One stablecoin reports record profits, but could threaten the cryptocurrency sector. Bitcoin ETFs Can Now Advertise on Google, and How Much Money Can Pump and Dump Schemes Really Make? This week we bring you these stories and more in cryptocurrency.
Tether threatens cryptocurrencies
With a circulation of nearly $100 billion, Tether’s stablecoin USDT achieved record revenue of $6.2 billion in 2023. Its success has been overshadowed by growing concerns from traditional financial players, as JPMorgan analysts have criticized Tether as risky for the cryptocurrency sector. Market power, lack of regulatory compliance and transparency.
Google’s Cryptocurrency Readiness
Google has updated its advertising policies to allow ads featuring certain cryptocurrency financial products. The goal of this update is to clarify the guidelines for advertising “cryptocurrency coin trusts” so that third parties can promote U.S.-targeted financial products that comply with local laws. Companies like Vaneck and Blackrock are already taking advantage of this change by advertising on Google.
Ripple co-founder’s wallet was hacked
Hackers stole $112 million in XRP from the personal wallet of Ripple co-founder Chris Larsen. Larson quickly detected and reported the unauthorized access, but the stolen funds had already been laundered through various platforms. However, on-chain data makes the actual ownership of the hacked wallets unclear, raising questions about a possible link to Ripple.
Former policymaker joins Coinbase
George Osborne, a former government official and former UK Chancellor of the Exchequer, has joined Coinbase as a global advisor. Coinbase’s advisory board already includes a former U.S. secretary of defense and a former senator, highlighting the growing influence of former policymakers in the cryptocurrency industry.
Record Bitcoin Seizures
German authorities seized €2 billion worth of Bitcoin in 2013 while investigating two men for alleged involvement in a piracy website, with the suspects reportedly purchasing Bitcoin with earnings from the portal. Meanwhile, in the UK, London police seized more than 1.4 billion British pounds of Bitcoin during the trial of a woman accused of laundering money for a former employer involved in a Chinese investment scam.
FTX gives up on relaunch attempt
FTX abandoned its relaunch plans and opted for liquidation to repay customers after potential buyers were reluctant to invest in rebuilding. FTX’s current focus is on liquidating $7 billion worth of assets to repay claims. Meanwhile, Celsius Network successfully emerged from bankruptcy after an 18-month process. With a $3 billion dividend, a new publicly listed company, Ionic Digital, will be formed and owned by Chelsea creditors.
U.S. Bitcoin Mining Operations Surge
Bitcoin mining operations in the United States currently consume as much electricity as the entire state of Utah. The U.S. Energy Report estimates that mines accounted for the annual consumption of more than 3 million to 6 million homes last year. In the United States, mining activity has surged, with facilities concentrated in states such as Texas, Georgia, and New York.
Are cryptocurrency pump and dumps worth it?
Chainalytic report highlights the high failure rate of illegal pump-and-dump schemes in the Ethereum DEX ecosystem. Of the more than 370,000 tokens introduced to Ethereum last year, 54% met criteria indicating potential market manipulation. Malicious actors gained $240 million through these schemes, but the average profit per token was only $2,600, accounting for 1% of annual Ethereum DEX trading volume.
This is what happened in the cryptocurrency market this week. I will see you next week.