Crypto Flipsider News – Fed Rate Hike; Kraken CEO Resigns; Vasil Launch; “Cryptos Are Ponzi Schemes”; FTX Raises $1Billion

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Read in the Digest:

  • Crypto markets react to Fed interest rate hike of 0.75 percent points
  • Kraken’s CEO Jesse Powell resigns to focus on crypto industry advocacy
  • Vasil upgrade is ready to launch as Cardano meets all critical requirements
  • JP Morgan CEO labels cryptocurrencies “decentralized Ponzi schemes”
  • Sam-Bankman Fried’s FTX to raise $1 billion for further acquisition deals

Crypto Markets React to Fed Interest Rate Hike of 0.75 Percent Points

On Wednesday, September 21, the Federal Reserve raised its benchmark interest rate by 0.75 percent points for the third consecutive time, leaving the crypto market in disarray.

Bitcoin (BTC), the world’s largest cryptocurrency, traded downwards in reaction to the news to drop to a new 90-day low of $18,290. However, in the last few hours, Bitcoin is showing bullish pressure, which has driven its price back above $19,200.

The 24-hour price chart for Bitcoin (BTC). Source: CoinMarketCap

Much to the dismay of investors, Ethereum’s free fall since the merge continued with the news. Unlike Bitcoin, the price of ETH remains down by 4% in the last 24 hours, and 18% in the last week. ETH now trades at $1,305.

The 24-hour price chart for Ethereum (ETH). Source: CoinMarketCap

Ripple’s XRP is one of today’s biggest gainers, rising by more than 10% in the last 24 hours. As Ripple Labs makes positive advancements in its lawsuit, the price of XRP has shot up to $0.4485, a new 90-day high.

The 24-hour price chart for XRP. Source: CoinMarketCap

Flipsider:

  • The message has not changed, as the Fed indicated that it will continue hiking interest rates well above the current level to battle inflation.

Kraken’s CEO Jesse Powell Resigns to Focus on Crypto “Industry Advocacy”

The co-founder of crypto exchange Kraken, Jesse Powell, has announced that he is stepping down from his role as CEO after more than a decade at the helms of affairs at the company.

Powell cited the drain of managing operations and how the role had become “less fun” as part of his reasons for stepping down. According to Kraken, the exchange’s Chief Operating Officer Dave Ripley will succeed him as CEO.

Powell, who is still the largest shareholder at Kraken, will remain chairman of the company’s board. Powell says he will continue working on the company’s product development and focus on crypto industry advocacy.

Flipsider:

  • Powell denied stepping down because of the investigations carried out by the Treasury on violating U.S. sanctions by allowing Iranians to use the exchange.

Why You Should Care

Powell joins the growing list of top CEOs who have stepped down in recent times to focus more on the broader crypto industry.

Vasil Upgrade Ready to Launch as Cardano Meets All Critical Requirements

After missing two launch dates, Cardano is now just hours away from deploying the all-important Vasil upgrade as the IOHK announces that all three “critical mass indicators” needed to trigger the hard fork have been met.

The IOHK has announced that 39 exchanges representing over 87% of ADA’s liquidity had confirmed readiness for the hard fork. Over 98% of Cardano’s mainnet blocks are now being produced by the Vasil node (1.35.3).

Lastly, the top Cardano decentralized applications (Dapps) ranked by TVL have confirmed readiness. If successfully deployed, the second phase of the Vasil hard fork will take place on September 27th. 

As anticipation builds ahead of the launch event, the price of ADA is on the rise, gaining 1.4% to recover from the Fed news. Also, the amount of ADA staked has hit $11.49 billion, overtaking BNB Chain and Avalanche.

The 24-hour price chart for Cardano (ADA). Source: CoinMarketCap

Flipsider:

  • Cardano (ADA) withdrawals might be suspended on crypto exchanges for the next few hours as the network hard forks.

Why You Should Care

The IOHK has referred to the upgrade as the “most significant update” on Cardano so far, and it promises to scale the performance of the chain.

JP Morgan CEO Labels Cryptocurrencies as ‘Decentralized Ponzi Schemes’

While testifying on Wednesday during a hearing held by the House Financial Services Committee hearing on Megabanks, JP Morgan CEO Jamie Dimon referred to himself as a major skeptic on crypto tokens and labeled them as “decentralized Ponzi schemes.”

According to Dimon, blockchain, decentralized finance (DeFi), ledgers, smart contracts, and “tokens that do something,” are valuable, but the unbeneficial nature of crypto tokens keeps him from being more active in the crypto space.

Asked for his opinion on the draft of the U.S. stablecoin bill, Dimon said that a properly regulated stablecoin is harmless and he added that it should have similar regulations to that of a money market fund. 

Dimon noted that JP Morgan is pro blockchain, mentioning that the JP Morgan coin is a dollar deposit. He also acknowledged that DeFi is real and crypto can aid cross-border payments.

Flipsider:

  • Despite his recent statements, JP Morgan has announced that it will continue providing crypto services through the ongoing bear market.

Why You Should Care

Dimon has always been a vocal critic of Bitcoin (BTC); in 2017, he deemed the token a “fraud,” before retracting his statement.

Sam-Bankman Fried’s FTX to Raise $1 Billion for Further Acquisition Deals

Sam-Bankman Fried’s crypto exchange FTX, which has been on an acquisition spree through the crypto winter, is reportedly in talks with potential investors to raise $1 billion in fresh funding for further acquisitions.

FTX has previously engaged in two rounds of fundraising in October and July 2021, realizing $420.69 million and $1 billion. According to reports, if the fundraising goes through, the company’s valuation would be kept at roughly $32 billion intact.

Inside sources say the additional funds would be used to fuel more deal-making in the crypto space. The company is being backed by SoftBank’s Vision Fund 2, Singapore’s Temasek, and Tiger Global.

FTX is said to be one of the biggest bidders in the asset auction of the bankrupt Voyager Digital. Earlier this month, FTX’s venture capital arm acquired a 30% stake in Anthony Scaramucci’s SkyBridge Capital for an undisclosed sum.

Flipsider:

  • The FCA recently warned consumers about crypto exchange FTX operating without a license in the U.K.

Why You Should Care

The potential $1 billion fundraise is in line with Bankman-Fried’s global expansion goal for the crypto exchange, FTX.

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