Shiba Inu started Shibarium; Ripple Labs opposes SEC’s request for an appeal; Valkyrie files with SEC for Ethereum ETF
Shiba Inu launched the Shibarium network, an Ethereum layer-2 scaling solution, on August 16th after months of testing in which millions of users participated and 21 million wallets were created.
Shibarium is built on a new consensus mechanism called proof-of-participation (PoP). This is done to avoid the computational costs of proof-of-work. The new layer-2 blockchain solution is designed to interact with the Ethereum layer-1 blockchain, providing a more scalable and cost-effective transaction platform.
Shytoshi Kusama, lead developer at Shiba Inu, said before the launch that L2 has already attracted a lot of interest. In a post on X, Kusama claimed that more than 100 companies are now using Shibarium.
Shibarium will use the Heimdall validator and Boron block production nodes, which bear significant similarities to the Polygon ecosystem. Heimdall is based on the Tendermint consensus model, while Bor will be fully interoperable with the Ethereum Virtual Machile.
Users need to lock 10,000 BONEs on the Shibarium network to become a validator. 21 million BONE will be reserved as rewards for validators and delegates in the Shibarium ecosystem and will be used to pay gas fees.
Ripple Labs opposes SEC’s request for an appeal
Ripple Labs has opposed the US Securities and Exchange Commission’s appeal of a summary judgment in favor of XRP.
Stuart Alderoty, Ripple’s Chief Legal Officer, said in a statement on his X account:
“We oppose the SEC’s request for appeal. There is nothing here that justifies not applying the rule requiring all party issues to be resolved prior to appeal.”
The court ruled in favor of Ripple
The SEC sued Ripple in December 2020, accusing it of selling unregistered securities. The regulator targeted Ripple founders Brad Garlinghouse and Chris Larsen, stating that the company generated $1.3 billion in revenue through the sale of XRP.
Following the lawsuit, many cryptocurrency exchanges such as Coinbase, Kraken and CryptoCom delisted XRP.
Last month, U.S. District Judge Analisa Torres ruled that the sale of XRP on cryptocurrency exchanges is not the sale of securities, causing great joy in the cryptocurrency community, while the exchanges that delisted the asset started to re-list XRP. XRP’s price also saw a huge increase. However, Torres ruled that the sale of the XRP token to institutional investors is a sale of securities.
The SEC announced that it will appeal the decision in favor of Ripple Labs.
The appeal of the case between the SEC and Ripple shows that the case will take even more time to conclude.
Valkyrie files with SEC for Ethereum ETF
Valkyrie Funds has filed with the US Securities and Exchange Commission (SEC) for an Ethereum ETF.
The company, which previously applied for Bitcoin Strategy ETF and Bitcoin Miners ETF, has turned its eyes to Ether.
The fund, called Valkyrie Ethereum Strategy ETF, will not invest directly in Ether. The following statements were made in the filing:
“Ether and Ether futures are a relatively new asset class. They pose significant risks and have historically been subject to significant price volatility. Your investment in the fund carries various risks, such as going to zero. You should be prepared to lose your entire investment.”
The race for a Bitcoin ETF continues
While Valkyrie is applying for an Ethereum ETF, the spot Bitcoin ETF race continues apace. With BlackRock’s application, many companies are lining up to apply for ETFs.
The SEC has not accepted any spot Bitcoin ETF applications so far, but funds investing in Bitcoin futures have been approved by the regulator.
Valkyrie is among the companies applying for a spot Bitcoin ETF. The application took place last June.