August 11, 2023 · 3 min read
The Weekly Wrap - 11th August 2023
Huobi's Uncertain Path
The cryptocurrency ecosystem faced a new wave of scepticism as suspicions about Huobi, a major crypto exchange, deepen. The industry is grappling with worries about the exchange's financial soundness in the face of reports of insolvency and instability in stablecoin reserves.
Huobi's insolvency rumours have been circulating since August 4, 2023. A lot of factors fueled the rumours, including:
The exchange's Total Value Locked (TVL) fell dramatically, from $3.09 billion to $2.5 billion.
Huobi saw a $64 million outflow over the weekend of August 5-6.
According to reports, Huobi's executives were arrested in China as part of an inquiry into the exchange's links with gambling platforms. You can read the full article here.
PayPal Launches Stable Coin
PayPal announced the launch of its stablecoin, PayPal USD (PYUSD), on 07 August, 2023. PYUSD is a U.S. dollar-backed stablecoin, meaning that it is always worth 1 U.S. dollar. It is issued by Paxos Trust Company and is available on the Ethereum blockchain. PYUSD is gradually being made available to PayPal customers in the United States.
PayPal's launch of PYUSD is a major step in the company's expansion into the cryptocurrency space. It is the first major financial technology firm to launch its own U.S. dollar-backed stablecoin. PYUSD is designed to make it easier for PayPal customers to buy, sell, and use cryptocurrencies. It can also be used to make payments to merchants who accept PayPal.
y00ts Move to Ethereum
DeLabs' NFT profile picture project called y00ts made a move from Solana to the Ethe Polygon network earlier this year. Now, it's getting ready for another jump, this time to the Ethereum mainnet where it will coexist with DeLabs' more prominent DeGods collection. This announcement came just before the unveiling of DeGods' "Season 3" content.
Cathie Wood and Mike Novogratz optimistic of Bitcoin ETF Approval
Both Cathie Wood, CEO of Ark Invest, and Mike Novogratz, CEO of Galaxy Digital, express optimism about the approval of a spot Bitcoin exchange-traded fund (ETF) in the near future. Wood believes that the Securities and Exchange Commission (SEC) could potentially approve multiple Bitcoin ETFs simultaneously. Novogratz, citing sources at BlackRock and Invesco, confidently states that it's not a matter of "if" but "when" one of the eight pending applications for a spot Bitcoin ETF will receive SEC approval.
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