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- The Crypto Compass Issue #41
The Crypto Compass Issue #41
Fake bitcoin ETF report triggers price jump to $30k? Read it in our weekly newsletter now! Brought to you by BitcoinWalletSG.
Hello to our dear readers and crypto enthusiasts!
Welcome back to our weekly crypto and Web3 newsletter! This week, Cointelegraph made a big mistake that shook the crypto market. Their mistake shows how powerful news can be and how it can change market feelings quickly. The ups and downs in the market remind us to be careful and check facts when we hear news. We need to make sure what we're hearing is true, especially in the crypto world.
Bitcoin Price Spikes on False ETF Approval Rumor, Triggering $100M in Liquidations
A false tweet about the US approval of a Bitcoin ETF led to a brief spike in Bitcoin's price, pushing it above $30,000. The rumor, originating from crypto media outlet Cointelegraph's account on platform X, resulted in a swift $2,000 price increase and led to liquidations exceeding $100 million within an hour.
BlackRock confirmed that the SEC has not approved its spot bitcoin ETF, contradicting the misleading information in the initial tweet. The SEC had previously postponed its decision on BlackRock’s ETF application until January of the following year. Following the rumor, significant market volatility was observed, with trading data showing a sharp 7% price hike within 30 minutes on the Binance BTC/USDT market.
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Crypto Fear & Greed Index - 52
Emerging Social Finance Platforms Innovate
Social finance platforms are emerging with enhanced features, seeking to challenge the popular FriendTech app and mainstream platforms like X (formerly Twitter). Originating from Coinbase's Base platform, FriendTech allowed users to buy keys for access to influencers' exclusive group chats, with prices rising as demand grew.
However, as FriendTech maintained its basic functionality, newcomers like PostTech, StarsArena, and New Bitcoin City introduced diverse features, from social feeds reminiscent of Twitter to unique financial tools. While the potential for these newcomers to rival established platforms remains uncertain, there's growing optimism within the crypto community about their mainstream potential.
JPMorgan Debuts Blockchain-Based Collateral Settlement with BlackRock
JPMorgan Chase & Co. has successfully initiated its first blockchain-enabled collateral settlement for clients. Dubbed the "Tokenized Collateral Network" (TCN), the platform allowed BlackRock Inc. to convert shares from one of its money market funds into digital tokens. These were subsequently transferred to Barclays Plc as collateral for an OTC derivatives trade.
This move signifies a significant step in applying blockchain technology commercially within banking. However, the transaction volumes remain relatively small in comparison to JPMorgan's entire business operations. The system offers instantaneous collateral movement, compared to traditional day-long processes, aiming to improve efficiency by freeing up capital for ongoing transactions.
JPMorgan anticipates expanding the range of assets that can be used as collateral, including equities and fixed income. The bank's foray into blockchain also includes JPM Coin, facilitating dollar and euro transactions, and a blockchain-based repo application.
Other financial giants, like Goldman Sachs, are also exploring the potential of blockchain in various financial processes.
Happenings of the week
Account Labs Secures $7.7M for Google-Integrated Smart Crypto Wallet
Singapore's Account Labs has raised $7.7 million from investors, including Amber Group, MixMarvel DAO Ventures, and Qiming Ventures, for its innovative UniPass Wallet. This self-custody application uses account abstraction to offer a user experience akin to online banking, eliminating the need for complex seed phrases and allowing easy Google logins. The wallet, initially targeting Southeast Asia, notably the Philippines, also facilitates "gasless" transactions, reducing costs, and streamlining processes by allowing payments with stablecoins like USDC or USDT.
Stay tuned for more updates next week! If you haven't yet, hit that subscribe button to ensure you never miss an issue. Found value in this edition? Please consider sharing it with your friends, colleagues, and fellow crypto enthusiasts. Together, let's navigate the world of crypto with clarity and insight!
