Synopsis
- Binance and CZ settle with the SEC
- Understanding Javier Milei and dollarisation
- Blast – an ETH Layer-2, records a TVL of $570 million
- Biggest winner and loser of the week
Key Observations
Analysis
What does CZ’s settlement mean for Binance and crypto?
Binance has reached a settlement of $4.3 billion with the U.S. Securities and Exchange Commission (SEC) following extensive scrutiny over compliance issues. The settlement follows Binance CEO Changpeng Zhao’s admission of guilt to anti-money laundering (AML) charges and his subsequent resignation from the position.
As part of the settlement, Zhao has agreed to a $50 million fine, which will be credited against payments made to the Commodity Futures Trading Commission (CFTC) if paid by the sentencing date. Zhao is prohibited from making any public statements contradicting his admission of guilt or the facts established in the case. He has stepped down as CEO, and Binance has imposed a three-year ban on his involvement in the company’s operations, starting from the appointment of an independent monitor.
At the conclusion of the plea agreement, both Binance’s CEO and chief compliance officer must certify compliance with the terms outlined in the agreement. This landmark settlement marks a significant chapter in the cryptocurrency industry. This has led to optimism surrounding ETFs and renewed open interest in crypto.
Is Javier Milei Argentina’s crypto messiah?
Argentina’s President-elect Javier Milei has reaffirmed his commitment to shutting down the country’s central bank, labeling it a “non-negotiable matter,” as per a Reuters report. Milei’s radical reform agenda is no cakewalk. The plans encompass dollarizing the economy, closing the central bank, and privatizing state companies such as YPF.
“We have to understand that the central bank is a scam,” said Milei earlier this year when asked about Bitcoin. “What Bitcoin is representing,” he continued, “is the return of money to its original creator, the private sector.”
Milei, however, has not gone as far as proposing making Bitcoin legal tender. He’s trying to eliminate the country’s central bank and dollarizing an Argentine economy that’s been hit by inflation that reached 142% in October.
Introducing Blast, the new Ethereum L-2 with $500 million TVL
Blast is an Ethereum Layer 2 network unique in integrating native yield for ETH and stablecoins. ETH deposits are automatically staked with Lido, generating a 4% yield, while stablecoins are converted to DAI and staked with MakerDAO to earn a 5% yield.
Blast was founded by the face behind the NFT marketplace Blur and has raised over $20 million from the likes of Paradigm, Primitive Ventures, and other angel investors. Blast recently launched its “Early Access” phase, amassing an impressive $564 million in Total Value Locked (TVL) within a short period.
However, while heralded as one of the fastest-growing blockchains, concerns have emerged. Blast’s rapid ascent to $500 million TVL in just five days raises eyebrows, especially considering the platform is yet to have a live product.
Additionally, withdrawals are unavailable until February 2024, and the control of project funds by five unknown multi-sign wallets can sound skeptical.
Top gainer of the week: Uniswap (UNI) up by 22.57% ⬆️
Opinions:
Fundamental Analysis:
The increased development activity observed in UNI implies ongoing efforts to enhance and refine Uniswap, with the potential introduction of new features and optimizations. Such improvements not only signify a commitment to platform advancement but also have the capacity to attract a broader user base and developers, thereby bolstering Uniswap’s standing within the decentralized finance (DeFi) sector.
The platform’s strategic focus on reducing gas fees through innovations like Uniswap v4 further underscores its adaptability to the evolving needs of the DeFi space, positioning Uniswap for sustained success and prominence in the market.
Technical Analysis:
The moving average has acted as support through the rally-up. It is likely that UNI shall pull back to August levels of 6.25 in the coming days. The buy pressure indicates that UNI should see a correction before moving up.
Oscillator indicators: 0 bearish, 9 neutral, 2 bullish
Moving average indicators: 1 bearish, 1 neutral, 13 bullish
Biggest loser of the week: Binance Coin (BNB) down by 13.30%
Opinions:
Fundamental analysis: BNB has dipped by over 13% in the last week, owing to Binance settling with the SEC. As a result, Binance has seen outflows of over $1.2 billion. There was a downtrend caused by the sell pressure following CZ’s plea.
Technical analysis: We anticipate that BNB will continue a downtrend to October levels before attempting to break the resistance offered by the moving average. The current level offers enough support for BNB to test the resistance at 233.
Oscillator indicators: 2 bearish, 8 neutral, 1 bullish
Moving Average indicators: 13 bearish, 1 neutral, 1 bullish
Conclusion
The cryptocurrency market was marked with important events. Binance and CZ fold before the SEC. Blast sees a frenzy of activity, and Javier Milei leading Argentina to crypto round up the activity of this week. The activity in the market suggests that the market shall test resistance levels of 38,000 before moving up.
