Crypto Market Overview May 5th | Dex-Trade
Binance Invests $500M in Musk's Twitter
The open data of the US Securities and Exchange Commission (SEC) contains information that the crypto giant Binance, along with 17 other companies and entrepreneurs, participated in the acquisition of Twitter by Elon Musk and invested $500 million in the company. Thus, at the moment, the largest cryptocurrency exchange is the fourth largest investor in the social network after Lawrence J. Ellison from Revocable Trust, who invested $1 billion, as well as Sequoia Capital and VyCapital, which, according to the same SEC data, invested $800 and $700 respectively. Immediately after the documents were made available to the general public, Changpeng Zhao, the CEO of the largest crypto trading platform, tweeted that the mentioned $500 million was a “small contribution to the cause.” Under the terms of the deal, each registered shareholder committed to making a contribution immediately prior to the completion of the acquisition process. Equity investors are also known to have retained the ability to satisfy a major shareholder's obligation to purchase the company's common stock at a price of $54.20 a share.
California Governor Wants to Implement Bitcoin as Soon as Possible
California Governor Gavin Newsom introduced an executive order on digital assets to create a regulatory framework for the industry and support blockchain adoption, outlining a roadmap for regulatory and consumer protection, and considering a scenario for integrating digital assets and blockchain technology with California companies. Newsom's order should be viewed as a plan to create a transparent and consistent business environment primarily for companies working with blockchain, digital assets and related financial technologies. Its primary mission is to balance federal and California laws, and to balance the benefits and risks for consumers when dealing with Bitcoin and altcoins. Of course, the document does not bypass such sensitive issues as energy consumption in the mining of cryptocurrencies, climate risks and the use of digital assets in criminal activities. However, the document does not provide any clear formulations and plans for these sectors. “The opportunities are almost endless. We can do things like remove middlemen from transactions involving real estate or even automobiles. We can use it to protect people’s identities and provide benefits to people through government services. If we’re selling carbon offsets, we can make sure the same forest isn’t being sold twice and that there’s some record that’s transparent,” — Senior Counsel to the Governor Dee Dee Myers wrote. Politicians, like all of us, sometimes want to be dreamers.
Large Whales Withdraw BTC and ETH from Coinbase Accounts
According to Whale Alert, a blockchain-analytical tracker of crypto-wallets, almost 19,000 Bitcoins were withdrawn from one of the accounts of the Coinbase Global cryptocurrency exchange as a result of a series of four transactions, which is equivalent to about $703 million at the current rate. The largest transaction made was the transfer of 8,000 Bitcoins worth about $300 million. All transactions were open and most likely carried out by one person, since the assets were transferred to one cold wallet. By the way, at the moment it holds 19,244 Bitcoins for a total of about $765 million. In addition, analysts from Coinbase record a massive Ethereum outflow from the exchange. ETH outflows from the exchange hit a new record on May 3, with token balances falling to a three-year low, according to BENZINGA. Such large moves may indicate that selling pressure on the exchange is easing as whales routinely move assets to cold wallets and off exchanges for longer-term storage.