Weekly Headlines 2023.3 W3
“Crypto did not force SVB and Signature into bankruptcy. In my view, Fed policy was the primary culprit. Because of a VC funding drought and higher yields on money market funds, deposits left the US banking system”. – Cathie Wood, the founder, CEO and CIO of Ark Invest
Weekly News Report:
News
1. Ethereum’s Shanghai Hard Fork Now Has Official Target Date
– Developers agreed to April 12 for the long-awaited upgrade that will enable staked ETH withdrawals.
2. What Is Cross River Bank, USDC Stablecoin Issuer Circle’s New Partner?
– The New Jersey-based regional bank has a higher profile after a trio of recent bank collapses – and will likely face added regulatory scrutiny.
3. Coinbase Officially Suspends Binance USD Stablecoin Trading
– Coinbase CEO Brian Armstrong previously said the decision was made due to liquidity concerns.
4. Crypto’s Latest Stablecoin, Called HOPE, Started by Ex-Babel Finance CEO Flex Yang
– The token will serve as the native stablecoin for the new Hope ecosystem, which is focused on bringing traditional-finance users to the crypto market.
5. Silicon Valley Bank Customers Can Fully Access Funds After FDIC Creates New Bridge Bank
– Loans and other services will resume on normal schedule Monday following a switch to a new bridge bank, the regulator said.
6. Crypto-Friendly Signature Bank Shut Down by State Regulators
– New York-based Signature Bank, which has a number of crypto clients, was shut down Sunday by state regulators, the Federal Reserve announced.
Institution
1. More 186 US banks well-positioned for collapse, SVB analysis reveals
– The perfect mix of losses, uninsured leverage and a greater loan portfolio, among other factors, resulted in the fall of Silicon Valley Bank (SVB). Comparing SVB’s situation with other players revealed that nearly 190 banks operating in the United States are at potential risk of a run.
2. This Crisis Will Define the Future of Money
– With thousands of people next month joining CoinDesk’s annual Consensus conference in Austin, Texas, to discuss crypto’s challenges and opportunities, the community now has a narrow opportunity to seize the day and define the future of money.
3. Swiss National Bank Extends $54 Billion Lifeline to Credit Suisse amid Crisis-Like Situation
– The Credit Suisse stock jumped by over 40% in Thursday’s opening trade as the %54 billion credit line extended by the Swiss National Bank comes as a major relief.
4. Stop Blaming Crypto for Traditional Finance Failures
– After the recent collapse of three banks – Silicon Valley Bank, Silvergate Bank and Signature Bank – many pointed fingers at crypto as the cause. But crypto may actually be the solution, not the problem.
5. Santander, HSBC, Deutsche Bank, Others Still Willing to Serve Crypto Clients After Banking Failures, DCG Says
– Major banks are still willing to work with crypto firms, though they may restrict services, according to messages from DCG viewed by CoinDesk.
6. Banking Crisis in U.S. Likely to Push Crypto Firms Offshore
– Switzerland, Lichtenstein and island jurisdictions are among the potential benefactors of the trend.
7. Bank of London bids to acquire Silicon Valley Bank’s UK arm
– The global clearing bank is leading a consortium of private equity firms seeking to purchase SVB’s British arm.
8. Silicon Valley Bank and Signature Bank Reignite ‘Moral Hazard’ Dilemma Bitcoin Was Designed to End
– A debate from the 2008 financial crisis resurfaces as the FDIC intervenes to help two troubled institutions with crypto connections.
Market
1. Crypto market cap reclaims $1T, and derivatives point to further upside
– Bitcoin’s performance has outpaced Warren Buffett’s Berkshire Hathaway over the past six months, with crypto markets appearing to have turned a corner.
2. Bitcoin Is a Clear Winner of the U.S. Banking Crisis
– The narratives around bank failures, stablecoins and interest rate hikes seem strong enough to propel the price of bitcoin, says CoinDesk’s George Kaloudis.
3. Bitcoin, Ether Swing From Cold to Hot in Event-Filled Week
– The two largest cryptocurrencies have risen 31% and 26%, respectively, even as bank failures, inflation concerns and ETH selling pressure have roiled traditional asset markets.
4. The Graph’s GRT Rallies 15% Amid AI Token Surge
– Other AI-related tokens also rose on Thursday, with decentralized AI marketplace, SingularityNET rising 15%.
5. The Banking Crisis Has Been Good for Stablecoin Experimentation
– Sovryn, a Bitcoin DeFi protocol, announced a new dollar proxy as others look at alternative models for collateralizing stablecoins amid a banking system crisis.
6. Investors Flock to Tokenized Diamond as Crypto Banking Crisis Props Hard Assets
– Sales of tokenized diamonds surged 300% last weekend when three banks collapsed and investors scrambled to sell their USDC stablecoins.
7. US credit crunch means it’s time to buy gold and Bitcoin: Novogratz
– The Galaxy Digital CEO predicts tough times ahead for the United States economy but continues to be bullish on crypto.
8. Helium’s HNT Crypto Token Slides to 2-Month Low After Binance.US Delisting Announcement
– The token will be delisted from Binance’s U.S. exchange on March 21.
9. Evaluating Bitcoin as a Store of Value
– Two on-chain metrics, realized capitalization and holding trends, demonstrate belief in bitcoin as a store of value (SoV).
10. Bitcoin Dominance Reaches 9-Month High
– The bitcoin dominance rate has climbed amid increasing turbulence in crypto markets, and more lately as the price of bitcoin also reached a nine-month high.
11. Bitcoin market cap flips tech giant Meta, widens gap on Visa
– BTC’s market cap has climbed to the 11th spot among top assets by market cap, sitting behind electric vehicle maker Tesla.
12. Bitcoin Options Volume on Deribit Hits Highest Level in 22 Months as Bank Failures Breed Volatility
– Traders seek options to hedge against market volatility as U.S. bank failures triggered sharp repricing of interest rate expectations.
13. Silicon Valley Bank Depositors Will Have Access to ‘All’ Funds Monday, Say Federal Regulators
– “Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” a joint statement read.
14. Bitcoin Breaks $26K as U.S. Inflation Slowed to 6% in February
– BTC rose to a nine-month high of $25,484 in the minutes following the inflation report and then extended those gains.
15. Banking Crisis in U.S. Likely to Push Crypto Firms Offshore
– Switzerland, Lichtenstein and island jurisdictions are among the potential benefactors of the trend.
16. Burning USDC and Minting DAI Prove to Be Popular On-Chain Activities Amid SVB Collapse
– Circle’s USDC stablecoin had nearly $3 billion in net redemptions since Friday, while the total supply of DAI increased by 1.2 billion tokens over the same time period.
17. DYdX Passes Vote to Reduce Trading Rewards by 45%, Sending Token Up 29.89%
– The DYDX token is up by 121% since the turn of the year.
18. Crypto Fund Outflows Hit Record Weekly Level
– The outflows rose for a fifth consecutive week, according to a CoinShares report.
19. Bitcoin Spike to $24.5K Stemmed From Regulators’ Bank Interventions, Binance Stablecoin Conversion, Investor Hopes for Fed Dovishness
– Investment banking giant Goldman Sachs analysts have predicted that the U.S. central bank will not raise interest rates at its next FOMC meeting on March 22, according to a report.
20. Bitcoin Was Built for This Moment
– Amid a U.S. banking crisis, value is flowing into bitcoin. Is this the beginning of the “Great Reset?” investor and author Tatiana Koffman asks.
21. Bitcoin Surges 18% to Above $24K
– Some $160 million in short positions were liquidated on Monday.
NFT
1. Dubai to Abu Dhabi: How NFTs are used in the UAE
– Cointelegraph went to an electronic dance music concert and spoke to projects at the recent AIBC Dubai event to see how nonfungible tokens are used in the United Arab Emirates.
2. Meta Will End Support for NFTs on Instagram, Facebook
– Meta’s Stephane Kasriel said on Twitter the decision is prompted by a desire “to focus on other ways to support creators, people, and businesses.”
3. NFT Artist Beeple Opens Digital Art Gallery in Charleston, SC
– Mike Winkelmann, also known as Beeple, has opened the 50,000-square-foot Beeple Studios in Charleston, South Carolina, to showcase his art and to build a community of fellow creators.
Metaverse
South Korea launches ‘Metaverse Fund’ to expedite domestic initiatives
– With the help of the Metaverse Fund, South Korea will support the mergers and acquisitions of various firms from the metaverse ecosystem.
Web3
1. Microsoft reportedly testing Edge browser web3 wallet integration
– The supposed screenshots show a non-custodial crypto and NFT-friendly Microsoft Web3 wallet embedded into Edge.
2. HerVoice digital collectibles launch this Women’s History Month to elevate women around the world
– NFTs provide a simple, transparent and accessible way to help empower women in the Web3 era.
3. AI and Crypto Are Combining to Create Web3’s ‘Multiplayer Era’
– Creating with code has never been easier. Web3 tooling shows us how it can be equitable and collaborative.
4. The Australian Open Goes Full Web3
– January’s tennis grand slam shows how brands can embrace the metaverse for increased fan engagement.
DAO
Arbitrum to Airdrop New Token and Transition to DAO
– The long-awaited ARB token will grant holders the ability to vote on changes to the leading Ethereum layer 2 network.
March 18, 2023