Crypto Guides, Knowledge & Insights

Challenging March for Bitcoin

Bitcoin closed out February with a slight increase of 0.9% to reach $23,200. As of writing, the cryptocurrency has continued to climb and is currently trading at $23.7K. Despite this positive start, historically, March has not been a favorable month for Bitcoin, having declined in eight of the last 12 years with an average decrease of about 15%, and an average gain of 16%.　　While the strong growth momentum in January and the renewed local highs in February suggest that the bulls are prevailing, the technical analysis on the weekly timeframe indicates that only a consolidation above $25K would further reinforce a bullish view of the market.　　According to Bernstein, the correlation between cryptocurrencies and the US stock market, as well as macroeconomic events, is becoming weaker during Bitcoins current period of stability, which is a positive sign for the cryptocurrencys bullish prospects.　　News background　　The Ethereum development team has finished implementing the Shanghai-Capella (Shapella) hard fork on the Sepolia test network. This update is expected to be implemented on the main Ethereum network as early as March, and it will enable the withdrawal of ETH from staked assets.　　According to Reuters, payment giants Visa and Mastercard have paused their plans for cryptocurrency integration after

2023-03-01Deep Dive

XRP Lawyer Predicts Win For Grayscale In Lawsuit Against US SEC

Grayscale Investments, a company that manages digital assets, is preparing for the oral arguments set to take place on March 7 in its lawsuit against the U.S. Securities and Exchange Commission (SEC). Meanwhile, an attorney who is representing XRP holders in the Ripple lawsuit has made a prediction regarding the outcome of the Grayscale vs. SEC case.　　XRP Lawsuit Bids For Grayscale　　According to Attorney John Deaton, who is serving as Amicus Curiae in the ongoing XRP lawsuit, Grayscale Investment is likely to prevail in its legal battle against the U.S. Securities and Exchange Commission (SEC). Deaton believes that the SEC has a poor track record in legal proceedings when facing opposition. Ripples Chief Legal Officer, Stuart Alderoty, also pointed out that the SEC has lost four out of its last five lawsuits in the countrys Supreme Court. However, Alderoty emphasized the necessity of having the courage and resources to continue battling the commission in court.　　Grayscale has filed an application with the US SEC to convert its main product, Grayscale Bitcoin Trust, into a spot Bitcoin ETF. As per the regulatory process, the application has entered a standard 240-day open review period. However, on June 29, 2022, the US regulatory agency denied

2023-03-01Deep Dive

VISA Remains Committed to Investing in Crypto Sector Despite Recent Failures

Despite recent industry disasters, Visa, the worlds biggest credit card business, stays dedicated to spending in the bitcoin field and backing its core technology. According to a representative, Visas crypto strategy and emphasis have not altered, and the company intends to continue spending on connecting both networks and technologies developing in the crypto environment. Visas aim is to act as a link between various networks and tools in the bitcoin world. Cuy Sheffield, Visas director of crypto, also verified that the company is still collaborating with crypto firms and that fiat-backed digital currencies operating on public blockchains have the ability to play a major role in the payments environment.Visa denies claims of ending crypto company partnerships, confirms blockchain technology dedication.　　According to Reuters, Visa is “slamming the breaks” on new collaborations with crypto-related companies, as the sector faces increased governmental inspection following the failure of the once-popular crypto market FTX. However, a Visa representative disputes these allegations, stating that the companys crypto strategy and emphasis have not changed as a result of the recent setbacks. Despite the industrys difficulties and ambiguity, Visa stays dedicated to the possible advantages of cryptocurrencies and the underpinning blockchain technology.　　Visas new collaboration with Wirex, a crypto

2023-03-01Deep Dive

Visa and Mastercard Delay Cryptocurrency Partnerships Amid Regulatory Uncertainty

American payment processing companies, Visa and Mastercard have delayed launching new partnerships with cryptocurrency firms due to the increased regulatory scrutiny in the industry, caused by a series of high-profile bankruptcies. The recent move marks a departure from the warming relations between the payment giants and cryptocurrency firms in the past, as the popularity of cryptocurrencies exploded.　　Both companies were exploring options with digital assets, with Mastercard examining payments via USD Coin, and Visa targeting stablecoin settlements in the weeks leading up to the recent development. The decision to delay the launch of certain products and services related to cryptocurrency comes amid an uncertain regulatory environment for the industry in the wake of the collapse and bankruptcies of centralized digital assets custodial firms such as Celsius, FTX, Three Arrow Capital, Voyager Digital, and others within the past year.　　Top Stablecoins　　Tether 　　USDC 　　Binance USD (BSUD) 　　DAI 　　Reports suggest that the delays are not a reflection of the core business of Visa and Mastercard, which sources say remains strong. Instead, the delays have been attributed to the unclear regulatory environment for cryptocurrency. The move comes as a surprise, as both companies have been warming up to the industry for some time, with Visa recently

2023-03-01Deep Dive

“Guilty” FTX Executive Will Now Cooperate With Authorities In Probe Against SBF

The U.S. Securities and Exchange Commission (SEC) has alleged that a former FTX director of engineering actively participated in a scheme to deceive multiple cryptocurrency investors. The individual reportedly withdrew millions of dollars from the exchange for personal use.　　Nishad Singh Pleads Guilty To Charges　　Former FTX director, Nishad Singh, has pleaded guilty to fraud charges brought by U.S. prosecutors who are investigating the now-defunct FTX conglomerate. Singhs attorney stated during the proceeding that his client had entered into an agreement to plead guilty to three counts: one count of wire fraud, one count of conspiracy to commit wire fraud related to FTX customers, and one count of conspiracy to commit commodities fraud. The hearing was held in a federal court in Manhattan.　　The SEC alleges that Nishad Singh played an active role in deceiving FTXs investors and engaged in activities that led to his receipt of approximately $6 million from FTX, which he used for personal purposes such as purchasing a multi-million-dollar mansion and making contributions to charitable organizations. According to reports, Singh has agreed to a bifurcated settlement related to the SECs accusations, which is currently awaiting approval by the court.　　It has been reported that Singh had a close relationship with

2023-03-01Deep Dive

Stablecoin Supply Declines Despite BTC And ETH Gains

Bitcoins impressive 43% rise and Ethereums 38% gain in 2023 have not ignited a larger-scale investment in other cryptocurrencies, such as stablecoins. According to major stablecoin indicators, a significant amount of capital remains inactive. The stablecoin supply, which is a crucial mechanism used to purchase many crypto assets, has been declining. When the stablecoin supply increases, it suggests that there is more capital to purchase crypto assets, while a decrease implies the opposite.Aggregate supply net position change of top stablecoins declines　　The aggregate supply net position change of the top four stablecoins (USDT, USDC, BUSD, and DAI) has been negative since Sept. 14 and has been trending lower since Feb 7. For context, the aggregate supply net position change for stablecoins was positive between February and March 2022, indicating strong demand for digital assets during that time period. The decrease in stablecoin supply suggests that investors are cautious, despite the positive performance of BTC and ETH.The stablecoin supply ratio (SSR) increases, and buying power decreases　　The stablecoin supply ratio (SSR), which measures the ratio of bitcoins market cap to the market cap of stablecoins, has been increasing. This indicates that the buying power of stablecoins has decreased relative to BTC. The current

2023-02-28Deep Dive

Ripple Lawyer Suggests US SEC Chair To Recuse Himself Over Bitcoin Claim

US SEC Chair, Gary Gensler, has caused a stir in the crypto market with his recent comments on Bitcoin (BTC). He has been criticized by industry leaders for labeling altcoins as “Security”.　　US SEC Chair Forming Vague Narrative？　　After Gary Gensler made remarks about Bitcoin, Ripples Chief Legal Officer Stuart Alderoty stepped in to correct him. According to Alderoty, Gensler had stated that all digital assets, with the exception of Bitcoin, are unregulated securities. Alderoty suggested that Gensler should abstain from voting on any future enforcement cases that involve this issue. He argued that Genslers comments show that he has prejudged the outcome of the Antoniu v. SEC (8th Cir. 1989) case.　　To clarify, Stuart Alderoty responded to Gary Genslers recent comments on Bitcoin. Alderoty pointed out that Gensler had characterized all digital assets except for Bitcoin as unregulated securities. Alderoty then went on to suggest that Gensler should not vote on future enforcement cases related to this issue due to his prejudgment of the outcome of a specific case.　　The future of XRP, one of the biggest crypto assets, is at stake as Ripple and US SEC continue their ongoing legal battle. The awaited Summary Judgment in the XRP lawsuit is expected to

2023-02-28Deep Dive

Coinbase Delist Binance BUSD Amid Regulatory Scrutiny Beginning On March 13

Coinbase, the famous cryptocurrency exchange, stated on February 27, 2023, that dealing of the Binance USD (BUSD) stablecoin will be suspended starting March 13, 2023. The move follows the New York State Department of Financial Services (NYDFS) recent governmental assault on the stablecoin on February 13, 2023. Paxos, the business in charge of the BUSD stablecoin, verified in a news statement that the NYDFS had ordered it to cease releasing the stablecoin. The bitcoin community has had varied responses to Coinbases statement.　　Coinbase Suspends BUSD Transactions Coinbase stated on Twitter that dealing in the BUSD stablecoin will be suspended on March 13, 2023, at or around 12 p.m. ET. Transactions on Coinbase.com (Basic and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime will be halted. As of press time, there were 177,125 distinct accounts containing BUSD, according to the stablecoins token contract.　　Coinbases BUSD Dealing Ban Raises Bitcoin Community Worries　　　　The Bitcoin Community Has Different Responses The bitcoin community has had varied responses to Coinbases statement. Some have questioned the timeliness of the ban, wondering when the BUSD stablecoin abruptly failed to reach Coinbases ranking standards and which particular standard it failed to meet. Others have expressed worry about Coinbases suspension of

2023-02-28Deep Dive

Binance Secretly Moved $1 Bln User Assets Just Like FTX

Recent reports suggest that Binance, the largest cryptocurrency exchange in the world, may have engaged in behavior similar to FTX regarding user assets. Shockingly, the exchange is alleged to have transferred $1.8 billion in user assets without permission for its own purposes following the cryptocurrency crash in 2022. This issue has similarities to the FTX collapse which occurred due to unauthorized transfer of user assets between Sam Bankman-Frieds companies, including Alameda Research. These allegations could have severe consequences not only for Binance but also for the entire cryptocurrency market.　　Binance Shuffled User Assets？　　As per a recent Forbes report, Binance, the exchange giant, transferred $1.8 billion in stablecoin collateral to hedge funds in 2022. Among the beneficiaries of these transfers was Alameda Research, a name that could potentially raise concerns for crypto traders who were severely affected by the November 2022 crypto crash. The report stated that the purpose of these transfers remains undisclosed. They were reportedly executed between August 17th and early December 2022, which coincides with the time period of the FTX collapse that originated from unauthorized crypto transfers.　　Despite being an active presence on Twitter, Binance CEO CZ has not yet responded to the recent allegations. The exchange has been

2023-02-28Deep Dive

Robinhood's Cryptocurrency Division Served SEC Subpoena

Robinhood Markets Inc, a popular brokerage firm known for its commission-free trading, has received an investigative subpoena from the US Securities and Exchange Commission (SEC) related to listings of cryptocurrencies. The subpoena was received in December 2022, according to a filing by Robinhood on Monday.　　The SEC has been actively monitoring the cryptocurrency industry, and it has maintained that pre-existing securities laws apply to digital assets, including cryptocurrencies. The regulatory agency has also stated that many crypto tokens meet the definition of security, which has previously been criticized by the industry.　　The subpoena received by Robinhood is related to its subsidiary, Robinhood Crypto LLC, which offers support for cryptocurrencies and custody of cryptocurrencies, among other platform operations. The company has not disclosed any further details about the investigation.　　This news comes in the wake of a string of major crypto-related failures in 2022, including the collapse of Sam Bankman-Frieds FTX. FTX filed for bankruptcy in November, which led to an intervention from regulators worldwide and left creditors facing losses of billions of dollars. The collapse dealt a significant blow to investor sentiment in the crypto industry.　　Robinhood has also recently announced plans to repurchase its shares from Emergent Fidelity Technologies, a company founded by

2023-02-28Deep Dive

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