Brutal Crypto Market Consolidation (MORE Exchanges Taking Punches) KuCoin CEO dismisses rumors of insolvency. Nexo swoops in as Vauld begins to crumble. And the UK takes a refreshing approach to crypto regulation. This is your nightly crypto news wrap-up. Let’s get it!
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After Sam Bankman-Fried told Forbes that some third-tier exchanges were secretly insolvent, late last week, rumors circulated the internet that KuCoin was a prime suspect and that they were about to start halting withdrawals. These FUD rumors also urged KuCoin users to withdraw their money off of the platform immediately. It’s not the best look that KuCoin’s native token KCS has fallen from around $18 to just above $8 since the start of the month. But in defense of these rumors, KuCoin’s CEO Johnny Lyu has been very active on Twitter defending his project and proving that the FUD is nothing more than FUD. He stated that KuCoin has zero exposure to LUNA or Three Arrows Capital. He says KuCoin is running at full capacity. There’s no plan to halt withdrawals. Lyu also pointed out that KuCoin is still hiring, fundraising and using the bear market as an opportunity to build the platform. We’ve got that in common. The rumor that concerned people the most was the claim that KuCoin only had 300 Bitcoin in their wallet. That was also put to rest yesterday when Ton Cong Huy tweeted a Glassnode chart that proves there’s over 16,000 Bitcoin in their wallet.
This bear market is the time when we find out who will sink or swim. But to make fake accusations against a platform without your facts figured, well, it’s just not only disingenuous. It can be slander. Lyu didn’t hesitate to say that KuCoin reserves the right to take legal action against those who spread unverified information. Considering what one bad rumor can do to a company in times like this, they probably should. Let’s pass it over to Frankie Candles for a market watch. Thanks, Ben! Welcome back! Alright, guys. Let’s jump in and do a little market watch here. We’ve got Bitcoin coming in at $20,176. Ethereum coming in at $1,133 Let’s take a look at our top gainers. We’ve got CVX up 30% on the day. We’ve got Curve DAO Token up 11% on the day. Basic Attention Token up 8% eCash up 5% MATIC up 4% And Enjin up 3% Guys, be careful out there. Now, on the weekly, we are getting some really bullish signals. But as you guys know, a lot of these bullish signals have not really been playing out with much gusto. Right now, it looks like, in the short term, we could get a little bit of a further move down.
If you like these wrap-up videos, make sure to go ahead and smash that like button. And do us a favor. Share this video with your family and friends. It’ll help them out. Considering crypto’s market cap has lost almost $1.3 trillion since the start of 2022, it makes complete sense that a handful of projects and platforms are going to drop like flies. The latest of the bunch that’s facing challenges is the lending borrowing exchange Vauld. As a result of them seeing almost $198 million in withdrawals since June 12th, to stop the bleeding, Vauld made the tough decision to suspend all withdrawals, trading and deposits on the platform. As a result of Vauld’s insolvency, Nexo has stepped up to the plate and disclosed their plans to acquire 100% of Vauld and reorganize its future operations. Right now, the two companies are in a non-binding contract known as an indicative term sheet which grants Nexo a 60-day exploratory period to figure out the terms and conditions of the potential acquisition. At the end of the 60 days, they will decide if they want to go through with the buy or drop it all together.
It could depend on Bitcoin’s price. Hopefully, Nexo can stop the Vauld ship from sinking since they claim they’re one of the few crypto companies left that are in a position to help distressed businesses. In America, for some reason unbeknownst to me, the powers that be want to regulate crypto assets under the same pre-existing umbrellas used to regulate normal securities and commodities. Dirty Gary Gensler even proposed to put all crypto under one rule book regardless of the distinction. It’s a growing opportunity that’s primed to be the future of finance, so it needs its own regulating body, right?
Well, it’s safe to say that the UK is handling this issue much better than the US since they are growing a new regulating body specifically for digital assets. Something I’ve said we need for years. The FCA, the UK’s Financial Conduct Authority, has recently appointed Matthew Long to Director of Payments and Digital Assets, a new unit designated to regulating crypto. Long has spent plenty of time chasing those who commit crimes as well as economic crimes since he’s a former police officer as well as the director of the National Economic Crime Command.
It’s already common knowledge that the UK fully intends to become a crypto powerhouse, but it’s still unclear on whether or not they will pursue their own CBDC. Instead of pushing harsh overregulation, they’re actually seeking the public’s opinion on how to tax DeFi instead of finding ways to eliminate an ecosystem they can’t control. This level-headed approach to embracing crypto as an opportunity instead of stifling progression is a page the US should take from our friends on the other side of the Atlantic. See you on the pitch.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/NolVEQSdPcU