Riding The Wave News Summary 156
Forget The Fed—China Is Gearing Up To ‘Rip In Trillions Of Dollars’ As The Price Of Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Tron, Polygon And Solana Swing, & more.
Welcome to Riding The Wave. If you have questions or feedback, please reply to this email. If you are new to the Newsletter, please check out what we provide on our about page and consider subscribing. Within the Newsletter, I provide News Summaries, Weekly Status Updates, & Deep Dive Articles on Specific Topics (Ex: How do I pick which coins/tokens to buy?). More details here
News
Table of Contents
Tweets
Tether’s Banking Relationships, Commercial Paper Exposure Detailed in Newly Released Legal Documents
BlackRock May Have Found Way to Get SEC Approval for Spot Bitcoin ETF
Tweets
https://twitter.com/WhaleChart/status/1670365131266572291
https://twitter.com/100trillionUSD/status/1670407948617543680
https://twitter.com/defiDimitri/status/1670150324538015744
https://twitter.com/BinanceUS/status/1670077275419869186
Forget The Fed—China Is Gearing Up To ‘Rip In Trillions Of Dollars’ As The Price Of Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Tron, Polygon And Solana Swing
Bitcoin, ethereum and other top ten cryptocurrencies—including BNB, XRP, cardano, dogecoin, tron, solana and polygon's matic—have swung wildly amid rumors of a secret U.S. "alliance to destroy crypto."
The bitcoin price has added over 50% so far this year—triggering a wave of bullish price predictions—but its rally has suddenly stalled, sparking a serious Coinbase warning.
Now, as the U.S. Federal Reserve signals more interest rate hikes are on the way (as well as a $1.1 trillion shock), expectations are climbing that an economic stimulus package out of China could "inflate everything"—including bitcoin, ethereum, BNB, XRP, cardano, dogecoin, tron, solana and polygon's matic.
"If China starts to basically turn on the money printer and go through a huge spate of quantitative easing, it's going to just inflate everything because they're just such a critical artery to the world economy."
This week, China's state council announced it's considering an economic package to support its waning post-pandemic recovery, designed to expand "effective demand," according to a statement released by state news agency Xinhua.
Tether’s Banking Relationships, Commercial Paper Exposure Detailed in Newly Released Legal Documents
Stablecoin issuer Tether kept its funds in four banks, two investment management firms, two gold depositories and a gold broker and on its own sister company Bitfinex in March 2021, documents obtained by CoinDesk show.
It also had funds in commercial paper and other securities issued by various entities, including the Qatar National Bank QPSC, Barclays Bank PLC, Deutsche Bank AG, Emirates NBD Bank PJSC and Natwest Group PLC. And a large percent of its issuers were various Chinese banks and financial institutions.
Tether’s past reliance on commercial paper is not news. The company, which issues and maintains the world’s largest stablecoin by market capitalization, acknowledged putting funds in commercial paper in 2021. But the extent to which the company relied on this type of asset was not previously known.
The Agricultural Bank of China Ltd, Bank of China Hong Kong, Bank of Communications Co Ltd, Industrial and Commercial Bank of China, China Merchants Bank, China Construction Bank, China Everbright Bank Co and more all issued commercial paper and securities that Tether used to back its token.
Tether (USDT) is the world’s largest stablecoin, holding a significant role as the counterparty asset for crypto trades on countless exchanges. It is designed to hold its value against the U.S. dollar, with Tether claiming it holds at least a dollar’s worth of assets in reserve for every single USDT token in circulation. The company has long been dogged by concerns that USDT has been less than fully backed, concerns the New York State Attorney General’s office seemingly vindicated in April 2019 when it announced that Tether had loaned some $850 million in reserves to Bitfinex, an exchange it shares corporate officers and parentage with. Bitfinex lost access to that amount of its own funds when its payment processor was seized by authorities.
In its FOIL request, CoinDesk requested documents detailing the USDT stablecoin’s backing after Tether published its first public document laying out what its reserves were composed of. At the time, nearly half was in unspecified commercial paper.
the stablecoin briefly lost its peg prior to 07:00 UTC (3:00 a.m. ET) on June 15, at least five hours before the NYAG FOIL officer shared the documents with CoinDesk’s attorneys.
“CoinDesk learned from our lawyers on June 12 that we would finally receive the documents after a long court dispute in which Tether tried to block their disclosure,” said Marc Hochstein, Executive Editor of CoinDesk. “We did not share the news of our win with anyone outside our editorial staff until after we received the documents on the morning of June 15 in New York, hours after USDT lost its peg. CoinDesk stands by the integrity of our reporting.”
BlackRock May Have Found Way to Get SEC Approval for Spot Bitcoin ETF
Keep reading with a 7-day free trial
Subscribe to Riding The Wave to keep reading this post and get 7 days of free access to the full post archives.