Algo Stablecoin on the Brink

Good morning. Today in the CT5 we've got SEC Chair Gensler making a play for cross-agency cooperation, bitcoin backed mortgages, another NFT project sale, and more!

Market Update (as of 8:29am ET):

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Top 5:

1. Gensler Says SEC Exploring Shared Role With CFTC Over Crypto Platforms. The SEC Commissioner said the agency is discussing how to "split oversight of crypto trading platforms" with the Commodities Futures Trading Commission (CFTC). Gensler also said that he has asked staff to, "work with the Commodity Futures Trading Commission on how we jointly might address such platforms that might trade both crypto-based security tokens and some commodity tokens."

2. Crypto Firm Sidesteps TradFi Hurdles With Bitcoin-backed Mortgage Offering. XBTO, cryptocurrency market-maker, will be funding its first bitcoin-backed mortgage in the next few weeks. The company will initially only offer bitcoin-backed mortgages for Florida properties valued at $1 million and up. According to the firm, rates will be comparable to traditional mortgages and borrowers will be able to access financing for up to 90% of the value of the mortgage. From XBTO's head of markets:

There’s the old guard of [bitcoin] maxis who never, ever want to sell bitcoin, which could be because they think it’s going to $1 million, could be because they don’t want to take a tax hit. They may have it in cold storage and don’t want to give it up. This is a way for them to come in and buy that fancy Miami condo with bitcoin.

3. Pudgy Penguins Ethereum NFT collection sold to Netz Capital for $2.5 million. The NFT collection of 8,888 digital penguins sold to Luca Netz and Netz Capital for 750 ETH. Over the past few months, the project has experienced some turmoil as details of the founder's previous business exploits have come to light. The sale comes at a time when the Department of Justice is cracking down more heavily on rug pulls in the crypto community. Netz Capital will receive all futures royalties from secondary sales of Pudgy Penguins.

4. Algorithmic stablecoin Neutrino USD is on the brink of failure. USDN, the native US Dollar stablecoin of the Waves blockchain, is trading at around 82 cents, 18% off the targeted $1 value. The Waves project itself has exploded over the last month with the native token (WAVES) trading up 600% since early March. However, last week a pseudonymous DeFi analyst alleged that the Waves project was artificially inflating the prices of the native token and the supply of USDN (see thread below). Since the tweet, token prices have dropped around 20% and founder Sasha Ivanov has shifted to an advisory role and accused Sam Bankman-Fried of price manipulation.

5. Japan Exchange Group to launch tokenized stocks by April 2025. Last week Japan Exchange Group (JPX), the operator behind the Tokyo Stock Exchange unveiled a plan to provide a digital securities (blockchain-based security tokens) market by April 2025. The company faces pressure from competitor, Osaka Digital Exchange, who plans to provide a similar service by the end of 2023.

Updates and other stories:
- UK aims to let consumers ‘use stablecoin services with confidence’...Read More
- Magic Eden accepting tokens from Solana projects Aurory, DeGods...Read More
- BitMEX lays off 75 employees after bank acquisition collapses...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.