Ubisoft Joins Cronos as a Network Validator

Cronos Labs launches zkEVM chain testnetCronos Labs, the developer behind the Cronos blockchain ecosystem, is charting a new path in the blockchain space by launching a zkEVM chain.From Cosmos to EthereumThe Cronos zkEVM chain is being launched in the first instance as a test network. The layer-2 blockchain will rely upon ZK Stack, the software kit developed by Matter Labs. In this way, the project will be extending its scaling roadmap from Cosmos to Ethereum. As Matter Lab’s SVP of Business and Operations, Marco Cora put it:“When we introduced the ZK Stack, we opened up the door for anyone wanting to build on top of Ethereum to do so by deploying hyperchains. Whether you’re building a specialized Rollup or a general purpose one, hyperchains allow you to tap into Ethereum’s extensive userbase base and liquidity while preserving its robust security and decentralization.”The journey began with the creation of the first chain in the Cronos ecosystem — a Cosmos appchain developed in collaboration with Singapore-headquartered crypto platform Crypto.com and launched in 2021. Subsequently, Cronos introduced an EVM-compatible chain in 2022, built using the Cosmos SDK. Notably, these new endeavors complement, rather than replace, the earlier established chains.Photo by Kanchanara on UnsplashThe product of collaborative effortsA significant development in Cronos’ evolution is the introduction of zkEVM, a result of collaborative efforts involving Cronos Labs, Matter Labs and engineering teams from stakeholders Crypto.com and existing dApp developers. The zkEVM testnet is a breakthrough, utilizing Ethereum’s Sepolia testnet and incorporating zkSync’s open-source prover, Boojum — a STARK-based zero-knowledge proof system known for its efficiency in the layer-2 rollup space, with low hardware requirements and fees.The decision to launch a native Ethereum chain stemmed from challenges in bridging EVM chains and bridging between Cosmos and Ethereum, according to Ken Timsit, Managing Director at Cronos. Timsit emphasized the richness and robustness of the Ethereum developer ecosystem for building DeFi and NFT applications.Native account abstractionHyperchains within the ZK Stack share components, including a native bridge to the Ethereum mainnet and zkSync’s trustless bridging mechanism, ensuring assets remain secured by Ethereum. The implementation of zkSync’s native account abstraction allows transaction fee payments in various cryptocurrencies, including Cronos’ native token (CRO).Cronos’ zkEVM is anticipated to progress to the mainnet in the second quarter of 2024, marking a pivotal moment in the evolution of hyperchains.The landscape of hyperchains is expanding, with projects like GRVT and Tradable utilizing the ZK Stack. GRVT, a derivatives exchange, and Tradable, a tech firm focused on bringing private credit on-chain, exemplify the diversity and specialization within this emerging sector. Tradable aims to establish an institutional-focused hyperchain, potentially forming a decentralized chain alongside other institutional partners.Matter Labs views the zkSync hyperchain as a superior option compared to app-specific chains in Cosmos, emphasizing the scalability and security benefits. Hyperchains, a potential alternative to private blockchain frameworks like Hyperledger or Corda, offer technical scalability with the benefits of Ethereum. However, practical scalability remains a challenge due to cost considerations and the social coordination problem.

CoinFLEX founder: creditors not to interfere with OPNXMark Lamb, the co-founder of failed crypto derivatives and yield platform CoinFLEX, has asserted that creditors of the company cannot interfere with OPNX, a Seychelles-incorporated company that Lamb has co-founded with Kyle Davies and Su Zhu, the founders of failed Singaporean crypto hedge fund, Three Arrows Capital (3AC).Photo by Chapman Chow on UnsplashFallout following writIt emerged in October that a group of CoinFLEX creditors had filed a writ of summons in the High Court of Hong Kong, claiming that OPNX, a new crypto bankruptcy claims trading platform linked to CoinFLEX, was established using CoinFLEX assets without their consent. While incorporated in the Seychelles, CoinFLEX ran its operations from Hong Kong.The writ alleges that Mark Lamb misappropriated assets, diverted clients and business opportunities and engaged in actions harmful to creditors during his tenure.The creditors argue that Lamb, while serving as CoinFLEX’s CEO, simultaneously devoted time and effort to setting up OPNX, contrary to his responsibilities. The allegations include diverting assets, falsely representing OPNX’s association with CoinFLEX creditors, disclosing confidential trade secrets and soliciting employees to move to OPNX.The legal action — filed by two companies, Liquidity Technologies and Liquidity Technologies Software — claims that OPNX’s formation was unauthorized and harmful to CoinFLEX creditors. Despite CoinFLEX’s terms of service requiring dispute resolution through arbitration in Hong Kong, the allegations have not been proven in the High Court of Hong Kong.Lamb addresses ‘Twitter FUD’In response to these creditor actions, earlier this week, Lamb took to X (formerly Twitter) to address what he termed as “Twitter FUD.” Lamb wrote:“The Hong Kong court ruled that the few CoinFLEX creditors behind recent ‘FUD’ must not disrupt or interfere with OPNX in any way — and their legal counsel has subsequently stopped representing them.”Lamb added that he hoped that CoinFLEX’s 4,800 creditors would choose the path that he has proposed on the basis that it “maximizes value.”OPNX has defended its position, emphasizing that it provided an opportunity for creditors to sell their claims on the exchange for quick cash, benefiting them. Davies and Zhu have pledged to donate their share of the profit to 3AC creditors.In February, OPNX CEO Leslie Lamb, Mark Lamb’s wife, announced the rebranding of CoinFLEX to Open Exchange (OPNX). However, the writ of summons claims that OPNX is a separate entity not authorized by CoinFLEX creditors. Leslie Lamb followed up in April by claiming backing from well-known entities in crypto venture capital, only for many of those mentioned to immediately refute such claims.The dispute has also implicated Roger Ver, a well-known character in the crypto space otherwise referred to as “Bitcoin Jesus.” Ver, a significant individual customer, was accused of defaulting by CoinFLEX. Ver denied defaulting and claimed that CoinFLEX used his trading positions against him, leading to a court-ordered arbitration.OPNX, since its launch in April, has obtained a Lithuanian license for spot trading in the EU and currently processes substantial daily trading volumes. Criminal and civil proceedings against OPNX co-founders Davies and Zhu are ongoing. The situation remains fluid as the legal dispute unfolds.

Myanmar Government in Exile Backs Crypto Bank LaunchMyanmar is on the cusp of a financial revolution as the National Unity Government (NUG), the country’s exiled shadow government, introduces the Spring Development Bank (SDB), a crypto-based financial institution.With a mission to bestow long-awaited financial freedom and digitized sophistication upon the nation’s citizens, the SDB aspires to reshape Myanmar’s financial landscape.Built on PolygonThe bank derives its name from the Spring Revolution, an opposition movement that bravely challenges the ruling military junta. The goal of the SDB is to bring “freedom and democracy to the 55 million citizens of Myanmar,” a lofty ambition that reflects the NUG’s determination to empower its people through innovative means.Constructed on the Polygon Network, the SDB aims to revolutionize domestic and international payments, making them faster and more efficient. But the bank’s vision extends beyond just payments. Following a recent press conference, bank officials revealed plans to offer a diverse range of financial products, including fixed deposits, currency exchange services, cross-country remittances, and even digital gold savings options.Reaching the Burmese diasporaNotably, the SDB’s reach extends beyond Myanmar’s borders to the two-million-strong Burmese diaspora residing abroad. This diaspora frequently sends money back to their homeland, but the current remittance fees can soar as high as 30%. The bank intends to alleviate this burden, reducing the costs associated with sending money back to Myanmar.The Spring Development Bank operates under the licensing and regulation of the Interim Central Bank of Myanmar, which is under the control of the NUG. U Calvin, the bank’s CEO, emphasized that this launch marks the initial step towards restoring financial independence to Myanmar.The bank’s emergence comes amid Myanmar’s complex relationship with cryptocurrencies. While there is no specific legislation addressing cryptocurrencies, the Central Bank of Myanmar issued a ban on them in 2020, and the military junta later proposed a cybersecurity law that criminalized their usage in January 2022.Photo by Dan Gold on UnsplashJuly soft launchA soft launch of the SDB is scheduled for July 22, with 1,000 private beta users and 100 relationship managers. The bank expects to achieve a full launch in late August, with the goal of attracting 100,000 active users within the first six months of operation.Despite these regulatory challenges, Myanmar’s people have turned to cryptocurrencies as an escape from their dire financial situation. Since the February 2021 coup, the country’s economy has suffered significantly, with the World Bank estimating an alarming 18% annual contraction. Fading trust in the traditional banking system, controlled by the military, has further crippled the financial market.The Myanmar kyat (MMK) plummeted to an all-time low of 2,200 against the US dollar (USD) in September 2021, down from 1,330 in February 2020 (currently 1 USD = 2,100 MMK).The SDB’s arrival signals a glimmer of hope amidst these trying times, offering a beacon of financial opportunity for the citizens of Myanmar. With the support of the NUG, the bank is looking to take an innovative approach to better serve Burmese citizens, both at home and abroad.