Hong Kong’s SFC Issues Warning Against Unlicensed Crypto Platforms

WazirX Founder’s Blockchain Startup Raises $5.4MShardeum, a highly-scalable layer-1 blockchain utilizing dynamic state sharding, has successfully closed a strategic raise of $5.4 million.The project was co-founded by Nischal Shetty, who also founded leading Indian cryptocurrency exchange WazirX.Photo by Shubham Dhage on UnsplashWorking towards mainnet launchThe funding round saw participation from prominent investors including Galxe, J17 Capital, JSquare, and TRGC, among others. Singapore’s Amber Group, a digital assets trading, products, and infrastructure firm, also participated. The additional capital will be used to facilitate the expansion of Shardeum’s ecosystem, leading up to the highly anticipated mainnet launch later this year. As part of that launch, it will also introduce $SHM, its native token. 5% of $SHM tokens are being allocated to ecosystem development and to community airdrops.What is Shardeum?Shardeum is a highly-scalable EVM-based layer-1 blockchain that utilizes dynamic state sharding. By employing dynamic state sharding, Shardeum ensures low gas fees and high transactions per second as the network expands. The platform achieves consensus at the transaction level, reducing the computational power required for validator nodes. This composition means that it’s engineered for linear scalability.This consensus mechanism enables broad accessibility and increased decentralization by allowing anyone to run a node. Through the power of dynamic state sharding, Shardeum offers a scalable and secure solution that addresses the blockchain trilemma while ensuring decentralization for all participants.Dynamic state shardingSince its establishment in 2022, Shardeum has been focused on delivering a highly-scalable EVM-based layer-1 blockchain with dynamic state sharding capabilities. As of Friday, the Shardeum testnet has already witnessed over 7.4 million transactions, with over 820,000 accounts and more than 230,000 contracts deployed.Kelsey McGuire, the Chief Growth Officer at Shardeum, expressed enthusiasm about the completion of the strategic raise, emphasizing the company’s commitment to cultivating a global and diverse community. McGuire highlighted Shardeum’s consensus design and the accessibility of validator participation, regardless of users’ computing resources. The additional funding will further support Shardeum’s dedication to decentralization by fostering worldwide community growth through educational initiatives and other key programs.Initial $18.2M seed roundIn addition to the aforementioned investors, the strategic raise attracted notable participants such as Bware Labs, Tané Labs, Hyperithm Group, and Luganodes, among others. This round follows Shardeum’s successful seed round in October 2022, which raised $18.2 million and involved backers such as Jane Street, Big Brain Holdings, Struck Crypto, The Spartan Group, Ghaf Capital, DFG, CoinGecko Ventures, and Foresight Ventures. Funding from that initial seed round went towards hiring more employees, expanding the Shardeum network, and growing its community.A Shardeum project team member told The Block that the raise now places a valuation on the overall company of around $248 million. Shetty recently told Forbes that he believes Shardeum can be a direct competitor to Ethereum. The WazirX Founder outlined that the blockchain was envisioned on the basis of low fees and scalability regardless of the extent of the network growth that transpires.

Algorand Foundation and DWF Labs Partner for Ecosystem GrowthThe Algorand Foundation has joined forces with DWF Labs, a global digital asset market maker and Web3 investment firm, in a strategic partnership aimed at accelerating the growth of the Algorand ecosystem.An announcement of the collaboration was made on Monday, with the expectation that it will provide more opportunities for developers, businesses, and the wider blockchain community where the Algorand layer one blockchain is concerned.Photo by Shubham Dhage on Unsplash$50M token purchaseDWF Labs has committed to purchasing $50 million worth of $ALGO tokens, the native cryptocurrency of the Algorand network. This infusion of funds will enhance liquidity within the Algorand ecosystem, bolstering stability and growth.Beyond the token purchase, the partnership is reinforced by a memorandum of understanding (MOU), establishing a comprehensive funding framework to support projects built on the Algorand blockchain. This commitment will foster innovation across various sectors such as decentralized finance (DeFi), art and music, gaming, oracles and bridges, and infrastructure.Ecosystem collaborationsWeb3 investment firms like DWF Labs play a pivotal role in accelerating the growth of blockchain ecosystems. By investing in startups and projects that complement existing blockchain platforms, DWF Labs creates synergies that drive growth.It’s not the first time that DWF Labs has collaborated with blockchain network ecosystem projects. Earlier this month, the firm announced a deal with the project team behind layer one blockchain TRON, that will see it become a liquidity provider to that TRON network.In April, DWF entered into a partnership with the EOS Network Foundation (ENF) which included a $45 million $EOS token purchase agreement, with a further $15 million allocated towards investment into EOS ecosystem projects.Andrei Grachev, Managing Partner of DWF Labs, expressed enthusiasm for the partnership, highlighting Algorand’s technological superiority, security, and commitment to environmental sustainability and social impact.Through funding and strategic collaboration, DWF Labs will support the creation of diverse applications, services, and solutions within the Algorand ecosystem. This will foster the ALGO network effect, attracting more users and driving further growth.Algorand network stability and growthThe Algorand Foundation and DWF Labs partnership aligns with ongoing efforts to drive blockchain network adoption. Algorand’s platform offers scalability and security, while DWF Labs’ expertise and financial support will propel the ecosystem’s growth and adoption.The Algorand network is a proof of stake (PoS)-based blockchain network. It aims to accelerate the convergence between existing TradFi and emerging decentralized networks and technologies.The $50 million investment in ALGO tokens injects liquidity into the ecosystem, promoting stability and facilitating economic activities. The partnership’s funding framework ensures that projects built on Algorand receive the necessary resources.Collaborations like this drive blockchain adoption and development. The Algorand Foundation and DWF Labs share a vision of innovation and collaboration, fostering a thriving ecosystem.As the blockchain industry expands, strategic alliances play a crucial role in accelerating innovation and establishing interconnected ecosystems. The collective efforts of the Algorand Foundation and DWF Labs contribute to blockchain’s advancement, leading towards a decentralized future with transparency and inclusivity.

At the 16th Mint Annual BFSI Summit and Awards in Mumbai, Reserve Bank of India (RBI) governor Shaktikanta Das reiterated the central bank's cautious stance on cryptocurrencies, regardless of recent global developments. During the event, which was held on Thursday, Das took to the stage. He was asked if the approval of spot bitcoin exchange-traded funds (ETFs) in the United States gives legitimacy to cryptocurrency.Photo by rupixen.com on UnsplashUnwavering responseDas was unwavering in his response, maintaining that the RBI remains steadfast in its approach and opposition to cryptocurrencies. He stated: "The way we look at crypto remains unchanged, irrespective of who does what."  He emphasized that the RBI does not intend to emulate regulatory decisions made by other countries. Despite this global development, Das maintained the RBI's reservations, expressing concerns about the potential risks associated with venturing further into the cryptocurrency space. Favoring a crypto banLast month, officials from the Indian central bank told the Hindustan Times that the RBI believes that the Indian government should impose an outright ban on cryptocurrencies in India. One unnamed official stated:"The government cannot sidestep the RBI’s concerns while deciding on cryptocurrencies, as it is responsible for monetary stability in India and maintains price stability." Das acknowledged the potential of blockchain technology, the foundation of cryptocurrencies, highlighting its versatility for various applications. Both the central bank and the Indian government have encouraged the development of blockchain rather than crypto. Last year, an RBI-led initiative, the National Payments Corporation of India (NPCI), recruited blockchain expertise to further develop that project. However, he made it clear that the RBI's focus remains on strengthening governance and assurance in regulated entities, with an emphasis on early identification, close monitoring and effective management of risks. Citing ‘Tulipmania’Das cautioned against a “crypto mania,” drawing parallels to the historical tulipmania of the 17th century. He underscored the RBI's position that embracing cryptocurrencies could pose significant risks, echoing his previous warnings about the macroeconomic and financial stability risks associated with these digital assets. The governor emphasized the importance of instilling an appropriate risk culture within organizations, with active involvement from the board and senior management. Das stated that the RBI expects top officials and board members to play a more proactive role in risk management. India’s crypto community responded critically to the RBI governor’s comments. Ajeet Khurana, a Web3 growth investor, responded on social media, stating:”Dear RBI governor, I respect you a lot, and I don’t mind that you don’t like Crypto. Diverse points of view are healthy. Yet, using words like 'tulip mania' only gives the impression that you are out of touch with what is happening in Web3. My request, Sir, is that you update yourself.” Vivek Sen, the founder of Bitgrow Lab, wrote:”Dear RBI, First, don't club Bitcoin with ‘Crypto’. Secondly, Tulips did not experience an 80% drop on four occasions, and they recovered each time.”Despite opposition to cryptocurrencies in official circles in India, a report last year produced by Chainalysis found that India is leading the way in Asia in terms of grassroots adoption of cryptocurrencies.