Bitcoin Rejected at $46K, Market Cap Loses $100B in a Day (Market Watch)

After tapping a new five-week high at nearly $46,000, bitcoin was rejected and driven south vigorously. Most altcoins are deeper in red, with substantial price losses from Ripple, Solana, Polkadot, Shiba Inu, and others. THETA is among the few exceptions with a double-digit surge.

Bitcoin Stopped Ahead of $46,000

Earlier this week, bitcoin spiked to above $45,000 for the first time since early January after previously reclaiming $40,000. However, the bears didn’t allow any further increases, and they pushed it south to below $43,000.

After a few days of relatively stagnant movements, BTC tapped $45,000 once more yesterday before reminding of its volatile nature in the following hours. After the US released its highest inflation rate numbers in 40 years (again) of 7.5%, BTC dumped by nearly $2,000.

Yet, it started to gain value just as fast and spiked by almost $3,000 to just shy of $46,000. This became its new highest price tag since January 5th while also causing pain for leveraged traders.

The bears came out to play once more at this stage, and BTC dumped by another $3,000 to below $43,000 hours later. As of now, the asset has recovered some ground and stands around $43,500, and its market capitalization is well above $800 billion.




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BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Altcoins Retrace: Market Cap Down $100B

As it typically happens when enhanced volatility reaches BTC, the altcoins experience even more substantial losses.

Ethereum exceeded $3,200 at one point yesterday before a 3% daily decline drove it south. As of now, ETH stands beneath $3,100. Similar decreases are evident from Binance Coin, Cardano, Terra, and Dogecoin.

Ripple (-6.5%), Solana (-6.3%), Polkadot (-5.5%), and Shiba Inu (-5%) are even deeper in red. THETA is among the very few exceptions, as a 15% surge has driven it to $4.2.

Ultimately, though, the cumulative market capitalization of all digital assets dropped by approximately $100 billion in a day and is down beneath $2 trillion now.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

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Who Gets the Bitcoin Fortune? Everyone Lays Claims on Bitfinex’s Recovered $3.6M BTC

Barely two days after the U.S. Department of Justice (DOJ) seized about $3.6 billion worth of BTC related to the 2016 Bitfinex hack, dozens of individuals have started laying claims on the bitcoin fortune.

According to a Bloomberg report, the DOJ has seen a massive surge in the number of people who wish to regain their funds after it revealed plans to set up court proceedings for victims of the hack.

Speaking to Bloomberg, David Silver, a lawyer who specializes in financial and crypto-related fraud, noted that since the DOJ recovered the $3.6 billion worth of BTC on Tuesday, he has been approached by dozens of people claiming to have been affected in the hack.

“The world has changed dramatically since 2016, and everyone is going to lay claim to this newfound bag of Bitcoins,” Silver noted.

Bitfinex Wants it

Bitfinex has also joined the long list of those vying for rights to the recovered bitcoins. The exchange noted that it had fully settled all affected users after the hack.

Following the attack, which led to the theft of over 119,000 BTC from Bitfinex, the exchange generalized the losses to more than 30% of all users’ accounts and moved to compensate the victims.

It created and issued BFX coins to customers, one BFX token for every $1 lost, and they could either exchange the tokens for the U.S. dollar or the company’s stock.

Bitfinex also created a Recovery Right Token (RRT), which will allow customers who had converted the BFX coin to the company’s shares to lay claims on the stolen bitcoins if they were ever recovered.

According to Bitfinex, there are currently about 30 million RRT tokens outstanding. With a ratio of one RRT to $1, the exchange has to reimburse $30 million to holders of the RRT token.

In a statement on Tuesday, the crypto exchange explained it would ensure that it solidified its rights to the recovered funds.

“Bitfinex will work with the DOJ and follow appropriate legal processes to establish our rights to a return of the stolen bitcoin,” the company said.

Affected Users Disagree

Several customers have expressed their opposition to Bitfinex getting rights to the recovered bitcoins, considering how much the asset has appreciated over the past five years.

The stolen bitcoins, which were worth an estimated $71 million at the time of the hack, are now more than $4.5 billion.

Speaking on this, Alan Aronoff, a victim of the hack who claims to hold about $50,000 worth of Bitfinex stock, said,

“I think that’s ridiculous. That’s my Bitcoin that they took from my multisig wallet. I would like my Bitcoin back… They can have their equity back. I’ll take my Bitcoin, thank you very much.”

Who Gets the Bitcoin Fortune?

With many people seeking to get the funds, former assistant U.S. Attorney Kellen Dwyer noted that the legal processes involved in the case could likely take a couple of years.

“That process could take the heck of a long time. It certainly could be multiple years before anybody sees any cash,” he said.

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Bitcoin Reclaims $44K: Shiba Inu Spikes 5% (Market Watch)

Following yesterday’s brief retracement, bitcoin went on the offensive once more and touched $44,000. Most alternative coins are slightly in the green today as well, with ETH touching $3,200 and SHIB spiking by 5%.

BTC at $44K Again

It has been roughly a week since the largest cryptocurrency began its ascent. The asset struggled at $37,500 on February 4th, but the bulls stepped up and started to push it north.

Firstly, bitcoin broke above $40,000 before adding another grand in the following hours. After stalling there for a bit, BTC began adding more value once again. This time, it tapped a multi-week high of around $44,000 before surging to $45,500 for the first time since early January.

After several days of continuous gains, it was expected to some extent that there will be a slight retracement. It transpired yesterday when BTC dropped by a few thousand dollars to $42,500.

However, bitcoin reacted well to this price slide and has added more than $1,500 since then. As a result, it now stands above $44,000, and its market capitalization has neared $850 billion.




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BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

SHIB and Other Alts in Green

The alternative coins mimicked BTC’s performance to a large extent lately. As such, most corrected yesterday but have turned green today.

Ethereum slid below $3,100, but a 3.5% increase since then has driven the second-largest cryptocurrency to $3,200 now. Binance Coin, Ripple, Terra, and MATIC have marked similar gains, while Cardano, Solana, Polkadot, Avalanche, and Dogecoin have portrayed more modest increases.

Shiba Inu and CryptoCom’s native token are the most significant gainers as of now. Both are up by approximately 5%, with SHIB standing at $0.000033 and CRO trading above $0.5.

More price increases come from Secret (13%), Flow (13%), Kadena (10%), Harmony (9%), Arweave (8%), and NEO (8%).

The cryptocurrency market capitalization is up by around $40 billion since yesterday and is back above $2 trillion.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

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JPMorgan Increases Long-Term Bitcoin Price Prediction to $150,000

According to JPMorgan Chase strategists led by Nikolaos Panigirtzoglou, Bitcoin’s “fair value” should be 12% lower than its actual price.

In their opinion, the cryptocurrency is currently overpriced and its fair value should be around $38,000. The figure is based on the premise that BTC is around four times more volatile than gold, according to Bloomberg.

If this volatility narrowed to three times, the fair value price would increase to around $50,000, stated the strategists who wrote:

“The biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,”

Predicting Bitcoin Prices

A more interesting observation from the letter to investors this week is that JPMorgan has increased its long-term price prediction for BTC. A year ago, the strategists suggested the long-term price for Bitcoin was $146,000, but they have upped this to a new prediction of $150,000. They did not provide a definition or time scale of “long term,” however.

The new price prediction is a level that would put the BTC total market value on par with that of all gold held privately for investment purposes, they added.

The analysts also commented that January’s market pullback did not look like the same capitulation event that occurred in May 2021. Last month, Bitcoin prices declined by 22%, from almost $47K to around $36.5K.

However, they also noted that metrics such as futures open interest (OI) and BTC reserves on exchanges are now pointing to a “more long-standing and thus more worrisome position reduction trend.”

Even though the report is generally bearish, it is a testament to how far crypto assets have come that major Wall Street banks (that previously hated them) are now advising investors about them and predicting prices.

BTC Price Outlook

At the time of writing, Bitcoin was changing hands for $43,900 with little change over the past 24 hours. The asset hit an intraday high of $44,758 a few hours ago but has started to fall back during the Thursday morning Asian trading session.

There is strong resistance at current levels, although prices have increased by 18% over the past seven days. A break above this resistance will result in more around the $47K zone. However, if the bears regain control, BTC could fall back to support at $41.5K.

Bitcoin is currently trading down 36.7% from its Nov. 10 all-time high of $69K.

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Market Watch: Bitcoin Retraced After Topping at $45K, Tezos Soars 12%

After several consecutive days of marking impressive gains, bitcoin retraced slightly and lost around $2,000 since its local peak. The altcoins have calmed on a daily scale, except for a few lower- and mid-cap ones that surged, such as Tezos (XTZ).

Bitcoin’s Peak and Subsequent Retracement

Ever since February 4th, when the price of the largest cryptocurrency struggled below $38,000, the overall landscape has been highly bullish. Bitcoin initiated an impressive leg up in which it reclaimed $40,000 for the first time in weeks and only kept climbing.

This resulted in touching $43,000 and $44,000 on February 7th before the bulls pushed BTC north, as reported yesterday. This culminated in touching $45,500, which became the highest price tag seen by bitcoin in over a month.

After gaining $8,000 in days, though, the community expected some kind of a retracement, and it arrived shortly after this peak. It drove the cryptocurrency down by about $3,000 to $42,500, but the asset reacted rather well and recovered $1,000 in the following hours.

As such, its market capitalization continues to stand well above $800 billion, and its dominance over the altcoins is close to 42%.




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BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Tezos on the Move

Most alternative coins registered similarly impressive gains in the past week or so. Ethereum went from struggling to remain above $2,000 to a multi-week high north of $3,100. The second-largest crypto has calmed since then, but it’s still around that line.

The remaining larger-cap alts have either stalled or retraced slightly. Binance Coin is down by 3%, Solana by 2.6%, Terra by 3.5%, Dogecoin by 3%, while Shiba Inu has lost the most (-6%). This comes despite the recent introduction of Metaverse real estate by the memecoin project.

LEO Token is the best performer on a daily scale with a massive 50% surge. This is perhaps a direct consequence of the positive development in regards to the Bitfinex hack.

Tezos is another impressive performer following a 12% surge. Consequently, XTZ now trades above $4.5.

The crypto market cap topped $2 trillion yesterday, but it’s slightly below that line after a minor daily decline.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

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Russia Won’t Ban Cryptocurrencies, Will Regulate Them Instead

After going back and forth on how to deal with digital assets for months, Russia’s government and the nation’s central bank have decided to draft a bill on recognizing them as an analog of currencies. The authorities have until February 18th to present the draft.

  • The world’s largest country by landmass has had a rather indecisive approach towards the cryptocurrency industry dating a few years ago.
  • Most recently, some of the governing bodies had disputes on how to tackle them. On the one hand, Russia’s central bank proposed a total ban on anything crypto, citing the enhanced volatility that could threaten the country’s financial system.
  • On the other, though, the nation’s finance ministry preferred a softer approach by implementing regulations instead of a ban.
  • As per a report by local newspaper Kommersant, the authorities have decided to take the second approach and will prepare a draft law, by February 18th, to definite crypto as “an analog of currencies,” instead of a digital financial asset.
  • According to a government statement, the purpose of this regulation is to integrate digital currencies into the financial system and “ensure control over cash flows in the circuit of credit institutions.”
  • Digital asset transactions will be possible only through legalized intermediaries, such as exchanges and P2P platforms, and banks. They will require complete identification.
  • The early stages of the draft law suggest that all crypto transactions of over 600,000 rubles (about $8,000) will have to be declared or risk being labeled as a criminal offense.
  • It’s worth noting that the country’s president – Vladimir Putin – seemed in favor of regulations instead of a ban as well and backed crypto mining.
  • Russia’s population is among the most active on the crypto market, with recent Kremlin estimations showing that they own over $200 billion worth of digital assets.

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Crypto Market Cap Reclaimed $2T: Bitcoin Reached 30-Day High Above $45K (Market Watch)

Bitcoin’s price went on a roll throughout the past few days, and it even tried to reclaim the $45K level. It has so far been unsuccessful in doing so, but the overall market sentiment has shifted considerably. Throughout the past 24 hours, the total capitalization increased by about $50 billion and managed to reclaim the $2 trillion mark.

Bitcoin Topped $45K But Failed to Sustain

Bitcoin’s price managed to surge above $45K a few hours ago and reached as high as $45,500 on Bitstamp. It’s worth noting that this marked a 30-day high as the last time it was trading at these levels was back on January 5th.

BTCUSD_2022-02-08_11-21-37
Chart by TradingView

With this said, the price was also unable to sustain at these levels and has since retraced below $44K. Still, the cryptocurrency is up 2.7% in the past 24 hours. The volatility, however, has had its toll and left some $305 million worth of liquidated positions in the same period. The largest single liquidation order took place on OKEx. It was a BTC/USDT position with a face value of $3.6 million.

Somewhat expectedly, the majority of liquidations were of short positions, and most of them took place on Binance, OKEx, and Bybit.

Total Market Cap Reclaims $2 Trillion

Crypto bulls managed to achieve another important milestone throughout the past 24 hours by reclaiming the coveted $2 trillion mark for the total market capitalization. This comes on the backs of the recent gains in BTC as well as some altcoins.




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Avalanche is one of the more notable performers from the top 10, as AVAX surged by about 6.5% in the past 24 hours. Shiba Inu (SHIB) continues to rip and is up 17% in the same period. MATIC is also up about 8%. Other leading altcoins, however, failed to follow up.

Solana lost about 3% – the same as Polkadot. Ethereum remained more or less flat throughout the day, which is also true for BNB. KDA is the biggest winner with a 20% daily surge, whereas QNT is down the most – about 8%.

This allowed for Bitcoin’s dominance over the market to increase by about 0.5% in the past 24 hours.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.




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Valkyrie Bitcoin Miners ETF (WGMI) Approved for Trading on NASDAQ

Valkyrie’s Bitcoin Miners exchange-traded fund (ETF) has been approved for listing on the U.S. stock exchange Nasdaq Stock Market under the ticker symbol “WGMI.”

  • According to a U.S. Securities and Exchange Commission (SEC) filing on Monday (February 7, 2022), Nasdaq gave approval for the Bitcoin Miners ETF from crypto asset manager Valkyrie to be listed and traded on the exchange.
  • The latest development comes less than a month after Valkyrie filed an application with the SEC to list the fund. The company’s filing noted that the Bitcoin Miners ETF would invest at least 80% of its net assets in companies that “derive at least 50% of their revenue or profits from bitcoin mining operations and/or from providing specialized chips, hardware, and software or other services to companies engaged in bitcoin mining.”
  • Also, Valkyrie noted that it would focus on crypto mining firms that use green and renewable energy for their mining activities. The company’s Bitcoin Miners ETF is scheduled to begin trading on Nasdaq on Tuesday, February 8, 2022.
  • While Valkyrie is set for the debut trading of its Bitcoin Miners ETF, it is not the first fund from the company to be approved.
  • Back in October, the crypto firm’s Bitcoin futures ETF became the second such product in the United States after ProShares’ to receive the green light from the SEC. Valkyrie’s Bitcoin Futures ETF was also listed on Nasdaq.
  • Meanwhile, the SEC continues to be reluctant to approve a spot Bitcoin ETF. In January, the securities watchdog turned down a proposal from SkyBridge, stating that the company did not meet the requirements.
  • Other applicants who have met the same fate include Valkyrie and Kryptoin. Recently, the SEC delayed its decision on Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

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Bitcoin Touched $43K: Ripple Soars 12% to a 3-Week High (Market Watch)

Bitcoin’s recent bullish run continued with another minor leg up that drove it to a high of $43,000. Most altcoins have produced similar slight increases; some, such as Shiba Inu and XRP, have exploded with massive double-digit pumps.

Bitcoin Touched $43K

Ever since last Friday, when the cryptocurrency began its rapid ascent from $37,500, the BTC landscape has remained significantly more positive. Bitcoin surged to and beyond $40,000 in a matter of hours for the first time since mid-January.

The asset remained relatively calm, around $41,500 during the weekend before it initiated another price increase. This time, the bulls drove it to $43,000 for the first time since the market-wide correction started on January 21st.

As of now, BTC has been unable to reclaim that level decisively and has retraced by a few hundred dollars. Nevertheless, its market capitalization has surged above $800 billion. Just last week, the metric was down below $700 billion.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

SHIB and XRP Steal the Show

Most alternative coins followed BTC on the way up with impressive gains in the past several days. Ethereum, for example, struggled to remain above $2,000 just a week or so ago. Now, though, the second-largest cryptocurrency stands well above $3,000 and even challenged $3,100 a few hours ago.




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Binance Coin, Cardano, Solana, Polkadot, and Terra have marked similar gains in the past 24 hours of between 2% and 4%. More impressive increases come from Dogecoin and Avalanche.

However, Ripple and Shiba Inu have taken the main stage from the larger-cap alts. SHIB has exploded by more than 20% in a day, as reported earlier, and stands near $0.00003.

XRP, on the other hand, is up by approximately 13%. As a result, the asset tapped a three-week high at over $0.75.

More gains come from Quant (17%), BitTorrent (16%), LEO (14%), Kadena (13%), Loopring (12%), Gala (10%), and Fantom (10%).

The crypto market cap has increased by about $60 billion since yesterday and stands at $1.950 trillion.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

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Diem’s Downfall: From an Ambitious Single Global Digital Currency Idea to a Painful End

Throughout its relatively brief history, Facebook’s digital asset project Diem (known initially as Libra) managed to capture the attention of the cryptocurrency community and, perhaps more importantly, global regulators.

Over the years, it changed its concept, mission, and core idea several times, while watchdogs claimed it works against financial sovereignty and monetary stability. Additionally, there were worries concerning the lack of privacy, given Facebook’s history.

Despite the various transitions, which the project went through to remain relevant, the group behind Diem ultimately had to sell its intellectual property and technology assets to the American financial institution – Silvergate Bank. Thus, Zuckerberg’s idea to launch a single global digital currency failed rather painfully.

The Birth of Libra

It all started in June 2019 when Morgan Beller, David Marcus, and Kevin Weil created Libra – a digital asset project backed by Facebook. Initially, it was intended to issue a stablecoin as the team behind it raised hopes it could grow to become a global payment method.

The initiative was met with mixed feelings from the crypto community. Being backed by arguably the largest social media company attracted significant attention but not always in a positive way. While there were some that believed in the project, the majority doubted if such an ambitious idea will ever see the light of day.

Nevertheless, many companies from the traditional financial space initially backed Facebook’s idea. Some of those names included PayPal, eBay, Visa, Mastercard, Booking Holdings, and more.

At one point, even the Bank of England (known as a keen opponent of the cryptocurrency universe) argued that “Libra has the potential to become a systematically important payment system.”

In September 2019, Mark Zuckerberg (Co-Founder and CEO of Meta/Facebook) assured that the stablecoin would not be released without obtaining approval from the American watchdogs. Shortly after his announcement, financial watchdogs from France, Germany, and other G20 nations rallied against Libra, saying the currency poses significant risks to investors and could be employed in money-laundering schemes.

The former President of the United States – Donald Trump – also raised his concerns regarding the project. As a passionate supporter of the American dollar, he opined that Libra might harm the “only one real currency” of the USA.

As a result, numerous partners started to abandon the project as PayPal was the first company to leave. Moreover, even legal issues came to focus as an insurance company carrying the name Libra claimed ownership over the Libra trademark. These were among the first signs that the project might not work as intended.

From Libra to Diem

Despite the criticism, Zuckerberg continued to support the idea. He even defended it at a Congressional hearing but saw little-to-no success, and the project remained a thorn in watchdogs’ side. To distance it from the original concept, the team changed Libra’s name to Diem (the Latin word for “day”) in December 2020.

Back then, Stuart Levey – CEO of the Geneva-based Diem Association – confirmed that the change comes as a direct consequence of the regulatory hurdles. He added that “the original name was tied to an early iteration of the project that received a difficult reception.” Levey further disclosed that the Diem currency would operate a signal dollar-backed token.

Last year, several developments hinted that the asset could finally see the light of day. In April 2021, the team behind announced it would roll out its stablecoin by the end of the year without specifying an exact date.

A month later, the Diem Association joined forces with the American crypto-friendly bank – Silvergate Bank. Both parties planned to launch a stablecoin pegged to the American dollar. The former also relocated from Switzerland to the United States, which was regarded as a step in the right regulatory direction.

In August, David Marcus – board member of the Diem Association – disclosed that the blockchain project had fixed its issues with US regulators as it had secured licenses in nearly all states. Unlike Donald Trump, he opined that the existence of such a stablecoin could benefit those who lack financial services and help the US maintain the dollar’s power as the world reserve currency.

Diem’s Demise

Regardless of all the promises and adjustments, months passed by, and there was little-to-no information coming from the project, except for one more worrying sign. At the start of December 2021, David Marcus, the project’s head, said he will leave at the end of the year. This resulted in a lot of speculation about Diem’s future. However, this time it wasn’t about when it will launch but more of if it ever will.

What many considered as inevitable at this point happened in January 2022 when Meta’s (renamed from Facebook) crypto project revealed that it was considering the sale of its assets to return capital to its investors. Diem also got into discussions with investment bankers about how best to sell its intellectual property and help developers find new places to work.

Apart from Meta, which owned the majority of the venture’s stake (about 30%), some of the other prominent association members included Andreessen Horowitz, Ribbit Capital, Union Square Ventures, and Temasek Holdings Pte.

Shortly after the initial reports, Silvergate Capital Corporation acquired the intellectual property and other technology assets related to the Diem Association for more than $180 million. This came less than a year after the US financial institution backed Meta’s project. Speaking on the matter was Alan Lane – Silvergate’s CEO:

“We are grateful to Diem and the community of engineers and developers who created this technology and have advanced it to its current evolution. Silvergate is committed to continuing to foster the open-source community that supports the technology, and we believe that existing contributors will be excited about our vision going forward.”

In the aftermath, Diem (created as Libra) went from enthusiasm to criticism, from excitement to regulatory backlash, from high hopes to transform the monetary network to a silent end. And it all happened in two and a half years.

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Bitcoin (BTC) $ 27,169.28 2.08%
Ethereum (ETH) $ 1,869.45 1.88%
Litecoin (LTC) $ 89.83 2.54%
Bitcoin Cash (BCH) $ 112.88 1.43%