• The US Securities and Exchange Commission (SEC) issued a Wells notice to the BUSD issuer Paxos earlier this month.
• Since then, the number of USDC sending addresses and BUSD transfers have dropped to 1-month and 5-month lows respectively.
• The mean transaction volume for BUSD has surged to 8-month highs, while its market cap has fallen by nearly $6 billion.
SEC’s Pressure on Stablecoins
The US Securities and Exchange Commission (SEC) recently issued a Wells notice to the BUSD issuer Paxos, causing drops in both USDC sending addresses and BUSD transfers. Data provider Glassnode reported that the seven-day median average of USDC sending addresses had dropped to a one-month low of 1,384.976, while the number of BUSD transfers had decreased to a five-month low of 85.720.
BUSD’s Mean Transaction Volume Surge
On the other hand, Glassnode also reported an eight-month high in terms of mean transaction volume for BUSD with $886.3 million being recorded as its seven-day median average. This was an increase from its previous eight-month high which was recorded on August 23rd 2022 at $880.9 million according to data provided by Glassnode itself.
Market Cap Fall for Both Coins
CoinMarketCap data shows that USDC’s total market cap fell from around $42 billion before news broke out about SEC’s pressure on stablecoins to around $40 billion after Changpeng Zhao (CZ), CEO of Binance tweeted about it on Valentine’s Day. Similarly, Binance USD’s market cap has reduced from over 16 billion at the time when CZ tweeted about SEC’s pressure to under 11 billion at present according to CoinMarketCap data.
Circle CEO Reacts To SEC Pressure On Stablecoins
Jeremy Allaire, CEO of Circle which is the issuer behind USDC gave his opinion on this situation saying that SEC may not be the right regulator watch stablecoins but rather banking regulators could be more suitable for this role according to what he said on February 24th 2021 during his statement regarding this issue .
It is clear that SEC’s pressure on stablecoins has caused significant losses in terms of capitalization for both USDC and BUSD as well as drops in number sending addresses and transactions numbers for these coins with only some minor gains seen in terms of mean transaction volumes where it reached 8 month highs according to Glassnode’s data although some people think that banking regulators would be better suited than SEC when it comes down regulating stablecoins such as those two mentioned above .
• CoinShares released its Q4 2022 financial report, showing a continued focus on institutional offers and managing digital assets.
• The company experienced a setback due to the insolvency of FTX and needs to find out how much of its assets can be recovered or if they can collect their funds.
• Galois Capital, a hedge fund, announced it was ceasing operations due to losses brought on by the collapse of FTX.
CoinShares Releases Financial Results
CoinShares, a digital asset investment group, has shared its Q4 2022 financial report, showing a continued focus on institutional offers and managing digital assets. The fund manager is still unsure of possible asset recovery efforts after FTX collapsed at the end of 2022 after returning to profitability in Q3 of the same year.
The FTX Effect
Following FTX’s bankruptcy filing, CoinShares claimed over $31 million in funds were trapped in the exchange. The fund manager needs to find out how much of the assets can be recovered or if they can collect the funds. CEO Jean-Marie Mognetti also claimed that the insolvency of FTX derailed the company’s ability to introduce its algorithmic trading platform, HAL, across Europe. Despite this, Mognetti believes that CoinShares will enter 2023 with specific objectives including focusing on growing its institutional products and digital asset management business.
Galois Capital Closes Its Doors
Although CoinShares survived the FTX storm, Galois Capital did not fare as well. The hedge fund informed investors on Feb 20th that it was ceasing operations due to losses brought on by the collapse of FTX and decided to sell off its claims to bidders better equipped to pursue bankruptcy claims and return remaining funds to investors .
Despite difficult financial conditions following FTX’s insolvency filing in late 2022, CoinShares remains financially stable with strong levels of inflow into their physical ETPs recorded for Q4 2023. Similarly Galois Capital closed down which led investors selling their claim better equipped for bankruptcy claims and returning remaining funds back them
•CoinShare’s Q4 Financial Report shows an increased focus towards Institutional Offers & Digital Asset Management
•FTX Insolvency impacted both CoinShare’s & Galois Capital’s finances
•CoinShare graduated Nasdaq Stockholm’s primary market despite difficult market conditions •Galois Capital ceased operation & sold off their claims
• Fantom’s native $FTM token has posted a more than 10% price gain in the past 24 hours despite increased selling activity on centralized exchanges by whales.
• More than 8 million FTM tokens were dumped on centralized exchanges on Valentine’s day, increasing the token supply by 7.04 million $FTM on these platforms.
• According to Coingecko, the price of $FTM has witnessed a 10.6% increase in the past 24 hours, exchanging hands for $0.519213, with a trading volume of $728,951,739.
Fantom Sees Decent Gains Despite Whale Dumping
Fantom’s native crypto asset, the $FTM token has shown decent gains in the past 24 hours despite increased selling activity from whales and sharks on centralized exchanges. The token is up 10.6% over the last day and 59.3% over the last 30 days according to data from CoinGecko; however it is still down 11.4% over the last 7 days and 85% since its all-time high in October 2021. Early investors who purchased around March 2020 are still showing massive profits of 27,204%.
Whales Dump 8 Million Tokens
On Valentine’s Day this month 8 million FTM tokens were dumped on centralized exchanges resulting in an increase of 7.04 million FTM tokens on those platforms according to crypto analyst Ali Martinex. Shark and whale addresses holding between 10K – 100M FTMs have dropped a total of 259.7M worth coins over 4 weeks which have largely been scooped up by micro investors holding 0-1 FTMs according to Santiment Analytics data tracking platform.
Price Performance Overview
The current trading price of FTM tokens is at $0.519213 according to CoinGecko with a 24 hour trading volume of 728 million dollars at time of writing this article; This puts it up 10% from where it was yesterday but down 11% from where it was seven days ago as previously mentioned before and 85% lower than its all-time high back in October 2021 when it reached 3$.
Long Term Profitability
Early adopters who purchased FTM tokens around March 2020 are currently showing huge profits with returns of 27,204%, making them one example among many projects that have seen impressive return rates for their investors especially during bear markets such as today’s market conditions
Despite heavy dumping activity by whales and sharks in recent weeks, Fantom’s native asset shows strong signs of recovery as its price continues to surge upward over short term periods while still maintaining impressive long term profitability for early adopters who bought into the project back when prices were much lower than they are today
• Andrew Tate, a British-American social media influencer and five-time world kickboxing champion, was arrested in Bucharest, Romania in December 2022.
• Romanian police seized millions of dollars worth of luxury cars, homes, and watches from Tate and his associates. They also seized hardware wallets containing digital assets worth over a hundred thousand dollars together.
• Tate has expressed support for cryptocurrencies as a hedge against inflation but is accused of using crypto to dodge taxes and setting up a pornographic webcam business.
Andrew Tate Arrested
In December 2022, notorious British-American social media influencer and five-time world kickboxing champion Andrew Tate was arrested in Bucharest, Romania on charges of human trafficking, sexual assault, and forming an organized criminal enterprise.
Police Seize Assets
Romanian authorities seized millions of dollars worth of luxury cars, homes, and watches from Tate and his associates during the arrest. In addition to these items, they also confiscated hardware wallets containing digital assets including five bitcoins (BTC) worth about $110k for Andrew held in his girlfriend’s wallet and 16 bitcoins held by his brother Tristan amounting to a total of $465k.
Tate Praises Crypto
Tate praised cryptocurrencies such as Bitcoin (BTC) & Ethereum (ETH) for their potential to act as a hedge against inflation – which he mentioned in a mutual back-patting exchange with Michael Saylor – CEO of MicroStrategy – on Twitter. He went so far as to encourage others to invest in them too.
Accusations Of Tax Evasion
However it seems that Tate may not be entirely above board when it comes to crypto investments as Bruce Rivers – famous criminal lawyer – has made accusations that he bragged about using crypto to dodge taxes with The Mirror report suggesting he made an impressive $600K per month employing 75 sex workers while avoiding paying tax through the use of cryptocurrency payments instead.
Controversial Side Exposed
Adding fuel to the fire is Tate’s controversial side exposed through the setting up of a pornographic webcam business which further brings into question how much conviction or financial gain lies behind his fondness for digital currencies.
• Cryptocurrency can be used for everyday transactions, such as buying groceries and paying rent.
• It offers cost-saving benefits, such as no fees associated with the transaction and faster processing times.
• It also provides security benefits, such as strong encryption technology and anonymity.
The Benefits of Using Cryptocurrency for Everyday Transactions
Cryptocurrency transactions are much faster than traditional payments, which can be especially beneficial if you’re dealing with international customers who may not have access to traditional banking services. For example, at online casinos like cryptogamblers.com, cryptocurrency can help reduce the cost of processing payments since there are no fees associated with the transaction. This means that more of the customer’s money goes directly to the casino, cutting out the middleman. And because these transactions are much faster than traditional payments, they can be processed quickly and without delays. As a result, customers have access to their funds right away.
Investing in cryptocurrency can provide access to new markets and opportunities that may not be available through traditional investments. For example, some cryptocurrencies offer access to projects still in their early stages of development but can become very successful in the future. Finally, investing in cryptocurrency can also give investors greater control over their assets since they do not need to rely on third parties such as banks or brokers when trading or transferring funds.
Cryptocurrency is becoming increasingly popular due to its security benefits. Transactions are secured by advanced encryption technology, making it nearly impossible for hackers or other malicious actors to access your funds. Cryptocurrency transactions are anonymous and decentralized, meaning no single entity can control them or manipulate their value. This makes it much harder for criminals to use cryptocurrency for money laundering or other illegal acts.
Using cryptocurrency for everyday transactions has many advantages including cost savings from not having any processing fees associated with the transaction; investment opportunities from accessing new markets; and enhanced security from advanced encryption technology and decentralization of funds away from any one entity’s control.