The week has come to a close, and it’s time to catch up on the most exciting happenings in the crypto sphere. Welcome to the top 5 most interesting news stories!
36 months jail for Binance founder
Binance founder Changpeng Zhao is facing a 36-month prison sentence for violating anti-money laundering laws. Prosecutors say that Zhao’s crimes were serious and that a longer sentence is needed. They say he failed to report suspicious transactions, sold child abuse materials, and received ransomware proceeds.
Zhao, who left Binance last November, agreed to pay a $50 million penalty and stop working with the company he started in 2017. Binance agreed to pay a $4.32 billion penalty for its role in the violations. Zhao’s sentencing is scheduled for April 30 in Seattle, where he has been free on a $175 million bond.
Coinbase $15 million pizza ad
Coinbase, the leading cryptocurrency exchange in the United States, is set to launch a robust $15 million TV advertising campaign during the NBA playoffs. This initiative aims to underscore the advantages of cryptocurrency compared to conventional payment methods. The campaign will feature three distinct commercials broadcasted across four prominent channels.
The primary goal of these advertisements is to spotlight the intricacies and costs linked with traditional payment rails, such as credit cards, and popular services like Venmo. By drawing attention to the near-instant settlement and absence of intermediaries in cryptocurrency transactions, Coinbase seeks to illuminate the inherent efficiencies of crypto transactions.
Faryar Shirzad, Coinbase’s Chief Policy Officer, emphasized that the campaign intends to dispel the misconception of instant transactions associated with traditional payment methods. In reality, these transactions are embedded within a complex infrastructure, camouflaged by sleek digital interfaces. Through relatable examples, such as ordering pizza, the campaign aims to resonate with sports enthusiasts and present cryptocurrency as a simpler and more streamlined alternative.
6,791 Bitcoin transaction just with $0,33 fee
In a remarkable display of Bitcoin’s efficiency, an anonymous user moved over $484 million worth of BTC (6,791 bitcoins) to a newly created wallet just hours before the highly anticipated Bitcoin halving event. What made this transaction truly noteworthy was the minuscule transaction fee of a mere $0.33 paid to the Bitcoin network for processing the massive transfer.
While the reasons behind the colossal transaction remain unknown, its timing coincided with Bitcoin’s price surge above $65,000 in anticipation of the halving event. This incident underscores the Bitcoin network’s ability to handle substantial transactions at remarkably low fees during periods of moderate network activity. Typically, Bitcoin network fees hover around $16 per transaction, but can fluctuate based on the volume of transactions being processed at any given time.
No audits of Tether reserves and that’s why
Tether CEO Paolo Ardoino has shed light on the long-standing question of why the company behind the world’s largest stablecoin, USDT, with a market value of $108 billion, does not produce audits of its reserves by the “Big Four” accounting firms — Deloitte, PwC, EY, and KPMG. According to Ardoino, these top global auditors are reluctant to work with Tether due to concerns that such an association could damage their reputations.
Despite securing a reputable auditor being a “top priority” for Tether, Ardoino states that the Big Four firms are wary of risking their vast client bases in the traditional banking industry for a few stablecoin issuers. The recent failure of Silicon Valley Bank, which held $3.3 billion of Tether’s rival Circle’s reserves, has further exacerbated these concerns within the auditing firms.
Tether’s USDT stablecoin plays a crucial role in enabling seamless conversions between fiat currencies and digital assets across major cryptocurrency exchanges. As such, demonstrating the backing of its reserves through a reputable audit remains a pressing issue for Tether to address investor concerns and maintain confidence in the stablecoin market.
Memecoins are better to launch than regular crypto in US
The current state of U.S. crypto regulations has inadvertently created an environment where meme coins like Dogecoin, born out of humor and lacking practical utility, thrive while entrepreneurs seeking to launch innovative and utilitarian crypto projects face significant regulatory hurdles. This imbalance has raised concerns about the impact of these regulations on innovation in the crypto space.
Chris Dixon, a general partner at Andreessen Horowitz leading their crypto fund, has criticized this regulatory paradox, arguing that it is “safer to release a meme coin today with no use case than it is to launch a token that’s useful.” He likens this to a policy failure where a securities market would incentivize meme stocks like GameStop while rejecting companies with widely-used products like Apple and Microsoft.
While meme coins can be created and launched with relative ease, developers introducing blockchain tokens with practical applications encounter a maze of compliance issues, often finding themselves in “regulatory purgatory.” This regulatory environment has prompted initiatives like Andreessen Horowitz’s $7.2 billion fundraising to advocate for reforms that could level the playing field for serious crypto projects versus meme coins.
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