❌ Tether will stop issuing new USDT on the EOS and Algorand networks starting today, citing a “re-evaluation of the network security architecture” as the basis for this decision.

Although USDT will no longer be minted on EOS and Algorand, existing coins will be redeemable within 12 months

However, the total circulating supply of USDT in these blockchains is slightly more than 90 million (75 million – EOS; 17 million – Algorand)

If you hold USDT on these networks, it is better to swap now through the bridge, otherwise there will not be enough liquidity for the exchange later

Thus, USDT is currently issued on 14 blockchains, with Tron and Ethereum accounting for 97% (110 billion) of the supply

🇰🇷 A South Korean financial institution published a report in which it criticized Bitcoin ETFs, saying that “they do more harm than good.”

Despite the ban on issuing crypto ETFs in Korea, investors can purchase shares of US or Hong Kong BTC ETFs through international brokers

“The approval of [such] products may lead to side effects such as decreased confidence in markets (due to BTC volatility), resource allocation inefficiencies, increased risk exposure, and weakened financial stability.”

In simple terms, South Korea's priority goal now is economic recovery after Covid, and it is more profitable for the government for free money to go to local companies rather than BTC, even if in the form of ETFs

❓ Panic over payments to creditors of $9 billion from the Mt.Gox exchange, which went bankrupt after being hacked in 2014. What to expect?

Today it became known that Mt.Gox will begin paying its former clients obligations in Bitcoin and Bitcoin Cash in early July. The total refunds will be 143,000 BTC, 142,000 BCH and $432 million in fiat, for a total of $9 billion

Eric Balchunas, an ETF analyst, grabbed his head as this amount exceeded half of the inflows into the BTC ETF

However, an opinion from a Galaxy Research analyst indicates that things may not be so bad:

1️⃣ After the hack in 2014, Mt.Gox was able to recover only 15% of the lost funds, which at that time amounted to $63 million (at the price of BTC), while the current payments are equal to $9 billion (140 times more).

2️⃣ To receive an early payment (in 2021, the investment company Fortress began buying out creditors’ claims for 80% of the amount, and this year it became clear that by October 31 all early payments, already at the expense of the exchange, will be completed), creditors must agree to reduction of the amount by 10%, and 75% of all BTC will go this way (95,000 BTC)

3️⃣ Of this, 20,000 BTC is owed to claims funds [buying claims at a discount], 10,000 BTC to the Bitcoinica exchange [during its bankruptcy, some of the funds were stored on Mt Gox], and the remaining 65,000 BTC to individual creditors

That is, the media exaggerate when they write about the distribution of 140,000 BTC. In fact, 25% of the “waiters” may remain so for several more years until all litigation is settled

4️⃣ Alex believes that many of them are long-term holders and will continue to hold, since they have been waiting for 10 years

What about claim funds - they are looking to buy BTC at a discount, not arbitrage

🤑 Regarding Bitcoin Cash, the situation seems even worse, since lenders may not have the motivation to hold BCH, given that they did not buy the coin, but received it after the 2017 fork, and in conditions of low liquidity on exchanges (distribution will be on Kraken and Bitstamp) , this can lead to negative growth 📉

Even if Alex is right, the market reacted extremely negatively to this news, because it is impossible to predict in what volume people will sell, especially with a profit x140

🪙 Last week, investment crypto funds faced an outflow of $584 million

This particularly affected BTC funds, from which they withdrew $630 million, and ETH-based products also suffered losses of $58 million.

But in mixed products (consisting of a basket of cryptocurrencies) the inflow amounted to $98 million