This Week in Crypto

February 10, 2023

Welcome to this episode of “This Week in Crypto”, where we condense the most important crypto news for our readers. In this week’s issue, we are taking a look at some circulating rumors, confirmed news, and some insight into what the future holds.

Key Takeaway

• Rumors of SEC ban on staking brings bearish sentiment
• 3AC’s new venture triggers community backlash
• Is Ethereum the next to fall?
• MXC Data Network launch nears

Is SEC Banning Staking?

Cryptocurrency staking has always been one of the hot issues for the US SEC. While there were some worries from the SEC on whether the previous transition of the Ethereum blockchain from a Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) consensus mechanism would classify Ethereum as a security, the staking debate had gone relatively quiet for some time. Then this week, an announcement was made confirming that SEC has taken action against Kraken’s staking services. Kraken has agreed to pay a fine and halt staking services for its US residents.

It is unclear whether the SEC is banning staking. Even members of the SEC have criticized the action, stating that a clear guideline must be established before taking action against involved parties. Certain key members of the crypto industry have also spoken against the action.

It is also noteworthy that SEC’s grounds aren’t on staking. It is on staking programs that allow the platform to take control of the user’s funds, indicating that this action by SEC is potentially targeted towards the ongoing legal battle involving Gemini and BlockFi.

Unlike the staking program offered by Kraken or Gemini, MXC tokens staked on the DataDash app are maintained by a third-party custody solutions provider. This means that MXC Foundation never holds full control over the user’s staked tokens, and moreover never uses MXC tokens as a form of collateral against loans.

3AC’s New Venture Met with Criticism and Fury

3 Arrows Capital — commonly known as 3AC — is a failed venture capital that created billions of dollars of loss in the crypto market, sending multiple institutions into bankruptcy and millions of investors into a financial struggle. In an official statement, it was confirmed that 3AC’s former founders Su Zhu and Kyle Davies are officially launching a new cryptocurrency exchange. It was further confirmed that they managed to complete a fundraising round as well.

While most people in the crypto community have simply rejected the idea, some have gone even further to suggest that the new cryptocurrency exchange is bound to fail. Currently, the exchange website is made public and a waiting list has started.

Is Ethereum Next to Fail?

SEC’s recent, tough stance on staking is ringing the alarms for cryptocurrency projects that rely on the Proof of Stake (PoS) consensus mechanism — such as Ethereum (ETH), which switched from Proof of Work (PoW) to PoS (PoS) in September 2022. At the time of Kraken’s settlement with SEC, the price of Ethereum fell by 6.5%.

Meanwhile, technical indicator analysts are also charting a potentially bearish scenario for ETH. After a descending trend on the daily chart, the price of ETH is not looking too bullish. Some analysts believe that ETH will drop below its 200-day EMA support, and drop even further to around $1200.

While the outcome may depend more on the next official announcement from the US SEC than on technical factors, potential buyers should allocate further resources to research.

MXC Data Network Launch is Imminent

Those following MXC Foundation on social media may have seen the recent update on the current progress of the MXC Controller. Positioned to become the entry point for devices, miners, institutions, businesses, and individuals to onboard the MXC data network, MXC Controller is the start of the full rollout of the MXC data network.

The launch of the MXC data network will allow thousands of miners to provide connectivity and certification to millions of devices and billions of data packets around the world. Miners can expect to unlock further benefits, while token holders can look forward to enjoying even more utility.

Make sure to follow MXC on Twitter and subscribe to the MXC YouTube channel to not miss out on important future updates.