Between China’s bitcoin mining crackdown, to billionaire investor Mark Cuban’s DeFi, or decentralized finance, funding crash, rather a lot occurred in crypto over the previous week.
With the highest cryptocurrencies by market worth remaining within the crimson this morning, listed below are seven issues value understanding.
1. Kim Kardashian West was paid to promote a digital coin on Instagram
Influencers, such because the D’Amelio household and Tana Mongeau, have started to post paid advertisements on their social media platforms for different digital coins and exchanges.
Last week, Kim Kardashian West made headlines after posting an ad for altcoin ethereummax on her Instagram story on June 13 to her 228 million followers.
Followed by a short clip of her speaking to her camera about ethereummax with “#ad” written at the bottom of the screen, Kardashian West posted text: “Are you guys into crypto???”
“This is not financial advice but sharing what my friends told me about the ethereum max token!” the post read. She again added different hashtags, including #ad, which is required to reveal that her post is paid for.
2. China’s bitcoin miners are migrating
Texas appears to be an ideal destination for miners due to its deregulated power grid and pro-crypto political environment.
“You are going to see a dramatic shift over the next few months,” Brandon Arvanaghi, previously a security engineer at crypto exchange Gemini, told CNBC. “We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible.”
On Sunday, China extended its crackdown to the southwestern province of Sichuan, where many mines were reportedly shuttered. Overall, China’s actions seem to have led to a significant decline in bitcoin’s hash rate, or processing power.
Bitcoin’s price fell as low as $31,760 on Monday morning, CNBC reported, dropping below $32,000 for the first time since June 8.
3. Maxine Waters forms ‘digital assets working group’
During a house financial services hearing on central bank digital currencies (CBDCs), committee chairwoman and congresswoman Maxine Waters, D-Calif., announced the creation of a “digital assets working group.”
“As cryptocurrencies, central bank digital currencies and other digital assets enter the mainstream, the Committee will look at how digital assets have begun to enter many aspects of our lives … and consider how to devise legislation to support responsible innovation that protects consumers and investors while promoting greater financial inclusion,” Waters said on Tuesday.
Members of the working group will also work on matters related to the possible creation of a CBDC in the U.S., she said.
El Salvador passed a new law to adopt bitcoin as legal tender on June 9, becoming the first country to do so. But, the World Bank will not assist El Salvador in implementing it, Reuters reported on Wednesday.
“We are committed to helping El Salvador in numerous ways, including for currency transparency and regulatory processes,” a World Bank spokesperson told Reuters. “While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”
Earlier on Wednesday, the finance minister of El Salvador, Alejandro Zelaya, said the country did seek technical assistance from the World Bank.
Mark Cuban revealed on Wednesday night that he was buying and selling a DeFi, or decentralized finance, token from Iron Finance known as titan that ended up crashing to zero in someday.
“I received hit like everybody else,” Cuban, proprietor of the Dallas Mavericks and an investor on ABC’s “Shark Tank,” tweeted on Wednesday.
At first, some within the crypto world speculated that this was the results of a rug pull, which is a kind of rip-off the place builders abandon a undertaking and depart with buyers’ funds. Iron Finance denied these claims, writing in a weblog publish that the crash was as a result of a “financial institution run,” or panic promoting, and the token’s algorithmic code.
Nonetheless, after this expertise, Cuban known as for extra regulation inside the house.
“[I]f you might be on the lookout for a lesson realized, the actual query is the regulatory one,” Cuban informed Bloomberg on Thursday. “There must be regulation to outline what a secure coin is and what collateralization is appropriate.”
6. Goldman Sachs ramps up bitcoin buying and selling
“Our objective is to equip our shoppers with best-execution pricing and safe entry to the belongings they wish to commerce,” Max Minton, head of digital belongings for Goldman’s Asia-Pacific area, mentioned in an announcement. “In 2021, this now consists of crypto, and we’re happy to have discovered a companion with a broad vary of liquidity venues and differentiated derivatives capabilities spanning the cryptocurrency ecosystem.”
Disclosure: CNBC owns the unique off-network cable rights to “Shark Tank.”