The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Welcome to 2023! Here's what's happening in crypto today: |
- CoinDesk's parent company facing legal troubles.
- Cameron Winklevoss and Barry Silbert in war of words.
- The U.K. gives foreign investors crypto tax exemption.
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Want our 5 p.m. ET market update? |
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CoinDesk Market Index (CMIP): 825 +0.0%
Bitcoin (BTC): $16,718 −0.0%
Ether (ETC): $1,216 −0.0%
S&P 500 futures: 3,878.75 +NaN%
FTSE 100: 7,547.63 +1.3%
Treasury Yield 10 Years: 3.88% +0.0
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Three Gemini Earn users have filed a request for class-action arbitration against Genesis Global Capital and Genesis' parent company, Digital Currency Group, in response to Gemini suspending its Earn redemption program because Genesis froze withdrawals. Claimants allege that Genesis breached its Master Agreement when it became insolvent in the summer of 2022, while hiding its insolvency from lenders like Gemini. Digital Currency Group owns CoinDesk. |
The Winklevoss tiwns (Joe Raedle/Getty Images) |
The co-founder of Gemini has accused DCG CEO Barry Silbert of "bad faith stall tactics" as their respective companies lock horns over a business disagreement precipitated by crypto exchange FTX's multibillion-dollar implosion late last year. Cameron Winklevoss blasted Silbert in an open letter posted to Twitter, alleging that crypto broker Genesis Global Capital and DCG owe Gemini's clients $900 million. The letter alleges Gemini has awaited word on a repayment agreement for six weeks to no avail. In response, Silbert said his firm submitted a proposal to Genesis and Gemini's advisers last Thursday. The United Kingdom is enforcing a tax exemption for foreign investors purchasing crypto through local investment managers or brokers. The tax break, announced in December, is a part of Prime Minister Rishi Sunak's plans to turn the U.K. into a crypto hub. "This exemption is an important factor in attracting global investors, meaning foreign investors won't be brought into U.K. tax simply by appointing U.K.-based investment managers," the government's tax arm, the HM Revenue and Customs, said in an email to CoinDesk. |
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Market Insight: Liquids' Solid Run
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While bitcoin and ether remain in stasis, governance tokens of liquid staking platforms, which allow users to retain liquidity of their tokens even though they are locked in a blockchain network, are rallying. Lido DAO or LDO, the governance token of Lido decentralized autonomous organization (DAO), has jumped 19% in the past seven days, with prices reaching a one and a half-month high of $1.30 early Tuesday, according to data source CoinGecko. Liquid staking protocol StakeWise's SWISE token has surged over 70% in a week, while Rocket Pool's RPL has gained almost 10%. The rally follows Ethereum developers' Dec. 8 announcement that the network's next hard fork, or backward-incompatible upgrade, will take place in March. The upgrade, known as Shanghai, will include code allowing withdrawals of ether staked in the Beacon Chain since December 2020, finally giving participants a timeline for reclaiming their ether. |
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Source: Arnob Biswas, research head at SMC Global Securities |
- The chart shows the dollar index's (DXY) performance in January going back to 2000.
- The DXY has appreciated 14 out of 22 times in January.
- The bullish seasonality means the battered greenback could rebound this month, adding to the crypto market's woes.
- The DXY declined by 7.7% in the final quarter of 2022. Yet, bitcoin fell nearly 15%, thanks predominantly to FTX contagion fears.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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