As an experienced financial analyst, I’m closely following the latest developments in the cryptocurrency space, and this week’s news has been particularly intriguing.
This week, Republican presidential hopeful Donald Trump expressed support for digital assets, earning himself the moniker “crypto advocate.” Meanwhile, Tether unveiled intentions to pour as much as $1 billion into artificial intelligence (AI), financial infrastructure, and biotechnology projects. StarkWare made headlines by revealing plans to integrate its scaling technology into the Bitcoin network.
Bitcoin
As a crypto investor, I’m excited to hear that StarkWare, the team behind Starknet, plans to extend their scalability technology to the Bitcoin network. They made it clear that this expansion won’t result in a fork or the creation of a new token for Starknet. Instead, their main commitment is to enhancing Ethereum‘s scaling using Zero-Knowledge Proofs and validity rollups.
On Wednesdays morning, there was released inflation figures that surpassed expectations, causing Bitcoin’s price to rise. Yet, Federal Reserve Chair Jerome Powell expressed a more aggressive stance towards monetary policy, which tempered enthusiasm and explained that the inflation data didn’t deviate significantly from forecasts.
The Industrial and Commercial Bank of China (ICBC), the world’s biggest financial institution, has endorsed Bitcoin and Ethereum, referring to them as “digital gold” and “digital oil” respectively. According to ICBC, Ethereum has solidified its position as the “digital oil,” empowering various applications within the Web3 infrastructure.
During a recent gathering with Bitcoin miners, Donald Trump, the Republican presidential candidate, expressed his desire for all forthcoming Bitcoin to be mined within the US borders. He emphasized that this move would significantly contribute to America’s energy independence and self-sufficiency. Moreover, Trump suggested that Bitcoin mining could potentially serve as a protective measure against the implementation of a central bank digital currency (CBDC) by other countries.
As a crypto investor with a keen interest in the political landscape, I’m thrilled to share some intriguing news. US Congressman Thomas Massie recently disclosed that a Bitcoin-centric book, “The Bitcoin Standard,” has influenced his decision to reintroduce legislation aimed at abolishing the Federal Reserve. This bill, which garnered backing from the Bitcoin community and several Republican co-sponsors, is an exciting development for those of us who believe in the potential of decentralized currencies like Bitcoin.
Business
Tether, the stablecoin issuer, has unveiled intentions to allocate up to a billion dollars towards various technological investments. Among these sectors are Artificial Intelligence (AI), Biotechnology, and Financial Infrastructure. The company’s Venture Capital arm has already put $2 billion into several technology projects.
The globally leading cryptocurrency exchange, Binance, disclosed that its user base has surpassed 200 million individuals, making up more than a third of the world’s crypto asset holders. Furthermore, the platform revealed it manages over $100 billion worth of digital assets on behalf of its clients.
Security
UwU Lend has declared a reward of $5 million for anyone who can assist in dealing with the attacker behind the recent exploitation of their protocol, which has resulted in over $24 million in losses during the two occurrences. These incidents have raised concerns among many about the security of the funds associated with UwU Lend.
A cybercriminal responsible for the Orbit Chain heist, which occurred on New Year’s Eve and resulted in a loss of $82 million, has recently transferred $48 million of the pilfered funds to the cryptocurrency tumbler Tornado Cash following a five-month period of inactivity.
Regulation
A US judge has approved a $4.5 billion settlement between Terraform Labs and Do Kwon, and the US Securities and Exchange Commission (SEC). Consequently, Terraform Labs and Do Kwon are barred from participating in the crypto industry. They are obligated to pay a total of $4.5 billion, which includes disgorgement, prejudgment interest, and civil penalties.
During a recent fundraiser, Republican presidential hopeful Donald Trump referred to himself as the “hidden” or “covert” president in relation to cryptocurrencies. Trump expressed his opposition to regulatory initiatives led by the Securities and Exchange Commission (SEC) and the Democratic party concerning the crypto industry.
As a financial analyst, I would express it this way: With the MiCA regulations set to take effect by year-end, Tether’s USDT, being the largest and most widely used stablecoin globally, may face restrictions or even be prohibited from operating within Europe. The implications of such a ban for USDT are significant as it could lead to reduced liquidity in European markets and potential disruption to trading activities. Moreover, European users might seek alternatives, creating opportunities for other stablecoins to capture market share. Conversely, Tether may look into complying with the new regulations, which could involve substantial effort and costs. Overall, the impact on both USDT and the European market remains uncertain and will depend on the specifics of the regulatory framework and how market participants respond.
The Zimbabwean government is soliciting opinions on digital asset regulations as they work on developing a thorough cryptocurrency regulatory structure, all while dealing with rampant inflation. A special committee has been formed within the country to interact with crypto businesses operating under their authority.
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2024-06-16 12:50