Crypto Flipsider News – Market Rally; Ethereum Goerli Merge; Ripple to Buy Celsius, SEC Probes Coinbase; Hotbit Suspends Transactions

08/12/2022

4 minutes read

2022.08.12 11:05

Read in the Digest:

Bitcoin and Ethereum lead the crypto market rally after CPI report

Ethereum completes Goerli testnet merge, ETH open interest surges to new high

Ripple interested in acquiring bankrupt crypto lender Celsius Network

The SEC opens a probe into Coinbase’s crypto yield and staking products

Hotbit suspends all transactions as authorities probe ex-employee

Bitcoin and Ethereum Lead the Crypto Market Rally After CPI Report

The latest consumer price index (CPI) report published by the Department of Labor shows that United States inflation has taken a sharp fall from its four-decade high of 9.1% to 8.5%.

The positive news was enough to reverse the bearish trend of the crypto market, with Bitcoin and Ethereum leading the charge. Bitcoin has gained 7% in the last 24 hours to set a new 60-day high of $24,750.

The 24-hour price chart for Bitcoin (BTC). Source: CoinMarketCap

Ethereum has recorded bigger gains as the news collides with the Goerli testnet merge. Ethereum (ETH) has gained 13% in the last 24 hours to trade above $1,930 for the first time since June 6.

The 24-hour price chart for Ethereum (ETH). Source: CoinMarketCap

Ethereum staking protocol, Lido DAO (LDO), is even more impressive, with a +18% gain over the last 24 hours. The rally cuts across the entire crypto market, with the global crypto market cap rising to a 60-day high of $1.17 trillion.

The 24-hour price chart for Lido DAO (LDO). Source: CoinMarketCap

Flipsider:

Despite the declining inflation, Federal Reserve Governor Michelle Bowman says she supports ongoing 75 basis point interest rate hikes.

Why You Should Care

The decline in inflation could see the government dial down on the stringent measures that have worsened the crypto market crash.

Ethereum Completes Goerli Testnet Merge, ETH Open Interest Surges to New High

Ethereum developers have announced the successful deployment of Proof-of-Stake (PoS) on Goerli, which is the third and final test environment network (testnet) merge before the Ethereum mainnet merge.

With the successful deployment of PoS on all three Ethereum testnets, the entire cryptoverse turns its attention to the long-awaited mainnet merge expected to deploy sometime before the end of September.

In addition to the massive price surge, the Ethereum Open Interest (total amount of ETH in futures and perpetual contracts) has surged to a new all-time high.

According to data from CoinAnalyze, the ETH open interest in futures and perpetual contracts has hit a high of $8.5 billion or 4.45 million ETH at an average price of $1,900 per coin.

Flipsider:

Not every Ethereum user looks set to migrate to a PoS network. Tron founder Justin Sun has backed the move to hard fork the network and create another Proof-of-Work Ethereum.

Why You Should Care

Ethereum is receiving a lot of hype and a massive accumulation of ETH as the merge is regarded as the biggest crypto event since Bitcoin launched.

Ripple Interested in Acquiring Bankrupt Crypto Lender Celsius Network

San Francisco-based blockchain payments company, Ripple Labs, has indicated an interest in purchasing insolvent cryptocurrency lender Celsius Network, according to a Wednesday report from the company’s spokesperson.

The spokesperson didn’t mention whether Ripple was interested in outrightly purchasing Celsius but noted that Ripple is actively looking for M&A opportunities to strategically scale the company as it continues to grow exponentially through the market downturn.

The Celsius Network filed for bankruptcy on July 13. Earlier this week, the bankruptcy court approved the fillings from Ripple Labs’ legal team, asking for representation in the Celsius Network bankruptcy case.

Ripple Labs, which is involved in a high-profile battle with the U.S. SEC, has continued to expand its business, recently partnering with Singapore payment giant FOMO Pay for cross-border settlements.

Flipsider:

The Department of Financial Protection and Innovation of California (DFPI) ordered Celsius on Monday to stop all of its further operations on selling and marketing

Why You Should Care

The acquisition of Celsius Network will be Ripple’s biggest purchase deal as the company continues to expand its horizon despite the crypto winter.

The SEC Opens Probe into Coinbase’s Crypto Yield and Staking Products

Leading cryptocurrency exchange Coinbase (NASDAQ:COIN) Global Inc. has announced that it is being probed by the U.S. Securities and Exchange Commission over its staking programs.

Coinbase explained that the SEC was probing the company’s “processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.”

Speaking on the probe, Coinbase CEO Brian Armstrong has said that he is unsure if the SEC’s inquiry will become a formal investigation. But, he also adds, “the more regulation there is for crypto, the better it is for Coinbase.”

The probe comes just weeks after the SEC filed a lawsuit against a former employee from Coinbase for violating its insider-trading rules by leaking information to help his brother make profits from listed digital assets.

Flipsider:

Amidst the wave of probes, Coinbase has dismissed claims that it listed any securities.

Why You Should Care

Despite the increasing regulatory scrutiny of Coinbase, the exchange says it will not “have a material adverse effect” on the company’s financial condition.

Hotbit Suspends All Transactions as Authorities Probe Ex-Employee

According to a Wednesday blog post, cryptocurrency trading platform Hotbit has suspended all its trading, deposit, withdrawal and funding functions amid an investigation into a suspicious project involving its former employee.

According to the announcement, the law enforcement said that a former employee of Hobit’s management team who left last year April was involved in a 2021 project that they now suspect violated criminal laws.

Several senior managers at Hobit with ties to the ex-employee were also served subpoenas. In the process, the authorities froze some of Hobit’s funds, which prevented the exchange from running normally.

The exchange has said that customers’ assets are safe, and their data is secure and correct on the platform. Hobit added that it would announce the outcome after the investigation.

Flipsider: