Weekly Crypto Recap: Traders lost over $250M to Argentina memecoin and more

TGIF and happy Friday Havenauts and Web3 frens! 

Here’s what we have this week:

• Haven1 news
• Regulation and compliance
• DeFi 2.0
• Blockchain infrastructure
• The Haven1 take

Haven1 news

This week has been a busy one, with a focus on RWA after we held an X Spaces session alongside our partners Blockspace and Nomad Fulcrum. 

We also jumped into our private sale on Tokensoft who interviewed our CEO Jeff Owens on X—you can listen to Jeff’s conversation with Tokensoft here.

Our other content this week included:

• How and Why We Are Building hPerps, Haven1’s Perpetual Trading Protocol
• How Blockchains Can Change the Game for RWA: Summarizing Our AMA With Nomad Fulcrum and Blocksquare

Keep an eye on our blog and follow our account on X for the latest news.

Regulation and compliance

‍1. Nigeria Seeks $81.5 Billion from Binance

Nigeria has initiated a lawsuit against Binance, the world's largest cryptocurrency exchange, demanding $79.5 billion for economic damages and $2 billion for back taxes covering two years. This legal action follows Nigeria's government crackdown on the crypto industry last year.

2. Hong Kong Explores Crypto Derivatives and Margin Lending

Hong Kong's Securities and Futures Commission (SFC) is considering the approval of new cryptocurrency products, including derivatives and margin lending, for professional investors. This initiative is part of Hong Kong's strategy to establish itself as a regional digital assets hub, expanding its services to investors and enhancing its regulatory framework.

‍DeFi 2.0

‍1. Argentina-aligned memecoin saw traders lose $251 million

The recent collapse of the $LIBRA memecoin, which had been endorsed by Argentine President Javier Milei, resulted in 86% of traders incurring losses totaling $251 million, according to research by Nansen. The token's value initially surged following Milei's promotion but plummeted shortly after, leading to significant financial damage for many investors.

This sad episode is exactly the type of calamity that we aim to prevent at Haven1. That’s because all smart contracts deployed on the network are required to undergo two audits to prevent scams and rug pulls that cost investors millions of dollars.

2. XRP ETF Launch in Brazil

The price of XRP surged over 5% as investors anticipate the launch of the world's first spot exchange-traded fund (ETF) tracking the cryptocurrency in Brazil. This development marks a significant step for institutional adoption and could influence global regulatory approaches to cryptocurrency investment vehicles. 

3. Mastercard's Foray into Crypto Solutions

Mastercard has reported a 20% earnings increase, partly attributed to a 20% rise in cross-border volume driven by cryptocurrency purchases. The company is enhancing its crypto offerings with products like its crypto debit card and verification system, Crypto Credential, aiming to integrate and secure crypto transactions.

We believe that fintech companies have a major future in crypto. That’s why we are working with the likes of Worldpay and Sygnum Bank, as our network validators, and have other major companies that we will announce in due course.

Blockchain infrastructure

1. Kaito releases token and tokenomics

Kaito, a platform for arranging and sharing information about crypto on X, launched its token with airdrops for users. Kaito also released information on its tokenomics, staking and more.

The Kaito token is an interesting one to watch because it is an example of a centralized company issuing a token. It could be an example for others, however it could require regulators to look into whether it is a security.

The Haven1 take

The collapse of the $LIBRA memecoin after a tweet from Argentina’s president (which was later deleted) shows the current malaise in our industry as traders lost hundreds of millions, all while insiders made millions from the launch.

Crypto levels the playing field by giving anyone on earth the ability to buy into yield-bearing assets, loans, perpetual trading, tokenized assets and much more. The idea that insiders can exploit the desire to make money runs at odds with this theory.

That’s why Haven1’s quest is to develop a safe haven to enable anyone to take advantage of DeFi products and financial services that can fill in the gap that traditional financial institutions do not cover.

We’re excited for the launch of our mainnet soon—stay tuned for more updates!