Tether was once the stablecoin king. Now its dominance is threatened by newcomers and legal uncertainty.

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In 2018, Jeff Bezos told Insider that innovators “have to be willing to be misunderstood.” So when Stuart Hoegner, the top lawyer at tether, began an indignant blog post in May citing Bezos, it suggested he saw his product as the unfairly maligned bleeding edge of a crypto revolution.

Others aren’t so sure. Regulators are training their sights on tether, the biggest of the dollar-pegged cryptocurrencies known as stablecoins.

On Monday, reports circulated that the DOJ was eyeing a criminal bank fraud case against tether execs’ conduct years ago. The next day, further reports indicated a presidential committee led by Treasury Secretary Janet Yellen was homing in on tether, likening it to an unregulated money-market fund – the kind which caused financial turmoil during the 2008 crisis and again when COVID-19 rattled markets.

But even as tether’s legal troubles reach an apex, the stablecoin has in some ways become less relevant.

So far this year, tether’s share of the overall stablecoin supply has tumbled from 75% to 57%, according to data from The Block. Behind the decline are new challengers, including Circle’s USD Coin, Binance USD, Gemini, and DeFi-focused Dai.

The problem for tether is that the technological barriers around its stablecoin business are not very high.

All the various US dollar-backed stablecoins “are not that different in terms of what they’re representing,” Denelle Dixon, CEO of the Stellar Development Foundation, told Insider. Stellar hosts USD Coin on its network.

“But the companies that support those tokens and what they do behind the scenes is really important,” she added.

And what tether does behind the scenes has become a central focus. Alongside the recent bank fraud allegations, past issues with its parent company’s misconduct have dogged tether, leading New York state to ban trading.

Moreover, there are two sets of complaints about the stablecoin itself: the quality of its reserves and transparency.

First, regulators worry that tether’s reserves – which in principle should back each tether with one dollar – could be of dubious quality. After the company released a reserves breakdown this year, JPMorgan estimated that its $30 billion in commercial paper, a cash-like type of short-term corporate debt, would make tether one of the world’s biggest investors in the asset.

Yet unlike other massive commercial paper holders, tether does not disclose the make-up of what it owns. Hoegner told CNBC his company’s holdings included international paper – leading anchor Jim Cramer to speculate tether could be a “ticking time bomb” holding default-prone Chinese paper. A recent academic paper suggested tether could be subject to bank runs, where the company is unable to meet a wave of dollar redemptions.

Second, some think tether’s disclosures, which were recently beefed up, are still insufficient. The company has not yet produced a full independent audit, though Hoegner told CNBC that one was “months away, not years.” It has, however, produced an independent “attestation” – essentially verification that tether’s balance sheet is what the company says.

Tether has disputed or denied the accusations against it. It says its commercial-paper holdings are highly rated, it has plenty of cash to cover redemptions, and its disclosure efforts are setting a “new industry standard for transparency.”

“It’s a classic entrepreneur’s dilemma,” Sadie Raney, CEO of crypto hedge fund Strix Leviathan, told Insider. Firms operating in scantily regulated industries, like tether, must choose whether to plow ahead and risk blowback or take it slow and give up market share, she said.

For Raney, who also co-founded the SEC-registered crypto robo-advisor Makara, using tether is too risky when her business relies on a government green light.

“If we utilize a stablecoin, we do not use tether, [although] we have in the past,” said Raney, whose company now uses Gemini. “The regulatory uncertainty with tether was what kept us from continuing to use it.”

Not everyone is deterred, though. Valkyrie CIO Steven McClurg told Insider that tether’s public attestation helped soothe some of his prior fears, saying its publication has been “really good for the industry.”

“I don’t think there are really any concerns anymore,” he added.

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Tether executives are facing a criminal probe over whether they committed bank fraud, report says

GettyImages 1025441174
In this photo illustration, a smartphone displays the Tether market value on the stock exchange via The Crypto App.

Executives from stablecoin operator Tether are said to be facing a criminal probe over whether they committed bank fraud, according to a report on from Bloomberg on Monday.

Federal prosecutors are looking into whether Tether concealed from banks that transactions were linked to crypto, said Bloomberg, citing three people with direct knowledge of the matter who asked not to be named because the investigation is confidential.

The US Justice Department’s investigation is focused on conduct that occured at Tether several years ago, the report said.

According to one of Bloomberg’s sources, federal prosecutors sent letters to individuals at Tether informing them that they’re targets of an investigation. The notices also signal that a decision on whether to bring a case could be made soon. Senior Justice Department officials will ultimately determine whether charges are warranted.

If the probe does find executives guilty on criminal charges, it would be a significant development in the US’s crackdown on digital currencies. Tether’s dollar-linked cryptocurrency is the largest stablecoin with more than $62 billion in circulation. The stablecoin is used by investors to trade bitcoin without needing to exchange crypto for fiat money, a process that takes extra time and money.

It’s estimated that Tether underpins more than half of all bitcoin trades, Bloomberg said.

In a statement to Bloomberg, the company said: “Tether routinely has open dialogue with law enforcement agencies, including the DOJ, as part of our commitment to cooperation and transparency.”

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Mastercard has upgraded its crypto card to allow customers to use stablecoins to make purchases

Mastercard
Mastercard

  • Mastercard said it will be working with 9 partners to upgrade its crypto card to include crypto purchases.
  • Crypto companies Paxos and Circle are two of the firms that will work on the project, Mastercard said.
  • The company said in a blog post digital payments were critical for keeping the economy growing.
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Mastercard will upgrade its crypto card so its clients can make purchases using stablecoins, as well as a range of traditional cryptocurrencies, to promote the kind of token they say will help grow economic activity.

The payments company said in a press release on Tuesday it would upgrade its existing crypto card payment program that launched in February this year with the help of a series of fintech firms.

“Today, not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier,” Mastercard’s Raj Dhamodharan, who is executive vice president of digital asset and blockchain products, said in a statement.

Stablecoins are privately issued cryptocurrencies that are backed by an underlying asset, such as the US dollar, or even short-dated government bonds. This peg helps remove some of the volatility that can deter more risk-averse crypto users.

Tether, the largest stablecoin by market capitalization, is much less volatile than bitcoin. It has barely changed in value over the last year, declining by 0.1%, compared to bitcoin, which has risen by 220% in this same time.

Mastercard has said previously it is also committed to helping central banks shape and develop their own digital currencies (CBDCs), which are digital tokens like cryptocurrencies, but are not decentralized.

Blockchain firm Evolve Bank & Trust and Paxos Trust and Circle are some of the companies that Mastercard said it was talking to about the stablecoin program, along with bitcoin payments firm BitPay and cloud firm Uphold.

“BitPay believes the future of payments is on the blockchain because it transforms how consumers send, receive, and store money around the world,” Stephen Pair, co-founder and CEO of BitPay.

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Cryptocurrencies, stablecoins and central-bank digital currencies are all the rage. We break down what they are and what you need to know about them

Bitcoin logo mural
A bitcoin artwork by Stacey Coon, Anastasia Sultzer, and Nanu Berk at the Bitcoin 2021 convention.

  • Cryptocurrencies and stablecoins have boomed in 2021, sucking in investors.
  • The world’s central banks are increasingly looking to create their own digital currencies.
  • Insider cuts out the jargon and explains the key differences and what they’re used for.
  • See more stories on Insider’s business page.

Cryptocurrencies and stablecoins have boomed in 2021. And central banks around the world are increasingly keen on their own digital currencies. But how do they all work and what are they used for?

Cryptocurrencies

Cryptocurrencies are basically digital currencies that aren’t controlled or issued by a centralized authority, such as commercial or central banks.

These coins are sent back and forth on enormous peer-to-peer networks – essentially groups of computers that share data.

The innovation of cryptocurrencies is that the “ledger” that keeps track of transactions – known as the blockchain – is overseen and verified by network users known as “miners.” Miners collectively do the work of a central authority, checking people aren’t trying to spend coins twice, and earning newly created bitcoin in return.

“What we aim to do with the blockchain is to make this ‘trustless’ so that nobody has overall control of it,” says Ben Edgington, a software developer for the ethereum network. “It’s fully democratic [and] it’s fully accessible.”

Bitcoiners say it’s ‘digital gold’

When bitcoin was launched by the anonymous person or group Satoshi Nakamoto in 2008, many thought it could be used for payments. In reality, it’s way too volatile.

Now, many bitcoiners say its scarcity – only 21 million coins can be mined – means it will hold its value and protect investors against inflation. Others say it’s purely speculative.

Other cryptocurrencies have different uses. The ethereum network, for example, can be used to build applications like collectible “non-fungible tokens.

Cryptocurrencies are highly risky

In bitcoin and other networks that follow its model, miners verify transactions by using large amounts of computing power to solve complex math problems. Bitcoin’s mining system uses as much electricity annually as medium-sized countries. Other cryptocurrencies are less energy intensive.

Cryptocurrencies are largely unregulated and are some of the riskiest investments out there. Bitcoin has plunged around 50% since its April record high of close to $65,000.

Stablecoins

Wild volatility has been a huge deterrent for some investors as it can make crypto harder to use. That’s where stablecoins come in. Stablecoins maintain a “stable” value with a peg to other assets, like the dollar.

For example Tether, the third-biggest cryptocurrency by market cap, is designed to be pegged to the US dollar. It is backed by assets such as dollars and Treasury bills.

Traders love stablecoins

Interest in stablecoins has shot up too. They’re central to cryptocurrency trading, by allowing investors to easily move in and out of more volatile assets like bitcoin.

Stablecoins are also commonly used in the world of decentralized finance – a booming ecosystem that lets people create financial products without the need for central authorities.

Regulators are worried

But they’re facing heavy scrutiny. In May, the Federal Reserve’s Lael Brainard raised concerns stablecoins could default and destabilize the financial system. New York also banned Tether trading after an investigation found it had overstated its US dollar backing.

As with the rest of the cryptocurrency world, a lack of regulation means investors have almost no protection if their stablecoin suddenly collapses.

Central bank digital currencies

Countries are trying to find ways to make it easier to spend and send money – and keep control of payment systems that are increasingly private (think PayPal or Visa). A digital currency issued by central banks directly to consumers could be the answer.

Right now, private banks and payment companies are the most important players in the everyday use of money. But a central bank digital currency (or CBDC) would be a digital version of banknotes and coins, letting people hold and make payments in central bank money.

China is currently leading the pack out of the world’s big economies. But the European Central Bank and the Bank of England are seriously looking into it.

CBDCs could make payments safer

CBDCs could speed up transactions for individuals and big institutions, Chris Giancarlo, founder of non-profit Digital Dollar Project, told Insider. The DDP plans to test CBDCs in real-world situations.

“If you can send a photograph to Japan in a second, why can’t you send money in a second?” he said.

Central bankers also think CBDCs can make the financial system safer. Although unlikely, even a big global payment system could feasibly collapse.

Some bankers are concerned

One concern is privacy. Some governments may design CBDCs so transactions are anonymized, like cash, but others won’t. Privacy questions have arisen over China’s trial digital yuan.

“With a CBDC, the government would have direct access to all your spending patterns,” Bobby Ong, co-founder of data firm CoinGecko, says.

Some bankers are worried CBDCs could remove them from key parts of the financial system. CBDCs could reduce the demand for commercial bank accounts and cut banks out of the business of verifying transactions, although central banks are working on the details.

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Stablecoins should be regulated like banks and central bank digital currencies could tame these ‘wildcat’ crypto tokens, according to research from the Fed and Yale

US dollar
US dollar

  • Researchers at the Federal Reserve and Yale University have released a report titled ‘Taming the Wildcat Stablecoins.’
  • The report suggested stablecoins should be regulated like banks, and promoted CBDCs.
  • The report preceded the Treasury’s working group meeting Monday on stablecoins.
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Cryptocurrencies that are pegged to a stable asset – known as “stablecoins” – should be regulated as strictly as commercial banks and those that are not should be wiped out to prevent instability in the global payments system, according to a report from researchers at the Federal Reserve and Yale University.

The report, titled “Taming the wildcat stablecoins”, was released over the weekend ahead of a meeting of a Treasury Department working group on digital assets on Monday. In it, researchers suggested stablecoins should be issued by insured banks and backed by government bonds.

But anyone can issue a stablecoin and it is these privately produced tokens that have regulators worried.

Tether, for example, is the world’s third-biggest cryptocurrency by market value. It’s designed to be pegged to the US dollar and backed by assets such as dollars and Treasury bills. But regulators in New York recently banned it after an investigation found it had overstated its US dollar backing.

In May, the Federal Reserve’s Lael Brainard raised concerns stablecoins could default and destabilize the financial system.

“Policymakers have a couple of ways to address this development, and they better get going,” the report said.

The report’s authors said the federal government could either “convert stablecoins into the equivalent of public money by (a) bringing stablecoins within the insured bank regulatory perimeter or (b) requiring stablecoins to be backed one-for-one with Treasuries or reserves at the central bank; or (2) introduce a central bank digital currency and tax private money out of existence.”

The US is not the only government that feels the need to cool down the risks that stablecoins present central banks.

“Some commercial organizations’ so-called stablecoins, especially global stablecoins, may bring risks and challenges to the international monetary system, and payments and settlement system etc,” Fan Yifei, a deputy governor of the People’s Bank of China, told CNBC earlier this month.

The Treasury Department called Monday’s meeting to address some of these issues.

“Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system,” Treasury Secretary Janet Yellen said in a statement Friday. “In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities.”

Cryptocurrency usage has grown across the world, and most major central banks are now considering issuing their own digital currencies.

The report suggested central bank digital currencies (CBDCs) could be issued either as a deposit account, or as a digital coin, with the latter being the preferred option, as it could operate alongside traditional banking tools like cards. The first option would mean central banks will have to open accounts and administer payments for users.

“The introduction of a central bank digital currency allows the government to maintain monetary sovereignty,” the report said.

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The man at the center of the world’s largest stablecoin began his career as a plastic surgeon, went by ‘Merlin,’ and once had to pay Microsoft to settle a counterfeiting case

Photo illustration of Bitfinex cryptocurrency exchange website taken September 27, 2017. Picture taken September 27, 2017. REUTERS/Dado Ruvic/Illustration
Photo illustration of Bitfinex cryptocurrency exchange website

  • A report from the Financial Times reveals new details about Giancarlo Devasini, the CFO of tether.
  • Tether is the main source of liquidity in the crypto market, letting traders move in between tokens and dollars with relative ease.
  • Some of Devasini’s businesses were plagued by scandal. In 1996, he paid $65,000 to Microsoft to settle claims of counterfeiting.
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A report from the Financial Times is revealing new details about Giancarlo Devasini, the CFO of tether, who has risen from obscurity to become one of the most pivotal people in crypto.

While Devasini is not CEO, the 57-year-old is seen as the central figure at both tether and Bitfinex, the crypto exchange that controls tether, the $62 billion stablecoin.

“At the end, I am the guy that calls the shots in Bitfinex,” he said in a 2016 online chatroom, per the FT.

Tether is the main source of liquidity in the crypto market, letting traders move in between tokens and dollars with relative ease. Likewise, Bitfinex is seen as setting the temperature for the broader market, according to an executive quoted by the FT.

Devasini began his career with a short stint in plastic surgery, a profession he quickly grew to loathe. In a 2014 interview, he said he felt the work was a “scam” and recalled failing to talk a woman out of a breast reduction, lamenting her breasts “fit her perfectly.”

In the mid-1990s, a few years after leaving behind plastic surgery, Devasini founded several computer companies, adopting the monikers “Merlin” and “merlinmagoo” along the way.

But some of his businesses were plagued by scandal. In 1996, he paid $65,000 to Microsoft to settle claims of counterfeiting. In 2007, Toshiba sued him for patent infringement. In 2010, one of Devasini’s companies was banned from Tradeloop, an online electronics marketplace, after a customer complained it had not sent the promised products.

Tether disputed the nature of these disputes. It told the FT the Microsoft case was due to a dodgy supplier, the Toshiba lawsuit “went nowhere,” and the Tradeloop incident was a “minor commercial dispute.”

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Hong Kong police arrest four over alleged $155 million Tether money laundering scheme

Bitcoin symbol atm
Regulators are paying close attention to the crypto world.

  • Hong Kong authorities arrested four men over an alleged $155 million money laundering scheme, according to reports.
  • The men, aged between 24 and 33, had made transactions in Tether on a trading platform, officials said.
  • Cryptocurrencies have long been used in crime, as they can provide anonymity and be hard to trace.
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Hong Kong customs authorities have arrested four people in connection with a suspected $155 million money laundering scheme using the cryptocurrency Tether.

According to reports in Bloomberg and local media, four men aged between 24 and 33 were arrested in an operation called “Coin Breaker.”

Hong Kong customs officials told the media that the men had opened various bank accounts and then made transactions in Tether – the biggest stablecoin – through a crypto exchange, outlets reported. The transactions involved HK$1.2 billion of cryptocurrency, worth roughly $155 million.

The officials said it was the first time they had detected a suspected money laundering scheme that used digital currency. They did not name the crypto trading platform involved. Insider has contacted the Hong Kong customs office.

Read more: Your ultimate crypto reading list: 27 books that experts say everyone should read to better understand digital currencies and invest in them profitably

Cryptocurrencies have long been used in crime, thanks to the fact that they can be used anonymously and are hard to trace.

On Friday, the US District Court in Seattle said a 33-year old identity thief who used bitcoin to avoid detection was sentenced to three years in prison.

And on Tuesday, London’s Metropolitan Police said it had seized $249 million worth of cryptocurrency in a suspected money laundering case.

Top lawmakers have repeatedly raised concerns about crypto crime. US Treasury Secretary Janet Yellen in January suggested “curtailing” cryptocurrencies saying: “Many are used – at least in a transaction sense – mainly for illicit financing.”

In Hong Kong, as in the UK, crypto companies have to register with the financial watchdog for anti-money laundering purposes.

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Crackdowns by regulators could pop the crypto bubble and mean bitcoin is unsuitable for professional investors, says UBS

China bitcoin mining crackdown Chinese flag cryptocurrencies
China is increasingly cracking down on bitcoin.

  • Crackdowns by regulators make bitcoin unsuitable for pro investors and could pop the bubble, UBS said.
  • The bank pointed to China clamping down on mining, and the growing concern over crypto in the UK and US.
  • It also said the common practice of trading crypto with leverage is likely to draw regulators’ attention.
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Regulatory crackdowns could pop bubble-like crypto markets and mean bitcoin is unsuitable for professional investors, Swiss banking giant UBS has warned its clients.

In a note sent out last week, UBS’ global wealth management team said China’s latest crackdown had hurt crypto prices and operators. It also said there were signs that tougher rules could be in the pipeline in Western markets such as the US and UK.

“Regulators have demonstrated they can and will crack down on crypto,” the note read. “So we suggest investors stay clear, and build their portfolio around less risky assets.”

It added: “We’ve long warned that shifting investor sentiment or regulatory crackdowns could pop bubble-like crypto markets.”

Read more: The top US portfolio manager at $2 trillion Amundi explains why bitcoin and ether won’t play a bigger role in the financial system in 10 years than they do now – and says a regulatory storm is coming for crypto

UBS’ warning to clients said a number of recent regulatory developments were a concern for cryptocurrencies.

China renewed its restrictions on the computing process known as cryptocurrency “mining” in June, with authorities in Sichuan province closing down numerous sites.

In the US, Boston Federal Reserve’s president Eric Rosengren said stablecoin Tether was one of the “financial stability challenges” it is watching. And the UK’s Financial Conduct Authority banned crypto exchange Binance from operating in the country.

UBS’s note added: “Crypto trading practices, such as extending 50X or 100X leverage, appear fundamentally at odds with mainstream finance regulation.”

The Swiss bank’s concern about cryptocurrencies is shared by many other lenders. Goldman Sachs analysts in May said bitcoin is “not a suitable investment” and listed concerns about its volatility and lack of cash flow.

However, Wall Street is divided on cryptocurrencies – as are banks themselves. Goldman Sachs, for example, relaunched its crypto trading desk this year to take advantage of the crypto boom, in spite of its reservations.

UBS said in its note: “While we can’t rule out future price gains in cryptos, we see this as a speculative market that poses significant risks to professional investors.”

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Ether and other major cryptocurrencies follow bitcoin higher after Elon Musk says Tesla may accept it as payment again

The photo shows physical imitations of cryptocurrency
  • Major cryptocurrencies rose in lockstep with bitcoin after Elon Musk tweeted that Tesla may accept the popular coin as payment.
  • Ether, tether, binance coin, cardano, and dogecoin, all edged higher over the last 24 hours.
  • An expert said she is unsure whether the most recent pop signals a continuing upward trend, but she does know one thing: “Musk is responsible.”
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Major cryptocurrencies rose on Monday, moving in lockstep with bitcoin‘s jump after Elon Musk tweeted that Tesla would accept the cryptocurrency as payment again once mining can be done using cleaner energy.

Bitcoin edged higher Monday following the tweet, inching closer to $40,000, its highest level in two week.

Here’s where the major cryptocurrencies stood in the past 24 hours as of Monday morning ET:

Alexandra Clark, sales trader at GlobalBlock, a UK-based digital asset broker, said that Sunday, when the Tesla chief tweeted, was a turning point for bitcoin, whose movements often influence the broader market.

“A number of analytic tools, including the spent output profit ratio and stock-to-flow, all firmly point to an undervalued bitcoin at current prices, although many analysts are still on the fence when it comes to determining whether the digital asset is ready to continue its uptrend,” she said in a note. “What we do know, is that Musk is responsible.”

The cryptocurrency market has yet to recover from its May crash when it suffered a sharp sell-off, wiping out 47% of its entire value. Most coins have been moving sideways as of late, after peaking to their record highs earlier this year.

Yet a recent finding from crypto-asset broker Voyager revealed that 81% of respondents in a recent survey are more confident in the future of cryptocurrency following last month’s crash. Steve Ehrlich, CEO of Voyager, said this increase was a much higher percentage compared to the last survey conducted in April.

But for Pankaj Balani, CEO at Delta Exchange, the surge is temporary. He said that given the market’s little appetite to own risk, most traders would be inclined to own bitcoin risk rather altcoins.

“We have seen altcoins underperform bitcoins in this bounce and we expect the same to continue over the next few months,” he said. “Capital has been rotating out of altcoins into bitcoin.”

Bitcoin market capitalization dominance, which had hit a low of 40% has already bounced to 46%.

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Crypto-linked stocks plummet amid massive sell-offs in bitcoin and ethereum

Bitcoin Bubble
  • Bitcoin and ethereum both fell double digits on Wednesday before a recovery in a dark day for the crypto world.
  • Crypto-linked stocks like Coinbase, Riot Blockchain, MicroStrategy, and more all fell in response.
  • The start of the bear market for crypto came after Elon Musk said Tesla would no longer accept bitcoin on May 12.
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Cryptocurrency linked-stocks plummeted on Wednesday amid massive sell-offs in crypto leaders bitcoin and ethereum.

Shares of the cryptocurrency exchange, Coinbase, fell as much as 10%, while shares of cryptocurrency miners like Riot Blockchain and Marathon Digital Holdings were down as much as 17% and 18%, respectively.

Michael Saylor’s Microstrategy, which just “bought the dip” in bitcoin with $10 million at an average price of $43,663 per coin, was down as much as 15% on the day.

Grayscale Bitcoin Trust sank more than 6% on Wednesday as well, and even Tesla saw its stock drop more than 3% on the dark day for cryptocurrency enthusiasts.

Cryptocurrencies as a whole saw roughly 15% wiped off their total market cap on the day, according to data from CoinMarketCap.com, as altcoins fell in tandem with crypto leaders bitcoin and ethereum.

All of the top ten cryptocurrencies by market cap, except the stablecoins, fell double digits on Wednesday.

The cryptocurrency bear market began on May 12, when Elon Musk tweeted that Tesla would no longer accept bitcoin as a payment method due to the environmental impact of its computational mining tactic for minting new coins.

Then on Tuesday, the Chinese government reinforced its previous ban on financial institutions and payments companies operating in the cryptocurrency business.

The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China said in a statement that cryptocurrencies “are not supported by real value” and argued speculative trading of cryptocurrencies is “seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”

The historic single-day fall for cryptocurrencies comes just a day after Galaxy Digital’s Mike Novogratz shrugged off the recent crypto-slump.

“It’s easy to get buried in the volatility of the day,” Novogratz said, according to a transcript on Sentieo, a financial-research site. “Elon Musk’s Twitter comments, bitcoin going down 4,000 points, and everyone starts running around like chickens with their head cut off.”

Novogratz said he expects the total value of crypto assets to triple, or even quadruple, to between $6 trillion and $8 trillion in the coming years.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

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