Read in the Digest:
- XRP rallies 30% to lead Bitcoin (BTC) and Ethereum (ETH) price recovery.
- Cardano (ADA) rallies 7% after the successful launch of the Vasil hard fork.
- Ethereum coin mixer Tornado Cash returns to GitHub after OFAC guidance.
- Bitcoin (BTC) mining firm Compute North files for Chapter 11 bankruptcy.
- Coinbase receives regulatory approval to operate in the Netherlands.
XRP Rallies 30% to Lead Bitcoin (BTC) and Ethereum (ETH) Price Recovery
XRP is currently leading the crypto market recovery, outperforming the likes of Bitcoin (BTC) and Ethereum (ETH). In the last 24 hours, the price of XRP has shot up 30% to trade at above $0.552 for the first time since May 10th.
The 24 hour price chart for XRP. Source: CoinMarketCap
The price of XRP is experiencing a strong uptrend due to increased optimism among investors over the Ripple Vs SEC lawsuit. There has also been a high volume of whale movements for XRP, with many anticipating Ripple to win its case against the SEC.
Joining the rally is Bitcoin, the world’s largest cryptocurrency, which has recovered past its 3-month low to trade at as high as $19,464. However, traders are waiting for clear movement above the $19,550 and $19,600 marks.
Ethereum (ETH) managed to end the loss streak which had seen the top Altcoin’s price plunge from $1,750 to as low as $1,251. Over the last 24 hours, ETH has gained in value by more than 5%, driving its price to an inter-day high of $1,351.
- Crypto analysts have warned that the sale of ETH hoarded by miners, worth more than $319 million, could potentially cause a major downtrend in the price of ETH.
Cardano (ADA) Rallies 7% After the Successful Launch of the Vasil Hard Fork
The long-awaited Vasil hard fork has finally launched and is now live on the Cardano blockchain. IOHK, the blockchain company behind Cardano, announced that the upgrade took place at 21:44 UTC on Thursday, September 22nd.
The launch of Vasil is one-half of the hard fork process, which is expected to be finalized on September 27th. Following its completion, the scalability and performance of the Cardano network are expected to be greatly increased.
Vasil will enhance Cardano’s smart contract capabilities through Plutus V2, which is expected to encourage developers to build more sophisticated decentralized applications (dApps), allowing it to compete with the likes of Ethereum, BNB Chain, Avalanche, and Polygon.
In reaction to news of the successful launch, Cardano (ADA) embarked on a brief rally, which saw the coin gain 7% in a 24 hour timeframe. ADA traded as high as $0.4791 before retracing to its current price of $0,4601 at the time of writing.
The 24 hour price chart for Cardano (ADA). Source: CoinMarketCap
- Cardano has long been criticized for not living up to its hype as an “Ethereum killer”, despite launching smart contract functionality over a year ago.
Why You Should Care
Vasil is regarded as the most important Cardano update to date, and is expected to make the network more developer friendly, and reduce transaction costs.
Ethereum Coin Mixer Tornado Cash Returns to GitHub After OFAC Guidance
Tornado Cash, the popular Ethereum coin mixer, which was recently sanctioned by the United States Office of Foreign Asset Control (OFAC), has returned to software development platform GitHub.
The platform’s code and profile were previously removed from GitHub, just hours after the OFAC blacklisted the platform on August 8th. However, today Ethereum developers awoke to discover that the codes had been restored on GitHub.
The restoration of its code follows clarification made to OFAC’s policies around Tornado Cash. The OFAC declared that copying and providing the Tornado Cash code was no longer prohibited by law.
OFAC went on to say that, if Tornado Cash comes back online, U.S. residents would legally be allowed to visit the Tornado Cash website.
- Despite its return to GitHub, the active use of Tornado Cash by residents of the United States is still prohibited.
Why You Should Care
The ongoing controversy around Tornado Cash has raised a lot of questions in the cryptocurrency and developer community.
Bitcoin (BTC) Mining Firm Compute North Files for Chapter 11 Bankruptcy
Compute North, one of the largest Bitcoin mining firms, filed for Chapter 11 bankruptcy on Thursday, September 23rd in the U.S. Bankruptcy Court for the Southern District of Texas. Compute North cites the decline in BTC and rising power costs as the reasons for its current struggles.
According to the court filing, Compute North owes 200 creditors an approximate $500 million, as well as having estimated assets and liabilities worth between $100 million and $500 million.
Compute North claims that no funds will be available for distribution to unsecured creditors after the payment of any administrative expense. The mining firm now hopes to stabilize its business during the period of bankruptcy.
Dave Perrill, the chief executive of the mining firm, has stepped down, but will remain on the company’s board of directors. In the meantime, former Chief Operating Officer Drake Harvey has been promoted to President of Compute North.
- In February, the firm announced raising capital to the amount of $385 million, $300 million in debt financing, and $85 million in a Series C equity round.
Why You Should Care
Although Compute North becomes the first crypto mining-related company to file for bankruptcy, the firm has merely joined the seemingly unrelenting list of victims to the crypto winter.
Coinbase Receives Regulatory Approval to Operate in the Netherlands
Coinbase has received approval from De Nederlandsche Bank (DNB), the central bank of the Netherlands, to operate as a crypto service provider. The approval represents an entry point through which the exchange hopes to expand throughout the European Union.
Coinbase becomes the first major, global, crypto exchange to gain approved from the Dutch central bank. The regulatory license enables Coinbase to offer its retail, institutional, and ecosystem products to customers in the Netherlands.
Coinbase affirmed that other registrations and license applications are underway in several major markets, even as it serves its customers across almost 40 European countries through dedicated hubs in the UK, Ireland, and Germany.
The development follows DNB’s September 16th Q&A publication of guidance dedicated to policies on sanctions screening for crypto transactions, outlining the risks and anonymity associated with cryptocurrencies.
- Coinbase has denied the Wall Street Journal’s allegations that the exchange engages in proprietary trading, but asserted that some of its competitors do.
Why You Should Care
The approval will help Coinbase keep up with rivals Binance and BitStamp, which have been spreading their reach across Europe.