CZ wealth falls $11.9 Billion

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Web3 and Google's Generative AI Implications

• CZ wealth dropped $11.9 Billion & Binance market share declines

• Gemini & Genesis saga continues

• Proof of Stake market drops by 7%

• Solana launches a web3 incubator

• Buy Bitcoin search on Google 🚀

• DIFC partners with RAK DAO

• Official registration for Zodia Markets in Ireland

• Taiwan officially proposes crypto bill

• Dictionomics: Proof of Stake

A must-have
Web3 and Google's Generative AI Implications

As Web3, the next phase of internet development is taking center stage, bringing about transformative changes to the digital landscape. While it promises decentralization, blockchain technology, and a reimagined web experience, it also ushers in unique challenges, particularly regarding intellectual property (IP) rights and content generation using generative artificial intelligence (AI). Google, a major player in the AI field, is navigating these challenges as it faces litigation and strives to balance innovation with responsibility.

Google's Bard, a powerful AI chatbot, is a pivotal tool in this landscape, capable of generating content, including NFTs. This, however, raises ethical concerns and legal questions regarding web ownership, data privacy, accountability, and content quality.

Google's response, the Generative AI Shield program, provides legal protection for certain generative AI tools like ChatGPT, Verse, and more, enabling users to use AI-generated content without infringing on their rights. However, Bard, a complex and unpredictable AI, is notably absent from this protection, placing the onus on users to navigate legal complexities.

This decision has sparked diverse reactions, with some viewing it as a responsible approach to AI's unpredictability and others as a barrier to creativity. It prompts users to ponder how they'll respect web ownership, verify information, and handle ethical dilemmas when using Bard.

As Web3 and generative AI continue to evolve, the implications for web ownership, content creation, and legal frameworks will remain at the forefront of discussions, shaping the future of the digital landscape. Users must tread carefully in this uncharted territory, balancing innovation with responsibility.

Global Biscuits

CZ wealth dropped $11.9 Billion & Binance market share declines.
Binance founder CZ experienced a significant drop in wealth, estimated at approximately $11.9 billion. This fall in wealth was attributed to a 38% decline in trading revenue at Binance, the largest cryptocurrency exchange globally. CZ's net worth, which had reached a peak of $96 billion in January 2022, has decreased to $17.2 billion, according to the Bloomberg Billionaires Index. The calculation of Binance's revenue was based on trading data from spot and derivatives markets sourced from platforms like CoinGecko and CCData.

Binance has been facing a steady decline in its market share among exchanges that do not support USD. Its market share has dropped from 74% in December 2022 to 50% this month. This decline is attributed to various factors, including executive departures, regulatory challenges, and charges from the Commodities Futures Trading Commission and the US Securities and Exchange Commission. These developments have raised concerns among trading firms, leading to a reduction in their trading activities on the exchange. Binance's market share dropped to nearly zero on October 23, coinciding with a Bitcoin surge to $34,000. In contrast, OKX's market share exceeded 50% during this time, According to data from The Block's data dashboard.

Gemini & Genesis saga continues.
Gemini Trust Co. has filed a complaint against the bankrupt Genesis Global Holdco LLC, disputing ownership of nearly $1.6 billion worth of Grayscale Bitcoin Trust (GBTC) shares. The conflict arises from an agreement between the two companies as part of Gemini's Earn Program, aiming to secure loans made to users. Gemini alleges that Genesis assured the delivery of these shares to secure the loans, aiming to satisfy user claims. The termination of the Earn Program led to ongoing disputes, with Gemini asserting Genesis took actions to harm users and delay asset recovery. This conflict follows Genesis's bankruptcy filing earlier in the year, along with regulatory issues that have entangled both firms, attracting scrutiny from authorities like the SEC and the New York Attorney General.

Proof of Stake market drops by 7%.
The proof-of-stake (PoS) market experienced a 7% decline in market capitalization, totalling $254 billion in the most recent quarter, as reported by Staked, a non-custodial staking platform associated with Kraken. During this period, the value of staked assets rose by 3%, reaching $74 billion, while annualized staking rewards decreased by 7% to $4.1 billion. The average PoS staking yield declined by 4% to 10.2%. PoS's share of the total cryptocurrency market capitalization also decreased by 2%, down to 22%. Staked sees these metrics as indications of a potential move away from the market's low point despite challenges from regulatory uncertainties and macroeconomic issues that kept the market in a holding pattern. Although quarter-over-quarter assets were down 5-10%, a comparison to the year-on-year gains, excluding stablecoins, reveals an increase of 10-40%, suggesting signs of upward movement beyond the market's lowest point.

Solana launches a web3 incubator.
Solana Labs has introduced a startup incubator as a move to attract founders to choose Solana as their preferred blockchain. The incubator aims to support web3 startups and navigate the challenges unique to blockchain ventures. This initiative follows Solana Labs' previous efforts for network growth, including a hackathon and AI accelerator, alongside its recent $314 million private token sale. Although the investment specifics for the incubator were not disclosed, this move aligns with a broader trend in the blockchain space, with other Layer 1 networks, like Aptos, launching similar initiatives to entice developers. The Solana incubator intends to offer guidance on engineering, go-to-market strategies, and fundraising while emphasizing the advantages of Solana to entice skilled teams already operating on other blockchains. Additionally, the program seeks to connect startups with venture capital firms. Despite a recent decline in daily active addresses using Solana, the Solana Foundation contends that this trend does not indicate a notable reduction in actual users of the platform.

“Buy Bitcoin” search on Google 🚀
Following a substantial surge in Bitcoin's value, Google searches for "buy Bitcoin" increased globally, with the UK experiencing an astounding 826% rise within a week, as per data from Cryptogambling.tv. Alongside the UK, queries related to purchasing Bitcoin surged worldwide. Searches such as "Should I buy Bitcoin now?" in the US surged over 250%, and inquiries like "Can I buy Bitcoin on Fidelity?" jumped more than 3,100%. A worldwide search for "Is it a good time to buy Bitcoin?" grew by 110%. These increased search volumes coincide with Bitcoin's price surpassing $35,000 for the first time since May 2022, highlighting the heightened interest amidst anticipation for the approval of BlackRock's spot Bitcoin ETF, predicted with a 90% probability by January 2024, as suggested by ETF analysts.

Tastes of the regions

DIFC partners with RAK DAO.
The Dubai International Financial Centre (DIFC) Courts has signed an agreement with the Ras Al Khaimah Digital Assets Oasis (RAK DAO) to introduce DIFC's digital economy services within the new RAK Digital Assets Oasis Free Zone. The collaboration aims to strengthen the digital ecosystem, resolve disputes, and promote the digital economy's growth. The partnership includes the use of a digital vault, tejouri, a secure document storage system that uses advanced security measures such as encryption and biometric authentication. The partnership aims to support business innovation, drive awareness of digital economy services, and provide a legal framework for resolving digital economy-related disputes in the UAE. This collaboration signifies a significant step in fostering a robust digital ecosystem and highlights a commitment to advancing judicial systems in the digital economy.

Official registration for Zodia Markets in Ireland.
Zodia Markets, a digital asset exchange and brokerage platform backed by Standard Chartered, has attained registration as a virtual asset service provider (VASP) from the Central Bank of Ireland. The company views this registration as a pivotal step, signaling its entry into the European Union market. According to Zodia Markets Ireland CEO Michael Walsh, this move follows the firm's crypto asset registration by the UK's Financial Conduct Authority and sets the groundwork for potential authorization under MiCA regulations when they are implemented. With this VASP registration, Zodia Markets Ireland aims to provide over-the-counter (OTC) trading and exchange services specifically to institutional clients within Ireland. The company emphasized its focus on compliance and collaboration with European regulators, anticipating the forthcoming implementation of the Markets in Cryptoassets Regulation (MiCA) in the EU. This registration further solidifies Ireland's growing popularity as a base for digital asset firms, following recent similar decisions by industry giants like Coinbase.

Taiwan officially proposes crypto bill.
Taiwan has initiated the first reading of a draft crypto act in its parliament, proposing a special law to regulate the crypto sector. The law would mandate permits for all crypto platforms in Taiwan and offer legal enforcement capabilities, allowing regulators to apply administrative penalties for violations. The proposed act, presented by legislators including Yung-Chang Chiang, awaits the second reading with no specific timeline set yet. If enacted, the law is expected to strengthen regulatory oversight in Taiwan's largely unregulated crypto industry.

Dictionomics
Proof of Stake

Proof of Stake (PoS) is a consensus mechanism that allows cryptocurrency networks to achieve distributed consensus without relying on energy-intensive mining. PoS validators stake their coins to participate in the network and earn rewards for validating transactions and creating new blocks. PoS is considered more scalable, secure and eco-friendly than Proof of Work (PoW), which is the mechanism used by Bitcoin and other cryptocurrencies.

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