Welcome to the March 7, 2024 edition of the Genfinity News Recap! As you navigate through your busy workday, staying informed about the latest developments in the realms of Web3 and finance can be a challenge. However, we are here to provide you with an overview of the crypto news you might have overlooked today.
March 7, 2024 Genfinity News Recap
AI tokens
The anticipation of a crypto project being discussed during Nvidia’s upcoming conference later this month has fueled a surge in trading activity for artificial intelligence (AI)-linked tokens. Nvidia claims to be, “The #1 conference for AI developers.”
This speculation resulted in a 25% increase in CoinGecko’s category for these coins within 24 hours. Reported by CoinDesk, tokens associated with projects like Fetch.AI (FET), Render Network (RNDR), Sleepless AI (AI), and SingularityNET (AGIX) have seen gains of up to 40%, each claiming to integrate AI in different and useful applications.
Reports suggest that developers of crypto AI projects will participate in the chipmaker’s conference or related panels, scheduled from March 17-21. Furthermore, the recent inflows into AI tokens have seemingly interrupted the prolonged rally of meme coins, such as dogecoin (DOGE), pepecoin (PEPE), and dogwifhat (WIF), which surged over the past few weeks amidst Bitcoin’s temporary record-breaking highs, with some attributing the surge to the accessibility of meme coins for retail traders during Bitcoin rallies.
Notably, Santiment called attention to many of these tokens on their watch list before this recent surge.
Crypto cybercrime
Cointelegraph did an in-depth analysis on the cryptocurrency market, looking closer at the DeFi space, which is known for its volatility and lack of regulations. It is well known that there are many pump-and-dump schemes where scammers manipulate investors to buy worthless tokens before selling their own holdings at a profit. A Chainalysis study found that over 90,000 Ethereum tokens displayed signs of market manipulation.
Essentially, the Chainalysis study found that less than 1.4% of all tokens launched achieve more than $300 in liquidity within a month and only 5.7% of tokens launched in 2023 on Ethereum exceed that liquidity threshold. The study also identified 90,408 tokens with low liquidity.
These schemes are often perpetrated by influencers who promote new crypto projects without disclosing their financial ties to them. Regulators are struggling to rein in these practices due to the lack of clear regulations and the difficulty of tracking down perpetrators.
Yet, Blockworks noted that, while the FBI reported that crypto cybercrime went up in 2023, Chainalysis has cited that crypto revenues related to scammers are down because the market has been less enthusiastic overall. You can read the Chainalysis report here.
Regulation
Chair Jerome Powell assured lawmakers in the Senate today that the Federal Reserve has no plans to create a digital dollar that would allow the government to track people’s transactions. He emphasized that even if they considered it, the existing banking system would manage accounts, ensuring privacy. Though some politicians have expressed concerns about government surveillance, Powell reiterated the Fed’s need for Congressional approval before launching any digital currency like a CBDC. You can read the full story on CoinDesk.
In the Senate hearings today, Powell addressed concerns over the bank potentially waiting too long to cut rates amid strong economic growth and cooling inflation, stating the Fed is conscious of avoiding job losses and is prepared to begin rate cuts this year if economic conditions continue as expected. Additionally, Powell engaged in a terse exchange with Sen. Elizabeth Warren regarding the Basel III proposal, asserting that he is adhering to his stance on bank regulation and intends to make significant changes to the proposal before finalizing it, despite Warren’s criticism that he appeared to be backing down under pressure from large banks. Summarized by Barron’s, Powell also clarified that while a re-proposal of the rulemaking is possible, the board has not yet decided on the course of action. He emphasized the importance of thorough consideration before any decision is made.
We hope you enjoyed our March 7, 2024 Genfinity News Recap! Come back tomorrow evening for another news summary, and please leave a comment below.
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