Crypto.com Sues SEC & Gary Gensler

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Good Morning.

While the market is flip-flopping, just like the US election prediction market results on Polymarket, CT is going back to trading memes — especially as Murad actively shills the memecoin supercycle thesis. Anyway, ZachXBT was able to find 11 of his wallets. I guess we’re all trading animal coins again in the near future.

Also, the second episode of our pod is live! Thanks for coming, Dorothy :)

In Today's Email:

• What Matters: Crypto(.)com Sues SEC & Gensler ⚔️

• Case Study: The Realities of Crypto 🔍️ 

• Governance & Features: Jupiter’s Mobile App 📱 

You read and share. We listen and improve. Send us feedback at [email protected].

TOGETHER WITH

VaultCraft launches V2, TVL skyrockets above $100M

VaultCraft launches V2, partners with Safe, and secures $100M+ in Bitcoin

• Matrixport, Asia’s leading crypto providers, commits $100M+ in Bitcoin

• OKX Web3 to launch Safe Smart Vaults with $250K+ in rewards

Earn Now

WHAT MATTERS

Crypto.com Sues SEC & Gensler Over Wells Notice

State of play: Crypto(.)com has filed a lawsuit against the US SEC and Chair Gary Gensler after receiving a Wells Notice on August 22, signaling potential enforcement action.

• CEO Kris Marszalek claims the SEC is unlawfully expanding its jurisdiction by classifying most network tokens, except Bitcoin and Ethereum, as securities.

• The suit seeks to limit the SEC's overreach and protect crypto’s future in the US.

• Crypto(.)com also petitioned the SEC and CFTC to clarify the regulation of cryptocurrency derivative products.

• Crypto(.)com's filing revealed the SEC has been investigating the company for over two years, with a formal probe starting on March 28, 2023.

• Cronos (CRO) fell following the news.

What’s next: Crypto(.)com will await the court’s decision on its lawsuit, which could set a major precedent for crypto regulation in the US. Meanwhile, the SEC may continue its enforcement actions against other crypto firms.

Why it matters: A ruling in favor of Crypto(.)com could limit the SEC's reach, potentially reshaping crypto regulation and influencing other lawsuits, including those involving Coinbase and Binance.

Our take: Crypto(.)com’s lawsuit reflects growing industry frustration over regulatory uncertainty. A win could lead to clearer guidelines and benefit the market, but if the SEC prevails, it may intensify the crackdown on non-Bitcoin and Ethereum tokens.

For builders and investors: The theme in the US will remain regulation by enforcement and clarity by court win in the near future.

CASE STUDY

Emily Lai’s Take on the Realities of Crypto

Credits to Emily Lai for the original tweet

Emily Lai is dropping truth bombs that often go unspoken in the crypto industry. From the misinterpretation of metrics to the experimental nature of most projects. Here are some key points from Emily’s take that highlight the state of crypto today:

• Wallets ≠ Unique Users: The number of wallets doesn’t equate to the number of unique users, making user engagement metrics often misleading.

• Vanity Metrics Over Quality: Some CEXs and launchpads prioritize inflated social media metrics over quality for token listings.

• Echo Chamber Marketing: The industry’s marketing efforts often feel like projects are just marketing to each other, rather than reaching new users.

• Self-Created Problems: Many solutions in the space address problems that the industry itself created, such as liquidity fragmentation.

• Keep Good People Close: Trustworthy and reliable people are critical in an industry that attracts short-term thinkers due to its capital intensity and liquidity.

• Onchain ≠ Necessary: Not everything in crypto needs to be decentralized or on-chain; some applications simply don’t need it.

• Web3 Marketing Needs Clarity: The term “Web3” is vague and overused, covering anything from blockchain gaming to the new internet.

• Incentives Shape Intentions: While some shill tokens because they believe in the tech, others promote whatever they’re paid to.

• Remote Work Advantage: Crypto offers global, remote work opportunities, connecting professionals with some of the brightest minds.

• Still an Experiment: Nearly everything in the space remains experimental, as the industry evolves and defines itself.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

INSIGHTS

Scroll’s SCR Token Launch

Binance is set to launch pre-market trading for Scroll's native token, SCR, starting October 11. Binance claims to be the first platform to list SCR.

• Before the listing, SCR will be available for farming via Binance Launchpool from October 9, with users able to lock BNB and FDUSD to earn SCR airdrops.

• The initial circulating supply on Binance will be 190M tokens.

• Binance’s pre-market trading service allows users to trade "actual tokens" before the spot market listing.

• However, this offering is not available in certain regions, including the US and Canada.

• The total supply of SCR is 1B, with 5.5% allocated to the Launchpool rewards.

FEATURES & GOVERNANCE UPDATE

Jupiter’s Mobile App

Jupiter Exchange has launched the Jupiter Mobile App, designed to simplify the process of buying and using Solana (SOL). The app offers various payment methods like Apple Pay, credit/debit cards, PayPal, and Google Pay.

• The app features an innovative Auto-Mode that manages slippage and priority fees while retrying transactions automatically, making token swaps seamless.

• The app utilizes “Jupiter Routing” which allows users to receive the best prices with zero transaction fees.

• Additionally, a partnership with MoonPay enhances the on-ramping experience, allowing users to purchase SOL with familiar payment options.

Other notable feature updates:

• Renzo launches ezEIGEN.

• Puffer Finance has launched UniFi AVS.

• Sui has launched Sui Bridge on Mainnet.

• Musubi enables fingerprint authentication for asset swap.

• World Liberty Financial has opened its whitelists for new users.

• EigenLayer & LayerZero introduced Crypto Economic Decentralized Verifier Networks (DVNs).

QUICK BITES

• Canary Capital files for a spot XRP ETF.

• Notcoin and Dogs to burn $4M in tokens.

• Linea proposes a decentralization roadmap.

• Fan tokens surpass $1B in 24-hour trading volume.

• Scroll debuts plan to airdrop SCR governance token.

• US bankruptcy judge approves FTX reorganization plan.

• Babylon pulls $1.5B in staking deposits as the cap got lifted.

• HBO documentary suggests Peter Todd is Satoshi Nakamoto.

• Midas opens mTBILL and mBASIS to retail traders, an EU first.

• Standard Chartered says SOL price could surge 5x if Trump wins.

• UN reports rising use of crypto for fraud and money laundering in SEA.

NOTEWORTHY READS & MEME

• Decentralised’s read on money router.

• Coinmetrics’ read on Q3 2024 mining data.

• YB’s read on the food critics of ETH and the road of 10k EIPs.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.