Crypto Guides, Knowledge & Insights

Ripple’s Legal Brawl With SEC Could Cost About $200M

During a fireside chat at the Dubai Fintech Summit, Brad Garlinghouse, the CEO of Ripple, shared that the legal battle with the Securities and Exchange Commission (SEC) could have cost the company around $200 million had they gone through with defending themselves. This information was revealed in the context of a discussion about cryptocurrency regulation in the United States.　　According to a statement made by Garlinghouse, the United States is falling behind other nations in terms of regulating cryptocurrencies. He also alleged that the U.S. government is prioritizing politics over policy. However, he commended the United Arab Emirates (UAE) and the European Union (EU) for their advancements in establishing cryptocurrency regulations. Garlinghouse made these remarks during a fireside chat at the Dubai Fintech Summit.　　The Markets in Crypto Assets (MiCA) legislation for Europe is currently undergoing due processes for its official launch. According to WikiBIT, the MiCA bill appears to be the most sophisticated and comprehensive set of rules for crypto markets currently available. However, the law has not yet come into effect for crypto businesses and the exact date of implementation remains uncertain.　　Ripple CEO Urges the U.S. to Define Crypto Regulation　　In his recent statements, Garlinghouse has advised crypto entrepreneurs not to

2023-05-09Deep Dive

New York Proposes "Landmark" Crypto Law For Strongest US Regulations

New York State Attorney General Letitia James has proposed “the strongest and most comprehensive set of cryptocurrency regulations in the United States.” The “Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act,” a proposed piece of legislation, seeks to safeguard consumers, investors, and the general economy while bringing law and order to the multibillion-dollar cryptocurrency industry.　　The proposed measure intends to promote transparency, remove conflicts of interest, and provide adequate investor safeguards in conformity with current financial sector legislation. It would prohibit people from holding the same businesses, such as brokerages and tokens, and independent public audits of cryptocurrency exchanges would be necessary to remove conflicts of interest.　　The proposal would also broaden the New York State Department of Financial Services (DFS) regulatory power over digital assets and increase investor safety by enacting and codifying “know-your-customer” (KYC) standards. Furthermore, according to federal law, the term “stablecoin” may not be used to describe or advertise digital assets that are not 1:1 backed by US money or other high-quality liquid assets.　　Furthermore, under the federal Electronic Fund Transfer Act, bitcoin platforms would be obligated to perform consumer obligations comparable to banks, including paying out to clients who have been victims of fraud. The bill would give

2023-05-08Deep Dive

Coinbase ambitiously aims to be a crypto bank.

Sharing with the investment community, Mr. Asheesh Birla, former Director of RippleNet, said that Coinbase has ambitions to surpass the status of an ordinary exchange. Specifically, billionaire Brian Armstrongs company wants to be a crypto bank.　　According to Birla, Coinbase can attract investors by building a crypto-economy system. In it, people can access digital assets more transparently and easily. To do this, Coinbase will have a skillful way of dealing with US authorities and an international banking network.　　Coinbase has ambitions to become a crypto bank. Coinbase has ambitions to become a crypto bank.　　According to Coinbases Q1/2023 financial report, interest income and custody fees make up the majority of the companys revenue. Asheesh Birla emphasized that the interest in depositing stablecoin USDC alone helped Coinbase earn $199 million, or 18% of total revenue.　　Besides, Coinbase also makes more money from large institutions instead of retail investors. Statistics show that revenue from institutional investors increased by 67% over the same period last year.　　From the two factors above, experts assess how the Coinbase exchange is more and more like a bank.

2023-05-08Deep Dive

Breaking News May 8: Binance suddenly stopped supporting Bitcoin withdrawals

Recently, the Bitcoin Blockchain network was overloaded, causing Binance, the worlds largest cryptocurrency exchange, to stop withdrawing Bitcoin from the exchange.　　Binance stops supporting Bitcoin withdrawals　　Around 9:30 p.m. on the evening of May 7 (GMT +8), the Binance exchange suddenly announced blocking the feature of withdrawing Bitcoin from the platform. According to Binance, this decision came from the Bitcoin Blockchain being overloaded, not the exchanges own problem.　　“We are temporarily closing the Bitcoin withdrawal portal because the Bitcoin network is experiencing congestion. The Binance team is working on fixing the issue and will reopen the withdrawal portal as soon as possible,” posted on Binances official Twitter channel.　　Binance exchange temporarily closed the Bitcoin withdrawal gate.　　After about 2 hours, the congestion was resolved and the withdrawal gate was opened. However, experts assess that this may not be a problem unique to the Bitcoin Blockchain network as Binance explains. In fact, not long before the time of congestion, Binance was trading a very large amount of Bitcoin.　　Specifically, according to CryptoQuant Alert, there were 10,035.46 Bitcoins put on the exchange (about 290 million USD), and 117,459 Bitcoins withdrawn from the exchange (about 3.372 billion USD). It is not excluded that the migration comes from Binance changing

2023-05-08Deep Dive

What is special about the SEC's Wells Notice that makes many crypto companies afraid?

In this article, WikiBit will introduce Wells Notice, the SECs secret weapon that makes crypto companies “fear”.　　What is Wells Notice？ What does it mean to investors？　　The Wells Notice is an official notice from the US Securities and Exchange Commission (SEC), indicating that the regulator is considering taking enforcement action against an individual or entity. Wells Notice is sent by the SEC after it completes an investigation and discovers evidence of a possible violation of securities laws.　　Wells Notice is named for Mr. John Wells, a senior adviser to the SEC from 1972 to 1976. Mr. Wells helped create the processes used by the SEC. These processes are legal actions to combat personal and business financial misconduct.　　Wells Notice, the SECs official notice that 1 individual or organization is accused of violating securities laws.　　When a business receives a Wells Notice, the price of the companys stock and other securities can plummet as investors worry about regulatory actions by the SEC. They may decide to stop investing in the business, which will cause economic damage.　　To deal with Wells Notice, individuals and organizations will have to worry about paying fines or worse, sanctions imposed by the SEC. Depending on the severity of the violations, the

2023-05-08Deep Dive

Binance Lifts Block on Bitcoin Withdrawals After Processing Fees Surge

Binance, the worlds largest cryptocurrency exchange, recently lifted the block on Bitcoin (BTC) withdrawals after several hours of delay. The halt, which occurred on Monday, was due to a surge in processing fees and high volumes of pending transactions. This caused the exchange to raise the fees to ensure that mining pools would pick up the backlog of transactions.　　Bitcoin suffered a slight dip, down about 1% to $28,162, after the block was put in place, but it quickly recovered as the situation resolved. Binance said that it had not anticipated the recent surge in Bitcoin (BTC) network gas fees, leading to a backlog of transactions.　　Gas fees are the payments made to crypto miners whose computing power processes transactions on the blockchain. During times of high network congestion, the gas fee required to process transactions may be large, particularly if the withdrawal amount is significant.　　Joshua Chu, the group chief risk officer at blockchain technology group XBE, Coinllectibles, and Marvion, commented on the situation, stating that more information is needed to understand what led to the large withdrawals.　　Binance suspended deposits and withdrawals in March due to technical issues, and it denied that there had been large outflows from the platform during this

2023-05-08Deep Dive

The Rise of PEPE Coin: A Reminder of the Volatile Nature of Cryptocurrency Investing

The crypto world is full of surprises, and one of the latest ones is the rise of pepecoin (PEPE). Introduced just weeks ago, the meme coin has now surpassed $1 billion in market capitalization, making millionaires out of some traders. Despite warnings about its potential as a fad that could end badly, the coins breakneck rally has led to huge profits for those who were undeterred.　　One example is a pseudonymous trader called dimethyltryptamine.eth, who bought trillions of PEPE tokens for just $263 three weeks ago. The trader has already sold several million dollars worth of tokens and still holds about $9 million of PEPE, according to the blockchain platform Arkham. This equates to an almost 5,000,000% return, which is a remarkable sum for any investment.　　PEPE is based on the “Pepe the Frog” meme, which has become a prominent symbol in cryptocurrency circles. The coins value has skyrocketed, with its market capitalization topping $1 billion in a couple of weeks. At one point, it was worth more than Arbitrums ARB, which is also among the hottest newly issued tokens of 2023, according to CoinGecko.　　However, analysts have raised concerns about the concentrated ownership of PEPE, with a handful of traders acquiring substantial

2023-05-08Deep Dive

Federal Government Approves the Use of Blockchain in Nigeria

By: Damian Okonkwo　　The Nigerian government has approved the implementation of the National Blockchain Policy, making it the latest African country to adopt the use of blockchain technology. This development was disclosed by the Minister of Communications and Digital Economy, Isa Pantami, at the end of the Wednesday cabinet meeting in Abuja last week.　　According to Pantami, the policy was developed in consultation with more than 50 institutions and personalities. This development equally marks the official institutionalization of Blockchain in Nigeria.　　A Blockchain is a distributed ledger technology that allows digital information to be shared and stored securely and transparently. It serves as a decentralized ledger system that enables peer-to-peer transactions without the need for intermediaries like banks.　　Blockchains are maintained by a network of computers, and each computer in the network has a copy of the entire blockchain. Blockchains are often used for secure and transparent transactions, such as in cryptocurrencies like Bitcoin and Ethereum. However, the technology has many other potential applications beyond financial transactions, including supply chain management, voting systems, and data sharing.　　The adoption of blockchain technology is expected to revolutionize various sectors of the Nigerian economy such as banking, healthcare, logistics, and real estate. It is also expected to enhance

2023-05-08Deep Dive

The Number Of Ethereum Wallets Holding More Than 1 Coin Hits A New 30-Day High

Following Shanghais execution last month, the network has shown that the majority of Ethereum aficionados are still keen to begin staking. The proof is that the number of addresses holding over 1 ETH has hit a new 30-day high.　　Glassnode data shows that the number of addresses holding more than 1 Ethereum reached 1,750,726, a new one-month high.　　ETHs price is currently trading at $1,890. However, a day earlier, the $2000 level was tested again.　　When the dust has cleared from Ethereum‘s historic Shanghai upgrade, it’s time to examine some of the main staking lessons. With the Shanghai update, Ethereum investors may finally withdraw their assets from the mainnet. Some have been expecting to do so since December 2020, when the staking option was first offered.　　For over a year, Ethereum pricing has struggled to close above a critical resistance level, and it is now trying to do so again after failing to do so earlier this month. This important psychological threshold is also linked to approximately 24% of the total circulating quantity of ETH, making a breach much more significant.　　PEPE, a new memecoin, has resulted in an increase in Ethereum active deposits, with traders transferring their winnings into ETH, possibly pushing the price

2023-05-07Deep Dive

35.8% of crypto projects stop updating information in 2023

According to researchers at Guerilla Buzza, companies are focusing on token sales and paying attention to short-term growth spurts instead of long-term ones, thus neglecting to prioritize a solid marketing platform.　　Among the top 10 crypto projects, BNB Chain is the project that updates the most blog posts with 59 articles posted this year. In 2nd place is Polygon with 36 posts followed by Cardano with 12 posts.　　The paper claims that their research method is “simple” but “labor-intensive”. First, the researchers manually checked the respective websites of the top 1,000 crypto projects to see if they had blogs. From there, they assess the number of articles published in recent years and check how many new blog posts have been published between the beginning of 2023 and the present.　　The number of articles by crypto projects.　　The report also shows that Medium is the most popular website chosen by projects to host blogs. However, experts say Medium is not the best platform for companies looking for long-term growth. Specifically, by relying on the Medium platform, companies are driving Mediums traffic and growth instead of their own.　　“Excellent SEO capabilities and high domain authority score are the criteria that make Medium the choice for crypto companies,

2023-05-07Deep Dive

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