Banking Woes and Crypto Risks
In the latest episode of the crypto saga, banks are looking to distance themselves from crypto ventures. The irony? Crypto companies are doing their best to steer clear of banking crises. Tether, the stablecoin giant, recently reported withdrawing over $4.5 billion from banks to minimize counterparty risk after Circle’s collapse following the misfortune of Silicon Valley Bank.
Ripple’s Partial Victory Against the SEC
In a turn of events that feels like a scene straight out of a courtroom drama, Ripple scored a victory against the U.S. Securities and Exchange Commission (SEC). A judge shot down a motion from the SEC to seal certain records, including internal emails that Ripple argues are vital evidence in its ongoing lawsuit. Ripple claims the documents could swing the case in its favor as the SEC continues to allege that Ripple’s XRP tokens are securities. After spending over $200 million defending against these allegations, one can sense Ripple’s palpable relief. Talk about expensive lawyers!
Tether’s Financial Resilience
Tether isn’t just sitting back; it’s flaunting its financial prowess. After yanking billions out of banks, the company noted a healthy surge in its market capitalization from $66 billion to a staggering $82 billion. In fact, Tether is now backing its USDT stablecoin with a massive 85% in cash, cash equivalents, and short-term deposits. However, let’s not forget, this is the same company that had a nasty encounter with the New York Attorney General a couple of years back for alleged misrepresentation of its reserves. Trust but verify, right?
Community Uproar Over Ledger’s Recovery Feature
Meanwhile, Ledger, the well-known hardware wallet maker, has thrown a wrench in the works with its new recovery feature, Ledger Recover. While it aims to help users retrieve their lost seed phrases, many in the crypto community are less than thrilled. The feature splits the seed phrase into three encrypted chunks—sent to various external entities for safekeeping. Critics argue this complicated setup opens a can of worms, especially considering the company’s data leak scandal from 2020. #TrustIssues anyone?
Worldcoin Fundraising Buzz
In a somewhat surprising twist, the bear market isn’t putting a damper on Worldcoin’s fundraising plans. Co-founded by OpenAI’s CEO Sam Altman, the project is reportedly in advanced talks for a $100 million funding round, aimed at launching a globally owned cryptocurrency. With plans to kickstart its blockchain protocol soon and a new gas-free crypto wallet, it seems they’re not letting the crypto winter chill their ambitions.
Economic Influences on Bitcoin
As the bear market continues, talks of lower interest rates in the U.S. swirl around, leaving many to wonder—could this be beneficial for Bitcoin? Analyst Marcel Pechman delves into the impact lower interest rates could have on Bitcoin and the broader market, connecting it to Argentina’s economic debacle where the peso has plummeted by 70%. In times of crisis, will Bitcoin shine as a safe haven? Only time will tell.
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