Značka: USDC

Cathie Wood’s ARK ETF reportedly buys 6.93M shares of SPAC merging with Circle

Cathie Wood’s Ark Invest has reportedly purchased 6.93 million shares of the special purchase acquisition company, or SPAC, that is merging with Circle, for $70.6 million through the company’s ARK Fintech Innovation exchange-traded fund (ETF). This purchase would represent a new position for the ETF, according to MarketWatch. Ark Invest’s ETFs have a history of bold purchases within the tech industry as indicated by their move to buy $80 million in Robinhood shares after the prices dipped back in October 2021. Wood is also bullish on crypto despite passing on buying the first Bitcoin futures ETF that same month. Circle is the principal operator of USD Coin (USDC), which is currently the second-largest stablecoin in terms of market capitalization. Circle announced its intentions to go public in July 2021 through a SPAC with Concord Acquisition Corp in a merger that would see the company valued at $4.5 billion. The merger was originally planned to finalize by the end of the fourth quarter of 2021, with the company being listed on the NYSE with the ticker “CRCL.” The move to go public came about as a response to the increasing concern posed by regulators regarding stablecoins. Regardless, the move was applauded overall by the crypto industry. Vladimir Vishnevskiy, co-founder of Swiss wealth management firm St. Gotthard Fund Management AG, noted as such and said; “[USDC] has been around since 2014, and is another example of an established player being rewarded for their input into the ecosystem.Stablecoins are still under regulatory scrutiny in the United States as lawmakers question the market’s transparency and reserve backing. U.S. lawmakers are currently looking to introduce new legislation on crypto within the coming weeks. 

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Avalanche eyes 60% rally as AVAX price breaks out of bull flag

Avalanche (AVAX) strengthened its case for a potential upside run towards $160 in the coming sessions as it broke out of a classic bullish pattern earlier this week.Dubbed “bull flag,” the pattern emerges when the price consolidates lower/sideways between two parallel trendlines (flag) after undergoing a strong upside move (flagpole). Later, in theory, the price breaks out of the channel range to continue the uptrend and tends to rise by as much as the flagpole’s height.AVAX went through a similar price trajectory across the last 30 days, containing a roughly 100% flagpole rally to nearly $150, followed by over a 50% flag correction to $72, and a breakout move above the flag’s upper trendline (around $85) on Dec. 15.AVAX/USD daily price chart featuring Bull Flag pattern. Source: TradingViewAVAX price continued rallying after breaking out of its bull flag range, reaching almost $120 on Friday but eyeing a further leg up towards its bullish continuation target near $160. The level appeared after adding the height of AVAX’s flagpole, which is around $75, to the current breakout point near $85.A week full of bullish AVAX eventsThe recent buying period in the Avalanche market picked momentum also because of a flurry of positive catalysts this week.AVAX jumped nearly 10.50% on Tuesday as Avalanche added the native version of USDC, a dollar-pegged stablecoin issued by Circle, on its blockchain. Additionally, a report penned by Bank of America analysts published on Dec. 10, called Avalanche a viable alternative to the leading smart contract platform Ethereum. That coincided with AVAX gaining another 16%.AVAX/USD daily price chart featuring key events in the week ending Dec. 19. Source: TradingViewOn Thursday, AVAX rallied to its two-week high after BitGo, a crypto custodian with over $64 billion worth of assets under management, announced that it would support the token. Nonetheless, a modest selloff at the local price top pushed AVAX lower. Th recover Friday as Avalanche announced that it has collaborated with web3 accelerator DeFi Alliance to launch a gaming accelerator program.1/ Avalanche is collaborating with @DeFiAlliance to bring its accelerator programs to the Avalanche communityApply by Jan 7 here: https://t.co/6HcJOLxKxABefore you apply, check these reasons why Avalanche should be your preferred platform: pic.twitter.com/GhdHBhQNgb— Avalanche (@avalancheavax) December 17, 2021All the events mentioned above pointed towards the Avalanche ecosystem’s growth. For instance, with USDC, the project promised to provide a viable alternative to Ethereum’s highly expensive Tether (USDT) stablecoin transactions. Moreover, by gaining BitGo as AVAX’s institutional custodian, Avalanche appears to be prepping for catering to accredited investors. Mike Belshe, CEO of BitGo, explained:“Institutional custody is not the same as retail custody, and BitGo wallets and custody were designed from the ground up to meet the needs of institutional investors, and BitGo is the only independent qualified custodian focused on building the right market structure and facilities to enable institutions to enter the digital asset space with confidence.”AVAX price risksOne of the remaining downside risks around AVAX concerns the crypto market performance, on the whole.In detail, AVAC rallied in a week that witnessed the entire cryptocurrency market capitalization lose more than $114 billion, with leading crypto assets Bitcoin (BTC) and Ether (ETH) plunging over 7% and 5% week-to-date. Concerns over the Federal Reserve’s tapering plans catalyzed the market selloff.Therefore, it appears that traders looked at AVAX as their short-term hedge against the crypto market drop, largely driven by a string of positive news. AVAX/BTC weekly price chart. Source: TradingViewMoreover, the AVAX/BTC pair was up nearly 40% week-to-date at around 0.00245 BTC at the time of writing, with the pair’s relative strength index (RSI) entering overbought territory. That could prompt AVAX to weaken against BTC in the coming sessions.Related: ‘Monster bull move’ means whales could secure the next Bitcoin price surgeA similar outcome may be possible in AVAX/USD’s case as its weekly RSI treads near overbought levels.AVAX/USD weekly price chart. Source: TradingViewHowever, the pair is likely to retain its bullish bias as long as it holds above its 20-week exponential moving average (20-week EMA) as support. As shown in the chart above, the green wave has been capping AVAX’s downside attempts since August 2020.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Circle and Endaoment to create USDC-based disaster relief fund for communities impacted by deadly tornado

Circle, the company that created the USDC stablecoin, announced a partnership with public charity Endaoment to create a disaster relief fund. The fund will help mid-western American communities impacted by last week’s deadly tornadoes. The two entities hope to raise $1 million in grants to support the American Red Cross and local non-profits.Via Endaoment, blockchain enthusiasts will be able to directly contribute USDC or other cryptos using connected wallets with a minimum donation of $20. The funds will be distributed in $20,000 intervals to seven participating charities, the Team Western Kentucky Tornado Relief Fund, Center for Disaster Philanthropy, Team Rubicon, All Hands and Hearts, Midwest Food Bank NFP, American Red Cross, and Mutual Aid Relief. At the time of publication, the fund has received over $4,600 in donations.Robert Heeger, founder, and CEO of Endaoment, said the following regarding the partnership:”It is through incredible partners like Circle that we have been able to grant more than $11 million worth of donations to nearly 300 nonprofits this year. With Circle’s support, we can expand our reach and continue to empower the community to allocate charitable gifts to causes in need of funding autonomously.”An unusual cluster of tornadoes swept across the U.S. Midwestern and Southern states the week prior, with wind speeds reaching as high s 150 mph (241.4 km/h). Kentucky was one of the hardest-hit states, with at least 74 fatalities and more than 100 missing persons still accounted for.A man whose home was destroyed during the deadly tornado outbreak in Kentucky, plays a hymn on his piano that was spared during the storm. Beauty in the midst of sorrow and pain. pic.twitter.com/9goymGYK3L— Travis Akers (@travisakers) December 13, 2021

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Frax co-founder Sam Kazemian believes stablecoin regulations are currently too harsh

Stablecoins, or crypto assets which peg their value to less volatile fiat money, are useful tools for a variety of reasons. They can be used to cash out crypto investments, send or receive stable money abroad, and to pay for everyday consumer transactions without fear of fluctuation. A recent estimate from the Bank for International Settlements, or BIS, put the total stablecoin supply at roughly $150 billion.But central banks, the issuers of traditional fiat money around the globe, do not seem to be big fans of stablecoins. A sharp increase in supply coupled with a lack of relevant regulations has led to concerns that these stable blockchain assets could threaten the current financial order. Fiat money stablecoins, such as those created by Circle (USDC) and Tether (USDT), may require banking licenses in the future to operate. Thus far however, regulators have not been keen to take aim on algorithmic stablecoins, which are governed by automated expansion and contraction of the monetary supply.In an exclusive interview with Cointelegraph, Sam Kazemian, the co-founder of the Frax stablecoin protocol, discussed the regulatory outlook for the sector and algorithmic stablecoins in detail.Growth in cryptocurrency activities | Source: BIS Cointelegraph: There are many algorithmic stablecoins out there, such as Terra USD, Ampleforth, etc. In your opinion, what makes Frax unique?Sam Kazemian: What makes Frax unique is that we have a system where our protocol expands and contracts supply in various places across blockchain protocols, and targets the exchange rates of the Frax stablecoin out in the open market. We like to compare it to a central bank. When it issues a currency, it never says ‘hey, you can come to redeem it for this amount of gold, or you can come and redeem it at the central bank for something dollar-pegged.’ They don’t say that anymore. And so, what a central bank does, is that it targets their currency in the open market’s exchange rate.If a central bank pegs their currency to gold, what they’ll do is look at the price of gold against their national currency. If it’s lower than what they want, they’ll buy some of the currency back. If the other side is higher than what they want, then they’ll print more of the currency. Frax takes this kind of approach. That’s how we developed our algorithmic stablecoin thesis, and it’s worked well. We’ve never broken our peg, even during [the major market crash in] May.Stablecoin market capitalization statistics | Source: U.S. Treasury Stablecoin ReportCT: Do you see a potential crackdown looming in stablecoin the sector? And what is Frax doing to comply with relevant stablecoin regulations?SK: There are two parts to this. I don’t know if I would call it a crackdown, but I do see a lot of regulation coming for at least the fiat coins, which have traditional financial assets that back them; like cash equivalents, or actual cash in depository accounts. I don’t know that this affects truly decentralized stablecoins though. I believe that Frax is not only compliant, but it will keep complying with all requirements just by existing and being fully decentralized.The second part to your question is interesting because I think the current stablecoin regulation they’re proposing is a little bit reactionary. What’s currently going on is that people are saying that stablecoin issuers like a Circle and Tether need to have banking licenses. That’s the conversation. But that doesn’t make sense if you think about it, because there’s a lot of experimentation allowed in even the traditional financial space. Things like money market funds don’t have a banking charter. It’s not a bank. It’s not FDIC [Federal Deposit Insurance Corporation] insured. People either don’t realize this or they’re not informed.Money market funds are regulated in the sense that you need to have [and disclose] cash equivalents. But they are not regulated with the same harshness that they’re currently proposing [for] stablecoins. This doesn’t apply to fully decentralized ones like Frax that have absolutely no claims on real-world assets, or even advertise any form of redeemability. The whole point of Frax is that our protocol works by targeting the open market exchange. I think I’m pretty open to the belief that the regulation portion will work itself out.

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