Из жизни альткоинов

Правоохранительные органы Великобритании получили расширенные полномочия конфисковывать, замораживать и сжигать цифровые активы, использованные в преступных целях. В пятницу, 26 апреля, вступили в силу новые правила работы полиции и следователей.

Компания Terraform Labs объявила о решении, продиктованном вердиктом суда по иску Комиссии по ценным бумагам и биржам США (SEC). Американские клиенты потеряют доступ к продуктам компании, включая предоставление ликвидности.

Paul Grewal, the Chief Legal Officer (CLO) of Coinbase, has become a major voice in the continuing discussion about the legal classification of Ethereum by the United States Securities and Exchange Commission (SEC), arguing in favor of the platform’s non-security status.

Broader Recognition Of Ethereum Security Nature

Taking to the X (formerly Twitter), the Coinbase CLO Paul Grewal expressed his belief in Ethereum as a commodity. According to Grewal, he knows ETH is a commodity, the entire crypto community knows this, and the Commodity Futures Trading Commission (CFTC). Thus, it is imperative that the SEC acknowledge its continued belief that ETH is a commodity and stop playing games.

He further expressed his appreciation toward Consensys for filing a lawsuit against the regulatory watchdog, opposing the illegal abuse of power by the agency.

On Thursday, Consensys claimed in its filing that the SEC has planned enforcement proceedings to regulate ETH as a security as part of a strategy to take control over the future of cryptocurrency.  They also claimed that the company’s MetaMask wallet software, which prompts users to self-custody Ethereum and other cryptocurrencies, was the main target of the SEC after receiving a Wells Notice letter indicating possible regulatory action.

The filing cited a prior declaration by the agency’s head, Gary Gensler, regarding the security status of ETH. In 2018, back when Gensler was a university professor, he affirmed that ETH is sufficiently decentralized, therefore it can not be considered a security.

Consensys believes by classifying ETH as a security, the agency should not be permitted to arbitrarily extend its jurisdiction to encompass governing the future of the Internet. In addition, the firm claims the SEC is being careless with its approach, thereby causing havoc for those involved in improving or managing crucial Ethereum-based systems.

The filing read:

The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network, and for Consensys. Every holder of ETH, including Consensys, would fear violating the securities laws if he or she were to transfer ETH on the network. And the ability of anyone new to acquire ETH to use Ethereum’s repository of decentralized applications and services would be extinguished. This would bring the use of the Ethereum blockchain in the United States to a halt, crippling one of the internet’s greatest innovations. 

The company’s major purpose in filing a lawsuit against the SEC is to protect access for the numerous developers, organizations, and market players that have an interest in the Ethereum blockchain, as well as to guarantee that ETH stays a dynamic and reliable blockchain platform.

Blockchain Adoption Brings Revolutionalization 

Consensys aims to increase the use of blockchain platforms like Ethereum which they believe will contribute to improving and reshaping upcoming generations to govern several systems in the world. These include social, political, economic, and technological systems, making the world more transparent, inventive, and equal. However, this promising vision is now under challenge from the SEC.

It is noteworthy that Ethereum offers permission-free human ingenuity feature, not just Permission-free information. As a result, Consensys has stressed the need for transparency, urging those who are against the SEC’s regulatory measures to speak up.

Американский платежный сервис Stripe объявил о возобновлении транзакций с цифровыми активами — после шестилетнего перерыва. Летом 2024 году команда обещает добавить поддержку переводов в стейблкоинах USDC.

Издание Bloomberg, со ссылкой на осведомленные источники, сообщило, что американская компания Pantera Capital намерена привлечь $1 млрд для своего нового криптофонда Pantera Fund V. Запуск фонда запланирован на апрель 2025 года.

Consensys, a prominent Ethereum development company, has fired the latest salvo in the ongoing battle between the crypto industry and the US Securities and Exchange Commission (SEC). The company filed a lawsuit on April 25th, accusing the SEC of an “unlawful seizure of authority” over Ethereum, the world’s second-largest cryptocurrency by market capitalization.

The lawsuit centers around the SEC’s recent actions towards Consensys, particularly its popular MetaMask wallet product. MetaMask allows users to store, manage, and trade cryptocurrencies, including Ethereum (ETH). However, the SEC appears to be taking aim at specific features within MetaMask, like its staking and swap functionalities.

Consensys Pushes Back On Security Classification

The company is seeking a definitive court ruling that declares ETH is not a security. This classification is crucial, as securities regulations can significantly impact how cryptocurrencies are traded and offered. Consensys argues that Ethereum, with its decentralized network and lack of a central issuer, doesn’t meet the traditional definition of a security.

The case also explores MetaMask’s functionality. According to the firm, the wallet is just an interface and not a broker. By asserting that MetaMask never retains user assets nor handles transaction execution directly, they effectively distance themselves from any possible infraction of securities regulations.

According to Joe Lubin, co-founder of Ethereum and founder/CEO of Consensys:

We don’t take this step lightly, but we feel compelled to act. Ethereum is for everyone. Consensys Cites Inconsistent Regulatory Landscape

Further complicating the situation is the SEC’s seemingly contradictory stance on Ethereum. The lawsuit references a 2018 speech by former SEC director Bill Hinman, where he classified Ethereum as a commodity, not a security.

Additionally, the firm argues that the SEC’s sister agency, the Commodity Futures Trading Commission (CFTC), already oversees derivative products tied to Ethereum. This perceived overlap in regulatory jurisdiction strengthens Consensys’ argument against the SEC’s recent actions.

Leaning On Legal Precedents

The lawsuit also invokes the “major questions doctrine,” a legal principle that limits the power of federal agencies when their actions have broad economic or political implications. Consensys argues that the SEC’s attempt to regulate Ethereum falls under this doctrine and requires explicit Congressional authorization. However, the effectiveness of this argument remains uncertain, as two judges have already rejected similar claims from other crypto companies.

Wider Implications For Crypto Industry

The Consensys lawsuit is a significant development with potential ramifications for the entire crypto industry. A court ruling in favor of Consensys could establish a clearer regulatory framework for Ethereum and similar cryptocurrencies. Conversely, a victory for the SEC could empower the agency to exert greater control over the crypto space, potentially leading to stricter regulations and increased scrutiny for companies like Consensys.

Featured image from Zachary Fruhling, chart from TradingView

ConsenSys, компания-разработчик кошелька MetaMask, подала в суд на Комиссию по ценным бумагам и биржам США (SEC) за то, что регулятор пытается взять на себя полномочия регулировать эфир как ценную бумагу.

Эксперты инвестиционной фирмы Benchmark прогнозируют, что американская компания-разработчик программного обеспечения MicroStrategy, один из крупнейших публичных держателей биткоина, будет включена в список S&P500.

Solana (SOL) has seen a “dramatic increase in allocations” from institutional investors, according to a recent survey conducted by CoinShares. The Digital Asset Fund Manager Survey, involving responses from 64 investors managing a cumulative $600 billion in assets, points to a burgeoning interest in altcoins, with Solana leading the charge among emerging favorites.

Solana See Increased Demand From Institutions

James Butterfill, Head of Research at CoinShares, detailed the findings, stating, “investors have been broadening their exposure to altcoins, with Solana seeing a dramatic increase in allocations,” highlighting that nearly 15% of participants now hold investments in SOL. This marks a significant uptrend from previous surveys, including January’s results, which showed no institutional investments in Solana.

Butterfill emphasized the growing institutional acceptance of Solana, noting its enhanced appeal following recent technological advancements and increased market presence. Meanwhile, Bitcoin still leads the market with more than 25% of respondents having invested in the leading cryptocurrency. Just behind is Ethereum with just under 25% as well.

Bitcoin and Ethereum, while maintaining their status as the dominant digital assets, are experiencing shifts in investor sentiment. Bitcoin remains the preferred asset with 41% of investors bullish on its growth outlook, though this is a slight decrease from previous surveys.

Ethereum has seen a dip in investor confidence, with about 30% of respondents optimistic about its future, down from 35%. This decline in Ethereum’s allure coincides with the rising interest in alternative blockchains like Solana, which offer different technological benefits and potential use cases.

In contrast, “investors are more optimistic for Solana,” the report finds. Around 14% of respondents think Solana has a promising growth outlook, which is higher than the previous survey’s indication of around 12%.

The survey also sheds light on the overall composition of digital asset investments. Digital assets now represent 3% of the average investment portfolio, the highest level recorded since the inception of the survey in 2021. This increase is attributed significantly to the introduction of US spot Bitcoin ETFs, which have allowed institutional investors direct exposure to Bitcoin without the complexities of direct cryptocurrency holdings.

Despite the optimistic influx of institutional capital into cryptocurrencies like Solana, the report reveals that substantial barriers still impede broader adoption. Regulation remains a significant concern, with many investors citing it as a key obstacle to further investment in the asset class. According to Butterfill, “Regulation remains stubbornly high as a barrier, yet it’s encouraging to see that concerns over volatility and custody continue to diminish.”

Additionally, the survey highlighted that while investor interest in distributed ledger technology remains high, the perception of cryptocurrencies as a good value investment has increased notably. From January to April, the percentage of investors who view digital assets as “good value” jumped from under 15% to over 20%, driven by increasing client demand and positive price momentum.

Looking ahead, the report suggests that the landscape for digital assets is evolving rapidly. As institutional investors continue to diversify their portfolios and seek exposure to innovative technologies, altcoins like Solana are likely to gain further traction. However, the pace of adoption will depend heavily on developments in regulatory frameworks and the broader economic environment, which continue to pose challenges and opportunities for investors in the space.

At press time, Solana traded at $144.07.

В отчете компании Fidelity Digital Assets указано, что число кошельков, содержащих биткоины на сумму свыше $1 000, увеличилось до 10,6 млн. С 2023 года рост составил 100%.

Федеральное бюро расследований (ФБР) призвало общественность работать только с теми криптовалютными сервисами, которые соблюдают процедуру «Знай своего клиента» (KYC) и правила борьбы с отмыванием денег (AML).

Комиссия по ценным бумагам и биржам США (SEC) подала иск в федеральный суд Форт-Уэрта штата Техас против компании Geosyn Mining, обвинив ее в обмане инвесторов на $5,6 млн и растрате привлеченных средств.

Бывший топ-менеджер Goldman Sachs Рауль Пал считает, что капитализация рынка альткоинов готовится к достижению новых рекордов, и вообще наступает «криптовалютное лето».

По данным компании по управлению активами CoinShares, институциональные инвесторы значительно увеличили вложения в альткоины и одним из бенефициаров стала криптовалюта Solana.

Новосибирским полицейским удалось задержать одного из крупнейших подпольных майнеров в истории России ― владелец нескольких майнинговых ферм сумел украсть электроэнергии на сумму 190 млн рублей.

A recent report revealed that the South Korean exchange Upbit dominates the local crypto market with over 80%. Additionally, Upbit rose to fifth place in the top five global exchanges list.

Different platforms have unsuccessfully challenged the exchange’s dominance in the country, and the upcoming regulatory framework has affected them.

Upbit Enters The Top-Five Global Crypto Exchange List

News media outlet Bloomberg reported on Upbit’s latest feat after eclipsing the Korean market. The reining Korean exchange holds over 80% of the country’s trading volume.

Upbit, the largest crypto exchange in South Korea, accounts for more than 80% of the trading volume in the country. The exchange has become one of the top five largest exchanges in the world in terms of trading volume, moving closer to Coinbase – BBG pic.twitter.com/f5jzHTBPIP

— NekoZ (@NekozTek) April 25, 2024

Notably, Upbit’s dominance level hasn’t been accomplished by other exchanges on any prominent crypto hub. According to official numbers cited by Bloomberg, over 6 million Koreans, around 10% of the population, traded cryptocurrencies in the first half of 2023.

The increase in volume during this bull run has propelled the exchange to the fifth spot among the global exchanges. Upbit’s $2.84 billion daily trading volume runs neck-and-neck with Coinbase’s $2.86 billion.

According to the report, South Korean exchange transactions accounted for almost a fifth of its banking partners’ total deposits last year. Similarly, altcoins account for 80% of Korean exchanges’ trading volume, while global platforms register a much smaller volume, with 50%.

Despite the looming shadow of Do Kwon and Terra Labs’ $40 billion meltdown, the Korean market continues to grow and become a market with the “keenest crypto traders with a taste for high-risk, high-reward tokens” in the world.

Moreover, recent reports revealed that the South Korean Won surpassed the American dollar as the leading currency for crypto trades globally in Q1,2024. The surge suggests a massive appeal and increasing popularity for crypto among South Koreans.

As a result, campaigns for the upcoming elections tried to attract voters, with candidates promising to work on regulations and taxes.

Does The New Regulatory Framework Favor Upbit’s Dominance?

South Korean regulators will implement the Virtual Asset User Protections Act in July 2024. The new regulatory framework will implement stricter requirements and consequences on exchanges, including potential life sentencing for criminal acts.

Moreover, operators must “take steps to meet liabilities” after hacks or system failures. The requirements demand both significant “capital and manpower,” according to Nam Hyeon Joon, a spokesperson for Korea’s second-largest exchange, Bithumb.

The new regulatory landscape was “designed to protect investors” after the Terra Labs collapse, but it has affected smaller exchanges. Platforms like Huobi Korea, Cashierest, and Coinbit have shut down since the bill was passed last year.

Simon Seojoon Kim, CEO of the Venture Capital firm Hashed, believes that well-resourced crypto exchanges like Upbit will make it easier to meet the requirements. “For existing and new entrants, the cost of complying with these requirements could be substantial,” stated Kim.

Korbit Research analyst Min Seung Kim concurs with the sentiment, adding that the competition will be limited as trading remains “increasingly focused on the top exchange.”

Platforms trying to compete with Upbit’s dominance have gone into zero-fee campaigns. According to the report, Bithumb briefly challenged Upbit after reaching a market share peak of 39.2% in January. However, the share dropped by more than half after its promotion ended.

Ultimately, entering the South Korean crypto market continues to be difficult. As recently seen with Crypto.com, complying with the country’s regulatory requirements requires a defined strategy and vast resources.

The market intelligence platform IntoTheBlock has pointed out a Bitcoin pattern that could suggest there is still plenty of time to go in the cycle.

Bitcoin Long-Term Holder Pattern Could Suggest Bull Market Isn’t Over Yet

In a new post on X, IntoTheBlock discussed a pattern that the total holdings of Bitcoin long-term holders have generally followed during bull markets in the past.

The “long-term holders” (LTHs) refer to investors who have been holding their coins for longer than a year (as defined by IntoTheBlock; other analytics firms use a different cutoff) without having sold or moved them on the blockchain.

Statistically, the longer an investor holds onto their coins, the less likely they become to sell at any point. As such, the LTHs, who hold for significant periods, are considered the unyielding section of the market.

The LTHs also display this resilience in practice, as they rarely sell despite whatever may be going on in the wider market. Recently, however, these investors have been participating in a selloff.

Given that this event isn’t exactly a common one, it can be something to note. Below is the chart shared by the analytics firm that shows the trend the combined holdings of the investors in this cohort have followed over the last few years.

As the graph shows, Bitcoin LTHs accumulated during the 2022 bear market and the 2023 recovery rally, but recently, their holdings have turned towards the downside.

Something to keep in mind is that a one-year delay is naturally attached to buying from this group, as only investors who have held for at least a year can be part of the cohort.

This means that when the LTH holdings go up, it doesn’t suggest that buying is happening in the present but rather that it occurred a year ago, and these coins have matured enough to qualify for the cohort.

However, the same doesn’t apply to selling, as the coins’ age instantly resets back to zero as soon as these investors remove them from their wallets. As such, the recent downtrend would reflect a selloff that is happening in the present.

“Data indicates that these seasoned holders initiated their sales in January and accelerated in late March,” notes IntoTheBlock. Interestingly, the chart highlights that a similar pattern was observed during the last two bull runs.

It would appear that these HODLers tend to start selling when the Bitcoin bull run starts properly and continue to sell beyond the top. Going by this pattern, the intelligence platform suggests, “there is plenty of time remaining when compared to previous cycles.”

BTC Price

At the time of writing, Bitcoin has been floating around $64,400, which is up over 1% in the past week.

Bitcoin remains shaky when writing, down 13% from its all-time high. However, despite the short-term uncertainty, one analyst on X remains bullish on the world’s most valuable coin, citing current developments from a technical perspective.

Is Bitcoin Inside A Wyckoff Re-accumulation Phase?

Taking to X, the analyst believes Bitcoin might be forming a Wyckoff Re-accumulation pattern on the daily chart. This means the coin could consolidate in a trading range before catapulting higher in the days ahead.

Technically, the Wyckoff Re-accumulation pattern identifies a phase when it is assumed that big players, primarily whales, are quietly buying at a discount. Price action remains muted and inside a defined range whenever they do this.

Currently, Bitcoin prices are inside a zone marked by support, at $60,000 on the lower end and all-time highs, at around $74,000 on the upper end.

Though the momentum remains bullish, bulls’ failure to edge higher or dump below the psychological level suggests that some big players might be deliberately keeping prices at spot rates. 

This preview considers the failure of bears to confirm losses of April 13. Even though BTCUSDT prices are still trapped inside this bear bar, it is clear that bulls flew back to support prices.

The only time sellers will be in control is if prices collapse below April 13 lows and $60,000 at the back of increasing volume. As it is, buyers have a chance and are trending inside a broad range, capped at $73,800.

Is BTC Preparing For Gains?

Though optimism exists, the leg up would be sparked by technical but most fundamental factors. Following last weekend’s Halving on April 20, the network’s daily emissions have decreased by 50%. With a reduced supply, the resulting scarcity could drive prices higher, assuming demand remains. 

However, whether this spike will occur in the next weeks or months remains to be seen. Once halving occurs, Bitcoin usually breaks previous all-time highs, in this case, $73,800. If this historical printout is respected, BTC could soar to fresh all-time highs by the end of the year.

Increasing institutional adoption via spot Bitcoin exchange-traded funds (ETFs) will drive a big part of this expected. As of April 24, Lookonchain data shows that GBTC decreased 538 BTC while BlackRock and other spot ETF issuers added 569 BTC. 

Inflow has reduced, but assuming prices pick up, it is likely that more users will be keen to add BTC to their portfolios. This, as a result, could drive prices higher.  

In a noteworthy development for the Bitcoin (BTC) market, BlackRock’s Bitcoin ETF, under the ticker name IBIT, has experienced a significant shift in trading dynamics. 

After an impressive streak of 71 consecutive days of inflows, IBIT recorded zero inflows during Wednesday’s trading session, marking the first time in nearly three months.

Turning Point For BlackRock’s Bitcoin ETF? 

IBIT had emerged as a frontrunner in the race among Bitcoin ETFs, securing the top spot in inflows and trading volume. However, this recent halt in inflows signals a potential turning point for the fund, albeit falling just short of claiming the record for consecutive inflow days.

Eric Balchunas, an ETF expert at Bloomberg, highlighted the significance of IBIT’s 71-day streak of inflows, noting that it is close to a record and underscoring its formidable performance since its launch. 

By comparison, Balchunas points out that even the popular gold ETF, GLD, experienced an impressive three-day streak of inflows during its initial launch phase.

Nonetheless, BlackRock’s absence of inflows on Wednesday was not exclusive; eight other Bitcoin ETF issuers also reported zero inflows. 

Notably, Fidelity, a strong contender in the ETF race and the runner-up in inflows since trading began in January, and Cathy Wood’s Ark Invest were the only managers to record inflows during Wednesday’s session, with $5.6 million and $4.2 million, respectively.

On the other hand, Grayscale, one of the largest BTC holders in the world, continued to experience outflows, with a staggering $130 million outflow on Wednesday alone. 

According to Farside data, Grayscale’s ETF GBTC has witnessed outflows totaling $1.2 billion in April alone. These outflows have exerted downward pressure on Bitcoin’s price, which has declined by 4.2% in the past 24 hours, currently trading at $62,990.

Declining Demand And Negative Funding Rate

In different developments within the Bitcoin market, bullish traders have shown signs of reducing their positions in the world’s largest cryptocurrency as two significant factors that propelled its growth begin to diminish. 

According to Bloomberg, the Bitcoin funding rate, which represents the premium paid by traders to open new long positions in the perpetual futures market, turned negative on April 19 for the first time since October 2023.

This shifting funding rate indicates a moderation in demand for Bitcoin following the launch of several US spot Bitcoin ETFs on March 15, when the token reached record highs of $73,700. 

Bitcoin funding rates reached a three-year high in March, indicating an overheated market. However, as of Tuesday, they fell below zero, suggesting a decreased desire among traders to open long positions. 

Julio Moreno, the Head of Research at CryptoQuant, stated that this trend reduces traders’ willingness to enter new long positions.

Analyst Vetle Lunde from K33 Research noted that the 11-day streak of neutral-to-below-neutral funding rates is unusual. A flurry of leveraged bets has promptly followed past dips in funding rates. 

Lunde suggests that the extended duration of the current perpetual discount may indicate further price consolidation in the market.

Furthermore, open interest in the Chicago-based CME Group’s Bitcoin futures market has decreased by 18% from its record high. This decline reflects a wavering interest among US institutions in cryptocurrency-related exposure and hedging.

As the cryptocurrency market seeks fresh catalysts, attention is now turning to Hong Kong, where a new set of spot Bitcoin ETFs is set to debut. The market is eagerly observing whether these ETFs can generate even a fraction of the demand their US counterparts enjoy.

Featured image from Shutterstock, chart from TradingView.com

In a recent development, crypto trading platform Robinhood has listed Shiba Inu (SHIB) for its New York users. The trading platform also drew attention to itself, having moved a significant amount of Shiba Inu tokens between its crypto wallets. 

Robinhood Lists Shiba Inu

Robinhood made this known in an X (formerly Twitter) post by informing New York State residents that Shiba Inu was now available for them. The trading platform also revealed that it had listed Avalanche (AVAX) and Compound (COMP), which these users could also trade now alongside Shiba Inu. 

Before now, Robinhood already made Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC), Dogecoin (DOGE), Chainlink (LINK), and Aave (AAVE) available to its New York customers. Last year, the platform had to delist Solana (SOL), Cardano (ADA), and Polygon (MATIC) after the Securities and Exchange Commission (SEC) branded them as securities. 

That move led to a drop in the crypto platform’s trading volume. Therefore, it wouldn’t be surprising if Shiba Inu and the two other tokens were strategically listed to shore up the gap left by the delisted tokens. SHIB, on its part, records an impressive daily trading volume, and Robinhood may be looking to tap into some of it. 

Besides, Shiba Inu’s popularity among Robinhood’s users is evident as the meme coin was well received in several other states where trading was already enabled. This positive response further underscores SHIB’s potential to succeed in the New York market.

Robinhood Moves 3 Trillion SHIB

On-chain data shows that Robinhood moved 3 trillion Shiba Inu tokens just hours before it announced that the meme coin was now available for trading to its New York customers. This transaction is likely to have been facilitated to meet the requests bound to pour in following the announcement. 

Robinhood could also have made the transaction simply to meet the existing demand from its customers in other states where Shiba Inu trading was already enabled. The trading platform is known to occasionally make whale transactions involving the meme coin. NewsBTC once reported how Robinhood accumulated 332 billion SHIB in a go. 

Despite only majorly serving the US market, Robinhood has built a formidable relationship with Shiba Inu. Data from Etherscan shows that a Robinhood-linked wallet is currently the fourth-largest holder of the meme coin. Meanwhile, data from the on-chain analytics platform Arkham Intelligence shows that the trading platform holds over 42 trillion SHIB across all its wallets. 

At the time of trading, Shiba Inu is trading at around $0.00002523, down over 6% in the last 24 hours, according to data from CoinMarketCap.