Crypto Flipsider News – BTC Reclaims $19,000; ETH rallies; buterin on layer 3; Voyager Loan Returned; WazirX deletes stablecoins from DailyCoin

©Reuters. Crypto Flipsider News – BTC Reclaims $19,000; ETH rallies; buterin on layer 3; Voyager Loan Returned; WazirX deletes stablecoins

Read in the digest:

• (BTC) reclaims $19,000 as miners and holders double BTC.

• (ETH) rallies despite SEC claiming jurisdiction over ETH transaction.

• Vitalik Buterin shares his vision of what Layer 3 solutions could look like.

• Alameda Research and Voyager agree to repay $200 million loan.

• India’s largest exchange, WazirX, is delisting stablecoins to boost Binance’s BUSD.

Bitcoin (BTC) reclaims $19,000 as miners and holders double BTC

Bitcoin (BTC) has recovered from the critical $18,000 support zone and has surged above $19,000. The price of BTC had fallen as low as $18,688 on Monday, September 20, amid fears in the crypto market in anticipation of the worst rate hike in 40 years.

BTC has surged from its low of $18,420, gaining 4.2% in the past 24 hours and rallying to a daily high of $19,639. Bitcoin, the world’s largest cryptocurrency, is now trading at $19,250 after failing to break the $20,000 resistance zone.

The 24-hour Bitcoin (BTC) price chart. Source: CoinMarketCap

Bitcoin relief rally coincides with recent voiced determination by miners and BTC HODLers to see the leading asset through the crypto winter. To further this goal, mining companies BitFarms and Marathon Digital are working to increase their capacity by the end of the year.

Bitcoin’s long-term dormant balance recently surged to a new all-time high. Bitcoin permabull Michael Saylor, despite being affected by the crypto winter, has said his company MicroStrategy will continue buying bitcoin.

Flipsider:

• With a Fed rate hike expected to be announced in the coming days, the Bitcoin Fear and Greed Index has settled into extreme fear territory.

Why you should care

The surge in the number of HODLers doubling Bitcoin is a sign that investors believe Bitcoin is about to break out of winter.

Ethereum (ETH) is rallying despite the SEC claiming jurisdiction over ETH transactions

In a US Securities and Exchange Commission (SEC) lawsuit against crypto influencer Ian Balina, the regulator claimed jurisdiction over Ethereum (ETH) transactions.

The lawsuit was filed against Balina for failing to register its crypto as a security before launching an Initial Coin Offering (ICO) in 2018. Of significant interest to the larger crypto community is a section of the SEC document claiming that the US government has jurisdiction over all ETH transactions.

According to the filing, the government has authority in the case because the ETH sent to Balina “was validated by a network of nodes on the Ethereum blockchain that are more densely clustered in the United States than in any other country.”

Despite the SEC’s stance, ETH’s price has caught a breather, recovering over the past 24 hours, gaining more than 5% and trading at an intraday high of $1,388. ETH is currently trading at $1,360.

The 24-hour Ethereum (ETH) price chart. Source: CoinMarketCap

Flipsider:

• At a Senate Agriculture Committee hearing, CFTC Chairman Rostin Behnam stated that his agency is the “right regulator” to oversee digital asset trading.

Why you should care

The statement on ETH included in the filing aligns with recent calls from the SEC for increased regulatory oversight of the crypto market.

Vitalik Buterin shares his vision of what Layer 3 solutions could look like

In a blog post titled “What kind of Layer 3s make sense?” Ethereum co-founder Vitalik Buterin shared his thoughts on what Layer 3 might look like and outlined his belief that Layer 3 cannot scale like current ones Layer 2 solutions will include.

Buterin suggested that a third layer on top of the blockchain should serve a different purpose than layer 2s, whose main purpose is to increase the scaling of layer 1 blockchains via zero-knowledge (zk) rollup technology.

Buterin believes Layer 3 solutions will be able to provide customized capabilities to support emerging Layer 2 platforms focused on network hyperscaling. The Ethereum co-founder describes the first potential use case of Layer-3s as “custom functionality”.

A second potential use case, according to the crypto mogul, would be “custom scaling” for specialized applications that are used instead of the Ethereum Virtual Machine (EVM) to perform computations. Finally, he lists the “weakly trusted” scaling provided by Validium’s zk-proof technology.

Flipsider:

• When it comes to building custom applications on Ethereum, Buterin is unsure if the current Layer 2 model would be less efficient than Layer 3 structures.

Why you should care

The development of Layer 3 solutions could allow sub-ecosystems to evolve within Layer 2s, further boosting the performance of their base Layer 1 chains.

Alameda Research and Voyager reach agreement to return $200 million loan

On Monday, September 19, bankrupt cryptocurrency lender Voyager Digital petitioned New York Bankruptcy Court to authorize repayment of a $200 million loan on behalf of cryptocurrency trading firm Alameda Research.

Initiated in September 2021, the loan would involve 6,553 BTC (worth about $128 million at today’s prices), 51,204 ETH (about $70 million), and various other crypto tokens such as USDC, DOGE, VGX, LINK, LTC repaid. LUNC etc. on or before September 30th.

According to the filing, Alameda Research would see the return of the $160 million of tokens pledged as collateral once the loan is fully repaid. Voyager Digital, on the other hand, will be returning approximately $160 million worth of altcoins at the time of publication.

Alameda was once Voyager’s largest shareholder with an 11.56% stake valued at over $110 million. Both parties have now reached an agreement, with Alameda Research saying they are “pleased” about repaying the loan.

Flipsider:

• Voyager petitioned the court to redact information about Alameda’s crypto wallet, citing its disclosure as likely to generate “unwarranted speculation and attention related to account activity.”

Why you should care

Repaying the $200 million could potentially ease Voyager’s financial burden in its bankruptcy proceedings.

India’s largest exchange, WazirX, is delisting stablecoins to boost Binance’s BUSD

In an announcement mirroring Binance’s move two weeks ago, WazirX, India’s largest crypto exchange, has revealed plans to delist three top stablecoins.

In a blog post on Monday, September 19, WazirX announced that it has suspended deposit operations for stablecoins (USDC), Pax Dollar (USDP), and TrueUSD (TUSD) as part of its plans to leverage Binance’s stablecoin BUSD to increase.

WazirX also announced that its users have until Friday, September 23 to withdraw their balances in the three stablecoins. By October 5th, any remaining stablecoin balances will be automatically converted to BUSD at a 1:1 ratio.

Flipsider:

• The recent dispute between WazirX and Binance on Twitter (NYSE:) led to Binance CEO Changpeng Zhao revealing that Binance’s acquisition of WazirX was never completed.

Why you should care

WazirX explained that the decision was made “to improve liquidity and capital efficiency for users” and could increase the value of BUSD as it looks to climb the stablecoin rankings.

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