Top Crypto Developments of 2023: From Presidential Stances To Major Bankruptcies
Summary:
This article recaps Cointelegraph's top stories of 2023, covering a range of topics from U.S. presidential candidates' views on Central Bank Digital Currencies (CBDCs), court rulings on crypto securities, potential bank failures, and ETF filings. The piece also details significant price wagers in the crypto world, discussing major legal actions involving cryptocurrencies and touching on intriguing developments in AI-led crypto trading. High-profile hacking incidents and the bankruptcy of key players in the crypto lending space also make the list, illustrating the dynamic nature of the crypto industry.
Dive into a recap of Cointelegraph's top stories of 2023, ranging from White House hopefuls promising to scrub Central Bank Digital Currencies (CBDCs) from the U.S., the court decision affirming XRP's lack of security status, to financial crashes and ETF submissions. These pieces echo the dynamic beat of the crypto universe in the past year, providing an overview of the themes that struck a chord with our audience.#1 U.S. Presidential candidate Ron DeSantis promises to outlaw CBDCs if he wins the presidency. U.S. aspirant to the presidency, Ron DeSantis, has re-emphasized his resistance to Central Bank Digital Currencies (CBDCs), committing to outlaw them in America if he becomes president. In his speech at the Family Leadership Summit on July 14th, DeSantis assured, “From the outset, we would permanently eliminate central bank digital currency in this country; it's over, gone." He previously approved a law in Florida banning federal and foreign CBDCs due to fears about power dynamics. While critics worry about privacy invasion, some view CBDCs as a tool for blockchain adoption. The U.S. Federal Reserve has made no immediate manoeuvres towards a digital dollar presently, but the dynamics may alter post the 2024 elections. CBDC initiatives have boomed worldwide, with over 100 countries investigating and over 39 nations executing pilots, proof-of-concepts or relevant schemes according to Cointelegraph's CBDC database.#2 Shocking Verdict: Judge decrees XRP is not a security in the SEC's legal stand-off with Ripple. On July 13th, the U.S. District Court in Southern New York awarded Ripple Labs a partial victory in the SEC's case dating back to 2020. Judge Analisa Torres decreed that XRP is not a security when traded on digital asset platforms but qualifies as one when sold to institutional investors. The SEC initially strived to limit Ripple's token offering due to its supposed unregistered security status. The case, still active since December 2020, saw a sudden escalation in the price of XRP, shooting from $0.45 to $0.61 minutes after the news broke out. At press time, the price of XRP is $0.63.#3 Nearly 190 US banks are vulnerable to failure, according to SVB analysis. A study spearheaded by economists after the collapse of Silicon Valley Bank (SVB) in March drew attention to the potential vulnerability of nearly 190 American banks towards possible runs. Rising interest rates, a significant proportion of uninsured deposits, and long-term asset losses were identified as threats to the banks' solidity. The study infers that if about half of the uninsured depositors decide to withdraw, approximately 190 banks could be under threat, putting up to $300 billion in insured deposits in jeopardy. #4 Laws from the SEC now classify 68 cryptocurrencies as securities. As a result of its multitude of lawsuits, the SEC has widened its definition of cryptocurrencies as securities to encompass a minimum of 68 digital assets. Powering this enhancement, the lawsuits lodged against Binance and Coinbase ushered 23 cryptocurrencies onto the SEC's list, totaling a market value surpassing $100 billion. Noticeable new entries include Binance Coin (BNB), Solana (SOL), Cardano (ADA), Polygon (MATIC), and Decentraland (MANA). SEC Chair Gary Gensler has remarked that every crypto "aside from Bitcoin" is under the agency's jurisdiction. This heightened legal scrutiny covers roughly 10% of the entire crypto market value, signaling the SEC's intensifying engagement in regulating the crypto sphere. #5 Ex-CTO of Coinbase bets $2M on the performance of Bitcoin. Former Chief Technology Officer of Coinbase, Balaji Srinivasan, wagered $2 million on the trajectory of Bitcoin (BTC) and projected it would hit $1 million within the span of 90 days spurred by surging inflation in America. The bet was placed on March 17, with Srinivasan pitting against a pseudonymous Twitter user, James Medlock. The terms stated a 40:1 odds scenario, with Medlock risking $1 million worth of USD Coin (USDC) and 1 Bitcoin (BTC) if Bitcoin failed to reach $1 million by June 17. Bitcoin did not hit the prospected price within that time frame.#6 Nasdaq trade clearing firm lists BlackRock’s Bitcoin ETF—Bloomberg analyst. BlackRock's proposed iShares Bitcoin ETF was listed on the Depository Trust & Clearing Corporation (DTCC), offering a glimmer of hope for the approval by the U.S. SEC. Bloomberg's ETF analyst, Eric Balchunas, stated that such listing could be an integral part of the process preceding the launch of a crypto ETF and saw it as a positive step towards SEC approval. The SEC has until Jan. 10, 2024, to decide on BlackRock's application. If given the green light, it could pave the way for other spot crypto ETFs.#7 Here’s how ChatGPT-4 splits $100 for crypto trading. Cointelegraph conducted an experiment with OpenAI’s GPT-4 version of artificial intelligence in crypto-trading, where it split $100 among various cryptocurrencies based on its learned insights. The AI suggested dispersing the funds as such: $50 to Bitcoin (BTC), $25 to Ethereum (ETH), $15 to Cosmos (ATOM), and $10 to "NFT and Web3-related projects." For its heavy tilt towards Bitcoin, it flagged the cryptocurrency’s reputation as a “safe-haven” amid economic instability and its potential trajectory towards $100,000.#8 Genesis reportedly gears up for bankruptcy filing. On Jan. 18, reports emerged that Genesis Global Capital, a subsidiary of Digital Currency Group engaged in Crypto lending, was gearing up for bankruptcy owing to liquidity crunches. This bankruptcy filing was triggered by the U.S. SEC's charges against Genesis and crypto exchange Gemini for offering unregistered securities via the Gemini “Earn” program. Gemini's co-founder, Cameron Winklevoss, claimed Genesis owed the exchange $900 million. Moreover, Genesis faced liquidity challenges related to the failure of Three Arrows Capital and FTX's bankruptcy, where Genesis had nearly $175 million.#9 Mark Cuban suffers a loss of $870K due to a hot wallet hack. In September, business tycoon Mark Cuban reportedly lost close to $900,000 in crypto from one of his hot wallets. Blockchain attendees detected the hack, with assets such as USD Coin (USDC), Tether (USDT), and Lido Staked Ether (stETH) being withdrawn within a 10-minute span. Cuban confirmed the hack yet expressed uncertainty about its modus operandi. This isn't the first time Cuban has encountered losses in the crypto market, previously suffering from a "rug pull" in June 2021.#10 Co-creator of ONFO coin and 'Bitcoin Millionaire' found dead after being reported missing. Dr. John Forsyth, co-founder of the crypto project ONFO coin, was discovered dead with a gunshot wound approximately a week after he was declared missing. Forsyth, an emergency room doctor and crypto enthusiast, was reported missing on May 21, prompting concerns from his family. On May 30, his body was discovered less than a mile away from the hospital where he was employed. Forsyth had co-founded ONFO coin in 2020, a referral-based crypto project with his brother, Richard. Magazine: DeFi's Billion-dollar Secret - The Insiders Behind The Hacks
Published At
12/26/2023 4:53:02 PM
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