1/14 FAL Weekly Digest
Welcome to the FAL Weekly Digest, a source for this week’s biggest news articles and crypto market updates.
Here is what you need to know:
Tether faces scrutiny once again as it locks accounts tied to illicit activities.
Tether Freezes Ethereum Accounts Holding Over $150M
Tether, the company behind the notorious and popular stablecoin USDT, has blacklisted three Ethereum addresses on Thursday preventing them from moving funds. According to data found on the on-chain analytics platform and block explorer Etherscan, the three accounts held over $150 million worth of USDT.
The stablecoin provider has been known to work with law enforcement and regulators around the world to monitor accounts and report suspicious activity. Stuart Hoegner, general counsel at the Bitfinex exchange which is a sister company of Tether, has previously stated that Tether works with international law enforcement agencies and moves to block addresses when necessary. “Tether routinely assists law enforcement in their investigations. Through the freeze address feature, Tether has been able to help users and exchanges to save and recover tens of millions of dollars stolen from them by hackers.”
Tether has blacklisted a total of 563 addresses on the Ethereum blockchain since November 2017. While the company’s efforts to combat illegal activities in cryptocurrency may be genuine, there is a growing debate regarding the level of centralization and control over cryptocurrency’s most popular stablecoin. Tether ($USDT) currently has a $78 billion market capitalization and sees about $64 billion in daily trading volume, making it the most traded crypto asset. Bitcoin ($BTC) only currently sees $29 billion in daily trading volume. The idea of cryptocurrency, a market and concept that largely embraces the idea of decentralization, being so heavily reliant on an increasingly centralized stablecoin offering has prompted the crypto community to question the merits of Tether’s control over the market as a whole.
Market Update - Bitcoin
The overall cryptocurrency market capitalization is about $2.06 trillion USD, a 4.04% increase from last week’s valuation of $1.98 trillion. At the time of publication, Bitcoin ($BTC) is valued at $43,325 per bitcoin with a market capitalization of $818 billion making up 39.7% of the overall market.
Bitcoin and the overall cryptocurrency market continues to see heightened levels of volatility into the second week of January. A brief fall below the $40,000 price level on Monday was quickly bought up by investors as seen by the spike in volume shown above. Exchange outflows, the measurement of the net amount of Bitcoin moved off of exchange accounts and onto private wallets, also spiked during the same time period indicating that large holders may be opting to hold and secure their Bitcoin as opposed to selling on an exchange.
The price bounce continued throughout the week to a high of about $44.4k coinciding with recent news from the U.S. Department of Labor, which reported a 7% rise in the consumer price index (CPI) for 2021. Bitcoin is frequently purported as a superior hedge against inflation compared to gold, so it is no surprise to see Bitcoin perform well in the face of increasing inflationary woes. For the time being BTC remains within the $40-43k trading zone which has served as a key pivot point throughout 2021.
TaxBit to Provide Free Crypto Tax Forms
The popular crypto tax and accounting platform TaxBit has announced their plans to provide free 2021 tax forms for users of some of the most popular cryptocurrency exchanges. TaxBit will launch the TaxBit Network, which will include about 20 major cryptocurrency related businesses in the United States.
Users of the platforms that have opted to join the TaxBit network will be able to receive free and accurately generated 2021 tax forms, including the IRS Form 8949 and other income reports. TaxBit will be able to generate information based on all the transactions and trades completed on an account, making the calculation of capital gains and losses for the year effortless. For more information, see our full article found here.
World of Women NFTs Head to Hollywood
Cryptocurrency and NFT circles are frequently the subject of criticism regarding the gender disparities found in the male dominated industries. Arguably the most popular female-led NFT project, the World of Women NFT collection now sets its sights beyond the crypto space and into the entertainment industry.
The team behind the project has announced that it has signed Guy Oseary to represent the project in other media formats such as television, film, music, and video games. Oseary is known for being the manager of high end clientele such as Madonna and U2, and has recently gained attention in the crypto space for signing with the Bored Ape Yacht Club to help manage the brand’s expansion into new entertainment formats.
The project has exploded in popularity and has garnered the attention of celebrities such as Reese Witherspoon, Eva Longoria, and Shonda Rhimes. For more information on the project and how the team plans to handle the intellectual property (IP) rights of each NFT, please read our full article found here.
Bitcoin, Bikes, and Arkansas
A coalition of business leaders called the Northwest Arkansas Council has announced an incentive program to entice professionals in the tech industry and other entrepreneurs to relocate to the region. The NAC is offering $10,000 in bitcoin and a bike to applicants who can prove their ability to work remotely, have two or more years of experience at their current position, and can move within six months of accepting the offer.
Council president and CEO Nelson Peak stated that the “Bitcoin and a Bike” program is specifically aimed to appeal to professionals in blockchain-related fields. “This expanded incentive offer not only embraces the growing trend toward the use of cryptocurrency as a payment option by employers, but also helps increase our pipeline of talent to benefit tech employers, startups, cities, local businesses, and the region overall.”
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