LianGuai Daily | Charlie Munger passes away, Genesis reaches a $200 million repayment agreement with DCG

Remembering Charlie Munger LianGuai Daily Reports on His Passing and Genesis' $200 Million Debt Settlement with DCG

Headlines

▌Genesis reaches $200 million repayment agreement with DCG, ends $620 million lawsuit

Digital Money Group (DCG) has reached a new repayment agreement with its bankrupt subsidiary, Genesis Global Holdco LLC, as part of the resolution to the $620 million lawsuit against DCG.

Genesis attorney Sean O’Neal stated on Tuesday’s hearing that the deal will provide approximately $200 million in funding to the bankrupt cryptocurrency lending institution in the coming weeks and requires DCG to make the unpaid amount by April 2024. If DCG defaults, Genesis can pursue any outstanding amount, according to court documents.

The proposed agreement aims to settle Genesis’ lawsuit filed in September to recover outstanding loans from its parent company. According to court documents, DCG has been making payments to Genesis since the lawsuit was filed, but as of November 28, DCG still owes its subsidiary $324.5 million.

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▌Charlie Munger passes away at the age of 99

Berkshire Hathaway announced today that Charlie Munger peacefully passed away in a hospital in California at the age of 99, just one month before his 100th birthday.

Munger was renowned for his role as Vice Chairman of Berkshire Hathaway and his close collaboration with Warren Buffett, making him a legendary figure in the financial and investment industry. Warren Buffett stated in a statement, “Without Charlie’s inspiration, wisdom, and involvement, Berkshire Hathaway would never have reached its current position.”

Munger served as Vice Chairman of Berkshire Hathaway and was one of its largest shareholders, with his stock holdings valued at approximately $2.1 billion as of March 2, 2022. As of early 2023, his net worth was approximately $2.5 billion. Munger had expressed criticisms of cryptocurrency and Bitcoin during his lifetime.

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Market Update

As of the time of writing, according to coinmarketcap data:

BTC recent trading price is $37,815.7 with a daily change of +0.79%;

ETH recent trading price is $2,048.59 with a daily change of +0.58%;

BNB recent trading price is $229.5 with a daily change of -0.31%;

XRP recent trading price is $0.6106 with a daily change of +0.33%;

DOGE recent trading price is $0.0809 with a daily change of +1.01%;

ADA recent trading price is $0.3856 with a daily change of +1.15%;

SOL recent trading price is $58.17 with a daily change of +3.76%.

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Policy

▌Singapore MAS Director: Bitcoin has no underlying assets and cannot be used for cross-border payments

The director of the Monetary Authority of Singapore (MAS), Ravi Menon, stated that the future currency system will include central bank digital currencies, tokenized bank liabilities, and “well-regulated” stablecoins. Regulatory agencies are moving towards establishing a stablecoin system fully supported by high-quality government securities or cash. Regarding stablecoins and virtual currencies in the current market, Menon pointed out that stablecoins are issued by non-financial institutions and lack proper regulation such as capital, liquidity, and reserves. Therefore, they cannot demonstrate their “stability” during market fluctuations and cannot be used for payment purposes unless they are strictly regulated stablecoins. As for Bitcoin, Menon stated that it lacks underlying assets and “no one uses it for savings, only people who hope to make quick money through speculation,” so it cannot be used for cross-border payments. Menon also mentioned that MAS, along with other regions, is jointly developing a global network for cross-border central bank digital currencies (mBridge). If future collaborations with regions researching related applications, such as tokenized deposits, are possible, it can help solve the problem of lengthy cross-border payment settlement and high costs.

▌SEC seeks public feedback on Franklin Templeton and Hashdex spot Bitcoin ETFs

According to public regulatory documents, the U.S. Securities and Exchange Commission (SEC) is seeking public feedback on the proposed spot Bitcoin ETFs from Franklin Templeton and Hashdex, asking about concerns regarding manipulation and fraud, as well as the fund’s relationship with Coinbase. Opinions need to be submitted within 21 days, and the rebuttal period will last for two weeks.

Bloomberg analyst James Seyffart pointed out that Franklin Templeton is the only issuer that has not submitted an updated S-1, possibly preparing for comprehensive approval in early January.

▌Judge allows Jump Crypto to secretly submit partial documents in SEC lawsuit

In the lawsuit filed by the U.S. Securities and Exchange Commission against Terraform Labs and its founder Do Kwon, Judge Jed Rakoff approved Jump Crypto’s motion to secretly submit certain materials during the discovery stage. The document states, “The Court reserves the discretion to maintain under seal any confidential materials bearing upon future motions practice or trial. Should such disclosure be contemplated, the Court will provide prior notice to counsel for Jump in order to allow counsel to be heard on any objections.”

Previously reported by LianGuai, Jump Crypto was accused of manipulating the price of the stablecoin TerraUSD, thereby earning $1.28 billion in profits.

▌U.S. judge approves $1.65 billion settlement agreement between Voyager Digital and FTC

In documents submitted to the U.S. Southern District of New York Court on November 28, a federal judge approved an order requiring cryptocurrency lending company Voyager Digital and its subsidiaries to pay a $165 million settlement to the U.S. Federal Trade Commission (FTC) as part of an agreement. As part of the agreement, Voyager will be “permanently enjoined and restrained” from marketing or offering products or services related to digital assets.

According to the settlement agreement, all parties related to Voyager must cooperate with FTC officials, including testifying in hearings, trials, and evidence disclosures. After one year, Voyager must also report on its compliance with the procedures and be subject to the commission’s supervision.

▌Insider: Coinbase receives subpoena related to Bybit from CFTC

The Block, citing insiders, reported that Coinbase sent emails to some customers stating that they had received a subpoena from the U.S. regulatory agency CFTC regarding Bybit. Coinbase stated in the email, “You do not need to take any action, but Coinbase may respond to the subpoena unless the motion to dismiss is delivered or other objections are raised to the subpoena that has been submitted to the court – including sending information about your Coinbase account to the Commodity Futures Trading Commission.”

According to its enforcement manual, the CFTC has the authority to conduct investigations, including voluntary statements and subpoenas. In an article in May, Coinbase stated that U.S. law requires Coinbase to collect information related to subpoenas.

▌Insider: Coinbase working with CFTC to determine scope of data sharing

An insider confirmed to Decrypt that Coinbase is working with the CFTC to determine which trading data can be shared.

Earlier, several foreign media outlets reported that Coinbase recently received a subpoena related to the cryptocurrency exchange Bybit. An insider confirmed to Decrypt that Coinbase did indeed send emails to customers this week regarding the subpoena, but did not provide detailed information on what specific information the CFTC requested, its relationship to Bybit, or how many customers might be affected by the subpoena.

In a letter to affected customers, Coinbase wrote that it may file a protest against the subpoena before the November 30 deadline, and reports indicate that the company is striving to limit the scope of shared data as much as possible.

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Blockchain Applications

▌Phantom integrates LI.FI for cross-chain swaps within Solana’s wallet

Phantom announced that it has integrated LI.FI to support its newly launched cross-chain swap feature within the wallet. This collaboration marks an important step in connecting Solana with the broader EVM ecosystem, allowing its millions of active users to easily transfer assets from EVM chains to Solana and vice versa.

▌SwapGPT’s on-chain order book and hybrid DEX aggregator go live on Aptos mainnet

SwapGPT announced that its on-chain order book and hybrid DEX aggregator are now live on the Aptos mainnet.

▌LayerZero launches modular blockchain Caldera

LayerZero announced the launch of the modular blockchain Caldera, bringing full-chain interoperability to Caldera rollups. LayerZero will now support full-chain message transmission between different Caldera rollups, enabling use cases to aggregate and compose across the entire ecosystem.

▌Chainlink Stake v0.2 is online, LINK pool expanded to 45 million coins

According to an official announcement, Chainlink has announced that the latest upgrade to its native staking mechanism, Chainlink Stake v0.2, is now live. The pool size for v0.2 has been expanded to 45,000,000 LINK, which represents 8% of the current circulating supply.

It is reported that the v0.2 upgrade will first provide existing v0.1 stakers with a priority migration period of 9 days, during which they can migrate their staked LINK and rewards to v0.2. The migration will then gradually expand to a wider range of participants, with early access and regular access starting on December 7th and December 11th respectively.

▌Nethermind: OP Deployment to be launched in next version

Blockchain infrastructure development team Nethermind stated on X platform that OP Deployment will be launched in the next version (V1.23.0), allowing any developer using the Nethermind client to run it on the OP Stack chain.

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Cryptocurrency

▌Franklin Templeton updates its Bitcoin ETF prospectus with the SEC

Bloomberg analyst James Seyffart stated on X platform that Franklin Templeton has updated its Bitcoin ETF prospectus with the SEC, keeping the possibility of physical and/or cash conversions in the document.

Earlier in the day, James Seyffart stated that Franklin Templeton was the only applicant who had not submitted a modified S-1 application. The SEC opened a comment period for their application, and Scott Johnsson, General Partner at Van Buren Capital, stated in an X post, “They may choose to do so sooner rather than later so they can have all applications approved by January 10th.”

▌Binance.US: Changpeng Zhao steps down as Chairman of the Board, no longer involved in governance

In a post on X platform, Binance.US announced that with CZ stepping away from Binance, he has decided to step down as Chairman of the Board and transfer voting rights through delegation arrangements. Binance.US will continue to be led by Norman Reed and the existing experienced management team. The platform has more than enough capital to continue building and developing, and we will approach this goal with new clarity and drive, while maintaining our commitment to customer priorities.

The team also stated that Binance.US was launched with the explicit purpose of serving U.S. customers in accordance with all U.S. rules and regulations, operating independently of Binance.com. Binance.US is not a party to the settlement agreement announced last week and does not have any pending enforcement issues with the DOJ, FinCEN, OFAC, or CFTC. The platform will continue to operate fully and is committed to providing customers with the same products and services as before.

▌Bitfinex: Bitcoin Circulation Speed at Historically Low Levels

Bitfinex analysts stated in a report that the circulation speed of Bitcoin is at historically low levels, indicating a significant change in market sentiment compared to the previous bear market cycle.

Circulation speed is an indicator that measures the frequency of digital asset trading or use for transactions. According to Bitfinex, low circulation speed indicates that digital asset holders are unwilling to sell, while buyers are seeking new supply. The analysts added, “Therefore, it is not surprising that Bitcoin reached a new high of $38,410 on November 24th this year, as holders are unwilling to sell and buyers are seeking supply.”

▌dForce Community Proposes Lowering TUSD Loan-to-Value Ratio to Zero

According to a new Unitus Improvement Proposal (UIP), the dForce community proposes to lower the loan-to-value (LTV) ratio of TUSD to zero. The proposal states that the TUSD stablecoin experienced a slight decoupling on November 22nd, dropping to 0.9955 before recovering its peg. The main cause of this event was an increase in sell orders, highlighting the potential impact of large order blocks on liquidity and the possibility of slippage. Therefore, the proposal suggests reducing the loan-to-value (LTV) ratio of TUSD to zero in order to effectively reduce potential risks and strengthen the protection of users and assets within the Unitus ecosystem.

▌Standard Chartered Bank: Bitcoin Could Reach $100,000 by the End of 2024

Standard Chartered Bank reiterated its prediction from April that Bitcoin (BTC) could reach $100,000 by the end of 2024 in its latest report.

The bank’s analyst Geoff Kendrick and his team wrote that the next catalyst will be the approval of several US spot Bitcoin ETFs, which they expect to happen “possibly earlier than expected”. The report states, “In short, everything is progressing as expected. Bitcoin’s dominance remains intact – its share of the overall market capitalization of digital assets has increased from 45% in April to 50%. We now expect a greater price increase before the halving, particularly with the launch of US spot ETFs earlier than expected. This suggests that BTC could reach $100,000 levels by the end of 2024.”

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Important Economic Trends

▌Banks Expected to Increase Support for Real Estate Companies, Credit Allocation Will Target Key Areas and Weak Links Next Year

“During this period, we have started visiting and researching some real estate companies, mainly to understand their demands and current difficulties, and see if we can find suitable business cooperation opportunities.” A responsible person from a state-owned banking company told reporters. Looking ahead to the layout of credit allocation next year, several banks indicated that they will continue to increase precise support for key areas and weak links in the national economy. Inclusive finance, green finance, manufacturing industry, private economy, rural revitalization, and other sectors will still be the focus of credit support. (China Securities Journal)

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LianGuai Encyclopedia

▌What is the Pyth network?

Similar to Chainlink, Pyth is an oracle service – a platform that provides data to blockchains. However, Pyth’s market-centric “real-time data” feed is significantly faster than Chainlink, which should make the service better suited for certain financial use cases.

Disclaimer: LianGuai, as a blockchain information platform, publishes articles for informational purposes only and should not be considered as actual investment advice. Please establish a correct investment philosophy and always increase your awareness of risks.

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