Author: David C., Bankless; Compiled by Tong Deng, Jinse Finance
Bankless summarized the major events of the past week.
I. WLFI Public Sale to Begin on October 15
The DeFi project World Liberty Financial (WLFI) associated with Donald Trump announced that its public sale will begin on Tuesday, aiming to raise $300 million at a $1.5 billion valuation.
This sale accounts for 20% of the total token supply, and more sales are planned for the future. These tokens are non-transferable for 12 months but can be used for governance immediately. The first phase includes launching a lending platform modeled after Aave on Scroll, with 7% of the token supply allocated to the Aave DAO for governance participation and liquidity provision. Future goals include integrating real-world assets and launching a stablecoin-focused credit card.
II. Market Makers Facing Fraud Allegations
U.S. prosecutors have accused Gotbit, ZM Quant, CLS Global, and MyTrade of market manipulation and wash trading. The action began with the FBI launching a fake token on Ethereum and then having funds trade it. Over $25 million in cryptocurrency has been seized, and four defendants have pleaded guilty.
Related news: Market maker Cumberland DRW was sued by the U.S. Securities and Exchange Commission for operating as an unregistered broker-dealer. Cumberland responded that it has been in continuous communication with the SEC over the past five years and acquired a registered broker-dealer in 2019 to meet its requirements. They believe they are right, so they will not change their business despite the lawsuit.
III. Uniswap Announces Unichain Launch
Last Thursday, Uniswap Labs launched the highly anticipated Unichain, an upcoming L2 built using the OP Stack. Unichain aims to significantly reduce transaction costs and provide near-instant block times, aiming to improve DeFi scalability and address the issue of liquidity fragmentation. Additionally, when the chain launches, UNI will be used to validate the network, and stakers will earn rewards.
IV. Memecoin Controversy Heats Up
With ZachXBT's release of 11 secret wallets belonging to memecoin investor Murad Mahmudov, the memecoin drama has reached a boiling point. ZachXBT argues that this transparency is crucial to prevent Mahmudov from dumping on his followers, while critics say it unnecessarily exposes him to risk.
This controversy echoes the previous debates around influential figures like Ansem, who was criticized for promoting low-cap tokens, many of which crashed significantly in the weeks and months after he gained support. Both cases have sparked a new round of discussions about the ethical issues of using large platforms to promote volatile, low-liquidity assets, with some seeing memecoin promotion as akin to pump-and-dump schemes, while others view it as part of the broader crypto culture.
