Nonprofit organization Algorand Foundation lost access to $35 million in USDC stablecoin, which it placed with the Singapore-based lending firm Hodlnaut crypto. This is reported on the organization’s official website.
The claimed amount is 3% of all assets of the Algorand Foundation. Despite the loss of access, the organization does not believe the incident will cause liquidity problems.
“As part of the organization’s mission, we sometimes invest some of our excess treasury capital to generate revenue to grow the Algorand ecosystem, and these funds were invested for that purpose,” the organization said.
The financial terms of Hodlnaut’s use remain unknown, but the organization said it used short-term deposits from the bankrupt firm. The Algorand Foundation is now working on legal efforts to recover the funds, according to the announcement.
Notably, Hodlnaut is not the only company in which the Algorand Foundation has lost money. For example, the organization is also listed as a creditor of another troubled firm, Three Arrows Capital, but the extent of the losses there is not yet known.
Recall that Hodlnaut stopped services to clients in early August, citing the need to “stabilize liquidity.” The company is still unable to give an exact date for resuming cryptocurrency withdrawals.
In late August, a court ruled that Hodlnaut will now be managed by interim executives from consulting firm EY Corporate Advisors. The company, however, insisted that an employee of another consulting firm, Kairos Corporate Advisory, take over management of the firm.
Earlier, we reported that the Biden Administration had authorized a ban on bitcoin mining.
Cardano officially announced the imminent launch of Cardano stablecoin Djed
On January 25, the COTI network announced that Cardano-developed stablecoin Djed will launch next week. The announcement did not include a specific Djed stablecoin release date, but generally confirmed previous Cardano notices that the stablecoin would be introduced to the cryptocurrency community by the end of January 2023:
According to developers, the only technical reason for the launch delay is the chain index synchronization process. They specified that this process could take 14 days, with it having been started “a week ago and is expected to be completed next week.” Accordingly, Cardano stands a good chance of meeting its deadline and launching Djed by the end of January.
The announcement also says that DJED and its balancing coin SHEN will be listed on the Bitrue exchange. This Singapore-based exchange has already officially confirmed its readiness to list the new stablecoin:
Also, Minswap, the leading decentralized exchange (DEX) in the Cardano ecosystem, has already announced the creation of two pools (ADA/DJED and ADA/SHEN) for the new tokens starting next week.
As the developers promise, the amount of overcollateralization of stablecoin will be 400% – 800%. Thus, “it will have 4-8 times more base value behind it compared to the total amount of Djed coins issued.”
Will it help the ADA exchange rate
Amid news of the imminent launch of a new stablecoin in the ecosystem, the Cardano (ADA) exchange rate has been showing strong gains lately. However, the token came under pressure this morning during the Asian trading session.
ADA marked an 11-week high of $0.384 on January 22, but is pulling back today along with the entire crypto market. At the time of writing, its intraday drawdown was about 5.7% and it was trading around $0.36. However, inside the week, the coin continues to stay in the green zone (about 3.5% at the time of writing).
The current pullback could be a convenient opportunity for Cardano and ADA enthusiasts to enter the market at profitable levels ahead of Djed’s imminent release.
We previously reported that the Wall Street Giants were among the lenders to FTX.
Former Chancellor of the Exchequer to head a UK cryptocurrency company. Is cryptocurrency regulated in the UK?
Former UK Chancellor of the Exchequer Philip Hammond has become head at copper.co, a provider of institutional solutions for storing and trading digital assets. Is cryptocurrency regulated in the UK?
Hammond has served as a senior advisor to Copper since October 2021. During that time, he provided strategic advice to the company’s team as the firm grew significantly and expanded its operations and services worldwide. Since he joined the company, its staff has grown from 50 to more than 300 people and revenues have doubled.
“I was honored to benefit from Lord Hammond’s strategic experience based on his successful career in politics and business. I am very pleased that he has agreed to become chairman of Copper,” said Copper CEO Dmitry Tokarev.
He said Hammond, in particular, will focus on combining traditional finance with distributed ledger technology.
“I’ve really enjoyed working with Copper, a company that pioneered digital asset investment technology and is increasingly becoming a leading option for global financial institutions to trade and protect their digital assets,” Hammond said.
Is cryptocurrency legal in the UK?
According to Hammond, the UK now needs to accelerate the creation of a better regulatory regime for digital assets, as Switzerland and the EU are already well ahead of the United Kingdom in the development of the cryptosphere. He believes that the U.K. financial services sector should use distributed ledger technology as a key part of its strategy to remain a major global financial center after Brexit. Should we expect bitcoin and other cryptocurrencies to be legalized in the UK?
The U.K. set its sights on the cryptosphere a few years ago. Since then, the UK has introduced a lot of initiatives aimed at regulating and developing crypto. Among the latest key changes is the extension of tax breaks for digital assets. British authorities intend to extend investment managers’ exemption rights for crypto-assets, making it easier to include them in portfolios of foreign funds managed in the UK without the risk of taxation. Also, the UK Central Bank has begun preparations for the issuance of the state digital currency (CBDC).
Earlier, we reported that the SEC began inspecting the holdings of cryptocurrency by investment advisors.
Realized bitcoin yields are back in the green zone: should we expect a move towards $24,000 amid high bitcoin yields?
The new year in the crypto market started with an impressive rally and bitcoin’s realized yield returned to the green zone. Let’s examine whether BTC will continue to move towards the next resistance level on the back of higher bitcoin yields, or whether it was a bull trap.
Bitcoin’s key metrics have strengthened considerably, with a prominent PlanB analyst reporting that we are seeing BTC yields turning positive again recently. This metric measures the actual profit made during the holding period of an asset.
According to Woo Charts, bitcoin’s selling price is currently at $19,785. BTC surpassed that level on January 13 and has been trading well above it ever since.
The next frontier in the asset’s path is the 200-week moving average at $24,685. This metric is traditionally an indicator of the bottom of the bear market, and fixing above it will confirm the uptrend.
Market sentiment has shifted to positive
Moreover, market sentiment has also improved, with the BTC Fear and Greed Index entering the “greedy” zone. This is the highest since the end of March 2022.
Capriole Fund founder Charles Edwards commented on Twitter:
“Many people thought the collapse of FTX would end the crypto market. But bitcoin always comes back stronger than ever after the purge of bad players. Nothing will stop the inexorable pace of our industry.”
What to expect from the bitcoin price
At the time of publication, BTC was trading at $22,930. The asset has been developing in this area for almost a week now.
Bitcoin’s next target is $24,400, a price we last saw in August 2022. If resistance is broken through, there won’t be many obstacles left on the way to $30,000.
We previously reported that Polygon beat Ethereum and MATIC pushed Solana out of the top 10 cryptocurrencies.
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