The Weekly Digest: Facebook’s crypto failure, America’s upcoming crypto rules, and wrongly priced BAYC
Following on a week after 2022’s first significant market crash, the world of crypto experienced several events of loss and the power of the memecoin prevailed once again. We also saw harsh warnings against El Salvador’s use of BTC and U.S. regulations that are not too far out of reach.
The IMF released a report that expressed its key concerns with the current state of El Salvador’s national adoption of Bitcoin as a legal tender. The governing body has recommended El Salvador significantly strengthen its regulation of the new crypto payment ecosystem. It “urges the authorities to narrow the scope of the Bitcoin Law by removing Bitcoin’s legal tender status,” according to a recent report.
U.S. Crypto regulations on the horizon
Bloomberg reported U.S. President Joe Biden will present the long-awaited report addressing the country’s regulations on cryptocurrency within the coming weeks. The White House is planning to release a government-wide strategy for crypto and other digital assets as soon as next month and has asked federal agencies to assess the risks and opportunities in this space.
Facebook’s crypto failure
Facebook’s three-year venture towards cryptocurrency creation is on the road to collapse as pressures grow from regulators. The Diem Association, which oversees the development of the Diem digital currency, is considering a sale of its assets, in order to return capital to its investors, according to a Bloomberg report released Wednesday morning.
Twitter saw an exchange when fast-food giant, McDonald’s, responded to a post made by Tesla CEO Elon Musk, prepositioning the car company to accept the made-up ‘Grimacecoin’ as a form of payment. The exchange prompted crypto opportunists to create a coin fashioned after the purple taste-bud mascot and within hours the coin’s value surged by 285,641 per cent.
OpenSea’s bad week
A listing bug on NFT marketplace OpenSea enabled a buyer to purchase the highly sought after Bored Ape Yacht Club (BAYC) NFTs for tens of thousands of dollars less than the collection’s floor price. OpenSea acknowledged the problem as an issue within the “nature of the blockchain,” and is refunding $1.8 million in Ethereum to the affected users.