gm, readers.
At Automata we work on protecting privacy and fairness. And in this newsletter, we find more reasons to talk about it. Explore headlines and catch up on the biggest crypto news in Web3 privacy.
This week:
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Samourai wallet shutdown and legal implications for privacy tools
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Manta Network launches $50M ecosystem fund to boost ZK projects
Zooming into ZK:
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41% of top zkSync airdrop wallets sell entire allocation, leading to significant price drop
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zkSync Era's airdrop fails to revive declining user activity and transactions
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zkSync token launches with $925M market cap amid network strain and security threats; Defends sybil measures amid airdrop controversy; Binance offers alternative distribution
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Ronin unveils zkEVM to scale Web3 gaming ecosystem, prepares for billions of transactions
Conversations you missed:
- Scaling Web3 social: Stani Kulechov on Lens Network's integration with ZKsync technology
We dive into the details, so you don’t have to:
Ronin, the gaming blockchain developed by Sky Mavis for Axie Infinity, has announced the upcoming launch of Ronin zkEVM, a ZK Ethereum Virtual Machine Layer-2 chain using a modified version of the Polygon Chain Development Kit. This new zkEVM chain aims to handle billions of transactions, supporting a broader gaming ecosystem and facilitating game studio growth. With 1.4 million daily active addresses, Ronin plans to enhance scalability, enabling third-party builders to launch their own layer-2 blockchains.
https://x.com/Ronin_Network/status/1803065773197258800
In the aftermath of zkSync's ZK token launch on June 17 across major exchanges including Binance, Bybit, Gate.io, and KuCoin, blockchain analytics from Nansen indicate that 41% of the top 10,000 addresses promptly sold their entire ZK allocations, leading to a significant 34.5% price decline. Despite this sell-off, 30% of top wallets retained their tokens, while the token's market cap fell from $1.1 billion to approximately $772 million, with only 17.5% of its total supply currently circulating. Criticism of zkSync's airdrop criteria focused on perceived weaknesses in Sybil attack prevention.
The shutdown of Samourai Wallet, following the arrest of its founders for charges including money laundering and operating an unlicensed money-transmitting business, raises significant legal questions for the cryptocurrency sector. Known for its privacy-enhancing features like Ricochet and Whirlpool, Samourai Wallet's closure amid U.S. regulatory action underscores potential repercussions for other self-custodial tools. The case highlights debates over the definition of money transmission and the responsibilities of developers in facilitating privacy and anonymity in cryptocurrency transactions, amid ongoing regulatory scrutiny and enforcement efforts.
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This newsletter is for informational purposes only. It is not intended to be a substitute for professional financial advice or interpreted as investment advice. Cryptocurrencies are volatile assets and you should always do your own research before making any informed decisions when investing or trading.