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The Worldcoin Foundation has released a new open-source system to safeguard sensitive information more effectively.

This system, now accessible in a GitHub repository, allows any organization to adopt these advanced data protection measures.

The foundation highlighted that this initiative aims to establish a “new benchmark” in data security, particularly for biometric data.

The transition to this innovative system has led the Worldcoin Foundation to delete the iris codes previously collected during user registration.

Notably, participants in the Worldcoin project initially had their eyeballs scanned by specialized Orb devices to verify their identity and receive WLD tokens, the project’s cryptocurrency. This process was part of the foundation’s effort to create a unique digital identification for each user.

Secure Multi-Party Computation And User Privacy

The foundation’s new system is based on secure multi-party computation (SMPC), a subset of cryptography that enhances data protection by distributing a single secret across multiple parties.

This method increases the security of stored information by ensuring that the complete data set is never held in a single location, thereby reducing the risk of data breaches.

The Worldcoin Foundation, in collaboration with technologists from TACEO and Tools for Humanity, has developed a new implementation of SMPC that addresses previous limitations related to scale and cost.

This development is particularly pertinent as the requirement for individuals to provide biometric data to various organizations becomes more common. The Worldcoin Foundation stressed the growing need to protect users’ data securely against potential threats and misuse.

Meanwhile, prior to this development, Worldcoin was scrutinized by regulatory bodies across several nations, particularly due to concerns over its data collection practices.

For instance, Hong Kong’s Office of the Privacy Commissioner for Personal Data took investigative actions against the project earlier in the year, citing privacy concerns. This backdrop makes the foundation’s move to delete iris codes and enhance privacy measures even more noteworthy.

Ethereum co-founder Vitalik Buterin has previously praised Worldcoin’s efforts to improve privacy. He lauded the project’s “data-minimal” approach and its ability to surpass traditional, centralized authentication solutions in safeguarding user privacy.

Looking Ahead: Worldcoin’s Strategic Expansion

Worldcoin is also preparing for the launch of World Chain, an open-source Ethereum layer-2 blockchain, set to debut in mid-2024. This platform aims to “revolutionize” human authentication by integrating with the Worldcoin protocol and providing a dedicated infrastructure to transition from existing networks.

The protocol has demonstrated significant adoption, with over 5 million people from 160 countries registered and 49 million transactions through verified wallets.

The upcoming World Chain seeks to enhance scalability, support a growing user base, and foster a stronger ecosystem for the project.

This effort includes addressing the challenges posed by automated transactions, which constitute approximately 80% of all blockchain activity and often lead to network congestion.

According to the report, the Worldcoin team is also trying to safely increase the L2 block gas limit, supported by research into performance scenarios to ensure a secure and inclusive ecosystem.

Featured image from The Block, Chart from TradingView

Customers of the defunct FTX crypto exchange find themselves at the center of a complex bankruptcy case with potentially promising outcomes. 

While the process has been far from smooth, the recent surge in the crypto market has bolstered the value of FTX’s assets, resulting in the possibility of customers receiving payouts that exceed their initial investments. Still, there’s a catch for customers who have ignited discontent despite the exchange’s announcement of a full refund.

FTX Customers On The Brink Of Recovery

Following FTX’s downfall, affected customers, such as Arush Sehgal and Acaena Amoros Romero, saw their life savings vanish into the void. However, the subsequent rally in the crypto market, with FTX’s asset liquidation efforts and the discovery of scattered cash and crypto holdings, has transformed the bleak prospects into a potential success story. 

FTX’s newly appointed managers, led by Jonh Ray III, have found assets, including selling stakes in companies such as artificial intelligence (AI) startup Anthropic, to make up for losses caused by the mismanagement of FTX co-founder Sam Bankman-Fried’s hedge fund.

As previously reported, FTX expects to amass a substantial sum, potentially reaching $16.3 billion, after selling off assets. This exceeds the approximately $11 billion owed to customers and other private creditors, leaving most of them in line to receive 118% of their original FTX account value. 

However, government regulators are expected to receive only a fraction of their claims, while shareholders are likely to face complete wipeout, as is standard in bankruptcy proceedings.

The development has drawn attention as payouts surpass outcomes of other bankruptcies within the crypto space and beyond. Typically, creditors receive only a fraction of what they are owed, but FTX’s case is shaping to be an exception. The anticipated payouts, which constitute an unusually swift turnaround, are expected to commence later this year.

Frustrated Customers Rally Against Bankruptcy Plan

Yet, despite the positive outlook, some FTX customers remain dissatisfied with the proposed plan. According to Bloomberg, over 80 individuals have voiced their concerns in letters to the bankruptcy court, criticizing decisions made by FTX CEO John Ray, including the valuation of their accounts. 

Former creditor committee member Arush Sehgal has received support from approximately 1,500 individuals who share similar views, leading to the establishment of FTXvote—an initiative aimed at rallying opposition to the plan.

“A hundred cents on the dollar doesn’t mean much to me,” said Sehgal, a vocal critic of how restructuring advisors have handled the case. Sehgal and Romero say they stand to recoup about $1 million, a quarter of what their account would be worth. 

Nonetheless, the case’s ultimate resolution will depend on the upcoming vote by FTX account holders and US bankruptcy judge John Dorsey’s consideration of creditor comments.

Notwithstanding the discontent among certain customers, the bankruptcy process signifies a significant milestone in terms of the potential recovery for customers, even if not all expectations are met.

Veno Bojanovsky, an affected customer, expressed skepticism about the outcome but chose to retain his claim rather than sell it off.

The exchange’s native token, FTT, has seen a 28% uptrend in the past two weeks, resulting in a current trading price of $1.73. 

Featured image from Shutterstock, chart from TradingView.com

The Solana-based Cypher Protocol is again in the negative spotlight after one of its core developers admitted to stealing and losing over $300,000 of users’ funds. Another of the project’s developers first unveiled the news and also alerted law enforcement.

Solana-Based Protocol Faces Inside Job

On Monday, Cobra, one of Cypher Protocol’s developers, revealed that a core contributor had stolen funds from the Cypher Redemption Package Contract. The developer, Hoak, had withdrawn funds from the contract for several months unnoticed.

The heist was only caught after a user in the project’s Discord pinged the team about having issues withdrawing funds. Per the post, Hoak claimed he would handle the issue. However, the user contacted the team after the developer’s deadline, stating that the issue persisted.

Consequently, the team investigated the issue and found that, in the last six months, Hoak had taken over $300,000 from the contract via 36 transactions.

During this time, the developer used the deployer wallet to withdraw assets such as Ethereum (ETH), Bonk (BONK), Orca (ORCA), Wrapped SOL (WSOL), Tether (USDT), USDC (USDC), among others.

Per the investigation, Hoak swapped the assets for Solana (SOL), USDT, and USDC before sending the funds to an intermediary wallet. The funds were sent to Binance from this wallet. The developer stole 2,498.8 USDT, 51,785.2 USDC, and 1,830.8 SOL, accounting for approximately $317,000.

Cobra expressed his disbelief and sadness regarding the situation, stating that he didn’t think it was possible a core contributor, who stayed after last year’s exploit to rebuild the project, could “be the one who rugged funds from the redemption contract.”

As reported by Bitcoinist, the Solana-based decentralized finance (DeFi) protocol was the victim of a security breach that took $1.03 million from the project. Despite the exploit being a major hit to the protocol, the team was able to freeze over half the stolen funds and offer a redemption plan.

The Redemption Package was based on the “socializing losses” mechanism, which consists of distributing the effects of an unfortunate event, like an exploit, across all users. Users would receive a portion of the remaining assets corresponding to their share or involvement in the protocol.

Developer Gambles Funds Away

On Tuesday, Hoak made a public statement admitting to the allegations against him and apologizing. In the statement, the developer claims to suffer from a crippling gambling addiction which has affected his professional life in several instances.

He explained that the untreated addiction drove him to steal the funds from the Redemption Package. However, he claims not to have run away with the Solana-based protocol funds but instead gambled them away, suggesting there’s little hope of retrieving the misappropriated assets.

He closed his statement by apologizing for his actions and stating, “Whatever comes next is in God’s hands.”

The community had mixed reactions to Hoak’s confession. Some members felt sympathetic towards the developer, as Ludomania is a serious matter that should be treated like any other addiction.

However, others felt that Hoak was “playing the victim” and using gambling as an excuse. Similarly, some considered that even if the reason was the one stated, users remained affected by his actions.

Problem gambling with cryptocurrencies is not a new issue in the community, as a user pointed out. A 2023 YouGov survey revealed that people in the UK “are experiencing harm from investing in cryptocurrencies and other high-risk trading products, experiencing similar difficulties that people report with gambling harms.”

It’s worth noting that cryptocurrencies are not related to or a cause of gambling addictions, but, as the UK’s Gambling Commission stated, “consumers who have a propensity to risk do perceive investing in these products as gambling.”

Solana is trading at $144.62 in the 3-day chart. Souce: SOLUSDT on TradingView

Shiba Inu (SHIB) is again on top as crypto whales return to the meme coin’s ecosystem. On-chain data shows that these high-volume investors have been recently accumulating the meme coin, which could ultimately affect its price. 

Shiba Inu Sees Spike In Whale Transactions

Data from the on-chain analytics platform IntoTheBlock shows that Shiba Inu saw a 2,300% increase in its daily large transaction volume, amounting to $223 million. This category of transactions exceeds $100,000 and is usually made by traders called “whales.” This development presents a bullish signal for the meme coin, as whales are known to significantly impact a coin’s price discovery. 

Therefore, a surge in Shiba Inu’s price looks inevitable, as whale accumulation usually leads to an upward trend in the token’s price. Meanwhile, other metrics paint a bullish outlook for the meme coin. For instance, there has also been an increase in the daily active addresses and transactions, which suggests that crypto investors are actively trading the meme coin. 

Shiba Inu’s burn rate is also up in the past seven days with over 143 million SHIB tokens burned during that period. Shiba Inu’s fundamentals are also strong. The meme coin recently secured a listing on the cryptocurrency payment platform CoinGate. 

This listing is expected to expand Shiba Inu’s offerings. Users can use the meme coin to process some commercial transactions, including paying for Airbnb accommodations and purchasing from certain brands like Nike and Zalando. 

However, despite such a bullish outlook, the layer-2 network Shibarium is still lagging, which will undoubtedly be a cause for concern for the ecosystem. Data from the Shibariumscan shows that the network has continued to record daily transactions under 10,000. This is a far cry from when Shibarium recorded millions in daily transactions.

SHIB’s Next Move On The Charts

Crypto analyst Ali Martinez recently provided insights into Shiba Inu’s future trajectory. In an X (formerly Twitter) post, he mentioned that the meme coin could witness a “20% upswing to $0.00002954” if it breaks the upper boundary of this descending parallel channel at $0.00002444. 

Crypto analyst DamiDefi also revealed in an X post that Shiba Inu had formed a falling wedge on the daily time frame. He claimed that if the meme coin breaks out from its current price level, Shiba Inu could experience a price pump of over 50%. 

Shiba Inu could, however, be held back by Bitcoin’s tepid price action as data from IntoTheBlock shows that the meme coin still has a strong price correlation with the flagship crypto. Shiba Inu recorded a significant rally on May 13 and looked to be experiencing a bullish reversal, but that wasn’t the case as it faced a sharp correction, declining alongside Bitcoin. 

At the time of writing, Shiba Inu is trading at around $0.00002404, up in the last 24 hours according to data from CoinMarketCap. 

Tales of crypto investors turning a few dollars into millions are not new, but one particular PEPE investor has taken this a step further. This crypto trader was able to turn a $3,000 investment into $46.3 million in the space of a year. Here’s how they did it.

$3,000 In PEPE Turns Into $46.3 Million

In a post on X (formerly Twitter), the on-chain data tracking platform Lookonchain revealed exactly how this crypto trader turned the $3,000 investment into tens of millions of dollars. According to the tracker, the trader had bought $3,000 worth of PEPE tokens on April 15, 2023, which is when the coin launched. The trader received a total of 4.9 trillion tokens in return.

The same year, PEPE would go on a legendary rally, going from under a $1 million market cap to over $1 billion after securing listings from major crypto exchanges such as Binance. At this time, the investor’s stash had risen to more than $10 million. However, the crypto trader would continue to hold their stash and only sell a small portion of it.

Fast forward to May 2024 and the PEPE price has hit multiple new all-time highs. The latest happened this week when the meme coin’s price rose above $0.00001 to cross a $4.5 billion market cap. This move catapulted the trader’s holdings to over $40 million.

Following the price reaching a new all-time high, the crypto trader has begun to take some profit. As Lookonchain’s post shows, the investor recently sold 255 billion tokens for a total of $2.3 million. So far, the trader has sold around 1.4 trillion tokens, leaving them with a balance of 3.5 trillion tokens, which is currently worth a whopping $38.9 million.

In total, this investor has seen a 15,718x return or a 157,718% ROI. Their total realized and unrealized profit from this single trade now sits at $46.3 million at the time of writing.

Is This Crypto Investor An Insider?

Given the timing of the crypto investor’s buys into PEPE when it just launched, it has raised questions of whether this particular investor is an ‘insider’. In other words, some have wondered if this is one of the team members behind the meme coin.

However, others have focused on the sheer grit that it has taken the investor to hold their tokens to this point. One X (formerly Twitter) user points out the fact that the reason the investor was able to make such returns was the fact that they were able to hold, and did not sell early.

Everyone claims ‘insider’ immediately.

Bitches, he spent 3k, and held like a diamond handed king. This is how you become an ‘insider’

You want these kind of gains? You want the ‘inside tip’

Don’t be paper handed jeets. https://t.co/q6R3ksaRdT

— Naka (@Nakameowdough) May 15, 2024

For now, the investor seems to be holding the majority of their coins to wait for better prices. Given that the bull market is expected to continue to unfold this year, it is possible that the PEPE price will continue to rally and reach new all-time highs, which would mean higher gains for this smart investor.

In a startling development in Hong Kong’s crypto sector, a scam involving “hell banknotes” has led to the arrest of three employees from a crypto exchange shop in Tsim Sha Tsui.

The suspects allegedly deceived a customer into transferring HK$1 million (approximately $127,500) worth of Tether (USDT) in exchange for counterfeit currency traditionally used in Chinese rituals. This incident marks a concerning trend in misusing digital currencies for fraudulent schemes.

Crypto Scam: The Arrest And Police Investigation

The scam was exposed when a 35-year-old man reported to the Hong Kong Police Force (HKPF) that he could not receive any real currency after attempting to convert his cryptocurrency at the shop.

He was shown stacks of what appeared to be cash but were actually ‘hell banknotes’—paper money intended as offerings to the deceased, not legal tender. The revelation of this deception prompted immediate police action.

The HKPF’s technology crime division moved quickly to detain the three men, aged 31 to 34, involved in the scam operation.

During the probe, police confiscated 3,000 hell banknotes, a safe, and a note-counting machine, indicating the deliberate nature of the scam. The suspects had convinced the victim to transfer his USDT to their wallet, only to provide worthless paper in return and then flee the scene.

Notably, this fraudulent act could lead to severe legal consequences for the perpetrators. Hong Kong law stipulates up to 14 years in prison for fraud. The suspects are also potentially liable for acquiring property by deception, which carries a penalty of up to 10 years.

Preventive Measures And Broader Implications

In response to this and similar incidents, the HKPF has issued an advisory urging the public to use only ‘licensed and authorized cryptocurrency exchanges.”

According to the report, they emphasized the importance of “inspecting banknotes” and being “vigilant about the authenticity” of currency received in transactions.

Furthermore, this incident is part of the region’s larger pattern of crypto-related scams. Last month, Hong Kong customs officials arrested three individuals linked to a HK$1.8 billion ($228 million) money-laundering operation using a crypto platform and bank accounts associated with shell companies.

These operations highlight criminals’ sophisticated methods to exploit the digital finance ecosystem.

Florence Yeung Yee-tak, commander of the Financial Investigation Division of the Customs Department, noted the difficulties in investigating these crimes due to cryptocurrencies’ inherent “anonymity” and the lack of “jurisdictional boundaries.”

According to Yeung Tak, the department relies heavily on intelligence, capital flow analysis, and comprehensive financial investigations to combat these kinds of illegal crypto activities.

Featured image from Unsplash, Chart from TradingView

Ripple, a cryptocurrency payments company and the largest holder of XRP, has initiated another large-scale transaction that has caught the attention of the crypto market. The payment protocol and exchange network has dumped 150 million XRP, representing approximately 0.25% of the cryptocurrency’s current market capitalization. 

Ripple’s Large-Scale Transfer

In a recent X (formerly Twitter) post on Wednesday, May 13, blockchain tracker and analytics system, Whale Alert disclosed that Ripple had sold 150 million XRP tokens valued at over $75.7 million. The recipient of the substantial XRP transfer was an anonymous crypto wallet address identified as “rP4X2hTa7A,” which was activated by Ripple. 

The transfer occurred in two separate transactions, with a one-hour time difference. Whale Alert revealed that 100 million XRP worth approximately $55,776,737 was transferred into ‘rP4X2hTa7A’ from another anonymous wallet address ‘rhWt2bhRq.’

The second transaction saw the rest of the XRP being moved to ‘rP4X2hTa7A,’ recording a 50 million XRP transfer worth about $27.8 million. 

According to data from XRP Ledger (XRPL) explorer, Bithomp, Ripple has consistently maintained a relationship with the wallet address, rP4X2hTa7A. Earlier on April 24, the crypto payments company transferred a whopping 100 million XRP to the above wallet address. After which, portions of the cryptocurrencies were distributed from the wallet to several external addresses.

It’s also worth mentioning that Ripple initiated its 150 million XRP transaction after releasing 1 billion XRP tokens on May 1 from its regular monthly escrow unlock. Following the XRP release, Ripple distributed the cryptocurrency, transferring 200 million XRP to its personal treasury account and allocating the rest of the tokens to new escrows.

XRPScan data also revealed that after receiving the XRP escrow deposit, Ripple’s treasury account identified as ‘Ripple (1)’ had sent the tokens to the aforementioned wallet address, effectively increasing XRP’s supply inflation by introducing new tokens into the market that were previously never in circulation. 

Following the XRP transfer to rP4X2hTa7A, the anonymous wallet address kept 50 million XRP and moved the remaining 100 million XRP to another unknown wallet. If this distribution pattern continues, a sell-off could occur, potentially impacting the price of XRP, which has been consolidating around the $0.5 price mark. 

XRP Price Analysis

Although Ripple’s 150 million XRP dump is not its first transfer this year, a potential sell-off could have a drastic effect on XRP. Historically, XRP’s value tends to experience slight declines after Ripple sells its tokens.

Following this trend, Ripple’s recent XRP transfer has potentially led to a dramatic decline in the price of the cryptocurrency. Just a few days ago XRP’s price was trading around $0.5. However, at the time of writing, the cryptocurrency is trading at $0.49, having declined by 1.37% over the past 24 hours and 4.03% in the previous week, according to CoinMarketCap.

Bitcoin prices are firm, steady above $60,000 despite the ultra-high selling pressure that saw it dump double digits from all-time highs. Despite the current development, one analyst, @el_crypto_prof, is bullish, predicting a welcomed price surge based on the BBWP indicator’s development. 

Signal Flashes Blue, Time To Buy Bitcoin?

Taking to X, the analyst noted that the BBWP indicator had printed a “blue bar” on the daily chart. Looking back, this suggests that prices could be preparing for a strong run in the weeks ahead. 

Confidence is high because prices spiked higher the last time a “blue bar” was printed. This signal has been printed two times before. The first time was in October 2023 and January 2024. The last leg signal printed in January was the basis of BTC soaring above 2021 highs of around $70,000. As mentioned earlier, BTC prices spiked by roughly 80% in both instances.

Beyond this, the analyst also observed that the bullish trend line remains intact, further bolstering the bullish outlook. For this reason, the trader remains upbeat, saying there is a probability of BTC soaring above the immediate liquidation levels to $100,000. 

Still, BTC is not guaranteed to rally, aligning with historical performances. Technical indicators like the BBWP tend to lag, depending on “past” price actions to print signals. In the BBWP’s case, volatility is derived from past price action generated by the popular Bollinger Bands (BB). 

BTC bulls have failed to take over, pushing prices higher, as in Q1 2024. Market-wide factors have been considered, such as slowing down the upside momentum. 

CEO Expects BTC To Range, Vanguard Hires New Executive

Mike Novogratz, CEO of Galaxy Digital, is not bullish. Speaking on Galaxy Digital’s Q1 2024 earnings call, the CEO believes prices will continue consolidating, ranging between $55,000 and $75,000 in the next few weeks. By Novogratz’s estimation, BTC might post a conclusive break higher by June 2023–or the end of Q2 2024. 

The CEO also added that dwindling inflows via spot exchange-traded funds (ETFs) shouldn’t be a concern. Overall, there appears to be broader adoption among institutions, a massive endorsement for the coin and the sector.

Comments came with news that Vanguard, an asset manager, appointed Salim Ramji, a former BlackRock executive. The community says Ramji is Bitcoin-friendly and oversaw the launch of BlackRock’s IBIT earlier this year.

Ramji replaces Tim Buckley, a BTC critic. Still, whether Vanguard will reconsider its position on BTC and even initiate plans to issue spot Bitcoin ETFs like BlackRock or Fidelity remains to be seen.

Cumberland, an institutional digital asset trading firm, has transferred a substantial quantity of Shiba Inu (SHIB) tokens, valued at approximately $4.5 million, to various cryptocurrency exchanges, including Coinbase and OKX. This move comes amidst a noticeable slowdown in the market for SHIB.

Cumberland Offloads Almost All Shiba Inu Tokens

Over the past 24 hours, Cumberland executed significant transfers involving more than 210 billion SHIB tokens, according to on-chain data provider The Data Nerd (@OnchainDataNerd). The major portion of these tokens, approximately 144 billion SHIB, valued at roughly $3.46 million, was moved to the US-based crypto exchange, Coinbase. This transaction occurred within the last 12 hours, aligning with SHIB’s market price of $0.000024.

An earlier transaction within the same 24-hour period involved Cumberland transferring 50.36 billion SHIB worth $1.17 million to OKX as well as another 1.69 billion SHIB ($45,000) to an unnamed destination. These transfers combined have reduced Cumberland’s holdings in SHIB to just about 2 billion SHIB tokens, which currently value around $48,642, according to Arkham Intelligence data.

6 hours ago, #Cumberland just deposited 144B $SHIB (~$3.3M) to #Coinbase.

10 hours ago, they did deposited 50.36B $SHIB (~$1.17M) to #OKX.

Just now, they just have 1.69B $SHIB (~$45k).

Address:https://t.co/CtC84h2EJL pic.twitter.com/UoeueKsrA5

— The Data Nerd (@OnchainDataNerd) May 15, 2024

These transactions appear to follow a recent pattern of behavior from Cumberland. The firm’s transaction history over the past several days reveals a trend of more withdrawals than deposits, particularly involving the SHIB token.

The timing of Cumberland’s transactions correlates with a period of stagnation in the broader SHIB market. After breaking out to the downside from a bull pennant pattern in mid-April, the price of SHIB has since entered a consolidation phase, oscillating within a narrow range. The daily chart indicates that SHIB is currently trading between $0.00002058 and $0.00002750, showing a sideways movement that suggests a period of indecision in the market.

Market analysts often view such significant transfers of “whales” to exchanges as a bearish signal, hinting at potential selling pressure. The motivations behind Cumberland’s current strategy are not publicly known, but the scale of these transactions and the choice of exchanges are critical for market observers.

The ongoing developments have prompted varied speculations about the future movements of SHIB’s price, especially considering the token’s recent lackluster performance in the crypto market.

Currently, the Shiba Inu price is positioned between two key moving averages: the 100-day EMA, currently at $0.00002211, and the 50-day EMA, at $0.00002408. A daily close above or below either of these averages is likely to dictate the short-term trajectory of SHIB’s price.

Should this occur, the focus will shift to the previously mentioned trading range, specifically its resistance at $0.00002750 and support at $0.00002058, as these levels are expected to play a crucial role in the next phase of SHIB’s market activity.

At press time, SHIB traded at $0.00002404.

As the bearish pressures of the crypto market catches up to Shiba Inu, it has begun to manifest in other metrics of the meme coin. The most prominent in recent times is the SHIB burn rate, which has taken a significant nosedive during this time.

Shiba Inu Burn Rate Crashes 91.94%

In a surprising turn of events, the Shiba Inu burn rate has seen a significant decline of 91.94%. This drop comes in the last 24 hours, underscoring the lack of attention to this metric, as well as the conservative stance that investors have taken during this time.

According to the Shiba Inu burn tracking website, Shibburn, there were only 2.367 million SHIB tokens burned in the last day. This is in stark contrast to the 29.5 million that were burned the prior day. Also, looking at the burn rates from this week, it shows that this lack of interest is very recent and may have to do with the Bitcoin price crashing below $62,000.

For example, on May 13, Shibburn reported that over 20.2 million tokens were burned, which was a 94.7% increase at the time. What followed this was the 29.5 million that was recorded on May 14, and at the time, it was an over 110% increase in the burn rate.

The lack of interest is also reflected in the number of burn transactions recorded in the 24-hour period. So far, only four burn transactions have been recorded in the last day, with the largest transaction carrying around 1.5 million SHIB. Furthermore, the last burn transaction was recorded 16 hours ago, as at the time of writing.

This decline in the daily burn rate has also impacted the weekly burn rate. Shibburn’s report show a 143.35 million token burn rate in the last week, which is only a meager 3.59% increase from the figures recorded in the prior week.

HOURLY SHIB UPDATE$SHIB Price: $0.00002394 (1hr -0.19% ▼ | 24hr 0.52% ▲ ) Market Cap: $14,085,134,825 (0.70% ▲) Total Supply: 589,273,603,589,470

TOKENS BURNT Past 24Hrs: 2,373,041 (-91.92% ▼) Past 7 Days: 143,350,536 (3.59% ▲)

— Shibburn (@shibburn) May 15, 2024

SHIB Investors Are Still Holding

Usually, when Shiba Inu burn rate declines, it often points to investors choosing to hold on to their tokens, and this is often reflected in their selling rate. According to data from Santiment, this trend has held as SHIB investors have refrained from sending their tokens to exchanges, leading to a significant drop in active SHIB deposits.

This is bullish for the meme coin because when investors choose to send their tokens to exchanges, it means that they are looking to sell. In the present case of Shiba Inu, investors are choosing to hold on to their tokens rather than send them to exchanges, which means that they are not willing to sell.

An unwillingness to sell will crash the selling pressure and once demand surpasses the supply, then prices will have to recover. If Shiba Inu investors continue this trend, and the crypto market recovers once more, then the meme coin may be poised to rally from here.

On-chain data shows the Coinbase exchange has just seen a massive Bitcoin outflow, a sign that some large-scale buying might be going on.

Over 16,000 BTC Left The Coinbase Platform In The Past Day

As pointed out by an analyst in a CryptoQuant Quicktake post, Coinbase has observed a huge outflow for the seventh time this year. The on-chain metric of interest here is the “exchange outflow,” which keeps track of the total amount of Bitcoin leaving the wallets attached to a centralized exchange.

When the value of this metric is high, it means that the investors are currently withdrawing large amounts from the platform in question. Generally, holders take their coins out of the custody of these central entities whenever they plan to hold onto them for extended periods.

Additionally, the trend can also be a sign that these coins coming out are fresh buys, so exchange outflows can have an overall bullish effect on the cryptocurrency’s price.

On the other hand, the indicator having a low value may imply that there isn’t much interest in buying the asset right now. Depending on the trend in the opposite metric, the exchange inflow, such a value may either be bearish or neutral for the coin.

Now, here is a chart that shows the trend in the Bitcoin exchange outflow specifically for the Coinbase Advanced platform:

As displayed in the above graph, the Bitcoin exchange outflow for Coinbase has registered a huge spike in the past day. In total, 16,021 BTC, worth nearly a billion US dollars at the current exchange rate, has left the platform with this outflow. Given the massive scale, a large entity has to be involved here.

Coinbase, in particular, is known to be the preferred exchange for American institutional investors, so this accumulation may have come from one such trader. A more zoomed out view of the chart of the same indicator shows this certainly isn’t the first time such a withdrawal has occurred on the platform.

As the quant has highlighted in the graph, Coinbase has seen Bitcoin outflows of similar scale seven times in the year 2024 so far. Some of these buys preceded surges in the price, so it’s possible they were at least partially the instigator for them.

However, the more recent spikes have failed to produce any bullish effects on the cryptocurrency, so it’s hard to say whether the latest outflow would lead to any rally at all.

“There is a high probability that this transaction is a institutional purchase,” the analyst notes. “But on the flip side, it could also be an internal transfer by Coinbase.”

Naturally, if the latter is the reason for this apparent outflow, then the transaction wouldn’t really be relevant for the market.

Bitcoin Price

Bitcoin has seen a small jump of 1% over the past 24 hours that has taken its price back to $62,400.

Jim Cramer, the outspoken host of CNBC’s Mad Money, has caused a stir in the financial sector by endorsing Bitcoin (BTC) over MicroStrategy stock (MSTR). This recommendation follows despite MSTR’s notable year-to-date performance of 85%, compared to Bitcoin’s 125% gain.

Cramer’s endorsement, however, is met with a dose of skepticism. The financial guru is known for his sometimes-inaccurate predictions, with some even claiming his recommendations have the opposite effect – a phenomenon known as the “Inverse Cramer” theory.

MicroStrategy Doubles Down On Bitcoin

While Cramer throws shade at MicroStrategy, the company remains a staunch Bitcoin advocate. CEO Michael Saylor is a vocal “Bitcoin Maxi,” holding a significant personal stake in the cryptocurrency and spearheading the company’s hefty BTC acquisitions. This unwavering commitment stands in stark contrast to Cramer’s sudden shift.

Jim Cramer on Bitcoin: If you want bitcoin, don’t buy $MSTR MicroStrategy. Buy bitcoin$COIN $HOOD $BTC $ETH $DOGE $MARA $CLSK $BITF $RIOT https://t.co/M1D6qKVKLs

— Hardik Shah (@AIStockSavvy) May 13, 2024

Bitcoin ETF Outflows Cast A Shadow

Cramer’s advice also coincides with a period of uncertainty for Bitcoin ETFs. Grayscale, the largest Bitcoin ETF management company, has seen a recent exodus of investors due to fees associated with their product. Additionally, newly launched Bitcoin ETFs in Hong Kong have experienced more redemptions than deposits for several days, indicating a cautious investor sentiment.

Sell Pressure Dampens Bitcoin’s Momentum

Adding fuel to the fire, the Bitcoin market itself is facing headwinds. A recent price drop below $62,000 is accompanied by substantial sell pressure on spot markets, raising concerns about a potential downward trend.

Is The ‘Inverse Cramer’ Curse Upon Us?

With Cramer’s past record and the “Inverse Cramer” theory swirling, some investors might be hesitant to follow his current Bitcoin recommendation. If history repeats itself, his endorsement could unintentionally trigger a sell-off.

Cramer’s Comments: A Double-Edged Sword For Crypto Awareness

Despite the uncertainty surrounding his call, Cramer’s foray into the Bitcoin conversation has a silver lining. Discussions about cryptocurrency by prominent figures like Cramer can raise public awareness about blockchain technology, potentially attracting new investors to the digital asset space.

The Verdict: A Gamble In A Murky Market

Cramer’s sudden shift in stance towards Bitcoin leaves investors in a quandary. While Bitcoin offers higher potential returns than MicroStrategy stock, recent market trends and Cramer’s own track record suggest a degree of risk. Ultimately, the decision to invest in Bitcoin directly or through MicroStrategy remains a gamble in a currently murky market.

Featured image from Pexels, chart from TradingView

Bitcoin is still holding steady above the $60,000 price mark, but recent actions by miners could disturb this stability very soon. The recent halving cut the block reward from 6.25 BTC to 3.125 BTC, meaning miners now receive half as much for verifying transactions and mining new blocks. As noted in a recent report by Kaiko, miner revenues have plummeted since the halving, and miners are beginning to feel the pressure. 

Bitcoin Under Increased Pressure

Bitcoin miners largely rely on two revenue streams to keep operating: the mining reward and transaction fees. The Bitcoin market is cyclical and each halving has historically led to an increase in selling pressure from the miners. Data shows that the recent April halving has led to a fall in the Bitcoin hash rate with mining profitability now at its lowest point in three years.

For miners with high operating costs, this drastic mining pay cut means they have to find other ways to generate income and fund their business. For many, the only option is to sell some of the BTC they hold. According to findings, Marathon Digital and Riot Platforms, two of the biggest Bitcoin miners, currently hold BTC worth over $1.6 billion between them.

Interestingly, the spike in Bitcoin network fees before and after the halving has mostly offset operational costs and compelled the need to sell. According to Kaiko, network fees accounted for 16% of BTC earned by Marathon Digital in April, a jump from 4.5% in March.

However, the recent trading activity and volume decline in the past few days means revenue from the network fees is dropping and the likelihood of miners selling their holdings is increasing. 

What’s Next For BTC?

At the time of writing, Bitcoin is trading at $61,888 and is on a 1.20% decrease in the past 24 hours. The next three to six months will be crucial in determining how much the halving and miner selling impacts the Bitcoin price. If demand remains strong and most large miners can weather the revenue drop without selling too many of their holdings, the price could hold steady and even start to climb.

Fortunately, there are still a lot of catalysts for price surges that could offset the looming selloff from miners. Hence, Bitcoin has a good chance of defending the $60,000 price level. An example is the mainstream adoption of BTC through Spot Bitcoin ETFs. Some Bitcoin whales are also taking advantage of the price consolidation to top up their holdings. On-chain data shows that short-term holder whales are now accumulating around 200,000 BTC per week. 

For investors hoping for a simple way to gain exposure to Ethereum, the road seems paved with regulatory hurdles. The US Securities and Exchange Commission (SEC) has thrown a wrench into plans for spot Ethereum Exchange Traded Funds (ETFs), leaving the future of these investment vehicles shrouded in uncertainty.

Security Or Commodity? The Ethereum Classification Conundrum

The crux of the issue lies in the SEC’s classification of Ethereum (ETH) itself. Bloomberg analysts, including Eric Balchunas, believe the SEC views ETH as a security, not a commodity – and that the chances of its ETF getting the regulator’s nod is “slim to none.”

This distinction is crucial because commodity ETFs are generally easier to get approved than security ETFs. The SEC’s recent inquiries regarding whether ETF proposals qualify under commodity regulations seem to support this view.

TLDR: the SEC asked commenters re the Eth spot ETFs whether these filers have properly filed their ETF listing proposals as commodities. This shows the SEC is perhaps considering to Eth is a security in their denial. Our odds of approval remain the same: slim to none. Nice job of… https://t.co/g9HGPzGyOp

— Eric Balchunas (@EricBalchunas) May 14, 2024

Additionally, according to Bloomberg analyst James Seyffart, the SEC is more likely to drop Ethereum ETFs now that it has termed ETH a security once more.

The back-and-forth with extended review periods for ETF applications from Invesco Galaxy (decision by July 5th) and Franklin Templeton (decision by June 11th) paints a picture of a cautious regulator.

Looks like odds just went up for SEC to deny Ethereum ETFs by claiming #Ethereum is a security. Not a guarantee that they will do this but i think this almost guarantees that the SEC is at least considering it. (not groundbreaking but first i’ve seen in public SEC documents) https://t.co/JK7M9G9Ttu

— James Seyffart (@JSeyff) May 14, 2024

Potential Impact: A Tale Of Two Futures

The SEC’s eventual decision will have a ripple effect on the Ethereum ecosystem. If classified as a security, stricter regulations could follow, potentially hindering Ethereum’s growth and innovation. Conversely, a commodity classification could pave the way for easier ETF approvals, potentially attracting new investors and boosting mainstream adoption.

Price Poised For Takeoff… Or Turbulence?

The uncertainty surrounding the SEC’s decision is already impacting the Ethereum price. The possibility of a rejection and stricter regulations could deter investors, leading to a drop in market confidence. On the other hand, a commodity classification could lead to a surge in investor interest through easier ETF access, potentially driving the price upwards.

More Than Just An Investment Vehicle: A Battle For Crypto’s Future

The SEC’s stance on Ethereum ETFs goes beyond just a single investment product. It represents a broader battleground for the future of cryptocurrency regulation in the US.

A clear and transparent regulatory framework is essential for fostering innovation and protecting investors in this rapidly evolving space.

Featured image from Direct Stoves, chart from TradingView

In a significant move to commemorate Ethereum co-founder Vitalik Buterin’s historic SHIB token burn, Shiba Inu partner K9 Finance, the project’s official liquid staking productm has announced its plans to burn 410 million KNINE tokens, which has garnered widespread attention and appreciation within the cryptocurrency community.

Vitalik Buterin’s Shiba Inu Burn Inspires K9 Finance to Burn 410 Million KNINE

About 3 years ago, particularly on May 17, 2021, the founder of Ethereum, Vitalik Buterin, carried out a massive burn of 410 trillion Shiba Inu tokens from the project’s overall circulation, which sent shockwaves around the cryptocurrency space.

During the early days of the project, Buterin was offered half of SHIB’s overall supply, and the Ethereum co-founder decided to incinerate over 90% of his holdings. Meanwhile, the outstanding percent of his SHIB holdings were set aside for charity, particularly the India Crypto Relief Fund (COVID-19), in keeping with his ideals of long-term saving initiatives.

At the time, this audacious action was a turning point for both SHIB and the market as a whole, and the burn was valued at about $6.7 billion. It is believed that the burn contributed significantly to Shiba Inu’s rise to prominence since many investors hoarded the token, which caused it to soar to an all-time high of $0.00008845 in October 2021.

According to Buterin, he made the move to burn the aforementioned SHIB because he did not want to be that kind of center power. In addition, he was not confident in the tokens as he believed Shiba Inu would have underperformed by possibly 100x in the near future.

Reiterating the act, K9 Finance DAO has made a proposal to burn 410 million KNINE tokens valued at $12,127 from its total supply of 1 trillion. However, out of the 1 trillion overall supply, about 115.53 billion KNINE are currently in circulation.

K9 Finance believes Buterin’s burn was a major driving force behind SHIB’s growth and transition into an enormous project within the cryptocurrency landscape, and the platform plans to do the same for KNINE.

Generation Of The 410 Million KNINE

K9 Finance has noted that the 410 KNINE will be generated from the treasury’s marketing allocation, and it will not affect operations in the long term. Meanwhile, members must cast their votes on whether or not to approve the burn.

Presently, most of the K9 Finance community members, specifically about 81%, have voted in support of the incineration to honor Buterin’s SHIB burn, while about 18% have voted against the proposal. The proposal, which was created on Monday, May 13, is expected to end on Saturday, May 18.

It is noteworthy that K9 Finance partnered with Shiba Inu in February, with the aim of facilitating seamless BONE staking on the project’s layer 2 solution Shibarium. Since the partnership, K9 Finance has displayed efforts to contribute to Shiba Inu’s security.

Notcoin started as a viral Telegram game that introduced millions to the world of web3 through a unique tap-to-earn mining mechanic.

As a community token, $NOT aims to foster engagement, play, and contribution within its ecosystem. With the upcoming launch on Binance Launchpool, users can stake BNB and FDUSD to farm Notcoin tokens, making it an exciting opportunity for crypto enthusiasts.

This article will explore the origins, mechanics, and future prospects of Notcoin, as well as the specifics of the staking process on Binance.

Origins of Notcoin

Notcoin emerged as a simple yet addictive game within the Telegram messaging app. Developed by Open Builders, the game invited users to tap a golden coin displayed on their screens to earn an in-game currency called Notcoin.

This tap-to-earn mechanism quickly gained traction, attracting 35 million total players and peaking at six million daily active users. The game’s success can be attributed to its straightforward gameplay, community engagement, and the promise of future crypto rewards.

Gameplay Mechanics

Players begin by opening the Telegram app and tapping the Notcoin bot. A golden coin appears on the screen, which players tap to earn Notcoin. Energy depletes with each tap and refills slowly over time, preventing endless clicking.

Players can boost their earnings through daily “Full Energy” and “Turbo” boosts or by purchasing permanent boosts with Notcoin.

Additionally, players climb a global leaderboard divided into tiers, from Silver to Diamond league. Completing quests, such as following a Twitter account or joining a Telegram community, also earns extra tokens. Cosmetic upgrades, like changing the game’s background or the appearance of the coin, can be purchased with Notcoin, enhancing the user experience.

Transition to $NOT Token

The culmination of Notcoin’s in-game efforts is the transition to the $NOT token, set to launch on The Open Network (TON). Unlike many crypto projects with early whales, Notcoin aims for fair distribution by airdropping 100% of the $NOT tokens to the community.

The total supply of $NOT is 102,719,221,714, with an equal circulating supply upon listing. However, this does not mean all tokens will immediately enter trading; unclaimed airdrops and other allocations will gradually enter the secondary market.

Staking BNB and FDUSD to Farm Notcoin Tokens

As part of the Binance Launchpool, users can stake BNB and FDUSD to farm $NOT tokens. The staking process is simple and rewards participants with a significant portion of the total token supply. Here are the details:

Staking Period and Rewards

• Farming Period: May 13, 2024, 00:00 (UTC) to May 15, 2024, 23:59 (UTC).
• Total Rewards: 3,081,576,650 NOT tokens.
  • Stake BNB: 2,619,340,153 NOT (85% of rewards).
  • Stake FDUSD: 462,236,497 NOT (15% of rewards).

How to Participate

1. Register on Binance: Create an account on Binance using the referral link: Binance Registration.
2. Stake BNB or FDUSD: Visit the Launchpool webpage (available 24 hours before the farming starts) and stake your BNB or FDUSD.
3. Earn Rewards: Tokens will be distributed daily based on the amount of BNB or FDUSD staked.

Listing on Binance

After the farming period, $NOT will be listed on Binance on May 16, 2024, at 12:00 (UTC). Trading pairs will include NOT/BTC, NOT/USDT, NOT/BNB, NOT/FDUSD, and NOT/TRY. The Seed Tag will be applied to $NOT, indicating its potential for significant growth.

The Broader Ecosystem and Future Prospects Explore, Play, Contribute, and Offer

Notcoin’s ecosystem revolves around four key pillars:

• Explore: Users earn rewards by discovering new web3 products.
• Play: Participation in games yields additional rewards.
• Contribute: Adding value to the ecosystem through various means also earns rewards.
• Offer: Web3 builders can promote their products through Notcoin campaigns.

Integration with Other Projects

Notcoin plans to integrate with other web3 projects, allowing users to earn rewards by engaging with different content. These projects will need to purchase NOT tokens on the open market and deposit them into a smart contract to activate these features.

Pre-Market Vouchers

Before the $NOT token launch, Notcoin introduced NFT vouchers. Players with over 10 million Notcoin could convert their coins into vouchers, which can be traded before the token launch. This system allows high-level players to speculate on the future value of $NOT.

Future Developments

Post-launch, Notcoin’s gameplay will resume with some changes. While no new tokens will be minted, companies can sponsor in-game rewards to gain exposure to Notcoin’s vast audience. Additionally, Open Builders plans to introduce trading bot functionality, enabling users to buy and sell crypto tokens directly within Telegram.

Personal Opinions and Price Predictions

Given Notcoin’s massive user base and the fair distribution model, the $NOT token has significant growth potential. The token’s price could initially range between $0.002 to $0.003, with an all-time high (ATH) around $0.004. With a market cap potentially between $400 million to $500 million, $NOT presents an exciting investment opportunity.

Conclusion

Notcoin’s journey from a viral Telegram game to a community-driven token on Binance Launchpool exemplifies the innovative potential of web3 projects. By staking BNB and FDUSD, users can farm $NOT tokens and participate in a dynamic ecosystem that rewards exploration, play, and contribution. With its upcoming listing on Binance and plans for future integrations, Notcoin is poised to become a significant player in the crypto space.

For more information on how to participate in the airdrop, visit the official Binance announcement and research pages:

• Binance Research on Notcoin
• Binance Support Announcement

Join the Notcoin community and start your journey into the exciting world of web3 today!

Once more, North Korea has demonstrated its cyber prowess, possibly undermining international sanctions by using cryptocurrencies. According to a recent assessment by UN sanctions monitors, North Korea is suspected of using the Tornado Cash platform to launder a whopping $148 million that was taken from a cryptocurrency exchange in March.

This event highlights how difficult it is becoming to enforce sanctions in the digital era, when illegal actors can hide their identities behind cryptocurrencies.

Mixing Up The Rules: How Tornado Cash Facilitated Money Laundering

According to the UN report, the stolen funds, believed to be from the HTX exchange hacked in late 2023, were funneled through Tornado Cash, a crypto mixer.

These platforms obfuscate the origin of transactions by essentially pooling funds together and then distributing them to new addresses. This makes it extremely difficult, if not impossible, to track the original source of the money.

NORTH KOREA LAUNDERED $147.5 MILLION IN STOLEN CRYPTO IN MARCH, SAY UN EXPERTS

North Korea laundered $147.5 million through virtual currency platform Tornado Cash in March after stealing it last year from a cryptocurrency exchange, according to confidential work by United…

— *Walter Bloomberg (@DeItaone) May 14, 2024

North Korea Making Big Bucks On Cyberattacks

The UN monitors, citing data from blockchain research firms, further revealed that North Korea has likely conducted a total of 97 cyberattacks on cryptocurrency companies since 2017, netting an estimated $4 billion.

This year alone, North Korean hackers are suspected to be behind a dozen crypto thefts worth around $55 million. Experts believe these attacks are often carried out by skilled DPRK (Democratic People’s Republic of Korea) IT workers employed by unsuspecting small crypto firms, granting them insider access to exploit vulnerabilities.

Global Crackdown On Tornado Cash: A Step In The Right Direction?

The international community has not turned a blind eye to these illicit activities. The US government sanctioned Tornado Cash in 2022, labeling it a money-laundering tool frequently used by North Korean cybercriminals. This action complemented broader efforts to regulate digital platforms susceptible to financial fraud.

The recent sentencing of Tornado Cash developer Alexey Pertsev to 64 months in prison by a Dutch court further highlights the tightening grip on such platforms. However, the case also exposes the complexities of regulating cryptocurrencies, a decentralized technology that transcends national borders. International cooperation and coordinated efforts are crucial to tackle this challenge effectively.

Looking Ahead: Securing The Future Of Crypto

The North Korean cryptocurrency laundering case serves as a wake-up call. It underscores the urgent need for a multi-pronged approach to tackle the issue. Governments, regulatory bodies, and the cryptocurrency industry itself must collaborate to address vulnerabilities, enhance transaction transparency, and establish robust anti-money laundering (AML) frameworks.

Featured image from @GameStopPepe) / X, chart from TradingView

Ripple is transitioning into a full-service digital asset custody provider, following its acquisition of Metaco, a Swiss-based leader in the sector, for $250 million in May 2023. This development represents a significant expansion of the fintech’s capabilities into the institutional crypto custody market—a segment that is expected to experience substantial growth over the next decade.

Integration Of Metaco’s Solutions On Ripple’s Platform

The integration of Metaco’s offerings into Ripple’s services was formally announced via X. In a statement shared on the platform, Metaco declared, “All Metaco updates and news for institutional-grade custody solutions can now be found on Ripple. This move allows us to better connect with our community and provide even more valuable insights.” This move underscores a strategic alignment and integration of technologies and services between the two companies.

All Metaco updates and news for institutional-grade custody solutions can now be found on @Ripple. This move allows us to better connect with our community and provide even more valuable insights.

Thank you for your continued support.https://t.co/CRY7VTQfQS

— Metaco (@metaco_sa) May 14, 2024

A prominent figure within the XRP community, WrathofKahneman, highlighted the implications of this integration by stating, “And there we are. The web frontend for Metaco is now Ripple’s ‘Institutional Digital Asset Custody Platform’ page. Gets interesting from here!”

The integration raised several questions within the community regarding its impact on different investor classes and the overall strategy. Addressing these concerns, WrathofKahneman speculated, “At face value, it doesn’t add too much new information; we knew Ripple acquired Metaco. It suggests to me the key role licensed custody plays in Ripple’s plans moving forward, so much so that despite initial claims, they seem to increasingly integrate (absorb) Metaco.”

Chad Steingraber, another prominent community member, further emphasized the significance of this shift, remarking, “Ripple is now a complete Digital Asset Custody Service.” This reflects a general consensus that the company has evolved from its origins as a payment protocol to a more diverse financial technology platform offering institutional-grade digital asset services.

The new subpage offers a comprehensive outline of the service capabilities: “Access the entire digital asset ecosystem today. Scale bespoke business models in new markets with the digital asset economy. Custody is critical to unlocking value, addressing growing demand for new asset classes, and building novel use cases across asset tokenization, stablecoin issuance, trading, staking and beyond.”

It further details the benefits of their institutional-grade custody platform, focusing on security and compliance, agility and flexibility, and connectivity and networks. These features are designed to provide “the ultimate level of private key protection, scalable governance across all operations, and sole control over data and processes,” thereby positioning Ripple as a key player in the rapidly evolving digital asset market.

The acquisition of Metaco not only expands Ripple’s technological base but also aligns with its strategic objectives to dominate the growing market of crypto services for enterprises. Metaco’s flagship product, Harmonize, is a benchmark in digital asset custody and tokenization, widely utilized by leading custodians, banks, and financial institutions globally.

Despite the acquisition, Ripple announced last year that Metaco will continue to operate as an independent brand and business unit under the leadership of its founder and CEO, Adrien Treccani. However, the latest announcement seems to be a slight shift from this strategy.

At press time, XRP traded at $0.49824.

In a new memo, Matt Hougan, Bitwise Chief Investment Officer Matt Hougan offered a detailed analysis of the early adopters of Bitcoin Exchange-Traded Funds (ETFs) based on 13F filings with the SEC. His insights underscore a significant embrace of Bitcoin ETFs by professional investment firms, heralding a potential shift in the landscape of BTC investments.

Since their launch on January 11, Bitcoin ETFs have captured an impressive $11.7 billion in assets, making them the most successful ETF launch in the annals of financial products. This explosive start has sparked widespread interest in the identities of the investors—whether they are predominantly retail or professional.

Who Is Buying The Spot Bitcoin ETFs?

Hougan’s memo provides a clear answer. “A lot of professional investors own bitcoin ETFs,” he stated. These aren’t just any investors; they are some of the most respected and substantial asset managers in the industry. For instance, Hightower Advisors, ranked as the #2 RIA firm in the US by Barron’s and managing $122 billion in assets, now holds $68 million in Bitcoin ETFs. Similarly, Bracebridge Capital, a prominent Boston-based hedge fund that manages endowment funds for institutions like Yale and Princeton, has invested a hefty $434 million.

Other significant stakeholders include Cambridge Investment Research with $40 million, Sequoia Financial Advisors at $12 million, Integrated Advisors holding $11 million, and Brown Advisory with $4 million in Bitcoin ETF holdings. Altogether, as of the latest data from last Thursday, 563 professional investment firms have reported owning a combined $3.5 billion worth of Bitcoin ETFs. Hougan anticipates that by the May 15 filing deadline, these numbers could grow to over 700 firms with total assets under management nearing $5 billion.

“This is absolutely massive,” Hougan explained. “For any financial advisor, family office, or institution wondering if they were the only ones considering Bitcoin exposure, the answer is clear: You are not alone.”

From a historical perspective, the scale of professional investor ownership has been described as unprecedented. Eric Balchunas, a senior Bloomberg ETF analyst, referred to the number of large-scale investors involved in the Bitcoin ETFs as “bonkers.” By comparison, when gold ETFs launched in late 2004—a launch previously regarded as the most successful of all time—they attracted more than $1 billion in just five days. However, their first 13F filings showed only 95 professional firms investing. In contrast, Bitcoin ETFs have dramatically exceeded this mark right from their initial filings.

Despite this surge in professional interest, Hougan’s memo cautions that the total $50 billion assets under management in Bitcoin ETFs still have a substantial portion owned by retail investors. He estimates that professional investors currently account for only 7-10% of all assets. However, he suggested that media portrayal of these ETFs as “retail-driven” funds might overlook a critical emerging trend.

“Most investors follow a familiar pattern,” Hougan stated, describing a typical four-step investment trajectory observed among institutions. Initially, there is a period of due diligence lasting 6-12 months. Following this, professionals might make a small personal allocation to test the waters before recommending broader allocations to their clients. Eventually, this leads to more substantial, platform-wide allocations across their entire book of clients, typically ranging from 1-5% of the portfolio.

Given these insights, Hougan remains “incredibly” bullish about the future of Bitcoin ETFs. He concluded, “The allocations we see in recent 13F filings are just a down payment.” He highlighted that firms like Hightower Advisors, with a current 0.05% allocation, could potentially increase their investments substantially. “Multiply that by the growing number of professional investors participating in the space, and you can begin to see what’s behind my enthusiasm.”

Remarkably, yesterday, after Hougan released the memo, there was probably the most important 13F disclosure for Bitcoin to date. The State of Wisconsin Investment Board reported buying $99,167,688 (2,450,400 shares) of BlackRock’s IBIT and $63,687,310 (1,013,000 shares) of Grayscale’s GBTC.

At press time, the BTC price stood at $61,940.

El Salvador has once again made headlines as it announced its ownership of 5,750 Bitcoin (BTC), which is valued at approximately $353 million based on current market prices, according to Bloomberg. 

This revelation comes after the National Bitcoin Office launched a tracking website, developed in collaboration with mempool.space, to provide transparency regarding the treasury’s BTC holdings.

El Salvador’s Bitcoin Adoption Amid Criticism

The Central American nation, under the leadership of President Nayib Bukele, made history in 2021 by becoming the first country in the world to adopt Bitcoin as legal tender. 

However, this move has faced criticism from international entities such as the International Monetary Fund (IMF), which expressed concerns about potential risks to financial stability.

Bukele, undeterred by the criticism, initiated the purchase of Bitcoin using public funds last year. In a strategic move to mitigate security risks, a significant portion of the country’s Bitcoin holdings has been relocated to a cold wallet, minimizing the vulnerability to hacking attempts and ensuring the safety of the nation’s digital assets.

IMF Independence Looms?

Venture capitalist Tim Draper, renowned for his investments in the crypto space, recently shared his insights on El Salvador’s pioneering position in an interview on the Web3 Deep Dive channel. 

Draper expressed his positive outlook, suggesting that if Bitcoin’s price were to reach $100,000, El Salvador would be capable of repaying its debts to the International Monetary Fund (IMF) and potentially severing ties with the organization indefinitely. 

The venture capitalist further speculated that the nation could emerge as one of the “most attractive destinations worldwide” due to its forward-thinking approach to adopting cryptocurrencies.

Draper also addressed the resistance countries and individuals who are hesitant to embrace crypto face. He attributed this reluctance to a desire for control and an aversion to change. 

Taking a subtle swipe at the United States, the VC billionaire emphasized that El Salvador’s commitment to innovation and pioneering spirit sets it apart, positioning it as a beacon of progress in the global landscape.

The leading cryptocurrency is currently struggling to establish a sustained position above the crucial $64,000 resistance level. This level holds significant importance as it directly influences Bitcoin’s potential for further upward momentum and a potential retesting of its previous all-time high (ATH) of $73,700, achieved on March 14. 

The forthcoming months will shed light on the impact that the approval of exchange-traded fund (ETF) markets in Hong Kong and the United States will have on Bitcoin’s price, particularly with the growing recognition and interest from institutional investors. 

Featured image from Shutterstock, chart from TradingView.com