SBF Guilty and Bittrex fall from Grace | Crypto Weekly Brew #014
In this week’s crypto weekly brew, we dive into the stories that have been hitting the headlines, from courtroom dramas to stablecoins, whistle-blowers and the cyclical journey of cryptocurrency exchanges, please read on to get more information.
SBF Convicted on All Counts
The news of Sam Bankman Fried also known as SBF being found guilty on all charges, in his battle has sent shockwaves throughout the cryptocurrency community. Many individuals directly impacted by SBF's actions are celebrating this outcome. However, it is not about one person's fate; it signifies a milestone for the entire cryptocurrency industry. The aftermath of crypto market turbulence and fraudulent activities has left a gloomy cloud hanging over the crypto markets and the legal consequences will continue to reverberate for years to come. While regulatory measures are slowly taking shape, there is a realization that the crypto industry must confront its past to move forward.
Growing Stable Coin Supply
There is a change happening in the world of cryptocurrency. The period of stagnant capital in the market is ending. The increase in the supply of stablecoins indicates a noticeable influx of capital. This challenges the idea that crypto funds were stagnant as stablecoins are now being created to use them within the crypto ecosystem. This development does give some hope, however, it's important to note that this indicator alone doesn't determine market health; it is one piece of a puzzle that shows how crypto risk appetite is evolving.
Whistleblowers Exposing Cryptocurrency Misdeeds
In 2023 the U.S. Commodity Futures Trading Commission (CFTC) made a revelation; most reports from whistle-blowers were related to the cryptocurrency industry. A staggering total of 1,530 tips shed light on the aspects of the crypto world. Whistleblowers have played a role in exposing irregularities and fraudulent activities within this industry. This trend can be attributed to factors, including the market turbulence experienced in recent years. The inherent transparency and anonymity offered means many more are coming forward. Additionally, scrutiny intensifies, during times of market volatility. When investors are focused on their gains during periods, they may overlook any misconduct. However, when the market becomes unstable, and wallets feel lighter there is motivation to uncover wrongdoing.
Bittrex's Closure in the U.S
Bittrex is currently facing legal closure in the United States. Alongside exchanges like Poloniex, Bittrex once held a position as the most popular exchange in the world of cryptocurrency trading. It could be said that Bittrex was the Binance of its time. However, Bittrex’s downfall serves as a lesson within the crypto industry. The decisions made to prioritize compliance over gaining an edge led to its decline. While other exchanges embraced strategies and secured larger market shares Bittrex slowly faded into obscurity due to its commitment to following regulations. The Bittrex story stands as a reminder of the complexities and challenges involved in navigating the landscape of crypto. And the adage still applies, you are never too big to fail.
Thank you for reading and hope you have a good rest of the day!
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