Kategorie: Crypto Business

The collapse of FTX and Alameda Research hasn’t affected the USDT stablecoin, thanks to Tether’s issuance policy.

Tether, the company issuing the USDT stablecoin, has revealed that the recent collapse of the FTX exchange and its Alameda Research hedge fund, doesn’t have a negative impact on its ecosystem.

According to Tether’s latest blog post, the company’s issuance policy protects it from Alameda’s failure. Alameda Research is one of the leading issuers of the USDT stablecoin.

Tether explained that its USDT stablecoins are issued when institutional parties send USD to Tether. The company issues the USDT on a 1:1 basis corresponding to the amount of USD sent to Tether. 

Tether added that it converts the USD into reliable, liquidity and conservative collateral ( US Treasuries, etc.). This implies that all USDT stablecoins are fully collaterised by Tether’s reserves, and every USDT can be redeemed 1:1 with USD.

As a large issuer of USDT, Alameda Research sent Tether USD, and Tether issues USDT. The USD from Alameda Research remains in Tether’s custody, but they are not on Alameda’s balance sheet. The collateral backing Alameda’s USDT is not on Alameda’s balance sheet, Tether added. 

Tether revealed that Alameda can still redeem any USDT they have  USD via Tether’s redemption facility. The company further added that it doesn’t have any outstanding loans of USDT, of Tether’s reserves, or of any other funds whatsoever. Tether wrote that;

“The main problem countless other companies are facing is that they recklessly lent Alameda various assets relying on extremely illiquid collateral. Since Alameda cannot repay those loans at this time, those companies have a hole in their balance sheet. This is not how USD₮ issuance works and is not behavior Tether engaged in with Alameda in any way.”

Tether also clarified its lending process. The stablecoin issuer said the only time it engages in lending is when it is based on over-collaterisation with extremely liquid assets. 

Some cryptocurrency lenders, including Voyager Digital and Celsius, have been struggling in recent months. Binance US is preparing another bid to acquire Voyager Digital following FTX’s bankruptcy proceeding. 

Tether pointed out that it believes the approach of many lenders in this industry has been reckless, lending huge quantities of money, and accepting FTT (and other illiquid assets) and pinky swears as collateral. 

Despite the struggles of some companies like Alameda Research and Celsius, Tether said its operations were not disrupted. 

The post Tether’s USDT issuance protect’s the stablecoin from FTX-Alameda’s crisis appeared first on CoinJournal.

Bankruptcy filings have called out Sam Bankman-Fried (SBF) and the entire FTX team for a complete failure of corporate controls.

The latest bankruptcy filings have blasted SBF and his executives for completely failing to have a handle on their corporate affairs. 

FTX’s bankruptcy lawyers claim that SBF is actively trying to disrupt the entire bankruptcy process for the various entities that fall under his company. According to the new CEO and lead lawyer, SBF is currently fighting against the lawyers and executives hired to handle the bankruptcy process. 

The lawyers have filed an emergency petition to transfer the Chapter 15 bankruptcy proceedings in the Bahamas to the United States Bankruptcy Court in Delaware. The move is designed to ensure that the various bankruptcy cases are handled in a single US court. Adam Landis, a partner at Landis, Roth & Cobb, said;

“In terms of the celebrity of Mr. Bankman-Fried, his unconventional leadership style, his incessant and disruptive tweeting since the Petition Date, and the almost complete lack of dependable corporate records, these Chapter 11 Cases are unprecedented. Mr. Bankman-Fried, the co-founder, and controlling owner of all of the Debtors and of FTX DM, appears to be supporting efforts by the JPLs to expand the scope of the FTX DM proceeding in the Bahamas, to undermine these Chapter 11 Cases, and to move assets from the Debtors to accounts in the Bahamas under the control of the Bahamian government.”

SBF and his team were criticised for their complete lack of corporate handle on the company’s affairs. Chicago-based attorney John J. Ray III, who was appointed the CEO of FTX after the collapse and is currently handling the bankruptcy filings, attacked the way SBF handled the company. He wrote;

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” wrote Ray, a corporate clean-up specialist who is a veteran of the Enron bankruptcy. “From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

In this latest cryptocurrency news, Ray revealed that most of FTX’s books were not audited. Hence, the information in the company’s books might not be accurate. He added that SBF is actively trying to undermine the bankruptcy procedure, clarifying that the former CEO no longer speaks for the company.

A balance sheet of Alameda Research revealed that the hedge fund lent $1 billion to Bankman-Fried personally, another $2.3 billion to a company called Paper Bird Inc., $543 million to co-founder Nishad Singh, and $55 million to executive Ryan Salame

The post FTX’s bankruptcy filings show ‘complete failure of corporate controls’ appeared first on CoinJournal.

With its new cryptocurrency payment options, Cloudzy could be on a path to becoming a globalised VPS service.

 

Cloudzy, the New York-based tech company and one of the leading holdings in the VPS industry, announced today that their new cryptocurrency payments are a step towards the goal of making a globalised VPS service a reality. 

Cloudzy already had cryptocurrency payment options implemented as part of its anonymous VPS package; however, whereas many companies would suffice to have multiple crypto payment options, Cloudzy is on a mission to improve and tune its payment apparatus as much as possible through updates and optimisations. 

The end goal, of course, is to have a fully global VPS service that can provide its packages to users from all around the world. In other words, with Cloudzy, if you have an internet connection, then you can also have a VPS connection. 

This is great news for aspiring developers and business owners that are looking to branch out and represent themselves internationally but simply do not have the technical means of making a payment happen. 

There are also a lot of existing Cloudzy clients that pay with conventional means but prefer fewer fees and no middleman in their transactions. With the greater implementation of Cryptocurrency payment solutions as part of the global VPS project, these users can also start paying with crypto for their subscription services.

“The Cloud technology itself is a decentralized one, so, we as a company do understand the benefits of incorporating similar technologies that also follow this model. Cloudzy, as a collective, understands the need for a globalized VPS, and our recent step towards more integration of crypto payment options is part of the effort to make our services available to all users regardless of where they’re from. We hope this step proves effective so we can follow up with more efforts to protect our user base’s privacy and right to services.” Said Hannan Nozari, the CEO and Founder of Cloudzy, on the prospect of a global VPS service by Cloudzy.

Cloudzy is a leading VPS service company based in Brooklyn, New York. You can learn more about their global VPS project here.

The post Prospects of a Global VPS: Cloudzy’s Ace in the Hole appeared first on CoinJournal.

• DBS Bank’s pilot will involve 1000 consumers and six merchants.
• It’s part of the Project Orchid, an effort aimed at laying the technological infrastructure needed for the rollout of a digital Singapore dollar.

Singapore’s DBS, the leading lender across Southeast Asia, has introduced the country’s first Singapore dollar (SGD)-based programmable money pilot for real-world transactions.

In an announcement on Monday, 31 October 2022, DBS Bank said it would be partnering with the Open Government Products (OGP) to trial purpose-bound money-based vouchers. 

The PBM vouchers, according to the banking giant, will use tokenised Singapore dollars to enable real-world programmable money transactions with merchants.

DBS pilot part of digital Singapore dollar project

The pilot program is part of Project Orchid, an effort that’s aimed at developing the technological infrastructure key to the launch of a programmable digital Singapore dollar (DSGD). 

The Monetary Authority of Singapore (MAS) leads the Project Orchid effort, which brings together government and major payments and financial industry players.

According to Shee Tse Koon, Singapore Country Head of DBS, the pilot is a demonstration of the feasibility of programmable money and its potential benefits to the payments system – including in fostering efficiency, trust and inclusivity.

“This solution could help businesses and NGOs leapfrog into the future of money. ‘Purpose bound money’ will be immensely transformative especially when governments, businesses and individuals come together with a collective vision to adopt the use of digital money on inter-connected networks to realise a fully transparent and efficient global financial infrastructure for payments,” Koon added.

The transactions leverages the blockchain, with DBS-issued DSGD used to create the PBM vouchers. The program also relies on OGP-powered smart contract capabilities, allowing for issuance and self-executed distribution to designated recipients.

Success for the pilot could see the use of tokenised SGD rolled out to the benefit of thousands of small businesses. DBS believes more than 28,000 coffee shops, hawker centres and restaurants within Singapore will benefit.

The pilot kicked off on 27 October 2022, and will involve six merchants and up to 1,000 consumers. DBS expects the trial to run for four weeks.

The post DBS trials digital Singapore dollar with government vouchers appeared first on CoinJournal.

• SWALLOW is a new digital platform that’s looking to onboard tattoo artists and fans into the metaverse.
• The Enjinstarter-backed platform went live with over 25 partners and 100+ tattoo artists.

SWALLOW, the Web3 platform backed by blockchain-based gaming and entertainment launchpad Enjinstarter, has officially launched.

Per a press release the SWALLOW team shared, the project seeks to bring the tattoo community, from top tattoo artists to their fans and enthusiasts, to the metaverse.

The new platform will make it easy for tattoo artists to leverage Web3 technology to grow their global reach, with enthusiasts getting the best of the tattoo world for their avatars and skins.

SWALLOW aims to bring the real-world tattoo community to Web3

With this launch, metaverse-goers and the broader blockchain gaming community have a platform where they can represent themselves via tattoos and skins accessed from leading artists across the space.

The tattoo artists industry will also benefit from this by getting an avenue to expand their reach beyond their physical studios, with digital assets, Web3 and NFTs making it possible to achieve more visibility through scalable, cutting-edge technology.

Apart from becoming a hub for everything tattoos in the metaverse, SWALLOW also opens up the real-world tattoo community to the financial benefits of the new digital frontier.

According to an announcement from SWALLOW, more than 100 tattoo artists are already signed as part of the community, including Aaron Dellla Vedova whose customers include podcaster Joe Rogan. Others are Instagram star erek Turcotte and Sullen Clothing founder Ryan Smith.

SWALLOW has also partnered with more than 25 companies in the arts, entertainment and gaming sectors. These include Heavy Metal Magazine, Another1, and Polygon-based platform Bloktopia.

According to the SWALLOW roadmap, future developments includes the launch of SWALLOWnet Marketplace, staking rewards, and Genesis NFT mint. There’s also a SWOL  initial DEX offering (IDO) and SWOL staking planned for Q1, 2023.

The post Web 3 platform SWALLOW launches to bring tattoos to the metaverse appeared first on CoinJournal.