Crypto Morning: Controversial businessman buys Huobi Exchange; Bitcoin (BTC) retreats with defaults in the DeFi market

The morning of this Monday (10) is off to a tense start on international markets, with the conflict between Russia and Ukraine escalating, inflation expectations in the US and a default on a loan given to TrueFi, a decentralized credit protocol.

As a result, Bitcoin (BTC) is down 1.1% in the last 24 hours, trading at $19,186.41, according to data from CoinGeck. Ethereum (ETH) fell 1% to $1,301.53.

In real terms, Bitcoin is operating close to stability, down 0.2% and trading at R$101,546.55, according to the Bitcoin Portal (IPB) index.

The most traded altcoins are in the red, including XRP (-0.6%), Cardano (-1.7%), Solana (-0.5%), Dogecoin (-2.3%), Polkadot (-0 .7%), Shiba Inu (-2.2%), Polygon (-0.4%) and Alavanche (-1.4%).

Binance Coin has dropped 1.5% in the last 24 hours after a hacker exploited a flaw in the BNB Smart Chain (BSC) code. The attacker still has direct access to the $83.3 million in stolen cryptocurrencies, and now the BNB Chain team will consult with the community on what to do with the hacked funds.

FTT, the native token of the cryptocurrency exchange FTX, has depreciated 1.4% in the last 24 hours. The token rose 7% on Friday, following the announcement of an expansion of the partnership between the broker and Visa to offer debit cards in more than 40 countries, with a focus on Latin America.

Huobi shopping

During the weekend saleHuobi Global Crypto Exchange to the fund of the Hong Kong-based About Capital investment company. The deal will take place through the purchase of a majority stake in the stock exchange by its founder, Leon Li, according to information from CoinDesk.

However, this Monday morning, China-based journalist Colin Wu claimed that the person behind About Capital is Justin Sun, the controversial entrepreneur who created the Tron network.

According to Wu, Sun would invest about US$1 billion in the fund to complete the purchase. According to the report, he will also speak with FTX executives, billionaire Sam Bankman-fried, who has previously denied any involvement in the deal.

When contacted, Sun told Wu that he “would not be involved” in the deal. Not long after, Justin Sun’s social media confirmed that he would be transitioning to the position of “global advisor” to Huobi.

Sun already owns another brokerage house, Poloniex. Initially, when he bought the Circle company, he also denied involvement in the purchase.

Recently, the company approved the purchase of Tether’s USDT stablecoin through Pixo in Brazil.

Bitcoin today

With Columbus Day in the US on Monday, the bond market remains closed, but stock markets will be open. This week the focus is on inflation and Federal Reserve minutes.

Bitcoin fell along with U.S. stock indexes on Friday after U.S. labor market data. The US economy created fewer jobs in September, 263,000, but the figure exceeded economists’ projections of about 250,000 jobs. As a result, the S&P 500 ended down 3.8%.

“Bitcoin’s failure to break above $20,500 led to a correction,” Joe DiPasquale, CEO of crypto asset manager BitBull Capital, said in an interview with CoinDesk. “Now the bulls will have to defend $19,500 to maintain the upside.”

All eyes are on the American consumer price index, the so-called CPI, whose report is published on Thursday (13). Chris Weston, head of research at Pepperstone Group, points out in a note published by Bloomberg that expectations show the core index, which excludes food and energy, at 6.5% in September compared with 6.3% in August. If the forecasts are confirmed, it would be all the more reason for the US central bank to continue tightening monetary policy.

“This is data that will bring great volatility if a bad number comes. If so, the market may accelerate declines, and if it falls, there should be gains in risky assets,” he says. Lucas Passarinitrading analyst at MB, in the Valor article. However, according to him, the data is no longer so frightening. “There is a lot of inflationary pressure that is easing.”

The minutes of the Fed’s September meeting, which will be released on Wednesday (12th), a public holiday in Brazil, should give an indication of the monetary authorities’ tolerance level for the risk of a possible recession.

The week also brings the earnings of American giants such as JPMorgan, Citigroup and Delta Airlines.

geopolitical tension

In addition to the challenging macro scenario, investors are also monitoring the escalation of the conflict between Russia and Ukraine. At least eight people were killed in central Kiev, and another 24 were injured, according to a Ukrainian official. Air raid sirens sounded across the country, and explosions were reported in at least seven cities, the New York Times reports. Ukrainians are already preparing for a Russian response since the attack on Saturday (8) that damaged a bridge connecting Russian territory with Crimea.

In another point of tension, North Korea is in the final stages of preparations to test nuclear weapons, with activities that suggest digging an underground tunnel and testing explosive devices, a Security Council panel said. The United Nations (UN) in an expert report published by Valor.

Mining

Despite the global turmoil, Bitcoin’s so-called “hashrate” returned to an all-time high last week, according to a Glassnode report. This increase increases the cost of producing BTC at a time when mining revenues have only just recovered from the recent capitulation.

Bitcoin miners have had a rough year, but Barclays research sees signs of industry recovery, according to a CoinDesk analysis.

Other featured cryptocurrencies

South Korean blockchain investment firm Blockwater Technologies failed to repay a $3.4 million loan of Binance USD (BUSD) stablecoins to TrueFi, a decentralized credit protocol, according to a statement released on Sunday. TrueFi had already issued a “Notice of Default” to Blockwater on October 6 for non-payment.

Binance may spend more than $1 billion on acquisitions and investments later this year, CEO of the world’s largest digital asset exchange, Changpeng “CZ” Zhao, told Bloomberg. Since January, the brokerage house has allocated 325 million US dollars for 67 projects. The amount does not include a potential investment of about $200 million in Forbes and $500 million pledged to finance Elon Musk’s purchase of Twitter. CZ also stated that Binance is looking at minority stakes in traditional e-commerce and gaming companies.

Asset manager Arch, which creates tokenized versions of index funds formed from cryptoassets, received a US$5 million contribution led by Digital Currency Group and Upload Ventures, the former “early-stage venture capital” arm of SoftBank’s Latin America fund. Christopher Storaker, CEO of Arch, told Valor that the platform’s focus is on individual investors who want exposure to the digital segment.

The giants of the financial industry are increasingly interested in asset tokenization. In an interview with Valor, Steve Donovan, director of treasury and trade solutions at Citigroup in Latin America, said that the institution wants to be a bank for fintech and financial inclusion through the digitization of money and tokenized assets created with technology. blockchain and central bank virtual currencies.

Hashdex crypto index fund HASH11, has received the third-highest inflows so far this year among ETFs in the segment, totaling US$95 million, according to Morgan Stanley data published by Exame. The Brazilian ETF is second only to BITO, offered by ProShares, at $194 million, and ETHH.U, from Purpose, at $216 million.

The IBM and Maersk project increased efficiency transports Brazilian coffee to its main customers in Europe, the United States and Asia through blockchain technology, which now allows tracking of containers en route.

Regulation, CBDC and Cyber ​​Security

With the bill on crypto assets in Brazil standing in the House of Representatives, experts heard by Valor believe that the opinion on the market prepared by the CVM, although not de facto regulation, tends to bring more certainty and attract new participants.

Committee for payment transactions and market infrastructures wants to study whether stablecoins can deliver on their promise of cheaper and faster transactions, according to a new Financial Stability Board report published by CoinDesk.

In India, the country’s central bank (RBI) has launched a pilot project to launch a digital rupee with the main features of its virtual currency, according to a 50-page report published on Friday (7).

Online bookmaker Betano, which sponsors Fluminense and Atlético Mineiro, stopped payments or stopped paying clients. Hundreds of reports on the company’s Instagram and part of more than 5,000 comments on the consumer protection website Reclame Aqui indicate this, according to research. Bitcoin Portal. Betano, which also advertises in Jornal Nacional, has doubled its traffic in Brazil in the past four months – from 11 million to 22 million clicks, according to SimilarWeb. With growth escalated problems for users.

An unknown cryptocurrency called MiniFootball Token currently entered the list of “trending topics” on Twitter in Brazil this week, according to InfoMoney. But the nonsense and “almost anonymity” of those responsible for the project, who were accused of fraud last year, are causing a new alarm.

The administrator of Mt. Gox, the exchange that suffered one of the biggest Bitcoin hacks ever history, has published an online form for creditors to notify their preferred payment method for repayment of about 137 thousand BTC, which have been blocked for about eight years. Former Mt.Gox users have until January 10th to file a claim.

Metaverse, Games and NFTs

After buying Tropix, the first non-fungible token art marketplace (NFT) in the country, Nano Art Market has decided to create a web3 community focused on physical and digital visual art with its own native currency, Valor reported.

Since leaving the head of Twitter in December 2021 Jack Dorsey is working on a Bitcoin-based decentralized Internet project called Web5, which would be even more advanced than Web3. Fares Alkudmani, head of business development at Kucoin in Brazil, details the differences between the two projects in an article about Bitcoin Portal.

Corinthians presented their new third kit on Saturday (8). against Athletico-PR with a ‘clean jersey’, without the sponsor’s seal, according to the Lance portal. The idea was to keep the original design of the uniform with an inscription in Japanese dialect that forms the phrase ‘Aqui é Corinthians’. Among the sponsors who agreed not to stamp their brands are Vitaminas Neo Química, Bmg and MB

Banco do Brasil presented BraBlox on Friday (7)., the institution’s first experience in the metaverse. It is a platform inserted into the world of Roblox, developed for children and teenagers with the aim of promoting financial education.

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