Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:
More regulation breakthroughs 🥊
New crypto regulations have been established, with the latest news from the UK government looking to regulate both crypto trading and lending.
The UK finally reveals plan to regulate crypto trading and lending https://t.co/dsPrg3mnni
— The Block (@TheBlock__) February 1, 2023
Moreover, Hong Kong has released a new proposal to regulate stablecoins.
The Hong Kong Monetary Authority proposes to bring certain activities related to crypto stablecoins into regulation, including the need to apply for a license; not to accept algorithmic stablecoins; not to engage in lending business. Read more: https://t.co/adZw5H14dC
— Wu Blockchain (@WuBlockchain) January 31, 2023
One glaring omission is algorithmic stablecoins, as Hong Kong requires all regulated stablecoins to have enough assets in their reserves to back up the circulating supply of the stablecoin.
Meanwhile, Montenegro seems to be partnering with Ripple to launch a central bank digital currency (CBDC).
Ripple scored another digital currency pilot project in Davos. https://t.co/S0KUyep3ig
— Cointelegraph (@Cointelegraph) January 30, 2023
This is rather interesting as Montenegro still uses the Euro as its national currency, even though it is not an EU member.
Twitter’s new licence applications spark hope for DOGE 🐕
As Elon Musk plans to achieve his vision of building a super app, Twitter is applying for multiple regulatory approvals to integrate payments into the app.
Elon Musk pushes forward with Twitter payment master plan https://t.co/fOpkrypSzz
— Financial Times (@FT) January 30, 2023
There has been heavy speculation that DOGE could be one of the cryptocurrencies that are being used for payments on Twitter, which has led to a huge pump in its price.
Dogecoin (DOGE) price goes up over the past week as on-chain activity sees a significant hikehttps://t.co/hRYInkSGYy
— crypto.news (@itscrypto_news) February 1, 2023
You can find out how Elon’s takeover may have certain implications on crypto here.
However, Twitter may soon have a competitor in the form of Damus, a decentralised social networking app built on Nostr.
The application was recently listed on the Apple App Store after receiving 3 rejections.
APPROVEDhttps://t.co/oipEFwaTcg
— Damus⚡️ (@damusapp) January 31, 2023
Damus utilises a decentralised network for messaging which is uncensored, and has also integrated the Bitcoin Lightning network for payments within the app.
New ‘algorithmic’ stablecoin launches 🚀
The Cardano network has been boosted after the launch of the new decentralised stablecoin, DJED.
Djed is LIVE!!!https://t.co/a9CWJtT4z4
— COTI (@COTInetwork) January 31, 2023
Visit https://t.co/p7eV0jd400$DJED $SHEN $COTI @InputOutputHK @Cardano@Cardano_CF pic.twitter.com/9W7au8imrr
This stablecoin is issued by COTI, in partnership with the Cardano foundation. While algorithmic stablecoins have received a bad reputation after the crash of Terra, COTI is trying to distance itself from it by branding DJED as an overcollateralised stablecoin.
As we approach the launch of Djed, we believe it is important to educate more on the category of stablecoin to which Djed belongs. Learn why $DJED should be referred to as an overcollateralized stablecoin, and not as an algorithmic stablecoin.
— COTI (@COTInetwork) January 9, 2023
https://t.co/eljjVYO9OI
$COTI pic.twitter.com/CKbY4yDle9
There are 3 different tokens that are involved in maintaining DJED’s peg to the US dollar:
- DJED stablecoin
- ADA (deposited to mint DJED)
- SHEN (reserve coin that provides extra liquidity)
DJED aims to maintain an overcollateralisation ratio between 400 – 800% for DJED and SHEN.
This interesting strategy of maintaining the peg will be heavily scrutinised, particularly since multiple stablecoins like UST and USN have failed.
Celsius examiner report released 📝
An independent report has been published regarding the bankruptcy filing of Celsius by bankruptcy examiner Shoba Pillay.
The Celsius examiners report has been published. 🚨 Almost 700 pages to go through but it starts like this.
— Pete No Stop (@petenostop) January 31, 2023
“The business model Celsius advertised and sold to its customers was not the business that Celsius actually operated…”https://t.co/DWQ4S3iMr7 pic.twitter.com/5tVnx6tfqJ
A lot of interesting findings have surfaced, including how Celsius used customer deposits to meet withdrawal requests.
Moreover, Tether was caught in the crossfire after it was alleged that they had borrowed funds from Celsius, amounting to more than $2 billion.
The court report shows that Celsius' lending to the USDT issuer Tether grew to over $2 billion in 2021, it also made unsecured loans to players such as Anchorage, Flow Traders, Galaxy Digital and an FTX subsidiary. TheBlock https://t.co/c2Am0oopbF
— Wu Blockchain (@WuBlockchain) February 1, 2023
However, this was later refuted by Tether’s CTO, Paolo Ardoino, where he mentioned that it was Celsius who borrowed funds from Tether, and not the other way around.
Tether never borrowed from Celsius.
— Paolo Ardoino 🍐 (@paoloardoino) January 31, 2023
The doc mixes "from" and "to".
Either is a typo or a mis-characterization.
The collapse of Celsius was rather remarkable, and you can find out what are the main lessons we can learn from this crash in our article here.
A third blockchain for BNB? 👀
The BNB Chain is expanding yet again, with the new BNB Greenfield chain.
BNB Chain is excited to announce the release of the BNB Greenfield whitepaper.
— BNB Chain (@BNBCHAIN) February 1, 2023
This new standard in Web3 data ownership and utility introduces a new structural and economic paradigm for data in the #Web3 era.https://t.co/6IZH1bJevW
[1/7] 🧵… pic.twitter.com/tlCi77ZwPb
Greenfield is a decentralised storage system that uses smart contract integrations for Web3 applications, that allows users to create, store and exchange data with full ownership.
This blockchain is mainly targeted at Web 2.0 developers and large user bases, as it aims to allow users to have greater control over their data.
BNB is now the native token of 3 different blockchains. You can find out the differences between the BNB Smart Chain and Beacon Chain in our article here.
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