Good morning ☕️ to both our weathered vets and new frens! 🌅 

The crypto world never sleeps, and neither do we. Every dawn brings a fresh twist to the game, and we’re here for it 🤝 

• ✉️ Telegram founder ARRESTED in France, how did TON react?

• 🤔 Soneium... what's that?

• 🔥 Ambire community call recap: catch up with the latest updates!

• 🏧 UK’s cracking down on crypto: first crypto ATM operator to be busted

• 🐷 The most profitable crypto scam of 2024: “pig butchering” is back

Our Degen Portfolio has held steady, with no major changes since our last check-in—sometimes, stability is its own reward.

But we’re always looking for ways to refine our strategy. That’s why we’re rolling out a poll to let you weigh in on our next move. Cast your vote and help shape the next step! 👇️ 

LFG!

Telegram founder ARRESTED in France, how did TON react?

So, Pavel Durov, the dude who gave us Telegram and the TON blockchain, just got nabbed in France.

• French authorities arrested Durov, accusing him of some pretty heavy stuff - like facilitating all sorts of shady activities on Telegram, including terrorism and drug trafficking 🤪 

• These aren’t the kind of headlines you wanna see, especially when you’re involved in crypto.

But this arrest isn’t just about legal drama, it’s shaking up the whole TON ecosystem 👇️ 

Toncoin, the native crypto of TON, took a massive nosedive - dropping nearly 21% after the news hit. Ouch.

TON’s future looking shaky?

Let’s be real, TON was Durov’s brainchild, even after he had to step away due to regulatory BS back in 2020.

The community kept the project alive, and things were looking up, especially after Telegram integrated Toncoin into the app.

But with Durov out of the picture (at least for now), investors are sweating bullets 🥵 

Without its main hype man, can TON keep its momentum, or is this the beginning of the end? 🤔 

• Adding fuel to the fire, TON had a major outage just days after Durov’s arrest. The network was down for hours, and the community freaked out.

• A blockchain that can be halted that easily isn’t exactly inspiring confidence. The network is back up, but the whole thing has people questioning if TON is as solid as we all thought.

If TON can bounce back from this, it’ll say a lot about the strength of decentralized projects.

But if it doesn’t… well, we might just be witnessing another crypto dream go up in smoke.

Soneium... what's that?

• Soneium is Sony’s latest foray into the blockchain world, developed in collaboration with Startale Labs.

• It's an Ethereum rollup built on the OP Stack, aiming to bring blockchain technology to the masses with a focus on user-friendly adoption.

But honestly, with a name like "Soneium," one could easily mistake it for a sleep aid. Imagine if other tech giants followed suit with names like "Applenium" or "Samsungium" - sounds like an April Fool’s joke 🤷 

Despite the name, Soneium wants to position itself as a strong contender.

• The brains behind this operation, Sota Watanabe, CEO of Starteale Labs, decided to ditch Polygon and go all-in on the OP Stack.

• Why? Because it's a "proven" solution, at least in his eyes. Watanabe's vision for Soneium is to create a blockchain that's not just for crypto geeks but for “everyone”

The Minato public testnet is set to debut at the WebX 2024 conference in Japan.

Superchains and big promises

Soneium isn't just another rollup - it's part of the Superchain, an initiative aimed at unifying OP Stack rollups like Base 🤔 

Watanabe stresses he wants collaboration over rivalry, which is a nice sentiment, but let's see how that plays out in the cutthroat world of blockchain.

The Minato testnet launch also introduces an incubation program called Spark, aimed at supporting developers with mentorship, technical help, and funding opportunities 🛠️ 

Sony's got its Web3 team of 30-50 engineers on the case, so it’s safe to say they’re pretty serious about this 🧠 

Sony’s involvement in Soneium isn’t just a casual fling. They’ve committed significant resources and infrastructure support, resulting from 18 months of back-and-forth talks, even before Astar zkEVM hit the scene.

So, what’s the end game here? Is Sony trying to corner the market on user-friendly blockchain adoption, or is this another corporate experiment that might fizzle out?

For now there’s no way to know - whether it's a hit or a miss, it's certainly going to be interesting to watch Sony's on-chain adventure unfold.

Ambire community call recap: catch up with the latest updates!

On August 23rd, our CEO, Ivo Georgiev, hosted an insightful session, diving into everything Ambire has been up to.

From development updates to upcoming features, it was a jam-packed discussion that you don’t want to miss 👇️ 

But if you’re pressed for time, we’ve made it even easier for you. Check out this TLDR in just 23 seconds 👀 

UK’s cracking down on crypto: first crypto ATM operator to be busted

Well, folks, it looks like the UK's crypto cowboy days are hitting a bit of a snag.

• Rahman, who ran a mobile phone shop in Chatham, Kent, thought he had found a sweet spot in the unregulated crypto world. But now, the FCA is making it clear that those days are over.

• With allegations of laundering nearly £300,000 by converting money into digital assets, Rahman is the first to face charges in the UK for running an unregistered crypto ATM.

The legal gray area

• Back in 2022, the FCA decided to ban crypto ATMs unless they were registered, but they didn’t enforce it right away.

• For a while, it seemed like a crypto Wild West was still on, with ATMs popping up around the country. But the grace period is clearly over, as the crackdown on these machines is now in full swing.

• In fact, by July 2023, sources like Blockworks reported that there were fewer than ten crypto ATMs left in the entire UK. Rahman’s setup might have been among the last standing before the FCA swooped in.

What’s next?

Rahman is now out on bail, with a court appearance scheduled for October 10. The outcome of this case could set a precedent for how the UK handles crypto ATM operations moving forward 🏧 

Meanwhile, across the pond, the US is leading the charge with 82% of the world’s crypto ATMs. But don't think they're in the clear – law enforcement is keeping a close eye on those too.

In case you’re wondering just how big this crypto ATM thing is, get this: there are over 31,000 crypto ATMs in the US alone 🤯 

But the growth of these machines has started to slow down, especially with all the legal heat coming their way. Just in May, the US market saw 302 Bitcoin ATMs go offline, with more expected to follow as the regulatory noose tightens.

The most profitable crypto scam of 2024: “pig butchering” is back

• 2024 has been a wild ride for crypto scams, and guess what? "Pig Butchering" has claimed the crown as the most lucrative one yet.

• No, this isn’t about livestock, it’s about cybercriminals fattening up their victims’ wallets before slaughtering them.

So, what’s this so-called "Pig Butchering"?

Imagine a group of smooth-talking scammers who build online personas to gain your trust, promising sky-high returns on bogus investments 🤷 

They make you feel like you’re rolling in crypto, only to leave you high and dry when they disappear with your funds 👇️ 

• According to a report by Chainalysis, Pig Butchering schemes have become the most profitable type of scam in the crypto space 💰️ 

The Myanmar-based Huione Guarantee is one of the major offenders in this domain.

• What started as a legitimate investment company has now morphed into a hub for illicit activities including pig butchering, investment fraud, and money laundering.

• The scam marketplace has grown exponentially, processing over $49 billion in crypto transactions since 2021 - significantly more than previously reported.

The report also highlights a notable shift in how these cybercriminals operate. Gone are the days of long-running Ponzi schemes - today’s scammers are opting for shorter, more frequent scams that last only a few weeks.

• This change in strategy makes them harder to catch, as they quickly set up and shut down operations before anyone catches on.

• They’ve mastered the art of using fake social media profiles, often sourced from China-based service providers, to lure in their victims. These accounts look legit and are backed by a fake online presence that convinces unsuspecting individuals to invest in phony crypto projects.

But it’s not all doom and gloom

Law enforcement agencies have scored some recent victories in the fight against these scams. For instance, U.S. prosecutors in North Carolina recently seized nearly $5 million worth of Tether (USDT) linked to a pig butchering scam.

Similarly, a former bank CEO in Kansas was sentenced to 24 years in prison for embezzling $47.1 million and laundering it through a pig butchering scheme.

While these scams are becoming more sophisticated, the crackdown is intensifying, with the goal of dismantling these operations before they can cause even more harm.

Other worthy reads

Mbappe gets ""hacked"" now - shills a rug that instantly disappears

A good thread on Solana and L1s by Dovey Wan:

MEMES

That's all for now, frens.

We'll meet in a week! And remember, the market conditions are temporary, but our commitment to building a better DeFi is here to stay. Thanks for joining us, and we look forward to seeing you back next week. Cheers!

Yours, The 🔥 Team

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