• The US Securities and Exchange Commission (SEC) recently filed charges against Justin Sun, CEO of TRON Foundation, and two BitTorrent-related companies.
• Huobi Global, a cryptocurrency exchange for which Sun is an advisor, experienced only minimal impact from the SEC charges.
• Justin Sun announced plans to invest tens of millions of dollars in Huobi to improve the exchange.
SEC Files Charges Against Justin Sun
The U.S. Securities and Exchange Commission (SEC) recently filed charges against Justin Sun and three companies he is linked with; TRON Foundation; which he served as founder and CEO until 2021, as well as two BitTorrent related firms which he briefly served as CEO after TRON acquired the project in 2018.
Huobi Global Experiencing Minimal Impact
Justin Sun commented on his Chinese-language Twitter account that Huobi „feels that [the issue] has come to an end.“ He stated that the exchange only saw a net withdrawal of $30 million in one day following the SEC charges, compared to a net deposit average of $20 million per day prior to this. Additionally, there was a wave of coin withdrawals but still experienced a net deposit of $7 million throughout this time period.
Reinforcing Huobi’s Position
Sun has announced plans to reinforce Huobi with a “to-do list” that includes depositing tens of millions of dollars into the exchange, launching new tokens and introducing other improvements. The value for Huobi Token (HT) has decreased by 10% within the past week and currently experiences moderate trading volume at $840 million per day.
Overall it appears that despite recent legal issues affecting Justin Sun’s other projects, his current role as advisor at Huobi Global has been minimally affected. With efforts now being put in place such as investing large amounts into the platform coupled with token launches and additional improvements, this could help further strengthen their position within the industry going forward.
• Silicon Valley Bank parent firm, SVB Financial Group, has filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code.
• The filing will allow them to explore strategic alternatives as determined by a board-appointed restructuring team.
• Customers will receive funds elsewhere through Federal Deposit Insurance Corporation (FDIC) and Biden administration and US Treasury emergency plan.
SVB Financial Group Files For Bankruptcy Protection
SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection according to a press release from the company on March 17. The filing was submitted in the Southern District of New York and aims to preserve company value. The legal process will allow it to explore strategic alternatives as determined by a board-appointed restructuring team made up of five members. Any sale that is arranged must be approved in court before being executed.
Liquidity and Debt Details
The company believes it has $2.2 billion of liquidity, $3.3 billion of debt in aggregate principal amount of unsecured notes, and $3.7 billion of outstanding preferred equity. Joele Frank, a shareholder activism claims firm is involved in the case to assist with reorganization proceedings.
Impact on Other Services
Though Silicon Valley Bank has failed, SVB’s other services — SVB Capital and SVB Securities — will continue to provide services while they are no longer associated with Silicon Valley Bank following its collapse on March 10th due to US regulators control over customer assets leading to an overnight bank run amid plans for over $2 billion cash withdrawal announcement..
Where Will Customers Receive Funds?
Customers will regain access to their funds elsewhere outside of Silicon Valley Bank’s direct operations through the Federal Deposit Insurance Corporation (FDIC) which provides customers with their insured funds portion as well as through Biden administration and U.S Treasury emergency plan announced shortly after failure took place .
Though bankruptcy protection may potentially help lead to recovery for SVB Financial Group, customers can rest assured that they have ways that they can receive their funds back from this incident either through FDIC or Biden administration/U.S Treasury emergency plan .
• The cryptocurrency market cap saw net outflows of $77.63 billion over the last 24 hours and currently stands at $917.63 billion, down 7.8% from $995.26 billion.
• Bitcoin and Ethereum’s market cap fell 8.9% and 10% to $381.71 billion and $169.6 billion, respectively, while Cardano fared best with a 4.6% loss in the market carnage.
• Tether (USDT) and USD Coin (USDC) increased to $71.76 billion and $43.51 billion while Binance USD (BUSD) stayed flat at $8.4 billion during this period of time .
Crypto Market Massacre
The cryptocurrency market cap saw net outflows of about 78 billion dollars over the last 24 hours, dropping from 995 to 917 billions dollars – a 7,8 percent decrease in value overall compared to the previous day’s value of 995 billions dollars..
Bitcoin & Ethereum Price Changes
The market capitalization of Bitcoin dropped 8,9 percent to 381 billions dollars while Ethereum’s market cap decreased by 10 percent to 169 billions dollars as well during this time period..
Cardano recorded losses as well but it was the least impacted among top 10 crypto assets with only 4,6 percent decrease in its value during the same period of time..
Tether & USD Coin Increase
Tether increased in market capitalization reaching 71 billions dollars whereas USD Coin rose up to 43 billions dollars during this same period.. Binance USD on the other hand remained relatively stable at 8,4 billions dollars on this reporting period..
Biggest Gainers & Losers
GensoKishi MetaverseMV emerged as the biggest gainer with an 8,7 percent increase followed by aelf which jumped 6,3 percent over these last 24 hours.. HashflowHFT also had a 2,8 percent increase as Radio CacaRACA went up 1,7 percent during this same time frame..
On the other hand Dogecoin recorded 11percent loss being one of the biggest losers alongside Solana which had 11,9percent decrease in its price during these last 24 hours according to CryptoSlate reportings..
• Ethereum Shanghai upgrade is on the horizon with 17.4M ETH staked by the community
• The current realized price for Ethereum is $1,380, while the ETH 2.0 deposits realized price is roughly $2,153
• Roughly $8.5 billion of unrealized losses, while most staked ETH is currently at a loss
Ethereum Shanghai Upgrade
The Ethereum network is gearing up for its upcoming upgrade later this month – Ethereum Shanghai. As part of this upgrade, stakers can withdraw their tokens from Ethereum POS smart contracts.
The total staked amount in ETH is roughly 17.4 million; this has grown by 4 million since the merge in September 2022. The current realized price for Ethereum is $1,380, while the ETH 2.0 deposits realized price is roughly $2,153. This implies that roughly 8.5 billion USD worth of unrealized losses exist when accounting for the difference between spot and deposit prices multiplied by total ETH value staked.
The Realized Price captures the average price at which the entire ETH supply last moved on-chain and likewise captures the average deposit price for all staked ETH . This provides valuable insights into how much value has been added or removed from Ethereum over time due to changes in market conditions or user behaviour such as staking activities.
Most of these deposits are currently at a loss given that they were made at higher prices than what they are now worth on-chain which results in an aggregate unrealized loss of 8.5 billion USD across all users who have deposited into PoS contracts so far .
Finally, it’s important to note that this large increase in Ethereum deposits suggests a strong sentiment towards investing long term into Ethereum despite recent volatility and bearish markets overall; indicating confidence behind upcoming projects like Eth 2 and possibly signaling a short term bullish trend ahead for Etheruem’s future prospects .