Daily Crypto News | June 9th, 2022
1. World Bank: This will be the Worst Recession in 80 Years.
World Bank has warned of the greatest slowdown of the whole world economy in 80 years. The WB President said ‘The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid’. He clarified that we are not in a global recession yet. However, he opinied the downside risk is that it could be a global recession.
That’s from the 2021 rate which was high because of the recovery from Covid to what we are looking at now, 2.9%, in 2022. That’s a very sharp slowdown and it really hits the poorer countries hard. Global growth is expected to slump from 5.7% in 2021 to 2.9% in 2022 — significantly lower than 4.1% that was anticipated in January.
The Bank also warned about stagflation, stating that the danger of stagflation is considerable. In addition, inflation and slow growth may persist for years, the World Bank noted.
2. Axie Infinity faced the 1st week of less than $1M in Revenue.
The popular Play-to-earn game Axie Infinity brought in only $988,400 in revenue last week — the 1st week it has clocked less than $1 million since February of 2021. The head of the GameFi snake Axie experienced a meteoric rise in popularity in the summer and early fall of 2021. At peak, the game accrued over $215 million during middle of August, 2021. In October of that year, Axie’s creator Sky Mavis had even reached a $3 billion valuation after a $152 million funding round led by a16z.
However, into 2022, according to the Block’s data dashboard, Axie Infinity has experienced a steady decline since November of 2021. Sky Mavis couldn’t continue its rapid growth due to an imbalance issuance and burn mechanism for Axie’s in-game tokens. Sky Mavis attempted to install more burning mechanisms into the game, but it does not appear to have had the desired affects.
3. New York: Guidance for Dollar-backed Stablecoins.
The New York State Department of Financial Services (DFS) has released regulatory guidance for U.S. dollar-backed stablecoins issued by DFS-regulated entities.Thus, it will be the 1st regulator in the United States to impose such expectations on a stablecoin issuer.
The requirements in the guidance concern redeemability, reserves and attestation. They state that a stablecoin must be fully backed by reserves as of the end of every business day and the issuer must have a redemption policy approved in advance in writing by the DFS that gives the holder the right to redeem the stablecoin for U.S. dollars.
Furthermore, the issuer’s reserves must be segregated from its proprietary assets and consist of U.S. Treasury instruments or deposits at state or federally chartered institutions. The reserve must be subjected to monthly examination by a certified public accountant.
4. USDC now Supported by Polygon Network.
The issuer of USDC stablecoin, Circle, has announced that the project is now supported on the Polygon network. The stablecoin with the second-largest market capitalization can now be withdrawn via a Circle Account and Circle APIs without the need for manual cross-chain bridge technology. Polygon is a large crypto ecosystem with more than 19,000 Dapps and 2.7 million monthly active wallets as of May 2022.
The new Polygon USDC is a bridged version of USDC that is minted when a native Ethereum version of USDC is bridged. Circle will support the widely used Polygon USDC and the asset has been added to Circle Account and Circle APIs. Polygon-supported USDC can be used for trading, borrowing, lending, making and accepting payments, and making programmatic payouts.
5. Hong Kong again raise Risks Associated With NFTs.
Hong Kong’s securities regulator has repeatedly warned investors to be wary of risks that are associated with non-fungible tokens (NFTs). The regulator also advised investors to consider investing in NFTs only if they fully understand the risks. They said NFTs face risks that are associated with other virtual assets and investors should not invest in these assets if they do not fully understand such risks.
According to a report by Interface News, the Hong Kong Securities Regulatory Commission (HKSRC) said some of these risks include a lack of liquidity in the secondary market, volatile prices, a lack of transparency in the pricing of NFTs, and the risk of hacking.
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