Here’s what happened in crypto today

Gavin Wood is launching a new digital identity solution called “Proof-of-Ink,” which uses tattoos as proof of digital citizenship. Tron founder Justin Sun has downplayed concerns after 12,000 Bitcoin used as backing for USDD was removed from its reserves. Meanwhile, Grayscale has launched a new investment fund for Avalanche’s native token, AVAX.

Proof-of-Ink by Gavin Wood: The tattoo that secures your Web3 privacy

Parity Technologies is launching a Web3 individuality solution, which is a crucial missing element for mainstream Web3 adoption.

The new solution, “Proof-of-Ink,” will enable users to prove their digital individuality in a privacy-preserving manner through a unique tattoo serving as proof of digital citizenship.

Proof-of-Ink is set to launch in the fourth quarter of 2024, according to Gavin Wood, the co-founder of Ethereum, Polkadot and Kusama.

Wood announced during a keynote speech at the Web3 Summit in Berlin:

“We are able to deploy the baseline palette and launch the app at some point this year, hopefully in the final quarter […] We are aiming to launch the other two mechanisms next year.”

While Wood teased that one of the additional two digital identity solutions is further in development, he shared no details about their mechanics.

Mainstream adoption is crucial for any technological paradigm. Experts like Wood hope that Web3 adoption will create a more decentralized and user-centric internet, envisioned as a free public good to help humanity.

Justin Sun says removing 12,000 Bitcoin from USDD is just “DeFi 101”

Tron founder Justin Sun has played down concerns after the removal of 12,000 Bitcoin used as backing for Decentralized USD, a stablecoin governed by the Tron DAO Reserve.

Blockchain explorer Blockchair shows 12,000 Bitcoin (BTC), worth over $729 million, was removed from an address on Aug. 19 that was previously listed as holding some of the collateral for Decentralized USD (USDD).

Some on X allege Sun himself was responsible for the move. While others have raised concerns that Bitcoin was removed without a vote from the TRON DAO Reserve.

In an Aug. 22 statement on X, Sun played down concerns, arguing that USDD’s mechanism is similar to MakerDAO’s DAI and allows for a collateral hodler to withdraw without approval if collateral exceeds an amount specified by the system. 

“This is part of the basics of DeFi 101. Currently, USDD has a long-term collateralization rate exceeding 300%, which means that the capital utilization is not very efficient.”

Grayscale launches AVAX fund

Digital asset manager Grayscale Investments has launched a new investment fund for Avalanche’s AVAX (AVAX) cryptocurrency.

According to the Aug. 22 announcement, the Grayscale Avalanche Trust will provide investors with the opportunity to gain exposure to the “three-chain smart contract platform designed to simultaneously optimize for scalability, network security, and decentralization.”

The trust will also give investors exposure to Avalanche’s “advancement of RWA tokenization,” said Rayhaneh Sharif-Askary, Grayscale’s head of product and research.

Grayscale is the world’s largest digital asset manager, with more than $25 billion in assets under management. It recently launched a trust to invest in MakerDAO’s MKR (MKR) token. It also operates the Grayscale Bitcoin Trust and the Grayscale Ethereum Trust.