The risk-off attitude caused by Federal Reserve tightening led investors to expect a broader market correction and is negatively impacting growth stocks, commodities and cryptocurrencies. Investors have been looking to take profits on riskier assets, causing the U.S. Dollar Index (DXY) to reach its highest level in over two decades at 109.6 on Sept 1.

In the past seven days, the total crypto capitalization declined 6.9% to $970 billion. While Bitcoin (BTC) and Ether (ETH) presented a 7% to 8% decline, a handful of mid-capitalization altcoins dropped 13% or more in the period.

Premier stablecoins USDT and USDC, which make up 12% of the total crypto market cap, have been battling for dominance in recent weeks. They are both witnessing a resurgence in their crypto market share which has boosted by 40% in the past few weeks.

Seven Seven Six (776), a digital assets-focused VC firm is set to raise $177.6 million for a new fund that will likely invest in early-stage Web3 startups and cryptocurrencies.

Following the likes of Sequoia and Bessemer Venture Partners, 776 has registered as an investment adviser with the SEC. The new fund, Kryptós, plans to commence operations in October and charge investors a 2.5% management fee - above the industry average of about 2%.

The firm is run by Reddit’s co-founder Alexis Ohanian and currently has 56 portfolio companies, including Yuga Labs - creators of the Bored Ape Yacht Club NFT Collection and QuickNode, a blockchain API and node infrastructure startup. It currently has $904 million of gross assets, according to regulatory filings.

In other news,

• Binance to Launch Football Fan Token Futures Index, Just in Time for World Cup. Read More
• Hardware wallet Trezor enables direct crypto purchases with MoonPay. Read More
• LG Electronics to Launch Wallypto Crypto Wallet. Read More
• Snap to 'sunset' web3 team in company restructuring. Read More

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The WOW Summit is set to bring together stakeholders from all over the world to network and chart the course for the future of Web3!

Be sure to join us at the event this November! 🙌

The Iranian government has evaluated all issues relating to cryptocurrencies and approved a set of cryptocurrency regulations, according to Reza Fatemi-Amin, the minister of Industry, Mines, and Trade.

The minister explained that the government has ratified a “comprehensive and detailed” law that defines cryptocurrency regulations, including the use of fuel and electricity for crypto mining and the authorized uses of cryptocurrencies. He added that under an agreement between his ministry and the central bank of Iran, cryptocurrency can be used to pay for imports. He additionally noted that local business owners can import cars using cryptocurrencies instead of the U.S. dollar or euro.

The use of cryptocurrency to pay for imports is seen as a way to circumvent U.S. sanctions imposed on the Iranian finance and banking sector, allowing Iran to trade with countries similarly embargoed by U.S. sanctions, including Russia.

In other news,

• IMF Staffers Favor Platform for X-Border Payments, Crypto Regulation. Read More
• A divide has emerged in EU and UK crypto regulation. Read More
• Georgia to Update Crypto Regulations to Incorporate EU Rules, Legalize Industry. Read More
• California State Assembly passes bill for licensing and regulating crypto firms. Read More

The Federal Bureau of Investigation issued a new warning on Monday focused on attacks against DeFi platforms, saying that cybercriminals are exploiting vulnerabilities in the smart contracts that govern them.

"Between January and March 2022, cyber criminals stole $1.3 billion in cryptocurrencies, almost 97 percent of which was stolen from DeFi platforms," the agency says, citing an April 2022 report by Chainalysis.

The agency pointed to three tactics that cybercriminals have used including iInitiating a flash loan, exploiting vulnerability in the DeFi platform's token bridge, and manipulating cryptocurrency prices by exploiting a series of vulnerabilities.

In other news,

• DeFi protocol shuts down months after the Rari Fuse hack. Read More

• Solana-Based DeFi Protocol OptiFi Loses $661K in Programming Blunder. Read Mor