Ripple Rolls Out Crypto Custody Services for Banks

The US-based blockchain solutions provider Ripple Labs is venturing into offering crypto custody services to banks and other financial institutions. Ripple announced that it is exploring markets beyond the traditional digital asset ecosystem by introducing crypto custody services to the mainstream financial industry.

Expanding Crypto Custody Services

Ripple has added multiple new features to its Ripple Custody solution to serve better the constantly changing needs of fintech and cryptocurrency companies. Some components include sophisticated anti-money laundering (AML) monitoring to ensure regulatory compliance.

Preconfigured operational and policy settings and seamless integration are some additional features. Institutions looking for safe and scalable digital asset custody will also find the platform more straightforward, thanks to its intuitive interface.

As Ripple continues introducing innovative updates to its custody solutions, the company aims to deliver a more robust service to high-growth businesses in the crypto sector. Aaron Slettehaugh, Senior Vice President at Ripple, stressed that these new features let Ripple Custody cater to the unique requirements of companies with a cryptocurrency focus.

Accordingly, the platform will become the go-to option for companies seeking scalability and security in their digital asset management.

Rising Demand for Crypto Custody Services

In recent years, there has been an increase in demand for trustworthy and secure crypto custody services. Ripple has experienced remarkable year-over-year growth of 250% in this domain, enabling it to reach seven countries and have major international clients like DBS, Societe Generale, BBVA Switzerland, and HSBC.

The fact that these organizations use Ripple’s custody solutions to manage their digital assets highlights the growing significance of custody services within the cryptocurrency ecosystem. Custodial services is one of the fastest-growing sectors in the cryptocurrency industry.

By 2030, the crypto custody market could be worth $16 trillion, according to Boston Consulting Group’s projections. Real-world assets are digitally represented on the blockchain through tokenization products, further driving this growth.

The demand for secure storage solutions has increased as more institutional businesses enter this market. Thus, Ripple is leveraging its XRP Ledger and decentralized exchange capabilities to offer a comprehensive and competitive solution for institutions venturing into the crypto market.

However, it competes against established players like Coinbase, BitGo, and Gemini in the cryptocurrency custody market. Hence, Ripple aims to become a leader in this quickly growing industry by emphasizing security, scalability, and regulatory compliance.

Taiwan’s Move Toward Crypto Custody Trials

Meanwhile, Taiwan is about to begin crypto custody trials in collaboration with regional banks, another step forward for the global crypto industry. This program is a component of the nation’s initiatives to boost institutional adoption of digital assets.

Taiwan’s primary financial regulator (the Financial Supervisory Commission (FSC)) will head the initiative. In the first quarter of 2025, the FSC will start accepting applications from banks interested in custody trials.  

Three banks have already indicated interest in the pilot project. These banks must list the kinds of cryptocurrencies they intend to hold in custody.

The banks must also clarify whether they plan to cater to institutional investors, general investors, or both. Hu Zehua, the director of the FSC’s comprehensive planning division, disclosed that the FSC welcomes the public’s input on the trial’s design to ensure optimal success.

Taiwan’s Steps Toward a Regulated Crypto Ecosystem

Taiwan has been moving very quickly to legitimize its cryptocurrency market. Accordingly, the country recently updated its anti-money laundering (AML) laws to include digital assets.

Per the new regulations, cryptocurrency companies operating in Taiwan must register with the FSC by September 2025. If they don’t comply, they could pay up to $156,000 in fines, and their executives could spend up to two years in jail.

These regulatory initiatives aim to stop illicit activity involving cryptocurrencies while creating a more transparent and safer environment for investors and businesses. Another important step toward integrating cryptocurrency assets into its financial markets is Taiwan’s decision to permit institutions to invest in foreign exchange-traded funds (ETFs).

This move will give cryptocurrencies more legal status within the region and create new investment options. In addition to legislative actions, Taiwan’s private industries are making strides in cryptocurrency.

Recently, Taiwan Mobile, a telecommunications company with over 10 million users, was granted a license to provide virtual asset-related services. These developments indicate that Taiwan is positioning itself as a leading player in Asia and the global digital asset market.

Moreover, the country is working to ensure that companies can operate more easily inside and across its borders by providing a clear regulatory framework for the industry.

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$4.38B Silk Road Bitcoin: Supreme Court Rejects Case

Supreme Court Rejects Battle Born’s Bitcoin Case

The US Supreme Court has refused to hear a case concerning the ownership of 69,370 Bitcoin seized by the government from the infamous dark web platform Silk Road. The decision ends Battle Born Investments’ effort to claim the rights to the Bitcoin haul, now worth around $4.38 billion.

Battle Born argued that it acquired the rights to the BTC through a bankruptcy claim linked to the Silk Road shutdown in 2013. However, in both lower courts, including a district court in 2022 and an appellate court in 2023, the appellate court ruled that Battle Born did not have a legitimate claim to the seized Bitcoin.

Now, the Supreme Court has declined to review the decision. The government’s seizure of the BTC was part of a broader crackdown on Silk Road, a platform notorious for facilitating illegal activities such as drug trafficking and money laundering.

Silk Road, created in 2011 by Ross Ulbricht, allowed users to buy and sell illicit goods anonymously using cryptocurrency. Ulbricht was arrested in 2013 and is currently serving a life sentence for his role in running the marketplace.

US Government to Sell Seized BTC

Following its latest victory, the US government can proceed with the sale of BTC, which could significantly impact the cryptocurrency market. Governments’ past sales of large amounts of BTC have caused notable market fluctuations.

For example, when the German government sold nearly 50,000 BTC earlier this year, the market experienced heightened volatility. The US government has already moved a portion of the seized Bitcoin.

In July, $2 billion worth of Silk Road-related BTC was transferred to the US Marshals Service, which uses Coinbase Prime to store and manage seized digital assets. The question of what to do with the Silk Road Bitcoin has also become a topic of political interest.

Republican presidential candidate Donald Trump has stated that, if elected, he would create a “strategic Bitcoin stockpile” as part of his campaign’s economic strategy. Trump has also pledged to release Ross Ulbricht from prison, arguing that his life sentence was too harsh.

Meanwhile, Democrat candidate Kamala Harris has not publicly stated her plans for the seized cryptocurrency. The Supreme Court only accepts a small number of cases each year, and its decision not to hear this one clears the way for the US government’s civil forfeiture action to proceed without further legal challenges.

Residents in Texas Complain About Noise from Bitcoin Mine

Meanwhile, residents in Granbury, Texas, are raising concerns over noise pollution from a Bitcoin mining facility operated by Marathon Digital Holdings. The Bitcoin mine, located next to the Wolf Hollow II gas-fired power plant, was initially built by Compute North Holdings in April 2022.

Since then, the ownership has changed hands multiple times, with Marathon taking control in January 2023. Some locals claimed they heard persistent noise from the mining operations around the spring of 2023.

The mine has become a source of irritation for those living nearby, though there is no clear indication of how many rigs are currently used on-site. However, the mine boasts a significant hashrate of 4.3 ExaHashs per second (EH/s), indicating substantial mining activity.

Marathon Digital is one of the largest Bitcoin mining companies, with 250,000 mining rigs. While it remains unclear how many of these machines operate at the Granbury location, the scale of their overall operations makes it a significant player in the Bitcoin mining space.

Not The First

Granbury residents are not the first to face such an issue. In a similar case from 2022, residents of Hadsel, a Norwegian municipality, successfully pushed to shut down a local Bitcoin mining operation due to noise disturbances.

Though they achieved the shutdown, their action led to increased electricity bills after the loss of revenue from the mining site, which affected the income of the local power company. Granbury’s situation has yet to reach the same conclusion as Hadsel’s, but tensions between the Bitcoin mining facility and residents are escalating.

Despite the residents’ groans, Marathon has continued its operations at the site.

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El Salvador Rejects IMF Warning, Increases Bitcoin Investment

El Salvador is making moves to increase its Bitcoin (BTC) projects, defying the International Monetary Fund’s (IMF) recommendation on its crypto investments. The Central American nation made headlines in September 2021 after becoming the first country in the world to announce Bitcoin as legal tender, prompting the global monetary body’s opposition to the move.

Strengthens Bitcoin Regulations

The National Commission on Digital Assets (CNAD) President Juan Carlos Reyes announced that the CNAD law had undergone significant changes thanks to the efforts of El Salvador lawmakers. Reyes added that these modifications will allow the CNAD to oversee digital asset firms that do business in El Salvador and would represent a significant change in the country’s regulatory environment for digital assets.

The goal of these reforms is to establish El Salvador as a global leader in the adoption and governance of digital assets by introducing a risk-based regulatory framework.

Enhancing Regulatory Expertise

In a statement accompanying the announcement, Reyes emphasized the importance of combining regulatory knowledge with practical experience. He noted that the team at CNAD would make sure that the Bitcoin industry was regulated fairly and efficiently.

Reyes hinted at potential improvements to its crypto laws and pledged to provide more details about the proposed regulatory framework in the upcoming weeks.

Building New Capital Markets on Bitcoin

Furthermore, the country’s National Bitcoin Office (ONBTC) declared in conjunction with CNAD’s regulatory modification that El Salvador is actively planning to create new Bitcoin-based capital markets. This move further demonstrates El Salvador’s belief in the long-term potential of cryptocurrencies.

The ONBTC emphasized that Bitcoin presents a chance for citizens to enable self-custody of their assets and money. This strategy is in contrast to other frameworks for digital assets that put transaction speed ahead of financial sovereignty.

IMF and External Criticism

Meanwhile, Julie Kozack, Director of the IMF Communications Department, has emphasized that El Salvador’s BTC initiative is still a hot topic of debate. Accordingly, the IMF recommended that the country should reduce the public sector’s exposure to cryptocurrencies, tighten regulatory oversight, and limit the reach of El Salvador’s Bitcoin legislation.

The IMF’s advice remains unchanged even though it acknowledged that some of the risks associated with El Salvador’s crypto experiment have yet to come to pass. The main worry expressed by the IMF is the possibility of economic instability brought by an excessive dependence on a volatile digital asset.

Nonetheless, the crypto community has continued to express its support for El Salvador’s pro-Bitcoin position. Notably, Mathew Sigel, head of VanEck’s digital assets, argued that the IMF’s recommendations would impede El Salvador’s development should the country implement them.

He maintained that the IMF’s strategy would prevent the Central American nation from taking full advantage of its progressive Bitcoin policies.

Bitcoin’s Long-Term Investment Potential

Meanwhile, prominent crypto advocate Scott Melker (or “The Wolf of All Streets”) has highlighted the benefits of dollar-cost averaging (DCA) for Bitcoin investments. Melker noted that DCA could prove to be a very successful long-term strategy for investors who joined the cryptocurrency market during its strong, bullish season.

In his analysis, Melker explained that investors who started buying $100 worth of Bitcoin every week in November 2021, when the asset hit its peak of $69,000, would have invested $15,200 over 152 weeks. Even though they began investing during the height of BTC’s value, they have gained over 107% in value.

Furthermore, this perspective aligns with BTC’s price history, which noted a significant drop after hitting $69,000. Notably, BTC’s price fell below $20,000 by the end of 2022.

However, it started to bounce back in 2023, ending the year at $42,258. More importantly, it has carried on with its upward trend into the first part of 2024. By reaching a new all-time high of $73,600 in March 2024, Bitcoin demonstrated its continuing potential for investors who are prepared to take a patient, long-term approach.

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Metaplanet Offloads 233 Bitcoin Put Options: Here’s Why

The Japanese Bitcoin (BTC) investment behemoth Metaplanet has sold 233 BTC Put Options, gaining 23.97 BTC as profits. According to the firm, the 233 Options it sold are worth $62,000, which is set to expire on December 27.

In addition, the contracts are backed by the company’s $13.8 million proceeds from its 11th stock purchase rights event.

Why is Metaplanet Utilizing Put Options?

A put option is a financial instrument that gives the holder the right, but not the responsibility, to sell a specific stock or asset within a given time frame at a predetermined price, called the strike price. Options trading has grown in popularity in relation to Bitcoin and other cryptocurrencies due to the volatility of these assets, presenting profit-making and loss-hedging opportunities.

As a key participant in the crypto market, Metaplanet is leveraging this tactic by signing a put option contract. The company increased its Bitcoin holdings after earning premiums totaling 23.97 BTC through these contracts.

With the acquisition, the company’s total Bitcoin reserves are now 530.72 BTC, or about ¥4.965 billion (roughly $33.8 million).

Metaplanet’s Partnership with QCP Capital

Metaplanet has also partnered with QCP Capital, a digital asset trading company situated in Singapore. This partnership is a strategy that involves selling options, which keeps the company’s long-term investment in Bitcoin intact by allowing it to earn premiums without selling its BTC holdings.

This method enhances Metaplanet’s financial stability and strengthens its Bitcoin holdings. The business can retain its exposure to the asset while also maintaining its balance sheet by amassing Bitcoin through a mix of direct purchases and revenue-generating techniques.

Long-term profitability depends on this dual strategy, which also shows the company’s dedication to upholding a solid financial base. Simon Gerovich, CEO of Metaplanet, stressed that the strategy is in line with the company’s long-term objectives of optimizing its exposure to Bitcoin.

While the majority of the company’s assets remain in Bitcoin, Gerovich highlighted the importance of using some of these holdings in options strategies to generate additional income. By using this strategy, Metaplanet can increase its Bitcoin reserves without having to rely entirely on buying more of the coin, which can be an expensive undertaking in a market where prices fluctuate frequently.

Franklin Templeton’s ETF Proposal

Meanwhile, Franklin Templeton has submitted a proposal to the US Securities and Exchange Commission (SEC) to launch a Bitcoin and Ethereum index exchange-traded fund (ETF). If authorized, this ETF would be the first of its kind to provide exposure to Ethereum as well as Bitcoin, making it stand out as a unique asset in the market for digital currency ETFs.

The Franklin Crypto Index ETF, which is the proposed name for the exchange-traded fund, is designed to give investors sheltered exposure to these popular cryptocurrencies. The fund’s value would be determined by the net asset value (NAV) of the cryptocurrencies it holds, in contrast to holding BTC directly.

Notably, the Franklin Crypto Index ETF will not directly participate in staking or other income-generating activities involving digital assets, unlike other funds. Instead, it will focus on holding Bitcoin, Ethereum, cash, and short-term financial instruments with maturities of less than three months.

This cautious approach is in line with the goal of providing a less risky and safer entry point into the market for digital assets.

Regulatory Considerations

The SEC’s evaluation of anti-fraud measures and the integrity of regulated futures markets will play a significant role in the pending ETF’s approval. The chance for fraud and market manipulation is partly the reason the SEC has historically been hesitant to approve cryptocurrency exchange-traded funds (ETFs).

Additionally, the plan highlights its supervision agreements with regulated futures markets, which guarantee the safe and open trading of the underlying assets. If the SEC approves this ETF, it will mark a significant milestone for institutional investors seeking to diversify their portfolios with digital assets.

Further reassurance regarding the security and supervision of the fund’s operations is offered by Coinbase Custody, which will handle the digital assets, while BNY Mellon will be the fund’s custodian.

These collaborations between digital asset custodians and traditional financial institutions point to the increasing integration of decentralized finance (DeFi) and traditional finance (TradFi) systems. Franklin Templeton’s proposal follows its recent launch of the Franklin Onchain US Government Money Fund (FOBXX) on Aptos (a leading Layer-1 blockchain).

Thanks to this initiative, institutional investors can now access the asset directly from their digital wallets through the company’s blockchain-integrated platform. Furthermore, the firm is also active on other blockchains, such as Avalanche, Polygon, Stellar, and Arbitrum, demonstrating its dedication to growing its footprint in the blockchain industry.

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AI Could Help Fight AI Misinformation – Nvidia CEO

AI Must Combat AI-Generated Misinformation

Nvidia CEO Jensen Huang says artificial intelligence (AI) is the key to combating the risks posed by AI-generated misinformation. Speaking at the Bipartisan Policy Center recently, Huang stressed that AI’s ability to produce fake information quickly will require AI-based solutions to counteract it.

Huang further warned that its ability to generate misleading data and false information will only accelerate as this technology evolves. Thus, similar systems must operate at the same speed or faster to detect and stop these threats.

Huang compared the use of artificial intelligence in tackling misinformation to the current cybersecurity landscape. He said that nearly every company faces the threat of cyberattacks, and more robust cybersecurity measures are needed to neutralize such attacks.

In the same way, artificial intelligence technology will be required to stay ahead of AI-driven threats.

Huang Urges Government to Embrace AI Technology

Huang also called on the US government to take a more active role in artificial intelligence development. He emphasized that the government shouldn’t only regulate artificial intelligence but also become a technology practitioner.

He mentioned the Department of Energy and the Department of Defense as crucial ministries where this innovative tech could play a critical role. Huang suggested that the United States should consider building a supercomputer to accelerate research and development in this regard.

He said such a move would allow scientists to develop new artificial intelligence algorithms that could advance national interests. Huang’s comments come amid growing concerns about the role of technology in shaping public perception, particularly as the US approaches federal elections in November.

A recent Pew Research Center survey found that nearly 60% of Americans are worried about artificial intelligence being used to spread fake information about presidential candidates. Around 40% of those surveyed believe artificial intelligence will be used for harmful purposes in the upcoming elections, while only a tiny percentage felt that AI would be used for good.

These fears were further heightened when an anonymous US intelligence official reported that Russia and Iran are already employing artificial intelligence to manipulate political content, including videos of Vice President Kamala Harris.

Future AI Models Will Require More Energy

Huang also noted that AI models will require significantly more power as they become more complex. He predicted that future data centers could need up to 20 times the energy used by today’s data centers.

The Nvidia CEO suggested building these centers near locations with excess energy, as artificial intelligence does not depend on where it learns. Thus, remote data centers become viable options for managing energy consumption.

He noted that future models will increasingly rely on other artificial intelligence systems to train one another. This, combined with the growing amount of data needed for training, will drive up energy consumption across the industry.

California Governor Newsom Vetoes Controversial Safety Bill

Meanwhile, California Governor Gavin Newsom has vetoed SB 1047, a widely debated AI safety bill, saying it would hinder innovation. The bill (known as the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act) aimed to implement strict safety standards on models.

Thus, it becomes mandatory for companies like OpenAI, Meta, and Google to perform testing and introduce a “kill switch” for their artificial intelligence systems. After rejecting the bill, Newsom expressed concerns that the proposed regulations would stifle the development of emerging artificial intelligence models.

According to him, the legislation targeted large AI firms without effectively addressing the real risks posed by artificial intelligence. He emphasized that the bill would impose unnecessary restrictions on essential functions, creating a barrier to future innovation.

The bill’s sponsor, Senator Scott Wiener, argued that these regulations were necessary to prevent potential disasters linked to artificial intelligence development. If passed, the bill would have allowed California’s attorney general to sue developers where artificial intelligence systems enable significant risks, such as potential takeovers of critical infrastructures like power grids.

Newsom’s Veto Sparks Debate on Innovation and Safety

Nevertheless, Newsom acknowledged the need for artificial intelligence safety measures but called for a more balanced approach. He has tasked experts with developing science-based risk analyses and directed state agencies to continue assessing potential threats from artificial intelligence.

The bill faced strong opposition from Silicon Valley, including tech giants like OpenAI and Google, as well as some politicians. Former House Speaker Nancy Pelosi warned that the bill could slow artificial intelligence progress in California.

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How to Migrate MATIC to POL: A Step-by-Step Guide

The Polygon network is expanding its ecosystem with the enhancement of POL, a new token that will serve more purposes than the current MATIC tokens. With this switch from MATIC to POL, some users would undoubtedly want to know how their MATIC tokens will be converted.

If your tokens are on Polygon PoS, Ethereum, or zkEVM, this guide will help you out on how to convert MATIC to POL.

What is the Reason Behind Polygon Moving from MATIC to POL?

Polygon’s approach to the second phase of MATIC to POL evolution is strategic. It aims to enhance the digital asset’s performance and utility across the polygon ecosystem with improved functionalities.

Polygon Networks will rely on POL for its staking hub and governance capabilities for its Aggregation Layer, which is projected to be developed in 2025.

Understanding the Migration Process

Migration from MATIC to POL depends on the network where the tokens are situated. Hence, there are migration thresholds for Polygon PoS, Ethereum, and zkEVM networks.

MATIC to POL Migration on Polygon PoS

For MATIC holders on the Polygon PoS network, the migration will come into effect automatically. You do not have to do anything. There are occasions when, after such an upgrade, “MATIC” will still be visible in the wallet despite the token being upgraded to POL.

In such cases, you will need to change the token symbol from MATIC to POL by yourself. This is very easy to do in the wallet application interface; it requires changing the token ticker to the correct one in MetaMask or analogous wallets.

How to Migrate MATIC to POL on Ethereum

As for the tokens under the Ethereum network, the change will be manual. You will have to go through the Polygon Portal Interface to upgrade. Here’s a step-by-step guide

• Connect to the portal. Navigate to the Polygon portal, where the migration will occur.

• Once you’re connected, click on the option to upgrade your MATIC tokens to POL. A dialog box will open with two requests for action: the initial upgrade and the final migration.

• Check gas fees. Please take time to check gas fees for every transaction you are about to confirm. After confirming the upgrade transaction, allow time for the transaction to be processed.

• Add POL to your wallet: When the migration is finally over, a POL token balance should be reflected in your wallet. If it does not appear automatically, you have to find and add the POL contract address.

Migrating MATIC to POL on zkEVM

If your tokens are on the zkEVM network, you will first be required to migrate them to Ethereum before proceeding to the POL token migration. Follow these steps:

• First, use a bridge such as the Polygon Bridge to move your MATIC tokens from zkEVM to the Ethereum network.

• When MATIC tokens are on Ethereum, follow the earlier described steps for migrating them to POL through the Polygon Portal Interface.

• After the migration is carried out, confirm that POL tokens appear in the wallet. If that’s not the case, you have to manually add the POL contract address to your wallet for visibility.

What Happens if You Don’t Migrate?

If you hold MATIC but decide not to upgrade, you shall forfeit access to various features available on the Polygon network. For instance, once the migration process is over, it will be impossible to use MATIC to pay for staking or gas fees on the network.

Furthermore, not upgrading could cause you to lose your staking rewards.

Other Migration Scenarios

A holder of the MATIC may be involved in many other migration scenarios.

Centralized Exchanges (CEXs): For MATIC holders on a CEX like Binance or Coinbase, the exchange will likely handle the migration. Remember to ask your exchange for specific migration details.

Smart Contracts: MATIC staked in a smart contract on Polygon PoS will be automatically migrated, as there will be no smart contracts in Polygon. Smart contracts in Ethereum or zkEVM layers have to be upgraded or updated manually to perform the migration properly.

Liquid Staking Providers: Users participating in liquid staking programs should remember that such services could be put on hold for some time during the transition. The staked MATIC tokens will be upgraded automatically after the migration process is complete.

What’s Next after MATIC to POL?

In addition to the direct migration, which is most immediate, POL will be an important part of the Polygon network for the present and future. With the upgrade, all token holders can be assured that they will continue enjoying all the operations offered in the Polygon network, like staking, gas fees, and network security.

Final Thoughts

The change from MATIC to POL is the necessary progression for Polygon 2.0. Whether the tokens are on Polygon PoS, Ethereum, or zkEVM, there is a clear sense of order and process for transforming them using the right resources and help.

Complete the migration as soon as possible so you can actively participate in Polygon’s expanding ecosystem and enjoy all the advantages POL offers.

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Web3 Prediction Platform Polymarket Seeks $50M Funding

Polymarket is reportedly eyeing a $50 million funding round to finance its operations and support its upcoming token launch. Per the official statement, investors who partake in the fundraiser are eligible to receive token warrants allowing them to purchase the assets should Polymarket debut its native coin.

Leveraging the Polymarket Optimistic Oracle System

Polymarket currently uses optimistic Oracle (OO) from UMA to settle disputes and verify actual results. This system ensures prediction accuracy by supplying vital data for smart contracts.

Contracts on Polymarket look to UMA’s OO for results when they need real-world data. In the event that there is disagreement over the outcome, the matter is forwarded to UMA’s Data Verification Mechanism (DVM).

It is now up to the UMA token holders to cast their votes and decide what should happen. In the future, this new token could be involved in this dispute resolution procedure if Polymarket goes through with its planned token launch.

Previous Funding and Recent Disputes

Due to its strong investor interest, Polymarket has raised $70 million in two rounds of funding this year. Ethereum co-founder Vitalik Buterin participated in a Series B round in which the company raised $45 million in May.

This came after GeneralCatalyst led a $25 million Series A round that was previously undisclosed. Polymarket has been involved in multiple high-profile disputes concerning UMA’s event resolution mechanisms despite its financial successes.

One of the most prominent events happened in June and revolved around a prediction market regarding Barron Trump’s role in the development of the DJT meme coin. At first, the market was settled by UMA’s oracle, suggesting that Trump was not involved.

Later on, Polymarket reversed this ruling, claiming that Barron Trump was involved “in some way.” As a result, the platform issued refunds to those who had signed the “yes” contract, a decision that caused a great deal of controversy.

In May, there was another dispute of a similar nature, this time concerning UMA’s decision to resolve a prediction on spot Ethereum exchange-traded funds (ETFs). Even though the US Securities and Exchange Commission (SEC) was still reviewing the funds’ proposals, UMA concluded that they had been approved.

Hence, Polymarket bettors contested UMA’s ruling, claiming it was made too soon.

Surging Activities

Nevertheless, Polymarket has seen a spike in activity, especially in relation to the 2024 US presidential election. So far, users have wagered an additional $223.6 million on the popular vote in addition to nearly $993.1 million on the presidential election winner.

Furthermore, the platform processed over 63,000 user predictions totaling $472.9 million in August alone. This represented a rise in volume and user participation year over year of 5,900% and 2,985%, respectively.

With a record daily volume of $37.3 million on September 11 and an all-time high of 12,649 daily users on September 18, the momentum has continued into September. Notably, 86% of trading volume and 74% of user activity over the last week were from markets connected to the US election.

Polymarket and Regulatory Concerns

Polymarket’s swift expansion has also drawn heightened attention from US authorities. Recently, the US Commodity Futures Trading Commission (CFTC) Chairman, Rostin Behnam, voiced his concerns regarding Polymarket’s provision of services to residents of the United States without the required registration.

Behnam emphasized that the CFTC would ensure that any illegal activity is put to an end. However, it isn’t the first time Polymarket has faced regulatory issues. Two years ago, the CFTC alleged that the platform provided more than 900 event-based binary options markets without the necessary registration.

However, Polymarket reached a $1.4 million settlement with the CFTC in January 2022 and limited access for users with US IP addresses as part of the settlement.

Venture Capital Funding in the Crypto Space

The crypto industry is still being shaped by venture capital funding, with firms such as Paradigm and Andreessen Horowitz (a16z) playing leading roles. These companies employ voting mechanisms to influence ongoing projects in addition to providing funding for new ones.

Notably, over $5 billion was invested in the cryptocurrency space in Q1 of the year, and estimates for the third quarter suggest that there may be more than $2 billion injected into the industry.

Venture capital still flows despite a slowdown in token offerings such as Initial DEX Offerings (IDO), especially for seed rounds and Series A funding. Moreover, investors are now focusing on infrastructure and tool development projects rather than projects involving gaming and non-fungible tokens (NFTs).

This shift is clear from the top crypto investment deals by a16z, which totaled $208 million and included Eigen Layer, Espresso Systems, and Story Protocol.

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