Class Action Lawsuit Over Stimulus Loans; Another Stablecoin Gamed; Ripple Community Dwindles

TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Banks facing class-action lawsuit for coronavirus stimulus loan handling. Miners game pJPY stablecoin protocol. Ripple community dwindles on social media. Dharma introduces Twitter payments. Cryptocurrency exchange FTX launches oil futures, and US Senate approves a second wave of stimulus loans.

Banks Face Class Action Lawsuit Over Stimulus Loans

Class Action Lawsuit

JPMorgan Chase, Bank of America, Wells Fargo, and U.S. Bank are facing a class-action lawsuit for their alleged practices on approvals of stimulus loans to maintain payrolls active in small businesses. The class-action lawsuit states these banks unlawfully prioritized applications with higher loans in order to collect more origination fees, ranging from 5% for a $350,000 loan and going up to 1% for loans up to $10 million. This gave an advantage to big businesses, leaving small businesses with no chance of getting funds.

Miners Game Yet Another Stablecoin Protocol

Class Action Lawsuit

Four mining entities managed to inflate the price of a Japanese yen pegged stablecoin called pJPY, according to a postmortem report from a developer. The miners, who held collectively more than 51% of the hashpower of the currency, reported an altered price of pJPY, making $11 worth over $6 million dollars, but they weren’t able to cash out because the platform does not support quick conversions. The miners reported they were only testing the network for vulnerabilities, and have burned all the tokens created.

Ripple Community Dwindling on Social Media

The Telegram group of Ripple, the XRP remittance company, lost more than half of its followers in less than two years, according to a report from a Twitter user. Ripple has been highly criticized for admitting it would not be profitable without resorting to periodic sales of XRP. The cryptocurrency group went from 64,000 users in June 2018 to 23,000 users in April, a decrease of 64%. Other groups also were affected by a decrease of their followers, like Litecoin, who lost nearly 70% of their followers in the same period.

Dharma Enables Twitter Payments

Dharma, an Ethereum based lending platform, launched a new feature called social payments, allowing users to send dollars to any Twitter handle with users earning interest for funds the moment they get the deposit. Dharma uses Dai, the Ethereum based stablecoin, as a base currency, and functions as a bridge between users and DeFi protocol Compound, allowing them to earn interest on their funds while retaining control over them. The company also started a giveaway of $5 to 100 key members of the DeFi community.

Cryptocurrency Exchange FTX Launches Oil Futures

Class Action Lawsuit

FTX, a cryptocurrency derivatives exchange, launched oil futures in their platform, allowing users to bet on oil pricing. To protect users from volatility, FTX added $100 dollars to the price of oil in case it goes negative (as happened this week). Sam Bankman-Fried, CEO of the exchange, declared these futures were requested by users after the oil debacle. Bankman-Fried stated that “the demand was all over the place. It was the most requested product from most of our users,” in an interview published by The Block.

US Senate Approves New Stimulus Bill and Anticipates Even More Help

The US Senate approved a second round of stimulus loans directed for small businesses to keep their workers by maintaining active payrolls. This time, $484 billion were approved by the Senate, adding to the whole coronavirus relief effort as part of the CARES Act. House Speaker Nancy Pelosi stated they are “ready to go on to the next bill,” pointing that the policy for more stimulus payments and grants will continue at least for the near future to help 20+ million people unemployed.

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