A stablecoin brings in record profits but could threaten the crypto industry, Bitcoin ETFs can now advertise on Google, and how much money do pump and dump schemes actually make? These stories and more, this week in crypto.
Tether threatens cryptos
Tether's USDT stablecoin, which has nearly $100 billion in circulation, has reached record profits of $6.2 billion in 2023. This success is overshadowed by the growing concerns of traditional financial players, such as JPMorgan analysts criticized Tether poses a risk to the crypto industry, given its market dominance and lack of regulatory compliance and transparency.
Google prepares for crypto
Google updated its advertising policy, allowing advertisements featuring certain cryptocurrency financial products. The update aims to clarify advertising guidelines for “crypto coin trusts,” allowing third parties to promote financial products targeted to the United States and compliant with local laws. Companies like Vaneck and Blackrock are already taking advantage of this change by advertising on Google.
Ripple co-founder's wallet hacked
Hackers stole $112 million in XRP from Ripple co-founder Chris Larsen's personal wallet. While Larsen quickly detected and reported the unauthorized access, the stolen funds have already been laundered through various platforms. However, the on-chain data makes the actual ownership of the hacked wallet unclear, raising questions about its possible connection to Ripple.
Former policymaker joins Coinbase
Former government official George Osborne, who was Chancellor of the Exchequer of the United Kingdom, joined Coinbase as a global advisor. Coinbase advisory board already includes a former US Secretary of Defense and a former senator, highlighting the growing influence of former policymakers in the crypto industry.
Record seizure of Bitcoin
German authorities captured a record 2 billion euros worth of bitcoins, investigating two men for their alleged involvement in a hacking website in 2013, where the suspects allegedly purchased Bitcoins with the portal's revenue. Meanwhile in the UK, London Metropolitan Police Seize More Than 1.4 Billion Bitcoins Pounds sterling, during the trial of a woman accused of laundering funds on behalf of her former employer, involved in Chinese investment fraud.
FTX abandons revival attempts
FTX abandoned its plans to relaunch, opting for liquidation to reimburse customers after potential buyers were unwilling to invest in rebuilding. FTX's goal now is to liquidate $7 billion in assets to pay off debts. In the meantime, Celsius Network succeeded emerged from bankruptcy after an 18-month process. Along with a $3 billion payment, a new publicly traded entity, Ionic Digital, will be created and owned by Celsius' creditors.
Increase in Bitcoin mining operations in the United States
Bitcoin mining operations in the United States now consumes so much electricity like the entire state of Utah. The U.S. Energy Report estimates that mining last year accounted for the equivalent of the annual consumption of more than 3 million to 6 million homes. The United States has seen a surge in mining activity, with facilities concentrated in states like Texas, Georgia, and New York.
Are crypto-pump-and-dumps worth it?
A channel analysis report highlights the high failure rate of illicit pump and dump schemes on the Ethereum DEX ecosystem. Of the more than 370,000 tokens introduced on Ethereum last year, 54% met criteria indicating potential market manipulation. Malicious entities earned $240 million from these schemes, but the average profit per token was only $2,600, or 1% of Ethereum DEX's annual trading volume.
This is what happened this week in crypto, see you next week.