaction sequencersve as mechanisms employed by blockchains or applications to ensure the orderly and secure progression of transactions. In contrast to the concept of decentralized sequencing employed in blockchains, which hinges on consensus algorithms and distributed networks, today’s sequencers function in a centralized environment under the supervision of a singular authority. Here's an outline of their functioning:

  • Centralized Control: Within centralized systems, a sole entity or authoritative body exercises dominion over the database or application. This entity is responsible for overseeing transaction ordering and dictating the sequence in which they are executed by L2s.

  • Sequential Processing: Transactions undergo sequential handling, occurring in a consecutive fashion. The determination of this sequence is frequently influenced by variables such as timestamp, submission timing, MEV extraction, feed paid by the users/block builders, or the precedence allocated by the central governing entity.

  • Dependence on Trust: Users relying on the system must place their trust in the central entity to impartially and precisely handle transactions. Yet, the potential for manipulation or malicious behavior by this authority looms, risking the integrity of the transactions themselves.

dvges of Decenized Sequencers

Decentralized sequencers present a multitudecompelling advantages derived from their groundbreaking method of transaction management. Through the cultivation of trust and transparency, these sequencers establish an unalterable, openly accessible ledger that empowers autonomous validation of transaction accuracy and sequence, obviating the necessity for centralized supervision. Their infallible resistance to tampering assures the integrity of data, virtually eliminating the potential for fraud and imbuing the recorded information with authenticity. Furthermore, decentralized sequencers champion the ethos of censorship resistance and monopoly-mitigation, enabling transaction progression based on network consensus rather than central authority, nurturing an ecosystem of openness and inclusivity.

🎧 Top Crypto Podcasts of The Week

Here are the crypto podcasts that are worth listening to this week...

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📰 The Coinstack Newsletter:

Tracking the most important blockchain stories of the 2020s, including a decentralized internet and the creation of a new open global monetary system that works for everyone. As always, published for informational purposes only. Please do your own research. Just our opinions. Not intended as financial advice as we are not financial advisors. We may own some of the digital assets we write about as we believe strongly in the sector. Please do your own research. Published and written weekly by Ryan Allis and Mike Gavela.

Coinstack is a news and analysis newsletter for the digital asset industry. None of the information here is a recommendation to invest in any securities or other types of investments. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in loss.

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