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Ripple CTO Exposes FDIC Insurance Gaps, Cites Coinbase

Published

3 months ago

July 16, 2024

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Ripple’s Chief Technology Officer David Schwartz has been deeply involved in the online debate surrounding the Federal Deposit Insurance Corporation (FDIC). While he did not attack Coinbase, he did not defend it either.

The safety of crypto holdings in centralized exchanges remains a concern after the collapse of FTX in 2022. The incident opened investors’ eyes to the risks of storing crypto on exchanges versus cold storage.

Coinbase and FDIC Insurance: Ripple CTO’s Critical Analysis

The Ripple CTO detailed some dangers of storing crypto on centralized exchanges. A commercial litigator noted that depositing money into an exchange renders the depositor an unsecured creditor to the exchange. They have “little to no rights if the exchange goes bankrupt” and are the last in line for compensation.

Coinbase came into the discussion as participants probed the implication of FDIC insurance on exchanges. According to Schwartz, the FDIC insurance would only protect the customer if the exchange’s partner bank fails, not the exchange itself. If Coinbase fails and the bank does not have sufficient funds to cover everyone, you may lose out.

“If Coinbase fails and there’s not enough money in the bank, you still lose. This recently happened with Synapse,” Schwarz explained.

Schwartz asserted that he has no reason to think storing crypto on Coinbase is unsafe. Nevertheless, the Ripple executive acknowledged risks associated with centralized exchanges storage, noting, “If they screw up enough, your funds will be lost.”

When the question of Coinbase using FDIC-insured banks to hold users’ deposits separately came up, Schwartz agreed that it was potent. However, he stressed that the exchange would need to have records to determine who the funds belong to.

It, therefore, suggests that while platforms such as Coinbase, among other reputable exchanges, offer convenience, risks are still involved.

FDIC Could Bring New Hope for Bank-Crypto Interactions

Nevertheless, this situation may soon change. The recent nomination of Christy Goldsmith Romero as the new FDIC chair sparked speculation that she could allow banks to independently decide on serving digital asset companies. This follows her response to Senator Cynthia Lummis’ question about traditional financial institutions serving cryptocurrency-related companies.

“I don’t think it’s the FDIC’s role to tell banks what industries or companies they should be providing services to,” Romero stated.

If TradFi can independently decide whether to serve crypto industry players, it could deliver better interactions between banks and digital asset service providers. Coinbase Chief Policy Officer Faryar Shirzad echoed Romero’s statement, citing Operation Chokepoint 2.0’s impact on the crypto sector.

“The bank regulators right now claim – as the nominee suggests here – that there is no targeted debanking of the sector, and that banks are currently free to bank crypto companies subject to normal internal risk management reviews,” Shirzad stated.

Nevertheless, it would also mean a paradigm shift. This is considering a recent decision between the FDIC, the Federal Reserve, and the Office of the Comptroller of Currency. Dissecting the risks of crypto-assets to banking organizations, the three agreed business models focusing on crypto activities are a concern to the banking sector.

This stance has caused strife between banks and the crypto industry. In turn, Coinbase filed a lawsuit against the FDIC and the US Securities and Exchange Commission (SEC).

These developments highlight the industry’s frustrations as traders, investors, and institutions walk the thin line separating traditional finance and crypto.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:Cites Coinbase CTO Exposes FDIC Gaps Insurance Ripple

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WIF Bulls In Control As RSI Signals Strong Upside Potential

Published

48 mins ago

October 1, 2024

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WIF is showing impressive strength as bullish momentum takes control, with the Relative Strength Index (RSI) pointing to even greater upside potential. The current RSI reading suggests that buying pressure remains strong, fueling optimism for continued gains. While bulls hold their ground, they are increasingly confident that WIF could be poised for a significant breakout toward the $2.8 mark.

As market sentiment shifts favorably, this article aims to explore the bullish dominance in WIF, with a focus on how the RSI signals promising upside potential. By analyzing key technical indicators and market trends, the objective is to assess whether WIF can maintain its upward momentum and successfully break through upcoming resistance levels.

Bullish Sentiment Strengthens: Will WIF Break $2.6?

On the 4-hour chart, WIF has displayed robust bullish momentum after successfully breaking above the $2.2 mark. This upward surge has pushed the price closer to the $2.8 resistance level, setting the stage for a potential breakout.

As the bulls continue to assert control, this resistance level becomes a critical hurdle. A decisive move above $2.8 could open the door for further gains, attracting more buying interest and potentially leading to new highs.

An analysis of the 4-hour Relative Strength Index (RSI) indicates a renewed potential for upward movement, with the RSI climbing back to the 68% level after previously dipping to 62%. If the RSI continues to rise, WIF may push higher, possibly breaking through key resistance levels.

Furthermore, WIF has decisively surpassed the 100-day Simple Moving Average (SMA) and the $2.2 level on the daily chart, marking a notable shift in its price momentum. By holding above these key levels, the asset demonstrates its strength and reinforces a bullish outlook. This optimistic trajectory is not simply a temporary fluctuation. Rather, it reflects robust buying interest and heightened market confidence, suggesting that WIF is ready for additional gains soon.

The Relative Strength Index (RSI) on the daily chart is currently at 79%, showing no signs of declining in the near term. An elevated RSI level implies that WIF is in overbought territory, signifying strong buying pressure and heightened market enthusiasm. Although high readings can point to potential exhaustion in upward movement, the absence of immediate signals for a pullback suggests that bullish sentiment is still prevalent.

What To Expect In The Short-Term For The Meme Coin

Presently, WIF is demonstrating strong positive motion, prompting traders and investors to monitor key levels for potential price movements. Maintaining its position above the 100-day Simple Moving Average (SMA) and the $2.2 mark could lead to more gains, with the $2.6 resistance level on the horizon. A successful breakout above $2.6 may unlock additional price growth and enhance traders’ optimism, signaling a more sustained upward trend.

However, with the Relative Strength Index indicating overbought conditions at 79%, a price correction could occur if buying pressure wanes, causing WIF’s price to start dropping toward the $2.2 mark for a retest.

WIF

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Market

Will Sui Price Reclaim Its All-Time High?

Published

2 hours ago

October 1, 2024

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Layer-1 (L1) blockchain Sui has achieved a series of milestones over the past month. This positions its native coin, SUI, to potentially reclaim its all-time high of $2.16 in October.

The bullish sentiment surrounding the altcoin makes this even more likely. As market participants anticipate a broader market rally in October, SUI holders may pocket some gains.

Sui Network Records Growth

The surge in SUI’s Total Value Locked (TVL) is one of its most important milestones over the past month. At $1.07 billion, the L1’s DeFi TVL sits at its highest level, noting a 65% uptick in the past 30 days.

This TVL rally is a net positive for the SUI coin because the surge suggests growing confidence in Sui’s utility. As more value flows into the network, it can create upward pressure on the coin’s price. Investors often view rising TVL as a bullish signal, attracting more buyers and potentially leading to SUI price appreciation.

sui tvl — Sui Total Value Locked. Source: DefiLlama

Moreover, Sui’s TVL is anticipated to increase in October, following the mainnet launch of its Sui Bridge. The Sui Foundation announced the bridge’s launch yesterday, enabling secure asset transfers between the Ethereum and Sui networks. This development is expected to attract a new wave of users and boost liquidity on the network, which could, in turn, drive up the price of SUI.

The steady rise in Sui’s daily active addresses supports the bullish thesis for its native coin. Artemis’ data shows that the number of unique addresses that have completed at least one transaction on the Sui network in the past month has skyrocketed by 140%. As such, SUI may experience a heightened demand, driving its price to reclaim its all-time high.

Sui Daily Active Addresses. Source: Artemis

Sui Price Prediction: All-Time High Is the Next Target

SUI’s rising open interest further supports a bullish outlook. At $750 million, it has reached its highest level since January.

Open interest measures the total number of outstanding derivative contracts that have not yet been settled. A rise in open interest typically signals new capital entering the market and increased buying activity, indicating a bullish trend.

If this buying momentum continues, SUI may reclaim its all-time high of $2.18. Fibonacci Retracement readings suggest this target is attainable, as SUI has broken through key resistance levels on its way to that price.

sui price prediction — Sui Price Analysis. Source: TradingView

However, if selling pressure increases, SUI’s price could fall toward $1.11, attempting to establish it as a support floor. Failure to hold this line could result in a further decline to $0.86.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Justin Sun Moves $21.8 Million In EIGEN Amid Token Unlock Buzz

Published

3 hours ago

October 1, 2024

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Justin Sun claimed all his EIGEN tokens from the EigenLayer liquid restaking protocol on Tuesday via five different addresses and moved them to the HTX digital currency trading platform.

EIGEN is the native token for the EigenLayer ecosystem, a leading restaking protocol on the Ethereum blockchain. This development comes amid hype over the EIGEN token listing on multiple tier-one exchanges.

Justin Sun Transfers $21.5 Million in EIGEN Tokens to HTX

Spotonchain reported the transaction, indicating that the Tron executive deposited all 5.24 million EIGEN tokens to HTX during the early hours of the Asian session. The transaction happened shortly after EIGEN debuted on major exchanges, including Binance. WuBlockchain corroborated the report.

“Justin Sun’s team has transferred 5.37 million EIGEN to Huobi HTX through five addresses, worth about $21.8 million. Based on the current price of 4.06 USDT, the EIGEN FDV is about $6.8 billion,” Wu Blockchain reported.

Crypto researcher Ai on X speculated on whether Justin Sun “is ready to ship EIGEN,” noting that it is currently unclear whether the receiving address belongs to the exchange. Nevertheless, the expert highlighted that the controversial crypto executive could make a profit of around $22.19 million if he cashed in at the current price of $4.13.

Read more: What Is Liquid Staking in Crypto?

Justin Sun Unstakes EIGEN. Source: X/Twitter

Sun reportedly received the largest airdrop of EigenLayer’s EIGEN tokens, amassing over $38.74 million in airdrops through the Ethereum Restaking track. This positions him to become the biggest beneficiary in the latest round of liquid restaking tokens (LRT), as per Ai’s report, which noted pending airdrop settlements from protocols like Puffer, Zircult, Swell, and Kelp.

Interestingly, when high-profile figures transfer significant token amounts to exchanges, it is often seen as a sign of intent to sell. While Justin Sun hints at selling his EIGEN tokens, two whales are accumulating, purchasing 702,324 EIGEN tokens valued at $2.86 million on Tuesday morning.

Specifically, one spent 588 ETH or $1.55 million to buy 383,672 EIGEN at an average price of $4.05. The other spent 1.31 million USDC to buy 318,651 EIGEN at $4.1 per token. These purchases come in time for the EIGEN token unlock.

Eigen Foundation Announces Token Unlock

The Eigen Foundation, which drives the growth of the EigenLayer ecosystem, has announced the unlocking of the EIGEN token for Season 2. This follows the opening of stake drop claims in mid-September, with the claim window running from October 1, 2024, to March 16, 2025, on the Eigen Foundation’s website.

Justin Sun’s involvement with EigenLayer isn’t new; his participation in the Season 1 airdrop in May sparked controversy. With this latest token unlock, users can freely transfer, trade, or stake their EIGEN tokens, fully engaging in the token’s utility.

EigenLayer also introduces a unique shared security system, where staked ETH serves as security for protocols beyond Ethereum. The EIGEN token plays a role in securing Actively Validated Services (AVSs), further enhancing its utility.

EIGEN Price Performance, Source: BeInCrypto

This development positions EigenLayer as a “verifiable cloud for crypto,” opening opportunities for sidechains, Oracle networks, bridges, and more. According to BeInCrypto, the EIGEN token is currently trading at $4.15, reflecting a 3.47% increase since Tuesday’s session opened.

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