Crypto Flipsider News – Market Recovery; Binance $500m Mining Fund; MakerDAO Revenue Loss; Tether Zero Paper Holdings; Sun Is a Huobi Whale

Read in the Digest:

• (BTC) & crypto market recovers – Name Service (ENS) up 20% in 24H.

• Binance Pool (NASDAQ:) launches $500 million fund to support Bitcoin (BTC) mining.

• MakerDAO experiences first net income loss since 2020 as revenue falls 86%.

• , the issuer of the USDT stablecoin, cuts commercial paper holdings to zero.

• Tron founder Justin Sun says he owns tens of millions of Huobi Tokens (HT).

Bitcoin (BTC) & Crypto Market Recovers – Ethereum Name Service (ENS) up 21% in 24H

Following Thursday’s announcement of September’s CPI data, Bitcoin, along with the broader crypto market, plummeted sharply, before quickly rallying. The plunge saw the price of BTC slump to a new low at $18,300.

Following the brief dip, Bitcoin embarked on a rally which has seen the world’s largest crypto gain 5.2% in value over the last 24 hours. Bitcoin now trades at $19,650 at the time of writing, after setting a new 7-day high at $19,835.

The 24 hour price chart for Bitcoin (BTC). Source: CoinMarketCap

With the broader crypto market undergoing an uptrend, the Ethereum Naming Service (ENS) has emerged as today’s biggest gainer. Over the last 24 hours, the price of ENS has spiked 21% to set a new 90-day high at $20.21.

The 24 hour price chart for Ethereum Naming Service (ENS). Source: CoinMarketCap

The rally, which cuts across the entire crypto market, has seen the global crypto market cap rise by 4.49% in the last 24 hours to hit $937.56 billion.

Flipsider:

• 127,925 traders, who had bet against the price increase of Bitcoin and other Altcoins suffered liquidations of more than $361 million in the last 24 hours.

Why You Should Care

The rally serves as relief to investors, and has seen the slight return of bullish sentiment to the crypto markets.

Binance Pool Launches $500 Million Fund to Support Bitcoin (BTC) Mining

On October 14th, Binance pool, the mining service of cryptocurrency exchange Binance announced the launch of a $500 million fund to assist Bitcoin miners in keeping the crypto mining ecosystem healthy.

The fund will provide loans to private and publicly-listed BTC miners. Operators interested in getting a loan from Binance Pool will first be required to pledge collateral in the form of physical or digital assets.

Eligible miners will be able to collect for a period of 18 to 24 months at interest rates varying between 5% and 10%. Binance also noted that it is looking to work alonside cloud mining vendors, as the cloud mining hash power will be directly purchased from BTC mining and digital infrastructure providers.

Flipsider:

• Binance Pool recently launched a mining pool for the forked, Proof of Work version of Ethereum, ETHW.

Why You Should Care

The Binance Pool fund seeks to ensure that the crypto mining ecosystem remains healthy throughout the elongated crypto winter.

MakerDAO Experiences First Net Income Loss Since 2020 as Revenue Falls 86%

MakerDAO, the governing body of the Maker Protocol, has witnessed its first net income loss in two years as revenues fell by as much as 86% in the third quarter of 2022, amidst the woes of Ether and Wrapped BTC.

According to data from Messari research, MakerDAO’s earnings fell from $30 million in Q2, to a mere $4 million in Q3 as the protocol suffered a huge drop in demand for loans, and few liquidations.

Data shows that the use of two of the organization’s best performers, wrapped Bitcoin (wBTC) and Ether (ETH), fell by 66% and 74%, respectively. The assets are typically used by borrowers as collateral for loans in Maker’s DAI stablecoin.

MakerDAO also suffered a decline in its collateral ratio. According to the reports, MakerDAO’s collateral ratio is now at 1.1, down from 1.9 recorded at this time in 2021.

Flipsider:

• Despite the drop in crypto loans, demand for RWA (real-world asset) backed loans has risen, and now accounts for 12% of MakerDAO’s revenue.

Why You Should Care

MakerDAO has taken steps to increase the return on assets it holds as collateral, having commenced a proposal to invest $500 million in treasuries and bonds.

Tether, Issuer of the USDT Stablecoin, Cuts Commercial Paper Holdings to Zero

Tether, the issuer of the world’s largest stablecoin, USDT, announced that it has fulfilled its promise to cut its commercial paper holdings to zero, and replace them with U.S. Treasury bills.

Tether disclosed that it no longer holds commercial papers, which are unsecured, short-term debt issued by corporations. To achieve this feat, Tether eliminated more than $30 billion dollars of commercial paper without suffering any losses.

Tether also revealed that it increased its direct exposure to U.S. Treasuries by more than $10 billion during the last quarter. Tether-issued USDT is the world’s largest stablecoin with a market cap of $68.43 billion.

According to Tether, the move is part of the company’s “ongoing efforts to increase transparency” and to ensure protection for investors by backing the stablecoin with “the most secure reserves in the market.”

Flipsider:

• Although Tether says it will continue to support investigative proceedings by authorities, it wishes to advocate for greater financial freedom and inclusion.

Why You Should Care

Tether stated that the move represents its efforts to ensure greater transparency and trust, not only for USDT, but for the entire stablecoin industry.

Tron Founder Justin Sun Says He Owns Tens of Millions of Huobi Tokens (HT)

Chinese entrepreneur and Founder of TRON Foundation Justin Sun has revealed that he holds “tens of millions” of Huobi Tokens (HT). Sun remarked that he sees himself “as one of the biggest holders” of HT in the world.

In a recent interview, Sun, who recently assumed a new role as a Global Advisor at Huobi, disclosed that he has been accumulating HT tokens since 2013, and claimed that his initial investment should be up by more than 400% at its current point.

Justin Sun further laid out his intentions to help expand Huobi’s presence in China. However, Huobi expansion into the region would be dependent on domestic watchdogs changing their hostile crypto stance in the future.

Shortly after the interview, on-chain data tracker Wu Blockchain reported that two of the crypto exchange’s official wallets had transferred as much as 74 million HT tokens (worth approximately $57.72 million USD) to wallets linked with the Tron Founder.

74 million HT of Huobi’s two official wallets have been transferred to two new addresses on October 13, and the first transactions were from Justin Sun’s poloniex. The HT officially held by Huobi may be part of the acquisition of Huobi Exchange and has been handed over to Sun. https://t.co/O3SexjA8io

— Wu Blockchain (@WuBlockchain) October 14, 2022

Flipsider:

• Despite his involvement with the exchange, Sun has denied all claims that he is behind the acquisition of Huobi, clarifying that he only acts in an advisory capacity.

Why You Should Care

Sun hopes that his position at Huobi will enable him to further boost the development of the exchange’s ecosystem and native token.

See original on DailyCoin