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Michael Egorov, the CEO of decentralized finance (DeFi) firm Curve Finance, is being sued for fraud by venture capital firms ParaFi Capital, Framework Ventures and 1kx in the U.S.

The popular trading platform will end support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) on June 27th.

Tarbert will guide the company’s global strategy as it contends with regulatory issues in the U.S.

Ethereum co-founder Vitalik Buterin laid out a roadmap in a blog post comprising three major technical transitions that he believes are needed to ensure the success of the Ethereum blockchain.

Buterin contends that these transitions – Layer 2 scaling, wallet security enhancement, and privacy measures – will be pivotal in preserving Ethereum’s decentralization and assuring its open and permissionless nature for all users.

According to Buterin, if these transitions fail to occur, the sustainability of Ethereum could be undermined.

The first one is scaling Layer 2s. In the last couple of years, Ethereum has rapidly witnessed the emergence of a Layer 2 ecosystem consisting of Optimistic Rollup and Zero Knowledge-Rollup solutions. These solutions have helped reduce the cost of transactions, but since most activity still takes place on the main network, the L2 space still needs to mature and scale further. 

Buterin warned that without Layer 2 scaling, Ethereum could face escalating transaction fees, particularly during market expansion phases or “bull runs.” This could push users towards centralized alternatives, he warned.

“Without the first [L2 scaling], Ethereum fails because each transaction costs $3.75 ($82.48 if we have another bull run), and every product aiming for the mass market inevitably forgets about the chain and adopts centralized workarounds for everything,” Buterin stated.

Emphasis on wallet security

In his blog, Buterin further highlighted the importance of wallet security. He contended that potential security concerns could deter users from storing their funds on the Ethereum network, forcing them to opt for centralized exchanges instead.

“Without the second [wallet security], Ethereum fails because users are uncomfortable storing their funds (and non-financial assets), and everyone moves onto centralized exchanges,” Buterin said.

He suggested transitioning to smart contract wallets that support complex features like social recovery, similar to account abstraction. According to Buterin, social recovery wallets would be necessary for improved security and user experience.

The Ethereum co-founder also emphasized the importance of privacy as the third transition. He expressed concern that without robust data privacy measures in place, users could be discouraged from using Ethereum. Buterin suggested implementing stealth address protocols to provide privacy features for Ethereum users.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Fintech trading app Robinhood has decided to delist three cryptocurrencies amid the Securities and Exchange Commission’s crackdown on cryptocurrency exchanges. 

The firm will not support Solana (SOL), Polygon (MATIC) or Cardano (ADA) after June 27, 6:59 p.m. ET. Users may transfer these cryptocurrencies until this deadline. Afterward, the firm will sell the coins at market value and credit the amount into the holder’s Robinhood buying power.

“No other coins are affected and your crypto is still safe on Robinhood,” the firm wrote in a Friday statement.

The move comes three days after the firm’s Chief Legal Compliance Officer Dan Gallagher said it was reviewing the SEC’s lawsuits against crypto exchange giants Binance and Coinbase. Gallagher testified in the House Agriculture Committee that while the firm obtained a broker-dealer license for securities trading, it may not have the capacity to trade what the SEC deemed unregistered securities, such as Solana, Polygon and Cardano. 

 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

After the recent Bedrock upgrade, Optimism, a Layer 2 network that utilizes optimistic rollups, has experienced a notable drop in network costs.

The majority of costs for Optimism users stem from the fees required to publish transaction data on the Ethereum mainnet. The Bedrock upgrade reduced transaction fees through optimized batch compression and using Ethereum as a data availability layer. This has reduced network costs by 56% (from 6,890 to 3,000 gas units), according to data compiled by Optimism’s core developer OP Labs on Dune.

As a result, the Bedrock upgrade has already saved users almost $150,000 in the last few days, data shows.

“The majority of the total transaction cost, about 86%, comes from the expected costs to submit data to [Ethereum],” Michael Silberling, onchain data analyst at OP Labs, told The Block.

Optimism users have also been boosted by average Ethereum transaction fees falling on its main layer. This makes it cheaper for Optimism to get its batches of transactions confirmed on Ethereum. With both of these factors in mind, average transaction fees on Optimism have decreased from $0.57 to $0.16.

However, Silberling clarified that the “average cost per transaction” is subject to fluctuations in Ethereum transaction fee prices, something which is out of Optimism’s control. Therefore, while the reduced transaction cost paints an encouraging picture, this metric can vary.

Optimism’s approach bundles multiple transactions together, which are then recorded on the Ethereum blockchain as a single transaction. It leverages the use of the OP Stack, a modular blockchain tool that enables developers to build their own chains.

The stack, which is also used by the Coinbase-backed project Base for their own Layer 2 network, facilitates faster and cheaper transactions while maintaining — to some degree — the security benefits of the Ethereum mainnet. Currently, the Optimism network holds around $830 million in locked assets, per data from The Block.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Consensus 2023 participants explored how user-focused design, cultural understanding, and gradual decentralization can drive mainstream crypto adoption

Consensus 2023 visitors discussed DeFi’s growth, its need to comply with regulations, and the challenges of balancing crypto-native concepts with traditional finance requirements.

News of a possible halt in U.S. dollar withdrawals sparked an increase in bitcoin trading as customers looked to remove their assets from the exchange, one observer said.

MoonPay, a $3.4 billion crypto startup backed by a host of Hollywood heavyweights, gifted celebrities valuable NFTs at the height of the crypto craze in late 2021, according to sources with direct knowledge of the matter.

For more than a year, observers have speculated that at least some of the many celebrities MoonPay helped acquire Bored Ape Yacht Club NFTs were given the digital collectibles in exchange for promoting the company and the valuable non-fungible token collection. Now, two people familiar with the matter told The Block that MoonPay did give at least some of the celebrities Bored Ape NFTs without expecting payment.

MoonPay denies giving celebrities Bored Apes free of charge. A MoonPay spokesperson said the crypto firm charged its celebrity clients “in full for the price of the NFTs” and that customers pay for the service. Pressed on exactly when invoices were sent and whether all MoonPay’s clients paid their bills, another spokesperson declined to comment further.

Celebrity boosters 

The list of celebrities who boasted after scoring Bored Apes through MoonPay is as long as it is illustrious and includes pop stars Justin Bieber and Madonna, late-night host Jimmy Fallon, Oscar-winning actress Gwyneth Paltrow and celebrity debutante Paris Hilton. Celebrities generally touted MoonPay’s services — the company eventually created a VIP concierge service for high-net worth individuals — after receiving their Bored Apes, thus boosting the startup’s profile.

Bored Apes are arguably the gold standard of NFT collections. Why and how so many stars across entertainment and professional sports came to possess the NFTs in such quick succession was already a subject of intense speculation. A class action lawsuit filed in late 2022 alleged that celebrities promoted Bored Apes and MoonPay on social media and television without disclosing either their financial interests in the companies or if they had received compensation.

The plaintiffs also accuse the celebrities of conspiring with MoonPay and Bored Apes’ creator Yuga Labs to inflate the value of the NFTs. MoonPay is an investor in Yuga Labs.

Lawyers filed the class action lawsuit in U.S. District Court in California last December. Besides naming Bieber, Madonna, Fallon, Paltrow and Hilton, it also alleges actor Kevin Hart and star athletes Serena Williams and Stephen Curry took part in the promotional scheme. In early 2022 MoonPay said in a Twitter post that Hart had joined the Bored Ape community. 

The lawsuit is currently awaiting a procedural ruling before advancing.

When the three major Hollywood talent agencies, CAA, WME and UTA were asked if their clients had been given Bored Apes in exchange for promoting the NFTs and MoonPay, CAA declined to comment. WME and UTA didn’t respond to requests for comment. The three agencies together represent nearly all of the celebrities both named in the lawsuit and those which received their Bored Apes through MoonPay.

‘High-profile’ investors

Several months before news of the lawsuit broke, MoonPay announced dozens of “high-profile” investors had collectively poured $87 million into the company. That list included Bieber, Hilton and Paltrow. Also making MoonPay’s list of “music, sports, and entertainment VIPs” were Snoop Dogg, Diplo and Post Malone, all of whom were also named in the class-action lawsuit alleging MoonPay was the “front” in a “scheme” to use celebrities to hype Bored Apes and the crypto platform founded by CEO Ivan Soto-Wright in 2018.

Snoop Dogg is an investor in both MoonPay and Yuga Labs, according to court documents.

Soto-Wright told The Block in March 2022 that his firm’s A-list clients had “independently” approached the company because they wanted to buy NFTs. In another interview, Soto-Wright also said clients are always invoiced and pay for the digital assets they receive via MoonPay.

MoonPay’s celebrity investors giving the company $87 million was part of the firm’s largest capital injection, a $555 million Series A financing round. Tiger Global Management and Coatue led the round, which gave MoonPay its $3.4 billion valuation. Notably, less than a month later Soto-Wright bought a $38 million mansion in Miami.

Last month, The Information reported that $150 million of the $555 million raised went to Soto-Wright and other MoonPay executives, meaning the company only received $405 million in fresh capital. Since that funding round MoonPay has not raised more money.

The NFT broker

To a degree, the saga surrounding MoonPay’s actions began in November 2021 when Fallon flaunted a Bored Ape dressed in a captain’s hat and heart-shaped sunglasses while hosting the long-running TV program “The Tonight Show.” He happily pronounced he had scored the NFT using MoonPay’s service.

A few weeks after Fallon talked up his Bored Ape, MoonPay quietly set up a concierge service in order to help celebrities and the super-rich buy NFTs without the hassle of setting up a crypto wallet. A MoonPay spokesperson told The Block at the time that there was no commercial relationship between the company and Fallon.

There followed a raft of similar incidents involving Bored Apes with MoonPay quickly building a glittering client roster including stars like Madonna, Snoop Dogg, DJ Khaled, Bieber and Hilton. Later in 2022, MoonPay disclosed Snoop Dogg, Bieber and Hilton had all invested in the company.

But in the roughly 18 months since the Fallon segment, many have been skeptical about how MoonPay sprang from relative obscurity to become, almost overnight, the apparent NFT broker of choice for the rich and famous.

About a year ago a Youtuber called Coffeezilla, who boasts nearly 3 million followers, posted his own exploration of how much MoonPay likely paid to score time in a Post Malone music video which features him buying a Bored Ape. The video has been viewed nearly 300,000 times.

MoonPay class action lawsuit

In the aforementioned class action lawsuit, the plaintiffs’ allege that long-time talent agent Guy Oseary — who at one point managed Madonna — devised a plan with Yuga Labs and MoonPay in order to promote Bored Apes. Through his venture capital firm Sound Ventures, which he co-founded with actor Ashton Kutcher, Oseary has invested in both MoonPay and Yuga Labs.

Sound Ventures and Oseary did not respond to requests for comment.

Although the lawsuit claims Oseary used MoonPay to “obscure” how celebrities in the alleged scheme were paid, it does not detail the mechanics of how the transactions were executed, nor who ultimately paid for the NFTs.

Earlier this year CNN reported that “several former MoonPay employees … were skeptical” celebrities had paid for their Bored Apes “because there was no evidence on the blockchain.”

Following the trail of blockchain transactions, at least one internet sleuth has pointed to data, and publicly-available information about Bieber, which suggests the pop star might not have spent his own money when buying a Bored Ape for $1.3 million, which at the time was as much as four times more than the asking price.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.