Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
The VeChain (VET) Foundation’s Q1 2022 financial report shows it has $1.2 billion in its treasury but spent only around $4.1 million during the quarter. Of this expenditure, the highest was $1.8 million on ecosystem business development, followed by $1.1 million on ecosystem operations. The foundation started the year with $1.37 billion in assets comprising stablecoins, BTC, ETH and VET; according to the report, most of the losses were incurred “due to crypto market fluctuations and other VeChain Foundation outgoings”. Currently, VET has a market cap of $2.6 billion and has fallen by 12.78% in the last 24 hours.
Coinbase founder and CEO Brian Armstrong has said spoken about the new language in its latest 10-Q filing and assured users that the exchange is not facing bankruptcy. The filing states that as custodially held crypto assets can be considered “the property of a bankruptcy estate”, bankruptcy will result in such assets being “subject to bankruptcy proceedings”. Armstrong said it had “included a new risk factor based on an SEC requirement called SAB 121, which is a newly required disclosure for public companies that hold crypto assets for third parties”.
In delivering the Queen’s Speech, Prince Charles outlined the UK government’s plans to support safe crypto adoption and create “powers to more quickly and easily seize and recover crypto assets”. He added that the Financial Services and Markets Bill would be introduced to “maintain and enhance the UK’s position as a global leader in financial services”. He also highlighted the Economic Crime and Corporate Transparency Bill, which would “crack down on the kleptocrats, criminals and terrorists who abuse” the UK’s open economy, and ensure the government would “drive out dirty money from the UK”.
Several US-based NGOs (including Greenpeace and Friends of the Earth) have urged the Biden administration and US state governments to introduce regulations to limit the environmental, social and financial impact of BTC mining. In a letter to the White House, the NGOs implored the US Environmental Protection Agency (EPA) to review PoW mining operations, the Office of Management and Budget to create a PoW miner registry to improve transparency, and the Department of Energy to prevent “low-cost public power allocations” from being “siphoned” to PoW mining “at the expense of local rate-payers”.
Meduza, a Latvia-based Russian-language independent news site, has raised over $250,000 in crypto donations through 146,000 individual transactions to help it continue reporting independent news. Since Apr 2021, Meduza has been among numerous independent media outlets labeled by Russia’s Justice Ministry as “foreign agents”, causing it to lose almost all its advertisers. The site then began requesting donations in USD, Euros and crypto (including BTC, ETH, BNB, USDY, XMR and ZEC) in Mar 2022; approximately 93% of the donations it has received came in the form of 3.75 BTC (worth $116,954) and 49,9 ETH (worth $117,767).
Leading diamond miner De Beers has announced the deployment at scale of Tracr, its blockchain-based diamond source platform, to “enable the provision of provenance information from source to sight-holder to store on a secure blockchain”. Tracr will allow sight-holders to “provide an immutable record of a diamond’s provenance” and give jewelry retailers “confidence in the origin of the diamonds they purchase”. This comes as diamond producers have come under growing pressure to ensure formal markets do not deal in illicitly acquired diamonds, with De Beers saying it needed to make a “technological step-change to meet” these expectations.
Show me the money
Over the past 24 hours, BTC fell 3.06% to $30,872.84, while ETH fell 1.99% to $2,344.99. Other major altcoins witnessed greater percentage losses: ADA was down 9.67%, SOL 10.37% and AVAX 22.32%. Terra in particular fared badly: its native LUNA token was down a shocking 83.57%, while its stablecoin UST saw a 55.82% decline. Meme tokens SHIB and DOGE experienced losses as well, albeit less severely, with a respective decrease of 9.71% and 9.35% within the same period.