Skepticism over crypto rally by JPMorgan, new crypto exchange by ex-FTX counsel, FTX's billion-dollar lawsuit, Tether's USDT surge.
JPMorgan Report Skeptical of Current Crypto Rally

JPMorgan Report Skeptical of Current Crypto Rally

Skepticism over crypto rally by JPMorgan, new crypto exchange by ex-FTX counsel, FTX's billion-dollar lawsuit, Tether's USDT surge.

Nov 14, 2023
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Welcome to the first edition of this week’s Datawallet Daily. We are excited to share the biggest stories that have shaped the crypto world in the past day.

JPMorgan Report Skeptical of Current Crypto Rally

JPMorgan’s recent report expresses skepticism about the current crypto market rally, driven by anticipation of U.S. approval for spot bitcoin ETFs. The bank challenges the bullish sentiment, arguing that new ETF approvals are unlikely to attract fresh capital, but rather redirect existing funds from products like Grayscale’s Bitcoin Trust and bitcoin futures ETFs. 

JPMorgan also doubts that recent legal setbacks for the SEC will lead to significant regulatory easing in the crypto industry, especially following the FTX fraud. The report further dismisses the potential impact of the upcoming bitcoin halving, suggesting its effects are unpredictable and likely already factored into prices.

Ex-FTX Lawyer to Lead New Crypto Exchange

Can Sun, former general counsel of FTX, has emerged as a leading figure behind a new crypto exchange launched by Backpack, a Web3 digital wallet company. Alongside Backpack’s CEO Armani Ferrante and other ex-FTX staff, Sun aims to attract investors at a $100 million valuation. 

This venture follows Sun’s testimony against ex-FTX CEO Sam Bankman-Fried, under a no-prosecution agreement. The exchange, operating under Trek Labs in Dubai, plans to launch in beta soon and is regulated by Dubai’s VARA. 

Ferrante, who previously lost nearly $20 million due to FTX’s collapse, is looking for a comeback with this new venture. 

FTX Files $1 Billion Lawsuit Against Bybit 

FTX’s legal team is taking Bybit to court, along with its investment arm Mirana, and various top executives. They are after nearly $1 billion, accusing Bybit of using its VIP status to withdraw massive funds from FTX before its downfall. 

The suit claims Bybit is now blocking FTX from accessing over $125 million on its exchange. It also involves a saga with, Ethereum rollup BitDAO, allegedly controlled by Bybit but posed as community-driven. FTX accuses Bybit of manipulating BitDAO’s transition to Mantle and blocking FTX’s conversion of BitDAO tokens. 

FTX is fighting for both compensatory and punitive damages related to these actions and the blocked asset withdrawals.

Tether Mints 4B USDT in Four Weeks

Tether, a leading stablecoin issuer, has minted 4 billion USDT in the last month, representing nearly 18% of all USDT issued in 2023. The recent minting includes 1 billion USDT on the Tron blockchain and 2 billion USDT on Ethereum.

Tether CTO Paolo Ardoino clarified these are for inventory replenishment. This year, Tether has minted 22.75 billion USDT, with a higher proportion on the Tron blockchain. Amidst these issuances, Tether also conducted significant coin burnings.

In addition to minting new coins, Tether is gearing up for major ecosystem expansions, as announced by CEO Ardoino on Twitter. The company aims to roll out five new projects by 2024, with some poised to potentially displace well-known centralized Web2 services.

Other breaking news

Wrapping up

Alright, everyone, that is a wrap on today’s roundup. Despite the ongoing rally in crypto prices, JP Morgan remains skeptical. We’ve encountered plenty of crypto skeptics throughout Bitcoin’s history, yet it keeps on growing. The FTX saga rolls on, with former employees launching new exchanges and its legal team pursuing a $1 billion claim against Bybit. Meanwhile, Tether is busy minting more USDT, which could potentially be funneled into crypto soon. Stay tuned for more updates!