The Defiant

⛷️Crypto Markets Pull Back After ETF Euphoria

The Defiant

DeFi Daily

Together with

Together with

GM Defiers!

The crypto markets are finally showing signs of slowing down after rallying for two weeks on spot Bitcoin hype and geopolitical worries. The combined crypto market cap is down 4% in the past 24 hours with many DeFi assets among those hardest hit.

Sam Bankman-Fried was convicted on all seven criminal counts brought against him. The FTX co-founder and former CEO will now face sentencing of up to 115 years.

The Aragon Association announced it is shutting down and distributing $115M worth of treasury assets to ANT holders. Arangon's newly formed "Product Council" will take control of Aragon’s IP, infrastructure, and operational runway moving forward.

PayPal announced it received a subpoena from the U.S. Securities and Exchange Commission regarding its PYUSD stablecoin. PayPal said it is cooperating with all document requests.

And Immutable announced that a dozen projects have already committed to building web3 games on its forthcoming Polygon-powered Layer 2, Immutable zkEVM.

✍️ In today’s newsletter:

  • Crypto markets retrace following extended rally
  • Sam Bankman-Fried to face up to 115 years in prison
  • Aragon Association to shut down and distribute treasury
  • PayPal cops SEC subpoena over stablecoin
  • Disney and Alibaba-backed game onboards to Immutable zkEVM

🙏Sponsored

📈 Markets in last 24 hrs:

TickerValue24h
BTC$34,672 0.5%
ETH$1,817 0.4%
S&P 500$4,238 1.05%
GOLD$1,979 -0.32%
Arch WEB30.87pts -0.79%
FINANCE0.82pts -0.98%
INFRA0.98pts -0.34%
CONSUMER0.96pts -1.33%
Arch WEB3

Learn more about Arch Indices here.

🎬 WATCH

Check out our coverage and interviews from the xDay Conference in Romania. And watch our podcast with Rocket Pool General Manager, Darren Langley, to learn about the liquid staking landscape.


PHISHING SCAM WARNING FOR READERS

The Defiant is not planning on releasing a token soon!

On Tuesday Oct 3 a group of DeFi users received phishing emails that pretended to come from a group of companies and projects in the ecosystem, including The Defiant.

Be mindful that the correct domain for The Defiant is THEDEFIANT.IO and NEVER click on any links coming from other domains. This particular email promoted a Defiant token – to be clear, we do not have a token nor are planning to launch one in the near future, and we urge our community and subscribers to NEVER click on links coming from outside our official communication channels, which are:

https://thedefiant.io/

https://twitter.com/DefiantNews

https://discord.com/invite/3SdRdEs5ag

https://www.youtube.com/TheDefiant

Stay safe out there Defiers!


THANKING OUR NEWSLETTER SPONSORS

| Newsletter continues below |

DeFi, done right.

Linea’s DeFi Voyage will bring everyone—from web3 newcomers to seasoned investors—an intuitive, immersive, and educational DeFi experience.

6 weeks. 10 waves. 10 core tasks. Choose from over 60 DeFi dapps to engage with. Collect Linea Voyage XP.

Coming on November 7th. Be ready.

Cove is the first automated ERC-4626 yield optimizer built on Yearn and optimized by Gauntlet. Cove brings simplicity, high-yields, and accessibility to degens and those new to the space. Join the Cove community today to redefine the way the world approaches finance.

Clipper is built for liquidity providers. It is designed to deliver above-market returns for holding ETH, BTC, and stables while eliminating impermanent loss. Deposit today and start earning.


Markets

Crypto Rally Fizzles As ETF Euphoria Fades

TLDR The crypto markets are pulling back after an extended rally, with the combined digital asset market cap shedding 4% in 24 hours. The news followed two weeks of consistent upward momentum fueled by bullish expectations a spot Bitcoin ETF may soon receive regulatory approval.

SO WHAT The recent rally reversed bearish sentiment surrounding the crypto markets, with many analysts tipping digital assets could sink to new year-to-date lows back in September. However, many digital assets appear to have recently posted local tops, suggesting a significant pull-back could be around the corner.

READ MORE: Crypto Rally Fizzles As ETF Euphoria Fades


Regulation

Sam Bankman-Fried Found Guilty On All Counts: Latest News & Hot Takes

TLDR Sam Bankman-Fried, the disgraced co-founder and former CEO, was convicted on all seven charges levied against him. Bankman-Fried will now face up to 115 years in prison.

SO WHAT The news moves the crypto sector closer to closure concerning the largest fraud in the sector's history. More than $7B in customer assets was missing at the time of FTX's insolvency, however, significant assets have since been retrieved by its bankruptcy estate.

Read More: Sam Bankman-Fried Found Guilty On All Counts: Latest News & Hot Takes


SPONSORED POST

Smart Contracts Now Live on Stellar Testnet

On Wednesday, September 20 at 1500 UTC, the Stellar Testnet successfully upgraded to Protocol 20, which introduces support for Soroban smart contracts. Developers worldwide can now access Soroban’s Turing-complete functionality to deploy and invoke DeFi protocols in a common, widely used sandbox environment.

The Stellar network has long been known for supporting connections to real-world financial infrastructure. With the Protocol 20 upgrade, the access those connections provide will combine with the innovation potential created by smart contracts to allow for something unique: cash to DeFi.

Many Stellar ecosystem projects are already poised to take advantage of the cash-to-DeFi opportunity.

In a demo featured at Meridian, the annual Stellar conference, Beans, a user-friendly, consumer-facing Stellar network wallet, showed what it might look like to integrate with Blend, a Soroban-built lending protocol, to allow a user in Malawi to cash into a USDC balance via Moneygram and, in one click, deposit that balance into an interest-generating account.

These types of interactions have the potential to open access to the next generation of financial infrastructure.

The Testnet upgrade is the last step before validators vote on a Mainnet upgrade, and if that vote goes through, the upgrade is immediate. The Stellar network will likely have smart contracts before the end of the year.


DeFi

Aragon Association Dissolves and Returns $115M to ANT Holders

TLDR The Aragon Association has relinquished to the will of its community and announced it will shut down. Holders of its native ANT token can redeem their assets for $115M worth of ETH, comprising 87% of the project's non-ANT holdings.

SO WHAT Aragon initially resisted calls for its association to shut down after investors began accumulating large sums of its tokens to purportedly stage a governance attack. The newly formed Product Council will take control of Aragon's IP, infrastructure, and operational runway moving forward.

READ MORE: Aragon Association Dissolves and Returns $115M to ANT Holders


Regulation

PayPal Subpoenaed by SEC Over Stablecoin: Latest News & Hot Takes

TLDR The U.S. Securities and Exchange Commission subpoenad PayPal, the payments giant, requesting information pertaining to its PYUSD stablecoin. PayPal said it is complying with all of the SEC's requests.

SO WHAT PayPal entered the stablecoin sector with PYUSD's surprise launch in August. The token has since amassed a $158.7M market cap, ranking it as the 15th-largest stablecoin.

Read More: PayPal Subpoenaed by SEC Over Stablecoin: Latest News & Hot Takes


GameFi

Disney And Square-Backed Games Tap Immutable And Polygon For Ethereum Scaling

TLDR Immutable announced that a dozen web3 game developers have committed to building on its forthcoming Layer 2 rollup, Immutable zkEVM, including titles backed by Disney China and working with Square Enix. Immutable zkEVM is expected to launch on mainnet in January and will focus on hosting web3 games.

SO WHAT The announcement comes as the GameFi sector is staging a comeback, with four of the top ten GameFi assets gaining more 9% in the past seven days, and three others rallying around 5%. However, many GameFi assets remain down more than 90% from their all-time highs.

Read More: Disney And Square-Backed Games Tap Immutable And Polygon For Ethereum Scaling


🔎 OUR REPORTERS ARE WATCHING


🌍 ELSEWHERE

  • US authorities seize $54 million in crypto from darknet narcotics scheme (The Block)
  • Abu Dhabi Enacts DLT Framework for DAOs, Web3, TradFi Firms (CoinDesk)
  • Coinbase’s Loss Narrows While Revenue Rises More Than Forecast (Bloomberg)