Crypto Guides, Knowledge & Insights

Singapore Regulator May Limit Retail Participation in Crypto

Tharman Shanmugaratnam – leading Minister of the Monetary Authority of Singapore (MAS) – says the regulator may restrict retail investment in the crypto sector through new consumer protection safeguards. These could include limits on leverage trading – a trading strategy thats caused numerous crypto traders and firms to go bust in recent weeks.　　Crypto: Unsuitable for Retail　　The minister‘s statement on Monday was in response to Murali Pillai, an MP representing Singapore’s right-leaning Peoples Action Party. The politician asked whether MAS had plans to place greater restrictions on crypto trading platforms to protect “unsophisticated persons” from entering “highly risky” crypto trades.　　The minister reiterated the MASs view that cryptocurrencies are “not suitable investments for the retail public,” due to their exceptional price volatility. “Recent events have vividly demonstrated the risks, with prices of several cryptocurrencies falling drastically,” he added.　　Last month, Bitcoin and other cryptocurrencies plummeted to lows unseen since the crypto market top in 2017. Market panic was largely spurred by an ongoing threat of hawkish central bank policy, with rising inflation only motivating the Fed to hasten its interest rate hikes.　　The collapsing market, combined with Terras downfall in May, has kicked off a domino effect of failing crypto institutions struggling to stay

2022-07-05Deep Dive

Tether Purposes to Increase Transparency by Reducing Commercial Paper Holdings

Tether announced that it would reduce its commercial paper portfolio by $5 billion by the end of July as part of ongoing efforts to increase transparency.　　Tether Holdings, the creator of USDT, the worlds largest stablecoin, stated in a statement:　　“Currently, Tether has 8.4B of these holdings, of which 5B will expire on July 31. This will result in a significant reduction in commercial paper assets to a low of 3.5B, which is on track with Tethers commitment to the community. The goal remains to bring the figure down to zero.” 　　As a result, Tethers long-term goal is to reduce commercial paper holdings to zero as a stepping stone toward a diverse portfolio. According to the report:　　“This is part of a larger strategy to ensure that Tether has a diversified portfolio with limits to exposure on individual issuers or assets. It demonstrates a commitment by the company to reduce its commercial paper investments and validates the business, as part of its ongoing push towards an increased transparency for the stablecoin industry.”　　Following the unexpected collapse of the algorithmic UST stablecoin in May, the stablecoin sector has faced widespread criticism.　　Things began to go awry after UST on the Terra network was de-pegged from its

2022-07-05Deep Dive

Cosmos Blockchain Developer Ignite Fires Employees, CEO Peng Zhong Resigns

On Friday, Peng Zhong, CEO of Ignite, the firm behind the Cosmos blockchain ecosystem, announced his departure. Zhongs retirement comes only a few months after the companys name was changed from Tendermint to Ignite as part of a reorganization strategy.　　Tendermint renamed to “Ignite” in February to bring about new change and activity within the firm.　　Ignite was further divided into two businesses in late May: Ignite and NewTendermint. During that month, the company was split into two business entities due to the return of Jae Kwon, the original co-founder of Ignite.　　Mr. Kwon, Ignites original co-founder, rejoined his old team as CEO of NewTendermint, while Mr. Zhong, Ignites current CEO, remained CEO of the newly restructured Ignite.　　Kwons return to the organization is thought to have prompted Zhongs resignation.　　In 2014, Kwon co-founded Ignite and its parent business, All In Bits Inc. After bitter disagreements with some of Tendermints employees, the executive stepped down as CEO in 2020, but he retained a seat on the parent company.　　With the split, NewTendermint was formed with the intention of contributing to the core technology of the Cosmos blockchain ecosystem, while Ignite remained focused on blockchain-based product development.　　Peng, who has a background in interaction design and front-end engineering,

2022-07-04Deep Dive

CBN gives new guidelines on Cybersecurity for Other Financial Institutions in Nigeria

Following the rapid increase in the rate of attacks against the other Financial sectors in Nigeria, the Central Bank of Nigeria (CBN) has been compelled to take actions geared toward curbing the rate of threats posed against Cybersecurity endangering safety of Other Financial Institutions (OFI) in the country.　　According to the recent Circular released by the CBN which was disclosed by Mrs. Nkiru Asiegbu - the Supervisor of OFI in Nigeria, “it has become mandatory for Other Financial Institutions to strengthen their cyber defenses if they are to remain safe and sound...,” in fulfilling their financial obligations to their clients.　　This clarion call, is all the more very urgent at this point “as a result of the recent increase in the number and sophistication of Cybersecurity threats against the Nigerian Financial Institutions, especially Other Financial Institutions...,” operating in Nigeria.　　Further, the CBN proceeded to issue a new Risk-Based Cybersecurity Framework and Guidelines for OFIs in the country, which stated the requirements and standards to be followed by all OFIs operating in Nigeria.　　This guideline demands that all OFI must establish a proper Cybersecurity strategy capable of minimizing their exposure to attacks from “ransomware, targeted phishing attacks, and Advanced Persistent Threats (APT)” which have become

2022-07-04Deep Dive

NFT Sales Plunge to a 12-Month Low Due to Crypto Crash

According to crypto analytics firm Chainalysis, the crypto markets bloodbath has contributed to sales in the non-fungible token (NFT) sector falling to a 12-month low.　　In June, NFT sales surpassed $1 billion for the first time since June 2021, when they totaled $648 million.　　When sales reached an all-time high (ATH) of $12.6 billion in January of this year, NFTs were the talk of the town, but a slow start is expected in the second half of 2022.　　Chainalysis economist Ethan McMahon pointed out:　　“This decline is definitely linked to the broader slowdown in crypto markets.”　　Tightened macroeconomic conditions have not been kind to the cryptocurrency market, which has seen its value plummet to less than $1 trillion from around $3 trillion in November of last year.　　For example, the US Federal Reserve recently raised interest rates by 75 basis points (bps), the largest increase in 28 years.　　As a result, McMahon believes that consolidation in the crypto sector, including NFTs, will continue. He mentioned:　　“Times like this inevitably lead to consolidation within the affected markets, and for NFTs we will likely see a pullback in terms of the collections and types of NFTs that reach prominence.”　　Despite the fact that NFT sales have exceeded $42 billion so far

2022-07-04Deep Dive

Facebook Begins Integration Tests for Digital Collectibles

Facebook has apparently begun experiments for the integration of Non-Fungible Tokens (NFTs) on its platform. The Meta Platforms Inc subsidiary has restricted the testing to a small number of users in the United States.　　According to TechCrunch, people with privileged access will be able to add their NFTs to their accounts under a new tab. According to the article, a digital collectibles tag would be added to the NFTs, similar to how it is on Instagram.　　The decision to add NFT support to Facebook appears to be yet another deliberate attempt by the internet giant to strengthen its position in the digital currency ecosystem and the future Web3.0 world. Last week, Meta Platforms Chief Executive Officer Mark Zuckerberg said that Facebook will soon add support for NFTs.　　Navdeep Singh, a product manager at Meta, tweeted a screenshot of the new NFT capability. According to the screenshots, when a visitor clicks on the NFTs on a users Facebook profile, it displays information about the digital collectible, such as its name and the artists who created it.　　Meta Platforms initially introduced NFT support on Instagram in May, a move that has received widespread praise and acceptance. The popularity of Instagram NFTs may be fueling the new

2022-07-04Deep Dive

Meta Platforms to End Digital Wallet Novi Pilot on Sept. 1

Meta Platforms Inc., the parent of Facebook, said that its Novi pilot will no longer be available for use after Sept. 1.　　Novi, the companys digital wallet designed around its Libra digital currency, will no longer be available on the app or through WhatsApp starting in September. When the pilot ends, users will not be able to log in and access their account. Users also cant add money to their account starting July 21.　　Users withdrawing from the digital wallets account can choose to transfer their balance to their bank account or withdraw it as cash where applicable, the social media giant said on its website.　　“We have notified Novi pilot participants that we are ending the pilot program at this time. We will be taking forward the technology we developed and what we have learned from the program into future products across the company as we focus on building for the metaverse,” a Meta spokesperson said Friday in an emailed statement.　　Bloomberg first reported the news.　　The Wall Street Journal reported in January that the Diem Association, the consortium Facebook founded in 2019 to build a futuristic payments network, is winding down and selling its technology to a small California bank that serves bitcoin

2022-07-04Deep Dive

Coinbase Responds to Reports of Selling Customer 'Geo Tracking' Data to US Government

Coinbase Responds to Reports of It Selling Customer Data to U.S. Government　　Cryptocurrency exchange Coinbase came under fire last week when reports surfaced accusing the Nasdaq-listed company of selling customer data to the U.S. government.　　Coinbase Tracer, the analytics arm of the cryptocurrency exchange, has signed a contract with U.S. Immigrations and Customs Enforcement (ICE) that would allow the government agency access to a variety of data, including “historical geo tracking data,” according to a contract obtained by watchdog group Tech Inquiry.　　However, Coinbase clarified on Twitter Thursday: “We want to make this incredibly clear: Coinbase does not sell proprietary customer data.”　　“Our Coinbase Tracer tools are designed to support compliance and help investigate financial crimes like money laundering and terrorist financing. Coinbase Tracer sources its information from public sources, and does not make use of Coinbase user data. Ever,” the exchange further tweeted.　　However, many people on Twitter do not believe that Coinbase is not selling any customer data to the U.S. government, noting that the company specifically uses the word “proprietary” to describe the data it is not selling.　　Coinbase sold a single analytics software license to ICE for $29,000 in August last year, followed by a software purchase potentially worth $1.36 million the

2022-07-03Deep Dive

Three Arrows Capital Files for Bankruptcy

The troubled crypto hedge fund Three Arrows Capital Ltd., otherwise known as 3AC, has filed for bankruptcy according to recent court filings. The court papers show 3AC is aiming for an ancillary Chapter 15 proceeding so liquidators and creditors cannot seize the firms U.S. assets.　　3AC Files for Bankruptcy — ‘Tremors’ From the Crypto Market Fall ‘Continue to Reverberate,’ Says JPMorgan Analyst　　Following the reports that Three Arrows Capital Ltd. (3AC) was reprimanded by the Monetary Authority of Singapore (MAS) and faced liquidation from a court order stemming from the British Virgin Islands (BVI), 3AC has reportedly filed for bankruptcy.　　Court filings were seen by Bloomberg‘s Jeremy Hill and the author published a report that summarized the situation. Hill says that 3AC has filed for a Chapter 15 bankruptcy, which allows proceedings to occur and protect insolvent firms in more than one country. Essentially, 3AC wants the bankruptcy recognized in the U.S., in order to protect the hedge fund’s assets located in America.　　“Representatives for Three Arrows filed the bankruptcy petition in New York on Friday, court papers show,” Hill explained on Friday. The law firm Latham & Watkins is representing Three Arrows in the U.S. bankruptcy [case], the reporter added.　　3AC‘s bankruptcy case was

2022-07-03Deep Dive

Bitcoin Sees Worst Quarter In 11 Years

The leading cryptocurrency in the world, Bitcoin (BTC), saw its worst quarter-over-quarter drop in 11 years. According to data from CoinGecko, BTC has lost over 57.43% in the second quarter of 2022. Additionally, by selling below $19,000 on the final day of Q2, Bitcoin had its most significant quarterly loss in more than a decade.　　The current state of the Bitcoin market is not good. The position was favorable even at the end of Q1 when it was approaching close to $50,000. But after that, things became more complex, and the price kept dropping.　　From $45,524 at the beginning of the year, bitcoin slid to a low of $17,593.2 on June 18. It recorded its worst-performing quarter as a result of its persistently negative price moves, which have seen it drop below $20,000 several times in June.　　According to CoinGecko data, BTC dropped by 38% over the month of June and is currently trading at $19,447.62.　　Since its launch in January 2009, the price of bitcoin has been on an up-and-down Ferris wheel. Like Q2 2021, the second quarter of 2022 will be referred to as the Bloodiest Quarter In Crypto. Quarter 2 of last year lost more than 40% of its value.　　Concerns About

2022-07-02Deep Dive

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