Hello and welcome to this week's edition of Overbit Insights.
Following China's crypto crackdown, the USDT sell-off against the yuan has intensified on crypto OTCs.
China's stepped-up crackdown on cryptocurrency trading appears to have frightened some retail users into selling USDT on crypto exchanges' over-the-counter (OTC) markets.
Within a day of China announcing its tightened restrictions, OTC merchant quotations for buying and selling USDT against the Chinese yuan on Huobi, OKEx, and Binance fell below 6.2 yuan per USDT.
As of press time, merchants on the three largest exchanges serving Chinese crypto consumers were offering rates of roughly 6.19 yuan per USDT. Merchants on the cryptocurrency market Huobi are even quoting 6.12 yuan per USDT.
According to historical data obtained by The Block, before China announced the enhanced measures, the quotes on these exchanges were over 6.37 yuan per USDT, representing a 1.5 per cent negative premium over the exchange rate between the US dollar and the Chinese yuan. However, the negative premium has increased to 4.3 per cent in the last day. One US dollar is currently worth around 6.47 Chinese yuan in the foreign exchange market.
In the latest crackdown statement, the People's Bank of China and nine government and judicial institutions stated that all crypto-related services are now banned, including any service that allows customers to swap fiat money for crypto assets.
Huobi, OKEx, and Binance have yet to make any moves concerning their yuan OTC marketplaces. Peer-to-peer trading via OTC merchants is currently the sole option for Chinese consumers to fund their crypto trading with fiat currencies and the only way for them to payout.
Closing out this week's edition of Overbit Insights, we look at some strong words on crypto adoption from Strike CEO Jack Mallers.
Following the launch of Bitcoin Tipping on Twitter, Strike CEO claims that Bitcoin will disrupt the payments industry. Bitcoin, according to the CEO of crypto wallet company Strike, will have an influence on the payments sector once it is linked to one of the most extensive internet networks.
According to CEO Jack Mallers in a new CNBC interview, his company's recent collaboration with Twitter to bring BTC tipping to the social media giant would make paying folks as simple as texting them over the internet.
"We're using Bitcoin to make tweeting at someone as simple as sending money to someone, anywhere in the world, at any time, any place, in any currency... You have total payment disruption, which has been a long time coming," Mallers said.
Bitcoin, according to Mallers, is the first currency in human history that can be transmitted immediately anywhere in the globe. He also believes that Bitcoin should not be viewed as the same as its underlying network and that Twitter's new tipping function does not have to utilise BTC as an asset.
"There is a distinction between Bitcoin the asset, which is this commodity-like precious metal-like asset, and Bitcoin the network, which is a monetary network similar to the Visa network... It also performs monetary tasks on a worldwide network, resulting in quick global cash finality."
All in all, this is a massive step for both Bitcoin the asset and bitcoin the protocol, both of which will have fully stepped into the mainstream arena with the launch of cryptocurrency tipping on Twitter.
That's all for this week's edition of Overbit Insights! Thanks again and take care until next time.