Cryptocurrency investors are trying to stay afloat on a rather gloomy agenda connected with the FTX collapse. Despite the weak optimism, positive developments in the macroeconomics allowed the BTC price to rise above $ 16,500. However, the Genesis investigation news that came a few minutes ago may be the reason for tomorrow’s decline. Coinbase, on the other hand, has taken action so that this does not happen again. Here are 2 important developments of this evening.
Will Genesis Sink?
It’s hard to talk about his future right now, but it’s hard these days. Several regulators, including the Alabama Securities Commission, are investigating whether Genesis violated securities laws, according to Barron’s. In the report, Alabama Securities Commission Director Joseph Borg stated that his agency and several other states are involved in investigations focused on whether Genesis and other companies persuaded residents of their states to invest in crypto securities without having the appropriate records.
Earlier this week, Genesis, and before him collapsed crypto exchange crypto hedge fund three arrows capital FTX failed due to the exposure to bankruptcy, and an investment bank undertook to cooperate with the solution I started to research, including options.
Coinbase Rewards Program
Coinbase made a better pitch about proof of reserve about an hour ago. Many crypto money exchanges have already taken the first step by sharing their wallet addresses. However, after the FTX collapse, cryptocurrency investors need more to be convinced. Binance today announced a new feature so that anyone can verify their wallet balance. Although it is currently supported for BTC, support for other altcoins will be added soon. Coinbase wrote in its announcement;
“As a publicly traded company, Coinbase is already proving our reserves using our audited financial statements. We are also exploring various new ways to prove reserves using more crypto-native methods and are announcing a $500K developer grant program to encourage others to do so as well. On-chain accounting is the very future, but as we have discussed in this article, there are pros and cons of various ways in which this can be applied today.
Millions of people have recently invested their money and trust in FTX and benefited from it. This should never have happened. The resulting fallout has caused some crypto firms to struggle with liquidity, which has ignited a necessary debate regarding proof of reserves and the obligations of a crypto exchange. Proof of reserves is a way to verify that a platform has enough assets to match the deposits of its users. That way, a user knows that if he wants to withdraw his assets, he will actually get them back.”
As a publicly traded company with audited financial statements, Coinbase already inspires a certain degree of confidence. But all exchanges need more. At the very least, this is needed so that the next FTX collapse does not cause people to suffer. Now Coinbase invites developers to offer solutions to themselves with an attractive reward. Vitalik and CZ had previously announced that they had started working on this issue together.
The FTX collapse could have quite good consequences if the nervousness of stock market managers continues like this.
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