Daily Crypto #83

Federal reserve decision, Some hope on the horizon for victims of Celsius collapse, Binance announces decentralized storage system, Galaxy Digital: Nothing to do when someone takes crypto out the door

Federal reserve decision looms over Bitcoin’s 40% rally

Source: news.bitcoin.com

The Federal Reserve policy decision could be a significant test for this year’s 40% rally in Bitcoin, which is part of a broader trend of growth in the crypto, stocks and bonds markets.

The market has seen growth in recent weeks due to expectations that the Fed will pivot to slower interest-rate hikes and potential cuts as high inflation cools.

Will Bitcoin lose momentum?

While the Federal Reserve is expected to downshift to a quarter-point increase this Wednesday, Chair Jerome Powell may stress that policy will remain restrictive in order to damp prices. This could have a negative impact on the $250 billion run-up in the overall crypto market value in the past four weeks.

Arcane has analyzed Bitcoin swings around the Federal Reserve’s recent post-decision briefings. The firm found that the trend of massive FOMC-induced volatility in BTC is receding. However, the firm has advised traders to be cautious when Powell speaks.

Some hope on the horizon for victims of Celsius collapse

Source: celsius.network

Selected Celsius users have been reassured that they will be able to withdraw up to 94% of their funds from the bankrupt company. But for other clients, there may be a longer wait.

Celsius releases list of eligible clients

On Jan. 25, U.S. Bankruptcy Judge Martin Glenn ruled that Celsius creditors who deposited funds after the lender filed for bankruptcy should be allowed to withdraw the money.

In a Tuesday filing, Celsius submitted a 1,419-page document with the list of all the eligible users. The bankrupt firm will allow those users to withdraw 94% of their funds; however, the court will decide the fate of the remaining 6%.

The eligible users will be responsible for paying gas and withdrawal fees. The company will only allow withdrawal to users with sufficient funds for the fees. The Celsius users on the list will get more details via an email before Feb. 15.

Binance announces decentralized storage system as Coinbase Cloud bleeds employees

Source: binance.com

Binance has released a whitepaper describing a Web 3 infrastructure project BNB Greenfield, currently under development by coders from Amazon Web Services, NodeReal, and Blockdaemon.

According to the project’s whitepaper, BNB Greenfield will allow BNB holders access to decentralized storage services using smart contracts.

BNB Greenfield to charge users BNB for accessing storage

Greenfield decentralized application developers can create tools to allow users to interact with the storage system or smart contracts on the Greenfield blockchain, the decentralized storage network, and Binance Smart Chain using their blockchain addresses. While user metadata is kept on-chain, bulk data is stored off-chain on a decentralized, redundant network dubbed Greenfield Core Infra. Greenfield’s consensus mechanism involves changes in the state of users’ metadata and their BNB balances.

Greenfield accepts Binance’s BNB token for gas fees and governance, re-minting locked BNB from Binance Smart Chain through a cross-chain bridge. Non-fungible tokens will govern data access privileges. In addition, the network will support other data storage and website hosting services.

Binance’s announcement comes hot on the heels of the alleged high-profile departure of two Web 3 infrastructure executives from Coinbase.

Nothing to do when someone takes crypto out the back door, says Galaxy Digital

Source: icoholder.com

Jason Urban, the head of Galaxy Digital’s trading desk, recently spoke to Forbes about the company’s experience with trading platform FTX, which collapsed in November of last year.

At the time, CEO Mike Novogratz said that Galaxy had approximately $76 million in crypto locked on the platform. When asked if the firm was able to recover those funds, Urban stated that the company was able to get a majority of their balances off, but they got gated at the last minute.

Nobody saw FTX’s collapse coming

Urban went on to explain that Galaxy Digital has an extensive exchange risk committee and goes through a thorough examination process, questioning everything from legal to custody. Despite their due diligence efforts in the crypto market, fraud is still a risk. Jason Urban added that when someone takes money out the back door, there is nothing you can do.

When asked if the collapse of FTX and other bankruptcies throughout the year have forced Galaxy Digital to change their approach to risk management, Urban stated that the firm has a number of methods in place. Some of them include a minimum annual vetting and proactive measures to respond to rumors or concerns.