Cryptocurrency Tokens Launched in 2022 Were Pump-and-Dump Scams
Approximately one-quarter, or 24%, of cryptocurrency tokens launched in the previous year, showed indications of being involved in pump-and-dump fraud, according to a report from blockchain intelligence firm Chainalysis. This type of fraud, which is prevalent in traditional finance, is executed when scammers promote stocks they own to other investors, causing the price to skyrocket. At a specific point, the fraudsters sell their overpriced shares for a profit, causing the price to collapse. Chainalysis indicated that this is mainly due to the ease with which bad actors can launch a new token and manipulate its value by controlling the initial trade volume and circulating supply to establish an artificially high price and market capitalization for it. More here.
Analysis Reveals Profitability of Ethereum Staking: Binance Research Report
Binance Research has recently conducted an analysis on the profitability of Ethereum staking, revealing that a significant minority of ether holders who have staked their ETH in Ethereum’s Beacon Chain over the past three years are currently in profit, while the majority are underwater. Ethereum staking is a form of passive investing, where users lock their ETH tokens to validate transactions in return for an annualized staking yield of approximately 4%. Since Beacon Chain went live in December 2020, over 16.5 million ether, worth $27.7 billion, have been staked. According to Binance Research, 31% or 5.115 million ETH is in profit, while the remaining 11.385 million ETH are in loss. Details here.
European Central Bank Develops Digital Euro Amid Geopolitical Tensions
The European Central Bank (ECB) is exploring the possibility of developing a digital currency, in an effort to safeguard itself against potential conflicts with the United States and China. The ECB has been researching the feasibility of a digital euro since October 2021, with a decision on whether to proceed to the testing phase to be made by EU heads of state this autumn. The motivation for a digital euro arises from concerns that the Eurozone could become caught between US big tech companies and Chinese payment systems, with a resulting lack of digital platforms. Guido Zimmermann, senior economist at German bank LBBW, commented on this, stating: “The ECB is worried that the eurozone will end up in a geopolitical and economic sandwich position between the big tech companies of the USA and the payment systems of China without a digital euro.” More here .
Binance to Pay Monetary Penalties for Regulatory Violations in the U.S.
Cryptocurrency exchange Binance is expected to face fines from U.S. regulators as part of ongoing investigations, according to the firm’s chief strategy officer, Patrick Hillmann. In an interview with The Wall Street Journal, Hillmann stated that the company, which began operations in China in 2017, had initially been run by software engineers who were unfamiliar with the legal and regulatory frameworks governing the cryptocurrency industry. While Binance has since made efforts to improve compliance, Hillmann said that regulators are likely to impose fines for past conduct. Binance is among several large exchanges facing U.S. investigations into their crypto offerings. The company is not available to U.S. traders, according to Hillmann Full report here.
Credit Suisse and Deutsche Bank lead the $65M funding round for Taurus SA’s digital asset platform
Digital asset infrastructure provider Taurus SA on Thursday announced a $65 million Series B capital raise from strategic investors, including banking giants Credit Suisse and Deutsche Bank. Other institutional investors include Pictet Group, Cedar Mundi Ventures, as well as Series A investors, Arab Bank Switzerland, and Investis, a stock-listed real-estate group. The company stated that the transaction was approved by the Swiss Financial Market Supervisory Authority (FINMA). The funds will be used to support Taurus’ growth strategy across three main priorities – hiring top engineering talent to further develop its platform, expanding its sales and customer success organization with new offices in Europe, UAE, the Americas, and South-East Asia, and maintain stringent security, risk, and compliance requirements across product lines, processes, and organizations. More here.
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Berkshire Hathaway’s Charlie Munger Slams Cryptocurrency: “It’s Just Ridiculous,” “an Absolute Horror”
Continuing his disdain for cryptocurrency and its advocates, Berkshire Hathaway Vice Chairman Charlie Munger said there was no rational argument for the digital assets and described them as “worthless,” “no good,” “crazy,” and “unspeakable.” He was speaking during a live-streamed interview with CNBC at the Daily Journal’s annual shareholders meeting on Wednesday. Munger’s latest attack on cryptocurrency comes after he wrote an opinion piece in the Wall Street Journal advocating for a ban on cryptocurrency. In the piece, he argued that crypto was “an antisocial, stupid, and immoral use of government power,” and that it has “a lot of really bad people who are involved in it.” More here.
Hollywood Star Keanu Reeves Praises Cryptocurrencies And NFTs As Revolutionary Tools
Canadian actor Keanu Reeves is a vocal advocate of cryptocurrency and its underlying blockchain technology calling them “amazing tools for exchanges and distribution of resources,” in a recent interview. Speaking with Wired, the star of the popular movie “The Matrix,” produced by Warner Bros. Pictures, acknowledged the volatility of cryptocurrencies but added that “to pooh-pooh crypto or the volatility of cryptocurrency, it’s only going to make it better in terms of how it’s safeguarded.” In particular, Reeves is interested in the implications of digital art technologies like AI and NFTs, noting that “there’s NFT digital art.” While he acknowledges the novelty of AI-generated art and NFTs, he is also concerned about the “corporatocracy behind it that’s looking to control those things.” Read More
Binance Accused of Secretly Accessing US Partner’s Bank Account and Transferring Millions
Global cryptocurrency exchange Binance has been accused of having secret access to a bank account belonging to its purportedly independent US partner, Binance.US, and transferring large sums of money to a trading firm managed by Binance CEO Changpeng Zhao. According to banking records and company messages seen by Reuters, more than $400 million flowed from the Binance.US account at Silvergate Bank to the trading firm, Merit Peak Ltd, over the first three months of 2021. The account was registered under the name of BAM Trading, the US exchange’s operating company. Binance.US executives became concerned by the outflows as the transfers were taking place without their knowledge, according to messages reviewed by Reuters. Read More.
Former FTX CEO Sam Bankman-Fried faces stricter bail conditions over alleged violation of court order
Sam Bankman-Fried, the former CEO of FTX, is currently out on bond but risks changing his status if he continues to defy bail conditions, according to a New York judge. B Federal prosecutors recently accused Bankman-Fried of violating a court order against using encrypted technology when he used a virtual private network (VPN) to watch the Super Bowl. B Prosecutors have asked for stricter measures, such as blocking Bankman-Fried from using internet-connected devices, including cellphones and computers, except for case-related circumstances. B During a hearing, Bankman-Fried’s lawyer argued that he needed access to the internet to prepare for his trial, but the judge appeared to side with the government, suggesting the proposed measures may not be enough to prevent Bankman-Fried from interfering with the case or breaking his bail conditions. More here.
US SEC prepares to sue TerraUSD’s issuer, Terraform Labs, for alleged investor deception
Terraform Labs, the company behind crypto stablecoin TerraUSD, is facing a potential lawsuit by the US Securities and Exchange Commission (SEC) for allegedly misleading investors about the coin’s ability to maintain a 1-to-1 peg to the US dollar. The SEC has been investigating the matter and one person familiar with the issue said the lawsuit will claim TerraUSD should have been registered with the agency. The collapse of TerraUSD last year triggered a crisis in the industry and multiple bankruptcies. Read More
CFTC charges Vista Network Technologies and its CEO with fraudulent activity
California-based Vista Network Technologies and its CEO, Armen Temurian, are facing fraud charges brought by the Commodity Futures Trading Commission (CFTC) for allegedly soliciting over $7 million in bitcoin and ether from customers through false advertising and a Ponzi-like scheme. The CFTC seeks monetary penalties, restitution, and a permanent injunction against further violations. Vista Network Technologies promised customers a 2.5% daily return or a “double in just 80 days” through trading their digital assets. However, the CFTC claims that the company never had access to the “Robot Traders” it advertised and instead used new and old customer funds to engage in fraudulent activity. Read More.
Bitcoin Surges Past $25,000 Mark Since August, Ether Climbs, Crypto-Related Stocks Edge Higher
Bitcoin briefly surged past the $25,000 mark before dropping below it again, marking the first time since August that the digital currency has hit this milestone. The surge follows a period of hovering below $22,000, with Bitcoin rising more than 9% in the past 24 hours. The boost comes as investors shrugged off the latest tepid inflation data and regulatory crackdowns on stablecoins. In addition, other major digital assets are also experiencing gains, with Ether rising nearly 9% and tokens of Polygon Network and APT increasing 12% and 9%, respectively. Crypto-related stocks, including Coinbase, MicroStrategy, and Marathon Digital Holdings, also made gains, while equity markets experienced declines.
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