Trump’s CBDC ban to boost crypto adoption, Musk’s dad plans $200M memecoin raise: Finance Redefined

Trump’s CBDC ban to boost crypto adoption, Musk’s dad plans $200M memecoin raise: Finance Redefined

US President Donald Trump’s latest executive order may bolster institutional cryptocurrency adoption, as his ban on central bank digital currencies (CBDCs) signals a “bet” on the existing crypto ecosystem, industry watchers told Cointelegraph.

Capitalizing on the recent success of the Trump family’s memecoins, Elon Musk’s father seeks to raise up to $200 million from a meme token already launched at the end of December.

Trump’s executive order a “game-changer” for institutional crypto adoption

Trump’s executive order banning the creation of central bank digital currencies (CBDCs) in the United States may mark a significant shift in institutional cryptocurrency adoption, according to industry executives.

The executive order, signed Jan. 23, prohibits the establishment, issuance, circulation or use of CBDCs, citing concerns over their potential to threaten financial system stability, individual privacy and national sovereignty.

The executive order’s CBDC ban is a “game-changer” for the crypto industry in the US, according to Anndy Lian, an author and intergovernmental blockchain adviser.

Likewise, Trump’s new crypto task force signals a clearer, “more structured” crypto regulatory landscape, Lian told Cointelegraph.

Elon Musk’s dad plans $200M raise with “Musk It” memecoin

Elon Musk’s father may be the next influential figure to raise funds through a memecoin amid growing interest in celebrity-backed meme tokens.

Retail investor interest returned to memecoins after President Donald Trump launched the Official Trump (TRUMP) memecoin on Jan. 18, followed by the Official Melania (MELANIA) token on Jan. 19 on the Solana network.

Joining the ranks, Elon Musk’s father, Errol Musk, is reportedly looking to launch his own memecoin token project called Musk It (MUSKIT).

Musk’s father hopes to raise as much as $200 million from the memecoin project, which he plans to use to support a for-profit think tank called the Musk Institute, he told Fortune.

Crypto mobile wallets hit 36M record high amid growing retail adoption

Mobile cryptocurrency users have reached a new all-time high, as Increasingly more passive cryptocurrency holders are turning into active users, showcasing growing mainstream adoption.

Mobile cryptocurrency wallets reached a new all-time high of over 36 million in the fourth quarter of 2024, according to Coinbase’s quarterly crypto market report published on Jan. 29.

“Mobile wallets can play a critical role in turning passive crypto owners into active crypto users,” wrote Daren Matsuoka, data scientist at a16z Crypto.

While crypto owners only hold digital assets passively, they are considered cryptocurrency users after actively interacting with decentralized finance (DeFi) or other blockchain-based applications.

Crypto hacks drop 44% YoY in January, CeFi top target with $69M loss

Cryptocurrency hackers continue stealing user funds, but cybertheft in January was less than in the year-earlier period, flashing a positive sign for the crypto industry.

Crypto hackers stole over $73 million of digital assets across 19 incidents in January, marking a 44% decrease from $133 million in January 2024.

Still, January’s $73 million was a ninefold month-over-month increase from December, when hackers only stole $3.8 million worth of cryptocurrency, according to a Jan. 30 Immunefi report shared with Cointelegraph.

The attack on Singapore-based crypto exchange Phemex was the biggest hit, accounting for over $69 million worth of stolen value, while the $2.5 million hack on Moby Trade options platform was second.

Ethereum price may stick below $3.5K until these 3 things happen

Ether price fell below $3,500 on Jan. 7 and has since struggled to trade above that level. The altcoin has declined by 8% over the past 30 days, while the broader cryptocurrency market capitalization increased by 6%. This underperformance is concerning for Ether investors, especially with the launch of the spot Ethereum exchange-traded fund (ETF) in July 2024.

Traders’ disappointment comes after a period of average Ethereum transaction fees exceeding $2, steady growth in the ETH supply, significant criticism regarding the lack of support from the Ethereum Foundation and memecoin trading shifting to competitor blockchains, particularly Solana.

Three factors could potentially push Ether above $3,500, although some depend on external elements such as regulatory changes.

These include Ethereum’s upcoming Pectra upgrade in the first quarter of 2025, proposed changes in United States ETF regulations and the continued growth of Ethereum layer-2 solutions.

DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.

The Pudgy Penguins (PENGU) token was the week’s biggest loser in the top 100, falling over 44%, followed by Solana-based memecoin Fartcoin (FARTCOIN), down nearly 30% on the weekly chart.

 

Source: https://cointelegraph.com/news/trump-cbdc-ban-boost-crypto-adoption-musk-dad-200-m-memecoin-raise-finance-redefined

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Elon Musk’s dad plans $200M raise with ‘Musk It’ memecoin

Elon Musk’s dad plans $200M raise with ‘Musk It’ memecoin

Elon Musk’s father may be the next influential figure to raise funds through a memecoin amid growing interest in celebrity-backed meme tokens.

Retail investor interest returned to memecoins after President Donald Trump launched the Official Trump (TRUMP) memecoin on Jan. 18 and the Official Melania (MELANIA) token on Jan. 19 on the Solana network

Joining the ranks, Elon Musk’s father, Errol Musk, is reportedly looking to launch his own memecoin token project called Musk It (MUSKIT).

Musk’s father hopes to raise as much as $200 million from the memecoin project, which he plans to use to support a for-profit think tank called the Musk Institute, he told Fortune.

The Musk It token was silently launched on Dec. 12, 2024, by a Middle Eastern cryptocurrency company.

However, the token failed to gain significant traction, shedding over 52% of its value since launch, to trade at $0.02 with a $25 million market capitalization as of 7:58 am UTC, CoinMarketCap data shows.

The senior Musk specified that his son, Elon, was not involved with the meme token project.

Musk It token may have limited potential without Elon Musk’s endorsement

The Musk It token may not be able to rise to the success of the Trump family’s memecoins.

Despite Musk’s name offering significant clout, the project may have a limited upside without Elon Musk’s direct endorsement, according to Anndy Lian, author and intergovernmental blockchain expert.

Lian told Cointelegraph:

“I’m not so sure ‘Musk It’ will hit the heights some Trump family memecoins have reached. It feels like Elon’s personal stamp is what really gets people excited about these projects.”

Still, investors will likely continue seeking out memecoins with significant return potential, which are the “lottery tickets of the digital world,” said Lian, adding:

“As for this whole meme coin craze, I think it’s more than just a Trump thing. It seems like we’re all hungry for that next big hit in crypto, looking for something that could skyrocket overnight.”

Interest in memecoins often returns after a crypto market dip, as investors seek the next significant investment opportunity, despite an intrinsic lack of utility behind memecoins, which often causes significant downside volatility.

Still, some traders can successfully navigate the volatility of meme tokens.

On Dec. 14, a savvy crypto trader turned $27 into $52 million by capitalizing on the Pepe memecoin rally. The unknown trader has held his initial investment for over 600 days.

On Jan. 6, another trader turned $2,000 into $3.2 million in 10 hours, making an over 1,500-fold return on investment on the Hyperfy (HYPER) metaverse token.

 

Source: https://cointelegraph.com/news/errol-musk-memecoin-musk-it-200m-raise

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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USDT Hits $100 Billion Milestone as Tether Plans Stablecoin Recovery Tools

USDT Hits $100 Billion Milestone as Tether Plans Stablecoin Recovery Tools

On the day USDT reached a milestone $100 billion market cap, the company behind the stablecoin, Tether, announced recovery plans for holders if a blockchain was ever disrupted.

The $100bn market cap is a testament to the value of stablecoins in both the cryptocurrency realm and across TradFi, but it, at times, has been a rocky road to reach such widespread adoption.

On March 4, Tether released a recovery process to protect users’ funds if a blockchain is disrupted, as it attempts to allay concerns about the risk of using USDT.

USDT is now the third largest cryptocurrency by market cap, behind Bitcoin and Ethereum — with BTC itself narrowing in on its own ATH.

 

 

Key Takeaways

  • Tether, the stablecoin behind USDT, has hit a $100 billion market cap milestone.
  • With its widespread adoption on 14 blockchains, especially on the Tron network, Tether has become the third-largest cryptocurrency, trailing only Bitcoin and Ethereum.
  • In response to concerns about blockchain disruptions, Tether has introduced a recovery plan to safeguard users’ funds.
  • Users will be able to validate a transaction to another chain if disruption occurs.
  • Concerns about Tether’s backing have persisted since its inception, but the company seems to be shaking the reputation off through closer scrutiny of its reserves.

Tether tokens are available on 14 blockchains and have become especially popular on the Tron network, where low transaction fees are encouraging users in certain countries to buy and sell USDT as an alternative to devalued local currencies.

Tron has overtaken the Ethereum chain for the largest share of USDT in circulation, accounting for $50.4 billion compared with $40.6 billion on Ethereum, according to DeFi Llama data.

USDT Protection if a Blockchain Goes Offline

The new recovery tool aims to enable users to maintain access to their Tether stablecoins if the blockchain they are hosted on goes down.

The company said:

“In the event that any blockchain on which USDT is available becomes disrupted, Tether has developed and will implement its proactive measures to ensure uninterrupted accessibility for our holders, and safeguarding users’ accessibility to their USDT.”

Users would be able to migrate their USDT tokens to another blockchain through a web interface or command-line tools by cryptographically signing a migration request to verify ownership.

The web-based option supports popular browser extension wallets and hardware wallets, while the command-line interface allows users to enter their private key directly, enabling them to sign the request using an open-source script on their local machine.

Why USDT is Surging

Interest in crypto has surged since the approval of several bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission in January, in turn increasing demand for USDT as an on-ramp and off-ramp to convert funds to and from cryptocurrencies such as bitcoin.

Trading volumes in investment products reached a record of over $30 billion last week, driven by ETF demand, according to digital asset manager CoinShares, at times representing 50% of global Bitcoin daily trading volumes on trusted exchanges.

Total assets under management (AUM) reached $82.6 billion, approaching the all-time high of $86 billion at the peak of the market in early November 2021.

Fiat currency-pegged stablecoins such as Tether typically mint (or create) new tokens when users submit a transaction to convert their fiat at a value of 1:1.

So if a user requests to buy $100 worth of a stablecoin, 100 tokens are minted.

But Tether recently authorized a mint of $1 billion in USDT on the Ethereum blockchain to replenish inventory in preparation for an increase in issuance requests and swaps between blockchains, according to a post on X, formerly Twitter, by Tether’s chief executive officer, Paolo Ardoino.

 

Ardoino expects crypto demand to increase as more funds and companies invest in Bitcoin now that the ETFs give them the legitimacy that they need to convince accountants and auditors they should hold some on their balance sheets.

Ardoino said in a panel discussion last week:

“We are going to see a wide range of hedge funds and pension funds that will start to add Bitcoin to their portfolio now that the Bitcoin ETF is out there.

“More and more fund managers are interested in starting to add up to 5% of their portfolio into Bitcoin.

“But ultimately one of the most interesting things is companies more and more will start keeping part of their unused balance sheet in Bitcoin… and that will grow over time.”

Stablecoins are also at the forefront of retail interest in crypto.

Intergovernmental blockchain expert Anndy Lian, speaking to Techopedia about Tether, said:

“Tether is a remarkable achievement in the cryptocurrency space, as it provides a stable and convenient way to use fiat currencies on the blockchain.

“USDT as stablecoins that are pegged 1-to-1 with a matching fiat currency are widely adopted across major exchanges, OTC desks, and wallets, and have surpassed Bitcoin in terms of trading volume.

“USDT is a sign of how useful stablecoins are in the world, as they bridge the gap between the traditional and the digital financial systems.

“They offer the benefits of both worlds: the stability and familiarity of fiat currencies, and the speed and transparency of the blockchain. It also reduces the volatility and complexity that are often associated with cryptocurrencies, making them more accessible and appealing to a wider audience.

Tether’s reliance on a “trust me” status has raised doubts and suspicions among some investors and observers, who question the legitimacy and sustainability of Tether’s operations.

“Fast forward to today, Tether has refined its operations and is the widely used stablecoin in the world now. In my humble opinion, doubts about them have gone down a lot.”

“Stablecoins are becoming increasingly important,” according to Dina White, General Counsel at Zodia Markets, a digital asset brokerage and exchange platform.

“We are seeing this at Zodia Markets, particularly due to cross-border payment efficiencies and cost-savings. And they could become a widespread means of retail payment.”

Tether Strives for Legitimacy Amid Controversy

Tether’s growing popularity among crypto users extends to criminal groups, which are increasingly using USDT to transfer and launder money.

A recent United Nations Office on Drugs and Crime (UNODC) report on organized crime in East and Southeast Asia (PDF) found that “USDT on the TRON155 blockchain has become a preferred choice for regional cyberfraud operations and money launderers alike due to its stability and the ease, anonymity, and low fees of its transactions.”

The report added: “Between September 2022 and September 2023, a recent fund audit of USDT-based transactions by one independent blockchain data analysis company found transactions totaling 17.07 billion USDT connected to underground currency exchanges, illegal commodity trades, unlawful collection and payment processes, and various criminal activities.

“Law enforcement and financial intelligence authorities in East and Southeast Asia have also reported USDT among the most popular cryptocurrencies used by organized crime groups, demonstrated by a surging volume of cyber fraud, money laundering, and underground banking-related cases.”

Tether responded to the report with criticism that “the UN’s analysis ignores the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement.

“We are disappointed in the UN’s assessment that singles out USDT highlighting its involvement in illicit activity while ignoring its role in helping developing economies in emerging markets, completely neglected by the global financial world simply because servicing such communities would be unprofitable for them.

“Rather than focusing solely on risks, the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts.”

Tether stated that it collaborates with the US Department of Justice (DoJ), the Federal Bureau of Investigations (FBI), and the US Secret Service (USSS) to monitor USDT tokens, ensuring that traceability surpasses “traditional banking systems that for decades have been the vessel for laundering substantial sums proven by the fines that have been levied on them.”

Tether has also developed a tool to monitor secondary markets with blockchain analysis firm Chainalysis.

“Tether tokens, using public blockchains, make it possible to meticulously track every transaction, making it an impractical choice for illicit activities. This is evident in our freezing of more than US$300 million within the last few months, showcasing our commitment to combating the criminal use of cryptocurrencies,” the statement added.

Is Growing Tether Usage Supported by Real Value?

Launched in 2014, Tether has long been controversial because of speculation about whether the full value of USDT in circulation is backed by real collateral.

In 2021, Tether paid fines of $41 million to the Commodity Futures Trading Commission (CFTC) and $18.5 million to the New York Attorney General’s Office for falsely claiming that USDT was backed by US dollars on a 1:1 basis between 2016 and 2019.

The company now publishes daily reserve data, monthly reports, and quarterly reviews breaking down its reserves, which it says are independently audited.

Its most recent report for December 2023 showed total cash holdings of $82.1 billion, $3.5 billion in precious metals, $2.8 billion in Bitcoin, $3.8 billion in other investments, and $4.8 billion in secured loans, along with $44 million in corporate bonds.

 

 

 

Source: https://www.techopedia.com/usdt-hits-100-billion-milestone-as-tether-plans-stablecoin-recovery-tools

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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