Crypto Guides, Knowledge & Insights

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

Registration Required For Cryptocurrency Platforms In Canada Within 30 Days

The Canadian Securities Administrators (CSA) stated last Wednesday that cryptocurrency platforms must register in order to safeguard cryptocurrency buyers. The Canadian Securities Administrators (CSA) is the parent body for Canadas province and local securities authorities.　　Stan Magidson, Chairman of the CSA and CEO of the Alberta Securities Commission, stated that unregistered crypto asset trading platforms (CTPs) that continue to operate in Canada while pursuing registration are expected to provide their principal regulator with an enhanced pre-registration undertaking within 30 days of the publication of this notice.　　The CSA requires increased security and isolation of cryptocurrency assets owned by Canadian customers, as well as a ban on giving collateral, credit, or other forms of leverage to any Canadian customer. Consumers may not be permitted to buy or transfer stablecoins or private currencies unless the CSA has given previous written permission.　　If a CTP is unable or unwilling to provide an improved pre-registration commitment, the CSA anticipates that it will take suitable action to off-board current Canadian users and implement limitations to prohibit Canadian users from getting its goods or services.　　This new metric follows the recent decline in the cryptocurrency market and an increase in scam cases. Many nations are putting harsher restrictions on the

2023-02-28Deep Dive

Nigeria's Central Bank in Talks with Blockchain Platform R3 for CBDC revamp

By: Damian Okonkwo 　　Nigerias central bank has reportedly entered into discussions with blockchain platform R3 for the revamp of its central bank digital currency (CBDC).　　According to a Bloomberg report, the central bank is seeking to enhance its existing e-naira digital currency and is exploring the use of blockchain technology to facilitate cross-border payments and boost financial inclusion.　　The central banks move to enhance its digital currency comes as other countries around the world are also developing and launching their own CBDCs. China, for example, has already launched a digital yuan, and other countries, including the United States and the European Union, are also working on their own digital currencies.　　R3 is a blockchain platform that provides enterprise-grade solutions for businesses and governments. The platform is known for its Corda blockchain technology, which enables secure and private transactions between parties. R3 has also developed a number of blockchain-based solutions for the financial services industry, including a trade finance platform and a blockchain-based identity management system.　　The central banks discussions with R3 could help to accelerate the development and launch of a revamped e-naira digital currency. The use of blockchain technology could also help to improve the speed and efficiency of cross-border payments, making it

2023-02-27Deep Dive

Shiba Inu’s BONE Price Spikes Suddenly; Here’s Why?

Shytoshi Kusama, the leader of Shiba Inu developers, has dropped another hint that has caught the attention of Shiba Inu enthusiasts. The hint may be related to the long-awaited launch of Shibarium, although it is not confirmed. Speculations around the launch of the L2 blockchain have also contributed to the increase in the value of Shiba Inus BONE, which has surpassed the market capitalization of other top meme coins.　　Shiba Inus BONE Price Suddenly Spikes　　Shiba Inu enthusiasts have interpreted the use of three dots by Shytoshi Kusama as a signal that the beta release of Shibarium is imminent. As a result, the price of the Shiba Inu ecosystem token BONE has surged in the past 24 hours. BONE will be used as the gas token in the Shibarium Layer-2, which has contributed to a 4% increase in its value. BONE is now one of the top-performing tokens among the largest meme cryptocurrencies. Additionally, BONEs listing on Gate.io has also supported the recent price surge.　　In an official blog post, it was announced that the crypto exchange would list Bone ShibaSwap with the trading pair BONE/USDT. The platform, which has over 12 million registered users, updated its trading page for ShibaSwap on Thursday

2023-02-26Deep Dive

Largest NFT Dump Ever; NFT Market To Crash?

Nansens Andrew Thurman has put forward a theory that the upcoming second airdrop on the Blur marketplace may be the reason behind the significant influx of NFT sales, as it could be an effort to acquire additional BLUR token rewards while also generating profits.　　According to Nansens data, Jeffrey Hwang, who is also known as Machi Big Brother, is a major player in the NFT market. Within a span of just 48 hours, he sold 1,010 tokens for a total of 11,680 ETH, which is equivalent to $18.6 million.　　The largest NFT dump ever　　Andrew Thurman, Nansens Simian Psychometric Enhancement Technician, took to Twitter on February 25 to draw attention to the trading activity of the past two days, which he believes to be “perhaps the largest NFT dump ever,” making it a significant development in the world of NFTs.　　The primary sales event included the sale of 90 NFTs from the Bored Ape Yacht Club (BAYC), 191 NFTs from the Mutant Ape Yacht Club (MAYC), and 308 NFTs from Otherdeed, among others. This sale is noteworthy due to its size and impact on the NFT market.　　Andrew Thurman, from Nansen, speculated that Machi Big Brother (Machi) may have been attempting to make some profits

2023-02-25Deep Dive

XRP News: US SEC’s Narrative Of Calling Token A Security Winning?

Leaders in the digital asset industry have strongly criticized the U.S. Securities and Exchange Commission (SEC) for how it classifies tokens. However, during the recent hearing for the LBRY lawsuit, the commission conceded that the token in question does not fall under the category of a security.　　XRP Lawsuit Is The Key？　　In the XRP Lawsuit, John Deaton, who serves as Amicus Curiae, has argued that the U.S. SECs narrative labeling tokens as securities needs to come to an end. He believes that a token is simply a piece of software code and should be treated as such.　　Deaton asserts that a token can be compared to any other commodity or asset that can be marketed, packaged, and sold as a security. He explains that the term “investment contract,” which is commonly used to define a security, is not about the underlying asset itself, but rather about the conditions that surround the offer and sale of the asset.　　During the XRP lawsuit, John Deaton pointed to the Telegram case, where Judge Castel had explicitly stated that the GRAM token was not a security, but rather an “alphanumeric sequence.” Deaton also referenced the Ethereum speech by Hinman, in which it was stated that the digital

2023-02-25Deep Dive

...

143145

...

743