• This article compares the market reactions of Euler’s EUL token and First Republic Bank’s stock following respective protocol hacks and U.S. bank turmoil, respectively.
• Euler Finance experienced a flash loan exploit that caused its token to fall by 50%, while First Republic shares fell 62% due to the collapse of two crypto-friendly banks.
• Despite the major losses suffered by Euler, FRC was punished more severely by traders, demonstrating how investor sentiment can be more influential than actual market events.

Market Reactions

This DeFi Protocol Just Got Hacked but Its Token Is Still Doing Better Than a Major U.S. Bank’sEuler’s EUL token fell 50% hours after an exploit on its protocol while First Republic shares fell roughly 62% following U.S. bank turmoil.

Euler Finance Hack

An attacker used a flash loan to plunder nearly $200 million from Euler Finance, a permissionless protocol that facilitates crypto lending and borrowing. Holders of euler (EUL) had their tokens cut in half as a result of this attack, demonstrating that no matter how bad things get somebody always has it worse.

U.S Bank Collapse

First Republic Bank (FRC), which has been around for nearly 40 years, saw its stock plunge 62%. This came after Wall Street digested the collapses of Silicon Valley Bank (SVB) and Signature Bank which both did business with crypto companies, leading to many investors fleeing for safer havens such as Bitcoin and Ethereum instead.

Investor Sentiment Influential

Despite the fact that First Republic has not defaulted or gone insolvent or been seized by the government – in fact it raised $70 billion over the weekend to shore up its liquidity – traders punished FRC shares more severely than EUL which had just lost hundreds of millions in value with little chance of getting it back.. This demonstrates how investor sentiment can be more influential than actual market events when it comes to asset prices moving up or down.

Crypto Market Reaction

Elsewhere in the stock market, assets mostly traded sideways by the session’s close; however in cryptocurrency almost every asset rallied following news that all depositors would be made whole again further highlighting investors’ confidence in digital assets during times of uncertainty or crisis situations .

• Silvergate Bank lost over $8 billion in deposits from its crypto customers at the end of 2022.
• The bank’s own data shows a rapid acceleration of its novel crypto-banking business, as well as how it was vulnerable to the industry’s drama.
• Silvergate’s data showed that the volume on its Silvergate Exchange Network and overall asset size peaked in 2021, before sliding in 2022 due to crypto sector dramas.

Silvergate Bank’s Crypto Business

Silvergate Bank is a La Jolla, California-based lender that experienced significant financial losses due to cryptocurrency-related events in late 2022. Its own data reveals that the bank had been rapidly expanding its digital assets business prior to this dramatic downturn. Furthermore, the bank has been subject to investigations by regulators and the U.S. Department of Justice, with ongoing audits expected to require restatements of its financials.

Volume High Point

The volume on Silvergate’s Silvergate Exchange Network hit a high point in early 2021, reaching $406 billion in transfers throughout the first half of the year before dropping to $230 billion by late 2022. Similarly, the bank’s overall asset size peaked at $16 billion during fourth quarter 2021 before declining to $11.4 billion according to its most recent report – still relatively small compared with mid-range community banks.

Regulatory Pressure

Silvergate has faced pressure from U.S banking watchdogs who have warned against such institutions concentrating their efforts on cryptocurrency activities – warnings which have since become reality for Silvergate and many other banks within this sector.

Implosion of Industry

The implosion of cryptocurrency industry caused a sudden evaporation of most deposits held by Silvergate – one risk among several identified by regulators which eventually came true for this specific bank institution .

Conclusion

Although Silvergate saw tremendous growth between 2020 and 2021 regarding digital assets banking and exchange network activity, it also became increasingly vulnerable as regulatory pressures mounted and industry drama unfolded towards late 2022 . As such ,the bank ultimately lost billions from customer withdrawals despite reaching peak performance at points throughout 2021 .

• The Financial Action Task Force (FATF) has agreed on an action plan to drive the implementation of its global standards for crypto.
• This includes a stock take of current levels of implementation across the global network and a report regarding the findings due in the first half of 2024.
• The FATF also noted that strong crypto regulation is key to disrupting financial flows from ransomware and other cybercrimes.

Global Crypto Norms

The Financial Action Task Force (FATF) is a global money-laundering and financial crimes watchdog made up of 206 members, including observer organizations such as the International Monetary Fund, United Nations and Egmont Group of Financial Intelligence Units. In their recent plenary meeting, they agreed on an action plan to drive timely implementation of their global standards for cryptocurrency.

Action Plan

The action plan includes taking stock of what countries have been doing so far when it comes to implementing their norms, including their controversial “travel rule” which requires services providers to collect and share information on cryptocurrency transactions. They also noted that strong crypto regulation is key to disrupting financial flows from ransomware and other cybercrimes. A report based on these findings is due in the first half of 2024.

Travel Rule

The FATF published its updated standards for crypto in 2019, but last June, it said only 11 out of 98 surveyed jurisdictions were enforcing the travel rule and urged them to act faster. The travel rule requires services providers to collect and share information about cryptocurrency transactions greater than 1 000 USD or equivalent in value with foreign recipients or senders.

Stock Take

In order to strengthen implementation of FATF standards on virtual assets and virtual asset service providers, a road map was agreed upon by the plenary which will include a stocktake of current levels of implementation across the global network. This stocktake will help monitor progress towards full compliance with all relevant FATF recommendations related to cryptocurrencies worldwide.

Conclusion

Overall, this agreement shows that there is an effort being made by the FATF to ensure that proper regulations are put into place when it comes to cryptocurrencies worldwide in order further disrupt any potential financial flows from ransomware attacks or other cybercrime activities. This could potentially be beneficial for both investors as well as those who use cryptocurrencies as payment methods since it would help create more trust in digital currencies as well as reduce fraudulent activity associated with them.

• The New York Department of Financial Services (NYDFS) is investigating stablecoin issuer Paxos.
• Paxos’ stablecoins include the Pax dollar (USDP) and Binance USD (BUSD).
• NYDFS has issued guidance for asset-backed stablecoins, following the collapse of the terraUSD/luna ecosystem.

Investigation into Stablecoin Issuer Paxos

The New York Department of Financial Services (NYDFS) is investigating stablecoin issuer Paxos. The scope of the crypto-related investigation is not yet clear, but NYDFS has issued guidance for asset-backed stablecoins, following the collapse of the terraUSD/luna ecosystem.

Paxos’ Stablecoins

Paxos’ stablecoins include the Pax dollar (USDP) and Binance USD (BUSD), a Binance-branded stablecoin offered through a white-label service. The company holds a virtual currency license – commonly referred to as BitLicenses – issued by NYDFS, as well as a provisional bank charter from the U.S Office of the Comptroller of the Currency in 2021.

Rumors Regarding OCC Application Withdrawal

Recently there have been rumors that suggest that U.S Office of the Comptroller of the Currency may ask it to withdraw its application for a full banking charter, which Paxos has denied. However, an ongoing investigation by a state regulator suggests that this may be under closer scrutiny than its peers may be facing.

Stablecoin Guidance from NYDFS

In June 2020, NYDFS published guidance directed at stablecoin issuers to ensure their stablecoins are fully backed with assets segregated from their funds and regularly attested to by auditors or other third parties. This precautionary measure was implemented after TerraUSD/Luna collapsed in order to prevent similar situations in future cases.

Conclusion

Overall, Paxos is currently under investigaton by NYDFS due to its involvement with certain types of crypto assets such as USDP and BUSD coins. The agency’s recent guidance on asset-backed stablecoins serves as an indication that they are taking steps towards ensuring similar collapses do not happen again in future cases involving cryptocurrency or digital assets managed by companies like Paxos .

• Bittrex, a Seattle-based crypto exchange, is cutting more than 80 people from its staff due to the “new economic environment”.
• The job cuts come as part of a wider trend across the crypto industry due to falling cryptocurrency prices and the collapse of FTX exchange.
• Since April, more than 29,000 jobs have been lost across the crypto industry.

Bittrex Crypto Exchange Laying Off More Than 80 People

Seattle-based cryptocurrency exchange Bittrex is reducing its staff by more than 80 people, the company confirmed Thursday, citing market conditions. In a leaked email on Twitter, Bittrex CEO Richie Lai told employees that the team had been working “aggressively” to reduce expenses and increase efficiencies but were not successful.

Reasons For Job Cuts

CEO Richie Lai cited the “new economic environment” as the primary reason for the cuts. He said that “the market downturn triggered by multiple failures in the crypto ecosystem became an outright collapse by the end of the year” which led them to reset their strategy and balance their investments with this new economic environment.

Part Of A Wider Trend

The reductions affected at least some employees in most departments across Bittrex and it is part of a wider trend across other exchanges like Gemini and Coinbase who also announced layoffs in January due to sharp declines in cryptocurrency prices and other prominent crypto firms collapsing.

Crypto Industry Job Losses

CoinDesk estimates that since April more than 29,000 jobs have been lost across the crypto industry based on media reports and press releases. These job losses are likely to continue if market conditions don’t improve soon.

Conclusion

The news of Bittrex laying off more than 80 people serves as another reminder that market conditions can drastically affect businesses within this space and highlights how important it is for investors to be aware of potential risks associated with investing in cryptocurrencies.

• Rep. French Hill (R-Arkansas) has stated that the newly formed Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion will prioritize legislation on stablecoins.
• Rep. Hill also mentioned that they will also be pursuing a privacy statute federally, which he believes to be important to digital asset regulation.
• He believes that the stablecoin draft will be used as a model for how the committee will approach digital asset regulation moving forward.

The U.S. House of Representatives has recently formed a new subcommittee, the Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, and its chairman, Rep. French Hill (R-Arkansas), has stated that stablecoin regulation will be the first priority of the subcommittee. Rep. Hill believes that the stablecoin draft will be used as a model for how the committee will approach digital asset regulation moving forward.

In addition to regulation of stablecoins, Rep. Hill also mentioned that the subcommittee will be pursuing a privacy statute federally. He believes that this will be important to digital asset regulation, as it will provide clarity on which agency, the SEC or the CFTC, will seek explicit oversight.

The subcommittee will be seeking to provide clarity to the crypto industry, as well as to make sure that the regulations are consistent across the board. Rep. Hill believes that the committee should look at all of the digital asset regulations currently in place to ensure that they are up to date and provide the necessary protection for investors.

Rep. Hill also noted that the members of the subcommittee are eager to learn more about the digital asset space, and to make sure that they have a clear understanding of the issues that they are looking to address. He believes that the subcommittee will be able to provide much-needed clarity to the crypto industry, which will ultimately benefit the industry as a whole.

Overall, Rep. Hill believes that the newly formed subcommittee will be able to provide much-needed clarity on digital asset regulation. He believes that the stablecoin draft will be used as a model for how the committee will approach digital asset regulation moving forward, and that the committee will be able to provide much-needed clarity to the crypto industry.

• Genesis Global Capital, an institutional crypto brokerage, is reportedly laying the groundwork for a potential bankruptcy filing.
• Cryptocurrency prices have dropped in response to the news, with Bitcoin (BTC) and Ethereum (ETH) both down by 2.9% and 4.3%, respectively.
• The S&P 500 futures, FTSE 100, and Treasury Yield 10 Years are all down, with the 0.9%, 1.3%, and 0.2% respectively.

Cryptocurrency markets have been hit hard this week with reports of Genesis Global Capital, the institutional crypto brokerage, potentially filing for bankruptcy. The news had an immediate impact on crypto prices, with Bitcoin (BTC) and Ethereum (ETH) both dropping by 2.9% and 4.3%, respectively. The CoinDesk Market Index (CMI) also declined by 3.5%, with the S&P 500 futures, FTSE 100, and Treasury Yield 10 Years all down by 0.9%, 1.3%, and 0.2%.

According to a Bloomberg report, Genesis is in confidential negotiations with various creditor groups, with the company warning it could seek bankruptcy protection if it fails to raise capital. The move comes after the collapse and bankruptcy of crypto exchange FTX in November, which has put Genesis in a difficult position. In an attempt to rescue the company, Genesis has been scrambling to raise fresh capital or reach a debt restructuring deal with creditors.

The bankruptcy could have a major impact on the cryptocurrency industry as a whole, as Genesis is one of the larger institutional players in the sector. The company has been a major player in the sector for several years, offering a variety of services including lending and borrowing, trading, and asset management. It is also known for its large portfolio of crypto assets, which includes Bitcoin, Ethereum, Ripple, and other major digital currencies.

The news has raised concerns that other institutional players could follow suit and potentially file for bankruptcy if the market continues to remain bearish. This could potentially cause more volatility in the market, with the potential for major losses in crypto investments.

It is unclear what the future holds for Genesis, but the company has stated that it is committed to finding a solution to its current financial situation. Until then, it remains to be seen how the crypto markets will be affected by the news of the potential bankruptcy.

Bulletpoints:
• Online trading app Robinhood (HOOD) will end support for BSV, the native token of the Bitcoin SV blockchain, on Jan. 25.
• Users can buy, sell, send and hold BSV until the deadline, Robinhood said in a Wednesday email to customers and statement on its website.
• Following the announcement, the price for Bitcoin SV blockchain’s native token, BSV, dropped more than 15%.

Online trading app Robinhood (HOOD) has announced that it will be ending its support for Bitcoin SV (BSV) on January 25th. The announcement was stated in a Wednesday email to customers and a statement on its website.

The native token of the Bitcoin SV blockchain, BSV, is currently supported by Robinhood and users can still buy, sell, send and hold BSV until the deadline. However, any BSV in a Robinhood crypto account after the deadline will be sold for market value.

The announcement has caused a significant drop in the price of Bitcoin SV blockchain’s native token, BSV, with prices dropping more than 15%. This is a significant decrease for the price of BSV, which had been relatively stable for the past few months.

The decision by Robinhood to end its support of BSV is based on the online trading platform’s regular review of cryptocurrencies offered. This announcement comes shortly after another online trading platform, FTX, faced bankruptcy hearings and was able to recover more than $5 billion in different assets, according to an attorney.

The lack of support by Robinhood for BSV may have a lasting effect on the overall value of the cryptocurrency, as well as its long-term prospects. It remains to be seen how the market will react to the news and what other platforms may follow suit and end their support of BSV.

However, the cryptocurrency market is still a volatile one and it is important for investors to remain vigilant and aware of the news and changes affecting the market. It is also important to do your own research on any cryptocurrency you are considering investing in, and to always be aware of the risks associated with investing in cryptocurrencies.

• A Delaware bankruptcy judge ruled that the names of creditors for FTX can remain sealed for at least another three months.
• The ruling was made to protect the privacy of potentially 9 million users of the crypto exchange.
• Judge John Dorsey indicated that he may change his mind after three months and review the issue.

A Delaware bankruptcy judge has ruled that the names of creditors for FTX can remain sealed for at least another three months, in order to protect the privacy of potentially 9 million users of the crypto exchange. The ruling was made by Judge John Dorsey at a hearing on Wednesday, after media organizations and the U.S. government had made a bid to keep the legal process transparent.

Attorney Brian Glueckstein, representing FTX, told the court that they wanted to redact sensitive personal information of customers and other stakeholders, as well as protect the value in the debtors customer list as an asset. The company had argued that publishing the names of the users could endanger their privacy. In response, Judge Dorsey stated that he was “reluctant at this point to say I’m going to require the disclosure,” and allowed the lists to remain sealed.

However, Dorsey did indicate that he may change his mind after three months and review the issue. He urged both sides to come to an agreement on the matter, and if not, there will be a hearing to decide the fate of the creditor names. In the meantime, the names will remain sealed, providing some relief to those users who were concerned about their privacy.

John J. Ray III, CEO of FTX, had stated that he was grateful for the judge’s decision. He commented that the company had always been committed to protecting their users’ privacy, and that the ruling had allowed them to do just that. He also added that he hoped both sides could come to an agreement soon that would benefit everyone involved.

In conclusion, while the names of the creditors of FTX will remain sealed for the time being, it remains to be seen what the ultimate outcome of this dispute will be. For now, the company and its users can rest assured that their privacy is being protected, and the judge will review the issue in the near future.