The Weekly Wrap – Parachains, U.S. Fed, Tether

Dec 17, 2021 - 3 min read

1. First Polkadot Parachains to go live

The Facts:

  • On Thursday, the fifth parachain auction on Polkadot concluded, with Clover Finance securing the spot.
  • The fifth auction, being the last from the first badge is in line with the going live of all five projects on December 18th.
  • Polkadot announced a Party, celebrating the significant achievement after 4 years.

Why it’s important:

  • More than DOT 99 million have been raised in the first five auctions.
  • Project tokens are expected to be partially distributed to participants once the projects are live.
  • On December 23rd, the next five auctions will proceed.

Dec 18th at 6pm CET, tune into the #PolkadotParachainParty to celebrate the final stage of Polkadot's launch with the first five parachain auction winners: @AcalaNetwork, @MoonbeamNetwork, @AstarNetwork, @ParallelFi, and @clover_finance.

To join the party:

— Polkadot (@Polkadot) December 16, 2021

I’m not an expert on bitcoin, but I think it has some merit as a small portion of a portfolio.

2. U.S. Fed tightens tapering measures

The Facts:

  • The U.S. Federal Reserve announced the intention to accelerate the reduction of its monthly bond purchases.
  • Starting in January, the bond purchases will be reduced to $60 billion, therefore half the amount of the November taper and $30 billion less than it had been buying in December.
  • The Federal Open Market Committee adjusted its inflation outlook for 2021 to 5.3% from 4.2% for all items.

Why it’s important:

  • After the tapering measures have concluded, the Central Bank expects to raise interest rates.
  • First indications see as many as three rate hikes in 2022 and two more in 2024.
  • Meanwhile across the pond, the Bank of England increased its main interest rate from its historic low of 0.1% to 0.25%.

Number of the week

BTC circulating supply

3. New Tether lawsuit

The Facts:

  • A class action lawsuit was filed against Tether. The second one in a time span of 4 months.
  • The document submitted by the plaintiffs accuses the firm of falsely representing its stablecoin’s backing.
  • The plaintiffs focus on Tether apparently misleading consumers regarding attributes of their tokens, by claiming that USDT was 100% backed by U.S. dollars.

Why it’s important:

  • Earlier this year Tether released a reserves breakdown, with commercial paper forming the majority of its cash and cash equivalent category.
  • In October the firm was fined $42.5 million by the CFTC over its claims of being fully backed by US Dollars.
  • The saga of how many USDT are indeed backed by the US Dollar continues. YTD the supply quadrupled from $20 billion to almost $80 billion.

In other news

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