Dogecoin Surges to 7-Day High Amidst Growing Excitement for ‘XPayments’ on Twitter; Terraform Labs, Creator of TerraUSD, Files for Chapter 11 Bankruptcy Protection; Litigation Analyst Foresees 70% Chance of Full Dismissal for Coinbase in SEC Lawsuit
Dogecoin, the beloved memecoin, experienced a notable surge, reaching a weekly high, as the newly-established “XPayments” account on Twitter rapidly gained over 100,000 followers.
In a remarkable climb, DOGE recorded a 12.8% increase within a nine-hour period starting late on January 20 (UTC), peaking at $0.08978 in the early hours of January 21, as reported by Trading View.
Despite a subsequent 4% dip in the past day, Dogecoin is currently trading at $0.08330.
The @XPayments account, although yet to make any posts, has garnered significant attention. While the specific payment features to be offered by X (Twitter) remain unconfirmed, speculations are circulating that DOGE could potentially be integrated into the platform. This speculation is fueled by occasional mentions of DOGE by the site’s owner, Elon Musk.
X users have long been anticipating Musk’s potential integration of DOGE into the platform, encouraged by cryptic X posts and bio updates from the enigmatic billionaire.
Elon Musk has previously enabled DOGE payments on Tesla’s merchandise store and even changed Twitter’s logo to Dogecoin’s shortly after assuming control of the platform in April 2023, leading to a 22% surge in DOGE’s price.
In a December update, Musk hinted at the launch of payments on X, expected to roll out sometime by mid-2024. Last year, the company took steps toward this by applying for money transmitter licenses in several U.S. states. The crypto community eagerly awaits further developments in this regard.
Terraform Labs, Creator of TerraUSD, Files for Chapter 11 Bankruptcy Protection
Terraform Labs, the company led by Do Kwon and responsible for the now-defunct stablecoin TerraUSD (UST), has filed for Chapter 11 bankruptcy protection in the United States. The filing, submitted to the United States Bankruptcy Court for the District of Delaware on January 21, indicates estimated liabilities and assets ranging between $100 million and $500 million.
In response to the bankruptcy filing, Chris Amani, CEO of Terraform Labs, stated, “The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working toward our collective goals while resolving the legal challenges that remain outstanding.”
The court document outlines the financial situation of the defunct firm, revealing liabilities and assets in the same estimated range of $100 million to $500 million.
This bankruptcy filing comes just four days after the U.S. Securities and Exchange Commission (SEC) agreed to postpone Do Kwon’s upcoming fraud trial until March 25, following a request for a delay from Kwon’s legal team.
The collapse of the Terra Money ecosystem occurred in May 2022, and shortly after the firm’s demise, Do Kwon’s whereabouts were unknown until he was arrested in Montenegro in March 2023 for attempting to use falsified travel documentation to leave the country.
The SEC initially filed civil charges against Terraform Labs and Do Kwon in February 2023, alleging a “multi-billion dollar crypto asset securities fraud” related to the tokens previously known as UST and Terra (LUNA).
Both the U.S. and South Korea are seeking the extradition of Do Kwon, raising speculation that he could face multiple sentences in both countries. In South Korea, he may face a 40-year jail sentence, where the majority of the alleged crimes occurred.
Litigation Analyst Foresees 70% Chance of Full Dismissal for Coinbase in SEC Lawsuit
Bloomberg’s senior litigation analyst, Elliott Stein, has expressed a high probability of success for cryptocurrency exchange Coinbase in its legal battle against the United States Securities and Exchange Commission (SEC). Stein estimates a 70% chance of Coinbase securing a full dismissal in the ongoing lawsuit.
In a post on X (formerly Twitter) on January 19, Stein initially believed Coinbase could successfully object to certain SEC claims but might face challenges related to allegations concerning its staking rewards program and overall operational structure. However, after attending the five-hour hearing, his confidence shifted, stating, “I left thinking COIN would win full dismissal.”
The SEC claims that Coinbase, by staking customer assets and earning rewards on their behalf, is involved in offering and selling investment contracts, subjecting it to SEC regulation. Additionally, the regulator alleges that Coinbase operated as an unregistered broker, a claim strongly refuted by the exchange, citing the lack of an easy process for crypto exchanges to register for a license.
Stein noted a turning point when Coinbase provided a more precise definition of an “investment contract” than the SEC, emphasizing the requirement for an investment in a business rather than just an ecosystem.
Referring to the SEC vs. Ripple case, where Ripple achieved a partial victory in July 2023, Stein suggests that the decision around securities will have a significant impact on Coinbase’s lawsuit. The Ripple case ruling stated that XRP is not considered a security when sold on cryptocurrency exchanges.
The SEC filed a lawsuit against Coinbase on June 6, 2023, accusing the crypto exchange of violating federal securities laws. Stein’s analysis reflects a positive outlook for Coinbase’s potential success in the legal proceedings.
