China's crypto crackdown

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Unhashed by AMBCrypto
December 27, 2023

 

Reading time: 7 minutes

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Uniswap surpasses NYSE and NASDAQ in daily trading volume amid DeFi surge

Key points

  • Uniswap's daily trading volume surpassed the combined volume of both the New York Stock Exchange and the NASDAQ

  • Uniswap's ability to outdo NASDAQ in trading volume indicates the increasing importance of decentralized finance platforms

News - Uniswap solidified its standing as a major decentralized exchange in the cryptocurrency sector and capitalized on the recent surge in crypto interest. This shift in market dynamics underscored the increasing relevance of decentralized finance platforms. Uniswap's robust development ecosystem contributed to its innovation and resilience. The fall season saw a surge in development activity, reflecting the community's dedication.

Burn mechanism boost - Additionally, Uniswap Routers burned 18,699 ETH in the past 30 days, which constituted 15% of the total ETH burned during this period. This deflationary mechanism could positively impact UNI's value in the long run by contributing to its scarcity.

Strategic Collaborations - Regarding collaborations, Uniswap Labs partnered with Talos, an institutional investing technology firm, to bring DeFi liquidity to institutional traders. The collaboration included providing Talos clients access to the UniswapX ecosystem through the network's Trading APIs.

As of press time, UNI traded at $6.74, showing a slight decline of 1.38% in the last 24 hours. The dynamic price reflected market trends and ongoing developments influencing UNI's state.

Tether's $1 Billion USDT minting stirs market concerns amid Bitcoin price fluctuations

Key points

  • Paolo Ardoino, CEO of Tether, clarified that this transaction was an "inventory replenish" on the Ethereum blockchain

  • Whale Alert, a blockchain tracking platform, alerted users about this minting on 25 December

News - Tether, the entity behind the world's largest stablecoin, minted an additional 1 billion USDT, as confirmed by CEO Paolo Ardoino. This issuance, labeled as "authorized but not issued," was highlighted by blockchain tracker Whale Alert on December 25. Ardoino clarified that the transaction served as an "inventory replenish" on the Ethereum blockchain, emphasizing its future use in issuance requests and chain swaps.

In Tether's terms, inventory replenishment involved creating new USDT stored in the treasury as "authorized but not issued." Despite skepticism and calls for transparency, Ardoino reiterated that these tokens were not part of the total USDT market capitalization until they were officially issued.

Speculation surrounds Tether's actions - Some observers speculated that Tether's recent minting could influence Bitcoin's price, echoing previous claims linking Tether actions to BTC surges. Over 2023, Tether's market capitalization surged from $66 billion to $91 billion, attributing its growth to market anticipation of a potential Bitcoin ETF and increased involvement in Bitcoin activities, such as purchasing Bitcoin and launching BTC mining operations. As of the latest data, Bitcoin traded at $42,760, experiencing a 2% decrease over the past 24 hours.

MakerDAO's asset diversity powers $103M revenue triumph over Lido in 2023

Key points

  • MakerDao became the leading decentralized finance protocol in terms of revenue for 2023, as reported by DefiLlama

  • While MakerDao lagged behind Lido Finance in total value locked, it has surpassed Lido in revenue - MakerDao's revenue for the year is $103 million, while Lido's is $60 million

News - In 2023, MakerDao distinguished itself as the leading DeFi protocol in terms of revenue, according to DefiLlama data. Its success surged due to the increased DAI stablecoin supply and its use of tangible assets like U.S. Treasury bills, taking advantage of rising interest rates.

Integration with Layer 2 solutions - MakerDAO made significant strides by integrating with various Layer 2 scaling solutions, which enhanced its transaction throughput and reduced gas fees for its users. 

Earlier in the year, MakerDAO fell behind Lido in TVL temporarily because of the growing Ethereum staking ahead of the expected Ethereum Shanghai Upgrade. In March, MakerDAO encountered difficulties when its DAI stablecoin fluctuated in value following an unexpected setback from Silicon Valley Bank, affecting its stabilization mechanism.

As the year progressed, MakerDAO’'s diverse assets, such as real estate and bonds, became significant sources of revenue. By October, its tokenized T-Bill offerings were particularly dominant, making up 52% of its revenue.

Chinese authorities bust $2.2 Billion crypto-based underground banking ring

Key points

  • The underground banks purchased virtual currencies and then sold them through overseas platforms to get the needed foreign currency

  • Xu Xiao, an inspector from the Qingdao Branch of the State Administration of Foreign Exchange, stated that the activity was illegal as it involved buying and selling from foreign exchange

News - Chinese authorities dismantled a clandestine $2.2 billion underground banking operation, using foreign virtual currency trading platforms to help clients evade China's capital controls. The crackdown was announced on December 24 through Chinese social media. Foreign exchange police had discovered an underground bank that exploited cryptocurrencies to bypass forex restrictions.

Xu Xiao, an inspector at the Qingdao Branch of the State Administration of Foreign Exchange, said that underground banks had acquired virtual currencies and later sold them through overseas platforms to obtain needed foreign currency. This action constituted an illegal buying and selling of foreign exchange.

China's $2.2B banking scheme - During the operation, investigators seized cryptocurrencies valued at $28,000, including Tether and Litecoin. The scheme had spanned over $2.2 billion across a network of more than a thousand bank accounts in 17 provinces and municipalities.

This action followed the 2016 imposition of strict foreign exchange regulations and the subsequent 2021 ban on cryptocurrencies in China. In March, reports said that Binance staff had helped Chinese customers bypass KYC procedures. Users in China were discovered falsely listing their location as Taiwan when accessing Binance.

Crypto scams uncovered

  • Recently, the U.S. FBI charged six Indians in a million-dollar cryptocurrency scam. These people conducted illegal business by using the darknet to convert Bitcoin or other cryptocurrencies into cash between July 2021 and September 2023.

  • Operating between 2014 and 2017, OneCoin was marketed as a revolutionary cryptocurrency by its founders. However, investigations revealed it was a Ponzi scheme that generated no actual blockchain or cryptocurrency. Its founders were indicted in the U.S., and the scheme defrauded investors of billions of dollars.

  • Canadian cryptocurrency exchange QuadrigaCX collapsed in 2019 after its CEO, Gerald Cotten, allegedly died unexpectedly in India, taking the passwords to the exchange's cold wallets with him. This led to the loss of approximately $190 million worth of cryptocurrency belonging to its customers.

Top 3 coins of the day

  • Chainlink's recent rally suggests a potential undervaluation of LINK, indicating strong user adoption and heightened network activity. 

  • There's a compelling argument that LINK might be undervalued, signaling potential upside for investors and suggesting that a breakout beyond $16.6 could be imminent.

What you should know - On the price front, LINK has been oscillating between $13.3 and $16.6. The $15 mark emerged as a crucial support level. Recent price data suggests a potential upward movement, with LINK anticipated to breach the $16.6 resistance. Despite LINK trading within a range, there were noticeable spikes in transaction volumes.

Avalanche (AVAX)

  • Avalanche has demonstrated a robust growth trajectory within the DeFi sector, as there were prominent projects and decentralized applications on Avalanche driving its TVL surge.

  • AVAX's recent price performance has been notably bullish, recording a growth of over 100% in just a month - a surge supported by a strong derivatives market demand.

What you should know - Avalanche experienced a remarkable surge in its price trajectory, increasing by over 100% in just 30 days. At press time, its trading price hovered around $44.33, boasting a market capitalization exceeding $16 billion. The leading indicator, however, raised alarms, showing that AVAX's Relative Strength Index was hovering in the overbought territory. A deeper dive into AVAX's daily chart suggested potential bearish undertones.

Cosmos (ATOM)

  • Despite a noteworthy drop in network activity and a recent 17% retracement in Cosmos prices, the bullish market structure and upward momentum suggested strong buyer control. 

  • The recent Bitcoin price drop to $42.1k has impacted ATOM, potentially leading to short-term fluctuations. 

What you should know - Between 12 and 18 December, the retracement led the coin's price to revisit the support level at $10.3. Upon reaching this support, ATOM prices rebounded swiftly, underscoring strong buyer sentiment. The OBV had also been on an upward trend since November, though it faced volatility due to sudden spikes in selling volume. Given ongoing trends, there is anticipation of ATOM making a short-term move towards $12.6. A further upward move in ATOM's price trajectory could see it reaching $12.9, with potential buying opportunities emerging for swing traders.

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