Nomegatrucks

• The U.S. government recently announced plans to backstop all deposits at two failed banks, which inadvertently secured at least 8% of the collateral for the USDC stablecoin.
• Circle CEO Jeremy Allaire discussed emergency measures his company took and its plans to spread out cash and turn stablecoins into „straight-through government obligation money.“
• BitMEX co-founder Arthur Hayes proposed NakaDollar (NUSD), a stablecoin backed by bitcoin and bitcoin derivatives, which would be liquid and attractive to traders while providing stability if accepted and used by investors and crypto exchanges.

The Banking Crisis Has Been Good for Stablecoin Experimentation

Sovryn, a Bitcoin DeFi protocol, announced a new dollar proxy as others look at alternative models for collateralizing stablecoins amid a banking system crisis.

U.S Government Backs Stablecoins

When the U.S Treasury Department, Federal Reserve and FDIC announced plans to backstop all deposits at two failed banks, they were also pledging to secure at least 8% of the collateral for the USDC stablecoin. Circle, the issuer of USDC, keeps around a quarter of its reserve assets at about six banks. Circle CEO Jeremy Allaire spoke about the emergency measures his company took in order to keep USDC pegged with the U.S dollar.

New Dollar Proxy Announced

Sovryn recently announced a new dollar proxy as an alternative model for collateralizing stablecoins during this banking system crisis. It is designed to be deeply liquid and attractive to traders while providing stability through being accepted and used by investors and crypto exchanges.

NakaDollar Proposal

BitMEX co-founder Arthur Hayes proposed NakaDollar (NUSD), a stablecoin backed by bitcoin (BTC) and bitcoin derivatives that would theoretically provide liquidity while offering stability if accepted by investors and crypto exchanges alike.

Conclusion

Stablecoins are proving themselves useful in times of financial hardship due to their ability to distribute reserves among several different entities while still maintaining their value relative to fiat currency like USD or EURO when used correctly.. This has resulted in many proposals looking into other types of models for collateralizing these coins such as Sovryn’s new dollar proxy or BitMex’s NakaDollar proposal which seek more efficient ways of securing these tokens during times of economic instability

• A technical analyst stated that the formation of an inverse head-and-shoulders pattern on the Grayscale Bitcoin Trust shares (GBTC) could indicate a potential bullish trend reversal.
• A close above the neckline would confirm the reversal, potentially leading to a 50% price rally.
• The reverse head-and-shoulders structure is identified by three price troughs formed along a resistance line, with the middle trough being the lowest and the other two relatively smaller and similar in depth.

Grayscale Bitcoin Trust Form Bullish Chart Pattern

The future looks bright for the battered Grayscale Bitcoin Trust shares (GBTC), a technical analyst told CoinDesk, pointing to an inverse or reverse head-and-shoulders pattern on GBTC’s price chart. GBTC jumped to a six-month high of $13.54 Wednesday, testing the neckline resistance of the reverse head-and-shoulders pattern on the daily chart.

Reverse Head-and-Shoulders Pattern

The reverse head-and-shoulders structure is identified by three price troughs formed along a resistance line, with the middle trough being the lowest and the other two relatively smaller and similar in depth. The occurrence of this pattern after a prolonged and notable downtrend, as in GBTC’s case, is said to signal a potential bullish trend reversal. The bullish shift is confirmed once prices top out above this common resistance line – referred to as „neckline“ – by technical analysts.

Confirmation of Breakout

A close above this neckline will confirm breakout from this formation which could then open up doors for further gains according to Goncalo Moreira, author of VocabTA; he added that it could lead to almost 50% rise in prices from current levels if it confirms as expected.

Potential Rally

If GBTC manages to close its daily candle above $13 mark than it would mean confirmation of this bull run which could lead to significant increase in prices compared to current levels – especially considering that these have been at significant lows since mid 2020 when prices had crossed all time highs back then crossing $20 mark per share.

Conclusion

                                                                                                                                                                               
 In conclusion, if confirmed technically this reversal structure can result in significant gains for holders and investors in GBTC shares who are already awaiting any kind of positive news for some time now due to ongoing bear market conditions since mid 2020 highs seen at around $20 per share level.

• Silvergate Capital shares have tumbled 29% in after-hours trading on Wednesday as the crypto-friendly lender raised a „going concern“ issue in a regulatory filing.
• Funds managed by State Street and BlackRock have added to stakes in recent weeks, while Ken Griffin’s Citadel Securities last week disclosed 5.5% of „market making positions“ in the shares.
• The impact of losses and regulatory issues call into question Silvergate’s ability to continue as a “going concern”.

Silvergate Capital Shares Tumble After Regulatory Filing

Silvergate Capital (SI) shares have tumbled 29% in after-hours trading on Wednesday after the company raised a “going concern” issue in a regulatory filing due to losses stemming from the FTX collapse in November and regulatory inquiries on multiple fronts.

Stakes Held By TradFi Heavy Hitters

State Street, BlackRock, and Ken Griffin’s Citadel Securities are among the largest holders of Silvergate stock, with all three having added to their stakes recently. Last week, Citadel disclosed 5.5% of its “market making positions” held within its shares.

Going Concern Uncertainties

The losses and regulatory issues associated with Silvergate raise questions about its ability to continue as a “going concern” going forward. As such, the company has delayed filing its annual report until further notice.

Implications for TradFi Players

It is uncertain whether or not the TradFi players have maintained their investments at the same levels given recent volatility in Silvergate’s stock prices; no recent data is available that suggest otherwise either way.

Conclusion

Despite uncertainty surrounding Silvergate’s future prospects, it appears that TradFi heavy hitters remain invested in its stock – at least up until now. Whether they will maintain these investments moving forward remains to be seen however, given market volatility and ongoing regulatory investigations associated with the company’s activities.

• Den, a wallet startup, has closed $2.8 million in seed funding led by IDEO CoLab Ventures and was joined by Gnosis.
• Den is building tools that make it easier for crypto projects to move their operations on-chain, as well as tools to make it easier for teams to initiate transactions.
• The founders experienced the coordination problems firsthand when ConstitutionDAO bid to buy a copy of the U.S. Constitution from Sotheby’s in November 2021.

Den Raises $2.8M Seed Round

Den, a multi-signature wallet startup, has closed $2.8 million in seed funding led by IDEO CoLab Ventures with other notable participants including Gnosis. The exact valuation was not disclosed.

Tools To Streamline Crypto Projects

Den is building tools that make it easier for crypto projects to fully move their operations on-chain and solve coordination issues when it comes to multi-signature wallets. This includes bots that send out recurring notifications to automate the coordination process and tools that allow teams to initiate a transaction and understand what’s going on in a token transfer.

Coordination Challenges Experienced By Founders

The Den co-founders, who are also behind the viral hit ConstitutionDAO, experienced the coordination problem firsthand when ConstitutionDAO put in a bid to buy a copy of the U.S. Constitution from Sotheby’s in November 2021 which required them to execute a single transaction worth over $40 million of Ethereum (ETH).

IDEO CoLab Ventures Leads Funding Round

IDEO CoLab Ventures led the round with participation from Gnosis and other unnamed investors – though the full valuation was not disclosed by Den at this time.

Conclusion

By solving coordination issues between multi-signature wallets and offering automated notifications for token transfers, Den is helping streamline blockchain based operations for crypto projects all around the world – something they have personally seen first hand with their involvement with ConstitutionDAO’s purchase of an original copy of the U.S constitution last year from Sotheby’s auction house

• Binance CEO Changpeng Zhao has distanced himself from the BUSD stablecoin following regulatory action.
• CZ stated that Binance has an agreement to let Paxos use their brand, but that they did not create the coin.
• Zhao also expressed skepticism about claims that Circle had raised alarm bells with regulators.

Binance CEO Distances Himself From BUSD Stablecoin

Binance’s Chief Executive Officer Changpeng „CZ“ Zhao distanced himself from the Binance-branded stablecoin BUSD, after regulatory action caused minting to cease. CZ said at a Twitter Spaces on Tuesday that „BUSD is not issued by Binance,“ and that they only have an agreement to let Paxos use their brand.

Regulators Act Following Minting Cease

On Monday, it was reported that BUSD issuer Paxos would stop minting new tokens following a request from the New York Department of Financial Services (NYDFS). The cryptocurrency, which is pegged to the value of the U.S. dollar, had been accused of constituting an unregistered security by regulators.

Working With Other Stablecoins

Despite this setback, CZ stated that they will continue working with other stablecoin issuers or creators, citing existing support for USD coin (USDC) and tether (USDT). He also expressed skepticism about claims that rival stablecoin issuer Circle had raised alarm bells with regulators.

Mounting U.S Crypto Regulatory Pressure

The news comes amid mounting US crypto regulatory pressure as authorities seek to enforce stricter compliance standards in the industry. It remains unclear what further action could be taken against entities involved in providing services related to the tokenized asset class in future months and years ahead.

Industry Implications

The implications of these latest developments are yet to be fully understood by those in the industry, but it seems likely that more stringent regulations could cause disruption across various service providers going forward as authorities look increasingly closely at cryptocurrencies and stablecoins issued in their respective jurisdictions.

• Bitcoin traded near $23,000 Monday afternoon.
• Ether traded sideways at around $1,635.
• Traditional markets declined as investors weighed the Federal Reserve’s response to strong employment data.

Bitcoin Holds Steady Near $23K

Bitcoin (BTC) traded near $23,000 Monday afternoon despite a fifth consecutive day of dips. The largest cryptocurrency by market capitalization was down about a half a percentage point over the past 24 hours, according to data from CoinDesk. The CoinDesk Market Index, which measures overall crypto market performance, was up 1% for the day.

Ether Also Sideways

Ether (ETH), the second-largest crypto in market value, edged higher by 1.3% to recently trade at $1,640. Craig Erlam, senior market analyst at forex services firm Oanda noted that Bitcoin has “had a few rough sessions but broadly speaking it still looks in good shape” and is not far from its highs this year.

Equities Decline

Traditional markets kicked off a new week lower as investors mulled the U.S. Federal Reserve’s response to strong employment data released on Friday. The S&P 500 index and the tech-heavy Nasdaq Composite closed down 0.6% and 1%, respectively, during the afternoon trading session while the Dow Jones Industrial Average (DJIA) was down 0.1%. The Federal Reserve raised interest rates by a quarter point last week after eight months of more hawkish rate hikes in response to dwindling inflation levels without plunging U.S economy into recession levels yet again .

Investors Weigh Their Next Steps

Job numbers gave credence or credibility to the fact that the Fed couldn’t leave rates high for too long and had to start bringing them back down eventually which sent crypto assets below $23,000 over the weekend after it breached $24,000 on a couple of occasions last week . Investors are now weighing their next steps as they anticipate further responses from central banks around world and evaluate conditions in equity markets as well as other asset classes such as commodities which have been volatile lately .

Join Web3 Conversation

Join an important conversation taking place in Austin Texas April 26-28 discussing how Crypto and Web3 will be an integral part of financial systems in future . Secure Your Seat today !

• LayerZero, a cross-chain bridging service, was accused of having a “backdoor” vulnerability in its code.
• The co-founder of LayerZero denied the allegations, claiming that all applications have the ability to set their own security parameters.
• Uniswap is voting on whether to partner with LayerZero, which could be the motivation behind the allegations.

Allegations Against LayerZero

James Prestwich, founder of the cross-chain bridging service Nomad, alleged in a blog post on Monday that LayerZero can bypass security controls in order to pass data between blockchains without anyone’s permission. He claimed that LayerZero has an undisclosed capability of a trusted party, which can compromise the function of the system.

LayerZero Denial

Bryan Pellegrino, a co-founder of LayerZero, said the project does have backdoor-like capabilities but denied the platform has ever tried to hide them. He said all applications have the ability to set their own security parameters and there is nothing anybody can do unless they configure it themselves.

Uniswap Vote

Pellegrino suggested Prestwich’s motives may be tied to an upcoming Uniswap governance vote to pick a bridge provider. Uniswap is considering partnering with LayerZero which could be behind these allegations from its competitor Nomad.

Motives Behind Allegations

Pellegrino suggested Prestwich’s motives may be tied to an upcoming Uniswap governance vote to pick a bridge provider. By making these accusations he may be hoping it will influence people’s opinion when voting for who should become Uniswap’s bridge provider.

Conclusion

It remains unclear why Prestwich chose now as his time for making these accusations against LayzerZero or if they are true or false. Until further evidence arises it appears that this is yet another battle between two competing companies trying to win over Uniswap as its bridge provider partner.

• Web3 offers an alternative to the traditional legal approach to policy enforcement by using “dry code”, or computer code, to protect investors and users.
• Regulations are important because they can promote orderly and efficient markets and protect investors from those who may take advantage of them.
• The best tool for designing effective DeFi policies is Web3 itself, which relies on incentives and the transparency of the technology itself.

Web3, the decentralized application platform, has gained significant traction in recent years, thanks to its promise of permissionless, self-custodial protocols and its ability to facilitate trustless financial transactions. While the platform has enabled a range of financial services, there has been a need to protect users and investors from the potential risks associated with decentralized finance (DeFi) protocols. Traditional legal approaches have thus far failed to provide a comprehensive solution to this issue, prompting many to consider the potential of “dry code”, or computer code, to protect users and investors.

The benefits of using computer code to enforce policy are clear; it is verifiable, permissionless, and self-custodial, and it can be used to automate processes, freeing up resources and eliminating human error. However, the challenge of designing effective DeFi policies has been a difficult one to overcome. It requires a deep understanding of the technology, its potential impacts, and the incentives that drive its use.

The best tool for designing effective DeFi policies is Web3 itself. By leveraging the incentives and transparency of the platform, it is possible to create protocols that are robust, secure, and reliable. Web3’s native smart contract language makes it easy to encode rules into the code, allowing for automated enforcement of policy. Furthermore, the open-source nature of Web3 allows for the creation of a range of different policies, each tailored to its specific use case.

The use of computer code to enforce policy also enables the creation of a variety of incentive structures to ensure compliance. For example, a protocol could be designed to reward users for providing accurate information, or to penalize those who attempt to exploit the system. By creating transparent and verifiable rules, it is possible to create a more secure and reliable system.

Ultimately, Web3 provides an effective tool for designing effective DeFi policies. By utilizing its native smart contract language, it is possible to create robust protocols that are secure, reliable, and incentivize compliance. Furthermore, the platform’s open-source nature allows for the creation of a range of different policies, each tailored to its specific use case. As the industry continues to evolve, Web3’s ability to create effective policy protocols will make it an invaluable tool for the DeFi space.

• Blur, an NFT marketplace, has announced it will be delaying the launch of its native token BLUR to February 14, 2021.
• The delay is a result of Blur wanting to launch something never been done before.
• Until the launch of the BLUR token, Blur will continue its incentivized airdrop program.

Blur, an NFT marketplace, has announced that it will be delaying the launch of its native BLUR token from January to February 14, 2021. This delay is a result of Blur wanting to launch something that has never been done before. The delay, however, will not affect the incentivized airdrop program, which will continue until the launch of the BLUR token.

The BLUR token will be a governance token, meaning that it will be used by holders to vote on the direction of the platform. The token will also be used to reward traders for their activities on the platform, such as buying and selling NFTs.

Blur has been running an incentivized airdrop program since November 2020. The program is designed to reward holders who hold their tokens for a certain amount of time. The program has seen over 11,000 airdrops since its launch, proving to be popular among traders.

The delay of the launch of the BLUR token could be seen as a positive thing, as it gives the team more time to make sure everything is perfect before they launch. The delay also gives them more time to spread awareness about the token and its potential use cases.

The team has also stated that they are looking into more ways to reward traders, such as through the use of staking rewards. This could be seen as a way to encourage holders to hold on to the tokens for longer, rather than trading them on the open markets.

Overall, the delay of the launch of the BLUR token could be seen as a positive thing, as it gives the team more time to make sure everything is perfect before they launch. The delay also gives them more time to spread awareness about the token and its potential use cases. With the launch of the BLUR token, traders will be able to benefit from staking rewards, which could further increase the value of the token.

Bulletpoints:
• Bitcoin (BTC) saw a dip in price after the news that annualized inflation slowed to 6.5% in December from 7.1% previously.
• The consumer price index (CPI) slipped 0.1% in December, roughly in line with expectations for a flat reading.
• Annualized core CPI was up 5.7%, also in line with forecasts and down from 6% in November.

The recent report of the US Consumer Price Index (CPI) has caused a slight dip in the price of Bitcoin (BTC). The CPI showed that inflation had slowed to 6.5% in December from 7.1% previously, in line with economist forecasts. This news caused a 0.1% slip in the consumer price index, with the core CPI – which strips out volatile items such as food and energy – being up 0.3% in December, in line with forecasts.

The slight dip in the CPI has caused a ripple effect in the crypto industry, with Bitcoin (BTC) seeing a dip in price of about $150. Despite this, the cryptocurrency still remains above $18,000. This shows the resilience of the digital asset, and its ability to remain stable despite the news of macroeconomic changes.

The news of the CPI has also caused an interesting discussion among cryptocurrency experts. Some have argued that the decrease in inflation is a positive sign for the crypto industry, as it means that there is less need for money printing which can negatively impact the value of digital assets. Meanwhile, some are of the opinion that this news could be a sign of deflation, which can be detrimental to the industry in the long-term.

Overall, it is clear that the news of the US CPI has had an impact on the crypto industry. Despite this, the digital asset is still performing well and showing its resilience. As more news is released in the coming weeks and months, it will be interesting to see how the industry reacts and what impact this has on the future of the crypto market.