According to the crypto portfolio tracking app, Coinstats, suspected North Korea-linked hackers are believed to be behind the security breach on June 22, which impacted 1,590 user wallets, The Coinstats team has advised users with affected wallet addresses to immediately transfer their funds using their exported private keys. Coinstats App Shut Down Coinstats, the crypto […]
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Worldcoin Agrees to Temporarily Stop Operations in Spain
Worldcoin, the biometric proof-of-personhood identification protocol, has agreed to temporarily stop its operations in Spain. According to statements from the Spanish privacy watchdog AEPD, the company committed to stop its data collection practices for a year or until Baviera’s privacy regulator finishes its investigation into Worldcoin’s inner workings. Worldcoin to Pause Biometric Data Collection Activities […]
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Paraguayan Lawmakers Introduce Bill to Temporarily Pull the Plug on Bitcoin Mining Operations
A group of Paraguayan lawmakers is spearheading a bill that seeks to enact a temporary ban on cryptocurrency mining operations in Paraguay for 180 days or until the industry’s activities are properly regulated. The bill alleges that 28% of the energy losses of the National Power Administration (ANDE) correspond, in part, to illegal bitcoin mining […]
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Blast Network Temporarily Halts Amid Dencun Upgrade; Fix Deployed
Blast, a new Ethereum layer two (L2) scaling solution, paused its block production due to issues arising from the recent Dencun upgrade on the Ethereum mainnet, with its team diligently seeking a fix. Since launching its mainnet on Feb. 29, 2024, and amassing billions in crypto assets through its Ethereum bridge, the project has gained […]
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USDC Stablecoin Temporarily Depegs to $0.76 on Binance Amid Market Turbulence
Circle’s USDC, typically pegged to the dollar, experienced unexpected volatility on Binance, dipping as low as .76 amidst a market rattled by Bitcoin ETF skepticism and a significant liquidation in derivatives.
USDC Temporarily Depegs on Binance Amidst Crypto Market Sell-Off
In a surprising move that startled the cryptocurrency market, Circle’s USDC dollar-pegged stablecoin momentarily depegged from its value, falling as low as .76 on the Binance exchange platform. This incident occurred during a market-wide sell-off, which was spurred by skepticism over the potential approval of a spot bitcoin ETF this month. Notably, USDC experienced three distinct price drops against its tether (USDT) trading pair on Binance between 12:10 and 12:21 UTC, hitting lows of .76, .803, and .80 before quickly recovering back to its peg each time.
This depegging is likely to be the result of a lack of sufficient liquidity when large sell orders were placed for USDC in exchange for USDT. The Binance 2% market depth for the USDC/USDT pair revealed a skew towards the upside, indicating that any sell order larger than the .1 million liquidity floor could force the price below its .98 usual fluctuation. The instability was also influenced by a 0 million liquidation in derivative positions following a report that speculated on the SEC’s rejection of various spot bitcoin ETF applications.
The volatility of USDC is particularly notable given its usual stability as a fiat currency-backed stablecoin, exchangeable at a 1:1 ratio with the US dollar. Such drops can cause ripples across the crypto market, affecting trust and perceived stability, although this time appears to be a contained event. This isn’t the first time USDC has experienced a depeg; it notably traded down to .877 following the collapse of Silicon Valley Bank earlier in March 2023, a situation that arose due to a portion of its reserves being held at the beleaguered bank.
Binance was not alone in experiencing a depeg of the USDC stablecoin; Okx also encountered a similar issue, albeit to a lesser degree, with USDC dropping to .955. Interestingly, the depegging on Okx commenced earlier than on Binance, beginning at 12:01 and persisting until 12:21 UTC, contrasting with the three snap-back recoveries observed on Binance’s platform.
What is your go-to stablecoin? Share your thoughts and opinions about this subject in the comments section below.
5 Charges Temporarily Suspended in FTX Co-Founder Sam Bankman-Fried’s Legal Battle
The U.S. Department of Justice (DOJ) and federal prosecutors in New York have opted to temporarily suspend five charges against the beleaguered FTX co-founder Sam Bankman-Fried (SBF). Nevertheless, these five charges have been “severed” and deferred until 2024, potentially leaving SBF’s legal team to juggle two cases in the future.
5 Counts Against SBF Severed and Scheduled for Another Trial
Initially, FTX co-founder Sam Bankman-Fried (SBF) faced eight charges when indicted by the U.S. government, but shortly after, an additional five charges were tacked on including alleged bank fraud and bribing a Chinese government official. Yet, on June 14, federal prosecutors sought to detach these five supplementary charges, citing the need for approval from the Bahamian judicial system to fulfill the U.S.-Bahamas extradition treaty conditions. Consequently, the U.S. government requested a specialty waiver from the Bahamas regarding this issue.
Although SBF is set to confront the initial eight indictment charges in October, the remaining five charges will be addressed in a trial slated for March 11, 2024. This trial will encompass counts four, six, nine, ten, and thirteen entailing bank fraud, derivatives and securities fraud, bribery, and operating an unlicensed money-transmitting business. As reported by Isource News—a Twitter account offering “minute-by-minute intelligence from named and unnamed sources”— said it appears that SBF is “unlikely to see any jail time after major counts dropped today.”
Citing an anonymous legal analyst, Isource News stated: “The prosecution is busily dismantling their own case to a degree that’s obvious. Someone doesn’t want SBF to get any jail time.” Additionally, Isource News referenced an insider who claimed: “The rest [of the charges] will be plea-bargained away.”
Furthermore, defense attorney Marc Cohen—who previously represented convicted sex trafficker, Ghislaine Maxwell—requested the dismissal of the five charges. “We think [a] dismissal of those counts would be the better outcome,” Cohen asserted. Maintaining his innocence, SBF pleaded not guilty to all charges, while three high-ranking FTX staff members have already entered guilty pleas for multiple charges.
What do you think the future holds for FTX co-founder Sam Bankman-Fried as he faces a divided legal battle with charges deferred and potential plea bargains? Share your thoughts and opinions about this subject in the comments section below.
Brazil Bans Telegram Temporarily Due to Alleged Lack of Collaboration in Fight Against School Violence
A federal judge in Brazil has ordered the temporary suspension of Telegram in the country and established hefty fines due to the supposed lack of collaboration of the company in a national crusade against school violence. Telegram failed to deliver information regarding the actions it is taking against neo-Nazi groups, and now it has been blocked by most internet providers in Brazil.
Brazil Blocks Access to Telegram Apps
A federal judge ordered a nationwide ban on Telegram, the popular messaging app, on April 26, due to its perceived lack of collaboration in a push against school violence. The company behind the app failed to turn over documents regarding the existence of neo-Nazi groups and the measures it is taking against them on Telegram, according to reports from the local journal O’Globo.
In addition, the Brazilian justice system is also fining Telegram for this lack of collaboration to the tune of 1 million Brazilian reals (approx 0,000) for each day that passes without the platform turning in the required documents.
The ban is already in effect, with customers of Vivo, Claro, Tim, and Oi, the main internet providers of the country, being unable to access Telegram’s services. In the same way, the main app providers for mobile operating systems have already removed access to Telegram in their stores.
This was confirmed by Netblocks, an internet observatory organization, which certified that the leading internet service providers (ISPs) are already blocking the access of their users to Telegram; however, Netblocks noted this block could be circumvented using available virtual private network (VPN) apps.
Pavel Durov Speaks
Pavel Durov, CEO of Telegram, defended the actions of the company, stating that it was impossible to deliver the data requested by the Brazilian federal court. On his personal Telegram channel, Durov stated:
In Brazil, a court requested data that is technologically impossible for us to obtain. We are appealing the decision and are looking forward to the final resolution. No matter the cost, we will stand up for our users in Brazil and their right to private communication.
Durov reinforced Telegram’s principles, stating that its mission is to “preserve privacy and freedom of speech around the world.” This is not the first time that Telegram has been subject to this kind of measure. Back on April 2018, the company was also banned in Russia for similar reasons, with Iranian officials calling for a ban on the application that same month.
What do you think about the ban enacted against Telegram in Brazil? Tell us in the comments section below.
Value Locked in Defi Holds the Line at $50B, After Temporarily Shedding $8B in Mid-March
The total value locked (TVL) in decentralized finance (defi) during the first week of April is about billion, roughly the same as on March 1. The value locked dropped to billion on March 12 but has since rebounded as protocols such as Lido Finance, Aave, and Justlend recorded double-digit monthly gains.
After the March 12 Dip, the Value Locked in Decentralized Finance Rebounds to B
According to statistics, the value locked in defi on April 2, 2023, is .22 billion, up 0.91% in the past 24 hours. The protocol Lido Finance commands a TVL of around .94 billion as of Sunday. Lido dominates the billion TVL with 21.77%, and the value locked in the protocol saw a 19.75% rise in March.
Makerdao’s TVL is below Lido’s at .7 billion as it rose 9.66% last month. Aave’s TVL increased by 16.94% to the current .55 billion. Protocols following Lido, Makerdao, and Aave in TVL size include Curve, Uniswap, Convex Finance, JustLend, PancakeSwap, Coinbase Staked Ethereum, and Instadapp.
While Lido jumped over 19% last month, Coinbase Staked Ethereum rose by 22.29%, and Rocketpool, another Ethereum (ETH) liquid staking protocol, saw its TVL rise by 18.47%. Other notable risers in terms of TVL in defi protocols include Liquity, up 27.12% over the last 30 days, and Bwatch, which rose 25.78%.
Of the billion TVL today, 58.6% of the value locked is housed on Ethereum. 10.69% is held on Tron, 10.15% is stored on the Binance Smart Chain (BSC), and 4.4% is kept on Arbitrum. Ethereum’s TVL is .39 billion, and Tron’s is currently .36 billion.
Ethereum’s and BSC’s TVLs shrunk in March, but Tron’s rose 2.8% higher, and Arbitrum’s TVL swelled by 13.93%. Notable gainers in March include Mixin (+16.32%), Defichain (+14.84%), and Kava (+18.52%).
Optimism’s TVL was reduced by 9.68% in March, and Fantom’s slid 8.87% lower. Polygon and Avalanche also saw TVL reductions during the past 30 days. Ethereum has the most defi protocols with 720, while Tron only has 17. BSC has a total of 568 recorded, and Polygon has 399 defi protocols.
Defillama statistics show that Ethereum-based decentralized exchanges (dexs) have seen .54 trillion in cumulative volume. BSC has recorded .46 trillion, and Avalanche has seen 5.22 billion to date. Dex volume by chain is almost as high as it was in May 2022.
What do you think the future holds for the value locked in decentralized finance? Will we see continued growth, or could there be another dip in the near future? Share your thoughts in the comments below.
Binance And Coinbase Temporarily Suspend USDC Conversion After Silicon Valley Bank Collapse
The two biggest cryptocurrency exchanges, Binance and Coinbase, have revealed that they would temporarily suspend USDC conversions on their platforms. This comes in the aftermath of the collapse of US lender Silicon Valley Bank and concerns about its effect on USDC.
Binance And Coinbase Suspend USDC Conversion
Binance was the first to make a move by announcing that it had temporarily suspended its auto-conversion of USDC to BUSD. Citing current market conditions, the exchange added that it was a standard risk-management procedure while monitoring the market situation.
It should be noted that Binance had earlier in the year courted controversy with its decision to auto-convert USDC transactions to BUSD. At the time, Binance cited improving liquidity for users, and it is unknown if this latest development could lead to permanently delisting the stablecoin.
Related Reading: PancakeSwap TVL Drops 12%, Did This Exchange Received A Lethal Blow?
Following Binance’s announcement, Coinbase also tweeted that it would pause its USDC conversion to USD until Monday. The exchange noted that during heightened activities, conversions rely on USD transfers from banks completed during banking hours. It further added that conversions would resume on Monday when banks reopen.
Silicon Valley Bank’s collapse has caused a ripple effect in the fintech company, with several companies revealing their exposure to the U.S-based bank. Some affected crypto companies include Pantera, Avalanche, and BlockFi.
Circle, the company behind USDC, revealed on Friday that it had .3 billion of the billion reserves backing the stablecoin in the now-defunct bank. It added in a statement on Twitter that Silicon Valley Bank was one of six banks it uses to manage 25% of USDC reserves. Circle noted that it would continue to operate normally while awaiting clarity from the FDIC on how SVB collapse would affect depositors.
USDC Market Cap Decreases Following Circle Announcement
Unsurprisingly the crypto market has reacted to the news with investors removing their assets from USDC. At the time of writing, more than .3 billion has been redeemed from the stablecoin in the past few hours.
The trading price of USDC has also suffered volatility dropping from its pegged value of to as low as .93, according to data from CoinMarketCap. This is the lowest the stablecoin has reached since its all-time low of .89 in May 2019. Its marketcap has also reduced to billion.
Silicon Valley Bank’s collapse has been tagged as the worst bank failure since 2008, and there’s uncertainty about what is next for the bank. Its stock is down 87% in two days due to the crash and has been placed into FDIC receivership.
Related Reading: Bitcoin Timing Tool Says This Might Be The Dip Worth Buying
Experts have hypothesized that other banks may likely suffer the same fate if their business models and balance sheets are not properly managed for rising interest rates and the growing possibility of a recession.
The consistent raising of interest rates by the Federal Reserve could have been a significant factor to SVB’s implosion.
Featured Image from Unsplash, Charts from Coingecko
Ethereum (ETH) Will Overtake Bitcoin, At Least Temporarily: Analysts Predict
While the bear market is still in full swing, several experts are currently discussing when the “flippening” will happen. Flippening is described as the scenario where another cryptocurrency overtakes Bitcoin (BTC) in terms of market capitalization.
Ethereum is considered the most likely option by many crypto investors – including Jordi Alexander, CIO of Selini Capital. In an interview with Crypto Banter, Alexander said that he’s not really a proponent of the flippening, but believes it will happen at some point.
“I do think it’s going to happen, temporarily at least. It may not stick. I think it’s likely that it will flip and then we’ll see a re-flip,” the CIO said. Further, he stated that he is generally an advocate of Ethereum as it has a lot of use cases as a decentralized app network.
“But I’m not one of the believers in ultra sound money,” Alexander continued, stating that the meme that ETH is a better version of Bitcoin and a better version of money, in his opinion, completely misses the point of game theory and psychology of crypto.
Not a meme, on the other hand, is a supply squeeze that Ethereum will see at some point, he said. “I think it’s a great tech investment. And I think the tokenomics are great and that we’ll see a supply squeeze at some point. […] It’s not just a meme. At some point you will run out of coins and where we will see an explosive movement,” Alexander predicted.
For retail investors, Alexander recommended that they allocate half of their capital to Bitcoin and Ethereum, with a weighting of 60% ETH and 40% BTC, considering the current market conditions. The remainder he would allocate to identifying new narratives.
Ethereum (ETH) Could Outperform Bitcoin
Not only the CIO of Selini Capital but also the senior analyst at Bloomberg Intelligence, Mike McGlone, predicts an outperformance of Ethereum versus Bitcoin. McGlone stated yesterday that Ethereum could be the top candidate to keep topping the first-born cryptocurrency.
“Ethereum’s advances vs. Bitcoin have been unshaken by 2022 deflation in most risk assets and may be gaining underpinnings,” McGlone said. As the Bloomberg analyst notes, the Ethereum/Bitcoin ratio is currently around 0.08, the same level as in May 2021, when the Nasdaq 100 stock index was about 20% higher.
Our graphic shows the trend of the no. 2 cryptocurrency outperforming no 1, which appeared coincident with the rise of risk assets. […]
Migration into the mainstream is our takeaway, and once dust settles from some reversion in risk assets amid inflation pressures, Ethereum is more likely to resume doing what it has been — outperforming.
Chris Burniske who led ARK Invest’s crypto efforts and is now a partner at Placeholder VC commented:
ETH will make its most serious attempt yet for #1 position next expansion.
The expert referred to a tweet by Ryan Berckmans, in which he outlined that Ethereum is well on its way to the flippening. “The ratio has never done so well in a bear market,” Berckmans stated.
At press time, the Ethereum price stood at $ 1,211 and was rejected at crucial resistance at ,220.