Last Updated : February 07, 2023 / 09:59 AM IST
Top cryptocurrency news on February 7: BabyDoge Coin's impressive spike, crypto exchanges unite to aid Turkey & more
A daily round-up of the most interesting articles on cryptocurrencies like Bitcoin, Ethereum and Tether to help jump-start the day
Cryptocurrency market slides as Bitcoin, Ether, and major coins experience dip
The cryptocurrency market saw a downturn at the start of the week, with Bitcoin trading at $22,905, a decrease of 0.5 percent from the previous day according to TradingView. Ethereum, the second largest cryptocurrency, experienced a 0.1 percent drop to $1,635.
Binance's BNB token declined by 0.2 percent, Ripple's XRP lost 0.8 percent, and Solana's SOL saw a 2 percent decrease. The stock of Coinbase, a major cryptocurrency exchange, dropped 4.6 percent to trade around $71, according to Nasdaq.
Meanwhile, shares of Silvergate declined about 8 percent to just under $18. Block saw a drop of around 3 percent to trade below $82, while MicroStrategy experienced a 3 percent decrease to $275.
Grayscale's Bitcoin Trust (GBTC) saw its discount widen at the end of last week, after having previously shortened to 40 percent on February 2. According to The Block, the fund closed the week at a discount of approximately 42 percent to the value of the Bitcoin held within it. Read full here
BabyDoge Coin soars 5% in value and outperforms other dog-themed cryptos with 102% weekly gains
BabyDoge Coin experienced a significant increase in price on February 5, with its value surging by nearly 60 percent. This positive trend began on January 29, and since then, Baby Doge Coin has consistently risen, buoyed by positive news and listings.
Although this growth has since stabilised, Baby Doge Coin has still outperformed other dog-themed cryptocurrencies such as Shiba Inu, Dogecoin, and BoneShibaSwap in terms of weekly gains, rising by 102 percent over the last seven days.
Recently, OKX Exchange announced that it had integrated BabyDogeSwap into the OKX Wallet and Discovery Page. This integration allows for the use of BabyDoge Coin's decentralised exchange (DEX), enabling BEP-20 token swaps on the BNB Chain via BabyDogeSwap. Read details here
Riot Bitcoin miner experiences delay in meeting q1 hashrate target due to winter storm damage
Riot, a Bitcoin mining company, has announced that its Q1 hashrate guidance of 12.5 EH/s may not be achieved because of the winter storm that struck the United States in December.
The storm resulted in damage to the company's mining operations and caused some miners to go offline. Despite this, Riot still managed to mine 740 Bitcoins in January, a 12 percent increase from the previous month when power was reduced due to the storm.
Out of the 2.5 EH/s affected by the storm damage, 0.6 EH/s has already been restored and 1.9 EH/s is still offline. The company is evaluating its repair options and will provide updates on the deployment timeline as soon as they become available. Take a look
Cryptocurrency Exchange OKX slashes workforce in Dublin
Cryptocurrency exchange OKX is undergoing layoffs for a portion of its workforce employed through its Dublin unit, Bloomberg reported, quoting a spokesperson. The spokesperson declined to reveal the exact number of layoffs but stated that it is less than 1 percent of OKX's global workforce. The impacted employees have been working through OKBL (Dublin) Services and Technology.
The spokesperson explained that the layoffs are part of a global reallocation of resources and that OKX plans to increase its global headcount in 2023. The recent round of layoffs comes as several crypto companies, such as Coinbase, Crypto.com, and Gemini Trust, have also reduced their workforce due to the current crypto market downturn amid the "crypto winter." Read more here
Crypto Exchanges join forces to provide aid to Turkey after devastating earthquakes
With the recent earthquakes in Turkey having a devastating impact on the region, claiming thousands of lives and leaving many more people in need of aid and support, the global cryptocurrency community has stepped up to offer its support, with many local and international crypto exchanges pledging to provide assistance.
Crypto exchanges such as Binance, Bitfinex, and Gate.io are among the platforms that have pledged to help. These exchanges are actively exploring ways to send aid through digital assets, with some, like BitGet, having already made significant financial commitments.
This is not the first time that the crypto community has rallied to support those in need. During the Russian invasion of Ukraine and the COVID-19 outbreak in India, millions of dollars in crypto donations were made to support relief efforts. Read more here
SFC expands virtual assets team to boost Hong Kong's crypto hub ambitions
The Hong Kong Securities and Futures Commission (SFC) is looking to boost its virtual assets team as the city aims to become a hub for the crypto industry. In its recent budget report to the Legislative Council, the regulator requested four additional positions to be added to its workforce due to an increase in interest from operators who want to run trading platforms and manage virtual asset funds.
Fund managers who aim to manage more than 10 percent of their gross asset value in virtual assets must apply to the SFC for approval. Existing service providers must apply for a license under the upcoming virtual assets service provider (VASP) regime by March 1st and will have a transitional period of one year. Read more here
Binance to pause USD bank deposits and withdrawals from February 8
Cryptocurrency exchange Binance on February 6 announced a temporary suspension of US Dollar deposits and withdrawals using bank accounts. The suspension is set to begin on February 8, and the exact reason for this change was not disclosed.
According to a Binance spokesperson, only a small percentage of their monthly active users use USD bank transfers, but the company is working hard to restart the service as soon as possible.
Notably, bank transfers using other fiat currencies such as euros are not affected by this suspension. Other methods of buying and selling cryptocurrency on the platform, such as through credit cards, Google Pay, and Apple Pay, remain unaffected. Read more here
Sygnia helps FTX address weaknesses in cybersecurity after major hack
Cryptocurrency exchange FTX, which was hit by a major hack in November, has sought the help of cybersecurity company Sygnia to secure its environment. John J. Ray III, the new CEO of FTX, revealed the situation in a Delaware bankruptcy court, Coindesk reported.
The hack took place around the time FTX filed for bankruptcy protection and its former CEO, Sam Bankman-Fried, resigned. "This case is about cybersecurity or the failure of cybersecurity," said Ray. He added that Sygnia, a "highly technical cybersecurity firm," played a critical role in stopping the hacking and rebuilding a secure environment for FTX.
Ray also expressed his concerns about the previous governance of FTX, led by Bankman-Fried, calling it weak. Read more here
UK crypto companies brace for new restrictions on financial promotions: FCA issues warning
UK crypto firms warned to be ready for restrictions on financial promotions by FCA with potential prison terms of up to 2 years for breaches. The new rules will mirror those for other high-risk investments, requiring promotions to be clear and fair and offering customers a 24-hour cooling-off period. The regime will apply to all firms marketing crypto assets to UK consumers, regardless of location or technology used.
The FCA urged firms to act now to ensure they can continue promoting legally to UK consumers. The Treasury recently announced that crypto companies registered for anti-money laundering purposes will be allowed to approve new ad campaigns. Read more here
Revolut's expansion into crypto continues with staking launch
Revolut, the global neo-banking company with 25 million customers, has introduced crypto staking in the UK and the European Economic Area through a soft launch, AltFi reported. The full launch will start this week, allowing users to earn income on their crypto assets while the product is in soft testing.
Revolut has been expanding its crypto offerings over the years, starting with trading in November 2017 and now offering almost 100 different crypto assets and the ability to make purchases using crypto balances. The company also offers free blockchain and crypto courses, with over 1 million users completing the program in its first month.
The initial staking options are limited to DOT, XTZ, ADA, and ETH with yields ranging from 11.65 percent to 2.99 percent. These yields are not guaranteed. Read more here
Resolution reached: Sam Bankman-Fried bail dispute settled with prosecutors
Sam Bankman-Fried and US prosecutors have come to an agreement regarding the conditions of his bail, according to a statement made by his legal representative on February 6, Reuters reported. This follows the judge overseeing Bankman-Fried's criminal fraud case in Manhattan temporarily restricting him from contacting employees of FTX or Alameda Research hedge fund, due to concerns of witness tampering.
Bankman-Fried's lawyers have argued that his intention in contacting current executives was to offer assistance, not interfere. Bankman-Fried has entered a plea of not guilty and is currently under house arrest at his parents' home in California. Read more here