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In a surprising turn of events, bankrupt cryptocurrency exchange FTX recently announced a new repayment plan to reimburse creditors and customers in full. The plan also includes a substantial compensation offer to account for the time value of their investments. 

While customers initially expected to be the primary beneficiaries, the biggest winners in this repayment plan are not the customers themselves but rather bankruptcy traders.

Full Refunds Offered By FTX 

As reported by Bitcoinist, FTX’s reorganization plan, filed with the United States Bankruptcy Court of Delaware, outlines the allocation of funds to customers affected by the exchange’s fraudulent scheme. 

The plan involves a centralized distribution of all the company’s assets from its collapse in November 2022 to its creditors and customers. FTX has disclosed various settlements with primary economic stakeholders, some pending finalization and court approval. 

Notably, a key settlement involves resolving the $24 billion in claims filed by the Internal Revenue Service (IRS), with FTX agreeing to a $200 million cash payment and a $685 million subordinate claim.

Elevating Bankruptcy Traders To Winners

Contrary to expectations, the true beneficiaries of the repayment plan are bankruptcy traders who swiftly moved to purchase claims at a fraction of their value before FTX officially filed for bankruptcy. 

These hedge funds and individual investors have seen the bid price of claims rise from 10% to 101%, demonstrating their shrewdness in seizing this opportunity.

According to Fortune Magazine, hedge funds specializing in distressed debt, such as Attestor, Baupost, and Farallon, have emerged as frontrunners in reaping substantial returns from FTX’s assets. 

These funds, which acquired claims worth “hundreds of millions of dollars,” stand to make significant profits. Other notable beneficiaries include Louis d’Origny, the founder of claims buying platform FTX Creditor, who is set to profit over $25 million from personal investments.

However, while the repayment plan has yielded impressive gains for some, not all claimants are satisfied. Some investors argue that the present-day value of their crypto tokens should be honored, expressing concerns over how assets were sold. 

Arush Sehgal, an investor and former member of the FTX unsecured creditors’ committee, criticizes the estate’s selling practices and claims that damage done by the current administrator exceeds the original crime committed by former CEO Sam Bankman-Fried.

The failed co-founder and CEO of the exchange Bankman-Fried was sentenced to 25 years in prison for defrauding customers and is currently being held at the Metropolitan Detention Center in Brooklyn. 

FTT is trading at $2.015, up more than 25% in the last 24 hours alone, fueled by the repayment announcement.

Featured image from Shutterstock, chart from TradingView.com 

In a post on X, one analyst now claims traditional fiat-backed stablecoins like USDT and USDC should prepare for a “major” attack due to the increasing popularity of Ethena’s USDe. The warning follows Ethena and USDe’s integration with Bybit, a crypto exchange allowing perpetual trading.

Ethena Partners With ByBit

USDe is not fiat-backed like other popular stablecoins. Instead, it is a “synthetic dollar” backed by diverse assets, mainly staked ETH derivatives and short positions posted on centralized exchanges like Binance.  

Related Reading: Market Expert Says Bitcoin Is Getting Ready To Rally As Major Indicators Cool Off

Announcing the partnership, Ethena, the issuer of USDe, took to X to celebrate the deal and its potential to transform the crypto trading scene. The platform said traders could earn a yield on USDe, which can be used as collateral for futures trading.

Additionally, Ethena noted that users can use their stablecoin in spot trading pairs like Bitcoin and Ethereum without paying fees.

Will This Reduce USDT’s Dominance?

However, while the partnership is bullish for ENA, the native token of the Ethena platform, and could drive demand for USDe, one analyst is doubtful. The observer said the deal constitutes a “direct” attack on the more dominant stablecoins, USDT and USDC, which traders widely use in almost all crypto perpetual trading platforms.

The analyst pointed out offers Ethena dangles via the Bybit integration that could entice traders away from USDT and USDC. For one, traders earning nothing whenever they trade perpetually will receive a yield.

This yield, in turn, will be used to negate funding fees if they choose USDe over USDT or USDC as their margin. Given the high double-digit yield currently standing at 15%, the decision to dish out “free money” for holding USDe, as expected, would impact the dominance of USDT and USDC.

Even so, there are questions about the high yields, with some saying the model is unsustainable. Critics add that the $10 million Reserve Fund placed as a safety net won’t be enough to prevent a depeg when yields fall.

Currently, USDT is the third most valuable cryptocurrency after Bitcoin and Ethereum. When writing, it had a market cap of over $111 billion. As crypto finds adoption and prices recover from the recent plunge, the stablecoin will likely cement its position in the leaderboard.

On the other hand, USDe has a TVL of over $2.5 billion. From Ethena’s homepage, there are over 175,000 holders.

The Australian Taxation Office (ATO) is targeting approximately 1.2 million cryptocurrency-related accounts to tighten the noose on tax discrepancies.

According to Reuters, this step marks an approach by the Australian government to “crackdown on users who may be failing to pay their taxes amid a rising interest in digital tokens.”

ATO’s Scrutiny On Crypto Transactions

The ATO scrutinizes these 1.2 million crypto-related accounts to detect any reported and actual transaction inconsistencies. This includes examining personal data and detailed transaction records from various cryptocurrency exchanges.

Notably, as disclosed, the primary goal of this move is to identify unreported transactions, whether they involve cryptocurrency exchanges or are used for purchasing goods and services.

According to Reuters, cryptocurrencies are treated as assets, not as foreign currency in Australia. This classification means that any profits from selling these digital assets are subject to capital gains tax.

Furthermore, reports indicate that over 800,000 Australian taxpayers have engaged in digital asset transactions in the past three years, with a significant increase observed in 2021.

This surge in crypto activity has prompted the Australian government to adopt a more structured regulatory approach, which, while comprehensive, is less stringent than in other countries like the United States.

Crypto Regulation In Australia

While Australia has recently enforced regulations requiring cryptocurrency exchanges to secure a financial services license, the nation has expressed interest in the digital currency sector.

So far, key financial players, such as Van Eck Associates Corp. and BetaShares Holdings Pty, are gearing up to launch spot exchange-traded funds (ETFs), with the Australian Securities Exchange (ASX) likely to approve these new offerings soon.

Particularly, reports from Bitcoinist indicate that ASX Ltd., which accounts for about 80% of all equity trading in Australia, is expected to approve the first spot of Bitcoin ETFs by 2025.

Notably, the launch of spot Bitcoin ETFs in Australia will significantly impact the region’s $2.3 trillion pension market.

About 25% of the nation’s retirement assets are managed through self-managed superannuation programs, allowing individuals to select their investments. These programs are expected to be key purchasers of the new spot-crypto funds.

Jamie Hannah, the deputy head of investments and capital markets at VanEck Australia, noted that the combination of self-managed super funds, brokers, financial advisers, and platform money creates a sufficiently large market to support the substantial growth of ETFs.

This development signals a promising future for digital asset investments in Australia’s financial landscape.

Featured image from Unsplash Chart from TradingView

Crypto analyst Jonathan Carter has predicted that the XRP price could rise to $1.68. The analyst, however, noted what needs to happen before the crypto token can attain such heights. 

How XRP Price Will Rise To $1.68

Carter noted in an X (formerly Twitter) post that the XRP price was “bouncing from the lower trendline of a symmetrical triangle on the weekly chart.” He claimed that a successful breakout above the triangle would signal a bullish outlook for the crypto token, with $0.93 and $1.68 mi-term targets if this happens. 

Related Reading: Dogecoin Holders In Profit across 82%, What About Shiba Inu?

Like the broader crypto market, XRP is also experiencing a downtrend, and Carter’s prediction undoubtedly offers hope that the crypto token will soon see a trend reversal. Crypto analyst XRP Captain also seems to hold this belief, as he recently shared an X post in which he stated that an XRP breakout was on the horizon.

Like Jonathan Carter, XRP Captain highlighted a symmetrical triangle on XRP’s chart. However, XRP Captain seemed to have a much higher price target for XRP, with the analyst hinting that XRP could rise above $2.6. Meanwhile, crypto analyst Jaydee agreed with this prediction and replied to XRP Captain’s post, stating, “It’s coming! Glad we loaded up heavily at 0.44 and 0.50! Zero emotions!”

Jaydee had earlier made a prediction of his own, stating that XRP will make “life-changing gains for the 5% (smart money) once we bounce off the 7-year trendline.” In the accompanying chart he shared, the analyst highlighted a hidden bullish divergence that had formed for the crypto token.

XRP’s Road To Double Digits

Crypto analyst Egrag Crypto recently predicted that the XRP price could rise to double digits soon. He claims that there is “a mini pump to $1.5 and major pump to $5.89 in the cards.” According to him, this macro pump could be so parabolic that it will cause XRP’s price to soar above double digits. 

Related Reading: Shiba Inu Whale Moves 1.7 Trillion SHIB As Price Struggles, Where Are They Headed?

Analyzing the charts, Egrag noted two ways XRP’s parabolic rise could happen. He claims that if XRP’s price action follows the white triangle, the crypto token will break out to the upside, possibly rising to $1.5 during this rally. He added that this will begin a “significant macro breakout” that coincides around Fib 0.786.

Meanwhile, XRP moving along the blue triangle could propel the crypto token to $5.89, coinciding around Fib 1.618, Egrag remarked.

According to data from CoinMarketCap, XRP is trading at around $0.51 at the time of writing, down over 2% in the last 24 hours. 

In a significant move into the digital asset space, British banking app Revolut has unveiled Revolut X, a dedicated crypto trading platform for UK retail customers. 

According to a Fortune Magazine report, the launch of the new platform signifies Revolut’s commitment to the crypto industry and positions the company to compete with major players like Coinbase and Binance. 

Revolut Continues Crypto Push With New Platform

Interestingly, with a user base of over 40 million, Revolut is one of the world’s largest fintech companies. The new platform will reportedly enable traders to buy and sell over 100 tokens, with fees ranging from zero to 0.09%. 

This announcement follows the launch of Revolut Ramp in March. Through a partnership with MetaMask, Revolut Ramp allows investors to purchase crypto directly within their wallets.

Leonid Bashlykov, the head of crypto exchange products at Revolut, emphasized the company’s goal of empowering customers to grow their wealth, whether in fiat or crypto. 

The profitability of the UK-based fintech company has been closely associated with the crypto market. During the previous bull run, the company achieved profitability for the first time in 2021. The high margins of crypto trading are expected to contribute significantly to Revolut’s profitability in the future.

Contrasting Retreat From US Market

Revolut’s foray into the UK crypto market coincides with recent regulations introduced by the Financial Conduct Authority (FCA), the country’s regulatory agency. 

These regulations include mandatory “24-hour cooling-off” periods that require investors to wait a full day before completing crypto transactions. While these barriers present challenges for smaller or offshore companies, they are manageable for established players like Revolut, according to Boaz Sobrado, a London fintech analyst. Sobrado explained:

These barriers to entry are unsurmountable for smaller or offshore companies, but achievable for companies like Revolut and Kraken. This means there are less competitors around, and hence a larger opportunity.

The firm’s renewed focus on crypto also reflects the positive outlook of the broader market. Since the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the US on January 11, which have accumulated over $53 billion in assets, Bitcoin’s price has risen by over 40%. 

Moreover, the entry of financial giants like BlackRock and Fidelity into the crypto space has accelerated market growth by expanding access to a broader pool of investors compared to previous cycles.

It is worth noting that the launch of the crypto exchange services in the UK contrasts with the company’s retreat from the US market. 

In August 2023, Revolut discontinued its crypto trading services for US customers, citing an unclear regulatory landscape and uncertain market conditions. However, this decision only affected a small portion, approximately 1%, of its user base.

Featured image from Shutterstock, chart from TradingView.com 

On-chain data shows that Bitcoin investors holding between 100 and 1,000 BTC have been on an unprecedented buying spree in the past two months.

Bitcoin Supply Held By Sharks Has Sharply Gone Up Recently

As analyst Willy Woo explains in a new post on X, a group of high-net-worth Bitcoin investors has been buying heavily recently. More specifically, these holders are carrying between 100 and 1,000 BTC in their wallets right now.

At the current cryptocurrency exchange rate, the lower bound of this range is about $6.2 million, while the upper one is about $62 million. Investors of this size are popularly known as “sharks.”

Given these large holdings, sharks can exert some influence in the market, although they are less significant than the whales, the largest holders (1,000+ BTC).

Below is the Glassnode chart shared by Woo, which displays the trend in the total amount of Bitcoin supply held by the investors belonging to this range over the last few years:

Note that the supply measured isn’t of the addresses holding 100 to 1,000 BTC but rather of “entities” owning an amount in this range. An entity is a collection of addresses that Glassnode has identified as belonging to the same investor through its analysis.

Entities provide a more accurate representation of the market, as some investors like to spread out their holdings across multiple wallets. Transactions between an investor’s addresses would naturally not be relevant for the wider market but would count as buying or selling if only addresses are considered.

The graph shows that the supply held by the Bitcoin shark entities has grown rapidly over the last two months or so. This increase implies that the cohort as a whole has participated in aggressive accumulation.

No buying phase from this cohort during the past few years has come close to the scale of this latest rise. As the long-term view of the same indicator shared by Woo suggests, this latest shopping spree stands out even compared to historical accumulation streaks.

Regarding the BTC value, this buying streak may not be the single largest in the coin’s history. Still, while the cryptocurrency has been trading at extremely high prices in the $60,000 to $70,000 range, this accumulation makes it the most impressive USD value.

To some, however, this latest accumulation looks unnatural due to its sharpness. On-chain analyst Checkmate has argued that this metric would largely measure coins going into smaller exchange-traded funds (ETFs).

Woo, though, has countered by suggesting that the ETFs wouldn’t be enough to account for the rise, so there has to be some demand from non-central entities present here.

Checkmate has remained skeptical, finding it hard to believe an army of large investors would buy tens of billions of Bitcoin in this short period. The analyst rather thinks the data is more reflecting wallet management by an exchange or other custodial entity.

BTC Price

Bitcoin’s recovery attempt has again fizzled out without consequence, as the asset has returned to $62,200.

Solana had previously touched $200 earlier in the year but this was only for a brief period before declining back down to $150. At this point, the Solana indicators are beginning to flash bullish, prompting crypto analysts to predict a resurgence above $200 for the altcoin.

Solana Shows Growth On D1 Timeframe

Crypto analyst Maximilian FX has predicted that the Solana price could be on its way to a resurgence. The analyst points to the ascending growth of SOL on the D1 timeframe as one of the reasons why the altcoin is set to recover.

Maximilian FX explains that the crypto market has also reversed from its bullish trend. This happened earlier in the week and the market began to recover once more, pushing the Bitcoin price above $63,000 for a brief period.

Taking the upward momentum of the market into account, the crypto analyst believes that the SOL price will recover above $200 again. However, it shows a retracement back down to $143, which has since been reached in the early hours of Wednesday.

From here, the analyst expects the SOL price to keep rising. “Based on the setup and current trend, the most likely target for a resistance breakout is D1 at 172.33. In this scenario, we are waiting for further growth towards the target of 200.00,” Maximilian FX stated.

SOL Establishes Support Above $125

Another crypto analyst, Orson Fawley, has predicted that the Solana price is getting ready to beat the $200 level once again. The analyst outlines that Solana has seen support develop at around $12,5.80, and this level continues to serve it well.

Related Reading: Shiba Inu Whale Moves 1.7 Trillion SHIB As Price Struggles, Where Are They Headed?

For now, the price is moving toward resistance at $157, which has now become the point to beat. Fawley explains that if the altcoin is able to successfully clear this level, then $180 is the next stop. “On the other hand, SOLUSDT might still retest the support once more before the upward trend is firmly established,” the crypto analyst said.

Currently, the Solana price is trending at $146, with a 6.39% loss in the last 24 hours. However, on the 7-day chart, the altcoin is performing much better, with a 20.23% gain.

The crypto sector continues to exhibit strong growth and resilience, as evidenced by the consistent influx of venture capital (VC), surpassing the $1 billion mark for the second consecutive month.

This sustained flow of investment highlights the market’s ongoing expansion and the increasing confidence of investors in the potential of blockchain technologies and digital assets.

Investment Trends and Sector Highlights in April’s Crypto Funding

In April alone, the crypto sector saw $1.02 billion raised across 161 investment rounds, closely following the $1.09 billion from 186 deals in March. These figures maintain momentum since the latter part of 2022, suggesting a stable and growing interest in the crypto space.

Significant contributions to this total include notable investments in various blockchain-related ventures. For instance, Securitize, a platform specializing in tokenizing real-world assets, secured a $47 million investment led by BlackRock.

Meanwhile, Monad, often called the “Solana killer,” attracted a substantial $225 million from Paradigm and Coinbase Ventures.

Other significant fundraises include Auradine and Berachain, which received $80 million and $100 million, respectively. These raises demonstrate the wide array of sectors within the crypto market, drawing investor interest.

Notably, investment trends within the digital currency market show a clear preference for certain sectors. Blockchain infrastructure firms have emerged as the top recipients of VC funding, amassing $1.7 billion in 2024.

This sector’s attractiveness is likely due to its foundational role in supporting the broader digital currency ecosystem’s functionality and scalability.

Following closely are decentralized finance (DeFi) protocols, which have garnered $626 million, underscoring their pivotal role in reshaping financial services through blockchain technology. Additionally, decentralized autonomous organizations (DAOs) received a relatively modest $3 million.

Major VC Firms Next Move

According to the report, leading venture capital firms Pantera Capital and Paradigm are vigorously seeking substantial funds for fresh digital currency ventures.

Pantera Capital aims to secure $1 billion, potentially setting a record for the largest crypto fund raised since May 2022.

In contrast, having gathered $7.2 billion for multiple technology sectors, Andreessen Horowitz has decided against increasing investments in its dedicated cryptocurrency fund, demonstrating a selective strategy in its financial commitments to the digital asset landscape.

Speaking of major VC firms, Vance Spencer, co-founder of Framework Ventures, recently shared his perspective on the cryptocurrency market. Despite maintaining a bullish outlook on crypto, Spencer anticipates a turbulent two years ahead. The co-founder of Framework Ventures advised:

You should be prepared for at least 24 months of roller coaster crypto as we cut rates from 5.5% back to 2-3%.

Featured image from Unsplash, Chart from TradingView

In the world of cryptocurrencies, innovative platforms continually redefine user engagement and investment opportunities.

Among these, BounceBit stands out with its pioneering CeDefi framework, which revolutionizes the way Bitcoin holders can interact with and benefit from their digital assets.

Simultaneously, we explore the Binance Megadrop, a novel token launch platform introduced by the cryptocurrency giant Binance.

This initiative marks a significant evolution from traditional airdrops, offering a more interactive and rewarding experience.

By seamlessly integrating Binance Simple Earn and the Binance Web3 Wallet, Megadrop provides early access to select Web3 projects like BounceBit, facilitating a deeper connection between emerging projects and the crypto community.

This article aims to equip readers with the knowledge to maximize their participation and rewards in this new era of token launches.

BounceBit – A Technical Deep Dive 1.1 Project Overview

BounceBit is an innovative blockchain platform that leverages a CeDefi (Centralized Decentralized Finance) framework to transform Bitcoin from a static asset into a dynamic, yield-generating tool. This platform empowers Bitcoin holders with new mechanisms to participate actively in the network through a variety of staking and lending options.

The core of BounceBit’s technology stack is built on a robust Layer 1 blockchain designed specifically to accommodate both centralized and decentralized financial operations. This dual approach aims to maximize security, efficiency, and scalability while maintaining user sovereignty over their assets.

The main objective of BounceBit is to democratize access to high-yield opportunities that were previously accessible only to large financial institutions or sophisticated investors. By doing so, BounceBit seeks to open up the Bitcoin market to a broader audience, allowing for more inclusive participation and innovation.

The CeDefi framework central to BounceBit merges the trust and regulatory compliance of centralized finance (CeFi) with the transparency and autonomy of decentralized finance (DeFi). For Bitcoin holders, this means enhanced liquidity, lower risk in yield strategies, and access to diversified financial services without relinquishing control of their assets.

1.2 Technical Mechanisms Blockchain Infrastructure

BounceBit operates on a custom-designed blockchain that supports both traditional and innovative crypto activities. This infrastructure facilitates seamless interactions between on-chain and off-chain environments, ensuring that users enjoy the benefits of fast transactions and robust security mechanisms inherent in blockchain technology.

Tokenomics and $BB Token Utility

The $BB token plays a multifaceted role within the BounceBit ecosystem. It is used as a medium of exchange, a unit for paying transaction fees (gas), and a tool for governance, allowing token holders to vote on important protocol decisions.

The economic model of the $BB token is designed to promote a sustainable ecosystem growth, with mechanisms in place for staking rewards, transaction fee sharing, and community funding.

Innovative Features:

• Dual-Token PoS System: This system allows validators to accept two forms of tokens, enhancing network security and stakeholder inclusivity.
• Native LSD (Liquid Staking Derivative) Module: It enables users to stake their Bitcoin or $BB tokens and receive a liquid staking derivative, which can be used within the network or traded in secondary markets.
• Liquid Custody: A novel feature that provides users with tokens representing their staked assets, offering liquidity while the underlying assets remain securely staked.

1.3 Key Features and Value Proposition BTC Restaking and Liquid Staking Derivative:

BounceBit introduces BTC restaking, where users can re-stake their Bitcoin through a regulated, secure process that converts their holdings into staked derivatives. This process not only ensures asset security but also enhances liquidity and yield-generation potential.

BounceClub

An on-chain social platform where users can interact, share insights, and access decentralized financial services through a user-friendly interface. This fosters a strong community and drives engagement within the BounceBit ecosystem.

Value Proposition

For stakeholders, BounceBit offers a secure and innovative platform to increase the utility and earning potential of their Bitcoin holdings. By combining the strengths of CeFi and DeFi, BounceBit provides a compelling alternative to traditional financial products, offering higher transparency, improved returns, and reduced entry barriers to various financial strategies.

In essence, BounceBit’s unique features and strong value proposition make it a leading contender in the evolving crypto landscape, aiming to transform the way Bitcoin and other cryptocurrencies are viewed and utilized in the broader financial sector.

2. Guide to Maximizing Rewards on Binance Megadrop 2.1 Understanding Binance Megadrop

The Binance Megadrop is an innovative token launch platform that integrates Binance Simple Earn and the Binance Web3 Wallet to offer users a more interactive and rewarding experience.

Its primary goal is to provide early access to promising Web3 projects before they are officially listed on Binance, thereby reinventing the traditional airdrop mechanism. This platform aims to combine user engagement with education and reward, positioning itself as a unique interactive experience within the cryptocurrency space.

Access and Participation

You can access the Megadrop by logging into your Binance account and navigating to the Megadrop section under the “More” menu. Here, you can view ongoing projects, select one to participate in, and start completing various tasks to earn rewards.

2.2 Earning Points and Rewards Locking BNB

One of the primary methods to earn points is by locking BNB. Users can navigate to the ‘Lock BNB’ section within the Megadrop project page, select a subscription period, and lock their BNB.

Longer subscription periods generally yield higher scores, reflecting a greater commitment to the project.

Maximizing Your Rewards with Extended Lock Periods:

For participants looking to maximize their potential rewards, consider opting for the longest available subscription period.

Locking your BNB for 120 days is particularly advantageous, as it typically offers the highest score multipliers. This extended lock period not only reflects a strong commitment to the project but also significantly enhances your chances of earning substantial rewards.

Completing Web3 Quests

Another method to accrue points is by completing Web3 quests.

These quests might involve interacting with the project’s smart contracts or completing specific tasks within the Binance or project ecosystem. Detailed instructions and tutorials are provided for each quest to guide users through the process.

Points System and Score Calculation

The total score a user can accumulate is the sum of the points from locked BNB and completed quests.

Points from locked BNB are calculated based on the amount and duration of the lock, while points from quests may include bonuses for completing all available quests. The formula typically looks something like:

Total Score = (Locked BNB Score * Web3 Quest Multiplier) + Web3 Quest Bonus.

2.3 Strategic Participation Tips

To maximize rewards, users should consider locking their BNB as soon as the Megadrop starts, and for the longest duration feasible, as earlier and longer commitments often result in higher scores.

It’s also advantageous to complete all available Web3 quests to benefit from any multipliers or bonuses.

Timing is crucial in the Megadrop. Participating early in a project’s listing cycle and staying engaged until the end can significantly influence the total score, especially if the participation metrics are competitive.

Reward Distribution

Rewards are usually distributed after the Megadrop event concludes. The final score calculations are made at the end of the participation period, and rewards are then credited to users’ spot wallets on Binance.

It is vital to monitor the project page for updates on the distribution schedule and any potential changes based on project dynamics or Binance policies.

3. BounceBit in Binance Megadrop 3.1 Participation Details

BounceBit’s participation in the Binance Megadrop is a significant event marked by meticulously planned phases. The Megadrop period for BounceBit is scheduled from April 26, 2024, at 00:00 UTC to May 12, 2024, at 23:59 UTC.

During this period, users can lock their BNB and engage in various tasks to earn points and rewards. BounceBit will be officially listed on Binance on May 13, 2024, with trading pairs including BB/BTC, BB/USDT, among others. This listing is an important milestone as it facilitates broader accessibility and liquidity for the $BB token.

The initial circulating supply of $BB tokens at the time of listing will be 409,500,000, which constitutes 19.5% of the total token supply. The Megadrop itself allocates 168,000,000 $BB tokens, representing 8% of the maximum token supply, to be distributed among participants based on their total scores.

Web3 Quests and Rewards

Participation in Web3 quests is a crucial component of the Megadrop event for BounceBit. One example of such a quest is “Stake 0.0001 BTCB to BounceBit,” which will be available on May 13, 2024, starting at 06:00 UTC.

These quests are designed to familiarize users with BounceBit’s technology and encourage active engagement with the platform. Completing these quests not only contributes to users’ total Megadrop score but also offers a practical introduction to using BounceBit’s services.

BounceBit’s innovative approach to Bitcoin restaking and its integration with Binance’s Megadrop provides unique opportunities for users to engage with and benefit from the evolving digital asset ecosystem. Here are several calls to action that can help you maximize your involvement and benefit from these opportunities:

For years, Bitcoin miners have toiled away, fueled by the promise of block rewards – newly minted coins earned for validating transactions. But a recent trend is changing the game, with transaction fees quietly usurping block rewards as the primary source of miner income. This shift, while unexpected, presents both opportunities and challenges for the future of Bitcoin.

Bitcoin: Transaction Fees On The Rise

Ki Young Ju, CEO of cryptocurrency analysis firm CryptoQuant, recently highlighted a significant change in the Bitcoin mining landscape. Transaction fees, once a minor contributor to miner income, have seen a dramatic rise. According to CryptoQuant’s data, transaction fees now account for over 7% of miners’ total income, a stark contrast to the meager 1% reported just two years ago.

Building apps on #Bitcoin has significantly changed miners’ income streams.

Transaction fees now account for over 7% of their total revenue, up from 1% two years ago.

This trend has persisted for the last four weeks and could potentially strengthen the network’s fundamentals. pic.twitter.com/YVbdmLXB5c

— Ki Young Ju (@ki_young_ju) May 7, 2024

A Boon For Network Stability?

This surge in transaction fees isn’t just about boosting miner profits; it has the potential to significantly impact the overall health of the BTC network. The increasing number of applications built on the Bitcoin blockchain translates to more transactions and, consequently, higher fee revenue for miners.

This, in turn, could incentivize continued mining activity even as block rewards get halved roughly every four years – a pre-programmed mechanism designed to control the total supply of Bitcoin.

The Double-Edged Sword Of Fees

The rise of transaction fees presents a double-edged sword for Bitcoin. While it offers miners a more sustainable income stream and potentially strengthens network security, it also raises concerns about transaction speed and user experience.

As miners prioritize maximizing profits, they might be tempted to favor transactions with higher fees, leading to slower processing times for regular users and potentially driving up overall transaction costs.

A Ripple Effect Across The Ecosystem

The changing dynamics of crypto mining extend beyond just miners. A fee-driven network could have a ripple effect across the entire Bitcoin ecosystem. Investors and users might need to adjust their strategies as transaction costs fluctuate. The valuation of the crypto asset itself could also be impacted, with increased fees potentially deterring new users from entering the market.

Navigating The New Frontier

The rise of transaction fees marks a new frontier for Bitcoin. While it presents exciting possibilities for miner profitability and network stability, it also necessitates careful consideration of potential drawbacks.

Finding the right balance between miner incentives and user experience will be crucial for Bitcoin’s continued success. Stakeholders across the ecosystem, from miners and developers to investors and users, will need to adapt and innovate to ensure a future for Bitcoin that is secure, efficient, and accessible to all.

Featured image from Futuros Abrelatam, chart from TradingView

Bitcoin is looking to enter into the $65,000 price terrain again amidst price volatility in the past 24 hours. The latest numbers from two different metrics suggest this could become a reality soon and Bitcoin could be on track to going on a price rally. As noted by a crypto analyst on social media, the Bitcoin funding rate and basis points to a “leg up.” 

Bitcoin Is Getting Ready

According to a post on social media by Will Clemente, a popular crypto analyst, both the funding rate and 3-month annualized basis for Bitcoin are starting to cool off after briefly reaching negative readings in the past few weeks. What this means is that long-position trades for the asset are starting to dominate as investors regain confidence in its potential price action in the coming weeks.

Related Reading: Shiba Inu Whale Moves 1.7 Trillion SHIB As Price Struggles, Where Are They Headed?

Did a nice look-through of the market for the first time in a week.

Funding rates & Basis have both cooled off after briefly reaching negative readings while stablecoin supplies are rising again. Looks like we’re consolidating before the next leg up. pic.twitter.com/OHLkMrTqUY

— Will (@WClementeIII) May 7, 2024

A detailed look into the chart shared by Clemente shows that the funding rate, in particular, has been ranging in negative readings since the last week of April and reached its lowest on April 22. However, the current price action has pushed the funding rate into positive territory again. The BTC funding rate has rebounded from a negative rate of -0.0050% on May 4 to a current rate of 0.0090%, based on information from Coinglass. Interestingly, this increase in funding rate translated to a concurrent price increase for Bitcoin, with the crypto reaching as high as $64,000 on May 5. 

While the funding rate might seem low, it indicates the sentiment from investors is starting to become positive. When the funding rate is positive, traders who have long positions pay a funding fee to traders who have short positions. An increase in this funding rate means more traders are willing to pay more to maintain long positions, which in turn could cause an increase in the crypto’s price.

Similarly, Clemente noted in his analysis that the 3-month annualized rate for Bitcoin is now starting to move back up. A consequence of this is that more investors will be willing to buy spot Bitcoin and simultaneously selling a futures contract that expires in three months. Interestingly, this annualized rate is currently ranging around 5% to 10% on Binance and Bybit, which is generally a bullish signal for many investors.

The total supply of stablecoins has started rising again, which could signal that investors are getting ready to put money into Bitcoin. According to on-chain data, wallets holding between 100 and 1,000 BTC have upped their buying in the past two months.

Related Reading: Dogecoin Holders In Profit across 82%, What About Shiba Inu?

Despite the correction for Bitcoin in April, these addresses continued to acquire more Bitcoins. Analyst Willy Woo noted that an accumulation of this size has never been seen from “high net worth Bitcoin holders” over a 2-month period.

At the time of writing, Bitcoin is trading at $62,350.

Ethereum co-founder Vitalik Buterin, along with collaborators Sam Wilson, Ansgar Dietrichs, and Matt Garnett, has proposed a new Ethereum Improvement Proposal (EIP) numbered 7702, designed to significantly enhance the functionality of Ethereum’s externally owned accounts (EOAs). EIP-7702 aims to integrate smart contract functionalities temporarily into EOAs, a transformative concept that might redefine user interactions on the Ethereum network.

Evolution Of Account Abstraction On Ethereum

Ethereum’s account model includes two primary types: externally owned accounts (EOAs) and contract accounts. EOAs are controlled by private keys and have limited capabilities and security features, which restrict their use in more complex transactions typically reserved for smart contracts.

To address these limitations, several EIPs have been introduced:

• EIP-4337: Implemented in March 2023, it established a framework allowing smart contracts to act as accounts that can validate and execute transactions, known as User Operations (UserOps). This proposal significantly enhanced user experience by integrating advanced functionalities like biometrics, especially in applications developed by platforms such as Polygon and Coinbase.
• EIP-3074: Proposed before EIP-4337, it aimed to empower EOAs by allowing them to delegate their transaction authority to smart contracts temporarily. This proposal included two new opcodes, AUTH and AUTHCALL, to facilitate this delegation, although it raised security concerns regarding potential misuse by malicious contracts.
• EIP-5003: Building on EIP-3074, this proposal introduced the AUTHUSURP opcode to enable a permanent transformation of an EOA into a smart contract account, addressing some compatibility issues with EIP-4337 but also creating potential fragmentation in account abstraction methodologies.

Innovative Aspects of EIP-7702

The introduction of EIP-7702 is a response to the complex landscape shaped by its predecessors. It proposes a leaner, more integrated approach by allowing EOAs to temporarily adopt smart contract code during transactions, thereby combining the security and simplicity of EOAs with the versatility of smart contracts.

EIP-7702 has risen pic.twitter.com/bwInPdWaE5

— ً (@lightclients) May 7, 2024

Here’s how EIP-7702 works: At the start of a transaction, the EOA’s contract_code field is temporarily set to a specific smart contract code necessary for the transaction. This code executes the transaction, leveraging smart contract functionalities. Upon completion of the transaction, the contract_code is cleared, reverting the EOA to its original state.

This process bypasses the need for new opcodes and the associated hard forks, as it uses callable functions (verify for AUTH and execute for AUTHCALL) instead, which can integrate seamlessly with the existing Ethereum infrastructure.

Jarrod Watts, a developer relations engineer at Polygon, highlighted the significance of EIP-7702, remarking, “Vitalik just proposed EIP-7702. It’s one of the most impactful changes Ethereum is going to have… EVER.” The community’s reaction underscores the transformative potential of EIP-7702 in bridging the gap between traditional EOAs and more dynamic smart contract accounts.

“EIP-7702 represents a fusion of the flexibility of smart contracts with the foundational security model of EOAs,” Watts commented. “It’s a significant stride towards making Ethereum more accessible and secure for everyday users.”

Vitalik just proposed EIP-7702.

It's one of the most impactful changes Ethereum is going to have… EVER.

So, here's everything you need to know about how it works and how we got here:

— Jarrod Watts (@jarrodWattsDev) May 8, 2024

If adopted, EIP-7702 could fundamentally change how users interact with decentralized applications (dApps) and manage digital assets on the Ethereum network. By enabling EOAs to temporarily operate with the advanced features of smart contracts, EIP-7702 promises a seamless, more secure user experience that could accelerate the adoption of Ethereum’s more sophisticated capabilities.

However, the success of EIP-7702 depends on thorough testing, community consensus, and careful consideration of security implications, particularly how temporary smart contract codes are managed and revoked.

At press time, ETH traded at $2,997.

Nigeria’s once-tepid stance on cryptocurrency has taken a sharp turn towards prohibition. The Nigerian government, citing concerns over Naira manipulation, is proposing a ban on P2P (Peer-to-Peer) trading platforms that utilize the local currency. This move, coupled with ongoing legal battles with major exchanges, throws the future of Nigerian crypto into uncertainty.

Naira Under Siege? The P2P Battleground

The Nigerian Securities and Exchange Commission (SEC) alleges that crypto participants and exchanges are manipulating the Naira’s value through P2P transactions. Emomotimi Agama, the newly appointed Director-General, suggests delisting the Naira from all P2P platforms as a remedy.

Agama highlighted the government’s resolve to combat the perceived threat, saying:

“This is one of the things we must do to save this space.”

The potential P2P ban would significantly restrict Nigerian crypto investors. P2P platforms offer a convenient and often cheaper way to buy and sell crypto using local currency compared to traditional exchange channels. With the Naira delisted, Nigerians would face hurdles in entering and exiting the crypto market, potentially hindering its growth and adoption.

Crypto Exchanges Feeling The Heat

The regulatory heat isn’t just scorching P2P platforms. Leading crypto exchange Binance, already embroiled in a months-long tussle with the Nigerian government, felt the brunt early on.

In March, Binance suspended all Naira-related services following the arrest of two executives and accusations of flouting regulations. The saga continues – Binance faces criminal charges, and its executives are entangled in a separate tax evasion battle with the Nigerian authorities.

Following Binance’s lead, OKX, another major crypto exchange, delisted the Naira from its P2P marketplace on May 3rd. While OKX didn’t explicitly cite regulatory pressure, their explanation of a “change in local market requirements” suggests a cautious approach in the face of Nigeria’s tightening grip.

Unanswered Questions And Uncertain Future

The effectiveness of a P2P ban in curbing alleged manipulation remains to be seen. Crypto by its nature transcends borders, and Nigerians could potentially turn to international P2P platforms or alternative methods to circumvent restrictions. Additionally, the details of the proposed broader regulations targeting the local crypto industry are yet to be revealed.

The situation paints a bleak picture for Nigerian crypto enthusiasts. Local investors face limited options, major exchanges are wary of operating in the country, and the regulatory landscape remains opaque. While the government seeks to exert control, this clampdown might stifle innovation and push Nigerians towards unregulated avenues within the crypto space.

What Lies Ahead

Nigeria’s move against crypto P2P platforms is a significant development with potential ripple effects across Africa’s burgeoning crypto market. Whether the government’s concerns translate into effective regulations or stifle a burgeoning industry altogether remains to be seen. In the meantime, Nigerian crypto investors are left navigating a landscape fraught with uncertainty.

Featured image from Techopedia, chart from TradingView

Bankrupt cryptocurrency exchange, FTX has unveiled a new repayment plan aimed at reimbursing creditors and customers in full and offering billions in the form of compensation for the time value of their investment. 

FTX To Reimburse Customers In Full

In a press release on May 7, FTX disclosed that it would be repaying 98% of its customers at least 118% of allowed claims in cash. The insolvent crypto exchange had filed a new reorganization strategy with the United States Bankruptcy Court of Delaware.

Related Reading: Dogecoin Holders In Profit across 82%, What About Shiba Inu?

The reorganization plan, which involves the allocation of funds to customers affected by FTX’s fraud scheme, will involve a centralized distribution of all of the company’s assets during the time of its collapse in November 2022 to its creditors and customers. 

The crypto exchange has revealed that it has secured between $14.5 billion to $16.3 billion, after selling assets and properties owned by the company. This specifically includes assets under control of the “Chapter 11 debtors,” the Joint Official Liquidators of FTX Digital Markets Ltd., and FTX Australia, as well as various private parties which have participated in the recovery and repayment process. 

FTX’s repayment strategy outlines a comprehensive approach to repay creditors, both governmental and non-governmental. The crypto exchange has stated that it will make complete payments to non-governmental creditors based on the value of their claims determined by the Bankruptcy Court. 

On the other hand, a subordination arrangement is proposed for governmental creditors, prioritizing interest payments to primary classes of customers and creditors at up to 9%, executed in a timely manner. 

The repayment plan will also establish a unique category known as “convenience class,” specifically focusing on creditors with claims valued at $50,000 or less. This reorganization will effectively streamline the payment process for smaller creditors and expedite compensation. 

The exchange’s amended repayment strategy is still undergoing finalization and awaiting approval from the Bankruptcy Court. However, if the plan receives approval, it is expected that creditors will receive 118% of the value of their allowed claims within 60 days following the plan’s effective date. 

Key Settlements In Repayment Plan

In its new payment reorganization plan, FTX disclosed several settlements mutually agreed upon with primary economic stakeholders. As well as some that are still pending finalization and approval by the Court. 

One of the key settlements involves a resolution of the $24 billion in claims filed by the Internal Revenue Service (IRS). In exchange, FTX has agreed to make a $200 million cash payment and issue a $685 million subordinate claim. 

Additionally, FTX has proposed agreements with the IRS and the Commodities Futures Trading Commission (CFTC) to subordinate tax claims which arose after the commencement of the Chapter 11 cases. Furthermore, the crypto exchange revealed a previously approved settlement with the Joint Official Liquidators of FTX Digital Markets, Ltd., and BlockFi, the largest creditor of FTX. 

In a shocking development, American-based cryptocurrency asset management giant Grayscale Investments has withdrawn its Ethereum Spot Exchange-Traded Fund (ETF) proposal with the United States Securities and Exchange Commission (SEC). This ruling is made against the backdrop of regulatory ambiguity that surrounds exchange-traded funds in the US that are based on digital assets.

Grayscale Takes Back Its Ethereum Futures Trust (ETH) ETF

On Tuesday, May 7, Grayscale Investments filed its withdrawal of its Ethereum Futures Trust (ETH) ETF, a proposal that was submitted to the SEC under the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. The proposal which was filed in September last year and published in October, aimed at further integrating Ethereum into the US regulatory landscape and creating broader exposure for ETH.

A month after the request was published, the SEC postponed its final decision on whether to approve or disapprove the product, demanding additional time to access the ETH spot ETF. In March 2024, the regulatory watchdog delayed its ruling on the exchange fund again, citing more time to analyze the proposed rule change. However, nearly two months later, the firm decided to withdraw its request to convert the Ethereum Trust (ETHE) to a spot ETF.

This intriguing move came just two weeks after Grayscale filed an S-3 Registration Statement for its Ethereum Trust, marking a bold step in its Ether investment services. By submitting the S-3 registration statement, Grayscale intends to enhance the ETH Trust’s regulatory compliance and clarity. With the S-3 form filing, the asset company fulfilled all the requirements for the regulatory watchdog to review and rule on their ETH ETF proposal. 

In accordance with the Securities Act of 1933, the company submitted the S-3 form to the Commission. Grayscale made this significant step following NYSE Arca’s filing of Form 19b-4 for the firm’s Ethereum Trust.

The company intended to list its ETH ETF on NYSE Arca under the ticker ETHE and issue shares continuously upon the approval of NYSE Arca’s application on form 19b-4 to list shares and the effectiveness of form S-3 to register the shares. However, the only way that these shares were meant to be purchased was via a prospectus.

Crypto Community Views On The Development

Although the major motive behind Grayscale’s move has yet to be identified, there are speculations in the community regarding several potential reasons behind this.

Delving into the subject, Bloomberg Intelligence analyst James Seyffart claims the action was basically a trojan horse filing to produce similar conditions that permitted Grayscale to prevail in the GBTC litigation with the SEC.

Thus, he is guessing the SEC drafting a permission or rejection letter for an ETH futures ETF could be a possible reason Grayscale withdrew its fund.

ETH trading at $2,991 on the 1D chart | Source: ETHUSDT on Tradingview.com

Genesis Digital Assets Limited (GDA), a leading force in the global Bitcoin mining sector, has partnered with YPF Luz, a subsidiary of Argentina’s state-owned energy company YPF. Together, both partners have established a new Bitcoin mining facility that capitalizes on an innovative energy resource: stranded gas from oil fields.

Argentina Will Mine Bitcoin

This facility, situated in Rincón de Los Sauces in the province of Neuquén, is designed to transform what would otherwise be waste into a powerful energy source for high-intensity computing processes associated with Bitcoin mining.

The facility operates with a total power capacity of 7 megawatts (MW), supported by an additional 1 MW of backup power, housing 1,200 Bitcoin mining machines. It is powered by the Bajo del Toro Thermal Power Plant, collaboratively managed by YPF, Norwegian energy giant Equinor, and YPF Luz.

The energy for this mining operation comes from stranded gas—natural gas that is liberated during oil extraction but not captured for sale or distribution, typically because it is not economically viable to transport it from remote or marginally productive fields.

Stranded gas usually poses a disposal problem, often being flared into the atmosphere, which contributes significantly to greenhouse gas emissions. The new facility’s approach not only prevents this environmental harm but also uses the gas to generate electricity, effectively making productive use of a previously wasted resource.

According to recent studies, including a working paper from MIT, the repurposing of methane through techniques like those employed by GDA can reduce carbon dioxide equivalent (CO2e) emissions by between 25% and 63%. This is critical because methane is a potent greenhouse gas, responsible for about a third of current global warming.

Abdumalik Mirakhmedov, Executive President and Founder of GDA, emphasized the project’s environmental and operational advantages in a statement: “The opening of our first data center in South America is an important step in our geographic diversification efforts. This will be yet another opportunity to show the world that Bitcoin mining can have a positive effect on the environment and can be fully integrated into local communities.”

Strategic Implications For Argentina And Beyond

Argentina presents a unique landscape for such endeavors due to its substantial energy resources, favorable political climate, and a strong crypto ethos among its population. The country has been experiencing high inflation rates, which has increased the local populace’s reliance on cryptocurrencies as a hedge against economic instability.

Martín Mandarano, CEO of YPF Luz, also noted the project’s strategic fit with Argentina’s energy policies. “This project with GDA allows us to bring YPF and Equinor, two companies committed to reducing the carbon footprint of their exploration activities, an adaptable and sustainable flare gas use solution,” Mandarano stated. He further highlighted that YPF Luz had previously pioneered the generation of electricity for cryptocurrency mining from flare gas in 2022, positioning the company as a leader in innovative energy solutions.

The project also marks a significant point of expansion for GDA, which operates 20 industrial-scale data centers across North America, South America, Europe, and Central Asia, further cementing its position as a major player in the Bitcoin mining industry. With a total power capacity exceeding 500 MW globally, GDA continues to drive innovation in the integration of renewable and waste-derived energy sources into the BTC mining sector.

At press time, BTC traded at $62,406.

The Securities and Exchange Commission (SEC) has submitted its remedies reply brief in its ongoing legal battle with Ripple Labs, accompanied by supporting exhibits. This filing marks a pivotal moment in the litigation as it is the final brief before Judge Torres will make her remedies ruling.

SEC Files Final Brief As Decision Day Looms For Ripple

Pro-XRP lawyer Bill Morgan provided a comprehensive breakdown of the SEC’s final brief via X, highlighting the nuances of the legal arguments and the potential ramifications for Ripple and its operations. One of the main points of contention remains the issue of financial harm to institutional buyers of XRP.

The SEC maintains that financial harm should include not only direct losses but also missed opportunities for greater profits due to less favorable terms in the purchase of XRP. Morgan noted, “The SEC reply brief does not add anything new to the argument about financial harm.” He added skepticism about the likelihood of disgorgement, stating, “I do not think disgorgement will be ordered but the outcome is not obvious.”

Additionally, the SEC’s reply brief strongly advocates for a permanent injunction that would restrict Ripple’s future sales of XRP, particularly to its On-Demand Liquidity (ODL) customers. According to Morgan, “The SEC argues that an injunction should be granted because Ripple’s business is almost currently almost entirely the sale of XRP to institutions.”

Furthermore, the SEC asserts that Ripple has abandoned several defenses it previously claimed, such as the extra-territoriality of its sales to accredited investors, particularly in relation to institutional transactions. This, according to the SEC, indicates a strategic retreat by Ripple in the face of unfavorable legal analysis and precedents.

In response to the SEC’s filing, Ripple’s Chief Legal Officer, Stuart Alderoty, expressed strong dissent, criticizing the SEC for its approach: “More of the same from the SEC — failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes.” He continued, “The good news is that we are closer than ever to putting this lawsuit behind us, though unfortunately, many are just starting the journey. We trust the Court will approach the remedies phase fairly.”

Alderoty also made a pointed critique of the SEC’s respect for international regulatory frameworks: “And just when you think the SEC can’t sink any lower, if you are a financial regulator outside the US and have done the hard work of establishing comprehensive crypto licensing frameworks, know that the SEC has no respect for you and thinks you are handing out the equivalent of fishing licenses.”

More of the same from the SEC — failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes. The good news is that we are closer than ever to putting this lawsuit behind us, though unfortunately, many are just starting the journey. We trust the Court… https://t.co/JGhxAtOuk1

— Stuart Alderoty (@s_alderoty) May 7, 2024

Financially, the stakes are high. The SEC is pursuing fines and penalties that could total around $2 billion, highlighting the severity with which it views the alleged regulatory violations. Ripple, countering this, has proposed a maximum penalty of just $10 million, arguing that the SEC’s demands are disproportionately high compared to penalties imposed in similar cases.

Ripple contends that it has instituted significant changes to its XRP institutional sale practices to prevent future infractions, signaling its willingness to comply with regulatory norms while challenging what it perceives as excessive punitive measures. Moreover, the company argues that it didn’t cause monetary losses to institutional investors.

At press time, XRP traded at $0.5218.

Reports unveiled that part of the stolen funds from crypto exchange Poloniex have been moved for the first time. After six months, one of the identified accounts where the exploit proceedings were sent in November 2023 transferred $3.5 million to a crypto mixer.

Stolen Funds Transferred For The First Time

On Monday night, one of the labeled addresses holding the stolen assets moved the funds to a US-banned Tornado Cash. The transfers are the first time since the crypto heist that the hacker has moved part of the money to launder it.

Per Wu Blockchain’s report, the Poloniex hacker transferred 100 ETH, worth around $308,000, from address 0x3E…fDFd to the mixer. Later, PeckShieldAlert informed that the address had sent 1,100 ETH, worth nearly $3.5 million, to Tornado Cash.

#PeckShieldAlert #Poloniex hacker- labeled address 0x3e94…3fdfd has transferred 1.11k $ETH (worth ~$3.4m) to #Tornadocash pic.twitter.com/JIDG0pYfUH

— PeckShieldAlert (@PeckShieldAlert) May 7, 2024

In November 2023, the Justin Sun-led Poloniex Exchange suffered a breach of security that saw the theft of $125 million. At the time, blockchain security company PeckShield informed of suspicious activity from the platform’s hot wallets. As a result, Poloniex’s team froze the accounts “for maintenance.”

However, it proved unfruitful as the hackers had already stolen millions of dollars worth of crypto assets from the addresses. According to the reports, the exchange saw losses of $56 million in Ether (ETH), $48 million in TRON (TRX), and $18 million in Bitcoin (BTC). Additionally, assets like Pepe (PEPE) and Magic (MAGIC) were stolen.

Crypto Hacker Ignores Warnings

Tron founder and exchange owner Justin Sun initially offered the hackers a 5% Whitehat reward for returning the crypto assets. Later, Sun raised the offer from approximately $6 million to $10 million, reaching the industry standard of 10%.

Unfortunately, the attackers didn’t take Sun’s offer despite his clear message that the assets would become useless. The Tron founder sent $0.10 worth of ETH to the already-identified wallets where the stolen funds had been sent.

In the message, Sun stated that the addresses had been marked as non-eligible. He also warned investors that trading with the hacker could freeze their accounts.

The Poloniex hack has been attributed to the North Korean hacker group Lazarus Group, which is known for its high-profile attacks. According to CoinGecko data, the exploit caused the centralized exchange to lose significant user trust, with its trust score falling to 5 out of 10 points.

The most recent transfers seem to confirm the funds will never be returned, and a recovery is almost impossible, as stated by Wu Blockchain. The attacker used privacy tools to veil the funds despite being unable to send the crypto assets directly to exchanges.

It’s worth noting that global regulators have misused these tools for criminal purposes as an excuse to crack down and scrutinize the privacy sector. Nonetheless, financial privacy continues to be important for users’ security, and the use of privacy tools can aid in protecting investors.

Ultimately, the increasing number of crypto hacks remains a concern for the community. Over half a billion dollars were stolen by malicious actors from crypto projects during Q1 2024. Despite the significant decrease in April, experts keep urging crypto investors to beware of any suspicious activity and reinforce their security measures.

In a recent interview with CNBC, Securities and Exchange Commission (SEC) Chair Gary Gensler reiterated his concerns regarding the crypto industry, emphasizing its alleged association with scams, fraud, and compliance issues within the broader market. 

Compliance With Securities Laws In Crypto

Gensler began by acknowledging that while cryptocurrencies constitute a relatively small segment of the overall financial markets, they allegedly exert an “outsized” influence regarding scams, fraud, and problems due to non-compliance with existing securities laws. 

The SEC Chair stressed that many digital assets fall under the classification of securities according to interpretations by the US Supreme Court, making compliance with securities regulations a crucial aspect of the industry.

The SEC Chair underlined the commission’s responsibility to safeguard investors and ensure that those soliciting investments in “securities” adhere to the law. 

Gnesler expressed concern over the “lack of required disclosures” and investor protections in the crypto space, drawing attention to the alleged “discrepancy” between the level of transparency provided by traditional public companies during earnings seasons and the limited disclosure practices of crypto assets.

In his address, Gensler also raised concerns about “conflicts of interest” observed among intermediaries operating within the “centralized crypto market.” 

Gensler highlighted actions that would be considered “unacceptable” within traditional financial exchanges, such as the New York Stock Exchange (NYSE), and emphasized the importance of preventing trading activities that work against the interests of investors but did not provide an example of these alleged practices.

SEC’s Position On Ethereum Under Review

Addressing allegations of misleading Congress regarding the SEC’s stance on Ethereum’s classification, Gensler clarified that the commission accurately shares information during congressional hearings and refrains from discussing ongoing investigations or expressing opinions on compliance with the law. 

Gensler confirmed that the commission currently reviews the classification of cryptocurrencies like Ethereum as genuine securities tradable on exchanges.

It’s worth noting that the SEC chairman previously suggested that only Bitcoin holds the commodity classification, leaving other cryptocurrencies, including Ethereum, outside of this designation.

The SEC Chair further discussed the recent volatility and unconventional trading patterns exhibited by stocks like Trump Media and meme stocks. Gensler underscored the SEC’s role in ensuring that investors receive accurate and complete information, regardless of the purpose behind their investments. 

He concluded that while individuals have the freedom to form their own views based on accurate disclosures, market manipulation and misleading the public are strictly prohibited.

As of the latest update, Ethereum is trading at $3,066, reflecting a 2.8% increase over the past week. However, the token has experienced a marginal decline of 0.5% in the last 24 hours, with its price potentially depending on the ability of the $3,000 support level to prevent further downward movement.

Featured image from Shutterstock, chart from TradingView.com 

The crypto community’s attention has been drawn to a Shiba Inu whale that recently moved trillions of the meme coin. Given the magnitude of these transactions, community members have sought to discover where these tokens were transferred and the motive behind them.

Shiba Inu Whale Moves 1.7 Trillion SHIB

On-chain data shows that the whale (crypto trading platform Robinhood) moved 1.7 trillion SHIB tokens from one of its wallets to another in two separate transactions, with 875 billion SHIB tokens moved in the first transaction and the same amount transferred in the second. 

The crypto platform has become known for moving enormous amounts of SHIB tokens between their wallets, possibly to meet demand from customers. Bitcoinist recently reported how the trading platform moved 3 trillion Shiba Inu tokens in one transaction. Robinhood also had at one point accumulated 332 billion SHIB at a go. 

Robinhood’s most recent transaction follows the platform’s recent listing of the meme coin for its New York customers. As such, these whale transactions could have been made to fulfill buy orders from these customers. Whale transactions like Robinhood’s signal a bullish outlook for the meme coin and could spark price surges for the meme coin. 

Besides the whales, other Shiba Inu investors look to be actively accumulating the meme coin with data from the on-chain analytics platform IntoTheBlock, which shows that the bid-ask volume imbalance is bullish for the meme coin. Another bullish signal for the meme coin is the increase in token burns. Data from the burn tracking website Shibburn shows that the token burns have increased by almost 30% in the last seven days. 

Shiba Inu Lead Developer Teases New Project

Shiba Inu’s lead developer, Shytoshi Kusama, recently shared a cryptic GIF on his X (formerly Twitter) platform with the word “Evita,” which means “life” in Latin. Another Shiba Inu developer, Kaal Dhairya, also shared a GIF on his X platform that had the word “Evita” on it, suggesting that the team might be working on another project in the Shiba Inu ecosystem. 

Members of the Shiba Inu community have already begun trying to decode what these cryptic tweets could mean, but nothing has been made out of them so far, with only mere speculations. However, this is undoubtedly something to keep an eye on, considering that Kusama has in the past made cryptic posts that usually serve as a prelude to a big announcement.  

At the time of writing, Shiba Inu is trading at around $0.00002391, down over 3% in the last 24 hours, according to data from CoinMarketCap.