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Telegram Mini Apps Are 'Trojan Horse’ for Mass Blockchain Adoption: TON Investments DirectorThe blockchain-based mini-decentralized applications (dApps) on Telegram, also known as Mini Apps, could be a “Trojan horse” for mass blockchain adoption. Justin Hyun, the director of investments at TON Foundation, told Cointelegraph: “That's our thesis for bringing in more users onto the blockchain without even needing to educate them about the blockchain. It's a Trojan horse way to say: look you're letting in all these user-friendly dApps and we won't even necessarily call them dApps... It's just telegram mini apps that they're using whether that's inside their channels.” Telegram Mini Apps launched in 2020 as an open platform allowing Web3 businesses to deploy crypto-friendly apps directly within the messaging app Telegram. They were launched in partnership with The Open Network (TON) Foundation and Tencent with the intention of creating a super-app platform. Bringing the next 500 million users on-chain will require simple initial use cases where users aren’t necessarily aware of the underlying blockchain interaction. Hyun says: “We believe mass adoption really comes in the form of simple use cases in the beginning, and then there will be drop-offs of more sophisticated users going into different types of use cases. But bringing 500 million people on-chain by 2028, which is our goal, is going to require use cases that interact with the blockchain without the user knowing that in the front end.” Some Telegram Mini Apps will also offer Web3-specific financial incentives for users, Hyun explained. Justin Hyun talks about the mechanics of Mini Apps. Source: YouTube Related: Dencun is a big step towards mass adoption: Metis CEO Telegram is the world’s third-largest messenger app by monthly downloads, according to Statista. It has over 800 million monthly active users worldwide. Telegram announced the launch of its advertising platform on Feb. 28. The platform will use the TON blockchain for payments. Starting this month, Telegram channel owners in over 100 countries can start receiving financial rewards for their work after the ad platform opens for all advertisers. Channel owners will start receiving 50% of the total advertising revenue generated by Telegram from displaying ads in their channels. TON launched a $115 million community incentive program on March 20, with $38 million for token mining and user incentives, $22 million for airdrops, $15 million for The League developer ecosystem, and $40 million for liquidity pool boosts. Related: How high can Bitcoin go? New BTC price prediction sees cycle top at $180K

Telegram Mini Apps Are 'Trojan Horse’ for Mass Blockchain Adoption: TON Investments Director

The blockchain-based mini-decentralized applications (dApps) on Telegram, also known as Mini Apps, could be a “Trojan horse” for mass blockchain adoption.

Justin Hyun, the director of investments at TON Foundation, told Cointelegraph:

“That's our thesis for bringing in more users onto the blockchain without even needing to educate them about the blockchain. It's a Trojan horse way to say: look you're letting in all these user-friendly dApps and we won't even necessarily call them dApps... It's just telegram mini apps that they're using whether that's inside their channels.”

Telegram Mini Apps launched in 2020 as an open platform allowing Web3 businesses to deploy crypto-friendly apps directly within the messaging app Telegram.

They were launched in partnership with The Open Network (TON) Foundation and Tencent with the intention of creating a super-app platform.

Bringing the next 500 million users on-chain will require simple initial use cases where users aren’t necessarily aware of the underlying blockchain interaction. Hyun says:

“We believe mass adoption really comes in the form of simple use cases in the beginning, and then there will be drop-offs of more sophisticated users going into different types of use cases. But bringing 500 million people on-chain by 2028, which is our goal, is going to require use cases that interact with the blockchain without the user knowing that in the front end.”

Some Telegram Mini Apps will also offer Web3-specific financial incentives for users, Hyun explained.

Justin Hyun talks about the mechanics of Mini Apps. Source: YouTube

Related: Dencun is a big step towards mass adoption: Metis CEO

Telegram is the world’s third-largest messenger app by monthly downloads, according to Statista. It has over 800 million monthly active users worldwide.

Telegram announced the launch of its advertising platform on Feb. 28. The platform will use the TON blockchain for payments.

Starting this month, Telegram channel owners in over 100 countries can start receiving financial rewards for their work after the ad platform opens for all advertisers.

Channel owners will start receiving 50% of the total advertising revenue generated by Telegram from displaying ads in their channels.

TON launched a $115 million community incentive program on March 20, with $38 million for token mining and user incentives, $22 million for airdrops, $15 million for The League developer ecosystem, and $40 million for liquidity pool boosts.

Related: How high can Bitcoin go? New BTC price prediction sees cycle top at $180K
Stablecoin Delistings in Europe Spell Change for Crypto Exchanges, IssuersWhen the world’s fourth-largest cryptocurrency exchange delists its leading stablecoin for an entire continent, it raises eyebrows.  But this may just be a harbinger of things to come. Expect more disruptions as Europe’s path-breaking Markets in Crypto-Assets Regulation (MiCA) regulatory regime takes effect at the end of June. Off-shore stablecoins, in particular, may face challenges. But in the long run, MiCA should provide a safer, stronger eco-system for stablecoin issuers and users, sources told Cointelegraph recently. As reported, Seychelles-based crypto-exchange OKX delisted Tether (USDT) trading pairs for users in the European Economic Area (EEA) ahead of MiCA. “Moving forward, only EUR and USDC trading pairs will be accessible for spot trading,” said OKX in a customer support message. A shifting landscape Market observers were hardly shocked by the news. Christian Catalini, the founder of the Massachusetts Institute of Technology Cryptoeconomics Lab, said he was “not surprised at all by the delisting,” adding that “the stablecoin landscape will evolve substantially across the globe as new regulation is passed, and we will see entry by new players — many of which won’t be companies that started in crypto and are coming from traditional banking and fintech.” Regarding the OKX news, Arvin Abraham, partner at United Kingdom-based law firm Goodwin Procter, expects more of the same. He tells Cointelegraph: “Post-MiCA [i.e., after June 30], if a stablecoin is no longer compliant, we can expect exchanges to drop it from the exchange for European customers.” Because none of the world’s largest stablecoins are European, it follows that in the EEA, at least, one could see “a significant shifting of the landscape following MiCA coming into effect,” suggested Abraham. Some of the current leaders may have to bow out if they won’t, or can’t, get compliant. Recent: Over half of U.S. charities now accept cryptocurrency donations “MiCA, with its stringent requirements for both e-money tokens and asset reference tokens” [i.e., two forms of stablecoins in the new MiCA lexicon] will undoubtedly impact stablecoin offerings in the European Union,” Jean-Baptiste Graftieaux, global CEO at France’s Bitstamp cryptocurrency exchange, told Cointelegraph, and “we are closely monitoring developments in this area.” The challenge for stablecoin issuers is they will now need to be an EEA entity and authorized as an Electronic Money Institution firm in the EEA. “This is problematic for existing stablecoin issuances, and the timeline is now very short, with June 30, 2024, being the last date to meet the new regulatory requirements,” Graftieaux added. A harder task for off-shore stablecoin issuers? “For non-European [stablecoin] issuers, the requirement for the issuer to have an entity established and authorized in an EU member state is the most significant unique cost,” Abraham noted. But it isn’t just off-shore issuers who will face challenges. “For all issuers, significant additional burdens come from the requirements to maintain 1:1 reserves to cover claims; provide permanent redemption rights to holders of tokens; and for stablecoins with a value exceeding 100 million euro to provide quarterly reporting to their EU home state regulator,” Abraham added. Jon Helgi Elisson, co-founder and chairman of Monerium, a company issuing compliant on-chain fiat stablecoins in Europe, and former chairman of the supervisory board of the Central Bank of Iceland, told Cointelegraph that most stablecoins offered in Europe today are not compliant with existing electronic money rules — let alone those that will be implemented June 30 as a result of MiCA. “The e-money directive has been in effect in Europe for more than 20 years,” Elisson said. “Why do you have a market of stablecoins where you have one set of companies that are compliant and one set of companies that are not compliant? That is not a fair thing.” Still, he suggested that it could be “hugely expensive” for some stablecoin issuers to come into compliance. With MiCA, fiat-backed stablecoin issuers will not only have to maintain a 1:1 ratio of liquid reserves, but they will also have to segregate user’s funds, “meaning that the customer has a claim on the underlying funds,” not the company, said Elisson. Compliance demands will be greater for the larger market-cap issuers. “In the current [pre-MiCA] regulation and law, there is no distinction between the size of issuers,” said Elisson. The same rules apply to smaller and bigger issuers. However, MiCA distinguishes between “significant” issuers and “non-significant” issuers. “You have to put more of your own equity aside against potential losses if you are a ‘significant’ issuer,” Elisson explained. Will there be more changes for off-shore issuers? “The impact of the regulation may result in some challenges for those operating in international markets,” said Graftieaux. “For example, it could result in increased compliance costs, barriers to market entry, and potential conflicts with other jurisdictions’ regulatory frameworks, resulting in policy fragmentation.” Abraham foresees “a significant short-term disruptive effect on the market, as Tether is today the most popular stablecoin globally.” However, over a longer time frame, “other stablecoins would fill the void, and the ecosystem would arguably be safer as these coins would be compliant with MiCA’s strict consumer protection and prudential safeguards.” Crypto exchanges might have to adapt, too. “Some exchanges require stablecoins as an intermediate form of exchange before fiat can be used to purchase crypto or to effect a trade between two crypto assets,” said Abraham. Those stablecoins may not be available to them soon, at least for European customers. Setting an example for crypto markets Still, Graftieaux emphasized the long-term benefits for investors and markets generally. “With a focus on market integrity and investor protection, these regulatory standards set an example for other markets, which, if followed, will only increase investor confidence.” The MiCA framework has already had an impact in the U.K., Graftieaux added, where the government’s commitment to digital assets has been widely seen “as a clear strategic move to lead the international regulatory stage alongside the EU.” Graftieaux also takes issue with those who claim that MiCA could thwart crypto and blockchain innovation in the EU countries. “While innovation plays a crucial role in the industry, the importance of market stability cannot be overstated.” Ultimately, the new framework “recognizes the revolutionary ability of blockchain technology while also finding a balance in offering legal clarity and certainty,” he continued. Moreover, “This harmonization encourages cross-border innovation through the seamless collaboration enabled between EU states.” Graftieaux told Cointelegraph: “This cross-pollination of ideas will continue to foster technological innovation – just under a more robust set of regulations.” Indeed, some on the continent see MiCA offering an opening for a new generation of stablecoin providers. “We cannot predict market reactions, but one thing is sure: MiCA is a real opportunity for Europe and euro stablecoins,” Jean-Marc Stenger, CEO at France’s Societe Generale – Forge, told Cointelegraph, adding: “The European market is dynamic, with a large, mature and sophisticated investor base. All the conditions are in place to allow a move toward rebalancing euro versus dollar stablecoins in the long term.” In sum, with their focus on market integrity and investor protection, the new EU crypto regulations could set an example for other markets — after some short-term pain, of course. The stablecoin sector might also see some new entrants to challenge the dominance of dollar-backed stablecoins. Recent: Ethereum Dencun upgrade lowers transaction fees for L2s “While MiCA is far from perfect, it provides a starting point for more robust stablecoin regulation. It’s also way better than the current situation in the U.S., where there isn’t any regulatory clarity and new rules are needed to deliver safe and sound stablecoins to consumers and businesses,” said Catalini, adding: “Once there is clarity, we’ll finally know which stablecoins are here to stay and which ones can actually solve real consumer and business needs at scale.”

Stablecoin Delistings in Europe Spell Change for Crypto Exchanges, Issuers

When the world’s fourth-largest cryptocurrency exchange delists its leading stablecoin for an entire continent, it raises eyebrows. 

But this may just be a harbinger of things to come.

Expect more disruptions as Europe’s path-breaking Markets in Crypto-Assets Regulation (MiCA) regulatory regime takes effect at the end of June.

Off-shore stablecoins, in particular, may face challenges. But in the long run, MiCA should provide a safer, stronger eco-system for stablecoin issuers and users, sources told Cointelegraph recently.

As reported, Seychelles-based crypto-exchange OKX delisted Tether (USDT) trading pairs for users in the European Economic Area (EEA) ahead of MiCA. “Moving forward, only EUR and USDC trading pairs will be accessible for spot trading,” said OKX in a customer support message.

A shifting landscape

Market observers were hardly shocked by the news. Christian Catalini, the founder of the Massachusetts Institute of Technology Cryptoeconomics Lab, said he was “not surprised at all by the delisting,” adding that “the stablecoin landscape will evolve substantially across the globe as new regulation is passed, and we will see entry by new players — many of which won’t be companies that started in crypto and are coming from traditional banking and fintech.”

Regarding the OKX news, Arvin Abraham, partner at United Kingdom-based law firm Goodwin Procter, expects more of the same. He tells Cointelegraph:

“Post-MiCA [i.e., after June 30], if a stablecoin is no longer compliant, we can expect exchanges to drop it from the exchange for European customers.”

Because none of the world’s largest stablecoins are European, it follows that in the EEA, at least, one could see “a significant shifting of the landscape following MiCA coming into effect,” suggested Abraham. Some of the current leaders may have to bow out if they won’t, or can’t, get compliant.

Recent: Over half of U.S. charities now accept cryptocurrency donations

“MiCA, with its stringent requirements for both e-money tokens and asset reference tokens” [i.e., two forms of stablecoins in the new MiCA lexicon] will undoubtedly impact stablecoin offerings in the European Union,” Jean-Baptiste Graftieaux, global CEO at France’s Bitstamp cryptocurrency exchange, told Cointelegraph, and “we are closely monitoring developments in this area.”

The challenge for stablecoin issuers is they will now need to be an EEA entity and authorized as an Electronic Money Institution firm in the EEA. “This is problematic for existing stablecoin issuances, and the timeline is now very short, with June 30, 2024, being the last date to meet the new regulatory requirements,” Graftieaux added.

A harder task for off-shore stablecoin issuers?

“For non-European [stablecoin] issuers, the requirement for the issuer to have an entity established and authorized in an EU member state is the most significant unique cost,” Abraham noted. But it isn’t just off-shore issuers who will face challenges.

“For all issuers, significant additional burdens come from the requirements to maintain 1:1 reserves to cover claims; provide permanent redemption rights to holders of tokens; and for stablecoins with a value exceeding 100 million euro to provide quarterly reporting to their EU home state regulator,” Abraham added.

Jon Helgi Elisson, co-founder and chairman of Monerium, a company issuing compliant on-chain fiat stablecoins in Europe, and former chairman of the supervisory board of the Central Bank of Iceland, told Cointelegraph that most stablecoins offered in Europe today are not compliant with existing electronic money rules — let alone those that will be implemented June 30 as a result of MiCA.

“The e-money directive has been in effect in Europe for more than 20 years,” Elisson said. “Why do you have a market of stablecoins where you have one set of companies that are compliant and one set of companies that are not compliant? That is not a fair thing.”

Still, he suggested that it could be “hugely expensive” for some stablecoin issuers to come into compliance. With MiCA, fiat-backed stablecoin issuers will not only have to maintain a 1:1 ratio of liquid reserves, but they will also have to segregate user’s funds, “meaning that the customer has a claim on the underlying funds,” not the company, said Elisson.

Compliance demands will be greater for the larger market-cap issuers. “In the current [pre-MiCA] regulation and law, there is no distinction between the size of issuers,” said Elisson.

The same rules apply to smaller and bigger issuers. However, MiCA distinguishes between “significant” issuers and “non-significant” issuers. “You have to put more of your own equity aside against potential losses if you are a ‘significant’ issuer,” Elisson explained.

Will there be more changes for off-shore issuers?

“The impact of the regulation may result in some challenges for those operating in international markets,” said Graftieaux. “For example, it could result in increased compliance costs, barriers to market entry, and potential conflicts with other jurisdictions’ regulatory frameworks, resulting in policy fragmentation.”

Abraham foresees “a significant short-term disruptive effect on the market, as Tether is today the most popular stablecoin globally.”

However, over a longer time frame, “other stablecoins would fill the void, and the ecosystem would arguably be safer as these coins would be compliant with MiCA’s strict consumer protection and prudential safeguards.”

Crypto exchanges might have to adapt, too. “Some exchanges require stablecoins as an intermediate form of exchange before fiat can be used to purchase crypto or to effect a trade between two crypto assets,” said Abraham. Those stablecoins may not be available to them soon, at least for European customers.

Setting an example for crypto markets

Still, Graftieaux emphasized the long-term benefits for investors and markets generally. “With a focus on market integrity and investor protection, these regulatory standards set an example for other markets, which, if followed, will only increase investor confidence.”

The MiCA framework has already had an impact in the U.K., Graftieaux added, where the government’s commitment to digital assets has been widely seen “as a clear strategic move to lead the international regulatory stage alongside the EU.”

Graftieaux also takes issue with those who claim that MiCA could thwart crypto and blockchain innovation in the EU countries. “While innovation plays a crucial role in the industry, the importance of market stability cannot be overstated.”

Ultimately, the new framework “recognizes the revolutionary ability of blockchain technology while also finding a balance in offering legal clarity and certainty,” he continued. Moreover, “This harmonization encourages cross-border innovation through the seamless collaboration enabled between EU states.” Graftieaux told Cointelegraph:

“This cross-pollination of ideas will continue to foster technological innovation – just under a more robust set of regulations.”

Indeed, some on the continent see MiCA offering an opening for a new generation of stablecoin providers.

“We cannot predict market reactions, but one thing is sure: MiCA is a real opportunity for Europe and euro stablecoins,” Jean-Marc Stenger, CEO at France’s Societe Generale – Forge, told Cointelegraph, adding:

“The European market is dynamic, with a large, mature and sophisticated investor base. All the conditions are in place to allow a move toward rebalancing euro versus dollar stablecoins in the long term.”

In sum, with their focus on market integrity and investor protection, the new EU crypto regulations could set an example for other markets — after some short-term pain, of course. The stablecoin sector might also see some new entrants to challenge the dominance of dollar-backed stablecoins.

Recent: Ethereum Dencun upgrade lowers transaction fees for L2s

“While MiCA is far from perfect, it provides a starting point for more robust stablecoin regulation. It’s also way better than the current situation in the U.S., where there isn’t any regulatory clarity and new rules are needed to deliver safe and sound stablecoins to consumers and businesses,” said Catalini, adding:

“Once there is clarity, we’ll finally know which stablecoins are here to stay and which ones can actually solve real consumer and business needs at scale.”
Bitcoin Trades Above $69K Following Largest Quarterly Options Expiry in HistoryBitcoin (BTC) price remained above the $69,000 mark, despite the market experiencing the biggest quarterly Bitcoin futures options expiry events. Hao Yang, the global head of derivatives trading at Bybit exchange, told Cointelegraph: “We have experienced the largest option expiration in history, for Bybit and Deribit as well, people may roll over or unwind their hedging position during the expiration time, and the action of unwinding may have a small impact on the price movement in the very short term.” Over $15.1 billion worth of cryptocurrency futures options have expired on Deribit this Friday, March 29, at 8:00 am UTC, according to a March 28 X post by Deribit. Of the $15.1 billion, $9.53 billion represented the notional value of Bitcoin options about to expire, at a put/call ratio of 0.84, with a “max pain” price potential of $51,000. BTC Options: Open interest by strike price. Source: Deribit While options expiry can lead to heightened volatility, the max pain price point doesn’t offer an accurate reflection of Bitcoin’s long-term price potential which is still tied to its fundamental values,  Yang explained: “Just as a fancy gaming PC case doesn't directly impact the performance of the hardware inside, max pain is an indicator that provides some insight but ultimately has limited influence on the actual price movement of Bitcoin.” Despite the options expiry, the expected price impact will be minimal, says Andrey Stoychev, the project manager at Nexo’s Prime Brokerage division. He told Cointelegraph: “With the current scenario where calls are substantially in the money while puts are converging to zero, delta hedging has largely concluded, and we anticipate minimal price impact from the expiry. However, the pivotal question remains: will the call profits be reinvested into new contracts, and if so, what strikes and maturities will be favored?” The pre-halving Bitcoin correction may be over Bitcoin price fell 0.7% in the 24 hours leading up to 10:35 am UTC to trade at $69,924, according to CoinMarketCap data. The world’s first cryptocurrency is up over 11.9% on the monthly chart. BTC/USDT/ 1-day chart. Source: CoinMarketCap Bitcoin’s historic pre-halving retracement occurred in line with previous historical retraces. The current pre-halving correction may be over if Bitcoin price can flip its old all-time high of $69,000 into support, said Rekt Capital in a March 26 video analysis: “Bitcoin is now peaking beyond this old all-time high, potentially positioning itself for this pre-halving retracement to be over.”

Bitcoin Trades Above $69K Following Largest Quarterly Options Expiry in History

Bitcoin (BTC) price remained above the $69,000 mark, despite the market experiencing the biggest quarterly Bitcoin futures options expiry events.

Hao Yang, the global head of derivatives trading at Bybit exchange, told Cointelegraph:

“We have experienced the largest option expiration in history, for Bybit and Deribit as well, people may roll over or unwind their hedging position during the expiration time, and the action of unwinding may have a small impact on the price movement in the very short term.”

Over $15.1 billion worth of cryptocurrency futures options have expired on Deribit this Friday, March 29, at 8:00 am UTC, according to a March 28 X post by Deribit.

Of the $15.1 billion, $9.53 billion represented the notional value of Bitcoin options about to expire, at a put/call ratio of 0.84, with a “max pain” price potential of $51,000.

BTC Options: Open interest by strike price. Source: Deribit

While options expiry can lead to heightened volatility, the max pain price point doesn’t offer an accurate reflection of Bitcoin’s long-term price potential which is still tied to its fundamental values,  Yang explained:

“Just as a fancy gaming PC case doesn't directly impact the performance of the hardware inside, max pain is an indicator that provides some insight but ultimately has limited influence on the actual price movement of Bitcoin.”

Despite the options expiry, the expected price impact will be minimal, says Andrey Stoychev, the project manager at Nexo’s Prime Brokerage division. He told Cointelegraph:

“With the current scenario where calls are substantially in the money while puts are converging to zero, delta hedging has largely concluded, and we anticipate minimal price impact from the expiry. However, the pivotal question remains: will the call profits be reinvested into new contracts, and if so, what strikes and maturities will be favored?”

The pre-halving Bitcoin correction may be over

Bitcoin price fell 0.7% in the 24 hours leading up to 10:35 am UTC to trade at $69,924, according to CoinMarketCap data. The world’s first cryptocurrency is up over 11.9% on the monthly chart.

BTC/USDT/ 1-day chart. Source: CoinMarketCap

Bitcoin’s historic pre-halving retracement occurred in line with previous historical retraces. The current pre-halving correction may be over if Bitcoin price can flip its old all-time high of $69,000 into support, said Rekt Capital in a March 26 video analysis:

“Bitcoin is now peaking beyond this old all-time high, potentially positioning itself for this pre-halving retracement to be over.”
Crypto Traders Bet $2.4M on Spot Ether ETF Approval ResultsCrypto gamblers are placing bets on whether a spot Ether (ETH) exchange-traded fund (ETF) will be approved by the United States Securities and Exchange Commission (SEC) before May 31. Polygon-based crypto gambling site Polymarket shows that traders have placed “Yes” or “No” bets on whether a spot Ether ETF application will be approved before May ends. Over $2.4 million worth of bets have been placed, with about 81% pessimistic about the chances of a spot Ether ETF approval before the end of May. Spot Ether ETF approval’s betting market. Source: Polymarket Crypto traders buy yes or no shares, depending on their predictions of how they expect things to go. The share’s value represents the odds of the bet and changes similarly to how the crypto market goes. At the moment, the cost of a Yes share is $0.19, while No is worth $0.81. This means fewer gamblers believe in the chances of spot ETH ETF approvals before the end of May. The top trader for Yes holds about $84,000 worth of shares, while the top holder for No has around $127,000 in No shares. If the SEC approves a spot Ether ETF before the betting market’s deadline of May 31, 2024, at 11:59 ET, the market will resolve, meaning that holders of Yes shares will be able to cash out their earnings. However, the opposite also applies if there are no approvals before the date. Related: Bitwise files with SEC for spot Ether ETF listing This is not the first time that crypto traders gambled on ETF approval results. On Jan. 5, Reddit users criticized Polymarket gamblers for betting on whether spot Bitcoin ETFs would be approved by the SEC before Jan. 15. A Reddit user described the betting as stupid and said it was like putting up dollars to win dimes. Meanwhile, another joked that they were about to lose their kid’s college fund to place a bet. The overall bets on the ETF outcomes have reached at least $12 million on the predictions market. The SEC eventually approved the trading and listing of 11 spot Bitcoin ETFs on Jan. 10. Investment management company Grayscale has expressed confidence in the approvals of spot Ether ETFs in May. On March 25, Grayscale Chief Legal Officer Craig Salm said that the SEC’s perceived “lack of engagement” with applicants does not indicate whether an ETF will be approved or not. Magazine: KuCoin’s desperate $10M airdrop, 1 tweet raises $37M for memecoin: Asia Express

Crypto Traders Bet $2.4M on Spot Ether ETF Approval Results

Crypto gamblers are placing bets on whether a spot Ether (ETH) exchange-traded fund (ETF) will be approved by the United States Securities and Exchange Commission (SEC) before May 31.

Polygon-based crypto gambling site Polymarket shows that traders have placed “Yes” or “No” bets on whether a spot Ether ETF application will be approved before May ends.

Over $2.4 million worth of bets have been placed, with about 81% pessimistic about the chances of a spot Ether ETF approval before the end of May.

Spot Ether ETF approval’s betting market. Source: Polymarket

Crypto traders buy yes or no shares, depending on their predictions of how they expect things to go. The share’s value represents the odds of the bet and changes similarly to how the crypto market goes.

At the moment, the cost of a Yes share is $0.19, while No is worth $0.81. This means fewer gamblers believe in the chances of spot ETH ETF approvals before the end of May.

The top trader for Yes holds about $84,000 worth of shares, while the top holder for No has around $127,000 in No shares.

If the SEC approves a spot Ether ETF before the betting market’s deadline of May 31, 2024, at 11:59 ET, the market will resolve, meaning that holders of Yes shares will be able to cash out their earnings. However, the opposite also applies if there are no approvals before the date.

Related: Bitwise files with SEC for spot Ether ETF listing

This is not the first time that crypto traders gambled on ETF approval results. On Jan. 5, Reddit users criticized Polymarket gamblers for betting on whether spot Bitcoin ETFs would be approved by the SEC before Jan. 15.

A Reddit user described the betting as stupid and said it was like putting up dollars to win dimes. Meanwhile, another joked that they were about to lose their kid’s college fund to place a bet.

The overall bets on the ETF outcomes have reached at least $12 million on the predictions market. The SEC eventually approved the trading and listing of 11 spot Bitcoin ETFs on Jan. 10.

Investment management company Grayscale has expressed confidence in the approvals of spot Ether ETFs in May. On March 25, Grayscale Chief Legal Officer Craig Salm said that the SEC’s perceived “lack of engagement” with applicants does not indicate whether an ETF will be approved or not.

Magazine: KuCoin’s desperate $10M airdrop, 1 tweet raises $37M for memecoin: Asia Express
Google’s Inclusion of Bitcoin Wallet Balances Sparks Privacy DebateGoogle has expanded its features to allow users to search wallet balances across blockchains such as Bitcoin, Arbitrum, Avalanche, Optimism, Polygon, and Fantom. When entering the wallet address, search results display the token balance by network along with the last updated time. Users can search three Bitcoin address formats — P2PKH, P2SH, and Bech32 — to view current balances and recent transaction updates. Incorporating Bitcoin data into search results boosts Google’s accessibility to on-chain activity, leveraging its extensive daily search volume.  While some applaud this move toward mainstream adoption, privacy-centric Bitcoin supporters have raised concerns about centralized data aggregation and its impact on privacy. An example of a Google Bitcoin wallet search. Source: Google Google’s latest feature comes after it introduced Ethereum Name Service (ENS) domain search results allowing users to check wallet balances with readable domain names like “vitalik.eth” for Ethereum wallet addresses. Google’s recent expansions build on its initial introduction of Ethereum wallet balance searches in May last year. In 2022, Google integrated a crypto feature enabling some Ethereum wallet addresses to have their Ether (ETH) balances tracked by the Google search engine, saving the need to make the trip to Etherscan. Related: Amazon takes minority share in ChatGPT rival Anthropic AI The addition of wallet searches marks a shift in attitude by the tech giant. Google prohibited Bitcoin-related advertisements in 2018 but recently reversed its stance, allowing Bitcoin exchange-traded fund (ETF) advertisements following their approval in January. ETF products from notable asset managers like BlackRock now appear in search results. In October 2022, Google partnered with Coinbase, allowing its customers to pay for cloud services with crypto. The tech firm also initiated a countdown to the Ethereum Merge event, at which Ethereum transitioned from proof-of-work (PoW) to proof-of-stake (PoS) in 2022 by featuring animated pandas moving in sync. In 2023, Google Cloud joined forces with Web3 startup Orderly Network to create user-centric developer tools for decentralized finance (DeFi) to lower the barrier of entry into the decentralized world. The collaboration aimed to address DeFi’s major hurdles: entry barriers and security issues, long-standing challenges in the ecosystem. Magazine: Doctor Who materializes in Web3 — Tony Pearce’s journey in time and space

Google’s Inclusion of Bitcoin Wallet Balances Sparks Privacy Debate

Google has expanded its features to allow users to search wallet balances across blockchains such as Bitcoin, Arbitrum, Avalanche, Optimism, Polygon, and Fantom. When entering the wallet address, search results display the token balance by network along with the last updated time.

Users can search three Bitcoin address formats — P2PKH, P2SH, and Bech32 — to view current balances and recent transaction updates.

Incorporating Bitcoin data into search results boosts Google’s accessibility to on-chain activity, leveraging its extensive daily search volume. 

While some applaud this move toward mainstream adoption, privacy-centric Bitcoin supporters have raised concerns about centralized data aggregation and its impact on privacy.

An example of a Google Bitcoin wallet search. Source: Google

Google’s latest feature comes after it introduced Ethereum Name Service (ENS) domain search results allowing users to check wallet balances with readable domain names like “vitalik.eth” for Ethereum wallet addresses.

Google’s recent expansions build on its initial introduction of Ethereum wallet balance searches in May last year. In 2022, Google integrated a crypto feature enabling some Ethereum wallet addresses to have their Ether (ETH) balances tracked by the Google search engine, saving the need to make the trip to Etherscan.

Related: Amazon takes minority share in ChatGPT rival Anthropic AI

The addition of wallet searches marks a shift in attitude by the tech giant. Google prohibited Bitcoin-related advertisements in 2018 but recently reversed its stance, allowing Bitcoin exchange-traded fund (ETF) advertisements following their approval in January.

ETF products from notable asset managers like BlackRock now appear in search results.

In October 2022, Google partnered with Coinbase, allowing its customers to pay for cloud services with crypto.

The tech firm also initiated a countdown to the Ethereum Merge event, at which Ethereum transitioned from proof-of-work (PoW) to proof-of-stake (PoS) in 2022 by featuring animated pandas moving in sync.

In 2023, Google Cloud joined forces with Web3 startup Orderly Network to create user-centric developer tools for decentralized finance (DeFi) to lower the barrier of entry into the decentralized world.

The collaboration aimed to address DeFi’s major hurdles: entry barriers and security issues, long-standing challenges in the ecosystem.

Magazine: Doctor Who materializes in Web3 — Tony Pearce’s journey in time and space
Ethena Labs Exploited for $290k on Binance LaunchpoolEthena Labs has been exploited for 480 BNB tokens worth $290,000 on the Binance launch pool for farming.  The vulnerability behind the exploit is still unknown. On-chain security firm PeckShield reported the incident at 8:31 a.m. UTC, on March 29, in an X post. Ethena Labs’s $ENA token was introduced on the Binance launchpool on March 29, a few hours before the exploit, enabling users to farm the token by staking BNB or FDUSD. Ethena Labs launched its USDe synthetic dollar on the public mainnet on Feb. 19. Ethena became the highest-earning decentralized application (DApp) in crypto on March 8, when it offered investors an annual percentage yield (APY) of 67%. In terms of total sum, the exploit is on the smaller side of crypto hacks. The attack occurred a day after the over $11 million Prisma Finance hack on March 28. Crypto hacks are a long-standing issue in the industry, erroding investor trust. Over $200 million worth of crypto has been lost to hacks and rug pulls in 2024 across 32 individual incidents up to Feb. 29, according to blockchain security firm Immunefi. The over $200 million loss represents a 15.4% increase compared to January and February 2023, when $173 million of digital assets were stolen. A total of $1.8 billion was lost to crypto hacks and scammers in 2023, of which 17% can be attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi. Related: Funds hacked in 2024 increased by 15.4% vs. the same period in 2023 — Immunefi This is a developing story, and further information will be added as it becomes available.

Ethena Labs Exploited for $290k on Binance Launchpool

Ethena Labs has been exploited for 480 BNB tokens worth $290,000 on the Binance launch pool for farming. 

The vulnerability behind the exploit is still unknown. On-chain security firm PeckShield reported the incident at 8:31 a.m. UTC, on March 29, in an X post.

Ethena Labs’s $ENA token was introduced on the Binance launchpool on March 29, a few hours before the exploit, enabling users to farm the token by staking BNB or FDUSD.

Ethena Labs launched its USDe synthetic dollar on the public mainnet on Feb. 19. Ethena became the highest-earning decentralized application (DApp) in crypto on March 8, when it offered investors an annual percentage yield (APY) of 67%.

In terms of total sum, the exploit is on the smaller side of crypto hacks. The attack occurred a day after the over $11 million Prisma Finance hack on March 28.

Crypto hacks are a long-standing issue in the industry, erroding investor trust. Over $200 million worth of crypto has been lost to hacks and rug pulls in 2024 across 32 individual incidents up to Feb. 29, according to blockchain security firm Immunefi.

The over $200 million loss represents a 15.4% increase compared to January and February 2023, when $173 million of digital assets were stolen.

A total of $1.8 billion was lost to crypto hacks and scammers in 2023, of which 17% can be attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi.

Related: Funds hacked in 2024 increased by 15.4% vs. the same period in 2023 — Immunefi

This is a developing story, and further information will be added as it becomes available.
Bitcoin Shows 'signs of Exhaustion' As Q1 BTC Price Gains Near 70%Bitcoin (BTC) risks “exhaustion” as it nears the end of Q1, 2024 with 65% BTC price gains. In an update sent to Telegram channel subscribers on March 29, trading firm QCP Capital warned that “exponential” upside could pose a problem next quarter. BTC price slows after "exponential" Q1 Bitcoin market observers are firmly focused on the weekend as several key candles — the weekly, monthly and quarterly — close at once. After a transformational start to the year, BTC price action continues to hover around all-time highs while still facing difficulty flipping them to new support. For QCP Capital, the outlook for the second quarter nonetheless remains “very bullish.” It summarized: “For Q2, there are sufficient catalysts to form a very bullish view: 1. continued BTC spot ETF demand (and shrinking supply as GBTC runs out) 2. BTC halving 3. London Stock Exchange ETNs 4. Potential ETH spot ETF approval.” Despite this, the extent of progress since the start of the year — including the launch of the United States spot Bitcoin exchange-traded funds (ETFs) in January — has been such that bulls may have problems continuing that momentum. “At the same time, the price rally has been exponential in Q1 and there are signs of exhaustion,” QCP explained. It flagged declining sentiment on largest altcoin Ether (ETH) and persistent high funding rates across exchanges. “While we remain bullish, we are cautious about leverage and we are also prepared to scoop some value on big dips,” the update concluded. Bitcoin monthly chart looks to match record The latest live data from Cointelegraph Markets Pro, TradingView and monitoring resource CoinGlass confirms that BTC/USD is 65.4% year-to-date. Related: Bitcoin ‘sell-side liquidity crisis’ sees BTC move for the first time since 2010 BTC/USD quarterly returns (screenshot). Source: CoinGlass This vies for supremacy with Q1, 2023, with just 6% separating the two quarters. Closing much above $61,000, meanwhile, BTC/USD will print a seventh consecutive green monthly candle — something only seen once before in its history in 2012. BTC/USD 1-month chart. Source: TradingView This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin Shows 'signs of Exhaustion' As Q1 BTC Price Gains Near 70%

Bitcoin (BTC) risks “exhaustion” as it nears the end of Q1, 2024 with 65% BTC price gains.

In an update sent to Telegram channel subscribers on March 29, trading firm QCP Capital warned that “exponential” upside could pose a problem next quarter.

BTC price slows after "exponential" Q1

Bitcoin market observers are firmly focused on the weekend as several key candles — the weekly, monthly and quarterly — close at once.

After a transformational start to the year, BTC price action continues to hover around all-time highs while still facing difficulty flipping them to new support.

For QCP Capital, the outlook for the second quarter nonetheless remains “very bullish.” It summarized:

“For Q2, there are sufficient catalysts to form a very bullish view:

1. continued BTC spot ETF demand (and shrinking supply as GBTC runs out)

2. BTC halving

3. London Stock Exchange ETNs

4. Potential ETH spot ETF approval.”

Despite this, the extent of progress since the start of the year — including the launch of the United States spot Bitcoin exchange-traded funds (ETFs) in January — has been such that bulls may have problems continuing that momentum.

“At the same time, the price rally has been exponential in Q1 and there are signs of exhaustion,” QCP explained.

It flagged declining sentiment on largest altcoin Ether (ETH) and persistent high funding rates across exchanges.

“While we remain bullish, we are cautious about leverage and we are also prepared to scoop some value on big dips,” the update concluded.

Bitcoin monthly chart looks to match record

The latest live data from Cointelegraph Markets Pro, TradingView and monitoring resource CoinGlass confirms that BTC/USD is 65.4% year-to-date.

Related: Bitcoin ‘sell-side liquidity crisis’ sees BTC move for the first time since 2010

BTC/USD quarterly returns (screenshot). Source: CoinGlass

This vies for supremacy with Q1, 2023, with just 6% separating the two quarters.

Closing much above $61,000, meanwhile, BTC/USD will print a seventh consecutive green monthly candle — something only seen once before in its history in 2012.

BTC/USD 1-month chart. Source: TradingView

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Binance Entity HKVAEX Withdraws Hong Kong License Application Post-deadlineHKVAEX, a Hong Kong-based crypto exchange allegedly tied to Binance, withdrew its license application from the Securities and Futures Commission of Hong Kong (SFC) on March 28. The SFC had set a deadline of Feb. 29 for all crypto exchanges to apply for operational licenses in the region. HKVAEX, a crypto exchange that, according to Chinese state media SCMP, shares technical and other resources with Binance, applied for the Hong Kong license on Jan. 4. List of all crypto exchanges that withdrew license applications with the Securities and Futures Commission of Hong Kong (SFC). Source: sfc.hk The SFC website confirms that HKVAEX withdrew its license application nearly three months after the filing. Following the application withdrawal, HKVAEX must wind up its operations in Hong Kong on or before May 31. The Hong Kong SFC shared deadlines for crypto license applications. Source: sfc.hk Binance did not respond to Cointelegraph’s request for comment about its links with HKVAEX or the exchange’s decision to withdraw the Hong Kong application. Three other virtual asset trading platforms have withdrawn their operational license applications in 2024 for reasons that were not made public, including the prominent global crypto exchange Huobi. X community member Wu Blockchain speculated that the reasons for the withdrawal may involve a variety of reasons, including a request to change the audit company or provide more information. At the time of its launch, HKVAEX was confused with VAEX, a different crypto exchange in Hong Kong tied to KuCoin. At the time, HKVAEX representative told Cointelegraph that “VAEXC is another applicant, and they have nothing to do with us.” Related: Binance executive reportedly escapes detention as Nigeria files tax evasion charges CommEx, a Russian crypto exchange with strong ties with Binance, officially announced it is shutting down operations and has halted deposits on March 25. “We have to announce the gradual suspension of operations on the CommEX platform,” the firm said, recommending users to withdraw their assets immediately to third-party wallets. Binance had previously hinted at exiting Russia in early September 2023 as top local executives, including vice president of Eastern Europe Gleb Kostarev, stepped down. Subsequently, CommEx emphasized that it operated independently of Binance, but admitted that some of its core members were former Binance staff. Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance

Binance Entity HKVAEX Withdraws Hong Kong License Application Post-deadline

HKVAEX, a Hong Kong-based crypto exchange allegedly tied to Binance, withdrew its license application from the Securities and Futures Commission of Hong Kong (SFC) on March 28.

The SFC had set a deadline of Feb. 29 for all crypto exchanges to apply for operational licenses in the region. HKVAEX, a crypto exchange that, according to Chinese state media SCMP, shares technical and other resources with Binance, applied for the Hong Kong license on Jan. 4.

List of all crypto exchanges that withdrew license applications with the Securities and Futures Commission of Hong Kong (SFC). Source: sfc.hk

The SFC website confirms that HKVAEX withdrew its license application nearly three months after the filing. Following the application withdrawal, HKVAEX must wind up its operations in Hong Kong on or before May 31.

The Hong Kong SFC shared deadlines for crypto license applications. Source: sfc.hk

Binance did not respond to Cointelegraph’s request for comment about its links with HKVAEX or the exchange’s decision to withdraw the Hong Kong application.

Three other virtual asset trading platforms have withdrawn their operational license applications in 2024 for reasons that were not made public, including the prominent global crypto exchange Huobi.

X community member Wu Blockchain speculated that the reasons for the withdrawal may involve a variety of reasons, including a request to change the audit company or provide more information.

At the time of its launch, HKVAEX was confused with VAEX, a different crypto exchange in Hong Kong tied to KuCoin.

At the time, HKVAEX representative told Cointelegraph that “VAEXC is another applicant, and they have nothing to do with us.”

Related: Binance executive reportedly escapes detention as Nigeria files tax evasion charges

CommEx, a Russian crypto exchange with strong ties with Binance, officially announced it is shutting down operations and has halted deposits on March 25.

“We have to announce the gradual suspension of operations on the CommEX platform,” the firm said, recommending users to withdraw their assets immediately to third-party wallets.

Binance had previously hinted at exiting Russia in early September 2023 as top local executives, including vice president of Eastern Europe Gleb Kostarev, stepped down.

Subsequently, CommEx emphasized that it operated independently of Binance, but admitted that some of its core members were former Binance staff.

Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance
Binance Exec Seeks Redress Over Nigeria Detention, Demands ApologyBinance's Head of Financial Crime Compliance has asked the Federal High Court in Nigeria to mandate the Office of the National Security Adviser (NSA) and the Economic and Financial Crimes Commission (EFCC) to issue an apology to him regarding his detention in the country. According to local reports, Tigran Gambaryan is suing the government for violating his fundamental human rights. Gambaryan’s motion claims that his detention in Nigeria soon after his arrival in February and the confiscation of his passport violates the country’s constitution, which guarantees an individual’s right to personal liberty. In the lawsuit, Gambaryan disclosed that the federal government is using his ongoing detention “as a means to exert pressure and persist in making requests to Binance.” The motion emphasized that Nigeria could communicate with Binance through other channels instead of detaining Gambaryan, who only attended a meeting. Source: ObiUcheUzoije The financial crime compliance head for Binance also reportedly requested the court to order the immediate return of his passport and the issuance of a public apology. Nadeem Anjarwalla, Binance’s Africa regional manager, detained alongside Gambaryan, also lodged a similar complaint. Anjarwalla reportedly escaped Nigerian detention recently. During the court session, Gambaryan’s attorney informed Justice Inyang Ekwo that their application had been served to the respondents, who still had time to reply. The lawyer requested an adjournment for the NSA and EFCC to respond. The judge granted the request, postponing the case to April 8. Related: Binance’s Russian successor CommEx to shut down in April Among Nigerian crypto enthusiasts, various theories have risen in a bid to make sense of the situation. An enthusiast, who identifies as Chineduokoli_ expressed concerns about the possibility of getting proper redress in a Nigerian court. Another individual, ObiUcheUzoije, questioned the delay in the Binance executive’s decision to file a lawsuit against the agencies and speculated whether his colleague’s escape prompted it. Gambaryan, a U.S. citizen, and Anjarwalla, who holds both British and Kenyan citizenship, purportedly landed in Abuja, Nigeria’s capital, on Feb. 25. The court allowed the EFCC to hold the Binance executives for 14 days and ordered Binance to give the government access to data and details of Nigerian traders using its platform. Nigeria’s Federal High Court will arraign Binance and the two executives on April 4. Meanwhile, the government plans to enlist Interpol’s help top recapture ting Anjarwalla for trial. Magazine: Is measuring blockchain transactions per second (TPS) stupid in 2024? Big Questions

Binance Exec Seeks Redress Over Nigeria Detention, Demands Apology

Binance's Head of Financial Crime Compliance has asked the Federal High Court in Nigeria to mandate the Office of the National Security Adviser (NSA) and the Economic and Financial Crimes Commission (EFCC) to issue an apology to him regarding his detention in the country.

According to local reports, Tigran Gambaryan is suing the government for violating his fundamental human rights. Gambaryan’s motion claims that his detention in Nigeria soon after his arrival in February and the confiscation of his passport violates the country’s constitution, which guarantees an individual’s right to personal liberty.

In the lawsuit, Gambaryan disclosed that the federal government is using his ongoing detention “as a means to exert pressure and persist in making requests to Binance.”

The motion emphasized that Nigeria could communicate with Binance through other channels instead of detaining Gambaryan, who only attended a meeting.

Source: ObiUcheUzoije

The financial crime compliance head for Binance also reportedly requested the court to order the immediate return of his passport and the issuance of a public apology.

Nadeem Anjarwalla, Binance’s Africa regional manager, detained alongside Gambaryan, also lodged a similar complaint. Anjarwalla reportedly escaped Nigerian detention recently.

During the court session, Gambaryan’s attorney informed Justice Inyang Ekwo that their application had been served to the respondents, who still had time to reply.

The lawyer requested an adjournment for the NSA and EFCC to respond. The judge granted the request, postponing the case to April 8.

Related: Binance’s Russian successor CommEx to shut down in April

Among Nigerian crypto enthusiasts, various theories have risen in a bid to make sense of the situation. An enthusiast, who identifies as Chineduokoli_ expressed concerns about the possibility of getting proper redress in a Nigerian court.

Another individual, ObiUcheUzoije, questioned the delay in the Binance executive’s decision to file a lawsuit against the agencies and speculated whether his colleague’s escape prompted it.

Gambaryan, a U.S. citizen, and Anjarwalla, who holds both British and Kenyan citizenship, purportedly landed in Abuja, Nigeria’s capital, on Feb. 25.

The court allowed the EFCC to hold the Binance executives for 14 days and ordered Binance to give the government access to data and details of Nigerian traders using its platform.

Nigeria’s Federal High Court will arraign Binance and the two executives on April 4. Meanwhile, the government plans to enlist Interpol’s help top recapture ting Anjarwalla for trial.

Magazine: Is measuring blockchain transactions per second (TPS) stupid in 2024? Big Questions
Bitcoin to Attract $1 Trillion From Institutions Amid ‘raging Bull Market’ — Bitwise ExecBitwise’s chief investment officer Matthew Hougan said institutional investors would likely inject as much as $1 trillion into Bitcoin (BTC) through exchange-traded funds (ETFs) as they slowly move into crypto. In a memo sent to investment professionals, Hougan addressed concerns over Bitcoin’s price volatility. As the asset bounces between $60,000 and $70,000, the executive said the best approach would be to “keep calm and take the long view.” Source: Bitwise While the price seems unstable in the short term, Hougan noted many key events to look forward to in the coming months and years. These include the Bitcoin halving and the spot Bitcoin ETFs getting approved on national account platforms like Morgan Stanley or Wells Fargo. Furthermore, the executive highlighted that the space has to wait for investment committees and consultants still conducting their formal due diligence on Bitcoin. This is a necessary step they have to take before investing in the asset. Related: Bitcoin Halving: Latest News and Full Coverage by Cointelegraph Hougan said that while the space waits for these key events, the BTC price would likely “chop sideways” whenever there are small changes in sentiment. However, the investment officer believes things would be different long-term. Hougan wrote: “But long-term, we believe Bitcoin is in a raging bull market. Not only is it up nearly 300% in the past 15 months, but there are strong reasons to think that will continue.” According to Hougan, the spot Bitcoin ETF approvals in January opened crypto to investment professionals in a major way. Related: 3 theories why the SEC may be eyeing down Ethereum: Crypto lawyer He also believes that investment professionals who control trillions of dollars are just starting to move into crypto. Hougan highlighted that onboarding more professional investors would “take years, not months.” The executive also said that the $12 billion flowing into ETFs since its launch is exciting and is “the most successful ETF launch of all time.” However, he believes that once global wealth managers begin to allocate 1% of their portfolio into Bitcoin, this would mean $1 trillion in inflows into the space. “A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment,” he added. Magazine: Ether ETFs face Senate opposition, Wright is not Satoshi, and Dencun goes live: Hodler’s Digest, March 10-16

Bitcoin to Attract $1 Trillion From Institutions Amid ‘raging Bull Market’ — Bitwise Exec

Bitwise’s chief investment officer Matthew Hougan said institutional investors would likely inject as much as $1 trillion into Bitcoin (BTC) through exchange-traded funds (ETFs) as they slowly move into crypto.

In a memo sent to investment professionals, Hougan addressed concerns over Bitcoin’s price volatility. As the asset bounces between $60,000 and $70,000, the executive said the best approach would be to “keep calm and take the long view.”

Source: Bitwise

While the price seems unstable in the short term, Hougan noted many key events to look forward to in the coming months and years.

These include the Bitcoin halving and the spot Bitcoin ETFs getting approved on national account platforms like Morgan Stanley or Wells Fargo.

Furthermore, the executive highlighted that the space has to wait for investment committees and consultants still conducting their formal due diligence on Bitcoin. This is a necessary step they have to take before investing in the asset.

Related: Bitcoin Halving: Latest News and Full Coverage by Cointelegraph

Hougan said that while the space waits for these key events, the BTC price would likely “chop sideways” whenever there are small changes in sentiment. However, the investment officer believes things would be different long-term. Hougan wrote:

“But long-term, we believe Bitcoin is in a raging bull market. Not only is it up nearly 300% in the past 15 months, but there are strong reasons to think that will continue.”

According to Hougan, the spot Bitcoin ETF approvals in January opened crypto to investment professionals in a major way.

Related: 3 theories why the SEC may be eyeing down Ethereum: Crypto lawyer

He also believes that investment professionals who control trillions of dollars are just starting to move into crypto. Hougan highlighted that onboarding more professional investors would “take years, not months.”

The executive also said that the $12 billion flowing into ETFs since its launch is exciting and is “the most successful ETF launch of all time.” However, he believes that once global wealth managers begin to allocate 1% of their portfolio into Bitcoin, this would mean $1 trillion in inflows into the space.

“A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment,” he added.

Magazine: Ether ETFs face Senate opposition, Wright is not Satoshi, and Dencun goes live: Hodler’s Digest, March 10-16
FTX Former Execs and Promotors to Settle Class Lawsuit for $1.3MFormer FTX executives and promotors have come to a nearly $1.36 million settlement with a class action group of the crypto exchange’s former investors seeking compensation for being defrauded. FTX co-founder Zixiao “Gary” Wang, former engineering lead Nishad Singh and sister trading firm Alameda Research ex-CEO Caroline Ellison agreed to cooperate and give information to the lawsuit to resolve the claims against them, according to a March 27 Miami federal court bid seeking the settlements’ approval. Settlements were also reached with seven other influencers and former FTX chief regulatory officer and FTX.US chief compliance officer Daniel Friedberg. The former execs didn’t admit to any of the lawsuit’s allegations, but the class group found the trio’s “knowledge and other information” would be valuable in strengthening its case against others it sued — including celebrities, companies and venture capitalists. A highlighted excerpt of Ellison’s settlement notes her testimony against former boyfriend Sam Bankman-Fried could help the suit — the FTX MDL (multidistrict litigation). Source: PACER Wang, Singh and Ellison will turn over — and have already begun sharing — “all non-privileged documents and/or data” they gave when helping prosecutors lock up their old boss Sam Bankman-Fried for 25 years. The three each face their own sentences after pleading guilty to fraud. The class will affirm their cooperation with the court before their sentencing. The former execs will also hand in records used in FTX’s bankruptcy case and make themselves available for depositions and hearings. The settlement agreement further saw the three agree to forfeit their assets for the judge in their criminal case to decide the recovery and distribution of victim funds. They are not to oppose a request from FTX investors that the funds be distributed through the class suit, as opposed to FTX’s proposed bankruptcy paybacks or other lawsuits. A settlement with Friedberg was also reached, with the filings noting he has voluntarily “provided valuable information” to the class group and “has agreed to do so on an ongoing basis.” Related: Sam Bankman-Fried sentenced to 25 years in prison Friedberg’s settlement notes he “did not have knowledge of the FTX fraud,” and after he found out about it, he “immediately resigned” and “promptly contacted the authorities.” Seven YouTubers and influencers also paid to settle the suit, including $180,000 from Brian Jung, $122,000 from Kevin Paffrath, $37,485 from Tom Nash, $10,000 from Graham Stephan, and $5,000 each from Jeremy LeFebvre and Andrei Jikh. Information for American football star William Trevor Lawrence’s settlement wasn’t available, but he seemingly paid $1 million to settle based on the total disclosed relief minus the other agreements’ sums. All named in the settlements were released “from all claims related to any of the alleged conduct giving rise to this litigation.” Deposit risk: What do crypto exchanges really do with your money?

FTX Former Execs and Promotors to Settle Class Lawsuit for $1.3M

Former FTX executives and promotors have come to a nearly $1.36 million settlement with a class action group of the crypto exchange’s former investors seeking compensation for being defrauded.

FTX co-founder Zixiao “Gary” Wang, former engineering lead Nishad Singh and sister trading firm Alameda Research ex-CEO Caroline Ellison agreed to cooperate and give information to the lawsuit to resolve the claims against them, according to a March 27 Miami federal court bid seeking the settlements’ approval.

Settlements were also reached with seven other influencers and former FTX chief regulatory officer and FTX.US chief compliance officer Daniel Friedberg.

The former execs didn’t admit to any of the lawsuit’s allegations, but the class group found the trio’s “knowledge and other information” would be valuable in strengthening its case against others it sued — including celebrities, companies and venture capitalists.

A highlighted excerpt of Ellison’s settlement notes her testimony against former boyfriend Sam Bankman-Fried could help the suit — the FTX MDL (multidistrict litigation). Source: PACER

Wang, Singh and Ellison will turn over — and have already begun sharing — “all non-privileged documents and/or data” they gave when helping prosecutors lock up their old boss Sam Bankman-Fried for 25 years.

The three each face their own sentences after pleading guilty to fraud. The class will affirm their cooperation with the court before their sentencing.

The former execs will also hand in records used in FTX’s bankruptcy case and make themselves available for depositions and hearings.

The settlement agreement further saw the three agree to forfeit their assets for the judge in their criminal case to decide the recovery and distribution of victim funds.

They are not to oppose a request from FTX investors that the funds be distributed through the class suit, as opposed to FTX’s proposed bankruptcy paybacks or other lawsuits.

A settlement with Friedberg was also reached, with the filings noting he has voluntarily “provided valuable information” to the class group and “has agreed to do so on an ongoing basis.”

Related: Sam Bankman-Fried sentenced to 25 years in prison

Friedberg’s settlement notes he “did not have knowledge of the FTX fraud,” and after he found out about it, he “immediately resigned” and “promptly contacted the authorities.”

Seven YouTubers and influencers also paid to settle the suit, including $180,000 from Brian Jung, $122,000 from Kevin Paffrath, $37,485 from Tom Nash, $10,000 from Graham Stephan, and $5,000 each from Jeremy LeFebvre and Andrei Jikh.

Information for American football star William Trevor Lawrence’s settlement wasn’t available, but he seemingly paid $1 million to settle based on the total disclosed relief minus the other agreements’ sums.

All named in the settlements were released “from all claims related to any of the alleged conduct giving rise to this litigation.”

Deposit risk: What do crypto exchanges really do with your money?
Bitcoin Cash Open Interest Surges Past $700M Ahead of BCH HalvingBitcoin Cash (BCH) is currently trading at $574.84, having jumped 9.06% over the past 24 hours as the second-ever BCH halving event is set to take place next week. Traders appear to be heavily securing their positions in anticipation of the BCH halving, which is scheduled for April 4, according to NiceHash data. On March 28, $190,140 was liquidated in short positions and $211,870 in long positions. On the same day, open interest (OI) in Bitcoin Cash futures perpetual contracts reached all-time highs of $708.75 million, spiking 18.26% in 24 hours and 165% over the past 7 days, as per CoinGlass data. Bitcoin Cash open interest surged to record highs ahead of the halving next week. Source: CoinGlass The last instance nearing this level was in May 2021, with OI reaching $684.12 million, coinciding with BCH reaching its highest price in the past five years at $1,399. This is in contrast to the same date in 2020, where futures open interest stood at $63.29, just before the first-ever BCH halving on April 8, 2020. At the time, miner rewards halved from 12.5 BCH to 6.25 BCH. However, miners seem to be taking this as a cue to increase their mining efforts ahead of the upcoming halving. A user on X, “DavidShares,” told his 17,900 followers that the Bitcoin Cash hash rate has doubled in the past week. Source: David Shares Hash rate is the measure of the total computational power used for mining and processing transactions on a proof-of-work blockchain, measured by the number of hashes generated. Related: Bitcoin gears up for a ‘massive’ short squeeze, price could go ‘vertical’ However, while Bitcoin approaches its fourth halving on April 21 amid record highs, Bitcoin Cash remains significantly below its all-time high of $4,355, which it reached in December 2017, as per CoinMarketCap data. BCH halving occurs slightly earlier than Bitcoin halving due to Bitcoin Cash temporarily using a different algorithm to adjust its mining difficulty back in 2017, therefore speeding up the block creation time. The Bitcoin halving is scheduled for April 21. Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance

Bitcoin Cash Open Interest Surges Past $700M Ahead of BCH Halving

Bitcoin Cash (BCH) is currently trading at $574.84, having jumped 9.06% over the past 24 hours as the second-ever BCH halving event is set to take place next week.

Traders appear to be heavily securing their positions in anticipation of the BCH halving, which is scheduled for April 4, according to NiceHash data.

On March 28, $190,140 was liquidated in short positions and $211,870 in long positions.

On the same day, open interest (OI) in Bitcoin Cash futures perpetual contracts reached all-time highs of $708.75 million, spiking 18.26% in 24 hours and 165% over the past 7 days, as per CoinGlass data.

Bitcoin Cash open interest surged to record highs ahead of the halving next week. Source: CoinGlass

The last instance nearing this level was in May 2021, with OI reaching $684.12 million, coinciding with BCH reaching its highest price in the past five years at $1,399.

This is in contrast to the same date in 2020, where futures open interest stood at $63.29, just before the first-ever BCH halving on April 8, 2020.

At the time, miner rewards halved from 12.5 BCH to 6.25 BCH. However, miners seem to be taking this as a cue to increase their mining efforts ahead of the upcoming halving. A user on X, “DavidShares,” told his 17,900 followers that the Bitcoin Cash hash rate has doubled in the past week.

Source: David Shares

Hash rate is the measure of the total computational power used for mining and processing transactions on a proof-of-work blockchain, measured by the number of hashes generated.

Related: Bitcoin gears up for a ‘massive’ short squeeze, price could go ‘vertical’

However, while Bitcoin approaches its fourth halving on April 21 amid record highs, Bitcoin Cash remains significantly below its all-time high of $4,355, which it reached in December 2017, as per CoinMarketCap data.

BCH halving occurs slightly earlier than Bitcoin halving due to Bitcoin Cash temporarily using a different algorithm to adjust its mining difficulty back in 2017, therefore speeding up the block creation time.

The Bitcoin halving is scheduled for April 21.

Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance
New Bitcoin ETFs Now Hold 500,000 BTC and GBTC Outflows SlowThe nine new spot Bitcoin exchange-traded funds have accumulated over 500,000 Bitcoin (BTC) since launching in January, with their holdings now accounting for 2.54% of the current circulating supply. The nine ETFs, which launched on Jan. 11, hit the milestone following another day of inflows on Thursday, which saw the nine ETFs scoop up $287.7 million in Bitcoin, according to Farside Investors. This brings the amount of Bitcoin held by the nine ETFs to a current worth of $35 billion over just 54 trading days. Source: HODL15Capital In total, all U.S. spot Bitcoin funds, including Grayscale, hold 835,000 BTC, which is almost 4% of the entire supply, it noted. This week’s ETF inflows are back in the black this week with $845 million in inflows measured so far this week, reversing a trend of outflows that began on March 18. On March 28, there was a total inflow of $183 million, with BlackRock leading the pack as its IBIT fund saw $95 million coming in. Fidelity and Bitwise saw similar inflows of around $67 million each, while Ark 21Shares saw $27.6 million following a huge inflow of $200 million on Wednesday. Grayscale’s GBTC outflow was $105 million, which is the lowest it has been since March 12. The crypto asset manager has now shed around 284,846 BTC from its GBTC fund since it converted to a spot ETF in mid-January. Related: Spot Bitcoin ETFs regain traction, posting $418M net inflows In related news, Bitwise filed an S-1 application with the Securities and Exchange Commission for their spot Ethereum ETF on March 28. Fellow ETF analyst Eric Balchunas reacted to the news stating that his odds for ETH ETF approval in May remain a pessimistic 25% but he could go lower. There are seven weeks until the deadline and the radio silence from SEC is bleak, he added. Source: Eric Balchunas Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments — Trezor CEO

New Bitcoin ETFs Now Hold 500,000 BTC and GBTC Outflows Slow

The nine new spot Bitcoin exchange-traded funds have accumulated over 500,000 Bitcoin (BTC) since launching in January, with their holdings now accounting for 2.54% of the current circulating supply.

The nine ETFs, which launched on Jan. 11, hit the milestone following another day of inflows on Thursday, which saw the nine ETFs scoop up $287.7 million in Bitcoin, according to Farside Investors.

This brings the amount of Bitcoin held by the nine ETFs to a current worth of $35 billion over just 54 trading days.

Source: HODL15Capital

In total, all U.S. spot Bitcoin funds, including Grayscale, hold 835,000 BTC, which is almost 4% of the entire supply, it noted.

This week’s ETF inflows are back in the black this week with $845 million in inflows measured so far this week, reversing a trend of outflows that began on March 18.

On March 28, there was a total inflow of $183 million, with BlackRock leading the pack as its IBIT fund saw $95 million coming in.

Fidelity and Bitwise saw similar inflows of around $67 million each, while Ark 21Shares saw $27.6 million following a huge inflow of $200 million on Wednesday.

Grayscale’s GBTC outflow was $105 million, which is the lowest it has been since March 12.

The crypto asset manager has now shed around 284,846 BTC from its GBTC fund since it converted to a spot ETF in mid-January.

Related: Spot Bitcoin ETFs regain traction, posting $418M net inflows

In related news, Bitwise filed an S-1 application with the Securities and Exchange Commission for their spot Ethereum ETF on March 28.

Fellow ETF analyst Eric Balchunas reacted to the news stating that his odds for ETH ETF approval in May remain a pessimistic 25% but he could go lower. There are seven weeks until the deadline and the radio silence from SEC is bleak, he added.

Source: Eric Balchunas

Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments — Trezor CEO
Vitalik Buterin Wants Rollups to Hit Stage 1 Decentralization By Year-endEthereum co-founder Vitalik Buterin is proposing to raise the bar on what’s considered a rollup in the Ethereum ecosystem — and suggests developers should aim to get their decentralization efforts in order by the end of the year.  The comments came in his latest blog post on March 28, reflecting on the year ahead following Ethereum’s latest Dencun upgrade, which significantly reduced transaction fees for rollups on layer 2. Buterin noted that Ethereum was in the “process of a decisive shift” from a “very rapid L1 progress era” to an era where L1 progress will still be very significant. He also said that Ethereum’s scaling efforts have shifted from a “zero-to-one” problem to an incremental problem, as further scaling work will focus on increasing blob capacity and improving rollup efficiency, he said. Source: Vitalik Buterin He continued to state that the ecosystem’s standards will need to become stricter, adding: “By the end of the year, I think our standards should increase and we should only treat a project as a rollup if it has actually reached at least stage 1.” Stage 1 is Buterin’s classification of layer-2’s decentralization progress, whereby a network has advanced enough in terms of security and scaling but is not yet fully decentralized (which would be stage 2). He observed that only five of the layer-2 projects listed on L2beat are at either stage 1 or 2, and only Arbitrum is fully EVM (Ethereum Virtual Machine) compatible. The next steps on the roadmap include implementing data availability sampling to increase blob capacity to 16MB per slot, optimizing layer 2 solutions through techniques like data compression, optimistic execution, and improved security. L2 data compression. Source: Vitalik Buterin “After this, we can cautiously move toward stage 2: a world where rollups truly are backed by code, and a security council can only intervene if the code “provably disagrees with itself,” he added. Related: Vitalik Buterin is cooking up a new way to decentralize Ethereum staking Buterin said that further changes such as Verkle trees, single-slot finality, and account abstraction are still significant, “but they are not drastic to the same extent that proof of stake and sharding are.” “In 2022, Ethereum was like a plane replacing its engines mid-flight. In 2023, it was replacing its wings.” Ethereum is currently at “The Surge” phase of its upgrade roadmap with upgrades related to scalability by rollups and data sharding. The next phase, “The Scourge,” will have upgrades related to censorship resistance, decentralization, and protocol risks from MEV. Developers should design applications with a “2020s Ethereum” mindset, embracing layer-2 scaling, privacy, account abstraction, and new forms of community membership proofs, he said before concluding: “Ethereum has upgraded from being ‘just’ a financial ecosystem into a much more thorough independent decentralized tech stack.” Magazine: ‘Account abstraction’ supercharges Ethereum wallets: Dummies guide

Vitalik Buterin Wants Rollups to Hit Stage 1 Decentralization By Year-end

Ethereum co-founder Vitalik Buterin is proposing to raise the bar on what’s considered a rollup in the Ethereum ecosystem — and suggests developers should aim to get their decentralization efforts in order by the end of the year. 

The comments came in his latest blog post on March 28, reflecting on the year ahead following Ethereum’s latest Dencun upgrade, which significantly reduced transaction fees for rollups on layer 2.

Buterin noted that Ethereum was in the “process of a decisive shift” from a “very rapid L1 progress era” to an era where L1 progress will still be very significant.

He also said that Ethereum’s scaling efforts have shifted from a “zero-to-one” problem to an incremental problem, as further scaling work will focus on increasing blob capacity and improving rollup efficiency, he said.

Source: Vitalik Buterin

He continued to state that the ecosystem’s standards will need to become stricter, adding:

“By the end of the year, I think our standards should increase and we should only treat a project as a rollup if it has actually reached at least stage 1.”

Stage 1 is Buterin’s classification of layer-2’s decentralization progress, whereby a network has advanced enough in terms of security and scaling but is not yet fully decentralized (which would be stage 2).

He observed that only five of the layer-2 projects listed on L2beat are at either stage 1 or 2, and only Arbitrum is fully EVM (Ethereum Virtual Machine) compatible.

The next steps on the roadmap include implementing data availability sampling to increase blob capacity to 16MB per slot, optimizing layer 2 solutions through techniques like data compression, optimistic execution, and improved security.

L2 data compression. Source: Vitalik Buterin

“After this, we can cautiously move toward stage 2: a world where rollups truly are backed by code, and a security council can only intervene if the code “provably disagrees with itself,” he added.

Related: Vitalik Buterin is cooking up a new way to decentralize Ethereum staking

Buterin said that further changes such as Verkle trees, single-slot finality, and account abstraction are still significant, “but they are not drastic to the same extent that proof of stake and sharding are.”

“In 2022, Ethereum was like a plane replacing its engines mid-flight. In 2023, it was replacing its wings.”

Ethereum is currently at “The Surge” phase of its upgrade roadmap with upgrades related to scalability by rollups and data sharding. The next phase, “The Scourge,” will have upgrades related to censorship resistance, decentralization, and protocol risks from MEV.

Developers should design applications with a “2020s Ethereum” mindset, embracing layer-2 scaling, privacy, account abstraction, and new forms of community membership proofs, he said before concluding:

“Ethereum has upgraded from being ‘just’ a financial ecosystem into a much more thorough independent decentralized tech stack.”

Magazine: ‘Account abstraction’ supercharges Ethereum wallets: Dummies guide
MicroStrategy Is Trading At an ‘unjustifiable Premium’ to Bitcoin: AnalystThere may be little reason left for investors to trade MicroStrategy stocks to gain exposure to Bitcoin (BTC) after the approval of several spot Bitcoin exchange-traded funds (ETF) this year, argues investment firm Kerrisdale Capital. MicroStrategy’s executive chairman Michael Saylor, would likely beg to differ.  “The days when MicroStrategy shares represented a rare, unique way to gain access to Bitcoin are long over,” Kerrisdale Capital explained in a March 28 analyst note, adding it believes MSTR price is overvalued. The firm noted it had short positions on the MicroStrategy stock. “We are long bitcoin and short shares of MicroStrategy, a proxy for bitcoin which trades at an unjustifiable premium to the digital asset that drives its value.” MSTR is currently trading at $1,704. Over the last month, it saw a growth of 66.65%, and over the past six months, it has experienced an increase of approximately 419%. On the other hand, Bitcoin’s price currently stands at $70,849. It has had a one month increase of 15.8%, and soared 163.31% over the past six months. “Shares of MicroStrategy have soared amid a recent rise in the price of bitcoin but, as is often the case with crypto, things have gotten carried away,” it stated. ​​MSTR stock price has risen 419% over the past six months. Source: Google Finance It also pointed out MicroStrategy's increasing debt-to-asset ratio and limited cash flow, which amounted to just $10 million in 2023 from its “sleepy” software analytics business. This made up only 3% of the company's overall enterprise value. MicroStrategy’s Saylor confident in firm's offering However, Saylor has said on several occasions that he remains confident his company would continue to be an attractive offer for investors.  In December, Saylor told Bloomberg TV that his company would still offer a high-performance vehicle for people who are Bitcoin-long investors.  “The ETFs are unlevered and they charge a fee,” Saylor told Bloomberg. “We provide you leverage, but we don’t charge a fee.” Source: Thomas Fahrer Saylor also recently announced that MicroStrategy is undergoing a rebrand as a “Bitcoin development company.” In a Feb. 12 interview with CNBC, Saylor explained that “it is a natural decision for us given the success of our Bitcoin strategy, and our unique status as the world’s largest public company holder.” MicroStrategy holds 214,246 Bitcoin, as per data from Bitcoin Treasuries. This is approximately a 54% increase from its holdings of 138,955 Bitcoin this time last year. Saylor added that MicroStrategy, as an operating company, has more flexibility in managing its capital and operations than an investment trust. “We’re going to develop software, we’re going to generate cash flow, we’re going to leverage the capital markets, all in order to accumulate more Bitcoin for our shareholders, and also to promote the growth of the Bitcoin network," he stated. On March 19, Cointelegraph reported that MicroStrategy sold another $604 million in convertible notes to buy an additional 9,245 BTC. Related: Bitcoin is more of a ‘billion-dollar building in cyberspace,’ argues Saylor Kerrisdale Capital says it remains bullish on Bitcoin, claiming it provides much better direct value for investors. The firm indicated that MSTR's current price implies Bitcoin’s price is $177,000, approximately two and a half times the price of Bitcoin. The firm also revealed it has long positions in two newly approved spot Bitcoin ETFs, the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC). It claimed that shareholders would find equivalent value in owning Bitcoin directly rather than holding MSTR stock at this stage. “Shareholder value creation has been overwhelmingly driven by simple bitcoin price appreciation – much as it would from owning bitcoin outright." Despite MicroStrategy seeing significant growth in its stock over the past 12 months, it declined approximately 11.18% on the day. Cointelegraph reached out to MicroStrategy for comment but did not receive a response at the time of publication. Magazine: China will intensify Bitcoin bull run, $1M by 2028: Bitcoin Man, X Hall of Flame

MicroStrategy Is Trading At an ‘unjustifiable Premium’ to Bitcoin: Analyst

There may be little reason left for investors to trade MicroStrategy stocks to gain exposure to Bitcoin (BTC) after the approval of several spot Bitcoin exchange-traded funds (ETF) this year, argues investment firm Kerrisdale Capital.

MicroStrategy’s executive chairman Michael Saylor, would likely beg to differ. 

“The days when MicroStrategy shares represented a rare, unique way to gain access to Bitcoin are long over,” Kerrisdale Capital explained in a March 28 analyst note, adding it believes MSTR price is overvalued.

The firm noted it had short positions on the MicroStrategy stock.

“We are long bitcoin and short shares of MicroStrategy, a proxy for bitcoin which trades at an unjustifiable premium to the digital asset that drives its value.”

MSTR is currently trading at $1,704. Over the last month, it saw a growth of 66.65%, and over the past six months, it has experienced an increase of approximately 419%.

On the other hand, Bitcoin’s price currently stands at $70,849. It has had a one month increase of 15.8%, and soared 163.31% over the past six months.

“Shares of MicroStrategy have soared amid a recent rise in the price of bitcoin but, as is often the case with crypto, things have gotten carried away,” it stated.

​​MSTR stock price has risen 419% over the past six months. Source: Google Finance

It also pointed out MicroStrategy's increasing debt-to-asset ratio and limited cash flow, which amounted to just $10 million in 2023 from its “sleepy” software analytics business. This made up only 3% of the company's overall enterprise value.

MicroStrategy’s Saylor confident in firm's offering

However, Saylor has said on several occasions that he remains confident his company would continue to be an attractive offer for investors. 

In December, Saylor told Bloomberg TV that his company would still offer a high-performance vehicle for people who are Bitcoin-long investors. 

“The ETFs are unlevered and they charge a fee,” Saylor told Bloomberg. “We provide you leverage, but we don’t charge a fee.”

Source: Thomas Fahrer

Saylor also recently announced that MicroStrategy is undergoing a rebrand as a “Bitcoin development company.”

In a Feb. 12 interview with CNBC, Saylor explained that “it is a natural decision for us given the success of our Bitcoin strategy, and our unique status as the world’s largest public company holder.”

MicroStrategy holds 214,246 Bitcoin, as per data from Bitcoin Treasuries. This is approximately a 54% increase from its holdings of 138,955 Bitcoin this time last year.

Saylor added that MicroStrategy, as an operating company, has more flexibility in managing its capital and operations than an investment trust.

“We’re going to develop software, we’re going to generate cash flow, we’re going to leverage the capital markets, all in order to accumulate more Bitcoin for our shareholders, and also to promote the growth of the Bitcoin network," he stated.

On March 19, Cointelegraph reported that MicroStrategy sold another $604 million in convertible notes to buy an additional 9,245 BTC.

Related: Bitcoin is more of a ‘billion-dollar building in cyberspace,’ argues Saylor

Kerrisdale Capital says it remains bullish on Bitcoin, claiming it provides much better direct value for investors. The firm indicated that MSTR's current price implies Bitcoin’s price is $177,000, approximately two and a half times the price of Bitcoin.

The firm also revealed it has long positions in two newly approved spot Bitcoin ETFs, the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC).

It claimed that shareholders would find equivalent value in owning Bitcoin directly rather than holding MSTR stock at this stage.

“Shareholder value creation has been overwhelmingly driven by simple bitcoin price appreciation – much as it would from owning bitcoin outright."

Despite MicroStrategy seeing significant growth in its stock over the past 12 months, it declined approximately 11.18% on the day.

Cointelegraph reached out to MicroStrategy for comment but did not receive a response at the time of publication.

Magazine: China will intensify Bitcoin bull run, $1M by 2028: Bitcoin Man, X Hall of Flame
Mystery Malware Targets Call of Duty Cheaters, Stealing Their BitcoinA new flood of mystery malware has reportedly been targeting video gamers and draining their Bitcoin (BTC) wallets as part of a new info stealer campaign, which also has been targeting cheaters.  Malware information repository vx-underground said in a March 28 X post it was aware of a “currently unidentified Threat Actor” using malware to steal login and other credentials of those using pay-to-cheat video game software. The attacks target players, including those who buy cheating software, and have compromised over 4.9 million accounts for Activision Blizzard users and its game store Battle.net along with accounts for a game-focused trading site Elite PVPers and cheat software markets PhantomOverlay and UnknownCheats. “Impacted users have begun reporting being victims of crypto-draining — their Electrum BTC wallets have been drained. We do not have any information on the amount of money stolen,” vx-underground wrote. Source: vx-underground In a March 27 Telegram post, PhantomOverlay claimed the number of hacked accounts “are inflated” as over half of the logins in a database it viewed “are invalid garbage.” It added the malware “seems to be an entire network of free/cheap software” that has originated from “some latency program, VPN, or something that millions of gamers are using.” “It’s the largest infostealer malware campaign in gaming/cheating community history.” In a separate post, PhantomOverlay claimed it has “a pretty good idea of where the malware is coming from but the malware gang is aware of suspicions on them [and] has made it increasingly hard to prove anything.” Activision Blizzard had contacted the cheat-selling site and “will help us assist millions of infected users,” PhantomOverlay said. An Activision Blizzard spokesperson told Cointelegraph it was aware of claims that credentials “across the broader industry could be compromised from malware from downloading or using unauthorized software.” Related: Prisma Finance exploited in $10 million breach It said its servers “remain secure and uncompromised” and recommended users change their password if they want to ensure their accounts are protected. In its post, vx-underground wrote that PhantomOverlay was “alerted of fraudulent activity when user accounts began making unauthorized purchases.” PhantomOverlay contacted the alleged victim, and since then, more have been identified, it said. Magazine: Inside Pink Drainer — Security analyst defends his crypto scam franchise

Mystery Malware Targets Call of Duty Cheaters, Stealing Their Bitcoin

A new flood of mystery malware has reportedly been targeting video gamers and draining their Bitcoin (BTC) wallets as part of a new info stealer campaign, which also has been targeting cheaters. 

Malware information repository vx-underground said in a March 28 X post it was aware of a “currently unidentified Threat Actor” using malware to steal login and other credentials of those using pay-to-cheat video game software.

The attacks target players, including those who buy cheating software, and have compromised over 4.9 million accounts for Activision Blizzard users and its game store Battle.net along with accounts for a game-focused trading site Elite PVPers and cheat software markets PhantomOverlay and UnknownCheats.

“Impacted users have begun reporting being victims of crypto-draining — their Electrum BTC wallets have been drained. We do not have any information on the amount of money stolen,” vx-underground wrote.

Source: vx-underground

In a March 27 Telegram post, PhantomOverlay claimed the number of hacked accounts “are inflated” as over half of the logins in a database it viewed “are invalid garbage.”

It added the malware “seems to be an entire network of free/cheap software” that has originated from “some latency program, VPN, or something that millions of gamers are using.”

“It’s the largest infostealer malware campaign in gaming/cheating community history.”

In a separate post, PhantomOverlay claimed it has “a pretty good idea of where the malware is coming from but the malware gang is aware of suspicions on them [and] has made it increasingly hard to prove anything.”

Activision Blizzard had contacted the cheat-selling site and “will help us assist millions of infected users,” PhantomOverlay said.

An Activision Blizzard spokesperson told Cointelegraph it was aware of claims that credentials “across the broader industry could be compromised from malware from downloading or using unauthorized software.”

Related: Prisma Finance exploited in $10 million breach

It said its servers “remain secure and uncompromised” and recommended users change their password if they want to ensure their accounts are protected.

In its post, vx-underground wrote that PhantomOverlay was “alerted of fraudulent activity when user accounts began making unauthorized purchases.”

PhantomOverlay contacted the alleged victim, and since then, more have been identified, it said.

Magazine: Inside Pink Drainer — Security analyst defends his crypto scam franchise
Prisma Finance $11.6M Hacker Claims It Was a ‘whitehat Rescue’The hacker behind the $11.6 million exploit of decentralized finance (DeFi) protocol Prisma Finance is claiming it was a “whitehat rescue” and is enquiring about returning the funds, according to on-chain messages. “Hi, this is a whitehat rescue, who can I contact to refund,” the exploiter said on March 28, around 6 hours after the attack. The message came from the address “0x2d4…7507a” — which was earlier identified as being one of three addresses linked to the attack. “Please contact us at negotiations@prismafinance.com,” the DeFi firm said in response about two hours later. On-chain messages were sent between Prisma Finance and the hacker. Source: Etherscan A white hat hacker refers to a person who uses their hacking ability to find security vulnerabilities in software code. In the broader cybersecurity world, these security experts often notify the creator of the attack vector rather than exploiting it themselves. However, in the cryptocurrency industry, it is more common for hackers to exploit the protocol and then ask for a white hat bounty in exchange for immunity, though there have also been cases where they’ve returned funds without asking for any reward. The first batch of malicious transactions occurred at 11:29 am UTC on March 28. Prisma Finance is still investigating the root cause of the attack. Blockchain security firm PeckShield estimated about $11.6 million was stolen and sent to three separate addresses. The hacker then started swapping the stolen funds to Ether (ETH), according to blockchain security firm Cyvers. Prisma Finance engineers have since halted the DeFi protocol. Source: PeckShield Prior to the exploit, Prisma Finance had about $220 million in total value locked on its protocol, but that figure has plummeted to $115 million, according to DeFiLlama. Total value locked on Prisma Finance. Source: DefiLlama . Meanwhile, the Prisma Governance Token (PRISMA) plummeted 30% to $0.244 on the news but has since rebounded to $0.289, according to CoinGecko. Cointelegraph reached out to Prisma Finance for comment but did not receive an immediate response. Related: Ethical hacker retrieves $5.4M for Curve Finance amid exploit Cryptocurrency hacks continue to hamstring the developments in the DeFi industry. Over $200 million worth of cryptocurrencies have been lost to hacks and rug pulls across 32 individual incidents over the first two months of 2024, according to Web3 security firm Immunefi. A total of $1.8 billion was lost to cryptocurrency hacks and scammers in 2023, of which 17% have been attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

Prisma Finance $11.6M Hacker Claims It Was a ‘whitehat Rescue’

The hacker behind the $11.6 million exploit of decentralized finance (DeFi) protocol Prisma Finance is claiming it was a “whitehat rescue” and is enquiring about returning the funds, according to on-chain messages.

“Hi, this is a whitehat rescue, who can I contact to refund,” the exploiter said on March 28, around 6 hours after the attack. The message came from the address “0x2d4…7507a” — which was earlier identified as being one of three addresses linked to the attack.

“Please contact us at negotiations@prismafinance.com,” the DeFi firm said in response about two hours later.

On-chain messages were sent between Prisma Finance and the hacker. Source: Etherscan

A white hat hacker refers to a person who uses their hacking ability to find security vulnerabilities in software code. In the broader cybersecurity world, these security experts often notify the creator of the attack vector rather than exploiting it themselves.

However, in the cryptocurrency industry, it is more common for hackers to exploit the protocol and then ask for a white hat bounty in exchange for immunity, though there have also been cases where they’ve returned funds without asking for any reward.

The first batch of malicious transactions occurred at 11:29 am UTC on March 28. Prisma Finance is still investigating the root cause of the attack.

Blockchain security firm PeckShield estimated about $11.6 million was stolen and sent to three separate addresses.

The hacker then started swapping the stolen funds to Ether (ETH), according to blockchain security firm Cyvers.

Prisma Finance engineers have since halted the DeFi protocol.

Source: PeckShield

Prior to the exploit, Prisma Finance had about $220 million in total value locked on its protocol, but that figure has plummeted to $115 million, according to DeFiLlama.

Total value locked on Prisma Finance. Source: DefiLlama .

Meanwhile, the Prisma Governance Token (PRISMA) plummeted 30% to $0.244 on the news but has since rebounded to $0.289, according to CoinGecko.

Cointelegraph reached out to Prisma Finance for comment but did not receive an immediate response.

Related: Ethical hacker retrieves $5.4M for Curve Finance amid exploit

Cryptocurrency hacks continue to hamstring the developments in the DeFi industry.

Over $200 million worth of cryptocurrencies have been lost to hacks and rug pulls across 32 individual incidents over the first two months of 2024, according to Web3 security firm Immunefi.

A total of $1.8 billion was lost to cryptocurrency hacks and scammers in 2023, of which 17% have been attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi.

Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time
SBF Memecoins Pump and Dump As FTX Founder Gets 25-year Prison SentenceMemecoin degenerates have once again put their money on a swathe of questionable tokens — this time amid the historic sentencing of Sam Bankman-Fried, which saw him wrapped with a 25-year prison sentence.  On March 28, Judge Lewis Kaplan sentenced Bankman-Fried to a total of 25 years in prison on seven counts of fraud, making the former CEO the first person from FTX to face prison for the collapse of the exchange in November 2022 — referred to as one of the biggest corporate collapses in United States history. A few hours before Bankman-Fried’s sentence was handed down, however, a developer launched a memecoin dubbed Sam Baseman Fraud — humorously sporting the ticker FTX — on the Coinbase layer-2 network Base. In just seven hours, the FTX memecoin rallied more than 23,300%, with market capitalization peaking to $1.5 million on March 28, per DexScreener data, As many memecoins often do, the token proceeded to sell off harshly, dumping more than 85% within the span of three hours. At the time of publication, the memecoin’s price has leveled out and is trading around the $0.06 mark, still down 60% from all-time highs. Sam Baseman Fraud (FTX) rallied before selling off. Source: DexScreener Roughly 2 hours following the sentencing, another SBF-themed memecoin dubbed Som Bonkmon Fraud launched on Solana (SOL). The Solana-based SBF memecoin initially surged to a market capitalization of around $20 million, a rally of more than 18,000% from its launch value of $30,000. However, the token sold off rapidly, plunging more than 95% from its high. Som Bonkman Fraud pumped and then brutally dumped. Source: DexScreener At the time of publication, it’s trading around $0.0008 — only slightly above its first listed price. Related: Crypto users react to Sam Bankman-Fried’s 25-year sentence The Bankman-Fried-themed memecoins are the latest addition to a roster of topical memecoins inspired by crypto and political figureheads. Several other political memecoins, such as Boden and Tremp have sought to capitalize on the attention around the upcoming United States election. The memecoin trend witnessed a major resurgence following the upward surge of a Solana-based memecoin called Dog Wif Hat (WIF), which spiked from a market cap of around $50,000 to $3.5 billion in four months. Several other newer meme tokens, such as the frog-themed Pepe (PEPE) on Ethereum and Rooster-themed Coq Inu (COQ) on Avalanche, have also rallied to the upside. Memecoins are hyper-speculative investments that ofte offer no utility or base valuation outside of topical interest and hype. Notably, FTX Token (FTT) — the native cryptocurrency of the now defunct exchange — also nosedived more than 16% on the news of Bankman-Fried’s sentencing, per CoinGecko data. Magazine: 5 dangers to beware when apeing into Solana memecoins

SBF Memecoins Pump and Dump As FTX Founder Gets 25-year Prison Sentence

Memecoin degenerates have once again put their money on a swathe of questionable tokens — this time amid the historic sentencing of Sam Bankman-Fried, which saw him wrapped with a 25-year prison sentence. 

On March 28, Judge Lewis Kaplan sentenced Bankman-Fried to a total of 25 years in prison on seven counts of fraud, making the former CEO the first person from FTX to face prison for the collapse of the exchange in November 2022 — referred to as one of the biggest corporate collapses in United States history.

A few hours before Bankman-Fried’s sentence was handed down, however, a developer launched a memecoin dubbed Sam Baseman Fraud — humorously sporting the ticker FTX — on the Coinbase layer-2 network Base.

In just seven hours, the FTX memecoin rallied more than 23,300%, with market capitalization peaking to $1.5 million on March 28, per DexScreener data,

As many memecoins often do, the token proceeded to sell off harshly, dumping more than 85% within the span of three hours. At the time of publication, the memecoin’s price has leveled out and is trading around the $0.06 mark, still down 60% from all-time highs.

Sam Baseman Fraud (FTX) rallied before selling off. Source: DexScreener

Roughly 2 hours following the sentencing, another SBF-themed memecoin dubbed Som Bonkmon Fraud launched on Solana (SOL).

The Solana-based SBF memecoin initially surged to a market capitalization of around $20 million, a rally of more than 18,000% from its launch value of $30,000. However, the token sold off rapidly, plunging more than 95% from its high.

Som Bonkman Fraud pumped and then brutally dumped. Source: DexScreener

At the time of publication, it’s trading around $0.0008 — only slightly above its first listed price.

Related: Crypto users react to Sam Bankman-Fried’s 25-year sentence

The Bankman-Fried-themed memecoins are the latest addition to a roster of topical memecoins inspired by crypto and political figureheads. Several other political memecoins, such as Boden and Tremp have sought to capitalize on the attention around the upcoming United States election.

The memecoin trend witnessed a major resurgence following the upward surge of a Solana-based memecoin called Dog Wif Hat (WIF), which spiked from a market cap of around $50,000 to $3.5 billion in four months.

Several other newer meme tokens, such as the frog-themed Pepe (PEPE) on Ethereum and Rooster-themed Coq Inu (COQ) on Avalanche, have also rallied to the upside.

Memecoins are hyper-speculative investments that ofte offer no utility or base valuation outside of topical interest and hype.

Notably, FTX Token (FTT) — the native cryptocurrency of the now defunct exchange — also nosedived more than 16% on the news of Bankman-Fried’s sentencing, per CoinGecko data.

Magazine: 5 dangers to beware when apeing into Solana memecoins
Bitcoin Miner CleanSpark Plunges 10% After $800M Share OfferingBitcoin miner CleanSpark plunged 10% in after-hours trading on Thursday after the firm amended its at-the-market (ATM) offering agreement to sell up to $800 million of its stock. CleanSpark initially inked a deal for a $500 million ATM offering with New York investment banking firm H.C. Wainwright & Co on Jan. 5, 2024, where CleanSpark said it may, from time to time, offer and sell shares of its common stock at $0.001 per share, a March 28 SEC filing reveals. CleanSpark’s at the market agreement with H.C. Wainwright & Co. LLC. Source: SEC Primary stock dilution is a common strategy for publicly-listed companies to raise additional capital. CleanSpark isn’t the only Bitcoin miner to enter into an ATM agreement for this reason either — with Riot Platforms and Marathon Digital Holdings, both entering into $750 million ATM agreements last August and October. With a market capitalization of $4.2 billion, a $800 million stock offering would effectively dilute CLSK shares by 19%. CLSK started the trading day at $23.20 but is now down 16% to $19.1 in after-hours — which included an 8.2% fall during trading hours, according to Google Finance. CleanSpark’s change in stock price over the last trading day. Source: Google Finance Despite the stock plunge, CLSK is up 95% in 2024 and 685% over the last 12 months. Related: Bitcoin halving ‘blood bath’ could push US miners offshore CleanSpark is one of many Bitcoin miners preparing for the upcoming Bitcoin halving event, expected to occur on April 20, which will see Bitcoin mining rewards reduced from 6.25 BTC ($441,000) to 3.125 BTC ($220,500). The firm boasts the lowest cost production to mine one Bitcoin post-halving at $26,900, a Jan. 12 CoinShares research report found. On Feb. 6, Cleanspark said it expects its hash rate to double in the first half of 2024 on the back of a recent agreement to purchase four new mining facilities in Mississippi, worth $19.8 million, which produced an immediate 2.4 exahashes per second (EH/s) for the firm. It also agreed to buy an additional mining facility in Dalton, Georgia, for $6.9 million, which will produce 0.8 EH/s. However, that facility is under construction and won’t be ready until April 2024. Cointelegraph reached out to CleanSpark for comment but didn't receive a response by the time of publication. Magazine: This is your brain on crypto — Substance abuse grows among crypto traders

Bitcoin Miner CleanSpark Plunges 10% After $800M Share Offering

Bitcoin miner CleanSpark plunged 10% in after-hours trading on Thursday after the firm amended its at-the-market (ATM) offering agreement to sell up to $800 million of its stock.

CleanSpark initially inked a deal for a $500 million ATM offering with New York investment banking firm H.C. Wainwright & Co on Jan. 5, 2024, where CleanSpark said it may, from time to time, offer and sell shares of its common stock at $0.001 per share, a March 28 SEC filing reveals.

CleanSpark’s at the market agreement with H.C. Wainwright & Co. LLC. Source: SEC

Primary stock dilution is a common strategy for publicly-listed companies to raise additional capital.

CleanSpark isn’t the only Bitcoin miner to enter into an ATM agreement for this reason either — with Riot Platforms and Marathon Digital Holdings, both entering into $750 million ATM agreements last August and October.

With a market capitalization of $4.2 billion, a $800 million stock offering would effectively dilute CLSK shares by 19%.

CLSK started the trading day at $23.20 but is now down 16% to $19.1 in after-hours — which included an 8.2% fall during trading hours, according to Google Finance.

CleanSpark’s change in stock price over the last trading day. Source: Google Finance

Despite the stock plunge, CLSK is up 95% in 2024 and 685% over the last 12 months.

Related: Bitcoin halving ‘blood bath’ could push US miners offshore

CleanSpark is one of many Bitcoin miners preparing for the upcoming Bitcoin halving event, expected to occur on April 20, which will see Bitcoin mining rewards reduced from 6.25 BTC ($441,000) to 3.125 BTC ($220,500).

The firm boasts the lowest cost production to mine one Bitcoin post-halving at $26,900, a Jan. 12 CoinShares research report found.

On Feb. 6, Cleanspark said it expects its hash rate to double in the first half of 2024 on the back of a recent agreement to purchase four new mining facilities in Mississippi, worth $19.8 million, which produced an immediate 2.4 exahashes per second (EH/s) for the firm.

It also agreed to buy an additional mining facility in Dalton, Georgia, for $6.9 million, which will produce 0.8 EH/s. However, that facility is under construction and won’t be ready until April 2024.

Cointelegraph reached out to CleanSpark for comment but didn't receive a response by the time of publication.

Magazine: This is your brain on crypto — Substance abuse grows among crypto traders
Crypto ATMs to Resurge Once Bitcoin ‘FOMO’ Hits Full Swing, Says CEOBitcoin ATMs will likely see a global acceleration in installations after the Bitcoin halving, a period when crypto FOMO (fear of missing out) typically hits a fever pitch, according to the boss of a major Bitcoin ATM operator. In 2023, crypto ATM installs had their first-ever yearly decline in a decade, owing to a bear market likely exacerbated by the collapse of several crypto firms. However, Bitcoin Depot CEO Brandon Mintz notes that 2024 has already started with a bang, with 1,469 crypto ATMs installed in just the first three months, compared to the over 3,000 removed by around the same time in 2023, according to data from CoinATMRadar. “It’s looking really positive that the industry continues to see a lot of growth in kiosk count,” Bitcoin Depot CEO Brandon Mintz told Cointelegraph. Over 400 ATMs have been installed between March 1 and March 27. Source: CoinATMRadar Mintz is now tipping an industry-wide ATM rebound with Bitcoin (BTC) back in swing, which has already twice beaten its all-time high in March. In past bull markets, Mintz noted that “later in the cycle, especially that period of FOMO that starts happening,” is when crypto adoption surges and, with it, brings more customers. “The adoption rate is really helpful because if more people are buying Bitcoin, then a portion of those are likely going to Bitcoin ATMs.” That, however, typically comes later in the cycle and “it’s still pretty early,” according to Mintz. “We aren’t even at the halving yet,” he said, mentioning the event slated for late April when Bitcoin’s mining rewards are cut 50%. “In the past, more of the uptick we’ve seen has been after the halving,” he added. “After the halving is when the price skyrockets the most, and that’s when the FOMO phase starts.” While the ATM count has recently climbed, Mintz claims over the past 18 months, the number of ATM operators has dropped. One of the largest was the 5,000 ATM-strong operator Coin Cloud, which went bankrupt in February 2023. “A lot more of them were struggling and went out of business than was shown publicly,” he said. The drop “happened pretty quickly” after crypto exchange FTX collapsed in November 2022 and took the crypto market with it, he added. Bitcoin Depot’s fourth quarter and full 2023 results released on March 25 saw full-year revenues up 7% year-on-year to $689 million, though net income dropped 54% to $1.6 million. It also bought 900 ATMs to install in the first quarter of 2024 and has plans for 940 ATMs to go live in convenience stores in 24 United States states. According to CoinATMRadar, the Bitcoin ATM operator shares the market with a small number of other operators. The runner-up rival operator Coinflip has just over half that with over 4,200, while Bitstop is third with over 2,500. Spot Bitcoin ETFs are no bother Of the 37,001 crypto ATMs in the world, the United States is home to nearly 83% of them, with over 30,600, per CoinATMRadar. In January, the U.S. also approved spot Bitcoin exchange-traded funds (ETFs), which some have hailed as an adoption catalyst for institutions and retail punters looking to get into Bitcoin. Mintz was unshaken by what impact the ETFs could have on Bitcoin ATMs. “We view it as a totally different customer base,” he said. Related: Bitcoin ATM flaw could’ve given hackers ‘total control’ “A large portion of our customer base transacts primarily in cash or only in cash because they’re underbanked or unbanked,” he added. On the other hand, Bitcoin ETF buyers are “more high-income individuals with brokerages and brokers.” “[The] vast majority of all of our customers make less than $90,000 to $100,000 a year, so our customer base is not that likely to have a brokerage account or a broker and has not been likely to have just been sitting on the sidelines waiting for [an ETF] when it’s so easy to just buy through a Bitcoin ATM,” Mintz said. Instead, he thinks the ETFs driving Bitcoin’s price higher could mean more ATM usage as Bitcoin adoption climbs. “If adoption increases, we think it likely translates to increased usage of Bitcoin ATMs. So in the grand scheme of things, I think it is way more helpful to us in our industry than it is in terms of impacting us in a negative way.” Big Questions: How can Bitcoin payments stage a comeback?

Crypto ATMs to Resurge Once Bitcoin ‘FOMO’ Hits Full Swing, Says CEO

Bitcoin ATMs will likely see a global acceleration in installations after the Bitcoin halving, a period when crypto FOMO (fear of missing out) typically hits a fever pitch, according to the boss of a major Bitcoin ATM operator.

In 2023, crypto ATM installs had their first-ever yearly decline in a decade, owing to a bear market likely exacerbated by the collapse of several crypto firms.

However, Bitcoin Depot CEO Brandon Mintz notes that 2024 has already started with a bang, with 1,469 crypto ATMs installed in just the first three months, compared to the over 3,000 removed by around the same time in 2023, according to data from CoinATMRadar.

“It’s looking really positive that the industry continues to see a lot of growth in kiosk count,” Bitcoin Depot CEO Brandon Mintz told Cointelegraph.

Over 400 ATMs have been installed between March 1 and March 27. Source: CoinATMRadar

Mintz is now tipping an industry-wide ATM rebound with Bitcoin (BTC) back in swing, which has already twice beaten its all-time high in March.

In past bull markets, Mintz noted that “later in the cycle, especially that period of FOMO that starts happening,” is when crypto adoption surges and, with it, brings more customers.

“The adoption rate is really helpful because if more people are buying Bitcoin, then a portion of those are likely going to Bitcoin ATMs.”

That, however, typically comes later in the cycle and “it’s still pretty early,” according to Mintz.

“We aren’t even at the halving yet,” he said, mentioning the event slated for late April when Bitcoin’s mining rewards are cut 50%.

“In the past, more of the uptick we’ve seen has been after the halving,” he added. “After the halving is when the price skyrockets the most, and that’s when the FOMO phase starts.”

While the ATM count has recently climbed, Mintz claims over the past 18 months, the number of ATM operators has dropped. One of the largest was the 5,000 ATM-strong operator Coin Cloud, which went bankrupt in February 2023.

“A lot more of them were struggling and went out of business than was shown publicly,” he said.

The drop “happened pretty quickly” after crypto exchange FTX collapsed in November 2022 and took the crypto market with it, he added.

Bitcoin Depot’s fourth quarter and full 2023 results released on March 25 saw full-year revenues up 7% year-on-year to $689 million, though net income dropped 54% to $1.6 million.

It also bought 900 ATMs to install in the first quarter of 2024 and has plans for 940 ATMs to go live in convenience stores in 24 United States states.

According to CoinATMRadar, the Bitcoin ATM operator shares the market with a small number of other operators. The runner-up rival operator Coinflip has just over half that with over 4,200, while Bitstop is third with over 2,500.

Spot Bitcoin ETFs are no bother

Of the 37,001 crypto ATMs in the world, the United States is home to nearly 83% of them, with over 30,600, per CoinATMRadar.

In January, the U.S. also approved spot Bitcoin exchange-traded funds (ETFs), which some have hailed as an adoption catalyst for institutions and retail punters looking to get into Bitcoin.

Mintz was unshaken by what impact the ETFs could have on Bitcoin ATMs. “We view it as a totally different customer base,” he said.

Related: Bitcoin ATM flaw could’ve given hackers ‘total control’

“A large portion of our customer base transacts primarily in cash or only in cash because they’re underbanked or unbanked,” he added.

On the other hand, Bitcoin ETF buyers are “more high-income individuals with brokerages and brokers.”

“[The] vast majority of all of our customers make less than $90,000 to $100,000 a year, so our customer base is not that likely to have a brokerage account or a broker and has not been likely to have just been sitting on the sidelines waiting for [an ETF] when it’s so easy to just buy through a Bitcoin ATM,” Mintz said.

Instead, he thinks the ETFs driving Bitcoin’s price higher could mean more ATM usage as Bitcoin adoption climbs.

“If adoption increases, we think it likely translates to increased usage of Bitcoin ATMs. So in the grand scheme of things, I think it is way more helpful to us in our industry than it is in terms of impacting us in a negative way.”

Big Questions: How can Bitcoin payments stage a comeback?

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