Jack Dorsey Faces Fierce Backlash After Calling Ether A Security

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June 7, 2023

Is Ether (ETH) A Security? CFTC Commissioner Brian Quintenz Gives Definitive Answer

Block co-founder and CEO Jack Dorsey — also co-founder and former CEO of Twitter — has caused outrage in the Ethereum community after claiming that the network’s native token, ether (ETH), is a security.

Ether A Security?

Noted Bitcoin enthusiast and investor Jack Dorsey got into an online scuffle with multiple industry experts and prominent figures on Tuesday after designating ether as a security.

Amid the U.S. Securities and Exchange Commission’s lawsuit against Coinbase, Pierre Rochard, vice president of research at Riot Platforms, suggested that the San Francisco-based exchange should refocus its attention on Bitcoin. Rochard was referencing a 2015 post by Coinbase CEO Brian Armstrong, where he referred to altcoins as a “distraction” and implied that the company should instead “be focused” on Bitcoin.

Jack Dorsey voiced support for prioritizing the OG cryptocurrency amid regulatory pressures. The Twitter founder added that there are only three truly censorship-resistant technologies at scale today: tor, bitcoin, and nostr. While these technologies are presently not accessible to most people or even easy to use, Dorsey is convinced that they will be someday.

As you are well aware, Dorsey is a long-time Bitcoin supporter, who has expressed his strong belief in its potential to become a global currency. Back in 2014, Dorsey predicted that Bitcoin could become the “native currency of the internet.” He has continued to endorse the flagship cryptocurrency and its underlying blockchain technology through his different ventures, including Block’s Cash App, a mobile payment service that lets users buy and sell BTC.

Asked by one Twitter user whether ethereum, the second-largest crypto by market cap, is a security, Dorsey simply replied: “Yes.”

Crypto Twitter Reacts

Dorsey’s remark prompted brutal backlash from crypto pundits, including ordinals proponent and independent developer at Taproot Wizards Udi Wertheimer, who indicated Dorsey was a “clown” in a Tuesday tweet.

Dorsey replied saying, “ETH is not a security? Teach me wizard,” to which Wertheimer shared a viral 2018 video where SEC chair Gary Gensler acknowledged that ether was not a security as it had attained sufficient decentralization.

The Twitter war comes in light of the SEC launching high-profile lawsuits against Coinbase and Binance for allegedly offering a slew of tokens like Cardano, Solana, Polygon, Dash, Filecoin, and others, which the agency considers to be unregistered securities.

Nonetheless, the Digital Asset director at VanEcK, Gabor Gurbacs, appeared to agree with Dorsey on Ether’s security designation. Gurbacs argued that Ethereum’s switch last year from a proof-of-work system to a proof-of-stake system for operating its network brought it closer in alignment with the SEC’s definition of a security.

An ether-as-a-security world would have serious consequences for the broader crypto industry. It is not, however, a foregone conclusion that the SEC will soon categorize ETH as a security.

Binance.US Says Customer Funds Are Safe As SEC Requests Restraining Order To Freeze Assets

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Brenda Ngari

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June 7, 2023

Binance.US Says Customer Funds Are Safe As SEC Requests Restraining Order To Freeze Assets

A day after slapping Binance with a lawsuit, the U.S. Securities and Exchange Commission is now taking swift action to freeze assets tied to the American arm of the global exchange “on an expedited basis”.

However, Binance.US has clarified that it remains “fully operational” and that all customer funds are safe.

SEC File Motion To Freeze Crypto Held By Binance.US

The SEC has requested a judge to freeze Binance.US assets in a temporary restraining order filed on Tuesday.

The freeze would impact two holding and operating firms associated with Binance.US operations: BAM Management US Holdings and BAM Trading Services. According to the SEC, Binance portrayed these two firms as independent, but they were secretly controlled by the parent company and its CEO, Changpeng “CZ” Zhao.

The SEC seeks to freeze assets due to allegations claiming Zhao and other executives redirected customer funds to personal investment funds, which were used to purchase BUSD and an $11 million yacht for the Binance boss.

The court filing made in the D.C. District Court seeks the repatriation of assets — both fiat and crypto — belonging to Binance.US customers, a process that would entail the moving of assets back to the United States within 10 days.

The SEC believes the temporary restraining order is necessary “on an expedited basis to ensure the safety of customer assets and prevent the dissipation of available assets for any judgment, given the Defendants’ years of violative conduct, disregard of the laws of the United States, evasion of regulatory oversight, and open questions about various financial transfers and the custody and control of Customer Assets — including by Defendants who claim they are not subject to the Court’s jurisdiction — as described in the Complaint, Memorandum of Law, and supporting materials.”

If SEC’s request is granted, the two holding firms and CZ would be required to “show cause” as to why a preliminary injunction should not be allowed, as per the court filing. It would also forbid defendants named in the SEC’s complaint from destroying, changing, or hiding any records that are relevant.

Moreover, the motion seeks expedited discovery in the suit and alternative means of service. This means the SEC would not need to serve papers in person like is typically required.

The emergency order follows the SEC’s legal action against Binance and Zhao lodged on Monday. The regulator hit the world’s largest crypto exchange by trading volume with 13 charges, accusing it of buying, selling, and trading unregistered securities, commingling customers’ funds, among other claims.

Earlier Tuesday, the SEC filed a similar lawsuit against rival crypto exchange Coinbase, alleging that it had failed to respect U.S. federal securities laws. The actions against two of the industry’s most preeminent firms appear to be part of a government crackdown on the fast-growing crypto sector.

Binance.US Hits Back At SEC Emergency Order

Binance.US has called the SEC’s asset-freeze motion “unwarranted”. The exchange argued on Twitter that it was filed as part of a plot to gain an advantage in litigation and not genuine concern about the safety of users’ funds.

“While we are disappointed by this action, we look forward to defending ourselves in court,” the company posited.

Binance.US also noted that “user assets remain safe and secure” and added the platform “continues to be fully operational with deposits and withdrawals functioning as normal.”

Early-Bird Registration For CoinMarketCap’s Flagship Web3 Conference “Catalyst” Now Open

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PR DESK

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June 6, 2023

Early-Bird Registration For CoinMarketCap's Flagship Web3 Conference

Early-bird registration for “Catalyst,” the premier Web3 conference of CoinMarketCap, is now open. On February 21–22, 2024, the conference will be held at the (Lisbon Congress Centre, Portugal). The world’s top brains in technology, art, philosophy, and finance will come together at Catalyst to reimagine the future of Web3.

The Conference, which was initially planned to take place in October 2023, has been moved to February 2024. The event planners carefully considered their options before making this choice. With its altered schedule, CoinMarketCap’s Catalyst conference will be more valuable to attendees, speakers, and the industry at large, given the already crowded European conference calendar in Q4 2023.

Tickets for this intimate event are scarce and will be distributed on a first-come, first-served basis via the Catalyst website. Fiat can be used to pay for the tickets.

Lisbon is ideal for this historical event, with the European crypto sector flourishing there. The Catalyst conference will offer a forum for creative debates and partnerships that will influence the direction of the sector. Professionals and fans alike should take advantage of this chance to network, share ideas, and push for the next significant development in the cryptocurrency industry.

Rush Luton, CEO of CoinMarketCap, said that Catalyst would bring together experts “to collaborate and learn about upcoming trends, challenges, and opportunities.” In alignment with the conference’s title, Luton stated, “Catalyst is designed to spark new ideas and initiatives.”

Participants in the conference can anticipate a high-caliber event, including some of the most well-known names in the cryptocurrency and blockchain industries. On the Catalyst website’s official store, tickets are offered. On the newsletter and social media channels of CoinMarketCap, attendees may keep up with upcoming announcements.

OKX and Komainu Collaborate to Enable Secure Trading of Segregated Assets Under Custody for Institutions

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PR DESK

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June 6, 2023

OKX and Komainu Collaborate to Enable Secure Trading of Segregated Assets Under Custody for Institutions

OKX, the world’s second-largest cryptocurrency exchange, has joined forces with Komainu, a regulated digital asset custody service provider, to leverage the capabilities of Komainu Connect. This collateral management platform revolutionizes the industry by enabling institutional customers to engage in secure round-the-clock trading of segregated assets under custody through the OKX platform.

This collaboration between OKX and Komainu enhances the safety and security of institutional customers’ assets and introduces an off-exchange settlement and tripartite mirroring solution. This pioneering solution provides large-scale institutional crypto traders immediate access to OKX’s market-leading portfolio margin account mode and liquid markets. Established in 2018, Komainu has gained a reputation for reliable, secure and compliant custody services for institutions looking to invest in digital assets, serving a distinguished clientele, including exchanges, financial institutions, asset managers, corporations, and government agencies.

Komainu Connect Facilitates Secured Trading Solutions for Institutions

Komainu Connect, on the other hand, was launched in April 2023; it aims to mitigate client counterparty risk by eliminating the necessity of storing collateral with trading counterparts. Instead, it offers the option to keep assets in custody securely. Nicolas Bertrand, CEO of Komainu, expressed enthusiasm about this strategic alliance, considering it a significant milestone in their mission to deliver secure and compliant digital asset custody solutions. By combining the industry reputation of OKX as a leading cryptocurrency exchange with Komainu’s expertise in institutional-grade custody services, they strive to usher in an era of trust and innovation.

Sebastian Widmann, Head of Strategy at Komainu, emphasized the rapid emergence of Komainu Connect as the leading collateral management solution. The partnership with one of the world’s largest crypto exchanges validates the platform’s infrastructure and expertise, focusing on seamless execution for all parties involved.

Renowned for its commitment to transparency and security, OKX, a world-leading technology company and crypto trading platform, offers a suite of self-custody solutions. The Web3-compatible OKX Wallet empowers users with greater control over their assets while expanding access to decentralized exchanges (DEXs), NFT marketplaces, decentralized finance (DeFi) platforms, GameFi projects, and thousands of decentralized applications (dApps).

Lennix Lai, Global Chief Commercial Officer at OKX, underscored the importance of institutional investors having peace of mind, knowing their assets are secure with a trusted custodian while retaining the ability to capitalize on investment opportunities. Lai expressed delight in partnering with Komainu, as it enables investors to keep their assets secure without compromising potential returns.

The collaboration between OKX and Komainu exemplifies the integration of traditional financial services with cutting-edge security standards. Together, they shape the next generation of institutional custody solutions, ensuring the safety and growth of digital assets for their institutional clientele.

PEPE Leads Crypto Redzone As Market Plunges Amid SEC Lawsuit Against Binance

By

Aliyu Pokima

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June 6, 2023

PEPE Whale Takes $540,000 Paper Loss in Two Days as Token Plunges Over 30%

The digital asset market plummeted 3.6% in the last 24 hours in reaction to the SEC’s legal action against Binance.
The Commission is alleging a lack of care on the part of Binance by operating an unregistered exchange, commingling, and putting user assets at risk.
Binance has denied all allegations so far adding that they will “vigorously defend” the integrity of its platform.

Binance comes under the regulatory scrutiny of the Security and Exchange Commission (SEC) once more, with the Commission filing a lawsuit that has sent the market tumbling.

Following the lawsuit filed by the SEC against Binance on June 5, the cryptocurrency market has felt the heat across asset prices, investor sentiments, and other ripple effects of the Commission’s hammer. Both top assets and meme coins have been trading at lows wiping billions off the market cap.

Market leader Bitcoin (BTC) lost 4.2% in the aftermath of the lawsuit, trading below $26,000 for the first time since March. BTC trades at $27,068 at press time, with bearish traders betting on a $24k BTC price. Ethereum (ETH), on the other hand, declined by 3.1% in the same period and trades at $1,884.

Other altcoins recorded a much more significant drop culminating in a 3.6% market cap slip in 24 hours per CoinGecko. Elon Musk-backed Dogecoin DOGE plunged 7%, wiping away little gains picked up last week. Leading the pack was PEPE as it continued its free fall, losing 14.9%.

Other assets hit by the development include The Sandbox (SAND), Terra Luna Classic (LUNC), Axie Infinity (AXS), etc. The crypto fear and greed index also points to significant downward market sentiment not recorded since USD Circle lost its dollar peg in March. The radar is in the “fear zone” at 44 down from last week’s “neutral 51.”

**Binance to “vigorously defend”**

The SEC filed a total of 13 charges against Binance, ranging from illegally operating an exchange, commingling user assets, and conducting the sale of unregistered securities. In a press release issued on Monday, the Commission added that-

“We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk all in an effort to maximize their own profits.”

Meanwhile, Binance has distanced itself from all allegations noting that the exchange has been compliant with regulations and will defend its reputation “vigorously.”

“Any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong. We will vigorously defend against any allegations to the contrary.”

The digital asset community has expressed dissatisfaction with the conduct of the SEC and other regulatory bodies recently. In recent months, Binance has been under intense regulatory pressure from the SEC and the Commodity Futures Trading Commission.

Cardano Community Mount Offensive Against the U.S. SEC For Naming ADA a Security

By

Newton Gitonga

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June 6, 2023

Cardano Now ‘Better Than Ever,’ Declares Ecosystem Dev Who Warned Of Catastrophic Testnet Issues

Cardano (ADA) and the broader cryptocurrency market faced a significant setback as the U.S. Securities and Exchange Commission (SEC) targeted Binance and its CEO, Changpeng Zhao, with a lawsuit. The regulatory action contributed to a market-wide price decline, impacting several crypto assets, including Cardano, which dropped over 5% hours after the announcement.

The SEC filed a complaint in the District of Columbia, alleging that Binance has been offering “unregistered securities” since its inception. In the complaint, the SEC specifically mentioned several cryptocurrencies that are claimed to fall into this category, including Cardano (ADA), Solana (SOL), Polygon (MATIC), Algorand (ALGO), Filecoin (FIL), and others.

In its filing, the SEC provided an overview of Cardano’s background, expressing concerns about its level of decentralization. In support of its argument, the SEC contended that the Cardano Foundation handles legal custody and brand ownership; IOHK, an engineering firm led by Charles Hoskinson and responsible for blockchain design and maintenance; and Emurgo possessed a substantial portion of ADA’s overall supply.

“These three entities collectively received 5.2 billion ADA following the initial mining of ADA or approximately 16.7% of the initial token supply of 31.1 billion ADA,” read the complaint.

The regulator asserted that these companies sold the token to finance different aspects of their projects, such as development, marketing, and business operations.

In response to the SEC’s classification, members of the Cardano community took to Twitter to voice their support and counter the allegations. Dr Shweta, a proponent of Ripple, emphasized that ADA cannot be considered a security citing the Howey Test, which states that cryptocurrencies meeting certain criteria can be classified as securities.

According to his analysis, Cardano does not meet those criteria, as it was not offered to U.S. investors during its initial coin offering (ICO). He thus argued that it is not a security token, stablecoin, or decentralized finance (DeFi) token.

Another Cardano adherent, Chris O, criticized the SEC’s argument, stating that the complaint overlooked crucial facts. Chris O pointed out that the ADA ICO occurred in Japan and was not accessible to U.S. investors. Moreover, he highlighted the omission of the thousands of stake pool operators who actively participate in running the Cardano protocol. The pundit also expressed confidence in Cardano’s decentralization, emphasizing that it would be the ultimate shield against such claims.

That said, as the legal battle between the SEC and Binance unfolds, Cardano proponents remain determined to defend their platform’s reputation and decentralized nature. It thus remains to be seen how this offensive against the SEC’s classification will shape the future of Cardano and its standing within the crypto market.

At press time on Tuesday, ADA was trading at $0.356, up 1.3% in the past 24 hours. Other cryptos had also recovered from what most players call FUD by the SEC, with Bitcoin and Ethereum up over 3% over the same duration.

Top 10 Ethereum Whales Grab $4 Billion Worth Of Coins, Setting a New Record High

By

Newton Gitonga

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June 6, 2023

Top 10 Ethereum Whales Grab $4 Billion Worth Of Coins, Setting a New Record High

Despite a sluggish beginning to the month, Ethereum is poised to gain bullish momentum, with key fundamental indicators signalling a potentially positive trajectory ahead.

On Monday, June 5th, onchain analytics firm Santiment shared an interesting observation regarding Ethereum’s distribution of wealth. In a tweet, the firm reported that a significant amount of Ethereum has been moving into self-custody and decentralized finance (DeFi) options, consolidating these coins within the largest whale addresses on the Ethereum network.

“As more and more Ethereum has been moving into self custody & DeFi options, many of these coins have been absorbed by the largest whale addresses on the network. The 10 largest non-exchange addresses now hold an AllTimeHigh 31.8M $ETH worth $59.47B,” wrote Santiment.

Notably, the accumulation of these 2.1M coins valued at just over $3.8 billion has continued unabated since 2019, with the holdings of the top 10 non-exchange addresses now surpassing the previous record set in August 2015.

Apart from the allure of discounted prices and the Merge in 2022, these whales’ increased interest in Ethereum can be attributed to the recent Shanghai upgrade. This upgrade has sparked a surge in enthusiasm for Ethereum, leading these whales to capitalize on its potential opportunities.

Today, Cross-chain transaction platform iCrosschain noted that the upgrade has significantly impacted the Ethereum network by enhancing transaction throughput and reducing costs. This has, in turn, enhanced Ethereum’s potential to reshape the crypto world by opening doors to new possibilities and applications.

“With the Shanghai upgrade, more than 3 million ETH has been unstaked on the Ethereum network. Once Ethereum’s Shanghai upgrade permitted withdrawals from staking contracts, Celsius is reshuffling its staked ETH holdings. The amount of ETH on exchanges has decreased significantly in recent times,” added the firm.

These developments and decreased ETH holdings on exchanges indicate an evolving landscape for Ethereum and its potential to revolutionize the crypto world.

That said, just like Bitcoin and many other cryptocurrencies, Ethereum has been facing price volatility in recent weeks, with the second-largest cryptocurrency by market capitalization now facing another rocky start to the week. Despite remaining fairly stable for most of the day Monday, June 5, Ether plunged by about 5.6% after the US market opened to tap $1,785 after the SEC sued Binance for allegedly offering several unregistered securities.

This marks the third consecutive day of decline for the cryptocurrency, with investors now hoping the price can recapture the $1,850 resistance level to avert a further slide southwards. At press time, Ether was trading at $1,884, down 2.50% in the past 24 hours, according to CoinMarketCap data.

HedgeUp (HDUP) Remains favourite As Asset-Backed Trading Platform Grows 300% Even As Analysts Envision Crypto Plunge

By

Guest Author

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June 6, 2023

HedgeUp (HDUP) Set to 100X, Where Next for Litecoin (LTC) and BNB (BNB)?

As cryptocurrencies experience a rollercoaster ride, market analysts predict a significant correction, casting a dark cloud over the crypto sector’s immediate future. Yet amidst this uncertainty, one token stands firm: HedgeUp (HDUP), which has seen its asset-backed trading platform grow a whopping 300%.

Cryptocurrency Market Predictions

The wild fluctuations in the cryptocurrency market have become the norm rather than the exception. Analysts are predicting a significant downturn in the near future. Cryptocurrencies, known for their volatility, are on the precipice of a potential market correction.

Despite the uncertainty, this isn’t entirely negative. It’s a reminder that, like any other asset class, the cryptocurrency market isn’t immune to fluctuations and downturns. Users should understand this before diving into the crypto world.

HedgeUp (HDUP) – The Beacon Amid Uncertainty

Even as many cryptocurrencies grapple with unpredictability, one token has been remarkably steady and prosperous: HedgeUp (HDUP). The asset-backed trading platform has recently experienced exponential growth, with a staggering 300% rise.

The core feature of HedgeUp is its asset-backed structure. Unlike most cryptocurrencies, the value of HedgeUp (HDUP) isn’t determined solely by market supply and demand but also by tangible real-world assets. This hybrid model safeguards against severe volatility, making HedgeUp (HDUP) a more stable option for those interested in crypto acquisitions.

The Edge of HedgeUp (HDUP)

HedgeUp’s (HDUP) impressive performance isn’t a fluke. Its asset-backed nature ensures a certain level of stability and security that purely speculative cryptocurrencies cannot offer. The platform has a multitude of assets, such as real estate, commodities, and even other cryptocurrencies, which back its native token, HedgeUp (HDUP).

This gives the token a degree of resistance to the wider market volatility. Despite a potential market correction, HedgeUp’s (HDUP) value is still underpinned by real-world assets, making it less susceptible to drastic market fluctuations.

In addition to the asset-backed structure, HedgeUp (HDUP) also operates a trading platform. It offers a range of services, such as token trading, hedging options, and opportunities, allowing HedgeUp (HDUP) holders to diversify their portfolios effectively. The platform’s recent 300% growth is a testament to its success in offering a secure, versatile trading environment.

The Future is HedgeUp (HDUP)

While market corrections are a cause for concern, they’re not entirely detrimental. They serve to remove unsustainable growth and provide the opportunity to buy assets at lower prices. Seasoned users often view downturns as a chance to reinforce their holdings.

For a cryptocurrency like HedgeUp (HDUP), a potential market correction represents an opportunity to highlight its advantages further. As its asset-backed structure cushions against severe market fluctuations, HedgeUp (HDUP) stands as a viable option for those seeking to navigate the unpredictable cryptocurrency market.

Concluding Insights

While the crypto world braces for a potential market crash, HedgeUp (HDUP) has set itself apart as a token capable of weathering the storm. Its asset-backed nature and successful trading platform have allowed HedgeUp (HDUP) to thrive even amidst uncertainty. As the cryptocurrency market evolves, HedgeUp (HDUP) continues to solidify its position as a reliable choice. HedgeUp’s (HDUP) is on the rise, even when the broader market outlook appears grim.

For more information about HedgeUp (HDUP) presale, use the links down below:

Website: https://hedgeup.io/

Presale: https://app.hedgeup.io/sign-up

Telegram: https://t.me/HedgeUpChat

Twitter: https://twitter.com/HedgeUpOfficial

Disclaimer: This is a sponsored article, and views in it do not represent those of, nor should they be attributed to, ZyCrypto. Readers should conduct independent research before taking any actions related to the company, product, or crypto projects mentioned in this piece; nor can this article be regarded as investment advice.

Avorak Ecosystem Doesn’t Require Stablecoins – Could USDT be in Trouble if Government Inclusion Comes?

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Guest Author

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June 6, 2023

Avorak Ecosystem Doesn’t Require Stablecoins - Could USDT be in Trouble if Government Inclusion Comes?

Blockchain technology has brought with it exciting innovations in the economic sector. Among them is the introduction of stablecoins. Stablecoins have increased in popularity over the past years, all linked to their stability features, as the name suggests. These cryptocurrencies maintain stable price values, making them have a variety of use cases, and are pegged to fiat currencies like the USD. Among them is Tether (USDT). They can also be backed by reserve assets like gold or other digital assets.

However, there is still some skepticism surrounding stablecoins, and investors are still cautious about them. Avorak presents itself as an alternative to stablecoins as it offers a variety of utilities in blockchain development and doesn’t require stablecoins.

Tether (USDT) in Trouble as Government Adoption Comes?

Tether (USDT) is a popular stablecoin with a market cap of over $60 billion and an extensive use case in the crypto space. However, it’s been controversial, with experts believing that the currency and other stablecoins lack significant backing.

Investors are concerned about their ability to manipulate the market, which might be detrimental to them due to a lack of transparency.

In such a case where the U.S. government continues embracing digital currencies, USDT could be in a tricky position. The U.S. can decide to come up with its stablecoin that the government would back. Such stablecoins are likely to be adopted more as they are believed to be more transparent.

Other digital assets, such as Avorak, present alternatives to stablecoins. The Avorak ecosystem is designed to provide seamless opportunities to trade and buy cryptocurrencies without relying on stablecoins.

Controversies Surrounding Tether Stablecoin

Legitimacy and transparency are among the concerns that are linked to stablecoins, which have raised eyebrows about the digital assets’ general use case. Issues of concern include the inability to provide enough backing to support USDT circulation, thus raising concerns about its stability. These concerns have brought about the need to come up with more stable assets, and Avorak is way ahead as it does not require stablecoins backing.

Avorak Doesn’t Need Stablecoin Backing

Avorak is built to provide the best user experiences without relying on stablecoins to evaluate its value. Its wide use case has made it a popular digital asset, and its utility in employing AI has given it an edge over other stablecoins, including USDT.

The AI-based platform uses its native token, AVRK, which is used to facilitate payments and reward participants in the network. The AVRK token is designed to be stable, reliable, and predictable, free from the high volatility experienced in the crypto market. As such, Avorak users are worry-free from price value fluctuations.

The platform also employs accurate machine learning technologies and accesses a vast pool of data in relaying real-time information that provides insights into various sectors, including trading. Avorak Trade allows automated trades, and the AVRK tokens can be traded on profit using the platform.

Avorak does not rely on stablecoins makes it an attractive asset, as it works to eliminate the need for stablecoins in general. Tether is on a short leash as it is subject to scrutiny and has various challenges that make it a difficult asset.

Moreover, if the U.S. decided to adopt crypto, it might do away with USDT and develop a more reliable, transparent, and predictable stablecoin.

Take Away

Controversies surrounding stablecoins have made many worry about their nature and applications.

Avorak has presented solutions to various challenges in the crypto space, and the decentralized AI platform does not require support from stablecoins. This has made Avorak an interesting project as the crypto realm evolves.

Get more on Avorak on:

Website: https://avorak.ai

Buy AVRK: https://invest.avorak.ai/register

Disclaimer: This is a sponsored article, and views in it do not represent those of, nor should they be attributed to, ZyCrypto. Readers should conduct independent research before taking any actions related to the company, product, or crypto projects mentioned in this piece; nor can this article be regarded as investment advice.

Coinbase Suffers Double Whammy As SEC And State Regulators Act Against Exchange For Unregistered Securities

By

Brenda Ngari

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June 6, 2023

Coinbase Suffers Double Whammy As SEC And State Regulators Act Against Exchange For Unregistered Securities

The U.S. Securities and Exchange Commission (SEC) today sued Coinbase just a day after cracking down on Binance.

The regulatory body alleges in the new lawsuit that Coinbase failed to register as a broker, national securities exchange, or clearing agency despite providing these services to customers. The SEC also alleges that a number of tokens offered by the crypto exchange qualify as securities.

SEC Sues Coinbase For Alleged Securities Violations

The SEC has dropped the hammer on Coinbase, a day after the regulator took similar action against Binance, the world’s largest crypto exchange by market capitalization.

According to the official case file, Coinbase had operated as an unregistered security broker since 2019, nearly two years before the company became the first publicly traded cryptocurrency exchange in April 2021.

The SEC also alleges that the cryptocurrency exchange “made available for trading, crypto assets that are being offered and sold as investment contracts, and thus as securities.”

Tokens powering Solana, Cardano, Polygon, The Sandbox, Filecoin, Axie Infinity, Chiliz, Flow, Internet Computer, Near Protocol, Voyager Dash, and Nexo have all been identified as securities by the SEC.

Back in March, the securities watchdog served Coinbase with a Wells Notice to hint that it would soon bring an enforcement action against the company. Coinbase responded to the Wells Notice in April.

“Coinbase has elevated its interest in increasing its profits over investors’ interests, and over compliance with the law and the regulatory framework that governs the securities markets and was created to protect investors and the U.S. capital markets,” the filing today reads.

The SEC also pointed to Coinbase’s staking service, alleging that it includes five stackable crypto assets, making the program an investment contract and, therefore, an area where the exchange violated securities laws.

Commenting on the charges against Coinbase, SEC chair Gary Gensler noted that the crypto trading platform denied its clients’ essential protections that prevent fraud and manipulation and evaded proper disclosure and safeguards against conflicts of interest.

The SEC wants the defendants — Coinbase, Inc. and Coinbase Global, Inc. — to be “permanently restrained and enjoined” and no longer able to do business within the U.S. Notably, unlike the Binance lawsuit, the SEC has not named founder and CEO Brian Armstrong or any other executive.

Still, this is not Coinbase’s first time locking horns with the American regulator. Last year the exchange, helmed by Brian Armstrong, petitioned the SEC to come up with new rules tailored to digital assets. In April, already under a publicly-acknowledged probe by the agency, Coinbase took a gamble and sued the SEC, hoping to force the agency to respond to its petition.

Coinbase Targeted By State Regulators

Coinbase is also facing scrutiny from a task force of ten U.S. state securities regulators after getting sued by the SEC on the same day.

State regulators from Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Caroline, Vermont, Washington, and Wisconsin have issued a “show cause order” against Coinbase and its parent corporation Coinbase Global alleging that they broke the law by offering the staking rewards program “Earn” to state residents.

Coinbase has 28 days to explain why it should not be directed to cease and desist from selling unregistered securities in Alabama.

Match Systems Investigating Illicit Activities Behind Atomic Wallet Hack, Tracing Stolen $35 Million

By

PR DESK

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June 6, 2023

Match Systems Investigating Illicit Activities Behind Atomic Wallet Hack, Tracing Stolen $35 Million

On June 4, cybersecurity company Match Systems, which specializes in financial crime detection, compliance and risk management, announced their thorough investigation into the recent compromise of Atomic Wallet. More than 100 users were affected by the incident, complaining that their wallets were emptied by unknown perpetrators, either fully or partially.

The substantial theft took place between June 2 and June 3, with miscreants supposed to drain from $35 to $50 million in various crypto assets, according to the interim estimates. Reports from independent investigators claim that five biggest losses amounted to over $17 million, almost half of the recorded total, while the largest victim forfeited almost $8 million at once.

Atomic Wallet is yet to disclose the technical details of the exploitation. The most discussed hypothesis is that the security breach could happen due to the attackers replacing the original file to update the wallet with malware for accessing users’ private keys on the Atomic Wallet official website. Notably, the company closed access to the page where the desktop apps for MacOS, Windows and Linux were available for download, thus confirming that it was the most probable attack vector.

Currently, Match Systems is running a background check to determine the real causes of the catastrophe and track the siphoned funds to prevent them from moving further.

Commenting on the ongoing investigation, Andrei Kutin, CEO at Match Systems, said:

“We at Match Systems are working hand in glove with other security companies and organizations who can be of great help in seizing the stolen assets. To date, we have managed to track malicious transactions and keep working further, driven by the aim of recovering all the funds, with the special attention paid to a staggering loss of $7,95 million. Meanwhile, the compromised users are always welcome to make their contribution to the investigation and/or ask for any support through our special submission form.

“Our top priority is to ensure that each affected user is not abandoned. So, we strive to deliver the most relevant and accurate information about the cyber-attacks like the one that hit Atomic Wallet over the weekend. With our analytics tools coupled with the expertise of our team, Match Systems is now standing at the helm of this critical investigation, helping to sort things out for all parties involved,” he added.

At the same time, Atomic Wallet representatives are quite reluctant to assist Match Systems in investigating the theft. As of today, the company only provided the addresses associated with the stolen funds.

If you’re a victim seeking help with the incident, don’t hesitate to fill out the contact form on the Match Systems website: https://matchsystems.com/incident/?utm_source=zyc.

About Match Systems

Match Systems provides monitoring and analysis of on-chain crypto transactions. It specializes in AML services, blockchain forensics and investigations, as well as implementation of compliance procedures. The company delivers unique information about cryptocurrency addresses involved in illegal activities, using its comprehensive database of tailored marked blockchain addresses. Match Systems is dedicated to create safe environments for all key players in the crypto market, enabling them to assess the risks of specific transactions, counteract money laundering, and respond to emerging risks in a timely manner.

DEGA’s Gamified Multichain Initial Stakepool Offering Transforms Fundraising

By

PR DESK

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June 6, 2023

DEGA's Gamified Multichain Initial Stakepool Offering Transforms Fundraising

DEGA, a leading Web3 game developer ecosystem, has announced its innovative Gamified Multichain Initial Stakepool Offering (ISPO), set to revolutionize fundraising in the blockchain industry. Collaborating with MELD, Cornucopias, and other prominent players in the blockchain space, DEGA is extending its reduced-risk fundraising method, traditionally based on Cardano, to include Ethereum, Polkadot, and Polygon.

DEGA, a pioneer in the Web3 game development space, provides developers with an ecosystem of robust protocols, developer tools, and gamification services. The organization’s focus on user-friendly interfaces, AI-assisted chat systems, and familiar developer APIs ensures that creatives can concentrate on crafting immersive experiences while DEGA handles the complexities of Web3 technology infrastructure.

DEGA differentiates itself by combining high transaction speeds, reliability, and seamless integration to rapidly launch and scale blockchain games and metaverses within minutes instead of years. The platform offers a flexible and cost-effective technology foundation, allowing developers to bring their visions to life without unnecessary delays or expenses.

DEGA’s Multichain ISPO to Debut on June 19

According to the announcement, DEGA’s multichain ISPO will debut on Monday, June 19th, marking a significant milestone for the organization and the broader blockchain community. Participants in the DEGA ISPO can stake ADA, ETH, DOT, or MATIC, and receive rewards in DEGA’s deflationary utility token.

One of the core applications of the DEGA token is to serve as a transaction validation mechanism, similar to Ethereum tokens, but leveraging DEGA’s unique fractal blockchain architecture. This architecture empowers DEGA to create multiple blockchains and layers on demand through its Metachains, enabling the deployment of high-performance Layer 2 blockchains on Ethereum, Cardano, and other chains within 24 hours.

DEGA’s overarching vision is to empower billions of individuals to channel their creativity into the digital economy. By tirelessly building open software tools and experiences, DEGA enables creatives to participate in the world of Web3 using the most cutting-edge technologies available.

DEGA’s Gamified Multichain Initial Stakepool Offering represents a major leap forward in the world of fundraising for blockchain projects. With its multi-chain approach, DEGA is set to reshape the landscape of blockchain fundraising, driving innovation, inclusivity, and accessibility within the industry. As the launch date approaches, anticipation grows as stakeholders eagerly await the next evolution in decentralized fundraising.

Data Shows High-Value Investors Are Buying The Crypto Dip Despite Bombshell SEC Lawsuit Against Binance

By

Brenda Ngari

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June 6, 2023

Data Shows High-Value Investors Are Buying The Dip Despite Bombshell SEC Lawsuit Against Binance

The crypto industry’s latest blow rocked digital assets’ prices on Monday.

The world’s largest cryptocurrency by market cap, Bitcoin, recently traded hands at around $25,496, down 4.54% over the past 24 hours. The downturn started after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against crypto behemoth Binance, the operating company for Binance.US, and Binance founder and CEO Changpeng “CZ” Zhao on allegations of breaking federal securities rules.

Despite the carnage, recent analysis shows that some major crypto players are buying the dip.

Whales Accumulate

Bitcoin may have taken a serious hit yesterday, but not every class of crypto investor is dashing to the exit.

The total crypto market capitalization plunged over 3.5% overnight as the SEC sued Binance. Bitcoin had been treading comfortably above the $27,000 level for the better part of last week, but the charges against the leading crypto exchange rekindled fears about industry integrity and the intention of regulators to exert more authority over trading platforms.

The SEC also alleged that a couple of tokens, including the native coins for the Solana (SOL), Cardano (ADA), Polygon (MATIC), Coti (COTI), and Algorand blockchains (ALGO), Filecoin network (FIL), Cosmos hub (ATOM), Sandbox platform (SAND), Axie infinity (AXS) and Decentraland (MANA) are unregistered securities.

Nonetheless, on-chain data indicate that some larger market participants are scooping up crypto at the dip.

On-chain analytics tool Lookonchain said on Tuesday that Cumberland — a prominent liquidity provider in digital assets — withdrew approximately 67.8 million USDC from Circle and deposited 67.1 million of the stablecoins to U.S.-based digital assets exchange Coinbase.

Crypto Prime brokerage FalconX also acquired 37 million USDC from Circle before sending 29.5 million USDC to Binance. Additionally, as per etherscan, Asian investment firm FBG Capital deposited 44 million USDT to Binance shortly after the news of the SEC lawsuit went public.

Lookonchain also identified a crypto whale that withdrew 703,871 USDC and over 2.5 million USDT from decentralized finance (DeFi) protocol Aave before purchasing $3.35 million worth of ether.

Is This Dip Worth Buying?

While the pain that this most recent capitulation has wrought across the market can’t be understated, the one glimmer of hope it offers weary crypto traders is that the worst of the decline could be over as high-net-worth investors are already stepping in to buy the dip.

Nevertheless, regular retail crypto traders should proceed with extreme caution.

When crypto prices plummet as rapidly as they have in the market recently, it can make that token you’ve been eyeing look like a great deal. But old Wall Street experts have a rule of thumb that aptly explains moments like this: “Never try to catch a falling knife.”

This means pro traders could make a buck trading on increased market volatility, but further downside could occur shortly.

Trader Crypto Tony suggests that Bitcoin could see a short-term bounce before a fresh tumble toward the $24,500 region.

“Shed some more profit on my short this morning, but now looking for a relief wave before the final leg down towards $24,500. I anticipate this is the final leg down before we accumulate for pump to come July / August,” he tweeted.

Binance Responds to SEC’s Complaint, Pledges “Vigorous” Defense Amid Overwhelming Industry Support

By

Newton Gitonga

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June 6, 2023

Binance Responds to SEC's Complaint, Pledges

On Monday, Binance, the world’s largest cryptocurrency exchange by traded volume, was hit with a lawsuit by the U.S. Securities and Exchange Commission (SEC) alleging violations of federal securities laws.

Through thirteen charges, the SEC claimed that the exchange, led by CEO Changpeng Zhao ‘CZ’, offered unregistered securities through its BNB token and other tokens. The agency also accused Zhao and various Binance entities of engaging in deceptive practices, conflicts of interest, inadequate disclosure, and deliberate evasion of legal obligations.

In response to the charges, Binance issued a statement expressing disappointment with the SEC’s decision to file a complaint, despite actively cooperating with the agency in extensive good-faith discussions to reach a negotiated settlement.

Binance further criticized the SEC’s approach, accusing the commission of lacking clarity and guidance in the digital asset industry. According to the exchange, “The SEC’s refusal to productively engage with us is just another example of the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry.”

Binance also argued that the SEC’s actions undermined America’s position as a global hub for financial innovation and leadership. It noted that the SEC’s actions were driven by a desire to claim jurisdictional ground and make headlines rather than protect investors.

That said, the exchange expressed its intention to defend its platform, asserting, “We intend to defend our platform vigorously… We take the SEC’s allegations seriously, but they should not be the subject of an SEC enforcement action.”

While some believe SEC’s decision to sue Binance was long overdue due to the long-felt apparent bad blood between the two entities, the industry has overwhelmingly criticized the SEC due to its latest overreach. Since Monday, industry partners have rallied behind Binance overwhelmingly, emphasizing the importance of defending this technology from what they perceive as misguided lawsuits.

“Honestly, what is happening isn’t anything new. It’s always the same fight between freedom and authoritarianism just with different players, technology, and words,” tweeted Cardano co-founder Charles Honskinson. “It does seem like this event is a perfect opportunity for the entire industry to set aside its fragmented nature and unite for a common sense set of rules and guidelines that can prevent the United States from slipping into a dystopia that would make 1984 look like a vacation.”

Ben Todar, CEO of Moon Nation Game, also expressed his disappointment arguing that the SEC’s actions undermine the freedom and innovation associated with cryptocurrencies and raise suspicions about the commission’s role as a tool utilized by traditional banks to stifle the growth of digital currencies.

“By targeting Binance, the SEC appears to align with the interests of established financial institutions that perceive cryptocurrencies as a threat to their dominance,” he wrote.

That said, as the legal battle between Binance and the SEC unfolds, the cryptocurrency industry watches closely, hoping for a resolution that balances regulatory oversight with innovation and consumer protection.