Crypto Three Things (11/29)

Tuesday, Nov 29th 2022


"I find that oftentimes the most ironic and entertaining outcome is the most likely. And the most entertaining outcome would be Dogecoin becoming the global new earth currency." — Elon Musk

1) BlockFi Sues FTX Founder: BlockFi is taking on Sam Bankman-Fried in a looming court battle over his Robinhood shares. The lawsuit alleges that the FTX chief pledged them as collateral when he was dealing with the newly-bankrupt digital asset lender. In May, Bankman-Fried purchased 56.2M shares, or a 7.6% stake, in Robinhood, which BlockFi now demands to be turned over as part of a loan agreement.

Titan’s Takeaway: The rift between BlockFi and its touted rescuer underscores how fragile crypto ventures’ links can be. On the other hand, the dispute highlights the interconnectedness between industry players and the troublesome process of sorting out the messy relations.

2) Kraken Settles Violations: Crypto trading venue Kraken reached a settlement with the U.S. Treasury Department over sanction violations related to serving customers in Iran. The San Francisco-based company will pay a $362,159 fine for allowing Iranian users to conduct trades worth more than $1.68M between October 2015 and June 2019. In addition, Kraken will invest $100,000 in sanctions compliance controls.

Titan’s Takeaway: Maintaining a tidy reputation, especially for crypto exchanges, is crucial in the current cycle marked by industry difficulties and a relatively low level of trust. Full compliance with government agencies will help not only Kraken but win back users to the space.

3) Dogecoin Back in the Spotlight: Dogecoin, the cryptocurrency which started as a satirical homage to Bitcoin, added roughly 40% to its valuation over the past week. Rumors ran rampant that the Elon Musk-beloved meme coin may get included as a Twitter payment method after a leaked transcript reported by Vox discussed adding crypto payments as part of an overhaul initiated by the social media platform’s new billionaire owner.

Titan’s Takeaway: Now that Elon Musk is pulling the strings at Twitter, few would be surprised to see Dogecoin incorporated as the platform’s native crypto payment method. But for an industry battling schemes and uncertainty, Dogecoin probably shouldn’t be touted as its bright light.

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