SEC Charges Samuel Bankman-Fried, DOJ Launches Crypto Crackdown, Genesis Capital Filing for Bankruptcy - January 19, 2023 Crypto Roundup
bitcoinmacroblock.substack.com
I've been missing from the crypto roundup for a few days because I didn't find anything worth mentioning. I chose to wait until I had something really worthwhile to share with you rather than spamming you with unimportant news.
MACRO As I look at recent economic data from the US, I can't help but feel a sense of concern. The numbers show a drop of 1.1% in December's retail sales figures and a 0.5% decrease in the producer price index for final demand. These figures are weaker than expected and represent the steepest month-on-month drop in retail sales since January 2022, and the largest decrease in producer prices since April 2020. The data also shows that these declines are broad-based, affecting 10 out of 13 categories in retail sales.
This data has caused a shift in market sentiment, as investors are no longer viewing bad news as good news. Instead, they see it as a sign of a potential economic slowdown.
The Federal Reserve also seems divided on the pace of interest rate hikes. Philadelphia Fed President Patrick Harker and Dallas Fed President Lorie Logan have expressed support for a moderation in the pace of rate hikes, while St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester have argued for a higher final rate.
These conflicting views are causing confusion among markets.
Crypto
Bitcoin experienced a sharp drop in value yesterday following news of a "major international enforcement action" by the Department of Justice (DOJ). However, it was later revealed that the action was related to money laundering charges against a little-known Hong Kong-based platform called Bitzlato, which has ties to Russia.
The most recent study on the Ethereum and Visa merger I think many of you will find this issue quite interesting, and I'm looking forward to reading your comments.
Obligate, a blockchain-based debt securities startup, announced a $4 million seed extension round to help the firm scale its debt platform, which is set to go live next month on the Polygon blockchain. The funds will be used to help the firm scale its debt platform. The round was participated by Blockchange Ventures and Circle Ventures, joining the initial seed investors Earlybird and SIX Fintech Ventures. Obligate's seed round now totals more than $8.5 million. Obligate allows companies to issue on-chain bonds and commercial paper in a regulated decentralized finance (DeFi) environment. Obligate's platform is more efficient than many other bond platforms as it allows a direct issuance of blockchain-based bonds from the issuer to the wallet of the investors, making it more efficient and accessible for investors.
The use of distributed ledger technologies and decentralized finance in the foreign exchange market has the potential to address many of the challenges that traditional FX trading, liquidity provision, and settlement faces. Through the implementation of payment stablecoins and automated market making protocols, on-chain FX can offer faster and more affordable transaction processes, as well as greater liquidity and stability.
Additionally, on-chain FX has the potential to promote financial inclusion and support remittance, small and medium-sized enterprises, and corporate use cases. While there are still barriers to adoption, including the lack of user-friendly interfaces, safe custody services, and regulatory clarity among other issues, the continued development of DeFi solutions and the increasing scalability of blockchain networks may make on-chain FX more practical and attractive for mainstream use.
To address these barriers, further research is needed to promote the wider adoption of on-chain FX by mainstream users. This includes exploring ways to make the technology more user-friendly and accessible, as well as addressing regulatory concerns and providing safe custody services. With continued development and research, on-chain FX has the potential to revolutionize the foreign exchange market and bring significant benefits to users.
SEC Charges Samuel Bankman-Fried, DOJ Launches Crypto Crackdown, Genesis Capital Filing for Bankruptcy - January 19, 2023 Crypto Roundup
SEC Charges Samuel Bankman-Fried, DOJ Launches Crypto Crackdown, Genesis Capital Filing for Bankruptcy - January 19, 2023 Crypto Roundup
SEC Charges Samuel Bankman-Fried, DOJ Launches Crypto Crackdown, Genesis Capital Filing for Bankruptcy - January 19, 2023 Crypto Roundup
I've been missing from the crypto roundup for a few days because I didn't find anything worth mentioning. I chose to wait until I had something really worthwhile to share with you rather than spamming you with unimportant news.
MACRO As I look at recent economic data from the US, I can't help but feel a sense of concern. The numbers show a drop of 1.1% in December's retail sales figures and a 0.5% decrease in the producer price index for final demand. These figures are weaker than expected and represent the steepest month-on-month drop in retail sales since January 2022, and the largest decrease in producer prices since April 2020. The data also shows that these declines are broad-based, affecting 10 out of 13 categories in retail sales.
This data has caused a shift in market sentiment, as investors are no longer viewing bad news as good news. Instead, they see it as a sign of a potential economic slowdown.
The Federal Reserve also seems divided on the pace of interest rate hikes. Philadelphia Fed President Patrick Harker and Dallas Fed President Lorie Logan have expressed support for a moderation in the pace of rate hikes, while St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester have argued for a higher final rate.
These conflicting views are causing confusion among markets.
Crypto
Bitcoin experienced a sharp drop in value yesterday following news of a "major international enforcement action" by the Department of Justice (DOJ). However, it was later revealed that the action was related to money laundering charges against a little-known Hong Kong-based platform called Bitzlato, which has ties to Russia.
SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX
And, we have some news on Genesis Capital, which is laying the groundwork for bankruptcy as soon as this week.
The most recent study on the Ethereum and Visa merger I think many of you will find this issue quite interesting, and I'm looking forward to reading your comments.
The latest from 1NCH - a hardware wallet that promises to offer unparalleled security for your crypto assets.
Obligate, a blockchain-based debt securities startup, announced a $4 million seed extension round to help the firm scale its debt platform, which is set to go live next month on the Polygon blockchain. The funds will be used to help the firm scale its debt platform. The round was participated by Blockchange Ventures and Circle Ventures, joining the initial seed investors Earlybird and SIX Fintech Ventures. Obligate's seed round now totals more than $8.5 million. Obligate allows companies to issue on-chain bonds and commercial paper in a regulated decentralized finance (DeFi) environment. Obligate's platform is more efficient than many other bond platforms as it allows a direct issuance of blockchain-based bonds from the issuer to the wallet of the investors, making it more efficient and accessible for investors.
https://www.coindesk.com/business/2023/01/19/circle-ventures-backs-4m-round-for-blockchain-based-debt-provider-obligate/
The use of distributed ledger technologies and decentralized finance in the foreign exchange market has the potential to address many of the challenges that traditional FX trading, liquidity provision, and settlement faces. Through the implementation of payment stablecoins and automated market making protocols, on-chain FX can offer faster and more affordable transaction processes, as well as greater liquidity and stability.
Additionally, on-chain FX has the potential to promote financial inclusion and support remittance, small and medium-sized enterprises, and corporate use cases. While there are still barriers to adoption, including the lack of user-friendly interfaces, safe custody services, and regulatory clarity among other issues, the continued development of DeFi solutions and the increasing scalability of blockchain networks may make on-chain FX more practical and attractive for mainstream use.
To address these barriers, further research is needed to promote the wider adoption of on-chain FX by mainstream users. This includes exploring ways to make the technology more user-friendly and accessible, as well as addressing regulatory concerns and providing safe custody services. With continued development and research, on-chain FX has the potential to revolutionize the foreign exchange market and bring significant benefits to users.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4328948
Share
Share
If you're interested in staying up-to-date with economical & crypto news, I would really appreciate it if you could consider subscribing
Use the button below to create your Substack and connect you with Bitcoin Macro Block
Start a Substack