【Chain to FM】Flow launches USD 725 million ecological fund, LFG seeks more than USD 1 billion to support UST stablecoin

【Data Intelligence】

Coinbase reported a net loss of $430 million in the first quarter

News on May 11, according to FactSet data, Coinbase Global (COIN) revenue in the first quarter of 2022 will be US$1.17 billion, while the average analyst estimate is US$1.5 billion. Transaction volume in the first quarter was $309 billion, below expectations for $331.2 billion and below last year's fourth quarter of $547 billion. Monthly transacting users (MTU) were 9.2 million, missing analysts' estimate of 9.9 million and compared with 11.4 million in the fourth quarter of last year. Coinbase posted a net loss of $430 million in the first quarter, compared with a profit of $840 million in the fourth quarter of last year. For the second quarter, Coinbase said it expects MTU and total transaction volume to be lower than the first quarter figures. The exchange also believes subscription and service revenue will also be slightly lower in the second quarter compared to the first quarter.

The difficulty of Bitcoin mining has risen to 31.25T, a record high

On May 11th, according to BTC.com data, the difficulty of Bitcoin mining has been raised from 29.79T to 31.25T, a record high. There are currently 718 unconfirmed transactions in Bitcoin. The computing power of the entire network is 222.67 EH/s, and the 24-hour transaction speed is 3.25 transactions/s.

【 Regulatory News 】

U.S. Deputy Treasury Secretary: Stablecoins Need to Comply with Bank Secrecy Act and Anti-Money Laundering Requirements

According to news on May 11, at the Financial Market Conference hosted by the Federal Reserve Bank of Atlanta, Nellie Liang, Under Secretary of the US Treasury for Domestic Financial Affairs and leader of the report of the US President’s Financial Market Working Group (PWG), said that even now there is basically no impact. Prudentially regulated stablecoins must also comply with national-level Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) requirements.

【Industry Trends】

Chainalysis completes USD 170 million in Series F financing at a valuation of USD 8.6 billion, led by GIC

On May 11th, according to The Information citing sources, the blockchain data analysis company Chainalysis completed a US$170 million Series F round of financing at a valuation of US$8.6 billion, led by the company’s existing investor, Singapore’s sovereign wealth fund GIC. . Chainalysis completed its $100 million Series E financing at a valuation of $4.2 billion in June 2021, led by Coatue; in March 2021 it completed its $100 million Series D financing at a valuation of over $2 billion, led by Paradigm.

CertiK: Rug Pull occurred in Diaos project

At 2 a.m. Beijing time on May 11, the CertiK security team found that the price of the Diaos project plummeted, and its token owner used the mint() function to mint 1 million Diaos tokens to the owner's address. The owner sent all 1 million tokens to another account (address 0xC265191e1F5fC5a95F8E1d58f366c4b05011A6EE), which immediately began distributing tokens to other addresses and selling tokens via Pancake Swap. After multiple verifications, this project belongs to the Rug Pull running project. CertiK hereby reminds everyone to identify risks and invest cautiously!

FTX US Opens Chicago HQ, Will Sponsor Supplemental Revenue Pilot

FTX US will partner with the City of Chicago and local organization Equity and Transformation (EAT) to sponsor 100 Chicagoans who will each receive $500 per month, a free bank account, and a Visa debit card to accept finance through the FTX platform knowledge education. The one-year program will begin this fall. The program will support eligible residents from the Austin, Englewood and West Garfield Park communities. EAT's existing Chicago Future Fund program currently supports eligible residents of West Garfield Park. Funding for the initiative will come from the FTX Foundation, which plans to distribute over $100 million to charitable projects in 2022 alone.

LFG seeks over $1 billion to back UST stablecoin

The Luna Foundation Guard (LFG) group is seeking to raise more than $1 billion to back the UST algorithmic stablecoin after it lost parity with the U.S. dollar, according to three people familiar with the matter. An algorithmic stablecoin like UST is meant to maintain a one-to-one peg to the price of an underlying fiat currency like the U.S. dollar. But shares of UST fell as low as $0.61 on Monday before recovering to $0.91 amid a broader sell-off in the cryptocurrency market. The group is now looking to raise fresh capital from some of the industry's biggest investment firms and market makers, the sources said. The agreement, which is currently being negotiated, offers investors the opportunity to purchase LUNA tokens at a 50% discount, although the tokens will be subject to a two-year redemption schedule. As previously reported, LFG announced on Monday that it had lent $1.5 billion worth of Bitcoin and UST to third-party trading firms. LFG initially attempted to buy up to $10 billion in bitcoin to support the stablecoin's peg.

Web3 Community Platform Highlight Completes $11 Million Seed Funding Led by Haun Ventures

Web3 community platform Highlight completes USD 11 million seed round financing led by Haun Ventures, 1kx, A_Capital, SciFiVC, Floodgate, Coinbase Ventures, 35Ventures, PolygonStudios, MischiefVC, DAOJones, OfflineVentures, GokulRajaram, LennyRachitsky, WME, MethodManagement, ThreeS ixZero, Tom Windish Wait to vote. It is reported that Highlight is an NFT platform that focuses on community building tools, providing minting tools for creators who do not have a coding or encryption background. On Highlight, creators sell NFTs to earn rewards and access to a community of collectibles.

【Elite Viewpoint】

Coinbase CEO: In the next 20 years, the encrypted economy will account for 15% of global GDP

On May 11th, CEO of cryptocurrency exchange Coinbase: In the next 20 years, the encrypted economy will account for 15% of global GDP. Crypto exchange Coinbase CFO: Choose to make 2022 the year of investing.

Musk: Trump's Twitter ban will be lifted after the acquisition is completed

On May 11, Tesla CEO Elon Musk said at FT Live's Future of the Car conference on Tuesday that if he successfully acquires Twitter, he will revoke Twitter's ban on former US President Trump. Permanent bans should be very rare and really reserved for bot accounts, scam accounts, spam accounts, I do think it would be incorrect to ban Donald Trump. Twitter permanently suspended Trump's account after his supporters stormed the Capitol on Jan. 6, 2021, "due to the risk of further incitement to violence," the company said. There are more than 80 million fans on the platform.

【What to watch today】

Flow launched a USD 725 million ecological fund, with the participation of a16z and other institutions

On May 10, Flow, a Web3 platform developed by Dapper Labs and supporting next-generation games, applications and digital assets, announced the launch of a USD 725 million ecological fund, which will focus on games, infrastructure, DeFi, and content and The creator field aims to provide support for Flow ecological projects and developers in product development, product expansion, team expansion, user acquisition, and general operations. It is reported that the participants of this ecological fund include a16z, HashKey Capital, AppWorks, Cadenza Ventures, Coatue, Coinfund, Digital Currency Group (DCG), Dispersion Capital, Fabric Ventures, Greenfield One, L1 Digital, Mirana Ventures and BitDAO, OP Crypto, SkyVision Capital, Spartan Group, Union Square Ventures and Dapper Ventures. Eco-fund participants will support existing and future developers building applications on the Flow blockchain through investments, FLOW Token grants, and in-kind support.

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