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🔴 Scary Week for Stablecoins | This Week in Crypto – Mar 6, 2023

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A crypto bank’s troubles drive the market lower, Coinbase suspends trading of a major stablecoin, and a new survey shows how Americans really feel about the traditional financial system. These stories and more this week in crypto.

Cryptos Drop 5% Over Silvergate Concerns

Shares of Silvergate Capital dropped over 50% after the crypto bank delayed the filing of its annual report saying it needed more time to complete certain audit procedures. The announcement raised questions about Silvergate’s ability to remain solvent, leading to a price drop for all of the leading cryptocurrencies.

Coinbase to Suspend BUSD Listing

Coinbase will suspend trading of BUSD, explaining that the stablecoin no longer meets its listing standards.  Coinbase CEO Brian Armstrong said the exchange decided to suspend trading of Binance USD because the company had concerns about its liquidity in the light of the recent orders made by US regulators that the stablecoin’s issuer, Paxos, cease minting the coin.

WSJ: Tether Used Fake Documents

According to the Wall Street Journal, companies backing the world’s largest stablecoin, Tether, used fake documents and shell companies to help its parent company get into the banking system. The Journal also added that the U.S. Justice Department is currently investigating Tether. Tether countered with a statement saying that the Journal’s report was wholly inaccurate and misleading.

Binance is Questioned About Illegal Practices

Three US senators, led by Elizabeth Warren, have asked Binance to provide documentation pertaining to potentially illegal business practices. Addressing the exchange’s CEO, Changpeng Zhao directly, the lawmakers said the actions have called into question the legitimacy of the business and the safety of customers’ assets. Binance faces multiple investigations by regulators following the collapse of crypto exchange FTX.

Yuga Labs launches Bitcoin NFTs

The team behind the wildly popular Bored Ape Yacht Club NFTs, Yuga Labs launched a new collection of Bitcoin NFTs. Riding the wave of the Ordinal inscription craze, the firm unveiled a limited edition collection of 300 generative pieces inscribed on Satoshis on the Bitcoin blockchain. The collection called Twelvefold explores the relationship between time, mathematics, and variability.

Apple Holds Back Uniswap’s Mobile App

Uniswap Labs, the developers behind the world’s largest decentralized exchange, Uniswap, has plans to launch a crypto wallet for iPhone users, but Apple is refusing to support the idea. A Uniswap spokesperson said that Apple won’t yet green-light the launch but they are not being told why, even though the team has responded to all of Apple’s questions and concerns.

Solana Vows to Improve After Outage

Solana Labs has vowed to make improvements to its upgrade process to ensure network reliability, after the chain experienced yet another outage following last week’s update. Block production on the chain came to a halt, meaning transactions weren’t processed, and users’ crypto assets couldn’t be moved. The co-founder admitted the recent issues made it clear how maintaining stability during updates remains a challenge.

Coinbase Report: 20% of Americans Own Crypto

A US survey commissioned by Coinbase suggests that 20% of American adults currently own crypto and 29% plan to buy or trade crypto in the next 12 months. Coinbase said the vast majority of Americans want to see the financial system updated as they are frustrated by traditional finance and many believe crypto can be a solution.

That’s what’s happened this week in crypto, see you next week.

 

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