March 15, 2023

The Slides Of March

How fun has the crypto market been this week? About as fun as a Midwest county fair rollercoaster. You know, the kind you can tell just by looking that it hasn’t had a safety inspection since Hulk Hogan last won Wrestlemania.

There’s another bank failure in focus, and it’s not cryptos fault. We’ll talk about that in today’s Litepaper, along with Coinbase announcing they’ll start processing Ethereum unstaking after the Shanghai update.

Red is the color of the day. However, the Total Market Cap is still at the critical $1 trillion mark, but we’ll see if it can hold against all the FUD going on.

Here’s how the market looked at the end of the trading day:

BNB (BNB)	$303.51	-4.07%
TRON (TRX)	$0.065	-4.58%
Stellar (XLM)	$0.083	-5.19%
Bitcoin (BTC)	$24,124	-5.28%
XRP (XRP)	$0.36	-5.87%
OKB (OKB)	$46.75	-5.98%
Monero (XMR)	$143.87	-6.70%
Ethereum (ETH)	$1,625	-7.26%
Cosmos (ATOM)	$11.90	-8.22%
Chainlink (LINK)	$6.44	-9.27%
Altcoin Market Cap	$554 Billion	-4.52%
Total Market Cap	$1.027 Trillion	-3.38%

Crypto

And That’s Why Bitcoin Was Created

It sounds like the U.S. banking, and financial systems are about as structurally sound as the popsicle stick bridge I made in 9th-grade woodshop. 👎

Never mind the Silvergate and Silicon Valley Bank fiasco; today’s bank of the day is Signature Bank ($SBNY).

New York regulators have stated that the closure of Signature Bank is unrelated to cryptocurrencies, contrary to speculation that its demise was connected to the bank’s involvement in the digital asset industry. Signature Bank was known for its crypto-friendly stance, providing banking services to a wide range of cryptocurrency-related companies. However, recent reports indicate that the bank was already under criminal investigation before its collapse, which now appears to be the primary factor leading to its failure.

According to the reports, Signature Bank was facing accusations of money laundering and other illicit activities, which had put the bank under the scrutiny of law enforcement agencies. This criminal investigation, rather than any direct involvement with cryptocurrencies, seems to be the main reason for the bank’s eventual collapse.

In a separate but related development, macroeconomic strategist Lyn Alden warns that the U.S. banking system is currently nursing over $600 billion worth of unrealized losses. Alden’s analysis suggests that the U.S. financial system may be more fragile than it appears, as these unrealized losses have been building up and can potentially cause significant instability in the banking sector.

Alden emphasizes the importance of closely monitoring the situation, as a failure to address these unrealized losses could lead to serious consequences for the overall health of the U.S. economy. She encourages investors and financial institutions to exercise caution, given the potential risks associated with the current state of the banking system.

Fears regulators and lawmakers might try to fix the issue are growing in the crypto community. Crypto might become a scapegoat for banking’s failures – the equivalent of waking up in the middle of the night to your fire alarm blaring. Instead of investigating why it’s going off, you take the batteries out instead. 🤦‍♂️

Crypto

Freedom For Staked Ethereum Incoming!

$COIN just announced this amazing news for $ETH stakers:

5/ If you’d like to unstake, Coinbase will begin taking unstaking requests about 24 hours after the upgrade completes. All unstaking requests are processed on-chain, and we’ll pass the unstaked funds and staking rewards to you once released by the Ethereum protocol.

— Coinbase (@coinbase) March 15, 2023

But if you think all that staked ETH can be taken out, well, prepare to be disappointed. 😖

The big-wigs of Ethereum recently placed limits on full withdrawals post-Shanghai for 18 months, according to recent reports. The restrictions come in response to what Ethereum claims are “increased risk” concerns. In practical terms, these restrictions mean that Ethereum users in Shanghai cannot withdraw their entire balances from the platform for the next year and a half.

While the move is likely to frustrate some users, it is worth noting that the restrictions only apply to full withdrawals. Users will still be able to make partial withdrawals from their accounts during the 18-month period. Additionally, Ethereum has stated that it will be working to improve security measures during this time, which may help to alleviate some concerns.

The move comes as part of a broader effort by Ethereum to enhance security and reduce risk on its platform. In recent months, the company has been working to implement a range of new security features, including two-factor authentication and improved password protections. These efforts are aimed at making the platform more secure and reducing the risk of fraud and other forms of criminal activity.

We’ll keep you updated as this story develops.

According to ethereum.org, the network upgrade is expected to occur in the first half of 2023. We’ll keep you updated as this story continues to develop. ✍️

Bullets

Bullets From The Day:

😱 Ark Invest continues its blockchain spending spree, adding a further $13.7 in Block ($SQ) shares. The investment firm has been increasing its exposure to the cryptocurrency and blockchain sector, with recent allocations indicating strong confidence in the industry’s potential. The additional investments are spread across three funds: $ARKW, $ARKF, and their Ark Autonomous Technology and Robotics ETF. Cathie Wood’s funds also picked up around 26,000 shares of $TSLA on Monday.

💳 Over the past year, there have been eight $USDT transfers worth $1 billion or more. Four of them occurred in the last 10 days. On-chain analytics firm, Santiment, reported on Twitter that the rapid withdrawal of USDT by whales from exchanges can be attributed to factors such as the collapse of a bank and concerns surrounding USD Coin’s ($USDC) depeg over the weekend.

📋 The European Parliament has approved the Data Act, which mandates the implementation of “kill switches” on smart contracts. The legislation addresses the concerns surrounding data protection and the lack of human intervention in automated systems. The kill switch requirement is designed to allow for the termination of a smart contract in the event of unforeseen issues or illegal activities. However, the crypto community is understandably opposed to this for two primary reasons. First, the immutability of smart contracts is essential to their existence. Second, no one knows who the hell will control the kill switch!

🦺 Is crypto now safer than fiat? According to a Trustnodes, report, it is. The report highlights cryptocurrency as a safer alternative to traditional fiat due to increased regulation, widespread adoption, and improved security measures within the crypto ecosystem. Additionally, as the industry continues to mature and gains mainstream acceptance, the risks associated with it have been reduced, making digital assets more appealing and secure for both investors and everyday users. And perhaps most important is the advancement in security. advancements in wallet security, exchange platforms, and user education have contributed to a decrease in hacks and scams.

NFTs

En Eff Tee News – March 15, 2023

🤯 Symbiogensis, an NFT game still being made by Square Enix, is facing more gamer criticism. Fears of NFTs in gaming as a gimmick follow concerns that in-game NFTs could create potential negative effects in in-game economies.

🐕‍🦺 Sotheby’s, the famous auction house, announced the sale of a meme-inspired NFT artwork titled “The Fungible” by Pak. The sale is scheduled for April 12th, and the artwork is expected to fetch between $10 million and $15 million.