Weekly Update: AI-Generated Selfies, Hong Kong Crypto Updates, & more! 📰

It's been a crazy week in Crypto with a lot happening. If you don't have the time to keep up, it's okay we have you covered with this weeks weekly update!

Greetings Velvet Fam!

In the latest installment of the Velvet Newsletter, we dive into AI-generated selfie tools, the latest on Hong Kong crypto regulations, the future of Web3 and AI’s role in its development, the rise of key DeFi platforms, and the impact of crypto adoption on the global economy!

Let’s dive in!

Quick Hitters

· Central banks in Hong Kong and the UAE collaborate on fintech development initiatives:

· The ‘Space Pepes’ NFT achieved $7.4M in trading volume, outpacing any other collection over that time:

· Russia recently abandoned plans to launch a national crypto exchange for cross-border payments, opting instead to utilize existing platforms.

· Tether announced it would start Bitcoin mining operations in Uruguay.

· The Hong Kong Police Force launch a new metaverse platform, ‘CyberDefender.’

· Binance has appointed Richard Teng as the Head of Regional Markets, to oversee operations outside the US.

· Deutsche Telekom is joining Polygon’s PoS Chain as a validator, aiming to ultimately leverage its blockchain for mass-deployable applications.

· MakerDAO considers proposal to increase DAI’s savings rate.

· Mercedes-Benz NXT announced an NFT collection called Maschine, with the 1,000-piece generative art collection to go on sale June 7th.

· Binance has considered allowing institutional clients to hold collateral at a bank, which would enable customers to collateralize bank deposits.

In The News

Memecoin Craze Attracts Record Number of Traders to Uniswap in May

May saw an unprecedented surge in the number of traders on Uniswap, primarily driven by the soaring popularity of “memecoins” like Dogecoin and Shiba Inu. This craze reinforces Uniswap’s position as the top DEX, outperforming competitors and solidifying its status as a key player in the DeFi ecosystem. The platform’s ability to attract and retain new users amid rising gas fees on Ethereum demonstrates its resilience and highlights the growing appetite for decentralized finance solutions.

Migrating Ethereum NFTs to Bitcoin: A New Possibility with a Major Catch

A new protocol called Stacks now allows users to migrate their Ethereum-based NFTs to the Bitcoin blockchain. This development offers an alternative to Ethereum’s notoriously high gas fees and network congestion, but there’s a significant catch: the process is irreversible. Once the NFTs are transferred to the Bitcoin network using Stacks, they cannot be moved back to Ethereum. This means that users must carefully consider the implications of such a permanent transfer before proceeding. For those considering this option, weighing the potential advantages, such as lower transaction fees and increased network stability, against the risks associated with permanently moving NFTs away from Ethereum is essential. As both blockchains continue to evolve, each may offer unique opportunities and challenges for NFT creators and collectors.

Optimism Sinks Ahead of Major Token Unlock

Major L2 Optimism is experiencing a drop in value as it approaches a significant token unlock event. This upcoming release will make approximately 50 million tokens available to pre-sale investors, who initially purchased them at a much lower price. The large influx of tokens has raised concerns among some market participants that it could lead to increased selling pressure, which may negatively affect the token’s price. As these pre-sale investors gained access to their tokens at a significantly lower cost, they may be inclined to sell and take profits, creating downward pressure on the token’s value.

Find Satoshi Labs Rolls Out AI Tool That Turns Selfies into NFTs

Find Satoshi Labs has unveiled an innovative AI tool that enables users to convert their selfies into NFTs. By transforming personal images into unique digital art pieces, users can now trade and collect these one-of-a-kind NFTs. This revolutionary platform not only democratizes access to the booming NFT market but also fosters artistic expression through self-representation.

New Hong Kong Crypto Regulations Take Effect

Hong Kong has recently implemented new cryptocurrency regulations to enhance investor protection and combat money laundering. With these updated rules, all crypto trading platforms operating in the city are now required to obtain a license from the Securities and Futures Commission (SFC).

A significant change brought about by these regulations is the restriction of cryptocurrency trading to professional investors only. To qualify as a professional investor, one must possess at least HKD 8 million ($1.03 million) in assets. This move aims to safeguard retail investors from the risks associated with the volatile crypto market.

However, these stricter regulations may have unintended consequences on Hong Kong’s thriving crypto ecosystem. Smaller crypto exchanges could face closure or relocation due to the increased compliance burden, potentially affecting the city’s reputation as a leading global crypto hub.

As the regulatory landscape continues to evolve, it’s crucial for investors and industry players to stay informed and adapt accordingly. Keep an eye on this space for updates on how these new rules impact Hong Kong’s crypto market and the global blockchain industry.

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