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Bybit Announces zkSync Listing, Faces Backlash Over ZK Ticker

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1 month ago

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Bybit has declared the upcoming listing of zkSync. Accompanying this announcement is a contentious decision to reassign the “ZK” ticker, previously held by Polyhedra Network, to zkSync.

This decision has elicited a lot of negative responses, especially from Polyhedra Network, which was unhappy with the change of branding.

Bybit Faces Backlash Over ZK Ticker Change

The conflict over the “ZK” ticker arose when Bybit went public with its intention to use it for listing zkSync, an action that interfered with Polyhedra Network’s rights to the ticker. In a social media post, Polyhedra Network expressed their discontent with the change as it was similar to being bullied and having their deserved ticker name stripped from them. 

The response has been rather negative as the people and other stakeholders have discussed the possibility and the ethicality of such a move. However, in its defense, Bybit has argued that this action is part of a trend of streamlining of the services provided to its clients as well as enhancing the layout of the trading platform.

Furthermore, to ensure that Bybit users and other stakeholders do not panic, Bybit has stated that this change in ticker will not impact the tokens that investors have with them concerning the Polyhedra Network tokens that are already being traded on Bybit. Due to the fact that Bybit has continued supporting Polyhedra Network and its community after this incident, it seems that the decision was not made due to hostility, but for the sake of business.

Bybit Regulatory Challenges 

This ticker controversy arises at a time when Bybit is facing some issues with the regulatory bodies. Earlier this month, the French financial markets regulator AMF urged the citizens not to use Bybit as the company has no license in France.

Nevertheless, Bybit had to cease operations in France in October 2023 because of local legislation, and its operations remain under scrutiny as the company seeks a license to operate legally in the country.

The reactions from the market to the announcements made by Bybit have been mixed.  While some of the community member are satisfied with the move because it will enable them to concentrate on new listings, there are others who are equally convinced that it will be a negative change that will affect the credibility of projects that have already been launched such as Polyhedra Network.

Read Also: Chainlink Price Analysis: Investors Eye Higher Rally as Profit-Taking Ratio Hits 11:1

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Cardano’s Charles Hoskinson & Ex-Ripple Alum Offer Fiery Critique On Biden’s Dementia

Published

3 hours ago

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July 1, 2024

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In a recent social media exchange, prominent figures in the cryptocurrency world voiced sharp criticisms regarding President Joe Biden’s cognitive health. Cardano founder Charles Hoskinson and former Ripple director Sean McBride joined the conversation. Moreover, they expressed concerns about Biden’s mental fitness and the Democratic Party’s handling of his candidacy.

Charles Hoskinson & Former Ripple Director Take Aim At Biden

On X, Charles Hoskinson ignited the debate by highlighting what he saw as the irony in media outlets now scrutinizing Biden’s performance. In addition, he criticized the Democratic Party for not holding a primary that could have revealed Biden’s cognitive decline. He stated that voters were left with no real choice.

Furthermore, Hoskinson suggested that the lack of a primary amounted to the party making decisions for the voters. Additionally, the Cardano founder presented them with a stark choice between “a dementia puppet or the party deciding for you.” However, a user on X countered Hoskinson’s claims. They argued that while there were no debates, it is not unusual for an incumbent president to avoid serious primary challenges.

They also pointed out that recent incumbents like Trump, Obama, Bush, and Clinton did not face significant primary debates either. Hoskinson responded by questioning the legitimacy of the primaries. In addition, he suggested that when super delegates indicate that even 100% of the votes wouldn’t guarantee a win for a candidate, it undermines the democratic process.

Fox Business journalist Charles Gasparino also weighed in, expressing his discomfort with people diagnosing Biden with dementia on social media. He emphasized the severity of the situation if Biden is indeed experiencing significant mental decline and it is being concealed by those around him. Gasparino argued that such a cover-up could be one of the most significant presidential scandals, potentially rivaling Watergate, due to the implications for national leadership.

McBride, picking up on Gasparino’s points, bluntly asserted that it is “obvious” Biden is suffering from dementia. Moreover, the former Ripple alum asserted that Democratic elites have been covering up the extent of his decline. In addition, he drew a parallel between the administration’s actions against Donald Trump’s campaign and the Watergate scandal.

Also Read: Charles Hoskinson Flags Major Ongoing AI Censorship Trend

45% Democrats Vote For Presidential Candidate Replacement

The debate over Biden’s cognitive health has intensified, especially as he prepares for a critical election period. During a debate watch at an assisted living facility in Washington, residents were visibly concerned about Biden’s performance. Moments such as his inexplicable remark, “We finally beat Medicare,” left viewers questioning his capability.

The perception of older voters is crucial for Biden, as they are a demographic that turns out in large numbers at the polls. In the 2020 election, Biden lost voters aged 65 and older to Donald Trump by a narrow margin and is now aggressively courting this group. However, incidents that highlight his age-related vulnerabilities are likely to hinder these efforts.

In addition, recent polls indicate a growing unease among Democratic voters about Biden’s viability as the party’s nominee. Furthermore, a CBS News poll revealed that 45% of Democratic voters think Biden should step aside and not seek re-election. This sentiment reflects broader concerns within the party about Biden’s ability to lead effectively amid ongoing questions about his mental acuity.

Also Read: Trump Vs Biden: Mark Cuban and ChatGPT Predicts Best Pick For President

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CTO Backs Consensys Amid SEC Lawsuit Over MetaMask Securities Sale

Published

2 days ago

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June 29, 2024

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In a developing legal battle, Ripple’s Chief Technology Officer (CTO) David Schwartz has indirectly voiced his support for Consensys Software Inc. This comes after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the company. The SEC claims that Consensys has been operating as an unregistered broker.

Ripple CTO Defends Consensys & MetaMask

Moreover, the SEC accused Consensys of engaging in the unregistered offer and sale of securities through its MetaMask platform. The latest lawsuit focuses on the services of MetaMask Swaps and the platform’s staking feature.

The SEC’s complaint, filed on Friday, June 28, alleges that Consensys’s operations through MetaMask constitute unregistered securities transactions. According to the SEC, MetaMask Swaps and MetaMask Staking involve pooling assets with the expectation of profits primarily derived from the efforts of others. This, the SEC argues, classifies these activities as securities transactions requiring registration.

As the lawsuit news emerged, the Ripple CTO’s defense of Consensys emerged in a series of exchanges on X, formerly known as Twitter. In several replies on X, he addressed various arguments about the nature of MetaMask’s services. One user suggested that MetaMask’s services qualify as securities due to the expectation of profits derived from Consensys’s efforts.

Hence, Schwartz countered by drawing a comparison to the diamond industry. He argued that just as DeBeer’s efforts do not determine the profits of diamond holders, MetaMask’s efforts do not determine users’ profits. “MetaMask’s efforts don’t determine your profits any more than DeBeer’s efforts determine the profits of people who hold diamonds,” Schwartz stated.

In addition, he emphasized that the source of profits from MetaMask Staking and Swaps is external and independent of MetaMask’s control. However, another user expressed skepticism, arguing that the presence of a direct business contract between MetaMask and its users implies a security.

Also Read: Ripple Vs SEC: Judge Torres Doctrine Stands, XRP Secondary Sales Are Not Securities

Schwartz Slashes MetaMask Securities Sale Claims

In response, Schwartz highlighted a crucial distinction between business and investment contracts. “Sure. But nothing about that business contract determines the profit users get. MetaMask takes an agreed cut for providing services to the users. The source and amount of the profit they split is outside of MetaMask’s controls and not dependent on their efforts,” he explained.

Schwartz further clarified his stance by stating, “An agreement of a party to provide management services and pass through of funds where the source of the profits shared is entirely outside the agreement and not due to any party’s efforts is not an investment contract.” According to him, the profits generated from MetaMask’s services are not a result of Consensys’s efforts but arise from external market conditions and user activities.

Amid the Ripple CTO’s statements, broader regulatory news suggests that District Judge Amy Berman Jackson concurred with Judge Torres’ stance regarding XRP’s programmatic and secondary sales. In the Binance vs. SEC case, Judge Jackson rejected the SEC’s claims about secondary BNB sales by non-Binance entities.

Moreover, this ruling sets a important precedent for current cryptocurrency-related legal cases in the U.S. Hence, companies like Coinbase, Consensys, and Kraken are expected to leverage this decision to strengthen their positions in their respective lawsuits. With this ruling, SEC attorneys can no longer argue that Judge Torres’ perspective on secondary sales lacks judicial support or adoption.

Also Read: Ripple News: Exec Makes Latest Comment On Tension With U.S. SEC

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Treasury and IRS Finalize Broker Rule, Defers DeFi Decision

Published

2 days ago

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June 28, 2024

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The US Department of the Treasury and the Internal Revenue Service (IRS) have released new tax guidelines for cryptocurrency brokers, which implements transaction reporting starting from 2025. This new regime, however, has postponed decisions on DeFi activities and unhosted wallet providers, since the IRS is still reviewing the 44,000 comments made by the public.

IRS’s New Reporting Requirements for Brokers

The new IRS rules requires the cryptocurrency brokers such as the trading platforms, hosted wallet services, and the digital asset kiosks to disclose the details of the customers’ asset movements and gains.

These rules, which will take effect from January 1, 2025, seek to integrate crypto brokers with conventional investment firms to file for the 1099 forms and the cost basis data starting from the year 2026.

Also, the IRS has clarified that the new requirements will also include stablecoin transactions and any high-value non-fungible tokens (NFTs), but ordinary sales of stablecoins below $10,000 and NFT gains below $600 annually do not need to be reported. This regulation is meant to enhance the compliance and decrease the evasion of taxes in the high-risk area of digital assets.

Deferred Decisions on DeFi and Unhosted Wallets

While the new rule provides clear directives for the big centralized exchanges like Coinbase and Kraken, it leaves decisions concerning DeFi activities and unhosted wallets’ providers to a later time. 

The IRS added that the non-custodial industry participants would not be barred from being treated as brokers but more analysis is required. The final rules for these entities are expected to be released in the later part of the year.

The IRS highlighted the difficulties of controlling non-custodial companies, noting that such firms may not possess the necessary customer data and transparency frameworks. This decision provides some reprieve to the DeFi sector and unhosted wallet providers as more time is bought in the formulation of better rules.

IRS Requirements for Stablecoins and NFTs

The IRS has explained that most ordinary stablecoin transactions will not need to be reported, with certain exceptions for large transactions and those generating more than $10,000 in annual revenue.

Stablecoin transactions will be recorded in a grouped manner rather than specific transactions to relieve the common cryptocurrency users while at the same time helping the IRS track whales’ activities.

For non-fungible tokens (NFTs) only those taxpayers who have earned $600 or more annually from NFT sales must file and report their total income. The IRS will require the taxpayer identification information, the number of NFTs sold, and the amount of profit made in these reports. The agency will oversee NFT reporting to ensure that it adequately helps in the enforcement of tax laws.

Industry Concerns and Compliance Burden

Introducing these tax regulations has been controversial, with significant pushback from the cryptocurrency industry. Concerns have been raised about the potential overreach of the U.S. government and the burdensome requirements on entities that do not traditionally function as brokers, such as miners and software developers.

The Blockchain Association and the Digital Chamber had flagged the overbreadth of information requested and the substantial compliance burden. They argue that the proposed rule could require the submission of billions of forms, imposing significant costs and time constraints on brokers. The IRS has estimated that the new rule will affect about 15 million people and 5,000 firms.

In response, the IRS stated that it aims to balance the need for comprehensive reporting with the industry’s capacity to comply. The agency also noted that any future changes in legislation regarding stablecoins could lead to adjustments in the tax rules.

Read Also: Digital Chamber Flags Privacy Concerns In IRS Digital Asset Tax Draft

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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