Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:
Huobi Korea cuts ties ✂️
The Huobi centralised exchange experienced mass outflows from the exchange, following the rumours that they had conducted mass layoffs and shut down some of their staff communication channels.
This has led to Huobi Korea looking to cut ties with the platform, where Chairman Jo Guk-Bong has announced his interest in buying over shares from Leon Lin, the founder of Huobi Global.
Trust in this centralised exchange has eroded, even though Huobi previously published their proof of assets.
This was done using a Merkle Tree Proof of Reserves, and you can find out more about it here.
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Hong Kong wants to become a crypto hub 🇭🇰
Despite the generally negative sentiment in the crypto space, Hong Kong has reiterated its intention to establish itself as a crypto hub.
This could be an indication that countries are still optimistic about cryptocurrencies despite the current fallout that started with the LUNA and UST crash.
Avalanche 🤝 Amazon
One of the largest cloud computing services will now be partnering with the Layer 1 blockchain, Avalanche.
The Avalanche blockchain operates via ‘subnets’, and companies can now deploy subnets on the blockchain via the Amazon Web Services (AWS) platform.
These subnets can operate by themselves away from the main chain, which helps to reduce congestion on the main Avalanche chain.
This also comes after last week’s partnership announcement between Avalanche and Shopify, as this Layer 1 blockchain looks to integrate more Web2 companies into the Web3 world.
Many blockchains are starting to partner with cloud services platforms, with the likes of Solana, BNB Chain and Ethereum all partnering with Google Cloud.
Binance US closes in on Voyager deal 💼
As one of the centralised platforms that declared bankruptcy in May, Voyager seemed to have been handed a lifeline by FTX US.
However, with the crash of FTX, the deal was off the table, and Binance US looked to take advantage by acquiring Voyager.
This was met with resistance by the SEC, which they stated that Binance US “failed to include necessary information in a disclosure statement”.
However, it seems that the deal is set to go through, subject to creditors voting in favour of the deal.
DCG X Gemini saga continues… 🫤
The feud between Digital Currency Group (DCG) and Gemini rages on as no solution has been found over Gemini users’ assets that were lent to Genesis (owned by DCG) when withdrawals were paused.
The 2 leaders are fighting over $900 million worth of assets that were deposited by Gemini customers, which were then used by Genesis to generate yield.
Cameron Winklevoss, the co-founder of Gemini, issued an open letter to Barry Silbert, the CEO of DCG.
In the letter, he asked Silbert to publicly commit to working towards a solution, which Silbert avoided answering.
Winklevoss issued yet another open letter, this time to DCG, calling for Silbert to be removed as the CEO of DCG.
Silbert responded in a letter to his DCG shareholders, where he mentioned that he believes his integrity and good intentions were questioned.
Amidst this entire saga, the SEC has now charged both companies with offering unregistered securities to retail investors.
If DCG does indeed go bankrupt, it could result in yet another crash, considering the extensive portfolio of companies they invested in, including the likes of Grayscale, Polygon, and BitGo.
Shanghai Upgrade soon? 🚀
Good news for ETH stakers: the Shanghai Upgrade is slated to arrive in March 2023, with a public testnet scheduled for February.
With Ethereum now transitioning to a Proof-of-Stake consensus mechanism, this has allowed ETH owners to stake ETH and earn staking rewards.
Withdrawals of staked ETH have been disabled thus far, but the Shanghai Upgrade will now allow users to unstake and claim their staking rewards.
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This will be a great way for you to earn more with your staked ETH via yield farming or depositing it as collateral for a loan.
