Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting the Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
Crypto exchange Binance sold its USD Coin (USDC) reverses for Bitcoin (BTC) and Ether (ETH) amid the collapse of Silvergate Bank, reveals latest proof-of-reservers data. Cryptocurrency trading activity via Telegram bots has surged in recent weeks, according to new research from Binance. PayPal launched a new US dollar-backed stablecoin called PayPal USD (PYUSD) — issued by Paxos Trust Co.
Binance sold USDC for BTC and ETH after Silvergate Bank collapse: PoR report
Binance’s latest proof-of-reserves (PoR) from Aug. 1 revealed that the crypto exchange converted its USD Coin (USDC) reserves into Bitcoin (BTC) and Ether (ETH) right after the collapse of Silvergate Bank.
Binance started converting customers’ USDC to Binance USD in September internally, but at the time, it did hold a significant amount of USDC in its reserves as well.
PayPal USD is a boon for Ethereum, not decentralization: Community
PayPal’s new Ethereum-based stablecoin, PayPal USD (PYUSD) could herald the mainstream adoption of Ethereum, but at the cost of more centralization, according to the crypto community.
The new stablecoin, PayPal USD, was announced on Aug. 7 and will soon be available to U.S. customers.
While Ethereum bulls such as Anthony Sassano and Ryan Sean Adams have lauded the announcement as a huge win for Ethereum adoption, others have pointed to its smart contract code, which would purportedly allow the firm to freeze and wipe funds.
The new Paypal USD stablecoin has an "assetProtection" role which can wipe your balance in two transactions (first `freeze`, then `wipeFrozenAddress`)
In smart contract security we call this a "centralisation attack vector" pic.twitter.com/RsmqvsnKvi
— pashov (@pashovkrum) August 7, 2023
Digital asset lawyer Sarah Hodder believes many characteristics of PayPal’s stablecoin resemble that of a censorship-enabled central bank digital currency. Another smart contract auditor noted that PYUSD’s smart contract can be changed by PayPal at any time.
Yes, PayPal's stablecoin is centralized.
No, that doesn't make it any less cool that PayPal has a stablecoin.
Ethereum being a settlement layer for all types of value means that different types of assets will exist on the network & you get to choose which ones you want to use.
— sassal.eth (@sassal0x) August 8, 2023
Telegram crypto bots see a surge in activity
Telegram bots are leaving a dent on the cryptocurrency market, with daily trade volumes from these software applications hitting a record high in recent weeks.
The cumulative trade volumes of crypto trading bots has reached $190 million as of early August, according to new research from Binance. The single-day record for crypto trading volumes emanaging from chatbots was $10 million on July 23. According to Binance, user activity also reched a record in July, with more than 6,000 daily unique users. Total chatbot revenues on Telegram have reached 15,500 Ether (ETH), or roughly $28 million, according to report author Jie Xuan Chua.
“By offering users a relatively seamless way to execute transactions, bots have the potential to carve out their own niche in the crypto ecosystem,” Chua wrote, adding that Telegram bots already offer a range of services to crypto users, including trading, airdrop farming and automated token operations.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
