3 days ago • cryptodaily
CoinMarketCap announces Catalyst, a European Web3 Conference
Dover, United States, 21st March, 2023, ChainwireCoinMarketCap has announced its plans to launch a new Web3 conference, which will host an unbeatable lineup of brilliant thinkers, elite projects, virtual visionaries, and crypto futurists all under one roof.The conference, “Catalyst”, will take place in Europe in Q4 of 2023 and will bring together the best and brightest minds in Web3, to spark new ideas, opportunities, and collaborations.Rush Luton, CEO of CoinMarketCap. “Catalyst, our flagship web3 conference, will bring together experts from all corners of this new industry to collaborate and learn about upcoming trends, challenges, and opportunities in a world moving towards global adoption. As its name suggests, Catalyst is designed to spark new ideas and initiatives that will shape the future of digital assets for the better. This is a new category of event and will be a Web3 event at the largest scale. Catalyst will be the place to be if you want to be on the frontline of crypto.”The conference will feature a global and cross-industry assortment of crypto, NFTs, A.I., GameFi, and DeFi experts reimagining the future of everything.As a neutral hub, providing unbiased market information, CoinMarketCap is uniquely positioned to connect various industries across multiple sectors. CoinMarketCap’s mission with Catalyst is not only to unite all corners of crypto, but to serve as the bridge between “TradFi (Traditional Finance)” and “DeFi (Decentralised Finance)”; and progress Web3 to the next big thing.Hosting the event in Europe, one of the world’s leading crypto hubs, also reflects CoinMarketCap’s goal of providing a venue that will be a melting-pot of some of the most exciting Web3 projects and thinkers.CoinMarketCap is diversifying its offering. From being purely a data-aggregator and provider of price charts, Catalyst is the first step in a bold new direction that brings crypto to the global stage in a new and interactive way - through talks, presentations, workshops, networking events and much more.For more information on tickets or get involved in CoinMarketCap Catalyst, visit: https://coinmarketcap.com/events/catalyst2023ContactEvents [email protected]
4 days ago • cryptodaily
DeFiChain Becomes One of the First Blockchains to Fully Integrate Euro Coin, a Euro-backed Stablecoin
Singapore, Singapore, 20th March, 2023, ChainwireDeFiChain, the world’s leading blockchain on the Bitcoin network dedicated to bringing decentralized financial applications and services to everyone, has announced the debut of the Euro-backed stablecoin Euro Coin (EUROC) on its native blockchain. DeFiChain is one of the first blockchains to fully integrate a Euro-backed stablecoin.On DeFiChain, the EUROC will have the same support as the USDC and USDT. It means Cake DeFi will act as a custodian and issue dEUROC, a dAsset representing the EUROC stablecoin on the DeFiChain DEX. Users will also be able to transfer it from Ethereum to DeFiChain and vice-versa via the Quantum Bridge. In the near future, DFX Swiss, a gateway between fiat and crypto, will also add an easy Euro to EUROC on-ramp for DeFiChain users.Full rewards became available on Block #2,772,200 at ~10AM UTC on Monday, March 20th. The dEUROC-dUSD pair will get 5% of the dAsset block rewards while the dEUROC-DFI will get 0.74% of the crypto block rewards. The actual APRs could vary based on the block reward allocation dedicated to the new pools.Andreas Osberghaus aka mrgrauel, a community member and the Creator of the DFIP to bring EUROC to DeFiChain, said, “Having a Euro stablecoin on DeFiChain has been a long-standing desire within the community, aiming to simplify the entry process for new users from the Eurozone. That's why I decided to set up a DFIP (DeFiChain Improvement Proposal). Now, no one is forced to convert to US dollars or take on currency risk any longer.”The special DeFiChain Improvement Proposal (DFIP) to bring EUROC to DeFiChain received an overwhelming response from the community, with 96.51% of the 1,862 votes in its favor.The Euro Coin (EUROC) maintains a 1:1 ratio with the Euro, meaning for every Euro-backed stablecoin issued, the issuer Circle holds an equivalent amount of Euro in reserve. There has been a growing demand for the Euro-backed stablecoins in the crypto ecosystem. The dEUROC can either be held as an investment, traded on the DeFiChain DEX, or used for Liquidity Mining to earn attractive rewards.The availability of EUROC will help bring more liquidity on the DeFiChain DEX. It will allow users to invest with Euro instead of USD, improving the user experience for most European users and accelerating adoption. Users will be able to use EUROC to easily move Euro liquidity on-chain, accept and make euro payments globally, and access crypto capital markets for trading, borrowing, lending and more.DeFiChain is a fully decentralized blockchain with on-chain governance. Since its mainnet launch in May 2020, the project has seen an enthusiastic involvement from the community in almost all aspects of the blockchain, from masternodes, projects, tools, governance, economic ideas, to code governance. Its codebase has been developed in an open source manner, and widely peer-reviewed and discussed by many.About DeFiChainDeFiChain is a decentralized Proof-of-Stake blockchain created as a hard fork of the Bitcoin network to enable advanced DeFi applications. It is dedicated to enabling fast, intelligent, and transparent decentralized financial services. DeFiChain offers liquidity mining, staking, decentralized assets, and decentralized loans. The DeFiChain Foundation's mission is to bring DeFi to the Bitcoin ecosystem.For more information, visit: Website | Twitter | Discord | GitHubContactBenjamin [email protected]
17 days ago • cryptodaily
DeFiChain To Sponsor the National Fighting Championship in Germany
Singapore, Singapore, 7th March, 2023, ChainwireDeFiChain, the world’s leading blockchain on the Bitcoin network dedicated to bringing decentralized financial applications and services to everyone, is delighted to announce that its community has voted to sponsor the National Fighting Championship (NFC) this year. The NFC is the German version of the widely known UFC, in charge of the mixed martial arts (MMA) fighting league in Germany.
NFC is the biggest German MMA league, with the latest NFC event (NFC 10) reaching more than 10 million viewers worldwide. It is hosting six live events in 2023, and each event attracts 2,500-6,000 fans onsite. The fights are also broadcast on German television on Sport1 as well as on social media. DeFiChain will sponsor the following five of the six events this year:
25 March, 2023: NFC 13 Westfalenhallen Dortmund
27 May, 2023: NFC 14 Maritim Hotel Düsseldorf
16 September, 2023: NFC 15 Telekom Dome Bonn
11 November, 2023: NFC 16 Showpalast Munich
16 December, 2023: NFC 17 Maritim Hotel Düsseldorf
Michael Ortlepp, Managing Director of the NFC organizer Fighting GmbH, said, “It is a great joy and privilege for us to announce our partnership with DeFiChain. NFC as well as DeFiChain follow the same values and goals and are made for a great partnership that will have a lasting effect on the German MMA scene.”
DeFiChain has a growing community base in the German market. The opportunity to sponsor the biggest German MMA league will allow DeFiChain to attract more crypto-curious people in the German market. Prior to sponsoring the NFC, DeFiChain collaborated with several agencies to conduct market research. It found that crypto users and developers are highly interested in gaming, basketball, fighting sports and drone racing.
“I’m really happy about the partnership between us and the team of fighting.de. With the DeFiChain sponsored 10,000€ “Fighter of the Night Bonus” we are able to give the fighters the appreciation they deserve. Our community is looking forward to being part of this fantastic fighting community,” said Benedikt Keck, Project Lead NFC Sponsoring at DeFiChain.
DeFiChain will also sponsor a "Fighter Of The Night Bonus" for the best fight of the evening. The fighters will be paid directly in DFI in their Wallet. They will be able to spend it however they want, or use it to invest in dStocks or liquidity mining on DeFiChain to earn more rewards. There will also be a “Fan of the Night Bonus,” where one fan will be randomly selected during the live event and if they can show that they have the DeFiChain Wallet installed they will get 1,000 DFI.
DeFiChain is a fully decentralized blockchain with on-chain governance. Since its mainnet launch in May 2020, the project has seen an enthusiastic involvement from the community in almost all aspects of the blockchain, from masternodes, projects, tools, governance, economic ideas, to code governance. Its codebase has been developed in an open source manner, and widely peer-reviewed and discussed by many.
About DeFiChain
DeFiChain is a decentralized Proof-of-Stake blockchain created as a hard fork of the Bitcoin network to enable advanced DeFi applications. It is dedicated to enabling fast, intelligent, and transparent decentralized financial services. DeFiChain offers liquidity mining, staking, decentralized assets, and decentralized loans. The DeFiChain Foundation's mission is to bring DeFi to the Bitcoin ecosystem.
For more information, visit: Website | Twitter | Discord | GitHubContactBenjamin [email protected]
22 days ago • cryptodaily
DX25 Raises $750K Seed Funding For Advanced MultiversX-Based DEX
Schwarzenbach, Switzerland, 2nd March, 2023, ChainwireDX25 Labs has raised $750K in seed funding for its upcoming MultiversX-based decentralized exchange (DEX). The DX25 litepaper has been published as the platform prepares to launch its public testnet in Q2 2023.
Developed by Tacans Labs, the DeFi builder arm of Switzerland-based Tacans AG, DX25 is an advanced single-sided liquidity DEX built on the MultiversX blockchain. It will offer users an intuitive, easy-to-use interface with features such as concentrated liquidity, multiple fee levels, true margin and derivatives trading, and more.
The platform will leverage the benefits offered by the MultiversX ecosystem including low transaction cost, scalable infrastructure and environmentally conscious infrastructure to offer a radically different trading experience to users of the MultiversX ecosystem.
“We have developed a truly unique trading solution, setting DX25 apart from other DEXes in the crypto ecosystem. MultiversX offers a myriad of benefits and its focus on carbon neutrality drew us to develop on the blockchain. We’ve set out to develop a platform that offers users a comprehensive suite of powerful features without complicating the overall user experience” said Mathias Lundoe Nielsen, Chief Executive Officer of DX25 Labs
DX25 Labs currently has a team of over 40 staff dedicated to developing and marketing the platform. The team is led by award-winning Danish entrepreneur, Mathias Lundoe Nielsen as Chief Executive Officer, with James Davies, a TradFi and DeFi veteran serving as its Chief Product Officer. They’re joined by DeFi maverick Ivan Ivashchenko as Chief Technology Officer and Marie Tatibouet, a crypto marketing veteran as Chief Marketing Officer.
About DX25 Labs
DX25 is a feature-rich decentralized trading platform built on the carbon-neutral MultiversX blockchain. Its combination of DeFi and TradFi features sets it apart in a sea of similar DEXes. The platform is developed by Tacans Labs and has raised $750k in seed funding from private investors active in the DeFi space. The leadership team includes award-winning entrepreneur, Mathias Lundoe Nielsen, and industry veterans, James Davies, Ivan Ivaschenko, and Marie Tatibouet.
For more information, visit www.dx25.com
About Tacans Labs
Co-founded by Danish entrepreneurs Lars Seier Christensen, founder of Saxo Bank and Concordium blockchain, and Mathias Lundoe Nielsen, an award-winning serial entrepreneur with multiple tech ventures, Tacans Labs is the DeFi arm of Tacans; a web3 venture builder invested in the future economy of blockchain by building, funding and acquiring cutting-edge Web3 companies. Started in 2021, the group’s portfolio comprises of seven Web3 companies across multiple sectors with a combined valuation of $63M+.
For more information, please visit www.tacans.comContactPR ManagerDion GuillaumeTacans [email protected]
25 days ago • cryptopotato
Exorde Labs Release a Blockchain Tool to Tackle Fake News
[PRESS RELEASE – Please Read Disclaimer] By this point in time, the power of social media to inform us about local and global events is undeniable. However, the free flow of information has also made it easier for misinformation to spread like wildfire, causing real harm in its wake. Tech giants such as Facebook and […]
31 day ago • cryptodaily
Hong Kong Outlines Plans to Let Investors Trade Digital Tokens
Hong Kong has made its intention clear. It wants to re-establish itself as the digital asset hub of Asia. The city has announced various plans to attract crypto firms and investors to its shores. Its latest outlines a plan to allow retail investors to trade digital tokens such as Bitcoin and Ether.
The Strait Times reports Hong Kong is taking a significant step toward becoming a crypto hub. In contrast to the crackdown on crypto in the United States, Hong Kong has outlined a plan to let retail investors trade digital tokens such as Bitcoin and Ether. In a consultation paper published on Monday, regulators said individual investors would be allowed to trade larger coins on exchanges licensed by the Securities and Futures Commission (SFC).
Regulators added that this would only occur amid safeguards such as knowledge tests, risk profiles, and reasonable exposure limits. The regulator has not yet announced which large-cap tokens will be available to retail traders. However, the coins should be included in at least two acceptable, investible indexes from independent providers, of which one should have experience in the TradFi sector.
As it stands, Hong Kong’s current regime for cryptocurrency exchanges is voluntary and restricts clients with portfolios of at least $1.4 million. The only two exchanges permitted to operate are HashKey Group and BC Technology Group’s OSL bourse.
A spokesperson said that the consultation period would end on March 31, with the objective of allowing retail trading to commence within the new licensing regime by June 1. As Bitcoin and Ether are the two coins with the largest market capitalization, they will likely be listed by Hong Kong platforms.
Hong Kong Gets a Subtle Nod from Mainland China
Mainland China has severely cracked down on cryptocurrencies but seems to be taking a softer approach to Hong Kong’s aspirations of becoming a crypto hub. Cointelegraph reports that Beijing officials have not opposed Hong Kong’s goals as severely. Reports by Bloomberg indicate that representatives from the China Liaison Office have been making frequent trips to Hong Kong crypto meetings to understand the city’s plans. Officials have reportedly been friendly regarding the matter, which is being perceived by local crypto businesses that Beijing may be open to using Hong Kong as a testing ground for cryptocurrencies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
44 days ago • cryptodaily
CoinGecko And 21Shares Propose Crypto Classification Standards
CoinGecko and 21Shares recently released a report document on policy and classification standards to bridge the gap between policy makers and digital asset investors. Dubbed "The Global Crypto Classification Standard," the document provides a brief overview of the crypto industry and its often complicated terms and taxonomies.
The research document is designed to provide clear definitions of crypto assets, enabling policy makers to make informed decisions if one were to navigate the burgeoning crypto and digital asset space. The document is also available for download and perusal on the CoinGecko website.
CoinGecko is an independent crypto data aggregator, market intelligence, and analytics platform which provides comprehensive information for its users, including updated (and on certain points, real-time) data on cryptocurrency price, trade volumes, market capitalization, and other statistics relevant to investment decisions. 21Shares, on the other hand, is currently the industry's foremost issuer of ETPs (crypto exchange-traded products), a suite of financial products tied to crypto exchanges. Notably, 21Shares is a subsidiary of 21.co, founded by Ophelia Snyder and Hany Rashwan. 21.co is advised by Cathie Wood, CEO of Ark Invest, an investment management firm.
While the report aims to propose a standardization of the taxonomies for the crypto market, its makers have posted a disclaimer that they do not "guarantee the accuracy or completeness" of the report. This writer, for instance, has noticed several incongruencies in the document, in particular with the classifications for infrastructure-oriented Layer 2 solutions such as Polygon and Solana.
The methodology behind the research work is particularly interesting. It deviates from traditional financial systems (TradFi) and classifications in that it proposes a non-linear variance between crypto assets and other use case offshoots that have bloomed off of these. The methodology introduces three "levels" of categorization, but also fails to define the areas where certain distinctions become blurred because of overlapping functionalities.
The document does not go on to fully define what "general purpose" blockchains are, nor does it provide a differentiation between what they mean by "distributed machine states" and how "virtual machines" actually work, specifically if they are built based on DLTs (distributed ledger technologies) such as blockchains. There are also several typographic errors such as on page 8 of the document, where it misspells "programmability" on the section for Smart Contract Platforms.
The document forms a great visual overview of how crypto has evolved in the past decade since its inception, and it's a laudable effort at that. This would be helpful for first-time investors, journalists, and corporate researchers trying to get a foothold into the crypto industry.
"Cryptois still in the early days – but it is key to have a standard way to classify the asset class so investors can understand both the commonalities and differences between the various assets," shares Eliézer Ndinga, Director of Research at 21.co.
Perhaps most importantly, this document will help regulators and policymakers get a solid understanding of how far the crypto industry has evolved. The section classifying "Meme Tokens" as an asset class is particularly helpful, especially given the proliferation of scams and rug pulls across the industry. The Crypto and Web3 space is expanding at an exponential rate, with a trillion-dollar economy pushing it forth. Initiatives such as these are most welcome.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. Opinions stated herein are solely of the author's, and hence do not represent or reflect CryptoDaily's position on the matter. The author has no stakes in any of the digital assets and securities mentioned, and does not have any significant hold of own any cryptocurrency or token discussed.
45 days ago • cryptodaily
Uniswap V3 Will Expand To The Multi-chain Layer-2 Boba Network
Cross-chain interoperability will catalyze decentralized finance growth and opportunities. It is pertinent for existing and new protocols to gain traction across robust networks. Uniswap V3 will make its way to Boba Network and explore L2-based opportunities.
Uniswap V3 Expands to Boba
Most people know Uniswap V3 as the leading decentralized exchange. It has the highest volume of all DEXs, even if its liquidity has decreased somewhat in recent years. However, it's also a project that wants to expand to other compatible networks. Like other protocols, such decisions are often voted upon through governance tokens and a DAO structure. The decentralized governance approach aims to give everyone an equal say in these matters.
One expansion avenue for Uniswap is the exploration of Layer-2 blockchains. Numerous networks exist, including Arbitrum, Optimism, and Boba Network. That latter network will soon be home to Uniswap V3's trading solution, as the community voted to explore this option. Bringing the DEX to more networks will enhance overall liquidity and trading volumes.
Enya Labs' CEO and co-founder Alan Chiu adds:
“Boba Network’s Hybrid Compute will make it possible for ecosystem developers to build a new generation of hybrid on-chain/off-chain DeFi applications atop of Uniswap. While the Uniswap protocol will remain permissionless, developers will be able to build a compliant layer atop of it that leverages Hybrid Compute to tap existing, TradFi-friendly KYC/AML services. As a result, Uniswap will become more accessible to the larger institutional market.”
The Boba Foundation and FranklinDAO put forward the proposal to bring Uniswap to Boba. A total of 51.01 million votes registered in favor of this expansion. As a result, Uniswap V3 will roll out to the network over the coming few weeks. Moreover, the expansion ensures Uniswap will be active across six blockchains, including Ethereum, Polygon, Arbitrum, Optimism, and Celo.
Why Boba Network Makes Sense
Bringing Uniswap V3 to another chain is about more than tapping into additional liquidity. It also expands the community to encompass members of Boba's multichain ecosystem. In addition, users benefit from faster transactions and lower fees, paving the way for new trading strategies. Furthermore, it gives Uniswap a broader appeal across Asian markets like South Korea and Japan.
A crucial objective is ensuring Uniswap gains sufficient traction on Boba Network. Therefore, the Boba Foundation has committed $1 million in BOBA tokens to prominent ecosystem projects fueling this adoption. Plus, the liquidity is a strong incentive to boost liquidity on Uniswap V3 through the Boba Network. Rewards will be distributed from a multisig wallet controlled by the Uniswap Grants Program and Boba Foundation.
For Uniswap, the rollout to a multichain layer-2 scaling solution is significant. Boba Network offers multichain support for Avalanche, BNB Chain, Moonbeam, and Fantom. As such, it isn't unthinkable to see Uniswap V3 expand to any of those networks in the future.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
45 days ago • cryptodaily
WeTransfer To Launch NFTs With Blockchain Partner Minima
The file-sharing service WeTransfer has partnered with the blockchain platform Minima to launch non-fungible tokens (NFTs) on the network.
Now Users Can WeTransfer NFTs
WeTransfer users will soon be able to generate NFTs directly from their phones using the file-sharing app. The company has teamed up with Layer-1 blockchain and peer-to-peer network, Minima to set up a digital platform for the minting, sharing, and selling digital assets like NFT. The platform, which is currently in its testnet phase, will be made available to 180 countries with the launch of Minima’s globally distributed communications network in March.
Addressing the collaboration, Damian Bradfield, Chief Creative Officer at WeTransfer, said,
“WeTransfer is thrilled to work with Minima, whose vision is aligned strongly with ours to seamlessly connect people and facilitate innovation and creativity without sacrificing privacy.”
Minima Values Data Privacy
The Minima coin is the native currency for the blockchain and allows users to conduct peer-to-peer transfers without involving a third party. The NFT minting service will enable Minima cooperative users to create their own assets and share them on the network. Speaking on the partnership, Minima CEO Hugo Feiler commented,
“We as a partnership look forward to supporting the development and acceleration of creativity in the digital age where individuals retain ownership and control of their work. This partnership will explore the practical use of NFT technology, something which interests not only the crypto industry, but will be a test case to demonstrate the potential of wider adoption of this innovative digital tool.”
Additionally, creators will also be able to collect royalty payments for every sale and resale of their NFTs. However, in order to use the service, users will need to run a Minima code.
Are NFTs Making A Comeback?
WeTransfer still has a chokehold on the file transfer and file-sharing market. According to recent data, over 70 million people use WeTransfer to send around 2 billion files every month. Introducing NFT functionalities to such an expansive user base would expose a significant number of people worldwide to Web3 technology.
NFTs and NFT platforms have been a method of choice for many companies looking to upgrade their offerings into the Web3 space. For example, the fantasy sports platform, Sorare, has recently signed a deal with Premier League to sell official digital sports cards of players from all 20 Premier League clubs. Despite the challenges of 2022, the NFT market is gradually clawing its way back into the mainstream once again, as is evident by the OpenSea NFT toolkit launched recently to help creators.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
47 days ago • cryptodaily
Crypto Weekly Roundup: EU Stablecoin, Binance Card, And More
The crypto market appears to be recovering, and the gradual upward movement has increased investors' hopes. Let’s find out more.
Bitcoin
In a recent SEC filing, the electric vehicle manufacturing company reported a loss of $140 million on its net Bitcoin holdings.
Bitcoin-based payments network and financial application Strike has announced that it is expanding its Bitcoin Lightning Network-powered money transfer services to the Philippines.
As Bitcoin looked to be running out of puff after a 44% pump since the first of January, many investors may have been taking profits in BTC.
Ethereum
Ethereum Layer-2 scaling solution Optimism has announced plans to issue a major upgrade to enhance network performance, which is scheduled for March.
Ethereum's scheduled Shanghai hard fork is going forward, and details for a public testnet dubbed Zhejiang have been released.
Altcoins
The Cardano-based Djed stablecoin (DJED) has attracted over 27 million ADA tokens as reserves less than a day after its launch.
Binance’s BUSD stablecoin has seen a sharp fall in market capitalization, as its circulating supply dropped to $15.4 billion on Wednesday.
Technology
Helsinki-based fintech company Membrane Finance launched Europe’s first fully-reserved, EU-regulated stablecoin, and payments network, EUROe.
The Kin Foundation announced the launch of Kinetic, its flagship middleware (integration ramp/tool) built off of the Solana ecosystem.
Business
The bankrupt cryptocurrency lender BlockFi has obtained approval to sell its crypto mining equipment as it tries to repay its creditors.
The prepaid Binance Card is currently in beta testing and is being launched in Brazil by a Binance-Mastercard partnership.
Regulation
Federal Reserve Chairman Jerome Powell announced the possibility of another couple of rate rises before pausing for the rest of 2023.
The United States Department of Justice has launched a probe into Silvergate Capital Corp. and its dealings with bankrupt crypto firm FTX and its sister concern Alameda Research.
A lawsuit against Coinbase and its CEO, Brian Armstrong, was dismissed on Wednesday as the judge exposed a flaw in the plaintiffs’ claim.
The Independent Community Bankers of America (ICBA) are calling for lawmakers and regulators to rein in the cryptocurrency industry.
Hong Kong remains steadfast in its pursuit of becoming Asia’s digital-asset hub despite the catastrophic fallout from the collapsed crypto exchange FTX.
The judge presiding over the SEC’s case against the decentralized publishing platform LBRY has ruled that the secondary sales of LBC do not qualify as the sale of securities.
The United Kingdom has opened a consultation on new rules for regulating the crypto sector, similar to traditional finance (TradFi).
India’s annual Economic Survey has been published, and crypto concerns have been extensively discussed.
NFT
YouTuber Logan Paul has been named in a class-action lawsuit against his project CryptoZoo, which has been accused of fraudulently stealing millions from investors.
Mastercard’s former NFT product lead alleged workplace mistreatment and sold his resignation letter as an NFT.
Despite the market downturn, the Premier League has finalized a deal with French fantasy sports platform Sorare to launch NFT collections.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
49 days ago • cryptodaily
DoJ Looking Into Silvergate’s Dealings With FTX
The United States Department of Justice has launched a probe into Silvergate Capital Corp. and its dealings with bankrupt crypto firm FTX and its sister concern Alameda Research.
Prosecutors Launch Silvergate Investigations
The FTX debacle of 2022 has continued to have consequences across the industry, including on certain firms in the TradFi sector. It has also incited the Department of Justice into more focused action by charging the CEOs of FTX and Alameda Research with fraudulent activities.
An inside source has reported that the DoJ is now looking into the operations of Silvergate Captial Corp., the parent company of the fintech and crypto-focused Silvergate Bank. The bank, which was one of the chief backers of FTX, witnessed over two-thirds of its customer base withdrawing deposits of over $8 billion after the crypto exchange collapsed. This resulted in a net loss of $1 billion for the bank in the fourth and final quarter of 2022.
Criminal Probe Underway
The collapse of the FTX ecosystem spelled major trouble for Silvergate, as it had been hosting several accounts tied to several businesses associated with FTX founder Sam Bankman-Fried. As a result, the company’s shares lost 88% of their value in 2022 and were down 40% in premarket trading. The bank has had to resort to drastic layoffs to mitigate the damages incurred by it.
On top of that, the crypto-focused bank has been facing increasing scrutiny, especially from government bodies and policymakers. For example, federal prosecutors in the DoJ’s fraud section are conducting a criminal probe into the bank’s dealings, especially those with FTX and Alameda Research.
Could Silvergate Be Charged?
Most recently, the firm was requested by a bipartisan group of United States Senators for details of its risk management practices and further information on its dealings with FTX. In addition, the increasing judicial scrutiny has continued to weigh down Silvergate’s performance, as it has created FUD among wary investors. Although no charges have been brought against Silvergate, that eventuality is a possibility, especially in light of the current environment and the anti-crypto sentiments among most U.S. government departments.
Silvergate’s Struggles
Silvergate used to be a small US organization till it went public in November 2019. Soon it entered the crypto market and became a significant feature as a bank for crypto companies that were turned down by traditional banking service providers. Its shares reached a peak in 2021, growing over 1500%. However, the exodus of customers and deposits in the wake of the FTX debacle has resulted in a loss of over $700 million, completely wiping out all its profits since its birth.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.