Happy Thursday!

In today’s newsletter, Hamster Kombat‘s token goes live, Ethena ENA +10.47% plans a new stablecoin backed by BlackRock’s BUIDL fund, Kamala Harris says the U.S. should become “dominant” in blockchain, and more.

Meanwhile, former Mt. Gox CEO Mark Karpeles discusses his comeback in the latest episode of The Crypto Beat podcast.

Hamster Kombat Token Goes Live for Trading

Hamster Kombat‘s HMSTR token went live for trading on major exchanges at 8 a.m. ET on Thursday, including Binance, OKX, Bitfinex, and Bitget.

• Approximately 60 billion HMSTR tokens, 60% of the total 100 billion supply, were distributed to 131 million eligible user accounts on the TON blockchain.
• Hamster Kombat claims over 300 million user accounts have signed up since its launch in March, with airdrop eligibility based on participation during Season 1 of the tap-to-earn game.
• Another 15%, or 15 billion tokens, will be dropped during Season 2, the team announced.
• The game’s creators noted that 2.3 million user accounts labeled as “bots and cheaters” were deemed ineligible to receive the token.
• Due to the airdrop’s size and number of recipients, the TON Core team anticipates challenging distribution volume management.
• Hamster Kombat follows other Telegram clicker games like Notcoin and Catizen in launching a token airdrop.

Ethena Plans New Stablecoin Backed by BlackRock’s BUIDL

Ethena is set to launch a new stablecoin called UStb in collaboration with the real-world asset tokenization platform Securitize, backed by BlackRock’s Ethereum-based tokenized U.S. Treasuries fund, BUIDL.

• UStb will be a “wholly independent product,” providing an alternative risk profile compared to Ethena’s existing USDe stablecoin.
• USDe, with a circulating supply of $2.6 billion, employs collateralized derivative hedging strategies rather than direct fiat or asset backing, which introduces additional risks.
• UStb could help USDe navigate adverse market conditions by reallocating collateral assets if deemed necessary by Ethena’s governance.

Kamala Harris Says U.S. Should Become ‘Dominant’ in Blockchain

In a speech to The Economic Club of Pittsburgh on Wednesday, Kamala Harris stated that under her leadership, the U.S. will “recommit” to global leadership in blockchain, AI, and other emerging technologies.

• Unlike pro-crypto Republican candidate Donald Trump, the Democratic presidential nominee has been relatively quiet on cryptocurrency during her campaign until now.
• At a Wall Street fundraiser over the weekend, Harris discussed digital assets and AI as part of her vision for an “opportunity economy” that should be encouraged while ensuring consumer and investor protection.
• Harris reiterated this sentiment in the release of her 80-page economic plan on Wednesday.

South Korea Fines Worldcoin Foundation for Privacy Violations

South Korea’s Personal Information Protection Commission fined the Worldcoin Foundation and developer Tools For Humanity a total of 1.1 billion Korean won ($830,000) for data privacy violations.

• Violations included failing to inform individuals about the purpose and duration of data collection from its eyeball-scanning Orbs and the transfer of that biometric data abroad, as well as not allowing individuals to request data deletion.
• Despite the fine, Tools For Humanity welcomed the decision, viewing it as a conclusion of the regulator’s investigation that identified weaknesses in disclosures, which have since been addressed.
• The PIPC confirmed it would not ban Worldcoin’s data collection in South Korea as long as the project remains compliant.

Gensler Warns Crypto Industry Needs Investor Protection

SEC Chair Gary Gensler warned that the crypto industry will not survive without investor protections, citing the collapses of firms like FTX and Celsius as cautionary examples while speaking on CNBC’s Squawk Box.

• Gensler emphasized his view that most cryptocurrencies are securities, with bitcoin being an exception.
• When asked about Kamala Harris and Donald Trump’s crypto stances, he declined to comment on the elections.

In the Next 24 Hours

• U.S. PCE figures are set to be released at 8:30 a.m. ET on Friday.
• U.S. FOMC member Michelle Bowman will speak at 1:15 p.m.

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