ALBAWABA - In crypto news recap, UAE cements its position as a Bitcoin mining destination, stablecoin issuers Circle and Tether freeze $65 million in assets linked to Multichain exploit, Twitter Payments obtains money transmitter licenses in the US, and FTX-Taylor Swift sponsorship reportedly called off by former CEO. All these exciting developments continue to shape the crypto landscape, so let's dive in!
United Arab Emirates Emerges as a Growing Bitcoin Mining Destination in the Middle East
The United Arab Emirates (UAE) is steadily establishing itself as a prominent Bitcoin mining destination in the Middle East, garnering attention from crypto-focused companies. With more than 30 free trade zones and a growing contribution to the Bitcoin mining hash rate, the UAE is positioning itself as a pro-Web3 hub for such enterprises.
The UAE's mining endeavors took off when Bitcoin miner Marathon Digital partnered with Zero Two, the digital asset arm of Abu Dhabi's sovereign wealth fund, in May. This joint venture led to the establishment of two mining sites in Abu Dhabi, boasting a combined capacity of 250 megawatts (MW).
Abu Dhabi has emerged as a thriving center for various types of crypto mining activities within the UAE, thanks to its energy efficiency and status as the country's trade hub.
According to data from Hashrate Index, the UAE currently possesses a combined Bitcoin mining capacity of around 400 MW, accounting for approximately 4% of Bitcoin's global hash rate. While countries like the United States, China, Russia, and Kazakhstan currently hold the top positions in terms of the largest share of Bitcoin's global hash rate, the UAE has the potential to climb up the ladder gradually due to its available resources.
Circle and Tether Freeze $65 Million in Assets Amid Multichain Exploit Suspicions
Circle and Tether, the issuers of stablecoins, have taken action to freeze assets worth over $65 million linked to a suspected exploit of the cross-chain router protocol Multichain. This action was prompted by significant unexplained outflows from the Multichain MPC bridge on July 6.
0xScope, a knowledge graph protocol, has identified three addresses that received at least $63.2 million in USD Coin from Multichain, and these addresses have now been frozen. Additionally, the Fantom Foundation reported that two addresses flagged as "Multichain Suspicious Addresses" by Etherscan had over $2.5 million in Tether USDT frozen.
On July 6, a total of more than $125 million worth of cryptocurrencies were withdrawn from various wallets, impacting the Fantom bridge of Multichain, as well as the ecosystems of Dogechain, Moonriver, Kava, and Conflux. The reason behind these abnormal asset transfers remains unknown.
Twitter Payments Gains Money Transmitter Licenses, Aims for Nationwide Rollout Amid Crypto-Tech Community Collaboration and Challenges
This week marked a significant milestone for Twitter as its subsidiary, Twitter Payments, secured its first money transmitter licenses in Michigan, New Hampshire, and Missouri, signaling a major advancement in the company's plans to introduce a payment platform. With a focus on cryptocurrency, Twitter aims to offer transfer services across all 50 U.S. states. Although further approvals are still pending and no specific timeline has been disclosed.
Like any business, Twitter is exploring new revenue streams leveraging its extensive user base. During a Twitter Space event in 2022, Elon Musk expressed his vision of connecting bank accounts to social media profiles, incorporating features like debit cards and money transfers. This objective bears resemblance to the now-defunct Diem, a global payments project by Meta, Facebook's parent company.
To achieve better results than Meta's project, Twitter heavily relies on its crypto-tech community. However, there are challenges, including disagreements between Musk and Crypto Twitter. Recently, Twitter limited the reach of its content due to "extreme levels of data scraping and system manipulation," which dealt a blow to the crypto ecosystem. Twitter serves as a vital platform for sharing information and reaching new audiences within the crypto community.
Musk addressed the situation on the platform, stating, "The reason I set a 'View Limit' is because we are all Twitter addicts and need to go outside." This move presents a potential double-edged sword for Twitter's payment plans, as it navigates collaboration and challenges within the crypto space.
Former FTX CEO Sam Bankman-Fried Reportedly Behind Cancellation of Taylor Swift Sponsorship Deal
Contrary to earlier reports, it has been revealed that the decision to call off the sponsorship deal between defunct cryptocurrency exchange FTX and Taylor Swift was made by former CEO Sam Bankman-Fried (SBF), rather than the singer-songwriter herself.
According to a report from The New York Times on July 6, three individuals familiar with the sponsorship deal disclosed that Bankman-Fried was the one responsible for terminating the agreement, which was worth approximately $100 million, prior to FTX filing for bankruptcy. Swift's team had reportedly signed the agreement after more than six months of negotiations but was left frustrated and disappointed when SBF decided to pull the plug.
This report contradicts the narrative presented by several media outlets, which had suggested that Swift's team had conducted thorough due diligence before withdrawing from the FTX deal. As a result of the exchange's collapse, celebrities such as football star Tom Brady, NBA point guard Stephen Curry, and other high-profile individuals have faced legal scrutiny, with some being named in class-action lawsuits filed by disgruntled FTX investors.
