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Tether is set to launch its own AI platform in the first quarter of 2025, according to CEO Paolo Ardoino. The company plans to invest at least half of its projected $10 billion profits into this initiative, as demand for its USDT stablecoin continues to grow, with a market cap of approximately $140 billion and a significant increase in wallet holders.
The European Union has mandated the delisting of Tether ($USDT) from exchanges by December 30, 2024, unless it complies with the Markets in Crypto-Assets (MiCA) regulations, which require transparency and regular audits. This decision could disrupt liquidity in EU crypto markets and set a global precedent for stablecoin regulations, potentially leading to increased scrutiny for issuers worldwide. The absence of $USDT may force exchanges to rely on alternatives like USD Coin ($USDC) or Dai ($DAI), which must also meet MiCA standards, risking market instability.
Elon Musk's SpaceX utilizes stablecoins to mitigate foreign exchange risks associated with payments from customers in various countries for its Starlink service. Venture capitalist Chamath Palihapitiya highlighted that this strategy allows SpaceX to avoid the complexities of currency conversion and wire transfers. He also noted that stablecoin providers are emerging as significant competitors to traditional banks and payment systems, potentially reducing transaction costs and enhancing global GDP.
Stablecoins on Ethereum's layer-2 networks have reached a significant milestone of $13.5 billion, driven by their increasing adoption and practical applications. Tether (USDT) leads the market with a capitalization of $140.88 billion, while the Dencun upgrade has enhanced transaction efficiency, resulting in a surge of daily transactions across various layer-2 solutions. Despite some networks experiencing declines, the overall growth of layer-2 ecosystems is reshaping Ethereum's future, highlighting the pivotal role of stablecoins in decentralized finance.
Ethereum’s layer 2 networks have reached a historic milestone, holding over $13.5 billion in stablecoins, driven by solutions like Arbitrum One and Base. The total market capitalization of stablecoins has surpassed $200 billion, reflecting their growing importance in the crypto ecosystem and potential for transforming financial transactions. Experts anticipate continued growth in stablecoin adoption as blockchain infrastructures improve.
Tether has invested $775 million in Rumble, a video-sharing platform that champions free speech and aims to compete with YouTube. CEO Paolo Ardonio emphasized the importance of independence and resilience, while Rumble's CEO Chris Pavlovski expressed excitement about their partnership and plans to challenge YouTube's dominance. Following the investment announcement, Rumble's share price surged by over 51%.
Tether has announced a $775 million investment in Rumble, a video streaming platform that promotes free speech and positions itself as a YouTube alternative. The deal includes an initial cash investment of $250 million and will grant Tether 103.3 million shares at $7.50 each, expected to close in early 2025. Rumble plans to create a Bitcoin reserve, aiming to purchase up to $20 million in Bitcoin, reflecting its belief in the cryptocurrency's potential as a hedge against inflation.
The implementation of the Markets in Crypto Assets (MiCA) regulation in the EU aims to enhance oversight of crypto transactions but risks diminishing Europe's competitive edge in the global market. Tether's delisting from European exchanges due to non-compliance with new regulations may limit liquidity and trading options, pushing investors towards the Euro. As the U.S. prepares for a pro-crypto administration, Europe faces challenges in maintaining its appeal as a crypto hub, with venture capital investments expected to decline significantly in 2024.
Rumble has secured a $775 million investment from Tether, with plans to use $250 million for growth initiatives and the rest for a self-tender offer for up to 70 million shares. Following the announcement, Rumble's shares surged 35% in post-market trading. Tether aims to explore advertising and crypto payment solutions with Rumble, aligning their missions around decentralization and free speech. The transaction is expected to close in Q1 2025, pending regulatory approvals.
Ethereum experienced a significant decline, trading at $3,473.09, down 10.31% on the day, marking its largest one-day loss since November 2022. This drop reduced its market cap to $423.79 billion, representing 12.41% of the total cryptocurrency market. Over the past week, Ethereum's value has decreased by 10.78%, and it remains 28.60% below its all-time high of $4,864.06 from November 2021.
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