Bitcoin Trading-Software Blog

• Marathon Digital, a Bitcoin miner, said their funds held at Signature Bank are safe and available for use after the bank closure.
• Marathon Digital holds 11,000 Bitcoin which provides it „financial optionality that extends beyond the traditional banking system.“
• Other firms like Paxos, Coinbase and True Coin also had exposure to Signature Bank and affirmed that their customer deposits would be fully guaranteed.

Signature Bank Closure

On March 12th, the New York Department of Financial Services closed Signature Bank. The Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver and all assets and deposits were moved to Signature Bridge Bank. FDIC stated that all depositors would be made whole.

Marathon Digital Response

Bitcoin miner Marathon Digital stated that $142 million of cash deposits were held at Signature Bank but are still accessible for treasury purposes. Additionally, Marathon has 11,000 Bitcoin holdings which provide them financial optionality outside of traditional banking systems. As a result of this news MARA stock rose 18% today to $6.36 according to Yahoo Finance data.

Other Firms Exposure

Stablecoin issuer Paxos had $250 million at Signature Bank but assured customers that all deposits would be fully guaranteed when banks open again. Coinbase also revealed they held $240 million with the failed bank but could recover these funds when the bank opened back up again. Lastly, True Coin had $852.27 million deposited which will not affect its user’s minting and redemptions of TUSD when banks reopen.

Conclusion

Overall, despite the closure of Signature Bank there is assurance from both Marathon Digital as well as other firms who had exposure to it that customer deposits will be made whole in due time when banks open again soon enough.

Takeaway

The takeaway from this news is that cryptocurrency miners like Marathon have access to digital financial options outside of traditional banking systems which can help protect funds in case of a bank failure such as this one with Signature Bank

• Silvergate Bank must return $9.85 million to BlockFi as part of the latter firm’s bankruptcy proceedings.
• The two companies entered an agreement in August 2020, where Silvergate acted as a depository institution and BlockFi established a reserve containing $10 million.
• Silvergate recently delayed its 10-K filing due to ongoing regulatory investigations, leading some major crypto firms to distance themselves from the bank.

Silvergate Must Return $9.85M Deposit to BlockFi

Silvergate Bank has been ordered to return $9.85 million to BlockFi as part of the latter firm’s ongoing bankruptcy proceedings, according to a March 3 filing. This is due to an agreement set up between the two companies prior to BlockFi’s bankruptcy, where Silvergate acted as a depository institution and BlockFi established a reserve containing $10 million with unrestricted access for 90 business days after the last relevant transfer.

History of Relationship Between Companies

After BlockFi filed for bankruptcy in November 2022, Silvergate stated that it had less than $20 million of exposure to them and was not a custodian for their Bitcoin-collateralized SEN Leverage loans or had any investments in them. Despite this, they maintained a close relationship and BlockFi referred to them as their “banking partner” on Nov. 10 before halting all withdrawals indefinitely due to FTX’s separate collapse that day.

Recent Regulatory Investigations

This week’s court order is seemingly unrelated to recent controversy around Silvergate when they announced that they would delay their 10-K filing and alluded towards various ongoing regulatory investigations on Mar 1st 2021. That led many major crypto companies like BlockFi, who didn’t comment on the issue this week, distancing themselves from the crypto-friendly bank looking out for their own interests.

Conclusion

In conclusion, this court order is part of Blockfi’s ongoing bankruptcy proceedings which has more than 100 000 creditors owing between one billion and ten billion dollars each with them having unrestricted access of funds amounting up too nine point eight five million dollars released by Silveregate Bank per court order based on an agreement made between both parties before Blockfi declared bankrupty in November 2022

• Former SEC chief Lisa Braganca warns against using emojis for investment advice.
• This follows a U.S court ruling that classifying DapperLabs’ use of certain emojis as investment advice.
• The court ruling referred to tweets containing the rocket ship, stock chart, and money bags emoji.

SEC Chief Warns Against Use Of Emojis For Investment Advice

Former SEC branch chief Lisa Braganca has warned the public against using certain emojis in promotional materials following a recent ruling by a U.S court that classified DapperLabs‘ use of these emojis as investment advice.

Background Of The Court Ruling

The ruling came as part of a lawsuit filed against Dapper Labs and its CEO Roham Gharegozlou for allegedly violating securities laws by offering its NBA Top Shot Moments which are non-fungible tokens (NFT) that capture key highlights and video clips from NBA games. The plaintiffs accused Dapper Labs of promoting NBA Shot Moments as investment opportunities through its marketing materials with carefully selected emojis including the rocket ship, stock market, and money bags emoji. The filing stated that “… although the literal word „profit“ is not included in any of the Tweets, the „rocket ship“ emoji, „stock chart“ emoji, and „money bags“ emoji objectively mean one thing: a financial return on investment.“

Dapper Lab’s Response

However, Dapper Labs argued that their use of these emojis was intended to provide accuracy to market data rather than promote sales or act as an endorsement for investing in their products. Several members of the crypto community have argued that Emojis could mean different things to different folks thus any rule on their usage would impinge on freedom of speech.

Final Thoughts

This warning from former SEC chief Lisa Braganca serves as an important reminder to crypto users who may be tempted to use certain emoticons in promotional material associated with investments to consider whether those images could be interpreted as suggesting potential profits or returns on investments when used together with other words or images in the same tweet or post.

Conclusion

In conclusion, it is important for crypto users to understand that even seemingly innocuous images such as emojis can be interpreted differently by different people and can potentially lead to legal trouble if used incorrectly when referring to investments or profits related activities online.

• The U.S. Securities and Exchange Commission (SEC) declared Terra’s assorted tokens to be securities, causing them to drop an average of 5%.
• Binance’s BUSD stablecoin experienced a 15% drop in market cap following news that issuance will cease.
• Do Kwon allegedly cashed out 100M worth of BTC via Swiss Bank.

Terra Tokens Declared Securities

The U.S. Securities and Exchange Commission (SEC) declared Terra’s assorted tokens to be securities, causing them to drop an average of 5%. According to the SEC’s Feb. 16 complaint, Terraform Labs had breached securities law with the Mirror Protocol (MIR) launch as it allowed users to create mAssets, constituting a security-based swap. Furthermore, the wrapped version of Luna was also deemed a security as it is a receipt for a security.

BUSD Market Cap Down 15%

Following news that issuance will cease, Binance’s BUSD stablecoin saw its market cap decline by 15%. In response, CEO Changpeng Zhao (CZ) commented on the shifting landscape concerning stablecoin movements triggered by rising yields in the DeFi ecosystem. He further suggested that some projects may choose to mint their own assets or move away from existing stablecoins altogether in search for higher yields elsewhere in the DeFi space.

Do Kwon Cashes Out $100 Million Via Swiss Bank

The SEC alleged that Do Kwon and Terraform Labs transferred over 10,000 BTC into a cold wallet and then converted some of these assets into cash via a Swiss bank account for up to $100 million USD in total proceeds. Furthermore, this activity was done without registering with the appropriate authorities as required by US securities laws according to the commission’s complaint filed on Feb 16th 2021 .

Implications for Crypto Market

These recent developments have caused significant implications within the cryptocurrency markets. This includes increased scrutiny from regulatory bodies towards crypto projects which could lead to further regulations being implemented within this space moving forward in order keep investors safe from fraudulent activities and scams like those conducted by Do Kwon & Terraform Labs detailed above.. Additionally, it has caused many investors/traders alike to become more cautious when trading/investing or participating any crypto related project moving forward due precautionary measures taken against such activities make sure they are compliant with all applicable regulations before proceeding with their investment decisions going forward .

Conclusion

In conclusion , these recent developments show us just how important it is for investors/traders alike remain vigilant when engaging in any kind cryptocurrency related activities . It also serves as reminder for cryptocurrency projects ensure compliance with all applicable laws & regulations so that can avoid any issues down line like those encountered by Do Kwon & Terraform labs detailed above .

• Bitcoin (BTC) dropped 3.9% following Kraken’s settlement with the SEC to end staking for U.S. customers.
• Bitcoin saw a realized loss of $200 million and a realized profit of $184 million on Feb. 9.
• The total net realized loss stands at $16.2 million, suggesting liquidations were the main driver of negative price action.

Bitcoin Price Drop Following Kraken Settlement

On February 9th, Bitcoin (BTC) dropped 3.9% in the past 24 hours following Kraken’s settlement with the SEC to end staking for U.S. customers, resulting in a realized loss of $200 million and a realized profit of $184 million on that day. This created a net realized loss of $16.2 million, indicating that liquidations were likely the primary cause for this negative price action in BTC markets.

Net Realized Profit/Loss Definition

The Net Realized Profit/Loss is calculated by taking into account both the Realized Profit and Realized Loss associated with moved coins during any given period of time; this metric is defined as the difference between those two figures mentioned above:

•Realized Profit denotes the total profit (USD value) of all moved coins cheaper before their last movement than the price at the current movement;

•Realized Loss denotes the total loss (USD value) of all moved coins priced higher at their last movement than the price at the current movement.

Implications

The net realized profit/loss ratio indicates that liquidations were behind this drop in BTC prices on February 9th, which is not entirely surprising considering that it was only one day after Kraken settled with U.S regulators to end staking services for its American customers—and that such activity often creates market volatility as investors adjust to changing conditions and regulations within crypto markets more broadly speaking..

Conclusion

In conclusion, it appears that regulation-related events can have an impact on cryptocurrency asset prices just like they do in other financial markets—and while these kinds of settlements may create short-term losses, they can also be beneficial over time by helping to promote market stability and improve investor confidence overall..

Disclaimer

CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article but does urge readers to conduct their own research with due diligence into investments prior to making any sort of transaction decision involving cryptocurrencies or other digital assets

• The Indonesian Trade Ministry is aiming to have a national cryptocurrency exchange set up before June 2023.
• Five active exchanges out of the 25 registered with the Commodity Futures Trading Regulatory Agency are in the race to be part of the national bourse.
• The government had placed a moratorium on the issuance of new crypto exchange licenses, but this has been recently lifted.

The Indonesian Trade Ministry has announced that it is aiming to have a national cryptocurrency exchange set up before June 2023, as part of the regulatory reforms adopted by the Indonesian House of Representatives in December. This exchange will be a key part of the government’s efforts to regulate the cryptocurrency industry in the country.

Five active exchanges out of the 25 registered with the Commodity Futures Trading Regulatory Agency are in the race to be part of the national bourse. Trade minister Zulkifli Hasan said that all five exchanges might be part of the ministry’s crypto exchange. He also said that the government was not rushing the process, as they did not want it to take a toll on the public due to lack of understanding about trading in cryptocurrencies.

However, the setting up of the exchange had been delayed due to a moratorium that was placed on the issuance of new crypto exchange licenses by the government. This moratorium had attracted criticism from people who believed that the government was unnecessarily making things difficult. But the government argued that the moratorium was needed to „clear the regulations“ in the sector.

Fortunately, the moratorium has been recently lifted, allowing the government to move ahead with its plans to set up the national cryptocurrency exchange. The five exchanges that are currently in the race to be part of the bourse will be closely assessed in order to ensure that the public is provided with a safe and regulated platform for trading in cryptocurrencies.

The Indonesian Trade Ministry’s decision to set up a national cryptocurrency exchange is expected to bring more legitimacy to the industry in the country, and will also provide the public with a secure and regulated platform. This is an important step towards the wider adoption of cryptocurrencies, and will go a long way in making Indonesia a more attractive destination for crypto-related businesses.

• Mango Labs has sued Avraham Eisenberg, who exploited the DeFi protocol and gained $114 million in October 2022.
• The lawsuit is asking Eisenberg to return the $47 million he gained following his attack, and void the agreement between him and the Mango DAO.
• The Mango developers claim the agreement was entered into under duress and is invalid and unenforceable.

Mango Labs, the developer behind the decentralized finance (DeFi) protocol, has filed a lawsuit against Avraham Eisenberg, the individual who exploited the protocol and gained $114 million in October 2022. In the lawsuit, Mango Labs is asking Eisenberg to return the $47 million he gained following his attack, and void the agreement between him and the Mango DAO.

On October 11, 2022, Eisenberg executed a malicious attack on the DeFi protocol and bragged about it on Twitter afterwards. The attack resulted in Eisenberg gaining $114 million, which Mango Labs is now attempting to reclaim. The protocol developer also wants to nullify the agreement between Eisenberg and Mango’s DAO, which allowed the attacker to keep $47 million from the exploit and protect him against any potential lawsuit.

Mango Labs claims that the agreement was entered into “under duress” and is therefore invalid and unenforceable. In the lawsuit, the developer wrote: “Defendant forced Mango DAO to enter into an unenforceable settlement agreement—under duress—purporting to release depositors‘ claims against him and precluding them from pursuing a criminal investigation.”

The lawsuit also calls out Eisenberg for his “unlawful conduct”, alleging that he “manipulated the value of the Mango token (MNGO) and, through fraud and deception, converted approximately $114 million from Mango Markets depositors into his own accounts.”

Mango Labs is now seeking to reclaim the $47 million that Eisenberg was allowed to keep, as well as punitive damages. The lawsuit also calls for the agreement between Eisenberg and the Mango DAO to be voided, so that the depositors are able to pursue a criminal investigation.

This lawsuit is the latest development in the ongoing saga between Mango Labs and Eisenberg, and it remains to be seen how the case will be resolved. Whatever the outcome, the incident highlights the importance of safety and security measures for DeFi protocols, so that similar situations can be avoided in the future.

• The number of deployed smart contracts on the Ethereum mainnet surged by 453% in the fourth quarter of 2022.
• The year-over-year growth of deployed smart contracts was 293%.
• Testnet deployments hit an all-time high of 2.7 million, reflecting a 187% quarter-over-quarter increase.

In the fourth quarter of 2022, the number of deployed smart contracts on the Ethereum (ETH) mainnet experienced a significant surge of 453%, according to a recent report from Alchemy. This marked an impressive 293% year-over-year growth of deployed smart contracts. Despite the bear market, the number of smart contracts deployed hit an all-time high of 4.6 million since 2021 Q2.

The report utilized libraries (developer tools that are easily read and applied), smart contracts, and dApps as core indicators to track the developer activity on Web3. It was noted that the crypto assets held on exchanges plummeted by 45% in the last quarter of 2022, however, this decrease did not have a major effect on the deployment of smart contracts.

In addition to the surge in deployed smart contracts, testnet deployments also hit an all-time high of 2.7 million, representing a 187% quarter-over-quarter increase. Furthermore, the number of SDK installs and bridge users also recorded a 16% and 43% quarter-over-quarter increase respectively, reaching 1.8 million per week and 443,000 unique users.

The surge in smart contract deployments on the Ethereum mainnet reflects the continued growth in the development activity on Web3. The report from Alchemy offers an in-depth analysis of the development activity on Ethereum, allowing developers and investors to better understand the current state of the blockchain industry. With the continued growth in the number of smart contracts, it is likely that the Ethereum mainnet will continue to see an increase in the number of deployed contracts in the future.

• Solana has surged 42.4% against Bitcoin since January 4th
• Market capitalization groupings are defined as, Large Cap: >1B $, Mid Cap: 1B-100M $, Small Cap: 100M-50M $
• BNB, DOT, ETH and Matic are all up against Bitcoin year-to-date

As the cryptocurrency market continues to surge and evolve, the performance of certain tokens has been particularly striking. Solana, BNB, DOT, ETH and Matic are all up against Bitcoin year-to-date, with Solana leading the way.

Data from Glassnode’s L1 Native Token Returns vs. BTC highlights the relative price performance of large L1 native tokens versus bitcoin since Jan. 4. According to the data, Solana has surged 42.4% against Bitcoin, signaling a strong surge in the token’s value over the last few weeks.

The Market Capitalization Grouping vs. BTC highlights the relative price performance of market capitalization size-based clusters versus bitcoin, with large caps (>1B $), mid caps (1B-100M $) and small caps (100M-50M $) all posting negative returns against Bitcoin since Jan. 10. Large caps were down 5.5%, mid caps were down 0.27% and small caps were down 4.36%.

The relative performance of tokens against Bitcoin is indicative of the strength of the cryptocurrency market and its growth in the last few weeks. Tokens such as Solana, BNB, DOT, ETH and Matic have all seen strong gains against Bitcoin, and this trend is expected to continue in the coming months.

Overall, the performance of tokens against Bitcoin in the last few weeks is a positive sign for the cryptocurrency market, as investors continue to seek out opportunities to increase their profits. With the market continuing to evolve and tokens continuing to perform well, the future of the cryptocurrency market looks bright.