Bitcoin Breaks $100K Again, Amazon Eyes Crypto Reserve, and Ripple Receives Approval for Stablecoin

Takeaways

• Amazon shareholders urge the company to allocate 5% of its reserves to bitcoin: The proposal highlights bitcoin’s outperformance against traditional assets and echoes similar moves by companies like MicroStrategy and Tesla.
• Crypto liquidations hit $1.5 billion Monday as bitcoin dipped below $95K: But the world’s largest cryptocurrency rallied past $101,000 on Wednesday after positive inflation data set the stage for a rate cut next week.
• Ripple's RLUSD stablecoin secures approval from New York’s financial regulator: The launch will now proceed with exchange and market-maker partnerships already in place.
• Hong Kong accelerates crypto licensing as global competition heats up: Plans include streamlined approvals for crypto trading platforms and new regulation for stablecoins.
• The Cardano Foundation's X account was hacked, leading to fake announcements about a token and an SEC lawsuit: The breach triggered significant trading activity and community confusion before being addressed by the Foundation.

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Amazon Shareholders Propose Allocating 5% of Reserves to Bitcoin

Led by the National Center for Public Policy Research (NCPPR), Amazon shareholders are advocating to allocate at least 5% of the company’s reserves to bitcoin. In a proposal submitted to the e-commerce giant, they argue that bitcoin’s inflation-beating qualities and long-term appreciation outperform traditional assets like bonds, which currently dominate Amazon’s $88 billion treasury holdings.

The proposal draws comparisons to companies like MicroStrategy and Tesla that have successfully integrated bitcoin into their treasuries, emphasizing Amazon's responsibility to explore alternative assets. It criticizes Amazon’s current asset mix of cash, bonds, and marketable securities as insufficient in protecting shareholder interests amid inflationary pressures.

Microsoft shareholders submitted a similar bitcoin diversification proposal that was rejected on Tuesday. If adopted by Amazon, the move would mark a significant shift in corporate treasury strategies among tech giants, potentially setting a precedent for broader adoption of crypto in mainstream companies.

Bitcoin Briefly Dips Below $95K Before Surging

Cryptocurrency liquidations soared to $1.51 billion within a 24-hour period on Monday, with nearly 514,400 traders experiencing liquidation after bitcoin briefly dipped to $94,900. Long positions reportedly accounted for $1.38 billion of the liquidations.

Analysts linked the sharp sell-off to an over-leveraged market, triggering a wave of margin calls. Monday's liquidation tally exceeded the $1.1 billion liquidated on December 5, marking the largest one-day liquidation volume since December 2021.

But bitcoin recovered quickly from the dramatic sell-off Wednesday after the US Bureau of Labor Statistics said CPI–a closely watched inflation measure–rose 2.7% in November, which fell in line with analyst estimates. Bitcoin surged past $101,000 on Wednesday before paring gains, settling just below $100,000 by Thursday afternoon.

The CPI news paves the way for the Federal Reserve to cut interest rates by 25 basis points during their December meeting next week, which is viewed as a positive catalyst for crypto prices.

Ripple’s RLUSD Stablecoin Receives Approval from New York Regulator

Ripple’s much-discussed RLUSD stablecoin received final approval from the New York State Department of Financial Services (NYDFS). Ripple CEO Brad Garlinghouse confirmed the news on X, stating, "Exchange and partner listings will be live soon."

RLUSD is designed to operate on both the Ledger and Ethereum networks. Ripple has also secured partnerships for its stablecoin with a variety of crypto exchanges. In addition, market makers such as B2C2 and Keyrock will provide liquidity for the token.

Ripple’s stablecoin will be entering a competitive market, with Tether’s USDT and Circle’s USDC still firmly dominating with market caps of $138 billion and $40 billion, respectively. Although with recent excitement surrounding Ripple’s XRP’s token causing a price rally and increased brand awareness, RLUSD looks poised to launch on a solid foundation.

Hong Kong to Expedite Crypto Licensing Amid Intensifying Global Competition

Hong Kong is ramping up efforts to streamline its crypto licensing process. Joseph Chan, Acting Secretary for Financial Services and the Treasury (FSTB), announced that the Securities and Futures Commission (SFC) would introduce a “swift licensing process” for crypto trading platforms. A consultative panel aimed at supporting licensed platforms is expected to commence operations in the next few months.

Since launching its licensing regime in June 2023, Hong Kong has granted licenses to platforms like OSL Exchange and HashKey, enabling them to offer retail crypto trading services. In addition to facilitating platform operations, the government is taking steps to regulate stablecoins, with plans to introduce a legislative bill this month requiring fiat-referenced stablecoin issuers to secure licenses.

The region’s regulatory expansion also includes changes to rules surrounding crypto custody services, with proposals for a licensing framework expected next year.

Cardano Foundation’s X Account Hacked, Posts Fake Token

The Cardano Foundation’s official X account was hacked on Sunday, leading to a false announcement of a Cardano-branded Solana token called $ADASOL and a fake notice of an SEC lawsuit. The hacked account initially shared a detailed thread promoting the fraudulent token, even linking to genuine Cardano resources to lend credibility to the scam. Over $500,000 worth of $ADASOL tokens were traded before users identified the scam.

Later, the compromised account posted a false claim stating the Foundation had been served with an SEC lawsuit and would cease support for the $ADA token. The post disabled replies but garnered over 256,000 views. Cardano community members and the Cardano Foundation’s LinkedIn page swiftly confirmed the breach and urged users to disregard the posts. The Foundation stated that its team was working to restore security and reassured the public that no other systems were compromised.

-The Gemini Team