BIT Blog

Weekly Update: Semper Paratus.

Weekly Update: Semper Paratus.

The firefighter has arrived

The BoE has taken emergency action in order to calm the financial markets amid a collapse in GBP (reaching record lows against USD) and the increase in government borrowing cost following the Conservative Government's tax-slashing mini-budget. The BoE said that it will buy long-dated bonds on "whatever scale is necessary", while Prime Minister Liz Truss indicated she would stay the course, no matter how unpopular.

An unfair game

The SEC charges the Hydrogen Technology Corp. and its former CEO for market manipulation of crypto securities ("Hydro") prices and volumes yielding more than $2m for the company.

Fight is on

In December 2020, the SEC decided to sue Ripple Labs asserting that their coin, XRP, is a security. Some people believe that the ruling could have greater implications for the overall crypto community, as if the SEC prevails, it would bring the regulator closer to becoming the "crypto enforcer supreme" as stated by Axios. Case to be followed.

And the winner is ...

Crypto Exchange FTX won Voyager Digital's assets in a deal valued at $1.4bn.

A market maker bias

Given the level of volatility, market makers seem to be reluctant to sell. However, Paradigm saw some 7Oct gamma being bought in BTC/ETH calls and mentioned that ETH calls are "fairly well digested given natural 7Oct / 28Oct call cal flow allowing MM to recycle the gamma."

Public enemy #1

Interpol has issued Red Notice for Do Kwon, co-founder of Terraform Labs, for violating the country's securities law following the spectacular collapse of his LUNA cryptocurrency earlier this year.

Magic button

Stanford researchers Kaili Wang, Qinchen Wang and Dan Boneh have drew up a proposal for two new Ethereum token standards (ERC20R and ERC721) which will offer the possibility to reverse malicious transactions in case of a hack. The governance smart contract would be controlled by a "decentralized judiciary system". The proposal has been widely criticized on Twitter as it could be considered contrary to blockchain principles.

Gone for good

According to the 2miners, 8 out of 10 miners appear to have gone offline after The Merge, unplugging around $5B worth of mining hardware. The move from POW to POS reduced Ethereum's energy consumption by 99.8%.

Solar-powered mining

Bitcoin miner Aspen Creek raised $8M to fund its second Texas mining facility. According to the company's CEO, Alexandra Da Costa, investors were interested in the project as it uses renewable energy and offers a more predictable Bitcoin mining operation, which makes sense in a bearish market combined with the rising cost of energy.

What's to come

PMIs for China (30-Sep), US (03/05-Oct); Inflation data for France, EU, Italy & US (30-Sep); GDP growth for UK (30-Sep); Unemployment Rate for Germany (30-Sep) and Michigan Consumer Sentiment for US  (30-Sep)

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