The Daily: In a fresh turn of events within the crypto industry, Layer 2 Ink, an Ethereum project incubated by Kraken, is laying plans for a token launch and airdrop. Meanwhile, Coinbase is exploring options to get the green light for tokenized stocks, among other exciting developments. This news digest is adapted from The Block’s weekday newsletter, The Daily.
The memecoin sector witnessed another unexpected development as X decided to suspend the accounts of pump.fun, its founder Alon Cohen, and other associated projects like GMGN and BullX. This action has led to widespread speculation about a potential wider regulatory clampdown.
Kraken’s Layer 2 Ink Plans for Token Launch and Airdrop
The Ink Foundation has unveiled plans to launch and airdrop its INK token. This move signifies a significant stride for Kraken’s Ethereum Layer 2 project, setting sights on rivalling Coinbase’s Base network which operates without a token.
INK is set to launch with a capped supply of 1 billion tokens and will not function as a governance token on the Ink network. INK is being positioned as a utility token focused on promoting usage and liquidity, as opposed to speculation or governance dynamics.
The token’s first use case will be centered around a liquidity pool powered by Aave. The aim is to anchor Ink’s DeFi stack and incentivize early adopters through airdrops. The launch will be overseen by a subsidiary of the foundation, with suggestions of more airdrops in the pipeline. Ink is part of the interoperable Optimism Superchain ecosystem, which includes Base, OP Mainnet, Soneium, Unichain, World Chain, and others.
Coinbase Seeks SEC Approval for Tokenized Stocks
Coinbase is courting the Securities and Exchange Commission (SEC) for approval to offer tokenized stocks in the U.S. The leading exchange hopes to challenge brokerage powerhouses such as Robinhood and Charles Schwab.
According to Coinbase’s Chief Legal Officer Paul Grewal, the exchange is seeking a no-action letter or exemptive relief to roll out blockchain-based equities without triggering regulatory enforcement. The introduction of tokenized stocks could enable 24/7 trading, quicker settlement, and lower costs, but remains inaccessible to U.S. investors under existing rules.
The development comes hot on the heels of the unveiling of xStocks by Kraken, a rival crypto exchange. xStocks offers tokenized versions of over 50 stocks and ETFs to users in Europe, Latin America, Africa, and Asia. Grewal did not disclose whether Coinbase has officially submitted a request to the SEC or set a launch timeline.
South Korean Crypto CEO Acquitted of Fraud Charges Following Stabbing Incident
Haru Invest CEO Lee Hyung-soo was cleared of fraud charges, with a South Korean court ruling that he did not intentionally mislead investors. The case was triggered by Haru’s unexpected freeze of withdrawals in June 2023. The prosecutors alleged that this action defrauded around 6,000 investors of $650 million by promising them a total return of principal and an impressive annual interest of up to 25%.
Lee survived a knife attack during a court trial last August by a man who reportedly lost 100 BTC. Although Lee did not suffer life-threatening injuries, the man was sentenced to five years in prison this April. The court attributed Haru’s downfall to the FTX-triggered liquidity crisis and also exonerated the company’s other executives of fraud, albeit civil liability still hangs in the balance.
