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Good morning. Here’s what’s happening:
price: Bitcoin is slowly rising, but it has remained in a narrow range of recent times. Other major ciphers are shown in green.
insight: Crypto exchange tokens are reacting to news developments more than regulators think.
price
CoinDesk Market Index (CMIP)
824.68
+8.1 ▲ 1.0%
Bitcoin (BTC)
$16,704
+96.2 ▲ 0.6%
Ethereum (ETH)
$1,216
+15.7 ▲ 1.3%
S&P 500 Daily Close Price
3,839.50
−9.8 ▼ 0.3%
Money
$1,833
+13.0 ▲ 0.7%
Government Bond Yield 10 Years
3.88%
▲ 0.0
BTC/ETH price by CoinDesk index; Gold is the COMEX spot price.Price around 4pm ET
Bitcoin Celebrates New Year at Old Prices
James Rubin
new year. old story.
Bitcoin held the same narrow range during the last 15 days of 2022 as investors enjoyed the end of the holiday weekend.
The largest cryptocurrency by market capitalization has risen 0.6% over the past 24 hours to trade at around $16,700 in light trading typical of the holiday season. BTC has been hovering between $16,400 and $17,000 since mid-December when fears of inflation and a sharp recession reignited.
It’s unclear if and when cryptocurrency prices will recover in 2023, but crypto exchange giant FTX’s November failure capped a year of industry wrecks in 2022. Analysts seem to believe that there will be no more than a year of pain.
“The crypto community will not be sad to see the flip side of 2022 and who can blame them?” Craig Earlam, senior analyst at forex market maker Oanda, said in a recent email. “No one knows what will happen in 2023, but at least they’re hoping to put the FTX scandal on the back burner and refocus on innovation and adoption.”
However, Erlam warns that:
Ether followed Bitcoin’s path on Monday, staying in a two-week range between $1,150 and $1,230. The second-largest cryptocurrency by market value recently traded at around $1,215, up 1.3% from Sunday. Other major cryptocurrencies were XRP, a token of the XRP open-source public blockchain, XRP Ledger, and MATIC, a token of the layer-2 platform Polygon Network, up more than 4% and 3% respectively.
SOL, the native cryptocurrency of struggling blockchain platform Solana, continues its surge that began last week when Ethereum co-founder Vitalik Buterin tweeted positively about the protocol. SOL has recently risen 13%, just above $11, but that’s from a year ago when he was trading above $176 as a result of the collapsing Terra ecosystem and his entanglement with FTX. Losing his 93% of value.
The CoinDesk Market Index (CDI), a metric that measures cryptocurrency performance, recently rose 1.50%.
Equity indices gracefully ended a sluggish year with the Nasdaq, S&P 500 and Dow Jones Industrial Average all falling slightly. The tech stock Nasdaq plunged a whopping 33% as markets shook from macroeconomic uncertainty, socio-political unrest and a heavy blow from rising prices.
Meanwhile, FTX’s ripples continue to grow, with cryptocurrency exchange Gemini co-founder accusing digital currency group CEO Barry Silbert of “malicious stalling tactics,” with the respective companies claiming FTX numbers tangled over business disagreements caused by the billion-dollar implosion. Year.
Cameron Winklevoss blows up Silbert In an open letter posted on Twittercrypto broker Genesis Global Capital and its parent company DCG allege they owe $900 million to Gemini customers. DCG is also the parent company of CoinDesk.
Silbert tweeted that DCG had submitted a proposal to Genesis and Gemini advisors on December 29, 2022, and received no response.
Looking to the broader picture, Oanda’s Earlam wrote, “It will depend on economic data and how companies plan to adapt to the impending recession.”
“Data for the end of 2022 are not as encouraging as hoped, and communications from the Fed and others remain more hawkish than investors would like,” he wrote.
biggest price riser
biggest loser
There are no losers in CoinDesk 20 today.
Insight
Exchange tokens don’t care what the SEC does
Sam Reynolds
FTX’s FTT exchange tokens are securities.
This is an undisputed comment the Stock Exchange (SEC) made to former Alameda Research executive Caroline Ellison at the end of 2022.
Since then, many exchange tokens have come up. Data from CoinGecko shows that OKX’s OKB token surged a staggering 30% last week. BNB he recorded a rise of 1.5%. KuCoin’s KCS is up 1.7%. Huobi’s HT fell 4% and Crypto.com’s Cronos fell 4.2%, both fairly modest for digital asset markets.
For years, the market has treated exchange tokens like securities with a different name.
Indeed, exchange executives would be quick to say that these tokens have many features that set them apart from traditional investment contracts. So utilities like discounts for big holders, but exchange token prices tend to follow the news. His Tokocrypto exchange token in Indonesia rose when it was leaked that Binance was looking to buy the exchange. His BNB token on Binance drops on bad news. FTX’s FTT plunged from $22.50 to $1.50 in a week in early November after CoinDesk broke the fateful news about Alameda’s balance sheet.
“If the demand for trading on the FTX platform increases, the demand for FTT tokens will likely increase, and FTT price increases will benefit FTT holders equally and in direct proportion to their FTT holdings. ,” the SEC wrote in its December complaint. “The large allocation of tokens to FTX has motivated the FTX management team to take steps to attract more users to the trading platform, increase demand for FTT tokens and raise trading prices.”
Case law favors the SEC
All of these claims made by the SEC in its complaint are undisputed. Ellison agrees with them all, thanks to her desire to admit and settle her guilt, so they are not being tested in court in the usual hostile manner.
So now the SEC has case law to track half a dozen other prominent exchange tokens on the market. Exchanges may say this is not a problem. Because in previous cases where the SEC referred to tokens as securities, defendants argued that U.S. law should not apply. , operated by non-Americans.
But FTX is also offshore, and measures existed to block US residents from opening accounts on the platform (instead, directing them to FTX US). This argument doesn’t work because some Americans lost money on FTX.
But are markets already pricing in hostile regulators?
“SEC Chairman Gary Gensler has been emphasizing his view that cryptocurrency products should generally be regulated as securities,” said special counsel at Taipei-based Titan Attorneys at Law. Ross Feingold told CoinDesk. “A number of recent enforcement actions by the SEC indicate a willingness to prosecute cryptocurrency exchanges, those who offer new cryptocurrencies, and cryptocurrency spokespersons.”
Feingold believes the SEC will have an easier time prosecuting given the Howey test standards.
“We could easily replace the name of the cryptocurrency product with the name of the company’s stock or any other investment product that we would normally consider security. It’s not a problem for us,” says Feingold.
Actions of foreign regulators?
One of the wildcards is if other regulators around the world follow suit and also cover exchange tokens. For example, most Asian regulators have historically approached cryptocurrencies with a light touch. Binance and FTX are not blocked like in the US, but this could change.
For example, in Taiwan, retail investors lost an estimated $500 million due to the FTX collapse. Indonesia, where the number of crypto traders exceeds the number of stock traders, is already planning post-FTX regulation tightening after being mandated by the Financial Services Authority to come up with a better regulatory framework to protect investors. .
“An interesting aspect of the SEC’s willingness (or enthusiasm) to treat cryptocurrencies as security is that it requires regulators elsewhere, including here in Asia, to simply It is to follow the lead of the SEC to cover the issuance of security- or crypto-specific public offerings or trading regulations,” said Feingold.
The market may already be pricing in a hostile SEC, but let’s see if other regulators are considering simply following the European Commission’s lead.
important event.
Bitcoin Day: Bitcoin Day is the anniversary of the genesis block, which marked the beginning of the Bitcoin blockchain in 2009.
9:45 am HKT/SGT (1:45 am UTC): Caixin China Manufacturing PMI (Dec)
coin desk tv
In case you missed it, here’s the latest episode of CoinDesk TV’s All About Bitcoin.
A Year in Review: The Crypto Stories That Shaped 2022
2022 has been unlike any other year in the history of crypto.From the rapid demise of FTX, to the momentous Ethereum merger, to the unraveling of TerraUSD, CoinDesk’s Christie Harkin and Tracy Wang discuss the past 12 months. A look back at what shaped the virtual currency market in “All about Bitcoin”.
headline
Gemini co-founder blames DCG’s Silbert for being stuck in $900 million locked fund dispute Silbert replied that his company submitted a proposal to Genesis and Gemini advisors last Thursday.
What bitcoin mining companies need to survive in 2023: Some miners have chosen to keep the bitcoins they have mined and instead finance their operations with debt and other equity.
UK to apply crypto tax exemption to foreigners using local brokers: The measures currently in place are part of the government’s plan to transform the country into a cryptocurrency hub.
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