Category: Crypto News

Arbitrum is set to have another massive token unlock next month.

Arbitrum (ARB) whales have made a massive move, transferring $58 million worth of ARB tokens shortly after a significant unlock event on March 16. The transaction has caused widespread panic among investors and traders, highlighting the volatility of the digital asset space.

Arbitrum Token Unlock

On March 18, blockchain analysis firm Lookonchain reported at least 11 whales who had deposited their tokens to several crypto exchanges after the unlock. At the time of writing, the whales have collectively deposited 34 million ARB worth approximately $58 million. 

During the massive token unlock event, Arbitrum unlocked a staggering 1.1 billion ARB tokens, with a total value estimated at $2.23 billion.

According to data from crypto vesting tracker Token Unlocks, the project unlocked 573.5 million tokens for its team members and advisers and released an additional 438.25 tokens for investors.   

The Ethereum layer-2 network used a “Cliff Unlock” mechanism, meaning the tokens were released simultaneously. This prompted speculation that many holders might initiate short positions against the token.  

Several community members took to social media platforms to announce their decision to sell their ARB holdings.  

Some individuals maintained optimism that the token would not experience a sharp decline. A community member hoped ARB would exhibit a similar pattern in the previous vesting unlock periods, where token prices surged instead of declining.   

Arbitrum Price Fluctuation 

ARB token price experienced a downward trend. The token reached a high of $2.22 early this month and dropped to $1.84 on March 16, coinciding with the day of the unlock.   

On March 17, ARB witnessed a further decline in value, with the asset dropping to $1.64, marking a seven-day low.  

At the time of writing, the token is fluctuating around the $1.67 mark, representing a 29% decrease from its all-time high of $2.39, which it attained on January 12.  

Meanwhile,according to Token Unlocks, Arbitrum is set to release another 92.65 million tokens on April 16. 

The exchange said the new milestone highlights growing excitement about cryptocurrencies and users’ trust in its services.

The world’s largest cryptocurrency exchange, Binance, has achieved a new milestone; the value of user assets on the platform has exceeded $100 billion for the first time.

According to an official announcement from the crypto trading platform, the new feat was caused by the soaring prices of digital assets and consistent inflows from market participants.

Binance User Asset Holdings Crosses $100B

Binance revealed that by March 1, user assets held on the platform were close to the landmark figure. This was evident in the latest proof-of-reserves (POR) snapshot taken on the same day. However, as crypto asset prices increased in the past weeks, the value of user assets surpassed $100 billion within the first week of the month.

“The journey past the $100 billion threshold is not just an arbitrary number – it’s a testament to the continued confidence in Binance and the robust performance of the crypto markets. Recent weeks have witnessed a remarkable, sustained uptick in digital asset prices, a trend that has undoubtedly played a significant role in elevating the value of user assets under Binance’s custody,” Binance remarked.

The crypto exchange said the new milestone highlights growing excitement about cryptocurrencies and users’ trust in its services, with its POR system as the “central element of this formula.”

Binance’s POR system currently supports 31 crypto assets and incorporates solutions like zk-SNARKs and Merkle tree cryptography to enhance privacy and robustness. As of March 1, the system showed Binance had 103% reserves for bitcoins held on its platform, 103.5% for ether, and 110.6% for Tether, proving the exchange’s claims of backing user assets 1:1.

“The milestone of exceeding $100 billion in user funds is a clear indicator of the growing trust in Binance and the crypto industry at large. As more funds are custodied by responsible players like Binance, in a transparent and secure manner, the future of the digital-asset space looks increasingly promising,” the exchange added.

Binance Refutes Insider Trading Rumors

Binance’s latest announcement comes as the crypto trading giant offers $100,000 to $5 million in rewards for individuals who provide information or potential insider trading activities within the exchange after refuting rumors that such activity is taking place on the platform.

The offer was triggered by insider trading allegations against the exchange, which emerged after a whale bought millions of the Solana-based memecoin Book of Meme (BOME) ahead of its listing on Binance.

Here’s what Cardano co-founder has to say about claims of Hydra being abandoned.

Cardano’s co-founder Charles Hoskinson has debunked the growing rumors surrounding the future of the firm’s ambitious scaling project, Hydra.

Rumors About Cardano’s Hydra

The Cardano-based protocol Hydra was introduced in May 2023. It aims to strengthen transaction processing capacity and reduce transaction costs on the Cardano blockchain while maintaining security.

Speculation arose following a period of silence from Cardano regarding updates on the Hydra project. Some community members began to question whether the firm has shifted its focus from the project or encountered difficulties.

On March 17, the YouTube channel “The Cryptoviser” uploaded a video alleging that Cardano had “turned away from Hydra” based on Hoskinson’s announcement concerning an integration with Hyperledger Firefly, an open-source Supernode designed for enterprises to build and secure Web3 applications.

However, earlier today, Hoskinson took to the X platform, explaining that developers have not given up on the project and emphasized that the team has never been more motivated and productive.

“I’m seeing some videos claiming that Hydra has been abandoned,” he said before adding that “it is just pure FUD.”

Hoskinson Defends Cardano Over FUD

In his X post, Hoskinson expressed frustration at what he called a “wave of FUD” regarding Cardano’s partnership with the digital ID platform World Mobile and its scaling plans.

“Man, it’s raining FUD this weekend, and I’m not sure about the origin. I guess it’s that time of the cycle where everyone freaks out about ADA’s potential and roadmap, so they throw a wave of FUD at us,” he said.

This is not the first time Hoskinson has addresses and defended Cardano and Hydra over FUD publicly.

In October, the co-founder released a video highlighting Hydra’s capabilities as a scaling solution for Cardano, addressing concerns regarding the network’s scaling issues. 

He countered criticism about throughput, arguing that “Cardano isn’t a TPS system; it’s a transaction-per-transaction system.” 

Hoskinson added that Hydra drifted a little and created middleware for developers to build decentralized applications (DApps) for Cardano.  

Meanwhile, according to DefiLlama, Cardano has experienced notable growth in total value locked (TVL) DeFi this year, hitting a record high of $520 million on March 14.

However, Cardano’s native token ADA is underperforming and a long way from its previous all-time high. At the time of writing, the crypto asset was trading at $0.68 with a market cap of $24 billion.

The Hong Kong securities regulator said MEXC does not have the required license to operate in the country, which makes the platform’s operation a crime. 

The Securities and Future Commission (SFC) of Hong Kong has issued a cautionary warning to investors regarding popular crypto exchange MEXC Global, urging them to exercise vigilance when dealing with the platform.   

According to CoinMarketCap, the platform has a 24-hour trading volume of over $2.19 billion, with a current market cap of $362.97M. MEXC averages three weekly visits and provides access to 1,942 cryptocurrencies.  

MEXC Not Licensed to Operate in Hong Kong

Despite not being licensed by the SFC or having applied for a license to operate a virtual asset trading platform (VATP), the exchange has actively promoted its services to Hong Kong investors.   

“Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is an offense to carry on a business of providing a virtual asset service (i.e., operating a virtual asset exchange) in Hong Kong and actively market such services to Hong Kong investors without a license,” the SFC said.

On March 15, 2024, the SFC added MEXC and its website to the Suspicious Virtual Asset Trading Platforms Alert List, alongside other exchanges like Bybit and BitForex.  

The securities regulator also warned investors against trading digital assets on unregistered exchanges, which may risk losing their investment held on the platform if it ceases operation.  

In early February 2024, the SFC and police cautioned the public about a suspected virtual-asset-related fraud involving a separate entity that also uses the name “MEXC.”  

Approved Crypto Exchanges

At the time of writing, only two crypto exchanges in Hong Kong are licensed by the SFC – the OSL exchange and HashKey Exchange.

The SFC noted that crypto platforms operating in Hong Kong that fail to submit license applications would need to cease business operations by the end of March.

MEXC Hong Kong’s KYC

Meanwhile, MEXC recently launched a marketing campaign targeting Hong Kong investors. In the campaign, new users who complete “KYC” within seven days of registration would be rewarded with 20 USDT. 

In addition, the exchange said it would reward Hong Kong users who used the referral links by introducing friends to trade on the MEXC platform and reaching a specific trading volume with 10 MX.     

The office of Nigeria’s national security adviser also wants Binance to resolve any outstanding tax liabilities.

The Nigerian government has asked Binance, the world’s largest cryptocurrency exchange, to provide data on its transaction history for the last six months and information on its top 100 users in the country as the fiasco between the two entities drags on.

According to a Financial Times report, the information request is the heart of negotiations between Nigeria and Binance following the country’s detention of the crypto exchange’s two senior executives for over two weeks.

Nigeria Wants Binance User Data

As reported last week, Binance discontinued all transactions involving the Nigerian naira (NGN) on March 8 after delisting the currency from its peer-to-peer service in late February. The discontinuation also saw the removal of NGN from the list of supported payment options on Binance Pay.

The events unfolded as the Nigerian government blamed Binance for contributing to the country’s economic crisis and accelerating the devaluation of NGN. Local authorities claimed the crypto trading platform fixed an illegal foreign exchange rate for its currency and demanded $10 billion in damages.

While Binance engaged in talks to resolve the country’s claims, the government detained two executives who had flown in for the discussions. United Kingdom citizen Nadeem Anjarwalla, a regional manager for Binance Africa, and former United States Internal Revenue Service special agent Tigran Gambaryan, head of Binance’s financial crime compliance, have been detained since February 26 at a guest house adjacent to the national security adviser’s office in the country’s capital city, Abuja, with their devices seized.

People familiar with the matter said the duo is cooperating with Nigerian authorities, who believe the period under review in the requested information corresponds with the timeline of the naira’s depreciation.

Nigeria Seeks to Extend Exec Detention

Furthermore, the office of Nigeria’s national security adviser also wants Binance to resolve any outstanding tax liabilities. 

It is worth noting that Nigeria’s Economic and Financial Crimes Commission obtained a court order permitting the detention of the Binance executives for 14 days ending Tuesday, March 12. A hearing to extend the court order for ongoing discussions has been scheduled for March 13.

Meanwhile, complaints laid by Anjarwalla’s wife to the British government over her husband’s detention have been met with little to no action. The British Foreign Office said they are drafting an information request to Nigeria to remedy the situation.