COIN BUREAU NEWSFLASH! – (29/08/22) Here are some of today’s m | Coin Bureau Insider
COIN BUREAU NEWSFLASH! – (29/08/22)
Here are some of today’s most important headlines:
WSJ Report States 0.3% Fall in Asset Value Could Render Tether ‘Technically Insolvent’
According to a report published Saturday in Wall Street Journal, a 0.3% drop in the value of stablecoin issuer Tether’s reserve assets could “render Tether technically insolvent.”
The report, which is authored by Jean Eaglesham and Vicky Ge Huang, takes a dive into the state of Tether’s reserves and its long-awaited ‘audit’. The report stresses the importance of an audit by highlighting the murky nature of Tether’s reporting.
The report takes Tether’s reserve asset data on Aug. 25 (according to its website) to show that a thin cushion of equity could spark fears and lead to a bank run. The Aug 25 data shows that Tether’s $67.7 billion of reported assets outweighed its $67.5 billion of liabilities by just $191 million, which means that a 0.3% fall in assets could have rendered Tether technically insolvent.
https://www.wsj.com/articles/tether-says-audit-is-still-months-away-as-crypto-market-falters-11661568971
Ava Labs CEO Denies CryptoLeaks' Claims As 'Conspiracy Theory Nonsense'
The CEO of Ava Labs, Emin Gün Sirer, has denied the claims presented in a recent report published by crypto whistleblowing website CryptoLeaks.
The August 26 report published by CryptoLeaks accused Sirer of striking a deal with U.S. Attorney Kyle Roche of Roche Freedman LLP to sue Avalanche’s competitors and divert the attention of regulators away from the project. The report claims Roche was promised AVAX tokens and equity for doing so. The report showcased a few candid videos that outlined a few conversations to support the claim.
In response, Sirer tweeted,
“How could anyone believe something so ridiculous as the conspiracy theory nonsense on Cryptoleaks? We would never engage in the unlawful, unethical and just plain wrong behaviour claimed in these self-serving videos and inflammatory articles. Our tech & team speak for themselves.”
https://cointelegraph.com/news/ava-labs-ceo-denies-cryptoleaks-claims-as-conspiracy-theory-nonsense
MakerDAO Co-Founder Recommends DAI-USD Depegging To Limit Attack Surface
In a recent post published on the MakerDAO forum, MakerDAO co-founder Rune Christensen outlined the need to depeg the DAI stablecoin in order to prepare and protect the protocol and its users from unexpected regulatory crackdown.
The blog post comes as a result of the recent sanctions against Tornado Cash and the freezing of USDC stablecoins by Circle. Christensen stated,
“Physical crackdown against crypto can occur with no advance notice and with no possibility of recovery even for legitimate, innocent users. This violates two core assumptions that we used to understand RWA risk, making the authoritarian threat a lot more serious.”
“The only choice is then to limit attack surface by reducing RWA exposure to a maximum fixed percentage of the total collateral - this requires free floating away from USD.”
https://cointelegraph.com/news/makerdao-co-founder-recommends-dai-usd-depegging-to-limit-attack-surface
Singapore's Central Bank Plans to Restrict Retail Speculation in Crypto
The Monetary Authority of Singapore’s (MAS) managing director Ravi Menon stated that the MAS is considering restricting retail investors’ access to leverage and credit facilities in trading crypto.
The potential move is a part of the country’s efforts to foster the digital asset economy while eliminating excessive speculation on the assets. Menon noted that banning crypto access to retail investors is impossible due to the borderless nature of the asset and industry.
As a part of the efforts to foster Singapore’s digital asset economy, he highlighted MAS’s focus on actively promoting the digital asset ecosystem that encompasses the tokenisation of financial assets like cash and bonds, real assets like artwork and property, and intangible items like carbon credits and computing resources.
