Kategorie: Crypto Markets

• Poor record keeping is making the unwinding of the collapse FTX exchange difficult.
• The new FTX management is trying to trace millions of dollars from several bank accounts.
• So far, the new management has identified over $1 billion.

FTX’s new management, which took over from the founder Sam Bankman-Fried, on Tuesday told a procedural hearing that it has identified assets worth more than $1 billion since it started a strategic review of its assets. It also said that it had located about $720 million held by US financial institutions, which it is yet to consolidate.

The US financial institutions were authorized to hold funds by the US Department of Justice and about $500 million are already confirmed held in US institutions.

The new FTX chief financial officer (CFO), Mary Cilia speaking under oath during the bankruptcy hearings said:

“We are reaching out to all of those banks and changing the signatories on the accounts so that we can get access to the accounts and move the cash as much as we can to authorized depository institutions.”

$423 million held at a single broker

The CFO also mentioned that about $423 million held by US authorities are from a single broker though she never mentioned the broker by name. Cilia said, “$485 million are already in an authorized deposit institution”

Besides the funds held in the US, there is about $130 million in cash that is locked up in Japan where local authorities have ring-fenced the funds for local customers.

Steve Coverick, a senior director at FTX’s financial advisors Alvarez & Marsal told the hearing that the new management is working to identify FTX’s international crypto assets and transfer them to cold wallets using custodial providers like Bitgo, which FTX hired in November.

Difficulties in winding up FTX

While the Chapter 11 bankruptcy hearings are supposed to wind up the FTX exchange, there have been complications due to poor record keeping and weak governance under the former CEO, SBF. The new management is being forced to look for details by reviewing customer terms and conditions stored in a variety of places including Slack and Google Drive.

As a result, the exchange is yet to file a statement of its financial position or of its assets as required under the US bankruptcy law. It however estimates it could do so in April next year.

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• Waves-backed stablecoin Neutrino USD (USDN) lost its dollar peg and is currently trading at $0.5411.
• The new stablecoin will be undepeggable.
• A USDN situation resolution plan will be set in motion before the launch of the new stablecoin.

Just days after the Waves-backed stablecoin Neutrino USD (USDN) lost its dollar peg, Waves CEO and founder, Sasha Ivanov, has promised he is going to launch a new “undepeggable” stablecoin.

Ivanov made the revelations via a tweet today where he also announced a USDN situation resolution plan. Ivanov’s tweet read:

“I will launch a new stablecoin,” Waves founder wrote, adding that there is going to be a “USDN situation resolution plan set in motion before.”

Besides stressing that the new stablecoin will be undepeggable, the CEO stressed that the new stablecoin will not be launched until the USDN plan resolution is set in motion.

Neutrino USD stablecoin crisis

The Neutrino USD is an algorithmic stablecoin collateralized by Waves and pegged to the US dollar. In the past few days, the stablecoin has been struggling to maintain its 1:1 peg which it has lost by more than 45% by today.

It is important to note that the current USDN de-pegging is not the first since it saw the first major de-pegging in early April 2022 and has seen several other subsequent de-pegging.

Interestingly, the USDN de-pegging comes at a time when the WAVES token is seeing a significant price drop after the South Korean crypto exchange the Digital Asset eXchange Alliance (DAXA) issued a warning on WAVES on December 8. The stablecoin has failed to regain its dollar peg despite Waves pointing to misinformation being dismantled by centralized exchanges and saying that “no fundamental distress being present in the Waves Ecosystem.”

The post Waves planning to launch new stablecoin amid USDN crisis appeared first on CoinJournal.

• PayPal partners with MetaMask developer ConsenSys to make it easy for people to buy crypto.
• FTX founder Sam Bankman-Fried arrested in the Bahamas and faces up to 115 years in prison.
• Former US President Donald Trump launched his NFTs on the Polygon blockchain.

One of the main reasons why cryptocurrency is becoming more and more popular is because of the ability to restrict access to your personal information. From buying physical goods, digital goods, investing, refinancing or making donations, cryptocurrency is the way to go.

If you plan to continue using cryptocurrency or you are just a beginner, then you need to stay up to date with the latest trends and news. Here is a review of the month’s latest news.

Current top 10 cryptocurrencies from December

Bitcoin is the most famous cryptocurrency since its launch in 2009, but now you have many other options to choose from to diversify your crypto portfolio.

Right now the most popular cryptocurrencies are:

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Tether (USDT)
4. Binance Coin (BNB)

5. US Dollar Coin (USDC)
6. Binance USD (BUSD)
7. XRP (XRP)
8. Dogecoin (DOGE)
9. Cardano (ADA)
10. Polygon (MATIC)

Popular Crypto Wallets in December

When choosing a crypto wallet, you need to distinguish between hot and cold options.

Hot crypto wallets can be desktop, mobile or web-based applications, which require an internet connection and are therefore more susceptible to hacking and theft.

Cold crypto wallets are hardware wallets that help keep your private keys safe from hackers because they are not connected to the internet, and usually have a PIN as an extra layer of security.

Here are some options based on their popularity.

The most popular hot wallets in December were:

1. Coinbase Wallet    

2. SafePal    

3. Crypto.com DeFi Wallet    

4. Exodus    

5. Coinbase dApp Wallet

While the most popular cold wallets were:

1. Ledger crypto wallet
2. Trezor
3. Ellipal Titan Crypto Wallet

PayPal wants to offer easier ways to buy crypto with the MetaMask crypto wallet

The partnership between payments company PayPal and MetaMask developer ConsenSys is trying to enable users to choose their PayPal accounts as a payment option to buy Ether (ETH) from the MetaMask app. The offer is designed to facilitate seamless purchases and transfers of Ether from PayPal to MetaMask.

This service from ConsenSys will initially be rolled out to some selected PayPal users who are within or based in the United States.

Former FTX CEO Sam Bankman-Fried is in custody and faces up to 115 years in prison in the US

Sam Bankman-Fried, the founder and former CEO of FTX, has been arrested and detained in the Bahamas. Bankman-Fried was indicted on eight charges that include wire fraud of various types and conspiracy to defraud the United States.

The eight charges issued by the United States Attorney’s Office, Southern District of New York, against Samuel Bankman-Fried are as follows:

1. Conspiracy to commit wire fraud on customers

2. Wire fraud on customers

3. Conspiracy to commit wire fraud on lenders

4. Bank fraud on lenders

5. Conspiracy to commit fraud in goods

6. Conspiracy to commit securities fraud

7. Conspiracy to commit money laundering

8. Conspiracy to defraud the United States and violate campaign finance laws

According to CNN, if Sam Bankman-Fried (also known as “SBF”) is convicted of all eight counts, he could end up with a monumental 115-year prison sentence.

Trump lanserer NFT Card Collection

The former 45th President of the United States, Donald Trump announced the launch of his new non-fungible token (NFT) trading cards on December 15, 2022. Trump’s NFT trading cards are created using the Polygon blockchain because the network “describes itself as environmentally friendly and carbon neutral , which makes it better for the environment.”

This came as a surprise given Trump’s previous opposition to cryptocurrency. He called Bitcoin a “fraud”. He also stated: “I am not a fan of Bitcoin and other cryptocurrencies, which are not money and have value that is highly volatile and based on thin air”, in a tweet dated July 2019. “Unregulated cryptoassets can facilitate illegal behavior, including drug trafficking and other illegal activity”.

Trump’s website clarifies that the cards are only “intended as collectibles for individual enjoyment only, not for investment“.

Questions you should ask yourself before buying crypto in 2023

Don’t forget to ask yourself some questions and do a thorough research before creating your 2023 crypto strategy.

Some questions to guide you: Should you be involved in crypto investing or trading? How to manage risk in the crypto market? How to set smart crypto investment goals? How to choose a crypto to invest in? How to choose a safe crypto exchange to trust and put your money in? How is the crypto tax situation in Norway?

Have a nice Christmas and a happy New Year!

The post Top crypto news from December 2022 appeared first on CoinJournal.

• Brazil recently passed a bill to officially legalize cryptocurrency payments in the country.
• Gleec BTC Exchange is taking advantage of the situation in Brazil by acquiring Blocktane.
• Blocktane is a Brazilian-based exchange founded in 2020.

Just days after Brazil passed a bill legalizing cryptocurrency payments in the country, Gleec BTC Exchange has moved to expand its presence in Brazil by acquiring Blocktane, a Brazilian-based exchange.

According to Gleec BTC Exchange, the acquisition of Blocktane includes the acquisition of Blocktane’s legal entity, its online domains and its brand name. Gleec BTC will also take charge of Blocktane’s native token BKT as well as its treasury inventory.

Acknowledging the acquisition, former Executive Chairman of Blocktane, John Willock said:

“We are pleased to partner with Gleec to bring their tool and products to Blocktane’s users in Brazil, and their first entry into that domestic market.”

Spurring the adoption of Gleec’s services

Expansion of Gleec BTC Exchange will likely lead to the adoption of the other crypto services offered by Gleec which offers a wide ecosystem of services including the popular play-to-earn crypto game Gleec Racing, plus Gleec Card.

Currently, Gleec BTC is already an established business in El Salvador, where it offers a digital point-of-sale tool called Gleec SV.

Legalization of crypto payment in Brazil

Gleec BTC Exchange’s acquisition just days after Brazil passed Bill No. 4,401, which legalizes payments using cryptocurrencies. The bill was passed after years of discussions and comes after the creation of a regulatory structure to govern crypto payments by the Brazilian Chamber of Deputies.

It is also a few days after the Brazil Central Bank revealed they are working on a central bank digital currency (CBDC).

The new law is expected to act as a huge boost for Gleec BTC Exchange and the newly acquired assets within Brazil. Following the acquisition, the exchange is expected to begin operating in Brazil in the next few weeks as it eyes a wider expansion into larger Latin America.

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• DeFi continues to attract more users with strong products and services across segments such as decentralised exchanges, lending protocols and staking.
• Users across the sector increased by 31% quarter on quarter in 2022, although that pales compared with the 525% spike seen in 2021.
• Latest estimates for total DeFi users suggest the number will surpass 5.5 million in Q4, 2022.

Decentralised finance, or DeFi, remains big, though not with the same numbers as seen a year ago. In 2021, user numbers skyrocketed 545% as cryptocurrencies boomed on the back of a staggering bull run.

While DeFi statistics for 2022 show a decline in user growth amid the year-long crypto winter, the sector still witnessed a 31% increase in users. The quarter on quarter increase in users was captured in the latest report on DeFi growth by HashKey Capital.

DeFi users have surpassed 5 million

As HashKey Capital analysts highlighted in their recent report, DeFi is not just eating into the traditional finance, or TradFi market, but it’s also curving its own new market. The trend relates to what is a “blue ocean market,” the report noted, with the DeFi sector’s new and innovative services capturing demand that’s adding to the steady growth in users.

A drop in total value locked (TVL) – it is now below $40 billion as per DeFiLlama, still doesn’t tell the whole story of decentralised finance in the past one year.

Overall, user wallets across DeFi segments such as decentralised exchanges (DEXs), lending, collateralized debt positions (CDPs), bridges, staking and yield, surpassed 5 million in the third quarter of 2022. It is estimated DeFi users will number more than 5.5 million by the end of Q4, 2022, with a growth projection of 8% during the quarter.

Projects use crypto winter to build and improve

A look at market prices shows that most assets in the space have plummeted in value and the DeFi index has shrunk by 76%, compared with a 65% decline for Ethereum. But despite this, projects have used the crypto winter to build and improve their products, attracting more users.

The sector has also seen continued investment from venture capitals. For example, the first half of 2022 saw VC invest more than $14 billion across 725 projects in the crypto space. Many of these were DeFi-focused.

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