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Krystal Newsflash (10th March 2023)

Krystal Newsflash 10 March

Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week: 

Things are getting worse for Silvergate… 🤦🏻‍♂️

Alarm bells were ringing when this crypto friendly bank announced that it will delay the filing of its annual report.

Once the go-to fiat on-ramp service for many crypto exchanges, Silvergate will now be undergoing a voluntary liquidation.

A voluntary liquidation results in the company selling off all of its assets to pay its debts, and this amounted to a whopping $949 million loss for Silvergate.

This was mainly due to Silvergate’s partnership with FTX, and it had to process huge amounts of withdrawals as customers rushed to get their funds out of this centralised exchange.

Major centralised exchanges now have a headache, with the likes of ByBit having to suspend USD deposits after the winding down of Silvergate.

Are Proof of Reserves really sufficient? 🤔

Centralised exchanges attempted to show greater transparency by releasing Merkle Proof of Reserves.

These attempted to give their customers the confidence that all users’ assets were backed 1:1, so a bank run would not happen.

However, the Public Company Accounting Oversight Board (PCAOB) came out to declare that these reports are “incomplete”, and could even be “misleading and deceptive”.

Currently, some of the Proof of Reserves are incomplete, where they display a few major assets, while the centralised exchange allows you to trade a wide variety of tokens.

For example, KuCoin displays 4 different assets on its Proof of Reserves page: BTC, ETH, USDT and USDC.

Other centralised exchanges like Binance have recently made improvements to their reports, but this only covers 11 tokens.

At Krystal, we strongly believe in the saying: ​​’Not Your Keys, Not Your Crypto’. The only way that you can verify your assets is by taking full custody of it, such as via our Krystal wallet.

Our wallet supports 11 blockchain networks, including Ethereum, Polygon, BNB Smart Chain and Solana.

Download our mobile wallet and obtain full portfolio visibility of your crypto assets and NFTs.

Binance.US handed major victory 🏆

The deal to buy over Voyager’s assets has now been given the go-ahead by the courts.

Customers of this troubled crypto firm had their assets frozen, but they could potentially recover up to three-quarters of their holdings with Voyager.

This deal faced some friction from the ​​Securities and Exchange Commission (SEC), who claimed that redistributing funds from Voyager to Binance.US would violate US securities laws.

However, United States Bankruptcy Judge Michael Wiles rejected these arguments as the SEC seemed to be trying to protect themselves in case the deal went awry.

Goodbye SaaS, say hello to WaaS

After their previous announcement regarding the launch of a new Ethereum Layer-2 scaling solution, Coinbase will now be releasing their Wallet as a Service infrastructure.

This makes it much easier for developers to create crypto wallets for their users, which will help to onboard even more Web2 users to the Web3 world.

You no longer need to worry about securing your seed phrase, as Coinbase secures your wallet using multi-party computation technology (MPC).

Without needing to know much about how a blockchain works, users will still be able use these wallets that provide them with a familiar Web2 experience.

A seed phrase is extremely important to secure your crypto wallet, as it acts as the master password for your funds.

You can find out how to better secure your seed phrase in our article here.

Starbucks NFTs a hit 🎯

After developing their Web3 loyalty program (Odyssey), Starbucks has released its first paid NFTs for its current members.

These NFTs were sold at a price of $100 on the Polygon network, which was quickly sold out in 18 minutes despite some hiccups on the Nifty Gateway platform.

Odyssey marks a success story of a Web2 company trying to get into Web3, as the NFTs have seen significant demand from their customers.

Did you manage to purchase a Siren Collection NFT? Import your wallet to Krystal to view all of your NFTs across 11 networks!

🔍 Navigate the DeFi Space NOW with Krystal!

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