The latest news—several developments that are pretty interesting when you connect the dots.
First, a somewhat “sci-fi” scene: A hacker moved 1,670 $ETH (about $3.73 million) from Tornado Cash to Hyperliquid, sold it, then used the proceeds to buy 2,959 $ZEC . Put simply, this is a move from $ETH into privacy coins. Given the questionable source of the funds, it’s no surprise they’re headed toward privacy coins—but a swap of this size is worth watching to see where the funds go next.
Meanwhile, JCT suddenly became the center of attention. It surged more than 3.5-fold in nearly four hours, breaking above $0.014. Liquidations topped $7.7 million, the highest across the market, while JCT’s annualized funding rate on Binance shot up to 1,050%. Rates at this level suggest that longs are extremely crowded. The unusual price action is one thing, but the risk of chasing it is also clear—don’t focus only on the gains.
After the market action, let’s look at what industry leaders are saying. Vitalik wrote that ETH should focus on being a store of value rather than on fee burning. He said EIP-1559 and the burn mechanism should remain in place, but even if burning accounts for less than one-tenth of the break-even level over the long term, there’s no need to be discouraged: ETH’s value comes from elsewhere, and what people value most about Ethereum is its decentralization. This is an important point—it effectively resets the narrative around ETH.
There’s also news on the macro and regulatory fronts. A Deutsche Bank research report says fears that SpaceX could face political retaliation after the midterm elections are overblown. It maintained its “Buy” rating and $250 price target, citing the fact that its key contracts come from federal executive agencies such as NASA and the Space Force, leaving Congress limited room to intervene. Most of its business also has no viable alternative suppliers. Separately, the U.S. Treasury Department’s OFAC sanctioned eight Canadian money services businesses over alleged cryptocurrency transactions involving Iran. The list includes Million Exchange, two affiliated companies operating under the name Amin Exchange, NIA Nations, Farah Exchange, and others.
One final question: When a hacker swaps ETH for ZEC, do you see it as a sign of demand for privacy, or simply an attempt to evade tracking?
First, a somewhat “sci-fi” scene: A hacker moved 1,670 $ETH (about $3.73 million) from Tornado Cash to Hyperliquid, sold it, then used the proceeds to buy 2,959 $ZEC . Put simply, this is a move from $ETH into privacy coins. Given the questionable source of the funds, it’s no surprise they’re headed toward privacy coins—but a swap of this size is worth watching to see where the funds go next.
Meanwhile, JCT suddenly became the center of attention. It surged more than 3.5-fold in nearly four hours, breaking above $0.014. Liquidations topped $7.7 million, the highest across the market, while JCT’s annualized funding rate on Binance shot up to 1,050%. Rates at this level suggest that longs are extremely crowded. The unusual price action is one thing, but the risk of chasing it is also clear—don’t focus only on the gains.
After the market action, let’s look at what industry leaders are saying. Vitalik wrote that ETH should focus on being a store of value rather than on fee burning. He said EIP-1559 and the burn mechanism should remain in place, but even if burning accounts for less than one-tenth of the break-even level over the long term, there’s no need to be discouraged: ETH’s value comes from elsewhere, and what people value most about Ethereum is its decentralization. This is an important point—it effectively resets the narrative around ETH.
There’s also news on the macro and regulatory fronts. A Deutsche Bank research report says fears that SpaceX could face political retaliation after the midterm elections are overblown. It maintained its “Buy” rating and $250 price target, citing the fact that its key contracts come from federal executive agencies such as NASA and the Space Force, leaving Congress limited room to intervene. Most of its business also has no viable alternative suppliers. Separately, the U.S. Treasury Department’s OFAC sanctioned eight Canadian money services businesses over alleged cryptocurrency transactions involving Iran. The list includes Million Exchange, two affiliated companies operating under the name Amin Exchange, NIA Nations, Farah Exchange, and others.
One final question: When a hacker swaps ETH for ZEC, do you see it as a sign of demand for privacy, or simply an attempt to evade tracking?