Connect with us

Cryptocurrency

Exchange Huobi Global sold a controlling stake

Published

on

huobi global exchange ranking

Exchange Huobi Global, a cryptocurrency exchange headquartered in Hong Kong, has completed the sale of a controlling stake. This is reported in a press release from the exchange.

It became known at the beginning of August that the founder of Huobi wanted to sell a stake in the business. Then, the list of potential buyers included TRON founder Justin Sun and FTX CEO Sam Bankman-Fried. In the end, the controlling stake went to About Capital. The financial side of the deal has not been disclosed. Huobi Global exchange ranking is quite high, so we are talking about large sums.

The main shareholder, the owner of the controlling interest in the exchange, became an asset manager; About Capital, which is going to expand business and promote the brand Huobi on the international market.

The press release informs that the new controlling shareholder plans to create a global strategic advisory board, which will include industry leaders, increase margin and reserve funds, and improve the competitiveness of the exchange. Nothing will change for exchange users. The change in ownership will not affect Huobi’s core operations and business processes.

According to Exchange Huobi Global founder Leon Lee, the deal will help the exchange accelerate its global expansion.

“Since leaving China in 2021, we have accelerated globalization in a challenging market environment, which has further pushed Huobi to find a new shareholder structure with a global vision and international resources. We believe the acquisition of About Capital shares will contribute to Huobi’s global expansion,” he said.

Founded in 2009, About Capital specializes in developing situational strategies to identify long-term investment opportunities. It has big plans for Huobi.

“We are confident that a comprehensive approach to reorganizing Huobi Global into a leading international virtual asset exchange will build trust and help expand its international user base,” said Ted Chen, CEO of About Capital, commenting on the stock purchase.

We previously reported on what happened in the crypto market on Oct. 7.

Cryptocurrency

Is stablecoin a security? Crypto Investors get rid of stablecoins: USDT suffered the most

Published

on

stablecoin security

The market capitalization of the leading stablecoins has dropped significantly after the FTX crash. Let’s find out what this means for the market and whether it’s worth following the example of other investors and going into fiat. Is stablecoin a security?

The drama surrounding FTX seriously undermined investors’ confidence in centralized exchanges and forced them to get rid of stablecoins en masse. USDT suffered the most: according to CoinMarketCap, its supply has fallen from $67 billion to $65 billion in the last two weeks.

Because of concerns about Tether and stablecoin security reserves, users are redeeming USDT or converting it to USDC. A similar situation was observed after the collapse of Terra Luna – then within two weeks the market capitalization of the asset fell by $10 billion.

However, CTO Paolo Ardoino says that Tether was not affected by the FTX crash and users have nothing to worry about.

BUSD and DAI were also hit

USDT is not the only stable coin affected by the FTX story. For example, the circulating supply of BUSD fell from $23 billion to $22.5 billion, and DAI fell from $5.7 billion to $5.2 billion.

On the contrary, the capitalization of USDC and Pax Dollar steel blockers increased. Over the past two weeks, USDC’s supply reached $44.7 billion.

The cryptocommunity is actively discussing this on Twitter and speculating about the reasons for this growth. Some believe it may be due to USDC’s profitability and the influx of former USDT holders into the asset.

FTX collapse undermined investor confidence

The fall of the Sam Bankman-Fried empire has undermined user confidence in the cryptocurrency and led to a massive collapse in prices.

But market participants also fear that other platforms will follow FTX’s lead. So it’s no surprise that many retail investors are choosing to hold their own assets rather than hold them on centralized exchanges.

Previously, we reported that Poloniex curtailed support for stablecoins on the BNB Chain.

Continue Reading

Cryptocurrency

U.S. authorities launch investigation into Genesis investing system

Published

on

genesis investing system

The Securities Commission of Alabama launched an investigation into the Genesis investing system. This edition of Barron’s, citing the head of the regulator, Joseph Borg.

Borg refused to elaborate on what exactly Genesis is suspected of. The newspaper said the Alabama regulator as well as agencies in several other states were investigating whether Genesis had encouraged U.S. citizens to invest in securities.

Which other regulators are in question is unclear. Borg himself has not directly stated the investigation against Genesis. Instead, he said that “if a firm serving institutional investors fails, retail depositors will be affected [as well].”

Is Genesis investing legitimate?

Genesis Global Trading has hired consultants from investment bank Moelis & Company to consider options for restructuring the business, including bankruptcy. As The New York Times has learned, the broker has not yet made any final decision and still hopes to avoid bankruptcy.

It is worth noting that Moelis & Company consultants also tried to save the bankrupt broker Voyager Digital. A Genesis spokesperson said in a media comment that the firm is still trying to find a way to resolve the issue without declaring bankruptcy.

Genesis’ problems have already affected the firm’s partners. The credit division of cryptocurrency exchange Gemeni is known to have frozen the withdrawal of client assets, citing Genesis’ difficulties. The exchange later said it was working on a solution, but did not provide details.

We previously reported that Binance is launching a reserve-proof system.

Continue Reading

Cryptocurrency

How the SEC is trying to create conditions for money control bitcoin. What could it lead to?

Published

on

money control bitcoin

When CME Group launched the first bitcoin futures contract in 2017, Chairman Emeritus Leo Melamed said he would “tame” the major cryptocurrency. The SEC has since approved several ETFs. But as exchanges increased their supply of BTC, the community began to have questions about market manipulation. Today, it’s about money control bitcoin.

Banks want to control bitcoin. Can banks control bitcoin?

Manipulating bitcoin with ETFs will lower its price in the short term, but will help accelerate the mass adoption of the cryptocurrency by traditional market participants.

The SEC approved the first bitcoin ETF in October 2021. The ProShares Bitcoin Strategy exchange-traded fund appeared on the New York Stock Exchange on Oct. 19, a day when the fund’s shares traded nearly $1 billion.

The Bitcoin ETF is not suitable for retail investors because it gives institutional investors an advantage. A bitcoin futures ETF has “the potential for price suppression and greater volatility due to the dominance of futures.” BTC futures will appreciate relative to the spot price because of positions opened by hedge funds.

The gold standard. Who controls cryptocurrency?

It’s a common belief in the gold market that ETFs are currently outpacing prices. The same practice seems to have been adapted for the bitcoin market as well. CME Group claims that bitcoin ETFs will help investors “benefit from efficient price discovery in transparent futures markets.”

“Paper” bitcoin may change the minds of crypto skeptics

Bitcoin’s core value comes from two factors. First, BTC is truly decentralized. Second, its maximum supply is 21 million coins. However, bitcoin ETFs increase the supply of BTC by selling “paper” assets and thus affect the value of the cryptocurrency.

The threat of decentralization

Bitcoin futures ETFs can accelerate mass adoption. However, their existence runs counter to the decentralization ethic advocated by the BTC. There is concern that the BTC could be “hijacked” by hedge funds and big banks, which could end up manipulating the price.

We previously reported that Polkadot is offering money to fight cryptocurrencies.

Continue Reading

Trending

©2021-2022 Letizo All Rights Reserved