Binance CEO unfollowed Elon Musk on Twitter; Huge spike in Dogecoin network activity; BlockFi will liquidate its crypto lending department.
It remains unclear why Binance CEO made such a decision. CZ’s unfollowing of Elon Musk brought many questions and conspiracy theories to mind. The topic has been hot among the crypto community, especially on Twitter.
Could it be the reason is eToro?
CZ’s unfollowing Elon Musk may be because Twitter is partnering with eToro instead of Binance. Last month, Twitter announced that it partnered with eToro to enable users to view and trade real-time crypto prices and other assets.
Elon Musk also doesn’t follow Changpeng Zhao on Twitter. However, the question of whether this is always the case remains unanswered.
Cryptocurrency exchange Binance invested $500 million in Twitter last October, helping to buy the company for $44 billion.
CZ used the following statements in his statement at that time:
“We are excited to be able to help Elon realize a new vision for Twitter. We aim to bring social media and the web3 together to increase the use and adoption of crypto and blockchain technology.”
Huge spike in Dogecoin network activity
Meme-inspired cryptocurrency Dogecoin has seen a huge spike in network activity lately. Daily transactions with Dogecoin reached an all-time high (ATH) of 650,000, surpassing both Bitcoin and Litecoin.
This unexpected increase in DOGE activity is attributed to the growing interest in issuing DRC20 tokens, a new type of digital asset on the Dogecoin network. Dogecoin developer Patrick Lodder has previously hinted at a significant increase in network activity. While the increase at the time was significant, it was nowhere near the unprecedented levels today.
Many in the crypto community see this increase as an opportunity to test the scalability of Dogecoin. However, some concerns have been expressed about the increased activity potentially clogging the Dogecoin network.
Mishaboar, a prominent figure in the Dogecoin community, suggested that such activities should be handled through layer-2 solutions to avoid mainnet congestion. Despite these potential challenges, many users remain optimistic. He suggests that this increase in transactions could be a sign for the future if Dogecoin becomes a widely accepted, global currency.
BlockFi will liquidate its crypto lending department
According to The Wall Street Journal, BlockFi has decided to liquidate its credit department.
The bankrupt company decided to liquidate its credit department, concluding that putting it up for sale would not do any good.
The New Jersey-based organization detailed the company’s restructuring plan in a document it filed with the US bankruptcy court last Friday.
Although the company has been negotiating with potential buyers since last January, it came to the conclusion that this sale would be meaningless to creditors.
BlockFi currently has 660,000 user accounts.
The company stated that the recovery of client funds is largely dependent on the outcome of the ongoing lawsuit against FTX, Alalamade Research, and Three Arrows Capital. The company also has a legal battle with cryptocurrency mining company Core Scientific.
In its filing, BlockFi emphasized that if these lawsuits are successful, “it will make a $1 billion difference to customers.”
According to court documents, BlockFi owes nearly $1.3 billion to its 50 largest buyers.
BlockFi executives were questioned about the bankrupt Silicon Valley Bank.
After the collapse of Silicon Valley Bank, it was revealed that Circle had $ 3.3 billion left in the bank, while BlockFi had uninsured deposits worth $ 227 million.