Blockchain Bites: Magic’s Raise, Compound’s Distribution and Trump’s Twitter War

Blockchain Bites: Magic’s Raise, Compound’s Distribution and Trump’s Twitter War

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The case for decentralized platforms has never been clearer, as President Donald Trump goes on the offensive against big tech platforms like Twitter and Facebook, said lawyers and technologists surveyed by CoinDesk.

Meanwhile, decentralized identity service Magic has raised $4 million from heavy-weight investors including Naval Ravikant, SV Angel and Placeholder, and the Digital Dollar Project is making its case for updating the U.S. dollar with its first white paper. Here’s the story:

You’re reading Blockchain Bites, the daily roundup of the most pivotal stories in blockchain and crypto news, and why they’re significant. You can subscribe to this and all of CoinDesk’s . 

Big Tech
U.S. President Donald Trump  and other social media platforms after Twitter fact-checked two of the President’s tweets, which seeks to amend Section 230 of the Communications Decency Act. Lawyers and technologists think the order is likely to fail, though it could have positive effects for the emerging decentralized web. Meanwhile, Twetch’s Twitter account  according to Twetch co-founder Josh Petty, and has since been reinstated without a follower count. Twetch offers alternative microblogging platform and actively markets itself against the San Francisco firm run by bitcoin enthusiast Jack Dorsey. 

Digital Identities
Magic  from investors including Naval Ravikant, SV Angel, Placeholder, Lightspeed Venture Partners and Volt Capital to build a decentralized online identity and log-in service. Nuggets, a digital identity and payments platform, has developed a way to , using biom

Regulatory Matters
The  (CBDC). The group published its first white paper detailing how a digital dollar could help the U.S. maintain the dollar’s status as the world’s reserve currency.  though the process is difficult, ZUBR, a crypto exchange, said. ZUBR’s approval is conditioned on addressing some of the regulator’s feedback by the time it gets its license. Meanwhile, Gibraltar Stock Exchange (GSX) Group’s digital securities platform  for the first time.

Open Finance
Users of the Compound lending platform will begin  in mid-June, pending the public review of the decentralized finance firm’s distribution plan. Roughly 42% of the total supply of the governance COMP tokens will move into a reservoir pool and begin daily distributions to users of the protocol for the next four years. Coinbase Pro is adding support for MakerDAO’s native MKR () and expanding its  to the U.K., Spain, France and the Netherlands.

Crime Doesn’t Pay
BitClave, a California startup whose Ethereum-based search engine  in a settlement with the SEC. A New York City man has been indicted for allegedly stealing and selling reams of payment card data, the 

Funded Through Crypto
Telegram messenger founder and CEO  approximately $90,000, to help alleviate the financial burden of the COVID-19 pandemic in Russia. A new series about blockchain project Dragonchain is  Production house Vision Tree Media said Friday that its new “Open Source Money” documentary series, which will track crypto project Dragonchain, would debut on Discovery Science, a U.S. TV channel run by Discovery Inc., who also owns the Discovery Channel.

How Contact Tracing Can Be Effective While Guarding Privacy
Vipin Bharathan, chair of the Hyperledger Identity Working Group,  between public safety and privacy. “To preserve the privacy of users and to be useful at the same time is a challenge. Privacy is enhanced by decentralization, by key schedule design and minimal collection of data,” he said. 

What Goldman Gets Wrong About Bitcoin (From Someone Who Used to Work There)
Jill Carlson, a CoinDesk columnis and co-founder of the Open Money Initiative,  when denouncing bitcoin as a suitable investment. “It’s not worth detailing every misconception or failed bit of logic in the report. But a few are worth mentioning. Goldman’s argument that cryptocurrencies are not a scarce resource due to the ability to fork into “nearly identical clones” represents a shocking failure of research into the immense technical and cultural differentiations between the three examples that they offer (bitcoin, bitcoin cash and bitcoin sv),” she said. 

Consolidating Gains
Bitcoin’s bulls are taking a breather amid jitters in the traditional markets over  The world’s biggest cryptocurrency is trading near $9,400 at press time, having posted an eight-day high of $9,620 on Thursday. Prices have gained 8% so far this week. While bitcoin looks to be consolidating on recent gains, major European stock markets are flashing red for the first time this week. Leading the way lower is Germany’s DAX, down 1.5% on the day, followed by France’s CAC, which is reporting a 1% decline. Across the pond, futures tied to Wall Street’s equity index S&P 500 are down 0.5%.

Exchange Exodus 
The  just above 2.3 million on Monday. The decline marks an 11% year-to-date reduction in the number of bitcoins held by exchanges. “People are accumulating aggressively, and the market participants seem to have a higher time preference these days,” said Avi Felman, head of trading at BlockTower Capital.

Crypto vs COVID Charity Poker Tournament
 on May 31, when crypto figureheads come together to play poker for charity. Buy in with fiat or crypto for a chance to play against Ryan Selkis, Brock Pierce, Hailey Lennon, Ran NeuNer, Charlie Lee and more for a chance to win 2 bitcoin. 

 at least one hour before first bet. 

Too-Strong Dollar?
Brent Johnson has argued the big economic issue of our time isn’t inflation of the U.S. dollar due to excess money printing, but the  and sucks up liquidity from the rest of the world. He joins The Breakdown to discuss the dollar’s role in a post-COVID world.

The Breakdown: Money Reimagined
As clarity emerges amid the COVID-19 crisis, what have we learned about the battle for the future of money? Does the dollar reign supreme, are the euro or China’s digital yuan gaining ground, or does an alternative like bitcoin stand a chance? 

The fourth and final episode of  poses the big questions this podcast microseries has explored with speakers and panelists from Consensus: Distributed, CoinDesk’s virtual summit held May 11-15. 

These voices include former Treasury Secretary Lawrence Summers, the Winklevoss brothers, former CFTC Chair Christopher Giancarlo, Binance CEO Changpeng Zhao, YouTube influencer and beauty mogul Michelle Fan, The Chainsmokers, esteemed economist Calota Perez and more. 

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