Nigeria introduced an “oil-for-naira” program by selling crude oil to Aliko Dangote’s refinery in a bid to stabilize the weakening local currency. Blackrock announced its support for UStb, a new stablecoin from Ethena Labs. The SEC has formally appealed a court ruling in its case against Ripple Labs, citing significant legal errors. Coinbase is optimistic about a strong Q4 for bitcoin, spurred by U.S. rate cuts and Chinese economic stimulus. Lastly, two new meme tokens, MOODENG and Hamster Kombat, have experienced major drops after initial surges.
Nigeria's Oil-for-Naira Program, Blackrock's New Stablecoin, and More — Week in Review
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Nigeria Unveils Oil-for-Naira Program to Stabilize Local Currency
Nigeria began selling crude oil to billionaire Aliko Dangote’s new refinery in naira on October 1st. This “oil for naira” scheme aims to ease pressure on the struggling Nigerian currency, the naira, which has lost significant value this year. However, the success of the scheme is uncertain. While Nigerians hope it will reduce fuel prices, a reported disagreement between Dangote and the NNPC raises concerns about its effectiveness.
Editor’s Comment: All currencies are vulnerable to price dislocations in oil markets, like those precipitated by events in the Middle East.
Blackrock Joins Race to Issue New Stablecoin
Blackrock has announced its backing of a new stablecoin, UStb, launched by Ethena Labs. Supported by Blackrock’s BUIDL fund, UStb is designed to provide a reliable alternative in the stablecoin market, leveraging investments in U.S. dollars, short-term Treasury bills, and repurchase agreements.
Editor’s Comment: Further evidence that stablecoins are the pre-eminent crypto product with product market fit.
SEC Appeals Ripple Case, Citing Errors in Final Judgment
The U.S. Securities and Exchange Commission (SEC) has filed a formal notice of appeal against Ripple Labs in the U.S. Court of Appeals for the Second Circuit. The appeal follows a district court’s ruling in August, which the SEC argues contained significant legal errors.
Editor’s Comment: Many thought that the approval of ETH ETFs would mark a more cooperative relationship with the SEC. Unfortunately, this appeal falls in line with the SEC’s renewed antagonism towards crypto.
Coinbase Sees Strong Q4 for Bitcoin, Fueled by US Rate Cuts, China Stimulus
Coinbase Institutional’s report highlights optimism for the crypto market, driven by expectations of U.S. rate cuts and China’s monetary stimulus, which could boost bitcoin’s performance in Q4 2024. While bitcoin remains strong, ethereum faces challenges with rising transaction fees and limited impact from U.S. spot exchange-traded funds (ETFs).
Editor’s Comment: Always a good sign to see a sector’s leaders with positive projections.
After Initial Surge, MOODENG Falls 45.6%; Hamster Kombat Drops 51% From Peak
According to the latest market updates, two fresh-faced crypto assets, moo deng (MOODENG) and hamster kombat (HMSTR), have faced some dips over the past 24 hours. While HMSTR had a rocky launch, MOODENG initially skyrocketed, but the meme token has since tumbled 45.6% below its highest value.
Editor’s Comment: While I believe in meme coins as a viable crypto asset, most are a flash in the pan. Be careful!
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