Crypto scoop: BTC Hits $29,000, XRP Soars To 5-Month High

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March, 31 2023

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BTC and XRP experience price gains while Japan and Indonesia pursue CBDC and NFT initiatives.

BTC soars to $29,000, XRP hits a 5 -month high, scaling above $0.50 while countries pursue CBDC and NFT initiatives. In this edition of the crypto scoop, we review the following:

  • Price moves and gains of top cryptocurrencies
  • Ethereum’s staking provider, Lido’s unstaking NFT plans
  • CBDC and NFT initiatives in Japan and Indonesia
  • Do Kwon and SBF’s arrest proceedings
Ripple XRP Price Chart

Ripple XRP Price Chart (Source: Coinmarketcap)

Price Moves And Gains Of Top Cryptocurrencies

This week, CFTC, A US Federal regulatory agency, filed a lawsuit against crypto exchange Binance citing regulatory violations and alleging Binance enabled US customers to evade compliance controls through VPNs. BTC's price fell below $28,000, dropping as low as $26,000.

However, the price dip was temporary as Bitcoin rebounded above $28,000, scaling to $29,000. Binance CEO CZ, in response to the lawsuit, tweeted "4", his unique signal that he is avoiding commenting on fake news or attacks against Binance. Bitcoin wasn't the only top price gainer this week, as Ripple XRP rose to a 5-month high of $0.50, its highest point since November. 

Former CEO of MicroStrategy, Michael Saylor, took to Twitter to announce MicroStrategy has repaid its Bitcoin-collateralised loan to Silvergate and amassed more bitcoin. MicroStrategy bought 6,455 BTC bringing the firm's total bitcoin holdings to 138,955 BTC. 

Mike Novogratz, CEO of Galaxy Digital, who predicted that bitcoin would hit $30,000 before the end of this quarter, opined that bitcoin's price gains could be traced to more institutional adoption in Asia. He argued that further factors could trigger a price rally, noting that "all the selling that needed to get done was done."

The hash rate of bitcoin has remained higher than ever despite the difficulty of bitcoin reaching an all-time high of 46.84 trillion. Statistics show that the hash rate peaked on March 23, 2023, at 400 exahashes per second (EH/s). Sam Wouters, a research analyst at River Financial, predicts that as long as the hash rate keeps increasing, it will reach the zettahash era "before the end of 2025."

Withdrawl request Lido

Lido's Withdrawal Request (Source: MarketsInsider)

Lido Announces Plans To Incorporate NFT Into Unstaking Process

Lido, one of Ethereum’s staking service providers, unveiled plans to release a non-fungible token (NFT) representing a user’s withdrawal request as part of the process of unstaking their ether (ETH). This feature will go live after the much-anticipated Shanghai upgrade.

According to Mariya Muzyko, Product Manager at Lido, two processes (request and claim) will be involved in ETH withdrawals on Lido, where customers can unstake their stETH and obtain ETH at a 1:1 ratio. When a user requests a withdrawal, Lido will send them an NFT as legal documentation of the withdrawal request. After that, the user can utilise the NFT to get their ETH payouts. After the user redeems and receives their ETH, the NFT is burned. The NFT will also be transferable, allowing users to transfer the NFT to another address. 

Circle, USDC’s parent company, announced this week that USDC will now be available in the Cosmos ecosystem via the Noble network. However, no launch date has been revealed. 

Japan and Indonesia CBDC and NFT Initiatives

According to the news source, NHK, Japan's Finance Ministry intends to create an expert panel in April to investigate the feasibility of implementing a digital yen. According to the article, the ministry's panel will concentrate on developing a framework for a central bank digital currency (CBDC) using the technical study carried out by the Bank of Japan (BOJ) over the last two years. The ministry plans to use the expert panel's recommendations to prepare for the potential release of a digital yen.

Muhammad Neil El Himam, the deputy chairman for the digital economy and creative products in Indonesia's Ministry of Tourism and Creative Economy, recently partnered with Quantum Temple, a technological firm that uses NFTs for preservation. 

NFTs, according to Himam, may guarantee that heritage can be created and conserved without restrictions. Himam notes, "I believe that NFTs can contribute to preserving Indonesia's cultural heritage while enhancing virtual tourism. NFTs may also be a medium in ushering in the next billion users into the crypto space, especially if the NFT elements of the cultural heritage are well-known and appreciated."

Do Kwon Faces Prosecution While Awaiting Extradition From Montenegro

Terra co-founder, Do Kwon was detained last week in Podgorica, the capital of Montenegro, at the airport when Kwon and his accomplice, Terraform Laboratories CFO Hon Chang Joon, tried to board an aircraft to Dubai using forged travel documents. 

The extradition of Do Kwon from Montenegro has been requested by both the U.S. and South Korea, Justice Minister Marko Kovac said at a press conference on Wednesday. However, only once a separate case for falsification of identification document is resolved will extradition proceeding begin, Kovac noted. 

Former FTX CEO Bankman Fried has also seen new charges added to his 12 criminal charges. Bankman-Fried is accused of attempting to bribe Chinese government officials to unfreeze certain accounts. He now faces 13 federal indictment charges for which he pleads not guilty.