This Week in Crypto

March 3, 2023

Welcome to the third month of 2023. As the year is almost one-quarter passed, there have been interesting developments within the crypto industry. In this week’s issue of “This Week in Crypto”, we are looking at the major headlines that either had the most impact on the market or that we believe will have a significant effect on the crypto industry.

Key Points

• Silvergate brings uncertainty to the crypto market
• Overall stablecoin supply decreases
• MXC to launch Initial Sensor Offering (ISO)

Silvergate: What is Going On?

Silvergate, a popular, crypto-friendly institutional bank of choice for multiple giants within the crypto ecosystem, has announced that it may fail to meet the deadline for releasing the 10-K form. Officially, Silvergate has admitted that it is looking for a 2-week extension in submitting the 10-K form. The 10-K form is a requirement from the SEC for all publicly traded companies within the United States and is used to disclose the previous calendar year’s financial standing of a company.

The announcement from Silvergate was met with increased skepticism towards the company’s operations and management, resulting in mainstream speculation that Silvergate may be facing operational difficulties that may result in its demise. This speculation has resulted in the mass circulation of rumors of Silvergate in a bank run.

Several crypto giants, including Coinbase, were quick to sever their ties with Silvergate, publicly informing their users that they will no longer be processing financial transactions to or from Silvergate, effective immediately. This resulted in a ripple effect, resulting in the price decrease of BTC, ETH, and most crypto assets.

The path forward for Silvergate is currently unclear. We recommend that all users keep a close eye on the next developments, and refrain from further exposure to Silvergate.

Stablecoin Supply Decreases

According to the report from Glassnode, the recent trend of decrease in stablecoin supply within the market has finally crossed over net zero, and now more stablecoins are leaving the market. This decrease in stablecoin supply within the market is often a bearish sign since it indicates that investors are converting their stablecoin into fiat currency, signaling a medium-term exit from the crypto market.

However, it should also be noted that stablecoin supply is not the sole driver of the market. Investors should take into consideration macroeconomic factors as well.

Initial Sensor Offering (ISO)

MXC has announced an imminent launch of Initial Sensor Offering (ISO), a new type of launch method for Web3-native IoT projects. A fruition of years of effort, ISO is expected to onboard early-stage projects to the MXC data network, creating organic demand for miner connectivity, certification, and the MXC token.

Projects launching via ISO will not only use the MXC data network deployed by the miners but also the project tokens will be transacted via the MXC network, resulting in gas fees that must be paid in MXC tokens. This is expected to create a further increase in the token utility of MXC.

We recommend that the readers pay close attention to the recent information released about the ISO, and continue to follow up on further developments in order to fully capitalize on the opportunity.