Sun Shines on Curve, BALD gets a Haircut, and Uber Taps into Bitcoin

Welcome to Daily Digest, where we surface trending news in crypto-based on conversations we found on Twitter, news publications, blog posts, and other social media, powered by the Coinfeeds platform.

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Market Updates

News

Curve Finance's Debt Situation and Market Impact

Curve Finance founder Michael Egorov has created a new liquidity pool to address the debt situation with Fraxlend. Tron founder Justin Sun has purchased 5 million CRV tokens from Curve Finance to support the token price and prevent the liquidation of a massive loan tied to Curve Finance founder Michael Egorov. This move aims to protect the $168 million stash of Egorov's money at risk of being liquidated and prevent further bearish sentiment among traders. However, traders are piling into short positions on CRV as concerns grow over the potential liquidation of Egorov's massive crypto borrowings. You can find more details of this possible contagion event in our explainer here - https://coinfeeds.beehiiv.com/p/curve-possible-defi-contagion

Bald Meme Coin's Severe Drop Raises Suspicions of Alameda Research and FTX Involvement

The BALD Meme Coin, designed to jest at Coinbase CEO Brian Armstrong's hairless head, has been thrown into a whirlpool of controversy following its 85% price plunge shortly after launch on Coinbase's Ethereum Layer-2 network. The precipitous fall came on the heels of the token's deployer rugging out $1.9 million liquidity from the market. This startling move, which the developer refutes as token selling, has sparked immense uproar, leading to losses for many investors. In a fresh twist, Wintermute Head of Research, Igor Igamberdiev, has revealed potential ties between the Bald token developer and Alameda Research. The discovery is rooted in on-chain data that shows shared deposit accounts on FTX Exchange between the deployer and Alameda. Furthermore, discussions are rife on Crypto Twitter, speculating the secret involvement of FTX founder Sam Bankman-Fried in the controversial BALD rug pull.

Uber to Accept Bitcoin and Cryptocurrency Payments

Uber CEO Dara Khosrowshahi has announced that the company will accept Bitcoin and cryptocurrency payments in the future. Khosrowshahi stated that while Bitcoin and other cryptocurrencies are currently valuable as a store of value, barter transactions are expensive and not environmentally friendly. However, if a more cost-effective and eco-friendly swap mechanism is developed, Uber will support cryptocurrencies.

Binance's Expansion in Japan

Binance Japan, a subsidiary of Binance, has announced that it will start onboarding users in Japan on its newly launched platform. Binance CEO Changpeng 'CZ' Zhao plans to introduce smaller algorithmic stablecoins to provide investors with alternatives to existing stablecoin giants like Tether and Binance USD. Binance Japan plans to list 34 tokens as it prepares to re-enter the Japanese market.

Terraform Labs' Legal Battle with SEC

Terraform Labs, the issuer of the Terra algorithmic stablecoin, has been allowed to subpoena FTX, a bankrupt crypto giant, for information relevant to its defense against a Securities and Exchange Commission (SEC) enforcement action. However, a federal judge denied Terraform Labs' motion to dismiss an SEC lawsuit, stating that the SEC has jurisdiction and a plausible claim that TerraUSD (UST), the Anchor Protocol, and LUNA may have violated securities law.

Florida Governor's Stance on Cryptocurrencies and CBDCs

Florida Governor Ron DeSantis has expressed his support for the crypto sector and his intention to ban the central form of the US dollar CBDC. DeSantis stated that he is against the concept of a digital dollar and plans to prohibit CBDC currencies if he is elected as US president. He also criticized President Joe Biden's tax policies on Bitcoin mining and the burdensome Executive Order signed by the Biden administration.

Litecoin's Halving Event and Silver Collector Cards

As the Litecoin halving event approaches, the Litecoin Foundation and Ballet are planning to sell 500 collectible cards made of fine silver and loaded with at least 6.25 litecoin (LTC). The cards will be sold for approximately $1,000 each, with a tangible value estimated at around $621. The sale is aimed at capitalizing on the increased interest in Litecoin due to the halving event.

IRS's Ruling on Crypto Staking Rewards

The IRS has stated that rewards earned through validation activities in a proof-of-stake network must be included as part of a taxpayer's gross income. This means that U.S. cryptocurrency investors who earn rewards from staking services will need to report the value of those rewards for tax purposes.

Yuga Labs' Acquisition of Roar Studios

Yuga Labs, the crypto tech startup behind the Bored Ape Yacht Club NFT series, is set to acquire gaming and music firm Roar Studios. The founder and CEO of Roar Studios, Eric Reid, will join Yuga Labs as the general manager of Otherside, their upcoming blockchain-powered metaverse game. The acquisition aligns with Yuga Labs' larger Web3 metaverse strategy.

As always, stay tuned for more updates in crypto!