Day: March 11, 2023

Comparing decentralized ecological credential products bridging web2 and web3

With the web3 industry expanding, decentralized identity systems are beginning to gain traction. Since 2022, domain systems such as Ethereum Name Service (ENS) have become popular. This led to the establishment of the Web3.com project. Its flagship product, Web3ite Pass, is an ecological credential that links the web2 and web3 worlds. It is an NFT issued on Ethereum, adhering to the ERC721 standard.  The term “Web3ite” is a combination of “web3” and “website,” symbolizing the amalgamation of Web3 and traditional systems.  This article compares Web3ite Pass and ENS, examining various…

Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan

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Top Stories This Week Silicon Valley Bank shut down by California regulator, holding over $5 billion for prominent crypto VCs Silicon Valley Bank (SVB) was shut down by California’s financial watchdog on March 10 after announcing a significant sale of assets and stocks aimed at raising additional capital. The California watchdog appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver to protect insured deposits. However, the FDIC only insures up to $250,000 per depositor, per institution and per ownership category. The bank held over $5 billion in funds from…

Bank of England Shuts Down Silicon Valley Bank’s UK Branch After US Regulators Close Parent Company – Bitcoin News

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After U.S. regulators shut down Silicon Valley Bank (SVB) on Friday, the Bank of England has closed the company’s U.K.-based arm. The central bank explained that it intends to place the subsidiary into bank insolvency procedures. Fallout From SVB Failure Prompts BOE to Close U.K. Branch The ripple effect of the 16th largest bank in the United States failing has started to unwind after Silicon Valley Bank (SVB) was shut down by the U.S. Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation (DFPI). California’s…

NYAG says ethereum is security in KuCoin Lawsuit

New York Attorney General (NYAG) Letitia James, claimed in court that ethereum (ETH) is security and exchanges should register it before offering it for trading. The AG filed a lawsuit against the crypto exchange KuCoin for allowing investors to buy and sell ETH without registering with the state. ETH is a security, just like TerraUSD and LUNA – NYAG AG James stated that ETH is a security, just like TerraUSD (UST) and LUNA, since it is a, “speculative asset that relies on efforts of third-party developers to provide profit to…

Circle plans to cover missing liquidity in Silicon Valley Bank with corporate funds

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USD Coin (USDC) issuer Circle plans to use “corporate resources” to cover the shortfall on its reserves following Silicon Valley Bank’s shutdown, said the company in a statement on March 11.  According to Circle, USDC liquidity operations will “resume as normal when banks open on Monday morning in the United States,” enabling USDC redemption at 1:1 with the U.S. dollar. The announcement came after the stablecoin lost its $1 peg on March 11 to trade as low as $0.87 before slowly re-pegging at $0.97 at the time of publication. The stablecoin…

‘Fiat Is Fragile’ — Silicon Valley Bank’s Collapse Sparks Finger-Pointing and Concerns of Contagion – Bitcoin News

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Silicon Valley Bank (SVB) has become the center of attention after its collapse prompted the U.S. Federal Deposit Insurance Corporation (FDIC) to shut the bank down on Friday. It was the largest U.S. bank failure since 2008, and various alleged catalysts have been pointed to. Some believe venture capitalists caused a bank run, while others blame the U.S. Federal Reserve’s rate hikes. Economist and gold bug Peter Schiff said on Friday that the U.S. banking system would experience more trouble ahead. He and several speculators believe that these financial institutions…

Aave freezes stablecoin trading on Avalanche V3 as activity surges on CEXs

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Lending protocol Aave has frozen stablecoins trading and set Loan-to-Value (LTV) ratio to zero in response to recent price volatility on stablecoins after the USD Coin (USDC) depegged on March 11.  According to the Aave’s governance forum, the trading freeze follows an analysis from DeFi’s risk manager company Gauntlet, recommending that all V2 and V3 markets should be temporarily paused. “Setting LTV to 0 definitely helps everywhere, but on the Avalanche v3 Pool, given that cross-chain infrastructure doesn’t cover Avalanche, the Aave Guardian can act immediately. Setting LTV to 0…