• SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection.
• The filing was submitted in the Southern District of New York and aims to preserve company value.
• Customers affected by the bank’s failure will receive access to their funds from the FDIC and an emergency plan from the Biden administration and U.S. Treasury.

SVB Financial Group Files for Bankruptcy Protection

SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York in order to explore strategic alternatives as determined by a board-appointed restructuring team made up of five members. The bankruptcy case is intended to preserve company value while Joele Frank, a shareholder activist firm, is involved in the proceedings.

Silicon Valley Bank Closes

The announcement comes shortly after Silicon Valley Bank closed its doors on March 10 after announcing plans to over $2 billion of funds leading to a weekend bank run – affecting companies such as Circle and BlockFi who were customers of the bank.

Preserving Company Value

The press release indicated that SVB Financial Group has $2.2 billion of liquidity, $3.3 billion of debt in aggregate principal amount of unsecured notes, and $3 billion dollars‘ worth of outstanding preferred equity at this time which are all meant to be preserved during this legal process.

Funds Provided Elsewhere

Customers affected by the failed Silicon Valley Bank will not be able to receive access to their funds through SVB’s services as they are no longer associated with it – instead they will get access through other means such as through insurance provided by Federal Deposit Insurance Corporation (FDIC) or an emergency plan from the Biden administration and U.S Treasury Department if applicable according to regulations set out by them both respectively.

Continuing Operations

Despite Silicon Valley Bank failing, SVB Capital and SVB Securities still operate providing services outside what was previously offered by its predecessor

• The SEC issued a Wells Notice to Paxos, indicating that they are under investigation for their BUSD stablecoin.
• A Wells Notice outlines the charges the SEC intends to bring and allows the respondent to submit a statement in defense.
• Paxos disagrees with the decision and is confident that BUSD is not a security under federal securities laws.

What is a Wells Notice?

The Wells Notice is a document created by recommendations from the SEC’s committee (the „Wells Committee“) in 1972. It is issued to entities under investigation by the SEC, outlining any potential charges and allowing them to submit a written statement in their defense before an action is taken.

History of the Wells Notice

In 1972, SEC Chairman William J. Casey established a committee (led by John Wells) to review and assess the Commission’s enforcement policies and practices. The Wells Notice was created as a result of the committee’s recommendations, although there is no legal requirement for it to be issued.

Paxos Receives a Wells Notice

On February 21, Paxos halted issuance of new BUSD tokens after receiving a Wells Notice from the SEC, alleging that BUSD was an unregistered security. This indicates that an investigation has either been initiated or completed by the regulator, and enforcement action may follow next course of action.

Paxos‘ Disagreement

In response to this news, Paxos stated that they disagree with the decision and believe that BUSD is not considered a security under federal securities laws. Additionally, USDP will not be affected since it operates similarly but on different blockchains than BUSD does on Binance Smart Chain.

Conclusion

The Wells Notice issued by the SEC against Paxos shows how regulations are changing as digital assets emerge in mainstream finance. While this case may cause some uncertainty among investors in digital assets like stablecoins, it should also serve as an example of how companies should ensure compliance with all applicable rules and regulations when developing new products or services related to digital assets involving U.S citizens or entities before launching them into production use cases or markets

• NFT trading volume increased to $2 billion in February, reaching its pre-LUNA crash levels.
• Ethereum (ETH) remained the top blockchain by NFT trading volume with $1.8 billion.
• Blur had the highest trading volume over OpenSea with $1.3 billion and 96,856 users.

NFT Trading Volume Returns to Pre-LUNA Crash Levels in February

Non-fungible token (NFT) market’s trading volume increased to $2 billion in February, reaching its pre-LUNA crash levels according to DappRadar’s Industry Report.

Increase From January

The NFT trading volume recorded a 117% spike from January’s $956 million, as the DappRadar data shows. Despite the significant surge in the NFT trading volume, the sales count recorded a 31.46% decrease, falling to 6.3 million from January’s 9.2 million.

Top Blockchains By Trading Volume

In February, Ethereum (ETH) remained the top blockchain by NFT trading volume. The chain recorded $1.8 billion in trading volume, which marks a 174% increase from the $659 million in January.

• Solana (SOL): $75 million (12% decrease from previous month)
• Polygon (MATIC): $39 million (147% increase from previous month)

Blur vs OpenSea

In February, Blur triumphed over OpenSea in terms of trading volume. Blur facilitated over $1.3 billion in trading volume throughout the month, while OpenSea came second with $587 million.

Profit Chasers vs Art Lovers

< p >Even though the difference in trading volumes points to Blur as the busiest NFT marketplace, OpenSea still holds the most significant number of users .Currently ,Blur has 96 , 856usersas opposedtoOpen Sea’s 316 , 199 . To catch up withOpen Sea on that front , Blur has also begun offering various incentive programs such as discounts and rewards for users who refer friends or purchase art pieces .

< h 2 >Conclusion < p >As evidenced by these numbers , it is clear thatwhileBlur may be leadingin terms oftradingvolume ,OpenSeais still dominant when it comes to user base . In order forBlurtobecomemore competitiveandcontinuegrowinginthefuture , theywillneedtotakemore aggressive steps towards increasing theiruserbase and customer loyalty .

• A recent court ruling against Dapper Labs classified the use of certain emojis in promotional materials as investment advice.
• Former SEC branch chief Lisa Braganca warned the public against using these emojis.
• The court ruled that using emojis relating to rocket ships, stock charts, and money bags could be classified as investment advice.

Court Rules Emoji Use Constitutes Investment Advice

A lawsuit filed against Dapper Labs and its CEO Roham Gharegozlou for allegedly violating securities laws by offering its NBA Top Shot Moments has resulted in a court ruling that certain emoji usage constitutes investment advice. Judge Victor Marrero ruled on Feb. 22 that “rocket ship”, “stock chart”, and “money bag” emojis used in marketing materials constitute investment advice and are subject to regulation under existing securities laws.

Former SEC Chief Warns Against Using Emojis for Investment Advice

Following this ruling former SEC branch chief Lisa Braganca issued a warning via Twitter advising the public against using these types of emojis in promotional materials related to investments or investments products.

Accusations Against DapperLabs

The accusations levied against Dapper Labs were that they had been promoting NBA Top Shot Moments as an investment opportunity through their marketing materials which included carefully selected emojis such as rocket ships, stock charts and money bags. The plaintiffs argued that although literal words such as „profit“ were not used in any of the tweets, the use of these emojis objectively meant one thing – a financial return on investment.

DapperLabs Arguments

Dapper Labs argued that the use of the aforementioned emojis was intended to provide accuracy to market data and not a means of promoting sales or encouraging people to invest in the product offered by them. Several members from the crypto community have also argued that since different people can interpret different meanings from an emoji, it should not be regulated under existing securities laws as it would impede freedom of speech if done so.

Conclusion

It remains unclear how this recent court ruling will affect future promotions involving cryptocurrencies or other digital assets which often make use of visual elements such as emojis to promote their products or services online but it is likely that companies will now proceed with caution when utilizing these types of visuals moving forward due to this precedent being set by Judge Marrero’s decision.

• Bitcoin is now above the realized price on all major exchanges.
• The exchange average withdrawal price for Bitfinex, All Exchanges, Binance and Coinbase are $10,595, $16,816, $21,362 and $21,046 respectively.
• During the 2019 and 2020 bear markets, the Bitcoin price went through all-exchanges realized price however during the 2022 bear market it briefly went below the realized price of all exchanges.

Bitcoin Above Realized Price On All Major Exchanges

Bitcoin has broken through $24000 and is now above the realized price on all major exchanges. This was not always the case – during both the 2019 and 2020 bear markets, bitcoin prices fell below the all-exchange realized prices. However in 2021 this changed with a brief dip in 2022 where bitcoin dipped below its realized price again.

Exchange Average Withdrawal Prices

It is possible to monitor an approximate cost basis by considering averages of coins withdrawn from various exchanges. As of writing this article these averages stand at: Bitfinex ($10595), All Exchanges ($16816), Binance ($21362) and Coinbase ($21046).

2019 And 2020 Bear Markets

During both 2019 and 2020 bear markets bitcoin dropped significantly below its all-exchange realized prices – indicating that it was sold off heavily during these periods. This suggests that investors were more inclined to sell their holdings rather than hold onto them in anticipation of a future turnaround in market sentiment or prices.

2022 Bear Market

The year 2022 saw a brief dip in bitcoin’s prices which briefly took it back below its all-exchange realized prices. This could suggest that investors were less willing to hold onto their assets during this period as compared to previous years due to increased uncertainty about future prospects for digital currencies such as bitcoin or other cryptocurrencies.

Conclusion

Overall despite some minor fluctuations in recent months bitcoin appears to be resilient against downturns in investor sentiment or market conditions as evidenced by its current position above its all-exchange realization rate – suggesting that investors may be increasingly confident about holding onto their assets for longer periods of time even when there are drops in prices or overall market decline.

• Kraken reached a $30 million settlement with the SEC to cease staking services for U.S. clients, which allegedly constituted a securities offering.
• Jesse Powell, co-founder and exiting CEO of Kraken, commented on the decision in a series of tweets, noting that the SEC targeted them during a bear market when they had recently laid off 30% of their staff.
• Powell expressed hope that someone can prove in court that custodial staking can be legally offered in the US and called for regulatory clarity from the SEC.

Kraken Settles With SEC

Kraken recently reached a settlement with the U.S. Securities and Exchange Commission (SEC) to pay $30 million and discontinue its staking services for U.S.-based customers, which allegedly constituted a securities offering.

Jesse Powell Comments

Jesse Powell, co-founder and exiting CEO of Kraken, commented on his company’s decision to halt its U.S. staking services in a series of tweets on Feb 9th 2021. He explained why Kraken did not fight the SEC due to risk-adjusted return and noted that other companies may have more resources available to them in this kind of situation but that the SEC targeted Kraken during a bear market when they had just laid off 30% of their staff, giving them leverage over Kraken financially as well as legally. He also expressed hope for legal custodial staking being offered in the US and called for regulatory clarity from the SEC .

Powell Responds To Officials & Lawmakers

Powell replied to comments from SEC commissioner Hester Peirce who criticized her agency’s lack of compliance path available to crypto companies like Kraken yesterday , asking for guidance rather than an ‘try it and see what happens’ approach as he believes this does not help either industry or consumers; noting that they are not anti-regulation but need clear paths to operate legitimately within their jurisdictions . He also agreed with statements made by Congress member Tom Emmer , an advocate for embracing crypto technology rather than rejecting it through heavy regulations .

Conclusion

In conclusion, while there is still no clear path forward regarding regulatory compliance within crypto industries , Jesse Powel l has voiced his opinion about this matter along with some other officials & lawmakers who are trying to make progress towards setting clearer guidelines & paths forward .

• The crypto market suffered a major downturn in June 2022, with Bitcoin reaching an all-time low of $15,500.
• Since then, Bitcoin has recovered and returned to around $23,000 but the market remains unstable.
• CryptoSlate analyzed on-chain and macro data to determine whether the crypto bottom is in or if more volatility is yet to come.

Overview

The crypto market suffered a major downturn in June 2022, with Bitcoin hitting an all-time low of $15,500 before recovering back to around $23,000 by the end of January 2023. While the market remains unstable due to ongoing bankruptcy proceedings for large companies such as FTX and Celsius and macroeconomic uncertainty from an incoming recession, CryptoSlate analyzed on-chain and macro data to determine whether the crypto bottom is in or if more volatility is yet to come.

Whales are Accumulating

Net position change in addresses holding over 1,000 BTC indicates a strong cycle bottom as these whales have historically accumulated Bitcoin during extreme price volatility. During the Terra collapse in June 2022 whales scooped up almost 100,000 BTC within weeks and have recently begun accumulating again at the end of January 2023.

Long-Term Holder Supply is Increasing

The supply held by long-term holders (LTHs) has been increasing since November 2022 according to analysis from CoinMetrics indicating that investors are holding onto their coins for longer periods of time rather than selling them off immediately when prices dip down. This suggests that LTHs believe bitcoin will recover despite short term fluctuations which could be seen as a sign of a potential market bottom being set.

Perpetual Funding Rates are no Longer Negative

Perpetual funding rates measure how much interest traders must pay each day to borrow funds from one another while trading futures contracts which tend to go negative when there is high demand for shorts (i.e., betting against Bitcoin). Since late December 22nd 2022 perpetual funding rates have been consistently positive which may indicate that there is less bearish sentiment among traders.

Total Supply In Profit Growing

Since November 2020 total supply held by profitable addresses (addresses whose holdings are worth more than when they were purchased) has steadily increased throughout 2021 despite recent drops due likely due to new investors entering the space who bought at higher prices and thus need time for their investments break even again before becoming profitable again. This suggests that people remain confident about long term prospects even after short term drops and could indicate a potential bottom being set at current levels

• Sam Bankman-Fried, former CEO of FTX, denied trying to sway a potential witness in a court filing.
• The witness in question is the General Counsel for FTX US, Ryne Miller, who may be a witness at trial.
• U.S. Attorney for the Southern District of New York, Damian Williams, accused Bankman-Fried of contacting Miller via an encrypted messaging app with the intent to influence Miller’s testimony.

Sam Bankman-Fried, the former CEO of the cryptocurrency exchange FTX, has denied allegations that he attempted to influence a potential witness in a court filing. According to a Jan. 27 filing by U.S. attorney for the Southern District of New York, Damian Williams, Bankman-Fried is accused of sending an encrypted message on Jan. 15 to the General Counsel for FTX US, Ryne Miller. Williams suggested that Bankman-Fried’s message was an attempt to sway Miller’s testimony, as Miller holds information that could incriminate Bankman-Fried.

The message sent by Bankman-Fried read, “I would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.” Williams noted that Miller was present at the company during its collapse and was part of company groups on messaging apps such as Signal and Slack. According to Williams, Bankman-Fried had instructed employees to modify and delete records related to FTX’s business, which is a possible violation of federal law.

In response to the accusations, Bankman-Fried has denied any wrongdoing and has requested that the court not impose restrictions on his communications. Bankman-Fried claims that he was simply trying to reach out to Miller in order to form a constructive relationship. He also argues that any information Miller might have is already known to the government from previous investigations.

At this time, it is unclear what action the court will take in response to Bankman-Fried’s denial. However, it is likely that Bankman-Fried could face contact restrictions if the court finds that he did indeed attempt to influence Miller’s testimony.

• Bitcoin has risen 50% since its local bear market low of $15,400.
• The S&P 500 and Gold have risen 13% and 19% respectively since November lows.
• Over the past 24 hours, liquidations of BTC and ETH totaled $165 million.

The crypto industry has been abuzz in recent weeks as Bitcoin continues to surge, hitting a high of $23,230 for the first time since August 2022. This marks a 50% increase from the bear market low of $15,400 and is significantly outperforming two of the most watched asset classes, the S&P 500 and Gold.

The S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, has risen 13% since November lows. Gold, a reliable hedge against inflation, has seen similar gains, with a 19% increase from November lows.

This bullish trend has been further bolstered by a bullish sentiment in the crypto industry. Over the past 24 hours, liquidations of BTC and ETH totaled $165 million. This figure is made up of a combination of short and long liquidations, with the majority involving BTC.

Despite the bullish sentiment, it is important to note that the market is still volatile and prices can change quickly. As Bitcoin continues to rally, frequent retracements at key resistance levels have caught bulls off guard. For example, on Jan. 18 and Jan. 21, BTC longs were liquidated for over $30 million.

At the time of press, Bitcoin is ranked #1 by market cap and the BTC price is up 8.87% over the past 24 hours. With a market capitalization of $445.52 billion, it is clear that Bitcoin continues to remain the most valuable crypto asset.

It remains to be seen whether Bitcoin’s bear market rally will continue, but it is clear that the crypto industry is in a state of bullish momentum and the future looks bright.

• The AI narrative has grown stronger in recent weeks, but the AI crypto sector is still largely in its infancy.
• The top three AI tokens, Kambria, SingularityNET, and Graphling Protocol, grew 445%, 322%, and 290%, respectively, in the last 30 days.
• Most AI tokens are microcaps, making them high-risk investments with high reward potential.

The Artificial Intelligence (AI) sector has been gaining traction in recent weeks, and given the potential AI has to revolutionize multiple aspects of life, there’s a growing interest in crypto tokens related to AI. To get a better understanding of the AI crypto sector, let’s take a look at the performance of the top five AI tokens in 2022.

The top five AI tokens all experienced significant growth in the last 30 days, with Kambria, SingularityNET, and Graphling Protocol leading the pack at 445%, 322%, and 290% growth, respectively. While these tokens have seen impressive gains, they are still largely in their infancy, and their future performance is still uncertain.

In addition to these tokens, there are also many AI tokens that are microcaps, meaning they have a market cap of under $50 million. These tokens tend to be high-risk investments due to their lack of liquidity and their status as proof-of-concepts that may not reach mass adoption. However, the upside potential of these tokens is much higher than larger tokens, as capital inflows can generate more significant percentage gains on low market caps.

Overall, the AI sector has seen significant growth, but it is still in its early stages. As the sector continues to develop, more investors will likely become interested in the potential of AI-related tokens. For those looking to invest in the AI sector, it is important to do your own research and understand the risks and rewards associated with investing in microcap tokens.