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Binance’s CZ Destroys Bloomberg & WSJ Over ‘Baseless’ FUD Attacks

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Binance CEO CZ has slammed both the Wall Street Journal (WSJ) and Bloomberg for publishing “baseless hit pieces” against him. He also accused the media platforms of spreading “FUD” (Fear, Uncertainty, and Doubt).

At first, he takes on Bloomberg’s recent article, whose news piece, in their own admissions, lacked material and was speculative.

“It’s not clear what stage the discussions have reached or whether they’ll result in any transactions or ventures. “The substance of the meeting with Zhao isn’t clear”. They basically admitted that their whole article is purely imaginary. Is this what “news” has become?”

This isn’t the first time CZ clashed with Bloomberg. Back in 2022, the Binance founder sued the media house for labeling his activities as a Ponzi scheme. While Bloomberg issued an apology, Zhao emphasized that it allegedly posted the message on their HK corporate website instead of the main news platform.

This, per him, was intentionally done to restrict its visibility. He also pointed out that Bloomberg has continued to publish false information since then.

No WLFI Deal, No Pardon Talks: Binance’s CZ Denies WSJ Claims.

Next in his line of fire was WSJ, whose recent report of CZ’s business dealings with Trump’s crypto initiative WLFI created quite a stir. The Binance ex CEO has vehemently denied any such business dealings, accusing WSF of “trying to create a story”.

Trump’s WLFI is gaining traction due to its recent $550 million token sale. There also have been reports of the crypto firm courting blockchains to participate in “token swap” deals.

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Source: Evan Luthra

Regarding granting pardons, WSJ reportedly asked several of CZ’s close aides if he made some such deal with the President. He once again denied having any discussions about a pardon, although he acknowledges that any convicted felon would welcome one.

CZ suggests that the WSJ article might be politically motivated, aimed at attacking the former President and the cryptocurrency industry. Despite the negative media attention, CZ reiterates his commitment to promoting cryptocurrency globally, including in the United States.

Ripple Executives And XRP Legal Team Criticise SEC’s Crypto Regulations

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In a bold condemnation of the U.S. Securities and Exchange Commission (SEC), Chris Larsen, the Executive Chairman of Ripple, and legal representatives for XRP have taken a strong stance against the regulatory body’s aggressive approach to overseeing the cryptocurrency sphere. Federal judges have openly questioned the SEC’s strategies, branding them as “arbitrary and capricious” during recent legal skirmishes.

Chris Larsen, the prominent figurehead of Ripple, boldly opposed the SEC’s strategy of enforcing regulation through punitive actions today. He highlighted the shifting tide favoring the cryptocurrency industry, with courts growing reluctant to endorse the SEC’s corrective measures. In a heartfelt appeal to the U.S. Congress, Larsen implored them to step in and end what he characterized as senseless lawsuits instigated by the SEC.

In the crypto sphere, XRP lawyer Bill Morgan joined the chorus, condemning the SEC’s persistent appeals despite a series of courtroom defeats. Morgan criticized the SEC’s approach, while judges in the Grayscale lawsuit called their claims erratic, and Judge Netburn, overseeing the Ripple case, deemed their positions hypocritical.

Ripple’s Confidence Amid SEC Regulatory Uncertainty

Despite the ongoing legal disputes, Ripple’s leadership remains optimistic about its chances against the SEC. Their argument centers around the SEC’s lack of clarity on the reasons for their lawsuits and their failure to specify whether the existing regulatory framework is adequate for supervising the cryptocurrency industry.

In an interview on Bloomberg on September 6, Chris Larsen didn’t hold back in assigning blame to the U.S. government and the SEC for their perceived hostile stance. He argued that their policies were hindering San Francisco’s aspirations to become the “blockchain capital of the world.”

Amid Regulatory Headwinds, XRP Sees Minor Downturn Today. XRP dipped by 0.42% over the past 24 hours, trading at $0.4988. Its daily range saw a low of $0.493 and a high of $0.503. As the crypto space faces heightened regulatory scrutiny, the ongoing Ripple-SEC clash remains a focal point, casting uncertainty over XRP and broader crypto regulatory matters

Related Reading:| Ripple’s Bold XRP Moves Amidst Market Flux Raise Questions

XRP ETF Hurdles, Analyst Reveals Key Conditions For Approval

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James Seyffart, a seasoned ETF analyst from Bloomberg, illuminated the innovative potential of the looming advent of an XRP exchange-traded fund (ETF) during a fresh installment of Tony Edward’s forward-thinking Thinking Crypto Podcast. However, Seyffart’s revelations demand navigation through an intricate web of prerequisites before the broader crypto community can witness an XRP ETF’s actualization.

Seyffart’s analysis hinges on pivotal conditions that form the bedrock of an XRP ETF’s feasibility. At the forefront stands the necessity for the Chicago Mercantile Exchange (CME), a heavyweight in derivatives trading, to list Ripple futures. According to Seyffart, this strategic move would pave the way for ETF approval, as Ripple futures contracts on CME would streamline the regulatory green light for an XRP futures ETF.

Central to Seyffart’s argument is the prerequisite of an underlying asset. He underscores that an ETF demands a robust asset to anchor its value, and in this case, Ripple’s potential presence on the derivative exchange would bridge this requirement. Seyffart dispels hopes of a Ripple spot ETF gaining traction within the crypto community.

Seyffart’s Analysis Of SEC And XRP ETF

This revelation comes from Seyffart’s earlier observation that the Securities and Exchange Commission (SEC) remains restrained from endorsing a Ripple ETF. Seyffart anchors his stance on the present regulatory infrastructure’s inadequacy to accommodate the nuances of an ETF, a point further emphasized during the podcast.

Seyffart applies a broader lens to the issue, highlighting a persistent tussle that can only be resolved through legislative intervention. He asserts that the regulatory uncertainty will persist unless the US Congress enacts cryptocurrency-specific laws, causing an impasse.

The crux of Seyffart’s proposition lies in regulatory clarity. He contends that well-defined laws about cryptocurrencies would streamline listing Ripple futures on exchanges like CME, paving a more straightforward path toward ultimate SEC ETF approval.

In an intriguing twist, Seyffart brings an unexpected perspective – the demand for an XRP ETF remains minimal. With market interest largely absent, Seyffart notes that ETF issuers lack the impetus to initiate moves toward an XRP ETF.

In essence, Seyffart’s insights provide a comprehensive panorama of the multifaceted aspects that govern the prospects of an XRP ETF. Regulatory amendments, market demand, and strategic steps must converge to transform this prospect from the drawing board to the trading floor.

Related Reading:| Ripple Wins Legal Battle Against a16z Over XRP Status

Former Celsius Network CEO Arrested Following Securities Fraud Accusations

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Bloomberg has reported the arrest of Alex Mashinsky, the former CEO of Celsius Network, on charges of securities fraud. The arrest follows closely on the heels of the U.S. Securities and Exchange Commission (SEC) filing a lawsuit against both Celsius Network and Mashinsky himself.

Celsius Network Faces Legal Troubles

The scrutiny surrounding Mashinsky and Celsius Network began when the company filed for bankruptcy in July 2022 after suffering significant losses of billions of dollars. In a related matter, Bloomberg reported that the Commodity Futures Trading Commission (CFTC) was also preparing to initiate legal action against Mashinsky.

The allegations against Mashinsky include the claim that he falsely represented Celsius as being in a robust financial position despite substantial losses resulting from risky crypto-lending investments. Mashinsky stepped down from his position as CEO in September 2022. The recent arrest and the SEC’s lawsuit represent the latest developments in a saga that has sent shockwaves through the cryptocurrency industry.

According to an anonymous source, the arrest occurred on Thursday morning, and the Securities and Exchange Commission also filed a lawsuit against Mashinsky and the company on the same day, as indicated by court records.

Celsius Network was among the high-profile crypto firms that experienced a collapse last year. The company gained popularity by offering high-interest rates on digital-asset deposits. However, following the collapse of the TerraUSD stablecoin and a downturn in the digital-asset markets, Celsius Network faced a substantial deficit in its balance sheet, leaving it unable to meet the surge in customer withdrawal requests.

Related Reading: | Celsius: Federal Lawsuit Looms Over Crypto Lender After CFTC Findings

Ethereum Gains Favor: Smart Money Prefers ETH Over Bitcoin, Bloomberg

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Ethereum (ETH) has witnessed substantial support from institutional investors who played a significant role in propelling the Bitcoin rally of 2021. Recognizing the potential use cases of cryptocurrencies in the future, institutional investors like JPMorgan, Ark Invest, MicroStrategy, Tesla, and Andreessen Horowitz, among others, embraced Bitcoin and other digital assets. Interestingly, these institutional investors are now displaying a greater preference for Ethereum over Bitcoin, indicating a shift in their investment focus.

Ethereum Gains Institutional Investor Preference

As the Ethereum Merge and Shanghai upgrade occurs, the narrative surrounding Ethereum surpassing Bitcoin gains further momentum. Traders anticipate comparatively smaller fluctuations in Ethereum compared to Bitcoin soon.

The volatility index of ETH over 30 days is currently lower than that of Bitcoin. Additionally, the historical volatility of Ether relative to Bitcoin over 180 days has experienced a significant decline since 2020, as reported by Bloomberg.

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 Source: Bloomberg

Due to the lower volatility observed, institutional investors are finding increased interest in investing in ETH rather than BTC. Lower volatility tends to allow institutional investors to allocate more capital toward cryptocurrencies. Furthermore, long-term investors are more inclined to expand their exposure to ETH.

The implied volatility indexes of Bitcoin and Ether are derived from options pricing. While both indexes experienced a decline from their recent peaks in March, the Ethereum index exhibited a more significant drop.

According to Richard Galvin, co-founder of Digital Asset Capital Management, implementing the Shanghai upgrade in April is expected to increase ETH staking yields, subsequently reducing volatility. However, the U.S. Securities and Exchange Commission (SEC) considers Ethereum a security. SEC Chair Gary Gensler believes that Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism has transformed it into a security.

At the same time, the Bitcoin blockchain is influenced by Bitcoin ordinals, non-fungible tokens (NFTs), and meme coins. Additionally, the correlation between the prices of Bitcoin and Ethereum has reached its lowest point since 2021.

ETH and BTC Price Movement

ETH maintains its trading position above $1800, defying the influence of numerous macro factors, regulatory challenges, and the imminent US debt ceiling crisis that has significantly affected the global market. The price of ETH stands at $1818, exhibiting a 0.16% increase in the past 24 hours.

BTC faces the potential risk of dropping below the $25,000 mark. Within the last 24 hours, the price of BTC has experienced a 0.15% decline, with the lowest and highest points recorded at $26,549 and $26,986, respectively.

Related Reading: | Michael Saylor Highlights Bitcoin Ordinals’ Role in MicroStrategy’s App Development Vision |

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Source: Tradingview.com

FTX Ex-CEO’s Meetings With White House Aides Before Collapse

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Bloomberg reported on December 29th that before his company folded, Sam Bankman-Fried, the former CEO of FTX, met with senior White House officials at least four times to influence Washington’s crypto policy.

The most recent one was in September when SBF met with Mr. Steve Ricchetti, one of President Joe Biden’s key aides. This information was disclosed by White House officials aware of the situation. 

In earlier White House visitor log entries, FTX’s Former CEO had at least three other meetings. Officials have verified that they took place on April 22nd and May 12th, with Mr. Ricchetti and on May 13th, another senior Biden assistant, Mr. Bruce Reed.

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Source: White House 2022 visitor logs

According to Bloomberg’s report, officials said the final meeting was only one, despite the logs recording two consecutive sessions. 

Bankman-Fried’s brother Gabriel is recorded in a March meeting of his own and then took part in the May 13th session for a total of at least five this year that involved one or both of the brothers.

FTX Ties To Washington Comes Under Scrutiny

An official stated that Mr. Gabriel’s sessions at the White House were on broad discussions of the cryptocurrency market and exchanges as well as pandemic prevention to the charity he runs, Guarding Against Pandemics.

Bloomberg’s report claimed that “FTX’s ties to Washington have come under scrutiny since the exchange’s collapse.” The Democratic Party’s second-largest individual donor in the 2022 election cycle was SBF, which contributed millions to the party.

However, under the condition of anonymity, a source with knowledge of the meetings claimed that politics was not brought up at the White House meetings.

Formerly a fixture in Washington, FTX’s former CEO is currently being prosecuted for his part in the collapse of his crypto enterprise. He often traveled to Washington, D.C., while residing in the Bahamas, giving testimony to Congress and meeting with the SEC, CFTC, and White House representatives.

He frequently pushed for more regulation of the cryptocurrency industry and praised himself and his businesses as moral players. However, US prosecutors now present a radically different image, charging a variety of misdeeds:

including allegedly conspiring with others to use corporate money and shadow donors for political contributions and misusing billions of dollars of customers’ funds lent to FTX’s sister company, Alameda Research

Related Reading |  Charles Hoskinson Drops a Tweet on Recent Misinformation About Cardano

FTX Spent $84 Million To Acquire Blockfolio, Almost Entirely In FTT Tokens

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Financial records obtained by Bloomberg News show that the bankrupt crypto exchange FTX used a token it created to pay for the acquisition of the trading platform Blockfolio. 

Bloomberg reported that one of the biggest crypto purchases at the time, FTX spent over $84 million to acquire the bulk of Blockfolio in 2020. Of that amount, 94% was paid in FTX’s FTT tokens.

Although it was widely reported at the time that the exchange made the payment with a combination of cash, cryptocurrency, and equity, the financial specifics of FTX’s acquisition of Blockfolio were previously unknown.

However, unreported information provides insight into the former FTX CEO Sam Bankman- Fried’s “appetite for whimsical financial engineering” and an early desire to acquire clients through significant acquisitions.

According to the financial filings, the transaction valued Blockfolio at roughly $160 million and provided the exchange a 52% stock share with the option to purchase the remaining 48% within two years. 

FTT Plays Starring Role In FTX’s Demise

According to Bloomberg’s report, the FTT token was a major factor in the exchange’s downfall. After CoinDesk revealed that the exchange’s native token made up a sizeable chunk of Alameda’s balance sheet and competitor Binance CEO C.Z announced intentions to sell substantial amounts of it, the weeks-long controversy began.

However, Bloomberg’s news came under the spotlight after the U.S. SEC declared the exchange’s token, FTT, to be a security and that FTX used the funds raised from the FTT token sale to support its commercial activities.

The SEC stated in a lawsuit against Caroline Ellison, the former CEO of sibling trading company Alameda, and Gary Wang, a co-founder of FTX, that the huge token distribution to FTX encouraged the management team of the exchange to take actions to enhance user traffic to the trading platform, which in turn increased demand for and raised the trading price of the FTT token.

The lawsuit stated that In order to manipulate the price of FTT, Ellison followed SBF’s orders and directed Alameda to buy a significant amount of the commodity on the open market.

Ellison and Alameda were able to borrow more money because of this manipulative conduct, which also concealed Alameda’s genuine risk exposure. This manipulation served the Defendants’ strategy.

Related Reading |  Bitcoin’s Accumulation By Retail Investors Peaked By 17% In 2022

Blockstream Eyes Another Funding Round – This Time At A Lower Valuation “Below $1B”

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Blockstream, a crypto infrastructure company, has set up an investment round that will raise “fresh funds at a lower valuation” than its previous one, which is about below $1 billion, as reported by Bloomberg.

A source with knowledge of the situation who wanted to remain anonymous because they were talking about private information revealed the valuation amount. “One of the people said the figure may change.”

In terms of blockchain infrastructure, Blockstream is at the top of the world rankings. Liquid Network, a sidechain developed by it, allows financial institutions to tokenize assets while facilitating quicker Bitcoin payments. Additionally, the colocation of Bitcoin mining operations is made possible by Blockstream Mining’s enterprise-class mining facilities.

The 2014-founded business with headquarters in Montreal is engaged in a collaborative initiative with Jack Dorsey’s Block Inc. Reid Hoffman, a co-founder of LinkedIn has also backed Blockstreamm according to Bloomberg’s report.

However, the lower valuation funding move was prompted by the closure of the FTX Exchange, which made it difficult for digital asset firms to find investors willing to support them financially. However, when the company obtained $210 million from investors, including Baillie Gifford and iFinex, in August 2021, its worth was $3.2 billion; today, it is nearly 70% lower.

The investment was received at the same time that Blockstream hired the core team to develop its ASIC division and purchased Spondoolies’ intellectual property(a producer of Bitcoin mining equipment).

Blockstream CEO Says, The Fund Is For Hosting Crypto Miners

Adam Back, the CEO of Blockstream, declined to respond to Blomberg about the amount of the investment round or value but stated that it would be used to increase the capacity to host cryptocurrency miners.

As miners sought large-scale hosting, he noted that they quickly sold out of all of their capacity and had a massive backlog of both current and potential clients. 

The report asserts that many cryptocurrency miners have been hard hit by the drop in the value of Bitcoin and other tokens, as well as the rise in electricity prices, which has resulted in loan defaults and the confiscation of computing equipment.

The CEO of Blockstream said:

While Bitcoin price and mining profitability are down, hosting rates have risen over the last quarters, and our mining services are a rapidly expanding, high-margin enterprise business for us.

The crypto industry is struggling to recover from this year’s downturn and is beset by worries about future contagion following FTX’s collapse, making venture finance more difficult to come by.

Not just Blockstream was thinking about flat or lower fundraising rounds, but so were companies like Amber Group and Blockchain.com.The previous record-breaking rate of investment into blockchain firms has been replaced by far colder circumstances during the crypto winter.

Related Reading | Bitcoin And Ethereum ETFs Filed By Hong Kong’s Three AUMs

Crypto M&A Forecast For 2021 Strong Despite Dull Price Action

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The crypto market dropped to a $1.12 trillion market cap, at the time of writing. Despite this, 2021 has been a watershed moment year for the whole industry even as the staggering bull rally has come to a halt.

Many anticipated a bullish turn of events for Bitcoin and the altcoins during the weekend. However, the prices continued to remain in a consolidation mode and were far below the record-breaking numbers.

As the crypto industry shrugged off the craziness of the bull run, several companies have flourished this season. According to reports, M&A activity figures soared like never before as pandemic grappled the space in 2020.

M&A Activity in Crypto Industry To Soar Higher In 2021

Bloomberg revealed that the total value of mergers and acquisitions in the digital asset world more than doubled last year to $1.1 billion from 2019. The average deal size surged to $52.7 million from $19.2 million. With respect to demographics, it was Europe and Asia that saw a greater percentage of activity taking place.

Fundraising in the industry, on the other hand, saw a massive rise of 33% in overall value from 2019. It also said that while merger and acquisition activity in the industry was at its peak last year, the figure is headed to continue again this year and is likely to climb higher.

On a similar note, Henri Arslanian, PwC global cryptocurrency leader, was reportedly quoted saying,

“[2021].. is already on track to significantly surpass it from every single metric”

The impetus for a surge in activity is greater awareness of the asset class as well as blockchain technology. This can be attributed to the fact that the cryptocurrency market has expanded considerably in the first quarter of 2021 alone when compared to last year. Bitcoin surged ninefold in the last year all thanks to the mainstream embrace and interest from large investors and endorsements. All this and more has catapulted the asset class’s growth.

Bitcoin Fundamentals Making a Case for Resting Bull-Run: Bloomberg

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After amassing a decline of 14 percent in June, it’s been hard to predict a bitcoin bull’s run over the past few weeks. July began the second half of 2020 and early price movements indicated positive signs for the largest digital asset. On 6 July Bitcoin breached $9333 and at press time the asset was valued at $9,183.75.

Despite market uncertainty, a recent report by Bloomberg Intelligence suggested that Bitcoin might be sustaining a “resting bull run” behind the covers. Some of the main indicators discussed in the report were with respect to on-chain addresses, investor flows, and declining volatility.

Bitcoin volatility approaches a 3-year low index

According to Bloomberg Intelligence, Bitcoin has recently plummeted to its lowest level of volatility compared to crude oil, suggesting that BTC could slowly create organic demand for the asset while slowly attenuating to mainstream investment markets. The social-distancing enabled environment has played a part in bitcoin’s strength as investors have gradually seeking exposure to the best performing asset of the past decade.

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With Bitcoin gaining higher on risk basis vs stocks, the asset has currently attained an upper hand on NASDAQ based on historical volatility. The report stated,

“The crypto’s 260-day volatility measure is the lowest ever vs. the stock gauge. Our graphic depicts Bitcoin volatility is about 2x Nasdaq’s. It was closer to 7x when the crypto price and index first crossed paths in 2017. Bitcoin volatility typically increases when its price rises, and the relationship is normally inverse for equities.”

Bitcoin-Gold Ratio; History repeating itself?

With respect to Gold, Bitcoin’s decline in volatility is a direct indication that that digital asset is becoming less risky in the market. Currently hitting a new low in 2020, the above graph suggests that the last time BTC volatility remained at such low levels, the asset went on to register its largest bull run in history in 2017. Since then, the annual Bitcoin-risk metric has dropped below 70 percent from just above 100 percent.

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Now, a long-term drop in volatility across the past 3 years might suggest that BTC is currently poised for a trend reversal but Gold’s volatility is currently doing the opposite, with its annual risk measure reverting higher from a two-decade low in 2019.

With the price struggling to break long-term resistance at $10,000 since May, BTC will eventually break above the threshold at some point in time. However, it is imperative for the bull run to be based on strong fundamentals if the impending rally is aiming to embrace another all-time-high.