Из жизни альткоинов

Старший аналитик по ETF Bloomberg Intelligence Эрик Балчунас считает, что не стоит преувеличивать важность одобрения спотовых криптовалютных ETF в Гонконге ― рынок ETF в городе-государстве очень мал.

В Октябрьском районном суде Иркутска была осуждена группа мошенников, которые обманули почти 70 человек. Они фиктивно продавали майнинговое оборудование и предоставляли услуги «майнинг-отеля».

Steven Nerayoff, a former advisor to Ethereum, has initiated a lawsuit against Michael Hlady, also known as Michael Peters, and Marianna Shooshani in the Supreme Court of New York, Nassau County in his quest for justice. The lawsuit alleges a fraudulent scheme orchestrated to deceive Nerayoff, resulting in substantial financial loss.

According to the court documents, the plaintiff, Steven Nerayoff, accuses Hlady and Shooshani of creating a fictitious consultancy firm, North Star Ventures Corp. (“NSV”), purporting to offer specialized consulting services to Nerayoff, who is known for his contributions to the Ethereum ICO protocols and his leadership at Alchemist Group LLC, a consultancy and investment firm for blockchain companies.

The suit, which delves deep into allegations of fraud and deceit, details an elaborate scheme that allegedly conned Nerayoff out of over three-quarters of a million dollars through a non-existent consulting service. Via X, Nerayoff stated:

I am pleased to announce that justice is finally being served against Michael Hlady, a government agent / provocateur who collaborated with FBI agents and others to unjustly prosecute me for nearly four years. The FBI gave credibility to Hlady, […] Despite being aware of his fraudulent activities unrelated to me, the government deliberately shielded him from prosecution in 2018.

Nerayoff revealed on X (formerly Twitter) that he has already initiated legal actions against FBI agents, StormX, and now Hlady. He also hinted that his legal pursuits are far from over, indicating more developments are likely to follow. “And make no mistake, we will not stop until we have uncovered every bit of corruption, including within agencies like the SEC, involved in #EthGate. Expect more to come, and know that I am committed to holding all accountable for their actions,” he stated.

Ethereum Insider Exposes What Happened

Nerayoff has filed claims against Hlady and Shooshani for creating and promoting a fictitious entity named North Star Ventures Corp. (“NSV”). According to the complaint, in December 2017, Shooshani introduced Nerayoff to her then-boyfriend, Hlady, who posed as a former government agent with claimed affiliations to the NSA, FBI, and CIA. The defendants asserted that Hlady’s consulting company, NSV, consisted of a team of similar ex-government operatives who could provide indispensable security and business vetting services to Nerayoff’s blockchain ventures.

The legal document details that Shooshani and Hlady, under the guise of NSV, induced Nerayoff to enter into a consulting agreement which promised extensive services from individuals purportedly possessing over 125 years of combined experience in fields crucial to corporate and government operations. “The agreement also claimed that ‘The North Star Venture team has been involved in providing consultation for corporations and deals with combined values exceeding $1 Billion US all done behind the scenes in the utmost of confidentiality,'” the complaint quotes.

From January to October 2018, Nerayoff paid several hundred thousand dollars to NSV based on invoices and requests presented by Hlady and Shooshani. These payments were meant to cover consulting fees, as well as supposed travel and miscellaneous expenses related to the services NSV was contracted to provide. The lawsuit details a list of transactions that include significant sums wired or transferred under the belief they were legitimate business expenses—illustrative of the depth of the alleged fraud.

The turning point in this saga came in November 2018, when Nerayoff discovered that not only did NSV not exist, but Hlady was also a convicted felon, recently released from prison after defrauding a Catholic school. The complaint highlights this shocking revelation with excerpts from Nerayoff’s communications to Shooshani expressing his dismay and sense of betrayal. Upon uncovering the truth, Nerayoff confronted Shooshani with messages that read: “This is the worst mistake of my life. He’s a two-bit con artist. How could you unleash this criminal on me!?”

Legal Proceedings And Claims

In response to these allegations, Nerayoff’s legal team has presented a multi-faceted legal strategy seeking recovery of the funds paid to Hlady and Shooshani, along with additional damages. The lawsuit articulates several causes of action including fraudulent inducement and common law fraud, underpinning the severity of the defendants’ actions.

“Plaintiff only agreed to enter into the January 14, 2018 agreement with NSV upon the express representations from defendants Hlady and Shooshani that defendant Hlady was a former decorated federal agent,” the complaint asserts, detailing the reliance of the former Ethereum advisor placed on these misrepresentations.

Previously, the former Ethereum advisor had made public how the US Department of Justice, US Securities and Exchange Commission and FBI sought to hold him accountable over 3.5 years in a lawsuit for a crime they fabricated just to gain leverage over other players in the crypto industry.

At press time, Ethereum (ETH) traded at $3,027.

The Hong Kong Securities and Futures Commission (SFC) has granted official approval for spot Ethereum and Bitcoin ETFs, signifying a major milestone for the crypto market in the region. 

However, while the approval brings excitement, Bloomberg Senior ETF analyst Eric Balchunas offered a more cautious analysis of the potential inflows into the newly approved market. 

Balchunas claims that Hong Kong ETFs are expected to lag significantly behind their US counterparts, which have amassed more than $200 billion in Bitcoin ETFs trading volume since trading began in January.

Obstacles For Hong Kong’s Bitcoin ETFs

While approving the Bitcoin ETFs in Hong Kong is undoubtedly a positive development, Balchunas took to social media to temper expectations. 

According to Blachunas’ analysis, the Bitcoin ETFs have been approved to exist but have yet to launch. Rumors suggest a launch in the following week to avoid competition with the Dubai conference. 

Balchunas also dismissed optimistic estimates, such as $25 billion in inflows, stating that the Hong Kong market would be fortunate to attract $500 million. He provided several reasons to support his cautious stance.

Firstly, Hong Kong’s ETF market is “relatively small,” valued at only $50 billion. Additionally, Chinese locals face restrictions in officially purchasing these Bitcoin ETFs, significantly limiting potential demand. 

Secondly, the three approved issuers in Hong Kong (Bosera, China AMC, and Harvest) are relatively small players, lacking the influence of industry giants like BlackRock. According to Balchunas, this absence of major players could hinder the ETFs’ ability to attract significant investments.

Furthermore, Balchunas pointed out that the underlying ecosystem in Hong Kong is considered less liquid and efficient compared to the US market. As a result, these ETFs are likely to experience wider spreads and premium discounts, which may deter potential investors. 

Lastly, the fees associated with the Hong Kong ETFs are estimated to range between 1% and 2%, significantly higher than the low-cost fees observed in the US market. Balchunas concluded by stating: 

Just to be clear, all this is clearly positive for bitcoin as it opens up more avenues to invest, I’m just sayying its child’s play vs US. Also long-term some of this could go away: more liq, tighter spreads, lower fees and bigger issuers involved. But short/medium term we have more moderate expectations. That’s all.

Limited Impact

Balchunas’ colleague at Bloomberg, James Seyffart, also starkly compared the Hong Kong and US markets and highlighted the vast disparity in size and impact. 

In a post on X, Seyffart pointed out that the assets held in US-listed Bitcoin ETFs alone exceed the total assets of all Hong Kong-listed ETFs. The US ETF market, valued at nearly $9 trillion, far exceeds the $50 billion valuation of the Hong Kong ETF market. 

In addition, the Mainland China ETF market is approximately $325 billion, further highlighting the immense difference in scale. Seyffart emphasized that while Hong Kong ETFs may have potential in the long run, they are unlikely to match the scale of a launch on US exchanges. Seyffart then concluded:

This is not to diminish the potential of these ETFs or the idea that they could potentially become the Asian hub for exposure to digital assets on TradFi rails. But they’re unlikely to be anywhere near as impactful as a launch on US exchanges. 

The largest cryptocurrency in the market is trading at $63,500, experiencing a slight decline of over 1% in the past few hours. Earlier, it briefly surged beyond the $67,000 mark, driven by anticipation surrounding the approval of ETFs in Hong Kong.

Featured image from Shutterstock, chart from TradingView.com

In the latest development of the saga between Binance and Nigerian authorities, the executive who fled from Nigerian custody at the end of March has been traced to Kenya by the Federal Government.

According to local reports, authorities are starting the extradition process and interrogating the guards in charge of the executive’s custody.

Binance Exec’s Extradition “In Full Swing”

According to local newspaper PUNCH, authorities discovered Nadeem Anjarwalla’s whereabouts over the weekend. Following his escape from custody, the Nigerian Federal Government traced the fugitive to Kenya.

Per the report, the investigation blew the Binance executive’s cover and found his hiding spot. Sources within the presidency’s office told the local newspaper that Anjarwalla went into hiding immediately after landing in the country.

We have found him. We know where he is. He is in Kenya, and we’re working with the authorities to bring him back to Nigeria.

Another source confirmed the information to the newspaper, assuring Nigerian authorities, alongside the Kenyan government and INTERPOL, were “working hard (…) to ensure his return to Nigeria and face the charges brought against him.”

The Economic and Financial Crimes Commission (EFCC) Chair, Ola Olukoyede, confirmed that the commission was collaborating with the International Criminal Police Organization, the United States Federal Bureau of Investigation, the governments of the United Kingdom, Northern Ireland, and Kenya in the extradition process.

Olukoyede stated that the EFCC’s takeover of Binance chiefs’ prosecution was “no less a strong message in the direction of EFCC’s resolve to hedge in distortions and disruptions in the country’s forex market.”

How Did Anjarwalla Escape?

Binance executives Nadeem Anjarwalla and Tigran Gambaryan were detained on February 26 as part of Nigeria’s crackdown on the crypto exchange over Tax evasion. As reported, one of the two detained Binance executives escaped from Nigerian custody last month.

On March 22, Anjarwalla, who holds dual British and Kenyan citizenship, fled the custodian house he and Gambaryan were staying at. At the time, it was presumed that the now-fugitive executive abused his phone privileges to scheme his escape from Abuja.

The executive got access to his Kenyan passport and flew out of Nigeria on a Middle Eastern airline after being taken to a nearby mosque to practice his faith. However, it remained a mystery how Anjarwalla obtained the documentation and escaped from security.

Per the most recent report, the guards in charge of monitoring the executive are now being questioned by special investigators from the military.  A “top security source” told the local newspaper that:

The soldiers detailed to monitor Anjarwalla have been detained, as you know, and they’re still being grilled by special investigators drawn from various security and intelligence agencies and services- the military, DSS, NIA, and the police, all hands are on deck, as it is a matter of national security.

At the time of writing, further details of the logistics of the escape and Anjarwalla’s hiding remain unknown to the public. Meanwhile, the other detained Binance executive remains under the EFCC’s custody. Gambaryan awaits his trial this Friday, April 19, after being postponed following his first court appearance.

As the anticipated Bitcoin Halving approaches, a new native digital commodity protocol is set to make its presence felt in the cryptocurrency landscape. The Runes Protocol, developed by the mind behind the Ordinal Theory, Casey Rodarmor, is generating buzz as it introduces a new fungible token standard for Bitcoin. 

A recent report by crypto analysis firm Delphi Digital sheds light on the potential of Runes to disrupt the tokenization landscape, challenging the dominance of BRC-20s. 

A Glimpse Into The Runes Protocol

Unlike its predecessors, Runes is not a token itself but rather a framework that enables the creation of altcoins on the Bitcoin Network. Tokens created using the Runes Protocol, aptly named “Runes,” are fungible, meaning each Rune is interchangeable. 

According to the research firm, this token standard offers several unique features that set it apart from existing token standards.

The Runes Protocol leverages Bitcoin’s UTXOs (Unspent Transaction Outputs) to store balances of both Bitcoin and Runes. This approach allows users to create and trade Runes instantly within the Bitcoin ecosystem.

The Runes Protocol aims to increase transparency and security by moving trust from the indexer level back to the Bitcoin blockchain.

Notably, the Runes ecosystem incorporates a unique mechanism for fair launches. The first Rune, called UNCOMMON•GOODS (Rune 0), is open for minting from the upcoming Halving to the next of these events. 

Additionally, token names in the Runes ecosystem must initially have 13 or more characters, with the character count requirement gradually decreasing until all names become available for use.

Battle Of Token Standards

BRC-20s, with a market size exceeding $1.5 billion, have dominated the tokenization landscape. However, the emergence of Runes has sparked speculation about its potential to supersede BRC-20s. Delphi Digital’s report highlights key differences between the two token standards, with Runes offering potential advantages.

Runes streamline token creation by utilizing the OP_RETURN field, simplifying the process compared to BRC-20s, which require new inscriptions for every token transfer. 

According to Delphi Digital, Runes also provides greater flexibility in token creation, supporting features such as open mint, fair distribution, and single address minting.

Additionally, Runes is more compatible with simplified payment verification (SPV) wallets and Bitcoin Layer 2 (L2) solutions, enabling faster and cheaper transactions.

Potential BRC-20 Upgrades

While the Runes protocol offers significant benefits, it has limitations. The report points out that the current state of infrastructure development presents challenges in realizing the full potential of Runes compatibility. 

In addition, introducing the Cenotaph model to allow for protocol upgrades raises concerns about the potential loss of runes due to “malformed runestones.”

As the Runes Protocol gains traction, rumors have surfaced about potential updates to the BRC-20 standard, including the ability for BRC-20 indexers to compute Ethereum Virtual Machine (EVM) smart contract code. 

Delphi Digital notes that this development could address some of the design issues faced by the BRC-20, thereby increasing competition between the two token standards.

Overall, with the imminent launch of the Runes Protocol, the crypto community eagerly awaits the potential disruption it may bring to the tokenization landscape. 

Delphi Digital’s report underscores Runes’ unique attributes and advantages, positioning it as a formidable contender to challenge the dominance of BRC-20s. 

Ordinals (ORDI), the leading BRC-20 token in the cryptocurrency market, is currently trading at $45.58. However, its value has significantly declined by over 32% over the past month. 

Featured image from Shutterstock, chart from TradingView.com 

On April 15, Hong Kong took a significant step towards becoming a crypto hub after approving the first spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, an ETF analyst, Eric Balchunas, is pouring cold water on the excitement palpable across the crypto scene. 

Spot Bitcoin ETF Is Live In Hong Kong

Taking to X, Balchunas is warning investors to be especially cautious about expecting a major influx of capital, especially into the spot Bitcoin ETF, as was first witnessed in the United States early this year. 

In the analyst’s preview, spot ETFs in Hong Kong, while welcomed, might not be a game-changer some anticipate. Among the leading reasons these products will not significantly impact the market is the relatively small size of the Hong Kong ETF market, estimated to be around $50 billion. Though Chinese mainland investors have more capital, they are officially restricted from participating.

Additionally, Balchunas has identified possible liquidity concerns and the inefficiency of the city-state’s rails. Accordingly, the underlying infrastructural hitch might see these products launch with wider bid-ask spreads, unlike those in the United States. 

Based on this, and considering the relatively high liquidity and involvement of Wall Street heavyweights like BlackRock and Fidelity, spot ETF issuers in the United States will have an edge.

BTC Price Remains Under Pressure, China Restricts Participation

So far, multiple applicants, including China Asset Management and Harvest Global Investments, have received approval from the Hong Kong Securities and Futures Commission (SFC) to launch spot Bitcoin and Ethereum ETFs. These products will likely begin trading in roughly a week.

Before then, BTC prices remained under pressure, as seen in the daily price action chart. The coin is down roughly 12% from all-time highs. Even so, buyers are in control and dominate from the top-down preview.

According to Coinlore, BTC is up approximately 120% year-to-date, and analysts expect more gains in the weeks after the Halving.

The approval, which came earlier than expected, is when the city-state is actively positioning itself as a leader in crypto, contrasting with mainland China’s stricter stance. In the mainland, crypto trading, staking, and mining remain banned. However, the government supports emerging technologies, including blockchain and artificial intelligence (AI). 

In the past, President Xi Jinping said blockchain was a “critical breakthrough” and advocated for its development. Pilot programs on applications in digital evidence storage and smart courts have been launched. At the same time, China is backing the development of the Blockchain Service Network (BSN) to promote secure and controlled adoption. 

The United Kingdom is poised to enact new legislation covering stablecoins and various crypto activities, including staking, trading, and custody. 

The forthcoming regulations, which are expected to be implemented by June or July 2024, mark a significant milestone as they bring digital assets, such as the operation of exchanges and the custody of customer funds, under regulatory oversight for the first time. 

This development follows the approval of the Financial Services and Markets Act in June 2023, which paved the way for cryptocurrencies to be treated as a regulated financial activity. 

Crypto Regulation Accelerates In The UK

UK Economic Secretary Bim Afolami reaffirmed the government’s commitment to fast-tracking cryptocurrency-related issues during the Innovate Finance Global Summit. Afolami emphasized that legislation is being developed quickly to finalize proposals for the new regulatory regime. 

The government aims to complete these efforts within the next six months, allowing a range of digital asset activities under the regulatory umbrella, including the operation of exchanges and custodial services. The Economic Secretary stated:

Once it goes live, a whole host of crypto asset activities, including operating an exchange, taking custody of customers’ assets, and other things, will come within the regulatory perimeter for the first time

Moreover, the UK Financial Conduct Authority (FCA) will soon launch a consultation on an authorization regime for digital asset companies. At the same time, the government plans to establish equivalence measures for overseas firms. 

The aim is to foster a regulated and supervised environment for the nascent industry, ensuring consumer protection and market integrity.

Balancing Innovation And Safeguards

As previously reported by Bitcoinist, the UK government has taken a phased approach to digital asset regulation, primarily focusing on legislation concerning fiat-backed stablecoins. 

This priority is followed by addressing other areas, including algorithmic stablecoins, lending, and trading, which will be brought under the purview of conventional financial regulation. 

In marked contrast to the approach and increased enforcement activity of the US Securities and Exchange Commission in the North American country, the UK government recognizes the need for greater clarity. It intends to provide a regulatory framework that balances innovation and investor protection.

However, despite the government’s efforts to create a crypto-friendly environment, the UK industry has faced challenges. Digital asset firms, including exchanges, have voiced concerns over delays and inadequate feedback from the FCA. 

Recently introduced rules restricting digital asset advertising have also led to some high-profile firms scaling back or ceasing operations in the UK market. The FCA’s vigilance in tackling suspected illegal crypto promotions is evident, with over 450 warnings issued in three months in February 2024.

Nonetheless, the forthcoming legislation on stablecoins and crypto activities signifies the UK government’s commitment to fostering a regulated and supervised crypto industry. 

While the specifics of the new regulations are yet to be unveiled, it is clear that crypto assets will operate within a more defined regulatory framework. 

Featured image from Shutterstock, chart from TradingView.com 

On-chain data shows that the Dogecoin whales have recently made massive moves. Here’s where these moves have been heading.

Dogecoin Network Has Witnessed Some Large Moves Recently

According to data from the cryptocurrency transaction tracker service Whale Alert, some large DOGE moves have been spotted on the blockchain within the past few days.

The moves are of a scale generally associated with whales, a cohort that carries an extremely large number of coins in their wallets. These entities can be influential in the market, so their transfers can be something to watch out for, as they may impact the asset’s price.

Four such transactions have appeared on the chain during the last 48 hours, implying that some whales have been repositioning themselves. What these moves imply for the market depends on what these investors want to achieve.

A closer look at the transfers’ individual details can help explain why each was made. First, the oldest of these transfers involved the movement of 350 million DOGE across wallets on the network, worth around $53 million when the move went through.

Here are the wallet details regarding this Dogecoin whale transaction:

As is visible above, this transfer had a wallet attached to Robinhood as its sender, while an unknown address was its receiver. Unknown wallets are not affiliated with any known central entity and, hence, are likely to be the investors’ personal wallets.

An exchange outflow is a move where coins flow from an exchange to an unknown wallet. Generally, investors take coins away from central custody whenever they plan to hold them for extended periods, so exchange outflows can have a bullish impact on the price.

The latest two DOGE whale transfers also involved the Robinhood platform. Unlike this one, though, the flow of coins was in the reverse direction for them, meaning that they were exchange inflows.

The sending and receiving addresses were the same between these two moves, so the same whale was most likely behind the deposits. This large investor has transferred $31.4 million in Dogecoin to the exchange.

The whale may be looking to use one of the Robinhood platform’s services, which can include selling. As such, these deposits may be bearish for the coin.

The final transfer from this period, which also happens to be the largest, was also an exchange inflow transaction, this one towards Binance.

This whale appears to have deposited a whopping 600 million DOGE ($92.2 million) to the platform. This means the balance has been overwhelmingly towards exchange inflows in the past couple of days, despite a sizeable outflow in the same window.

DOGE Price

Dogecoin has registered an uplift of more than 3% in the past 24 hours, as its price is now floating around $0.156.

Toncoin (TON) and Dogwifhat (WIF) are in the spotlight, having emerged as the best-performing altcoins since the start of the year ahead of other performing altcoins like Dogecoin (DOGE) and Shiba Inu (SHIB).

Toncoin And WIF Lead The Way

Data from CoinMarketCap shows that Toncoin and WIF are the best-performing altcoins in the top 50 cryptocurrencies by market cap, boasting a year-to-date (YTD) gain of 207% and 1668%, respectively. Although behind TON and WIF, other altcoins like DOGE and SHIB have also made significant strides, boasting a YTD gain of 84% and 128%, respectively. 

Toncoin and WIF’s dominance in the market has been due to several factors. On Toincoin’s part, it has received significant backing from Telegram. The messaging platform recently integrated TON payments, exposing the crypto token to its user base of over 900 million persons. Telegram had also previously announced an ad-sharing revenue program, with payouts solely going to be made in Toncoin. 

TON’s bullish momentum is also partly due to increased TON network activity. This has been thanks to notable projects like the telegram-based game Notcoin, which also plans to launch its token on the network on April 20. TON’s price surge since the start of the year saw it recently climb into the top 10 crypto tokens by market cap. 

Meanwhile, WIF’s parabolic rise has mainly been thanks to its “rampant community,” which includes well-known crypto influencer Ansem. The meme coin has also benefitted from the hype around Solana, considering that it is the largest meme coin on the network at the moment. Therefore, every bullish development in the Solana ecosystem has positively impacted WIF’s price.

WIF has come a long way. Thanks to its parabolic price surge, it broke into the top 50 cryptos by market cap this year. The meme coin also flipped fellow Solana meme coin, BONK, on its way to becoming the third-largest meme coin by market cap, only behind DOGE and SHIB. 

Meme And Artificial Intelligence Coins Make Their Mark

Meme and artificial intelligence (AI) coins were projected to be among the leading narratives of this bull season, and they have undoubtedly lived up to the hype.

This is evident in how Meme and AI coins in the top 50 cryptos have outperformed the flagship crypto, Bitcoin. For context, WIF and Fetch.ai (FET) are the best-performing meme and AI coins, respectively, and they have both outperformed Bitcoin, which has a YTD gain of 56%.

DOGE, SHIB, and PEPE, the only other meme coins in the top 50 spot, have also outperformed Bitcoin. Meanwhile, AI coins like Render (RNDR) and Bittensor (TAO) boast higher YTD gains than Bitcoin, with gains of 97% and 110% respectively. 

After seven consecutive weeks of inflows totaling $12.3 billion, the cryptocurrency market saw a significant shift. CoinShares reported roughly $942 million in outflows in its latest report, marking the first outflow following the notable inflow streak.

In addition, despite trading volumes remaining high at $28 billion for the week, it represents a substantial decline compared to the prior week, according to the report.

Investors Show Reticence Amid Price Declines

According to Coinshares Head of Research, James Butterfill, the recent price correction from the overall crypto market led to a decrease of $10 billion in total assets under management (AuM). However, they still exceed previous cycle highs, reaching $88 billion.

James Butterfill noted:

We believe the recent price correction led to hesitancy from investors, leading to much lower inflows into new ETF issuers in the US, which saw US$1.1bn inflows, partially offsetting incumbent Grayscale’s significant US$2bn outflows last week.

Notably, this hesitancy was not confined to the US alone, as countries like Sweden, Switzerland, Hong Kong, and Germany also experienced outflows. However, Brazil and Canada saw modest inflows of $9 million and $8.4 million, respectively.

Meanwhile, despite the broader market trend, altcoins such as Polkadot, Avalanche, and Litecoin saw notable inflows, totaling $16 million. However, major cryptocurrencies like Bitcoin, Ethereum, Solana, and Cardano experienced significant outflows, with Bitcoin alone witnessing $904 million.

Crypto Market Performance And Institutional Adoption 

It is worth noting that the price performance of Ethereum, Solana, and Cardano mirrored their outflows, with declines of approximately 10.9%, 17.6%, and 20.3%, respectively, over the past week.

However, recent price movements indicate a potential recovery, with Bitcoin and altcoins showing signs of upward momentum over the past 24 hours. Bitcoin has surged roughly 2.5% in the past 24 hours, with a current trading price of $66,538.

This uptick in performance comes as Hong Kong provisionally approved asset managers to initiate spot Bitcoin and Ethereum exchange-traded funds.

Meanwhile, despite Coinshares’ report of a decline in Bitcoin spot ETF inflows, recent SEC filings via Form 13F have revealed that several prominent Wall Street firms and US banks have initiated the purchase of Bitcoin ETFs. Julian Fahrer, CEO of the Bitcoin-centric app Apollo Sats, emphasized the significance of the revelation.

Fahrer underscored the diverse nature of these filings, involving investment managers and family offices with assets under management ranging from $200 million to $10 billion, indicating a widening scope of institutional acceptance.

Specifically, Fahrer highlighted American National Bank’s investment in Ark’s ETF, characterizing it as “significant for breaking the seal on banks buying ETFs.”

BREAKING: 13F SEC Filings show US Banks are buying #Bitcoin pic.twitter.com/BzSkUrURFi

— Julian Fahrer (@Julian__Fahrer) April 10, 2024

Featured image from Unsplash, Chart from TradingView

The Shiba Inu (SHIB) burn rate is again the focus, as it experienced a significant decline just a day after recording a massive spike in burn rate activity. This has undoubtedly raised concerns, considering how vital these token burns are to the SHIB ecosystem. 

Shiba Inu’s Burn Rate Declines By 99%

Data from the burn tracking website Shibburn shows that Shiba Inu’s burn rate has declined by 99.5% in the last 24 hours. This is in stark contrast to the previous day, when it rose by 18,000%. However, it is worth noting that this increase was primarily due to one transaction with a particular address burning 650 million SHIB at a go. 

Since then, only just over 3.2 million SHIB tokens have been burnt, which explains the massive drop in the burn rate. Specifically, this drop can be attributed to the decrease in SHIB trading activity in the last 24 hours. Data from CoinMarketCap shows that SHIB’s trading volume declined by 35% during this period. 

The decline in trading activity is likely due to the bearish sentiment in the crypto market, as uncertainty looms over the future trajectory of crypto tokens, including SHIB. This uncertainty has been largely brought about by the increased tensions between Iran and Israel over the weekend, which have already significantly impacted the market.  

Amidst this downward trend, the silver lining is that additional data from Shibburn shows that Shiba Inu’s burn rate is up by over 271% in the last seven days. This proves a sustained momentum in the amount of SHIB tokens burnt over a longer stretch. This momentum could be crucial in this bull run especially as the demand for the meme coin increases.  

Shibarium Adoption On The Rise

Clifford, a member of the SHIB community, recently drew the community’s attention to the notable increase in the number of wallet addresses on Shibarium. Clifford noted that the layer-2 network has added over 209,000 wallets in the last two days. The total number of addresses on the network stood at over 1.6 million when Clifford made this revelation. Interestingly, that figure has increased to 1.78 million since then. 

The increase in Shibarium’s adoption is also evident in its daily transactions, which have picked up since recording a recent low of 5,360 on April 10. This figure has risen since then, with the network processing a recent high of 419,000 transactions on April 14. The increase in Shibarium’s network activity is a welcome development as it could also help boost SHIB’s burn rate. 

Landesbank Baden-Württemberg (LBBW), the largest federal bank in Germany with total assets of €333 billion, has announced a strategic partnership with Bitpanda Technology Solutions, a leading European crypto platform. This collaboration is set to launch in the second half of 2024, introducing cryptocurrency services to LBBW’s corporate clients.

Major German Bank Enters Crypto

As part of the agreement, Bitpanda will provide an “investment-as-a-service” infrastructure which includes the custody and procurement of cryptocurrencies like Bitcoin and Ethereum, along with other digital assets. Stefanie Münz, a member of LBBW’s Board of Managing Directors, emphasized the security and strategic benefits of this partnership, stating, “With the custody of crypto assets, we are positioning ourselves with clear added value for our corporate customers – while guaranteeing the highest security standards.”

Related Reading: Blockbuster Week For Bitcoin And Crypto: 5 Must-Watch Events

The move by LBBW follows a growing trend among German banks to incorporate cryptocurrency services. Last year, Commerzbank obtained a custody license from the financial regulator BaFin, positioning itself as a pioneer among German universal banks in the custody space. Similarly, Deutsche Bank has also applied for a custody license, signaling a strengthening interest in crypto assets among major financial institutions.

Unlike Commerzbank, which currently limits its crypto services to institutional clients, LBBW’s partnership with Bitpanda, which holds several crypto licenses including a BaFin license for the custody and proprietary trading of cryptocurrencies, allows it to circumvent the need for a direct license by leveraging Bitpanda’s established regulatory framework.

LBBW’s decision to partner rather than build its own infrastructure from scratch allows for a faster market entry. “Bitpanda provides the necessary technical and regulatory infrastructure to offer our customers innovative and, above all, secure solutions in the area of digital assets,” Münz added.

Bitpanda’s role extends beyond just a service provider. As Lukas Enzersdorfer-Konrad, CEO of Bitpanda Technology Solutions, notes, “The partnership marks a milestone. LBBW is leading the way for its customers and demonstrating how tradition and experience can go hand in hand with innovative strength, agility and a pioneering spirit.”

This collaboration is part of a broader trend of digital transformation in the financial sector, where banks are increasingly adopting blockchain and other digital asset technologies. LBBW itself has been involved in blockchain initiatives since 2017, showcasing its long-standing commitment to digital innovation.

Related Reading: Fighter’s Bitcoin Challenge: UFC 300 Winner Calls For $300,000 Crypto Bonus

The partnership is initially set for three years, with both parties expressing optimism about the potential for expansion, including potentially broadening the service to include private customers in the future. As digital assets continue to become a standard part of corporate balance sheets, partnerships like that between LBBW and Bitpanda play a critical role in shaping the future of banking and investment in Europe.

At press time, BTC traded at $66,075.

In the ongoing legal battle between cross-border payments company, Ripple and the United States Securities and Exchange Commission (SEC), a crypto expert has speculated that a possible settlement may be on the horizon. The recent events surrounding the case outlined by the expert, have indicated a progression to a potential conclusion in the case between the two parties. 

Ripple And SEC On The Brink Of Settlement?

XRP community member and expert, Ashley Prosper has speculated that the recent legal proceedings observed between Ripple and the US SEC could be key indicators pointing towards a possible culmination of the three-year-long court battle. In an X (formerly Twitter) post published on Friday, April 12, the crypto expert outlined an extensive number of factors and occurrences that suggest the possibility of a legal settlement. 

According to Prosper, the Second Circuit’s decision to reject the SEC’s disgorgement in cases lacking financial loss, alongside the SEC’s failure to identify investors who suffered financial losses from Ripple has added weight to Ripple’s defense. 

The crypto expert also noted that the SEC’s recent investigations and enforcement actions against Ethereum and crypto exchange UniSwap could be another indication of a possible conclusion of the legal case. By diverting its attention to these projects, the SEC might aim to classify Ethereum as a security, thereby impacting the broader crypto market and its case with Ripple. 

Moreover, Prosper speculates that Ripple’s recent announcement to launch a stablecoin and expand into the market hints that a settlement was imminent. This move could suggest that Ripple was moving forward with its business plans, indicating confidence that could be stemmed from a potential settlement. 

More Factors That Hint A Potential Resolution In Sight

In her post, Prosper uncovered other factors that strongly suggest a forthcoming settlement and the eventual conclusion of the SEC and Ripple case. 

The crypto expert disclosed that a settlement conference was slated for April 16th before Ripple could submit a response to the SEC’s remedies brief and demands. This timing could be an indicative factor that both parties may be open to reaching an agreement and possible compromise. 

She also highlighted the recent 500 million XRP released from escrow on Friday, April 12. According to Prosper, the April escrow unlock might have been aimed at funding a potential settlement. 

Following her statement, Prosper later clarified that no settlement had been scheduled for the specified date and that the 500 million XRP locked within the escrow was not released for settlement purposes.

This underscores that the notion of a settlement between Ripple and the US SEC was purely speculative, as there are currently no reports or statements from either the SEC or Ripple confirming the possibility of a resolution to the ongoing legal battle.  

Генеральный директор CryptoQuant сообщил, что новые биткоин-киты, которые владеют своими активами менее 155 дней, держат на своем балансе до 9% оборотного запаса BTC и продолжают наращивать запасы в ожидании роста цен.

The rollercoaster ride of 2023 left many cryptocurrency investors feeling queasy. But in Germany, Austria, and Switzerland (DACH), a tentative return to the digital asset market is underway, marked by a newfound sense of prudence.

A recent KPMG study surveying over 2,400 private crypto investors painted a picture of a market regaining its footing, albeit with a newfound sense of direction.

Gone are the days of reckless all-in bets. The report revealed a surprising trend – over half (54%) of those surveyed are allocating a significant chunk, over 20%, of their total investments to digital assets. But this enthusiasm is tempered by a healthy dose of caution.

Investors are taking their time, conducting more thorough research before taking the plunge. It seems the wild rides of 2023 have instilled a newfound respect for the volatile nature of the crypto market.

Cryptocurrency With A Long-Term Vision

This newfound caution isn’t necessarily a bad thing. The study also indicated a shift towards a longer-term perspective. A sizeable portion of investors, particularly those with a heavier crypto allocation, are signaling a commitment to the industry for the next three to five years. This suggests a growing confidence in the long-term potential of cryptocurrencies, even if the short-term path might be bumpy.

Security Concerns Cast A Shadow

However, caution doesn’t just mean conducting more research. It also means prioritizing safety. Security remains the paramount concern for DACH investors, with a whopping 82% emphasizing it as the deciding factor when choosing a crypto exchange. This echoes a wider sentiment across the crypto landscape – trust and security are fundamental for widespread adoption.

Cryptocurrency And The Regulatory Rollercoaster

The regulatory landscape surrounding cryptocurrency is another lingering source of concern. The report highlights investor apprehension regarding market manipulation and the lack of clear regulations. This is a concern not just for investors, but for regulators themselves.

Germany, for instance, has been proactive in establishing frameworks to create a secure environment for cryptocurrencies. Laws allowing banks to handle crypto have been passed, and discussions are ongoing regarding regulations for exchanges and Initial Coin Offerings (ICOs).

Regulatory bodies like BaFin, Germany’s financial watchdog, are ramping up efforts to implement Know Your Customer (KYC) and Anti-Money Laundering (AML) rules to combat fraud and illicit activities on cryptocurrency exchanges.

Renewed Focus On Digital Assets

The DACH region’s renewed interest in cryptocurrency signifies a maturing market. Investors are no longer blinded by hype and are approaching the asset class with a more balanced perspective.

This, coupled with proactive regulatory efforts, could pave the way for a more sustainable and secure crypto future in the region. However, challenges like market volatility and regulatory uncertainty remain.

Whether DACH investors can weather these storms and navigate the complexities of the cryptocurrency landscape will determine the ultimate fate of this digital asset class in the region.

Featured image from Pexels, chart from TradingView

Data shows the Bitcoin Open Interest has observed a notable cool off recently, something that could be positive for the rally’s hopes.

Bitcoin Open Interest Has Cooled Down From Recent Overheated Levels

As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin Open Interest has registered a retrace recently. The “Open Interest” here refers to a measure of the total amount of BTC-related derivative contracts currently open on all exchanges.

When the value of this metric rises, it means that the investors are opening new positions on the derivative market right now. Generally, the total leverage in the market goes up when new contracts crop up, so an increase in the Open Interest could lead to higher volatility for the asset.

On the other hand, a decline in the indicator implies the derivative users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. Either way, the market could act in a more stable manner after such a decrease, due to the lower leverage.

Now, here is a chart that shows the trend in the Bitcoin Open Interest since the start of the year:

As displayed in the above graph, the Bitcoin Open Interest had risen alongside the price as the rally fueled by the spot exchange-traded funds (ETFs) had occurred.

In this surge, the indicator had achieved a new all-time high above $18 billion as the cryptocurrency’s value itself had marched to a new record. Historically, though, extreme levels of Open Interest have been a sign of the market being overheated, so the asset was in a delicate situation at these ATH levels.

What followed the heated market was a notable drawdown in the coin’s value, alongside which the Open Interest had also seen a significant cool off. Since then, as BTC has ranged, so has the metric.

The indicator has been jumping back and forth between overheating and cooling down, and with the recent drawdown in the price, its value dropped to a low under $14 billion.

Generally, when the Open Interest is overheated, the asset could become more probable to see volatility. This sharp price action that may emerge could, in theory, take the coin in either direction, but the recent trend has been that the Open Interest has only cooled off with a decline in the price.

The indicator dropping back to lower levels, however, has been conductive for price increases. In the latest drawdown, the Open Interest briefly hit the lowest levels since the start of March.

What has followed this derivative market cooldown has been the rebound in the cryptocurrency’s price. If Open Interest now doesn’t overheat again, the chances of this rebound lasting could be optimistic.

BTC Price

Bitcoin has been making recovery from its plunge during the weekend as its price has climbed back up to $66,300 so far.

Канадская майнинговая компания Bitfarms увеличила собственный хешрейт в сети Биткоина до 7 EH/s благодаря развертыванию 5000 новых единиц оборудования.

On Monday, the Hong Kong Securities and Futures Commission (SFC) announced that it had approved a number of Spot Bitcoin and Ethereum ETFs for trading. This decision has been a long time in the making and has been expected by all in the crypto community. As expected, the announcement turned out to be bullish for the market, driving a notable recovery in the prices of cryptocurrencies all across the space.

Bitcoin Bounces Toward $67,000

Over the weekend, the crypto market saw a market crash that sent the Bitcoin price back below $60,000. This development was brought about partly by the move from Iran toward Israel, with many anticipating that it would be the start of World War III. However, both sides have since backed down, giving the markets time to recover.

Amid this recovery came the announcement from the Hong Kong SFC, which has given the market a much-needed boost. The Bitcoin price had been trending around the $64,000 line following the cease-fire, and the announcement pushed it further.

One reason the Hong Kong SFC approving the trading of Spot Bitcoin and Ethereum ETFs in the space is due to the success of Spot Bitcoin ETFs in the United States. As institutional investors packed up BTC to back the investments in their funds, the Bitcoin price rose rapidly alongside it.

In the same vein, as Chinese investors gain access to Spot Bitcoin and Ethereum ETFs, a lot of buying is expected to happen as the funds have to hold the underlying cryptocurrencies to back the investment. This way, more buying is expected to happen in the coming weeks.

Can BTC Reclaim $70,000?

Despite the weekend flush, there is still a lot of bullishness in the market, showing that crypto investors believe the crash was a chance to buy back in. Bitcoin’s price, already up over 3% to above $66,000 in the last day alone, proves this to be the case.

In addition, Spot Bitcoin ETF issuers continue to buy the asset, increasing their AuM to over 4.7% of the total BTC supply. As the Hong Kong funds join the race, the portion of the BTC supply owned by institutional investors is expected to grow rapidly, and this competition to buy up the asset could lead to a supply squeeze.

In the case of a supply squeeze, the Bitcoin price could rise quickly to reclaim the $70,000 level once more, which is a less than 5% move from here. Then, to reach a new all-time high, BTC would have to move around 12%, something that has proven easy to do in the last few months.

Cryptocurrency investigator ZachXBT has unearthed a connection between a notorious crew involved in fraudulent activities and the emerging cryptocurrency project known as Leaper Finance. This discovery comes amidst growing concerns over the security and integrity of digital finance platforms, particularly in the wake of multiple high-profile scams that have rocked the industry.

Cryptocurrency’s Dark Side: Fraudsters Strike Again

The crew, previously implicated in outright fraud and accused of orchestrating multimillion-dollar scams on platforms such as Mauritius, Kokomo, and Lendora, has reportedly resurfaced within the digital currency ecosystem.

According to ZachXBT’s latest findings, the same hackers responsible for past illicit activities have now shifted their focus to Leaper Finance, injecting approximately $1,000,000 into liquidity pool contracts in an attempt to manipulate the system.

Community Alert: The group of scammers who stole 8 figs with Magnate, Kokomo, Lendora, Solfire, etc is back with a new project on Blast @Leaperfinance

Last week they funded an address on Blast with ~$1M of laundered funds from the previous rugs and have begun adding liquidity… pic.twitter.com/yqRKvZuuye

— ZachXBT (@zachxbt) April 14, 2024

This pivot marks a troubling development in the ongoing battle against cryptocurrency fraud. It underscores the adaptability of cybercriminals who, despite increased scrutiny and regulatory measures, continue to exploit vulnerabilities within the decentralized landscape of digital finance.

Leaper Finance: A Catalyst For Crypto Chaos?

During the height of their fraudulent activities, the crew targeted platforms like Magnate, Kokomo, Lendora, and Solfire, executing sophisticated scams that resulted in significant financial losses for unsuspecting investors.

The fraudulent transfers of tens of millions of dollars wreaked havoc on these networks, highlighting the urgent need for improved security measures and regulatory oversight within the cryptocurrency space.

The emergence of Leaper Finance as the latest target of these malicious actors has sent shockwaves throughout the industry. With its liquidity pool contracts now under scrutiny for potential manipulation, investors and regulators alike are on high alert, monitoring the situation closely to prevent further damage to the integrity of the platform and the broader crypto community.

Cyber Criminals Exploit Blockchain For Money Laundering

What’s particularly concerning about this latest development is the utilization of blockchain technology not only as a means of facilitating legitimate transactions but also as a tool for laundering stolen funds.

By injecting ill-gotten gains into platforms like Leaper Finance, cybercriminals are able to obfuscate the origins of their money, making it difficult for authorities to trace and recover the stolen assets.

This trend highlights the evolving tactics of cybercriminals in the digital age, as they leverage innovative technologies to circumvent traditional banking systems and launder illicit funds with relative impunity. The rise of encrypted cryptocurrency wallets further complicates efforts to combat financial crime, creating a new frontier for law enforcement agencies and regulatory bodies to navigate.

Featured image from Pixabay, chart from TradingView