Crypto Guides, Knowledge & Insights

Stablecoin USN is to be Discontinued by NEAR Protocol, with Funds to be distributed for User Protect

On Monday, the NEAR Foundation, an organization that advocates for the NEAR blockchain, declared that it is terminating its stablecoin, known as USN. The stablecoin began displaying perilous traits similar to those seen in the TerraUSD stablecoin, which catastrophically fell this year and caused investors to lose money aggregating more than $30 billion, according to the foundation, which announced that it will shut down.　　According to the Near Foundation, USN is now undercollateralized, which means there is not enough collateral to sustain the stablecoin.　　The DAO Decentral Banks USN stablecoin (DCB) was introduced through the NEAR protocol in April. However, under-collateralization is a dilemma with algorithmic stablecoins, particularly under “destructive market circumstances,” as Decentral Bank recently informed the Near Foundation. DCB also divulged that there was double-minting of USN, a factor that contributed to the under-collateralization.　　　　Decentral Bank announced on Monday that the USN project would be halted. According to Decentral Bank, “USN has faced many headwinds over the last few months with an increased regulatory focus and changes in market perception from recent high-profile incidents,”　　Due to these vulnerabilities, according to Decentral Bank. To ensure that holders of USN are safeguarded, they have made the tough choice to shut down the USN project.

2022-10-26Deep Dive

Bankruptcy Judge amends Celsius's bidding plans

A federal bankruptcy judge bequeaths Celsius Network an amendment for its bidding plans. Setting up a timeline for the sale of the cryptocurrency lenders assets by the end of the calendar year will be the next measure.　　“At todays hearing, we made progress on important issues, including bidding procedures for a potential sale of Celsius assets, cash management, and appointing a fee examiner to monitor professional fees. Our next hearing is currently scheduled for November 1.” Celsius tweeted on October 21.　　Celsius is still entitled to reorganize by issuing a stand-alone proposal. Notwithstanding that the procedures for selling the platforms assets are well outlined. The firm also intends to put the traders business up for bids. They consist of the earn accounts and coin balances, the portfolio of consumer and institutional loans, the swap services, the staking platform, the settlement feature, the autonomous finance division, and any crypto assets it still owns.　　　　Plans for securing bids also encompass other assets, such as the mining company.　　The directive has given Celsius the authority to appoint a horse bidder, determine the date and deadlines for a prospective auction, and manage the sales arrangement. The lender will be instructed to enter a sale order as a result

2022-10-26Deep Dive

The CFTC Chair suggests that Congress regulate cryptocurrencies and that ether is a commodity.

Behnam said to an assembly of business executives and lawyers at a Rutgers Law and Wall Street Blockchain Alliance event in Manhattan: “Its a really cynical stance to assume two agencies cant figure it out and work together.”　　　　Although it is doubtful that US lawmakers would approve new crypto legislation by the end of the year, the regulators have held a number of open discussions and taken investigative steps to determine who has the right to do what. There is a sense that the SEC and the CFTC are in conflict over issues like which regulating organization should be in charge of overseeing cryptocurrencies and which currencies are considered commodities.　　In this sense, Behnam restated his view on Monday that Bitcoin and Ether, the two most significant cryptocurrencies, are commodities. Behnam remarked:　　“Ether, I‘ve suggested that it’s a commodity, I know Chairman Gensler thinks otherwise — or at least hasnt certainly declared one or the other.”　　Because Ether has switched to a proof-of-stake consensus method, SEC Chair Gary Gensler has questioned whether it should be regulated by the SEC. Gensler claims that Ether is a security.　　Behnam went on to say that although the SEC and CFTC are both representatives of the Financial Stability Oversight

2022-10-25Deep Dive

Ark Invest's Wood Increased a $100,000 Bitcoin Stock to $7M

In a podcast discussion with Peter McCormack titled “What Bitcoin Did,” the CEO of ARK Investment Management provided the information the other week. She continued by mentioning her $100,000 investment in bitcoin, which is currently worth over $7 million. Wood did not specify when she got the cryptocurrency, but based on the price it was trading at, it was probably sometime during 2015. She continued by saying that none of the original investment had been sold.　　　　At the University of Southern California, Woods professor Laffer had encouraged her to become interested in Bitcoin. Laffer informed her that he was searching for Bitcoin, a rules-based money system, “ever since we went off the gold standard.”　　When Wood questioned Laffer about the potential size of Bitcoin, Laffer responded: “how big is the US monetary base？” The US dollars value was $4.5 trillion at that time, and the market capitalization of Bitcoin was about $6 billion.　　Woods investment of $1,000,000 has yielded a whopping profit of over $7.6 million when based on the current price of roughly $19,250. 　　She co-founded the company, but hasnt had the same extent of success with it because, until lately, they couldnt utilize ARK funds for anything other than investing in

2022-10-25Deep Dive

South African FSCA moves to regulate Cryptocurrency transactions in the country

By: Chime Amara　　The South African Financial Sector Conduct Authority (FSCA) has made moves towards regulating the state of Cryptocurrency transactions within the country. According to the recent notice from the body, there is currently an urgent need for the regulation of all Crypto assets within the country. The body classified these Crypto assets as a digital representation of value which underscores the need to regulate them.　　According to the report by the head of the Financial Sector Conduct Authority (FSCA) in South Africa - Eugene Du Toit: Cryptocurrencies are Financial Products despite not being yet considered legal tender in the country and therefore must be duly regulated like every other financial asset in the country.　　Highlighting the nature of the regulation to apply for Cryptocurrency within the country, the body revealed that the first step is to ensure that all Cryptocurrency exchange operating in the country are duly licensed by the FSCA.　　Nevertheless, Du Toit further explained that the recognition of Cryptocurrency as Financial Products in South Africa does not mean the legalization of Cryptocurrency trading within the country. In his position: The move is not to legalize Crypto assets within the country but to give them credence.　　Speaking on the need to regulate

2022-10-25Deep Dive

Crypto-friendly Rishi Sunak appointed UK Prime Minister

After a brief leadership campaign, Rishi Sunak, a pro-crypto former Chancellor of the United Kingdom, was chosen to serve as prime minister.　　To proceed to the following round, a nationwide vote of party members, each potential candidate must receive at least 100 nominations from Members of Parliament (MP).　　However, Penny Mordaunt, Sunaks final opponent, fell short of the required number of MP nominations. According to Yahoo, Sunak will win the leadership contest if Mordaunt doesnt fulfill the minimal criterion by 2:00 on October 14th.　　After Mordaunt failed to secure enough support before the deadline, Sir Graham Brady, Chair of the 1922 Committee, announced Sunaks appointment just after 14:00.　　Liz Truss out　　Following a nationwide membership vote, Liz Truss defeated Sunak to become prime minister on September 5 57.4% to 42.6% when Boris Johnson resigned.　　Truss, however, resigned from her position on October 20 after a dismal 45 days in government because her party no longer supported her.　　The “mini budget” that was presented on September 23 was blamed for her downfall. It outlined tax cuts, including the elimination of the 45% additional income tax rate and a reversal of plans to raise corporate tax from 19% to 25%, both of which were scheduled to go into effect

2022-10-25Deep Dive

Visa And Mastercard Need Solid Layer-2 Infrastructure To Process Payments In The Metaverse

The Metaverse might hold the key to Visa and Mastercards future. Even if they might not employ Ethereum for a wider deployment, both industry titans in payment processing have made strides in the virtual realm. Other scalable networks also offer workable chances to handle payments for the Metaverse.　　Visa s involvement and Decentral Games approach to Metaverse expansion. Additionally, the $ICE tokens are bought back and removed from circulation using all advertising proceeds from this transaction.　　Visa has chosen a somewhat different path. Through its relationship with Crypto.com, one of the most well-known brands in the cryptocurrency industry, the organization is cautiously investigating cryptocurrencies. It is crucial to make it simpler for customers to utilize and spend cryptocurrency. More importantly, these cards bring value to the cryptocurrency business while operating through the current payment rails.　　Which Network To Build On？　　Visa and Mastercard will need to use the best network if they wish to investigate other Metaverse potential. Ethereum would be a sensible option. The largest network for Web3 development is there. It also has problems with recurring gas charge concerns, a restricted ability to scale, and inadequate throughput for such a load of transactions. Over time, developers can fix those problems, but that

2022-10-25Deep Dive

Are Bitcoin miners only receiving the basic minimum payment as the hash price plunges to record lows

According to the source of market insights:　　“The Bitcoin Hash Price has reached an all-time-low of $66,500 per Exahash. This means that BTC miners are earning the smallest reward relative to hashpower applied in history, and likely puts the industry under extreme income stress.”　　As a result, this shows that throughout the 13-year history of Bitcoin, miners are making the least money. 　　Additionally, this is taking place while the Bitcoin networks mining complexity reaches an all-time high (ATH). Glassnode also said:　　“BTC mining difficulty just reached an ATH of 158,208,051,864,292,013,637,632. Previous ATH of 152,947,196,320,564,012,646,400 was observed on 23 October 2022.”　　A measure of how tough or simple it is to create new Bitcoins, mining complexity is frequently influenced by the quantity of devices connected to the network. 　　　　Because more processing power is needed to generate the same amount of blocks like before, high mining difficulty implies improved network safety.　　Since more than six months ago, 78% of the BTC supply has not moved.　　It appears that some hodlers have persisted in their goal despite the immovable Bitcoin supply nearing ATH. 　　Market researcher Will Clemente noted:　　“A new all-time high 78% of Bitcoin supply has not moved in at least 6 months. Pretty remarkable in the face of

2022-10-25Deep Dive

Reporters Dig Deeper into Crypto Exchange Bithumb’s Mysterious Ownership Story

One of South Koreas largest cryptocurrency exchanges, Bithumb, remains in the news as concerns over the companys ownership structure spread across the country.　　The nation was shocked last month when it came to light that Kang Jong-hyun, the secretive Bithumb majority shareholder, had been covertly dating leading lady Park Min-young. Journalists also learned that Kangs associates had purchased Parks talent agency and had appointed Parks elder sister to the position of director at a publicly traded company that he also owned.　　According to sources in the cryptocurrency industry, Kang is the “secret chairman” of Bithumb, and earlier this month, prosecutors looking into these claims raided three other businesses he owns. Among them is Vidente, a manufacturer of video equipment that apparently holds a 34% stake in Bithumb.Bithumb 7-day trading volumes. (Source: CoinGecko)　　　　　　But as the week begins, the exchange - and Kang in particular - might experience some rough patches. This evening, an episode on Kang will appear on MBCs “PDs Notebook,” one of the top investigative journalism-based news programs in the country, according to Newsen.　　Additional discoveries were promised by the shows creators, who also released some of the investigations findings. They claimed that Kangs younger sister, who is identified as Videntes top

2022-10-24Deep Dive

Bankruptcy Court Approves FTX Purchase Agreement for Voyager Assets

A U.S. bankruptcy court has given the go-ahead for major crypto exchange FTX to acquire the assets of struggling crypto platform Voyager Digital.　　The platform said that the Southern District of New York U.S. Bankruptcy Court has authorized Voyager Digitals “entry into the asset purchase agreement between FTX US and Voyager.”　　According to the statement, “FTX USs bid, valued at approximately $1.422 billion, is composed of I the fair market value of all Voyager cryptocurrency at a future date to be determined prior to closing of the sale, which at current market prices as of September 26th is estimated to be $1.311 billion, plus (ii) additional consideration which is estimated to provide approximately $111 million of incremental value to creditors.”　　The business stated that Three Arrows Capitals claims against Voyager “will remain with the bankruptcy estate and any recovery on account of the 3AC claims will be available for further distribution to Voyager creditors.”　　Following the clearance, Voyager Digital will conduct a customer vote to determine the overall strategy for carrying out the sale to FTX US.　　The message states that November 29 is the deadline for voting on the Plan. All creditors eligible to vote on the plan, including customers, will get solicitation packets

2022-10-24Deep Dive

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