🏦 Crypto must do better

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The crypto industry is grappling with the loss of banks that were previously supportive of the sector. Most large, well-known banks are not willing to work with small venture funds, tech startups, or crypto companies. With all of this uncertainty, there has been an all-time high in swaps volume on web3 wallet provider Metamask over the weekend.

Other consequences after a chaotic week include, USDC redemptions having exceeded $4 billion, leading to over $2.2 billion worth of USDC being burnt since the start of the week. Furthermore, Anchorage Digital, a cryptocurrency bank, has revealed that it will be laying off around 20% of its staff, which amounts to 75 employees.

Markets

Crypto Must Do Better to Be Banked, Say Industry Executives (4 minute read)The recent voluntary liquidation of Silvergate, a prominent bank in the cryptocurrency industry, and the subsequent regulatory action to seize Silicon Valley Bank have sent shockwaves through the sector. Although depositors will be fully reimbursed, the industry is now grappling with the loss of banks that were previously supportive of the sector. Most large, well-known banks are not willing to work with small venture funds, tech startups, or crypto companies, including exchanges. However, Silvergate, Silicon Valley Bank, and Signature Bank were known for serving these clients, making them pillars of the industry. As a result, the closure of these banks has had a significant impact on various crypto companies, including OKX’s U.S. exchange OKCoin and CoinDesk.

Metamask sees swaps volume hit all time high over weekend (2 minute read)The fall of top crypto-friendly banks, Silvergate and Signature, sent shockwaves through the sector, leading to an all-time high in swaps volume on web3 wallet provider Metamask over the weekend. According to Metamask group manager Dan Finlay, uncertainty over the outcome of the bank closures was a significant driver of this trend. Speaking on an upcoming episode of The Scoop podcast with Frank Chaparro, Finlay highlighted that people were in a state of speculative panic and were unsure of what they could trust. As a result, many were making significant moves in response to the situation, seeking something stable.

Over Two Billion USDC Stablecoin Burnt in Single Day, Data Shows (2 minute read)USD Coin (USDC) redemptions have exceeded $4 billion, leading to over $2.2 billion worth of USDC being burnt since the start of the week. According to Arkham Intelligence data cited by The Block, a single transaction in early Asian hours on Wednesday burned 723 million USDC. In addition to this, several other USDC burns took place over multiple separate transactions, ranging from $300 million to $600 million. These burns involve effectively taking tokens out of circulation by sending them to an address not controlled by any entity. The USDC burns followed a probable reduction in reserve backing or redemptions. Net redemptions of USDC crossed the $4 billion threshold on Tuesday, with Circle, the issuer of USDC, stating that it would process all transactions and honor redemptions.

Tech

ChatGPT v4 aces the bar, SATs and can identify exploits in ETH contracts (6 minute read)The latest version of the artificial intelligence chatbot, ChatGPT, called GPT-4, has the ability to pass high school tests and law school exams with scores ranking in the 90th percentile. OpenAI, the creator of the chatbot, released the test scores on March 14, along with information about the chatbot's new processing capabilities. In addition to being able to handle much more nuanced instructions in a creative and reliable manner, GPT-4 can also convert image, audio, and video inputs to text. According to former Coinbase director Conor Grogan, he inserted a live Ethereum smart contract into GPT-4, and the chatbot instantly identified several security vulnerabilities in the code and outlined how it could be exploited.

Plaintiff Wins Case Against Hackers After Serving Court Papers via NFT (3 minute read)Recent court filings reveal that a federal judge in Florida has ruled in favor of a plaintiff who sued anonymous hackers and issued formal notice of the legal action via NFT. The ruling, a default judgment from Judge Beth Bloom of the United States District Court Southern District of Florida, declares that the unidentified hackers must pay $971,291 worth of USDT (Tether) that they stole from plaintiff Rangan Bandyopadhyay’s Coinbase wallet in December 2021. Due to the blockchain's anonymity, it is unclear who the hackers are or where they reside. Judge Bloom permitted them to be served via NFT in last week’s case, using the same on-chain addresses they used to steal from Bandyopadhyay.

Misc

Crypto bank Anchorage Digital cuts 20% of staff, citing regulatory uncertainty (3 minute read)Anchorage Digital, a cryptocurrency bank, has revealed that it will be laying off around 20% of its staff, which amounts to 75 employees. Regulatory uncertainty in the US is cited as one of the reasons behind this move. Anchorage referred to these layoffs as a "strategic realignment to better focus our resources," while acknowledging that "broad macroeconomic challenges and crypto market volatility" are additional factors contributing to its change in approach. Despite these difficulties, Anchorage said that demand for its products has grown, and its assets under custody are at an all-time high.

Crypto exchange Binance to halt sterling transfers (2 minute read)Binance, the world's largest cryptocurrency exchange, is stopping sterling deposits and withdrawals after being informed by its partner Paysafe that it will halt its services from May 22. This move comes a month after Binance stopped dollar transfers. The halt on sterling transfers will impact all Binance customers, and transfers for new users were stopped on Monday. However, Binance has stated that it will ensure affected users are still able to access their GBP balances. The company spokesperson mentioned that this change will affect less than 1% of Binance users.

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