The crypto market has been full of developments this week. Despite the tough market conditions and challenges like the LA fires, there are still exciting updates to share. As the new president is about to take office, regulatory changes could reshape the landscape. Let’s dive into the latest news, airdrop checkers, and market movements.
1) Swell & Jupiter Airdrop Checkers
Good news for those keeping an eye on airdrop checkers! The Swell airdrop checker is now live, allowing users to verify their eligibility for the upcoming Swell airdrop. This tool, launched on January 10, gives users a chance to check their airdrop status before the event goes live. The airdrop promises to reward users who have engaged with the platform, and this checker is the first step in ensuring you don’t miss out.
For more details, you can check out the official Swell airdrop checker announcement here: Swell Airdrop Checker.
Additionally, Jupiter, another Solana platform in the crypto space, is preparing to launch its own airdrop checker. While it’s not live yet, stay tuned for updates.
2) Bybit Restrictions in India: A Regulatory Shift
In the latest regulatory news, Bybit, a major global crypto exchange, has announced a temporary suspension of services in India starting January 12, 2025. The exchange will halt several services, including cryptocurrency trading, account openings, and orders. This move is in response to new regulatory developments in India, as Bybit aims to comply fully with local laws.
While users won’t be able to open new trades or access some exchange products, they will still be able to manage existing positions. Importantly, user fund withdrawals will remain unaffected, so there is no immediate concern for Bybit users holding funds on the platform.
This move is similar to Bybit’s earlier regulatory challenges in Europe, where it ceased operations in France in August 2024, although it is working towards obtaining a license to resume services there.
3) Usual Protocol’s Stablecoin Drama: A Depeg in the Market
Usual Protocol, the latest stablecoin to hit the market, has encountered issues with its USD0++ token, which recently lost its peg to the USD0 stablecoin. USD0++ is a liquid staking derivative of the USD0 token, designed to offer staking rewards. However, it has dropped to around $0.92 from its expected 1:1 parity with USD0.
The confusion stems from a misunderstanding of the token’s nature. USD0++ isn’t exactly a stablecoin but more of a long-term bond. Users who staked USD0 for USD0++ were expecting rewards from the protocol’s native token, USUAL. However, a new exit option has been announced, allowing users to redeem their USD0++ for USD0 at a discounted rate of $0.87.
This move has sparked liquidity problems in decentralized finance (DeFi) markets, with stETH liquidity being pulled from Curve pools, causing depeg issues with stETH and ETH. The drama highlights the volatility that can occur in the DeFi space, especially with newly launched protocols.
4) Backpack Exchange Acquires FTX EU
In a notable acquisition, Backpack Exchange has successfully acquired FTX EU. The move, valued at about $32.7 million, allows Backpack to expand its operations into the European market. FTX EU, now rebranded as Backpack EU, will offer regulated crypto services across the EU by Q1 2025.
The acquisition has been approved by the Cyprus Securities and Exchange Commission (CySEC), and Backpack plans to return customer EURO funds from FTX EU promptly. The exchange aims to regain customer trust and offer spot, margin, and futures trading options in the EU region.
This acquisition also ties into the MiCA (Markets in Crypto-Assets) regulation, which came into effect at the end of 2024. As more exchanges seek to comply with MiCA standards, Backpack’s timely entry into the EU market could position it for success.
5) Virtuals Protocol Teams Up with Animoca Brands for AI Gaming
Virtuals Protocol, a decentralized platform for autonomous agents, has partnered with Animoca Brands to boost AI gaming. The partnership will focus on funding the next generation of AI-driven games, including AI avatars and AI gamers that compete with real players. This collaboration aims to push the boundaries of traditional gaming and bring AI agents into the forefront.
With Animoca Brands’ extensive presence in the web3 gaming ecosystem, this partnership could create significant waves in both the AI and gaming spaces. The goal is to combine capital, technical expertise, and incubation to support the development of innovative AI gaming projects.
Final Thoughts
This week has seen a variety of developments that could shape the future of the crypto industry. From airdrop checkers like Swell and Jupiter to the challenges faced by Bybit in India, the landscape is constantly shifting. The drama surrounding Usual Protocol’s depeg and the regulatory shakeups with Backpack’s acquisition of FTX EU show just how volatile and dynamic the market can be.
Stay tuned as we continue to monitor these events and bring you the latest updates. The crypto world never stops, and there’s always something new on the horizon!
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