TideBit Market Roundup
Bitcoin continued to hit new records in February, but it fell 20% to HK$358,880 after reaching the all time high at HK$448,998. Unlike the correction in the past, the correction this time did not result in an extreme fear atmosphere in the crypto market, suggesting that the community is confident with Bitcoin now.
As noted last month, Ethereum kept its volatile trend throughout the first half of February. As the largest cryptocurrency dropped, Ethereum has no exception. Despite a large sell-off occurred, resulting a 30% pullback on ETH, buyers are buying the dip, according to Glassnode data.
Tesla Inc Purchases $1.5 Billion in Bitcoin and Plans to Begin Accepting BTC Payments
On Monday, February 8, Tesla Inc. announced that it has purchased $1.5 billion worth of Bitcoin. In a filing with the US Securities and Exchange Commission (SEC), the electric vehicle company stated that it purchased the Bitcoin for “more flexibility to further diversify and maximize returns” to enable it to invest in cash reserves in “alternative reserve assets including digital assets”.
MasterCard announces support for crypto on its network
MasterCard has announced plans to support cryptocurrencies in 2021, paving the way for its nearly one billion users to spend digital assets at more than 30 million merchants. The firm believes this may open merchants up to new customers and build loyalty with existing customers who are already migrating to digital assets over traditional fiat options.
Twitter looking into Bitcoin payments for employees, says CFO
In an interview on CNBC’s Squawk Box today, Ned Segal, who has served as the CFO of Twitter since 2017, responded to questions about how Twitter would react to Tesla’s recent $1.5 billion Bitcoin (BTC) investment this week. Segal said the tech firm was watching other companies closely, and discussed potentially adding the crypto asset to its own books or using it for Twitter employees’ salaries.
Amazon job postings hint at digital payments project to launch in Mexico
According to an official job application on Amazon, the company is now building a tech team to enable a new digital currency service. Currently known as a “Digital and Emerging Payments,” or DEP, project, the service will initially roll out in Mexico, allowing local people to buy crypto with cash to spend digital currency while shopping.
BitPay integration brings crypto payments to Apple Pay’s 380 million users
BitPay card users can now connect to Apple Wallet and pay for goods and services using Apple Pay. It currently allows for payments in BTC, ETH, Bitcoin Cash, and a variety of stablecoins.
Binance Coin becomes the third-largest crypto following parabolic rally
Binance Coin (BNB), a cryptocurrency issued by the world’s largest crypto exchange Binance, has hit a major historical milestone, becoming the third-largest coin by market capitalization for the first time in history. At the time of writing, BNB’s market cap stands at $43 billion, outstripping the biggest stablecoin Tether (USDT) by about $8 billion, according to data from crypto tracking source CoinGecko.
Square doubles down on Bitcoin, investing another $170M
Square “has purchased approximately 3,318 bitcoins at an aggregate purchase price of $170 million,” the company said in a public statement on Tuesday, adding: “Combined with Square’s previous purchase of $50 million in bitcoin, this represents approximately five percent of Square’s total cash, cash equivalents and marketable securities as of December 31, 2020.”
Coinbase’s Financials Are Now Public Ahead of Stock Market Listing
Crypto exchange Coinbase is officially going to become a publicly traded company. Its Form S-1 has been published by the U.S. Securities and Exchange Commission (SEC), clearing the way for its much-anticipated direct listing on Nasdaq.
This month was remarkable for blockchain industry. We saw payment giants intend to bring cryptocurrency payment into their network: Tesla accepts cryptocurrency payment, Mastercard and BitPay plans to support customers with the crypto payment for goods and services, etc. Despite Bitcoin not being able to replace fiat money, it could be an alternative way for customers to spend their money. The increase in the usage of cryptocurrencies may reveal a wider support from other payment groups in the future.
SEC charges promoters of Steven Seagal-spruiked ICO from 2018
The U.S. Securities and Exchange Commission has charged three individuals for various cryptocurrency frauds including the 2018 initial coin offering for the Steven Seagal-promoted altcoin, Bitcoiin2Gen. A Feb. 1 SEC announcement estimates that Bitcoiin Gen founder John DeMarr, Start Options founder Kristijan Krstic, and promotor Robin Enos duped investors out of more than $11 million through two fraudulent and unregistered securities offerings from December 2017 until May 2018.
Central Bank of Nigeria bans banks from servicing crypto exchanges
The Central Bank of Nigeria has placed a ban on all regulated financial institutions from providing services to crypto exchanges in the country. The CBN has directed all commercial banks to close accounts belonging to crypto exchanges and other businesses transacting in cryptocurrencies in the country. The CBN also warned of stiff penalties to any bank or financial institution that fails to comply with the directive.
Bank of Korea publishes book on central bank digital currency’s legal issues
According to a summary in Korean media, the book calls for revisions to the law to ensure that a future CBDC could successfully operate. The Bank of Korea has notably been using blockchain technology to manage the transactions in its 22-month long CBDC pilot program, which commenced back in April 2020 and will wrap up in December of this year. Testing the currency’s distribution in 2021 represents the third phase of this project, following a focus on technological development and initial operational analyses in phases one and two.
FSTB Proposes Restricting Cryptocurrency Trading to Professional Investors
The proposal drafted by Hong Kong’s Financial Services and the Treasury Bureau (FTSB) dates back to November. If implemented, it would mean that all crypto exchanges will be regulated by the Securities and Futures Commission and cryptocurrency trades will be prohibited for retail investors, as only professionals will be allowed to buy and sell digital currencies.
Indian banks put crypto traders’ accounts under the microscope
The Economic Times reports that customers of private banks in India, such as HDFC, HSBC and Citi, have been receiving notices this year asking them to clarify crypto-related transactions, often requiring them to visit their local bank branch in person. If such clarification is not received, accounts are at risk of being suspended or seized.
Total value locked in DeFi: US$50.66 billion
Top #1 DEX volume(24hrs): US$130 billion (Venus dominates 94.92% of the market)
Ethereum average transaction fee: $19.64
(As of 26 February 2021)
Total Value Locked in DeFi Hits $40 Billion
- MakerDAO’s Maker as the leading project with $6.89 billion in TVL, which translates to an 16.45% dominance.
- Top 5 projects are Maker, Aave (AAVE), Compound (COMP), Curve Finance (CRV) and Uniswap (UNI), correspondingly.
Yearn.Finance Protocol Suffers $2.8 Million Flash Loan Attack on its DAI lending pool
- The suspect is said to have used an Aave flash loan to trigger the vault draining, thus getting away with $2.8 million and the vault losing $11 million.
Alpha Finance suffers a flash loan attack
- with approximately loss of US$38 million
- A suspected exploit reported by Cream Finance was “functioning as normal”.
Ethereum 2.0 set to undergo first hard fork upgrade
- Vitalik Buterin published a plan for the first hard fork of the new Ethereum 2.0 Beacon Chain, named HF1.
- Allow the developers to introduce several key upgrades to the recently launched Beacon Chain
- Serve as a useful test for deeper changes in the future.
Stablecoin RAI launches
- Launched by Reflexer Labs
- Built on Ethereum
Binance Smart Chain grows in DeFi
- It offers a low-fee blockchain network to several DeFi protocols
- PancakeSwap, the prominent DeFi protocol on BSC, has become the first BSC DeFi project with a billion total market cap.
As BSC ecosystem grows, Uniswap, the DEX that runs on Ethereum, is no longer leading the market. Total 24hrs volume of Venus, a DeFI protocol built on BSC, now stands above US$100 billion, which is 74 times more than Uniswap. Similarly, the average total value locked(TVL) in Venus has reached US$6 billion and surpassed Uniswap this week. Besides, as noted, users are shifting from DEXs on Ethereum to those on BSC, because of the harsh gas fee and long-running transaction.
Sources: Cointelegraph, Blockchain.news, Defipulse, TradingView, Debank, Defirate, Ycharts, Coindesk, Coinmarketcap