Crypto Flipsider News – Celsius Is Biggest Gainer; HUSD Depegged; Genesis Cuts Workforce; Illegal Korean Exchanges, Australia Spot ETF

Read in the Digest:

  • Celsius emerges as biggest gainer as crypto markets dip after Fed minutes
  • Huobi’s stablecoin (HUSD) loses its U.S. Dollar peg, crashes to $0.9
  • Crypto broker Genesis Global replaces CEO, cuts workforce by 20%
  • The South Korean government accuses 16 exchanges of illegal operations
  • Monochrome receives approval to launch spot Bitcoin ETF in Australia

Celsius Emerges as Biggest Gainer as Crypto Markets Dip After Fed Minutes

The soaring of inflation to a 4-decade high forced the United States Federal Reserve to take stringent measures, including interest rate hikes. This only worsened the crypto market crash in the first half of 2022.

Bullish crypto enthusiasts had expected positive reports from the FOMC minutes. However, the U.S. central banking authority said in the minutes of its July meeting that inflation is still “unacceptably high.”

Shortly after the report was released, the crypto markets turned bearish. Bitcoin, falling from its failed attempt to reclaim $25k, now trades at $23,500. Ethereum (ETH) is down by 2%, falling from over $1,900 to $1,850.

BTC graph coinmarketcap bitcoin crypto

The 24-hour price chart for Bitcoin (BTC). Source: CoinMarketCap

ETH graph coinmarketcap ethereum crypto

The 24-hour price chart for Ethereum  (ETH). Source: CoinMarketCap

Despite the broader crypto market being bearish, Celsius (CEL) has rallied to a 20% daily gain to hit a high of $2.95. The rally follows approval from the bankruptcy court to allow the crypto lender to sell its mined bitcoins.

CEL graph coinmarketcap crypto

The 24-hour price chart for Celsius (CEL). Source: CoinMarketCap

Flipsider:

  • Canadian pension giant Caisse has written off the claims of a $150 million investment in Celsius Network.

Huobi’s Stablecoin (HUSD) Loses its U.S. Dollar Peg, Crashes to $0.9

HUSD, the Huobi-branded stablecoin launched in 2019 by Stable Universal, has become the latest stablecoin to lose its dollar peg. HUSD is now trading as low as $0.91, a 9% drop from its original $1 peg.

HUSD graph coinmarketcap crypto

The 24-hour price chart for HUSD. Source: CoinMarketCap

The stablecoin now trades at $0.917. The ongoing de-pegging of the USD results from liquidity issues. The average daily trade volume of HUSD is under $10 million, compared to USDT, which sees more than $40 billion daily.

About two weeks ago, crypto exchange FTX removed HUSD from its basket of supported USD stablecoins. The delisting from FTX further reduced the options available for HUSD holders, with Huobi and Uniswap V2 accounting for more than 85% of its trade volume.

Huobi Global, reacting to the de-pegging of its stablecoin, has announced that it will work together with HUSD’s issuer (Stable Universal) to find a solution and restore its peg as soon as possible.

Flipsider:

  • Despite being affiliated with the stablecoin, Huobi Global exited its stake in the issuers of HUSD, Stable Universal, in April 2022.

Why You Should Care

The depeg of HUSD adds more pressure to the stablecoin market, which has seen several stablecoin crashes since the Terra collapse.

Crypto Broker Genesis Global Replaces CEO, Cuts Workforce by 20%

Michael Moro, the CEO of crypto brokerage company Genesis Global Trading, announced his resignation, and the company plans to lay off 20% of its 260 employees, starting August 17.

To reduce operating costs and recover from exposure to the now-bankrupt crypto hedge fund Three Arrow Capital, Genesis Global Trading will slash its workforce by 20%, equating to the loss of about 52 jobs.

As the company shuffles its leadership, the chief operating officer, Derar Islim, will take over as interim CEO  until a permanent replacement arrives. Meanwhile, the now-former CEO will advise the firm during the transition.

The restructuring comes a month after the parent company of Genesis, Digital Currency Group (DCG), assumed some liabilities of the embattled Singapore-based 3AC and filed a $1.2 billion liquidation claim.

Flipsider:

  • Despite cutting jobs, Genesis announced the hire of new chief risk officers, chief technology officers, chief finance officers, chief compliance officers, and chief legal officers to strengthen its overall risk management.

Why You Should Care

Genesis has joined the long list of well-known crypto firms that have to reduce their workforce due to the market downturn.

The South Korean Government Accuses 16 Exchanges of Illegal Operations

South Korea has accused 16 cryptocurrency exchanges of violating the Specific Financial Information Act by the FSC. The government now plans to block access to the local websites of 16 unregistered foreign cryptocurrency exchanges.

According to the Financial Services Commission (FSC) report, KuCoin, Bitrue, Phemex, MEXC, ZB.com, Bitglobal, CoinEX, ZoomEX, Poloniex, AAX, BTCEX, XT.com, CoinW, DigiFinex, BTCC, and Pionex have operated illegally in the country.

Under the Special Act, these exchanges must obtain information security management system (ISMS) certification and report it to the Financial Intelligence Unit (FIU). The exchanges are also required to report their businesses at intervals to the government.

The punishment for unregistered businesses operating illegally within the country is a fine of up to 50 million won ($52,000) or prison terms of as much as 5 years. The exchanges could also be banned from operating in the country for the next 5 years.

Flipsider:

Why You Should Care

South Korean officials increased scrutiny in the crypto sector after a rout in prices this year caused a number of blow-ups, especially the Terra crash.

Monochrome Receives Approval to Launch Spot Bitcoin ETF in Australia

Vasco Trustees Lid, a subsidiary of Monochrome, has become the first asset management firm to secure an Australian financial services (AFS) license from the Australian Securities & Investments Commission (ASIC) to launch spot crypto ETFs.

The asset manager has announced that its Monochrome Bitcoin ETF will give retail investors direct insured exposure and experience to the performance of Bitcoin, Ethereum, and other cryptocurrencies.

The license will ensure that Monchorome offers crypto exposure to its clients more transparently. In addition, the AFS license ensures that asset managers do not use hot wallets in storing cryptos for greater security. 

According to Monochrome, plans for the Bitcoin ETF have been in the works since February 2022. However, the date when the spot ETF will become available for investors to trade has not been disclosed.

Flipsider:

  • The quest for a spot Bitcoin ETF in the United States has not been successful, with the SEC rejecting multiple proposals from asset managers.

Why You Should Care

Monochrome calls the AFSL license a step in the right direction to offering investors regulated crypto investment opportunities.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).