Monat: Juni 2023

• MakerDAO could soon remove $390M of Gemini’s GUSD stablecoin from its reserves.
• The DAO is currently voting to decrease the maximum amount of GUSD held in Maker’s DAI stablecoin reserve to $110M.
• MakerDAO’s reserve currently holds roughly 88% of total GUSD supply.

MakerDAO, a decentralized lending platform and DAI stablecoin issuer may soon sell $390 million of the Gemini Dollar (GUSD) stablecoin issued by the Gemini cryptocurrency exchange.

The Peg Stability Module (PSM) being voted on by the MakerDAO’s community, would reduce the maximum amount of GUSD from $500 million held in Maker’s DAI stablecoin reserve to just $110 million.

At press time about 94% of those who had cast their ballots, with less than 24 hours until the vote’s conclusion, support the proposal to lower GUSD.

Gemini Dollar (GUSD) future

Given that Maker controls about 88% of the stablecoin’s $568 million circulating supply, the vote will significantly impact the future of GUSD, whose metrics have been relatively stable. Maker supports the $4.5 billion DAI’s value by holding cryptocurrencies like Circle’s USDC and GUSD in its reserve and making investments in physical assets like bonds.

MakerDAO receives a 2% annual reward from Gemini for using the token as a reserve asset. Gemini is the issuer of GUSD. However, the proposal argued that by investing in short-term US Treasuries, which currently offer a yield of around 5%, the platform could benefit from better revenue opportunities.

The proposal states:

“Reducing GUSD exposure could allow for better capital efficiency by deploying funds into higher revenue-generating opportunities.”

The vote to reduce GUSD from DAI’s reserve comes just days after the DAO voted to drop MakerDAO drop Pax Dollar (USDP) stablecoin from its reserves.

The post MakerDAO votes to decrease GUSD held in DAI stablecoin reserve appeared first on CoinJournal.

• XRP price has dipped to near $0.50 after jumping to above $0.55 on Tuesday.
• The gains followed the eventual release of documents related to a speech by former SEC official Willian Hinman.
• Analysts say XRP’s spike might have been a “sell the news event” although upside potential remains if market conditions align.

The price of XRP, the cryptocurrency of blockchain company Ripple, has declined to support at $0.50 after the momentum that pushed it above $0.55 on Tuesday faded dramatically a day later.

XRP’s rally had been propped largely by the hype surrounding the release of key documents from a 2018 speech by then SEC official William Hinman. 

While the token became crypto mega caps’ largest gainer as the documents were finally released to the public, today saw the coin flip -8.4% earlier to give up the upside ground.

The dip, which comes as the broader crypto market mirrors action on Wall Street amid investor anxiety of what comes next after today’s Fed rate decision, threatens to push XRP beneath the critical support area.

XRP price: analysts’ take

On Tuesday, crypto investor and analyst Scott Melker pointed out that XRP had “one of the clearest charts.”

This is because the price had broken downtrend, before retesting the area as well as the 50 MA as support. He noted that bulls faced a clear resistance at $0.5597, which is where XRP retreated from and likely marked the “sell the news” point following the release of the Hinman files.

Melker predicted that XRP/USD would look to retest $0.915 if the upside momentum held. That appears to be in danger with the price of XRP down 4.5% in the past 24 hours as of 10:40 am ET. Any further declines could see bears target recent support in the $0.46 region.

However, XRP is still within a symmetrical triangle on the weekly chart and crypto YouTuber and trader Crypto Rover says a breakout is imminent. As a continuation pattern, the potential flip upwards is suggested by the move to the upper converging trendline.

On the flipside, a reversal/breakdown will impact the token’s price and welcome fresh bearish pressure.

The post XRP retreats to support after Hinman documents release hype appeared first on CoinJournal.

Following a decision by a Delaware bankruptcy court, the American branch of cryptocurrency exchange Bittrex is scheduled to open for customer withdrawals on Thursday.

On Tuesday, Delaware bankruptcy court Judge Brendan Shannon authorized Bittrex US and its affiliates:

“To permit their customers holding undisputed, noncontingent, and liquidated claims to withdraw cryptocurrency assets and fiat currency from the Debtors’ trading platform to the extent of such claims.”

Bittrex withdrawals

In an email to a media outlet, Patty Tomasco, a partner at the law firm Quinn Emmanuel and Bittrex’s representative, said: “The platform will be up and running for withdrawals on Thursday, June 15.”

The exchange declared bankruptcy in May after the US government sued it and its CEO for sanctions violations. The US government has opposed the legal attempt of Bittrex to allow customers to access holdings once more. 

Tuesday’s ruling stated that future clawbacks may occur and that the judgment does not establish who legally owns those assets or whether customer claims are preferred over those of the government.

After announcing in March that it would be ending operations in the United States the following month, the exchange saw withdrawals amounting to millions of dollars. On May 8, the company declared bankruptcy.

According to the exchange, as of May 10, its US arm had $300 million in customer cash and cryptocurrency. Although transactions are typically frozen during bankruptcy proceedings, the company claimed it wanted customers to have access to their money without protracted legal battles.

Bittrex was among the first cryptocurrency exchanges to face the full wrath of the US Securities and Exchanges Commission (SEC), which has now turned its guns on Binance and Coinbase citing they are operating as an unregistered securities exchange among other things.

The post Embattled crypto exchange Bittrex US to allow withdrawals from Thursday appeared first on CoinJournal.