PayPal has a stablecoin 👊💥
PayPal's shiny, dollar-pegged PYUSD - the glow-up Ethereum's been waiting for? Base has surge in users but Shiba Inu calls it copycat. Why Neopets Cancelled NFT Game? And what is ChatBTC?
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PayPal's entering crypto world with… PayPal USD.
That's right, the big P is diving deeper into the cryptoverse, bringing forth a shimmering, shiny, dollar-pegged stablecoin (PYUSD).
Deets
Issuer: Paxos Trust Co. will issue the stablecoin.
Purpose: The stablecoin is set to become a component of the overall payments infrastructure, as stated by PayPal CEO Dan Schulman.
Backing: PYUSD will be backed by dollar deposits, short-term treasuries, and cash equivalents.
Network: PYUSD will be issued on the Ethereum blockchain as an ERC-20 token.
PayPal aims to seamlessly integrate this offering with its other crypto services. Users will be able to exchange dollar-pegged tokens for cash or other assets (reportedly)
Eligible U.S. users can transfer PYUSD between PayPal and compatible wallets, send PYUSD as P2P payments, and convert between PayPal-supported cryptocurrencies and PYUSD at vendor checkouts.
Past Initiatives
In March 2021, PayPal introduced a crypto checkout service.
By May, the platform added integrations that let users purchase Bitcoin and then transfer it externally.
Transparency and Reports
From next month, Paxos will release monthly reserve reports for PYUSD. These reports will detail the assets backing the stablecoin. Paxos will also publish third-party attestations on the value of PYUSD reserves, overseen by an independent accounting firm.
Earlier Relations:
Paxos previously collaborated with crypto exchange Binance to create the BUSD stablecoin.
However, Paxos ended this relationship after facing potential legal action from the U.S. SEC regarding investor protection laws.
Unexpected Echoes
When PayPal rolled out its PYUSD stablecoin, it didn't just make headlines; it sparked a whole surge of imitators. In the aftermath, nearly 30 wannabe "PYUSD" tokens sprang up across various chains.
Quick numbers check: From BNB Smart Chain to Ethereum, and even Coinbase's shiny new layer 2, these imitation tokens are popping up like unexpected notifications. But, the genuine PayPal USD has a clear history, dating back to its debut in November 2022, with a specific contract address to boot.
If you spot PYUSD on platforms like UniSwap or other decentralised exchanges, approach with caution. Some of these might just be trying to ride the PYUSD hype train. One of these tokens on Ethereum quickly chalked up a remarkable $2.6 million in trades.
Ethereum's golden ticket or…?
Some say it's the glow-up Ethereum's been waiting for. For others, it's ringing decentralisation alarm bells.
“PayPal has 430 million active accounts. Sleep on this if you want. Ethereum is becoming the money layer of the internet.”- Ryan Sean Adams.
Numbers Talk: With Ethereum boasting 300k-400k daily users, and PayPal rolling with 430 million accounts, the potential for Ethereum's adoption just got super-sized! If everything aligns, we could see a ginormous onboarding onto Ethereum, all thanks to PYUSD.
The Pros
The Cons
Lark Davis points out that Paxos, the issuer of PYUSD, is the same company regulators went after concerning Binance USD. Déjà vu?
The Neutral Zone:
PYUSD might give established stablecoins like Circle’s USDC and Tether’s USDT a run for their money.
Competition is Healthy: While USDC by Circle and USDT by Tether dominate the stablecoin scene, dYdX CEO Antonio Juliano sees PYUSD as a welcome addition. More reputable stablecoin options can only lead to better products for users.
Lawmakers & Regulation: The road to crypto regulation in the U.S. has been long and winding. With PayPal's entry into the scene, there are renewed calls for comprehensive legislation. Patrick McHenry emphasised the need for decisive regulation, hinting that it’s vital for the U.S. to remain at the vanguard of digital asset innovation.
What's in it for the Average Joe?
Decentralised U.S. dollar stablecoins could be revolutionary, offering a borderless and uncensorable version of the world's premier currency.
However, PYUSD's initial rollout via Venmo limits its potential.
On the upside, PYUSD could allow users to move funds outside of PayPal via the Ethereum network, though centralisation concerns persist.
TTD Numbers 🔢
$124 million
Base, Coinbase's new layer-2, Optimism-based network sees a surge with over $124 million bridged to the rollup, per Dune Analytics.
Dominant Users: A significant portion of the activity stems from “degen crypto power users”, as noted by Mike Ippolito.
Post-Launch Activity:
Quick emergence of Base DEXs with a 24-hour volume of $230 million and 700,000 trades.
A meme coin named BALD skyrocketed in value before plummeting to zero in a “rug-pull” scenario.
Profits: Base accumulated over $700,000 in profit within days of its inception.
As Coinbase is gearing up for the launch of its Ethereum Layer 2 solution named Base, it announced the “Onchain Summer” campaign. The campaign, set to kick off on August 9, is a celebration of onchain art, gaming, music, and more, primarily powered by Base.
Shiba Inu's Reaction: This move by Coinbase has stirred some unrest in the Shiba Inu community, which finds the campaign eerily similar to their "Summer of Shibarium" initiative. In fact, Shiba Inu's lead developer, Shytoshi Kusama, didn’t hold back, commenting that if it's not a "Shadowcat," then it's undoubtedly a "#copycat."
TTD NFTs 🐝
Neopets Cancels NFT Game
Neopets CEO Dominic Law revealed that the cancellation of the Neopets Metaverse NFT game was due to negative community sentiment and market perception towards crypto. Law stated that Neopets fans care less about Web3 and have a negative connotation towards it.
The goal of Neopets is to bring back its 150 million users, but Law believes that most of them don't believe in the technology and associate it with scams. The release of higher-quality NFT games could help change the perception, but Law doesn't think there are enough good ones currently available.
Drest x Copenhagen Fashion Week
Luxury mobile style game Drest is partnering with Copenhagen Fashion Week to allow users to try on the latest styles in the metaverse. Users can style avatars and create streetwear outfits in the game, with daily in-game challenges inspired by the fashion event. The collaboration will feature Nordic brands and incorporate brand storytelling and digital backdrops of iconic Danish sites. Drest, which works with over 260 luxury brands, is not currently Web3 enabled but is moving closer to it with plans to release a metaverse-enabled version of the game. The partnership highlights the potential of gaming as a revenue stream for retail.
Decreasing Value in Stolen NFTs
The value of stolen NFTs has been decreasing, with $1.73 million stolen in July, a 31% decrease from June. Half of the stolen NFTs were sold within 165 minutes on Blur, the leading NFT marketplace. NFT trading volumes have also been declining, with a 17% decrease in July. This decline in interest is reflected in the decreasing number of trades and unique traders on Ethereum NFT marketplaces.
TTD Hacks 🥷🏻
Steadefi's Plea
Popular yield aggregator Steadefi has been hit with an exploit, putting all the funds it handles at risk. In response, the company has pleaded with the hackers to return most of the stolen money, offering to let them keep 10%. Steadefi has made it clear that they will not pursue the hackers or involve law enforcement if the funds are returned. However, if the hackers reject the offer, Steadefi plans to offer the 10% to anyone who can provide information leading to a conviction.
Cypher Protocol Breach
Solana-based decentralised exchange Cypher Protocol suffered an exploit or security incident, resulting in the loss of nearly $1 million in cryptocurrency. As a result, the protocol's contracts have been frozen, and the team is trying to establish communication with the hackers to negotiate the return of the funds.
Curve's Negotiation with Hacker
A hacker who stole $73.5 million from DeFi lending protocol Curve has returned $52.3 million after being offered to keep 10% if they returned the rest. The hacker even communicated with Curve operators to ensure the refund address was correct. The funds were returned just in time to prevent Curve's founder from being liquidated on an $85 million loan. Despite the return of funds, Curve is still offering a $1.85 million bounty to anyone who can identify the hacker and lead to legal action.
TTD ChatBTC 🤖
As Bitcoin continues to dominate headlines, a dedicated AI chatbot named ChatBTC has been introduced to the scene by Chaincode Labs.
Aim? to provide accurate technical information about the blockchain, contrasting with the broader AI solutions like OpenAI's ChatGPT, which can sometimes provide unspecific or even inaccurate answers.
What is it?
ChatBTC, launched just a week ago, serves as a specific alternative to ChatGPT.
Designed for users seeking reliability in response quality and origin.
Based on a collection of specialised and approved Bitcoin resources.
Features the same knowledge foundation as bitcoinsearch.xyz, another product by Chaincode Labs.
Art Assoiants, the product manager, explains that the tool references high-signal resources known for their comprehensive technical discussions.
Currently in its alpha phase, implying there's room for further improvement.
Comparing with ChatGPT
ChatGPT, OpenAI's famed chatbot, achieved immense success last year, amassing over 100 million users in just two months post-launch.
However, ChatGPT is identified with "hallucinations," or potentially offensive and inaccurate responses.
Chaincode's ChatBTC promises fewer of these general AI problems because of its more narrow, specialized training data.
Features of ChatBTC
Users are welcomed by a standard chat interface similar to ChatGPT's.
A unique feature allows users to interact with virtual avatars of renowned Bitcoin Core contributors like Matt Corallo, Andrew Chow, and Greg Maxwell.
For generic answers, there's a virtual cat named "Holocat."
No free version available. Each question costs users around 50 satoshis or about 1.5 cents at the time of writing.
Payments are facilitated using a web standard called L402, recently modified to allow Bitcoin payments.
TTD Surfer 🏄
OpenAI has launched GPTBot, a web crawling tool that could enhance future ChatGPT models.
The native currencies for two Reddit communities, MOON and BRICK, saw a significant increase in value after Kraken listed the tokens for trading.
Blockchain.com has obtained a payments license from the Monetary Authority of Singapore (MAS), allowing it to offer digital payment token services.
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