Autor Cointelegraph By Prashant Jha

3AC founders reveal ties to Terra founder, blame overconfidence for collapse

3AC founders reveal ties to Terra founder, blame overconfidence for collapse

Uverejnil používateľ | júl 22, 2022 |

The founders of tainted crypto hedge fund Three Arrow Capital (3AC), which filed for bankruptcy in the first week of July, have finally resurfaced after five weeks of no known whereabouts.In an interview with Bloomberg, Su Zhu and Kyle Davies, the two founders of the crypto hedge fund, admitted that the overconfidence born out of a multiyear bull market, where lenders saw their values swell by virtue of financing firms like theirs, led to the series of bad decisions that should have been avoided.Zhu also revealed their closeness to Terra founder Do Kwon and claimed they believed the firm was going to do big things. He admitted that the firm’s closeness to Terra made them overlook certain red flags about the firm, which eventually led to their $500 million worth of investment going to zero. Zhu explained:“If we could have seen that, you know, that this was now like, potentially like attackable in some ways, and that it had grown too, you know, too big, too fast.”Related: AC liquidators seek time, access to headquarters as Genesis, Algorand ties are untangledThe two founders claimed that the LUNA (Now known as Luna Classic LUNAC) investment surely was a setback for the firm. Still, the real issue began when Bitcoin (BTC) fell below $20,000, and it became impossible for the firm to access additional credit. Zhu claimed that even after LUNA’s collapse, the business was as usual and explained:“Throughout that period, we continued to do business as usual. But then yeah, after that day, when, you know, Bitcoin went from $30,000 to $20,000, you know, that, that was extremely painful for us. And that was in, that ended up being kind of the nail in the coffin.”When enquired about their whereabouts and why they have been in the hiding, the founders blamed a series of death threats as the reason for going underground. The duo didn’t reveal their current whereabouts but said they were moving to Dubai.The founders denied any allegations of pulling out money before 3AC went bankrupt and also cleared the air around the $50 million yacht that was disclosed in the recently filed court case. Zhu said that the boat “was bought over a year ago and commissioned to be built and to be used in Europe,” while adding the yacht “has a full money trail.”

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South Korea postpones 20% tax on crypto gains to 2025

South Korea postpones 20% tax on crypto gains to 2025

Uverejnil používateľ | júl 21, 2022 |

The South Korean government has reportedly postponed the 20% tax crypto gains by two years. The controversial 20% tax on crypto gains was supposed to come into effect from January 1, 2023, but now has been deferred to 2025.The government officials announced their new tax reform plans on July 21, deferring the crypto tax policy to 2025, citing stagnant market conditions and the time required for the preparation of investor protection measures. The initial plans of imposing an additional 20% tax on crypto gains exceeding 2.5 million won ($1,900) in a one-year period remain unchanged.[embedded content]The controversial 20% crypto tax has now been delayed for the second time since it was first announced in January 2021. The tax was first supposed to be introduced by January 2022, but lawmakers in the country deferred it to 2023, and now it has been delayed by two more years.Related: South Korean crypto market grows to $45.9B in 2021 despite strict regulationsKim Young-jin, Chairman of the Tax Subcommittee, one of the lawmakers that have opposed the crypto tax policy has called for the formulation of solid crypto regulation first. With a newly elected pro-crypto President in the country, Korea is hoping to regulate the crypto market first and then implement tax rules.Crypto taxation has been on the top of the government’s agenda as the crypto market grew to new highs over the past few years. Just like South Korea’s 20% tax proposal, Thailand proposed a similar 15% crypto gains tax, however, it received heavy backlash from the retail trades, and the government had to scrap the tax policy eventually.India imposed a 30% tax on crypto starting from April 1st, however, the heavy taxation has wreaked havoc on crypto exchanges in the country as trading volumes plunged over 90% within weeks of the introduction of new tax laws.A leaked report in May this year suggested that the newly elected president is working to introduce the Digital Asset Basic Act (DABA) by early next year. The regulations would be focused on NFTs and ICOs, expanding infrastructure and supporting CBDC research.

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Morgan Stanley encourages investors to buy battered El Salvador Eurobonds

Morgan Stanley encourages investors to buy battered El Salvador Eurobonds

Uverejnil používateľ | júl 20, 2022 |

The Bitcoin (BTC) bet has somewhat backfired for the small nation as the top cryptocurrency trade at a 70% discount from its top. At a time when the Latin American nation is struggling with its debt, Morgan Stanley has given a buy call for the battered Eurobonds.Simon Waever, the global head of emerging-market sovereign credit strategy at Morgan Stanley, told investors in a Tuesday note that El Salvador’s bonds are overly punished by the market conditions despite the country having better financial metrics than many of its peers, reported Bloomberg. The note to investors read:“Markets are clearly pricing in a high probability of the autarky scenario in which El Salvador defaults, but there is no restructuring.”Waever noted that a country’s debt shouldn’t trade lower than 43.7 cents on the dollar even in cases of default, but also admitted that the level is impossible to achieve in the current market condition due to tightening global liquidity.Related: El Salvador postpones Bitcoin bonds to September: ReportThe Tuesday note assessed that El Salvador shouldn’t have any problem in repaying debts for the next 12 months because of the primary surplus, and it has smaller maturities coming due than other distressed nations like Argentina, Egypt and Ukraine.El Salvador made BTC a legal tender in September last year, and things seemed to work perfectly well for the small nation for as long as the bull market peaked. The country purchased nearly $56 million worth of BTC since September and even used the profit in the last year to build schools and hospitals. However, the country lost a significant chunk of its investment once the bear market set in.There were discussions around the issuance of a Bitcoin volcanic bond after a $1 billion aid request to the international monetary fund (IMF) fell through. However, the bond, which was hyped along with a Bitcoin city, has seen numerous delays with no concrete date for a launch.

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US senator blasts SEC for non-judicial actions against crypto companies

US senator blasts SEC for non-judicial actions against crypto companies

Uverejnil používateľ | júl 20, 2022 |

Tom Emmer, the Republican Senator from Minnesota, has become the latest politician to blast the United States Securities and Exchange Commission (SEC) for its unethical actions against crypto companies.Emmer posted a video on Tuesday showing his conversation at the House Committee on Financial Services, where he accused the SEC of politicizing regulations. He went on to grill SEC Enforcement Director Gurbir Grewal over SEC’s unethical “industry sweeps” against crypto companies.The SEC Director of Enforcement admits the SEC is cracking down on companies outside its jurisdiction. Absolutely unacceptable. pic.twitter.com/wRQU54Ov6v— Tom Emmer (@RepTomEmmer) July 19, 2022The Senator further enquired if these sweeps against crypto companies fall under the jurisdiction of the SEC and what actions the commission takes against companies that don’t volunteer for such voluntary questioning. Grewal admitted to using enforcement actions against companies that are not under their jurisdiction. Emmer said SEC was using its Enforcement branch to unconstitutionally expand its crypto jurisdiction.Emmer also accused SEC Chair Garry Gensler of baiting and threatening companies, he said:“Under Chair Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to ‘come in and talk’ to the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.”Emmer said SEC’s behavior was absolutely unacceptable and believes the regulatory body is not regulating in good faith especially when it comes to the digital asset market.Related: Lummis-Gillibrand crypto bill likely deferred to next yearBrad Sherman, the congressperson who previously called for banning cryptocurrencies in the U.S also blamed SEC for its enforcement approach against major crypto exchanges. Sherman accused the SEC enforcement division of going after Ripple (XRP) as a security, but not the crypto exchanges that processed “tens of thousands” transactions of the token.Many in the crypto industry were hopeful that Gary Gensler’s appointment as SEC chief would prove beneficial for the crypto regulations, given his crypto/blockchain background. However, on the contrary, Gensler’s approach has been quite opaque and unethical.

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Liquidity protocol uses stablecoins to ensure zero impermanent loss

Liquidity protocol uses stablecoins to ensure zero impermanent loss

Uverejnil používateľ | júl 19, 2022 |

At a time when the decentralized finance (DeFi) protocols have seen a significant outflow of funds from the market, maintaining liquidity has become even more challenging. Liquidity plays a central role in the DeFi ecosystem, and many protocols over time have come up with various new solutions to keep liquidity pools brimming. The latest trend in the liquidity market is focused on cross-chain solutions.Many experts believe cross-chain solutions are the future of DeFi, and Symbiosis Finance, a liquidity protocol, has come up with its own stablecoin-based cross-chain liquidity solution. The liquidity protocol uses stablecoins to ensure liquidity providers (LPs) don’t incur any impermanent loss.Nick Avramov, the co-founder of Symbiosis told Cointelegraph that they have secured initial liquidity from the likes of Binance Labs, Blockchain.com, Amber and a few more and hoping to gain some more LPs once they hit a transaction volume of about $100 million. Related: Liquidity has driven DeFi’s growth to date, so what’s the future outlook?Talking about the importance of using stablecoins instead of different crypto assets, Avramov explained that stablecoin use not only helps in eliminating impermanent loss but also ensures seamless transactions across different blockchain platforms. This makes for one-click swaps. Avramov explained:“We enable native assets swaps, not just pegged illiquid yet-another USDTxyz.”Symbiosis Finance supports cross-chain swaps between any blockchain that enables the generation of EdDSA and ECDSA keys. This effectively means anyone can exchange, for example, an ERC-20 token for Solana, Polygon, or other crypto assets developed on the Binance Smart Chain. Talking about the future of Web3, Avramov said:“The quest of interoperability is vital for further adoption, so cross-chain and multi-chain solutions are the very building blocks of the Web3 economy.”The liquidity provider has also paid special attention to the interface to ensure that the user at the front end gets a seamless experience. The protocol eliminates the need for switching between complex virtual networks while performing swaps. All these processes happen at the back end using smart contracts.When asked about the security aspect of the network, given cross-chain platforms have been at the receiving end of miscreants lately, with some of the biggest heists taking place on cross-chain protocols. Avramov said that security is one of their top priorities, and they have already passed multiple audits from established firms.Symbiosis Finance secured strategic investment from Binance Labs earlier in February this year and launched beta mainnet a month later in March. The protocol has secured multiple partnerships and has seen integration by various platforms.

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