Brazilian brokerage giant XP Inc has officially launched its crypto trading platform XTAGE in Brazil, bringing a potential 3.6 million users to the crypto markets.
The news was broke in a Monday post by the Nasdaq Exchange Twitter account, noting that XP had rung the exchange’s “Opening Bell” to celebrate the launch of the XTAGE digital assets trading platform.
Initially, XP Inc’s 3.6 million clients will have access to Bitcoin (BTC) and Ether (ETH) trading, but the broker told Cointelegraph back in May that there were plans to “support other digital assets and investment products based on crypto assets in the future.”
Developed in partnership with major American stock exchange Nasdaq and crypto custody firm BitGo, XTAGE is fully integrated into the XP ecosystem, allowing users to make crypto trades on its existing app.
However, XP director of financial products Lucas Rabechini told Reuters in a July interview only clients with an “adequate investment profile for such operations” will be allowed into the XTAGE platform.
Built on Nasdaq’s trading technology, XTAGE also has integration with MetaTrade 5, a forex and stock trading tool.
Crypto custody firm BitGo is set to act as custodian, storing most of XTAGE’s assets in cold wallets not connected to the internet.
XP Inc is just the latest Brazilian fintech player to offer crypto trading services, following in the footsteps of Nubank and MercadoLibre.
Nubank, the largest digital bank in Brazil and Latin America, announced a partnership with Paxos in May of this year.
Following the announcement, customers were able to start buying, selling and storing cryptocurrencies directly through Nubank.
While MercadoPago, the fintech arm of MercadoLibre, announced their Brazilian customers could buy, sell and hold BTC, ETH and United States dollar-backed stablecoin Pax Dollar (USDP) in December 2021.
Singapore-based crypto lending platform Hodlnaut is seeking judicial management to manage its ongoing liquidity crisis and avoid the forced liquidation of assets in the current bear market.
The crypto lender informed its users in a Tuesday announcement that they have applied to the Singapore High Court to be placed under judicial management. The firm said:
“We are aiming to avoid a forced liquidation of our assets as it is a suboptimal solution that will require us to sell our users’ cryptocurrencies such as BTC, ETH and WBTC at these current depressed asset prices. Instead, we believe that undergoing judicial management would provide the best chance of recovery.”
Judicial management is a law in Singapore that allows financially troubled firms to rehabilitate themselves. Under this law, the court appoints an officer called the judicial manager for the troubled firm who takes over the charge from the company’s director for the time being. The appointment of a judicial manager can take up to a few months. Until the court confirms, the company may apply to appoint an interim judicial manager to act on a temporary basis in the same capacity.
Hodlnaut has recommended Tam Chee Chong, director of the financial consultancy firm Kairos Corporate Advisory, as the interim and subsequently judicial manager. The crypto lender said that Chong holds nearly four decades of experience in corporate finance advisory and has taken on the role of a judicial manager in various companies which underwent restructuring. The announcement read:
“With his experience and track record, we believe he will be able to execute our recovery plan and restructure the business effectively.”
The application is yet to be heard by the court and the firm has given Aug. 19 as the next date for further updates on their judicial management application.
If approved the law would also protect Hodlnaut from legal claims and proceedings temporarily which the company believes would provide a “breathing space to focus our efforts on the recovery plan to rehabilitate the company.”
Hodlnaut became one of the many crypto lenders to fall prey to the crypto contagion initiated by the TerraUSD Classic (USTC) collapse and fueled by the insolvency of multi-billion dollar crypto hedge fund Three Arrows Capital, which had borrowed several million dollars in loans from these crypto lenders. The crypto lender paused all trading activity along with deposits and withdrawals on Aug., 8 citing market conditions and liquidity crisis.
Although Hodlnaut avoided any 3AC exposure, multiple reports and on-chain data suggest the firm held about $150 million in USTC at some point. Hodlnaut didn’t respond to Cointelegraph’s requests for comments at press time.
As the Terra (LUNA) co-founder and CEO Do Kwon breaks his silence about the collapse of the algorithmic stablecoin Terra USD (UST) and LUNA, the community responded with various sentiments against the Terra executive.
Despite Kwon’s attempts to clear his name in an interview, community members remain unhappy with the Terra CEO. In a tweet, podcaster Eric Conner compared Do Kwon's situation with the Tornado Cash developer who has been arrested. According to Conner, Kwon scammed billions and is still “partying” while Tornado Cash developers wrote some code for privacy and are now “fearing for their lives.”
Crypto researcher FatManTerra also shared his thoughts on Kwon’s interview. The researcher described the interview as a “nothingburger.” FatManTerra tweeted that the Terra CEO lied about many things in the interview and tried to describe fraud in a way that avoids being implicated but fails at doing so.
Bitcoin (BTC) evangelist Cory Klippsten also weighed in. Klippsten encouraged those who lose their money in the Terra collapse to pursue legal action against Do Kwon. On the other hand, analyst Hailey Lennon believes that the Do Kwon interview doesn't deserve the community's attention. “I’m not sharing a link because it doesn’t deserve clicks,” she wrote.
While there’s a lot of criticism towards the recent Do Kwon interview. Some still try to shill LUNA and proclaim that Kwon is innocent. A Twitter user wrote that the Terra CEO is currently building a “better LUNA” and did not change his daughter's name.
In June, South Korean prosecutors imposed a travel ban on Terraform Labs employees. However, since Kwon is already in Singapore, the authorities may consider invalidating his passport in order to launch a comprehensive investigation against him.
In July, the authorities in South Korea acted against those who were linked to the Terra collapse. Prosecutors raided 15 entities including exchanges Upbit, Bithumb, Coinone, Korbit and Gopax. The act was a response to the many legal complaints against the company for the stablecoin incident.
This Daily Dose was brought to you by Cointelegraph.