Reading time 4m10s
GM to one and all. This is Tokengraph, coming in hot with your daily dose of crypto current events and blockchain drama.
On today’s agenda…
- The SEC Gets Dunked on by a Judge
- Kraken to Found Crypto Bank
- Vitalik Sells off $700K in Meme Coins
- Will There Be Therapy in the Metaverse?
- Esports Team TSM Bullish on Crypto
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In a time where it feels like the crypto industry can’t catch a break from the SEC breathing down its neck with regulatory pressure and questions about securities, it’s nice to see what looks like a win for crypto and a big loss for the SEC.
VGX token isn't a security, @investvoyager has said, after claims made by @SECGov in court last week threatened to scupper a $1 billion offer from crypto exchange @binance.
@jackschickler reports.
— CoinDesk (@CoinDesk)
Mar 6, 2023
Binance has been trying to buy Voyager’s assets for a little over $1B, but the SEC has tried to block the move based on the accusation that Binance *might* be an unregistered securities exchange, and that VGX, Voyager’s native token, *might* be an unregistered security itself.
The judge’s response?
He basically told the SEC to “get real” and actually bring a decent argument next time. Get wrecked.
The bankruptcy judge in the voyager hearing is the hero we need but don’t deserve.
Just trashing the SEC on a daily basis. twitter.com/vgx_heroes/sta…
— The Wolf Of All Streets (@scottmelker)
Mar 6, 2023
So now, Voyager has won the right to sell its assets to Binance. Voyager has been seeking a buyer since it went bankrupt last year after 3AC defaulted on some massive loans it had taken from the company.
Wow! A whopping $1.3 billion deal!
#Voyager Digital is selling its assets to #Binance and #SEC objection has been overruled - how exciting 🤩
beincrypto.com/bankrupt-voyag…
Do you agree with that move?
#BeinCrypto#CryptoNews
— BeInCrypto (@beincrypto)
Mar 8, 2023
It’s only Tuesday, but shaping up to be a not-so-great week for the SEC (this ruling, Voyager, Grayscale) twitter.com/s_alderoty/sta…
— Brad Garlinghouse (@bgarlinghouse)
Mar 8, 2023
But this isn’t the only loss the SEC is taking home this week — and it isn’t even Tuesday. Their case against Ripple to prove that the crypto is an unregistered security is having holes poked in it left and right, and a panel of judges is seriously questioning the SEC’s arguments against Grayscale in their Bitcoin ETF hearing.
It feels like the crypto industry has been bullied by the SEC for a while, but now, we’re seeing the governmental powers in authority over the SEC step in and hold it accountable (at least to a certain extent). And that’s certainly better than nothing.
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Crypto exchanges might be down, but they’re certainly not out.
Kraken, who was recently fined $30M by the SEC for offering unregistered staking services (and then shut those services down), is making waves and taking new ground within the crypto industry with plans to launch a crypto bank.
JUST IN: 🇺🇸 #Bitcoin and crypto exchange Kraken to launch its own bank "very soon" - Chief Legal Officer 👀
— Bitcoin Magazine (@BitcoinMagazine)
Mar 6, 2023
What does this mean, and why is it important?
It seems that in the wake of massive crypto bank Silvergate’s unfortunate spiral out of control, Kraken is stepping up to the plate to found a regulation-compliant bank in its place — one that plays by all the rules. And that is important because it means crypto exchanges aren’t dying out, they’re simply evolving into their next natural forms.
EXCLUSIVE: Kraken is on track to launch bank 'very soon' despite regulatory 'weird place' theblock.co/post/217177/kr…
— The Block (@TheBlock__)
Mar 6, 2023
The Block hosted a podcast interview with Kraken’s Chief Legal Officer Marco Santori, and here’s what he had to say regarding the matter:
"Kraken Bank is very much on track to launch, very soon. We're going to have those pens with the little ball chains. We're going to order thousands of them and attach them to the desks of Wall Street banks everywhere. With our logo."
We got to ask crypto commentator Thayne (@Crypto_ADHD_) what his thoughts were on the industry’s regulatory climate moving forward, and this was his answer:
“Regulatory developments should get better from [the] status quo. The regulatory environment for crypto and Web3 will continue to evolve in 2023, with increasing clarity and consistency from global regulators, and the emergence of new frameworks for security token offerings and decentralized finance.”
This feels like it’s already coming true. We’re hoping for the best for Kraken and its new venture. This could be the start of a new defining era for crypto — one where organizations evolve into new entities that can thrive and innovate even in the face of extreme regulatory scrutiny.
Mt. Gox users are about to get their BTC back — all 142,000 coins. However, people are worried that the currency might be immediately dumped on the market. What percentage of the Bitcoin supply does the Mt. Gox BTC represent?
A. 0.74%
B. 7.4%
C. 14.8%
D. 0.074%
Scroll down to the bottom to see if you're right!
Other Top Stories Today 📢
Being the face of the Ethereum Network comes with its drawbacks — and apparently one of them is that crypto projects will send you hundreds of thousands worth of their meme tokens and “shitcoins.” Vitalik Buterin never asked for any of this, but his ETH address is public, and fortunately/unfortunately, his holdings in several meme coins (SHIKOKU, Cult DAO, Mops) represent a huge percentage of each project’s total supply. This means that when he sold his holdings, the prices on those tokens dropped significantly — as much as 86%.
Some mental health services are already offering care through virtual environments. Innerworld, a peer-to-peer digital mental health support program, is one such case — they’re making use of the metaverse’s natural ability to connect users through their avatars and usernames to help people open up about their problems, which “in turn leads to faster healing,” according to the platform’s CEO and founder.
Massive Esports team TSM still seems very bullish on crypto — even after their huge sponsorship deal with FTX fell through last year. The team is moving forward with hosting tournaments on Blitz Esports’ Avalanche Subnet. They shared in a statement that they’re also using Core, a crypto payments firm to enable players and fans to “store, sell, and purchase digital assets.” It’s not yet clear whether these assets will include NFTs or not.
❓ Trivia Answer
Answer: A.
The current BTC supply is at 19.31M, and the 142K BTC from the Mt. Gox debacle only represents 0.74% of the total supply.
Web3 Resource of the Day
Kraken's Chief Legal Officer: Banks are shying away from taking on crypto customers | Podcast from The Scoop
The Block’s podcast (The Scoop) has just released an interview with Kraken’s Chief Legal Officer where he shares the firm’s goals and plans for its crypto bank. He explains the logic behind Kraken’s decision to make this leap of faith in such a murky regulatory environment and why they believe this is actually a huge opportunity for established crypto exchanges like themselves, Coinbase, and Binance.
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DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice to buy or sell any assets or to make any financial decisions. Do your own research.