• Coinbase reported a 66% decline in transaction revenue for 2022 and a 50% decrease in total trading volume.
• The company attributed the decrease to two high-profile collapses, Luna and Terra in May 2022 and FTX in November 2022.
• Despite these losses, Coinbase saw an increase in quarterly revenue and said its operating expenses were reduced by over 30%.

Coinbase Reports 2021 Earnings

Coinbase has released its end-of-year shareholder letter, detailing its financial standing for the previous quarter and for the entirety of 2021. The company reported a 66% decline in transaction revenue for 2022 compared to 2021, while total trading volume decreased by 50%.

Causes of Decline

Coinbase attributed this decrease to two major market collapses that occurred during the year: Luna and Terra in May 2022, as well as FTX in November 2022. These events caused the crypto market to lose 64% of its value, leading to an overall drop in Coinbase’s revenue.

Quarterly Revenue Increases

Despite these losses, Coinbase reported that it had diversified its revenues into subscriptions and services which led to increased quarterly revenues. The fourth quarter net revenue was $605 million – down from $2.49 billion the previous year – but up 5% from $576 million from Q3.

Operating Expenses Reduced

The company’s operating expenses were reported at $1.2 billion – up 3% quarter-over-quarter – however due to layoffs during market crises they have reduced expenses by over 30%, leading into 2023’s first quarter.

Financial Position at Year End

Coinbase ended Q4 with $5.5 billion of US dollar resources – down 3% or $148 million from Q3 – yet stated that it remained resilient despite major shocks throughout the year and believed it was still positioned for success going forward despite potential regulation changes affecting the crypto industry

• Push Protocol (formerly EPNS) launched on BNB Chain, resulting in a 41% jump for its PUSH token.
• The launch of Push Protocol on BNB Chain will allow it to reach a wider audience and work towards its goal of onboarding one billion users to web3.
• BNB Chain has seen a surge in partnerships and collaborations over the past month.

Push Protocol Launches on Binance Smart Chain

Push Protocol (formerly known as EPNS) launched on the Binance Smart Chain, leading to a significant price increase of 41% for its PUSH token. The launch is expected to allow Push Protocol to reach a larger audience and take steps towards its goal of onboarding one billion users onto Web3.

Positive Market Sentiment

The positive market sentiment has been backed by the recent surge of partnerships and collaborations that have taken place on Binance Smart Chain over the past month, such as Uniswap’s deployment onto the chain, Greenfield’s decentralized storage system introduction, and OpenSea’s support for NFTs on Binance Smart Chain. This has resulted in Bitcoin soaring up 10%, through $23,000, with PUSH reaching year-to-date highs at around $0.44 from its daily low at $0.31.

BNB Director Comments

Alvin Kan, Director of Growth at BNB Chain commented that „the launch of Push Protocol on BNB Chain will bring a whole new level of accessibility to its easy-to-use communication interface powered by decentralized notifications and messaging.“ Harsh Rajat, project lead and founder of Push Protocol said that „launching on BNB chain helps push to get closer to its vision of onboarding one billion users to web3.“

PUSH All-Time Highs

Although PUSH still remains down 92.88% from its all-time high before today’s move marks the highest price for PUSH since June 2022. Regardless, today’s move is still an optimistic sign for the future potential growth prospects for Push protocol as it continues with its goal of expanding across multiple ecosystems.

Conclusion

Overall this news was welcomed positively with bullish market sentiment pushing year-to-date highs for PUSH token following the launch onto BNB chain which should result in greater accessibility and further progress towards their goal of onboarding 1 billion users into Web3 environments

• Layer1 Technologies, a San Francisco-based Bitcoin mining company, has been hit with a lawsuit filed by its CEO John Harney and DGF Investments.
• The complaint accuses founder Jakov Dolic and board member Tobias Ebel of exploiting an alleged state of corporate paralysis at the Swiss private equity firm Enigma Holding to seize control of the mining company and loot it for personal gain.
• The lawsuit claims that Dolic and Ebel are attempting to run Layer1 as their “own personal fiefdom“ while actively looting the company for their own profit.

Layer1 Technologies Sued by CEO

San Francisco-based Bitcoin mining company Layer1 Technologies has been hit with a lawsuit by its own CEO John Harney and investment firm, DGF Investments. The complaint accuses founder Jakov Dolic and board member Tobias Ebel of exploiting an alleged state of corporate paralysis at the Swiss private equity firm Enigma Holding (Layer1’s parent company) to seize control of the mining company and loot it for personal gain.

Lawsuit Details

The lawsuit — filed by John Harney and DGF Investments Inc. in Delaware’s Chancery Court —accuses Dolic of attempting to run Layer1as his „own personal fiefdom.“Dolic and Ebel have „wielded their majority board control to ransack Layer1, operating it for their own benefit and engaging in self-dealing transactions with impunity,“ according to the filing. The complaint accuses the duo of „actively looting the company for their own profit.“

Background Information

Enigma Holding is a holding company owning cryptocurrency-related enterprises, Bloomberg Law recently reported, believed to be the sole stockholder of Layer1. In early 2022, Layer1 became a subsidiary of Enigma when company leaders, including Dolic, exchanged their Layer1 shares for Enigma stock or cash, with Dolic reportedly cashing out for more than $16 million, per court filings. However, the lawsuit claims that Dolic and Ebel are now „taking unspecified steps to unwind the merger,“ telling Layer1 employees that Dolic owns 77% of the Bitcoin miner. The complaint calls the move „a canard designed to mislead Layer1 personnel into following Dolic’s directions“ and warns that „time is not on Layer1’s side.“

Accusations Against Founder & Board Member

The filing states that Dolic and Ebel are „already executing a scheme to wrest control of Layer 1and its assets from Enigma.“ The duo are accused of trying to exploit a leadership void created when Enigma’s board abruptly resigned in response to wrongdoing, which has created a potentially lengthy „interregnum.“

Conclusion

The compliant also accuses founder Jakov Dolicand board member Tobias Ebelof running it as his ‚own personal fiefdom’and“actively looting“thecompanyforpersonalgainrespectively. These accusations remain under investigation but could result in serious consequences if proven true.

• 168 companies accused of crypto and forex scams in the U.K. have been identified by the Bureau of Investigative Journalism (TBIJ).
• Victims have lost approximately $3.4 million (£2.8 million) in the U.K., the U.S., Canada, Turkey, Germany, and Poland.
• The U.K. government has pledged to introduce a requirement to verify information provided to Companies House to more effectively combat the fraudulent activities.

The Bureau of Investigative Journalism (TBIJ) has uncovered an alarming number of companies running fraudulent crypto and forex trading operations in the U.K. The report revealed that 168 companies across the country are accused of running scams related to cryptocurrency and forex trading. These companies are registered to London addresses and have at least one Chinese director.

Victims of these scams have been conned out of a staggering $3.4 million (£2.8 million) across the U.K., the U.S., Canada, Turkey, Germany, and Poland. These victims are often approached on social media, dating websites, and Whatsapp to invest in crypto trading platforms. The TBIJ report indicates that 17 of the companies identified are “pig-butchering” scams.

The U.K. government has acknowledged the need to address this issue and has promised to introduce a requirement to verify information provided to Companies House. However, financial crime investigator Graham Barrow warned that this legislation could still pose “significant loopholes” — including ambiguity surrounding ID verification. The U.K.’s company registration system has been identified as a major contributor to the scam due to its reputation for being a trustworthy location.

The U.K. government must take immediate action to prevent further fraudulent activities from taking place. In addition to introducing a requirement to verify information provided to Companies House, the government should also look into creating a regulatory framework that specifically addresses crypto and forex trading scams. This would ensure that victims are not only protected, but that perpetrators of fraudulent activities are held accountable for their actions.

The U.K. is home to hundreds of companies running crypto and forex scams that have cost victims across the globe millions of dollars. It is essential for the U.K. government to introduce a regulatory framework that provides individuals with the necessary protection from these fraudulent activities. Without such measures, more people will fall victim to these scams and suffer severe financial losses.

•SushiSwap has been approved to retrieve 6.2 million SUSHI tokens from early liquidity providers who have yet to claim their rewards.
•Members of the Sushi DAO have voted to give early liquidity providers a 3-month grace period to claim their SUSHI rewards before the tokens are clawed back to the Treasury.
•The DAO has also passed a proposal to allocate 100% of xSUSHI revenue to the Kanpai Treasury for the next 12 months.

SushiSwap, the decentralized exchange protocol, has recently received approval to clawback 6.2 million SUSHI tokens to the Treasury. This decision was reached after members of the Sushi DAO voted on a proposal initiated in April 2022 to retrieve the unclaimed rewards from early liquidity providers.

The voting period, which began on Jan. 16 and ended on Jan. 23, resulted in a unanimous agreement from DAO members to support the proposal with 99.85% votes. Additionally, the DAO also voted for a 3-month grace period before the clawback is executed. This means that early Sushi liquidity providers have until April 23 to claim their rewards or forfeit them to the Treasury.

The Merkle Distributor address revealed that about 6.2 million SUSHI tokens, worth approximately $8.36 million, were yet to be claimed. As such, the DAO’s decision to retrieve the unclaimed rewards will help to ensure the long-term sustainability and security of the SushiSwap protocol.

To further bolster the protocol’s runway for the next 12 months, Sushi Head Chef Jared Grey had earlier initiated a proposal to allocate 100% of xSUSHI revenue to the Kanpai Treasury. After due consideration, this proposal also received overwhelming support from the DAO with 99.9% of the total votes.

With the recent approval to clawback 6.2 million SUSHI tokens from unclaimed rewards and the allocation of 100% of xSUSHI revenue to the Kanpai Treasury, SushiSwap is one step closer to achieving its long-term sustainability and security. As such, the protocol is well on its way to becoming an industry leader in the decentralized exchange space.

• Solana has seen a 43% increase against Bitcoin since the start of 2023.
• Glassnode’s Native Token Returns vs. BTC highlights the relative price performance of large L1 native tokens versus bitcoin.
• Market capitalization groupings are defined as, Large Cap: >1B $, Mid Cap: 1B-100M $, Small Cap: 100M-50M $.

As 2021 continues to wrap up and we move into the new year, the cryptocurrency market has been enjoying a surge in growth and activity. This is particularly true for the large L1 native tokens like Solana, Binance Coin (BNB), Polkadot (DOT), Ethereum (ETH), and Matic Network (MATIC).

Solana is a high-performance blockchain network that provides quick and secure transactions. Since the start of 2023, Solana has seen a 43% increase against Bitcoin, and is continuing to soar. This makes it an attractive option for investors looking to diversify their portfolio.

Glassnode’s Native Token Returns vs. BTC highlights the relative price performance of large L1 native tokens versus bitcoin. According to their data, BNB is currently down 3% against Bitcoin since Jan. 4, while DOT and ETH are both up 4.8% and 2.2%, respectively. Matic Network has also seen an increase of 2.8%.

Market capitalization groupings are divided into three categories: Large Cap: >1B $, Mid Cap: 1B-100M $, and Small Cap: 100M-50M $. While in the last week since Jan. 10, all three of these groups have posted negative returns against Bitcoin. Large caps are down 5.5%, mid caps are down 0.27%, and small caps are down 4.36%.

Overall, the cryptocurrency market is continuing to grow and expand, with an increasing interest from both institutional and individual investors. This has led to a surge in the price of native tokens like Solana, which is up 43% against Bitcoin since the start of 2023. While other tokens like BNB, DOT, ETH, and Matic have also seen price increases, the market capitalization groupings have seen a slight decrease in the last week. Nevertheless, the overall trend of the market has been positive, and the future is looking bright for these native tokens.

• Crypto.com will delist USDT for Canadian users on January 31st at 06:00 UTC.
• The decision to delist USDT follows instructions from the Ontario Securities Commission.
• Canadian users are encouraged to review their USDT balances and no USDT transactions will be accepted after the delisting date.

Cryptocurrency exchange Crypto.com is set to delist USDT and its associated trading pairs from its app and platform for users in Canada starting on January 31 at 06:00 UTC. The decision to delist USDT comes after instructions from the Ontario Securities Commission under the terms of Crypto.com’s registration undertaking for a restricted dealer license.

The delisting of USDT is part of the Canadian Securities Administrators (CSA) strategic plan to strengthen its oversight of crypto trading platforms. A key goal of the CSA’s 2022-2025 Business Plan is to study the implications of stablecoins in the capital markets, including their use to trade crypto assets.

Crypto.com has urged Canadian users to review their USDT balances, as all USDT transactions will be suspended after the delisting date. Crypto.com also announced that it will cancel all USDT spot orders and won’t credit any USDT deposited in the Crypto.com wallet after January 31. Any remaining USDT balances will be converted to USDC.

Crypto.com is currently under pressure as asset outflows from the exchange have increased. The exchange has taken steps to ensure the safety of customers’ funds, such as implementing measures to prevent large-scale liquidations and increasing the frequency of collateral checks.

Crypto.com has been a leader in the cryptocurrency space and its delisting of USDT is yet another example of the exchange taking proactive steps to ensure compliance with applicable regulations. The delisting of USDT is yet another reminder of the importance of regulatory compliance in the crypto space.

• Binance is in the process of acquiring Gopax, with customers having $471 million of funds locked in Genesis Trading.
• If the acquisition falls through, investors could face a loss of $471 million.
• Genesis is reportedly looking to file for bankruptcy, further decreasing the chances of recovering the funds.

Binance, the world’s largest cryptocurrency exchange, is in the process of acquiring Gopax, a South Korean crypto exchange. Unfortunately, Gopax has about $471 million of customers’ funds locked in Genesis Trading. This has put Gopax investors at risk of a significant loss should the acquisition by Binance fail.

Binance reportedly completed due diligence for the acquisition of Gopax on Jan. 2, and purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company. This step is part of an effort to acquire Gopax, which is currently the third-largest crypto exchange in South Korea.

However, Gopax is facing a shortfall of 600 billion won (approximately $471 million) from its deposits in Genesis Trading. The funds were reportedly locked in Genesis before it suspended redemption on Nov. 16, 2022 due to the FTX fallout. This has left Gopax customers with little to no chance of recovering any of their funds, should the acquisition by Binance fail.

Chances of redeeming the funds locked in Genesis are further decreasing as the crypto lender is reportedly looking to file for bankruptcy. This would mean a complete loss of the funds for Gopax customers, and a major financial blow for the exchange.

At this point, the future of Gopax’s customers’ deposits is uncertain. However, if the negotiations for Binance’s acquisition of Gopax shares fail, there is a high possibility that the damage to GoFi investors will become a reality. It remains to be seen how the situation will play out, but the stakes are high for both Gopax and its customers.

• 3AC Liquidators have issued a subpoena to 3AC Co-Founder Kyle Davis.
• The subpoena requires Davis to provide all documents related to 3AC’s accounts, wallet addresses, and private keys.
• Davis is expected to respond to the subpoena before Jan. 26, 2023.

The Three Arrows Capital (3AC) liquidators have issued a subpoena to 3AC Co-Founder Kyle Davis, ordering him to provide all documents and financial information related to his collapsed hedge fund before Jan. 26. The subpoena was approved by the U.S. bankruptcy court on Dec. 7, 2022, and served via email and publicly on Twitter.

The documents requested cover a wide range of topics, including 3AC’s centralized and decentralized accounts, digital and fiat holdings, securities, wallet addresses, private keys, and other tangible and intangible assets. The liquidators have instructed Davis to provide the documents in their original form, and to not redact any details. In addition, the documents should cover the company’s dealings since its inception on Jan. 1, 2012, to date.

The Supreme Court of Singapore also issued a similar subpoena on Dec. 10, 2022, ordering 3AC’s former CEO, CFO, and other senior executives to provide documents related to 3AC’s activities since its launch.

The 3AC liquidators have stated that they “will carefully review all documents and financial information provided by Mr. Davis and other 3AC management, as well as any third parties involved, to help determine the cause of the company’s collapse and the appropriate actions to be taken.”

The liquidators are also looking into possible cases of fraud or misappropriation of funds by 3AC executives. They have stated that they “will take all appropriate steps to ensure that any individuals or entities that played a part in the collapse of 3AC are held accountable.”

The liquidators have warned that failure to comply with the subpoena could result in further legal action against Davis, including contempt of court proceedings. He is expected to respond to the subpoena on or before Jan. 26, 2023.

• Magic Eden, a Solana (SOL) NFT marketplace, has promised to refund users who mistakenly bought unverified NFTs from its platform.
• The incident was confirmed by the creator of the ABC NFTs HGE, who said several high-value NFTs suffered the most from the exploit.
• In its Jan. 4 statement, Magic Eden said users must hard refresh their browsers to view verified NFT collection items and promised to refund users.

Magic Eden, a Solana (SOL) NFT marketplace, recently announced that it would refund users who mistakenly bought unverified NFTs from its platform. This announcement comes after several users of the NFT marketplace reported that scammers had passed off fake NFTs as part of popular collections like y00ts and ABC and sold them for hundreds of dollars.

The incident was confirmed by the creator of the ABC NFTs HGE, who said that several high-value NFTs had suffered the most from the exploit. On-chain data shows that the hacker had made around 540 SOL ($7,100) from the exploit. Another NFT collection DeGods urged its community to verify if an NFT was part of its collection on its website before purchasing.

In response, Magic Eden released a statement on Jan. 4, where it claimed that it had fixed the problem. According to the marketplace, users must hard refresh their browsers to view verified NFT collection items. The platform said the exploit had affected only four NFT collections from which users had bought 25 NFTs, and attributed the problem to a UI issue caused by a new feature released to Snappy Marketplace and Pro Trade tools.

In its statement, Magic Eden promised to refund users who had mistakenly bought unverified NFTs from its platform. The platform also urged users to remain vigilant and to look out for any suspicious activity on the marketplace. Magic Eden said that it would continue to update its users on any future security updates or changes.