Crypto & Blockchain Daily Brief Thursday, February 1, 2024

Jupiter (JUP) is a decentralized oracle platform built on the Solana blockchain. It aims to provide reliable and secure data feeds to decentralized applications (dApps) and smart contracts. The platform is designed to bridge the gap between the real world and the blockchain by providing accurate and timely data from various sources. One of the main features of Jupiter is its ability to aggregate data from multiple sources and provide a consensus on the accuracy of the data. This helps to eliminate the risk of manipulation or tampering with the data, ensuring that the information provided to dApps and smart contracts is reliable. Jupiter also aims to provide fast and low-cost data updates. It leverages the high throughput and low transaction fees of the Solana blockchain to deliver real-time data updates to dApps and smart contracts. This makes it suitable for applications that require up-to-date information, such as decentralized finance (DeFi) platforms. To incentivize participation and adoption of the platform, Jupiter has launched an airdrop for SOL holders. The airdrop will distribute a total of 1 billion JUP tokens to SOL holders based on their holdings. The airdrop will take place in several rounds over the course of 12 months, with the first round scheduled to occur on November 20, 2021. To participate in the airdrop, SOL holders need to have their tokens in a Solana wallet that supports SPL tokens. Examples of compatible wallets include Sollet, Solflare, and Phantom. The airdrop will be distributed on a pro-rata basis, meaning that the number of JUP tokens received will be proportional to the amount of SOL held. Overall, Jupiter aims to provide a reliable and efficient oracle solution for the Solana ecosystem. With its airdrop, the project hopes to attract more users and developers to its platform, further enhancing the decentralized finance capabilities of Solana.

Standard Chartered, a British multinational banking and financial services company, expects the US Securities and Exchange Commission (SEC) to approve spot Ethereum exchange-traded funds (ETFs) in May. This optimistic prediction comes as the demand for Ethereum ETFs grows and the SEC's stance on approving cryptocurrency-based ETFs seems to be softening. Standard Chartered believes that Ethereum ETFs will be approved because they are considered less risky than Bitcoin ETFs. The company expects that the SEC will view Ethereum as a commodity rather than a security, which would make it easier for ETFs to be approved. Additionally, Standard Chartered believes that the recent surge in Ethereum's price and market capitalization will make it more difficult for the SEC to ignore the demand for Ethereum ETFs. If Ethereum ETFs are approved, it could have a significant impact on the price of Ethereum. Standard Chartered predicts that if Ethereum ETFs are approved in May, the price of Ethereum could reach $4,000. This is based on the assumption that the approval of ETFs will lead to increased demand for Ethereum, similar to what happened with Bitcoin when Bitcoin ETFs were approved. The approval of Ethereum ETFs could also bring more institutional investors into the cryptocurrency market. ETFs are seen as a more accessible and regulated way for institutional investors to gain exposure to cryptocurrencies. This influx of institutional money could further drive up the price of Ethereum. However, it is important to note that the approval of Ethereum ETFs is not guaranteed. The SEC has previously rejected multiple Bitcoin ETF proposals and has expressed concerns about the potential for market manipulation and lack of investor protection in the cryptocurrency market. It remains to be seen whether the SEC's stance on cryptocurrency ETFs has truly softened and whether Ethereum ETFs will be approved in May.

Sam Altman's cryptocurrency project, Worldcoin, is being investigated by regulators in Hong Kong over potential privacy breaches. According to sources familiar with the matter, the investigation is focused on Worldcoin's use of biometric technology to verify users' identities. Worldcoin, which was founded by Altman, the former president of startup accelerator Y Combinator, aims to create a global digital currency that is accessible to everyone. To achieve this, the project plans to distribute the currency to individuals around the world by using a network of mobile devices that can scan people's irises to verify their identities. However, the use of biometric technology has raised concerns about privacy and data protection. Critics argue that collecting and storing individuals' biometric data without their explicit consent is a violation of their privacy rights. Additionally, there are concerns that this data could be vulnerable to hacking or misuse. The investigation by Hong Kong regulators comes at a time when there is increasing scrutiny of the cryptocurrency industry. Regulators around the world are grappling with how to regulate cryptocurrencies and protect consumers from potential risks, such as fraud and money laundering. The use of biometric technology in cryptocurrency projects adds another layer of complexity to these regulatory challenges. Altman has acknowledged the privacy concerns raised by Worldcoin's use of biometric technology and has stated that the project is working to address these concerns. However, it remains to be seen how regulators will respond to these assurances and whether Worldcoin will be able to continue its operations in Hong Kong. Overall, this investigation highlights the ongoing tension between innovation and regulation in the cryptocurrency industry. While projects like Worldcoin may offer the potential for financial inclusion and empowerment, they must also navigate the complex landscape of privacy and data protection to gain regulatory approval.

Shares of New York Community Bancorp (NYCB) tumbled after the company reported earnings that missed expectations and announced a dividend cut. The bank reported earnings per share of $0.23, missing the consensus estimate of $0.25. The bank also announced that it was cutting its dividend by 71%, from $0.68 per share to $0.20 per share. The dividend cut was a result of the bank's decision to convert to a holding company structure, which required it to lower its dividend payout ratio. NYCB's stock fell more than 7% following the news. The bank's earnings miss was largely due to a decline in net interest income, which fell to $267 million from $277 million in the year-ago quarter. The decline was driven by a decrease in interest-earning assets, which fell to $49.9 billion from $54.7 billion. The bank also saw an increase in non-interest expenses, which rose to $265 million from $262 million in the year-ago quarter. NYCB's loan portfolio also took a hit, with total loans declining to $37.1 billion from $37.7 billion in the year-ago quarter. The decline was driven by a decrease in residential mortgage loans, which fell to $23.4 billion from $24.1 billion. The bank said that the decline in residential mortgage loans was due to a decrease in refinancing activity. Despite the disappointing earnings, NYCB's CEO expressed optimism about the bank's future. He stated that the bank's conversion to a holding company structure would allow it to pursue new growth opportunities and enhance its financial flexibility. He also noted that the bank's capital position remained strong, with a Tier 1 leverage ratio of 8.5%.

Jed McCaleb, co-founder of Ripple and Stellar, has confirmed that his XRP wallet has been hacked. The news of the hack caused the price of XRP, the cryptocurrency associated with Ripple, to plunge by 5% in just a few hours. McCaleb revealed the hack on a public forum, stating that his XRP wallet had been compromised and that he had lost a significant amount of XRP. He did not disclose the exact amount that was stolen, but it is believed to be in the millions of dollars. The hack comes at a time when XRP has been gaining momentum in the cryptocurrency market. The price of XRP has surged by over 200% in the past month, making it one of the best-performing cryptocurrencies of the year. The news of the hack has raised concerns about the security of XRP and other cryptocurrencies. Many investors are worried that their funds could be vulnerable to hacking attacks, especially as the value of cryptocurrencies continues to rise. Ripple, the company behind XRP, has been working to improve the security of its platform. In a recent blog post, Ripple announced that it has added new security features to its network, including enhanced encryption and two-factor authentication. Despite the hack, Ripple remains optimistic about the future of XRP. In a recent interview, Ripple CEO Brad Garlinghouse said that he believes XRP has the potential to become the global standard for digital payments. However, the recent hack and the subsequent price drop have raised questions about the viability of XRP as a secure and reliable cryptocurrency. Many investors are now questioning whether they should continue to hold XRP or look for safer alternatives.