EU Commission 💶 / Explaining crypto's biggest lawsuits 👩‍🏫 Ripple's XRP and Block.one's EOS

Ripple's (XRP) Chris Larsen wants to leave the U.S. and leave his court battles behind...

Inside.com Part of   Network October 07, 2020

Market Watch Bitcoin $10,640 7 day: -0.7% Ethereum $343 7 day: -4% All crypto $337b 7 day: -1.5% Bitcoin dominance 58.6% 7 day: +0.6% Prices as of 4:15 p.m. EDT

The European Commission Brussels-based European Union executives will advance deglobalization initiatives that will likely benefit European blockchain projects. EU leaders have tasked the European Commission with identifying areas where the bloc relies too heavily on non-European countries, especially the U.S. and China. The Commission should also suggest plans to amend the situation using artificial intelligence, 5G, cybersecurity, and blockchain. The EU Commission will be utilizing a considerable amount of the 2021-27 budget for deglobalization efforts, including focused support for local industrial alliances, European Battery Alliance, Clean Hydrogen Alliance, an Internet of Things (IoT) consortium, and blockchain and cybersecurity projects. Reuters

Chart of XRP Ripple's (XRP) Executive Chairman Chris Larsen wants to leave the U.S. and leave his court battles behind. Speaking during the Los Angeles Blockchain Summit, Larsen expressed frustration at domestic "hostility" towards cryptocurrencies. Larsen and Ripple CEO Bradley Garlinghouse have been defending themselves against harmed XRP investors who allege that Ripple's initial coin offering (ICO) was an unregistered securities offering. During the summit, Fortune interviewed Larsen, who said that Ripple could relocate its headquarters as a result of this regulatory "hassle," naming the U.K. or Singapore as possible options. A group of investors, led by Bradley Sostack, filed a lawsuit in May 2018 against Ripple and Garlinghouse – Sostack alleges Ripple defrauded investors. A major defense launched by Ripple's legal counsel was to avert the allegations of fraud by demanding proof of Ripple's misrepresentations of XRP's utility and its alleged misstatements of XRP contracts from December 2017 to January 2018, as alleged by Sostack. In 2018, another investor in Ripple's ICO, Vladi Zakinov, led another class-action lawsuit in District Court for the Northern District of California. Ripple argued that those plaintiffs were late in filing. Ripple also argued that Ripple did not sell XRP tokens directly to the plaintiffs. Last month, the plaintiff's amended complaint argued that Ripple's XRP tokens are unregistered tokens under the SEC's guidance. Larsen's personal liquidations of XRP have made him a billionaire. Besides the lawsuits: Larsen also spoke about MasterCard's (NYSE:MA) central bank digital currency (CBDC) initiative. The $340b payment processor has central bankers actively working within its controlled, private sandbox. Larsen also hopes that Biden will win the presidency and positively impact the cryptocurrency industry. Larsen believes that Biden could provide carbon emission tax credits for cryptocurrencies' energy-intensive mining operations and assist in repatriating bitcoin mining rigs from overseas. Coindesk

A message from HUNTERZ Let’s Open Doors Together  Startups need to get in the doors of large enterprises at startup speed. Insiders, connectors and sales pros can get them there. Hunterz.io put them together. Join at Hunterz.io & get paid per intro. Try it Now

Block.one co-founder and 2020 U.S. presidential candidate Brock Pierce Reviewing the ongoing Block.one (EOS) lawsuits. Plaintiffs allege that EOS' $4b initial coin offering (ICO) was an unregistered securities offering. Block.one and its co-founders Brendan Blumer, Daniel Larimer, Ian Grigg, and Brock Pierce, are still involved in two class-action lawsuits regarding their conduct during the ICO: Crypto Assets Opportunity Fund LLC et al. v. Block.One et al. and Williams et al. v. Block.One et al. Block.one has already settled one complaint by the SEC, for which it paid a $24m fine. That SEC settlement allows other, private, "damages" actions against Block.one. Importantly, a penalty fine paid to the SEC is not equivalent to disgorgement of ill-gotten gains, nor restitution to harmed investors. Disgorgement and private lawsuits can often amount to far larger total penalties, even by orders of magnitude. About EOS' unregistered ICO: Block.one's ICO of EOS tokens lasted a full year. Plaintiffs Chase Williams and William Zhang have led class-action complaints about the conduct of Block.one and its co-founders, Blumer and Larimer, during those 12 months. According to court filings, by Oct. 3, attorneys at Grant & Eisenhofer PA became lead counsel and are advancing a newly consolidated class-action lawsuit in the U.S. District Court for the Southern District of New York. Block.one's leadership allegedly disseminated false accounts of EOS's ability to decentralize, engaged in "aggressive marketing" including a billboard in Times Square, and allegedly lied in various conference speeches. Blumer, a Block.one executive and business partner of Larimer, was actively involved in EOS' ICO. Blumer currently resides in Hong Kong. As mentioned earlier, in 2019, the SEC claimed that Block.one held an unregistered ICO that violated the federal securities laws' registration provisions between June 2017 and June 2018, raising billions.  Regarding Voice.com EOS.io also launched an EOS-based, purportedly decentralized, social media platform on a domain that it purchased for $30m, Voice.com. EOS claimed that it would reward social media influencers for quality contributions in EOS-linked Voice tokens. With leadership distracted by litigation battles, activity on Voice.com has slowed to a crawl. Voice.com received $150m from Block.one before Blumer transferred authority to another CEO, Salah Michael Zalatimo, in an attempt to separate Voice.com from EOS' co-founders. Conclusion: The newly consolidated class-action lawsuit is the last major attempt for harmed investors of EOS' ICO to recover some of their losses. Block.one spokespeople have reiterated that the company intends to defend its actions in court. It is important to note that lawsuits are civil, not criminal, charges. Although some complaints against Block.one have been dismissed, its primary violation ⏤ violations of securities laws ⏤ is still being litigated. EOS' ICO still ranks as the largest ICO in cryptocurrency history. The OneCoin ICO also claimed to have raised $4b, but that figure was likely exaggerated. Ripple's "never ending" ICO of XRP has also raised several billion dollars and has not been precisely quantified, as it still continues today.

Quick Hits: Bank of Canada's research report shows potential security threats to a central bank digital currency (CDBC). To minimize the potential risks, the Bank of Canada suggests limiting transfers and balances, adding security protocols for storage providers, and modifying liability rules. Residents of the city of Verneuil-sur-Seine in northern-central France are using an app, Avosvotes, based on Tezos' (XTZ) blockchain to vote for a municipal infrastructure project. Crypto exchange BitMEX experienced its highest single-day net outflow of cryptocurrencies. Net outflows were approximately 45,000 bitcoin on Oct. 2 as investors removed their existing fund from BitMEX after the Commodity Futures Trading Commission filed a civil enforcement action on Oct. 1 against BitMEX and three associated individuals. Major Payment Institution Xfers released an ostensibly FinCEN Travel Rule compliant stablecoin, XSGD. The stablecoin allows users with an existing bank account in Singapore to convert on a 1:1 basis the Singapore Dollar (SGD) into Xfers' SGD-backed stablecoin, XSDG, and vice versa. Tron (TRXO) founder Justin Sun again replicated Ethereum's decentralized finance (DeFi) ecosystem in a case study. (Sun famously copied parts of Ethereum and Filecoin's whitepapers for Tron's original whitepaper.) During the Los Angeles Blockchain summit on Oct. 6, Sun claimed that TRX is "better for DeFi ecosystems" than Ethereum, and he is paying developers to migrate to Tron's blockchain. Blockchain trade finance platform Contour completed a beta testing phase and began live production. Contour is owned and managed by eight shareholder banks, including Bangkok Bank, BNP Paribas, CTBC, and HSBC. See how leading sales teams are solving their challenges of selling remotely.* Top executives from Netflix, Calm, T-Mobile, and Okta discuss identity access management. Don't miss the event. Sign up here.* *These are sponsored posts. We're hiring! Check out our available positions: Business Researcher Director of Research Growth Marketing Manager Sales Representative Copy Editor

Written and curated by wide-eyed bitcoin watcher since $1, Aaron Wise. Streaming headline junkie, Associated Press fanboy, eye-strained news terminal watcher, 2017 founder of Cryptocurrency Newsfeed. Temporarily based in Florida while awaiting the construction of cryptopia.  Editor Edited by Eduardo Garcia in New York. Eduardo is writing an illustrated book about climate change that will be published by Ten Speed Press, an imprint of Penguin Random House. Bylines in The New York Times, The Guardian, Slate, Scientific American, and others. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade.

767 Bryant St. #203, San Francisco, CA 94107 Copyright © 2020 Inside.com

Did someone forward this email to you? Head over to inside.com to get your very own free subscription! You received this email because you subscribed to Inside Cryptocurrency . Click here to unsubscribe from Inside Cryptocurrency list or manage your subscriptions.

                                                           

The DeFi Session You Shouldn’t Miss

Last chance to register at the low rate of $99. The price increases at midnight ET!

To view this email as a web page, go here.

LESS THAN 1 WEEK AWAY ⏰  The countdown to invest:ethereum economy on Oct. 14 continues! We’re excited to dive deep into the most pressing topics around Ethereum’s game-changing protocol upgrade, the DeFi roller coaster, the global spread of stablecoins and decentralized exchanges. REGISTER TODAY It’s no surprise that as the highly anticipated launch of Eth 2.0 looms, several crypto exchanges are seeking ways to adapt their business models to stay relevant. Among those leading the way is Binance, which aims to defend its reign as the world’s largest cryptocurrency exchange. We invite you to join us for a special conversation with Binance founder and CEO Changpeng “CZ” Zhao as he discusses how centralized exchanges fit in the decentralized world.   FEATURED SESSION Can CeDeFi Eat the World? A 1:1 With CZ and Leigh Cuen Wed., Oct. 14, 1:00 p.m. ET   Binance CEO Changpeng Zhao offers a vision for the CEX he built to cannibalize itself. By promoting decentralization on all fronts and relying on the BNB token for value accrual, Binance Chain has quietly become among the most important chains in the ecosystem. As the DeFi economy ramps up and fierce competition from both centralized and decentralized counterparts continues to mount, can Binance’s “CeDeFi” ambitions prevail?  REGISTER TODAY LAST CHANCE SAVINGS! This is your last chance to save on your pass to invest:ethereum economy. Take advantage of $50 in savings before the clock strikes midnight! Today is the last chance to get your pass at $99. The price goes up tomorrow. Don’t wait.  SPONSORED BY Copyright © 2020 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences here.

Do Stablecoins Threaten the Decentralization of DeFi?

Also: A rise in bitcoin addresses, Ripple's complaints and more

To view this email as a web page, go here.

October 7, 2020 By Daniel Kuhn If you were forwarded this newsletter and would like to receive it, sign up here.  Making consensus  CoinDesk is preparing for the invest: ethereum economy  virtual event on. Oct. 14 with a special series of newsletters focused on Ethereum's past, present and future. Every day until the event the team behind Blockchain Bites will dive into an aspect of Ethereum that excites or confuses us. The Top Shelf news you subscribed to is down below.  Now, a few words from CoinDesk tech reporter Colin Harper. Centralized stablecoins Stablecoin use on DeFi applications has exploded in 2020.  Approximately $20 billion of crypto dollars are floating around, and a few billion of these have found their way into the ether by way of yield farming and lending. Even Ethereum’s flagship DeFi application, MakerDAO, is flooded with USDC, making the stablecoin the largest collateral for Maker’s DAI stablecoin. That’s right, a stablecoin is the primary collateral for another stablecoin. That’s how deep crypto dollars go into DeFi’s liquidity. Outside of Maker, DAI, USDC, TUSD and USDT are the most popular pools on Aave, with a collective market size of $650 million. Uniswap has roughly $780 million in USDC, USDT and DAI staked in market pools. On Compound, DAI and USDC are the first and third most popular markets with a staggering $1.4 billion locked.  As crypto dollars liquidity floods DeFi markets, will these tokens, which are centrally issued, threaten these application’s presumed decentralization? With bitcoin derivatives exchange BitMex facing legal actions from U.S. regulators, questions have floated whether exchanges like Uniswap should worry about being targeted next. Most DeFi proponents argue the “decentralized nature” of the exchange will excuse it from scrutiny. While the act of trading these assets may be considered decentralized, the assets themselves (namely, stablecoins) are not always decentralized. USDC, USDT, TUSD and PAX can be frozen and revoked by their central issuers.  If regulators wanted to come for DeFi, one weak point could be the stablecoin providers. This would even have implications for DAI, Ethereum’s so-called decentralized stablecoin, considering the bulk of its collateral comes from USDC. Crypto dollars are obviously beneficial to DeFi’s market structure for the price stability they provide. This is largely why they have taken over as the dominant source of liquidity (even over ETH) in most markets.  But they are inherently centralized entities, and it remains to be seen how regulators are going to approach their use in DeFi lending and DeFi markets in general. This finally raises the question: Do stablecoins threaten DeFi’s perceived decentralization? At CoinDesk’s virtual invest: ethereum economy program on Oct. 14, Circle CEO and Aave Finance founder Stani Kulechov will discuss how integral stablecoins have become for DeFi in their talk “Stablecoins, Hyper-Collateralization and the DeFi Economy.” Looking beyond this question, stablecoin use in yield farming and elsewhere has contributed to Ethereum’s skyrocketing fees. MakerDAO founder Rune Christensen and Near protocol co-founder Illia Polosukhin will discuss DeFi’s impact on Ethereum in their talk “The Fees are Too Damn High: DeFi Pushes Ethereum To its Limit.” One may ask, how stable is a crypto ecosystem built atop stablecoins? -Colin Harper Featured panel Frontends: Winning the Race for the DeFi User The emergence of new infrastructure such as automated market makers, portfolio managers and aggregation tools has kick-started an arms race for end users. We explore how these products are lowering barriers to entry in the Ethereum economy, where and how value will accrue with these platforms and the growing migration of centralized exchanges looking to get in on the act.  Join Dragonfly Capital Partners’s Haseeb Qureshi, Huobi’s Ciara Sun and Zapper.fi’s Nodar Janashia from 5:30 - 6:00 p.m. ET, Oct. 14, for the livestream at invest: ethereum economy. Weird DeFi Ethereum’s highly anticipated 2.0 upgrade is poised to bring the network ever closer to fulfilling its original vision to be a “world computer” that plays host to a parallel, decentralized financial system.  At invest: ethereum economy on Oct. 14, we will address the ramifications for investors as decentralized finance takes the crypto world by storm.  In a run-up to the event, our two-part CoinDesk Live: Inside the Ethereum Economy virtual miniseries on Oct. 8 and Oct. 12 introduces trending narratives we will break down at the main event: Why all the hype behind yield farming and food-inspired tokens? Should investors take them seriously or are they a fading trend? On Oct. 8, CoinDesk senior business reporter Brady Dale hosts Priyanka Desai of Open Law, Mason Nystrom of Messari and Sam Bankman-Fried of FTX to assess the newest crazes sweeping the DeFi landscape. Watch DeGeneration: How Ethereum Is Making Finance Weird on Oct. 8. Ethereum 101 Decentralized finance (DeFi) has seen explosive growth in 2020. This time last year, the total value locked (TVL, a way to quantify how much capital is following through the various decentralized protocols) was around $530 million. Today, there’s more than $10 billion sloshing around. In February, CoinDesk’s Brady Dale covered the moment the ecosystem crossed the $1 billion milestone, opening the door to further heights and raising questions about its longevity. Here’s why that mattered: $1B moment It was only December when the entire decentralized finance (DeFi) market was worth less than $700 million. [On Feb. 7,] it hit $1 billion, a figure that even the most fervent blockchain skeptics would have a tough time dismissing as meaningless. That figure is the measure of all the crypto held in projects that lend, hedge, abstract, swap or otherwise make structured bets using ethereum’s smart-contract powers, as totaled by DeFi Pulse. To be clear, $1 billion is not how much money people are making on DeFi, but how much they have committed. Their “locked-in” collateral is used on various protocols to make a wide array of bets, from simple loans to complex derivatives. “It proves that people around the world want access to more efficient, less biased, money,” Rune Christensen, the creator of DeFi leader MakerDAO, told CoinDesk via a spokesperson. Investor Spencer Noon of DTC Capital struck a similar note in an email to CoinDesk: "No other smart contract platform comes close in terms of its developer mindshare, tooling and infrastructure, to the point where I don’t believe DeFi could exist anywhere else today. And perhaps most surprisingly, we’re finally seeing a credible case for ETH to accrue a long-term monetary premium as the only truly trustless collateral type in decentralized finance." But nothing big happens on Ethereum without Bitcoin diehards mocking it. In this case, former bitcoin developer Peter Todd weighed in, tweeting, “Decentralized smart contracts can’t hold people accountable for debt. For that you need guns.”  And rapid growth doesn’t always continue. For comparison, Kickstarter, the leading crowdfunding site, launched in 2009. It hit $1 billion in pledges in 2014. Six years later, it still hasn’t quite touched $5 billion.   Still, DeFi got there a lot quicker, and it’s much more complex than crowdfunding.  Ryan Sean Adams, a crypto investor and ETH booster on Twitter, tweeted the news, writing: “Software eating money. Software eating banks. The next decade will be wild.” - Brady Dale invest: ethereum economy The move to ETH 2.0 will bring the Ethereum network ever closer to fulfilling its original vision: that of a "world computer" that plays host to a parallel, decentralized financial system. Will it be the rocket fuel that takes Ethereum's financial engine mainstream?   CoinDesk's invest: ethereum economy virtual event Oct. 14 will address the ramifications for investors of the sweeping changes underway within the Ethereum ecosystem.  Keynote speakers and panelists including Ethereum founder Vitalik Buterin and Commodity Futures Trading Commission Chairman and CEO Heath P. Tarbert will offer deep dives into Ethereum’s adoption of a proof-of-stake consensus mechanism, sharding and other elements of its impending 2.0 upgrade, as well how the new framework impacts the rapidly advancing business of DeFi, stablecoins and decentralized exchanges. Register to join invest: ethereum economy on Oct. 14.  At stake Of course, much of this explosive growth was prefigured by the success of the decentralized lending platform MakerDAO. One of the earliest DeFi protocols, how Maker works still boggles many minds.  CoinDesk’s multimedia team broke down how “the Godzilla of DeFi” creates DAI, why stablecoin interest rates fluctuate and what it means to collateralize crypto in this video from 2019.  Making MakerDAO Stablecoins. The name is a bit of a misnomer. In theory, stablecoin prices are pegged to various fiat currencies or hard monies, like gold or silver, in an effort to keep the crypto tokens price, you guessed it, stable. The benefits to a business that a stable token could provide are great. A stablecoin makes finance far easier than a volatile coin. Since the price is predictable, budgeting becomes less of a headache. But in practice this is a tough solution to make work. Take dai (DAI) for instance, the stablecoin designed by the Ethereum project MakerDAO. In the last four years MakerDAO has become the most popular decentralized finance application on Ethereum. The MakerDAO project includes two tokens: MKR and Dai: Dai is the stablecoin, MKR is the governance token. While both tokens can be purchased directly on exchanges, dai is created when users of the system lock up ether (ETH). When users lock up ETH they can withdraw dai which maintains a soft peg to the U.S. dollar. Users can withdraw up to two thirds of the value of ether that was locked up. So someone depositing three hundred in ETH at today's prices could then borrow up to around 50,000 dai, which would be worth roughly $50,000. Yet, because the price of ether fluctuates so much, the MakerDAO system encourages users to over-collateralize. Meaning they'll have to lock in more ether than they'll get back in dai.  Much like a traditional credit card, dai loans accrue interest. In January of 2019, the interest rate, or stability fee, for a dai loan, was .5%. Sounds like a good interest rate compared to what banks offer. Fluctuations But that low rate hasn't remained. Over the spring of 2019, dai interest rates have fluctuated dramatically. Dai's price is kept one-to-one with the dollar by backing the token with an equal amount of debt. If there is more dai in the world than the market demands, an oversupply, the price will drop. So the system began to adjust by increasing the interest rate on all borrowers in order to encourage them to pay down part of the amount they took a loan for or close the line of credit altogether. When people pay down their debt they pay it with dai, that dai gets burned or destroyed, which contracts the overall supply. A smaller supply should drive the price back up. In order to close a loan, the user can only repay the principal with dai. They have to repay the interest accrued in MKR, both those coins are then burned as debt gets retired. Dai is destroyed because dai is only backed by debt. So without that debt in the ecosystem those coins are not needed. MKR is destroyed as an incentive for the MakerDAO community. A dai loan could also be liquidated automatically. Should a person's collateral dip below the minimum 150% collateralization, the system will liquidate their ETH holdings with a 13% penalty fee. That's on top of the interest owed as well. It's a fee big enough few users want to get hit with. This is why rapid increases in the interest rates has been so controversial. DAOs and decision makers So who decides when to increase the interest rate and by how much. To explain that we have to explain one more concept: decentralized autonomous organizations or DAOs. The idea of the DAO is that lots and lots of people can manage and run an organization taking advantage of the wisdom of the crowd to make the optimal choice. MakerDAO is a programmatic loan system but it's also a DAO, governed by people who hold its MKR token. They get to decide on things like the interest rate, how much of one type of loan can be issued and more. The MKR token has been attractive to hold: As long as people keep taking out dai loans and repaying them, the value should go up as MKR tokens get burned and interest is repaid. Holding MKR also gives participants the chance to be a decision maker in an interesting new kind of financial organization. Collectively these people pay attention to the price of DAI and decide whether or not the interest rate needs to go up and down. As pioneers of a new financial instrument there's not much prior data for MKR holders to draw on to make an optimal decision. Nevertheless, as of this recording dai's price appears to have returned to a steady dollar valuation across major cryptocurrency exchanges and over-the-counter trading desks. In that way MakerDAO functions as one of the best versions of a  decentralized autonomous organization the industry can point to so far. – Christine Kim, Brady Dale and  Bailey Reutzel The ledger Snap back to 2020 again and you can see how much the ecosystem has evolved. MakerDAO is just one of many multi-billion dollar protocols. A range of other lending, trading and minting tools have either launched or finally gained tractions.  Last month, during the heady days of the “Weird DeFi” moment, my former colleague Leigh Cuen wrote about the “normies” getting filthy rich using this ecosystem of products.  Making money Ethereum whales undoubtedly drive the decentralized finance (DeFi) movement, but many people making money on DeFi trends are just regular Joes, so to speak.  One such trader, Joe, is a math student at a Canadian university. Just by playing with Ethereum software and his own calculations, he managed to make hundreds of thousands of dollars in 2020. This wasn’t his first rodeo, however; he’s been trading on decentralized exchanges (DEXs) for more than a year. “I’m not a whale in the crypto world but I’m one of the top users of the DeFi protocol I use,” he said. “Before, when DeFi was smaller, there was a lot less competition.”  Since Weird DeFi’s food craze began, Joe said “high yields” are now available to newcomers “without a lot of technical knowledge.”  DeFi infrastructure The DeFi mentality emphasizes open-source access to tools, services with low barriers to entry and distributed teams. Sometimes, this includes low barriers to entry for high-risk games.  According to Uniswap founder Hayden Adams in June 2020, most of the Uniswap ecosystem relies on ConsenSys infrastructure services, like Infura. This has also proven to be the common pattern for copycat DeFi projects like SushiSwap. ConsenSys spokesperson James Beck said the Ethereum conglomerate restructured to make infrastructure and wallet services, like Infura and the DeFi-friendly wallet MetaMask, pillars of the company’s “core software business.”  ConsenSys’ head of product for Infura, Michael Godsey, said his team handled the “increased usage” from the food-themed yield farming spike, watching closely to understand “these new usage patterns.” Such DeFi experiments provide inspiration and research data for Ethereum startups, not chagrin.  In reference to the DEX tools people use to access these trading games, Godsey added, “Uniswap and MetaMask are two of our amazing customers and many yield farmers are utilizing their platform to participate in this new activity.” As for Joe, the Canadian college student, he said he plans to keep stacking tokens because the broader DeFi movement is “sustainable and has been growing at a relatively slow pace for years.”  On the other hand, he said the trends over the past few months were heavily influenced by Compound’s token model. Joe reasoned these DeFi experiments might end in a “big crash” or slow fizzle.    “As long as risk-adjusted yield is higher than for other opportunities, I will keep using them,” he said. – Leigh Cuen Quarterly review The latest quarterly review from CoinDesk Research is out! In this 24-chart report, we look at major developments in crypto markets over the third quarter, focusing on growth in stablecoin liquidity, surging interest in decentralized finance applications, and the notable uptick in crypto derivatives volumes.  Download the free report from our Research Hub.  Top shelf U.S. constraints Ripple Executive Chairman Chris Larsen threatened to pull his fintech firm out of the U.S. if what he termed the country’s hostile stance toward cryptocurrency companies does not soon change, according to Fortune. Ripple is battling investor allegations that XRP is a security as well as mixed signals from the U.S. Securities and Exchange Commission. Larsen acknowledged that Ripple's leaving the U.S. would do little to stop top-line federal regulatory oversight but said a softer host government would nonetheless help, adding nearly every other country has a better handling of crypto than the U.S. Larsen named Singapore and the U.K. as possible countries to rebase in. New addresses Bitcoin has seen a rapid rise in the creation of new addresses on the blockchain so far this month, with one industry executive saying it’s likely due to traders moving funds off the legally troubled BitMEX exchange. Others point elsewhere. Glassnode’s "entities net growth" metric rose sharply by 244% from 9,750 to 33,620 in the first six days of October. The surge in new entities picked up pace in the wake of BitMEX’s legal woes users' panicked migration of funds to other exchanges. However, on-chain analyst Cole Garner said the spike probably represents an entry of new investors into the market, because the growth in new entities has kept pace, even after BitMEX withdrawals slowed. CoinDesk U CoinDesk researched and assembled a ranking of universities that provide the best blockchain education. This in-depth analysis measured the school’s scholarly impact, post-graduation job prospects and campus blockchain offerings – as well as survey responses – to determine the 46 top U.S. universities. Topping the list are Massachusetts Institute of Technology (MIT); Cornell University; University of California, Berkeley; Stanford University and Harvard University. Many smaller regional, or liberal arts, universities also made the list. Read the full methodology. Digital yuan An official for China’s central bank has unveiled usage statistics of state-backed digital currency trials that were conducted in three Chinese cities. Fan Yifei, deputy governor of the People’s Bank of China, said on Monday the bank opened 113,300 consumer digital wallets and 8,859 corporate digital wallets for residents of Shenzhen, Suzhou and Xiong’an to pilot a digital yuan. The digital wallets processed RMB 1.1 billion ($162 million) across 3.1 million digital yuan transactions between April and August when the pilots launched and ended, Fan said, making it the most widely used central bank digital currency (CBDC) in a commercial setting.  Token swaps MetaMask announced a new feature Tuesday: token swaps directly within the popular Ethereum browser extension and mobile application. The token-swapping feature will release first on its Firefox browser extension, before adding extensions for other browsers and MetaMask mobile. Up to now, to make a swap of tokens, an Ethereum user would need to go to the website of a specific decentralized exchange or exchange aggregator, sign in and run the swap. By building a token-swapping function into MetaMask itself, it should improve the user experience by automatically routing users to a service, cutting out a step.  Quick bites Inside the Estonian CBDC Experiment That Could Shape the Digital Euro (Ian Allison/CoinDesk) Amid US-China Tech War, Can Neo’s DeFi Stack Rival Ethereum’s? (Muyao Shen/CoinDesk) South Korea’s Central Bank to Test Digital Currency With Banks in 2021 (Daniel Palmer/CoinDesk) Google Cloud joins EOS blockchain community (Michael Kapilkov/CoinTelegraph) Anti money laundering has less than 1% impact on crime. At what cost? (Nicky Morris/Ledger Insights) The Thesis It seems like every investor has a thesis about how to best play the cryptocurrency opportunity, but who’s right?  CoinDesk has launched The Thesis, a weekly podcast with Senior Markets Reporter Daniel Cawrey that looks at the most important stories and trends for traders and unique interviews with top fund managers digging deeply into their viewpoint - their thesis. Tune into The Thesis at 9 a.m. ET on the first and third Saturday of each month. Listen to the first episode featuring Jake Brukhman of CoinFund. Who won #CryptoTwitter? ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is. Blockchain Bites A newsletter from CoinDesk See previous editions Copyright © 2020 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences here.