Crypto Scoop: BTC Drops Below $20K and ETH Dips Below $1,500

While top cryptocurrencies trade in red, countries discuss their CBDC initiatives. In this edition of the crypto scoop, we review the following: 

• Price moves of top cryptocurrencies
• Ethereum developers postponement of Shanghai upgrade
• Vitalik Buterin’s coin dump
• Nigerians’ crypto curious ranking
• Crypto and CBDC initiatives in Brazil, Thailand and India
• South Korea’s metaverse initiative

BTC Dips Below $20,000 and ETH Falls Below $1,500

Due to scrutiny and legal and regulatory pressure on its operations, Silver Gate Capital, a lending service offering loans to several cryptocurrency businesses, has shut down. Silvergate declared in a press release that it will now close down operations and liquidate its fund.

Following the shutdown of Silvergate recovering prices of top cryptocurrencies took a hit. Bitcoin fell below $20,000, and Ethereum currently trades below $1,500. In comparison, Ripple XRP seemed to be the exception soaring to $0.40 while others traded in the red; it has, however, dipped to $0.30.

However, the CEO of One River Digital Asset Management, Eric Peters, remains optimistic, noting the next bull run will be “very powerful” as it will be driven by institutional adoption.  He compared the recent crypto winter to the Wall Street collapse of 1929, known as the Great Crash and expressed gratitude the crypto community navigated the bear market. 

Ethereum Developers Postpone Shanghai Upgrade

The Shapella (Shanghai + Capella) unstaking upgrade will soon go live on the Goerli testnet, which suggests that the ability to withdraw staked Ethereum is closer than ever. Following a seamless Sepolia transition, the Shapella upgrade is set for the Goerli testnet.

However, Ethereum developers revealed at a meeting on Thursday that the anticipated launch of the Shanghai hard fork has been postponed from late March to the first two weeks of April. The "Goerli testnet launch," set for March 14, was discussed during the meeting, and core developers agreed that the hard fork should occur at least two weeks after that.

Vitalik Buterin Dumps Certain Cryptocurrencies For Being ShitCoins

This week, co-founder of the Ethereum blockchain Vitalik Buterin sold some of his holdings in altcoins, later declaring that they had "no cultural or moral value." The sales totalled 220 ether, which is worth about $332,420. 

Buterin remarked on Reddit, "BITE and most other coins being discussed on this forum are s**tcoins. [They] have no redeeming cultural or moral value and will probably lose you most of the money you put into them. I anti-endorse these projects to the greatest extent."

Brazil, Thailand and India Crypto and CBDC initiatives 

The Central Bank of Brazil has started testing the central bank digital currency (CBDC) project, which promotes greater inclusion of people in the financial industry. After the pilot finishes in 2024, widespread use of the digital currency is anticipated, according to Fabio Araujo, the CBDC project coordinator at the Brazilian central bank.

The Indian central bank is looking into the offline capabilities of the digital rupee. They emphasised the need for it to have all characteristics of physical currency, including anonymity, since the CBDC will soon serve as a medium of exchange in India. The executive director of the RBI has previously stated that India's CBDC will be designed in a way that will cause the least disruption and will not substitute for current financial systems or physical currency.

The Thai government anticipates that investment token offerings could generate more than $3.7 billion over the next two years. By allowing the tax-free issuance of digital tokens for investment, the Thai government is taking steps to profit from the expansion of the digital asset industry. According to Reuters, Thailand's cabinet has decided to exempt businesses that issue investment tokens from corporate income tax and value-added tax (VAT).

South Korea Announces A 27.7 Billion Korean Won Investment In The Metaverse

On Tuesday, South Korea announced a US$30 million metaverse fund to aid startups in growing their businesses. On Wednesday, South Korea announced an investment of 27.7 billion Korean won (US$21 million) into regional services looking to use the metaverse.

According to a press release, the US$21 million investment will support 13 new projects in industries like healthcare, education, and tourism that will use the metaverse to improve services for the general public. The 40 billion won ($30 million) fund, which South Korea announced on Tuesday, will incentivise smaller companies in the metaverse sector to actively pursue mergers and acquisitions to diversify their business into international markets.