Read in the Digest
- Markets Rally After the Fed Meeting, Bears May Have a Short-Term Control
- Reddit Files Confidentially with the SEC To Go Public
- Shiba to List in European Exchange, First NFT Has Been Created on Dogecoin, Millenials and Gen Z to Gift Crypto, NFT
- Binance to Launch Exchange in Indonesia, Kevin Durant Becomes New Face of Coinbase
- Tether Hit with Another Lawsuit. What’s Going on With the Stablecoin?
Markets Rally After the Fed Meeting, Bears May Have Short-Term Control
Fingers were crossed as investors awaited the December 15 Federal Reserve meeting reports. The prediction of most analysts held true, as crypto markets have begun to rally after the meeting.
The Fed laid out its policy roadmap for 2022. The Fed has announced it will double the tapering of its monthly bond purchases – reducing by $30 billion every month from the previous $15 billion – to wind them down early next year.
This will allow the Fed a shorter time to end bond purchases and move to raise interest rates for the first time since 2018. Following the announcement, Bitcoin has now reclaimed $49k, with Ethereum also trading above $4,000, gaining 4% in the last 24 hours.
- While the markets recover, some analysts believe that assets may face more correction in the short term before a major rally
- Many point to the fact that there is a $755 million BTC options expiry on Friday, December 17
Reddit Files Confidentially With the SEC to Go Public
Reddit, the online discussion forum popular for creating the category now known as “meme stocks,” has announced that it had confidentially filed paperwork with the Securities and Exchange Commission for the public offering of its stock.
In August, the company announced the possibility of an IPO. However, it was faced with criticism that Reddit will need to start generating more income for shareholders; this may lead to users seeing more advertising and modifications to the experience.
Finally confirming users’ fears, the internet company has now taken a significant step toward the public markets. In the press release, Reddit did not disclose the total number of shares to be offered, nor did it state an initial valuation
- Reddit has been criticized for its laissez-faire approach to content moderation, which has made the platform home to some of the most noxious ideas and people on the internet.
Why You Should Care
In 2021, Reddit has played a significant role in the growth and popularity of cryptos. Users now wait to see how an IPO will affect the online discussion forum.
Shiba to List in European Exchange, First NFT Has Been Created on Dogecoin, Millenials and Gen Z to Gift Crypto, NFT
In the second half of 2021, there was a major shift in the narrative of meme coins, as the likes of Shiba Inu found increasing adoption. Shiba is back in the spotlight, and this time, it’ll be listed on Europe’s biggest crypto exchange.
According to Bitstamp, Europe’s premier exchange, its plans to list Shiba Inu SHIB in 2022 have not changed. However, SHIB, which was to begin trading on Bitstamp on December 9, has been postponed to 2022 due to technical difficulty on the exchange.
The pioneer meme coin, Dogecoin, hasn’t been slouching either. Just after Elon Musk explained why Dogecoin is better than Bitcoin, a DOGE developer announced that the Dogecoin network has facilitated the creation of its first non-fungible token (NFT).
Dogecoin is now slowly growing past the tag of a meme coin without real-world usability. As the interest in digital art increases, a report has confirmed that millennials and Gen Z plan to spend thousands of dollars on crypto, NFTs, and metaverse land as holiday gifts.
- Experts have warned that investors should stay away from the likes of Dogecoin and Shiba Inu.
Why You Should Care
The increasing utility of Dogecoin and Shiba Inu could be the springboard for their growth, as these meme coins have some of the largest communities.
Binance to Launch Exchange in Indonesia, Kevin Durant Becomes New Face of Coinbase
Days after abandoning its plans to launch a crypto exchange in Singapore, Binance has announced that it will be launching a new digital asset exchange in Indonesia. The move is made possible by collaborating with MDI Ventures, an investment arm of Telkom Indonesia.
Binance will be leveraging the market reach of MDI Ventures, a consortium said to have over 170 million consumers in Indonesia. In addition, Binance has revealed that it will be providing asset management infrastructure and technology to support the development of the new exchange.
America’s largest crypto exchange, Coinbase, has signed a deal with famous basketball player Kevin Durant to promote the exchange. The collaboration with the NBA star is part of the exchange’s push to go mainstream and lure new users.
The deal will see Durant become the new face of advertising for Coinbase. In addition, Durant’s sports site for digital ads and sponsored content about crypto, Boardroom, will be linked to Coinbase. The exchange will also fund Durant’s foundation to support his youth programs.
- The lack of a uniform regulatory framework has limited the entrance of Coinbase and Bitcoin into certain markets.
Why You Should Care
Like many companies, Binance and Coinbase are making significant moves to push digital assets into mainstream adoption.
Tether Hit with Another Lawsuit. What’s Going on With the Stablecoin?
Tether, the issuer of the world’s biggest Stablecoin, USDT, has yet again found itself locked in a legal tangle with accusations of falsely representing its stablecoin backing. This is the second class action to be filed against Tether in 2021.
The lawsuit, filed in a district court in the southern district of New York, alleges that Tether had made false or misleading claims about its reserves. The latest complaint, filed by Mathew Anderson and Shawn Dolika in the South New York district court, accused the firm of maintaining less than 4 percent in cash reserves.
In addition, the plaintiffs in the complaint alleged that Tether’s public account disclosures were vague and ambiguous. Anderson and Dolika believe that Tether hasn’t undergone any professional audit, despite its promise of transparency to consumers.
Tether has responded to the lawsuit, calling it a shameless money grab. In addition, the Stablecoin issuer will submit its own litigation and seek compensation for the efforts.
- This comes days after the shadow government of military-ruled Myanmar mandated USDT as the official currency for domestic purposes.
Why You Should Care
Tether remains the preferred alternative to the greenback for Crypto investors. Its success or failure also has a ripple effect in the cryptoverse.