The Synthetix DAO has added some new, perhaps surprising voices to its governance.
Today the synthetic asset protocol announced a $12 million dollar fundraise led by venture capital firms Paradigm, Coinbase Ventures, and IOSG. The funds purchased SNX tokens directly from the DAO treasury, and “will contribute where possible by providing liquidity in the form of SNX collateral, and also participate in its rapidly evolving community governance system,” the announcement reads.
“We’re excited about supporting the synthetixDAO as it builds the leading synthetic asset platform,” said Paradigm investment partner Arjun Balaji. “Synthetix has one of the best communities in crypto and we’re glad to be a part of it.”
The investment is notable for being among the first instances of funds investing directly with and through a project governed by a DAO. How VCs interact with DAO-governed protocols has been a hot topic of late, with some arguing that VCs shouldn’t get preferential treatment, while others say that VCs are welcome, like any entity, to participate in an open ecosystem.
A recent Tweet thread from Hayden Adams, the founder of Uniswap, made the case for working with VCs — so long as they’re the right ones.
I've seen a lot of negativity and propaganda so I think it's worth sharing my personal experience.
— hayden.eth 🦄 (@haydenzadams) February 12, 2021
Jordan Momtazi, a core contributor to Synthetix DAO (and the former Synthetix COO pre governance decentralization), agrees that it’s all about which funds a protocol is working with.
“Many VC’s don’t add much value. The delta between quality VC’s and the rest is quite large,” he said in a statement to Cointelegraph.
Each of the three VCs that joined in on the $12 million raise are bringing additional value to the table that an individual investor might not be able to muster, Momtazi said.
“Paradigm has been helping the protocol recruit talent through their in house HR and network. They’ve also been actively helping think through our v3 planning. Providing insights into approaches around our re-architecture,” Momtazi said. “Coinbase ventures has helped with connectivity across many functions, both internally and externally.”
IOSG, meanwhile, is helping to spearhead Synthetix’s push into China by assisting with the hiring of a China regional lead, as well as with “in person roadshows and creating educational content in Chinese.”
The raise comes during an especially productive period for Synthetix. The team recently announced the launch of synthetic Tesla stock, and SNX was among the tokens that filings show may be the next to be listed as a Grayscale investment trust.
It’s momentum Momtazi hopes the latest members of the community can help carry forth.
“Having the sharpest minds applied to the hardest problems is part of the community’s success and we look forward to working closely with these new stakeholders.”
Grayscale’s Top Executive Joins Robinhood as New Chief Compliance Officer
Robinhood hires a new CCO, the chief compliance officer of Grayscale
Robinhood brokerage app has welcomed Benjamin Melnicki as a new Chief Compliance Officer, who is also the holder of the same position at Grayscale Investments. He joined Grayscale in early January this year.
At the moment, Robinhood’s cryptocurrency arm is facing scrutiny from financial regulators. Last year, Robinhood was a target of an investigation connected to anti money laundering and certain cybersecurity problems experiences by its crypto division.
*Robinhood's Crypto Unit Hires New Chief Compliance Officer From Grayscale
*Benjamin Melnicki's Appointment Follows Scott Hershorin's Departure in June
*Appointment Comes as Robinhood's Crypto Unit Faces Regulatory Scrutiny$HOOD— *Walter Bloomberg (@DeItaone) September 24, 2021
As reported by U.Today previously, later this year, the brokerage firm plans to roll out cryptocurrency wallets for its users. The trials of wallets will kick off in October and will allow customers to deposit and withdraw cryptocurrencies to addresses beyond Robinhood seamlessly.
Average Aussie crypto portfolio grew 258% in FY 20-21, survey reveals
The average portfolio size on Australian cryptocurrency exchange BTC Markets has grown from $577.65 (795.5 Australian dollars) to $2,069.16 (2849.5 AUD) in the financial year 2021, signaling a 258.2% increase in portfolio holdings, according to exchange data compiled by Statista on a recent BTC Markets survey.
Data on the survey shows that the average portfolio size of female and male investors in fiscal 20-21 on BTC Markets was $1,924.30 (2,650 AUD) and $2,214.03 (3,049 AUD), respectively. However, in 2020, the average portfolio size of female Aussie investors exceeded male investors slightly.
Transaction data on the exchange also showed a pattern of growing investment demand with aging. Considering the data provided by BTC Market on Australia’s average initial investment, investors above 65 years old have invested roughly $3,158.03, the highest ofall demographics.
Following an incremental reduction across the various age groups, the youngest cryptocurrency traders, ranging from 18 to 24 years, tend to make comparatively small investments, standing at $792.96 on average. While older Australian crypto investors outweigh the new generation in initial investment, the younger crowd shows comparatively more activity in terms of daily trades.
Resonating the findings above, a September report from financial comparison website Finder shows that one in six Australians own cryptocurrencies, amounting to $8 billion in total investment. The report suggests that, like many other users in advanced industrialized countries, Australians were increasingly viewing cryptocurrencies as a new asset class.
According to Cointelegraph’s report on the matter, Bitcoin (BTC) is the most popular cryptocurrency for the Australian crypto market held by 9% of investors. Other popular investments include Ether (ETH), Dogecoin (DOGE) and Bitcoin Cash (BCH). The report showed that, despite the growth in crypto investments, a significant barrier to entry for Australians is the difficulty in understanding crypto and the risks related to volatility.
Switzerland to Impose Anti-Money Laundering Rules on Crypto Providers: Report
FINMA requires all cryptocurrency providers to step up their game and monitor whether criminals use digital assets in illicit transactions.
The Swiss Financial Market Supervisory Authority – FINMA – would reportedly require local digital asset providers to take additional steps in preventing criminals from employing cryptocurrencies. The watchdog would also turn its sight towards bitcoin ATMs as it believes that drug dealers often use these machines.
FINMA Targets Criminals Operating with Crypto
According to a Finews report, Switzerland’s financial regulator – the Swiss Financial Market Supervisory Authority or simply FINMA – would closely supervise local crypto providers as an attempt to clamp down on money-laundering transactions.
Swiss platforms and brokers dealing with digital assets would have to enhance their monitoring efforts and observe if bad actors employ cryptocurrencies. The Bern-based watchdog believes the initiative is “urgently necessary,” stressing that criminals use the asset class even to fund terrorism acts.
FINMA also turned its attention towards bitcoin automated teller machines. According to the regulator, drug dealers frequently use such ATMs as payment systems. It is worth noting that Switzerland is a relatively small nation, but its 130 Bitcoin automated teller machines place it in the sixth position among the countries with the most stations.
FINMA also passed an anti-money laundering provision according to which it lowered the threshold for unidentified crypto purchases from 5,000 Swiss Francs (CHF) to 1,000 CHF (around $1,080). Or, in other words, all financial providers dealing with digital assets have to collect data on anyone initiating transactions that exceed this amount.
UBS: Crypto Regulations Could Spell Trouble
One of the leading banks in Switzerland – UBS – recently shared its views on the hot topic of digital asset regulations as it indicated that implementing certain rules might negatively impact the market.
Furthermore, the bank warned its customers that regulatory crackdowns can pop the “bubble-like” crypto markets. The Swiss bank also labeled the asset class as “speculative” alerting that it could be dangerous for professional investors:
“While we can’t rule out future price gains in cryptos, we see this as a speculative market that poses significant risks to professional investors.”
On another note, though, when the cryptocurrency market was booming at the beginning of May, UBS demonstrated a different attitude. Back then, it intended to enable its wealthy customers to receive digital asset exposure later in 2021 through third-party vehicles.
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