Despite major US stocks retreating on Friday and a slight drop from weekly highs, major cryptocurrencies remain on track to post substantial weekly gains. Bitcoin is on track to have gained around 9.5%, which would mark its strongest week since March. Ethereum, meanwhile, is expected to gain over 18%, which would mark its best week since last August.
Analysts said last week’s announcement of a date for Ethereum’s so-called “merger” of a proof-of-work to proof-of-stake consensus mechanism, which is now tentatively scheduled for September, has given ETH a substantial boost. Alternative.me’s Bitcoin Fear & Greed Index, often referred to as the crypto market sentiment gauge, was last at 31/100 and in a state of fear.
Crypto Winter: Nexo deposits in decline
Crypto lending platform Nexo has, so far, seemingly weathered the winter crypto storm well. While many of its rival companies, including Celsius Network, Voyager Digital, Vauld, Babel Finance and many others, were forced to halt withdrawals and in some cases declare bankruptcy, Nexo projected its strength and signaled his desire to recover his rivals.
But according to data released by an accounting firm that Nexo contracts to provide attestations on its reserves, the lending platform has suffered substantial drawdowns in recent months. According to reports from CoinDesk, Nexo’s client liabilities had fallen to $3.9 billion on Thursday from $6.9 billion on May 12. Given Bitcoin’s roughly 20% decline since then, some of that decline can be explained by the general drop in cryptocurrency prices.
SEC must prove crypto tokens are securities in Coinbase insider trading case
Speaking on CoinDesk TV on Friday, a legal expert said the US Securities and Exchange Commission will first have to prove that some of the cryptocurrencies listed on the Coinbase exchange are cryptocurrencies before they can prosecute. insider trading charges against one of the exchange’s former product managers. .
US law enforcement arrested the former Coinbase chief product officer and one of his associates for leaking information about soon-to-be-listed cryptocurrencies, allowing them to take advantage of the official announcement . The SEC has opened a parallel case against the former Coinbase product manager, accusing him and his associates of securities fraud.
But that assumes the tokens they profited from insider trading on are securities. The SEC says nine of the 25 tokens involved in the insider trading scheme are securities. Coinbase claims not to allow securities to be traded on its platform and the SEC does not charge Coinbase.
Texas Republicans push to protect right to use crypto in state bill of rights
The Republican Party of Texas has called for the inclusion of a new clause in the State’s Bill of Rights that would protect the right of citizens to own, hold and use any medium of exchange they choose, including including cryptocurrency. “The right of persons to own, hold and use a mutually agreed medium of exchange, including cash, coins, bullion, digital currency or certificates, when trading and contracting for goods and services shall not be infringed,” reads part of the clause that Texan Republicans want added.
Republican officials, including state senator Ted Cruz, are working to further cement the state’s status as a crypto-friendly hub.
Crypto will have 1 billion users by 2030, says BCG report
Global cryptocurrency adoption will hit 1 billion by 2030, according to the findings of a report released Friday by the Boston Consulting Group (BCG) in collaboration with Bitget and Foresight Ventures. BCG compares the current adoption curve of crypto technology to that of early Internet adoption and, therefore, concludes that there is “a lot of growth to come.” According to the report, only 0.3% of individual wealth is stored in crypto, compared to around 25% in global stock markets.