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Huobi trouble 😵💫
Rumours of insolvency, amidst big outflows and investigations in China for Huobi. Musk's X will never launch a token. Almost 100 crypto funds shut down. UK to expand crypto crime agency.
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Huobi, a major cryptocurrency exchange, has seen significant outflows of $64 million over the past weekend, contributing to a decline in its total value locked (TVL) from $3 billion to $2.5 billion in the past month, according to DeFiLlama.
Fintech executive and crypto Twitter analyst, Adam Cochran, raised concerns about Huobi's financial stability, connecting it to a bulk sale of Tether (USDT) by global crypto giant Binance. Cochran speculated that Binance's move might be due to Huobi's insolvency.
Cochran also mentioned rumours of Huobi executives and Tron personnel being questioned by the police. Allegedly, missing funds from Huobi could be propping up the yields of Tron and other DeFi apps operated by Justin Sun. However, Huobi's head of social media denied the police involvement, calling it mere speculation.
Cochran stood by his claims, stating that his source was a senior Tron executive with inside knowledge of the investigation. Huobi has faced other challenges, including layoffs and a shutdown order in Malaysia, raising concerns about the exchange's overall stability.
TTD Blockquote 🔊
Elon Musk, Mr X
"And we never will."
The crypto space is always full of surprises, and this time, it's Elon Musk shaking things up.
In a recent post on the social media platform he owns, X (formerly known as Twitter), Musk made a bold declaration. He stated that X will "never" launch its own crypto token 🚫💰
Now, if you've been around the crypto realm, you'll know that there are plenty of low-cap tokens out there associating themselves with X, Twitter, or Musk himself.
These names might ring a bell.
ELON BUYS TWITTER (EBT)
But remember, folks, these are not officially sanctioned by X or Musk. 🐶
Speaking of Musk, we all know his love for the meme coin, Dogecoin. Remember when he changed the Twitter logo to the Dogecoin logo? That move alone caused a 27% surge in the coin's price. Talk about influence.
TTD Numbers 🔢
The number of crypto funds that have closed since the beginning of 2023.
That's out of more than 700 that exist worldwide. The data comes from the Swiss investment adviser 21e6 Capital AG. According to a report by Bloomberg News.
While these funds returned an average of 15.2% in the first half of the year, they underperformed bitcoin, which gained a whopping 83.3%.
Many of the funds were holding more cash than usual due to industry turmoil last year 💰📉
Finding new partners for banking services has been a struggle for some funds, according to Maximilian Bruckner, the head of marketing and sales at 21e6.
Directional funds performed well but still underperformed bitcoin. Discretionary crypto funds didn't face the same issues as many funds that had to slow down operations due to regulatory uncertainties 🏦 🔍
Quantitative funds, on the other hand, were held down by "choppy" markets. Investor confidence has improved slightly, but fund inflows and fund launches aren't signalling a full recovery in sentiment just yet.
TTD Ethereum ⛓️
Researchers are cooking up something interesting in the world of blockchain. They're developing an Ethereum-based tool called Salsal to help museums and cultural institutions keep track of their valuable historical collections.
Mark Altaweel, a professor in the archeology department at the University College of London, has been working on Salsal with colleagues at Abu Dhabi University for about two years. He believes that putting history on the blockchain could be a step towards "decolonizing museums" and reclaiming the past 🏺🌍
The idea is simple. Museums and collectors submit their collections of historical objects to the Salsal blockchain. Experts, like archaeologists, then examine each artifact to determine their condition, provenance, and whether they were legally obtained 🕵️♂️📜
The Salsal network, a partially-private version of Ethereum, will use the Museum Association’s sliding scale rating standard. A rating of one means the collection and/or items were legally and ethically obtained with plenty of documentation. A rating of five means the items “have clear evidence that they were obtained illegally,” according to Salsal’s white paper ⚖️📝
If a collection is shown to be ethically and legally legitimate with enough documentation to reasonably prove where the items came from, “the collector can then turn their collection into NFTs.”
TTD Hiring 🗂
The United Kingdom’s National Crime Agency (NCA) is stepping up its game in the crypto space. They've launched a digital assets team, signalling an increased focus on crypto. And guess what?
They're hiring 🇬🇧👮♀️
The NCA's move comes as no surprise. With the rise of digital currencies, there's been an uptick in crypto-related crimes. Everything from money laundering to fraud, and the NCA is determined to tackle these issues head-on 💼 🔍
The new digital assets team will be at the forefront of this fight. They'll be working on investigations, intelligence, and operations related to digital assets. And they're looking for people with a range of skills, from technical expertise to investigative experience 💻 🔦
This is a big step for the NCA and for the UK. It shows a commitment to understanding and regulating the crypto space. And it's a sign that they're taking crypto crime seriously.
TTD Surfer 🏄
The MakerDAO community has approved a temporary increase in annual returns for depositing DAI stablecoin into the protocol, allowing users to earn an 8% yield.
Humanitarian aid and community services charity Singapore Red Cross starts accepting crypto donations.
Kenyan police raided the Nairobi warehouse of identity and cryptocurrency protocol Worldcoin on Saturday, confiscating documents and machines, local news organisations reported Monday.
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The Token Dispatch is a daily newsletter that takes you on a 4-5 minute drive through the wild west of the Crypto World. Daily in your email inbox @13:00 GMT. Almost always.