Around The Block – June 02 Week in News

In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of May 29. Our focus will be on the following developments:

Multichain Protocol Conundrum

Multichain, formerly known as Anyswap, is renowned as one of the largest blockchain bridges in the crypto industry. With total transaction volumes exceeding $100 billion earlier this year, this bridge plays a crucial role in facilitating the exchange of tokens across multiple networks. It enables seamless interaction and interoperability between significant ecosystems such as Binance Chain, Avalanche, Polygon, and Ethereum.

Recently, the cross-chain protocol has been embroiled in a series of unexpected challenges, leading to concerns and uncertainties within the crypto community. This turn of events has disrupted some cross-chain routes, leaving users grappling with stuck transactions. 

On top of that, rumors have circulated about Chinese authorities’ potential arrest of several Multichain executives, including CEO Zhaojun. While there has been no official confirmation or denial of these arrests from the rules or the company, the news prompted Binance to respond by suspending certain token deposits until further clarity is provided.

Furthermore, a handful of Decentralized Finance (DeFi) projects on the Fantom blockchain (FTM) have started moving crypto to other networks this week due to concerns that the mounting bridging crisis with Multichain could jeopardize the value of their tokens.

The problem has thrust unexpected challenges and disruptions upon the cross-chain protocol and its users. As the situation unfolds, Multichain has pledged to compensate affected users, although details of the compensation plan are yet to be revealed. Read more on the background story here. 

U.S. Passes Bill to Raise the Debt Ceiling

In a crucial development, the divided U.S. House of Representatives successfully passed a bill to suspend the $31.4 trillion debt ceiling, overcoming opposition from hardline conservatives. The bipartisan support from Democrats and Republicans aims to prevent a catastrophic default and stabilize the American economy. 

While the bill received majority support, progressive Democrats, including President Biden, initially resisted negotiating over the debt ceiling. Their opposition stems from several concerns, including introducing new work requirements for federal anti-poverty programs. As per Reuters, Democratic Representative Jim McGovern expressed discontent, criticizing Republicans for putting them in a difficult position where they are forced to decide between providing for vulnerable Americans or risking default, which he believes is fundamentally wrong.

However, after the bill was passed, President Biden expressed his satisfaction with the House’s passage, emphasizing that it was good news for the American people and the economy. He urged the Senate to act promptly in passing the bill so that he could sign it into law. Swift Senate action is essential to ensure the timely resolution of the debt ceiling issue and provide certainty to businesses, investors, and individuals alike.

Elon Musk Sued Over Dogecoin Twitter Logo

Elon Musk, known for his influential presence in the cryptocurrency world, has been embroiled in a legal battle regarding his association with Dogecoin. 

In a recent filing to the United States District Court for the Southern District of New York, Dogecoin investors claimed that Musk orchestrated a deliberate course of market manipulation and insider trading. The complaint argues that Musk leveraged his position as one of the world’s wealthiest individuals to manipulate the cryptocurrency market, exploiting the hopes of vulnerable Americans. The lawsuit characterizes Musk’s actions as securities fraud and seeks to hold him accountable for his alleged misconduct.

Among the allegations in the lawsuit, one notable point of contention is Musk’s decision to change Twitter’s logo to the Dogecoin logo. As per WatcherGuru, the investors argue that this move was part of Musk’s deliberate efforts to bolster the value of Dogecoin, thus benefiting himself financially. 

While Musk has not publicly responded to the amended complaint, his involvement with Dogecoin on Twitter has been well-documented, with his tweets frequently leading to significant price fluctuations in the cryptocurrency market. 

USDT Market Cap Reaches New All-Time-High 

Tether’s USDT has bounced back with vigor, regaining the $18 billion it lost following the dramatic collapse of the blockchain project Terra and the subsequent market downturn in May 2022. Its resurgence is particularly noteworthy in a year when regulatory challenges have plagued the stablecoin landscape. 

This achievement comes because other stablecoin issuers need help maintaining their market share. While USDT has recovered from previous losses, its competitors, such as USDC and BUSD, grapple with declining market dominance. For comparison, the second-largest stablecoin, i.e., USDC, currently stands at a market cap of $28 billion, lagging behind USDT by over $50 billion. This decline in market share for other stablecoins can be attributed to intensified regulatory scrutiny imposed by U.S. regulators and the recent banking crisis. 

As per Decrypt, a spokesperson from Tether explained USDT’s dominance with a trend, stating that due to the challenging market conditions, more and more users are choosing to adopt a cautious strategy by holding their positions on the sidelines. They patiently await to re-enter the market when conditions become more favorable. And because of the stability and reliability offered by Tether’s USDT, it is the preferred stablecoin of choice for most users.

Nike NFTs are Coming to EA Sports Games

In a recent announcement, Nike disclosed its collaboration with EA Sports to integrate select.Swoosh virtual creations into upcoming EA Sports games. The partnership will focus on creating immersive experiences with a strong emphasis on customization. A teaser video released alongside the announcement offered a glimpse of Nike-branded football and soccer gear, including a captivating image of a .Swoosh NFT collectible featuring a football helmet.

Ron Faris, General Manager of Nike Virtual Studios, was enthusiastic about the collaboration, emphasizing the shared commitment to innovation, creativity, and excellence. Faris stated that the partnership with EA Sports would unlock incredible new experiences for both the .Swoosh community and the vast EA Sports fan base. By leveraging this, Nike and EA Sports aim to redefine the gaming landscape and offer players unprecedented personalization and engagement.

While specific details about the collaboration remain undisclosed, Nike has promised to share more information about its work with EA Sports in the coming months. As the partnership develops, gamers and enthusiasts can anticipate groundbreaking advancements that seamlessly merge Nike’s iconic brand with EA Sports’ immersive gaming platforms.