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Pro-XRP lawyer and crypto advocate John Deaton has filed an amicus brief supporting Coinbase’s motion to certify an interlocutory appeal in the exchange’s ongoing case with the US Securities and Exchange Commission (SEC). In this petition submitted to the US District Court for the Southern District of New York, Deaton also heavily criticized the SEC’s regulatory approach while emphasizing the need for legal clarity in the crypto space.

John Deaton Stands As Amicus Curiae For Coinbase Customers

On April 12, Coinbase submitted a motion seeking an interlocutory appeal in its legal battle with the SEC over charges of violations of US securities law. The largest American exchange approached the court seeking clarification on whether an investment contract can be established solely through transactions that involve no post-sale obligations.

Coinbase has deemed this issue to be a “controlling question of law” following the disparity in opinions between the exchange and the SEC. Furthermore, the defendants also believe the legal interpretation of an investment contract could have a significant impact on the outcome of their case with the SEC.

John Deaton, who is a prominent crypto supporter, has now submitted an amicus brief backing Coinbase’s request for this interlocutory appeal. Deaton, who is also running for the US Senate House against popular crypto critic Sen. Elizabeth Warren, has stated his latest petition represents the interest of 4,701 Coinbase customers.

The popular pro-XRP lawyer believes that customers/investors of Coinbase should be able to express their voice in this court case as they are likely to be an affected party of any eventual ruling. 

John Deaton said:

It is extremely important for end users of the technology to be represented and not allow a biased and politically motivated agency speak for them. But that doesn’t mean they want Coinbase to speak for them either. 

The SEC has unlimited resources, paid for by the taxpayer, and Coinbase is a multibillion dollar company with the best lawyers money can buy. The consumers deserve an advocate and a voice as well.

SEC Regulatory Approach Is Inconsistent, Deaton Says

In his amicus brief submitted in SEC v. Coinbase, John Deaton has also laid into the Commission’s enforcement actions in the crypto space highlighting a concerning level of inconsistency. In particular, he heavily criticizes the argument of only tokens with an ecosystem being classified as a security.

He said: 

Bitcoin is certainly distinguishable from other cryptocurrencies but claiming it’s not a security unlike other tokens because it doesn’t have an ecosystem, is just plain dumb

The US Senatorial candidate also reiterated the need for clear regulations for the US crypto space, stating the current hostile and inconsistent approach by the SEC is harmful to the growth of the nascent industry.

Crypto total market cap valued at $2.265 trillion on the daily chart | Source: TOTAL chart on Tradingview.com

The ongoing saga between the Taiwanese authorities and former executives from crypto exchange ACE continues with a new round of charges pressed against its founder, David Pan, and another 31 individuals linked to the case.

The exchange and its former directors have been under investigation over alleged fraud and money laundering since January 2024. Authorities previously conducted massive raids on ACE’s headquarters and other related addresses and apprehended several individuals.

Crypto Tokens Scheme Sees 32 People Indicted

Local news outlet Taipei Times informed of a recent development in the ongoing investigation of former ACE exchange executives. On Friday, the Taipei District Prosecutors’ Office indicted 32 people related to the ACE case.

Among the accused, Pan, his business partner Lin Keng-hong, and attorney Wang Chen-huan, who served as chairman of the crypto exchange, became the primary suspects.

The prosecutors discovered that, since 2019, the suspects allegedly advised investors to purchase several tokens. The endorsement included NFTC tokens, BitNature (BNAT), and ACE’s MoChange (MOCT).

Pan and Lin promoted the tokens during talks and promised to make ACE exchange “Asia’s most complete blockchain ecosystem for cryptocurrency trading.” Moreover, the defendants wrote whitepapers and other materials to increase legitimacy.

The prosecutor alleged that during the advertisement, the suspects manipulated the tokens’ prices on the exchange to attract new investors.

When the tokens significantly lost value, investors tried to convert their holdings to New Taiwan dollars. After being unable to recover their money, the defrauded investors alerted authorities about the alleged scam.

The investigation revealed that this scheme obtained over NT$2.2 billion, worth around $67.48 million, through the sale of tokens and other blockchain products.

Pan, alongside others involved, hid the money in several locations and even bought real estate to hide the funds. Additionally, NT$43 million, worth around $1.3 million, was transferred to Wang, who then reinjected half of it to the exchange to boost the token’s prices.

Prosecutors Request Over 20 Years Prison Sentence

The investigation revealed that approximately 1,200 people were defrauded through the scam, with an estimated loss of NT$800 million, around $24.56 million. Based on the magnitude of the losses, the prosecutors recommended sentences of at least 20 years for the primary suspects, including Pan and Lin.

Moreover, they suggested a sentence of at least 12 years for Wang, who held a high position in a law firm and seemingly played a significant role in assisting in the scheme.

It’s worth noting that these charges were not the first to be pressed against ACE’s founder since the investigation started.

At the beginning of April, news broke of the indictment of David Pan and six other people for money laundering and fraud. As a result of the investigation, the prosecutors unveiled a “well-organized scheme” run by Pan and Lin.

The scheme involved using the “Alfredo Wallet App,” created by ACE’s investee company Fu Hai Digital Innovation, to engage in “offline and over-the-counter transactions of virtual currencies.”

According to the report, Pan and the other six suspects affected over 162 victims, losing NT$340 million, worth around $10.7 million. The seven defendants were consequently accused of violating the Organized Crime Prevention Ordinance, aggravated fraud, and money laundering.

ACE has previously distanced itself from the suspects, reassuring its users that Pan and the other defendants are no longer involved with the crypto exchange. Additionally, It has stated that they have been collaborating with authorities and that all operating conditions remained normal.

In a joint effort to combat the illicit trafficking of child sexual abuse material (CSAM), US senators Elizabeth Warren and Bill Cassidy have written a letter to the US Department of Justice (DOJ) and Department of Homeland Security (DHS) expressing concern about the alleged use of crypto to facilitate these activities. 

Alleged Link Between Crypto And Child Sexual Abuse

In the letter, the senators highlight the “pseudonymity” provided by cryptocurrencies, which they say has enabled the rapid movement of payments for CSAM into the crypto world.

It was also stated that both Warren and Cassidy are committed to ensuring that Congress and the Administration have the tools necessary to end CSAM and hold those responsible for its distribution accountable.

The legislators’ concerns are based on a January 2024 report from blockchain analytics firm Chainalysis, which identifies cryptocurrency-based sales of CSAM as “a growing problem.” 

The report reveals that virtual currency has become the preferred payment method for buyers and sellers of commercial child sexual abuse content. Additionally, a Financial Trend Analysis by the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) indicates an increasing trend of perpetrators using convertible virtual currencies to evade detection.

The senators cite troubling findings from FinCEN, which discovered thousands of suspicious activity reports related to online child sexual exploitation and human trafficking offenses involving Bitcoin. 

These reports allegedly identified over 1,800 unique Bitcoin wallet addresses associated with suspected offenses, with CSAM being specifically mentioned in 95% of the cases.

Senators Demand Accountability

The senators further pointed out that Homeland Security investigators played a critical role in the indictment of a South Korean national and numerous users in the United States for operating a dark web pornography site funded by Bitcoin.

However, legislators note that the use of cryptocurrency in CSAM’s illicit trade appears to be increasing.

The Chainalysis review further reveals that while the size of the crypto-based CSAM market has decreased, sellers have become more “sophisticated and resilient” to detection and takedowns. According to the report, Bitcoin remains the most widely used cryptocurrency for purchasing CSAM.

To address these challenges, Senators Warren and Cassidy asked the DOJ and DHS a series of questions, seeking clarification on their current assessment of the alleged cryptocurrency’s role in facilitating CSAM, the sophistication of CSAM sellers, and the “unique challenges” posed by the use of crypto as payment in these crimes. 

They also inquire about the agencies’ steps to combat CSAM sellers’ use of cryptocurrency, privacy coins, and obscurification methods.

Senator Warren’s previous efforts include introducing the Digital Asset Anti-Money Laundering Act, a bipartisan bill to counter illegal activities and misuse of digital currencies. 

The bill seeks to bring the digital asset ecosystem into “greater compliance” with anti-money laundering and counter-terrorism financing frameworks.

Featured image from Shutterstock, chart from TradingView.com

New data has revealed that Bitcoin (BTC) mining might no longer be as lucrative as it used to be. Bloomberg has reported that the profitability of Bitcoin mining is nearing a record low, not seen since the days following the collapse of FTX, posing significant challenges for those securing the network.

The data indicates that the “hashprice,” a metric that gauges the revenue a miner earns daily for each petahash of computing power, has dipped alarmingly close to its all-time low.

This decrease is notable, considering it came after the recent Bitcoin halving event on April 20, which traditionally boosted the cryptocurrency’s value but, this time, failed to counteract the bearish pressures from global economic uncertainties.

Notably, the term “hashprice,” coined by Luxor Technologies, reflects the ‘harsh’ realities facing miners post-Halving. The event, which occurs every four years, reduces the block reward for miners by half, intending to maintain a deflationary schedule for Bitcoin’s issuance.

Understanding Bitcoin Hashprice Dynamics

On April 20, immediately following the halving, the BItocin hash price spiked to $139, but this was short-lived. The surge was primarily due to increased transaction fees related to the Rune protocol activities on Bitcoin’s blockchain.

However, as these fees normalized and mining difficulty increased, hashprice values plummeted to $57, perilously close to the November 2022 low of $55. This value represents miners’ stark decline in profitability, forcing them to depend more on transaction fees and the potential appreciation in Bitcoin’s price.

Reducing mining profitability also signals tough times ahead, particularly for smaller mining operations.

According to Bloomberg, larger mining companies like Marathon Digital Holdings Inc. and Riot Platforms Inc. have proactively invested in extensive mining infrastructure and advanced equipment to withstand the profitability crunch.

Conversely, smaller entities might struggle to remain viable in an industry that is becoming increasingly competitive and capital-intensive.

Marathon Digital’s Strategic Expansion

In response to the challenging environment, Marathon Digital has raised its hash rate growth target for 2024, aiming to adapt to the new mining reward baseline of 3.125 BTC post-halving.

The company started the year with a hash rate capacity of 24.7 exahash per second and planned a 46% increase. Following strategic acquisitions and increased equipment orders, Marathon anticipates reaching a hash rate of 50 EH/s by year’s end.

Fred Thiel, Marathon’s Chairman and CEO, expressed confidence in meeting these growth targets without additional capital infusion, citing the firm’s solid liquidity position. Thiel noted:

Given the amount of capacity we have available following our recent acquisitions and the amount of hash rate we have access to through current machine orders and options, we now believe it is possible for us to double the scale of Marathon’s mining operations in 2024 and achieve 50 exahash by the end of the year.

The company’s advancements in mining technology and efficiency also aim to reach an operational efficiency of 21 joules per terahash, further solidifying its foothold as a leader in the sector.

Featured image from Unsplash, Chart from TradingView

Taking to X on April 26, one analyst notes that there is a high probability of Ethereum spiking in the sessions ahead because of thinning sell-side liquidity across major centralized exchanges like Binance and Coinbase. 

Thin Sell-Side, Big Potential Move For ETH

Thinning sell-side liquidity, as seen on order books across CEXes, means that few sellers are willing to liquidate. With few sellers on the market, a small upsurge in demand could theoretically see prices skyrocket. 

Even so, market makers could fill this imbalance by considering how the market works. At the same time, prices are not guaranteed to rally even if they remain as they are. 

Unlike new meme coins, for instance, Ethereum is extremely liquid; it is the second largest coin by market cap, only trailing Bitcoin. That means billions will be needed to push prices above the immediate resistance levels at $3,300 and $3,700, as clearly shown in the daily chart.

Ethereum has been under pressure for the better part of April following a drop from its all-time high of $4,090. Looking at the development in the daily chart, the coin is down 23% from all-time highs, finding strong rejection from the middle BB–or the 20-day moving average.

Analysts expect buyers to take over and reverse mid-April losses if a comprehensive breakout above $3,300 is marked by expanding volume. If not, ETH risks falling below $2,800, aligning with the April 12 and 13 sell-off. 

Spot Ethereum ETF Launch In Hong Kong, Adoption Fuel Optimism

However, traders are generally bullish, anticipating a price rebound in the months ahead. Several factors could propel ETH prices upwards. A major catalyst is the highly anticipated launch of spot Ethereum exchange-traded funds (ETFs) in Hong Kong. Like the impact of spot Bitcoin ETFs on BTC prices, this product for ETH may prop up the coin, allowing traditional investors to gain exposure to the second world’s most valuable coin. 

In the United States, the largest obstacle preventing the Securities and Exchange Commission (SEC) from approving a similar product is the uncertainty of ETH’s classification. On April 25, ConsenSys sued the regulator, pressing the regulator to classify the coin as a commodity.

Beyond the launch of this product by the end of the month, Ethereum’s core strengths remain. The ongoing adoption of Ethereum and Layer 2 scaling solutions continues. As more protocols choose to deploy on the smart contracts platform, it fosters optimism for Ethereum’s long-term viability and growth.

Data suggests the hype around the new Bitcoin Runes has severely dropped, something that’s not a good sign for miner revenues.

Bitcoin Halving Effect Settles In On Miner Revenue As Runes Interest Drops

A few days back, the much-anticipated Bitcoin Halving went through. Halvings are periodic events coded into the blockchain in which the BTC block rewards are cut exactly in half. They occur every four years, and the newest one was the fourth such event.

The block rewards, which the Halvings drastically affect, are one of the two main ways miners make income. Miners receive these rewards as compensation for solving blocks, which have historically also been their dominant revenue source.

As such, the Halvings can be troublesome for this group’s financials, as their revenue undergoes a significant drop following them. However, shortly after the latest Halving, miner revenues spiked to a record $100 million.

The block rewards were cut in half with the event, but at the same time, their second income stream, the transaction fees, saw an explosion, helping total revenue go up rather than down as may normally be expected.

This spike in fees is due to another major development on the network on Halving Day: the release of the Runes protocol. This protocol provides a way to mint fungible tokens on the Bitcoin blockchain.

Fungible tokens are indistinguishable from each other, just like how individual BTC satoshis (sats) are also generally exactly the same. On the other hand, unique tokens are known as non-fungible tokens (NFTs).

The Runes instantly found popularity among users, and network usage sharply increased. The transaction fee is usually tied to network activity, so it also went up when this new protocol dropped.

This is naturally because in times of high traffic, transfers can get stuck in waiting due to the network’s limited capacity to handle them, so users have no choice but to pay a high fee if they want their moves through quicker.

Data shared by the on-chain analytics firm CryptoQuant shows that the total transaction fees exploded due to the high interest the Runes received upon launch.

The chart also shows that the indicator has cooled off since this extraordinary peak. Thus, while the Runes were quite popular at release, interest in them has already waned.

As a result, Bitcoin mining revenues, which had been extremely high post-Halving, have also fallen.

Bitcoin miner revenue is now down to $50 million, half of the $100 million peak from earlier. Therefore, while the Runes had temporarily placed miners in a comfortable position, that line of support is now gone, and these chain validators are starting to come under pressure.

BTC Price

At the time of writing, Bitcoin is trading at around $63,900, down over 1% in the past seven days.

Global digital currency exchange, Changelly has forecasted a bullish outlook for doggy-themed meme coin, Shiba Inu, predicting a surge to new all-time highs followed by subsequent bearish movements. 

SHIB Expected To Reach New ATH In May

On Wednesday, April 24, Changelly shared a price forecast for Shiba Inu, predicting the future value of the cryptocurrency from May 2024 to the end of 2024. Following its rise to record highs of about $0.00004, Shiba Inu plummeted significantly, dropping by approximately 14.06%, according to CoinMarketCap.

Analysts from Changelly have predicted that a potential price surge to new all-time highs is likely to occur in Shiba Inu next month. They expect the value of the cryptocurrency to steadily increase to an average price of $0.000312 in April before witnessing an exponential surge to a maximum value of $0.000087 by May. 

Changelly has projected that the average and minimum price for Shiba Inu in May will be around $0.000034 and $0.0000061, respectively. According to the analysts, Shiba Inu has been displaying strong price fundamentals in the last few days, surging upwards by about 22.22%. 

The cryptocurrency had witnessed a sharp drop earlier in March, triggered by the diminishing interest and demand for meme coins within the crypto space. Changelly has predicted that Shiba Inu could rise by 11.97% by April 26, 2024.

At the time of writing, the cryptocurrency is trading at $0.000025, reflecting an increase of 1.35% in the past 24 hours and 12.58% over the past seven days, according to CoinMarketCap. Changelly has boldly suggested that if Shiba Inu can succeed in breaking bearish trends to witness a price surge to predicted levels, it could become a “solid asset” within the dynamic cryptocurrency space. 

Price Set To Go Downhill After Bullish Surge

Following its bullish price forecast of Shiba Inu in May, Changelly has projected that the cryptocurrency may enter bearish territory due to price fluctuations. Analysts from the crypto exchange anticipate a downtrend in June of about $0.00005 on average, with a minimum and maximum value of $0.000024 and $0.000075, respectively. 

By July 2024, Shiba Inu is expected to decline further, trading at an average price of $0.000025. Towards the end of the year, from August to October, the price of Shiba Inu is projected to surge, trading around a maximum peak value of above $0.00008. 

Despite the bullish outlook during this period, Changelly has also disclosed that the cryptocurrency may witness a crippling slump in December. The price of Shiba Inu could record new lows, dropping to $0.000014 on average, with a minimum and maximum trading value of $0.000014 and $0.000013, respectively.

The US Securities and Exchange Commission (SEC) has taken legal action against Geosyn Mining, LLC, a Texas-based crypto mining and hosting company, and its co-founders, Caleb Ward and Jeremy McNutt, over allegations of engaging in unregistered and fraudulent activities.

Geosyn’s Alleged Fraud Scheme

According to the SEC, Geosyn, Ward, the company’s CEO, and McNutt, the firm’s then-COO, raised approximately $5.6 million from more than 60 investors between November 2021 and December 2022. 

According to the complaint, Geosyn told investors it would purchase, operate, and distribute crypto assets mined by mining machines, such as Bitcoin (BTC), for an undisclosed fee. 

However, the SEC alleges that the defendants made false claims, failed to disclose material information to investors, and failed to provide the services promised in their offering documents.

The complaint also notes that Geosyn falsely claimed to have favorable contracts with electricity providers, supposedly ensuring the mining machines’ profitable operation. 

Furthermore, the crypto mining company allegedly failed to disclose to new investors that they had not purchased mining machines for some previous investors, and they did not disclose that Geosyn was not fulfilling its stated services, including personalized mining strategies and 24/7 onsite monitoring. 

The SEC also alleges that Ward and McNutt misappropriated approximately $1.2 million for personal use and distributed around $354,500 to investors as purported profit distributions despite Geosyn’s “lack of profitability.”

The SEC has filed the complaint in the US District Court for the Northern District of Texas, charging the defendants with violations of antifraud and securities-registration provisions of federal securities laws. 

Ultimately, the SEC seeks permanent injunctions against all defendants, officer-and-director bars, disgorgement with prejudgment interest, and civil penalties, specifically against Ward and McNutt.

Crypto Users Warned By The FBI

The US Federal Bureau of Investigation (FBI) has issued a warning to American citizens about using unregistered cryptocurrency money-transmitting services. 

In a statement released by the FBI’s Internet Crime Complaint Center (IC3) on Thursday, individuals were cautioned against engaging with services that do not comply with federal law and fail to adhere to anti-money laundering (AML) regulations.

The FBI emphasized the importance of using cryptocurrency money-transmitting services registered as Money Services Businesses (MSBs) and following the necessary protocols to combat alleged illicit financial activities conducted by these companies. 

According to the Bureau’s statement, individuals who use unlicensed crypto money transfer services may experience “disruptions” to their finances during law enforcement actions, particularly if their crypto holdings are commingled with funds acquired through illegal means. The statement concluded with the following warning:

Cryptocurrency money transmitting services that purposely break the law or knowingly facilitate illegal transactions will be investigated by law enforcement. Using a service that does not comply with its legal obligations may put you at risk of losing access to funds after law enforcement operations target those businesses.

Featured image from Shutterstock, chart from TradingView.com 

The direction of where the Bitcoin price could be headed next has been a bone of contention among industry players. Numerous forecasts have been made for the pioneer cryptocurrency, but one crypto analyst maintains that Bitcoin continues to be bullish even through its current choppy movements.

Crypto Analyst Predicts Further Upside For Bitcoin

Crypto analyst Tony “The Bull” Severino took to X (formerly) Twitter to share their analysis for where they believe the price is headed next. The analyst who has been known to be bullish on Bitcoin since the FTX crash rocked the market has maintained his bullishness, believing that Bitcoin can move up from here.

In the chart shared with the post, the analyst outlines different points of the Elliot Wave Theory that could be playing out in the market right now. He explains that the current price movement may be playing out to a valid wave pattern. But nonetheless, shows what could happen if this does happen to be the case.

Using this wave theory, it would seem that the Bitcoin price is still quite bearish in the short term. With the third wave already completed, it puts the market in a position to play out the fourth wave. Usually, this fourth wave results in a price crash, and in this case, such a crash could send the price below $40,000.

I don’t think this is a valid #Bitcoin Elliott Wave count/pattern but this would really shake up bulls, yet still ultimately be very bullish. This would even chop me up pic.twitter.com/QIErb6wP2m

— Tony “The Bull” Severino, CMT (@tonythebullBTC) April 25, 2024

The crypto analyst warns that such a crash would be brutal, saying, “This would really shake up bulls, yet still ultimately be very bullish.” From the current price level, a crash below $40,000 would mean that the Bitcoin price would lose around 40% of its value.

BTC Price Still Set To Outperform

Despite the bearish expectations for the short term, Tony The Bull maintains his bullish outlook for the long term. Following the fourth wave in Elliot’s Wave Theory is the 5th and final wave, which is arguably the most bullish of all the waves

Related Reading: Robinhood Lists Shiba Inu For New York Users, Moves 3 Trillion SHIB

If the Bitcoin price plays out the way the analyst expects, then the bounce back could put the digital asset to six digits. However, it doesn’t stop there, as the analyst expects the price to cross $300,000, reaching a peak of $357,183, as outlined in the chart.

As for the timeline for this, the analyst shows an end time somewhere between 2025 and 2026. This gives it an around two-year window to play out, if it does turn out to be a “valid Elliot Wave count/pattern.”

Yao Qian, a prominent ‘pro-blockchain official’ in China, is under investigation by Chinese authorities for undisclosed “violations of law.”

The Background Of Blockchain Advocacy And The Current Crackdown

Qian, known for his pivotal role in developing China’s Central Bank Digital Currency (CBDC), has been a leading voice in the country’s blockchain initiative.

Qian’s efforts were instrumental in the conceptualization and rollout of the digital yuan, positioning China at the forefront of digital currency technology on a global stage.

The investigation, led by the Discipline Inspection and Supervision Team of the Central Commission for Discipline Inspection and the National Supervision Commission at the China Securities Regulatory Commission, has stirred concerns within the blockchain community.

Yao Qian’s contributions to the Chinese financial technology landscape have been noteworthy, serving in various high-profile government roles, including Director of the Science and Technology Supervision Department and the Information Center of the China Securities Regulatory Commission.

Yao Qian has also been a ‘staunch’ advocate for blockchain and digital currencies, arguing for issuing a state-owned digital currency as early as 2017 to enhance the market position of China’s local currency.

Wu Blockchain said, “He was the creator of China’s CBDC and served as the director of the central bank’s digital currency research institute.” However, Qian is now scrutinized by the same government, which is pushing for technological advancements.

The specifics of the allegations against Qian remain “vague,” with authorities citing “serious violations of discipline and law” without providing further details. The report particularly noted:

Yao Qian, Director of the Science and Technology Supervision Department and Director of the Information Center of the China Securities Regulatory Commission, is suspected of serious violations of discipline and law and is currently under investigation by the Central Committee.

Broader Implications For Blockchain And Crypto In China

Despite the ongoing investigation into one of its key proponents, the blockchain sector in China continues to see interest and development, particularly in areas not directly related to cryptocurrencies.

For instance, at a recent annual gathering of China’s political and industry leaders in Beijing, proposals were made to accelerate the development of blockchain technology to enhance government services, supply chains, and trade.

These developments indicate that while the country may be skeptical about cryptocurrencies, it recognizes the broader applications of blockchain technology.

Furthermore, China’s financial giants, like Harvest Fund and Southern Fund, are venturing into the international cryptocurrency space with applications to launch a new spot Bitcoin ETF through their Hong Kong subsidiaries.

This move is indicative of a nuanced approach to blockchain and digital assets, suggesting a potential softening of stance or at least an acknowledgment of the financial opportunities these technologies present on a global scale.

Featured image from Unsplash, Chart from TradingView

Asset management firm Pantera Capital has emerged as one of the successful bidders in an auction of discounted Solana (SOL) tokens conducted by the liquidators overseeing the bankruptcy of the former FTX cryptocurrency exchange.

The sale, which included approximately 2,000 SOL tokens, signifies Pantera Capital’s continued interest in expanding its Solana portfolio.

FTX Sells Additional Locked Solana Tokens In Private Auction

The auction, whose details have not been publicly disclosed, was confirmed to Bloomberg by a source familiar with the matter who requested anonymity. Neither Pantera Capital nor representatives of the FTX estate provided have commented on the recent sale. 

This recent acquisition follows a deal earlier this month in which the FTX estate sold a substantial portion of its $2.6 billion Solana token holdings at a discounted rate. 

According to knowledgeable individuals, Pantera Capital and Galaxy Digital were among the successful participants in the auction transaction.

The 41 million SOL tokens sold by the FTX estate are currently locked under a pre-agreed vesting period, making them unavailable for immediate trading in the market. These tokens will gradually become available for sale over four years.

Sources familiar with the sale indicate that the tokens were sold at a higher price than the previous auction, which fetched approximately $60 per token. 

Pantera Capital Aims To Launch Pantera Fund V 

According to Bloomberg, Pantera Capital is actively pursuing the launch of a new fund to raise more than $1 billion. The fund, dubbed “Pantera Fund V,” aims to provide investors with increased investment options across the spectrum of blockchain assets, including startup equity, early-stage tokens, and liquid tokens.

Should the fundraising efforts prove successful, the Pantera Fund V would be the largest fund raised since the tumultuous period marked by bankruptcies in the blockchain sector in 2022. 

The new fund is also designed with a minimum investment threshold of $1 million for qualified investors. The first close is slated for April 1, 2025. As Bloomberg notes, limited partners are expected to contribute at least $25 million. 

Insiders familiar with the matter, who preferred to remain anonymous, have indicated that the Pantera Fund V is anticipated to reach a similar size as its predecessor, which amassed approximately $1.25 billion in capital two years ago. 

Solana’s native token, SOL, has shown minimal fluctuations compared to Thursday’s trading and is currently valued at $144 per token at the time of writing. SOL has witnessed a significant surge of over 500% year-to-date, contributing to its market capitalization of $64 billion. 

According to CoinGecko data, this performance has propelled Solana to fifth place among the top 10 largest cryptocurrencies in the market.

Featured image from Shutterstock, chart from TradingView.com

Crypto analyst Crypto Noan has revealed a profit-taking strategy that crypto investors can adopt as they invest in Shiba Inu (SHIB), the second-largest meme coin by market cap. This strategy would be most beneficial to those who need guidance in securing profits as the meme coin continues to make significant price gains. 

Price Levels To Secure Profits From Shiba Inu

In a chart shared on his X (formerly Twitter) platform, Crypto Noan highlighted four price targets from which Shiba Inu investors should look to take profits. The first take profit zone he highlighted was at $0.000028181. The second take profit zone was at $0.000032816; this serves as a moderate target for those who may not be satisfied with the returns at the initial take profit target. 

Related Reading: Investment Giant Morgan Stanley Considers Providing Spot Bitcoin ETF Options For Clients

Crypto Noan further highlighted $0.000039035 and $0.000043609 as the third and fourth take-profit zones, respectively. These price levels are no doubt reserved for those with crypto investors with great patience and a large risk appetite, considering that Shiba Inu will have to make a price gain of over 51% and 69% to attain those targets. 

Interestingly, Shiba Inu already hit the first and second take-profit targets at some point this year, considering that the crypto token rose to as high as $0.00003592 on March 5, according to data from CoinMarketCap. This also provides some relief to those looking to secure profits with this strategy, as there is a high probability that the meme coin could rise to such levels again once it continues its uptrend. 

Meanwhile, although Shiba Inu hasn’t come close to the third and fourth take-profit targets, crypto investors can still expect it to happen at some point based on other crypto analysts’ price predictions. One of these analysts is Xanrox, who predicted that Shiba Inu will see a 300% price gain before the year ends. Such a price move will ultimately take Shiba Inu even above those take-profit zones. 

Proper Risk Management For Shiba Inu Investors

To ensure proper risk management, Crypto Noan provided a price level that Shiba Inu investors should consider to exit their positions in case of significant price declines. The analyst highlighted $0.000022449 as the level at which investors should offload their Shiba Inu holdings and put the meme coin on their watch list in case its price sees a correction. 

The crypto analyst noted on the chart that the $0.000027036 price level is a good buy zone for those yet to invest in the meme coin. For anyone looking for a lower entry point, Xanrox previously remarked that 0.00002249 looks like a great level to invest in the crypto token.

At the time of writing, Shiba Inu is trading at around $0.0000257, up over 4% in the last 24 hours according to data from CoinMarketCap. 

In the latest updates on the court case between Ripple and the United States Securities and Exchange Commission (SEC), the Magistrate Judge Sarah Netburn, has ordered strict deadlines for the regulatory agency to respond to the crypto firm’s motion. 

Judge Issues New Scheduling Order

On Thursday, April 25, the magistrate Judge Netburn issued a new scheduling order regarding the years-long legal battle between Ripple and the US SEC. 

Former federal prosecutor and defense lawyer, James K. Filan shared details of the scheduling order in an X (formerly Twitter) post. The order states that the SEC has been granted a deadline of Monday, April 29, 2024, to file a rebuttal to Ripple’s Motion to Strike. Following this, Ripple is mandated to file a response within three business days. 

This order is a critical step in Ripple’s case with the SEC, as it will potentially address the SEC’s recent submission of its motion to strengthen the remedies and entry of final judgment. Previously, on April 22, the company filed a motion to strike the SEC’s newly submitted expert materials, arguing that the regulator had introduced the filings beyond the allocated time frame, thereby violating discovery rules.

The digital asset payment company had rejected the $2 billion penalty levied by the regulator earlier in April, contending that the SEC’s demands were excessive and petitioning the court to impose a civil penalty not exceeding $10 million. Ripple has remained defiant in its defense that XRP was not intended as an investment vehicle, as such, should not be classified as a security. 

More Updates On The Ripple And SEC Case

The Ripple and SEC case continues to be a major legal battle that could have significant implications within the broader cryptocurrency space and the financial industry. The court case keeps evolving, with new updates and changes occurring regularly. 

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Recently, Magistrate Judge Sarah was nominated as the District Judge in the Southern District of New York. As a result, she is preceding the Ripple and SEC court case, however has not issued a final ruling on Ripple’s penalty despite the SEC’s exorbitant demands. 

Despite having a pro-crypto stance, Magistrate Judge Netburn is determined to give a fair ruling, considering the cases of both parties and deciding on the penalties or conclusion of the case. Overall, the broader crypto industry is still watching as the legal battle unfolds, with the majority of the XRP community supporting Ripple’s stance and criticizing the SEC’s enforcement actions towards the cryptocurrency space.

Institutional investors in Canada are showing a strong appetite for cryptocurrencies, with a new survey revealing a significant surge in adoption rates. The report, conducted by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA), paints a picture of a booming crypto market fueled by investor confidence and a supportive regulatory environment.

Crypto Goes Mainstream In Canada

In 2023, a staggering 39% of surveyed institutional investors reported exposure to crypto assets, a sharp increase from 31% just two years prior. This newfound interest translates into action, with a significant portion of these investors allocating a substantial share of their portfolios to crypto.

The survey found that one-third of participating institutions had placed at least 10% of their assets in crypto, demonstrating a growing belief in the long-term potential of this asset class.

This trend is being met with a corresponding expansion in crypto-related services offered by financial institutions. The survey revealed that half of the participating financial service organizations now offer at least one type of crypto service, up from 41% in 2021.

These services encompass a wide range, including trading platforms, custody solutions for safekeeping crypto assets, and quantitative trading strategies specifically designed for the crypto market.

Crypto Diversification: Beyond Borders

The survey also highlights a growing trend of diversification within the crypto investment landscape. Investors are no longer putting all their eggs in the Bitcoin basket. While direct ownership of crypto assets remains popular, with 75% of crypto-exposed institutions holding them directly, a growing number are seeking exposure through alternative avenues.

These include regulated investment products like exchange-traded funds (ETFs) and derivatives, which allow investors to participate in the market without directly owning the underlying crypto assets. Additionally, some institutions are gaining exposure through venture capital or hedge funds specializing in the digital asset space.

Experts believe several factors are driving this surge in institutional crypto adoption in Canada. The crypto market rally of 2023, potentially fueled by economic factors like inflation, likely made crypto assets more attractive as alternative investment options and potential stores of value.

Furthermore, Canada’s progressive stance on crypto regulation is seen as a major confidence booster for institutional investors. The recent regulatory approvals for Bitcoin and Ethereum ETFs, alongside other supportive measures, have helped to legitimize the crypto market and mitigate some of the risk concerns previously held by institutional investors.

The Future Of Crypto In Canada

Looking ahead, industry experts predict continued growth in crypto adoption by Canadian institutions. However, they emphasize the importance of education and careful planning for investors entering this new and volatile market.

Canada’s crypto market appears poised for continued growth, fueled by a combination of strong investor interest, expanding service offerings, and a supportive regulatory environment.

Featured image from Pixabay, chart from TradingView

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.

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

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.

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.