BTC is currently trading around $27,000 and ETH around $1,750. Notable gainers in the last 24 hours are FLR, GMX, and XRP. The global crypto market cap is ~$1.18T, down ~2.2% over the last day. DeFi Total Value Locked is ~$48b and BTC dominance is around 47%.
Traditional asset classes are little changed while crypto is down following concerning new regulatory developments. Most prominently, Binance, the industry’s leading spot and derivatives exchange by volume, was sued by the CFTC for unregistered trading activity in the U.S. The suit made various other allegations as well, including that it failed to develop an effective AML program. Binance referred to the lawsuit as “unexpected and disappointing,” and Binance CEO CZ added that the complaint “appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint.” Lastly, highlighting the confused state of regulatory affairs, the CFTC continues to refer to ETH and various other digital assets as commodities despite the SEC & DoJ alleging them to be securities.
In other tech news, Alibaba announced a historic restructuring of its business. The company will split into six main business lines with distinct CEOs heading each unit, and each unit will individually raise capital or IPO as deemed necessary.
Other notable news includes: Polygon’s zkEVM went live on mainnet, and Vitalik Buterin made the first transaction on live stream inserting an onchain message paralleling commentary from the moon landing; Fidelity is building out a crypto research team; a judge put Voyager’s sale to Binance US on hold pending government appeal; a judge ruled that a DeFi protocol is custodial if a single developer holds the upgrade key, but crypto lawyers cautioned that the ruling could have implications for protocols using multisigs too; dYdX launched its private testnet on Cosmos; THORChain’s mainnet was halted amid new vulnerability reports; Bitcoin mining hashrate has exploded to a record high; the Euler exploiter apologized in an onchain message as he continued to return funds over a series of a transactions; and, SBF was banned from using online messengers under terms of his new bail agreement.
Matt Kunke, Research Analyst | Twitter, Telegram, LinkedIn
Brian Rudick, Senior Strategist | Twitter, Telegram, LinkedIn
This material is provided by GSR (the “Firm”) solely for informational purposes, is intended only for sophisticated, institutional investors and does not constitute an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation, to enter into or conclude any transaction (whether on the terms shown or otherwise), or to provide investment services in any state or country where such an offer or solicitation or provision would be illegal. The Firm is not and does not act as an advisor or fiduciary in providing this material.
This material is not a research report, and not subject to any of the independence and disclosure standards applicable to research reports prepared pursuant to FINRA or CFTC research rules. This material is not independent of the Firm’s proprietary interests, which may conflict with the interests of any counterparty of the Firm. The Firm trades instruments discussed in this material for its own account, may trade contrary to the views expressed in this material, and may have positions in other related instruments.
Information contained herein is based on sources considered to be reliable, but is not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made by the author(s) as of the date of publication, and are subject to change without notice. Trading and investing in digital assets involves significant risks including price volatility and illiquidity and may not be suitable for all investors. The Firm is not liable whatsoever for any direct or consequential loss arising from the use of this material. Copyright of this material belongs to GSR. Neither this material nor any copy thereof may be taken, reproduced or redistributed, directly or indirectly, without prior written permission of GSR.