Krystal Newsflash (3rd Feb 2023)
Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:
More regulation breakthroughs 🥊
New crypto regulations have been established, with the latest news from the UK government looking to regulate both crypto trading and lending.
Moreover, Hong Kong has released a new proposal to regulate stablecoins.
One glaring omission is algorithmic stablecoins, as Hong Kong requires all regulated stablecoins to have enough assets in their reserves to back up the circulating supply of the stablecoin.
Meanwhile, Montenegro seems to be partnering with Ripple to launch a central bank digital currency (CBDC).
This is rather interesting as Montenegro still uses the Euro as its national currency, even though it is not an EU member.
Twitter’s new licence applications spark hope for DOGE 🐕
As Elon Musk plans to achieve his vision of building a super app, Twitter is applying for multiple regulatory approvals to integrate payments into the app.
There has been heavy speculation that DOGE could be one of the cryptocurrencies that are being used for payments on Twitter, which has led to a huge pump in its price.
You can find out how Elon’s takeover may have certain implications on crypto here.
However, Twitter may soon have a competitor in the form of Damus, a decentralised social networking app built on Nostr.
The application was recently listed on the Apple App Store after receiving 3 rejections.
Damus utilises a decentralised network for messaging which is uncensored, and has also integrated the Bitcoin Lightning network for payments within the app.
New ‘algorithmic’ stablecoin launches 🚀
The Cardano network has been boosted after the launch of the new decentralised stablecoin, DJED.
This stablecoin is issued by COTI, in partnership with the Cardano foundation. While algorithmic stablecoins have received a bad reputation after the crash of Terra, COTI is trying to distance itself from it by branding DJED as an overcollateralised stablecoin.
There are 3 different tokens that are involved in maintaining DJED’s peg to the US dollar:
- DJED stablecoin
- ADA (deposited to mint DJED)
- SHEN (reserve coin that provides extra liquidity)
DJED aims to maintain an overcollateralisation ratio between 400–800% for DJED and SHEN.
This interesting strategy of maintaining the peg will be heavily scrutinised, particularly since multiple stablecoins like UST and USN have failed.
Celsius examiner report released 📝
An independent report has been published regarding the bankruptcy filing of Celsius by bankruptcy examiner Shoba Pillay.
A lot of interesting findings have surfaced, including how Celsius used customer deposits to meet withdrawal requests.
Moreover, Tether was caught in the crossfire after it was alleged that they had borrowed funds from Celsius, amounting to more than $2 billion.
However, this was later refuted by Tether’s CTO, Paolo Ardoino, where he mentioned that it was Celsius who borrowed funds from Tether, and not the other way around.
The collapse of Celsius was rather remarkable, and you can find out what are the main lessons we can learn from this crash in our article here.
A third blockchain for BNB? 👀
The BNB Chain is expanding yet again, with the new BNB Greenfield chain.
Greenfield is a decentralised storage system that uses smart contract integrations for Web3 applications, that allows users to create, store and exchange data with full ownership.
This blockchain is mainly targeted at Web 2.0 developers and large user bases, as it aims to allow users to have greater control over their data.
BNB is now the native token of 3 different blockchains. You can find out the differences between the BNB Smart Chain and Beacon Chain in our article here.
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