The Inside Story of the CryptoZoo Rescue Plan, the SEC vs Gemini Explained, and DEGODS & y00ts to Bridge off Solana
Celebrating the New Year with Web3 Updates
Welcome to 2023!
It's a new year filled with endless possibilities for the crypto world. We've already seen some major developments, such as the rise of top NFTs and the decline of centralized exchanges. But it hasn't all been smooth sailing - the bear market has tested the resilience of many degens, and the rug pulls from FTX were a tough blow.
Despite the ups and downs, it's important to stay positive and look toward the future. Who knows what record highs and lows we'll see in the coming year?
As we toast to the new year, let's raise a glass to all the degens who have stuck it out through the bear market.
It takes a special kind of person to weather the storms of the crypto world, and we should all be grateful for the community that keeps us going. Here's to a crypto-filled year full of endless possibilities!
Cheers!
- Kaylee Fort
Logan Paul Announces 3-Step Recovery Plan for CryptoZoo
Logan Paul, the founder of CryptoZOO, has recently announced a recovery plan to address concerns about CryptoZOO and the value of the company's ZOO token. The plan has three stages:
Logan Paul and his co-founder Jeff Levin will burn their own ZOO token holdings to eliminate any financial incentives for themselves and increase the perceived value of the token for investors.
Logan Paul will personally commit 1,000 Ether (approximately $1,548,000) as part of a rewards program that enables investors who are disappointed to burn their NFTs and receive the initial mint price of 0.1 ETH (approximately $150) back.
The final stage is to "obviously finish and deliver the game as outlined in the whitepaper," which was initially touted as a play-to-earn game that involved breeding animal NFTs to receive ZOO token rewards.
This move is aimed at addressing disappointment among some investors and restoring confidence in the company's future.
Fidelity Plans NFT Marketplace
Investment giant Fidelity is diving head-first into the world of NFTs, Metaverses, and crypto. The company recently filed three trademark applications with the US Patent Trademark Office, covering NFTs, NFT marketplaces, and Metaverse investment services.
This suggests that Fidelity has big plans to enter the space and potentially offer investment services within Metaverse worlds, including mutual funds and retirement funds.
DEGODs & Y00ts Bridge off Solana
DeGods and y00ts, two of the top NFT projects on Solana, are causing a buzz as they announce their bridge to Ethereum and Polygon.
Dust Labs, the NFT firm behind these projects, is making the move in order to increase adoption. The official bridging is set to take place in Q1 2023, as announced on the DeGods and y00ts Twitter pages on December 25th.
DeGods and y00ts creator Rohun Vora, also known as Frank III, said that the decision was made to pursue new opportunities following the recent collapse of FTX, a major backer of Solana. Don't miss this exciting development in the NFT space
Logan Paul Drops Lawsuit Against Coffeezilla
Logan Paul has faced significant criticism in the wake of the alleged CryptoZoo controversy, which was brought to light by YouTuber and journalist Coffeezilla in a three-part series.
The series sparked widespread debate and backlash, with many accusing Paul of being involved in unethical and potentially fraudulent activities. In response to the controversy, Paul released a video on YouTube that was met with over 230,000 dislikes.
The crypto community has been particularly vocal in their demand for accountability, with some calling for Paul to face legal consequences for his alleged involvement in fraudulent activities related to CryptoZoo.
Recently, Paul reached out to Coffeezilla in an attempt to address the controversy. In his message, Paul admitted that his response video was "rash and misaligned" and vowed to take "accountability, apologize, and come forward with a plan."
Paul has also updated his Discord group with a promise to correct his mistakes.
SEC Charges Gemini and Genesis
In a statement released last Friday, Securities and Exchange Commission (SEC) Chair Gary Gensler announced charges against cryptocurrency lending platforms Genesis and Gemini for bypassing disclosure requirements designed to protect investors.
Gensler stated that the charges are part of a larger effort to ensure that crypto lending platforms and intermediaries comply with securities laws and promote trust in the marketplace.
"Today’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws," Gensler said. "It promotes trust in markets. It’s not optional. It’s the law.”
Gemini co-founder and CEO Tyler Winklevoss expressed disappointment in the SEC's actions, stating that they "do nothing to further our efforts and help Earn users get their assets back."
DCG Owes Gemini over $900 Million Dollars
According to a Financial Times report, Genesis, a crypto lender, and its parent company Digital Currency Group (DCG) may owe $900 million to Gemini clients.
Gemini, a cryptocurrency exchange, offers a product called Gemini Earn in partnership with Genesis, allowing investors to earn 8% interest by lending out their crypto, including Bitcoin and stablecoins pegged to fiat currencies.
On November 16th, Genesis announced that it had temporarily suspended withdrawals due to "unprecedented market turmoil," and had previously disclosed that around $175 million in funds were stuck in an FTX trading account.
In an open letter tweeted by Cameron Winklevoss, co-founder of Gemini, it is alleged that Digital Currency Group (DCG) and its CEO, Barry Silbert, have been using evasive tactics in an attempt to resolve the liquidity crisis facing clients of Gemini Earn. Winklevoss claims that Silbert has refused to meet with the Gemini team on multiple occasions to find a solution to the crisis.
In a move that signals ongoing problems at the company, Genesis Global has let go of 30% of its staff, and its parent company, Digital Currency Group (DCG), has decided to shut down its wealth division. This comes on the heels of a severe liquidity crisis at Genesis following the collapse of FTX.
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