Из жизни альткоинов

There has been a noticeable uptick in network activity in the broader Ethereum ecosystem. According to Dune Analytics, excluding Ordinals-related addresses, there are over 10 million wallets actively engaging with the mainnet and Ethereum layer-2 solutions like Base, Optimism, and Arbitrum. 

Ethereum Ecosystem Vibrant: Record 10 Million Active Wallets 

This milestone is a direct result of the successful implementation of the Dencun Upgrade in mid-March 2024. The update, one of the many other upgrades set for Ethereum, has effectively addressed pressing challenges, particularly those related to scalability and gas fees. 

With the surge in active wallets connecting to various protocols deployed on the mainnet, sidechain, or off-chain rails, one analyst on X is upbeat, predicting the number to expand from 10 million to 100 million in the upcoming bull cycle. This spike will be accelerated partly by the enhancements brought by Dencun, which made layer-2 transactions using rollups cheaper. 

To do this, Dencun uses “blobs,” a new transaction type, to store data not processed by the Ethereum Virtual Machine (EVM). Blobs can be considered new data storage channels within a block that help streamline block verification. Notably, it does this without compromising data availability—a massive boost for Ethereum layer-2 solutions integrating Dencun. 

TVL Across Layer-2 And DeFi Protocols Fast Rising

 With falling gas fees and more efficient layer-2 platforms, Dencun has helped attract new users, revitalizing the broader Ethereum ecosystem. The increasing total value locked (TVL) across layer-2 portals and the mainnet reflect this. 

According to L2Beat, on average, the top leading layer-2 platforms like Arbitrum and Optimism have seen double-digit increases in the past week. So far, all layer-2 platforms manage over $39 billion in assets. Parallel data from DefiLlama also underlines this growth. Over the last six months, the TVL of leading decentralized finance (DeFi) protocols has increased from around $20 billion to over $54 billion at press time.

Despite these advancements, challenges remain. Ethereum is fragile and can’t scale efficiently whenever usage spikes. Therefore, it is highly likely that gas fees will rise in the next bull run, especially if ETH prices rally, breaking above $4,000 and all-time highs.

Additionally, users—mainly meme coin deployers—could prefer using alternatives like Solana or Avalanche, dampening activity.

Nonetheless, Ethereum supporters remain positive. As crypto prices stabilize and likely align with gains of Q1 2024, more users will be keen to explore some of the top protocols launched on the mainnet or via layer-2 platforms.

Crypto analyst CrediBULL Crypto has revealed his bearish expectations for the foremost meme coin, Dogecoin (DOGE). Based on his analysis, the crypto token could drop to as low as $0.5 soon enough.  

How Dogecoin Could Drop To As Low As $0.5

CrediBULL Crypto mentioned in an X (formerly Twitter) post that Dogecoin could drop to that price level depending on Bitcoin’s movement. He further revealed that he would be looking to open a short position if the meme coin first rose to between $0.18 and $0.20. Meanwhile, in a video posted on his YouTube channel, the analyst explained why he believed that Dogecoin could indeed drop this low. 

According to CrediBULL Crypto, Bitcoin will likely suck a lot of liquidity from altcoins as it begins to rise. This will cause crypto tokens like Dogecoin to experience significant price declines since there isn’t enough liquidity to sustain an upward trend. Specifically, he noted that DOGE’s decline to $0.5 will come when Bitcoin hits $100,000, as he predicts that is when the flagship crypto token will suck up most of the liquidity in the market. 

The crypto analyst further claimed that although it might seem unfathomable, Dogecoin dropping to such lows is possible considering the massive rise it already made against its Bitcoin pair. As such, he stated that a 50% retracement is “nothing,” bearing this in mind. 

Going forward, he expects Dogecoin to face rejection, like other altcoins, on its next leg up and then drop to between $0.9 and $0.10. He added that a relief pump would likely follow after that, but the meme coin will face another rejection, which will cause its price to “come further down and bleed as Bitcoin skyrockets.”

Dogecoin Will Still Rise To $1

Despite his bearish expectations for Dogecoin, CrediBULL Crypto “100%” agrees with those who have predicted that the meme coin will rise to $1 in this market cycle. He, however, remarked that this move won’t be as straightforward as some other crypto analysts claim it would be. 

Based on his expectations, CrediBULL Crypto disagrees that Dogecoin has bottomed out and will begin to move unfettered to the upside. Instead, he predicts that the meme coin will only make this move after liquidity in the crypto market has rotated to Bitcoin and major cap tokens. Once that is done, he expects that memes will be at the tail end of the rotation, and that is when Dogecoin will make this parabolic rise to $1.  

At the time of writing, Dogecoin is trading at around $0.16, up over 1% in the last 24 hours, according to data from CoinMarketCap.

In a letter addressed to US Judge Richard A. Jones for the Western District of Washington, former Binance CEO Changpeng Zhao, commonly known as “CZ,” expressed his remorse and apologized for what he called “poor decisions” made during his tenure as the head of the cryptocurrency exchange. 

The letter was filed on Tuesday, ahead of his sentencing for charges related to anti-money laundering and sanctions violations.

Former Binance CEO Apologizes For “Poor Decisions” 

CZ began the letter by expressing gratitude to the court and the Probation Office for their time and consideration throughout the legal process. He acknowledged the probation officers for allowing him to speak candidly and understand him as a whole person. 

Changpeng Zhao accepted full responsibility for his actions and admitted that he should have prioritized implementing compliance changes at Binance from the outset. He expressed regret for failing to establish necessary compliance controls.

The former CEO highlighted that under his direction, Binance has implemented the most stringent anti-money laundering controls among non-US exchanges since 2022. 

CZ emphasized the rapid growth and the challenges faced in keeping the platform afloat during its early years, eventually building a secure product that has safeguarded users and their funds. 

Moreover, CZ apologized to his family, friends, Binance employees, and the wider crypto community, acknowledging the significant impact his actions have had on their lives.

Binance’s former CEO acknowledged the significant changes in his life, noting that he is no longer Binance’s CEO and has accepted this new reality. He expressed optimism about making positive impacts in other areas in the future. 

Reflecting on his unconventional path, CZ shared his immigrant background and self-funded college education. In those cases, he mentioned his previous failed startups and his commitment to returning investor money. He stated that he voluntarily surrendered and took responsibility in this case to resolve the issue before the court.

CZ’s Vision Beyond Binance

Looking ahead, CZ expressed his interest in cryptocurrency’s potential to provide inclusiveness and equal opportunity worldwide. He mentioned his intention to explore opportunities in biotech, particularly focusing on funding research labs to cure diseases and providing medical access using blockchain technologies. 

CZ also emphasized his commitment to assisting underprivileged youth through various worldwide educational and living standards programs.

It is worth noting that the US Department of Justice (DOJ) has recommended a three-year prison sentence for CZ, alleging that his “deliberate violation” of US laws was an “integral part” of Binance’s business strategy. 

The DOJ claimed that Binance “aggressively” targeted US customers without adhering to necessary legal standards, allowing illicit financial flows. 

The DOJ memo described CZ’s actions as a calculated decision to disregard US laws for personal gain. The prosecution further stated that CZ bet on not getting caught and anticipated that the consequences would not be as severe as the crime committed.

Currently, the exchange’s native token BNB is trading at $601 after a substantial 14% price recovery in the last week alone. 

Featured image from Bloomberg, chart from TradingView.com 

In a major development, the co-founders of Samourai Wallet, Keonne Rodriguez, and William Lonergan Hill, were arrested by US authorities on charges of operating an unlicensed money-transmitting business and conspiracy to commit money laundering. 

The duo allegedly facilitated the laundering of over $100 million in criminal proceeds, including funds originating from the Silk Road and Hydra Market.

Samourai Wallet’s Alleged Criminal Activities

The arrest of Rodriguez and Hill comes as a result of an extensive investigation led by the United States Department of Justice (DOJ), with collaboration from the Internal Revenue Service-Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI). 

The indictment unsealed by the DOJ reveals that Samourai Wallet, a cryptocurrency mixing service, allegedly conducted more than $2 billion in “unlawful transactions”, earning millions of dollars in fees.

According to the DOJ’s press release on the matter, Samourai Wallet used various features to enable anonymous financial transactions, attracting criminals seeking to engage in “large-scale” money laundering and sanctions evasion. 

‘Whirlpool’ And ‘Ricochet’ Features Under Scrutiny

It is alleged that the cryptocurrency mixing service offered by Samourai Wallet, known as “Whirlpool,” facilitated the coordination of cryptocurrency exchanges between groups of users to prevent the tracing of criminal proceeds on the blockchain. 

Additionally, Samourai Wallet provided a feature called “Ricochet,” allowing users to add unnecessary intermediate transactions to allegedly obfuscate the origin of cryptocurrency batches. 

These features collectively processed over 80,000 BTC (worth over $2 billion) since their introduction, with Samourai Wallet collecting substantial fees estimated at $3.4 million for Whirlpool transactions and $1.1 million for Ricochet transactions, as disclosed by the DOJ.

As the legal proceedings unfold, Rodriguez has been arrested and is expected to appear before a US Judge in the Western District of Pennsylvania, while Hill was arrested in Portugal, and the United States intends to seek his extradition for trial. They face up to 5 years in prison. 

Featured image from Shutterstock, chart from TradingView.com 

A crypto expert has dropped an information bomb on the crypto community, exposing Market Makers (MMs) for their alleged influence in cryptocurrency price movements. The analyst has unveiled a series of strategies investors can apply to take advantage of this supposed manipulation, highlighting ways to recognize tokens involved with market makers and how to profit from it. 

Market Makers Manipulate Crypto Price Movements

A crypto analyst identified as ‘Rekt Fencer’ on X (formerly Twitter) has exposed different ways crypto market makers purportedly influence the prices of cryptocurrencies in the market. 

For clarity, market makers are firms or individuals who facilitate cryptocurrency trades by providing liquidity to the market through buy and sell orders. The analyst highlighted that market makers play a critical role in Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). 

According to Rekt Fencer, market makers use all sorts of unique techniques to allegedly manipulate a token’s price. The crypto analyst revealed multiple strategies used by these liquidity providers to control a bull and bear market.

In the bull run, market makers supposedly influence token prices by allowing investors to buy as many tokens as they want. They also create a sense of Fear Of Missing Out (FOMO) among investors when they observe price charts that depict significant price increases. 

Similarly, during bear markets, these liquidity providers acquire tokens at bottom prices to prepare for the next bull run. Additionally, they work towards generating an adequate amount of daily trading volume on CEXs to prevent a token from being delisted.  

The crypto analyst shared distinct chart patterns for investors and traders to identify a market maker’s influence on token price movements. As an illustration, he cited the case of popular meme coin Floki (FLOKI), which had worked with DWLabs, a market maker, to allegedly push the token up by 772% in just three weeks.  

How To Spot Tokens Working With Market Makers

According to Rekt Fencer, an investor can spot a cryptocurrency associated with a market maker if the token experiences significant price surges just before a major news hits. He also revealed that a consistently increasing trading volume without any big price changes was another major indicator.  Additionally, repeated chart patterns such as frequent pumps and dumps would suggest market manipulation in a cryptocurrency. 

The crypto expert disclosed that market makers tend to exploit the psychological tendencies of investors, particularly during prolonged market declines, instilling fear and triggering panic selling among token holders. A price rebound back to the normal range then follows these sell-offs, often indicative of a manipulative scheme. 

Rekt Fencer has unveiled a strategy for investors and traders to exploit the alleged manipulative tactics employed by market makers. He suggests buying tokens during accumulation phases and selling them during distribution stages to potentially secure profits. Additionally, he provided a list of tokens currently in their accumulation phases, implying that investors could consider purchasing these tokens for possible returns.

In a significant development for the Bitcoin (BTC) market, Hong Kong is poised to witness the commencement of trading for several spot Bitcoin ETFs on April 30th. 

This milestone follows the successful approval and subsequent trading of Bitcoin ETFs in the United States earlier this year under the regulatory purview of the Securities and Exchange Commission (SEC). 

With institutional adoption on the rise and Bitcoin reaching its all-time high of $73,700 in March, the forthcoming launch of these ETFs in Hong Kong holds great promise for the cryptocurrency market.

Fee Battle Looms 

The Hong Kong Securities and Futures Commission (SFC) made a noteworthy announcement on April 15th, approving multiple Spot Bitcoin and Ethereum ETFs for trading. This regulatory approval has paved the way for the trading of Bitcoin ETFs in Hong Kong. 

Industry experts Eric Balchunas and James Seyffart from Bloomberg anticipate an ensuing fee war as the ETF issuers strive to attract the largest number of clients.

Balchunas and Seyffart predict a potential fee war in Hong Kong as the Bitcoin ETFs prepare for launch. Harvest Fund, for instance, plans to enter the market with a full fee waiver and the lowest fee of 0.3% following the waiver period. 

As seen in the chart above, three major players in the market, ChinaAMC, Harvest Fund, and Bosera, are identified with fees ranging from 0.99% to 0.3% (post-waiver) and 0.60%, respectively, all accompanied by cash redemptions.

Revised Bitcoin ETFs Projections

The competitive fee structures of these Bitcoin ETFs are expected to generate increased interest among investors, potentially attracting higher assets under management. 

Balchunas acknowledges the relatively lower fee levels, describing them as a positive sign for the market. Lower fees are likely to enhance the appeal of these index funds and drive up their assets under management (AuM).

While optimism surrounds the launch of Bitcoin ETFs in Hong Kong, Eric Balchunas offers a cautious analysis of potential inflows into this new market. 

Blachunas suggests that these ETFs may lag behind their US counterparts, which have already achieved a trading volume exceeding $200 billion since their launch in January. 

Balchunas has revised his initial forecast, estimating that these Hong Kong ETFs could attract up to $1 billion in assets under management within the first two years of operation, doubling his previous projection of $500 million.

At the time of writing, the price of BTC stands at $66,000, reflecting a 1% decline over the past 24 hours and a nearly 3% decrease over the past fourteen days. 

Despite this recent trend, the imminent launch of ETFs in the Hong Kong market can significantly impact BTC’s price, potentially propelling it to higher levels and even retesting its current all-time high zone.

Featured image from Shutterstock, chart from TradingView.com 

On-chain data suggests the selling pressure from the Bitcoin miners and HODLers has been drying up, a sign that could be positive for the asset.

Bitcoin LTHs Stop Selling, While Miner Distribution Slows Down

As explained by analyst James Van Straten in a post on X, two BTC groups in particular have been a source of major sell-side pressure in the market recently: the long-term holders (LTHs) and miners.

The LTHs refer to the investors who have been holding their coins since more than 155 days ago. These holders are considered the resolute side of the sector, as they rarely sell regardless of whatever is going on in the wider market.

The rally to the new all-time high this year, however, managed to entice even these HODLers into selling their coins and harvesting the profits that they had earned over their long holding time.

According to Straten, though, the selloff from these investors has petered out recently. “LTHs have been relatively flat for the past few weeks, as BTC ranges, which is a good sign that profit-taking is subsiding,” notes the analyst.

Unlike the LTHs, however, the miners, which represent the other major source of selling pressure in the market, have still continued to distribute recently. Nonetheless, as the chart below would suggest, the selling from these chain validators has at least been going down in scale.

The graph shows the data for the monthly balance change for the miners as a whole. This cohort had turned into a seller back in November and had kept up the selling at a more or less consistent rate over the next few months, as the monthly balance change had maintained around the same notable red values.

Recently, however, the metric has been trending up and although it’s still negative, the latest value has been about the lowest since the selloff began, as the miners sold just 1,300 BTC over the past 30 days.

The analyst suggests that this group could even turn into a net accumulator soon, as “the halving forces miners to become more efficient. Weak miners purged, less selling into the market.” The halving here naturally refers to the periodic event on the BTC network where block rewards are permanently slashed in half.

The block rewards are what miners receive for solving blocks on the network and serve as the main component of their revenue, so these events have significant consequences for this group. Halvings occur approximately every four years and the latest one took place just a few days back.

With selling pressure from these two cohorts, who had been actively distributing recently, now drying up, Bitcoin perhaps may finally be able to regain its bullish push from earlier, at least to some degree.

BTC Price

Bitcoin has been making some recovery from its recent lows, but the overall picture is that the asset is still consolidating inside its recent range as it trades around $66,600.

A crypto analyst has unveiled a bullish technical indicator for the popular doggy-themed meme coin, Dogecoin, predicting that the cryptocurrency could potentially outperform the world’s largest cryptocurrency, Bitcoin.  

Dogecoin Shows Signs Of A Bullish Breakout

In a recent X (formerly Twitter) post, crypto analyst, Kevin expressed optimism regarding Dogecoin’s recent price outlook, forecasting the cryptocurrency’s potential to surpass Bitcoin’s 2024 gains. Sharing a Dogecoin versus Bitcoin price chart, Kevin revealed that the doggy-themed cryptocurrency was presently “consolidating in a golden pocket.”

This term refers to a specific price range or numerical percentage that signifies an area of support or resistance, historically used to indicate a potentially slow or aggressive upward trend. 

According to Kevin, DOGE’s price is currently positioned “above all bull markets uptrending Market Averages (MAs)”. This means that the cryptocurrency is presently holding steady and demonstrating resilience amidst present market volatility and fluctuations. 

The analyst has stated that if Dogecoin successfully sustains its current momentum, the cryptocurrency could rise to unprecedented heights, possibly outperforming Bitcoin. 

Since the beginning of the year, Bitcoin has surged by over 143.64%, according to CoinMarketCap. Before the halving event, in March, the cryptocurrency experienced exponential gains that have propelled its price to new all-time highs above $73,000. At the time of writing Bitcoin is also trading at a price of $66,699, marking a $0.90 increase in the past 24 hours. 

If Dogecoin succeeds in outperforming Bitcoin, it would potentially place the doggy-themed meme coin among the top gainers in the second quarter of the 2024 crypto market. 

DOGE Price Update

The price of Dogecoin has been performing relatively well despite the recent market volatility and low performance of Bitcoin and other top cryptocurrencies in the space. Following the meme coin mania earlier in February and March, numerous cryptocurrencies including Dogecoin had surged considerably.

However, as investors’ interest in meme coins waned and began to shift to other cryptocurrencies, many coins had retraced, plummeting and reverting to their lower value. 

As of writing, Dogecoin’s price is $0.16, reflecting a 24-hour increase of 2.73%. The cryptocurrency has been on an upward trend since the past week, marking a 3.41% surge in its value. 

Dogecoin’s trading volume has also had a noticeable uptick, increasing by 5.21% and recording a total volume of more than $1.1 billion. Its market capitalization is also up by 2.74%, amounting to $23.3 billion. 

Electric vehicle giant Tesla faces a financial slowdown, reporting a 15% dip in revenue and a nearly 50% plunge in adjusted earnings for the first quarter of 2024. This comes alongside the company’s first negative cash flow since early 2020. However, in a surprising move, Tesla has held onto its entire Bitcoin portfolio, signaling a potential shift in its cryptocurrency strategy.

Tesla’s Bitcoin Stance: From Selling Spree To HODLing

Previously, Tesla had a more fluid relationship with Bitcoin. In 2022, the company made headlines by selling off 75% of its holdings. This move coincided with a period of market volatility for Bitcoin.

Q1 Earnings Call starting in ~10 mins https://t.co/NSPNDuqW5D

— Tesla (@Tesla) April 23, 2024

However, Tesla’s recent decision to forgo further sales suggests a change of heart. Industry analysts believe Tesla might be embracing a long-term “HODLing” strategy, a popular term in the cryptocurrency community referring to holding onto digital assets for the long haul. This aligns with the approach of companies like MicroStrategy, which has been a vocal proponent of Bitcoin and continues to accumulate it.

Aligning With Industry Titans: Betting On The Crypto’s Future

Tesla’s shift in strategy could be due to several factors. The recent Bitcoin halving event, which cuts the number of new coins entering circulation every four years, might have bolstered confidence in its long-term value proposition.

Additionally, with BTC reaching a record high of $73,250 in March, Tesla’s existing holdings have seen a significant appreciation. This potential for future growth could be a key motivator for holding.

Tesla’s decision positions them among the leading corporate holders of Bitcoin. Currently, the company sits as the third-largest publicly traded company owner of the cryptocurrency, trailing only MicroStrategy and Marathon Digital Holdings. Combined with its subsidiary SpaceX’s holdings, estimates suggest Tesla and SpaceX hold over $1 billion worth of Bitcoin.

Market Volatility And Tesla’s Future

While Tesla’s renewed faith in the top crypto asset is interesting, some analysts remain cautious. The cryptocurrency market, despite recent highs, is known for its volatility. A sudden downturn could see the value of Tesla’s holdings plummet, impacting their overall financial health.

Tesla’s own financial struggles could influence their future crypto strategy. If the company’s cash flow situation doesn’t improve, they might be forced to sell their holdings to generate liquidity.

Overall, Tesla’s decision to hold onto Bitcoin presents a fascinating case study. It highlights the growing institutional interest in cryptocurrency and the potential for major corporations to play a significant role in shaping its future. However, with significant market volatility and Tesla’s own financial challenges, it remains to be seen if this renewed focus on Bitcoin will pay off in the long run.

Featured image from Pexels, chart from TradingView

As optimism around Ethereum Spot Exchange-Traded Funds (ETFs) continues to dwindle, Grayscale Investments, the world’s leading digital asset manager, has filed an S-3 Registration Statement for its Ethereum Trust, marking a major advancement in its Ether investment services.

Grayscale Ethereum Trust Sets Stage For Growth

Popular Fox Business journalist Eleanor Terrett reported that the company filed the S-3 registration statement with the United States Securities and Exchange Commission (SEC), requesting to convert its Ethereum Trust into a spot ETH ETF. 

According to Terrett, Grayscale’s Ethereum Trust product is already registered with the SEC, thus, it does not need to file an S-1 form like other ETH ETF issuers or applicants such as Van Eck, Blackrock, Ark Invest, Hashdex, Invesco Galaxy.

With the recent filing, Grayscale has now submitted all the necessary paperwork for the regulatory watchdog to consider its ETH ETF application and provide a ruling. However, the document has not yet been made accessible to the general public.

Terret also reported that the asset firm has filed for an S-1 mini Ethereum ETF under the ticker ETH, similar to that of its Bitcoin mini-me ETF filed under the ticker BTC. In March, the asset manager applied to the SEC for approval to spin out a portion of GBTC shares in order to launch the new mini-me BTC ETF.

Specifically, Grayscale came up with the strategy to halt its ever-increasing GBTC outflows since the approval of BTC ETFs in the US. However, the mini-me Bitcoin ETF has yet to receive a green light from the agency.

ETF Shares To Be Listed On NYSE Arca

It is noteworthy that the company filed the S-3 form with the Commission under the Securities Act of 1933. The firm made the move after NYSE Arca filed Form 19b-4 for the Grayscale Ethereum Trust.

With the approval of NYSE Arca’s application on form 19b-4 to list shares and the effectiveness of form S-3 to register the shares, Grayscale plans to list its ETH ETF on NYSE Arca under the ticker ETHE and issue shares continuously. These shares will be made available solely through a prospectus method.

Although the shares have been registered with the SEC through a registration statement, they have not yet been deemed operational. Prior to when the registration statement takes effect, neither the shares nor purchase bids may be accepted, and any sale of these shares will be deemed unlawful.

By submitting the S-3 registration statement, Grayscale hopes to improve regulatory compliance and lucidity for its ETH Trust. As a result, it will provide prospective investors with more assurance and clarity when negotiating the intricacies of cryptocurrency investments. 

This move demonstrates Grayscale’s proactive response to the rising demand from institutional and retail investors for Ethereum exposure, enhancing its stand as a leader in the digital asset market.

In a nuanced critique published on X, a prominent Dogecoin contributor known as @Mishaboar has issued a significant warning concerning the trading of meme coins, especially those that secure listings on cryptocurrency exchanges almost immediately after their release. The contributor, who is a key figure within the Dogecoin community, used his platform to outline the potential pitfalls that unsuspecting investors might face.

The Risks Of Memecoins

@Mishaboar expressed deep concerns regarding the current trend in the crypto markets where meme coins quickly achieve market capitalizations in the millions or even billions of dollars, facilitated by almost instantaneous listings on major exchanges. He stated, “There is an explosion in tokens that go up to crazy market caps, with instant listings (within days) on large exchanges (sometimes in spite of red flags).” This phenomenon, he argued, typically indicates significant backing from venture capitalists (VCs) and crypto exchanges themselves.

According to @Mishaboar, the rapid listing of these tokens is often prearranged through partnerships between token creators and crypto exchanges. “These big players usually hold a large portion of the tokens and may strike deals with exchanges before the tokens launch,” he explained. This arrangement allows them to profit from initial trading surges, while also increasing the nominal liquidity on their platforms at minimal cost. Such practices raise questions about the transparency and fairness of the token launch and listing process.

He also highlighted the role of influencers in shaping the market perception of these tokens. “Influencers tend to create a narrative around these tokens claiming they are ‘community run’, that they are your ‘frens’, but this is often really not the case,” @Mishaboar noted. He argued that these narratives are crafted to mask the centralized, profit-driven nature of these token launches, misleading the community about the true character and governance of these tokens.

Revisiting past controversies, @Mishaboar brought up unresolved questions about potential insider trading activities of BOME, especially regarding how platforms like Binance quickly list new and risky tokens. “I have a question regarding Binance’s involvement in the launch of certain tokens. Specifically, does Binance have pre-launch agreements with any of the artists or creators of these tokens?” he asked. This question aims to uncover whether there’s a deliberate strategy to manage risks for users or if the rapid listing process inherently increases the risks for them.

Expanding on the general risks associated with memecoins, @Mishaboar differentiated between various types of tokens. He emphasized that while some memecoins might have a community aspect, others are “100% VC backed” and are typically those that see instant exchange listings. “Not all tokens are the same,” he declared, urging traders to recognize the high-risk nature of these investments.

Dogecoin’s Status And Future Outlook

Addressing a user’s concerns about Dogecoin’s projects and asset status, @Mishaboar provided reassurances about the ongoing development and stability of Dogecoin’s network. “Dogecoin’s network is chugging along just fine, and 1.14.7 was released a couple of months ago,” he confirmed. He highlighted the continuous efforts of volunteer developers who have significantly reduced technical debt since 2021, improving the overall health of the network.

He added, “We will have new releases of Dogecoin Core (the reference implementation) and there are companies and organizations and indie devs building stuff for it. As for companies (e.g. like X or Tesla) integrating it into their platforms, this is really up to these companies and the laws they must comply to. Technically there is nothing missing in Dogecoin that would prevent them from adopting it.”

In concluding his extensive remarks, @Mishaboar reiterated the importance of vigilance and informed decision-making in the cryptocurrency market. He reminded his audience that despite the allure of quick profits, the volatile nature of memecoins means that trading them is akin to gambling, with risks varying significantly across different tokens and market caps.

At press time, Dogecoin traded at $0.1615.

Amidst economic turmoil and stringent regulations, citizens in countries like Argentina and Venezuela have turned to Bitcoin as a lifeline. The International Monetary Fund (IMF) examines how individuals in these nations are leveraging Bitcoin to manage their finances, bypassing capital controls through off-blockchain transactions.

This trend underscores the resilience and adaptability of cryptocurrencies in providing financial autonomy to individuals in challenging economic environments.

The IMF has released a groundbreaking report titled “A Primer on Bitcoin Cross-Border Flows,” shedding light on the increasing relevance of the world’s most popular cryptocurrency in facilitating international financial exchanges.

Understanding The Dynamics Of Bitcoin Transactions

The report also uncovers a fascinating correlation between Bitcoin flows and traditional economic markers. Contrary to conventional wisdom, cryptocurrency-specific factors such as market volatility and user sentiment exert a stronger influence on crypto transactions than traditional indicators.

This suggests that cryptocurrencies, with their unique adoption dynamics, possess the potential to serve as a hedge against conventional financial risks, offering individuals and businesses a novel avenue for diversification and risk management.

Navigating Regulatory Challenges In The Crypto Landscape

While recognizing the promising role of Bitcoin in fostering cross-border commerce and financial inclusion, the IMF report sounds a note of caution regarding regulatory oversight. The inherent anonymity of cryptocurrency transactions raises concerns about their potential misuse for illicit activities such as money laundering.

Consequently, the report underscores the imperative for global cooperation in establishing clear and consistent regulations to mitigate risks and foster a secure environment for cryptocurrency transactions.

The call for comprehensive cryptocurrency regulation echoes across borders, as policymakers grapple with the complexities of overseeing a rapidly evolving financial ecosystem. Clear and transparent regulations not only address the risks associated with Bitcoin and other cryptocurrencies but also lay the groundwork for a more predictable and stable financial environment.

By striking a delicate balance between fostering innovation and safeguarding against potential abuses, regulators can pave the way for continued growth and innovation in the cryptocurrency industry.

Embracing The Potential Of Bitcoin

As Bitcoin’s influence on global finance continues to expand, the IMF report serves as a timely reminder of the opportunities and challenges associated with cryptocurrencies. While Bitcoin holds immense promise in facilitating cross-border transactions and promoting financial inclusion, effective regulation is essential to mitigate risks and ensure the integrity of the financial system.

By embracing the potential of Bitcoin while proactively addressing regulatory challenges, policymakers can harness the transformative power of cryptocurrencies to shape a more inclusive and resilient global economy.

Featured image from Pexels, chart from TradingView

Changpeng Zhao, the founder and CEO of Binance, the largest cryptocurrency exchange globally, faces a sentencing recommendation of three years imprisonment from the US Department of Justice (DOJ). This follows his guilty plea last year to charges concerning severe lapses in the company’s anti-money laundering (AML) controls, as mandated by the US Bank Secrecy Act.

A “Message” To The Binance Founder And The World

Zhao’s explicit disregard for US regulations was underscored by the DOJ in a scathing sentencing memorandum. They quoted Zhao’s own words, highlighting his approach to legal compliance: “Better to ask for forgiveness than permission,” suggesting a strategic bypass of regulatory requirements to expedite Binance’s market expansion and profitability.

The DOJ laid out the case against Zhao, describing how his decisions to flout US laws were integral to Binance’s business strategy, which aggressively targeted US customers without adhering to requisite legal standards. “Zhao’s willful violation of US law was no accident or oversight. He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets,” the US Attorney’s Office stated.

According to the DOJ, Zhao’s actions enabled Binance to operate a ‘Wild West’ model of cryptocurrency exchange, inviting illicit financial flows. The memorandum notes, “As a result, Zhao is one of richest people in the world and a celebrity in the crypto industry. Zhao bet that he would not get caught, and that if he did, the consequences would not be as serious as the crime.”

The prosecution detailed how Zhao’s failure to implement an effective AML program led Binance to process hundreds of millions of dollars worth of transactions violating US sanctions against Iran and other countries, quantifying the total at approximately $898 million.

The sentencing memorandum emphasizes the gravity and scale of these violations, stating, “Zhao knew that his decision not to implement an effective AML program would result in Binance facilitating transactions between US users and users in Iran and other sanctioned countries and regions in violation of US law.”

In light of these findings, the DOJ is recommending a sentence that would go beyond the federal guidelines, suggesting a 36-month term of imprisonment to “reflect the seriousness of the offense, promote respect for law, afford adequate deterrence, and serve as just punishment for Zhao’s criminal acts.”

Zhao’s sentencing is poised to set a precedent in the regulatory oversight of the crypto industry, particularly concerning compliance with US financial laws. The outcome will likely resonate across the crypto landscape, potentially reshaping how exchanges operate in compliance with US regulations. The DOJ’s closing remarks in the memorandum drive home the broader implications of Zhao’s sentencing: “The sentence in this case will not just send a message to Zhao but also to the world.”

The final sentencing decision, expected to be delivered on April 30, marks a crucial juncture for the legal scrutiny of crypto operations within the United States.

At press time, BNB traded at $607.7.

American charities are experiencing a windfall thanks to a new kind of currency: cryptocurrency. By accepting donations in crypto such as Bitcoin, Ethereum, and other digital assets, non-profits are witnessing a surge in contributions, streamlining processes, and reaching new donor demographics.

This year alone, the two largest US charities have reportedly raised over $2 billion through crypto donations, according to a recent report by Bankless Times. This represents a massive leap from the $125 million collected in donations throughout 2022. The Giving Block, a platform facilitating digital currency donations for charities, has been instrumental in this shift.

Crypto Donations: A Boon For Efficiency And Convenience

The rise of crypto donations offers several advantages for both charities and donors. Platforms like The Giving Block simplify transactions, allowing donors to bypass complex international money transfers. This expedites the process and ensures donations reach their intended causes faster. Additionally, this type of donations often appeal to a younger, tech-savvy generation comfortable with digital transactions.

For charities, accepting crypto donations translates to a wider funding pool. It allows them to tap into a global network of investors who may not have traditionally participated in philanthropy. This diversification can be crucial for organizations seeking to expand their reach and impact.

Regulatory And Security Challenges

While the influx of crypto donations presents exciting opportunities, it also comes with challenges. Charities must navigate a complex regulatory landscape to ensure compliance with Know Your Client (KYC) and Anti-Money Laundering (AML) laws.

These regulations are essential for preventing fraud and maintaining the integrity of the financial system. However, navigating KYC/AML compliance can be a time-consuming and resource-intensive process for nonprofits.

Furthermore, the digital nature of cryptocurrency exposes charities to cybersecurity risks. Hackers may target these organizations to steal donated funds. To mitigate these risks, charities need to invest in robust cybersecurity measures and stay updated on the latest threats.

The Future Of Philanthropy: A Promising Outlook

Despite these challenges, the trend of crypto donations in the nonprofit sector shows no signs of slowing down. With the increasing adoption of Bitcoin and growing public confidence in digital transactions, charities are likely to see a continued rise in digital currency contributions.

As the regulatory environment evolves and security protocols strengthen, crypto donations hold the potential to revolutionize philanthropic giving, fostering a more efficient, transparent, and globally connected giving ecosystem.

Featured image from Pexels, chart from TradingView

The tides are shifting in the Bitcoin sea. A recent analysis by CryptoQuant, a blockchain analytics firm, paints a picture of a changing investor landscape, with a new breed of “whales” – high-volume crypto holders – entering the fray and established players holding their ground.

This influx of fresh capital is significant. CryptoQuant CEO Ki Young Ju reports that these “new whales,” likely hailing from traditional finance and entering through Bitcoin ETFs, have amassed a staggering $111 billion worth of Bitcoin. This edges the holdings of established, “long-term whales” whose collective stash sits at $67 billion.

The new whales’ initial investment in #Bitcoin is almost twice the old whales’ cumulative total. pic.twitter.com/SU5Aiw1nJB

— Ki Young Ju (@ki_young_ju) April 23, 2024

Crypto Newcomers With Deep Pockets

While the financial firepower of these new whales is undeniable, their profit picture paints a different story. Unlike their seasoned counterparts who boast over 200% in unrealized profits, these newcomers are experiencing a much more modest 1.5% gain. This suggests they might have entered the crypto market at a higher price point, potentially during the recent surge towards the $67,000 resistance level.

Miners Making Hay

Despite the contrasting fortunes of New and Long-Term Whales, the overall market sentiment seems bullish. CryptoQuant’s analysis extends beyond whales, revealing healthy profits for miners as well.

Small miners are leading the pack with an impressive 130% in unrealized profits, while their larger counterparts haven’t done too shabby either, sitting at a comfortable 81%. This robust mining profitability indicates a healthy network, with miners diligently securing the Bitcoin blockchain.

Bullish Outlook

Ju believes this data combination points towards a prolonged bull run. The fact that New Whales haven’t cashed out for significant profits suggests they’re in it for the long haul, potentially anticipating further price increases. This aligns with the ongoing interest in Bitcoin ETFs, with Fidelity’s IBIT leading the pack in terms of new investments last week.

The $67,000 Question

However, the path forward isn’t entirely smooth sailing. Bitcoin is currently struggling to decisively break through the $67,000 resistance level. This could be a point of contention in the near future, with bulls pushing for a breakout and bears looking for a potential correction.

The cryptocurrency market is witnessing a fascinating dynamic. New investors with deep pockets are entering, established whales are holding firm, and miners are profiting handsomely. While the short-term price movement of Bitcoin remains to be seen, the overall market sentiment seems to favor a continuation of the bull run.

Featured image from Pexels, chart from TradingView

In yesterday’s court filing opposing the US Securities and Exchange Commission’s (SEC) motion for remedies and final judgment, Ripple disclosed significant changes to its On-Demand Liquidity (ODL) operations in the United States. The filing clarified that its US-based ODL services have shifted from using XRP to Tether (USDT) as a bridge currency.

Why Ripple Chose USDT

This strategic pivot was a response to the summary judgment in the SEC lawsuit which found that institutional sales fell under the US security laws. Since the ruling, non-US entities have been the sole contracting parties for XRP sales contracts to ODL customers. The filing highlights that “the company’s remaining ODL business in the United States uses a non-XRP bridge currency.”

Monica Long, President of Ripple, elaborated in an internal email, details of which were shared by prominent XRP community member Crypto Eri (@sentosumosaba) on social media platform X. Long stated:

Immediately following the Order, we took steps to migrate each US-based ODL customer from using XRP as the bridge currency in ODL to using USDT (or the contract was terminated). We should continue to use USDT (or BTC or other vetted stablecoins) for US based flows unless otherwise approved by Legal.

This adjustment reflects the company’s effort to ensure its service offerings align with US legal standards while still supporting global operations largely unaffected by the SEC’s scrutiny. The email emphasizes the strategic role of the Singapore subsidiaries, which now handle most contractual relationships for selling XRP to new ODL customers, particularly those outside the US Long notes:

Ripple’s Singapore subsidiaries have been the primary contracting entity for Commitment to Sell XRP contracts to new ODL customers, who are predominantly foreign. And since the Order, non-US entities have exclusively been the contracting parties for XRP sales contracts to ODL customers.

The restructuring within Ripple’s business model underscores a significant geographical and operational pivot. Most of ODL customers are located in the Asia-Pacific region, leveraging the monetary corridors between non-US entities and countries. The licensing of Ripple Markets APAC Pte Ltd by the Monetary Authority of Singapore facilitated this, as Long further explained:

To service our ODL customers, we should continue to leverage our foreign subsidiaries who are licensed by local regulators to lawfully conduct such activity.

Moreover, the court filing revealed the company’s financial dependencies and operational strategies preceding the SEC lawsuit. Ripple’s accounting expert, Anthony Bracco, calculated that the company operated at a loss from April 1, 2014, through December 22, 2020, without the revenue from XRP sales. This detail highlights the financial impact of XRP sales on Ripple’s overall business stability during that period.

“Bracco calculated Ripple’s monetary operating costs and income taxes paid, which total [redacted]. Deducting those expenses from Ripple’s pre-Complaint revenue from Institutional Sales in that period, which totals [redacted], and further deducting income taxes, which total [redacted], Ripple had a loss of [redacted],” the filing states.

At press time, XRP traded at $0.549.