Crypto News Headlines (25-Aug-2022)

Sam Trabucco, the co-CEO of crypto trading firm Alameda Research, is stepping down from his leadership role and becoming an adviser, Trabucco tweeted Wednesday. Like crypto exchange giant FTX, Alameda was started by Sam Bankman-Fried, and the company operates a vast network of trading, yield farming, startup investments and market making.

Fellow co-CEO Caroline Ellison will remain as the company’s sole CEO, Trabucco wrote.

Trabucco said in a tweet thread that he had significantly reduced his role at Alameda over the past few months, noting he reached a point in life where had to “prioritize other things” such as his personal life. “I needed to relax,” he added, and I’m really, really happy.”

Trabucco said he doesn’t currently have any other crypto projects lined up, “but I wouldn’t rule anything out in the future once I feel more ‘recovered.'”

Kambiz Nazerian, head of Tehran Electricity Distribution Company, said Monday that Iranian authorities have discovered and seized 9,404 illegal cryptocurrency mining devices in Tehran since the beginning of the Persian calendar year which started on March 21, local media reported.

He explained that the mining equipment was discovered by inspectors in different districts of the Iranian capital.

Iranian authorities have regularly announced the discovery of illegal cryptocurrency mining machines in different parts of the country over recent years. Many of these unauthorized cryptocurrency mining operations were based in public locations, such as schools and mosques, that receive free or heavily-subsidized electricity.

As the crypto world prepares for the Ethereum merge next month, popular crypto exchange Coinbase announced on Wednesday the launch of cbETH, its new wrapped and staked Ethereum ERC-20 token.

Coinbase will add support for Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds will be lost.

“Coinbase Wrapped Staked ETH (cbETH) is a utility token that represents ETH2, which is ETH staked through Coinbase,” the company tweeted, adding that “cbETH can be sold or sent off-platform, while ETH2 will remain locked-up until a future protocol upgrade.”

Staking is pledging an asset to a network to help it validate transactions, usually for a monetary return or rewards.

The Japanese government’s Financial Services Agency (FSA) and the Ministry of Economy, Trade, and Industry (METI) will review corporate taxation for crypto companies from 2023.

The Japanese government has announced that it will begin reviewing the crypto tax rules for corporations from 2023. Local media outlets reported that the Financial Services Agency (FSA) and the Ministry of Economy, Trade, and Industry (METI) would be reviewing how to tax businesses that use crypto “for the purpose of nurturing startups.”

The review is focusing on crypto startups that are issuing tokens to raise funds that are then used to build the business. The regulators say that the new system would consider if companies that own crypto assets will only be taxed when profits are generated from sales. They also say that the agencies do not wish to hinder the growth of startups and discourage them from working inside Japan.

Coinbase has launched a new asset consisting of Ether tokens that are staked and wrapped through the crypto exchange.

In a Wednesday announcement, Coinbase said it will be listing Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network as an ERC-20 token, allowing customers to use their staked Ether (ETH) while earning rewards on the exchange. According to its website, users can withdraw the tokens to Coinbase, stake them, and then wrap the ETH2 into cbETH, with the new wrapped staked token balance visible on their accounts. The tokens are expected to be available for trading on Aug. 25 “if liquidity conditions are met.”

“Our hope is that cbETH will achieve robust adoption for trade, transfer, and use in DeFi applications,” said Coinbase in its cbETH white paper released in August. “With cbETH, Coinbase aims to contribute to the broader crypto ecosystem through creating high-utility wrapped tokens and open sourcing smart contracts.”

Coinbase will add support for Coinbase Wrapped Staked ETH (cbETH) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds will be lost.

Bitcoin Depot, the world’s largest operator of crypto ATMs, plans to go public with a listing on Nasdaq by merging with special purpose acquisition company (SPAC) GSR II Meteora at an estimated value of $885 million, according to a statement shared with CoinDesk.

The deal is expected to close by the first quarter of 2023, a spokesperson told CoinDesk.

The ATMs enable users to purchase crypto with cash or debit cards and wire the tokens directly to a wallet of their choice without going through a crypto exchange. They are, however, also used by scam artists who advertise goods on eBay or Craigslist, instruct their victims to pay by depositing physical currency in an ATM and wiring crypto to a particular wallet and then do not deliver the goods. In March, the U.K.’s Financial Conduct Authority (FCA) warned that crypto ATMs operating in the country are illegal and must be shut down.

Atlanta-based Bitcoin Depot says it has a network of over 7,000 locations across the U.S. and Canada, giving it a global market share of 19.1% according to data from Coin ATM Radar. There are more than 38,000 crypto ATMs installed in almost 80 countries, the data show.

Cryptocurrency mining has become a profitable business for many companies in Russia’s energy-rich regions, and an alternative income source for ordinary Russians. Despite the generally low rates of electricity for commercial purposes, many have been tempted to mint digital coins on cheaper household power or even stolen energy.

Authorities in Irkutsk, a Siberian oblast with abundant energy resources where rates start as low as $0.01 per kWh in rural districts, have been going after illegal mining operations. The latter have caused a spike in consumption in both residential and industrial areas, allegedly leading to frequent breakdowns and outages across the region.

This year alone, local power distribution companies have filed 400 lawsuits against miners who unlawfully took advantage of subsidized electricity meant for the population or illegally connected their hardware to the grid.

Nvidia said it has “limited visibility” into how much the firm’s crypto mining hardware impacted its overall GPU demand in the second quarter this year, as revenue over the past three months ending July 31, 2022, fell to $6.5 billion, or 19% from the previous quarter.

The company’s second-quarter revenue was significantly lower than the $8.10 billion Nvidia forecast in May.

Revenue for Nvidia’s gaming division fell 44% from the previous quarter to $2.04 billion, with the firm citing “challenging market conditions.”

“Our GPUs are capable of cryptocurrency mining, though we have limited visibility into how much this impacts our overall GPU demand,” said Nvidia CFO Colette Kress.

Shiba Inu community forecast a 111 trillion SHIB burn, which spurred holders of SHIB to be bullish.

According to the Shiba Inu community, 111 trillion SHIB could be burnt in the upcoming year

SHIB owners may have been anticipating a positive indication when they saw a large burn

Crypto’s price is set to recover its losses, according to analysis of the SHIB chart’s rising formation

Over the past two months, a surge in the meme coin has been brought on by the Shiba Inu burn events. The community of SHIB holders remains to be concerned about the burn.

SHIB BPP shared a prediction that 111 trillion Shiba Inu will burn over the course of the next year on the community-focused discord channel for the coin.

In the coming year, according to SHIBQueenie, the community’s Discord channel admin, 111 trillion could be destroyed.

Graphics card giant Nvidia CFO Colette Kress says the company has been unable to estimate reduced crypto mining demand impacted its Q2 results, which fell short of analyst expectations on Wednesday.

The chip giant released its financial results for the three months ended July 31, which revealed a 19% quarter-on-quarter drop in revenue to $6.5 billion, while net income fell 59% to $656 million.

Revenue for its gaming division, which includes sales of its high-end GPUs, fell 44% in revenue from the previous quarter to $2.04 billion, which Nvidia attributed to “challenging market conditions.”

Kress, who also serves as executive vice president of the company, said Nvidia has limited visibility on how the crypto market affects the demand for their gaming products:

“Our GPUs are capable of cryptocurrency mining, though we have limited visibility into how much this impacts our overall GPU demand.”