Friday June 2, 2023
I started writing BitDigest in 2016 with the goal of sharing the key new stories in the world of digital currencies with our investment team. I added to the format – growing from 3 stories to over 20 per day and now cover AI and metaverse news. I also changed my method of delivery, but seven years later I still follow the same format. I wake up early every morning and scan Twitter, Telegram and different industry and national news sites. I also get market information from screens I created in FactSet and occasionally rely on a basic Google subject search.
I have tried to fair and unbiased in my reporting and therefore have never accepted any sponsorship or advertising; I do not want to be beholden to anyone. I have just tried to keep this simple allowing me to write it every morning before I leave for work and allowing the reader to gain the headlines in a couple of minutes over a cup of coffee or early morning train ride.
I continually try to improve what I am providing because I know that people want more information. Many of us are news and information junkies, but as BitDigest is really a side job, there is only so much time and effort I can give in the morning. As I once explained to a leading exchange that tried to acquire BitDigest, my wife said my children are not allowed to do any research for me. (The acquisition discussion was quite amusing given that they thought I had a large team working with me, but that’s a story for another day. I also cannot overlook the daily support I now get from my research and investment partner Gracie Maybell – Thanks Gracie!!)
One of the most frequent requests I have received through the years is to start a podcast. I have considered it, but recognizing the work that a podcast would require, I have never proceeded with this effort.
Well for the podcast requestors, I finally have good news. My fried Aaron Wise has started his own daily podcast called the Bitcoin News Show. I first met Arron several years ago when he ran the first crypto news aggregator. He is well-regarded in the crypto community and his daily show (coming to Apple Podcasts, Spotify, and other leading platforms) follows a similar structure as BitDigest: a straight news read of the most important headlines effecting the bitcoin network -- free of advertisements and sponsorships. If you prefer podcasts to written text, I would definitely recommend listening to this new podcast.
Many people have asked me for an introductory guide to bitcoin and blockchain technologies. In light of these requests, I put together a series of articles and books on these subjects and have continued to update these through the years. I just updated this information to include articles and books on the metaverse and AI. This information is available through my Substack home page under educational resources. I hope you find the information useful, please share it, and I would welcome any recommendations readers may have to add to this list.
◾ The European Parliament suggested adopting “a strict procedural default rule” defining all crypto-assets as “’transferable securities’ unless (and until) they are exempted and requalified” by national authorities. (Europa.eu)
◾ The Consumer Financial Protection Bureau issued a warning that non-bank payment apps may be at higher risk of loss than if funds are deposited in an insured bank or credit union account. (Consumerfinance.gov)
◾ The Commodity Futures Trading Commission published an advance notice of proposed rule-making regarding stability risks and the holding of digital assets. (CFTC)
Government & NGO Actions
◾ President Biden warned that AI could “change the character” of future conflicts adding AI may “overtake human thinking and planning.” (Usatoday)
◾ The Federal Reserve ordered Silvergate Bank to officially liquidate itself. (Reuters)
◾ The Financial Action Task Force said Qatar needs to make major improvements to its virtual asset oversight and improve its response to money laundering and terrorism financing activities. (FATF)
◾ Japan’s Personal Information Protection Commission issued a warning to OpenAI about collecting sensitive personal data without proper permissions. (Reuters)
Public Company Releases
◾ Marathon Digital Holdings (MARA) produced 1,245 bitcoin in May increasing their hash rate to 15.2 EH/s; the company sold 554 BTC during the period to fund operations. (Mara)
◾ Bitfarms (BITF) mined 459 bitcoin from a 5.0 EH/s hash rate and sold 414 BTC in May. (Globenewswire)
◾ Cipher Mining (CIFR) sold more bitcoin than it mined in May, producing 493 BTC (6.0 EH/s) but selling 513. (Globenewswire)
◾ CleanSpark (CLSK) purchased 12,500 new Antminer S19 XP mining rigs for a total price of $40.5 million. (Globenewswire)
Restructuring, Losses and Legal News
◾ Digital Currency Group asked a judge to consolidate two class action lawsuits that arouse over the collapse of Three Arrows Capital and transfer of a liability from Genesis to the DCG balance sheet. (Coincu)
◾ Getty Images asked a London court to prevent the sales of AI image generation systems by Stability AI accusing the Stability AI of using copyright protected images to train its Stable Diffusion system. (Reuters)
Protocols, Applications & Business News
◾ The Twitter account of OpenAI’s CTO was hacked to announce the release of an OpenAI sponsored crypto token. (Twitter)
◾ Standard Chartered Bank and PwC China released a white paper on CBDC applications in China and Hong Kong warning that connecting such solutions across jurisdictions remains a challenge, with international money transfers relying on the unprepared services of various financial and payment institutions. (Av.sc)
◾ GameStop (GME) announced a partnership with the Telos Foundation to help expand the global GameFi ecosystem and bring Web3 gaming to mainstream users. (PRasia)
◾ After a series of failed partnership agreements with crypto companies, F1 racing announced its latest crypto partnership with Layer 1 blockchain and smart contract platform Sui Network becoming the Official Blockchain Partner of Red Bull Racing. (Twitter)
◾ Japanese airline Air Nippon launched the first aeronautical-themed NFT marketplace with the aim developing a new channel for interacting with customers. (Airport-technology)
Metaverse Briefings & Activations
◾ Meta (META) announced its new 128 GB Meta Quest 3 mixed reality headset will ship this fall at a $499.99 price point. (Fb)
◾ Nike’s (NKE) virtual studio and Electronic Arts (EA) are collaborating to build new immersive experiences and unlock new levels of customization within the EA SPORTS ecosystem. (Nike)
Exchange, Custody and Product Updates
◾ Binance lost access to fiat ramps in Australia and has ceased all AUD trading pairs as of June 1st. (Twitter)
◾ Coinbase’s (COIN) derivatives exchange is launching bitcoin and ether futures contracts to enable investors to precisely manage risk and target attractive returns with lower fees. (Coinbase)