Crypto Flipsider News – Ethereum Plunges; Lido Rejects Proposal; SEC Probes Coinbase; FTX’s Bithumb Acquisition; CZ Sues Bloomberg
2022.07.27 03:54
Crypto Flipsider News – Ethereum Plunges; Lido Rejects Proposal; SEC Probes Coinbase; FTX’s Bithumb Acquisition; CZ Sues Bloomberg
Read in the Digest:
- Ethereum suffers 10% decline at $1.6k rejection – liquidation hits $100M.
- Lido DAO rejects proposal to sell 10 million tokens to Dragon Capital.
- SEC probes coinbase over “securities” listing – Cuban weighs in on SEC.
- Sam Bankman-Fried’s FTX advances talks to acquire the Bithumb Exchange.
- Binance CEO Changpeng Zhao Sues Bloomberg subsidiary over defamatory article.
Ethereum Suffers 10% Decline at $1.6k Rejection – Liquidation Hits $100M
In an extended price recovery, Ethereum (ETH) outperformed Bitcoin along with the majority of the crypto market, breaking above the $1,600 level for the first time in 7 weeks. However, the price of ETH swiftly suffered a sharp rejection from $1,6k.
Ethereum is now suffering its second consecutive day of correction, dropping from a high of $1,605.34 to close trading on Monday, July 25th, at $1,445.38. Over the last 24 hours, the price of Ethereum has plunged by 10% to trade at $1,389 at the time of writing.
The 24 hour price chart for Ethereum (ETH). Source: CoinMarketCap
The sharp decline saw over $104 million worth of Ether positions liquidated in the last 24 hours, according to CoinGlass. In addition, further data suggests that sentiment towards Ethereum is turning sour as holders move funds to exchanges.
Flipsider:
- Despite the plunge, Ethereum continues to enjoy increased buying pressure from whales, with whale address holdings rising 22.26% in the past month.
- In addition, Glassnode reports that the total number of active Ethereum addresses has hit a 7-month high of 35,037.518, ahead of the merge.
Why You Should Care
The upcoming Ethereum mainnet ‘Merge‘ is billed to not only change the mechanics of the Ethereum network, but also to affect the sentiment and price of Ether (ETH).
Lido DAO Rejects Proposal to Sell 10 Million Tokens to Dragon Capital
After a governance vote, Lido Finance, an Ethereum staking protocol, has rejected a proposal to sell 10 million LDO tokens the to Dragonfly Capital investment fund for $14.5 million.
The token sale, which was touted as a means of diversifying the treasury of Lido DAO, would have seen half of the 20 million Lido tokens held by the treasury sold to Dragonfly Capital at $1.45 per token.
The voting process, which concluded on July 25th, saw 66% of the 600 community members, holding a combined 43 million LDO tokens, vote against the proposal. However, two accounts holding as much as 21 million LDO tokens voted to diversify the treasury.
The proposal has drew intense criticism due the Dragon Capital deal’s lack of token locking requirements. The identities of the two account holders behind diversify votes remain a mystery.
Flipsider:
- If the proposal had passed, the other 10 million LDO held by the treasury would have been sold as a way to cover operating costs for the next two years.
Why You Should Care
Weighing in on the proposal, “Cobie“, the co-founder of Lido, stated his opinion that venture capitalists should stay away from DAO votes, further claiming that the token sale would have led to “cronyism and looting.”
SEC Probes Coinbase (NASDAQ:COIN) Over “Securities” Listing, Cuban Weighs in on SEC
Leading crypto exchange Coinbase is reportedly the target of a probe by the U.S. Securities and Exchange Commission (SEC) over some of the tokens listed on its trading platform.
According to the reports, the SEC alleges that Coinbase improperly let Americans trade digital assets that should have been registered as securities. Coinbase has denied the allegations, noting that it does not list securities on its platform.
The probe comes after allegations that Coinbase listed seven cryptocurrency securities in an unrelated insider trading controversy at the exchange last week.
Flipsider:
- Reacting to the increasing involvement of the SEC in crypto-related issues, American billionaire and entrepreneur Mark Cuban has labeled the SEC’s rules on token registration a “nightmare that’s waiting for the crypto industry.”
- His comments trail a multitude of instances in which the SEC has pursuing prosecution without providing any clear guidelines for the industry.
Why You Should Care
The SEC’s scrutiny of Coinbase significantly intensified after the crypto exchange expanded the number of tokens it offers for trade.
Sam Bankman-Fried’s FTX Advances Talks to Acquire Bithumb Exchange
Leading crypto exchange FTX has advanced to late-stage talks in its potential acquisition of South Korea-based cryptocurrency exchange Bithumb. The conversations have reportedly been in progress for several months.
Vidente, the owner of Bithumb, confirmed that discussions about the possible sale of business holdings to Sam Bankman-Fried’s exchange were underway. Bithumb is one of South Korea’s largest exchanges, with over 8 million registered users.
According to Vidente, although no specific course of action has been decided upon, FTX is reviewing all possible options, including a complete acquisition of Bithumb, and a potential joint management option for the exchange.
The move continues Bankman-Fried’s acquisition spree throughout this crypto winter. The exchange recently acquired Bitvo, and is currently in the process of acquiring BlockFi in a $680 million deal. In related news, Alameda Ventures recently provided Voyager Digital with $500 million of credit.
Flipsider:
- Bankrupt Voyager Digital has rejected the buyout offer from FTX, calling it a “lowball” attempt that would not benefit its users.
Why You Should Care
FTX’s attempt to purchase Bithumb is in line with its mission to expand in Asia, after acquiring Japanese crypto exchange Liquid in February.
Binance CEO Changpeng Zhao Sues Bloomberg Subsidiary Over Defamatory Article
Changpeng “CZ” Zhao, the founder of Binance, has filed a defamation lawsuit against Bloomberg‘s Chinese subsidiary Modern Media Company for the publishing of an article that his lawyers claim actively damaged the public image of CZ, causing distress and embarrassment.
In the 250th issue of the Chinese edition, the Modern Media Company featured an article titled ‘Changpeng Zhao’s Ponzi Scheme.’ The heading of the original article, released by Bloomberg Businessweek, reads: ‘Can Crypto’s Richest Man Stand the Cold?’
The Modern Media Company has since taken down the title, replacing it with: ‘The Mysterious Changpeng Zhao‘ follwoing demands by Zhao to withdraw the defamatory article and cease any further portrayals of the Binance Chief in such a damaging light.
The company will also issue a formal apology and offer financial compensation, including damages. In a separate filing, Changpeng Zhao sued Bloomberg L.P. and Bloomberg Inc. over “defamatory allegations” within the profile piece.
Flipsider:
- CZ has said that Binance remains committed to being a pure Web 3.0 exchange, and has no plans to offer stocks trading.
Why You Should Care
CZ and his company Binance have been highly scrutinized by media within crypto, and the lawsuits represent part of an image protection strategy for the crypto exchange.
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