24 hours. $70 Billion. Gone 💣🚷
Crypto market crashes, again. Bitcoin below $20K. Ethereum under 1.5K. The Silicon Valley Bank unloads $21 Billion assets. Four biggest US banks lose $52 Billion in valuation.
Hello y'all. This is The Token Dispatch. A bank goes down, it never goes down alone. The pack follows. We just dispatch, we know nothing bout the fire 🔥
The Silicon Valley Bank, has been the darling of the tech startups in the US, not just now but for a few decades. SVB was forced to unload $21 billion worth holding securities at a $1.8 billion loss. This comes on the back of the collapse of Silvergate Bank, one of the crypto market’s top banks. As expected it has had a spiral effect. The forrest has caught fire ⚠️
The crypto sell-off has been prompted by a number of factors. Tussle with the authorities in the US aside, they move pretty close with the US stock market, and we know it ain't pretty there. Then there is inflation and the hawkish Fed Chair Colonel Jerome Powell. Then the slippery slope of them banking folks - Silvergate and Silicon Valley. There might even be US government Silk Road Bitcoin sell off coming. Too much for Crypto, you know. It's already tough We are always alive and very volatile 🙏
Four biggest U.S. banks lose $52 Billion of market value on Thursday, March 9. JPMorgan ($22 Billion), Bank of America ($16 billion), Wells Fargo ($10 Billion) and Citigroup ($4 billion).
Huobi Token (HT) experienced a sudden drop of 93% in just a few minutes, causing panic among investors. Justin Sun, founder of Tron and CEO of BitTorrent blamed the drop on liquidations and alleged market manipulated. He transferred $100 Million USDC to Create Huobi Liquidity Fund to protect the HT token.
The New York Attorney General Letitia James has alleged that Ether is a security in a lawsuit against cryptocurrency exchange KuCoin. It alleges that KuCoin facilitated the sale of unregistered securities, including tokens that were deemed securities by the SEC. The Attorney General's office argues that Ether was initially sold through an ICO and therefore qualifies as a security under US law. Should cryptocurrencies be classified as securities or commodities - it's a raging debate. If established at as security, it could open a bag of problems for the crypto exchanges.
TTD Number Picker 🔢
US government-linked addresses have transferred over 50K BTC , around $1 billion worth of Bitcoin, leading to speculation that the funds could be from the Silk Road marketplace. The Silk Road was an online black market that was shut down by the FBI in 2013, and its founder, Ross Ulbricht, is currently serving a life sentence. Do you know that US government owns around 214K+ BTC, more than 1% of total Bitcoin supply? The movement of the Bitcoin has sparked rumours that the US government may be preparing to sell the seized funds, which could have a significant impact on the cryptocurrency market.
TTD Think About It 🧠
The Satoshi Nakamoto Dollar, NakaDollar, NUSD
Arthur Hayes, co-founder of BitMEX, has proposed the creation of a Bitcoin-based stablecoin. The stablecoin would be pegged to the US dollar and backed by Bitcoin held in custody. Hayes believes that this would provide a stable and secure alternative to traditional stablecoins, which are often backed by fiat currencies and subject to regulatory scrutiny. The proposed stablecoin would also allow for greater adoption of Bitcoin, a stable value for merchants and consumers for payments and settlement.
TTD WTF 😮
Have Bitcoin ATMs Become Money Laundering Tools? There is growing concern that Bitcoin ATMs are being used as tools for money laundering. These machines allow users to buy and sell Bitcoin anonymously, making it difficult for law enforcement to track the source of funds. In addition, some Bitcoin ATMs have been found to have inadequate anti-money laundering measures in place. While not all Bitcoin ATMs are being used for illicit purposes, regulators are calling for increased oversight and stricter regulations to prevent their misuse.
Joe Biden proposes 30% excise tax on crypto mining. Phased-in at 10% per year, over 3 years, for electricity generated from both on and off-grid.
Majority Whip Rep. Tom Emmer says CBDCs could be ‘weaponised’ as political tool, and is seeking to halt the FED's new digital dollar project.
Federal Reserve is setting up a new squad of crypto specialists, to not stomp on crypto innovation and to keep a check on stablecoins.
U.S. Department of Justice has filled an appeal, challenging New York Judge Michael Wiles' decision to approve Voyager’s Sale to Binance US.
The U.S. Treasury said the task force had blocked or frozen more than $58 billion to counter Russian sanctions evasion.
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The Token Dispatch is a daily newsletter that takes you on a 4-5 minute drive through the wild west of the Crypto World. Daily in your email inbox @13:00 GMT. Almost always.