Monat: Januar 2023

• Moody’s Corp., an integrated risk assessment firm, will start looking at how it can ascertain the risk and health of stablecoins.
• Moody’s scoring system will have an analysis of up to 20 stablecoins, which be based on the quality of attestations on their reserves.
• Moody’s stablecoin scoring project is still in an early phase, and the score would not be equivalent to an official credit rating.

Moody’s Corporation, an integrated risk assessment firm, is set to begin evaluating the risk and health of stablecoins. The company’s arm, Moody’s Investors Service, specializes in providing credit ratings for businesses across various industries, including publicly traded crypto companies.

The need to rate stablecoins comes amidst renewed pressure from governments and regulators around the world. To that end, Moody’s is looking to create a scoring system for stablecoins that will have an analysis of up to 20 stablecoins, based on the quality of attestations on their reserves. A source close to the company’s plans told Bloomberg News that this scoring system is still in its early stages, and that the score will not be equivalent to an official credit rating.

The two main types of stablecoins are algorithmic and collateral. Algorithmic stablecoins use a complex set of algorithms and smart contracts to maintain their value, while collateral stablecoins are backed by a reserve of fiat currency or other assets. Both types of stablecoins are designed to maintain a stable value, usually pegged to a fiat currency like the US dollar.

Moody’s stablecoin scoring system is a step forward in the world of cryptocurrency, as it provides an objective measure of the health of different stablecoins. The rating system also helps to increase trust and transparency in the industry, as well as provide insight into the potential risks associated with different stablecoins.

It remains to be seen how Moody’s scoring system will be received by the crypto community, but it is a promising development for the future of cryptocurrency. It is likely that other rating agencies will follow suit and create their own rating systems for stablecoins in the near future. Ultimately, the rating system will be beneficial for the industry as a whole, providing investors with the information they need to make informed decisions.

• Cameron Winklevoss, co-founder of Gemini, threatened to file a lawsuit against Digital Currency Group (DCG) and its CEO Barry Silbert if they failed to make a „fair offer“ to creditors.
• Winklevoss argued that Genesis‘ bankruptcy does not insulate Silbert or DCG, and that they owe creditors an explanation.
• This follows a public dispute between Winklevoss and Silbert over the $900 million owed by Genesis to Gemini Earn.

Cryptocurrency giant Digital Currency Group (DCG) and its CEO Barry Silbert have been put on notice by Gemini co-founder Cameron Winklevoss. Winklevoss recently threatened to file a lawsuit against the two if they failed to make a “fair offer” to creditors, such as the users of Gemini Earn.

In a Jan. 20 Twitter thread, Winklevoss stated that the bankrupting of Genesis was an essential step in recovering the assets of Earn users. He added that the bankruptcy will also subject the firm to judicial oversight and make it reveal “machinations that brought us to this point”.

However, Winklevoss argued that Genesis’ bankruptcy does not insulate Silbert or DCG from accountability. He wrote, “We also believe that — in addition to owing creditors all of their money back — Genesis, DCG, and Barry owes them an explanation. Bankruptcy court provides a much-needed forum for that to happen. Sunlight is the best disinfectant.”

The dispute between Winklevoss and Silbert stems from the $900 million owed by Genesis to Gemini Earn. Winklevoss has accused Silbert of employing “bad faith stall tactics”, and has called for him to be sacked. In response, Genesis CEO Michael Moro has said that they are committed to addressing the debt.

The public dispute has caused much debate in the cryptocurrency community. Gemini has been vocal in its support of the Earn users, and has called on DCG and Silbert to make good on their promises.

It remains to be seen how the situation will play out, but it is clear that Winklevoss is not afraid to take legal action if necessary. He has made it clear that he believes that Genesis, DCG and Silbert owe the Earn users not just their money, but also an explanation.

• 800 victims of the BitConnect Ponzi scheme will receive $17 million in restitution from the U.S. Department of Justice.
• The funds will be distributed to individuals from 40 countries.
• BitConnect was in operation from 2016 to 2018 and its associates have been charged and found guilty for various allegations.

BitConnect, a Ponzi scheme that operated from 2016 to 2018, has recently been ordered by the U.S. Department of Justice (DOJ) to deliver $17 million in restitution money to 800 victims located in 40 countries around the world.

BitConnect was widely recognized by both the public and legal proceedings as a Ponzi scheme. The project’s founder, Satish Kumbhani, was indicted in February of 2022, while lead U.S. promoter, Glenn Arcaro, pled guilty in September of 2021. Additionally, both were sued by the U.S. Securities and Exchange Commission in September 2021.

BitConnect’s associated crypto token, which held substantial value prior to the project’s shutdown, quickly collapsed after the project ceased operations. Various jurisdictions, including the U.K., Texas, and North Carolina, took action to restrict BitConnect’s operations at an early date, but due to its distributed structure and lack of central leadership, some aspects of the project continued even after its shutdown.

The DOJ seized $56 million of cryptocurrency with the intention of selling it and providing restitution to victims in November 2021. This $17 million restitution is part of the $56 million, and is the largest payout to victims of the Ponzi scheme to date.

The long wait for compensation for the victims of BitConnect is finally coming to an end. While the $17 million is a small fraction of the estimated $2.5 billion that BitConnect swindled from its investors, it is a significant step in the right direction for those affected.

• Bitcoin spiked to $16,795 in response to strong labor market data.
• The U.S. Bureau of Labor Statistics (BLS) released nonfarm payroll data showing 223,000 jobs were added in December 2022.
• This was higher-than-expected, as the forecast was to rise by 200,000 in the same month.

The news of a stronger-than-expected US labor market pushed Bitcoin to its peak levels of $16,795. This happened after the U.S. Bureau of Labor Statistics (BLS) released its nonfarm payroll data which showed that 223,000 jobs were added in December 2022. This was higher than the expected 200,000 jobs that were forecast for the same month.

The positive news of the labor market had an immediate effect on Bitcoin, with the leading cryptocurrency spiking to its peak level in response. This was a 0.7% swing to the upside, showcasing the strength of the crypto asset in the face of such positive economic news.

The labor market data was also a welcome sign that the US economy is recovering from the pandemic-induced slowdown. This was due to the increase in jobs in the hospitality sector, which has been particularly hard hit by COVID-19 restrictions. This can be seen in the fact that leisure and hospitality jobs were up by 355,000 in December.

The strong labor market data also had a positive effect on the stock market, with the S&P 500 index rising 0.4% in response. This is a sign that investors are confident in the US economic recovery and are willing to invest in riskier assets.

Overall, the positive economic news has been seen as a sign of hope for the global economy. With the US leading the way in terms of economic recovery, other countries are likely to follow suit in the near future. This could be a boon for the crypto market, as more investors become confident in the potential of digital assets.

• The total market cap of the crypto market decreased by 0.86% over the past 24 hours, with most of the top ten cryptocurrencies printing losses.
• Solana re-entered the top 10 digital assets despite a 1.91% decrease in the last 24 hours.
• The market cap of Tether (USDT) and BinanceUSD (BUSD) increased slightly to $66.25 billion and $16.68 billion, respectively.

The cryptocurrency market has seen a slight sell-off over the past 24 hours, as the total market cap decreased by 0.86%, standing currently at $812.66 billion. Bitcoin’s market cap decreased by 0.59% to $322.33 billion, while Ethereum’s market cap fell by 0.86% to $152.17 billion.

Of the top 10 cryptocurrencies, most experienced losses, with Dogecoin and Polygon posting the highest losses with 4.2% and 2.98%, respectively. Cardano and Polkadot, however, recorded slight gains of 1.42% and 0.31%, respectively.

Despite the tepid market performance, Solana re-entered the top 10 digital assets after a brief absence, despite falling 1.91% in the last 24 hours. The market cap of Tether (USDT) and BinanceUSD (BUSD) slightly increased to $66.25 billion and $16.68 billion, respectively. USD Coin (USDC) market cap decreased to $43.8 billion.

Bitcoin fell 0.57% to trade at $16,738 as of 07:00 ET, with its market dominance slightly increasing to 39.7% from 39.6%. BTC mostly traded sideways during the last 24 hours but began to experience a slight sell-off during the early trading hours of Jan. 6. The asset peaked at $16,876 before beginning its descent.

Overall, the crypto market experienced a slight sell-off over the past 24 hours, with most of the top 10 cryptocurrencies printing losses. Despite this, Solana re-entered the top 10 digital assets and the market cap of Tether (USDT) and BinanceUSD (BUSD) increased slightly. Bitcoin’s market cap decreased by 0.59% to $322.33 billion, while its market dominance slightly increased to 39.7% from 39.6%.