DeFi Digest — Latest news around the crypto world
In an unusual move for banks, Silvergate — one of the most crypto-friendly U.S. banks — has announced sudden voluntary self-liquidation, promising to return all assets back to their owners. The news sent crypto prices crashing hard, and there is a lot of talk about Silvergate’s demise being caused by political pressure amid the climate of regulatory scrutiny of crypto in the U.S. and around the world.
Speaking of sudden stops in crypto banking, Circle seems to have surprised Dapper Labs and other crypto clients by suddenly dropping ACH payment servicing, leaving many crypto users with fewer options to on-offboard.
And speaking of legal issues, lawsuits are hard to predict. On the one hand, ETH fell 7% when the NY AG called it a security in a lawsuit against the Kukoin exchange. On the other, Grayscale’s GTBC and ETHE financial products both gained in price after its attorneys’ arguments in Grayscale’s lawsuit against the SEC apparently impressed the markets.
While Kukoin is getting sued, another K-named CEX, Kraken, is planning to launch a crypto bank very soon, no matter the tough regulatory environment. Combined with Silvergate’s self-liquidation, this leaves investors wondering whether on/offramping crypto in a regulated way going to be a one-step-forward-two-back situation.
Finally, thanks to the EIP-1559 upgrade, Ethereum’s total supply is in a small but steep decline since the upgrade was implemented, making ETH a deflationary crypto, burning $77.5M worth of ETH in the process.
Stay tuned!
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