Wormhole Foundation (WF) entered the bidding competition for Stargate Finance, challenging LayerZero’s proposed $110 million acquisition.

In an Aug. 20 statement via X, WF argued that LayerZero’s offer significantly undervalues the cross-chain bridge protocol.

LayerZero Foundation announced its acquisition proposal on Aug. 10, offering to purchase all circulating STG tokens at $0.1675 per token through a swap for ZRO tokens. 

The proposal requires approval from STG holders through Stargate’s governance process, with a 70% approval threshold needed for passage.

Wormhole Foundation contended that LayerZero’s bid fails to reflect Stargate’s true value, citing the protocol’s treasury holdings and recent performance metrics.

Further, Wormhole shared that Stargate maintains over $92 million in treasury assets, including $76 million in stablecoins and $16 million in Ethereum, while demonstrating substantial growth momentum.

Performance drives valuation dispute

On-chain data shows that Stargate processed $4 billion in bridge volume during July 2025, representing a 10x year-over-year increase. As of Aug. 20, it had $348 million in total value locked (TVL) across more than 80 chains.

According to the Wormhole Foundation:

“STG holders deserve better. The current bid undervalues the protocol’s assets, brand, codebase, and team.” 

The WF added that these fundamentals justify a “meaningfully higher offer” than LayerZero’s proposed valuation.

LayerZero Foundation defends its pricing, noting Stargate’s backing of $0.14444 per circulating token compared to its trading price of $0.1637 per token at proposal time. It added that based on its calculations, the offer represents a premium on both metrics.

Differences beyond offers

LayerZero positions the acquisition as ecosystem consolidation, noting Stargate’s established infrastructure and user base. The foundation plans to direct all future Stargate excess revenue toward ZRO token buybacks while expanding the protocol’s mandate beyond traditional bridging services.

In addition, LayerZero argued that unified governance would eliminate resource conflicts between potentially competitive protocols.

At the same time, Wormhole Foundation proposed an alternative vision combining “Stargate’s unified liquidity pools with our broad ecosystem of integrations.” 

The foundation said this approach would generate “higher volumes, higher revenues, and greater stickiness,” benefiting both STG and W token holders. It also requested a five-business-day suspension of the ongoing on LayerZero’s proposal vote to allow time for due diligence and bid preparation. 

The governance vote requires a 1.2 million veSTG token quorum with 70% approval for LayerZero’s proposal to pass. The proposal was amended to provide additional compensation for veSTG stakers through six months of revenue distribution.

The amendment happened following criticism about the equal treatment of locked versus unlocked tokens.

Mentioned in this article

August 20th Bitfinex Securities Market Inclusion Report unveils challenges and opportunities for Latam Capital Market

San Salvador, El Salvador – August 20, 2025 – Bitfinex Securities El Salvador Sa de CV has announced the release of its first Latin American Market Inclusion Report, highlighting the tokenization as a transformative socioeconomic opportunity in Latin America.

Building on expert interviews and regional analysis, this study identifies systematic barriers to Latin American capital markets, ranging from relatively high fees and complex bureaucratic hurdles to deep and low market financial literacy. These barriers are seen to contribute to the difficulties entrepreneurs and investors have experienced from accessing the region’s fair and efficient capital markets.

This report identifies the phenomenon of “liquidity delay” in the region. This refers to the current obstacles and inefficiencies of the traditional Ratum capital market that slowed capital flows and hindered investment. Factors contributing to this include high fees, complex regulations and limited market participation. Structural issues such as working hours, technology barriers, high start-up costs, and bureaucratic and regulatory hurdles have also been identified as pose challenges to business and investment growth in the region.

The Bitfinex Securities Market Inclusion report includes analysis, findings and experts from eight different Latin American countries, including Argentina, Brazil, Chile, Colombia, El Salvador, Mexico, Panama and Peru.

Tokenization is presented as providing a solution to the “liquidity latency” problem identified in Latin America. Tokenized assets digitize the ownership of bonds, stocks or funds by issuing tokens on a blockchain in which each token corresponds to the fund’s share or unit. This structure allows for decentralized ownership and management, with several other benefits, including accessibility, transparency, and efficiency.

By increasing issuance costs to just 2-4%, reducing listing times to 60-90 days, and enabling fractional ownership, blockchain-based securities can make investments dramatically more comprehensive and efficient.

“Tokenization represents the first true opportunity for a generation to rethink finance,” said Jesse Knutson, Head of Operations at Bitfinex Securities. “It reduces costs, accelerates access and creates more direct connections between issuers and investors.”

With regulatory advances in countries such as El Salvador, Argentina and Brazil, the report suggests that Latin America is being put into place on its own to accept tokenized markets. For example, in 2021, El Salvador became the first country to recognize Bitcoin as fiat currency, and despite recent changes to the law, digital asset technology has firmly established itself in the country’s economy. In 2023, El Salvador passed the Digital Asset Issuance Act (Lead) to create a fully regulated framework for tokenization of assets.

Bitfinex Securities calls this not only economic change, but broader socioeconomic opportunities for the region to overcome historic barriers and promote growth.

As shown in the report, tokenization technologies could improve accessibility for both capital and investors by reducing the costs of capital investment and capital raising, accelerating the pace of listings, providing investment efficiency, accessibility, democratization, and expanding financial inclusion. Tokenization may open up brighter opportunities in the region, and the report highlights and dives these possibilities.

To access the report, click here: (go.bitfinex.com/market-inclusion-report)

About Bitfinex Securities

Founded in 2021, Bitfinex Securities seeks to apply the technological benefits of the digital asset industry to the global capital market. Through real-time settlements, 24/7 trading, access to global liquidity, and the ability to independent assets, Bitfinex Securities allows for more efficient, cheaper and easier interactions between investors and issuers.

Bitfinex Securities Media Contact Information

Email: (Protected Email)

]]> https://earlybirdsinvest.com/bitfinex-securities-market-inclusion-report-unveils-challenges-and-opportunities-for-latam-capital-market/feed/ 0 54230 https://earlybirdsinvest.com/dcg-sues-genesis-over-promissory-note-debt-amid-bankruptcy-challenges/ https://earlybirdsinvest.com/dcg-sues-genesis-over-promissory-note-debt-amid-bankruptcy-challenges/#respond Sat, 16 Aug 2025 06:53:09 +0000 https://earlybirdsinvest.com/dcg-sues-genesis-over-promissory-note-debt-amid-bankruptcy-challenges/

Digital Currency Group (DCG) has sued its lending subsidiary Genesis, asking a bankruptcy court to confirm it is owed more than $105 million plus interest on a financial backstop extended during the 2022 crypto downturn.

The case, filed on Aug. 14 in the U.S. Bankruptcy Court for the Southern District of New York, centers on a $1.1 billion promissory note DCG issued to Genesis after the implosion of hedge fund Three Arrows Capital (3AC).

According to the complaint, 3AC, one of Genesis’s largest borrowers, defaulted on a $2.36 billion margin call in mid-2022, creating a significant deficit in Genesis Asia Pacific’s equity, a DCG-owned entity.

DCG said it injected the note “voluntarily” to stabilize the business, but argued that when crypto markets rebounded, Genesis profited from collateral tied to 3AC far beyond the note’s original value. Those gains, it contends, reduced the principal balance and now leave $105 million outstanding.

In a statement, DCG said it “took extraordinary efforts” to keep Genesis afloat in 2022 and simply wants the court to “confirm” repayment status.

The filing adds another dispute to the strained relationship between the two companies. Earlier this year, Genesis’s litigation oversight committee sued DCG, its CEO Barry Silbert, and other executives, alleging that billions of dollars were wrongfully taken from the lender in 2022.

Genesis, one of several high-profile firms to collapse in the wake of the FTX bankruptcy, halted lending in late 2022 and filed for Chapter 11 protection in early 2023.

It emerged from restructuring last year and began distributing roughly $4 billion to creditors, with recovery amounts varying by asset type. As an equity holder, DCG is among the last to be repaid and has challenged parts of the bankruptcy plan.

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I was reading about Bluetooth Low Energy, which led to the idea of running Lightning nodes completely offline. From there, I began to wonder:

• Are there any existing proposals or positive discussions regarding the air-gapped Lightning Network?
• What technical challenges did people identify when making lightning work with BLE/Wi ‑ Fi mesh?
• Can someone point out that I study or contribute to papers and implementation experiments related to me?

PS: I’m not used to Lightning Network at all, so I might have overlooked aspects that contradict the idea of an air-gapped setup. If so, apologise!

Those numbers show how much these tokens fuel trades, loans and cross-border transfers. Yet questions about whether they really count as “money” are now front and center.

Stablecoin On-Chain Traffic

Based on reports, stablecoins have become the workhorses of crypto trading. Volume hit 35 trillion in the last 12 months. At the same time, their circulating supply stayed at 194.6 billion.

That steady supply suggests tokens like USDC and USDT are parked, ready for the next move. Traders shift them in and out of Bitcoin and altcoins. Payment platforms weave them into digital rails. The scale is hard to ignore.

IMF Deputy MD Raises Money Question

According to IMF Deputy Managing Director Bo Li, the big challenge is classification. Are stablecoins part of M0, M1 or a new category altogether? He posed those questions at the 2025 World Economic Forum in Davos.

Getting that wrong could reshape how banks set reserves and how regulators cut red tape. Li also pointed out that policy experiments are popping up all over. Some of them may not survive a real stress test.

Key Takeaways: IMF’s Bo Li said regulatory uncertainty around stablecoins persists, especially regarding classification and enforcement. Global financial bodies are working to align frameworks but… https://t.co/V75hFYV5pX #Stablecoin #Cryptocurrency #IMF #Regulation #Finance

— Entrepreneur_cm (@entrepreneur_cm) June 25, 2025

National Rules Diverge

Based on policy outlines, the US is moving ahead with the GENIUS Act. Europe has drafted its own rulebook. Over in Asia, Hong Kong plans to roll out its Stablecoin Ordinance in August 2025.

Those efforts show a strong push to make rules more clear. But they also underscore a lack of global unity.

Businesses could face one set of rules in New York, another in Brussels and a third in Hong Kong. That patchwork approach risks adding costs for firms and confusion for users.

Global Bodies Seek Cooperation

According to Bo Li’s remarks, fragmented rules carry real risks. He warned that gaps in enforcement might let bad actors slip through.

To avoid that, the IMF is teaming up with the Financial Stability Board and the Basel Committee. Their goal is to craft more consistent guidance. If they pull it off, regulators in different countries might follow a shared playbook rather than compete by cutting corners.

Market Keeps Growing

Based on market data, stablecoin supply has now topped 250 billion. A large share of that capital is parked in Bitcoin, waiting for the next rally. Some analysts spot chart patterns that echo early altcoin breakouts.

That could signal a fresh surge of trading across tokens once confidence builds. For now, stablecoins sit at the center of crypto plumbing.

Featured image from Unsplash, chart from TradingView

The impact of the digital revolution has been felt across all parts of the world. One of the best examples of the expanding influence of technology on the world is the adoption of cryptocurrencies. The unique virtual assets have not only transformed conventional financial landscapes but also introduced new benefits in financial transactions.

As developed nations continue to struggle with embracing cryptocurrencies, the rising rate of cryptocurrency adoption in developing nations presents promising news for the crypto market. Is the accelerated adoption curve in developing countries due to speculative trading of cryptocurrencies? Let us find out the answer by unraveling the opportunities and challenges associated with adoption of cryptocurrencies in developing economies.

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Opportunities for Developing Nations in Adoption of Cryptocurrencies

The primary reason for growing adoption of cryptocurrencies in developing nations revolves around the resolution of formidable economic problems. The economic reality of developing nations is the biggest factor that drives cryptocurrency adoption. 

The traditional financial systems in developing countries have to face issues of limited accessibility and inefficiencies. On top of it, the volatility of economic conditions in developing countries also creates a formidable challenge for citizens. The following points can help you understand the opportunities for crypto adoption in developing countries.

• Addressing the Problems of Financial Inclusion 

One of the biggest problems that cryptocurrencies aim to solve in developing countries is financial inclusion. It is one of the prominent answers to “What is the role of cryptocurrencies in developing economies?” as most of the population in developing countries cannot access basic financial services. The exclusion comes from different factors such as strict onboarding requirements, geographical barriers and higher transaction fees. Cryptocurrencies can overcome these hurdles as they need only a smartphone with internet connection. With cryptocurrencies, citizens of developing countries can create a bank account in their phone and store, send or receive money digitally.

Cryptocurrencies can enable people in developing countries to become a part of the gradually expanding digital economy. Global institutions such as the World Bank have reported a positive correlation between higher rates of Bitcoin adoption and enhanced financial inclusion in developing countries. The best example of growing financial inclusion through cryptocurrencies is visible in Sub-Saharan Africa. In 2021, only 49% of the adults had a bank account in different parts of the region. On the contrary, the rise of crypto adoption in countries like South Africa, Nigeria and Kenya has presented a useful alternative to traditional banking.    

• Simpler Remittances and Cross-Border Payments

Remittances are an integral part of the economy in developing countries as they are the money sent by migrant workers to their families. Traditional remittance services charge exorbitant fees and have extremely slow processing times with payments taking days or even weeks to complete. The inefficiency of traditional international payment systems has a negative impact on the citizens of developing countries who rely on cross-border money transfers. 

Cryptocurrencies can offer the ideal solution to the inefficiencies in cross-border payment systems. Cross-border payments are one of the biggest reasons for crypto adoption in the world as cryptocurrencies offer more cost-effective, secure and faster solutions for international money transfer. Blockchain technology can facilitate almost instant transactions with considerably lower fees than traditional banking systems. Kenya and Nigeria are the two prominent examples of using cryptocurrencies for cross-border payments. The benefits of crypto adoption in Nigeria have helped in facilitating faster money transfer in urban as well as rural areas.

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• Boosting Small Businesses and International Trade

Developing countries can achieve economic growth on the shoulders of their small and medium-size enterprises or SMEs and international trade. The traditional banking systems hold back the growth of developing economies in these areas with various inefficiencies. Cryptocurrencies can solve the problem by empowering businesses to accept payments from customers anywhere in the world. 

Crypto adoption will also help business owners gain access to the services of international suppliers. Small businesses can also use cryptocurrencies to bypass the costs and complexities that come with international banking. As a result, businesses in developing countries can promote economic growth and expand their market presence. On top of it, the immutability of crypto transactions on blockchain helps in ensuring accountability and fighting against corruption prevalent in traditional systems of developing countries.

• Safeguards against Inflation and Currency Devaluation 

Among the many problems of developing nations, the persistent inflation exerts the maximum impact. It can lead to faster depletion of savings and purchasing power of citizens. You can notice crypto adoption opportunities in developing nations where local currencies go through drastic devaluation due to political instability, external shocks or economic mismanagement. The only effective solution in such unstable environments points at assets which can serve as stable store of value.

Cryptocurrencies can offer a promising alternative for hedging against inflation and currency devaluation. While cryptocurrencies like Bitcoin can serve as a hedge due to their finite supply, stablecoins are the better option. Stablecoins are pegged to stable assets like the US Dollar, thereby offering a predictable anchor during inflation. Businesses and individuals in developing nations can use stablecoins and other cryptocurrencies to safeguard their health from inflation and relentless currency devaluation. Argentina and Turkey are the two examples of countries that have witnessed rising cryptocurrency adoption to fight against inflation and currency devaluation.   

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Challenges for Crypto Adoption in Developing Nations

The diverse array of opportunities for crypto adoption in developing nations showcases that the world may witness large-scale adoption of cryptocurrencies in the next few years. At the same time, you should also acknowledge the crypto adoption challenges that might create setbacks for embracing cryptocurrencies. The following challenges will be the biggest barriers to the adoption of cryptocurrencies in developing economies.

• Consumer Protection from Price Volatility

The multiple advantages of cryptocurrencies for developing countries overshadow the fact that the price of crypto asserts is extremely volatile. The price fluctuation in short periods can make anyone think twice about adopting cryptocurrencies as a reliable medium of exchange or store of value. Crypto price volatility can lead to substantial financial losses, which are alarming in developing nations where people have limited financial resources. 

The limited regulatory oversight along with the immaturity of the crypto market in developing nations exposes citizens to various risks. For instance, fraud, exchange breaches or scams indicate that users don’t have any robust protection mechanism. In the event of loss or crypto fraud, citizens in developing nations will have no one to turn to.

• Technological and Infrastructure Concerns 

The existing state of cryptocurrency adoption in developing nations has been shaped by the availability of smartphones and internet connectivity. However, the lack of adequate digital infrastructure and reliable internet connectivity in various areas of developing nations create challenges. The impact of these challenges holds back many users from participating in the crypto space to access digital wallets or complete cross-border transactions. On top of it, many people in developing countries don’t have the fundamental knowledge required to use cryptocurrencies.

Another formidable infrastructure concern associated with crypto adoption is the energy-intensive cryptocurrency mining process. Developing countries that are struggling with power supply can have to face dire environmental challenges with increased crypto adoption. Furthermore, the increased energy demand in crypto mining operations can also drain the national resources of developing economies.

The biggest challenge to crypto adoption in developing countries emerges in the form of regulatory uncertainty. Governments of developing countries don’t have clear or consistent regulatory frameworks, especially for crypto governance. As a result, the legal framework for cryptocurrencies in developing nations is all about patchwork of different approaches. The regulatory uncertainty creates doubt in the minds of individuals, businesses and investors, thereby restricting institutional interest and mainstream adoption. 

Regulatory uncertainty also affects crypto adoption in the world due to the negative impact of unprecedented policy changes. Another notable theme associated with regulatory uncertainty for cryptocurrencies is their borderless and decentralized nature. The governance or regulation of cryptocurrencies at a national level stands against the core principles of cryptocurrencies. Excessive intervention of the government in crypto regulations can lead to issues of terrorist financing and money laundering.

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How Should Developing Nations Adopt Cryptocurrencies?

Developing nations can capitalize on the benefits of cryptocurrencies by creating frameworks to make the most of opportunities and resolve challenges. The strategic approach for crypto adoption in developing economies must focus on establishing clear and dynamic regulatory frameworks for crypto usage. Developing nations should invest in digital infrastructure, such as internet connectivity in rural areas, and promote financial literacy to encourage citizens to use cryptocurrencies effectively. Most important of all, developing countries must always foster innovation to craft unique solutions to the problems of citizens with cryptocurrencies.

Final Thoughts 

The adoption of cryptocurrencies in developing nations represents a major milestone in the domain of global finance. The emphasis on crypto adoption opportunities such as enhanced financial inclusion, efficient international transactions and hedging against inflation should not undermine the challenges of crypto adoption. Developing countries like Kenya and Nigeria have taken the first steps in crypto adoption on a large scale with success. At the same time, the lack of definite frameworks for working with cryptocurrencies might lead to trouble in the long run. Learn how to follow the expert recommendations for cryptocurrency adoption according to your requirements.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!