News Recap: Big moves on the cryptocurrency industry.
Updated: Sep 15
After last week’s correction, volatility started to settle and prices around the cryptocurrency market started to consolidate. Despite this consolidation, some big headlines were appearing on the news.
Tether’s $1 Billion Swap from Bitfinex to Binance
Due to a surplus of $1 Billion TRON-based USDT, Binance required to do a rebalancing of its assets. Even though this burning and mint of Tether supply is nothing new to the cryptocurrency industry, it highlights the amount of money involved in maintaining the right levels of liquidity for these big exchanges.
This huge transaction was carried through six smaller transactions and lasted about one hour to complete. It is noted that at some given time, Binance was down between $400 and $600 million as the tokens were redistributed. Binance ended up having an equivalent amount of its TRON-based USDT in Ethereum-based USDT, highlighting the demand of this asset over the later.
It is important to highlight that for these types of transactions to happen; trust and transparency are necessary for all involved parties.
The $625,000 Bounty to Break Monero
During this week, the United States Internal Revenue Service (IRS) announced a bounty of up to $625,000 to individuals or companies who could crack Monero’s privacy system. The reasoning for this is the lack of transparency and the privacy that these chains give to potential criminal organisations.
The grant given by the IRS would seek for an initial payment of $500,000 to applicants with working prototypes and a further $125,000 once the pilot test is completed and approved by the government.
Peter Schiff: “I was wrong about Bitcoin”
Peter Schiff is well recognised for being a controversial figure in the cryptocurrency market. More specifically, Schiff has spoken out again Bitcoin and has had a bearish sentiment even since its growth in adoption and interest.
Recently Schiff said he was wrong as he expected bitcoin to “collapse” as gold rose to a new all-time high. His view on Bitcoin is more Bearish than the current market sentiment. He points out that a potential down-continuation is bound to happen. “The more the 10k support level tested, the weaker it gets”. “I was right on gold, but wrong on Bitcoin”.
SushiSwap Creator Returns $14M Dev Fund
Last week, SushiSwap creator “Chef Nomi” cashed out his holdings from the automated market maker. His move prompted a 73% crash in the price of the SUSHI token, creating a tremendous backlash from supporters as they accused him of doing an exit scam.
Since then, Chef Nomi has returned the 38,000 ETH back to the original developer fund wallet. Furthermore, after apologising, he mentioned that any reward he deserves should be decided by the community.
“I have returned all the $14M worth of ETH back to the treasury. And I will let the community decide on how much I deserve as the original creator of SushiSwap. In any currency (ETH/SUSHI/etc). With any lockup schedule you wish.
More about the author:
Patrick Maldonado is a Cryptocurrency Trader & Market Analyst at Alphachain Capital