Of more serious concern to the company's management is the general state of the cryptocurrency market, in which Tether is a key liquidity provider. Stablecoins are critical for active traders, but the crypto winter has seen Tether's market cap drop by more than 25%.
The situation is exacerbated by the fact that much higher interest rates now offer traders numerous alternatives, besides cryptocurrencies and DeFi, to store idle cash reserves. USDT returns on major crypto exchanges are currently averaging 2%.
If the cryptocurrency recovers, Tether will likely see other competitors vying for its place. In addition to USDC, which already has 29.8% of the market and is favored by Wall Street firms such as BlackRock and BNY Mellon, megaexchange Binance itself has created its own stablecoin, BUSD. Additionally, there is the possibility that at some point a major FDIC-insured bank or central bank will offer its digital dollar.
The situation is exacerbated by the fact that much higher interest rates now offer traders numerous alternatives, besides cryptocurrencies and DeFi, to store idle cash reserves. USDT returns on major crypto exchanges are currently averaging 2%.
If the cryptocurrency recovers, Tether will likely see other competitors vying for its place. In addition to USDC, which already has 29.8% of the market and is favored by Wall Street firms such as BlackRock and BNY Mellon, megaexchange Binance itself has created its own stablecoin, BUSD. Additionally, there is the possibility that at some point a major FDIC-insured bank or central bank will offer its digital dollar.
According to the SEC publication, the organizer of the Tether Pay scheme, Rendon Duran, illegally raised capital by promising investors a return of up to 210% in 70 days, or 3% per day on their investments. Investors were guaranteed the ability to withdraw their funds at any time. Duran claimed that Tether Pay is considered “the most stable USDT smart contract” and offered users to earn even more money through attracting referrals.
The regulator warned that Tether Pay also operates under the names Tether.Pay.com, Tether Pay Ltd and Tether Pay Limited. However, all of these organizations are not registered with the SEC, which violates securities laws. Therefore, the agency called on local and foreign citizens to stop any investment in Tether Pay so as not to be at risk of losing funds. The regulator also warned the promoters of the scheme that inviting people to invest in illegal investment contracts could result in up to 21 years in prison and a fine of up to 5 million Philippine pesos (about $89,698).
Over the past 12 months, the Philippine SEC has tightened its oversight of the cryptocurrency industry and issued over 100 warnings about such schemes. Recently, the regulatory body reported on the Bitbankups scam project, the creators of which promised investors fabulous profits, but did not return their invested money.
The Central Bank of the Philippines is also suspicious of cryptocurrencies due to their associated risks. So, on September 1, the Central Bank of the Philippines suspended the registration of virtual asset service providers (VASPs) for three years.
The regulator warned that Tether Pay also operates under the names Tether.Pay.com, Tether Pay Ltd and Tether Pay Limited. However, all of these organizations are not registered with the SEC, which violates securities laws. Therefore, the agency called on local and foreign citizens to stop any investment in Tether Pay so as not to be at risk of losing funds. The regulator also warned the promoters of the scheme that inviting people to invest in illegal investment contracts could result in up to 21 years in prison and a fine of up to 5 million Philippine pesos (about $89,698).
Over the past 12 months, the Philippine SEC has tightened its oversight of the cryptocurrency industry and issued over 100 warnings about such schemes. Recently, the regulatory body reported on the Bitbankups scam project, the creators of which promised investors fabulous profits, but did not return their invested money.
The Central Bank of the Philippines is also suspicious of cryptocurrencies due to their associated risks. So, on September 1, the Central Bank of the Philippines suspended the registration of virtual asset service providers (VASPs) for three years.
Amid rumors of Huobi problems, Tron’s algorithmic stablecoin USDD has lost parity with the US dollar, and the TRX-token has fallen in price by 7.5% over the past day.
Tron founder Justin Sun denied the rumors about Huobi's problems and emphasized that users' assets are safe.
On January 3, journalist Colin Wu reported that exchange employees would begin to receive salaries in stablecoins instead of fiat currency, and those who disagree could be fired. At the end of December, his sources told about the company's plans to cancel annual bonuses and reduce the staff from 1200 people to 600-800.
Against this background, the price of the TRON (TRX) token has decreased over the past day by 7.8%, according to CoinGecko . For the week, the drop was 6.8%.
The algorithmic stablecoin USDD from Tron also reacted with a fall. At the time of writing, the asset has lost its peg to the US dollar and is trading at $0.97.
Tron founder Justin Sun denied the rumors about Huobi's problems and emphasized that users' assets are safe.
On January 3, journalist Colin Wu reported that exchange employees would begin to receive salaries in stablecoins instead of fiat currency, and those who disagree could be fired. At the end of December, his sources told about the company's plans to cancel annual bonuses and reduce the staff from 1200 people to 600-800.
Against this background, the price of the TRON (TRX) token has decreased over the past day by 7.8%, according to CoinGecko . For the week, the drop was 6.8%.
The algorithmic stablecoin USDD from Tron also reacted with a fall. At the time of writing, the asset has lost its peg to the US dollar and is trading at $0.97.
‼️ Crypto industry damage from hacks in 2022 rose to $3.6 billion
🗓 In 2022, the damage to the Web3 industry from 167 major attacks amounted to about $3.6 billion, which is 47.4% more than a year earlier, Beosin specialists said.
More than half of the total losses came from 12 incidents with cross-chain bridges — $1.89 billion. At the same time, DeFi protocols were attacked 113 times (67.6% of the total number of hacks).
During the year, serious security incidents occurred on 20 public blockchains. The top three in terms of losses were Ethereum, BNB Chain and Solana. They also excel in the number of attacks, only here the network from Binance is in the lead.
Exploitation of vulnerabilities ranked first in both frequency and damage, with $1.458 billion lost as a result of 87 exploits.
The experts noted that protocols that passed and did not pass the audit were subjected to attacks almost equally — 51.5% and 48.5% of hacks, respectively.
🗓 In 2022, the damage to the Web3 industry from 167 major attacks amounted to about $3.6 billion, which is 47.4% more than a year earlier, Beosin specialists said.
More than half of the total losses came from 12 incidents with cross-chain bridges — $1.89 billion. At the same time, DeFi protocols were attacked 113 times (67.6% of the total number of hacks).
During the year, serious security incidents occurred on 20 public blockchains. The top three in terms of losses were Ethereum, BNB Chain and Solana. They also excel in the number of attacks, only here the network from Binance is in the lead.
Exploitation of vulnerabilities ranked first in both frequency and damage, with $1.458 billion lost as a result of 87 exploits.
The experts noted that protocols that passed and did not pass the audit were subjected to attacks almost equally — 51.5% and 48.5% of hacks, respectively.
Rumors about the integration of Twitter donations in digital tokens appeared on the network
Twitter has begun testing a Coins option that allows users to reward content creators with digital tokens in the form of various reactions. Their recipients will be able to exchange assets for fiat through the Stripe payment system, blogger Jane Wong said.
"Coins" can be purchased by calling the corresponding window in the interface. Twitter's minimum payout to creators is $50.
The community did not rule out that the initiative could mark the start of Twitter using cryptocurrencies. At the moment, there is no indication that the tokens will be released on the blockchain.
In July 2022, Stripe announced a pilot project with Twitter that focuses on the introduction of cryptocurrency payouts to content creators.
Twitter has begun testing a Coins option that allows users to reward content creators with digital tokens in the form of various reactions. Their recipients will be able to exchange assets for fiat through the Stripe payment system, blogger Jane Wong said.
"Coins" can be purchased by calling the corresponding window in the interface. Twitter's minimum payout to creators is $50.
The community did not rule out that the initiative could mark the start of Twitter using cryptocurrencies. At the moment, there is no indication that the tokens will be released on the blockchain.
In July 2022, Stripe announced a pilot project with Twitter that focuses on the introduction of cryptocurrency payouts to content creators.
👀 Chinese journalist Colin Wu reported that some OTC traders in the jurisdiction refuse to accept payments in USDT on the Tron network, demanding payment in a stablecoin on the Ethereum blockchain.
At first, he suggested that this could be due to the recent news around Justin Sun and the Huobi exchange, but later explained that the reason may also be that the asset does not meet the requirements of the Chainalysis AML tools.
Colin Wu later added that Matrixport, owned by Bitmain co-founder Jihan Wu, suspended deposits and withdrawals of USDT (TRC20) as early as January 9 and has not made any announcement since then other than announcing a partnership with Chainalysis.
At first, he suggested that this could be due to the recent news around Justin Sun and the Huobi exchange, but later explained that the reason may also be that the asset does not meet the requirements of the Chainalysis AML tools.
Colin Wu later added that Matrixport, owned by Bitmain co-founder Jihan Wu, suspended deposits and withdrawals of USDT (TRC20) as early as January 9 and has not made any announcement since then other than announcing a partnership with Chainalysis.
Blockchain project Venom Foundation launches $1 billion fund to invest in Web3
Abu Dhabi-licensed blockchain platform developer Venom Foundation has launched a $1 billion venture capital fund in partnership with Iceberg Capital.
A structure called Venom Ventures Fund (VVF) invests in innovative protocols and Web3 applications for long-term trends such as payments, asset management, DeFi, banking and GameFi.
It is assumed that VVF will finance projects and teams from seed rounds to Series A. The Fund will provide start-ups with technical, legal and marketing support, as well as assistance in relations with regulators and with the listing of tokens on exchanges.
The fund was taken over by the investment firm Iceberg Capital.
Abu Dhabi-licensed blockchain platform developer Venom Foundation has launched a $1 billion venture capital fund in partnership with Iceberg Capital.
A structure called Venom Ventures Fund (VVF) invests in innovative protocols and Web3 applications for long-term trends such as payments, asset management, DeFi, banking and GameFi.
It is assumed that VVF will finance projects and teams from seed rounds to Series A. The Fund will provide start-ups with technical, legal and marketing support, as well as assistance in relations with regulators and with the listing of tokens on exchanges.
The fund was taken over by the investment firm Iceberg Capital.
⚙️ The expert pointed to the correction of Binance flaws in the work of BUSD
Bitcoin exchange Binance has eliminated flaws in the management of Binance USD (BUSD) reserves, which sometimes led to the absence of collateral in excess of $1 billion, according to ChainArgos founder Jonathan Reuter, writes Bloomberg .
We are talking about BUSD in the BNB Beacon Chain and BNB Smart Chain networks with a total capitalization of $5.4 billion out of $16.4 billion in total.
They have reserves in BUSD on the Ethereum blockchain. The latest stablecoins are backed by US dollars and are controlled by Paxos with a licenseNYDFS.
Representatives of the platform confirmed the correctness of the analysis.
💬 “The process of maintaining a binding involves many commands and has not always been flawless, which may have led to delays in the past. We previously improved it with advanced mismatch checks to ensure that [BUSD on BNB networks to BUSD on Ethereum] is permanently tied, ” they said.
Bitcoin exchange Binance has eliminated flaws in the management of Binance USD (BUSD) reserves, which sometimes led to the absence of collateral in excess of $1 billion, according to ChainArgos founder Jonathan Reuter, writes Bloomberg .
We are talking about BUSD in the BNB Beacon Chain and BNB Smart Chain networks with a total capitalization of $5.4 billion out of $16.4 billion in total.
They have reserves in BUSD on the Ethereum blockchain. The latest stablecoins are backed by US dollars and are controlled by Paxos with a licenseNYDFS.
Representatives of the platform confirmed the correctness of the analysis.
💬 “The process of maintaining a binding involves many commands and has not always been flawless, which may have led to delays in the past. We previously improved it with advanced mismatch checks to ensure that [BUSD on BNB networks to BUSD on Ethereum] is permanently tied, ” they said.
🔥Microsoft invests $10 billion in OpenAI
Microsoft is considering investing $10 billion in OpenAI. Today, the startup is valued at $29 billion.
According to media reports, Microsoft will receive 75% of the profits of the AI company until it returns the money invested. After the refund, the corporation will receive a 49% stake in OpenAI. Other investors will share the remaining 49%, while the nonprofit parent business will retain the remaining 2%.
There is also a profit limit for each shareholder group. However, margin limits are unknown.
The terms of the deal and the amount of investment may change as negotiations continue.
OpenAI is one of the leaders in the field of generative AI. In 2022, the startup released two popular apps: DALL-E 2 and ChatGPT.
Microsoft has already included the first in some of its products, including the Designer graphic design app. The tech giant is also interested in using ChatGPT in Office applications and the Bing search engine.
Microsoft is considering investing $10 billion in OpenAI. Today, the startup is valued at $29 billion.
According to media reports, Microsoft will receive 75% of the profits of the AI company until it returns the money invested. After the refund, the corporation will receive a 49% stake in OpenAI. Other investors will share the remaining 49%, while the nonprofit parent business will retain the remaining 2%.
There is also a profit limit for each shareholder group. However, margin limits are unknown.
The terms of the deal and the amount of investment may change as negotiations continue.
OpenAI is one of the leaders in the field of generative AI. In 2022, the startup released two popular apps: DALL-E 2 and ChatGPT.
Microsoft has already included the first in some of its products, including the Designer graphic design app. The tech giant is also interested in using ChatGPT in Office applications and the Bing search engine.
🚀 Glassnode warns of the potential for an “explosive movement” in Bitcoin
Realized volatility for Bitcoin and Ethereum has fallen to extreme lows, historically preceded by explosive moves in either direction. This was reported by Glassnode analysts.
In nine similar cases, after such a low realized volatility on the horizon of the month (24.6%), a wave of growth was observed, and only in one - a decrease with a fall of 50%.
Ethereum has previously recorded only three similar episodes of extremely low volatility (39.8%). In particular, in November 2018, a 58% collapse followed, in July 2020 - an increase to a historical maximum.
Realized volatility for Bitcoin and Ethereum has fallen to extreme lows, historically preceded by explosive moves in either direction. This was reported by Glassnode analysts.
In nine similar cases, after such a low realized volatility on the horizon of the month (24.6%), a wave of growth was observed, and only in one - a decrease with a fall of 50%.
Ethereum has previously recorded only three similar episodes of extremely low volatility (39.8%). In particular, in November 2018, a 58% collapse followed, in July 2020 - an increase to a historical maximum.
Crypto.com to delist USDT in Canada
🗓 January 31, the cryptocurrency platform Crypto.com delist the USDT stablecoin from Tether for Canadian users. The company notified customers in the country about this.
After this period, trading, deposits and withdrawals in USDT will become unavailable. Assets will be automatically converted to USD Coin (USDC).
“Please urgently check your USDT balances and take the necessary measures,” the message reads.
The platform also warned that withdrawing deposits made after the deadline may not be possible or may require additional fees.
“Crypto.com has excluded USDT for Canadian users in accordance with Ontario Securities Commission (OSC) instructions as part of our obligations to pre-register for a limited dealer license,” a platform spokesperson explained to Decrypt .
🗓 January 31, the cryptocurrency platform Crypto.com delist the USDT stablecoin from Tether for Canadian users. The company notified customers in the country about this.
After this period, trading, deposits and withdrawals in USDT will become unavailable. Assets will be automatically converted to USD Coin (USDC).
“Please urgently check your USDT balances and take the necessary measures,” the message reads.
The platform also warned that withdrawing deposits made after the deadline may not be possible or may require additional fees.
“Crypto.com has excluded USDT for Canadian users in accordance with Ontario Securities Commission (OSC) instructions as part of our obligations to pre-register for a limited dealer license,” a platform spokesperson explained to Decrypt .
According to journalist Colin Wu, cryptocurrency exchange Coinbase has become the most active venture investor in 2022, taking part in 119 rounds. Rounding out the top three are Animoca Brands (118) and Shima Capital (88).
During the year, 1,769 projects collectively raised $37.7 billion, up 19% from the previous year. In the projects section, Web3 and DeFi solutions are leading.
During the year, 1,769 projects collectively raised $37.7 billion, up 19% from the previous year. In the projects section, Web3 and DeFi solutions are leading.
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💰 Market maker Group One acquired a 13.5% stake in MicroStrategy
Chicago-based market maker Group One became the owner of 1,261,744 shares of MicroStrategy, which is equivalent to a share of 13.49%. This information is included in the reportingSEC.
The position is valued at $239.7 million, with a January 10 closing price of $190 per security. The company also became the owner of options for 1.3 million shares.
Group One specializes in stock options in the US and provides liquidity for a range of securities.
Over the past year, the capitalization of MicroStrategy has decreased by 60.7%.
According to Bitcoin Treasuries , the analytics software provider owns 132,500 BTC worth $2.315 billion, with an average purchase price of $30,392. Bitcoin's current exchange rate is $17,500, according to CoinGecko .
Recall that in November, the founder of MicroStrategy, Michael Saylor , confirmed the course for further purchases of digital gold, despite the continued fall of the cryptocurrency market.
Chicago-based market maker Group One became the owner of 1,261,744 shares of MicroStrategy, which is equivalent to a share of 13.49%. This information is included in the reportingSEC.
The position is valued at $239.7 million, with a January 10 closing price of $190 per security. The company also became the owner of options for 1.3 million shares.
Group One specializes in stock options in the US and provides liquidity for a range of securities.
Over the past year, the capitalization of MicroStrategy has decreased by 60.7%.
According to Bitcoin Treasuries , the analytics software provider owns 132,500 BTC worth $2.315 billion, with an average purchase price of $30,392. Bitcoin's current exchange rate is $17,500, according to CoinGecko .
Recall that in November, the founder of MicroStrategy, Michael Saylor , confirmed the course for further purchases of digital gold, despite the continued fall of the cryptocurrency market.
⚙️ BitDAO launches testnet L2 solution Mantle
Decentralized Autonomous Organization(DAO) BitDAO has launched a public testnet of its modular second-layer solution Mantle.
The team announced the launch of the testnet in November. Since then, 37,000 developers have signed up to participate in the network, according to The Block .
The Mantle L2 project uses its own Rollups -based technology and modular architecture. Three separate levels are responsible for the execution of transactions, their finalization and data availability. BitDAO believes that forEVMFor developers, this will become a "very familiar" technology stack.
The Wadsley testnet will also allow the team to test and implement new features ahead of the mainnet launch, which is scheduled for late 2023.
It is expected that the solution will provide "hyperscale throughput for resource-intensive applications" at low fees. To pay for the latter, the network uses BIT, the DAO governance token.
Decentralized Autonomous Organization(DAO) BitDAO has launched a public testnet of its modular second-layer solution Mantle.
The team announced the launch of the testnet in November. Since then, 37,000 developers have signed up to participate in the network, according to The Block .
The Mantle L2 project uses its own Rollups -based technology and modular architecture. Three separate levels are responsible for the execution of transactions, their finalization and data availability. BitDAO believes that forEVMFor developers, this will become a "very familiar" technology stack.
The Wadsley testnet will also allow the team to test and implement new features ahead of the mainnet launch, which is scheduled for late 2023.
It is expected that the solution will provide "hyperscale throughput for resource-intensive applications" at low fees. To pay for the latter, the network uses BIT, the DAO governance token.
💰ETHEREUM SOFTWARE FIRM CONSENSYS TO CUT UPWARDS OF 100 STAFF
😲 ConsenSys, the developer of the crypto wallet MetaMask, plans to lay off 100 staffers or more, according to a person familiar with the matter.
✅ The New York City-headquartered Ethereum studio currently has about 900 employees. The planned cuts are understood to be in the process of being finalized, and the exact number is not known at this point, said the person.
😲 ConsenSys, the developer of the crypto wallet MetaMask, plans to lay off 100 staffers or more, according to a person familiar with the matter.
✅ The New York City-headquartered Ethereum studio currently has about 900 employees. The planned cuts are understood to be in the process of being finalized, and the exact number is not known at this point, said the person.