2024-09-26 11:02

BitMex does not operate in the U.S. and is positioned more in Asia than any other part of the world. The U.S. crypto industry will diverge from the rest of the world, becoming more of a digital twin of TradFi, BitMEX Group CEO Stephan Lutz told CoinDesk. Lutz said Asia is strong and that outside the U.S., India will power the industry through the next decade. SINGAPORE —The U.S. crypto market will take a different path from the rest of the world, consolidating more with traditional finance (TradFi), because of differences in the regulatory environment and customer needs, Stephan Lutz, CEO of crypto exchange BitMEX, said in an interview at Token2049 in Singapore. "I think that the U.S. crypto businesses will pivot in one direction that is consolidating TradFi with crypto," Lutz said. "If you look at Coinbase, if you look at Circle, you look at Kraken, they are basically going more and more into becoming a digital twin of the TradFi system." The split, Lutz called it a bifurcation, means U.S. crypto businesses will focus on domestic customers, and companies from the rest of the world will stay out of the country. BitMEX itself does not operate there, having pleaded guilty in July to violating the Bank Secrecy Act and failing to set up an adequate know-your-customer (KYC) and anti-money laundering (AML) program between 2015 and 2020. In 2022, co-founders Arthur Hayes, Benjamin Delo and Samuel Reed were fined a total of $30 million for violating money-laundering rules. Instead, BitMEX is more prominently placed in Asia, said Lutz, who was previously a partner at PwC after spending time at Deutsche Boerse, the operator of Germany's largest stock exchange. The industry has been "begging for issue-specific legislation in the U.S. for years," he said, though he's not optimistic of the chances for crypto legislation moving through the Senate before November's presidential election. "Market institutions in Asia will take advantage of America's confusion." Asia and India Unlike the U.S. and European Union where almost everyone has access to the conventional banking system, Asia has the banked – family offices, accredited investors and wealthy corporates – alongside the so-called unbanked, who comprise more than half of the continent. It's that group that needs alternative services such as international remittances from family members working abroad to support relatives at home, a real use case. "This is why you have a bifurcation of the markets. You serve completely different needs," Lutz said. According to Lutz, outside of the U.S., India will power the crypto industry in the next 10 years provided the companies are reasonably open and if policymakers understand that crypto "actually adds to their capability of maintaining" monetary policy independence. Read More: Fed Rate Cut Could Crash Crypto Markets, but Era of Central Banks Is Over: Arthur Hayes https://www.coindesk.com/business/2024/09/26/us-crypto-industry-will-follow-a-different-path-from-rest-of-world-bitmex-group-ceo/

2024-09-26 09:23

“crvUSD is overexposed to minor stablecoins, especially TUSD which has a dubious track record and has recently been charged by the SEC with defrauding investors,” the proposer wrote. A new proposal on Curve Finance suggests removing TrueUSD (TUSD) as collateral for its stablecoin, crvUSD, due to concerns over TUSD's stability and regulatory issues, reducing its backing limit to zero. The proposal also recommends decreasing the minting capacity of crvUSD with PayPal's PYUSD from $15 million to $5 million, as part of a strategy to diversify collateral and reduce reliance on potentially risky assets. The SEC earlier charged TrueCoin, the original issuer of TUSD, with defrauding investors by not fully backing TUSD with U.S. dollars, leading to a settlement involving fines and the return of profits. A new proposal on Curve Finance, a decentralized exchange (DEX) for stablecoin trading, is contemplating the removal of TrueUSD (TUSD) from its list of collateral tokens for its stablecoin, Curve USD (crvUSD). Curve Finance is one of the largest and most used decentralized finance protocols, holdings billions of dollars in user funds. It is autonomously governed by its CRV token holders, who float and vote on proposals to keep the protocol running. “WormholeOracle” proposed reducing the upper limit on TUSD backing for crvUSD to zero, meaning that TUSD tokens can no longer underpin crvUSD if the proposal is passed. They also recommended reducing the minting capacity of crvUSD with PayPal's stablecoin, PYUSD, from $15 million to $5 million, aiming for a more balanced reliance on different collateral assets. “crvUSD is overexposed to minor stablecoins, especially TUSD which has a dubious track record and has recently been charged by the SEC with defrauding investors,” WormHoleOracle wrote in the proposal. “It may be prudent to consider completely removing crvUSD exposure to TUSD, which has a notably poor track record on peg stability and transparency standards compared to all other PegKeeper stablecoins.” Currently, users can mint up to $10 million worth of crvUSD using TUSD through what's known as the 'PegKeeper' liquidity pool. A liquidity pool can be thought of as a collection of tokens stored on a smart contract. PegKeeper debt ceiling is the max amount of crvUSD that a PegKeeper can mint to a target crvUSD pool. Historically, the USDC/USDT pools have been the primary liquidity centers and most useful PegKeeper pools for keeping crvUSD pegged to its intended U.S. dollar-backed - ensuring crvUSD is equal to $1 at all times. The move is part of a broader strategy to diversify and ensure the stability of crvUSD by reducing reliance on any single asset, or group of assets, that are deemed risky. It comes after regulatory concerns and legal challenges faced by TrueCoin, the original issuer of TUSD before it ended up in the hands of offshore firm Techteryx. TrueCoin was earlier accused by the U.S. Securities and Exchange Commission (SEC) of engaging in unregistered offers and sales of securities involving TUSD through TrueFi, a stablecoin platform, and the agency said they remained closely tied to the asset after unloading the stablecoin to the other issuer. The SEC alleged that TUSD was not fully backed by U.S. dollars as claimed, but instead, a significant portion of its reserves (allegedly 99%) was invested in a speculative offshore fund. Earlier this week, the companies agreed to pay $163,766 each in fines, and TrueCoin will return nearly $400,000 in profits and interest, assuming a federal court approves the settlement. https://www.coindesk.com/markets/2024/09/26/curve-finance-mulls-removing-trueusd-as-collateral-for-stablecoin-curve-usd/

2024-09-26 08:10

Holder count has zoomed to 12,400 unique wallets with over $48.5 million in volume traded over the last 24 hours, a fan page for the token said Wednesday. Moo Deng, a baby pygmy hippo, has become an internet sensation, leading to the creation of a Solana-based memecoin that has surpassed a $100 million market cap. One trader notably turned $1,331 into $3.4 million by investing in the Moo Deng memecoin. Her appeal has transcended individual internet users to encompass corporations including Dreamworks and UFC, which are creating memes based on the hippo. Moo Deng, a newborn Thai hippo at the Khao Kheow Open Zoo in Bangkok, has captured the hearts of many online through her cute antics. Now, she's the star of a $100 million memecoin. The Solana token crossed the milestone capitalization earlier Thursday, becoming one of the few to reach that level from zero in recent months, CoinMarketCap data shows. It's also the first Thai-themed token to hit that market cap, though it's not a Thai project per se, according to Udomsak Rakwongwan, a professor at Kasetsart University and co-founder of decentralized exchange FWX.Finance. "There used to be other memes in Thailand, but they were not so successful because they began in Thailand," he said. "There was a token about ex-junta prime minister. It went quite viral, but the price and market caps didn't go anywhere." "Moodeng is a little different," because the hippo has been on major global media and appeals to a global audience rather than a token about a politician that only Thais would know. Holder count has zoomed to 12,400 unique wallets, with over $48.5 million in volume traded over the last 24 hours, a fan page for the token said Wednesday. One trader made millions from the hippo heartthrob, with on-chain data from Lookonchain showing a wallet that turned $1,331 into $3.4 million by correctly timing the market. Moo Deng – which means bouncy pork in Thai – was born in July and became a popular Internet meme earlier this month after images of her went viral online. She has two siblings, brother Moo Toon (stewed pork) and sister Moo Waan (sweet pork). They also birthed tokens on Solana and other networks, but failed to catch the traction that Moo Deng did. Companies including Dreamworks and UFC are using Moo Deng’s popularity to produce memes based on the hippo, a shift away from the usual cats or dogs. The Bangkok zoo is reportedly working on copyrighting and trademarking "Moo Deng the hippo" for fundraising purposes. So far, it hasn’t acknowledged the memecoin or any crypto-related Moo Deng imagery. Meanwhile, some see the token as a fresh, engaging memecoin with genuine appeal due to its cute and interesting theme. “I believe Moodeng is EXACTLY what meme coins should be like,” X user and crypto trader @0xuberM said. “Something genuinely cute/interesting with crazy normie appeal that will capture enough attention over a sustained period of time to guarantee PVE expansion where everyone eats.” https://www.coindesk.com/markets/2024/09/26/crypto-inspired-by-moo-deng-zooms-to-100m-as-hippo-meme-takes-over-internet/

2024-09-26 07:40

The post-Fed risk-on rally supports the normalization narrative, but some indicators disagree, suggesting caution to bulls. The post-Fed risk-on rally supports the normalization narrative. Some indicators, like the unemployment rate, the ratio between leading and lagging economic indicators, and the gold-oil ratio, disagree, pointing to an impending slowdown. Since the U.S. Federal Reserve (Fed) cut rates by 50 basis points a week ago, the debate has been raging on whether the so-called easing represents the normalization of an overly tight monetary policy aimed at taming inflation or preparation for an impending economic swoon. Risk assets, including pure fiat liquidity plays like bitcoin (BTC) and altcoins, have rallied since the Fed decision, a sign that markets perceive the rate cut as a normalization move. Some analysts foresee accelerated gains once bitcoin surpasses the $65,200 resistance. However, at least three indicators point to an economic malaise ahead, suggesting caution on the part of the bulls. Perhaps, the Fed delivered an outsized rate cut, taking note of these forward-looking indicators. Rising joblessness The U.S. Household Survey, which tracks the unemployment rate across 50 states, Washington D.C., and Puerto Rico, showed that as of August, more than 57% of states experienced an increase in joblessness compared to the preceding month and the same period last year, according to data tracked by MacroMicro. The fact that most states are witnessing an uptick in the unemployment rate means the risk of reduced income, consumer spending and investment, and a decline in business and consumer confidence in the months ahead, potentially leading to a marked economic slowdown, if not an outright recession (consecutive quarters of economic contraction). A slowdown could see investors scale back exposure to riskier investments. "According to August's analysis, 57.7% of U.S. states reported higher unemployment rates than the previous month and year. This points to increasing challenges in the labor market, possibly signaling a more widespread slowdown," MacroMicro said on X. Lead/lag ratio Conference Board's Leading Economic Index (LEI) fell to 100.2 in August, falling to its lowest since October 2016. The index marked its sixth consecutive monthly decline, triggering a recession signal. The LEI comprises several forward-looking indicators such as average weekly hours in manufacturing, average weekly initial claims for jobless insurance, ISM new orders index, stock prices and leading credit index. The index is widely tracked to identify shifts in economic trends and turning points in asset prices. More concerning is the slide in the ratio between leading and lagging indicators to under 0.85, the lowest since at least the 1950s, according to data tracked by Jeff Weniger, head of equities at WisdomTree. The plunge seen over the past several months points to a potential slowdown or recession, with lagging indicators catching up to the economic reality. The ratio has seen eight similar meltdowns in the past, each portending a recession. Surging gold/brent ratio The ratio between prices for gold futures and brent crude futures has surged over 35% this year to nearly 40 points, the highest since 2020, according to data source MacroMicro. Gold is a safe haven asset and an inflation hedge, while oil is tied to global demand and economic activity. Therefore, gold's prolonged outperformance relative to oil is often taken to represent a sign of economic slowdown. https://www.coindesk.com/markets/2024/09/26/key-indicators-challenge-feds-normalization-rate-cut-that-torched-bitcoin-rally/

2024-09-26 06:15

Data from SoSoValue shows that the total daily net inflow cracked $100 million for the second day in a row for the BTC ETFs amid global monetary easing. PLUS: Worldcoin is up double digits as World ID expands to more countries. Bitcoin traded above $63,000, experiencing a slight daily decline but a weekly gain, with BTC ETFs seeing significant positive net inflows, indicating a trend towards accumulation. China is reportedly considering a substantial 1 trillion yuan capital injection into its major state banks to bolster the economy, following the People's Bank of China's decision to cut the reserve requirement ratio and lower the repo rate. Ether traded above $2,500 with a weekly increase, despite a small daily drop, with its ETFs also showing positive inflows. Meanwhile, WorldCoin’s WLD tokens surged by 14% following expansion announcements and developments at OpenAI. Bitcoin (BTC) traded above $63,000 for the first half of the Asian trading hours on Thursday, down 1.4%, but up 2% on-week as inflows into BTC exchange-traded funds (ETFs) remain positive. Asian stocks surged higher amid reports that China is considering injecting up to 1 trillion yuan ($142 billion) of capital into its biggest state banks to increase their capacity to support the struggling economy. This follows an easing decision from earlier in the week that saw The People's Bank of China (PBOC) cutting the reserve requirement ratio for mainland banks by 50 basis points (bps) while also lowering the seven-day reverse repo rate – the interest rate at which a central bank borrows funds from commercial banks – by 20 bps to 1.5%. Data from SoSoValue shows that the total daily net inflow cracked $100 million for the second day in a row for the BTC ETFs. This marks a five-day streak of positive net inflow for the funds. That has flipped an indicator tracking 30-day net holdings among ETFs to positive for the first time in September, data from CryptoQuant shows, suggesting a rising trend of accumulation as opposed to sales. Meanwhile, ether (ETH) is trading above $2,500, down 1.3% on-day and up 8% for the week. Data shows that spot ETH ETFs had daily net inflow of $43 million, marking a second day of positive net inflow. In a recent note, Presto Research wrote that rising Ethereum gas fees, driven by an increase in network transactions, have coincided with ETH outperforming BTC following the Fed's 50 basis points rate cut. While on-chain yields remain below the three-month treasury bill, some investors are positioning for a potential recovery in total value locked (TVL), Presto Write. However, a broader capital migration may not happen until 2025. Sam Altman-backed WorldCoin’s WLD jumped 14% in the past 24 hours to become one of the only gainers in the broader crypto market. The company on Wednesday said it had begun its verification services in Poland, Malaysia and Guatemala over the past week - onboarding more users and boosting the project's fundamentals. The rise came amid an executive shuffle at OpenAI - another Altman company - and a switch in the company’s status from a nonprofit to a for-profit benefit corporation. WLD tokens have historically tended to move on development at OpenAI as crypto traders may consider the two closely related. https://www.coindesk.com/markets/2024/09/26/bitcoin-etf-demand-grows-among-us-investors-as-china-considers-massive-142b-capital-injection/

2024-09-26 04:22

WazirX, which lost $234 million in a hack, had filed an application with the Singapore High Court for a six-month moratorium. WazirX has been granted a four month moratorium under certain conditions. The Indian cryptocurrency exchange lost $234 million, some 45% of customers' funds, in a hack in July. A Singapore court has granted Indian cryptocurrency exchange WazirX a four-month moratorium based on certain conditions on Thursday, the company said in a statement shared with CoinDesk. The conditions imposed on WazirX include revealing the addresses of its Wallets through a court affidavit, responding to users' queries, revealing its book of accounts within six weeks, and ensuring that any future voting on the way ahead is conducted on an independent platform. WazirX, which lost $234 million in a hack, some 45% of customers' funds, had filed an application with the Singapore High Court for a six-month moratorium. The hacker behind that July hack has nearly finished laundering the stolen funds, using Tornado Cash to obscure the transactions. Earlier, the crypto exchange's legal advisers said WazirX customers are unlikely to be made whole in crypto terms. The Judge in the case heard the matter on Wednesday, and on Thursday, she delivered a verdict. During the proceedings on Wednesday, she asked the legal representatives of WazirX to "think about" releasing the details of any assets the exchange had other than the tokens it held. The Judge said the exchange acted on "good faith" by stepping up and seeking a moratorium, according to an industry source. "Our immediate filing for the moratorium was a decisive step taken to ensure the fastest, fairest, creditor-approved, legally binding path to resolution where creditors have a token choice and potential upside in a bull run," said Nischal Shetty, Founder of WazirX in a statement. Read More: WazirX Hacker Is Almost Done Laundering $230M Stolen Funds https://www.coindesk.com/policy/2024/09/26/singapore-court-grants-wazirx-four-month-conditional-moratorium-source/