The past seven days have seen the cryptocurrency market decline considerably, losing around $60 billion of its total capitalization. Bitcoin (BTC) also lost its $23,000 level, and it’s now closing the week at about $21,900.
Despite the decline, however, the global crypto market cap continues to maintain its trillion-dollar sentimental value, currently sitting around $1.02 trillion at press time.
It can be rightly said that the sudden crash came on the back of a regulatory crackdown triggered by the United States Securities and Exchange Commission (SEC) toward cryptocurrency staking in the country.
There is more to this issue, as certain America-based companies have already been affected. Follow us as we go over the last seven days’ events in the crypto market that you will find most interesting.
The SEC shuts down Kraken Exchange’s staking program in the US.
The Securities and Exchange Commission (SEC) said that Kraken Exchange promotes the ease of use of its staking investment program and the advantages that result from its efforts on behalf of investors, including its methods for securing consistent investment returns and payments.
Consequently, the company reached a 30-million settlement with the agency. However, the move is likely to cause more problems for cryptocurrency businesses operating in the United States as the SEC looks to further restrict passive investment products in the wake of several high-profile failures that left investors in court seeking pennies on the dollar.
Interestingly, Commissioner Hester Pierce reacted to her agency’s actions by publishing an official statement defending the exchange and saying the shutdown isn’t the right decision. The commissioner, just like everybody else in the industry, believes that regulation by force–in an “emerging industry”–isn’t a good solution.
Webaverse Web3 metaverse game platform lost $4m in a hack
The Webaverse Web3 metaverse game platform revealed how they became victims of a $4 million crypto hack in November 2022 after meeting with scammers posing as investors in a hotel lobby in Rome.
Although the team isn’t certain how it happened technically, they believe the scammers convinced them to move money into a new Truast wallet they created and maintained to provide evidence of funds.
The surprising aspect of the story, according to them, is that the crypto was stolen from a newly set-up Trust wallet and that the hack took place during the meeting without disclosing the secret phrase.
LocalBitcoins P2P trading platform shuts down amid crypto winter
Peer-to-peer bitcoin trading platform LocalBitcoins will be discontinuing its services after over a decade of operations due to its inability to cope with the bear market rocking the industry. The platform will consequently suspend new signups on February 9 and also halt trading and wallet services on February 16. LocalBitcoins further stated that customers will only be able to make bitcoin withdrawals after February 17.
This is the latest popular cryptocurrency company forced out of business by the “crypto winter.”
Genesis creditors to expect 80% recovery under a proposed restructuring plan
A Genesis creditor has revealed that the new proposed restructuring plan between Genesis, Digital Currency Group, and creditors will see creditors getting back at least 80% of their funds.
The agreement in principle lays out a framework for a global resolution that will maximize value for all Genesis clients and stakeholders. Under the terms of the agreement, DCG would exchange its existing $1.1 billion note due in 2032 for convertible preferred stock to be issued by DCG as part of Genesis’ Chapter 11 plan. It will also refinance its existing 2023 term loans with an aggregate value of $526 million and make them payable to creditors, among other things.
Bankrupt 3AC to launch a new crypto exchange
Although most of the tweets that make up the announcement have now been deleted, “Open Exchange” asserted that,
“Our conviction in accelerating crypto adoption led us to bet big and rely too much on trust last year.”
China seeks to launch a national blockchain research center
China is embracing the prospects of blockchain technology, revealing the increased interest of countries in the sector. The center, according to the statement, will create a research network with local universities, think tanks, and blockchain businesses to explore core blockchain technologies. The fruits of this research will be used to further the digitalization of China and expand its blockchain industry.
This Week in MelegaSwap
Hest-stake (HSE) is a project that focuses on swapping, staking, earning, and voting on pools, enabling its function on Hestswap, Hestpay, Hest-verse, Hest blockchain, and swap platforms across multiple blockchain networks. The HSE token serves as a utility token across payment networks.
4Leaf Clover is a project behind a one-of-a-kind digital asset called $LUCK, serving as a lucky charm in the cryptocurrency market that allows users to own a crypto token in their wallets in form of talismans to protect or bring good fortunes to them.
Poochain (POOP) was created by a team consisting of Meme token enthusiasts and cryptocurrency lovers who believe in the transparency and financial freedom of the future. The vision of this initiative is to become the exclusive blockchain for Meme Tokens.
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