Circle CEO Reveals Vulnerabilities In USA’s Banking System: Are We Out Of The Woods?
Throughout the past few months, the financial sector has been in absolute chaos. The Silicon Valley Bank’s failure and subsequent closure by US regulators served as the catalyst for the event. After then, Signature Bank saw a similar end. The demise of Silicon Valley Bank had repercussions for Zurich-based lender Credit Suisse. Credit Suisse’s stock struck a new low during the first session of trading on the Swiss stock exchange.
The Federal Reserve unveils Bank Term Funding Program and the U.S. Treasury guarantees closed banks’ deposits.
Jeremy Allaire’s thoughts on the crash
The CEO of Circle, Jeremy Allaire recently discussed the irony of a traditional bank shaking up the larger crypto business.
In a recent interview with CNBC, Allaire told while talking about the recent crash mentioned that there is the most solid infrastructure possible for USDC, and it’s somewhat ironic that there has been a lot of talk of protecting the banking system from crypto, here the situation is such that a digital dollar needs protection from the banking system.
Even though Jeremy Allaire applauded the Federal Reserve and the US government for their $25 billion funding scheme to help banks like SVB that were having liquidity problems, he still believes the scenario Circle found itself in to be extremely exceptional.
Notwithstanding USDC’s slight reversion to its dollar peg, he indicated that Circle was ready to step in and use its corporate balance sheet if necessary to control the current upheaval.
Is the collapse over?
There are many different perspectives revealed by a review of recent events and potential outcomes of the closure of SVB and, to a lesser degree, the failure of the smaller Signature Bank of New York. Some contend that the crisis has passed its worst while others assert that the breakdown exposed systemic issues.
Bill Ackman, the founder of Pershing Square, predicts that more banks will fail despite US government intervention to restore trust in the financial system in the wake of Silicon Valley Bank’s failure.
Following the failure of Silicon Valley Bank, the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corp. rushed to allay concerns about the stability of the country’s financial system on Sunday. They pledged to fully protect all depositors’ money while also granting any banks struggling with liquidity easier terms on short-term loans.
Expert Who Sold Bitcoin at $25,000 Reveals His Future BTC Strategy
Crypto analyst DonAlt, who rode the Bitcoin rally from its 2022 bottom, has updated his outlook on the digital asset. In a recent video, he revealed that he would become very bullish on Bitcoin if it falls to the $19,000 – $20,000 support level. According to DonAlt, Bitcoin could rise to $35,000 if it manages to break above the $23,500 resistance level. He believes that the bottom for Bitcoin is around $16,000, and the sanest play is to buy the reclaim of $23,000.
BTC Price Prediction
The strategist suggested that the $19,000-$20,000 range would turn him “very, very bullish” on the flagship cryptocurrency. DonAlt is taking the loss along with everyone else as he sold the top at $25,000 and re-bought it at $23,000. He sees a good resistance at $22,000, $23,000, and $23,500, and if it breaks that resistance, the next target is $35,000.
CryptoQuant’s Analysis
CryptoQuant analysts believe that rising selling pressure from BTC miners, alongside other factors influencing the asset, could push Bitcoin to either $19,500 or $16,600. Technical experts identified a volume gap between the $19,500 and $16,600 levels, and accordingly, analysts believe it could be a challenge for Bitcoin to find a local bottom in intermediate zones.
The analyst suggested that a good buying opportunity for Bitcoin would present itself if BTC retraces back above $23,000. He thinks that the most lucidplay is actually buying the reclaim of $23,000 as it will only marginally be the worst price, and it has the potential to rise up to $30,000 plus. This would allow room to grow and reduce the risk of playing aggressively.
Factors Affecting Crypto Prices
The current uncertainty in cryptocurrency prices is driven by Fear, Uncertainty, and Doubt (FUD) from Silvergate’s voluntary liquidation, macroeconomic outlook, KuCoin hit by a lawsuit, and Huobi Token’s flash crash, among others. The market has been experiencing a volatile period in the last two months, and traders and investors alike are trying to make sense of the fluctuating prices.
Bitcoin was worth $19,739 at press time.
Ripple Vs SEC: Lawyer Reveals Shocking Details From Judge’s Ruling on Testimony Admissibility
A securities law expert has shared key insights into the recent ruling by the presiding judge on the admissibility of expert testimony in the ongoing legal dispute between Ripple Labs Inc and the US Securities and Exchange Commission (SEC).
Judge’s Credibility Spotlighted
According to the Twitter user @MetaLawman, who claims to have handled a number of securities cases in the Southern District of New York, the judge has an excellent grasp of XRP and the technology that underpins it. He praised the judge’s “excellent command of the legal issues, claims, and defenses in the case.”
The law veteran believes that the judge’s rulings on admissibility are legally sound and that they are unlikely to be disturbed on appeal. However, given the high stakes of the case, it is expected that the decision will be appealed regardless of the outcome.
The judge sustained Ripple’s objection to expert testimony that the SEC wanted to offer about the intentions of XRP purchasers. This is a setback for the SEC because the reasonable expectations of purchasers are a component of the Howey test for defining an investment contract.
SEC’s Objections Overruled
On the other hand, the judge overruled the SEC’s objections to expert testimony that XRP is not treated as a security in the IRS code, that it should not be treated as a security under Generally Accepted Accounting Principles (GAAP), and that it has “commercial utility” in several use cases. These concepts are simple and easily understood by jurors.
According to the law expert, these rulings were a net positive for Ripple and XRP holders. However, he acknowledged that it doesn’t necessarily mean that Ripple will win the case on summary judgment.
Summary Judgment Win for SEC Unlikely
Despite this, the expert believes that the judge’s rulings make a summary judgment win for the SEC unlikely, given the extensive legal analysis of claims and defenses that went into these rulings.
Brad Garlinghouse, CEO of Ripple, took a swipe at the SEC, reacting to recent setbacks the agency has taken since Monday. The SEC has suffered three setbacks in court this week, including the Ripple case.
Garlinghouse tweeted, “It’s only Tuesday, but shaping up to be a not-so-great week for the SEC (this ruling, Voyager, Grayscale).” He was referring to recent developments that have gone against the SEC, including the recent ruling in the Ripple case.
As the legal battle between Ripple and the SEC continues, experts are closely analyzing every development in the case. The recent ruling on the admissibility of expert testimony is seen as a net positive for Ripple, but the outcome of the case is far from certain. The judge’s extensive legal analysis of claims and defenses suggests that a summary judgment decision may be imminent.
Ripple Advisor Reveals Updates on Private XRP Ledger and CBDC Projects
As Ripple nears its final decision, it continues to make headlines. Every other day, there have been updates. Since the beginning of the case, the XRP community has been kept in the loop. A few individuals, such as former federal prosecutor James K. Filan, founder of CryptoLaw John Deaton, and Ripple’s general counsel Stuart Alderoty, have informed the community at each stage of the litigation. Priority has been given to transparency with the community.
Antony Welfare, author and CBDC advisor at Ripple, has something to say about the XRP case. Let’s explore.
Ripple Advisor throws light on Private XRP Ledger and CBDC Projects
Anthony Welfare, the senior adviser for CBDC and international relationships at Ripple, has thrown light on the company’s alleged “state cryptocurrency” efforts. Projects being planned with Bhutan and Palau are currently at an advanced level.
According to the Ripple adviser, private versions of XRP Ledger are being utilized to work on these and other CBDC or stablecoin projects. When asked if XRP could be utilized as a bridge currency for CBDC trades between states’ private networks, the advisor did not respond directly. Nonetheless, he asserted that any subsidiary XRPL chain may be connected to the primary one, making all CBDCs “cross-border.”
How does XRPL work?
XRP Ledger is a decentralized platform enabling peer-to-peer asset transfer. A consensus mechanism certifies network connections, allowing the network to be extremely fast and secure. It implies that you can utilize the Ledger and build on it fast and easily without having to rely on various third-party solutions for coding, hashing, and compiling. You may create dApps and DeFi solutions, launch newer tokens and encourage newer, quicker transactional methods.
Private XRP and XRPL
Some members of the community have charged Ripple management with developing and utilizing private XRPL chains as well as the existence of a unique private form of XRP. Doubters assert that the cost of this private XRP is more than the market pricing for the coin. Former Ripple director of developer relations Matt Hamilton further refuted this theory.
The creator claims that there is only one XRP and that it is exclusively on the main chain, despite the existence of private XRPL chains for CBDC and stablecoin initiatives. Hamilton came to the conclusion that private XRP might either exist in a totally isolated system or that its price would be regulated by market forces.
To conclude,
They have had a lot of questions. Some speculate that it will take a long time for XRP prices to rise and wonder if it is sensible to dump it. Some have speculated on what all of this implies and what it means for the investor.
Crypto Analyst Reveals This Could Trigger Bitcoin’s Next Big Breakout
The largest cryptocurrency by market capitalization, bitcoin (BTC), hit its highest point since August earlier this month. Bitcoin, however, fell after The US Commerce Department reported that personal consumption expenditures (PCE) price index data rose by an unexpectedly strong 5.4% in January.
Bitcoin is still holding above the $23,000 psychological mark for bulls. A green close and a short-term victory for the bulls are possible as BTC approaches the monthly close well above $23,000.
A popular cryptocurrency analyst has revealed what he believes could lead to the next Bitcoin rally. According to analyst Michael van de Poppe, Bitcoin is likely to dip below $23,000 after failing to overcome resistance above $23,800 during yesterday’s rally. He believes that if Bitcoin is able to regain support at $23,000 following its expected drop, it might spark a recovery to $25,000.
The analyst said that he will be considering the above-mentioned scenario right now for Bitcoin. BTC rejecting the vital $23,800 level would mean that the support would be put to another test.
Van de Poppe is also expecting a short-term retrace for Bitcoin, but he is still positive about the long-term prospects of the cryptocurrency markets. The analyst thinks that cryptocurrency is simply consolidating before the next leg up after taking into account the total valuation of all digital assets.
The overall market value of cryptocurrencies is still painting a clear image, according to him. The analyst said that 2017 saw a retest of the all-time high when BTC retested the bottom twice.
“Simplified, there’s still room for crypto to continue the rally in Q2 of this year, as we’ve had a significant amount of intrinsic shocks in the markets past year. Max pain scenario is upwards, not downwards. Positioning myself into longs and buying the dip, patiently.”
XRP Lawyer Exposes SEC’s Crypto Custodian Shake Up – Reveals Shocking Hidden Agenda!
On February 15, the United States Securities and Exchange Commission announced proposed rule changes to enhance protections of customer assets managed by registered investment advisers. According to the proposed rules, investment advisers are expected not to inappropriately use, lose, or abuse investors’ assets.
The SEC responded to the FTX and Alameda collapse that lost over $8 billion of investors’ capital. According to the SEC, the rule change is to ensure client assets are appropriately segregated and held in accounts to protect the assets in the event of a qualified custodian bankruptcy.
As a result, the SEC wants to have surprise audits on investment advisors by independent public accountants to verify client assets.
Effect of SEC Proposed Crypto Custody Rules
With the new proposed rules, market analysts have indicated that the SEC intends to help big players get a significant industry share. Moreover, the Biden administration signed a crypto executive order last year to ensure United States fintech companies have a competitive edge in the global markets.
Already licensed custodians in the United States, including Coinbase and Gemini, are expected to benefit from the rule change. Traditional banks are expected to catch up as they contend to get crypto custodian licenses.
The proposed SEC custodian rule change will severely affect crypto exchanges without a banking license. This is evident with the hit on Kraken for issuing unregistered securities through its staking program.
The change is, however, not welcomed by all who think it is terrible for small players in the market.
“If the SEC changed the rules so only qualified custodians can hold crypto for others, then it sets up a new gatekeeping system where the only custody solution is regulated banks,” said Maya Zehavi, a cryptocurrency angel investor.
Ripple Lawsuit: Top Crypto Attorney Reveals the SEC’s Only Hope for a Win
Crypto attorney John E. Deaton has predicted that the U.S. Securities and Exchange Commission (SEC) will only succeed in establishing that the blockchain payments firm Ripple sold XRP as a security from 2013 to 2017 in the ongoing legal battle between the two parties.
Deaton Says Ripple Will Not Be Ordered to Pay Disgorgement in SEC Case
Deaton is currently representing more than 75,000 XRP holders as a friend of the court in the case. In a series of tweets on Feb. 15, the attorney argued that the SEC is pursuing an “all-or-nothing” approach, which includes targeting past, present, and future XRP sales.
Deaton believes that, as a result of the SEC’s approach, the only victory that the agency could hope to achieve is to establish that Ripple offered XRP as an unregistered security during the period between 2013 and 2017.
According to Deaton, if this is the case, the SEC would likely not secure an injunction or disgorgement but only a fine. However, the attorney also noted that he believes the likelihood of a jury trial is higher than what most people believe.
The lawyer has previously argued that a jury trial is still possible in the Ripple case. He contends that the judge could deny both summary judgment motions, citing the existence of a genuine issue of material facts regarding the existence of a common enterprise. This argument, if accepted by the judge, would prevent a quick judgment in favor of the SEC or Ripple.
The SEC filed a lawsuit against Ripple in December 2020, alleging that the company had sold XRP as an unregistered security, thereby violating federal securities laws. The case has since taken several twists and turns, with Ripple filing a motion to dismiss the case, arguing that the SEC had failed to provide sufficient evidence that XRP is a security.
The outcome of the case is being closely watched by the cryptocurrency industry, as it could set a legal precedent for other cryptocurrencies that are currently in regulatory limbo. Despite the legal challenges, XRP has continued to receive love from investors.
Top Crypto Lawyer Reveals the Biggest Danger to Ripple in SEC Lawsuit
John Deaton, a prominent member of the cryptocurrency legal community and an advocate for XRP, has identified the primary risk that Ripple faces as a result of the SEC lawsuit.
This observation comes as the whole cryptocurrency world continues to follow the development of the Ripple-SEC case. Deaton’s remarks were made in response to a tweet about the Howey test made by crypto enthusiast Mr. Huber, who goes by the handle @Leerzeit.
What Deaton Says
A statement that Mr. Huber made was related to the Howey test. He said that it did not matter if some of the investors elected to hire services other than those offered by Howey-in-the-Hills to care for the groves since section 5 prohibits the offer of unregistered securities as well as the sale of such securities.
Therefore, the breach of section five entails not only the selling of unregistered securities but also the offering of such securities for sale. According to Deaton, the possibility that Ripple faced the most risk in the SEC complaint was due to the fact that the company had sold unregistered securities.
The Howey Test, established by a landmark Supreme Court decision in 1946 and mentioned in the SEC complaint against Ripple, defines the conditions for assessing whether a financial arrangement qualifies as an investment contract and so is subject to federal securities legislation.
Deaton’s words were:
“I’ve said this is the biggest danger to Ripple. I actually predicted it would be the focus of the SEC’s motion for summary judgment. The SEC argued it it but not as much as I predicted. The SEC didn’t go transaction by transaction on sales, so the ‘offer’ is the biggest danger.”
In related developments, the Financial Supervisory Service (FSS) of South Korea is apparently keeping an eye on the legal dispute between the SEC of the United States and the cryptocurrency startup Ripple (XRP). The Ripple lawsuit has the potential to alter how crypto assets are categorized throughout the globe significantly.
Genesis Reveals Strategy to Repay Creditors After Declaring Bankruptcy
Bankrupt cryptocurrency broker Genesis has filed plans detailing how it will repay its creditors. According to a recent filing, the parent company of Genesis, Digital Currency Group (DCG), has agreed to transfer its equity in Genesis Global Trading to Genesis Global Holdco. The eventual goal is to sell both companies and repay clients who were impacted by the bankruptcy.
Genesis served as the primary lending partner of New York-based cryptocurrency exchange, Gemini, but went bankrupt and owes users of the high-yield savings product, Gemini Earn, $900 million. The announcement of the agreement between Gemini, Genesis Global Capital, and Digital Currency Group was made earlier this week by Gemini co-founder Cameron Winklevoss on Twitter.
The interim CEO of Genesis, Derar Islim, stated that the company is moving closer to resolving its lending business and maximizing value for all clients and stakeholders. The agreement in principle was reached with two groups of ad hoc creditors, including Gemini Trust Co. and DCG.
Previously, users of Gemini were able to earn cash through their cryptocurrencies via Genesis, but the company had to halt withdrawals in November after digital asset exchange FTX went bankrupt. Genesis had approximately $175 million in exposure to FTX and unsuccessfully sought a $1 billion bailout from investors before filing for bankruptcy.
Gemini will contribute $100 million
As part of the plan, Cameron Winklevoss announced that Gemini Trust Co. will contribute up to $100 million more for Earn users. Gemini had partnered with Genesis to offer the Earn yield product until November 16, when Genesis announced it was halting its lending business, affecting the access of Gemini Earn customers to their funds.
The restructuring and sale of the crypto trading business and lending arm of Genesis are expected to maximize recoveries and provide stability to its customers and partners. This recent filing provides hope to the affected parties that a resolution to the issue is within reach. The outcome of the plan remains to be seen, but it is a positive step towards resolving the financial difficulties of Genesis and repaying its creditors.
BitMEX Founder Predicts Altcoin Explosion, Reveals He’s the Biggest Holder of This Cryptocurrency
While the cryptocurrency market is currently experiencing new twists and turns, the fate of altcoins is still unknown. According to BitMEX founder Arthur Hayes, the top two crypto assets by market cap will determine whether or not altcoins will see a parabolic rally. In a recent blog post, he said that cryptocurrencies will experience a sharp increase if Bitcoin (BTC) and Ethereum (ETH) maintain their current trends.
He wrote, “If Bitcoin and Ethereum continue to rally, there will definitely be a shitcoin vertical that goes bananas over the next few months. First the crypto reserve assets rally — that is, Bitcoin and Ethereum. The rally in these stalwarts eventually stalls, and then prices fall slightly. At the same time, the shitcoin complex stages an aggressive rally. Then shitcoins rediscover gravity, and interest shifts back to Bitcoin and Ethereum.”
According to Hayes, even though he missed the opportunity to invest in Bitcoin during its low in 2022, he is currently allocating a portion of his portfolio towards the cryptocurrency, expecting a future price increase due to increasing market liquidity. He mentioned that a part of his investments did not participate in the recent rally of Bitcoin, which was fueled by the anticipation of further monetary easing.
However, he said that it doesn’t mean he should refuse to participate in the next part of the rally, which will be driven by the flows out of Reverse Repo Agreements and the spending of the TGA [U.S. Treasury General Account].
Earlier in a tweet, Hayes claimed that he is the largest holder of LOOKS tokens, holding over 17 million of them (worth $5.14 million). The community has taken notice of Hayes’ intriguing token holding.
The native, fungible token of the community-focused LooksRare protocol, an NFT marketplace that actively compensates producers and traders for participation, is LOOKS. The staking of LOOKS tokens generates all of the platform trading fees for LooksRare.
David Gokhstein Reveals Plans To Re-Enter The Crypto Meme Market
Meme currencies have been around for a while, but they have often come under fire for being volatile, unstable, and unreliable. The most recent is by Solodity.io CEO McCurry, who has dubbed Dogecoin and other dog-inspired coins garbage, and Steven Cooper, who claims it is a cheap token used to entice people to invest in dubious spinoffs.
Additionally, it appears that these currencies are highly sensitive to the personal opinions of individuals like Elon Musk. Nevertheless, some people continue to think that these coins have potential.
Let’s explore.
David Gokhstein considering investing in meme-coins
David Gokhshtein, a crypto enthusiast and the founder of Gokhshtein Media, which reports on the industry’s news and events, announced on Twitter that he is seriously considering purchasing meme coins once more. He also congratulated BabyDoge, a well-known meme coin, on reaching a significant milestone.
David declared in a tweet that he is “so close to jumping into meme coins again.” It should be mentioned that the crypto enthusiast already has a sizable amount of the two biggest meme tokens in terms of market cap, Shiba Inu (SHIB), and Dogecoin (DOGE).
Gokhshtein has supported SHIB particularly recently and for the entirety of last year. He predicts that Shiba Inu’s value would soar during the upcoming crypto market bull run.
Gokhstein Has Earlier Urged SHIB to hit a penny
This is a contrast to what he had said earlier, in the comment thread of another of his recent tweets. He stated that the bulk of his followers would not make good use of $10,000 in cryptocurrency and someone jokingly rebuked David for having his liquidity stuck in meme coins.
Moreover, he “urged” the popular meme coin earlier this year to spike to the $0.01 level so as to “do him a favor” and let him dump it.
To conclude,
In the cryptocurrency community, there seems to be a broad spectrum of viewpoints on meme-coins. While some are certain that it has potential, others believe it to be absolutely useless.
XRP Price Set to Soar: Analyst Reveals When And How XRP Will Break the $1 Barrier
Ripple’s XRP followed the larger crypto market in the red this morning after a positive Friday session. As there were no new developments in the SEC v. Ripple case to offer guidance, XRP was left in the hands of the broader crypto market.
According to expert Egrag Crypto, XRP might soar to a high of $1.4 if it successfully reverses the current downturn in which the asset has been trapped since May 2021. In its current 21-month slump, XRP has developed a falling wedge pattern (This pattern is a bullish reversal pattern).
The analyst outlined two potential outcomes for the asset at its current price: a drop to $0.22 if the downtrend is maintained, and an increase to $1.4 once the trend reversal takes hold. The last time the price of XRP reached $1.4 was in May 2021.
When the price of an asset is heading downward but the price swings start getting smaller and smaller as they go down the slope, producing a wedge shape, a falling wedge pattern develops. This pattern, which implies that the buyers are taking control and the selling pressure is waning, is regarded as positive since it may portend an increase in price.
Egrag predicts that as XRP begins to see a trend reversal, the price of $1.4 would come into play. He did, however, mention that a crucial resistance level for the asset’s price movement would be the Fibonacci point at $0.786. Notably, XRP’s bullish run to $1.4 becomes significantly more possible if it can overcome the resistance at this level.
Since yesterday’s low of $0.4013, the price of XRP has been rising steadily for the past few days, and it is currently trading at $0.4150. The price has been able to climb above the crucial $0.4126 resistance level thanks to the bulls, and a good close above this level is likely to confirm that the current trend is up.
Expert Who Nailed 2018 Bitcoin Forecast Predicts Epic Rally, Reveals Target Price!
The recent surge in Bitcoin prices is causing excitement among investors, who are comparing it to the second quarter of 2019, when Bitcoin rose from $3,000 to $13,000 in just four months, repeating its two-year bull run. Currently, Bitcoin has risen by 50% from its bottom, leading to growing anticipation of a similar bubble.
A successful crypto strategist who accurately predicted the 2018 Bitcoin surge believes that the reigning cryptocurrency is still in a bull run. He supports this with the use of Elliott Wave theory, a complex technical analysis tool for predicting price behavior based on the psychology of crowds in waves.
According to the theory, there will be five upswings in asset prices, with the five-wave increase in the expert’s graph reaching a maximum of $28,000. The current value of Bitcoin is $23,165.
The expert also has a positive outlook on Ethereum (ETH), the top smart contract protocol. He believes that ETH will break out of a symmetrical triangle pattern and reach $1,900. Ethereum’s price is $1,583 at the moment.
To summarize the analyst outlook on the asset class, both BTC and ETH are in an accumulation phase, and a rally is evident. This means that an “echo bubble,” which is a market recovery that occurs too soon after a previous bubble has burst, isn’t necessarily a bad thing. Investors can profit from echo bubbles, which also boosts market confidence after a big drop. However, it’s important to do your own research and only invest what you can afford to lose.
Expert Who Nailed 2018 Bitcoin Forecast Predicts Epic Rally, Reveals Target Price!
The recent surge in Bitcoin prices is causing excitement among investors, who are comparing it to the second quarter of 2019, when Bitcoin rose from $3,000 to $13,000 in just four months, repeating its two-year bull run. Currently, Bitcoin has risen by 50% from its bottom, leading to growing anticipation of a similar bubble.
A successful crypto strategist who accurately predicted the 2018 Bitcoin surge believes that the reigning cryptocurrency is still in a bull run. He supports this with the use of Elliott Wave theory, a complex technical analysis tool for predicting price behavior based on the psychology of crowds in waves.
According to the theory, there will be five upswings in asset prices, with the five-wave increase in the expert’s graph reaching a maximum of $28,000. The current value of Bitcoin is $23,165.
The expert also has a positive outlook on Ethereum (ETH), the top smart contract protocol. He believes that ETH will break out of a symmetrical triangle pattern and reach $1,900. Ethereum’s price is $1,583 at the moment.
To summarize the analyst outlook on the asset class, both BTC and ETH are in an accumulation phase, and a rally is evident. This means that an “echo bubble,” which is a market recovery that occurs too soon after a previous bubble has burst, isn’t necessarily a bad thing. Investors can profit from echo bubbles, which also boosts market confidence after a big drop. However, it’s important to do your own research and only invest what you can afford to lose.
2023 Developer Report Reveals These Altcoins are Soaring!
Despite the tough bear market, the most active alternative cryptocurrencies in 2022 are shown to be Ethereum, Solana, and Cosmos, with Solana being the fastest-growing ecosystem, according to the most recent developer report published by Electric Capital.
The overall amount of monthly active Web3 developers has increased by 5.4% to more than 23,300 over the course of the last 12 months, despite a near 70% decline in crypto values. This finding lends credence to the idea that bad markets are favorable for developers.
With a growth of 9% to 1,873 full-time developers, Ethereum remains the most popular platform for software creation, surpassing the combined full-time developer counts of Polkadot at 752, Cosmos at 511, and Solana at 383.
However, the number of developers working on networks other than Ethereum is quickly catching up. The Cosmos and Solana networks had increases of 34% and 36%, respectively, while Starknet saw a growth of 214% in the number of developers, making it one of the mid-sized ecosystems that made a successful run in 2022.
Moreover, both NEAR and Polygon have grown by more than 40 percent year over year and have more than 500 total monthly active devs. Sui, Aptos, Starknet, Mina, Osmosis, Hedera, Optimism, and Arbitrum all had growth of more than fifty percent year over year and now have one hundred or more total monthly active developers.
Every month, 3,901 developers work in DeFi across several chains; this number has increased by 240% since the summer of 2021. Half of the DeFi developers work on the project outside of the Ethereum ecosystem. Over 900 engineers are contributing code per month to NFTs across all chains, an increase of +299% since 2021.
Crypto Lawyer Reveals Flaws In SEC’s Confrontational Approach To Digital Assets
It is widely acknowledged that the Securities and Exchange Commission (SEC), particularly under the leadership of Chairman Gary Gensler, has a negative stance toward cryptocurrencies.
John Deaton, a lawyer specializing in digital currencies and the founder of Crypto Law, has highlighted the SEC’s confrontational actions against cryptocurrencies and their issuers, which appear incongruous when compared to the agency’s attitude in the recent past.
Deaton Sheds Some Light
John Deaton has highlighted the inconsistencies in the Securities and Exchange Commission’s (SEC) approach toward cryptocurrencies. He began by referencing William Hinman’s well-known “Hinman speech” in which he argued that a digital asset marketed as an investment to non-users by promoters to develop the enterprise, can be, and most often is, security.
Deaton stated that in this context, XRP does not fit the definition of security, yet the SEC is suing Ripple, the issuer of XRP, for it. The Hinman documents run counter to the SEC’s whole argument and have been a constant source of contention in court. Despite this, Chairman Gary Gensler has repeatedly said that Hinman’s view has nothing to do with the SEC, yet they still do not want the documents revealed for “some” reason.
Deaton also pointed out that according to the SEC’s 2019 Framework for Digital Assets, a cryptocurrency is unlikely to pass the Howey test if it can be used to make instant payments in a broad range of situations or operates as a replacement for fiat currency. It’s worth noting that SEC employees could legally buy and sell XRP up to April 2019.
He said: “On this info alone – even if you hate Ripple – you realize how screwed up and all over the place the SEC’s approach to crypto has been.”
XRP’s Current Performance
As of this writing, XRP has had a nearly 10% gain over the previous week. Despite the ongoing litigation between the Securities and Exchange Commission (SEC) and Ripple, the network has still achieved several major milestones.
Many in the cryptocurrency industry, including Ripple CEO Brad Garlinghouse, believe that the company will ultimately emerge victorious. John Deaton, a lawyer specializing in digital currencies, claims that if Ripple does not win, it could have a negative impact on other crypto assets and platforms as well.
Ripple CEO Reveals $10Mn Exposure To Bankrupt FTX Exchange
While Ripple’s conflict with the SEC persists, it appears that it has also encountered other issues. Let’s see what’s new with Ripple.
Ripple CEO reveals exposure to FTX!
In a recent fireside discussion on CNBC’s Tech Transformers at Davos, Ripple CEO Brad Garlinghouse revealed that the blockchain payments company had exposure to FTX. He disclosed that Ripple leased around $10 million in XRP to the now-defunct crypto exchange.
He said, “… we did have some exposure to FTX,” the Ripple chief said. “I think … we’ve publicly shared before there’s around just over $10 million of XRP we had leased to FTX that they use for various things on FTX… I’m hopeful that through the bankruptcy process, we get some or all of it back but uh it’s not too consequential to the business.”
Last November, FTX and over 130 companies filed for bankruptcy protection after a bank run exposed an estimated $8 billion hole in its balance sheet. In just 24 hours, the company’s value fell from nearly $32 billion to $1.
Ripple frequently gives short-term XRP leases to market makers and XRP participants for sales. These leases are typically returned to Ripple. Given Sam Bankman-alleged Fried’s fraud, the Ripple CEO stated that it is unclear what the company will receive from the lease. Only 1% of Ripple’s liquid assets were represented by the XRP lease.
The crypto community reacts
This statement that Ripple has had some contact with FTX has drawn attention from the community. While some of them point out lies and remind of earlier statements by Ripple where they have claimed that they have never had any exposure, others offer explanations by stating that they do to market makers to ensure orderly trade and liquidity.
Back in November 2022, it was reported that former FTX CEO Sam Bankman-Fried called him two days before the company filed for bankruptcy, the CEO of Ripple claimed that they discussed whether there were any FTX-owned companies that Ripple “would want to own” during the call.
All these interactions between the two companies have raised eyebrows, especially after Garlinghouse claimed that Ripple’s exposure to FTX has been limited.
Ripple Vs SEC Update : SEC Rejects Third Party’s Request To Redact Information, Atty. James Filan Reveals All!
Brad Garlinghouse, the CEO of cryptocurrency and blockchain business Ripple, believes that a resolution with the US Securities and Exchange Commission would be completed in the first half of 2023. He further added that he is optimistic about where they stand currently with respect to law and facts.
Everyone with an interest in the sector believes that the end is in sight and is closely monitoring all the updates. James K. Filan, a former federal prosecutor, keeps everyone updated.
SEC opposes certain redactions
In a recent tweet, James K Filan, a former federal prosecutor, revealed that the SEC has filed an opposition to Third Party A’s Motion to Redact all references to Third Party A as an entity, as well as Third Party A’s (and Ripple’s) proposed redactions to the names of certain public crypto trading platforms.
Although the identity of Third Party A has been made public in the dispute, the SEC observed that the company is still seeking redactions to 38 of the parties summary judgment filings. The SEC stated that it disagrees with Third Party A’s proposed redactions to the deposition transcript of its employee in 38 of the summary judgment papers.
What are the three categories that the SEC has opposed?
The SEC supports Third Party A’s request to omit the employee’s name and other identifying information, but it opposes three of the proposed redactions adamantly.
Firstly, the agency rejects Third Party A’s request to redact all mentions of the business as an entity. Second, the regulator opposes the redactions to the names of some public crypto asset trading platforms that Third Party A and the defendants propose.
Lastly, the Securities and Exchange Commission opposes the deletion of data from the deposition transcript related to the economics of Ripple’s On-Demand Liquidity (ODL) solution and Third Party A’s function in monetizing the XRP holdings of Defendants.
The SEC’s opposition comes less than five months after Third Party A requested that the court grant its move to modify one of Ripple’s attachments in its application for summary judgement.
What does the community think about this?
Twitter users believe that the SEC’s conduct is suspicious. What the SEC is hiding has been a recurring question. Another person stated that the SEC would ultimately run out of excuses since it always invents new ones. Some have even demanded that SEC Chairman Gary Gensler resign. There is a lot of hate towards the SEC for their statements.
It seems like the SEC wants to keep some of the information related to this lawsuit under the wraps. This seems like an attempt to influence the ruling of the case.
FTX Bankruptcy Filing Reveals SBF’s Connection With VC Firms
FTX exchange, a popular cryptocurrency exchange which was widely used by traders to buy and sell coins and tokens filed for bankruptcy on 11 November. Since then the investigation team has been on their toes to dig out all the confidential information related to FTX and its founder Sam Bankman-Fried. While the team is trying to know in depth information everyday there is new information that is popping out.
In the early hours today, the bankruptcy filing revealed the names of FTX shareholders including football star Tom Brandy and other well-known celebrities along with a few popular firms like Coinbase. Now the latest updates claim that FTX founder and former CEO, Sam Bankman-Fried had invested nearly 20 million USD in Paradigm, a venture capital firm. Furthermore, it’s also been reported that Paradigm later bought FTX shares.
It was in 2021 that SBF invested in a fund that was managed by Paradigm and later the same $2.5bn Paradigm One fund invested in FTX and FTX US exchanges. Earlier, Paradigm One was one of the largest crypto venture capital. Paradigm, which was created in 2018 by ex-Sequoia Capital partner Matt Huang and Coinbase co-founder Fred Ehrsam, claimed that SBF was given the same respect as others in its fund.
Paradigm Regrets Its FTX Investments
On the other hand, as per the reports, SBF had also invested $5mn in a fund that was introduced by UVM, a Singaporean bank and Signum Capital. These firms are the first of few investments that Sam Bankman-Fried had invested.
Paradigm was one of the main investors in FTX where the firm aided FTX’s internal venture team to run its Series B funding in July 2021. Huang had earlier claimed that SBF was among the special founders whose vision was ambitiously focused towards Crypto future.
However, after FTX filed for bankruptcy, Huang tweeted that he was deeply feeling regret for his investments in a company and a founder whose values were not in vision of crypto values.
Analyst Reveals This Event Could Trigger Another Massive Sell-Off for Bitcoin (BTC)
Bitcoin is currently trading at a gain to start the day. Over the course of the weekend, the price of the token picked up speed and broke through the $17,000 resistance level. At press time, Bitcoin is exhibiting bullish indicators and may proceed to advance toward the resistance level of $18,000. However, there are rumblings that terrible news is on the horizon for the king of cryptocurrencies.
Another Sell-Off Event for BTC?
Nicholas Merten, a cryptocurrency analyst, and influencer, recently warned in the latest video that another significant Bitcoin sell-off might take place very soon. According to Merten, the dormant sell-side pressure that resulted from the Mt. Gox scandal could rear its head and cause Bitcoin to see yet another leg downward.
Mt. Gox was a cryptocurrency exchange that was once responsible for over 70% of Bitcoin transactions. In 2014, the platform was hacked, and tens of thousands of Bitcoin were taken; the exchange subsequently declared bankruptcy.
According to Merten, there is a question that has to be asked, and that question is whether or not the Mt. Gox trust is going to result in a decrease in the price of BTC. More precisely, the issue that is more pertinent is whether or not the long-awaited unloading of this Bitcoin back to its original holders is going to occur as a result of demand from those holders to be able to finally obtain access to that Bitcoin.
Because we observed that Mt. Gox’s BTC holdings didn’t even drop by half during that previous bull market, the second concern the analyst raises is whether or not the sell-off from that will be the bottom.
It fell from approximately 200,000 to 137,000 BTC, says Merten, adding:
“If we see this kind of sell pressure or in this case unloading of Bitcoin into the supply in the open market, what is that going to mean for price?”
Providing BTC to Mt. Gox’s old customers, as Merten suggests, could be a massive source of sell-side liquidity, he argues. The analyst predicts that this will lead to intense pressure from sellers.
Those who have held Bitcoin since it was in the double- or triple-digit range, or even just a few dozen or a few hundred dollars, will likely want to cash out their holdings, as Merten expects they will eventually come to believe that Bitcoin as an asset is obsolete.
There was a 1.83% increase in Bitcoin’s value during the past twenty-four hours, and a 3.06% increase over the past seven days, bringing its current value to $17,252.
Court Document Reveals New Startling Details About Alameda and FTX
Recent revelations have shed light on how the problems that Sam Bankman-Fried “SBF”’s crypto trading firm Alameda has been having began a long time before the difficult year that we all experienced in 2021; in part due to its sister company FTX’s meltdown.
Looking more closely, we see that Alameda was never great at investing and that SBF’s involvement in the company remained substantial even after his departure as CEO in October 2021.
The trading company risked a lot of money and won part of it back, but it also lost a lot. And SBF sought over and over to borrow money and cryptocurrency to fuel those wagers, even offering double-digit interest rates to its lenders.
Uncovering It All
Alameda, as it expanded, invested billions of dollars into bets on the future success of the cryptocurrency industry, billions that federal prosecutors have just said were stolen from FTX clients. It placed wagers on obscure cryptocurrency exchanges and a slew of blockchain technology companies, and it also made political contributions and real estate purchases.
When it finally collapsed in 2022, it was a massive event. Both firms filed for bankruptcy protection in November, leaving their consumers owed billions of dollars and weakening trust in the cryptocurrency sector as a whole.
SBF claims that poor record keeping and a banking problem led to the theft of client monies and enabled Alameda to cover huge losses with funds intended for FTX. It was reported last week by The Wall Street Journal that during a hearing on January 3 he would most likely enter a not guilty plea to fraud charges.
The disgraced crypto figure seems to have established Alameda with the intention of donating a portion of its income to effective altruism, a movement whose stated goal is to channel charitable contributions to causes that will have the greatest impact.
He borrowed money from affluent people who were already involved in the trade sector in order to expand his business. The co-founder of Skype, Jaan Tallinn, lent him a substantial amount of Ethereum, over $100 million, and he returned with a stash of cryptocurrency.
Binance Blockchain Week kicked up in January 2019 with around 1,500 attendees in Singapore. The symposium, which Alameda sponsored for $150,000, was meant to be a forum for planning the development of the emerging crypto sector. Attendees stated SBF’s goal during the meeting was to network with potential new lenders for Alameda.
The firm handed out pamphlets to potential lenders claiming it had $55 million in assets under management; nevertheless, the vast majority of those funds were borrowed in order to finance the company’s operations.
For SBF, Alameda was a means to expand FTX. The company was the principal market maker at the exchange, meaning it was always willing to buy and sell at any time. People familiar with the hedge fund’s tactics say it sometimes took the losing side of a transaction in order to draw clients to the exchange.
Recent complaints filed by the Securities and Exchange Commission and the Commodity Futures Trading Commission, the nation’s leading market regulators, allege that SBF hatched a scheme for Alameda to borrow cash from the exchange.
He instructed his co-CEO, Gary Wang, to create programming that would enable the firm to maintain a negative balance on FTX regardless of the amount of collateral it posted with the exchange.
In addition, SBF prevented the sale of Alameda’s FTX collateral in the event that its value dropped below a certain threshold. That amounted to a line of credit extended by FTX to the hedge fund.
The criminal also directed his former flame Caroline Ellison to inflate the value of a cryptocurrency used by Alameda as collateral by increasing its purchases of that asset.
Note that SBF has said in an interview that,
“FTX was a full-time job. I didn’t have enough brain cycles left to understand everything going on at Alameda if I wanted to.”
Arthur Hayes Reveals His Portfolio, Says He Won’t Purchase Bitcoin or Ethereum
After the FTX-caused price fall, the former CEO of BitMEX thinks that Bitcoin’s worst days may be behind it. Arthur Hayes asserts that Bitcoin, the leading cryptocurrency, has likely bottomed out in a recent Medium blog article.
“Don’t know if $15,900 was this cycle’s bottom. But, I do have confidence that it was due to the cessation of forced selling brought on by a credit contraction.”
Hayes also listed four cryptocurrencies and further divided them into “Reserve Assets” and “Super-Powered Assets.” He chooses Bitcoin and Ethereum, the first and second largest cryptocurrencies by market capitalization, as Reserve Asset. LOOKS and GMX are the other two cryptocurrencies that are included in this list of Super-Powered Assets.
“I could purchase Bitcoin and or Ether, but neither of these cryptos pays me enough yield. And if I’m not getting sufficient yield, I’m hoping that the price appreciation in fiat terms will be stupendous when the market turns.”
Fed to Become Dysfunctional?
His positive forecast is predicated on the notion that the U.S. For the Treasury market to be dysfunctional in 2023, after which the Federal Reserve will need to switch to a dovish monetary policy.
According to Hayes, open interest, the total number of open positions across all derivative exchanges has reached its lowest point since early 2021.
He leaves up the possibility that OP could decline much further in the event of a sideways bear market. OI will not be changing quickly, though, because a market this sluggish is unlikely to result in many liquidations.
Here’s how according to him Bitcoin and other assets will spike,
“I believe the US Treasury market will become dysfunctional at some point in 2023 due to the Fed’s tightening monetary policies. At that point, I expect the Fed will turn the printer bank on, and then boom shaka-laka — Bitcoin and all other risk assets will spike higher.”
Sam Bankman-Fried Reveals About the Properties in The Bahamas
Sam Bankman-Fried, the former CEO of FTX, was questioned by New York Times journalist Andrew Sorkin in his very first public appearance through a video call. Sorkin threw a barrage of questions towards the former CEO and also questioned him about the money that had vanished from the exchange immediately after it had filed for chapter 11 bankruptcy. Bankman-Fried briefly touched on this subject while stating that he was currently cut off from FTX’s systems.
The FTX US team and Bahamian regulators had both seized some, along with some “actual improper access,” which he was unable to detail. This was the “answer to the extent that I know it,” SBF said.
Talking about his contributions and donations which made headlines, SBF said that lawmakers were not ruling FTX. When asked about who’s money they were using to make donations to the Democratic party, SBF said that it was mainly from the profits they made.
“So I mean, lawmakers were not ruling on FTX. FTX didn’t have an application before Congress for anything. You know, my donations were mostly for pandemic prevention. And they were looking at primary elections where there were candidates who are outspoken in favor of doing things now to prevent the next pandemic.”
SBF speaks about properties in The Bahamas
Bankman-Fried also clarified his real estate in the Bahamas and explained that his parent’s property was not intended to be their long-term property. He said that there were a lot of property purchases in the Bahamas because top Silicon valley employees came down to work there
“And, you know, we were trying to incentivize that and to, you know, make sure that they had an easy way to find a comfortable life that they’d be willing to move and, and help build out the product,” SBF said.
But he also said that he feels ‘bad’ for them because they bought properties of their own in the Bahamas.
“And so, you know, those hundred people put together here did end up buying a substantial amount of property. So it kind of, I feel bad about some of how those investments may turn out for them ….”
Black Swan Author Reveals The Real Reason Behind Catastrophic Crypto Crisis
Nassim Taleb – an award-winning philosopher – has called out the cryptocurrency market again following the FTX implosion. The famous author thinks Bitcoin is a tumor and can soon present investors with an unprecedented deleveraging scenario.
Moreover, Taleb has indicated no significant cash flow in the cryptocurrency market. As such, the former options trader and risk analyst thinks the crypto market is in a liquidity crisis.
Notably, a liquidity crisis is described as a financial situation characterized by a lack of cash at hand across many financial institutions simultaneously.
Furthermore, most crypto companies – including Binance exchange – use their native tokens for insurance funds. The trend has been questioned as irrational since most crypto projects either pre-mined their tokens or control the largest hash power.
Through a series of tweets, Taleb indicated that blockchain technology has not flourished to generate significant cash flow, particularly during bear markets. Instead, Taleb thinks that the cash circulating in the cryptocurrency industry is from other crypto projects.
The decline in crypto cash flow can be attributed mainly to the FTX fallout and the DCG’s impending implosion. Furthermore, millions of crypto traders and investors were stranded by the FTX collapse, with the investigations taking slower than anticipated.
Closer Look at Crypto Market Outlook
According to the latest crypto price oracles, the total cryptocurrency market capitalization stands at around $868 billion. Additionally, the total reported crypto trading volume in the past 24 hours stands at approximately $44.7 billion. The huge difference indicates that most crypto assets are used for speculative purposes and have been stored for later use.
As such, most cryptocurrency community continues to disregard Taleb’s opinions. Furthermore, speculation is part of the grey area that the cryptocurrency market thrives on.
One of Taleb’s opinion comments argues that the Bitcoin market should be compared to the Gold and oil industry that all have different intrinsic values. Moreover, the Bitcoin industry has significantly opened up locked-up economies.
According to tech billionaire Elon Musk, Bitcoin will thrive long-term, but the ongoing bear market will last long. The reduced cash flow highlighted by Taleb is a culmination of the past major on-chain activities. Furthermore, global confidence in the cryptocurrency market has significantly been shaken.
Nonetheless, every cryptocurrency trader must conduct proper research and form personal opinions before purchasing or investing in the digital asset economy.
Fintech Connect Launches “Fintech In Flux” Industry Benchmark Report Reveals Adapting To Consumer Demand And Investment In Tech Are Key For Winning Edge
FinTech Connect 2022, Europe’s only dedicated fintech event for the entire ecosystem, today released its 2022 Industry Benchmark Report, Fintech in Flux: Thriving in the Age of Uncertainty, showing that customers remain the biggest focus, with 86 per cent of respondents investing in AI to stay competitive.
As the fintech arms race continues, the report shows that institutions of all sizes continue to embrace technologies in a bid to meet the demands of modern consumers and drive greater efficiency and insight – with 86.6% of respondents believing that investing in tech is necessary for the winning edge.
AI is the technology favoured by most, with countless applications, such as fraud detection, credit risk analysis, and automating customer support, continuing to set the industry abuzz.
Harnessing technology to improve the consumer experience and drive efficiency has long been the hallmark of this most disruptive of sectors, however, as we emerge from the tail end of the global pandemic and into the fresh tumult of cost-of-living crises and looming recessions, a massive 76% of institutions say that understanding the changing nature of consumers is also a prime concern.
Driven by these same pressures to keep up with the pace of change, identifying new trends and technologies is a major preoccupation for 60 per cent of FS players, with a similar proportion (62.6 per cent of respondents) planning to delve into decentralised systems, suggesting that understanding the impact of DeFi and blockchain could hold the key to their futures.
Other key findings include:
· Automation is on the move, with over 50 per cent of respondents already automating recurring tasks
· Over 70 per cent of FS players cite market volatility and monetary policies as the key factors keeping them awake at night
· Central Bank Digital Currencies (CBDC) are getting closer, with more than 50 per cent of respondents believing they have the potential to completely change consumer payments
· 30 per cent of respondents see Scandinavia and Benelux as the trailblazers, as payment innovation continues across Europe
· Only 28.6 per cent of respondents are clear on how the Metaverse will affect their organisation
· Cybersecurity risk continues to grow, with 60 per cent of respondents citing it as a key focus
· The Crypto Winter hasn’t harmed adoption, with over 40 per cent of respondents stating that they will return if regulated, and 20 per cent confident they will bounce back either way.
Laurence Coldicott, Senior Content Director of Fintech Connect 2022, says:
“It is clear that 2022 has provided an unexpected crossroads. Incumbent financial institutions have had to put their digital transformations in warp drive, with new technologies – that were previously only being looked at – now in the process of being adopted and rapidly deployed.
“Many FIs are focussed on building frameworks that will allow them to better embrace FinTech and thrive in an age of increasing uncertainty, while partnering with FinTechs for a seamless banking system, or managing a hybrid or remote workforce, are other significant drivers for 2023.
“FinTech is avoiding the trough of disillusionment and at a place of real excitement; and this survey seeks to address where we go next”.
Surveying 150 CXOs, CEOs, Founders and FinTech Leads from across the UK & Ireland, Benelux, the Nordics, and the Rest of Europe, FinTech Connect utilised their exceptional database of contacts to engage with the digital leaders at the centre of the global fintech paradigm.
Now in its ninth year, FinTech Connect 2022 is taking place between 30th November and 1st of December 2022, at the ExCel centre in London’s bustling docklands, and is set to welcome more than 3,000 attendees, who, over the course of two days, will hear from and meet the global fintech industry C-suite leaders and start-up innovators defining the course of the industry – all under one roof.
Disclaimer: This is a press release post. Coinpedia does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company.
Binance Still Have a ‘Bag’ of FTT, Reveals CEO Changpeng Zhao !
The complete list of entities that invested in FTX in the seed financing round as well as in the A, B, and C funding rounds has been shared by anonymous cryptocurrency analyst @frxresearch.
The CEO of Binance, Changpeng Zhao, responded to the tweet which claimed that Binance Labs, a VC division of Binance that invested in FTX in the Series A round, still holds its position in the FTX Token.
“We still have a bag of FTT,” he said.
Claims that Binance planned to sell off its FTT holdings as a defensive measure against FTX have been squashed by the company’s chief executive, who noted that FTX has never been a rival.
The widely-held belief that Binance’s decision to sell its FTT holdings was a calculated attack on FTX has been debunked by “CZ,” who asserts that his exchange has never seen FTX as a rival in the cryptocurrency market.
CZ made these comments during a CNBC Squawk Box interview as he attempted to offer his opinion on the recent FTX collapse, its relationship to Binance, and the fall’s potential future ramifications on the larger crypto sector.
“We were never against them. We don’t focus on other smaller exchanges; focusing our energy there doesn’t give us the best return,” CZ said. He added that helping to grow the industry would bring in more clients than taking customers from other exchanges. Hence, Binance wishes to grow the industry “together with other exchanges.”
When questioned about the reasons behind Binance’s decision to bailout the FTX agreement, CZ cited a few factors.
After realizing that SBF had misled everyone, including his clients and investors, he disclosed that the Binance team had discovered a significant theft of cash from FTX users and noted that they could no longer trust any additional data.
Jack Dorsey Reacts on FTX Saga! Reveals Shocking Truth About Sam Bankman-Fried
Former FTX CEO Sam Bankman-Fried has received a significant share of criticism following the sudden collapse of the FTT token and its subsidiaries. With a congressional hearing on FTX collapse slated for next month, Bitcoin maximalists have taken to the social media stages to advocate for its prowess.
Jack Dorsey – a Bitcoin supporter and advocate – has expressed his disapproval of SBF and FTX’s approach to the digital market. While reiterating the old crypto slang ‘trust no one, ‘ Dorsey admitted that SBF approached him a few days before the FTX meltdown.
However, Dorsey indicated that he reported the text messages as junk to the network provider and Apple team. As such, the conversation did not continue from there, per the public report.
According to a report by Reuters, SBF spent the night before filing for chapter 11 bankruptcy calling deep-pocketed investors to bail out FTX. Among the listed investors requested to cough over $7 billion include Sequoia Capital, Apollo Global Management Inc, and TPG Inc.
Nonetheless, the investors declined SBF’s request, citing gross anomalies in the company’s balance sheet. Moreover, FTX was doing ‘well’ per the public quarterly earnings report until the second quarter of 2022, when the company recorded a net loss of over $161 million.
While SBF, FTX, and Alameda continue to hide behind men in suits through the Delaware court proceedings, an estimated 1 million customers and investors are counting significant losses. Moreover, SBF reportedly used $10 billion in customer funds to prop up its trading business.
While his operations remain unclear, it is reported that SBF used an estimated $40 million to sponsor the 2022 midterm elections in the United States.
Bigger Picture on FTX Meltdown
The FTX meltdown has been a blessing and curse to the cryptocurrency market simultaneously. For instance, rival companies Coinbase Global and Binance crypto exchanges have come together via Trust Wallet to enable safe and fast adoption of Web3 technology.
On the other side, confidence in the crypto market has been severely shaken, despite an ongoing investigation by the U.S. Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).
Meanwhile, bearish sentiments have sustained in the crypto market, led by Bitcoin price in the past two weeks. According to our latest crypto price oracles, Bitcoin price is down approximately 1.3 percent in the past 24 hours to trade around $16,500.
Elon Musk Reveals Plan For Parody Accounts!
The post Elon Musk Reveals Plan For Parody Accounts! appeared first on Coinpedia Fintech News
Elon Musk recently tweeted that users who engage in impersonation without explicitly designating it as a “parody” account will have their accounts permanently banned without notice. According to Musk, Twitter used to offer warnings before suspending users, but now that broad verification is being implemented, there won’t be any warnings and “no exceptions.”
This will be made apparent as a requirement for joining Twitter Blue, according to Elon Musk, who also added that any name change will result in a temporary loss of the verified checkmark.
Terra Labs Reveals 4-Year Revival Plan For LUNA! Will It Revisit Its Previous Glory?
Terra’s ecosystem crash had wiped nearly $40 billion from the crypto market and brought nightmares for its investors. It is one of the biggest implosions in the cryptocurrency market that took place in May this year.
However, the developers of Terra now seek to make a comeback for LUNA with a 4-year revival plan amid the crypto winter, and co-founder Do Kwon’s violation of South Korea’s Capital Markets Act.
Can LUNA Make A Comeback With Revival Plan?
Terra’s developers have rolled out several revival plans, and the founding team is putting enough effort into pushing LUNA upward despite its co-founder Do Kwon’s arrest warrant for committing fraud. The South Korean government authorities have been looking for Kwon since September; however, Kwon claimed he is not on the run.
Terra Labs has now introduced ‘Terra Expedition,’ which is the enhanced version of Terra’s developer mining and alignment program, which was formed during Terra’s establishment.
Terra Expedition will be funded with 9.5% of LUNA’s total supply, which was decided at the launch of LUNC, which is Terra’s new blockchain after LUNA’s crash. It is to be noted that the introduction of LUNC was also a revival plan to bring back the old reputation of LUNA.
The incentive program of Terra Expedition will be continued for four years, and the evaluation of the proposal will be executed every year by the community elected committee.
The main motive behind forming this revival plan is to attract investors and developers to LUNA’s network, which will gradually bring liquidity.
The proposal states, “The Terra Expedition is a four-year program aimed at growing the Terra ecosystem through a series of initiatives with three main objectives, namely: incentivizing developers to build on Terra, deepening liquidity on Terra and onboarding users to Terra.”
A Second Chance For LUNA!
According to the proposal, 20 million LUNA tokens are assigned for the incentive program. Furthermore, the program will provide exclusive rewards, including prize money of $40K to developers for successfully building a project with smart contracts on the LUNA network.
Some of the network projects that can be developed include decentralized apps, lending protocols, stablecoin issuers, and derivatives protocols. The proposal stated that the LUNA tokens would be circulated quarterly in the network.
Another distribution of 50 million LUNA tokens has been proposed for the mining incentive program, which will be distributed over the next four years. This fund will be used to fulfill the initial liquidity of projects built on the network.
Moreover, Terra developers have also proposed another five million tokens to give users as an incentive for using the projects on the network and minting NFTs on the platform.
However, it seems that such distribution of tokens will only benefit a few protocols, and it may not bring any significant change to LUNA’s ecosystem.
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Do Kwon Reveals If Terra Victims Will Get Any Compensation
Yet again Do Kwon has grabbed attention, but this time it’s not due to any investigation related news. Instead it’s due to his Friday, Oct 14 interview with Unchained Podcast host, Laura Shin.
Before the interview, Laura had asked Do Kwon the reason for his refusal to return to the country even after multiple charges against him via Twitter. For which the Terra labs founder replied to answer all the queries in the upcoming Podcast.
Do Kwon Denies Any Compensation To Depeg UST Holders
Among a series of questions and answers, while expressing his grief for May’s Terra crisis, Do Kwon even chose to answer a long awaited question if depegged UST holders will get their money back. This question comes in reply to Do Kwon agreeing to compensate depeg UST holders (now USTC) with USDT or USDC.
While in an interview at Unchained Podcast channel, Laura Shin asked Do Kwon if UST holders will receive their compensation as promised by him. However, Do Kwon chose to avoid the question and his earlier tweet and asked why Luna Foundation Guard (LFG) is not in a state to compensate users.
“Foundation guard is not at a state where it can make clear disposal of its assets. There is pending civil litigation against LFG. So until those are resolved, we just are not able to distribute tokens.”
Moreover, he was seen claiming that there is no fixed time frame to say when the depeg UST users will receive their money back, but he hopes to see it happen soon.
Furthermore, Do Kwon has denied the speculations of him working on Terra Classic (LUNC) even though Terra network supports LUNC. Even the Terra Rebels, LUNc developer group has claimed to be independent soon with its Terra Classic revival road map.