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Burn BNB Burn, CBDCs & Chainalysis

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Satoshi&Co Daily Crypto Newsletter

October 17 · Issue #241 · View online
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Binance Token Burn
To reduce velocity, and increase scarcity of its BNB coin, Binance periodically performs a token burn. This process basically involves taking out 20% of all profits from operations and extinguishing an amount of BNB equivalent to this number. 
Binance performed the quarterly token burn for the ninth quarter yesterday. The amount of BNB burned showed a strong q/q growth of 155%, resulting in over 2 million BNB tokens being burned at the end of last quarter.  
The strong growth was likely driven by the launch of new products and initiatives such as margin trading, lending and most importantly the Binance launchpad. Binance launchpad created a FOMO around IEO tokens, albeit one that was far more ephemeral than the ICO craziness.
As Binance uses 20% of its trading profits to burn BNB tokens, the implied profits for the previous quarter stand at $180 million for the quarter, the second highest ever.   
The Case For A Digital Dollar
There is a realistic possibility that the US dollar could be threatened by the advent of digital currencies, according to former CFTC chairman Christopher Giancarlo. 
Venezuela has already launched a blockchain-based petro token to evade sanctions and rumors are rife that China is already planning to launch a crypto-version of Renminbi. We have previously covered Iran’s efforts at CBDCs here as well as this piece on how CBDCs could be systematically important.
A digital dollar could be the solution to stave off pressures from a digital-yuan or digital tokens backed by gold. 
A government-sanctioned blockchain protocol, created and maintained by an independent nongovernmental group but administered by banks and other trusted payment organizations could be one approach. Cash brought into the system would be exchanged for digital U.S. dollars on a blockchain, with the cash lodged in special escrow accounts maintained by the Federal Reserve.
The launch of a digital dollar can however cut both ways for bitcoin and cryptocurrencies. It can be a sign that legitimizes the perceived invaluable benefits of blockchain technology and bitcoin. On the other hand, the US could decide to outlaw all other digital non-sovereign currencies. This would be short sighted, as the infra for trading, lending, staking, storing etc for digital currencies is best left to the private sector.
Chainalysis Helps DoJ Shut Down A Child Pornography Site
Chainalysis played a pivotal role in shutting down the world’s largest pornography site. Chainalysis’ blockchain analytical tools helped DoJ investigators identify the perpetrators by following the trail of blockchain transactions linking the website to various centralized exchanges.
Based on information provided by Chainalysis, investigators reached out to centralized exchanges asking for KYC’ed information pertaining to the suspected accounts.  When law enforcement shut down the site, they seized over 8 terabytes of child pornography, making it one of the largest siezures of its kind. The site had 1.3 million Bitcoin addresses registered. Between 2015 and 2018, the site received nearly $353,000 worth of Bitcoin across thousands of individual transactions. 
Interestingly, privacy-focused digital currency XMR has been on the rise since this news broke out, perhaps in response to the possibility of complete deanonymization with bitcoin. 
Web of digital transactions linked to the site. Source: Chainalysis
Web of digital transactions linked to the site. Source: Chainalysis
Meanwhile in Crypto Wonderland....
“Bermuda To Accept Taxes In USDC”
Residents of Bermuda can now pay their taxes in cryptocurrency. The Government of Bermuda announced Wednesday it will accept payments in USD Coin (USDC) “for taxes, fees and other government services,” according to a press release by crypto finance startup Circle. USDC is a stablecoin pegged to the U.S. dollar launched a year ago by cryptocurrency exchange Coinbase and Circle. To date, over $1 billion worth of USDC has been issued between the two startups. In what looks to be the first for a sovereign nation, Bermuda will be supporting USDC as an acceptable tax payment for some 60,000 residents. What’s more, support for other “decentralized finance protocols and services” outside of USDC are also in the works as part of a broader initiative to integrate cryptocurrencies into official government operations, the press release stated.
“Electroneum To Launch In Turkey”
Electroneum, the startup which enables users to “mine" its cryptocurrency on their smartphones, is launching new services in Turkey—the inflation-strapped country is currently number one in crypto adoption, worldwide, with 20 percent of the population claiming to own cryptocurrencies. The UK-based platform has has inked deals with all three of the country’s telecom operators, to enable users to pay for airtime with its cryptocurrency, ETN, its CEO Richard Ells told Decrypt today. The service launched in Turkey last month and is also available in South Africa and Brazil. Ells said that Electroneum is using mobile top ups to combat the negative attitude that prevails to cryptocurrencies.
“Nasdaq Lists AI-powered Crypto Index”
The world’s second-largest stock exchange, Nasdaq, has listed the AI-powered CIX100 index created by crypto data provider Cryptoindex. The news was revealed in a press release shared with Cointelegraph on Oct. 15. CIX100 is a crypto market benchmark that analyzes uses a neural network algorithm to analyze data for the top 100 cryptocurrencies, taking into account over 200 factors. Reportedly designed to exclude coins with fake volumes and rankings, the “human-free” tool targets both industry newcomers and professional investors. According to the press release, the data is derived from the nine largest cryptocurrency exchanges globally and factors in the results of millions of trades alongside news releases and social media data.
“Crypto Adoption In Fortnite”
Fortnite is one of the fastest growing esports around, and Epic Games has facilitated its growth by pumping the competitive scene full of prize money and large-scale tournaments. According to Esports Earnings, Fortnite competitions have awarded more than $84 million to date in prizing, with July’s Fortnite World Cup responsible for about $33 million of that. With sports inevitably comes betting—and yes, esports betting is definitely a thing. Unikrn is one of the most popular esports betting sites, allowing users to bet on the outcomes of official competitive matches, as well as matches from popular Twitch streamers. Unikrn betting is based on the platform’s own UnikoinGold token, which can be bet on professional Fortnite matches, wagered in your own in-game battles, and used to enter prize giveaways.
Crypto Twitter Pick
Marty Bent
Bitcoin can be used privately right now. It's just hard. Users need better education.

Better privacy is a top priority of most bitcoiners I know.

Lightning helps tremendously.
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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