🆕 Sony Is Building An Ethereum L2

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Sony announced it will soon launch a testnet for its Ethereum Layer 2, Soneium. The project is a collaboration between Sony’s new web3 division, Sony Block Solutions Labs, and Startale Labs, the development team behind Astar.

Bitcoin transaction fees surged amid Babylon commencing its mainnet rollout. The Bitcoin staking protocol’s 1,000 BTC deposit ceiling maxed out after less than four hours despite limiting each transaction to 0.05 BTC.

Tron’s USDD stablecoin is again at the center of controversy after 12,000 BTC was withdrawn from its reserves. With the token now 98% backed by TRX, onlookers are comparing USDD to Terra’s failed UST stablecoin.

Plus, Magic Eden unveils plans to launch a native token, and the U.S. Federal Reserve chairman says interest rate cuts are coming soon.

✍️ In today’s newsletter:

Sony teams up with Astar on Layer 2
Babylon’s mainnet rollout spikes Bitcoin fees
12,000 BTC withdrawn from USDD’s reserves
Magic Eden announces ME token
Federal Reserve chairman says rate cuts are imminent

🎬WATCH

Check out our podcast with Yat Siu, the co-founder of gaming giant Animoca Brands, who shares his vision of bringing true ownership to the masses. Watch our interview with Chainlink co-founder, Sergey Nazarov, to learn why he is bullish on tokenized real-world assets. Plus, catch up on our discussion with Ugur Mersin, the strategy lead at API3, the find out about the project’s decentralized API infrastructure 👀

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👀 Sony Unveils Web3 Division and Layer 2 Network

Sony is making its long-awaited move into crypto with the launch of its new web3 division, Sony Block Solutions Labs. Sony SBL is working alongside Startale Labs, the team behind Astar, on an Ethereum Layer 2 called Soneium. Sony SBL is also integrating support for Circle, Chainlink, Alchemy, and The Graph on the L2.

⬆️ Bitcoin Transaction Fees Spike 10x Amid Babylon’s Mainnet Launch

Bitcoin transaction fees surged amid the mainnet launch of Babylon, a Bitcoin staking protocol securing Proof of Stake (PoS) networks. Babylon completed the first phase of its rollout, with plans to launch its own PoS network and follow up with the launch of a shared security marketplace for PoS services.

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🫨 Tron Community Shaken By 12,000 BTC Withdrawal From USDD Reserves

The Tron community is disgruntled with an abrupt withdrawal of 12,000 BTC ($729 million) from the reserves backing the USDD stablecoin. While USDD still boasts a 200% collateralization ratio, onlookers are comparing the token to Terra’s failed UST stablecoin due to 98% of USDD’s backing now comprising TRX.

🪙 Magic Eden Announces Native $ME Token

Magic Eden, a popular NFT marketplace hosting a dominant market share over Ordinals and Runes trading, revealed it will soon launch a native token. ME will function as Magic Eden’s ecosystem token and incentivize adoption as the project pushes into the mobile consumer dApp space.

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✂️ Bitcoin and Ethereum Rally as Fed Chair Hints at Imminent Rate Cuts

Digital assets rallied in anticipation of Federal Reserve chairman Jerome Powell’s speech at the central bank’s annual gathering at Jackson Hole, Wyoming. Powell said interest rate reductions are on the horizon, stating the “timing and pace of rate cuts will depend on incoming data.”

🌍 ELSEWHERE

Crypto Promoter and Failed Politician Michelle Bond Accused of Illegally Taking FTX Cash (CoinDesk)
Coinbase Expands Circle’s EURC Reach With Solana Integration (Coin Gape)
Russia to launch crypto exchanges for global trade in Moscow and St Petersburg (CryptoSlate)
Drift’s New Predictions Market Not Trying to ‘Vampire Attack’ Polymarket, Says Co-Founder (Unchained)