Crypto news: This week, the crypto community was rattled by the US authorities’ enforcement action against Binance, the world’s largest exchange. The exchange agreed to pay a $4.3 billion settlement, and its CEO, Changpeng Zhao, agreed to step down as CEO and pay a $50 million fine as part of a plea bargain.
Responses to the enforcement action were varied, with some arguing that CZ impacted the industry positively, while others questioned whether building the biggest exchange was worth breaking money laundering and other laws. The other big news was the reinstatement of Sam Altman as OpenAI CEO amid a possible AI pivot for the Shiba Inu community.
Altman Gets a Second Life
Earlier this week, the board of directors at OpenAI restored Altman to his position. Altman was ousted over the weekend for reasons that, for the most part, remain unclear.
Altman had apparently not shared detailed information about the company’s plans to advance and monetize its AI technology. The board had been concerned about safety amid rapid technological advancements.
But within five days, pressure from investors and the introduction of two new board members, saw Altman resume his post. But it remains to be seen whether this means Altman wields too much power in the industry.
Does Future of SHIB Lie in AI?
But enough of the heavy stuff. Everyone’s favorite dog-themed coins made headlines this week for light-hearted reasons.
Shiba Inu’s burn rate surged over 60% after over 80 million tokens were burned on Nov. 19. The move lowers the supply of the coin and is generally a bullish event, but markets see another reason for optimism.
Read more: Shiba Inu Burn Rate Explained: Understanding Token Burning
A recent conversation between Shiba Inu developer Shytoshi Kusama and former Coinbase CTO Balaji Srinivasan suggested a pivot to AI for SHIB. If true, this would boost the value proposition of the new SHIB ecosystem, Shibarium. Last week, the Manny Pacquiao Foundation enlisted Shibarium for arranging events and receiving donations.
DOGE Goes to the Moon Without Musk
What about Dogecoin (DOGE), the original dog-themed cryptocurrency? It seems like Elon Musk is not interested in sending Dogecoin to the moon anymore, either literally or figuratively. Musk’s Doge-1 mission, originally scheduled for 2021, may now only take place in Q1 2024.
But it doesn’t matter. While Musk fights Hamas misinformation on X, space technology company Astrobotic Technology wants to take Dogecoin to the moon. Literally.
On Monday, the company announced it would send a physical Dogecoin in a DHL Moonbox on Dec. 23. Accompanying the Dogecoin in the Moonbox will be a physical Bitcoin sent from BitMEX. Astrobotics’ Peregrine spacecraft will carry the parcel.
Read more: Dogecoin vs. Bitcoin: An Ultimate Comparison
CZ Says Goodbye, for Now
But Dogecoin’s space trip was probably the last thing on the mind of former Binance CEO Changpeng Zhao this week. Once the head of the largest cryptocurrency exchange in the world, Zhao pleaded guilty to US charges that Binance failed to report thousands of suspicious transactions involving sanctioned entities. The exchange also violated US anti-money laundering laws.
Read more: Top 3 Methods for Cross-Border Money Transfer Using Crypto
On Tuesday, the crypto titan pleaded guilty and must pay a $50 million fine and not manage Binance for three years. The exchange will also be subject to increased monitoring and must pay a $4.3 billion fine under the leadership of its new CEO, Richard Teng.
Read more: 7 Best Binance Alternatives in 2023
Crypto – Socially Speaking
Community Response to CZ
Responses to the charges against CZ and Binance were swift and contrasting. Some, like Coinbase CEO Brian Armstrong, called the saga a chance for crypto to turn a new page. Others, like Lady of Crypto, with over 400,000 followers, said CZ “has been a net positive for crypto adoption.” The downfall of Zhao, less than a month after former FTX CEO Sam Bankman-Fried was convicted of money laundering and other crimes, is part of a wider crackdown on the crypto industry by US regulators.
Fidelity Ethereum ETF Bid Bullish
But in the meantime, Wall Street is taking the bull by the horns. Market observers suggest that an application from Fidelity Investments to launch an Ethereum exchange-traded fund (ETF) will be bullish for the asset.
The third-largest asset manager filed an ETF application last Saturday, shortly after its larger rival, BlackRock. BeInCrypto’s Global Head of News, Ali Martinez, said the application could push Ethereum above its $2,150 resistance level.
Top 10 Crypto Performers This Week
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