Daily Archives: August 2, 2022

Binance US Delists Crypto Token ‘out of an Abundance of Caution’ After SEC Says It’s a Security – Regulation Bitcoin News

Binance US Delists Crypto Token ‘out of an Abundance of Caution’ After SEC Says It’s a Security – Regulation Bitcoin News

Binance’s U.S. platform is delisting crypto token amp after the Securities and Exchange Commission (SEC) declared it a security. Another crypto exchange, Coinbase, disagreed with the regulator, arguing that the token is not a security.

Binance Delists AMP ‘out of an Abundance of Caution’

Binance’s U.S. exchange (Binance US) is taking action to ensure that crypto tokens the U.S. Securities and Exchange Commission (SEC) has declared to be securities are not listed on its platform. The SEC recently said in a lawsuit against a former Coinbase product manager that nine crypto tokens are securities. They are AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM.

Binance US explained:

In its suit, the SEC named nine digital assets that it alleges are securities. Of those nine tokens, only amp (AMP) is listed on the Binance.US platform.

“Out of an abundance of caution, we have decided to delist the AMP token from Binance.US, effective August 15, 2022,” the crypto exchange announced Monday.

Binance US detailed that on Aug. 15, AMP deposits on its platform will be closed at 9:00 p.m. EDT and the AMP/USD trading pair will be removed at 11:00 p.m. EDT. “All trade orders will be automatically removed after trading ceases for the trading pair,” the announcement states.

The exchange clarified that it is taking this step until more clarity exists around the classification of the cryptocurrency, adding that the coin could resume trading at some point in the future.

The price of AMP fell sharply following the delisting announcement by Binance US. At the time of writing, AMP is trading at $0.0081411, down 11% in the past 24 hours.

Binance US Delists Crypto Token 'Out of an abundance of caution' After SEC Calls It a Security
AMP price chart on Binance. Source: Binance.com

While Binance US has taken a cautious approach to crypto tokens that may be deemed securities by the SEC, the Nasdaq-listed cryptocurrency exchange Coinbase has chosen to fight the securities regulator.

Following the lawsuit against its former employee, Coinbase published a blog post stating that it does not list any securities. The exchange’s chief legal officer, Paul Grewal, wrote: “Coinbase does not list securities on its platform. End of story.” The executive also criticized the SEC, stating: “Instead of having a dialogue with us about the seven assets on our platform, the SEC jumped directly to litigation.”

Last week, reports surfaced that the SEC could be investigating Coinbase over its listings of crypto securities.

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Binance, binance amp, binance coinbase, binance delisting tokens, binance delists, binance delists tokens, Binance.us, Coinbase, delisting tokens, sec declares securities, sec securities

What do you think about Binance delisting AMP after the SEC said it’s a security? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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How Summer Is Turning Into A Short-Lived Altcoin Season

How Summer Is Turning Into A Short-Lived Altcoin Season

Ethereum Classic (ETC), Filecoin (FIL), and Lido DAO (LIDO) have been dominating the altcoin sector as they outperform Bitcoin and other large cryptocurrencies. The first crypto by market cap has been recording its best month in 2022 but is still far from the monthly average return from these tokens.

According to Arcane Research, altcoins have seen an average of 40% performance over the past month as the crypto market experienced a “classic relief rally”. July has been a historical green month for digital assets.

During this period, the nascent asset class has seen the expansion of two critical sectors, decentralized finances (DeFi) and non-fungible tokens (NFTs). As seen below, the rally has been particularly positive for mid-cap cryptocurrencies.

Source: Arcane Research

This market rally has translated into a reduction of Bitcoin and stablecoins market share, suggesting an increase in risk appetite for crypto investors, and more strength for Ethereum. Arcane Research noted:

Ether’s lack of strength relative to bitcoin last week has been reversed this week, as ether has increased its market share by 0.43 percentage points, while bitcoin has lost 0.22 percentage points. Notably, bitcoin and stablecoin are losing market share this week (…).

Ethereum might be critical for understanding the current price action. The cryptocurrency has a tentative deployment date for “The Merge”, the event that will combine its execution layer (Proof-of-Work) with its consensus layer (Proof-of-Stake).

Altcoins, such as Lido Dao and Ethereum Classic, might benefit from the imminent shift in this blockchain. The former cryptocurrency has rallied because more users want to stake their ETH and participate in Ethereum (2.0) consensus model to receive rewards.

Ethereum Classic has seen positive performance because it might become a safe haven for ETH miners. This sector faces inevitable destruction as ETH’s new consensus model will validate transactions with a different mechanism.

Ethereum ETH ETHUSDT
ETH’s price moving sideways on the 4-hour chart. Source: ETHUSDT Tradingview

Will The Merge Provide Altcoins With Further Bullish Momentum

In that sense, and up to “The Merge” mainnet launch, altcoins might continue to extend their bullish trajectory. Data from a pseudonym user highlights the importance of this event and why it might inject fresh capital into this ecosystem further driving the price of Ethereum and the altcoin sector.

The user claims this cryptocurrency will become Environmental, Social, and Governance (ESG) friendly. This will provide new institutions with the confidence to bet on Ethereum’s long-term success. The user said:

No matter your personal thoughts on ESG, if you want mainstream cryptoasset adoption controlling the narrative around emissions and sustainability is essential. Bitcoin has decided to ignore the issue; Ethereum unlatching itself from PoW should be a positive for both assets.



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Michael Saylor will step down as MicroStrategy CEO but remain as executive chair

Michael Saylor will step down as MicroStrategy CEO but remain as executive chair

Bitcoin maximalist Michael Saylor has announced that he will step down as the chief executive officer of MicroStrategy, the business intelligence firm he helped co-found in 1989.

In a Tuesday notice on its second quarter earnings for 2022, MicroStrategy said Saylor would be assuming the new role of executive chair at the company, while president Phong Le will become CEO. The changes are expected to take effect on Aug. 8.

“I believe that splitting the roles of Chairman and CEO will enable us to better pursue our two corporate strategies of acquiring and holding Bitcoin and growing our enterprise analytics software business,” said Saylor.

Le was MicroStrategy’s chief financial officer from August 2015 to July 2019 before combining his responsibilities with those as president of the company until May 2022, when he took on the role full time. According to MicroStrategy, Le will continue his duties as both president and CEO “handling day-to-day execution of the company’s corporate strategies” while Saylor will focus on “Bitcoin acquisition strategy and related Bitcoin advocacy initiatives” in his role as executive chair.

MicroStrategy reported it held more than 129,699 Bitcoin (BTC) — worth roughly $2 billion after considering the company’s cumulative impairment losses — as of June 30, with total revenues for the second quarter of 2022 coming in at $122.1 million compared with $119.3 million in the first quarter. The business intelligence firm disclosed to the U.S. Securities and Exchange Commission that it had acquired 480 BTC for $10 million in June.

Related: BTC bull Michael Saylor: Ethereum is ‘obviously’ a security

Amid the market downturn in June — in which the price of Bitcoin fell under $18,000 — Saylor said MicroStrategy would “continue to HODL through adversity,” adding that the firm had prepared for volatility and structured its balance sheet accordingly. According to the soon-to-be former CEO, this strategy will allow MicroStrategy to post collateral even “if the price of BTC falls below $3,562” — an event that happened briefly during the market crash in March 2020.

‘Nothing issue’ — MicroStrategy CEO plans to hodl Bitcoin ‘through adversity’

Investment banking firm Jefferies reported on July 26 that it had downgraded MicroStrategy’s stock to underperform from hold, with a price target of $180. At the time of publication, MSTR shares traded at $278.26, having risen by more than 48% in the last 30 days.