17 days ago 8 min read

Daily Coin Journal

2023-03-12

Amidst Of Severe Depegging, Is Vitalik Buterin Supporting USDC?

The collapse of Silicon Valley Bank turns out to be the largest bank to fall since the start of the financial crisis in 2008. But this turmoil has also benefited the bitcoin sector. The collapse of the bank was revealed to have $3.3 billion by American digital asset company Circle, which caused a huge tsunami in the market.

A significant depegging event was recorded by Dollar Circle (USDC), a stablecoin backed by the dollar, after its issuer revealed assets were held in the SVB. In the previous day, the price of USDC fell by more than 10%. USDC fell from its $1 fixed value and eventually traded at $0.90.

Vitalik Buterin, a co-founder of Ethereum, appears to be in favor of the depegged stablecoin during this difficult moment. According to the information, Vitalik's labeled wallet address changed a number of digital tokens into USDC.

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Binance Stops Using Auto-Conversion Policy and Moves to Several Stablecoins

On Saturday, Changpeng "CZ" Zhao, CEO of Binance, said that the company would no longer maintain its Binance USD (BUSD) Auto-Conversion policy, which had been in place since last September. Surprisingly, the action was taken after Circle's USDC stablecoin depegged as a result of its $3.3 billion exposure to the defunct Silicon Valley Bank.

Binance has reportedly ceased automatically converting new deposits of the USDC, USDP, and TUSD stablecoins to BUSD as of March 11. Users won't be able to take money out of their BUSD balances in the form of USDC, USDP, or TUSD.

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Mainnet Exploit Reason for Theft of Service Tokens According to Hedera

The creators of the distributed ledger Hedera Hashgraph have acknowledged a smart contract vulnerability on the Hedera Mainnet that resulted in the loss of a number of liquidity pool coins.

Hedera said that the hacker specifically targeted liquidity pool tokens on decentralized exchanges (DEXs) whose code was copied over from Ethereum's Uniswap v2 for usage on the Hedera Token Service.

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Maker DAO Files Urgent Plan to Address Vulnerability of 3.1B USDC

Maker DAO, the company that created the DAI stablecoin pegged to the US dollar, stated in a forum post that on March 11, the company had various collaterals "exposed to USDC tail risk" as a result of the unusual de-pegging of the USD Coin (USDC) stablecoin that had started on March 10. For the DAI stablecoin, Maker DAO presently has more than 3.1 billion USDC in collateral.

First, Maker suggests setting a debt ceiling of 0 DAI for the liquidity provider collaterals UNIV2USDCETH-A, UNIV2DAIUSDC-A, GUNIV3DAIUSDC1-A, and GUNIV3DAIUSDC2-A. In order to prevent "excessive dumping of USDC," Maker also wants to lower the daily minting limits of its USDC peg stability module from 950 million DAI to 250 million DAI and raise the fee from 0% to 1%. If the proposal is approved, Maker will also lower the daily minting limits of its GUSD module from 50 million DAI to 10 million DAI.

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30% Tax Proposed By Biden Budget On Power Used For Cryptocurrency Mining

President Joe Biden's budget proposal, which aims to "limit mining activity," might eventually subject cryptocurrency miners in the United States to a 30% tax on electricity bills.

Any company using resources, whether they are owned or rented, would be "subject to an excise tax equal to 30% of the costs of power used in digital asset mining," according to a Department of the Treasury supplementary budget explanation paper published March 9.

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KuCoin Sued By NY AG For Selling Commodities And Securities Without License

Letitia James, the attorney general for the state of New York, declared that she has filed a lawsuit against the unlicensed cryptocurrency exchange KuCoin after being able to buy and sell tokens there. Her office released a statement saying that "this case is one of the first times a regulator is arguing in court that ETH, one of the largest cryptocurrencies available, is a security.

KuCoin, which has its headquarters in the Seychelles, is accused of breaking the law when it "sold, offered to sell, purchased and offered to purchase cryptocurrencies that are commodities and securities" to residents of New York without first registering with the attorney general's office, according to the complaint, which was filed on March 9 in the Supreme Court of the State of New York County.

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Sun Injects $100 Million Due to Huobi Coin Flash Collapse

After a flash drop in the platform's native token, Chinese-born crypto tycoon Justin Sun sought to allay doubts about the stability of the Huobi exchange, one of the biggest trading platforms for digital assets.

According to data from CoinGecko, the value of the virtual coin, known as HT, quickly fell below zero at one point on Thursday before reducing some of the losses. It has lost 21% over the last day amidst a larger decline in the cryptocurrency and equities markets.

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Customer Sold 2.08 Million USDC but Got 0.05 USDT

The bitcoin market has grown as a result of Silicon Valley Bank, the largest banking crisis since 2008. When the business revealed its cash were retained in the bank, Circle and its stablecoin USDC were negatively impacted. To secure their assets, panicked cryptocurrency investors and communities sell tokens, which triggers unfortunate outcomes.

On March 11, when USDC and related stablecoins were being dumped in the crypto market, a USDC user who exchanged 2 million USDC into USDT on the chain was accidentally blocked by an MEV because no slippage was set.

After paying $45 in gas fees and $39,000 in MEV bribes, the bot generated a net profit of $2.045 million. As a result, the user traded 2.08 million USDC but only received 0.05 USDT.

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Gaming Dapps Sees Lesser Activity in February; Research Reports

According to DappRadar, the all-inclusive app store for decentralized software, digital assets, and NFTs, February is often a sluggish month for the blockchain gaming sector. According to the site, there were 12.33% fewer active unique wallets associated to gaming Dapps in February than there were in January.

Notably, on March 9, DappRadar published its monthly analysis of on-chain data for February under the title "Unlocking Exciting Developments: Why a Down Month for Blockchain Gaming is Misleading," in which the platform offers a "glimpse into the industry’s potential for growth and development, highlighting the pivotal role of gaming in driving innovation and progress."

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Binance CEO Responds To CCP Affiliation Allegations

The creator of the largest cryptocurrency exchange in the world, Changpeng Zhao "CZ," has addressed claims about his citizenship and ties to the Chinese Communist Party (CCP).

The claims were made during a recent meeting of the U.S. House Judiciary Select Subcommittee on the Weaponization of the Federal Government by House Democrat Stacey Plaskett, a representative from the U.S. Virgin Islands. The hearing centered on Elon Musk's purchase of Twitter and the following publication of "Twitter Files," which revealed the unethical practices of the dominant social media platform.

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Elon Musk β€œOpen to the Idea” Buying Silicon Valley Bank

Twitter CEO Elon Musk reportedly stated that he is "open to the idea" of purchasing the troubled Silicon Valley Bank (SIVB), according to the well-known cryptocurrency market alerts service Unusual Whales. Musk expressed interest to acquiring SIVB and be a virtual bank.

On February 10, 2023, Californian officials shut down Silicon Valley Bank and gave the US Federal Deposit Insurance Corporation (FDIC) control of it. The FDIC will be in charge of selling the bank's assets and determining how to reimburse customers under the present scenario.

The decision concludes a tumultuous week for the technologically oriented bank, whose financial difficulties sparked hysterical speculation among stockholders. Other entrepreneurs thought about withholding their funding as a result of SIVB's difficulties, which also raised concerns about a potential impact on the whole banking industry.

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Europe's Most Interested Nation in Cryptography

The Netherlands is the European country that is most interested in cryptocurrencies. The bottom of the list is occupied by Russia (where the local central bank has a largely negative outlook for the asset class).

In most nations, Bitcoin (BTC) is the most widely used digital money, followed by Dogecoin (DOGE).

According to the study's estimates, Dutch citizens had the most per-capita searches connected to cryptocurrencies (0.1299). Locals choose Bitcoin, the most valuable digital currency by market capitalization, with Dogecoin and Cardano coming in second and third, respectively.

At 0.1181 searches per person, Slovenia came in second, while Switzerland rounded out the top three. In both Alpine countries, Bitcoin, Dogecoin, and Ethereum are the most widely used digital currencies.

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Failure of Silicon Valley Bank Could Lead Run on US Regional Banks

According to former Bridgewater executive and CEO of investment firm Unlimited Bob Elliot, decisions made by the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) regarding the future of Silicon Valley Bank may have an impact on regional banks throughout the United States and put trillions of dollars at risk of a bank run.

On March 11, Elliot noted in a Twitter conversation that approximately 50% of deposits at small banks in the US are not insured. "The FDIC insures small deposits in all the banks in the US, but that only covers about 9tln of the nearly 17tln of outstanding deposit base. [...] Under the hood the coverage rate is roughly 50% across most institutions while credit unions are higher (not above)."

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Bank Of England Closes Silicon Valley Bank's UK Branch

The U.K. operations of Silicon Valley Bank have been suspended by the Bank of England (BoE). branch (SVB UK), claiming that it has a "limited presence" and no "critical functions" supporting the financial system in the United Kingdom (UK).

SVB UK will "cease making payments or receiving deposits," according to a statement from BoE on March 10; BoE plans to ask the court to put SVB UK into a "Bank Insolvency Process."

This comes after reports that Silicon Valley Bank (SVB) in the United States had been forced to close by the California Department of Financial Protection and Innovation.

The Financial Services Compensation Scheme (FSCS) would pay out "qualifying depositors" up to the "protected limit" of Β£85,000 (about $102,288 USD) or up to Β£170,000 (roughly $204,577 USD) for joint accounts, as "soon" as feasible, according to the BoE.

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When Critical Support Level Breaks, Dogecoin Price Stands 15% Chance of Declining

The price decline of Dogecoin has been moving along a downward trendline for the past five weeks, giving it a clear direction. The fact that the coin price repeatedly reversed from the resistance trendline during the decline suggests that sellers are engaged at this trendline. Here is how this trendline might continue to affect the price of DOGE and how interested traders might search for long entry points.

The gains from January month were completely erased by a V-top reversal from $0.1 psychological resistance, which drove the Dogecoin price to numerous support levels. This decline saw a loss of 34.35% as the coin price fell below the December 2022 low of $0.0677 and is now trading at $0.065.

On March 9th, a high momentum collapse from the $0.065 support showed the sellers are gearing up for additional decline. The daily candle formation, however, suggests that buyers are attempting to weaken this breakdown because it has been showing lower rejection over the past few days.

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Will Avorak AI Help Users Trade If Cardano Is At Low Point?

The price of a cryptocurrency can change drastically in a matter of hours or minutes due to market volatility. However at its present cheap price, Cardano has lately established a strong foundation, and more investors are looking to take advantage of the chance. Traders are increasingly turning to artificial intelligence (AI) tools like Avorak to assist them spot prospective trading trends and maximize their profits in light of the increased interest in Cardano and its native token, ADA.

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Amid Euro Banking Difficulties, Crypto.com's Future Uncertain

The continuous digital asset crises have made it difficult for Singapore-based cryptocurrency exchange Crypto.com to offer its consumers in the European Economic Area banking services denominated in the Euro (EEA).

According to a representative for Crypto.com, access to EEA citizens using the Single Euro Payments Area (SEPA) system has lately been restricted.

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Gemini Denies Rumors Losing Banking Partner JPMorgan

The American bank JPMorgan cut ties with the cryptocurrency exchange Gemini, according to previously updated material in a Coindesk story. The bitcoin exchange quickly refuted the report, saying the arrangement was still in place.

It is well known that JPMorgan only has two cryptocurrency clients, Coinbase and Gemini, which will began facilitating USD transactions for these two platforms in 2020. Representatives of Coinbase confirmed to CoinDesk that the partnership with JPMorgan was ongoing.

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Banks Risky to Fiat-Backed Stablecoins: CZ Binance

After the failure of two well-known banks in the United States, Binance CEO Changpeng Zhao highlighted worries about the security of stablecoins backed by fiat currencies on Twitter today.

According to Zhao's tweet, banks pose a threat to fiat-backed stablecoins. A Twitter blue user said that the creation of Bitcoin and other cryptocurrencies was a response to the old banking system's shortcomings. They said that mixing bitcoin and fiat will trap you.

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If you have any comments or feedback, just email us.

Thanks for reading,
Mary

Mary Tess
Mary Tess
5-year experience being a blind item writer. And now I decided to take my expertise and venture in this world of crypto. I visit a variety of salons for the best hearsays on the blockchain world.
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