“Genesis’ lawyers – from the New York-based law firm Cleary Gottleib – told bankruptcy court Judge Sean H. Lane at a hearing on Monday they expect to reach an agreement with the creditors by the end of the week. Another lawyer for Genesis, Jane VanLare, told the court that one thing the crypto lender is considering is a sale of itself to generate funds to pay back creditors.
We have a timeline and an approach to get through this case as quickly as possible. We really want to avoid getting involved in a prolonged case with litigation that effectively destroys value that would otherwise be available for the creditors.
According to a declaration filed by Genesis interim CEO Derar Islim, the company has more than $5 billion in liabilities – a sum considerably larger than its assets which, according to a presentation to the court on Monday, include approximately $150 million in unencumbered cash, $500 million in digital assets, $385 million in brokerage accounts and $505 million in outstanding loans to third parties. Also among the assets are large sums owed by its parent company, Digital Currency Group (DCG) – a $575 million loan maturing in May and a $1.1 billion promissory note due in 2032.
The next hearing will be held in mid-February.”
“Crypto-focused venture capital firm Pantera Capital, which has about $3.8 billion in assets under management, has summed up its 2023 forecast, and the future is decentralized finance (DeFi).
Looking forward, I think it seems fairly evident that the historical arc of the world’s financial rails will end up as blockchain-based systems using smart contracts. The real questions are how we get there and what needs to happen to get there.
He noted that scalability systems have brought transaction fees on the Ethereum blockchain to under 10 cents. He expects that future upgrades to Ethereum and protocol extensions for layer 2 scalability systems will further push transaction fees down to around 1 cent, which would help decentralized exchanges compete with the larger centralized exchanges.
Krug sees the “end state” of crypto as a world where the ‘average person will have apps on their phone that give them access to DeFi, where they’ll be able to engage in financial transactions without banks/brokers, with lower fees, global liquidity and markets operating 24/7.’
Achieving this end state requires solutions to a number of current problems that break down into two categories: increasing liquidity in DeFi and making DeFi easier to use, particularly for those new to crypto. Regarding liquidity, Krug said it’s important to get more institutional capital into DeFi in the form of more federal- or state-regulated custodians that directly support using Ethereum.”
“Stealth addresses are generated by wallets and muddle public key addresses in order to transact in a private way. To access these private transactions, one must use a special key called the “spending key.” Stealth addresses would provide a mechanism to also add privacy protections to non-fungible tokens (NFT) and Ethereum Name Service (ENS) domain names [in addition to ETH and ERC20s].
Wahrstätter emphasized the need for the stealth address system for the expansion of everyday crypto use: ‘In particular, think of donations or simply payroll checks.’
Stealth addresses have great potential to be used in every transaction in which the interaction between two parties should not be revealed to the public. For example, when I buy a coffee at the supermarket, I might not want the supermarket to know my employer, how much I earn and what I spend it on.
Stealth addresses are yet another, quite straightforward tool to increase the overall privacy in the network.”
“On Jan. 22, the two South American countries announced they are preparing to create a common currency that would run parallel with the Argentine peso and Brazilian real. The move could potentially create the second-largest currency bloc. As the news broke, Armstrong took to Twitter to suggest that BTC would be the “right long-term bet” and wondered whether the two countries would consider it.
Global Macro Investor founder and CEO Raoul Pal opposed the idea. According to Pal, having a national currency that “declines 65% in the down part of the business cycle and rises 10x in the up cycle” is not ideal. The executive pointed out that businesses would have difficulties planning and hedging in this situation.
Several community members supported Pal’s sentiment. According to one Twitter user, the only use case for BTC is a store of value, like gold.
On Dec. 16, a province in Argentina approved legislation to issue a stablecoin pegged to the United States dollar. The token will be available to people over 18 and will be 100% collateralized by the province’s assets.”
“Red Date Technology, the blockchain infrastructure firm that is also leading one of China’s blockchain efforts, launched the Universal Digital Payment Network (UDPN) on Jan. 19 during the World Economic Forum (WEF) 2023 meeting in Davos, Switzerland.
According to its white paper, the UDPN is a distributed ledger technology (DLT) platform that would serve a similar purpose to what the SWIFT network does for banks, except for stablecoins and CBDCs. A Jan. 19 press release states, a “number of global tier 1 banks” are already involved in use case proof of concepts (POCs) to test the network in cross-border transfers and swaps.
No unregulated public-chain crypto-currencies, such as Bitcoin, will be accepted.
Before launching this digital payments system, the company was known for its work on Blockchain-based Service Network (BSN), China’s national blockchain project. In June, Red Date’s CEO, Yifan He, called cryptocurrencies the ‘biggest Ponzi scheme in human history.'”
“The acquisition will help Doodles to tap into new types of content, which Doodles founder Jordan Castro tweeted will include ‘storytelling without constraints & AI (artificial-intelligence) animation generation R&D.’ The deal will also bring Golden Wolf’s business into markets beyond animation, such as fashion and music.
This marks a brand new chapter for Doodles as we continue to expand the franchise. Narrative storytelling, world building and character development will be at the center of everything we do.”