Wolf's Clothing is the first startup accelerator that focuses on the Bitcoin Lightning Network and the Taro protocol, and it was founded by asset management company Stone Ridge, the parent company of Bitcoin company NYDIG (Wolf).
Wolf's Clothing (Wolf), a startup accelerator founded by asset management company Stone Ridge will be focused on fostering the development of Bitcoin-related products, the team exclusively revealed to TechCrunch.
According to Kelly Brewster, CEO of Wolf, the program will bring four cohorts per year to New York City from all over the world for eight weeks at a time to concentrate on building on the Bitcoin-centric Lightning Network and Taro protocol. Each cohort will be made up of eight to twelve teams, or roughly 30 to 50 founders.
How Will It Work?
Built on top of Bitcoin, the Lightning Network is a layer-2 payment system that seeks to facilitate quicker payment processes. Separately, the Taro protocol was introduced in April of this year to assist in the issuance of digital assets on the blockchain of Bitcoin that can then be instantaneously transferred to the Lightning Network in low-fee transactions.
Brewster stated, "It's like creating an HTTP accelerator; they're both generic and useable enough in such a wide range of applications. Though it is a specialized technology, the business use cases can be very diverse. However, we have a significant competitive advantage due to our intense concentration, which can be a major attraction for founders.”
Small startup teams and early-stage enterprises will all be represented in the accelerator by teams. According to Brewster, they will each get an investment of $250,000, and one cohort winner will also receive an additional $500,000 for a total of $750,000.
Micropayments and tipping using Lightning and Taro are two topics that Brewster is eager in seeing entrepreneurs develop.
Along with training and funding from operating businesses and venture capital firms with a focus on bitcoin, NYDIG, a division of Stone Ridge, is also supporting the accelerator. According to Brewster, the names of the companies contributing outside funding won't be disclosed. But he also pointed out that all mentors and investors are already using Lightning and Bitcoin. This includes public fintech and banking companies, as well as specialized VCs, focused on Lightning up.
Bitcoin Lightning Network
A layer-2 payment mechanism called Lightning Network, which was developed on top of Bitcoin, seeks to give the blockchain rapid payments and scalability at a reasonable price. It enables users to send or receive Bitcoin quickly by conducting transactions outside of the primary blockchain network, or, as Coinbase put it, "like an HOV lane on a highway."
At Stone Ridge, we've been keeping an eye on Lightning for a while, Brewster said, "Over the past 12 months, the network has reached critical mass, and there is enough capacity today that real-world activities can be conducted on the network with relative ease."
Brewster remarked that Lightning had grown extraordinarily over the previous year. In some ways, it is the ideal time to take a step back and determine where there is a signal and where there is only noise. Lightning is generating some of the most distinct signals right now. The rate of expansion and network capacity has been glacial.
The announcement comes at an unusual moment for NYDIG, which, according to a Wall Street Journal report published last week, recently let go of around 33% of its workforce. NYDIG raised $1 billion in December 2021, valuing the business at over $7 billion, according to the company.
Conclusion
Numerous cryptocurrency accelerator programs are emerging all across the ecosystem. Some of them range from generic web3-focused tools like Alliance DAO to layer-2 blockchain-specific accelerators like Polygon. While some startups provide funding, as Wolf intends to do, others invite investors to demo days in the hopes that they will fund the startups' initiatives. In situations like this, Brewster asserted, "the businesses that are developed will capture these secular patterns and truly take hold as they accelerate." Therefore, we believe that now is the ideal time to create rather than try to do something at Stone Ridge ourselves. We want to support and enable hundreds of other founders.
The Merge, an upgrade to the Ethereum [ETH] network that has been much awaited, has piqued the curiosity of many individuals. The proof-of-work (PoW) phase of the network's development will come to an end as it makes preparations to transition to the proof-of-stake (PoS) protocol. As a direct consequence of this, the network will almost certainly be upgraded, and it will also be greatly affected by the shift.
The Proof-of-Work (PoW) consensus algorithm is being replaced with the Proof-of-Stake (PoS) algorithm with the Merge update (PoS). In addition to this, it will change the role of miners to that of stakers, who will be responsible for verifying transactions on the blockchain.
Sharding is another essential part of the Ethereum ecosystem, which became an important part after the Ethereum Merge. The blockchain will be made more robust as a result of sharding, which is a crucial component of Ethereum 2.0.
What is the Ethereum merge?
The Ethereum blockchain, which powers the second most valuable cryptocurrency and many other technologies in the cryptocurrency ecosystem, such as non-fungible tokens, will get an update in the form of The Merge (NFTs). It's anticipated to take place in September.
The proof-of-work paradigm is now used to power the Ethereum blockchain, much as it is used to power the Bitcoin blockchain. This approach requires nodes, which are individual computers that are connected to a larger network, to compete with one another to solve difficult mathematical problems. Those who are successful are then able to mine the subsequent block of a transaction and produce additional currencies.
The update will move Ethereum toward the proof-of-stake paradigm, which is a system that is both more ecologically friendly and efficient in terms of the use of energy. It involves selecting nodes via the use of an algorithm that gives precedence to nodes that possess a greater amount of a network's money than any other nodes.
What exactly does "Ethereum Sharding" mean?
The word "sharding" is a fundamental concept derived from the field of computer science. It refers to the practice of horizontally slicing a database to help distribute the workload more evenly. Sharding Ethereum will be an update implemented in stages, each of which will contribute to scaling Ethereum and increasing its capacity.
The task of separating and equitably dispersing the load of a huge quantity of data may be simplified with the help of the sharding technique. Because of this distribution, the load will be less, there will be less congestion in the network, and the processing of transactions will go more quickly.
The blockchain will eventually break into shards, each of which will be able to operate independently of the others. Sharding will enable safe data storage needs distribution, make rollups cheaper, and make it simpler to operate nodes. It will also simplify the operation of nodes.
Through the use of sharding, the hardware requirements for operating a node may be reduced. Because it will allow users to operate the network using a laptop or even a phone, it will also help to increase the number of people who participate in the network.
When is it going to be available?
According to the statement made by the Ethereum Foundation, the first implementation of sharding will take place sometime in 2023. It relies mostly on the amount of development that may be made after the merger. Depending on how swiftly development develops after The Merge, the release of Sharding is projected to take place sometime in 2023. The capacity of Ethereum to store and retrieve data will be increased thanks to these shards; nevertheless, these shards will not be utilized for the execution of code.
Victims of the UST-induced market crisis that saw over $40 billion in crypto assets evaporate in May have filed a fresh lawsuit in Singapore against embattled Terra Form laboratories CEO Do Kwon, the Luna Foundation Guard (LFG), and Terra founding partner Nicholas Plates.
What Went Wrong with TerraUSD?
Do Kwon's promises were readily swept away by waves on May 9, 2022, when the TerraUSD (UST), valued at $18 billion at the time, collapsed.
The cryptocurrency failed to hold its $1 peg, falling to $0.35. LUNA, a token designed to keep the UST price from plummeting precipitously, saw its value plummet from $80 to a few cents.
The TerraUSD collapse occurred in three stages, beginning with two dealers violating the currency's peg. Terraform Labs and three allies attempted to "fix" the situation by acquiring $2 billion in UST. As a result, the funds were depleted due to an uncontrolled sell-off.
The development did not end there, as it hyperinflated LUNA and eventually destroyed the prices of the two assets, forcing the crypto market to lose almost $40 billion.
Do Kwon’s Legal Headache
According to documents filed in Singapore's high court on September 23, 359 people claimed that Kwon and his co-defendants made false representations about Terra's algorithmic stablecoin TerraUSD's reliability (UST). The plaintiffs expressly claimed that Do Kwon was aware of "the structural fragility of algorithmic stablecoins" as a result of his engagement with Basis Cash (BAC), another stablecoin that failed under his supervision in early 2021, before the launch of UST.
The claimants further claimed that the defendants "knew or should have known that the claimants wanted to buy and hold digital stablecoins that were not susceptible to the volatility of the broader market and yield a respectable passive return." The claimants sustained significant losses on their UST holdings as well as additional damages as a result of the trio's acts. The claims asked the court to give them approximately $57 million for their losses and to force the trio to pay "aggravated damages."
The case comes amid an intensifying search for Kwon, who has now become an international fugitive after South Korea issued an arrest warrant. Therefore, the Terra blockchain ecosystem collapsed in May, Kwon has been the victim of many legal actions and threats. In September, South Korean authorities issued an arrest order for the Terra co-founder, which was later rejected, and Interpol added Kwon to its Red Notice list, urging that law enforcement identify and possibly jail him. On October 6, the South Korean Ministry of Foreign Affairs issued a notification ordering Kwon to return his passport within 14 days, or it would be invalidated.
Since his Terra empire collapsed in May, leaving millions of investors with severe losses, the Korean-born developer has been the target of several litigation lawsuits in the United States and South Korea over the last four months.
Eventually, local media reported that prosecutors were "in the process of freezing" tokens "believed to be owned by Kwon." These coins were allegedly stored on an unknown "overseas" cryptocurrency exchange that was "cooperating" with the Seoul Southern District Prosecutors' Office.
Despite not identifying his location, Kwon has been active on social media amid the issue and stated in September that he was "making zero attempt to conceal." In reaction to the complaint, one Redditor said Kwon was "doing a bad job at acting innocent for a guy who is innocent." Others speculated that he had undergone plastic surgery to conceal his features.
Conclusion
While it is unclear where Kwon is, Korean authorities reportedly claimed that he left Singapore for Dubai last month. However, no documents were found indicating that Kwon had entered the city, prompting Korea to ask neighbouring countries to assist in tracking his location. Kwon denied being on the run in a recent interview but refused to identify his location.
Coincheck, a major Japanese cryptocurrency exchange, stated on Friday that it aims to list on Nasdaq on July 2, 2023, through a merger with a special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV.
Coincheck stated that its ambitions to pursue a public stock offering in the United States via Nasdaq would provide the company with access to the country's lucrative capital markets.
Coincheck, a Japanese cryptocurrency exchange, has confirmed plans to pursue a public stock offering in the United States via Nasdaq, giving the company access to the country's lucrative capital markets.
Coincheck Business Update
Coincheck provided an update on its business. Initially, it expanded its dominance in Japan by slowly accumulating customers despite the weak crypto asset market.
The exchange subsequently stated that its NFT business revenue for the quarter was $160 million due to NFT market headwinds.
Coincheck also wanted to establish and expand its digital economic world with an eye on Web3, collaborating with appealing producers and artists to create revenue prospects such as sales of exclusive NFTs, tenant fees for land in the metaverse, and growing the Coincheck NFT user base.
Coincheck promotes firms related to crypto assets and NFTs that are spearheading the adoption of Web3 in addition to Coincheck Labs, the blockchain, and the Web3 ecosystem.
The exchange also identified several significant growth prospects that can be explored organically and accelerated through M&A or collaborations.
Coincheck and Hunder Bridge Capital Partners are Merging.
According to the exchange, the move will allow it to expand its crypto asset company by acquiring access to US capital markets, gaining exposure to global investors, and recruiting personnel to accomplish its growth goal. Monex Group, Coincheck's primary owner, declared in a Securities and Exchange Commission (SEC) filing.
In March of this year, Coincheck declared its intention to go public. Its merger with Thunder Bridge Capital was valued at $1.25 billion at the time.
SPACs were the hottest way for crypto firms to go public in 2020 and 2021, but the craze has died down this year due to an overall market slowdown and new Securities and Exchange Commission (SEC) restrictions.
Since June of this year, the SEC has been more careful about the general SPAC process, particularly crypto-related agreements, to improve investor safety.
Since July of last year, Circle Internet Financial, the backer of the "stablecoin" USD Coin, has been attempting to go public with a SPAC called Concord Acquisition (CND).
Coincheck controls 27% of Japan's Cryptocurrency market.
Coincheck has 1.75 million confirmed accounts, accounting for 27% of Japan's crypto trading market share, according to financial statistics. However, the company observed a drop in trade volume as a result of the cryptocurrency bear market. Quarter over quarter, total operational revenues fell by approximately half.
Several crypto-related companies have expressed an interest in going public via SPAC agreements. PrimeBlock, a Bitcoin (BTC) mining startup, announced in April that it would go public via a $1.25 billion SPAC. W3BCloud, a blockchain cloud infrastructure provider, announced a comparable price tag for its SPAC merger in August. eToro, a stock and cryptocurrency exchange, had planned a $10 billion merger before canceling the agreement over the summer.
Conclusion
A crypto/SPAC merger is also in the works between eToro Group, an Israeli online brokerage, and FinTech Acquisition Corp. Therefore, V (FTCV), a SPAC backed by veteran financier Betsy Cohen. The merger was called off in early July after the companies were unable to complete the transaction by the June 30 deadline. One of the reasons the deal failed was a failure to obtain SEC permission.
As part of Elon Musk's $44 billion acquisition of Twitter (TWTR), Binance, the largest cryptocurrency exchange in the world by trading volume, announced it had invested $500 million. This modest but significant action sparked rumors that the social media company might one day run on blockchain technology.
Musk Successfully Takes Over Twitter.
Musk completed his $44 billion acquisition of Twitter late on Thursday, gleefully tweeting, "The bird is liberated," and promptly removing several top executives from their positions. After months of public and legal battles over the sale, this finally happened. Early sources state that the new owner has already drastically lowered Twitter's c-suit. Twitter CEO Parag Agrawal, CFO Ned Segal, and top attorney Vijaya Gadde, who played a key role in the decision to block former President Donald Trump's account on the social media network in January 2021, are reportedly among the departing staff. Although it might only be a temporary post, Musk will take over as CEO, according to a source who talked with Bloomberg.
As per the reports, his next step would be to reinstate Twitter users who have received lifetime bans from the platform, including Trump.
Before finalizing the acquisition, Musk indicated that securing the "future of civilization" was his main driving force in buying Twitter.
Instead of dividing into "far right-wing and far left-wing echo chambers," Musk says the objective is to maintain a "common digital town square," where individuals of diverse viewpoints may discuss on their points of view without resorting to violence.
Other objectives include combating Twitter spam bots, which might be done by putting blockchain-based solutions in place.
Bot spam is particularly common in the cryptocurrency world, where con artists frequently use false identities to entice investors by impersonating influencers and other well-known people, including Elon Musk.
Binance Founder Expressed His Excitement about Working Together with Musk
Binance revealed on Friday that it has invested in Twitter's acquisition by billionaire internet entrepreneur Elon Musk as an equity investor (TWTR).
The founder of Binance, Changpeng Zhao, expressed his excitement in an email, "We're thrilled to be able to support Elon in realizing a new vision for Twitter. We want to help social media and Web3 work together to increase the use and adoption of blockchain and cryptocurrency." A team from Binance is reportedly being formed to think of ways that blockchain technology and cryptocurrencies can help Twitter.
In a tweet, Zhao claimed that Binance had sent $500 million as part of the transaction two days prior. CoinDesk's request for comment from Twitter did not immediately receive a response.
A few Twitter executives were reportedly taken to the door as Musk closed the transaction on Oct. 27. The new owner of the social media platform then purportedly cleaned house. In May 2022, according to a statement made by Binance, it will invest alongside 18 other investors in Twitter, including major cryptocurrency investment firms Sequoia Capital Fund, Fidelity Management, and Research Company.
The founder of Binance said on October 28 that the company had placed money on the table as Musk completed his acquisition of Twitter. To check that the business had wired the monies earlier in the week, CZ used the newly acquired platform.
Conclusion
Zhao clarified that he was not personally involved in the transaction and quipped that he thought the transfer had been made using traditional banking methods rather than a blockchain or cryptocurrency transaction in response to a user on the Twitter thread who wrote "CZ" now owns part of Twitter: "We are small potatoes, just a tiny bit." Zhao responded to other comments, clarifying that he was not personally involved in the transaction.
