Coinbase CEO Brian Armstrong Speaks Out Regarding Regulatory Pressure Against Binance

Leonardo Perez
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Coinbase CEO Brian Armstrong Speaks Out Regarding Regulatory Pressure Against Binance

Chief Legal Officer of Coinbase explains that in the United States legislation must be legislated regarding cryptocurrencies to put an end to the instability and insecurity that exists in the crypto sector. The United States will continue to be a place to invest, says Brian Armstrong in a post on X in which he also explained that Coinbase’s objective is to always be in compliance with the law.

Following the resignation of Changpeng Zhao from Binance due to pressure from North American authorities, Coinbase CEO Brian Armstrong spoke out about the regulatory state in the United States and the decisions his company made.

According to Armstrong, Coinbase has followed a strategy that, although it has been “difficult,” has been the correct one. This is because it has guaranteed the firm stability and security in decision-making.

Coinbase Growth On Par with Binance

These statements were made through X, where he also assured that the cryptocurrency market was “not going anywhere” and that a door was now opening for a new era in the industry.

Coinbase is one of the oldest cryptocurrency companies on the market. Founded in 2012, they arrived with the objective of serving the United States market and advancing based on its growth.

In its 11 years of history, Coinbase has faced various problems. From regulatory pressure to bear markets that have forced it to take difficult measures. But even with all this, they have survived. That time in the crypto industry is no small feat, as large companies with greater capital and rapid growth have fallen due to sudden market movements, which is why Coinbase’s work is commendable.

In the midst of a hostile context in the United States, Coinbase CEO Brian Armstrong has decided to talk about the complicated situation and the exchange’s strategy.

Armstrong explains that Coinbase took a “long-term” view that prioritized the regularization of its operations, before rapid growth. Thus, the CEO admits that opportunities were lost, but stability was maintained.

For the CEO of the firm, the most important thing is to transmit trust to the client and this is done by complying with the rules. Although in the United States the legal situation of cryptocurrencies is complicated, Armstrong assures that this can be resolved by being patient.

For this reason, Armstrong reaffirmed that Coinbase’s vision will be to always adhere to the law and that they will not leave the United States because they believe in its freedom and free market.

Binance’s New CEO

Following Changpeng Zhao’s resignation as CEO of Binance, Richard Teng took over. As Zhao explained, the new CEO has more than 30 years of regulatory experience and has been in charge of Binance’s regional markets. After taking office, Teng explained that he has three major goals, including giving confidence to users and working together with regulators to prevent more problems from recurring. He also applauded and thanked Changpeng Zhao for his work during his years as CEO, and explained that Binance’s founding values ​​are stronger than ever.

A new era opens in the regulatory situation of the cryptocurrency market. As Coinbase managers explained, it is necessary for regulations to be established and for the market to be more trustworthy.

By Leonardo Perez

Bitcoin on November 22: Binance Hits, BTC Barely Shakes

Audy Castañeda
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Bitcoin on November 22: Binance Hits, BTC Barely Shakes

Yesterday, Changpeng Zhao resigned as CEO of Binance and the price of Bitcoin took advantage of this to fall below $37,000. In fact, the price of BTC shows a drop of more than 2% in 24 hours:

Bitcoin price shows an impressive rise in 2023, which surpasses the performance experienced during the 2021 bull run. However, sellers managed to push the price below $37,000.

In one week, the course is increasing by 2.5%. Furthermore, in a month, BTC still shows an increase of almost 20%. At the same time, the BTC/ETH pair fell more than 1% in 24 hours but is still up 2% in a week.

Cryptocurrencies Experience Sharp Falls After Changpeng Zhao’s Announcement

The announcement by the now former CEO of Binance sent shock waves to the cryptocurrency market as a whole, whose global capitalization has plummeted almost 4% to stand at $1.41 trillion.

Unsurprisingly, the most affected cryptocurrency was BNB, Binance’s native token. The price of BNB has plummeted 10% throughout the day, despite having registered a five-month high in the early hours.

Bitcoin, the largest cryptocurrency by market capitalization, has accumulated a drop of 4.1% in the last 24 hours to trade at $35,968, after starting the day above $37,400.

Ethereum is currently trading at $1,944 after falling 3.9%, while the rest of the top 10 cryptocurrencies are also experiencing significant drops: XRP (-5%), SOL (-7.4%), ADA (-5.1%) and DOGE (- 7%).

While cryptocurrency prices initially fell on the news, both Bitcoin and Binance Coin have recovered from their lows. Some market observers believe that CZ’s demise paves the way for regulatory approval of direct bitcoin investment vehicles such as ETFs.

Despite the Fall of Bitcoin, Traders Continue to Accumulate

For several months, the BTC price has been strong. In 2023, it shows a 120% increase, a performance that recalls the different bull runs. The Trend Accumulation Score by Cohort indicator allows us to account for the behavior of different categories ranging from the smallest wallets to the largest wallets (whales).

Since the beginning of the year the different cohorts have alternated between accumulation (blue) and distribution (red) and the indicator shows a significant accumulation in October. In fact, all the categories are accumulating according to data from the Glassnode site. As Bitcoin price falls below $37,000, traders are accumulating and hoping for a return above $40,000.

Recapture $37,000 or Fall Towards $35,000 Support for Bitcoin Price

After this drop, the buyers’ objective is to retake the resistance zone located at $37,000. In this way, the course could mark a new record in 2023 and return to the resistance level at $38,500:

On the other hand, a rejection at the resistance level and institutional bias (EMA 9/EMA 18) could cause the price to return to the support level at $35,000. Specifically, the course is in the process of lateralizing. As long as the $35,000 holds, buyers have the advantage in 4H. The RSI failed to regain bullish momentum closing above 67. If the RSI closes below 25 then bearish dynamics would continue. In this case, the sellers would continue to benefit from the momentum.

The price of Bitcoin fell following the announcement about Changpeng Zhao’s resignation as CEO of Binance. $37,000 will need to be reclaimed as support in an attempt to make a new high in 2023. Since October, traders have been accumulating a lot of BTC. The trend does not seem to weaken. Will BTC continue its impressive momentum since the beginning of the year?

By Audy Castaneda

Worldcoin (WLD) Price Fluctuates Following Events in the AI ​​Industry, Including Sam Altman’s Overthrow

Leonardo Perez
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Worldcoin (WLD) Price Fluctuates Following Events in the AI ​​Industry, Including Sam Altman’s Overthrow

Worldcoin price has fallen over the last 24 hours as new issues and the overthrow of Sam Altman continue to spread.

Worldcoin (WLD) price reacted to news in the artificial intelligence (AI) industry, especially as it relates to OpenAI. WLD, the native token of the Worldcoin project co-founded by Altman, rose more than 9% in the last 24 hours and was trading at $2.55, according to data from CoinGecko.

The data also showed that it rose more than 31% over the past week. Unfortunately, current data at the time of writing shows that the Worldcoin price has also succumbed to market volatility.

Although it rose very slightly in the last hour, the price of Worldcoin has fallen by 6.4% in the last 7 days. Last week, Sam Altman was removed from his position as CEO of OpenAI, the company that launched ChatGPT last November.

News on OpenAI

According to a New York Times publication, OpenAI directors stated that the former CEO would not return to his position at the company. The note also mentions that former Twitch CEO Emmett Shear will replace Mira Murati, the company’s interim CEO.

Shortly after Altman was fired, Microsoft gave him a job. According to an X email from Microsoft CEO Satya Nadella, Altman and former OpenAI co-founder and president Greg Brockman will lead a new AI research team. In a subsequent post,

Nadella expressed his excitement about Altman’s addition, calling it a “new pace for innovation.” Microsoft and other OpenAI investors, including Thrive Capital and Tiger Global, were pushing for the company to restore Altman’s position. Unfortunately, this did not happen.

Although Microsoft is not on OpenAI’s board of directors, the multinational tech giant owns about half of the company. In January, Microsoft invested $10 billion in OpenAI, easily the company’s largest investment in its history.

Worldcoin fell 10% on Friday as OpenAI’s board of directors fired Sam Altman, citing transparency issues. In an official blog post, the board said it conducted a deliberative review process and concluded that Altman “was not consistently candid in his communications with the board.”

The board added that it no longer trusts Altman’s leadership. Worldcoin has had a checkered past as regulators in several countries banned its operations. Worldcoin is a biometric cryptography project from global software and hardware company Tools for Humanity, co-founded by Altman in 2019.

About Worldcoin Project

The Worldcoin project came under public scrutiny after it insisted that users must submit biometric data to register, including performing iris scans. Users who complete the process receive cryptocurrency in exchange. More than 9,500 Argentinians have reportedly registered on Worldcoin. Worldcoin facilitators had distributed the registry to 38 different locations.

Despite strong criticism, the project achieved impressive results in the country. Argentina joined countries such as France and Germany, which are probing the company’s operations. In August, Kenyan authorities suspended Worldcoin’s operations and then raided its warehouse a week later. Police officers left the warehouse with machines that allegedly contained data collected from registrants. Worldcoin was paying Kenyans around $49 in cryptocurrency for registration.

Currently WLD is trading around $2.32 with a decrease of -4.5% in the last 24 hours, according to CoinMarketCap. Altman, along with Greg Brockman, president of OpenAI, is assembling a team to forge a new business path and develop a promising product that is expected to be “amazing.” The news has had a palpable impact on the cryptocurrency market and has put Worldcoin in the spotlight.

By Leonardo Perez

SEC Sues Kraken for Operating Without a License, Exchange Will Seek to Dismiss It

Audy Castañeda
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SEC Sues Kraken for Operating Without a License, Exchange Will Seek to Dismiss It

The SEC is once again suing the American exchange, Kraken, for operating without a license and mixing its clients’ money with its own. The SEC argued that Kraken’s unregistered operation in the United States deprived investors of obtaining safeguards against conflicts. The regulator accuses Kraken of making hundreds of millions of “illegal” dollars in profits since 2018, exchange defends itself in extensive letter.

The United States Securities and Exchange Commission (SEC) announced a lawsuit against Kraken and its parent company Payward Inc. and Payward Ventures, for operating without registration. The lawsuit argues that since 2018, the exchange has facilitated the buying and selling of cryptocurrencies, which deprived investors of “important protections.”

The SEC maintained that Kraken’s unregistered operation in the United States deprived investors of obtaining safeguards against conflicts, official inspections and support in maintenance requirements. In addition, he pointed out that the exchange had poor controls and poor maintenance practices by “mixing its clients’ money with its own.”

SEC Sues Kraken for “Mixing Customer Funds with Company Money”

Kraken argued “not to agree” and will seek to defend its position in court. He announced that the SEC’s lawsuit will not have an impact on service to his clients. He charged that the SEC did not accuse misuse of dollars or a Ponzi scheme.

Kraken alleged that the SEC used a “technical argument” of needing a securities license to operate, because it supposedly supports the operation of “digital assets” through the figure of “investment controls.” He recalled that the SEC has used the same argument before and it has been rejected by courts.

The SEC argued that Kraken engaged in the following:

  • Providing a market using established and non-discretionary methods.
  • Engaging in the business of carrying out securities transactions for Kraken accounts and operating as a broker.
  • Engaging in the business of buying and selling securities on its own account without applicable exceptions, and therefore operating as an intermediary.
  • Serving as an intermediary in the settlement of crypto asset securities transactions by Kraken clients and acting as a securities depository.

Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said the following:

“We allege that Kraken made a business decision to obtain hundreds of millions of dollars from investors rather than comply with securities laws. “That decision gave rise to a business model plagued by conflicts of interest that put investor funds at risk.”

The SEC’s complaint, filed in federal district court in San Francisco, alleges that Kraken violated the registration provisions of the Securities Exchange Act of 1934 and seeks injunctive relief, conduct-based injunctions, disgorgement of ill-gotten gains plus interest, and penalties.

Kraken: The SEC Has Not Published Any Framework for Trading Digital Assets

Kraken alleged that the SEC has not issued any rules describing how an order in a digital asset should be matched, nor any guidance on how to clear a trade involving digital assets. The exchange even alleged that “the regulator’s accusation is hollow.”

Kraken defended itself by arguing that Congress is moving forward on bipartisan legislation to establish clear registration and oversight frameworks for centralized trading exchanges. He even announced that he remains “highly committed to his users in the United States.”

“Congressional action by elected legislators, not enforcement by agencies, is the right path to creating a new law for centralized cryptocurrency trading platforms in the United States.”

By Audy Castaneda

Tether and OKX Unite to Dismantle Human Trafficking Network and Freeze 225 million USDT, And Other News

Leonardo Perez
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Tether and OKX Unite to Dismantle Human Trafficking Network and Freeze 225 million USDT, And Other News

In a recent statement it was learned that Tether and OKX teamed up to dismantle a criminal network, freezing 225 million USDT.

In a major joint effort, Tether and OKX have assisted the United States Department of Justice in an investigation that led to the freezing of approximately 225 million USDT tokens in external wallets linked to an international human trafficking ring in Southeast Asia. This network, responsible for a global scam known as the “pig butchering” scam, has been dismantled thanks to collaboration between these companies and law enforcement agencies.

During the process, Tether and OKX proactively alerted US law enforcement agencies. Including the Department of Justice, on the location of illicit funds, analyzing their flow through the blockchain.

These alerts coming from Tether and OKX led to a freeze request by the United States Secret Service and a voluntary freeze by Tether. Importantly, frozen wallets are not associated with Tether clients. So, any legitimate wallets captured during the operation will be quickly unlocked in collaboration with law enforcement and owners.

Microsoft Hires Sam Altman, Former OpenAI CEO

Microsoft has brought in Sam Altman, the former CEO of OpenAI, to head an “advanced AI research team.” As announced by Microsoft CEO Satya Nadella in a publication. Altman will join the internal team along with Greg Brockman, co-founder of OpenAI, and other colleagues, Nadella noted.

Altman shared on Twitter that the “mission continues” following the announcement, receiving enthusiasm from Nadella. He expressed being “super excited” to have Altman as CEO of this new group.

On November 20, Satya Nadella, Chairman and CEO of Microsoft Corporation, posted on X the following:

“We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners. We look forward to getting to know Emmett Shear and OAI’s new leadership team and working with them.”

Greg Brockman also joined the conversation on Twitter, stating that they are going to “build something new and it will be amazing.” The group’s initial leadership team will consist of Altman, Greg Brockman, Jakub Pachocki, Szymon Sidor and Aleksander Madry, as confirmed by Brockman on X.

Bullish Cryptocurrency Exchange Acquires CoinDesk

According to reports from the Wall Street Journal (WSJ), Bullish, the cryptocurrency exchange led by Tom Farley, former president of the New York Stock Exchange, completed the acquisition of crypto media platform CoinDesk. Matt Murray, former editor-in-chief of the Wall Street Journal, will lead an independent editorial board. Meanwhile, the current CoinDesk editorial team will remain intact.

Although the exact terms of the deal were not disclosed, the all-cash transaction represents a significant moment for CoinDesk, which was previously owned by Digital Currency Group (DCG).

ARK Investment Management Insists on Launching a Bitcoin ETF in the United States

Despite the obstacles, ARK Investment Management, the cryptocurrency investment firm founded by Cathie Wood, is not giving up on its goal of launching a spot Bitcoin exchange-traded fund (ETF) in the United States.

On November 20, ARK Invest filed a third amended version for its Bitcoin Spot ETF prospectus. This, in collaboration with the European digital asset manager 21Shares.

If approved, the ARK and 21Shares Bitcoin ETF, called ARK 21Shares Bitcoin ETF, will be listed on the BZX Exchange of the Chicago Board Options Exchange (CBOE) under the symbol ARKB. As indicated in the updated presentation.

By Leonardo Perez

PlanB Remains Confident in Its Bitcoin Valuation Models

Audy Castañeda
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PlanB Remains Confident in Its Bitcoin Valuation Models

During a recent publication, PlanB stated that its three valuation models work optimally when analyzing Bitcoin.

In a recent post on X (formerly Twitter), PlanB states that its Bitcoin valuation models are working optimally. Despite the stumble of the S2F model in 2021 with the non-arrival of BTC at $100,000, he emphasizes that they are not perfect.

In simple words, this expert’s predictions, like those of any other, are not completely certain, but approximate. As for the PlanB models, it must be said that they are among the most accurate despite the aforementioned flaws that they could have in some specific cases. It should not be lost sight of that the price of BTC moves according to the market mood, something that complicates predictions.

In any case, the analyst highlights that his three models, which he has been developing for five years, are performing well. These models are the already mentioned stock-to-flow (S2F), time model and difficulty model. “I’m still amazed at how well they track,” he explained.

The Three Models At Work

The first of these models focuses on scarcity and price jumps related to halvings. The second with adoption over time and the third with KWh-$ arbitrage.

PlanB’s post on X explained it in detail as follows:

“I have been making these 3 bitcoin valuation models for 5 years now, and it still amazes me how well they track:

1) time model (light blue): adoption over time

2) stock-to-flow model (dark blue): scarcity and price jump around halvings

3) difficulty model (red): kWh-$ arbitrage.”

Controversy around Bitcoin’s Valuation and S2F

Predicting the valuation of Bitcoin or another asset that depends on the market mood is a complex task. In 2021, PlanB claimed that the S2F model indicated that the exchange value of the currency would reach $100,000 per unit. However, the price stopped long before that threshold.

Although the forecast failed quantitatively, it did not fail qualitatively. Precisely, this is explained by the analyst himself in a response to a comment from a follower. «In 2021 BTC failed to reach 100K. The model did not fail. In fact, S2F correctly predicted the 2020/2021 rally after the halving (when many expected a mining and BTC death spiral). He also predicted that the price will rise again after/around the 2024 halving,” he pointed out.

Although many analysts have lost faith in PlanB’s models, they maintain a notable strength in Bitcoin’s valuation. The expert once again ventures to the numbers projected by the S2F and says in another text that the range of the next bullish cycle will be between $100,000 and $1 million dollars per coin.

Taking all this into consideration, it must be highlighted that no market model is 100% effective. PlanB, defending the models’ tooth and nail, recognizes the latter. “It is certainly not accurate. But it is more or less correct and, certainly, useful to explain value (based on adoption, scarcity and arbitrage),” he admits.

In short, many people jumped ahead of PlanB’s 98K prediction and their Stock-to-flow model for Bitcoin has received a lot of criticism. However, PlanB recently spoke again on X and remains positive about future price developments. The disappearance of FTX is, according to PlanB, only a minor problem. ‘The number of Bitcoin currently in profit is around 55%. This will start to rise again.’

By Audy Castaneda

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