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Changpeng Zhao, the ousted CEO of cryptocurrency exchange giant Binance, walked away from court this week with a sentence many see as a slap on the wrist.

Zhao, better known in the crypto world as “CZ,” received four months in prison for failing to implement sufficient anti-money laundering (AML) safeguards at Binance.

Binance Founder: Guilty But Not Laundering?

The Department of Justice (DOJ) did not directly accuse Zhao of money laundering itself. Instead, the charges focused on his company’s inadequate AML programs, which allegedly allowed criminals to funnel illicit funds through the exchange.

This distinction proved crucial in the sentencing, with some legal analysts suggesting federal guidelines for nonviolent first-time offenders limited the judge’s options.

However, the public outcry paints a different picture. “This is a serious injustice,” declared Dennis Kelleher, CEO of Better Markets, echoing a widespread sentiment.

Critics argue that the light sentence sends a permissive message to the fast-paced and often murky world of cryptocurrency.

Million Dollar Slap, Billion Dollar Wealth

Adding fuel to the fire is the $50 million fine levied against Zhao. While a hefty sum for most, it’s a mere drop in the bucket for a man whose net worth is estimated to be over $40 billion.

This disparity fuels the ongoing debate about the effectiveness of financial penalties for the ultra-wealthy. Should white-collar crimes be met with crippling fines that actually sting, or do these token punishments simply become the cost of doing business for the super-rich?

Binance: Business As Usual, (Maybe) Stronger Oversight

Despite the controversy, Binance remains firmly in control of the cryptocurrency exchange market. The platform continues to operate without a hitch, and Zhao himself could even return to a leadership role within a few years according to the terms of his sentencing. This possibility has critics raising their eyebrows, questioning whether the punishment truly holds any weight.

A potential silver lining comes in the form of a court-appointed independent monitor tasked with overseeing Binance’s AML compliance for the next five years. This move signifies a growing appetite for tighter regulations in the cryptocurrency industry.

Many countries have long been critical of exchanges that facilitate anonymous transactions, and this independent oversight could set a precedent for stricter controls on the entire sector.

The Jury’s Still Out On DOJ’s Commitment

The true impact of Zhao’s sentencing remains to be seen. While the independent monitor represents a step towards accountability, the future course of action by the DOJ will be critical.

Potential future charges against other figures within Binance, coupled with the effectiveness of the independent oversight, will determine whether this case signals a genuine commitment to holding financial giants accountable or simply a PR exercise.

Featured image from David Ryder/Bloomberg/Getty Images, chart from TradingView

As the Federal Open Market Committee (FOMC) convenes for a highly anticipated meeting today (2 pm ET), the stakes are high not just for traditional finance but also for the crypto markets, which have become increasingly sensitive to macroeconomic signals. Kurt S. Altrichter, a notable financial advisor, has provided an in-depth analysis of possible outcomes and their ramifications on X, offering a roadmap of expectations for market participants.

Altrichter points out that despite the scaling back of rate cut expectations—from six expected cuts at the start of the year to just one by year’s end—the markets have shown resilience. This is largely because investors still anticipate the next Federal Reserve move to be a cut, not an increase. For the crypto market, this has meant a precarious balance, first the market seemed unfazed by the implications, now investors seem to watch the macro environment closely again.

FOMC Preview: How Will The Crypto Market React?

Expected Scenario: In what Altrichter labels the ‘Expected Scenario,’ the FOMC could reinforce existing expectations that the next policy move would be to lower rates. He elaborates on this scenario’s likely impact: “The rally continues. Equities should welcome the Fed’s pushback on rate hikes, and while that is not a material bullish catalyst, it should support stocks,” Altrichter stated.

In this context, he anticipates a modest uptick in the S&P 500 (less than 1%), a slight drop in treasury yields (less than 10 basis points), and a minimal decrease in the dollar’s value. For the crypto market, this could translate to stable or slightly positive conditions, as the perceived risk from tightening monetary policy diminishes.

Hawkish Scenario: A more concerning outcome for market bulls would be a ‘Hawkish Scenario,’ where the Fed indicates potential rate hikes in response to inflation concerns. Altrichter warns: “If J-Powell upgrades the statement about inflation or says rate hikes are still being considered, SPX would drop hard by more than 1%, and all 11 SPDRs should be lower, with defensive stocks going down less (outperforming).”

This reaction could lead to a spike in treasury yields (10-20 basis points) and strengthen the dollar significantly (possibly breaching the 107 mark). Such an environment could be detrimental to cryptocurrencies, as a hike in rates typically fosters a risk-off sentiment, leading investors to pull back from high-risk assets like digital currencies.

Dovish Scenario: Conversely, the ‘Dovish Scenario’ might see the Fed dismissing recent inflation spikes as transitory, focusing instead on either holding rates steady or preparing for cuts. Altrichter describes this outcome optimistically: “No change in inflation language. Powell still focused on 2 policy paths (cut or hold) and dismissed the recent spike in inflation as transitory (I doubt he will use this word).”

He predicts a robust rally in the S&P 500, potentially moving above 5,200, with significant gains across tech and growth stocks. For the crypto market, this could mean a surge in investment as lower interest rates make non-yielding assets more attractive.

Given the highly reactive nature of cryptocurrencies to macroeconomic indicators, these assets are particularly sensitive to the Fed’s tone and decision-making. A dovish turn by the Fed could invigorate the crypto markets, leading to rallies as seen historically during periods of low interest rates. However, a hawkish stance might exacerbate the bearish trends, pushing cryptocurrencies lower as investors seek safety in more traditional assets.

Altrichter concludes with a strong statement on the importance of the upcoming meeting: “For the bounce to continue, the FOMC needs to reinforce that the next move in rates will unequivocally be a cut.”

On the short-term effects, macro analyst Ted (@tedtalksmacro) agreed with Altrichter. He remarked, “Any potential hawkishness has already been priced in, and we re-run the March FOMC playbook IMO.” This could mean the crypto market sees a slight bounce upwards, and then trends lower, potentially making new lows.

A drastic change from the beginning of the year.

The market sees only one 25bps cut by December, however at the previous meeting in March, the Fed told us that there will be 3 cuts – via the updated dot plot.

Any potential hawkishness has already been priced in, and we re-run… pic.twitter.com/Ga27iX3aM2

— ted (@tedtalksmacro) April 30, 2024

At press time, Bitcoin traded at $59,953.

The US Congress could catalyze a more significant shift than introducing spot Bitcoin ETFs. Bitwise Chief Investment Officer Matt Hougan’s view underscores a pivotal moment for the crypto industry.

Hougan suggests that 2024 could see “groundbreaking” legal frameworks that pave the way for mainstream stablecoin adoption, which might profoundly impact the crypto ecosystem.

A Legislative Leap Forward

Recent remarks by Maxine Waters, Ranking Democrat of the House Financial Services Committee, highlighted progress towards stablecoin regulation.

Waters’ announcement that she and Committee Chair Patrick McHenry are close to finalizing a stablecoin bill indicates bipartisan momentum, which could soon materialize into law.

Matt Hougan emphasized the underappreciated significance of this development in his recent communication to Bitwise clients. He believes comprehensive legislation could anchor stablecoins in the mainstream financial system, potentially enhancing their role in global economics.

Hougan identifies multiple drivers behind the bipartisan push for stablecoin legislation. One significant factor is the potential for stablecoins to “bolster” the US dollar’s dominance as the global reserve currency.

Moreover, stablecoins are major purchasers of US Treasuries, placing them among the top sovereign holders globally.

The economic incentives are equally compelling, according to Hougan. For instance, Tether’s profitability with minimal staff compared to traditional banking giants like Goldman Sachs illustrates the operational efficiency and financial potential of stablecoins. Such dynamics are enticing Wall Street to advocate for entry into the stablecoin arena.

The Bitwise CIO noted:

You can bet your bottom stablecoin: Wall Street is lobbying to be let into the stablecoin game.

The Bigger Picture For Crypto Investors

The passage of stablecoin legislation could redefine the landscape of financial transactions. Institutions like JPMorgan might transition from crypto skeptics to proponents, integrating blockchain technologies into their operations.

Hougan predicts that adopting crypto wallets, combined with the efficiency of blockchain-based payment systems, could soon become standard, driven by innovations such as Stripe’s “pay with stablecoins” feature and Visa’s analytics on rising stablecoin usage.

While stablecoins do not offer appreciation potential, investors can find opportunities in the infrastructure supporting them.

Hougan points to Layer 1 blockchains like Ethereum and Solana, which host substantial stablecoin volumes and many decentralized applications (DeFi).

As the legislative environment becomes more favorable, these technologies are poised for significant growth, reflecting a broader acceptance and integration of crypto into mainstream finance. Hougan concluded:

In other words: Crypto is poised to take another huge leap into the mainstream.

Meanwhile, the stablecoin market remains strong, with a capitalization of approximately $166 billion, according to DeFIllama. In contrast, the inflows and outflows in the spot Bitcoin ETF market have been less substantial, highlighting a shift in investor focus as of now.

Yesterday’s ETF flows by @FarsideUK were negative once again, with $83.6 million of outflows.$GBTC had $82.4 million of outflows. Fidelity did $2.8 million of outflows, Bitwise $3.8 million.

Blackrock holding at 0 for 3rd day in a row.

Price dumped after hours because of DTC… pic.twitter.com/ocUF6zUroH

— WhalePanda (@WhalePanda) April 27, 2024

Featured image from Unsplash, Chart from TradingView

Shiba Inu (SHIB) saw a significant spike in a major metric, which signals a bullish outlook for the second-largest meme coin by market cap. Despite this, Shiba Inu’s price has failed to react positively, which can undoubtedly be a concern for token holders. 

Shibarium Sees Increase In Active Accounts 

Data from Shibariumscan shows that the number of active accounts on the layer-2 network rose from 1290 on April 27 to 3,839 on April 28, representing over a 144% increase. Such development is bullish for Shiba Inu, considering how the layer-2 network has been integral to the meme coin’s success since it launched last year. 

Related Reading: Bitcoin To $300,000? Crypto Pundit Reveals What Will Drive It

Shibarium also saw the number of new transactions on the network spike from 4,997 on April 27 to 12,191 on April 28. This is even more bullish for Shiba Inu since the amount of SHIB burns Shibarium carries out depends on the number of transactions it records. Meanwhile, these aren’t the only recent bullish developments for Shiba Inu. 

NewsBTC recently reported that SHIB’s foremost decentralized exchange (DEX), ShibaSwap, is expanding to Shibarium. This move is expected to increase ShibaSwap’s user base and Shibarium’s, by extension. Shiba Inu will ultimately benefit since an increase in Shibarium’s user base means more transactions, leading to more SHIB burns. 

Why Shiba Inu Is Down

Seeing how these metrics paint a bullish outlook for the meme coin, it isn’t out of place to wonder why Shiba Inu has experienced significant price drops lately. One reason for this price decline is Bitcoin’s price action. Data from the market intelligence platform IntoTheBlock shows that SHIB’s price correlation with Bitcoin is currently at 0.82%, which suggests a “strong positive correlation” between both tokens. 

Related Reading: BlackRock Spot Bitcoin ETF Grinds To A Halt, Records Longest Stretch Without Inflows

Therefore, SHIB’s price has mirrored Bitcoin’s, which has recorded significant price declines lately. Another reason for Shiba Inu’s price decline is the drop in large transactions, with data from IntoTheBlock showing a 4.60% drop in this crucial metric. 

This suggests that Shiba Inu whales are cooling off on their investment in the meme coin, as this recent market downtrend may be affecting their confidence. These whales play a massive role in SHIB’s price discovery, and the meme coin’s price could pick up once they recover their confidence in the market. 

A drop in Shiba Inu’s burn rate has also contributed to its recent decline. Data from the burn tracking website Shibburn shows a 76% decline in the number of SHIB tokens burnt in the past seven days and a 79% decline in the last 24 hours. 

US-based crypto exchange Coinbase has taken a major step forward in the digital payments space by introducing support for the Bitcoin Lightning Network. This allows users to make instant and cheaper Bitcoin transfers. 

Bitcoin Lightning Network Integration On Coinbase 

According to Tuesday’s announcement, the integration of Lightning Network into Coinbase aligns with the company’s goal of creating a “global payment system that is affordable and fast for its users.” 

Previously, Bitcoin transfers on Coinbase were processed on-chain, which often took a “significant” amount of time, ranging from 10 minutes to 2 hours, and was more expensive.

In contrast, the Lightning Network, which operates as a layer on top of the Bitcoin blockchain, enables fast off-chain Bitcoin transfers at a fraction of the cost.

The exchange further pointed out that the Lightning Network has experienced steady growth since its inception in 2017, generating increased demand from Coinbase’s customer base. 

With this latest integration, Coinbase users can perform instant Bitcoin transactions directly from their Coinbase accounts via the Lightning Network, including sending, receiving, and making payments. Coinbase stated on the matter:

Bitcoin is one of the most important assets in crypto and since our inception, we’ve continued to support the Bitcoin ecosystem through our exchange and numerous investments through Coinbase Ventures. Adding support for Lightning furthers the growth of the crypto ecosystem by increasing everyday utility for millions of Coinbase customers.

Regional Limitations Apply

Coinbase’s partner company, Lightspark, was pleased with the launch, emphasizing the role of the Lightning Network in enabling Coinbase customers to instantly send, receive, and transact with Bitcoin directly from their Coinbase accounts powered by Lightspark. 

It is important to note that Coinbase’s Lightning Network integration may not be available in all regions, and the cost comparison between Lightning Network and the traditional Bitcoin network may not apply universally to all transfers. The announcement concluded by stating the following:

Coinbase is excited to continue revolutionizing the traditional payments system with crypto. Faster and cheaper access to money is critical to bridging gaps in accessing financial tools, especially for underbanked and unbanked communities. These blockchain-based innovations will unlock capital that is caught up in unnecessary fees and settlement delays, allowing consumers and businesses to do more with their money.

As of the time of writing, BTC has been undergoing a significant downturn following its peak of $67,300 within the past week. It has declined to the $60,700 mark, signifying a substantial decrease in price over broader timeframes. 

Over the past seven days, BTC has experienced an 8% decline, while the past thirty days have seen a drop of over 13%. However, it is important to note that despite these recent fluctuations, the leading cryptocurrency has maintained an impressive year-to-date increase of 107%.

Featured image from Shutterstock, chart from TradingView.com

Though Bitcoin might be shaky, dumping in the London session on April 30, IntoTheBlock data now shows that the market is, after all, solid.

In a post on X, the blockchain analytics platform noted that Bitcoin is in a mid-bull cycle. Despite the price cool-off, potentially accelerated by whales exiting, most BTC holders still profit. 

86% Of BTC Holders Are In The Money

At press time, BTC is inching closer to the $60,000 round number, shrinking 16% from all-time highs. Bitcoin is moving inside a range after sharp gains in Q1 2024. Analysts have sought clear support in the $60,000 and $61,000 zones.

Conversely, resistance is at the $68,000 level, a price point bulls failed to conquer after April 22.

Even at spot rates, IntoTheBlock observes that 86% of all BTC holders are in profit. Although the number is lower, it could suggest prices are in a consolidation phase following Q1 2024 gains.

Bitcoin had broken above 2021 highs by mid-March, rallying to fresh all-time highs of $73,800. At that price level, all users who had bought the coin, even at 2021 peaks, were in the money. 

As prices consolidate, confidence is high across the board. Some analysts expect the coin to explode as bulls resume the uptrend of February through to March. 

Bitcoin Market Is Balanced, Are Whales Entering Or Exiting?

So far, the Market Value to Realized Value (MVRV) ratio is 2.17, which supports this confidence. The MVRV compares Bitcoin’s market capitalization to the total realized value of all BTC in circulation. 

Analysts use it to gauge average profit margins at any price point. Usually, when the MVRV ratio is above 1, it suggests that BTC holders are underwater. Meanwhile, when it spikes above 1, as is the case, it signals that investors can choose to exit by taking a profit.

 Historical data shows that extreme sell-off happens when the MVRV stands above 3.7. At 2.17, the market is generally neutral, with holders optimistic.

Nonetheless, as confidence rises, IntoTheBlock points out some potential roadblocks that might slow down the upswing or, if bullish, accelerate the rally. Over the past week, the platform observed that whales moving transactions of over $100,000 have generated more than $91 billion in trading volume.

This might mean that deep-pocketed investors, including institutions, might be entering–a net positive– or, worse for bulls, exiting the market, slowing down the uptrend. 

Cardano (ADA) is finally seeing some action again, as data from the market intelligence platform IntoTheBlock shows that there has been a notable spike in whale activity. This has revived hopes that the ADA token could soon record a significant price surge due to this development. 

Cardano Whales Move $13.84 Billion

IntoTheBlock mentioned in an X (formerly Twitter) post that Cardano whales have carried out an average large transaction volume of $13.84 daily in the last seven days. This translates to a total transaction volume of about $96.88 billion during this period. To show how massive this is, IntoTheBlock added that this transaction volume is a third of Bitcoin’s current volume while it is 5x and 16x that of Litecoin and Dogecoin’s volume, respectively. 

These whales are believed to be taking advantage of Cardano’s recent price dips to load their bags in anticipation of a price surge from the crypto token. Data from CoinMarketCap shows that Cardano is down over 11% in the last seven days, suggesting a trend reversal may be imminent. 

The return of these whales could also contribute to this imminent price surge, considering that they play a massive role in price discovery. On-chain analytics platform Santiment noted that a spike in Cardano whale activity “historically correlates with potential price reversals.”  The platform also revealed that these whale transactions are the highest since November 8th.

Besides whale activity, a couple of other on-chain metrics paint a bullish outlook for Cardano, with data from IntoTheBlock showing the Concentration and Bid-Ask Volume Imbalance metric flashing a bullish signal. Meanwhile, although most ADA holders are currently not in profit, they may be forced to add to their positions to break even once Cardano sees a relief pump. 

ADA’s Price Action From A Technical Analysis Perspective

Dan Gambardello, the founder of Crypto Capital Venture, noted in an X (formerly Twitter) post that Cardano is currently coming out of its overbought condition, which suggests that a move to the upside is imminent. He remarked that a further dip might not be a thing as that could translate to the crypto token (just like the broader crypto market) entering an oversold environment where it is ready to “pump like crazy.”

Meanwhile, crypto analyst Trend Rider recently stated that Cardano just needs to hold above $0.52 for a few weeks, and then a parabolic move to the upside will occur. He claimed the same thing happened in 2020 when Cardano experienced a “mega bull run” after it managed to hold above a crucial support level. 

At the time of writing, Cardano is trading at around $0.45, up over 1% in the last 24 hours according to data from CoinMarketCap.

A quant has pointed out that a popular on-chain indicator for Bitcoin gives the asset the green light to experience bullish price action.

Bitcoin Puell Multiple Has Observed A Plunge Recently

As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin Puell Multiple is currently in the “safe to buy zone.” The “Puell Multiple” here refers to an on-chain metric that tracks the ratio between the BTC miners’ daily revenue and the 365-day moving average (MA) of the same.

The revenue here refers to the amount these chain validators earn by mining on the network by solving blocks. The rewards that miners earn remain constant in BTC value and are given at a constant rate.

Thus, the only variable in this group’s revenue is the cryptocurrency’s USD conversion rate. As such, miner revenues rise when the price increases and decline when it moves down.

At high prices, miners may have a strong motive to sell, adding to the market’s selling pressure. When the Puell Multiple has a high value (that is, miners are earning significantly more than the average for the past year), the asset’s price is assumed to be overvalued.

Similarly, cryptocurrency may be considered underpriced when miners make less than the norm, as they could decide to hold onto their mined BTC until better market conditions are achieved.

Now, here is a chart that shows the trend in the Bitcoin Puell Multiple over the entire history of the coin:

As displayed in the above graph, the Bitcoin Puell Multiple had been rising alongside the rally that Bitcoin had witnessed in 2023 and the first few months of this year.

However, the indicator’s value has plunged suddenly recently. The metric is now at 0.8, which suggests the miners are making less than the yearly average.

The Bitcoin price hasn’t seen any plunges of a similar scale, though, so why has the indicator plunged? As mentioned before, the BTC block rewards normally stay constant, but there is one exception.

Special events called Halvings, which occur roughly every four years, are the only instances where the mining rewards change in value. More specifically, they are permanently slashed in half during these events.

It should be noted that these changes kick in only at the time of the Halvings, while they remain constant during the entire four-year period between these events.

The latest Halving, which happens to be the fourth one the asset has seen, occurred earlier in the month, so the Puell Multiple has cooled off into a zone that may be bullish for the asset.

“But hey, remember this: back in 2012, 2016, and 2019, whenever the ratio hit around the same numbers, the price always took a breather before jumping back into bullish territory,” notes the quant.

BTC Price

Bitcoin has seen yet another failed recovery run. Its price has returned to $61,300 after recovering above $64,000 yesterday.

The Shiba Inu daily trading volume has seen a massive explosion in the last 24 hours as a number of developments force investors to return to the table. This increase has naturally caught the eye of investors. But what is driving the growth?

What Is Driving The Shiba Inu 40% Volume Growth?

According to data from Coinmarketcap, the Shiba Inu daily trading volume has risen approximately 40% in the last day. This has sent its volume flying, coming in at over $600 million in 24 hours at the time of this writing. This surge is being driven mostly by the Binance crypto exchange, whose Japanese arm announced a number of sought-after trading pairs.

In an announcement posted on its official website, the Binance crypto exchange informed users that it was launching new spot trading pairs for a number of cryptocurrencies. These included Cardano (ADA), Solana (SOL), XRP, and Shiba Inu (SHIB).

While the exchange does announce new pairs all the time, the fiat pair for these cryptocurrencies were notable. The exchange had finally introduced Japanese Yen (JPY) pairs for these sought-after cryptocurrencies. Following the opening of trading on Tuesday, April 30, the daily volumes of these saw a notable uptick.

Shiba Inu has seen its trading volume rise 40% during this time as Japanese investors get in on the coin. Other newly introduced pairs, XRP/JPY and ADA/JPY, saw their daily trading volumes rise by 9% each. Solana followed the path of Shiba Inu, recording an over 40% increase in its daily trading volume during this time.

Why Is SHIB Price Still Down?

Shiba Inu has seen its price succumb to bearish pressure in the early hours of Tuesday, causing its price to retest the $0.000023 support. This comes in light of the bullish interest that the Binance pairs have brought for the meme coin, suggesting that something else is behind its price decline.

Looking at the broader crypto market, the price of Bitcoin has fall 1.37%, pushing it below $63,000 once again. As the market leader, this has set a precedent, causing the rest of the market to fall alongside it. One major reason for this decline is the lukewarm start to the trading of Spot Bitcoin and Ethereum ETFs in Hong Kong, falling below market expectation.

Given this, it’s obvious that the SHIB price is just following the general market sentiment and is not driven by a bearish impulse on its own part. In this case, a recovery in the Bitcoin price will likely lead to a total market recovery, and the Shiba Inu price will follow. However, the meme coin still has mounting resistance from bears at $0.000024, which could make recovery hard.

In a significant development within the cryptocurrency community, Roger Ver, an early investor in Bitcoin, has been indicted by the US Department of Justice (DOJ) on multiple charges, including mail fraud, tax evasion, and filing false tax returns. 

Roger Ver’s Alleged Tax Evasion Unveiled

According to the indictment, Ver owned and operated companies such as MemoryDealers.com Inc. and Agilestar.com Inc., which specialized in selling computer and networking equipment. 

Ver is accused of acquiring Bitcoin for himself and his companies in 2011, amassing a significant fortune in the cryptocurrency.

To evade taxes, Ver allegedly renounced his US citizenship in 2014 through a process known as expatriation, subsequently obtaining citizenship in St. Kitts and Nevis. However, US law required him to disclose and pay taxes on capital gains from his global assets, including the Bitcoin he held.

US Prosecutors Pursue Extradition 

The indictment further alleges that Ver provided false or misleading information to his legal representatives and appraisers, understating the value of his companies and Bitcoin holdings. Consequently, he is accused of filing false tax returns that significantly undervalued his assets, evading substantial tax obligations.

Prosecutors claim that Roger Ver’s actions caused a loss of at least $48 million to the IRS. Despite no longer being a US citizen, he was legally obligated to report and pay taxes on certain distributions, including dividends, from his US-based companies. 

However, Ver allegedly concealed his receipt and sale of Bitcoin held by his businesses, failing to report the associated gains and pay the required taxes.

Roger Ver, the “Bitcoin Jesus,” has been taken into custody in Spain, where he was arrested on the above charges. As a result, the US is seeking his extradition to stand trial. 

Featured image from Bloomberg, chart from TradingView.com 

Федеральный суд Сиэтла вынес приговор по делу сооснователя и бывшего генерального директора крупнейшей криптовалютной биржи мира Binance. Один из богатейших людей криптоиндустрии отделался четырьмя месяцами тюремного заключения.

Michael Saylor, co-founder and executive chairman of business intelligence company MicroStrategy, went on a Bitcoin (BTC) buying spree in 2020 that has since paid off in a major way. 

Saylor Turns $1 Salary Into $400 Million

According to a Fortune Magazine report, Saylor has reportedly pocketed an estimated $400 million from pre-planned daily sales of approximately 5,000 shares of MicroStrategy. 

These stock sales follow the exercise of options granted in 2014 that were set to expire. Notably, MicroStrategy’s (MSTR) stock has doubled this year to an all-time high (ATH) of $1,195, surpassing the record gains of the largest cryptocurrency on the market. For context, at the end of 2014, MSTR was trading around $160.

The report notes that despite concerns that Saylor, as the controlling shareholder, may be selling at the peak, MicroStrategy’s stock’s performance has mitigated such worries among investors. 

During a conference call in November, Saylor clarified that he had been paid a mere $1 salary over the past decade and was ineligible for cash bonuses. He explained that exercising the options would enable him to address certain obligations and acquire more Bitcoin for his account.

Lance Vitanza, a managing director at TD Cowen, commented that the media has perhaps emphasized the story more than investors, who acknowledge that Saylor still retains a substantial amount of MicroStrategy’s stock.

However, the premium that MicroStrategy commands over Bitcoin, particularly since the introduction of US spot Bitcoin exchange-traded funds (ETFs) that hold the cryptocurrency, has begun to raise eyebrows. 

In March, Kerrisdale Capital Management LLC announced that it was shorting the stock, apprehensive that it was outpacing the surge in the digital asset’s price.

Austin Campbell, an adjunct professor at Columbia Business School and a consultant for blockchain firms, questioned the rationale behind purchasing MSTR at a premium when ETFs are now available. 

Campbell described MSTR as a “retail magical belief stock,” similar to Tesla TSLA, which often defies fundamentals and trades on sentiment. Campbell added that while this trend may continue for some time, it is not indefinite.

MicroStrategy’s Bitcoin Play

MicroStrategy reported a first-quarter loss of $53 million. Interestingly, this loss was incurred despite the surge in the value of its Bitcoin holdings. 

According to the report, under current accounting rules, the company cannot recognize increases in the value of its Bitcoin holdings, including the nearly 67% jump in the recent quarter. 

However, a recently passed accounting rule will require valuing digital assets at market prices, and companies have until 2025 to implement this revision. Instead of adopting the revision for the first quarter, MicroStrategy recorded a $191.6 million impairment loss related to its digital assets.

Since MicroStrategy began purchasing Bitcoin to hedge against inflation, its holdings’ value has risen to approximately $13.5 billion. During the first quarter, the company acquired an additional 25,250 Bitcoin, bringing its total holdings to 214,400 as of April 26.

Jeff Dorman, chief investment officer at Arca, a digital asset management firm, summarized Saylor’s strategy for MicroStrategy as follows: sell equity or debt and use the proceeds to buy Bitcoin. As the value of Bitcoin appreciates, so does the price of MSTR stock, enabling the company to sell more stock or bonds and repeat the cycle.

Currently, BTC is trading at $61,200, down over 7% in the last seven days alone, after several failed attempts to consolidate above higher levels as selling pressure mounts. 

Featured image from Shutterstock, chart from TradingView.com

Сегодня, 30 апреля 2024 года был снесён один из исторических корпусов Басманной больницы XIX века (Новая Басманная, 26, корп. 3), авторства Мейнгарда А.А. К сожалению, незаслуженно забыто то, что приспособление...

American multinational investment bank and financial services company, Morgan Stanley has revealed intentions to add Spot Bitcoin Exchange Traded Funds (ETFs) into a selection of its institutionally focused funds. This strategic move potentially reflects Morgan Stanley’s intent to expand into the digital asset space while also capitalizing on the growing interest in digital assets. 

Morgan Stanley Unveils Plans For Bitcoin ETFs Into Funds

On Friday, April 26, Morgan Stanley submitted a filing to the United States Securities and Exchange Commission (SEC), requesting official approval to incorporate Spot Bitcoin ETFs into 12 of its investment funds. 

Related Reading: Why This Crypto Analyst Believes PEPE Could Flip Dogecoin And Shiba Inu

The listed funds include Developing Opportunity, Global Insight, Global Permanence, Growth, Inception, International Advantage, International Opportunity, Global Opportunity, Permanence Portfolios, and Counterpoint Global. According to the filing, these Funds will pay customary transaction costs such as commissions, when it buys and sells securities. 

Furthermore, Morgan Stanley disclosed several principal investment strategies regarding the addition of Spot Bitcoin ETFs to its investment funds. The financial services company emphasized that it would be implementing a “bottom-up stock selection process.” 

This suggests that the Adviser, which is Morgan Stanley Investment Management Inc., would be investing in companies it believes had a strong business visibility, high returns rate and other robust qualities. The filing also states that the Fund may invest in foreign securities, various types of equity securities and privately placed and restricted securities. 

Sharing the risks associated with investments enacted by the Fund, Morgan Stanley clarified that investors could potentially lose their capital, as there is no assurance that the Fund would achieve its investment goals. 

Consequently, the financial services company cited several risk factors that could affect the Fund including liquidity risks, volatility in equity securities, as well as market, economic and political conditions. It noted that during periods of volatility the value of equity securities and associated products could experience significant declines. 

Endorsement Of Bitcoin ETFs Marks New Era Of Acceptance

As a leading global investment advisor with approximately $8 trillion in Assets Under Management (AUM), Morgan Stanley’s approval of Spot Bitcoin ETFs comes as a significant change within the traditional investment landscape. 

Earlier in April, the financial services company had unveiled plans to allow 15,000 brokers to recommend Spot Bitcoin ETF investments to its clients. This endorsement could potentially have far-reaching implications as Morgan Stanley could become the first multinational investment bank to solicit customers’ investments into Spot Bitcoin ETFs.

Additionally, the investment bank’s recent interest in Bitcoin could potentially help improve crypto exposure, attracting a wave of institutional capital into the cryptocurrency and possibly marking a new era of acceptance for Bitcoin within the traditional finance world. 

Changpeng Zhao, also known as CZ, the founder and former CEO of Binance, one of the largest cryptocurrency exchanges, is awaiting sentencing in a highly-anticipated court hearing in Seattle set to begin on Tuesday. 

In November, Zhao pleaded guilty to enabling money laundering on the Binance platform, marking a significant development in a case that has drawn attention due to the alleged violations of US law and the implications for the cryptocurrency industry.

Former Prosecutors Weigh In On Sentencing

As previously reported by Bitcoinist, prosecutors have filed a sentencing memorandum requesting that Zhao be sentenced to three years in prison, twice the top end of the recommended guidelines. They argue that his crimes violated US law on an unprecedented scale. 

In contrast, Zhao’s defense team has requested a more lenient probation sentence of five months. They highlight Zhao’s acceptance of responsibility, his history of philanthropy and community service, and the significant time he has already spent away from his family since pleading guilty.

Legal experts have offered differing opinions on the likely outcome of the sentencing. Neama Rahmani, a former federal prosecutor, told CNBC that he expects a sentence of one to two years, given the case’s high-profile nature. 

Braden Perry, a former senior trial lawyer for the Commodity Futures Trading Commission (CFTC), suggests the advisory range of 10 to 16 months per sentencing guidelines but believes Zhao’s guilty plea and settlement with multiple agencies might influence the judge’s decision. 

Yesha Yadav, a law professor at Vanderbilt University, predicts a sentence in the low single digits, potentially including minimal prison time and extended probation.

Other legal experts, such as Tre Lovell, a corporate law attorney, anticipate a shorter sentence of five to seven months, citing Zhao’s lack of fraud charges and his apologetic letter to the judge. 

Paul Tuchmann, a former federal and state prosecutor, emphasizes the need for general deterrence in the crypto industry and expects the DOJ to advocate for a sentence that conveys the consequences of violating financial rules.

Jail time is an important deterrent, said David Weinstein, a former federal and state prosecutor who now practices corporate compliance and white-collar defense at Jones Walker. He added that the sentence would be over in less than a year. 

Binance’s Money Laundering Case

Prosecutors argue that Zhao operated Binance with a “Wild West” model, demonstrating a “deliberate disregard” for the exchange’s legal responsibilities. 

Zhao’s plea agreement with the Department of Justice (DOJ) required him to admit his involvement in facilitating money laundering activities on Binance. As part of the agreement, he agreed to step down as CEO, leading to the appointment of Richard Teng as the exchange’s new CEO. 

In addition to his guilty plea, Zhao has agreed to pay a $50 million fine. Binance was ordered to pay $4.3 billion in fines and forfeiture for violating the US Bank Secrecy Act and sanctions on Iran. 

The case involved a joint effort by the DOJ, the Commodity Futures Trading Commission, and the Treasury Department. The Securities and Exchange Commission (SEC) pursued a separate case against Binance. It remains to be seen what the outcome will be for CZ and what other implications may be for the exchange.

As the market experiences a sharp correction, the exchange’s native token, Binance Coin (BNB), is trading at $565, down nearly 4% in the last 24 hours alone and over 6% in the previous 7 days. 

Featured image from NBC, chart from TradingView.com 

Hong Kong’s financial market witnessed a subdued start for its newly launched spot Bitcoin and Ethereum exchange-traded funds (ETFs), which did not meet initial trading volume expectations. Despite substantial initial issuance sizes, market interest appeared restrained, as evidenced by the trading data for the first day.

Spot Bitcoin And Ethereum ETFs See Lukewarm Debut

The ChinaAMC Bitcoin ETF, denominated in HKD (tickers: 3042.HK and 3046.HK) and its USD equivalent, the Harvest BitcoinSpot ETF (tickers: 3439.HK and 3179.HK), alongside the Bosera HashKey BTC ETF in USD (tickers: 3008.HK and 3009.HK), were among the several ETFs that began trading.

The ChinaAMC Bitcoin ETF reported a significant initial issuance size of $121 million (HK$ 950 million), with its Ether equivalent launching at $20 million (HK$ 160 million). However, the trading volumes recorded were modest: the Bitcoin Spot ETFs accumulated only $8.8 million, while Ether Spot ETFs recorded a mere $2.6 million.

Trader T (@pivfund2100), a noted figure in the investment community, commented on X (formerly Twitter) regarding the day’s activities, stating, “Trivial volume comparing to US Spot ETF, seem initial issuance size is over-prepared on liquidity wise; Retail investors are major participants for today.”

This observation underscores the discrepancy between the anticipated and actual market participation, suggesting that the issuers may have overestimated initial market demand. He added, “saw some familiar names on Broker/Dealer. In-kind creation/redemption hasn’t performed as it supposed to, should see how it goes in a month or two.”

The lack of participation from Mainland Chinese investors, as pointed out by Trader T, possibly played a role in the dampened trading volumes. “Investors from Mainland China can’t access these ETFs,” he noted, highlighting a significant market limitation.

Despite these geographical restrictions, the ETFs represent an important development for the region by offering a regulated mechanism for large-scale transactions between cryptocurrencies like Bitcoin and Ether and fiat currencies.

Notably, the performance of Hong Kong’s spot ETFs starkly contrasts with their US counterparts. On their inaugural trading day in January, US-based spot Bitcoin ETFs saw a volume of $655 million. In contrast, the combined $11 million trading volume of Hong Kong’s six ETFs fell far short of the expected $100 million. This discrepancy shows that some analysts have probably overestimated the potential of Hong Kong, certainly at the start.

The broader cryptocurrency market reacted negatively to the lukewarm reception of Hong Kong’s ETFs. Bitcoin dropped nearly 5% from $64,700 to just under $61,250 within three hours during European trading hours. Similarly, Ether fell by more than 7.0 % from $3,250 to $3,015. These movements could be attributed to the market’s interpretation of the ETFs’ underperformance as a lack of confidence or a smaller-than-expected investor base.

At press time, BTC traded at $61,235.

Hong Kong rolled out the red carpet for cryptocurrency enthusiasts this week with the launch of Asia’s first spot Bitcoin and Ether Exchange Traded Funds (ETFs). The debut marks a significant step for the city, aiming to solidify its position as a global digital asset hub and attract a slice of the booming crypto market. However, challenges remain as Hong Kong grapples with establishing itself against the dominance of US offerings.

Bitcoin Takes Center Stage In Hong Kong’s Digital Ambitions

The launch comes amidst a surge in investor interest in cryptocurrencies. Bitcoin, the world’s most popular digital currency, has skyrocketed nearly 50% this year, reaching an all-time high in March.

This enthusiasm is clearly present in Asia, with the Hong Kong Stock Exchange witnessing strong early gains in the newly launched ETFs. The three Bitcoin ETFs climbed more than 3% on their debut, reflecting a positive reception from regional investors.

While the launch signifies a progressive stance towards cryptocurrencies, Hong Kong regulators are taking a measured approach. The Securities and Futures Commission (SFC) hailed the milestone but emphasized the inherent risks associated with crypto assets.

“Virtual assets are quite speculative and very volatile,” cautioned Christina Choi, an executive director at the SFC. This highlights a key concern – the suitability of these ETFs for all investor profiles.

Competition Heats Up: Hong Kong Vs. US In The Crypto ETF Arena

The Hong Kong ETFs face stiff competition from established players in the US. The US market has witnessed a significant influx of capital into its Bitcoin ETFs, contributing to the recent price surge. However, US regulators haven’t yet approved ETFs tracking Ether, giving Hong Kong a potential edge.

One differentiating factor for Hong Kong’s offerings is the “in-kind” transaction mechanism. This allows investors to directly buy and sell ETF shares using their crypto tokens instead of converting them to cash first. This feature could be particularly appealing to existing crypto holders, potentially reducing transaction costs and simplifying the investment process.

Cost Concerns Cloud The Horizon

Despite its innovative features, the initial enthusiasm for Hong Kong’s ETFs might be dampened by cost considerations. The management fees for these ETFs are significantly higher compared to their US counterparts.

This is attributed to the limited number of regulated service providers currently operating under Hong Kong’s strict legal framework. Analysts predict that the initial wave of investors will likely be local retail participants who are more cost-sensitive.

HK Crypto ETFs: Challenges And Growth Potential

The success of Hong Kong’s crypto ETFs will hinge on their ability to address these challenges. If the SFC approves more trading platforms, fostering competition and potentially driving down fees, the market could become more attractive to larger investors. Close attention will be paid to whether these ETFs can trigger a significant shift in crypto flows from the US to Asia.

Featured image from Pexels, chart from TradingView

In a significant move that underscores Ripple Labs‘ global expansion strategy, the popular American-based payment firm and Hashkey DX – a subsidiary of Hashkey Group have formed a strategic alliance to launch enterprise solutions powered by XRP Ledger (XRPL) in Japan.

Ripple Bringing XRPL Solutions To Japan 

On Monday, Ripple announced the strategic collaboration with Hashkey DX- a leading player in the Japanese fintech space, to bring XRP Ledger capabilities to enterprises in Japan. Ripple affirmed that SBI Ripple Asia and HashKey DX’s partnership will aid in the introduction of enterprise solutions to the Japanese market.

The three companies plan to investigate potential future cooperation on a range of enterprise blockchain use cases that will make use of the XRPL’s vigorous features. Ripple Vice President of Strategic Initiatives Emi Yoshikawa stated that this alliance underscores both parties’ dedication to developing blockchain technology and providing real benefits to companies.

Over time, Hashkey Group has found tremendous success with its blockchain-powered supply chain financing solution, and mainland China has adopted them widely. Since its July 2019 introduction, the solution has registered over 4,000 businesses, including 23 banks and 4,300 suppliers, with overall trade value and financing transactions surpassing $7 billion and $3 billion, respectively.

Given the widespread adoption in China, Ripple’s partnership with the Hashkey Group subsidiary will now bring these solutions to the Japanese market. With the alliance, SBI Group enterprises will become the first in Japan to use this supply chain finance solution.

The XRPL, a decentralized layer 1 blockchain that powers XRP, will be used to facilitate these solutions, eyeing tokenization and exchange of both real-world assets and crypto-native.

According to Andy Dan from Hashkey DX, for the company to provide a reliable supply chain financing solution, the XRP Ledger was the perfect blockchain infrastructure.

“With its proven enterprise track record and unmatched performance metrics, including rapid settlement speeds, low costs, and scalability, we are confident in our ability to drive meaningful transformation and introduce innovative, cutting-edge solutions for businesses in Japan,” he added.

XRPL On-Chain Lending Protocol

This union comes two weeks after Ripple revealed its proposal labeled 0066 XLS—66d for a native leading protocol on the XRPL. The proposal is to create a DeFi ecosystem inside the network that is immune to censorship.

Introduced by Aanchal Malhotra and Vito Tumas, the protocol is intended to give the XRP Ledger blockchain the capacity to support on-chain borrowing and lending pools. Additionally, it enables users to add fungible tokens, including wBTC, wETH, and XRP, to a lending pool in order to earn interest.

According to the firm, two new entities, Pseudo-Account and Single-Asset Tokenized Pool must be implemented within XRPL in order to activate the protocol.