DCG on tight deadline, new Binance acquisition, Silvergate lawsuit, Solana pumps – CryptoSlate Wrapped Daily
Digital Currency Group has only until Jan. 8 to resolve Gemini issues, Binance finalizes acquisition, and much more
The biggest news in the cryptoverse for Dec. 22 is dominated by lawsuits, bankruptcies, and acquisitions as the top people in the industry duke it out on a big day for the bear market in this CryptoSlate Wrapped Daily.
CryptoSlate Top Stories
Digital Currency Group gets Jan. 8 deadline to resolve Gemini earn issues
Gemini co-founder Cameron Winklevoss accused Digital Currency Group (DCG) CEO Barry Silbert of bad faith tactics over the $900 million debt owed by Genesis trading to Earn users.
In a Jan. 2 open letter, Winklevoss said Silbert employed stalling tactics and refused to meet stakeholders to resolve issues surrounding the situation.
The exchange co-founder gave Silbert a Jan. 8 deadline to resolve the issues.
Barry Silbert responded that DCG did not borrow $1.675 billion from Genesis. He also said DCG has no outstanding debt to Genesis, and the subsequent loan maturity is in May 2023. Silbert added:
“DCG delivered to Genesis and your advisors a proposal on December 29 and has not received any response.”
However, Winklevoss insists that DCG owes Genesis. Cameron told Silbert to stop pretending that he and DCG were “innocent bystanders and had nothing to do with creating this mess.” He further asked how DCG owes Genesis $1.675 billion if it didn’t borrow the money.
Binance reportedly finalizing acquisition Korean crypto exchange Gopax
Binance is reportedly taking the final steps in acquiring Korea-based crypto exchange Gopax.
Binance is completing due diligence (DD) on the acquisition and finalizing the process, according to Decenter.
It is believed that the deal was originally set to be announced in 2022 but was delayed due to consultations over equity value calculations.
Binance purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company. However, it is reported that Binance plans to “maintain this representative system for the time begin for stable management.”
However, the entry of Binance and Gopax into the market could also lead to increased competition and market fluctuations, according to Decenter.
As of press time, neither Binance nor Gopax have commented on the acquisition.
Solana starts 2023 with a bang with 14% spike
Solana began the New Year on a high, gaining 14% over the last 24 hours.
Analysis of the 15-minute SOL chart showed a distinct lack of price action until 07:00 (GMT) on the first working day of 2023.
A massive 20% spike occurred at this point, leading to a peak price of $12. However, the next candle closed at $11.18, giving up approximately half of those gains.
Silvergate Capital hit with class action lawsuit for Securities Law violations
Pomerantz LLP — a firm dedicated to representing the rights of defrauded investors — filed a class action lawsuit against Silvergate Capital over alleged violations of the Securities Exchange Act.
The lawsuit was filed in the US District Court for the Southern District of California on behalf of all individuals and entities who purchased or acquired Silvergate securities between Nov. 9, 2021, and Nov. 17, 2022 (the “Class Period).
As a result of the alleged actions, Silvergate’s Class A common stock price fell significantly on two separate occasions during the Class period.
Shareholders who purchased Silvergate securities during the Class period have until Feb. 6 to ask the Court to appoint them as a Lead Plaintiff for the class.
Research: Short-term Bitcoin holders fell to its lowest level at 15% of the supply
The Supply Last Active metric looks at the amount of inactive Bitcoin over a given time period. Analysts infer that the more inactivity exists, the more BTC is being hodled, thus reducing sell pressure and acting as a tailwind for bullish price action.
CryptoSlate’s analysis of Glassnode data showed the percentage of supply held for less than six months has fallen to its lowest level.
Analysis of past data showed younger coins typically come in volume during two key events:
- Bull markets as longer-term investors spend and divest into market strength.
- Capitulation sell-off events where widespread panic brings coins of all ages back into liquid circulation.
Biggest Gainers (24h)
- Creditcoin (CTC) +20.39%
- Lido DAO Token (LDO) +14.45%
- Solana (SOL) +13.74%
Biggest Losers (24h)
- Aragon (ANT) -5.16%
- HEX (HEX) -4.01%
- Toncoin (TON)-2.48%