Qrafty knows about Telegram's crypto wallet, Goldman Sachs says no more recession and... blockchain fashion?

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

Welcome to Coinqraft – the daily crypto newsletter for busy but curious people who don’t have time for the crypto drama!🌟

🦡   Qrafty has fresh bits from the crypto jungle, so let’s dive in: 📰 🌟

1. Telegram Launches Crypto Wallet

2. GS Sees AI Revolution, Not Recession

3. Paxos Paid $500,000 for a Transaction Fee

Bonus: The Fashion Industry is Moving to Blockchain

PAXOS Did It! Talks About Returning Fee.

In case you missed it, here is Qrafty’s article about someone who paid $500,000 in transaction fees for sending $1,865, a few days ago.

Initially the word in the jungle was that PayPal was the one who didn't just drop the ball, they launched it into another dimension! Close, but not close enough! It was actually Paxos, the entity that launched PayPal’s stablecoin

Now, there’s talk that they might CTRL+Z the whole thing! Well, not really undo the transaction if that’s what you were thinking. It’s just that there are discussions about returning the fee to Paxos.

It seems that there was a bug in ze system over at Paxos, you see… and that’s what caused the error worth 20BTC in fees.

The transaction was initially spotted by a validator called stakefish. The founder, Chun Wang, mentioned in an X post that “I was annoyed and regretted agreeing to refund that 20 BTC.“

Why did he say that, Qrafty?

Well… for at least two reasons:

1. The whole purpose of blockchain is decentralization, non-reversal and immutability. Things that happened on chain shouldn’t be reversed, period. Payment on blockchain tech is the digital version of Las Vegas: what happens on the blockchain, stays on the blockchain! No refundsies!

2. There was a similar fabulous blunder case when BlockFi messed up and sent promo bonus to users as BTC instead of USDT. One of the receiving users got 700 BTC, around $17,5 million at today’s prices! Huge, huge error. Did they get their money back from the validator? No, no they didn’t.

But now, most likely Stakefish was contacted by Paxos, because Stakefish cashed the fee they paid for the transaction, and was asked to return the fee.

So, you see, it’s not done on chain, the transaction isn’t reversed per se. It’s just that the funds are returned to Paxos and the history on chain remains as it is.

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

1. The Need for Privacy on Blockchain is Real

Qrafty always said that blockchain is meant to be implemented in state institutions, in order for the people to check on how public money is spent. And NOT the other way around!

Aside from that, some bright heads realized that the need to have at least a certain level of control over you privacy on a public blockchain is very real. So they got together and wrote a paper about private pools on Ethereum. Even Vitalk co-signed them.

Just to have a better idea, Imagine Ethereum as a giant, see-through piggy bank. Whenever someone puts money in or takes it out, everybody can see who did it and how much they put in or took out.

Privacy pools are like special magic spells for this piggy bank. They make it so that when you put money in or take it out, it's all secret and hidden from everyone else. It's like having an invisible cloak for your money!

So, instead of everyone knowing your business, privacy pools keep your stuff private and safe, okay?

They plan on doing this by using two conceptual frameworks for proving ownership without revealing your whole transaction history.

Through membership proofs (“I prove that my withdrawal comes from one of these deposits”) or exclusion proofs (“I prove that my withdrawal does not come from one of these deposits”). There is other fancy tech they plan on using, but this is the main idea.

2. Even Fashion is Going Blockchain

As if there isn’t enough drama in the crypto world, the domain that invented the concept of corset is blockchaining up! Terrible pun, Qrafty will see himself out…

Alice Delahunt is the CEO of SYKY, a new platform where users can purchase digital and physical fashion items.

This Friday, SYKY is releasing their very first collection. It's got a selection of 40 digital fashion items and a special physical handbag with a digital twin, all thanks to the talented Chinese digital artist Fanrui Sun.

The core belief of the company is that, somehow, fashion will be moving into the digital world as well. So it’s more like a designer’s business hub because they can learn and scale their business. On top of that, a marketplace for digital/physical fashion items. And a community on top of that. That’s not easy to pull off…

Instead of releasing everything at once, their plan is to introduce the items in carefully selected drops. A diverse group of creators, ranging from up-and-coming talents to renowned luxury brands, are behind the designs of these items.

Will there be such a thing as the slim blockchain? Or maybe haute-couture smart contracts?

Omg this is sooo… like… yesterday… Adieu, darling! Remember, style never sleeps, but we occasionally do. Catch you on the catwalk of life!

3. First TradFi Compliant DEX? Sounds Like a Contradiction

Mauve operates under the umbrella of Violet, an infrastructure platform for DeFi focused on compliance and identity. The DEX is among the first to get approval to become a VASP by the Cayman Islands Monetary Authority.

So Violet handles identity and compliance, and Mauve is their Decentralized Exchange. This venture has received support from major players like Coinbase and the Brevan Howard hedge fund. The platform's inception was prompted by the fallout of FTX.

Their clients? For those seeking assurance in terms of compliance and control, this facilitates the existence of secondary markets for on-chain or tokenized real-world assets, such as fixed income securities. So TradFi.

4. Goldman Sachs Sees a Revolution Ahead

The jolly fellows at the giant financial institution don’t see a bubble in AI, but rather a technological evolution and, most importantly, a revolution. An old saying goes that change that happens slowly is called evolution, while change happening fast is called revolution.

It seems that AI has reached the point where it can create a revolution in the economy and evolution of labor and work processes in general. Qrafty agrees, AI is definitely here to stay. It has tremendous value for the future and it will open up horizons that we can’t even imagine now.

But that’s on the medium to long term. On short term, there are some significant problems in the markets and things aren’t looking great. Will AI manage to save us from the short and mid term troubles that governments around the world have gotten themselves into since Covid?

Also, only tech stocks have been performing well lately, with everything else either depressed or modest growth. So, Qrafty’ question is: can AI penetrate and improve the economic output in such a way that that it offsets the fundamentals problems lurking right now in worldwide economies?

Finally, GS focuses on generative AI, which is using Large Language Models (LLM’s) to create content. While GAN’s and LLM’s will definitely grow and add value to the market, Qraftly believe that it is highly unlikely that AI will manage to solve short term problems.

On the contrary, to Qrafty everything points to a credit event which will lead people to demand better management from authorities. And then we will be suddenly presented with the magic, saving option: implement blockchain and AI, while slooowly removing cash.

5. Crowdfunding, Not Securities!

Hester Peirce and Mark Uyeda are two other SEC commissioners who are saying that the Stoned Cats collection is similar to crowdfunding and not securities. This comes in response to yesterdays news about the SEC getting $1 million from the settlement.

Both Pierce and Uyeda didn't see eye to eye on this with Gensler. They both said that the NFT sales in question don't fit the Howey test. They also pointed out that this enforcement action is new ground for the SEC; it's the first time they're dealing with an NFT issuer in this way and recommend treading lightly before enforcing more sanctions against projects.

They mentioned that NFTs aren't limited to just one type of use. They have various purposes depending on the specific NFT project. This could mean that the SEC might have to come up with new ways to figure out how securities laws should be applied to different types of offers and sales.

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and would like to regularly get Qrafty’s letters!

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Qrafty’s thought of the day

Existence is the Universe's way of asking, 'Do you get the joke?

Other stories

European Central Banks raises interest rates to 4%

It's a pretty big deal. They did drop a hint that this might be the end of their year-long fight against inflation, all because the euro zone economy is going through a rough patch. They're thinking that inflation will come down more slowly towards their 2% goal over the next couple of years.

Some Juice About Ripple buying Fortress Trust

A vendor of Fortress Trust built a login interface for a few select customers of Fortress Trust. That vendor’s name is Retool. It seems that there was a phishing attack during which allowed hackers to login via Retool’s interface to one of Fortress Trust’s accounts and steal $15 million. Retool mentioned that all the other customers were notified and that the attacker was targeting a specific type of customers, who were involved with crypto

Coinbase integrates Lightning Network

America's biggest crypto exchange is all hands on deck, working to bring Lightning Network into the mix. This move comes a couple of months after Binance hopped on the layer-2 payment protocol train. Lightning Network is like Bitcoin's turbo booster – it helps folks do transactions speedier and at a lower cost by doing some nifty off-chain magic!

Finally, the crypto wallet for Telegram

The official announcement has been made and now you can buy, sell, store or add funds via credit card to your Telegram crypto wallet. Telegram, over the years, has expanded and evolved into a massive ecosystem. Telegram is a really cool messaging platform that syncs across your devices. It has grown slowly and surely over the years and now it’s become a huge app. It’s like the mIRC for the Snapchat generation.

Telegram boasts with 800 million monthly users. This wallet s is definitely a huge event for crypto adoption worldwide. It’s not going to happen immediately, but a lot of people will be exposed to crypto through this. And Telegram knows UX, so it’s going to look and feel easy interacting with crypto.

Australia wants to remove cash?

What’s going on in the land down under? Before COVID, Qrafty thought that Canada and Australia were two beautifully managed countries. But something happened after 2020 that sparked a very strange direction. Today, it’s about Australia's fifth-largest bank announcing it will scrap cash and cheque in all its branches.

Singapore bans Thee Arrows Founders

The founders of Three Arrows Capital are facing a hefty nine-year trading ban in Singapore. The Monetary Authority of Singapore (MAS) has barred Su Zhu and Kyle Davies from holding positions involving management, direction, or ownership in any registered capital markets services firm in the country.

Market Whispers

Leaving aside the choppy candles during the day, Bitcoin is climbing up, slowly but surely.

The OG coin is fighting to S/R flip 26600$ into support, but so far so good. Looks like it really wants to push higher. We'll see if the bears will manage to stop it with the shorts or they get squeezed out. Qrafty believes in you, Bitcoin! You can do it! At least to $27,500 you can… 🤪

Qrafty ends channeling his inner trader.

Today is NATIONAL FOOD IS MEDICINE DAY!

Let food be thy medicine and medicine be thy food! Qrafty always wanted to say that!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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