bitcoinist.com

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.

A recent report by OpenSecrets.org revealed that cryptocurrency industry Super Political Action Committees (PACs) have accumulated a staggering $102 million war chest to exert their influence on the upcoming 2024 US congressional elections. 

The data, compiled by Public Citizen, highlights the sector’s concerted efforts to sway elections in favor of pro-crypto candidates and impede regulatory measures to ensure compliance within the industry.

Crypto Billionaires Lead Funding Surge

Rick Claypool, a research director for Public Citizen and author of the report, emphasized that a fresh wave of crypto corporations, executives, and their allies have returned to the political landscape, pouring millions of dollars into campaigns. 

Their objectives reportedly include influencing elections, supporting cryptocurrency-friendly candidates, and obstructing accountability measures to enforce industry regulations.

The report further discloses that over half of the funds raised originate from direct corporate expenditures, primarily attributed to Coinbase and Ripple Labs.

The remaining contributions come from billionaire crypto executives and venture capitalists, including significant sums from the founders of venture capital firm Andreessen Horowitz, the Winklevoss twins, and Coinbase CEO Brian Armstrong.

Of the eight corporate Super PAC donors, four have either settled or faced charges by the US Securities and Exchange Commission (SEC) for alleged violations of securities laws. 

According to the report, the largest crypto Super PAC, Fairshake Political Action Committee, has resorted to running political ads that deliberately avoid any mention of cryptocurrencies, employing a “manipulative strategy” to sway voters.

The report also highlights the intervention of crypto Super PACs in primary races for the 2024 elections. Out of the six completed primaries, only one crypto-backed candidate suffered defeat. 

However, eleven primary races involving crypto-backed candidates are still ongoing. Moreover, the crypto Super PACs have pledged to allocate funds to Senate races in Ohio and Montana, two crucial battleground states in the general election.

Voters In ‘Swing States’ Demand Reasonable Regulations

A separate study conducted by Digitial Currency Group (DCG), a global investor in blockchain companies, found that more than 20% of registered voters in key “swing states,” or states where support for political parties is divided, consider digital assets an important issue in the 2024 election. 

The survey, conducted in partnership with The Harris Poll and encompassing Michigan, Ohio, Montana, Pennsylvania, Nevada, and Arizona, reveals that a pro-crypto stance can be “advantageous” for policymakers and candidates. It emphasizes the desire among voters for “reasonable regulations” that protect consumers without stifling innovation.

Julie Stitzel, Senior Vice President of Policy at DCG, highlighted the poll’s findings, stating that the digital asset industry is at the forefront of swing state voters’ minds and that a positive stance on virtual assets can benefit policymakers and candidates. 

Kristin Smith, CEO of the Blockchain Association, echoed this sentiment, emphasizing the growing relevance of digital assets in shaping the electoral landscape in 2024.

Featured image from Shutterstock, chart from TradingView.com 

While Bitcoin continues to trade within the $60,000 to $70,000 range, a new wave of optimism is emerging from on-chain analysis. Willy Woo, an on-chain analyst, took to X on May 7 to point out an exciting development: high-net-worth BTC holders have been rapidly accumulating the coin. 

High Net-worth Whales Accumulating

In a chart, the analyst noted that whales, entities holding between 100 and 1,000 BTC, have been gobbling up BTC over the past two months. Their involvement, Woo says, has been the “strongest buying spree” by such whales in recent history. 

However, while there is excitement, some argue that this cohort’s sharp spike in BTC accrual could be due to spot Bitcoin exchange-traded fund (ETF) issuers. Since the United States Securities and Exchange Commission (SEC) approved the first spot ETFs in January, these issuers, including Fidelity, Bitwise, and ProShares, now control over 850,000 BTC.

Even so, Woo counters this argument, emphasizing that this uptick is not due to the involvement of these Wall Street players. The analyst explained that, based on available data, these entities are “distinct” and have been picked out through forensic clustering techniques. 

Moreover, Woo observes that publicly available spot ETF flow data reveals a discrepancy. For instance, while these whales have been purchasing BTC over the two months, amassing over 220,000 BTC according to network activity, spot ETF flows have been declining, only scooping up roughly 165,000 BTC during this period.

This deviation suggests that investors, including institutions, gaining BTC exposure via spot ETFs cannot account for the entire whale activity. 

Bitcoin Buying Pressure Sustained, Will Bulls Break $73,800?

 

Additionally, Woo clarifies that the accumulation over the past two months wasn’t a single, massive purchase. Instead, the analyst explains, a clear pattern of sustained buying is observed over 30 days within two months. This makes it evident that their approach was deliberate, and they were eager to strategically accumulate when prices were depressed. 

That whales are involved and actively buying, based on on-chain activity, is bullish. The coin has moved horizontally over the past two months since BTC prices peaked at $73,800.

Early this month, Bitcoin prices plunged to as low as $56,500 before recovering steadily over the weekend. For the uptrend to remain, there must be a conclusive close above $70,000 and, ideally, $73,800. Analysts predict an eventual spike to $100,000.

As the US Securities and Exchange Commission (SEC) continues to scrutinize crypto industry players, including Robinhood, Binance, Coinbase, and Ripple, the Chair of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, warns of an impending surge in enforcement actions. 

Crypto Faces Inevitable Wave Of Enforcement Actions

At the Milken Institute’s 27th annual Global Conference, Behnam emphasized the lack of regulatory framework and transparency within the growing crypto industry, which he believes will inevitably lead to more fraud and manipulation cases.

Behnam anticipates a “cycle of enforcement actions” within the next six months to two years, driven by the rapid appreciation of digital assets and heightened interest from retail investors. 

As a regulator, Behnam expresses concerns about the absence of clear rules and tools typically employed by regulators to maintain market integrity. Without proper regulations in place, Behnam argues that fraud and manipulation will persist.

The recent issuance of a Wells Notice by the SEC against Robinhood further highlights the regulatory pressure faced by industry players. 

Dan Gallagher, Chief Legal, Compliance, and Corporate Affairs Officer at Robinhood, expressed disappointment in the SEC’s decision, asserting that the assets listed on their platform are not securities. Gallagher remains confident in Robinhood’s position and its commitment to regulatory compliance.

SEC Commissioner Hester Peirce, on the other hand, is known for her pro-crypto stance. She has previously criticized the lack of clear rules and the SEC’s skeptical approach towards cryptocurrencies. Peirce advocates for improved and updated regulatory frameworks that allow the industry to thrive and encourage innovation.

CFTC And SEC Lock Horns 

During his remarks, Behnam further emphasized that without action from Congress and increased regulatory transparency, enforcement agencies are likely to resort to lawsuits. 

The CFTC Chair acknowledges the challenges of getting legislation passed but notes the momentum and desire from lawmakers to close regulatory gaps, particularly in stablecoin legislation.

The ongoing interagency conflict between the CFTC and the SEC regarding classifying major cryptocurrencies further complicates regulatory matters. 

The CFTC recognizes cryptocurrencies like Bitcoin, Ethereum, and Litecoin as commodities, while the SEC’s current stance, led by Chair Gary Gensler, limits the commodity classification solely to Bitcoin. 

This discrepancy has sparked debates within the industry, with legal experts suggesting that the CFTC’s position challenges the SEC’s authority.

The need for comprehensive regulatory frameworks becomes increasingly apparent as the crypto industry continues to evolve and gain mainstream attention. 

The outcome of ongoing enforcement actions and regulatory developments will significantly shape the industry’s future, impacting market participants and investors.

Featured image from Shutterstock, chart from TradingView.com

Major cryptocurrencies have exhibited an interesting price dynamic in the past few days. According to data from Coinmarketcap, the majority of cryptocurrencies, including Dogecoin, have posted losses in the past 24 hours. On the other hand, some of these cryptocurrencies are still on a price increase when looking at a larger timeframe and many more addresses have crossed into the profitability zone in the past seven days. 

Dogecoin, for instance, is still up by 9% in a 7-day timeframe. As a result, the number of DOGE addresses in profitability has now been pushed to 83%, with 163,000 more addresses waiting to be pushed into profit if DOGE crosses over $0.1657.

Holders of Shiba Inu, Dogecoin’s meme counterpart, haven’t been treated to the same effect. At the time of writing, the number of SHIB holders in profitability has largely consolidated around 60%. 

Dogecoin And Shiba Inu Holder Profitability

According to data from IntoTheBlock’s “In/Out of the Money” metric, Dogecoin is still proving itself to be the top meme coin for holders over the long run. The majority of Dogecoin holders are still in profitability, despite the wider lackluster movement of most cryptocurrencies. Particularly, the number of Dogecoin holders in profit now stands at 83%, its highest level in weeks. 

At the time of writing, this metric shows that 5.23 million DOGE addresses are still in profit, representing 83.03% of the total addresses. This is in comparison to 826,350 addresses currently in loss, which represent 13.12% of the total addresses. Interestingly, 242,710 addresses, representing 3.85% of total addresses, are currently “in the money,” meaning they are neither in profit nor loss.

Shiba Inu, on the other hand, has not really seen a growth in the profitability of its holders. In terms of price action, both cryptocurrencies have increased from their price point in the beginning of the month. DOGE is up by 29%, while SHIB is up by 13.79%. However, on-chain data shows a varying level of profitability for traders. 

Holder profitability for SHIB is currently at 60%, with the 810,230 addresses in this cohort. Around 487,970 addresses are currently in loss, which represents 36.18% of the total addresses. Lastly, 50,590 addresses, representing 3.75% of total addresses, are “in the money.”

Profitability around the current price also shows that only 41.38% of Shiba Inu addresses that bought between $0.000020 and $0.000027 are making a profit. In contrast, more Dogecoin addresses (55.84%) are in profit around the current price level of $0.132243 and $0.179879.

Can SHIB Catch Up In Holder Profitability?

Shiba Inu has a long way to go before it reaches Dogecoin’s level of profitability for holders. An interesting fact about Shiba Inu is that it is deflationary by design, unlike Dogecoin, which has an unlimited supply. This means over time, the total number of Shiba Inu coins will decrease, making the remaining ones scarcer and potentially more valuable. This could lead to a stable price increase over the years and more investors moving into profitability. 

At the time of writing, DOGE is trading at $0.1588 while SHIB is trading at $0.00002403.

As the political temperature in the United States heats up ahead of upcoming elections, cryptocurrency is emerging as a significant topic among voters in key battleground states.

An extensive online survey spearheaded by the Digital Currency Group (DCG) has highlighted the growing importance of digital currency policies in the electoral dialogue, particularly in states known for their pivotal role in election outcomes.

Voter Sentiment On Crypto: A New Electoral Battleground

The influence of digital currency in shaping political landscapes is increasingly apparent, as evidenced by the recent survey conducted by The Harris Poll for DCG. From April 4-16, this poll involved 1,201 registered voters across Michigan, Ohio, Montana, Pennsylvania, Nevada, and Arizona.

Results indicate that a significant portion of the electorate is tuning into candidates’ positions on crypto, with half of the respondents affirming that a candidate’s stance on digital currency influences their voting decision.

Ohio presents a contrasting scenario, with voters exhibiting considerable skepticism towards cryptocurrency. This divergence in voter sentiment underscores the complex perceptions surrounding digital currency across different regions.

However, amidst the heightened interest, there is a strong call from about 20% to 25% of voters for elected officials to prioritize the regulation of cryptocurrencies and enhance investor protections.

This demand is even more pronounced among crypto-positive voters, approximately one-third of whom advocate for focused regulatory efforts.

Furthermore, the survey reveals that about 14% of voters currently own digital currency, while 12% have engaged with it in the past. Ownership rates peak in Montana.

These statistics reflect the penetration of crypto into Americans’ everyday financial dealings and highlight the potential electoral impact of digital currency policies.

Political Figures And Crypto Policies

Amidst the backdrop of the interplay between elections and digital currency, not all political figures are supporters. Senator Elizabeth Warren, a key Democratic figure in the US, focused her re-election campaign last year on forming what she termed an “anti-crypto army.”

Warren’s legislative efforts peaked with introducing the Digital Asset Anti-Money Laundering Act of 2022 in December, which faced opposition from both parties.

Warren committed to reintroducing the bill, aiming to safeguard vulnerable populations from the risks associated with digital assets.

Her strategy includes implementing comprehensive anti-money laundering regulations across decentralized finance (DeFi) platforms and private wallets, alongside proposing a ban on digital currency mixers.

Coin Center, a prominent non-profit advocating for digital currency policy, has harshly criticized this legislative move. The organization described the act as “an opportunistic, unconstitutional assault on self-custody, developers, and node operators.” according to Jerry Brito, the executive director of Coin Center.

He characterized the bill as the most “severe threat” to the personal freedoms of those in the crypto community.

Amid these tensions, Ripple CEO Brad Garlinghouse has been vocal about the need for unity within the cryptocurrency industry to support pro-crypto candidates in the forthcoming 2024 US presidential election.

Last year, Garlinghouse highlighted the necessity to oppose the current administration’s anti-crypto posture, particularly regarding blockchain technology. He advocates endorsing candidates who favor innovation and sensible regulation to ensure the US does not lag in the global technological arena.

Team @Ripple is putting a stake in the ground, leading the charge with other industry leaders to support pro-innovation and pro-crypto candidates in the 2024 US election cycle. The US cannot afford to continue taking a back seat on the global stage. Regulatory overreach (esp from… https://t.co/hpkqNf7Y99

— Brad Garlinghouse (@bgarlinghouse) December 18, 2023

Featured image from Unsplash, Chart from TradingView

EMURGO, the commercial arm of the Cardano blockchain, has formed a strategic alliance with GSR, a prominent global cryptocurrency trading firm. This partnership aims to bolster the infrastructure of the ecosystem by leveraging GSR’s expertise in market liquidity and financial services.

How The Partnership Will Boost Cardano

EMURGO, established in 2015, plays a critical role in driving the adoption and implementation of the Cardano blockchain. The collaboration with GSR is intended to address several key areas within the network.

First, GSR will bring its extensive experience in market-making to provide deeper liquidity for Cardano’s native token and other Cardano-based digital assets. This move is expected to reduce slippage and improve transaction efficiency on decentralized exchanges operating within the Cardano ecosystem.

The partnership will scout and support burgeoning projects through venture investments within the network, aiming to fuel innovative developments and accelerate commercial applications built on Cardano. By enhancing the interoperability of applications, the collaboration also seeks to simplify user interactions and integrate services across the blockchain, thus broadening user engagement and adoption.

Moreover, both entities are committed to advancing blockchain knowledge through joint educational programs focused on ADA’s technology, which will aim to attract more developers and businesses to the ecosystem.

Ken Kodama, CEO of EMURGO, highlighted the strategic benefits of the alliance, stating, “EMURGO is excited to work with GSR and utilize its established track record as one of the largest market makers in the crypto space to support the growing ecosystem. GSR’s wealth of experience, expertise, and deep resources will enable builders and projects to develop and scale their Web3 products to potential Web3 users while fostering an even more robust Cardano ecosystem moving forward.”

Echoing the sentiment, CJ Fong, Head of EMEA Business Development at GSR, noted, “GSR is thrilled to be working with the EMURGO team as they continue to expand their ecosystem. We look forward to supporting the next phase of growth through unique investment opportunities and education initiatives within the Cardano community.”

This partnership comes at a pivotal time for GSR as well, with its Singapore subsidiary, GSR Markets Pte. Ltd., securing the Digital Payment Token Service license from the Monetary Authority of Singapore (MAS). This is a notable milestone as it marks the first such license granted to a digital asset market maker in the region, potentially setting a precedent for regulatory acceptance of digital asset firms in Singapore and beyond.

Cardano itself is known for its foundation in peer-reviewed research and a scientific development methodology. With a commitment to environmental sustainability and security through its proof-of-stake protocol, the blockchain has successfully processed nearly 90 million transactions. The platform currently supports over 1,350 projects, varying from financial applications to complex decentralized applications (dApps).

At press time, ADA traded at $0.45.

Popular cryptocurrency analyst, Michael van de Poppe has predicted a major bullish breakout for Chainlink (LINK), urging investors to hold on to their cryptocurrencies despite market volatility. 

Analyst Cautions Against Premature Sell-Off

In an X (formerly Twitter) post on Monday, May 5, Poppe shared a LINK/BTC price chart, depicting historical price movements from 2018 to 2025. Based on the technical analysis of the cryptocurrency’s price action across previous market cycles, the crypto analyst noted that Chainlink was presently undergoing a retest at its low point. 

This suggests that the cryptocurrency is experiencing a phase of reassessment and potential stabilization, followed by a possible price rebound. Poppe has disclosed that initiating sell-offs during Chainlink’s current price stage may not be a strategic move, as doing so could result in investors missing out on potential gains when the market rebounds from the temporary weakness. 

Highlighted in the price chart, the analyst disclosed that $0.0004480 was a crucial resistance level for a potentially strong breakout upwards. Additionally, the LINK/BTC ratio could undergo a trend switch at $0.0006721, as it begins to make “higher lows and higher highs.”

In addition to the optimistic outlook, the crypto analyst previously disclosed that Chainlink was getting close to its “bottom,” potentially testing new lows around 2,000 Satoshis (SATs) before surging upwards. He revealed that this phase was a prime buying period, acknowledging in an earlier post that he was already investing in Chainlink. 

At the time of writing, Chainlink is down by 3.54% in the last 24 hours and trading at a price of $14.5%, according to CoinMarketCap. While the present market condition may have contributed to the price decline, the cryptocurrency has remained relatively stable, witnessing a price increase of 6.28% over the past seven days, and a massive 75.15% surge in its 24-hour trading volume. 

Chainlink Becomes Top RWA By Development

Chainlink has ranked number one among the top Real World Assets (RWA) by development activities. According to market intelligence platform Santiment, Chainlink emerged as the leading project in the RWA sector, witnessing activities 2.49 times greater than that of the next most active project, Synthetix (SNX). 

The blockchain platform disclosed that the top list was compiled by GitHub, an online software development platform. The criteria for evaluating the top RWA project in terms of development was based on counting non-redundant GitHub activities and averaging this daily activity over the past 30 days. 

The result of the evaluation revealed Chainlink’s high level of developer engagement and activities, underscoring the ongoing progress and innovative processes within the crypto project.  

On-chain data shows the Bitcoin long-term holders have finally cooled off their profit-taking after showing a wild selloff just earlier.

Bitcoin Coin Days Destroyed Has Calmed Down For BTC Recently

As pointed out by BTC on-chain research account “The Bitcoin Researcher” in a post on X, the Coin Days Destroyed In Profit metric has declined recently. A “coin day” is a quantity that 1 BTC accumulates after staying dormant on the blockchain for 1 day. Thus, when a coin sits still in the same address for a while, it carries some number of coin days.

When a coin like this is finally moved on the network, its coin days count resets back to zero, and the coin days that it had been holding are said to be “destroyed.” The Coin Days Destroyed (CDD) keeps track of the total amount of coin days being destroyed in this manner across the blockchain on any given day. When the value of this indicator spikes, it means that a large number of aged coins are on the move.

These spikes are attributed to the “long-term holders,” investors who normally tend to HODL onto their coins for extended periods. This group holds large coin days, so their moves end up leading to a destruction of a large amount of them.

Large moves from these investors, though, are not that common, as they are by nature HODLers who remain tight despite whatever may be going on in the wider market. When the LTHs do break their dormancy, it’s generally for selling, so spikes in the CDD may correspond to selling pressure arising from this group.

In the context of the current topic, profit-taking from these investors specifically is of interest, so the analyst has cited the CDD data for only the coins that were carrying a profit prior to the move.

Here is the chart for this Bitcoin indicator over the last few years:

As displayed in the above graph, the Bitcoin CDD In Profit had risen to some very high levels earlier as the BTC rally towards the new all-time high had taken place.

This extraordinary spike would suggest that the run had enticed even these diamond hands into harvesting their profits. As the asset’s drawdown post this rally has played out, though, the metric’s value has declined, suggesting a decrease in selling pressure from the LTHs.

The ‘CDD In Profit’ has now come down to relatively low levels, although its value is still higher than during the bear market. Given this trend, it’s possible that the LTH profit-taking may have been exhausted for now, or at least is close to being so.

It now remains to be seen how the Bitcoin price develops from here, as perhaps one of the main obstacles to the rally is now out of the asset’s way.

BTC Price

Bitcoin’s recovery surge has slowed down over the last few days as the asset’s price has continued to consolidate around the $64,000 level.