Crypto News: Major Airdrops, Investments, New Regulations, and Presidential Endorsements

June 14, 2024

Crypto World

Maciej Zerelik

Stay tuned for this week’s exciting crypto highlights, exclusively presented by StealthEX and CryptoDaily. Discover the latest and most thrilling developments in the crypto world, keeping you informed and ahead of the curve. From groundbreaking updates to trending news in digital assets, we have it all covered. Curious about what’s making waves in the crypto sphere? Dive into our comprehensive digest and stay up-to-date with the freshest insights!

ZKsync Announces Major Airdrop of 3.675 Billion Tokens

The ZKsync Association will airdrop 3.675 billion ZK tokens to early users and adopters of its Ethereum Layer2 network next week. Around 695,232 wallets are eligible. Matter Labs CEO emphasizes rewarding “real people first.”

The airdrop represents 17.5% of the total 21 billion ZK tokens supply. It’s a one-time event. Users can claim tokens starting next week until January 3, 2025. Contributors can claim tokens from June 24. ZKsync will also distribute 49.1% of tokens through ecosystem initiatives. Investors and the Matter Labs team will receive 17.2% and 16.1%, respectively.

ZKsync aims to prioritize the community. The community will hold the largest supply of liquid tokens for protocol governance upgrades when the ZKsync governance system launches.

The 695,232 wallets eligible were selected based on activity snapshots on March 24, 2024. The airdrop allocates 89% to users and 11% to contributors. Users met specific transaction thresholds, while contributors included developers, researchers, and community advocates.

The remaining tokens will support ecosystem growth, managed by the ZKsync Foundation and ZK Nation governance. Each address can receive up to 100,000 tokens. This community-focused approach ensures fair distribution, capping large holders.

A small allocation will go to “experimental communities” like Bonsai and Degen. These tokens will be fully liquid without lock-up periods. Matter Labs CEO hopes recipients will participate in governance, delegate tokens, and engage actively in the community.

Binance Labs Invests in Zircuit for Enhanced On-Chain Security

Binance Labs, the venture capital arm of Binance, has invested in Zircuit, a Layer 2 network featuring AI-enabled sequencer-level security. Zircuit introduces a novel approach to on-chain security, combining zero-knowledge rollups with AI mechanisms to guard against smart contract exploits and malicious actors.

Zircuit’s hybrid architecture merges battle-tested rollup infrastructure with zero-knowledge proofs. This results in a fast, low-cost, and fully EVM-compatible ZK rollup, providing unparalleled security without sacrificing speed. Zircuit enhances performance by decomposing circuits into specialized parts and aggregating proofs, achieving greater efficiency and lower costs.

Yi He, Co-Founder of Binance and Head of Binance Labs, stated, “At Binance Labs, we support projects innovating in Web3 and accelerating the blockchain industry. Zircuit’s integration of sequencer-level security offers a more secure L2 solution. We look forward to its growth and development.”

As Zircuit prepares to launch its mainnet this summer, its ecosystem shows impressive growth. It hosts over $3.5 billion in staked assets and has attracted more than 1,100 applications through its “Build to Earn” program. Launch partners include Ethena, Renzo, Ether.fi, KelpDAO, Elixir, Ambient, Pendle, and LayerZero.

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South Korea’s FSC Introduces New NFT Regulations

South Korea’s Financial Services Commission (FSC) has released new guidelines to regulate non-fungible tokens (NFTs). Under these rules, some NFTs will be treated as regular cryptocurrencies.

The FSC’s guidelines, published on Monday, clarify how NFTs should be regulated. According to local reports, the FSC will consider certain NFTs as regular cryptocurrencies if they lack unique characteristics that differentiate them from cryptocurrencies.

The guidelines precede the implementation of South Korea’s “Virtual Asset User Protection Act” on July 19. Per these rules, the FSC may classify an NFT as a cryptocurrency if it is mass-produced, exchangeable, fractionalized, or used for payments. Conversely, digital tokens that are non-transferable and have little economic value will remain classified as NFTs.

The FSC stated, “If it takes the form of an NFT but is actually a virtual asset, the ‘Virtual Asset User Protection Act’ applies.”

The FSC’s decision to clarify NFT regulations is part of preparations for the new legislation. According to Yonhap, NFTs are tokens with unique information that cannot be replaced. Therefore, NFTs are excluded from the new law’s scope, as they are issued in limited quantities and mainly traded for collecting content.

Jeon Ypo-seop, Head of the FSC’s Financial Innovation Planning Division, explained that if a large number of NFTs were issued, they could be used for payments. However, the FSC will manage classifications case-by-case rather than setting a specific issuance volume as a criterion.

Donald Trump Positions Himself as the “Crypto President”

Republican presidential candidate Donald Trump has declared himself the “crypto president,” aiming to present himself as a strong advocate for cryptocurrencies. He made these comments during a fundraiser last week, criticizing Democratic efforts and the SEC’s attempts to regulate the industry.

Trump is positioning himself as a staunch supporter of cryptocurrency. He criticized the Biden administration’s regulatory approach and emphasized his support for the sector. The fundraiser, hosted by tech venture capitalists Chamath Palihapitiya and David Sacks, raised $12 million. San Francisco-based tech executive Trevor Traina, a former Trump ambassador to Austria, stated, “He said he would be the crypto president.”

At the fundraiser, Trump highlighted the importance of crypto and promised continued support. However, he has yet to provide specific details about his crypto policy. The crypto industry seeks political influence amid increased regulatory scrutiny, following major firm bankruptcies like FTX, which exposed fraud and led to significant investor losses.

The Biden administration has shown hostility towards the crypto sector but has shifted recently. In 2022, President Biden signed an executive order for responsible digital asset development, leading to reports urging the SEC and CFTC to create a clear regulatory framework. The administration has expressed willingness to work with Congress on crypto regulation. White House spokesperson Robyn Patterson stated that the administration supports digital assets while protecting consumers from associated risks.

Binance Surpasses 200 Million Users Worldwide

Binance, the largest cryptocurrency trading platform by volume, has announced reaching over 200 million global users, representing more than a third of all crypto holders worldwide. Alongside this milestone, Binance now manages $100 billion in assets under custody.

Since its inception, Binance has provided a secure and user-friendly platform for crypto trading, offering services like decentralized finance (DeFi), spot trading, and futures contracts. This achievement of surpassing 200 million users is significant, with Binance sharing the news across its social media platforms. Binance aims to onboard a billion users, or one in every eight people globally. However, these numbers are self-reported by Binance.

“Today, we celebrate 200 million users, and it is all because of YOU! Your support is the heartbeat of our journey to 1 billion users. Here’s to the stars of our story – You!”

Binance’s ambitions extend beyond being a cryptocurrency exchange. Through Binance Academy and Binance Research, it aims to promote blockchain education and innovation. These initiatives provide valuable resources to educate the public about blockchain and crypto, democratizing access to information and fostering wider adoption. Binance has also formed strategic partnerships to promote crypto integration into daily life.

In 2022, Binance reported 130 million users. The platform added 40 million users in 2023, bringing the total to 170 million. Six months into 2024, it has already added 30 million users, reaching 200 million. If this growth continues, Binance could reach 300 million users by 2026.

According to Triple-A, the global cryptocurrency user base reached 562 million in 2024, up from 420 million in 2023. Binance users account for 36% of the global cryptocurrency user base.

This user milestone comes shortly after Binance hit another milestone in March, surpassing $100 billion in assets under custody. User assets under Binance have more than doubled since the start of the year due to rising digital asset prices, significantly increasing the value of assets under the exchange’s custody.

Cardano Foundation Partners with Argentina’s Entre Ríos Province

The Cardano Foundation has announced a new partnership with the regional government in Argentina, aiming to boost the country’s recent shift towards cryptocurrency. This partnership could potentially act as a catalyst for ADA, Cardano’s native token, which has struggled to gain momentum in a competitive market.

Rogelio Frigerio, governor of Entre Ríos Province, and Rafael Fraga, LATAM Lead for Business Development at the Cardano Foundation, signed the agreement to make the partnership official. The focus will be on facilitating blockchain adoption in Entre Ríos Province. The Cardano Foundation shared the news on X, stating, “We are delighted to announce a new partnership in Argentina! Following a public signing between @frigeriorogelio and @rafaelfraga_f, the #CardanoFoundation is collaborating with Entre Ríos state to further #blockchain adoption.”

While specific details about the collaboration remain unclear, it is likely part of Argentina’s efforts to enhance its cryptocurrency sector. The country is working to grow its crypto ecosystem and create a clear regulatory framework for the industry.

Cardano’s interest in Argentina has been evident through recent interactions. Charles Hoskinson, Cardano’s founder, caught the attention of Argentina’s President Javier Milei via social media. The engagement highlighted Cardano’s plans to expand operations in Argentina, coinciding with the country’s active embrace of blockchain technology and cryptocurrency. The interaction began with an update from Dario Epstein, Director at Research For Traders, who mentioned a tech company specializing in third-generation blockchain with a focus on decentralized governance, expressing interest in establishing itself in Argentina.

Hoskinson responded, praising Argentina’s tech talent and suggesting that the company could be Cardano. “Over the past eight years, developers from Argentina like ATIX’s Alan Verbner have been invaluable in the development of some of Cardano. Argentina has some of the brightest minds in our industry, and it has been a privilege to work with them.”

This partnership could pave the way for significant developments in blockchain technology and crypto adoption in Argentina.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.