XRP giveaway scam and trust in stablecoins
Ripple filed a lawsuit against YouTube for supporting a giveaway scam, while Tether was cleared of the 2017 BTC price manipulations. News of the week of April 20-26 by BTCMEX.
US adding $484 billion to coronavirus aid
The Senate has passed a bill that stated the additional sum of COVID-19 pandemic relief to help medical institutions and small businesses. The amount peaked at $484 billion.
Last month, the government issued the $2 trillion bill to recover the industries amid the worldwide coronavirus outbreak. The new bill is supposed to inject $380 billion towards small business loan programs, $75 billion to emergency funding for hospitals, and $25 billion for disease testing.
Bank of China explained CBDC
The central bank of China has recently made a statement, explaining the digital yuan project, claiming the innovation will not cause inflation. The curiosity arose with the news about the government testing the digital yuan in four cities spread across social media. The public has also seen numerous screenshots of the first digital wallets designed to accept the new form of yuan.
The bank’s official representative confirmed that the CBDC is being tested among target groups but has not been issued for public use.
The current closed test of digital Yuan will not affect the commercial operation of listed institutions, nor will it affect the RMB issuance and circulation system, financial market and social economy outside the test environment.
The People’s Bank of China has to first exchange the digital currency to banks or other operating agencies to ensure that the digital yuan is not oversold. According to the bank’s plan, the digital currency will not be tied to any bank account. Being issued by the central bank, its value will be backed by the country’s credit.
Ripple sues YouTube for “XRP Giveaway” scam
The head of Ripple Labs, CEO, Brad Garlinghouse, has filed a lawsuit against YouTube. He’s accusing YouTube in failing to stop famous giveaway scams and impersonators related to Ripple.
The CEO stated that the victims have already suffered the loss of “millions of XRP valued at hundreds of thousands of dollars”. The scam relies on spear-phishing attacks against legitimate Youtube channels, according to the filing. Using a malicious email, the attackers commandeer the Youtube channels of content creators – often those with legitimate ties to Ripple. The file also says that YouTube profits from the scam by selling paid ads to the fraudsters.
Research: Tether can’t affect Bitcoin price
The recent research claimed that USD-backed stablecoin Tether, USDT, can’t affect the price of other cryptocurrencies, including Bitcoin. The statement was made by the Centre for Economic Policy Research after conducting studies of Tether issuance during the last three years which showed very little correlation between prices and new stablecoins minting. This can clear Tether of suspicion of price manipulations during the 2017 BTC pump.
Interest in stablecoins grew 800%
TokenAnalyst – the market intelligence firm – reported that the usage of stablecoins has increased over 800% over the last year. The combined market cap for all stablecoins now ranks third behind the two leading cryptocurrencies – Bitcoin (BTC) and Ether (ETH).
According to the report, the three coins that show the best performance are Tether (USDT), USDC (USDC), and Dai (Dai). Read further about MakerDao and DAI.