It’s been a wild ride for crypto this week! Here’s what happened:
- U.S. to ban TikTok? Crypto Influencers earnings to go zoooo, zooo
- Silvergate’s silver plated problems: Is bankruptcy the next stop?
- Robinhood launches self-custody Web3 wallet — but there’s a catch…
- 1 GBPS to mint a Bitcoin Ordinal?
US Considers Banning TikTok, Impacting Influencers’ Earnings
The U.S. Congress has decided against a “small screen”, taking big steps in banning TikTok. This could have far-reaching implications for crypto influencers and their revenue, as ByteDance, the firm behind TikTok, has eaten into the market share of giant U.S. firms.
On one side, U.S. firm Meta’s user base is shrinking towards TikTok and on the other, Pico owned by ByteDance is not taking the gold medal lying down in the virtual reality headset market. Round upon round of a full-on fight for control! It’s a great “show” that’s about to get even more interesting.
If TikTok is banned, it could turn the tide against ByteDance, and U.S. firms such as YouTube, Instagram, and Meta would be free to compete in the Metaverse market.
Looks like a TikTok U.S. ban could also mean serious trouble for influencers’ bottom lines. With 113 million users in the U.S. But without an American audience, we’re afraid their pockets may not be quite so full. Let’s hope this ban doesn’t put persuasive influencers out of a job.
Silvergate Bank’s Lights Out: Who Will Go Bankrupt Next?
It’s been less than four months since the FTX exchange collapse, yet crypto companies find themselves once again assessing exposure to a troubled partner and taking preventative measures to avoid contagion. This time, the counterparty is Silvergate Capital Corp., the bank behind a payment network used by crypto firms.
Silvergate already took a hit last year thanks to the bankruptcy of its main client, FTX. Now on Wednesday, they announced they sold off debt holdings at a loss – and are questioning their viability. Oh, plus they’re being investigated by the US Justice Department. Yikes.
No wonder crypto exchanges, stablecoin issuers and trading desks reacted so quickly; Coinbase Global, Galaxy Digital, and Paxos all announced they’d no longer accept or initiate payments through Silvergate. Gemini Trust, Crypto.com, and Cboe Clear Digital weren’t far behind.
Robinhood Walks A Fine Line With Launch of Web3 Wallet — But SEC Is Watching
Rejoice, iOS users! Trading platform Robinhood is launching its Web3 wallet on Apple’s App Store in over 130 countries. No need to wait on a list anymore — you now have access to the new multichain self-custody wallet that is just a few taps away. Android? Don’t worry, it’ll get there later this year.
But before you jump in, there is something else you should know. Two days before our big reveal, Robinhood Markets received an SEC subpoena to investigate its cryptocurrency listings, custody, and platform operations.
‘Bitcoin Jesus’ Roger Ver Roasts BTC Maximalists
Roger Ver, the CEO of Bitcoin.com and famously known as ‘Bitcoin Jesus’, joked on Wednesday that he had to upgrade his internet connection to 9747 Mbps just to mint an Ordinal on the Bitcoin blockchain!
Ver argued that Bitcoin Cash fans have been using “bigger blocks for years”, showing “what a bunch of hypocrites the BTC maximalists are” for stating that bigger blocks to accommodate Ordinal NFTs are ok. BCH boasts 32 megabytes to Bitcoin’s 1 megabyte in block size, yet with Ordinals, the mean size of transactions on a BTC block has increased more than 100% to 2.5 megabytes.
To further add something to the mix, on Feb.24, Ver tweeted that if BTC ever raises the block size, it will prove that the BCH camp was right all along. With a witty and funny tone, Ver cheekily commented that “if BTC never raises the block size, it will never be permissionless cash for the world.”
Knight Watch ft. Van de Poppe
The crypto markets were wild this week, with Bitcoin dropping 5% from $24,000 to its current price of $22,400. All the blame goes to the SilverGate Capital! Meanwhile, Ethereum was also down 5%, for much of the same reason.
Analyst Michael Van de Poppe had the crypto world in a frenzy after he warned that Silvergate was crashing and markets were tanking. Within a 12-hour period, we saw Mt. Gox crumbling. The analyst says a big setback to come after Ethereum unlocks staking, Tether will collapse and a major crisis looms as whispers of a Big Crisis on the horizon can be heard.
Honorable Mentions
Polygon just announced the launch of their new Polygon ID product, which harnesses the power of Zero-Knowledge (ZK) technology. With this product, users can verify their identity without giving away sensitive information. It can be used by developers to unlock features like an enhanced signup user interface, help verify user identities and token-gating for controlling access to certain areas or features.
A new study commissioned by crypto exchange Coinbase has found that an impressive 20% of Americans own cryptocurrency. With 50 million Americans actively trading and investing, it is clear that crypto is a rare bipartisan issue, and is embraced by both Republican and Democratic populations alike.
Litecoin is quickly becoming one of the most popular cryptocurrencies for USE in online shopping – proof that digital assets are making serious footprints in the e-commerce space. CoinGate’s March 1 research report makes it on the nose clear – in 2022, Litecoin came in fourth place with 88,295 LTC-involved orders, only second to Bitcoin. And as if that wasn’t enough, show-off ETH and USDT came in at second and third, respectively.
