Daily Crypto News | August 11th, 2022
Welcome to Barmy’s Daily Crypto News – August 11th, 2022
1. Ripple To Look Into Buying Bankrupt Celsius’ Assets
The blockchain payments firm behind XRP, Ripple Labs, may be interested in buying assets from the bankrupt cryptocurrency lender Celsius.
Ripple is “interested in learning about Celsius and its assets, and whether any could be relevant to [their] business,” a company spokeswoman told Reuters. The representative remained mum when asked if Ripple intended to fully purchase Celsius. Following the information, CEL, the native utility token of the Celsius platform, increased by 23% on Wednesday.
Due to “extreme market conditions,” Celsius froze the funds of its customers in June. A few other cryptocurrency companies, like Voyager and CoinFLEX, did the same. It quickly regained its collateral, paid off its outstanding bills on several DeFi loans, and then filed for bankruptcy a month later.
The documents revealed that Ripple was not among Celsius’ principal debtors. However, last week the firm filed documents requesting counsel in the lender’s bankruptcy proceedings.
2. Binance Has Yet To Turn Down Ethereum PoW Fork
The world’s largest cryptocurrency exchange by volume, Binance, declared today that it would not rule out supporting ETHPoW, the contentious forthcoming split of Ethereum.
The exchange declared it would support “the merge,” a protocol modification that would complete Ethereum’s long-awaited transition to a proof-of-stake consensus mechanism and is anticipated to occur on or around September 19. All of that was anticipated.
But the business also said it might back “merge resistors” who want to keep using proof of work and build a separate network and coin. Binance said in a statement on Wednesday that it would assess the support for distribution and withdrawal of any new forked tokens.
3. Canadian Pension Fund Affected by Celsius’ Downfall
Nine months before Celsius filed for Chapter 11 bankruptcy, the Caisse de Dépôt, Canada’s second-largest pension and insurance fund, invested $150 million in the company. The fund could now end up with nothing.
The Caisse de Dépôt was one of two lead investors in Celsius’ $400 million Series B investment round back in October 2021, a round that saw the cryptocurrency lender surpass a $3 billion value. The Caisse de Dépôt has net assets of $419.8 billion at the end of 2021.
“This is something that we take very seriously and we will provide further comment at the appropriate moment. Celsius is currently engaged in a complex process that will take time to resolve,” a spokesperson from the Caisse shared in July.
4. Coinbase CEO To Be In Favor Of More Regulations
During Tuesday’s Q2 earnings call for Coinbase Global (Nasdaq: COIN), CEO Brian Armstrong talked about his organization’s success and cryptocurrency regulation.
The revenue of Coinbase decreased by over 64% in the second quarter. In comparison to $1.59 billion in net income during the same quarter previous year, the corporation recorded a $1.1 billion net loss for the period. In its most recent letter to shareholders, Coinbase said that the second quarter “was a test of durability for crypto companies and a complex quarter overall.”
Armstrong gave the following details about cryptocurrency regulation: “We’ve been pleased to see the progress recently both in the U.S. and in countries around the world toward more clear legislation for crypto. In the U.S., there are several bills making their way through Congress with strong bipartisan support.”
He further opined: “It’s sort of strange to say, but … in some ways, the more regulation there is for crypto, the better it is for Coinbase.”
5. Biden Claimed US Economy Had 0% Inflation In July
After the most recent consumer price index (CPI) report was made public on Wednesday, President Joe Biden asserted that there was no inflation in the American economy in July. The president said: “Today, we received news that our economy had zero percent inflation in the month of July. Zero percent.”
The White House press secretary, Karine Jean-Pierre, shared a similar statement on Twitter: “We just received news that our economy had 0% inflation in July. While the price of some things went up, the price of others, like gas, clothing, and more, dropped.”
Following Biden’s claim of inflation of 0%, social media sites were flooded with comments. While some kindly reminded him that inflation is not 0%, others outright derided the American president. Rep. Mike Bost (R-IL) tweeted: “Biden is claiming that we saw zero percent inflation last month. But there’s a zero percent chance that’s the case. Inflation in July was 8.5%, which is STILL a 40-year high.”
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