In a recent social media post, Hayden Adams, the founder of Uniswap Labs, announced that the company has received a Wells notice from the Securities and Exchange Commission (SEC), expressing his disappointment and determination to contest the notice. SEC Sends Decentralized Exchange Uniswap a Wells Notice Hayden Adams, the founder behind the decentralized finance (defi) […]
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Deribit’s Dubai Unit Receives ‘Conditional’ Virtual Asset Service Provider License
Deribit FZE, an entity owned by crypto derivatives platform Deribit, has secured a conditional virtual asset service provider from the Dubai virtual assets regulator. The license, which covers spot and derivative trading, will remain non-operational until Deribit meets the regulator’s localization requirements. Meeting Dubai’s Localization Requirements Deribit FZE, a wholly owned entity of the crypto […]
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Greenpeace’s Anti-Bitcoin “Mining for Power” Report Receives Fierce Backlash on X
“Mining for Power,” an anti-Bitcoin report by Greenpeace USA that explains the links between the bitcoin mining industry and fossil fuel companies, has faced a backlash in social media due to its inaccurate portraits of the mining activity. Using community notes, social network users detailed the report contained “many factual errors,” including outdated information. Greenpeace […]
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Ethereum Foundation Receives Confidential State Inquiry, Removes Warrant Canary Icon From Github Repo
The Ethereum Foundation has reportedly received a “voluntary enquiry from a state authority,” according to a note added to the group’s Github page. State Actors Have Contacted the Ethereum Foundation; SEC Reportedly Investigating On Wednesday, March 20, 2024, the crypto community discussed a message posted to the Ethereum Foundation’s Github repository which also features a […]
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Ethereum Receives Nod Of Approval From Berstein: ETH Price Will Reach $10,000
Global asset management firm, Bernstein has expressed confidence, foreseeing a fairly strong chance of the United States Securities and Exchange Commission (SEC) approving an Ethereum Spot ETF.
SEC Ethereum Spot ETF Approval Imminent
In a February 19 research report, Bernstein analysts Gautam Chhugani and Mahika Sapra disclosed that Ethereum, the world’s second-largest cryptocurrency, may be the only digital asset after Bitcoin, to win an ETF approval from the US SEC.
Following the approval of Spot Bitcoin ETF, many crypto enthusiasts anticipated Ethereum as the next in line for an ETF. However, given the SEC’s current stance on cryptocurrencies and its previous reluctant acceptance of Spot Bitcoin ETFs, the prospects of an Ethereum ETF have become uncertain.
In the research report, Bernstein analysts predicted the approval timeline for an Ethereum Spot ETF. They emphasized that the presence of notable traditional financial firms, including Grayscale and Franklin Templeton, competing for a Spot Ethereum ETF, strengthens the outlook for its approval.
“We think there is a roughly 50% chance of spot Ethereum ETF approval by May, with an almost certain chance of approval within the next 12 months,” the Bernstein report read.
Ethereum’s Roadmap To ,000
With the potential approval of Ethereum Spot ETFs, Ethereum may witness a significant price increase to levels as high as ,000. Prior to the SEC’s approval of Spot Bitcoin ETFs on January 10, the anticipation surrounding the ETF had sparked a massive price rally for the cryptocurrency. Following the approval and ETF launch, Bitcoin surged to over ,000 before witnessing a subsequent price correction that pushed it back below ,000.
Despite the short correction, Bitcoin has been gaining back its momentum, and at the time of writing, the cryptocurrency is trading at ,998, according to CoinMarketCap. This substantial price increase is largely attributed to the success of its ETF, providing investors with greater accessibility to Bitcoin, and contributing to the cryptocurrency’s increased adoption.
A similar narrative could unfold for Ethereum following the approval of its ETF. With rising interest from institutional investors and the ETF driving global adoption, the cryptocurrency could potentially attain new all-time highs above ,000.
In the research report, Bernstein analysts also confirmed Ethereum’s strong positioning for mainstream institutional adoption. The analysts emphasized the need for the cryptocurrency market to shift its attention to Ethereum, as the cryptocurrency is poised to witness gains following the approval and launch of its ETF.
Dydx Foundation Receives $30M From Community Treasury to Propel Strategic Initiatives
This week, the Dydx Foundation revealed it has secured a million allocation from the Dydx Chain Community Treasury. This financial infusion is designated to extend the foundation’s operational capacity by an additional three years, facilitating the execution of the project’s strategic roadmap. Community Treasury Allocates Million to Dydx Foundation for Enhanced Ecosystem Innovation […]
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Regulatory Victory: Gemini Receives Digital Asset Service Provider Registration In France
Cryptocurrency exchange Gemini, founded by the Winklevoss twins, has been granted crypto registration by the French markets watchdog Autorite des marches financiers (AMF).
According to a recent announcement made by the exchange, this approval allows Gemini to offer its services as a virtual asset services provider in France. The company plans to roll out its products to both retail and institutional clients in the coming weeks.
Gemini Seizes Growth Opportunities In Europe
As announced, Gemini customers in France will gain access to a wide range of cryptocurrencies for trading, as well as “advanced” trading platforms such as ActiveTrader. Institutional clients will also benefit from Gemini eOTC, an electronic over-the-counter trading solution.
Gemini’s regulatory approval in France marks a milestone in the company’s European expansion strategy. According to the exchange’s statement, with a strong sense of regulatory support for the cryptocurrency industry in Europe, Gemini sees growth opportunities in the French jurisdiction.
The founders of Gemini recognized the need for regulatory clarity, which is on the horizon with the European Union (EU) Markets in Crypto-Assets Regulation (MiCA). MiCA allows crypto companies to obtain licenses in one EU country and operate across the entire EU.
Interestingly, Gemini chose Ireland as its European headquarters, joining other major US crypto companies that have selected Ireland as their regulatory hub. On this matter, Gillian Lynch, Gemini’s Head of Ireland and EU stated:
We are delighted to welcome customers based in France onto the Gemini platform in the coming weeks as we further expand access to crypto across Europe. France is a global innovation leader and has a vibrant crypto community as showcased by the success of Paris Blockchain Week. We are excited to soon be able to provide French customers with compliant and secure access to the future of finance as we continue on our mission to unlock the next era of financial, creative, and personal freedom
US Crypto Companies Seek Regulatory Haven In Europe
According to a CNBC report, major US crypto companies are increasingly looking to expand their operations in Europe driven by regulatory challenges in the United States.
The crypto industry has faced scrutiny from US regulators, including the Securities and Exchange Commission (SEC). Gemini and Genesis, a crypto lender, were charged by the SEC last year for allegedly selling unregistered securities. Gemini is contesting the lawsuit, asserting that its interest-bearing products do not qualify as securities.
Per the report, the European Union offers a “more favorable” regulatory environment, and the MiCA regulation provides a framework for companies to operate across EU member states.
While the US has yet to approve comprehensive federal-level crypto regulation, recent developments indicate a growing acceptance of cryptocurrency trade. The SEC’s approval of the first-ever spot Bitcoin exchange-traded funds (ETFs) is seen as a significant step toward integrating crypto into traditional finance.
Despite initial concerns about market manipulation, the approval of Bitcoin ETFs by the SEC is a positive development for the industry. At the same time, several bills related to crypto regulation are making their way through the US House of Representatives.
Featured image from Shutterstock, chart from TradingView.com
GHO Stablecoin Fails to Enforce Dollar Peg Amid Criticism, Receives D Grade From Bluechip
Roughly three weeks ago, Bitcoin.com News covered the stablecoin GHO, when it achieved a notable milestone by reaching .98 per coin. However, on December 11, the token experienced a slight dip, hitting .975 per unit. Despite some improvement in its stability, the stablecoin has still not enforced its intended goal of a peg.
GHO’s Struggle for Stability
Launched by Avara (formerly known as Aave), GHO has been a noteworthy example in the realm of dollar-pegged tokens. Since its inception in mid-July, the digital currency has consistently failed to maintain its peg to the U.S. dollar, persistently falling short of this mark. Despite a low point of .917 on October 24, 2023, GHO saw an upswing towards the end of November, reaching .98 per coin.
Nevertheless, the stability was short-lived. By December 11, GHO had dropped to .975 and, despite a spike to .987, it has not reached the intended mark to date. Interestingly, since October 21, an extra 10 million coins have been introduced. With a total of 34.72 million coins in circulation, the market capitalization of GHO barely exceeds million, primarily due to its price not aligning with the dollar. The stablecoin has faced criticism for these fluctuations.
Chroma’s Jack Longarzo remarked on X, “Scaling stablecoins is a demand side problem, not a supply side problem. The problem with GHO is AAVE only has an advantage on the supply side and isn’t positioned to create demand to actually hold the stablecoin. This won’t scale. Time to GHO build something else.” This critique was in response to a post on X by Stani Kulechov, founder and CEO of Avara.
Kulechov stated, “GHO is already bringing 2.1M in annualised revenue @ tiny 35M mint cap. Also, GHO peg is getting better. It’s [a] matter of time when GHO is ready for scale, and imagine the revenue for the Aave DAO.”
Bluechip Stablecoin Ratings Gives GHO a D Grade Assessment
Bluechip, an independent, nonprofit stablecoin rating agency, has assigned GHO a D grade, based on stability and risk factors. Bluechip’s rating system parallels that of a school report card, where A+ represents the highest achievable score, and F marks the lowest. Bluechip’s report on GHO points out its consistent underperformance relative to the peg and suggests that a short-term recovery of the peg is unlikely.
This is attributed to a “lack of strong stability mechanisms to enforce a peg.” The report continues, “Due to low borrowing rates and no reserve redemption mechanism, GHO’s price is more likely to drop further than increase. GHO, in its current form, is unsafe. We caution users against holding GHO,” the report adds. However, the report further says GHO can improve to a B/B+ rating.
“Despite our rating, we believe GHO already has many key ingredients in place to become a safe, decentralized stablecoin, provided that it implements stability-enhancing changes to its design,” the report concludes.
What do you think about the stablecoin GHO failing to achieve its intended parity? Share your thoughts and opinions about this subject in the comments section below.
Bitcoin Price Targets $46,000 As DXY Receives Kiss Of Death
In a striking dual analysis, the financial charts paint contrasting futures for the US Dollar Index (DXY) and Bitcoin (BTC). Gert van Lagen, a technical analyst, has provided a bearish prognosis for the DXY, while simultaneously highlighting a bullish setup for Bitcoin that could see it aiming for a ,000 target.
DXY Receives Kiss Of Death
The DXY has been in an upward trend since July, as shown by the blue ascending trend line on the daily chart. However, this line was broken to the downside on October 9, indicating a change in market sentiment. Van Lagen explains, “Blue uptrend since July has been broken too. Time to continue down.”
This sentiment is reinforced by the price action within the black channel from the beginning of October till recently, where a period of consolidation is visible, succeeded by a strong downward move. The DXY dropped by 1.2% last Friday, November 3, to 104.92 and is currently undergoing a retest of the channel, a common technical pattern where the price moves back to the breakdown point before continuing in the direction of the initial direction.
A third bearish argument for the DXY is the rejection at the highlighted red zone on the chart which signifies a high timeframe Fibonacci resistance area. The Fibonacci retracement is a popular tool among traders to identify potential reversal levels. The DXY’s price action shows a “clear rejection” at this level, where the index attempted to rise but was pushed back down, reinforcing the bearish stance.
Bitcoin Price Targets ,000
Amidst the weakness of the DXY, the inverse correlation with Bitcoin becomes a focal point for crypto investors. Gert van Lagen provides insight into Bitcoin’s potential trajectory, observing a bullish pattern emerging on its 6-hour chart.
“BTC [6h] – Bullish pennant in play targeting k. The pennant is part of the shown ascending channel,” remarked van Lagen. The chart displays Bitcoin’s price consolidating in a pennant structure, a continuation pattern that signals a pause in a strong upward or downward trend before the next move.
The pennant is delineated by converging trend lines which have been formed by connecting the sequential highs and lows of price action, converging to a point indicative of an imminent breakout.
In this case, the pennant follows a significant upward trend, suggesting that the breakout is likely to continue in the bullish direction. The ascending channel, highlighted by two parallel upward-sloping lines, encompasses the entire bullish movement of Bitcoin on the chart, including the pennant formation. This channel serves as a guide for the price trend, indicating where support and resistance levels are anticipated at the moment.
Van Lagen’s analysis posits a targeted price of ,000 upon the resolution of the pennant, a level that is determined by the height of the prior move that preceded the pennant, projected upward from the point of breakout. The dashed lines on the chart illustrate the potential path Bitcoin’s price could take following the breakout.
An important detail in van Lagen’s chart is the ‘Invalidation’ level marked below the pennant. This level at ,103 is critical as it signifies where the bullish hypothesis would be considered incorrect, serving as a stop-loss point for traders acting on this pattern.
At press time, BTC traded at ,625.
South African Crypto Exchange Valr Receives ‘Initial Approval’ From Dubai Virtual Assets Regulator
Valr, the South Africa-based crypto exchange, recently said it had won initial approval from the Dubai virtual assets regulator. The crypto exchange’s Head of Growth, Blake Player, said Valr has been attracted by the Middle East region’s significant crypto flows and in particular Dubai’s growing reputation “as a forward-thinking and pragmatic jurisdiction.”
Valr Cannot Offer Any Virtual Asset Services Just Yet
The South African cryptocurrency exchange, Valr, recently said it had “won an initial approval” from Dubai’s crypto assets regulator, the Virtual Assets Regulatory Authority (VARA). According to the crypto exchange, winning this approval is a critical step for Valr which is seeking to establish a presence outside South Africa. The approval however does “not allow Valr to undertake any virtual asset services yet.”
Explaining the rationale behind the decision to seek an operating license from VARA, the crypto exchange’s CEO Farzam Ehsani highlighted VARA’s role as a world-leading regulator and his firm’s desire to reach a more global audience.
“For the past 5 years, VALR has been working closely with regulators to inform regulatory frameworks that protect the public while allowing responsible innovation to flourish. This initial approval from VARA is a significant milestone for VALR to bring our products and services to a more global audience under the auspices of a world-leading regulator,” Ehsani said.
Dubai’s Reputation as a Forward-Thinking Jurisdiction
In early 2022, Valr said it had successfully raised million in a Series B funding round which was led by Pantera Capital. At the time, the crypto exchange said the capital raised would be used to expand into other African markets and emerging markets like India. Valr also said it would add more products and services to its clientele.
Commenting on Valr’s pivot to the Middle East, the crypto exchange’s Head of Growth, Blake Player, cited the region’s significant crypto flows and in particular Dubai’s growing reputation “as a forward-thinking and pragmatic jurisdiction.”
“Setting up in Dubai provides an excellent opportunity to serve the regional market and a global customer base from a crypto and business-friendly jurisdiction,” Player added.
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