BlockchainReporter Monthly News Review: Top 6 Crypto News from February 2024

In February’s dynamic cryptocurrency landscape, Bitcoin and Ethereum derivative contracts surged to new heights, reflecting a bullish market sentiment. Secondly, Ripple strengthened its regulatory compliance stance by acquiring Standard Custody & Trust Company, solidifying its position in the digital asset sector. Meanwhile, GOP Senators, led by Sen. Ted Cruz, spearheaded efforts against the Federal Reserve’s central bank digital currency (CBDC). OKX’s expansion into Argentina highlighted its commitment to global accessibility and security in the crypto market. On a darker note, the arrest of Terraform Labs’ former CFO, Han Chang-joon, shed light on fraudulent activities, impacting Terra ecosystem’s reputation. Lastly, PancakeSwap’s “Affiliate” Initiative showcased its adaptability in the decentralized finance (DeFi) space, addressing scalability challenges and reinforcing its leadership position across different blockchains.

Bitcoin and Ethereum Contracts Reach New Heights

In February, Bitcoin and Ethereum derivative contracts hit their highest funding rates since April 2021. This record signals a surge in market activity and investor interest. Major exchanges like Binance, OKX, and Bybit reported spikes in funding rates. BTC contracts showcased annualized rates over 85%, indicating a premium for long positions. Ethereum contracts were even more notable, with Binance’s ETH contracts exceeding an annualized rate of 110%. These heightened funding rates reflect bullish sentiment in the market, with investors willing to pay premiums for exposure to rising prices.

The cryptocurrency market is experiencing a bullish trend, with Bitcoin surpassing $64,000 and currently standing at $62,200, accompanied by a doubling in trading volume to $91.69 billion and a market capitalization of $1.23 trillion. Ethereum has also seen significant growth, reaching $3,462, with a notable increase in trading volume to approximately $37.06 billion and a market capitalization of $415.83 billion. These price surges and derivative funding rates underscore the growing confidence in digital assets, with investors closely monitoring market indicators to adjust their strategies accordingly.

Ripple Boosts Regulatory Measures with Standard Custody & Trust Company Purchase

Ripple is upping its game in regulatory compliance by announcing its acquisition plans for Standard Custody & Trust Company. This move signifies Ripple’s commitment to adhering to regulations and advancing in the digital asset sector. By integrating Standard Custody’s regulated platform, Ripple strengthens its compliance capabilities and sets the stage for developing new products.

The acquisition aligns with increasing institutional interest in cryptocurrencies and blockchain, fueled by secure, regulated offerings. It enhances Ripple’s regulatory credentials, adding to its licenses like the New York BitLicense and a Major Payment Institution License from the Monetary Authority of Singapore. Pending regulatory approval, this strategic expansion positions Ripple as a leader in delivering secure and compliant blockchain solutions globally.

GOP Senators Lead Charge Against Central Bank Digital Currency

On 26^th of Feb, Senate Republicans, led by Sen. Ted Cruz, ramped up efforts to block the Federal Reserve from launching a central bank digital currency (CBDC), a pivotal issue in the 2024 presidential race. Sen. Cruz and fellow GOP senators introduced the Central Bank Digital Currency Anti-Surveillance State Act, aiming to prevent the Fed from issuing a CBDC without explicit congressional approval. Concerns center on the potential for a U.S. CBDC to enable government surveillance of citizens’ financial activities, echoing fears of China’s digital yuan.

The move against a CBDC has drawn support from organizations like Heritage Action for America and the American Bankers Association. However, the Biden administration is exploring the benefits of a CBDC, including improved payment affordability and accessibility, indicating potential resistance to the proposed bill. This debate extends beyond finance, shaping up as a significant political issue with implications for the upcoming presidential race, where high-profile Republicans are leveraging anti-CBDC sentiment as a stance against government intrusion.

OKX Crypto Exchange Launches in Argentina to Expand Global Access and Security

On February 7th, OKX, a leading cryptocurrency exchange, debuted its advanced platform and Web3 services in Argentina. The move is aimed to tap into Latin America’s burgeoning crypto market. This move aligns with OKX’s goal of enhancing global accessibility and security for digital assets. With Argentina emerging as a cryptocurrency hub due to its growing community and openness, OKX’s entry promises to offer a range of domestic services supported by its innovative blockchain policies and vibrant ecosystem.

OKX’s expansion into Argentina underscores its commitment to security and trust, leveraging its established reputation as a trusted platform serving over 50 million users worldwide. By offering advanced features for traders and robust security measures, OKX aims to provide a reliable and secure environment for cryptocurrency trading in Argentina. Additionally, OKX’s focus on user security and trust, demonstrated through regular proof of reserves reports. Moreover, it emphasizes its dedication to fostering long-term relationships with Argentine users for safe and sustainable trading experiences.

Former CFO of Terraform Labs Arrested for Fraud

Han Chang-joon, the former Chief Financial Officer of Terraform Labs, was arrested by South Korean authorities over allegations of deceptive marketing tactics. He is accused of illegally earning around $40 million through false promotions of Terra’s stablecoin. This arrest sheds light on ongoing investigations into Terraform Labs’ activities. Han, along with Terraform Labs co-founder Do Kwon, face serious charges for using fake passports. Seoul prosecutors claim Han misled customers by promoting Terra as a legitimate payment method despite regulatory issues. Recent court proceedings revealed evidence contradicting Terra’s claims about its usability, implicating its executives further in fraudulent practices.

Han also faces accusations of unauthorized Luna cryptocurrency sales and unlawfully sharing Chai Pay clients’ personal data with the Terra blockchain. While Han’s legal proceedings are underway in South Korea, Do Kwon’s fate remains uncertain as he is detained in Montenegro, awaiting a decision on his extradition to either the United States or South Korea. The case continues to attract regulatory and investor attention, impacting Terraform Labs and the cryptocurrency market at large.

PancakeSwap Expansion Across Blockchains with New Initiative

PancakeSwap, a major player in decentralized finance (DeFi), has launched a new project to expand its reach across different blockchains. This decision comes in response to the increasing demand for DeFi services and the rapid growth of blockchain technology.

Known as the “Affiliate” Initiative, this program aims to address scalability challenges faced by PancakeSwap due to its significant growth. With a presence on nine blockchains and a leading position in trading volume on many, PancakeSwap is encountering difficulties keeping up with the rising number of new blockchains. The Affiliation Program invites and approves PancakeSwap forks on chains where the platform is not yet established, provided they adhere to certain criteria such as following PancakeSwap’s core platform and tokenomics model, supporting native tokens, and contributing value to PancakeSwap and its community. This initiative demonstrates PancakeSwap’s commitment to leading the DeFi space and adapting to the evolving blockchain landscape.