Daily Report ｜Basel Committee proposes to revise standards to provide preferential risk treatment for stablecoins; Philippines SEC head: Ban on Binance will take effect three months after the announcement is made
New Fire Technology: Affected by FTX, the group expects its annual net loss to increase to HKD 280 million; Data: A certain address made a profit of approximately USD 340,000 through MYRO and WIF transactions within a month.Organizer: Luan Peng, ChainCatcher
"What Important Events Happened in the Last 24 Hours"
1. Basel Committee Proposes Revision of Standards to Provide Favorable Risk Treatment for Stablecoins
According to ChainCatcher and a report from CoinDesk, the Basel Committee on Banking Supervision (BCBS) proposed revisions in a consultation document released on Thursday, allowing stablecoins to be considered as having lower risk than unsecured cryptocurrencies like Bitcoin.
So far, the BCBS has taken a tough stance on cryptocurrencies, suggesting a maximum risk weight of 1250% for freely floating digital assets like Bitcoin, meaning banks must issue capital to match their risk exposure. Banks are also not allowed to allocate more than 2% of their core capital to these higher-risk assets. The BCBS stated in a statement that there would be no changes to these standards. (Source link)
2. Xinghuo Technology: Group's Annual Net Loss Expected to Increase to HKD 280 Million Due to FTX Impact
According to ChainCatcher, Hong Kong-listed company Xinghuo Technology issued a profit warning for the year ending September 30, 2023. Based on a preliminary review of the group's unaudited consolidated management accounts and currently available information, it is expected that the group will record a net loss of no less than approximately HKD 280 million for the year ending September 30, 2023, compared to a net loss of approximately HKD 200 million for the year ending September 30, 2022.
The announcement indicated that the increase in net loss is mainly due to (1) the inability to withdraw cryptocurrency assets from the FTX exchange, resulting in an impairment loss provision of approximately HKD 86 million; (2) one-time severance expenses related to the company's personnel restructuring and cost management plan amounting to approximately HKD 15 million. However, these accounts have not yet been reviewed or audited by the company's auditor, and Xinghuo Technology is still finalizing its full-year performance for the year ending September 30, 2023. The company expects to announce its consolidated financial performance for the year ending September 30, 2023, by the end of December 2023. (Source link)
3. Philippines SEC Head: Ban on Binance to Take Effect Three Months After Announcement
According to ChainCatcher and a report from Cointelegraph, Kelvin Lee, head of the Philippines Securities and Exchange Commission, clarified that the ban on Binance will take effect three months after the announcement. Lee stated that there has been a lot of confusion online regarding the ban following the regulator's warning about Binance's unlicensed operations on November 28. He clarified that the ban "should be three months from the date of publication," with the publication date being November 29.
In addition to Binance, two other exchanges, OctaFX and MiTrade, recently received warnings from the regulator regarding their unregistered operations and will also face bans in three months. The local SEC stated that they have a "considerable" list of unregistered exchanges that will gradually come to light. However, after seeing the actions taken against Binance, they are also trying to take a "wait-and-see" approach regarding whether these exchanges are registered. (Source link)
4. Data: An Address Made Approximately $340,000 in Profit Through MYRO and WIF Trades in One Month
According to ChainCatcher and monitoring by Lookonchain, a certain address made a total profit of approximately $340,000 through MYRO, WIF, and CORN trades within one month, with a cost of $3,000.
The address spent 911 USDC to buy 11.4 million MYRO on November 9, then sold 9.8 million MYRO for 157,984 USDC. The address currently holds 1.43 million MYRO (approximately $26,000), with a total profit exceeding $183,000 (201x).
The address spent 20 SOL to buy 8.18 million WIF on November 25, then sold 7.93 million WIF today for 1,887 SOL. The address currently holds 250,000 WIF (worth about 80 SOL), with a total profit of 1,947 SOL ($139,000, 97x).
The address also spent 10 SOL to buy 9.26 billion CORN on November 17, then sold 1.26 billion CORN yesterday for 60.86 SOL. The address currently holds 8 billion CORN (worth about 297 SOL), with a total profit of 348 SOL ($25,000, 35x). (Source link)
"What Interesting Articles Are Worth Reading in the Last 24 Hours"
1. “Powell Turns Dovish, May Cut Rates Three Times Next Year, Bitcoin Surges Above $43,000”
On December 13, Eastern Time, the Federal Reserve maintained interest rates in the current range of 5.25%-5.50%, marking the fourth pause in rate hikes this year following the unchanged rates in November, September, and June.
Even more surprisingly, the Federal Reserve sent its clearest signal yet, predicting a series of rate cuts next year, exceeding economists' expectations. The Fed now expects the federal funds rate to be only 4.6% by the end of 2024, down from the previous expectation of 5.1% three months ago, indicating three rate cuts of 0.25 percentage points next year.
Following this announcement, Bitcoin rebounded to over $43,000, with a 24-hour increase of more than 4%, although it has not yet returned to the annual high of over $44,300 seen in early December. The global cryptocurrency market cap is currently $1.65 trillion, having grown by 3.6% in the past 24 hours. Altcoins like Avalanche (AVAX), Cardano (ADA), and Injective (INJ) saw increases close to 10%.
The blockchain AI computing protocol Gensyn announced on June 12 that it completed a $43 million Series A funding round led by a16z.
Gensyn's mission is to provide users with access to computing scale equivalent to owning a private computing cluster, and crucially, to achieve fair access without being controlled or shut down by any central entity. At the same time, Gensyn is a decentralized computing protocol focused on training machine learning models.
Looking back at the podcast with Gensyn founders Harry and Ben at the end of last year with Epicenter, they explored the investigation of computing resources, including AWS, local infrastructure, and cloud infrastructure, to understand how to optimize and utilize these resources to support the development of AI applications.
They also discussed in detail Gensyn's design philosophy, goals, and market positioning, as well as various constraints, assumptions, and execution strategies faced during the design process.
3. “FTX Hearing Highlights: $24 Billion Claim by the IRS, Dispute with LayerZero”
At 1:00 AM Beijing Time on December 14, the Delaware Federal Bankruptcy Court will hold a hearing on the bankruptcy case of FTX Trading Ltd. (Case No. 22-11068). The purpose of the hearing is to discuss various matters related to the bankruptcy case, including postponed matters such as motions and objections, as well as to review the third interim fee applications submitted by various parties.
The hearing will review various applications and documents related to the debtors and the debtors' property, including creditors' claims, attorney fees, financial advisor fees, and more. The hearing will be presided over by Judge John T. Dorsey of the Delaware Federal Bankruptcy Court. All participants, including attorneys and witnesses, must be present in person. Non-participants can watch the hearing via Zoom by registering in advance.
