Decentralized Diaries for the Week of 4/22/24


The crypto industry is no longer a touch-and-go affair, with laws and rules changing the game’s nature. 

That said, inter-country collaborations are (very much) alive alongside the (formerly) wild ideas that have made the space memorable to all.

In the news:

  • The IRS unveiled its draft crypto tax form;
  • The Senate is looking closely at the industry;
  • SBF may betray his celeb friends;
  • Jamie Dimon wants to eat his Bitcoin cake and have it;
  • TikTok’s parent company is looking for other things to do;
  • Flash loan attacks are back again;
  • Plus, much more!

As always, these are your decentralized diaries! 

Bitcoin Remains Marginal at $66k

Despite the halving event, Bitcoin tries to find support levels at $66,030.78 from a $60,923.66 low.

That could change, however, with increased reduced token supply per mining rewards and increased adoption.

Also, a dominance of 53.7% (according to Coinmarketcap) shows improved odds for the industry favorite (as of 4/22/24).

The altcoins are also looking good to go.

Ethereum (ETH) is (currently) at $3,183.45, Solana (SOL) at $153.65, Avalanche (AVAX) at $38.97, Polkadot (DOT) at $7.45 and Chainlink (LINK) at $15.34.

The IRS Unveiled its Draft Crypto Tax Form

Ahead of rule finalization per crypto taxes for 2025, the IRS drafted the 1099-DA form. The firm contains the usual tax details, with ongoing changes for the final version.

Two Senators Unveiled a Bipartisan Bill to Ban Unbacked Algorithmic Stablecoins

On Capitol Hill, Sen. Kirsten Gillibrand (D-NY) and Sen. Cynthia Lummis (R-WY) introduced a bill to prohibit unbacked algorithmic stablecoins.

The Lummis-Gillibrand Payment Stablecoin Act creates rules for stablecoins, requiring that all stablecoins be fully backed 1:1 to the greenback with compliance provisions.

The UK will Roll Out Stablecoin Legislation in July

In similar news, on April 15 at the BIS Global Summit on Innovative Finance, Bim Afolami, the economic Secretary of the United Kingdom, hinted at stablecoin legislation plans for July.

Afolami indicated that the (planned) legislation will (be unveiled) between June and July.

Polkadot Revealed the Replacement for Relaychains

In Dubai, UAE, Gavin Wood, co-founder of the Polkadot blockchain, introduced the JAM Gray Paper.

The JAM Protocol is a successor to the Relay Chain, the primary interoperability backbone of the Polkadot network.

In related news, Chainalysis submitted a governance proposal that, if approved, could lead to a $10 million token monitoring and reporting partnership.

Tether Launched the USDT on the TON Network

The USDT token is (now) available on TON, the blockchain for the Telegram app. At the Token 2049 in Dubai, the CEOs of Tether and Telegram (jointly) made the announcement.

The duo’s aim in launching within the Telegram ecosystem is to create easy usage and trading experiences for retail users.

The Woo X Exchange Launched the World’s First Tokenized Treasuries for Retail

Woo X cryptocurrency exchange revealed the launch of tokenized US Treasury Bills on its retail platform. The exchange also introduced RWA Earn Vaults, which allow USDC token holders to earn yields.

RFK Jr. Unveiled US Budget Blockchain Plans

Independent presidential hopeful RFK Jr. revealed his intention to make America’s budget on a blockchain.

The candidate proposed the measure at a Michigan rally on April 21, stating it would ensure transparency and eliminate corruption.

SBF Could Double-Cross His Celebrity Friends

Fate could be kind to Sam Bankman-Fried in an ongoing civil case involving the former FTX CEO and former investors.

According to an April 19 Bloomberg report, the terms of a proposed settlement could involve SBF spilling the beans on celebrity promoters in the ongoing $1.3 million lawsuit in exchange for the plaintiffs dropping charges.

In related news, FTX’s next sale of its Solana (SOL) tokens could take place as an auction.

Figure CEO Mike Cagney indicated the likelihood of that event occurring in a post on his X handle.

The SEC Tightened its Case Against Justin Sun

In its ongoing case against Justin Sun, the SEC tightened the screws a little bit more, with Justin’s travels within the United States as proof of jurisdiction.

The SEC argued that Sun’s 480 days in America between 2017 and 2019 across several cities serve as a counterargument to his jurisdictional opposition.

Jamie Dimon-Bitcoin is a Ponzi Scheme

Despite JP Morgan’s involvement with Bitcoin ETFs, Jamie Dimon reiterated his anti-cryptocurrency stance in a Bloomberg interview aired on April 17.

Dimon said that there was no “hope” for cryptocurrencies. Additionally, he indicated his (personal) preference for smart contract blockchains, highlighting their “utility” and ability to “do something.”

Hedgey Finance Lost $44.5 Million in a Flash Loan Attack to Hackers

Flash loan exploits are back again. This time, with a bang.

Hedgey Finance, a crypto infrastructure firm, lost $44.5 million (approximately) on the Arbitrum Ethereum Layer-1 chain and the Binance Smart Chain (BSC).

The crypto firm indicated that investigations are (currently) ongoing, but several fraudulent handles have emerged on the X platform, attempting to defraud users via false refund requests and more.

TikTok‘s Mother Firm Explored its Web3 Options via a Partnership

Amid the ongoing ban/unban drama in Washington, D.C., ByteDance, the firm behind the TikTok video platform, partnered with Palo Alto, California-based Mysten Labs behind the Sui Layer-1 blockchain.

The collaboration is via BytePlus, ByteDance’s enterprise division, and offers integrations for the duo.

For BytePlus, the integrations provide a window for exploring the Web 3 space while Sui gains the data analytics, processing, and warehousing capabilities of the ByteDance ecosystem.