Tag: USDT

Wintermute Accuses Near Foundation and Aurora Labs of Failing to Honor USN Redemptions

by Blockchain News

Wintermute, in an unexpected public disclosure, has raised a serious allegation against the Near Foundation (NF) and Aurora Labs regarding the redemption process of the USN stablecoin. In a series of tweets, Wintermute’s CEO, Evgeny Gaevoy, criticized the entities for not honoring their public and private commitments to redeem USN tokens for USDT, leading to substantial financial repercussions for Wintermute and possibly setting a detrimental industry precedent.

USN’s Troubled Journey

Initially launched as an algorithmic stablecoin similar to Terra’s UST, USN underwent a transformation to a non-algorithmic model backed by USDT amid the market’s instability. Despite the changes and a subsequent collateral deficit, NF announced the USN Protection Programme, assigning Aurora Labs to oversee its operation. However, the program has since been marred by a failure in implementing redemption promises.

The Unresolved Transaction

Wintermute, in its role in asset liquidation for the FTX bankruptcy estate, sold 11.2 million USN, expecting to redeem the tokens for over $11M for FTX creditors. This expectation was based on NF’s assurances and Aurora’s private confirmations. The subsequent refusal to redeem these tokens has left Wintermute in a state of limbo, with negotiations leading to a disappointing offer from NF amounting to only a fraction of the original value.

The Path Forward

Highlighting the lack of accountability and clarity from NF and Aurora, Wintermute is preparing to take legal steps. Gaevoy’s disclosure is not only a call for resolution but also a signal to the industry about the importance of corporate responsibility and transparency. The company is reaching out to others similarly impacted and is firm on its stance to switch to an adversarial mode if their calls for redemption continue to be ignored.

The unfolding scenario raises questions about trust and integrity in the crypto market, as prominent entities like NF and Aurora Labs face scrutiny. Wintermute’s commitment to transparency and the industry’s ethical standards is evident as they navigate through this challenging episode.

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Alameda Research Minted Over $39 Billion USDT, Amounting to Nearly Half of Tether’s Circulating Supply

by Blockchain News

A recent disclosure by Conor Grogan, Director at Coinbase, unveiled a noteworthy involvement of Alameda Research in the minting of Tether (USDT) tokens. Through meticulous on-chain data analysis, it was found that Alameda was responsible for minting a massive $39.55 billion of USDT. This figure represents roughly 47% of Tether’s circulating supply as of October 10, 2023. A prior report by Protoss had estimated the minting at around $36.7 billion, however, Grogan managed to update these figures by identifying additional wallets associated with the minting process.

Alameda’s Asset Management and USDT Minting

It was further revealed that the amount of minted USDT exceeded Alameda’s assets under management (AUM) at the pinnacle of the cryptocurrency market. This data was obtained from information submitted by Sam Bankman-Fried (SBF) to Forbes for their annual World’s Billionaires publication. The revelation implies a significant role played by Alameda in the USDT market, contributing vastly to the stablecoin’s circulating supply.

Redemptions and Offchain Coordination

The process of accurately determining redemptions remains challenging due to Tether’s offchain coordination of burns. Unlike other platforms, Tether lacks deposit addresses; hence entities send funds directly to the treasury for redemptions. Grogan speculated that assuming all USDT redemptions from FTX were from Alameda, they would have redeemed $3.9 billion USDT, with the majority transpiring over two days in May during an event termed the Luna implosion.

Public Reactions and Further Inquiries

The public’s reaction to these findings was mixed, with some individuals inquiring about the veracity of the corresponding deposits to Tether’s bank account against the minted USDT. Others questioned the methodology employed by Grogan in discovering the additional wallets, to which he responded by citing various sources including public information, court filings, and bankruptcy consolidations wherein the FTX estate was given key control of the Alameda accounts.

Insights from 2021 by Alameda’s Former CEO

In a discourse dating back to 2021, Sam Trabucco, the former CEO and crypto quant trader at Alameda Research, elaborated on USDT’s trading dynamics. Trabucco discussed the volatility of USDT’s premium over other stablecoins like USDC, attributing it to the complex creation and redemption process for USDT. He further explained how adept firms like Alameda could leverage these price deviations to align USDT’s price closer to $1, especially during instances where it diverged from this peg.

The significant quantity of USDT minted by Alameda Research underpins the close relationship between large crypto trading firms and stablecoin operations. Grogan’s findings provide a glimpse into the intricate dynamics of USDT’s minting and redemption processes, illuminating the mechanisms that assist in maintaining the stablecoin’s peg to the US dollar.

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Paysafe Halts EUR Deposits for Binance Users: What You Need to Know

by Blockchain News

Key Takeaways

* Paysafe Payment Solutions Limited discontinues EUR deposits for Binance users.

* Affected users have until October 31, 2023, to convert EUR balances to USDT.

* Multiple Binance services, including Spot Trading and Auto-Invest, impacted.

Paysafe Payment Solutions Limited (Paysafe) has unilaterally decided to cease processing EUR deposits for Binance users, effective September 25, 2023, at 00:00 (UTC). The abrupt move has left many in the crypto community puzzled, as no clear reason has been provided for the decision.

Binance has advised Paysafe users to convert their EUR balances to USDT before October 31, 2023, at 00:00 (UTC). Users can also continue to withdraw their EUR balances to their respective bank accounts. The company assures that all funds are secure and that other crypto-related services remain unaffected.

The decision has led to a series of disruptions across various Binance services:

Spot Trading: Effective from September 28, 2023, at 04:00 (UTC), all Paysafe users will be unable to trade EUR spot trading pairs. Open orders on these pairs will start to be canceled from September 28 at 05:00 (UTC).

Buy/Sell Crypto: Starting from September 28, 2023, at 04:00 (UTC), users will no longer be able to buy or sell crypto with EUR balances.

Binance Convert: The Convert feature will be restricted to EUR reduce-only mode from September 28 at 04:00 (UTC).

Auto-Invest: Auto-Invest EUR plans for Paysafe users will be paused from September 28 at 04:00 (UTC).

Binance is actively working to integrate new fiat channels to mitigate the impact of this decision.

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Binance Launches Referral Promotion for African Users with 17,500 USDT in Token Voucher Rewards

by Blockchain News

Binance has rolled out a new referral scheme targeting users in the Africa region. The promotion, which runs from September 18, 2023, 11:00 (UTC) to October 2, 2023, 11:59 (UTC), offers participants a chance to share a total reward pool of 17,500 USDT in token vouchers.

Key Details of the Promotion

Referrer Rewards: Users referring friends to Binance can share a pool of 11,000 USDT in token vouchers. To be eligible:

Register and achieve a minimum of two successful referrals within the promotion timeframe.

A successful referral is defined as a new user who registers using the referrer’s link and completes the KYC process during the promotion period.

The reward distribution based on the number of successful referrals is as follows:

1st Place: 350 USDT

2nd Place: 300 USDT

3rd Place: 200 USDT

4th Place: 150 USDT

5th to 55th Places: A portion of an 8,000 USDT reward pool, with a maximum of 100 USDT per user.

All other eligible participants: An equal share from a 2,000 USDT pool, capped at 100 USDT.

Referral Rewards: The first 1,500 referrals registering and completing KYC will each receive a 3 USDT token voucher. Additionally, the initial 200 of these referrals making a spot trade of at least $20 in cryptocurrency will earn a 10 USDT token voucher.

Terms to Note

Only users who complete KYC in the Africa region are eligible for the rewards.

Each new Binance user can be referred through one mode only.

Referrers can participate in Promotion A, while referrals can earn from both Promotions A and B.

In case of a tie in referrals, the user who reaches the number first gets preference.

USDT token voucher rewards will be distributed within 20 days post-promotion, expiring seven days after distribution.

Binance holds the right to disqualify participants for any dishonest activities, including bulk-account registrations.

Binance may amend these terms without prior notice.

This promotion underscores Binance’s commitment to expanding its user base in the African region. However, potential participants should be aware of the terms and ensure compliance to maximize their rewards.

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Paolo Ardoino: Tether Tests New Bitcoin Mining Platform, Moria, with Enhanced Software Control

by Blockchain News

In a recent update from Paolo Ardoino, the Chief Technology Officer of Tether, it was revealed that Tether is in the testing phase of its new Bitcoin mining platform named Moria. The announcement, made via Ardoino’s official Twitter handle on [Date], highlighted the integration of the first containers and miners into the platform.

According to the details shared, the Moria platform has undergone significant software enhancements. All Power Distribution Unit (PDU) management and miner interactions, including settings related to frequency and power, are now entirely software-driven. This level of automation ensures that any write actions on the platform necessitate multisig (multi-signature) approval, adding an extra layer of security.

Furthermore, Ardoino emphasized the platform’s peer-to-peer (P2P) capabilities, stating it’s “All P2P. Perfect for #IoT.” This suggests that Moria is designed to seamlessly integrate with Internet of Things (IoT) devices, potentially revolutionizing the way mining operations interact with smart devices.

While Ardoino described the advancements as “almost magic,” it’s essential to note that the full capabilities and potential applications of the Moria platform remain to be seen as it’s still in the testing phase.

It’s worth mentioning that while Tether is primarily known for its stablecoin, this move indicates a diversification into the Bitcoin mining sector. However, as with all technological advancements, only time will tell how this development will impact the broader cryptocurrency ecosystem. Beyond its flagship product, USDT, Tether is also expanding its business into Bitcoin mining and adoption.

On August 26, 2023, as reported by Blockchain.News, Ardoino addressed growing speculation surrounding a photo showcasing a container with the “Tether Energy” logo. Confirming the photo’s authenticity, he unveiled it as a depiction of a control room at a nearing-completion site in Latin America. This site, under the Tether Energy venture, aims to establish global partnerships for renewable energy production and Bitcoin mining. Ardoino emphasized the importance of geographically decentralizing Bitcoin mining, countering the current concentration in specific regions. The site is expected to commence operations in the coming weeks.

Earlier, on August 5, 2023, Ardoino shared insights into Tether’s development endeavors. The team is nearing the completion of advanced JavaScript libraries designed to interact with various cryptocurrency miners. These libraries, described as “really high-quality stuff,” will play a pivotal role in the Moria mining farm orchestration tool. This tool, based on technology from Holepunch.to, where Ardoino also serves as a co-founder and Chief Strategy Officer, facilitates the creation of peer-to-peer (P2P) programs without servers. Ardoino hinted at the tool’s potential expansion to monitor energy production, reflecting the increasing emphasis on energy efficiency in crypto mining.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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OKX Announces Largest-Ever Trading Competition with 2M USDT and Tesla Model 3 as Prizes

by Blockchain News

OKX, a global Web3 technology company and crypto exchange, has launched its most ambitious trading competition to date, featuring a prize pool exceeding 2 million USDT and a Tesla Model 3. The competition, part of the company’s “Trade Like a Pro” campaign, is set to commence on September 20 and will focus on trading USDT perpetual contracts.

Team-Based Competition with Eligibility Criteria

The competition is designed to foster community engagement and will be conducted in a team-based format. OKX affiliates who have completed their KYC process can apply to become team leaders. To qualify as a team member, users must hold at least 100 USDT in assets. The first 200 qualified participants to register will receive a 10 USDT contract voucher.

Registration for team members is open from September 8 to October 3, while team leaders can register until September 20. The competition itself will run from September 20 to October 3.

Unlockable Prizes for Mass Participation

Should the competition attract more than 25,000 qualified participants, additional prizes such as an Apple Watch S8s, Airpods Pros, and iPhone 15 Pros will be made available, alongside the Tesla Model 3.

Prize Distribution Details

Upon the competition’s conclusion, a prize pool of up to 1.5 million USDT will be distributed among the top 20 teams based on their profit and loss percentage (PnL%). An additional 500,000 USDT will be awarded to the top 15 individual traders, also based on PnL%. The team leader who amasses the highest number of team members will receive up to 16,000 USDT.

Strategic Move in OKX’s Brand Campaign

Haider Rafique, OKX Global Chief Marketing Officer, stated, “This trading competition is a planned next step to our latest ‘Trade Like a Pro’ campaign. Our goal is ultimately to have the best traders on our platform. This competition brings the best talent together in the OKX trading grounds.”

The “Trade Like a Pro” campaign was initially launched on August 14 and features real users sharing their experiences with OKX products in 45- and 15-second video spots.

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Shib Inu Shibarium Introduces Wrapped BONE and Hosted Blockscout Explorer

by Blockchain News

Shib Inu’s Shibarium, a Layer 2 (L2) blockchain network, recently celebrated a significant milestone of reaching 1 million wallets and is on the brink of achieving 1 million transactions, as reported by Blockchain.News.

The network has also launched its hosted version of the Blockscout explorer and expanded its token bridge to include multiple tokens like USDT, USDC, DAI, WBTC, and XFUND.

Shibarium Hits 1 Million Wallets

Shibarium, a Layer 2 blockchain network, has reached a milestone of 1 million wallets, according to an update by Shiba Inu developer Kaal Dhairya on September 3, 2023. The network aims to maintain its status as one of the fastest and most cost-effective L2 solutions. While some users have expressed discontent over the low gas fees, the network views it as a strength.

Blockscout Explorer Now Available

Shibarium has introduced a hosted version of the Blockscout explorer, available on Shibariumscan. The move allows the protocol team to focus on network upgrades. The Blockscout team will ensure the explorer remains operational and the blockchain is fully indexed. Users are encouraged to “Do Your Own Research” (DYOR) and verify contracts using the Blockscout contract verification system.

Token Bridge Expansion

Shibarium has expanded its token bridge to include additional tokens. The newly mapped tokens are as follows:

USDT: 0xaB082b8ad96c7f47ED70ED971Ce2116469954cFB

USDC: 0xf010f12dcA0b96D2d6685bf4dB3dbB4Ad500B6Ad

DAI: 0x0726959d22361B79e4D50A5D157b044A83eC870d

WBTC: 0xE984D89fb00D0B44E798A55dc41EA598B0b0899d

XFUND: 0x89dc93C6c12CaE47aCAf4aD9305d7A442C30dBB2

Wrapped BONE Contract Verified

The Wrapped BONE (WBONE) contract has been verified and is available for public scrutiny. The contract address is 0xC76F4c819D820369Fb2d7C1531aB3Bb18e6fE8d8.

Future Plans

Shibarium plans to renounce the Bone contract within the week and will add more validators to the network. The platform encourages developers to build on top of Shibarium, aiming for the next big innovation to be founded on their network.

Conclusion

Shibarium’s milestone of 1 million wallets and imminent 1 million transactions mark it as a growing force in the Layer 2 blockchain space. With the introduction of the Blockscout explorer and the expansion of its token bridge, Shibarium is not just scaling but also providing tools for transparency and interoperability. As it moves forward, the network aims to foster innovation and empower its community to lead a self-sovereign life.

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OKX Discloses Monthly Proof of Reserves, Holding $10.4 Billion in BTC, ETH, and USDT

by Blockchain News

OKX, a global Web3 technology firm and cryptocurrency exchange, disclosed its 10th consecutive monthly Proof of Reserves (PoR) report today. The report shows that the exchange holds USD$10.4 billion in primary assets, such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).

In an effort to understand public sentiment about PoR and transparency, OKX conducted two Twitter polls. The data reveals that 84% of respondents consider monthly PoR reports to be either ‘somewhat important’ or ‘very important.’ Additionally, 88% of respondents indicate that transparency is a significant factor in choosing a crypto platform.

The August PoR report from OKX encompasses 22 commonly traded digital assets and demonstrates that the exchange has maintained a reserve ratio above 100% for ten consecutive months. The reserve ratios for BTC, ETH, and USDT are currently 102%, 102%, and 103%, respectively. Lennix Lai, OKX Global Chief Commercial Officer, stated, “The 38% increase in assets under management on OKX coincides with our focus on transparency, as indicated by our monthly PoR reports.”

Since the launch of its PoR page in late 2022, the exchange reports that hundreds of thousands of users have engaged with its open-source verification tool. This tool enables users to independently verify the solvency of OKX while maintaining their privacy. To date, the exchange has made over 210,000 addresses public for its PoR program.

OKX plans to continue publishing monthly PoR reports and is developing tools for user verification of its solvency and asset backing.

The firm, which has over 50 million global users, is known for its crypto trading services and publishes its Proof of Reserves on a monthly basis as part of its operational transparency.

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Over 115 Billion USDT Used in Southeast Asia’s Illicit Activities in 2022: Revealed Bitrace

by Blockchain News

Bitrace, a leading blockchain analytics firm, has unveiled data highlighting the scale of illegal cryptocurrency activities in Southeast Asia. The insights challenge prevailing media narratives, offering a more detailed perspective on the region’s crypto landscape.

Cryptocurrencies, celebrated for their anonymity, decentralization, and borderless capabilities, have found favor among criminal groups in Southeast Asia. Their involvement spans a range of activities, from online gambling and fraud to money laundering. These unique attributes of digital currencies have made illicit operations more covert, enabling the rapid movement of unlawful funds.

Tether (USDT), a stablecoin pegged to the US dollar, stands out as the primary currency in these illegal undertakings. Bitrace’s findings indicate that in 2022, a staggering 115 billion USDT was implicated in illegal and gambling activities under their purview.

Diving deeper into the flow of this vast sum, 371.6 billion USDT was channeled into online gambling, 697.8 billion USDT was earmarked for money laundering, and a relatively smaller figure, less than 4.6 billion USDT, was associated with fraudulent schemes.

The ramifications of this illicit USDT flow extend to various trading platforms. In 2022 alone, trading platform accounts saw an influx of over 14.6 billion USDT from these activities. While major platforms inadvertently process a significant chunk of these transactions, there’s a discernible preference among Southeast Asian illegal crypto operators and gamblers, mainly Chinese, for certain exchanges.

Yet, amidst these challenges, the transparent nature of blockchain ledgers emerges as a beacon. Bitrace’s team, equipped with an extensive array of address labels and open-source intelligence, can effectively trace funds tied to illegal crypto activities.

In conclusion, as cryptocurrencies continue to be scrutinized for their ties to illicit operations, it’s imperative to crack down on illegal use of cryptos and stablecoins, especially USDT.

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Breaking: PayPal Launches Stablecoin PYUSD

by Blockchain News

On August 7, 2023, PayPal (NASDAQ: PYPL) announced the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), aimed at transforming payments in web3 and digitally native environments. The announcement was made in San Jose, California, and marks a significant step in bridging the gap between fiat and digital currencies.

PayPal USD: Features and Functionality

PayPal USD is designed to contribute to the opportunities that stablecoins offer for payments. It is 100% backed by U.S. dollar deposits, short-term U.S Treasuries, and similar cash equivalents. The stablecoin is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company.

Starting from the announcement date and rolling out in the coming weeks, eligible U.S. PayPal customers who purchase PayPal USD will be able to:

Transfer: PayPal USD between PayPal and compatible external wallets.

Send: person-to-person payments using PYUSD.

Fund purchases: with PayPal USD by selecting it at checkout.

Convert: any of PayPal’s supported cryptocurrencies to and from PayPal USD.

PayPal’s CEO, Dan Schulman, emphasized the need for a stable instrument that is digitally native and easily connected to fiat currency like the U.S. dollar, stating, “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”

Profit of Stablecoin

Stablecoins have proven to be quite profitable, and PayPal’s entry into this market is indicative of its potential. According to Tether, the issuer of USDT, its operational profits for April to June 2023 are over $1 billion, marking a 30% increase quarter over quarter.

As a traditional payment giant, PayPal can hardly ignore the huge market of stablecoin, and its launch of PayPal USD reflects a strategic move to capitalize on this growing and lucrative sector.

Building Bridges: Fiat and Web3

PayPal USD will be available to consumers, merchants, and developers to seamlessly connect fiat and digital currencies. As an ERC-20 token issued on the Ethereum blockchain, PayPal USD will be accessible to a large and growing community of external developers, wallets, web3 applications, and exchanges.

The stablecoin is designed to reduce friction for payments in virtual environments, facilitate fast transfers of value, enable direct flows to developers and creators, and foster continued expansion into digital assets by major brands. It will be compatible with the web3-specific ecosystem from day one and will soon be available on Venmo.

Transparency and Regulation

PayPal USD is issued by Paxos Trust Company, a fully licensed entity subject to regulatory oversight by the New York State Department of Financial Services. In June 2022, PayPal was issued a BitLicense by NYDFS.

Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. Beginning in September 2023, Paxos will publish a public monthly Reserve Report for PayPal USD, outlining the instruments composing the reserves. A third-party attestation of the value of PayPal USD reserve assets will also be issued by an independent accounting firm, conducted in accordance with standards established by the American Institute of Certified Public Accountants (AICPA).

Conclusion

PayPal’s launch of its U.S. dollar stablecoin marks a significant milestone in the integration of traditional finance with the emerging digital economy. By providing a transparent, redeemable, and regulated stablecoin, PayPal is positioning itself at the forefront of the digital payment revolution, leveraging its decades-long experience in payments to bridge the gap between fiat and web3. The introduction of PayPal USD reflects the growing trend of financial institutions embracing blockchain technology and digital assets, offering new possibilities for consumers, merchants, and developers alike.

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