Crypto.com has been granted a Virtual Asset Service Provider (VASP) license in Dubai, achieving our latest regulatory milestone. The VASP license, subject to operational approval, was issued by Dubai’s Virtual Assets Regulatory Authority (VARA). The license will allow Crypto.com to offer in-market regulated virtual asset service activities via the Crypto.com App and on the Crypto.com Exchange.
This is the next step for Crypto.com in the region, following the MVP Provisional License in June 2022 and MVP Preparatory License in March 2023. Crypto.com also announced Dubai as its regional hub for the Middle East and Africa sector in March 2022.
Market Spotlight
Note: Market prices captured in USD at the time of sending. Explore more on Crypto.com/Price.
Want more? Get weekly Market and DeFi Updates from Crypto.com’s Research Team.
News Snaps
More Than US$1B of Crypto Inflows in 2023
Total crypto infunds for 2023 so far have exceeded US$1 billion, according to data from digital asset manager CoinShares. The US$1.14 billion total makes 2023 the third-highest yearly crypto inflow ever.
HSBC Launches Tokenized Securities
HSBC is set to introduce digital asset custody services for tokenized securities like bonds on the blockchain. The bank expects to go live with the service in 2024.
UBS Introduces Three Crypto ETFs
UBS‘s high-net-worth clients can now trade three crypto exchange-traded funds (ETFs) through the bank’s Hong Kong platform. The ETFs are Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures. Together, the three products boast assets worth around US$72 million.
JPMorgan’s Blockchain Coin Rolled Out
JPMorgan has rolled out a programmable payment feature for institutional users of its private blockchain platform, JPM Coin, touting its offering as a “first-of-its-kind” by a global commercial bank. The solution caters to blockchain-based accounts on the JPM Coin System, allowing users to program payments using an “If-This-Then-That” interface.
Deutsche Börse Accelerates Blockchain Securities
Deutsche Börse, owner of the Frankfurt Stock Exchange, says it will accelerate the development of its blockchain-backed D7 digital securities registry and build a trading platform for digital assets.
What’s Ahead
Circle IPO
Circle, the issuer of the USDC stablecoin, is reportedly considering an initial public offering (IPO) in 2024.
Chart of the Week
ETH and BTC prices have surged to new yearly highs following the recent positive developments in BTC spot exchange-traded funds (ETFs). News has emerged about a Nasdaq filing regarding BlackRock’s plan to create a spot ETH ETF. Earlier, it was reported that the corporate entity ‘iShares Ethereum Trust’ had been registered in the state of Delaware; iShares is the name of BlackRock’s ETF division.
Research & Insights
Monthly Feature Article | Friend.tech
Friend.tech is a blockchain-based social platform. Here’s how it works:
Key Takeaways:
- Friend.tech’s main feature is token-gated chats through tokens called ‘keys’ that can be traded. This allows users to potentially profit from a content creator’s growing popularity.
- Friend.tech has shown surges in activity across some key metrics, particularly in the initial period after launch.
- The main factors that have likely contributed to friend.tech’s popularity include a monetization concept, Progressive Web App, embedded wallet, key price bonding curve, and Layer-2 rollup.
- However, activity appears to have slowed down recently.
- There are debates around the long-term sustainability of friend.tech’s business model and potential for a downward key price spiral if engagement declines.
- Also, rather than incentivizing stable, enduring relationships, friend.tech’s monetization model based on key trading and price appreciation could encourage user turnover.
Read the full report: Friend.tech
NFT Spotlight
Where there are pure-hearted humans who do not conspire to control others, there are Puppetz, a private club for those who dare to live in freedom. In this club, these puppets do not succumb; they are the controllers.
Join the club on Monday, November 27, when Spanish artist Sergi drops ‘Puppetz — Burgeois Collection 2.0’, featuring 1,000 unique and rare NFTs, all representing various personalities. Sergi specializes in different variants of art, including surrealism, and his goal is to capture raw emotions and true feelings through his work, breaking down the barriers of what’s possible between design and imagination.
This drop features various utility items:
🔐 CoolbitX x Puppetz Hardware Wallet
🪂 Genesis Puppetz NFT Cashbacks
💸 Burgeois Huge Rewards
🥇1 Genesis Puppetz NFT Giveaway
🤴3 GOLD Puppetz Monetary prizes and airdrops
The different social classes throughout the world range from the most ‘precarious’ to the ‘elite’ — which one will you identify with the most?
“How long will this circus last?” —Sergi, asking the tough questions
Sergitugas. Join the Club.
Product Picks
Introducing Strike Options in the Crypto.com App for US Users
Strike Options is a new crypto derivatives product that allows you to potentially profit in just 20 minutes by predicting whether the price of an underlying asset will be higher than the strike price at the time of expiration. Strike Options is a CFTC-regulated product and is currently available for BTC, ETH, LTC, and BCH as underlying assets. Learn about Strike Options.
Set Target Price Orders on Over 320+ Tokens
BIGTIME, GEKKO, JUNO, CORGIAI, TIA, ENJ, and ARB have all just been added to Target Price Orders in the Crypto.com App. With Target Price Orders, you can now automate orders at your preferred price without having to monitor the market. Set your Target Price Orders now.
Liquid Staking Is Now Available in the Crypto.com App
Liquid staking enables you to benefit from staking rewards and capture market opportunities at the same time. At launch, you can make the most of liquid staking with Ether (ETH) using Crypto.com Wrapped Staked ETH (CDCETH). Once you obtain CDCETH, you can enjoy zero conversion fees between ETH and CDCETH, plus a simple user experience when wrapping and unwrapping ETH. No unbonding periods here! Learn more.
Crypto Level Up
How Do Social Dapps Work?
Social dapps are decentralized platforms for people to interact with each other online. These new-age social media platforms leverage blockchain technology to allow users to network with each other in a more transparent, secure, and user-centric manner.
The Mechanics Behind Social Dapps
Users of social dapps have full control over their data and interactions thanks to the blockchain technology that powers them. Information is securely stored over multiple nodes, and smart contracts ensure that intermediaries aren’t needed when users interact, while making sure they follow predefined rules.
Benefits of Social Dapps
As mentioned above, users of social dapps grant users full control over their data, as compared to traditional social media platforms, which may collect and monetize user data. The decentralized nature of social dapps also makes them more resistant to hacking and censorship.
Limitations of Social Dapps
One main problem that social dapps face is scalability. As more users join a social dapp, the blockchain supporting it may encounter congestion, which slows transactions down. Additionally, the user experience for social dapps is currently unfamiliar for a general audience.
Find Out More About Social Dapps.
CryptoIRL
Whether by a lake or sea, the country or large city — or roaming with @misterdoc137 around ancient grounds in Italy — the Crypto.com Icy White Visa Card never misses a chance at a selfie.
Hashtag #CryptoIRL with your Crypto.com Visa Card on your social profiles to get featured! Your 15 minutes of fame in the #CROFam awaits you!
Decoder
Liquidity Pool
A liquidity pool is a collection of cryptocurrencies used to facilitate transactions on a decentralized exchange. Essentially, it is a reserve consisting of cryptocurrencies that are locked in a smart contract together. They are primarily used to facilitate decentralized finance (DeFi)-related activities, such as lending, trading, and swapping, on a decentralized exchange (DEX).
This technology functions via a mechanism that allows users, or liquidity providers (LPs), to pool their digital assets in a DEX’s smart contract. In exchange, the LPs receive certain rewards (typically in the form of trading fees) in proportion to the liquidity they supplied.
The benefit of a liquidity pool is that it does not require a buyer to match with a seller for a transaction to occur. Instead, the system automatically uses the tokens in the liquidity pool to take the opposite side of a trade. In doing so, it helps close the gap between the expected price and the executed price of an order while vastly improving efficiency and reliability.
Examples of liquidity pools include Uniswap, Balancer, Bancor, and Curve DAO.
Security Tips
Estonian Bank Founder Loses Access to 250,000 ETH
Rain Lõhmus, co-founder of Estonian bank LHV, said that he lost access to 250,000 ETH he purchased during Ethereum’s initial coin offering (ICO). Lõhmus cannot access his holdings because he lost the private key. Fortunately, this set of ETH is safe and no one has hacked into the wallet.
How to Store Your Private Keys Securely
Hardware wallet. Hardware wallets are physical devices specifically designed to securely store private keys offline. These devices are immune to online attacks and malware, offering a robust layer of security.
Metal backup. Instead of writing down your recovery phrase on paper, consider using a metal backup. These are fireproof, waterproof, and shockproof, making them a more durable alternative to paper.
Non-custodial software wallet. Non-custodial wallets, such as Crypto.com DeFi Wallet or Crypto.com Wallet Extension, allow you to control your private keys directly. For added security, create a backup of your wallet and ensure that the device the wallet is installed on is secure and that you have a strong, unique password.
Encrypted USB drive. If you already have a USB flash drive on hand, you can encrypt it using a strong, industry-standard encryption algorithm before storing the file with your private key in it. This helps ensure that your private key remains secure, even if the drive is lost or stolen.
While these methods are effective, it’s important to note that no method is 100% foolproof. It’s recommended to use a combination of these methods and to regularly update and review your security practices.
Remember, never share your private keys, as they grant access to your crypto assets. It’s also wise to diversify risk by using multiple wallets rather than storing all your funds in one place.
That’s it for this week’s Snapshot. Want more? Find out what’s trending in the crypto world.
