🏓 Crypto's SEC Plot Twist?

Hi folks. Paypal's got its own stablecoin, Elon Musk says there won't be an X-token, Huobi's facing rumors of insolvency, and SEC's most likely to approve Bitcoin ETFs. Dive in.

The Huobi allegations

According to Adam Cochran’s investigative efforts, the respectable investor and Sherlock Holmes’ crypto cousin 🔍 alleges that the Huobi exchange holds only $90 million of USDT and USDC assets - much less than the $630 million reported in Huobi’s Merkle Tree Audit. The difference is allegedly due to Justin Sun - a member of Huobi’s Global Advisory Board and the exchange’s de facto puppet master - utilizing users’ funds for funding his DeFi applications. What’s more, Cochran also says users’ ETH holdings were converted into sETH without their knowledge or consent, and Sun’s got his paws on half of the 141,000 total. And even when Sun’s DeFi apps are considered, Sun’s using Huobi as a personal piggy bank, as only half of Huobi’s obligations are accounted for. Despite Huobi’s assurance that operations are normal, Cochran says that, while people lie 🤥, blockchains don’t.

Conclusion: While Huobi’s facing rumors of insolvency and checking its pockets for spare change, the overall outlook is bright. Stablecoins could be the backbone of the payments system. And SEC will likely start singing a different tune and stay current with innovations in the financial sector. It’s still too early to pop the champagne, but there’s a reason for optimism.

See you next week, folks! Thanks for being with us. Brought to you by Yana and Aleksandar :)

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