The Crypto Whirlwind: Major Developments Unfold
This past week in the crypto universe felt like being on a teeter-totter – just when you think the ride is over, you’re whipped up in the air again! Major players are closing their shop doors while fresh faces in the crypto scene are throwing down their own cash and features. Who knew cryptocurrency could mimic a soap opera?
Binance Connect: Closing Time
On August 16, Binance’s regulated buy-and-sell arm decided it was time to pack it in. After losing its payments provider quicker than you can say “volatile market,” Binance Connect, once known as Bifinity, shut down its operations. Launched in March 2022, it aimed to bridge the gap between crypto and traditional finance. Unfortunately, that bridge collapsed under regulatory pressure, leading the exchange to face the ire of various authorities. Litigation is all the rage this year!
What Went Wrong?
- Loss of card payment services which was akin to losing your bike keys.
- Continued scrutiny from both the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission.
- Struggling to keep crypto transport up and running.
Prime Trust: A Bankrupt Dilemma
In a plot twist that no one saw coming, crypto custodian Prime Trust filed for Chapter 11 bankruptcy protection. Reports suggest they owe between $100 million to $500 million while having only $50 million to $100 million in assets. Talk about living beyond your means! With about 25,000 to 50,000 creditors left hanging, it seems Prime Trust’s financial situation could be described as “critically deficient.”
BitGo Strikes Gold
But it’s not all doom and gloom! BitGo, the cryptocurrency custody platform, has raised a whopping $100 million in fresh funds despite losing some battles in court. This Series C funding by new investors based in the U.S. and Asia puts the company’s valuation at a dazzling $1.75 billion. Looks like the custody game just got a little sweeter for BitGo!
What’s Next for BitGo?
- Strategic acquisitions to widen their net.
- Enhanced custody services and wallet solutions.
- Globally expanding infrastructure — sounds fancy!
PayPal’s Bold New Move
Meanwhile, PayPal decided to toss its hat in the crypto ring with the launch of its Cryptocurrencies Hub. Based on their recent updates, users will now be able to buy, sell, and hold Bitcoin and a medley of other cryptocurrencies. PayPal aims to offer a seamless exchange of its new stablecoin, PayPal USD (PYUSD), with crypto assets. It seems PayPal wants to be the cool kid on the crypto block.
The Bigger Picture: Bitcoin ETF Mysteries
Wrapping up the week, news emerged regarding the first spot Bitcoin ETF approved in the European Union while the U.S. keeps its regulatory cards close to its chest. Analyst Marcel Pechman gave listeners at Cointelegraph’s The Market Report a glimpse into these developments, emphasizing how the U.S. still struggles to navigate the murky waters of crypto ETF approval. Will the SEC ever make a move? Time will tell!
Now, as we say goodbye to yet another week full of twists and turns in crypto, let’s keep our fingers crossed for fewer plot twists and a few happy endings!
