EthHub Weekly #93

Gitcoin grants round 4 announced, Maker gets new investors, TXRX eth2 research team formed, Kyber rethinks token model and much more!

Dec 23, 2019

Curated by Anthony Sassano (@sassal0x) and Eric Conner (@econoar)

🎄 Merry Christmas from EthHub!

Well there goes another year and another decade. The 2010’s were a wild ride in crypto as this entire industry didn’t even exist in any real form until 2011/2012 - and Ethereum didn’t launch until 2015! What will the 2020’s bring? I have no idea - but I’m excited!

Since it’s the season of giving I wanted to give a quick shout-out to Daniel from Cryptocurrency Jobs’ new website - Donate in Crypto. This website pulls together a list of non-profits that accept donations in cryptocurrency which means you can now really show the world that ETH is money!

A quick note regarding the next Ethereum network upgrade - it’s scheduled to go live on January 1st 2020. Please update your nodes - you can head here for all the relevant information.

Have a great Christmas everyone!

- Anthony

News of the Week

👍 US Lawmaker Introduces Draft Bill to Bring Regulatory Clarity to Crypto

U.S. Congressman Paul Gosar (Republican-Arizona) has reportedly introduced a draft bill to bring regulatory clarity in the cryptocurrency sector.

The bill, dubbed “Crypto-Currency Act of 2020,” was introduced in the House of Representatives, according to a copy obtained by Forbes. The bill seeks to clarify which federal agencies should regulate cryptocurrencies.

The bill has divided cryptocurrencies into three parts - “crypto-commodities,” “crypto-currencies” and “crypto-securities.” Accordingly, it has proposed a “federal crypto regulator’’ for each of the categories to notify the public of any licenses and registrations required.

The Commodity Futures Trading Commission (CTFC) has been proposed to regulate crypto-commodities; the Securities and Exchange Commission (SEC) for crypto-securities; and the Financial Crimes Enforcement Network (FinCEN) for crypto-currencies.

⚖️ SEC Proposal Would Broaden ‘Accredited Investor’ Definition

The U.S. Securities and Exchange Commission (SEC) wants to allow more individuals and entities to invest in regulated financial instruments.

According to a press release issued Wednesday, the SEC intends to add a list of new qualifications to become an accredited investor. At present, accredited investors are defined as individuals with more than $1 million in net worth (or who earn more than $200,000 per year), an organization with more than $5 million in assets, banks and institutions which meet certain legal definitions or entities that match certain other restricted terms.

Being an accredited investor allows entities and individuals access to a greater number of private investments, including riskier investments and hedge funds, according to Bloomberg.

Under the SEC amendment, the term would expand to include new categories of "natural persons," individuals who qualify as "knowledgeable employees" of certain private funds, companies which meet certain restrictions, entities which "own 'investments'" defined under the Investment Company Act, family offices with a minimum of $5 million in assets, and spousal equivalents who can pool finances to qualify.

💰 Dragonfly Capital, Paradigm Buy $27.5M Stake in Maker

Venture funds Dragonfly Capital and Paradigm have acquired $27.5 million worth of MKR tokens and plan to take part in the Maker Protocol's governance system.

Announced Thursday by the Maker Foundation, the $27.5 million raised will fund the foundation's efforts to promote dai adoption in China and the broader Asia region. It's expected Dragonfly and Paradigm, who already have a strong presence in the region, will advise on the expansion.

"Dai continues to be the stablecoin of choice in all global markets for its decentralization and overall stability," said Rune Christensen, CEO of the Maker Foundation, in a statement. "The support and expertise of Dragonfly Partners and Paradigm will give Dai an unparalleled advantage in driving innovation and adoption in Asia."

The joint purchase means Dragonfly and Paradigm now control approximately 5.5 percent of the total MKR token supply. Combined, the acquisition makes Dragonfly and Paradigm the second-largest private holder of MKR tokens. VC firm Andreessen Horowitz remains the single largest private holder with the 6 percent stake it acquired in September 2018.

Community Member Spotlight

This week we’re highlighting the great work of Michael Dunworth!

Michael hails from Australia (now based in San Francisco) and is the co-founder and CEO of Wyre - a company that is bridging the gap between the fiat and crypto worlds.

Michael was also previously a mentor at Boost VC.

Keep up the great work Michael!