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Jersey City Pension Fund to Invest in Bitcoin ETFs: A Bold Step into Crypto

Jersey City is making headlines in the world of finance by becoming the latest municipality to dive into the cryptocurrency space. The city’s pension fund has announced plans to invest in Bitcoin exchange-traded funds (ETFs), marking a significant shift in how traditional investment vehicles are incorporating digital assets.

This decision follows a growing trend among public pension funds seeking to diversify their portfolios and tap into the potential high returns offered by cryptocurrencies. Bitcoin ETFs are a way for investors to gain exposure to Bitcoin without having to directly buy or manage the cryptocurrency. These funds trade on traditional stock exchanges, making them accessible to a 

broad range of investors.

Jersey City’s move is particularly notable because it represents a broader acceptance of cryptocurrencies by institutional investors. By allocating a portion of its pension assets to Bitcoin ETFs, the city is signaling confidence in the long-term viability of digital assets. This could inspire other municipalities and institutional investors to consider similar investments.

The pension fund’s investment strategy reflects a growing recognition of Bitcoin and other cryptocurrencies as legitimate assets. Despite their volatility, these digital currencies have increasingly been seen as a hedge against inflation and a store of value.

For Jersey City, this investment could potentially enhance the growth of its pension fund, providing future retirees with improved financial security. It also aligns with the broader trend of integrating digital assets into mainstream financial systems, indicating a shift towards greater innovation in investment strategies.

Overall, Jersey City’s commitment to Bitcoin ETFs highlights the evolving landscape of financial investments, where digital currencies are becoming a significant player in traditional finance. This move is expected to attract attention from other public funds and institutional investors, further driving the mainstream adoption of cryptocurrencies.

Source: Jersey City to Invest in Bitcoin ETFs, the Latest Pension to Dive Into Crypto

Crypto Liquidations Soaring Amid Market Turmoil

Cryptocurrency liquidations have spiked dramatically, with total liquidations hitting $292.22 million as the global cryptocurrency market cap fell by 3.6%, dipping below the $2.5 trillion threshold. This downturn reflects broader market instability, which has seen a significant 92.5% increase in liquidations in the last 24 hours, according to data from Coinglass.

A vast majority of these liquidations, approximately $259.7 million or 89%, were from long positions, with the remaining $32.5 million stemming from short positions. Ethereum led the liquidation volumes with $101.6 million—$97.5 million from longs and $4.1 million from shorts. Bitcoin followed closely, registering $83.3 million in liquidations over the past day, split between $71.5 million in longs and $11.7 million in shorts.

The largest single liquidation event occurred on Binance, the top crypto exchange by trading volume, involving an $11.78 million transaction in the BTC/USDT trading pair. This event underlines the significant risks present in the current volatile market environment.

CoinGecko data indicates that the total cryptocurrency market capitalization has decreased to $2.42 trillion, marking a significant retreat from a local high of $2.55 trillion recorded at 15:00 UTC on July 24. Bitcoin and Ethereum have particularly felt the market’s chill, with Bitcoin dropping from a daily high of $67,110 to approximately $64,100, and Ethereum plunging by 8.1%, now trading at $3,160.

This steep decline in Ethereum’s value coincided with net outflows of $133.3 million from spot ETH ETFs in the U.S. on their second day of trading, reflecting investor apprehension.

As a consequence of these rapid liquidations, the total open interest in the cryptocurrency market has also decreased by 4%, currently standing at about $63.6 billion. This reduction in open interest may lead to a decrease in market-wide volatility and potentially fewer liquidations moving forward.

Source: Crypto liquidations reach $292m, global market cap falls 3.6%

India to Unveil Crypto Policy by September After Stakeholder Consultations

India is set to release its long-awaited stance on cryptocurrency regulation by September 2024, following a series of stakeholder consultations. This announcement marks a pivotal moment for the country as it seeks to define its approach to the burgeoning digital asset sector.

The Indian government has been engaging with various industry players, financial experts, and other stakeholders to gather insights and feedback on the potential framework for cryptocurrency regulation. These consultations are part of a broader effort to create a balanced and effective regulatory environment that supports innovation while safeguarding financial stability and consumer protection.

The anticipated policy aims to address several critical aspects of the crypto landscape, including the legal status of digital assets, taxation, and the mechanisms for preventing illicit activities such as money laundering and fraud. India’s regulatory approach is expected to play a significant role in shaping the future of the country’s cryptocurrency market, influencing both domestic and international investors.

The release of the policy will provide much-needed clarity for businesses and individuals involved in the crypto space. It is anticipated that the framework will offer guidelines on how cryptocurrencies can be integrated into the existing financial system and outline the responsibilities of market participants.

India’s move towards formalizing its stance on cryptocurrencies aligns with global trends as more countries develop comprehensive regulatory strategies to manage the growth of digital assets. As the September deadline approaches, the crypto community and investors will be closely watching to understand how India’s regulations will impact their operations and investment strategies.

In summary, the upcoming policy announcement is expected to bring a new level of regulatory certainty to India’s cryptocurrency sector, paving the way for more structured and secure participation in the digital economy.

Source: India to Release Its Crypto Policy Stance by September After Stakeholder Consultations: Report

Woo X Introduces Daily Interest Withdrawals from T-Bill-Backed Vaults

Crypto exchange Woo X has unveiled a new feature allowing users to withdraw daily interest from their T-Bill-backed Earn vaults, a move aimed at enhancing liquidity and flexibility for investors.

This innovative offering permits users to access interest earnings on a daily basis, rather than waiting for traditional payout periods. The T-Bill-backed Earn vaults are designed to provide a secure way to earn interest while minimizing risk, as U.S. Treasury bills back them. This setup ensures a stable and reliable income stream, appealing to both conservative investors and those looking to diversify their portfolios.

By enabling daily withdrawals, Woo X addresses a common frustration among crypto investors: the lack of liquidity in interest-bearing products. Traditionally, investors in such products often have to wait for monthly or quarterly payouts, which can be inconvenient and limit their ability to reinvest earnings promptly. The new feature aims to solve this issue by providing more immediate access to funds.

The move also reflects Woo X’s commitment to catering to evolving investor needs and preferences in the rapidly changing crypto landscape. By offering this level of flexibility, Woo X hopes to attract a broader range of users, from seasoned traders to newcomers looking for stable and accessible investment options.

Woo X’s introduction of daily interest withdrawals from T-Bill-backed Earn vaults represents a significant step in enhancing investor experience and liquidity. This feature offers greater flexibility and underscores Woo X’s role in innovating within the crypto exchange sector.

SOURCE: Crypto Exchange Woo X Allows Daily Interest Withdrawals From T-Bill-Backed Earn Vaults

Singapore Injecting $74.3M into Quantum Computing and AI for Finance

Singapore is committing a significant investment of 100 million Singapore dollars ($74.36 million) to enhance its finance sector’s capabilities in quantum computing and artificial intelligence (AI). This move by the Monetary Authority of Singapore (MAS) aims to support local financial institutions with substantial co-funding to establish advanced technological infrastructure.

The MAS, Singapore’s central bank and financial regulatory authority, is injecting these funds to build quantum computing infrastructure and accelerate AI development and adoption within the financial sector. This initiative is part of Singapore’s broader strategy to solidify its position as a leading fintech hub.

MAS launched the Financial Sector Technology and Innovation Scheme (FSTI 3.0) in 2022 to boost Singapore’s fintech capabilities. With an initial commitment of $111.5 million ($150 million Singapore dollars) over three years, the regulator is now adding an additional $74.36 million as of July 18. Eligible financial institutions can receive up to 50% co-funding for creating quantum computing technology centers and developing practical use cases. Companies working on quantum-based cybersecurity solutions will also be eligible for up to 30% co-funding.

Part of the fund will be allocated to building AI innovation centers, where AI models can be developed, trained, and deployed across various applications. The regulator highlighted the potential of AI in addressing industry-wide problems, stating, “There are strong prospects for the financial industry to apply AI to solve industry-wide problems beyond what each financial institution can do individually.”

The first AI pilot project, confirmed by MAS, will focus on scam and fraud detection. This pilot will involve collaboration between banks, technology solution providers, and public agencies. The FSTI scheme is set to continue until March 2026, with the possibility of extension depending on its impact on Singapore’s fintech landscape.

In related news, MAS recently granted full regulatory approval to the Singapore wing of Paxos, the issuer of the gold-backed stablecoin Pax Gold (PAXG). This approval allows Paxos to launch a stablecoin aligned with MAS’s upcoming regulatory framework. DBS, Southeast Asia’s largest bank by assets, will be Paxos’ primary banking partner, responsible for cash management and custody of the stablecoin reserves.

SOURCE: Singapore commits $74.3M for quantum and AI in finance

Compound Finance Website Under Threat of Phishing Attack, Warns Crypto Investigator ZachXBT

Crypto investigator ZachXBT has warned users to steer clear of the Compound Finance website due to suspicions of it being compromised and redirecting visitors to a phishing site. The warning was made public on July 11 through a post on Telegram, in which ZachXBT alerted the community about the potential risks associated with visiting the website at this time.

According to ZachXBT, the Compound Finance site is currently redirecting to a phishing site that was recently registered, posing significant security threats to users. In light of this, he strongly advises against visiting the site to prevent any loss of personal data or funds.

In response, Michael Lewellen, a security advisor for the Compound Finance DAO, confirmed the breach and reiterated the warning to avoid interacting with the website. Lewellen emphasized that while the protocol itself and the smart contract funds remain secure, the URL has been hijacked and is hosting a phishing site. He urged users to refrain from using the compromised website to safeguard their assets and information.

This isn’t the first security challenge faced by Compound Finance. In 2023, the protocol’s official X account was compromised by hackers who then used it to promote a phishing site. Although the phishing attempt was quickly identified and flagged as a scam, it highlighted ongoing vulnerabilities within digital finance platforms.

As phishing attacks continue to surge within the crypto space, leading to significant losses, industry leaders like CertiK CEO Ronghui Gu have called for increased vigilance and stronger security measures, including multifactor authentication. Following a report on July 3, CertiK highlighted that the first half of 2024 saw losses amounting to $1.19 billion in crypto security incidents, with phishing attacks accounting for nearly $498 million of those losses.

SOURCE: Compound Finance site potentially breached — ZachXBT

Bank of Italy Releasing Crypto Guidelines Amid Criticism

Italy’s central bank is set to release guidelines on applying the European Union’s MiCA crypto laws “in the coming days,” according to Bank of Italy Governor Fabio Panetta. This move aims to ensure effective regulation and protection for cryptocurrency holders.

In his July 9 speech to the Italian Banking Association, Panetta outlined the upcoming guidelines, emphasizing their role in facilitating the application of the EU’s Markets in Crypto-Assets Regulation (MiCA). He highlighted that MiCA identifies two main categories of tokens: asset-reference tokens (ARTs) and electronic money tokens (EMTs), both of which can be used for payments.

However, Panetta pointed out that only EMTs can fully function as a means of payment while maintaining public trust. EMTs are linked to a single official currency, like a US dollar-backed stablecoin, whereas ARTs are pegged to multiple assets, such as the gold-backed token PAX Gold (PAXG).

Speaking at the Italian Banking Association meeting, Panetta criticized Bitcoin and Ethereum as “unbacked crypto-assets,” describing them as having “no intrinsic value” and likening them to a gamble. “Clearly, they do not possess the characteristics that make them suited to perform the three inherent functions of money: a means of payment, store of value, and unit of account,” he stated.

Panetta argued that the primary goal of crypto investors is to sell assets at higher prices, sometimes to evade tax rules or regulations against money laundering and terrorist financing. He acknowledged that while the number of investors in unbacked cryptocurrencies is currently low, it is not negligible and could grow in the future.

In late June, Reuters reported that the Italian government plans to increase surveillance on crypto markets to comply with MiCA. A decree revealed plans for fines ranging from 5,000 euros ($5,400) to 5 million euros ($5.4 million) for violations such as market manipulation and insider trading.

These upcoming guidelines from the Bank of Italy aim to enhance regulatory clarity and safeguard the financial ecosystem as the country adapts to the evolving crypto landscape.

SOURCE: Bank of Italy to release crypto guidelines in ‘coming days’ — Governor

Mt. Gox Moves Billions in Bitcoin to Unknown Wallet Address

In a significant development in the cryptocurrency world, Mt. Gox, the infamous exchange that collapsed in 2014, has transferred billions of dollars’ worth of Bitcoin to an unknown wallet address. The move has sparked speculation and concern among investors and analysts alike.

The transferred Bitcoin, amounting to billions in value, was previously held in the custody of Mt. Gox, which was once one of the largest cryptocurrency exchanges globally before its collapse due to a major hacking incident.

The sudden movement of such a substantial amount of Bitcoin raises questions about the intentions behind the transfer and the potential impact on the cryptocurrency market. Analysts suggest that the transfer could be part of the ongoing rehabilitation process of Mt. Gox, which has been underway for several years.

Investors are advised to monitor the situation closely as developments unfold. The movement of funds from dormant addresses, especially from entities with historical significance like Mt. Gox, can influence market dynamics and investor sentiment.

Mt. Gox’s rehabilitation process has been a prolonged and complex legal journey, involving efforts to compensate victims of the exchange’s hacking incident. The recent transfer underscores the complexities involved in managing and redistributing assets in such cases.

While the specifics of Mt. Gox’s intentions remain unclear, the event highlights the need for transparency and accountability in the cryptocurrency ecosystem. Regulatory oversight and investor protection measures are crucial as the market continues to evolve.

In conclusion, Mt. Gox’s transfer of billions in Bitcoin to an unknown wallet address marks a significant event in the cryptocurrency landscape. It underscores ongoing challenges and opportunities within the digital asset space, emphasizing the importance of vigilance and informed decision-making for stakeholders.

SOURCE: Mt. Gox moves $2.7B in Bitcoin to new wallet address

Deutsche Telekom Partnering with Subsquid to Boost Blockchain Data Efficiency

Deutsche Telekom is partnering with Subsquid, a decentralized data platform, to enhance blockchain data security and efficiency. This move aligns with Deutsche Telekom’s strategic vision of embracing decentralization and follows their recent announcement to venture into Bitcoin mining at BTC Prague.

T-Mobile Deutsche Telekom MMS has joined forces with Subsquid to run dedicated worker nodes within Subsquid’s decentralized “data lake.” According to a press release shared with Cointelegraph, this collaboration aims to improve the security and efficiency of blockchain data retrieval and delivery. Worker nodes in the Subsquid network process data queries, retrieving requested information for data consumers.

Alexander Ebeling, co-founder of Web3 Unit Deutsche Telekom MMS, stated, “For Deutsche Telekom, this collaboration aligns with our strategic vision of embracing decentralization and supporting the development of new, decentralized business models.”

Marcel Fohrmann, co-founder of Subsquid, emphasized that this partnership would help “strengthen and secure permissionless data access” across Web3. The collaboration follows Deutsche Telekom’s recent role as a validator for the Ethereum layer-2 scaling platform Polygon, becoming one of the network’s 100 staking and validation providers.

Dmitry Zhelezov, co-founder of Subsquid, discussed data handling, explaining that each piece of data is “cryptographically validated” to ensure authenticity. “Once [data] has been added to the Subsquid Network, every piece of data is replicated across dozens of nodes across the network, so even if a node goes offline all the data remains available for consumers.”

Security remains a top priority for Deutsche Telekom. Ebeling noted, “Security remains a paramount concern, as enterprise-scale systems are prime targets for cyber threats.” He added that Deutsche Telekom implements rigorous security audits and maintains an on-call duty team available 24/7 to guarantee the uptime of their blockchain infrastructure.

Addressing the challenges in data security, Zhelezov mentioned the need for efficient data partitioning and enterprise-grade security measures in a decentralized space.

In related news, Dirk Röder, head of Web3 infrastructure and solutions at Deutsche Telekom, revealed at the BTC Prague event that the firm had been running a Bitcoin node since 2023 and hinted at their upcoming engagement in “digital monetary photosynthesis.” When asked if this meant Bitcoin mining, Röder confirmed, “we will.”

SOURCE: Deutsche Telekom joins Subsquid decentralized network

Plagiarism Perplexes Perplexity AI as Tech Giant Rivalry Intensifies

Perplexity AI, an artificial intelligence startup aiming to disrupt the search engine market, has come under scrutiny for its content practices. The company, which has garnered significant investment from tech luminaries including Jeff Bezos, seeks to rival giants like Google by offering an AI-driven search chatbot. However, its methods have raised ethical concerns within the media industry.

Allegations of Content Misuse

Perplexity AI’s main product is a search chatbot that uses AI to provide concise answers to user queries, functioning similarly to a blend of Wikipedia and ChatGPT. This tool has been accused of summarizing and distributing content from various media sources without proper attribution. Forbes has alleged that Perplexity published a summary of one of its investigative articles without citing the original source, a claim that Perplexity CEO Aravind Srinivas has contested. Srinivas insists that the company’s technology does not train on other entities’ content but rather aggregates information generated by other AI systems.

Further complicating the matter, a WIRED investigation found that Perplexity’s chatbot was accessing and scraping content from websites in violation of the Robots Exclusion Protocol, which dictates how web crawlers should interact with sites. This investigation revealed that Perplexity’s bot created content that closely mirrored original articles without proper permissions or acknowledgments, leading to accusations of plagiarism.

Incidents of Fabricated Quotes

The Associated Press reported another troubling aspect of Perplexity’s technology: the generation of fabricated quotes attributed to real people. One case involved a former town official from Martha’s Vineyard who was falsely quoted on his views about marijuana legalization. This incident, among others, highlights the challenges AI systems face in maintaining accuracy and reliability.

Srinivas acknowledged these issues, attributing them to what is known as “hallucinations” in AI parlance, where models generate believable but incorrect information. He noted that the feature responsible for these errors was intended for essay composition and grammar correction and was more prone to inaccuracies.

Industry Reaction and Legal Concerns

The reaction from the media industry has been critical. Randall Lane, Chief Content Officer of Forbes Media, has accused Perplexity of undermining journalism by treating it as a commodity and failing to respect the hard work of reporters. He emphasized the need for AI companies to respect proprietary content and the added value of professional journalism.

Legal experts have suggested that Perplexity might face legal challenges, including claims of copyright infringement and deceptive practices. James Grimmelmann, a professor of digital and information law at Cornell University, explained that while summarizing factual information is not automatically a copyright violation, the extent and context of the duplication are crucial factors. The practice of bypassing paywalls and summarizing content before publishers can benefit commercially could lead to misappropriation claims.

Pam Samuelson, a law professor at UC Berkeley, pointed out that the practices might not meet the substantial similarity threshold needed for copyright infringement. However, Bhamati Viswanathan from New England Law argued that a new legal framework might be necessary to address the broader implications of AI on intellectual property and creative economies.

In Defense of Perplexity AI

It seems that team Perplexity AI is seeking answers despite being perplexed by the plagiarism accusations.

On June 28, 2024, Amazon’s spokesperson Samantha Mayowa stated that the company is examining details from a WIRED investigation suggesting Perplexity AI scraped content from restricted websites. Why is Amazon investigating this allegations? Well, ignoring the fact that Jeff Bezos is one of the prominent investors behind team Perplexity, Perplexity AI operates using Amazon Web Services (AWS). Hence, the spokesperson emphasized that AWS customers must comply with their terms of service, which prohibit abusive and illegal activities. Apparently, Amazon regularly investigates reports of potential abuse.

Perplexity spokesperson Sara Platnick asserted that the company has confirmed its services do not violate AWS terms of service in their web crawling practices.

Future Prospects for Perplexity AI

Despite these controversies, Perplexity AI continues to grow, reporting over 85 million web visits in May. Srinivas is hopeful about forming revenue-sharing partnerships with news publishers, where a portion of advertising revenue would be shared when content from these publishers is used. This approach aims to create a mutually beneficial relationship between Perplexity and content creators.

As discussions about AI’s impact on content creation and journalism continue, Perplexity AI’s experience underscores the complex balance between technological innovation and ethical responsibility. The company’s ability to address these challenges and build trust with both users and content creators will be crucial for its future success.

Sources

Associated Press: https://apnews.com/article/perplexity-ai-search-engine-forbes-f307cb607f0db871b05f843a3f744340
Wired: https://www.wired.com/story/perplexity-plagiarized-our-story-about-how-perplexity-is-a-bullshit-machine/
The Washington Post: https://www.washingtonpost.com/business/2024/06/28/amazon-perplexity-online-content-scraping-investigation/0b5fa96e-3593-11ef-872a-1d22f44a0d95_story.html