Crypto Biz: Twitter’s DOGE bet, Canada’s new crypto conglomerate, UK banking news

Twitter CEO Elon Musk has made another marketing move to bridge the social media platform with the crypto community by switching its logo icon to the Shiba Inu dog — Dogecoin’s (DOGE) digital symbol. The move, however, seems to be more than just an engagement strategy. It comes just two days after Musk asked a judge to dismiss a $258 billion lawsuit alleging the operation of a pyramid scheme to promote Dogecoin.

Whether intended or not, the new icon led to another surge in DOGE prices during the week.

A less optimistic reality faces crypto firms in the United Kingdom, where financial institutions are limiting the ability of crypto-related businesses to access banking services. The move goes in the opposite direction of Prime Minister Rishi Sunak’s plans to prioritize financial technology disruption and make the U.K. a global crypto hub.

This week’s Crypto Biz explores Canada’s new crypto conglomerate, the recent premature passing of the Cash App creator in San Francisco, as well as DOGE news, and U.K. crypto challenges.

Elon Musk changes Twitter icon to Doge after seeking lawsuit dismissal

Dogecoin fans — and investors — welcomed the new Twitter icon with the popular meme token. The social media platform updated its avatar on April 3, two days after its CEO Elon Musk asked a United States judge to dismiss a $258 billion lawsuit filed by investors alleging the operation of a pyramid scheme to promote Dogecoin. Multiple market studies in the past have suggested that Musk tweeting about DOGE tends to drive its price higher. Musk’s lawyers, however, argued that “funny pictures” and “tweeting words of support” do not amount to a fraud claim. In this week’s case, at least, the marketing move positively impacted the altcoin’s price, with the token surging by over 22% one hour after the icon change.

As promised pic.twitter.com/Jc1TnAqxAV

— Elon Musk (@elonmusk) April 3, 2023

WonderFi merges with Coinsquare and CoinSmart to form regulated crypto asset platform

A new crypto conglomerate has emerged in Canada as WonderFi Technologies, Coinsquare, and CoinSmart Financial have announced their merger to become the country’s largest regulated crypto trading platform, with over 1.65 million registered users. The newly merged company promises to offer Canadians a wide range of diversified products and services, including retail and institutional crypto trading, staking products, business-to-business crypto payment processing, sports betting and gaming. The companies “transacted over $17 billion since 2017 and have over $600 million in assets under custody.” The new company is estimated to have approximately $50 million in cash and investments and no outstanding debt.

United Kingdom banks are turning away crypto clients

Crypto companies are facing difficulties accessing banking services in the United Kingdom. The few banks still working with crypto firms are requesting more documentation and information about how they monitor clients’ transactions. Challenges include having applications rejected, accounts frozen and overwhelming paperwork. Crypto companies are turning to payment service providers such as BCB Payments and Stripe to maintain business operations in the United Kingdom. Just a few weeks ago, HSBC Holdings and Nationwide Building Society banned cryptocurrency purchases via credit cards for retail customers in the country, joining a growing list of banks in the U.K. to tighten restrictions on digital assets.

Cash App creator dies following stabbing in San Francisco

Tragic news came from San Francisco as Bob Lee, the former chief technology officer of Square and creator of Cash App, was found dead following a stabbing in the early hours of April 4. A notice from the San Francisco Police Department explained officers attended to a report of a stabbing at approximately 2:35 am local time, finding a “43-year-old adult male victim suffering from apparent stab wounds.” Lee was a proponent of cryptocurrencies who gained prominence in the tech industry for being the first chief technology officer of the payments platform Square — later renamed Block — and for creating the popular mobile payment service Cash App.