Crypto News Headlines (11-Jul-2022)

More than 48 projects previously on the Terra network have begun migrating to Polygon almost two months after the Terra ecosystem collapsed following the implosion of terraUSD (UST).

“Terra projects have begun migration,” Polygon Studios CEO Ryan Wyatt said in a tweet early Monday. “Over 48 projects and counting… including OnePlanet_NFT, an exclusive 0xPolygon marketplace, and DerbyStars_HQ.”

In May, Polygon Studios announced a multimillion-dollar fund to assist Terra projects looking to switch. It was ready to pay as much as “$20 million, roughly” to help Terra teams migrate to its own blockchain to continue building products.

“For any project which wants to come from Terra to Polygon, we will be happy to provide them both financial assistance as well as technical assistance,” a spokesperson for the Polygon ecosystem told CoinDesk at the time. “We’ll provide them developers and everything.”

Developers behind other blockchain networks also courted Terra projects, among them Kadena, Cosmos and Avalanche, as previously reported.

UST, the Terra ecosystem’s algorithmic stablecoin that was designed to maintain its value by minting or burning exactly $1 worth of luna for 1 UST, fell to under 10 cents in May after losing its peg following investor outflows.

Excessive minting of luna to try and bring UST back to its peg caused prices of the governance token to fall by as much as 99.7%, while Terra-based DeFi applications saw over $28 billion in outflows.

Bitcoin skeptic and gold bug Peter Schiff is still trying to sell his bank, Euro Pacific. However, the Commissioner of Financial Institutions of Puerto Rico, also known as Oficina del Comisionado de Instituciones Financieras (OCIF), has suspended the operations of his bank due to its “crass noncompliance with the minimum capital requirements.”

Schiff claims that he already has a buyer for the bank lined up but the regulator will not let him sell it.

On Friday, he was asked on Twitter whether he is willing to sell his bank for bitcoin. Schiff, who has been a vocal bitcoin skeptic, replied: “Actually yes, I would sell the bank for anything if regulators let me sell it.”

“I am committed to working with the Puerto Rico banking Commissioner to resolve the capital issues with my bank for the best interest of all the bank’s customers,” he stressed.

Schiff has been tweeting about his bank’s situation constantly since it was suspended by the Puerto Rican regulator.

He has maintained that there is no evidence of crime at the bank, noting that if the Commissioner would just approve the sale, customers can withdraw all their money now.

Alongside heavyweights in Bitcoin and Ethereum, popular metaverse tokens have taken a beating in the past 24 hours.

Enjin Coin (ENJ)—the native token of the Enjin platform earned through in-game achievements and used to buy virtual goods— is the worst hit among the metaverse projects posting a loss of 7.33% over the day.

ENJ is still up 2.5% over the past week though, currently trading at $0.50, according to CoinMarketCap.

ApeCoin (APE)—the governance token within the Bored Ape Yacht Club (BAYC) ecosystem—fell 6.4% in the last day, and is currently changing hands at $4.59, per CoinMarketCap.

Launched in March this year, APE can be used to purchase plots of virtual land in Yuga Labs Otherside metaverse initiative. Founded in 2021, Yuga Labs is the entity behind the creation of the mega-popular NFT project Bored Ape Yacht Club.

As Bitcoin (BTC) has managed to maintain support above the $20,000 level and climb as high as $22,000, the feeling of doom and gloom around the asset slowly dissipates for some investors.

However, others, such as those investors on Wall Street, predict that Bitcoin will depreciate significantly in the near future, believing that the token is more likely to hit $10,000, which would reduce its worth by almost half, than that it will climb back to $30,000, as per 60% of the 950 investors who responded to the latest MLIV Pulse survey Bloomberg reported on July 11.The overly pessimistic outlook of investors is shown by the uneven forecast. Troubled lenders, collapsing currencies, and an end to the cheap money policies of the past that fostered a speculative frenzy in financial markets have all had a negative impact on the cryptocurrency sector, which has been rocked as a result.

Bitcoin and Ethereum kicked off Monday in a negative posture, but momentum may be building for a significant rebound.

The flagship cryptocurrency has retraced nearly 10% after getting rejected by its 200-hour moving average on the four-hour chart. It went from trading at a high of $22,490 on Jul. 8 to touching a low of $20,350 early Monday morning. Bitcoin’s 100-hour moving average is now acting as stable support, which could prevent it from dipping further.

The formation of a buy signal per the Tom DeMark (TD) Sequential indicator supports this optimistic outlook. The bullish formation developed as a red nine candlestick, which is indicative of a one to four candlestick upswing. If Bitcoin can hold above $20,450, it could gain the strength to rebound toward $20,900 or even $21,500.Likewise, Ethereum also appears to be trading in oversold territory after experiencing an 11% correction in the same period. The second-largest cryptocurrency by market capitalization has seen its price drop from $1,275 to $1,135 within the last three days. However, like Bitcoin, there are some signs suggesting that a rebound is underway.

Beleaguered crypto lender Celsius deposited $500 million in wrapped bitcoin (WBTC), a bitcoin Asset management firms continue to fight for a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States as regulators remain skeptical of the idea.

Craig Salm, chief legal officer at asset manager Grayscale, discussed the firm’s lawsuit with the United States Securities and Exchanges Commission (SEC) regarding the conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. 

Salm explained the basis for Grayscale’s argument against the SEC while answering the most-asked questions regarding the lawsuit. According to the legal officer, the SEC’s denial of the spot Bitcoin ETF separates futures and spot trading for Bitcoin ETFs and draws a distinction between the two.

However, Grayscale argues that the differences have no correlation with Bitcoin ETF approvals, as both futures and spot Bitcoin ETF prices are based on the same spot Bitcoin markets. 

Thus, the Grayscale legal team believes that the disapproval of spot Bitcoin ETFs amid the approval of Bitcoin futures ETFs can be considered “unfair discrimination.” Salm claimed that this violates several laws including the Adm

Netherlands-based ING Bank has spun off Pyctor, its cryptocurrency custody and post-trade infrastructure platform, which becomes a service offering within GMEX, a trading technology platform specializing in digital assets.

GMEX CEO Hirander Misra was appointed chairman of Pyctor, which will continue to work with the bank and collaborate with ING’s digital assets team, according to a press release. The financial terms of the arrangement were kept private.

Most banks showed a clear preference for “the blockchain” rather than cryptocurrency, and followed one another in various pilot schemes and private consortia and so on. Meanwhile, ING distinguished itself by exploring advanced cryptography, such as zero-knowledge proofs.

Exchanges are embracing crypto as a useful tool to transfer value across borders. Bitso, a Mexican-based exchange with operations in several countries in Latam, has announced the launch of a remittance service in Colombia this week. With these new services, Colombian users will be able to send and receive remittances using digital dollars on the platform of the exchange.

The service will be focused on remittances sent from and to the U.S., and according to the exchange, it’s one of the destinations where remittances sent experienced significant growth during the last year. While the company did not specify in which way this service will be offered, it is similar to Bitso’s Shift initiative, which uses Circle’s usd coin (USDC) as a vehicle to transfer value in Mexico.

The Shift initiative has achieved considerable success in Mexico, reaching a volume of one billion processed in remittances this year only. This represents an increase of 400% over what the company processed last year.

Less than a month after it paused withdrawals for customers, crypto lender Celsius has put new lawyers at the helm of its restructuring process, according to the Wall Street Journal.

Citing “people familiar with the matter,” the WSJ reported that Celsius hired lawyers from Kirkland & Ellis LLP, replacing ones from Akin Gump Strauss Hauer & Feld LLP hired last month in the wake of Celsius halting operations.

In June, the New Jersey-based firm seized up under liquidity pressures, locking 1.7 million users out of their accounts, according to the company’s website. Leading up to the pause, Celsius offered customers high-yield loans of up to 18% on deposits and maintains its users “will continue to accrue rewards” during Celsius’s downtime.

Decentralized finance (DeFi) giant Aave has unveiled plans to launch an overcollateralized stablecoin The European Central Bank (ECB) has released a report analyzing the growth of the cryptocurrency market over the past decade and the risks it poses to the existing financial system.

A section of the report dedicated to stablecoins discussed the central role that it plays in the current ecosystem. Stablecoins are increasingly used to interlink various blockchain networks and play a critical role in offering liquidity to the decentralized finance (DeFi) ecosystem.

The report further analyzed whether these stablecoins could find a place in the traditional financial system, but concluded that a lack of regulatory oversight added to the recent downfall of algorithmic stablecoins ecosystems such as Terra indicates the contagion effects such stablecoins could have on the financial system. An excerpt from the report read:

“The largest stablecoins serve a critical function for crypto-asset markets’ liquidity, this could have wide-ranging implications for crypto-asset markets if there is a run-on or failure of one of the largest stablecoins.”