Welcome to the latest edition of the AsicZ Weekly Wednesday Roundup, where we bring you the most noteworthy news and developments from the cryptoverse. In this week’s roundup, we review a range of intriguing stories that have made headlines. We explore how Bitcoin miners have set a new record by sending a significant portion of their revenue to centralized exchanges, the divergent attitudes towards crypto based on geographical location, Riot Platforms’ ambitious plans to expand its Bitcoin mining capacity, the increasing involvement of Wall Street in the crypto industry, concerns surrounding stablecoin TrueUSD’s peg to the US dollar, the receivership of crypto custodian Prime Trust, and the challenges faced by Binance Australia in the banking system. Join us as we unpack these important updates and provide insights into their implications for the community.
Bitcoin miners send record $128M in revenue to exchanges
Bitcoin miners have set a new record by sending a staggering $128 million of their revenue to centralized exchanges, equivalent to 315% of their daily earnings, according to on-chain analytics platform Glassnode. Typically, miners transfer their profits to exchanges to cover expenses and take profits. The surge in miner revenue sent to exchanges comes amid Bitcoin’s highest price of the year, reaching $31,185. However, Bitcoin’s price has yet to react to the influx of miner sell-offs. Despite the increase in Bitcoin’s price, miners continue to face challenges such as decreased profitability and rising hash rates and difficulty levels. Selling their Bitcoin holdings may become a necessary step for miners to manage expenses in this challenging environment.
Attitudes on crypto are geographically divided, ConsenSys survey finds
A survey conducted by ConsenSys in partnership with YouGov reveals divergent attitudes towards cryptocurrency based on geographical location. Respondents from developing nations, such as Nigeria, showed more optimism and interest in crypto, with 65% of Nigerians considering it a store of value. In contrast, respondents from developed nations like the US, Germany, and the UK cited curiosity and a desire to experiment as key reasons for investing in crypto. The survey also highlighted that respondents from Asian nations, including Singapore, expressed the highest likelihood of investing in cryptocurrency over the next year. Nigeria emerged as the most crypto-positive country, with a high level of understanding and ownership despite limited trading opportunities.
Riot Platforms to add 33,000 Bitcoin miners ahead of 2024 halving
Riot Platforms, a major Bitcoin mining company, has purchased 33,280 new-generation Bitcoin miners from MicroBT for its Texas facility at a cost of $162.9 million. The addition of these rigs will increase Riot’s self-mining capacity by 7.6 exahashes per second (EH/s) and is timed ahead of Bitcoin’s upcoming halving in 2024. Once installed in the first quarter of 2024, the miners will bring Riot’s self-mining capacity to 20.1 EH/s. The machines were specifically designed for immersion cooling systems. Riot also has the option to acquire an additional 66,560 miners, adding 15.3 EH/s to its capacity. Despite the news, Riot’s share price experienced a 7.2% decline.
Wall Street Is Coming for Crypto—Whether Early Believers Like It or Not
The entry of traditional financial institutions into the crypto industry, led by Wall Street, is seen by some experts as an inevitable development. As regulatory clarity emerges and major players like BlackRock and Fidelity make moves in the space, there is a belief that the financial establishment will gain ground and possibly market share. While some crypto enthusiasts view this involvement with suspicion and fear a takeover by traditional finance, others see it as a necessary step for crypto to achieve mainstream acceptance and make its mark in the world. As institutions enter the crypto industry, the landscape is expected to change, and companies will need to adapt to new regulations and opportunities.
TUSD Depegs Amid Doubts On 100% Backing, New Crypto Drama Unfolding?
TrueUSD (TUSD), a stablecoin, has lost its peg to the US dollar, leading to concerns about its backing and corporate structure. The stablecoin, which gained support from Binance and became a significant trading pair for Bitcoin, has faced criticism for its lack of transparency. Questions have been raised about the reserve audits conducted by Prime Trust, the custodian of TUSD, and doubts have been cast on the stability of its USD reserves. The recent revelations about Prime Trust’s losses and alleged misuse of customer funds have added further uncertainty. Critics, including Adam Cochran, have highlighted red flags such as the limited number of chain oracle nodes and difficulties in redeeming TUSD. Concerns are growing, and calls have been made for Binance to pause TUSD as collateral on its platform. The TUSD/USDT price on Binance has fallen, and deposit and loan rates on Aave V2 have experienced significant fluctuations.
Crypto Firm Prime Trust Placed Into Receivership
Nevada’s Financial Institutions Division (FID) has taken control of crypto custodian Prime Trust and placed it into receivership. The regulator has halted Prime Trust’s operations and is seeking a receiver for the firm after allegations surfaced that the company lost access to crypto wallets and used clients’ fiat deposits to purchase new crypto for processing withdrawals. Currently, Prime Trust has only 3.5% of the cash owed to its clients and faces a $900,000 shortfall in crypto assets. This action follows BitGo’s withdrawal of its bid to acquire Prime Trust and a cease-and-desist order from the state. The receivership aims to protect clients’ interests through rehabilitation or liquidation.
Binance Australia got 12 hours’ notice before it was debanked, exec says
Binance Australia’s head, Ben Rose, revealed that the exchange received less than a day’s notice before being “cut off” from the local banking system in May. The move came as Binance Australia’s payments provider, Zepto, was instructed by Cuscal, its partner banking and payments provider, to stop supporting Binance. The sudden debanking had an impact on approximately 1 million customers in Australia. The reasons for the action were not entirely clear, but Rose emphasized the need for cooperation with regulators and the banking sector, suggesting the implementation of sensible licensing for the industry in order to avoid falling behind other jurisdictions.
The cryptoverse continues to evolve rapidly, with various developments and challenges shaping the industry. From the increasing involvement of traditional financial institutions to the regulatory hurdles faced by exchanges and custodians, it is clear that the community needs reliable partners to navigate this dynamic environment. That’s where AsicZ comes in. As a trusted source for volume mining equipment and an industry-leading provider of Mining as a Service (MaaS), AsicZ offers comprehensive solutions to help businesses thrive in the crypto space. Whether you’re looking to expand your mining capacity or require expert guidance on mining operations, AsicZ is committed to providing a smooth and easy experience. With their expertise and dedication to customer satisfaction, AsicZ is your one-stop source for everything ASIC from A to Z. Visit AsicZ.com today to learn more about how they can support your crypto endeavors.