The first crypto hedge fund to receive a licence from Dubai

Hello, and welcome to De.Nomics newsletter, your daily digest to stay ahead in the world of Web3 and decentralized technologies at a regional focus. Today, we have plenty of trending news and stories. So, get your cup of tea and some biscuits, and let’s go ahead.
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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

•  CZ can’t leave the US.

• Ark Invest sold around $5.3 million worth of Coinbase shares.

• AI Lightning Cat can fix smart contracts.

• Nine Blocks becomes the first crypto hedge fund to receive a licence from Dubai’s VARA.

• Spot Bitcoin ETFs have almost $100M in AUM in Brazil.

Global Biscuits

CZ can’t leave the US.
Former Binance CEO Changpeng "CZ" Zhao, who recently pleaded guilty to violating the Bank Secrecy Act, must remain in the United States for the time being, according to a federal judge's ruling. This decision comes after an earlier ruling that would have allowed Zhao to return to the United Arab Emirates (UAE) while awaiting sentencing in February 2024. Prosecutors argued that Zhao poses a flight risk due to his wealth and the absence of an extradition treaty with the UAE. Despite putting up a $175 million bond, Zhao will remain in the U.S., and a bond hearing may be scheduled in the future.

Ark Invest sold around $5.3 million worth of Coinbase shares.
Cathie Wood's Ark Invest sold around $5.3 million worth of Coinbase shares (COIN) on Monday, taking advantage of the cryptocurrency exchange's stock reaching its highest level in 18 months. Ark Invest also purchased approximately $1.2 million worth of Robinhood shares (HOOD) for its Ark Fintech Innovation ETF, following a trend of increasing its exposure to the fintech company. The move comes as Coinbase stock has risen over 50% this month and 228% year-to-date, reaching its highest level since April 2022. Meanwhile, Robinhood shares are down over 8% this month and 1.57% for the year.

AI Lightning Cat can fix smart contracts.
Researchers have introduced "Lightning Cat," an AI model designed to identify vulnerabilities in smart contracts. Using deep learning techniques, the model aims to catch potential problems in smart contracts before they can be exploited by malicious actors. Lightning Cat is based on three optimized deep learning models: CodeBERT, LSTM, and CNN, which are trained on data sets comprising thousands of vulnerable contracts. While the model enhances smart contract security, there is also a risk of malicious actors exploiting it to detect bugs and exploit them. Developers are urged to conduct regular code audits and adopt responsible vulnerability disclosure policies.

Tastes of the regions

Nine Blocks becomes the first crypto hedge fund to receive a licence from Dubai’s VARA.
Crypto hedge fund Nine Blocks Capital Management has become the first cryptocurrency hedge fund to receive a license from Dubai's Virtual Assets Regulatory Authority (VARA). The hedge fund is also making Dubai its global headquarters. Nine Blocks follows a market-neutral trading strategy, focusing on arbitrage opportunities and market inefficiencies across the cryptocurrency space. The comprehensive regulatory framework in Dubai has attracted a growing community of crypto businesses to the region. Nine Blocks co-founder Henri Arslanian highlighted the ecosystem created by VARA, facilitating easy collaboration and information exchange among crypto businesses in Dubai.

Spot Bitcoin ETFs have almost $100M in AUM in Brazil.
Spot bitcoin exchange-traded funds (ETFs) in Brazil have gathered substantial assets, with a total of $96.8 million in assets under management (AUM) as of November 21. Hashdex's Nasdaq Bitcoin Reference Price FDI (BITH11) leads the market with $57.8 million in AUM, representing about 60% of the market share. Other providers include Itaú Asset Management, in partnership with Galaxy Digital, and QR Capital. Marcelo Sampaio, CEO of Hashdex, attributes the success of bitcoin ETFs in Brazil to pro-market digital asset regulations and growing interest from large institutions. The relatively low fees of ETFs in Brazil have also contributed to their popularity among investors.

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