Crypto Flipsider News – Cryptos Tumble; Vasil Launch Date; Grayscale-SEC Tussle; Singapore Crypto Restriction; Ava Labs Conspiracy

08/30/2022

4 minutes read

2022.08.30 02:50

Read in the Digest:

Crypto global market cap falls under $1 trillion as Fed rate risks rise

Charles Hoskinson releases updated timeline for Vasil upgrade launch

SEC questions Grayscale over security status of three crypto trusts

Singapore is exploring restricting retail access to cryptocurrencies

Ava Labs CEO calls “CryptoLeaks” conspiracy theory nonsense

Crypto Global Market Cap Falls Under $1 Trillion as Fed Rate Risks Rise

Following the announcement of tighter measures to clamp down on inflation by the chairman of the Federal Reserve, Jerome Powell, the crypto market went on a massive sell-off.

In the three days following the announcement, the price of Bitcoin tanked from $21,804 to a one-month low at $19,600. After rallying above the $20,100 mark for an inter-day high, the price of Bitcoin has fallen down to $19,900.

The 3-day price chart for Bitcoin (BTC). Source: CoinMarketCap

While the entire crypto market was sucked into the bearish pressure, Ethereum is faring better than most cryptos. After falling as low as $1,430, ETH struggled back to $1,500. ETH now trades at $1,490, with a +0.5% gain in the last 24 hours.

The 3-days price chart for Ethereum (ETH). Source: CoinMarketCap

The massive sell-off saw the global crypto market cap fall below the $1 trillion mark for the first time in more than a month. However, the losses can not be compared to the $1.25 trillion wiped off the U.S. equities markets following Powell’s announcement.

Flipsider:

Mt Gox’s creditor has denied the report that more than $3 billion worth of Bitcoins (BTC) from the hack will be returned to investors starting next week.

Charles Hoskinson Releases Updated Timeline for Vasil Upgrade Launch

In a live-streamed video on Friday, Charles Hoskinson, the founder of Cardano and CEO of IOHK provided a new timeline for the deployment of the Vasil hard fork upgrade. Hoskinson explained that the development of the Vasil hard fork is going on swiftly.

According to Hoskinson, the Vasil upgrade will take place “sometime in September,” unless the development takes a major slowdown. He adds that there are currently no bugs capable of delaying the mainnet.

Hoskinson explained that before the mainnet upgrade is released, Cardano Stake Pool (NASDAQ:POOL) Operators (SPOs) running the latest 1.35.3 node should make up at least 75% of block produced and exchanges upgrade to support the launch.

The Cardano founder said that when the goal of 75% SPOs is hit, and three to five of the major exchanges by volume have upgraded their Cardano nodes to the latest version, the date for the Vasil upgrade will be announced.

Flipsider:

Cardano (ADA) has suffered a significant fall in price in 2022 following the team’s inability to follow through with earlier launch dates.

Why You Should Care

The Vasil is highly anticipated as the upgrade will increase throughput, reduce fees, and improve the development of smart contracts and decentralised apps (dApps).

SEC Questions Grayscale Over Security Status of Three Crypto Trusts

Grayscale Investments LLC has disclosed that it has been fielding questions from the U.S. Securities and Exchange Commission (SEC) between June and mid-August over the security status of three of the firm’s crypto products.

According to a recent filing by the world’s largest digital asset manager, three of its crypto products, Stellar (XLM), Zcash (ZEC) and Horizen (ZEN) may be classified as securities by the regulator.

If the SEC determines these cryptos are securities, then Grayscale may put its trusts involving these three cryptocurrencies on hold. Grayscale said the decision is based on the facts as they exist today.

The ZEC, ZEN, and XLM Trusts provide cryptocurrency investment opportunities to investors and accounts for about US$40 million out of Grayscale approximately US$18.7 billion in assets under management.

Flipsider:

Grayscale has filed a class action lawsuit against the SEC over the agency’s rejection of its petition to convert its Bitcoin Trust to a spot Bitcoin ETF.

Why You Should Care

Grayscale’s filing highlights the fast-evolving push from regulators as they seek to regulate the crypto industry.

Singapore Is Exploring Restricting Retail Access to Cryptocurrencies

The central bank of Singapore, the Monetary Authority of Singapore (MAS), is considering implementing new regulations that will make it more difficult for retail investors to trade cryptocurrencies.

Ravi Menon, the managing director of MAS said at a seminar on Monday that retail investors seem to be “irrationally oblivious” about the risks involved in crypto. He confirmed that the MAS was contemplating “adding frictions” on retail access to crypto.

Explaining the possible frictions the MAS might add, Menon said that they “may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading.”

He adds that the MAS needs to do a better job explaining the crypto policy. In January, the apex bank of Singapore issued guidelines to limit cryptocurrency trading service providers from promoting their services to the public.

Flipsider:

Singapore was one of the most crypto-friendly nations before the Terra ecosystem collapse led to an increased push for regulation.

Why You Should Care

The potential move to restrict retail investors’ access to crypto is part of the central bank’s attempts to shield them from potential risks.

Ava Labs CEO Calls “CryptoLeaks” Conspiracy Theory Nonsense

Emin Gün Sirer, the CEO of Ava Labs has denied the allegations from crypto “whistleblower” CryptoLeaks that his company paid off Roche Freedman to use litigation against its competitors and deceive the U.S. regulators.

CryptoLeaks had uploaded several videos from an unknown source detailing the partnership deals and relationship Sirer and COO Kevin Sekniqi had with U.S. Attorney Kyle Roche of Roche Freedman LLP.

In one of the videos, Kyle Roche claimed that Roche Freedman was paid to attack Ava Lab’s rivals, Dfinity and Solana. According to CryptoLeaks, Roche Freedman and Kyle Roche got around 1% of the AVAX token supply and Ava Labs stock to stage litigations and class-action lawsuits to stifle Ava Lab’s rivals.

Sirer took to Twitter (NYSE:TWTR) on Sunday to debunk CryptoLeaks claims, referring to it as “conspiracy theory nonsense.” He added that Ava Labs would never engage in such unlawful, unethical, and just plain wrong behavior.

Flipsider: