Bears Push Bitcoin Down While Industry Leaders Defend Market During Consensus 2021
Welcome to the thirteenth edition of Shrimpy’s weekly newsletter, a place for staying up to date on the latest trends, news, and events in the cryptocurrency industry.
Digital assets evolve and move faster compared to any other market. For those who do not have time to constantly scroll Crypto Twitter, we wrote a special weekly update covering everything major that happened this week.
Summary
Binance Smart Chain will use CipherTrace to track suspicious transactions
PayPal plans to add direct crypto withdrawals
Apple’s newest job post reveals interest in ‘crypto specialist’
BlackRock CEO believes that crypto may have a role akin to gold in the future
Iran temporarily banned all cryptocurrency mining operations
Research indicates that companies might prefer digital currencies under certain circumstances
Crypto markets struggle while stock market see green days ahead of Biden’s budget plan
Binance CEO CZ believes that Bitcoin cannot be hurt by regulators
Binance Smart Chain integrates CipherTrace
World-renowned cryptocurrency exchange Binance plans to integrate blockchain cybersecurity tool CipherTrace into its Binance Smart Chain smart contract ecosystem. Binance will use CipherTrace to not only track illicit transactions but to appease regulators worried about DeFi as well.
When CoinDesk asked Binance Smart Chain representative Simran Alphonso whether CipherTrace will turn BSC into a KYC version of DeFi, he responded negatively, stating that the integration makes no difference for end-users.
PayPal to allow direct crypto withdrawals
Since its crypto integration announcement in fall 2020, PayPal has refused to allow consumers to interact with blockchain networks. U.S. customers buying cryptocurrencies on the payment network were forced to keep their assets within PayPal and had no option of withdrawing them to 3rd-party wallets. However, recent statements from the company’s executives indicate that they are putting an end to that practice.
During the Consensus 2021 conference, PayPal executive Jose Fernandez da Ponte announced that the payment processor seeks to introduce withdrawal functions. Ponte said that they wish to “make [crypto] as open as possible and to give new choices to customers.” For now, it’s not disclosed when the feature will launch.
Apple lists job post for crypto specialist
Apple’s payment unit recently listed a new job post that searches for a business manager with crypto experience in ‘alternative payments.’ Interested candidates must have at least five years working as alternative payment providers, which includes digital wallets, fast payments, BNPL systems, and cryptocurrency.
For the last few years, Apple has shown no interest in joining the crypto hype. Moreover, the company refused to comment on any rumors involving digital assets. However, the latest turn of events indicates that Apple might potentially add crypto support to its Apple Pay platform.
Blackrock CEO: Crypto may someday play a role akin to gold
A Reuters article reveals that BlackRock CEO Larry Fink stated during the company’s annual meeting that cryptocurrencies may serve as long-term investments but that it is too soon to tell whether they are “just a speculative trading tool.” Moreover, Fink compared crypto’s potential function in global markets to gold.
Iran bans crypto mining...again
The government of Iran has decided to temporarily ban cryptocurrency mining as a result of intense power shortages caused by a lack of rain. President Hassan Rouhani said that all mining operations must stop until September 22 as they place an immense load on the nation’s power grid.
Other reports released earlier this month reveal that Iran’s intelligence agency began to recruit individuals who will track down illegal mining rigs. Furthermore, a new rule brings heavy fines to users who mine cryptocurrencies using domestic power.
Federal Reserve research indicates that digital currencies are attractive cash alternatives for firms
Research conducted by the Federal Reserve Bank of Richmond states that, under certain conditions, digital currencies can become attractive alternatives to cash for companies. In an economic brief released by the bank it was also revealed that the decision to release digital currency boils down to ensuring that firms are secure from cyberattacks.
This week in DeFi
1. Binance states that rollbacks are not possible on BSC. Binance representatives stated that the exchange is not responsible for DeFi rug pulls and that they will not roll back the blockchain to help afflicted investors.
An exchange representative defended the decision by saying that exploits are not new in DeFi and that they are not unique to BSC
A CipherTrace report states that 50% of all crypto hacks occurred in DeFi in 2020
2. SEC Chairman believes that DeFi ‘raises challenges’ for investors and regulators alike. Gary Gensler shared on Wednesday that DeFi raises a number of challenges and that it is up to the SEC staff to protect investors.
Gensler suggested that the government implements a dedicated market regulator for crypto markets
It was added that many regulatory gaps exist as thousands of tokens with a total trading volume of $130B to $330B trade each day on unregistered exchanges.
3. Uniswap community is now interested in adopting the Arbitrum scaling solution. As Arbitrum prepares to launch its layer-2 scaling solution on Friday, Uniswap community members are becoming increasingly interested in deploying the DEX on Arbitrum.
The idea was popularized by Robert Leshner, the founder of lending protocol Compound.
Arbitrum could save Uniswap V3’s performance as scaling solution Optimism will only arrive two months later.
Crypto drops while stock market rises ahead of Biden’s new budget announcement
Bitcoin failed in reestablishing itself at the $40k price level, and after President Biden’s announcement of a new budget plan, the cryptocurrency market fell while stocks noticeably increased in value. Despite the fact that the plan aims to deter any chance of inflation in a post-covid economy, Bitcoin and other leading cryptocurrencies have lost value rather than responding positively to the news.
CZ: No one can shut down Bitcoin
During the Consensus virtual crypto conference, Binance’s CEO Changpeng Zhao voiced the opinion that Bitcoin cannot be killed by regulators as cryptocurrencies are held by more than 500 million users. Zhao believes that fighting cryptocurrencies would be the same as rejecting Amazon’s internet business model when the company first started out during the early 90s.
For Binance’s CEO, crypto is simply “a new tool that can increase the freedom of money all around the world.” Not to mention, Zhao believes that the digital assets market can work together with regulators and that they do not have to compete.
Quote of the week
The Good News
Uniswap recently announced that it plans to launch another liquidity program very soon, which means that the DEX might stand in the spotlight of DeFi yet again.
Smart contract-based digital signature firm DocuSign announced in a press release that it bought intellectual property rights for Clause. The deal will bring digitally-signed contracts to life, according to the team.
A newly launched NFT market called Meme.com successfully raised $5 million in VC funds brought by Digital FInance Group, Blockhype, Morningstar, and other investors.
The Bad News
South Korea’s Central Bank governor fears that leveraged crypto trading is a threat to the financial system.
DeFi decentralized exchange BurgerSwap suffered a flash loan exploit, which cost the team $7 million.
Australia’s tax agency warned more than 100,000 crypto investors to report gains and losses.
Crypto Twitter Highlights
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