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Good Morning.

The markets are up bigly thanks to Trump. In the past 48 hours, market participants have taken into account the increasing chances of Trump winning the presidency, his picking crypto-friendly JD Vance as a VP, and the listing of Ethereum ETF.

In Today's Email:

• What Matters: Mt.Gox repayment 💰️

• Case Study: LIFI $9M exploit 👾

• Governance & Features: Uniswap wallet 🦄

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

WHAT MATTERS

Kraken to Distribute Mt.Gox Funds in 7-14 Days

State of play: Kraken has received 48,641 Bitcoin (~$3.1B) and Bitcoin Cash from Mt.Gox Rehabilitation Trustee. Kraken says in an email that it will distribute the fund in 7-14 days.

• The Rehabilitation Trustee has made repayments in Bitcoin and Bitcoin Cash to over 13,000 rehabilitation creditors to date.

• Two Japanese exchanges, Bitbank, and SBI VC Trade, received and distributed their allocated funds within hours rather than the agreed maximum of two weeks.

• BitGo and Bitstamp have yet to receive their creditor distributions, with payout deadlines of up to 20 and 60 days, respectively.

• The trustee announced that creditors would be reimbursed with 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69B Japanese yen.

• The deadline for the repayments is October 31, 2024.

What’s next: If all the recently transferred Bitcoin is to be distributed to creditors, it means Mt.Gox has sent over 50,000 Bitcoins for the creditor's repayment and has ~92,000 Bitcoins left to be distributed until October 2024.

Why it matters: The Mt. Gox Creditors Telegram group members tend to dump the Bitcoin they will receive. Once the distribution starts, there will be massive selling pressure.

Our take: FWIW, it’s better for the market to meet the Mt. Gox selling pressure with the recent crypto positivity (and increasing inflow) from Trump’s increased likelihood of winning.

For builders and investors: Be prepared for the market to remain choppy for the next few months still.

CASE STUDY

LI.FI: New Hack, Old Bug

Cross-chain trading protocol LI.FI suffered a call injection attack, resulting in the theft of ~$10M in crypto assets. Peckshield reported that the vulnerability was due to the same bug that led to a hack two years ago.

• The $10M includes $6.3M in USDT, $3.2M in USDC, and $169,000 in DAI.

• Decurity reported that the cause was an arbitrary call with user-controlled data via depositToGasZipERC20() in GasZipFacet, deployed just five days ago.

• In the 2022 LI.FI hack, ~$600,000 was stolen from 29 wallets.

• LI.FI claimed that the bug in the 2022 hack was fixed, and all affected users were reimbursed.

• Currently, there are no discussions about reimbursing users affected by the latest hack.

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INSIGHTS

Binance's Standards for Investment and Listing

Credits to Wu Blockchain for the interview transcript.

Wu Blockchain is publishing a transcript of an interview with He Yi, the co-founder of Binance. The interview includes a discussion on Binance's futures, standards for investment, and listing.

Here are the key takeaways from the interview:

Criteria for Binance's investment and sectors of interest to He Yi

Binance's investments are like spreading seeds widely, driven by the belief that the industry's future relies on innovation. Binance aims to support as many projects as possible.

Binance key criteria when investing:

• Long-Term Vision: Founders should believe in the industry; those only seeking quick profits won't last.

• Skills and Accomplishments: The team's capabilities and how they complement each other are crucial.

• Mindset: Founders should have the ability to iterate and improve continuously.

Binance listing standard

Binance has strict standards and processes for project listings. Each cycle involves screening and internal reviews, and if there is strong opposition to a project, it won't pass.

To prevent front-running rumors, binance aims to minimize the time between deciding to list a project and the actual listing. The decision considers the project's technical foundation, market potential, and investment backing.

Binance’s listing standards focus on:

• Technical and Market Foundation: Does the project have a solid technical basis and market potential?

• Popularity and Attention: What is the project's market interest and user engagement?

• Investment Backing: Does the project have reliable financial support to ensure longevity?

• Project Lifecycle: Is the project sustainable, and does it have long-term development potential?

Binance’s future business focus and direction

Binance's future focus is on applying technology to enhance the crypto industry and drive innovation.

• Binance’s future focus and direction will still be on addressing global compliance issues.

• Binance also aims to attract more users through initiatives like the Square, which introduces non-crypto users to the space.

• Binance is shifting attention to Web3 wallets. The goal is to develop these wallets into a long-tail business offering on-chain services like staking and transactions.

FEATURES & GOVERNANCE UPDATE

Uniswap Launches Wallet Browser

Uniswap Labs has publicly launched its wallet browser extension on Chrome.

• The wallet works with the blockchain networks Ethereum, Base, Arbitrum, Optimism, Polygon, Blast, ZKsync, Zora Network, BNB Chain, Avalanche, and Celo.

• Introduced in February, the Uniswap wallet browser extension recorded a waitlist of 793,391 users.

• Users can earn XP and CUBEs on Layer3 by using Uniswap Extension.

Other notable feature updates:

• JuicyPerpgoes live on Arbitrum.

• SuperBoringlaunches to the public.

• Usual Moneylaunches public mainnet.

• Sei V2 mainnet betais available to the public.

• Penumbragoes live in Phase 0 of a three-stage process.

QUICK BITES

• LIFI loses ~$9M in exploit.

• OKX Wallet adds support for TON.

• Polymarketsees ATH in trading volume.

• FTX and CFTCagree to a $12.7B settlement.

• Aethirbrings in $36M in first-year revenue.

• Larry Finksays He’s a ‘major believer’ in Bitcoin.

• Coinbasenarrows its subpoena for Gary Gensler.

• Maelstorm launches BTC developer grant program.

• Bitkeyto integrate MoonPay for Bitcoin purchases.

• Polymarket taps election statistician Nate Silver as advisor.

• Trumpsays he wants the US in charge of crypto before China.

• Stripeenables Bitcoin, Ether & Solana crypto purchases in the EU.

• Deribit plans to launch BTC and ETH options to bet on the US election.

NOTEWORTHY READS & MEME

• Syndica’sread on Solana DeFi deep dive.

• Nairolf’s read on multi-layer chain abstraction stack.

• DataFinnovation’sread on how the MetaMask bridge really works.

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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.