Breaking News in Cryptocurrency: Kalshi Lawsuits, Stablecoin Growth, and Elon Musk’s Sale of X
Date: March 28, 2024
Today in the world of cryptocurrency, notable events unfolded including Kalshi’s legal battles with gaming regulators, insights on the potential for a $1 trillion stablecoin supply, and a major business shift involving Elon Musk. Here’s what you need to know.
Kalshi Takes Legal Action Against Gaming Regulators
Kalshi, a pioneering on-chain prediction market platform, has initiated lawsuits against gaming regulators in Nevada and New Jersey. This action comes after both states issued cease and desist orders, demanding that Kalshi halt its sports event contracts.
Furthermore, the Nevada Gaming Control Board’s cease and desist order also targets Kalshi’s election event contracts, which have seen increased traction in light of the upcoming 2024 elections in the United States.
Kalshi’s team argues that its event contracts—structured as two-sided markets that trade through swaps—are fundamentally different from traditional sports betting and fall outside the jurisdiction of state-level gaming regulators. The platform asserts that it operates under the regulatory oversight of the U.S. Commodities Futures Trading Commission (CFTC).
Potential Surge in Stablecoin Supply
In a separate development, David Pakman, managing partner at CoinFund, shared insights about the burgeoning market for stablecoins during Cointelegraph’s Chainreaction live show on X. Pakman emphasized that global stablecoin supply could reach an impressive $1 trillion by the end of 2025, marking a transformative phase for the cryptocurrency market.
“Currently, we are experiencing a stablecoin adoption upswell that’s set to increase significantly this year,” Pakman remarked, pointing to a potential rise from $225 billion to an aggressive $1 trillion within this calendar year. This growth, though moderate compared to established global financial markets, presents a critical shift that could stimulate blockchain finance.
Pakman also highlighted the potential impact of yield-bearing crypto exchange-traded funds (ETFs) on decentralized finance (DeFi) activity. He noted, “If ETFs can start providing staking rewards or yield to holders, there will be a substantial increase in DeFi engagement.”
According to Glassnode, the stablecoin supply hit a new high of over $208 billion on March 28, indicating that the market may still be in the mid-cycle phase of growth rather than reaching its peak.
Elon Musk’s Sale of X Raises Eyebrows Amid Ongoing Legal Issues
In a significant business maneuver, billionaire entrepreneur Elon Musk transferred ownership of his social media platform X to his artificial intelligence firm, xAI. This transaction coincides with a pivotal legal development, as a U.S. judge rejected Musk’s bid to dismiss a class-action lawsuit alleging he defrauded former Twitter shareholders by delaying the disclosure of his investment in the platform.
The ownership transfer on March 28 has added new complexities to the ongoing lawsuit against Musk, with analysts noting that it opens xAI to possible liabilities related to the fraud allegations. Adam Cochran, a partner at Cinneamhain Ventures, described the situation as “a whole lot spicier” for Musk now that xAI is entwined in the legal affairs surrounding X.
Musk disclosed that the all-stock deal values xAI at $80 billion while placing X’s valuation at $33 billion, which factors in $12 billion in debt linked to its $45 billion purchase price in April 2022. ## Conclusion
As these stories develop, they reflect the dynamic and often contentious landscape of the cryptocurrency market and its intersection with regulatory frameworks. Analysts and investors alike will be closely watching the outcomes of Kalshi’s legal challenges, the future of stablecoins, and the implications of Elon Musk’s latest business ventures. Stay tuned for further updates as the situation unfolds.
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