Crypto market trades red on Tuesday

Cryptocurrency market traded in the red on Tuesday with Bitcoin, Ethereum along with other altcoins declining substantially. The price of Bitcoin dropped 0.8% on the previous day to $16,950. Its market capitalization was $326.52 billion. The price of Ethereum has decreased by 1.3% to $1,250 over the previous day. The market capitalization for ETH was $153.71 billion. On December 6, 2022, Solana's token price increased by 0.7% to $14.04. Ripple’s 24-hour trading volume increased by 17.32% to $850.11 million, yet it fell 1.2% to $0.3831. The market capitalization of all crypto assets stands at $850.94 billion. Data gathered from Coinmarketcap.com showed that it had decreased by 2.11% and the total volume of cryptocurrencies traded in the last day had decreased by 3.81% to $36.45 billion. Axie Infinity was the highest gainer for the day. Trading at $8.69, it increased by 6.84 percent. As of Tuesday night, GMX, which was trading at $50.88 and had dropped 7.73% in the previous day, was the biggest loss. Read more here.

Ex- CFTC commissioner Brian Quintenz appointed head of policy by a16z

Crypto and Web3 venture firm a16z has appointed former CFTC commissioner Brian Quintenz as the company’s new head of policy a year after hiring him as senior advisor for its crypto team. Quintenz was nominated by both Presidents Obama and Trump and unanimously confirmed by the Senate as Commissioner of the CFTC. Quintenz has been promoted to the position at a time when new crypto industry legislations are being developed by U.S. lawmakers. Following a string of high-profile failures that cost investors billions of dollars in damages, the CFTC is one of the agencies vying for more authority to regulate the industry. Details here.

The United Kingdom set to announce crypto regulations

New regulations governing the marketing and selling of crypto assets are anticipated to be announced by the UK government, which would allow regulators to have an increased authority to oversee the industry, including a crackdown on promotions for digital currencies by companies operating outside of the UK. The Financial Conduct Authority will also keep an eye on how cryptocurrency companies function. The new rules will be added to a proposed legislation that is already pending before the Parliament. The Financial Services and Markets Bill, which defines stablecoins and crypto assets, is intended to restructure the UK financial system after Brexit. More here.

SushiSwap wants to send all of the money from xSUSHI to the Treasury Wallet

Decentralized exchange SushiSwap is debating a fresh idea that would funnel all fees paid to xSushi holders into its treasury pocket for an entire year in order to fund its operations. The proposal comes as SushiSwap, now under new management, works to improve its deteriorating financial situation. Jared Grey, the project's new head chef, claims that the project's runway has been cut to just 1.5 years, and he is working to extend it.  "After evaluating spending, it's obvious that a sizable Treasury deficit threatens Sushi's capacity to operate, necessitating an expedient repair," Grey stated. Continue reading.

Crypto regulatory bill is voted down in Paraguay, hurting the crypto mining industry

A bill to regulate cryptocurrencies was defeated by the lower house of Paraguay, dealing a severe blow to the nation's developing mining sector. Thanks to the Itaipu dam, one of the biggest in the globe, the South American country has some of the lowest energy prices in the entire world. Local and foreign businesses have established bitcoin (BTC) miners in the nation because of the relatively low cost of power. The nation's senate initially approved the law, which would govern cryptocurrency and mining, in July. The planned legislation was sent back to the legislature for revisions and a new vote after the president vetoed it in August, though. Full story here.

FTC investigates "Possible Misconduct" in cryptocurrency advertising

The US Federal Trade Commission (FTC) is looking into many anonymous cryptocurrency companies for using false or misleading language in their advertising. According to a statement from FTC spokeswoman Juliana Gruenwald Henderson, "We are looking into a number of corporations for potential wrongdoing involving digital assets." On the FTC website, it is stated that "federal law specifies that an advertisement, whether it is seen or heard by consumers on the Internet, radio, television, or anyplace else, must be accurate, not misleading, and, when applicable, supported by scientific data." The agency also upholds laws requiring honesty in advertising, such as those requiring people to disclose when they have received compensation for endorsements or reviews. More here.

Following community criticism, ConsenSys updates its privacy policies for MetaMask and Infura

ConsenSys responded to criticism of the company's privacy policy last month by updating and clarifying how it stores user data in a number of ways. Following accusations that the company's flagship products, MetaMask and Infura, gathered user wallet and IP addresses, the cryptocurrency sector was in an uproar in November. However, ConsenSys was eager to point out in today's message that these discoveries "only meant to provide additional openness," not a divergence or change from its current principles. It is noteworthy that ConsenSys announced today that it intends to destroy user data after one week and emphasized that information obtained through its cryptocurrency wallet MetaMask and infrastructure provider Infura is never sold to outside parties. Details here.

Amid a stock downgrade, Silvergate CEO Addresses "Misinformation" and short sellers

During Monday's trade, shares of Silvergate Capital Corp (NYSE: SI) plunged 8.49% to $24.24, following a rating cut by Morgan Stanley. The Wall Street bank decided to change Silvergate's share rating from equal weight to underweight primarily due to the company's weak Q3 results and the effects of FTX. The crypto bank's digital deposits are said to be surrounded by major uncertainty, according to Barron's, and Morgan Stanley analysts predicted a 60% decrease in deposit volume this quarter compared to the prior one. The net income and net interest margins of Silvergate would be considerably impacted by decreased user deposits. Continue reading.

DEX token GMX spurts 26% in a month as FTX collapse triggers interest in decentralized exchanges

The collapse of cryptocurrency exchange FTX and other high-profile crypto firms amid a prolonged crypto winter has piqued users' interest in decentralized exchanges, created by the gap in the perpetual market. One of the top performers in over the last month has been, the native token of the decentralized perpetual exchange GMX, which increased by about 26% despite an unfavorable market environment. Gains Network, a decentralized leveraged trading platform on Polygon, and Uniswap are some of the other platforms that have benefited from users' exodus to decentralized platforms.