This Week in Web3: Bitcoin’s Big Halve, Stablecoin Surge, & Bankman-Fried Update!
As the bitcoin halving event draws near, stirring widespread anticipation in the cryptocurrency community, experts predict a potential surge in bitcoin’s value. This event, which occurs every four years, reduces the reward for bitcoin mining by half, aiming to create scarcity by limiting the number of bitcoins that can ever be mined to 21 million. However, amidst the excitement, Goldman Sachs has issued a cautionary note, suggesting that the current macroeconomic conditions might dampen the anticipated positive impacts on bitcoin’s value.
In the wake of Goldman Sachs’ warning, the crypto market exhibits signs of tension. Bitcoin’s value recently experienced a notable dip, falling to $59,900 for the first time since early March, although it slightly recovered, trading above $61,000 later in the day. This fluctuation comes just as the bitcoin community prepares for the halving, expected to occur around April 19th or 20th, according to sources.
Moreover, the cryptocurrency scene is abuzz not just with the halving event but also with several significant developments across the sector. For instance, Sam Bankman-Fried, the founder of FTX, is appealing his 25-year prison sentence, hoping for a reduced sentence. This development highlights the ongoing legal battles and regulatory scrutiny within the cryptocurrency industry.
Compliance remains a hot topic in the crypto world, as leading exchanges such as Binance, Coinbase, and Kraken work towards enhancing their compliance measures. Following settlements with U.S. regulators, these exchanges are focusing on improving their compliance controls, setting an example for the broader industry.
In regulatory news, the UK government is preparing to introduce legislation for stablecoins and crypto-related activities, aiming for a more regulated crypto environment. Similarly, in the U.S., Senators Kirsten Gillibrand and Cynthia Lummis have proposed a bill to govern stablecoin usage, emphasizing the need for issuers to maintain one-to-one reserves and banning algorithmic stablecoins without backing. Additionally, talks are underway in the U.S. Congress about combining regulations for marijuana banking and cryptocurrency into a single bill, reflecting the evolving regulatory landscape for alternative currencies and industries.
The Web3 marketplace continues to evolve, with noteworthy developments such as the launch of Kraken’s own crypto wallet and STEP and Adidas’s collaboration on a limited-edition NFT sneaker collection. Furthermore, as interest in the crypto market renews, companies like Crypto.com are expanding their workforce after a period of downsizing, indicating a potential resurgence in the crypto sector’s fortunes.
These developments underscore the dynamic and evolving nature of the cryptocurrency and Web3 landscapes, presenting both opportunities and challenges as the industry navigates regulatory, legal, and market uncertainties.
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