Problems at a crypto bank drag the market down, Coinbase suspends trading in a major stablecoin, and a new survey shows how Americans really feel about the traditional financial system. These stories and more this week in crypto.
Cryptos Fall 5% Over Silvergate Concerns
Silvergate Capital shares fell more than 50% after the crypto bank delayed deposit of his annual report indicating that he needed more time to complete certain audit procedures. The announcement raised questions about Silvergate’s ability to remain solvent, driving down prices for all major cryptocurrencies.
Coinbase will suspend listing of BUSD
Coinbase will suspend trading in BUSD, explaining that the stablecoin no longer meets its listing standards. Coinbase CEO Brian Armstrong said the exchange has decided to suspend Binance USD trading because the company had concerns about its liquidity in light of recent orders issued by US regulators asking the stablecoin’s issuer, Paxos, to stop minting the coin.
WSJ: Tether used fake documents
According to the Wall Street Journal, the companies backing the world’s largest stablecoin, Tether, used fake documents and shell companies to help its parent company enter the banking system. The Journal also added that the US Department of Justice is currently investigating Tether. Tether hit back with a statement saying the Journal’s report was grossly inaccurate and misleading.
Binance is questioned about illegal practices
Three US senators, led by Elizabeth Warren, asked Binance provide documents relating to potentially illegal business practices. Speaking directly to the exchange’s CEO, Changpeng Zhao, lawmakers said the actions called into question the legitimacy of the company and the safety of customer assets. Binance is facing multiple investigations from regulators following the collapse of crypto exchange FTX.
Yuga Labs launches Bitcoin NFTs
The team behind the hugely popular Bored Ape Yacht Club NFT, Yuga Labs launches a new collection Bitcoin NFTs. Riding the wave of the ordinal listing craze, the firm unveiled a limited-edition collection of 300 generative coins inscribed on Satoshis on the Bitcoin blockchain. The Twelvefold collection explores the relationship between time, mathematics and variability.
Apple retains Uniswap’s mobile app
Uniswap Labs, the developers of the world’s largest decentralized exchange, Uniswap, plans to launch a crypto wallet for iPhone users, but Apple refuses to support the idea. A Uniswap spokesperson said Apple won’t greenlight the launch just yet, but isn’t told why, although the team has answered all of Apple’s questions and concerns.
Solana pledges to improve after outage
Solana Laboratories committed to making improvements to its upgrade process to ensure network reliability, after the channel suffered another outage following last week’s update. Block production on the chain stopped, which meant that transactions were not processed and users’ crypto assets could not be moved. The co-founder admitted that the recent issues have made it clear how much of a challenge maintaining stability during updates remains.
Coinbase Report: 20% of Americans Own Crypto
A US commissioned survey by Coinbase suggests that 20% of American adults currently own crypto and 29% plan to buy or trade crypto in the next 12 months. Coinbase said the vast majority of Americans want to see the financial system updated because they are frustrated with traditional finance and many believe crypto can be a solution.
That’s what happened this week in crypto, see you next week.