A roundup of the week’s crypto news, as market data gives us some tentative signs of recovery, the European Union decide on how to regulate crypto, Aave users vote on launching a new stablecoin, and the full story on the $600 million Axie hack is revealed, with some intriguing details.
First signs of price recovery?
Some light at the end of the tunnel this week, as the Bitcoin price shows the best performing weekly candle since March. A 12% gain for Bitcoin on the weekly chart is being called a “breakout” by many analysts, and CoinGecko has the total crypto marketcap bouncing from a 1 trillion dollar support.
On-chain data from Glassnode a few days prior pointed to over $25 billion of “dry powder” on the sidelines of crypto, calling out what it called “the end of Bitcoin tourism” as weak hands have been thoroughly shaken out, and 20% of crypto’s total value being stored in stablecoins like Tether and USDC.
Glassnode also pointed out the largest ever monthly outflow of crypto from centralized exchanges to self-custodial solutions such as Exodus; news which was celebrated by crypto purists on Twitter and Reddit.
Not your keys, not your cheese.
The week’s regulation news
The EU have reached an agreement on a crypto regulation framework that should set the tone for years to come. Some of the most notable parts include a minimum 1/1 backing for all stablecoons, and forced liability for customer / user assets, which would most likely have protected users of apps like Celsius.
The US Treasury has published a “fact sheet” that shows exactly which foreign agencies they have worked with on crypto regulation. Amongst other things, the document shows that the government has been working with G7 and G20 nations on issues such as CBDCs and global cryptocurrency payments.
Argentinian citizens FOMO’d into stablecoins in response to the resignation of the Argentinian Economy Minister and the rising inflation of the Argentine Peso. The potential for Peso volatility is apparently so severe that Argentinians also reportedly rushed to store their savings in Bitcoin. Citizens of the country are restricted to exchanging only 200 dollars per month, but are not officially restricted from purchasing stablecoins.
Devs keep on devving
In Web3 news, Polygon has entered the Web3 smartphone race, partnering with London-based Nothing Tech to launch an Android-based smartphone that has built-in access to Polygon applications and games. Polygon will compete with Solana and any other Web3 phone incumbents to onboard crypto-curious smartphone users into their ecosystem.
The head of gaming at TikTok has left the company to launch Meta0, blockchain infrastructure for creating connected metaverses. Jason Fung is the latest in a long line of entrepreneurs and visionaries who are making the leap from the corporate world into the brave new world of blockchain.
In other development news, the Aave community are voting on the creation of a new native stablecoin, GHO. The decentralized stablecoin will be over-collateralized and backed by multiple collateral types on the Aave protocol, making it similar in design to Maker DAO’s DAI stablecoin.
And finally… biggest ever interview fail?
What’s the biggest disaster you ever had during a job interview?
The story has emerged of an unfortunate Axie Infinity engineer who was persuaded to apply for a lucrative position over Linkedin, before sitting through multiple rounds of fake interviews and then being sent a job offer in a PDF file which contained spyware.
The spyware was ultimately able to gather enough sensitive information to drain approximately $600 million of ETH and USDC from Axie’s Ronin bridge, which connects the chain to Ethereum.
A pretty mortifying story, but hopefully it makes you feel better about that time that you told an interviewer that you could speak pretty good Japanese (because you’d seen every episode of Naruto) and then just started vacantly at him as he proceeded to conduct the rest of the interview in perfect Kyushu Japanese.
Anyway, the crypto space may be many things, but it is never boring. Click here for our top 3 wildest crypto moments of 2021.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.