Bitcoin holds strong in the midst of the banking crisis, trading on Binance was down for two hours and a new token sees $2 billion in volume on its very first day. These stories and more this week in crypto.
Bitcoin is Becoming a Stable Alternative
Bitcoin is suddenly looking like a safe haven as the traditional world of stocks, bonds and banks are in crisis. The infamously volatile cryptocurrency seems solid as a banking meltdown is driving long established markets downward. Bitcoin is up 20% since the beginning of this month, more than doubling the gains of traditional safe haven gold, as more and more investors see the value of bitcoin’s core ethos, a financial asset out of the reach of centralized manipulation.
Software Bug Causes Binance Outage
Binance was forced to suspend spot trading for two hours on Friday because of a bug related to its trailing stop loss feature. News of the outage caused a $700 dip in the price of bitcoin, but by the time that Binance’s trading came back online a few hours later, bitcoin had already returned to its prior price level.
Arbitrum’s ARB Token Launch Generates $2Bn
Ethereum-focused scaling solution, Arbitrum airdropped its long awaited new token, ARB, which will serve as a means of governance as token holders can propose and vote on protocol upgrades. The launch of ARB saw over $2 billion in trading volume on its first day, although the price quickly dropped more than 85% as airdrop recipients quickly unloaded their newly acquired holdings.
Messaging App Telegram Integrates Tether Payments
Messaging service Telegram has added a new feature enabling users to send each other the world’s largest stablecoin, Tether. Users can now buy, swap, and make peer to peer trades with dollar-pegged USDT on the Tron Network and can also send it directly to other users with no transaction fees.
SEC Issued Warnings to Coinbase
The SEC has issued Coinbase a Wells notice, warning the exchange that they’ve identified violations of US securities laws. A Wells notice is one of the final steps before the SEC formally issues charges. Coinbase said the warning would not mean there would be any changes to its services and that they’re confident in the way they run their business. Coinbase stock fell over 10% after the news broke.
Interpol Confirms Arrest of Terra Founder
Interpol has arrested Do Kwon, founder of collapsed token issuer, Terra Labs at the Montenegro airport while reportedly in possession of counterfeit documentation. Last year, Terra’s USD stablecoin lost its value, wiping billions off the crypto market and causing panic across the sector. Do Kwon is wanted in South Korea, Singapore and the US on fraud and other charges.
Nasdaq to Launch Crypto Custody Service
Nasdaq confirmed plans to debut its crypto custody services by the end of second quarter. Following a series of bankruptcies in the industry, the stock market exchange operator hopes to fill the crucial role of crypto middleman. NASDAQ is working with the New York Department of Financial Services to put all of the regulatory pieces in place.
Crypto Executives: U.S. Regulation is Unclear
Crypto executives have expressed their frustration at the US government for its lack of clear regulation. Speaking at Paris Blockchain Week, executives from Algorand, Ripple, Bittrex, and Consensys all shared similar thoughts. Ripple’s president called out regulators with regard to the EU´s MICA agreement, saying “it is remarkable when the US has one government and they can’t get their act together”.