Hope you had a great weekend, folks. In today’s newsletter, the SEC warned FTX not to pay off creditors with stablecoins, OKX hired a former MAS executive as its CEO in Singapore, and global crypto investment products saw net weekly outflows of over $300 million.
Let’s get started.
SEC Warns FTX About Stablecoin Redemption
The SEC warned in a recent filing that it may oppose any attempt by FTX to repay creditors with stablecoins or other digital assets.
- While some creditors have demanded a cash distribution with repayment in cryptocurrency instead of cash, FTX’s current plan is to repay creditors in cash or USD-denominated stablecoins.
- The SEC said it has the right to challenge the legality of FTX repaying claims or generating income from “cryptocurrency asset securities” it holds.
- The SEC filing also noted that the plan did not specifically address who would distribute the stablecoins if the redemption method is approved.
- The regulator also joined the U.S. bankruptcy trustee overseeing the bankruptcy in opposing a provision in the plan that would have shielded FTX debtors from future legal action by creditors.
- Administrative costs due to FTX’s bankruptcy have skyrocketed since the cryptocurrency exchange collapsed in November 2022, with fees topping $800 million.
OKX Gets Fully Licensed in Singapore, Hires Former MAS Employee as Local CEO
OKX SG, the Singapore subsidiary of OKX, has been formally granted a Key Payment Institution License by the Monetary Authority of Singapore.
- OKX has appointed Gracie Lin, a former MAS executive who also held roles at state-owned wealth fund GIC and ride-hailing giant Grab, as CEO of its Singapore operations.
- The new license will allow OKX SG to offer digital payment tokens and cross-border funds transfer services to Singapore investors, including spot cryptocurrency trading.
- OKX considers Singapore a “priority market” for its cryptocurrency trading platform, which processed more than $67 billion in trading volume globally last month.
Global Cryptocurrency Investment Products Record Weekly Net Outflows of $305 Million
According to CoinShares, global cryptocurrency investment products saw net inflows of $543 million the previous week, followed by net outflows of $305 million last week.
- The outflows came amid “widespread negative sentiment across suppliers and geographies,” research director James Butterfill wrote.
- Butterfield added that this was due to stronger-than-expected U.S. economic data, which “reduced the likelihood of a 50 basis point rate cut.”
- Bitcoin led the way, with funds based on the most popular cryptocurrency experiencing a net outflow of $319 million, while short-term Bitcoin funds recorded net inflows of $4.4 million for the second week in a row.
- Ethereum investment products also saw a net outflow of $5.7 million, while Solana-based funds and blockchain stocks saw net inflows of $7.6 million and $11 million, respectively.
August DeFi Protocol Fees and Bitcoin Miner Revenues Decrease Amid Increase in Crypto Exchange Trading Volumes
According to The Block’s data dashboard, DeFi protocol fees fell 24.4% in August to $288 million, the lowest level since February.
- Lido took the lead with $76.2 million in fees generated, followed by Uniswap, Zito, and PancakeSwap.
- Bitcoin miner revenue also declined in August, falling 10.5% to $851.4 million, down from an all-time high of over $2 billion in March.
- Meanwhile, centralized cryptocurrency exchange volumes rose 6.6% last month to $1.2 trillion, extending a growth trend that began in July after hitting a multi-month low in June.
- Binance had the largest market share in August, recording a trading volume of $448.5 billion.
As Trump gains support, Harris’s odds of winning the election drop to 47% in Polymarket
According to decentralized prediction platform Polymarket, Kamala Harris’s odds of winning the November election have dropped to 47%.
- Donald Trump’s odds of winning still remain at around 50 percent, and he’s ahead of Harris. As of early August, the two candidates were tied at 50-50, with the vice president leading Harris.
- The US presidential election is the largest prediction market on the platform, with trading volume exceeding $778 million.
within the next 24 hours
- The economic calendar is quiet.
- Korea Blockchain Week continues in Seoul.
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