To help you start the day off right, we compile a daily roundup of the most fascinating stories about cryptocurrencies like Bitcoin, Ethereum, and Tether.
MARKET BUZZ
Steve Cohen-backed pivot ends on 24 Exchange’s cryptocurrency platform due to regulations
The trading platform 24 Exchange has chosen to end its spot cryptocurrency offering. The firm received $14 million in investment in late 2021, including backing from Steve Cohen’s Point72 Ventures.
ANALYSIS OF THE FTX BANKRUPTCY
Alameda Research Investigates the $700 Million Celebrity Access Scandal
Sam Bankman-Fried, the founder of Alameda Research, the hedge fund branch of the now-bankrupt FTX firm, is reportedly suing to recover $700 million that he allegedly used to pay for access to prominent people including politicians and celebrities.
SEC
Deferral by the SEC Is Meant to Increase Investor Payouts and Avoid Delays
According to a recent court document, the SEC has agreed to delay the collection of a $30 million punishment from the bankrupt crypto lending site BlockFi until the investors have been paid back.
BlockFi was first required to settle claims that it had not registered its cryptocurrency loan product with the SEC by paying a $50 million fine to the regulatory authority.
In February 2022, BlockFi agreed to the settlement.
But with the collapse of the bitcoin exchange FTX, it filed for bankruptcy in November.
The SEC said that in light of BlockFi’s ongoing Chapter 11 bankruptcy procedure, its unpaid obligations should be regarded as « general unsecured claims.
JPMORGAN
JPMorgan Explains Bitcoin Mining’s Energy Challenges
According to a study by JPMorgan, Bitcoin miners that have access to reasonably priced power from sustainable sources are more likely to prosper in the face of growing competition.
The main expense for Bitcoin mining, according to the paper, is power, which has a big impact on the cryptocurrency’s overall production expenses.
In order to protect their profit margins, miners are searching for more accessible and green energy sources.
The bulk of Bitcoin mining companies are headquartered in the United States, which also accounts for the largest share of the world’s Bitcoin hashrate, according to an analysis by JPMorgan.
The term « hashrate » refers to the total amount of computing power used for mining and processing transactions on proof-of-work blockchains like Bitcoin.
IMF
IMF Offers Opinion on How Smart Regulations Can Promote Global Adoption of Cryptocurrencies
Global authorities are being cautious when it comes to digital assets, and different strategies are being used in different places.
China, on the other hand, has completely cracked down on cryptocurrencies, while Europe is focusing on developing legal frameworks. It’s interesting to note that a document just released by the International Monetary Fund (IMF) questions if outright banning crypto assets would be a long-term and successful way to reduce the dangers involved.
According to the report, « While some countries have outright banned crypto assets due to their risks, this approach may not be successful in the long run. »
The IMF recommends countries to address the underlying reasons behind the desire for cryptocurrencies.
Crypto.com
Crypto.com registers as a virtual asset service provider and enters Spain.
A significant participant in the cryptocurrency industry, Crypto.com, has made progress in growing its presence in Europe by obtaining the Bank of Spain’s desired registration as a Virtual Asset Service Provider (VASP).
With this approval, the platform may now provide its broad range of goods and services to clients in Spain, which is a significant step in the direction of its worldwide development goal.
The CEO of Crypto.com, Kris Marszalek, expressed his excitement for the new chance to service the expanding bitcoin sector in Spain by saying, “We look forward to continuing to work with the Bank of Spain as we launch our products and services in-market and providing users with the comprehensive, safe, and secure crypto experience that they desire.”
BTC
Presidential aspirants accept Bitcoin: Kennedy Jr. and Ramaswamy are redefining the role of digital currency
U.S. presidential contenders from many political parties are supporting Bitcoin and related technologies in an effort to encourage financial independence and innovation.
Robert F. Kennedy Jr., a Democratic contender, vowed to support measures that favour bitcoin in an interview with The New York Post.
In handling Bitcoin wallets, nodes, and passwords, he stressed the value of individual sovereignty.
According to Kennedy, « I will make sure that we have policies that support bitcoin and the freedom to transact and that allow individuals to manage their own bitcoin wallets, nodes, and passwords. »
He accepted the necessity for some regulation, even if it was very slight, to stop money laundering.
SAP
SAP tests USDC Stablecoin to see how quickly and transparently cross-border payments work.
Circle’s USDC stablecoin is purportedly being used by SAP, a well-known software company with headquarters in Germany, to analyze global payment methods.
The company’s goal is to remove obstacles that prevent companies from carrying out cross-border financial transactions, and it has selected the USDC stablecoin to do this.
As mentioned in a recent post, SAP is running its testing on the Ethereum Test Network. The business is focused on finding solutions for important problems including costs, transaction speed, and transaction transparency.
Sissi Ruthe from SAP stated: « Cross-border payments are a hassle for many small and mid-sized enterprises with integration business partners. »
She said, « Digital Money as a means of settlement and Blockchain as the underlying technology can solve these major challenges. »
MARKET REPORT
As Wall Street titans compete for supremacy in cryptocurrencies, Bitcoin and Ether are surging.
The largest digital currency in the world, Bitcoin, breached the $31,000 barrier on Friday, closing the week with gains of approximately 19%, as traditional financial institutions’ interest in the cryptocurrency sector increased.
Ether, on the other hand, was trading at levels of $1,920, up more than 13% for the week.
Other significant cryptocurrencies, including Ripple, Cardano, Dogecoin, and Binance Coin, had weekly gains of 3.1%, 7.1%, 14.5%, and 21.1%, respectively.
Despite the Securities and Exchange Commission’s adamant resistance to cryptocurrencies, the market for digital currencies appears to be seeing a resurgence due to investor confidence, as seen by notable asset management companies registering for Bitcoin ETFs.
The creation of the WisdomTree Bitcoin Trust has been requested by WisdomTree, a well-known ETF provider.
