Australia’s largest stock exchange — the Australian Securities Exchange (ASX) — could greenlight several spot Bitcoin (BTC) exchange-traded funds (ETFs) by the end of the year. 

Following in the footsteps of fund issuers in the United States and Hong Kong, Bitcoin ETF applications from VanEck Australia and local ETF-focused fund manager BetaShares are set to be approved before the year is through, anonymous sources familiar with the matter told Bloomberg.

The uptick in spot Bitcoin ETF applications comes following the Bitcoin ETF approvals in the United States, which have seen some $53 billion in assets under management (AUM) accrued across eleven separate products.

Bitcoin ETF historical netflow. Source: CryptoQuant

The considerable inflows into U.S.-based products have provided the confidence to launch the products in Australia and “prove digital assets are here to stay,” said Justin Arzadon, the head of digital at BetaShares.

Speaking to Cointelegraph, Jeff Yew, the CEO of crypto asset management firm Monochrome — which has an application with a competing exchange — described Australia as a “very crypto-heavy country” and expects Australian spot Bitcoin ETFs to generate between $3 billion to $4 billion in net inflows within the first three years.

Yew explained that the demand for the Bitcoin ETFs would be driven primarily by fund managers looking to gain exposure to Bitcoin and from self-managed super fund (SMSF) investors as well as a smaller, yet still considerable appetite from retail.

SMSF investors currently hold direct exposure to Bitcoin on crypto exchanges, something he said is inherently risky and feels a lot like a “ticking time bomb” if crypto exchanges were to collapse.

“The Australian Taxation Office says there’s over $1 billion of crypto on exchanges and the majority of this is from SMSF investors,” he said.

Bitcoin ETFs on the other hand, allow these investors to gain heavily-regulated and therefore safer exposure to digital assets, said Yew.

Monochrome first applied for a spot Bitcoin ETF with the ASX on July 14 last year, but later switched to Cboe Australia — a much smaller exchange — following a slow approval process at the ASX.

Source: Jeff Yew

“We switched to Cboe because it's an exchange that offers a more realistic time frame and a more transparent listing framework.

“It’s no secret that the ASX had challenges lately with the regulator,” Yew said. “I think that’s just the appetite to push for new products is limited.”

Yew still expects Cboe Australia to approve his firm’s application “within the next few weeks.”

Related: Australian Monochrome spot Bitcoin ETF expected to launch within 2 months, says CEO

A single Bitcoin miner has defied the odds by solving a Bitcoin block alone, netting them the full 3.125 Bitcoin (BTC) block reward. 

On April 29, software engineer and administrator from the solo mining pool ckpool, Con Kolivas, posted to X that a miner had solved the 282nd solo block in Bitcoin’s history.

He added that the solo miner had a large hash rate of around 120PH (peta hashes) at the time, equivalent to around 0.12 EH (exa hashes), with an average of around 12PH over a week which is roughly 0.02% of the total network hash rate. 

The reward for solving block 841,286 was recently reduced from 6.25 BTC to 3.125 BTC in the Bitcoin halving at block 840,000 on April 20, meaning it was worth around $200,000 at BTC prices at the time.

Source: Con Kolivas

Kolivas examined the block-solve summary, postulating that this large miner either recently switched from pooled mining post-halving “presumably for no longer recouping their electricity costs” for a chance at a solo block. Either that or they have been “intermittently hashing/renting large amounts solo,” he added.

The feat is remarkable because mining a valid block solo is an extremely rare event akin to winning the lottery. It is so rare that it has only occurred 282 times out of the 841,300 or so blocks that have been produced since Bitcoin’s inception 14 years ago.

Mining BTC requires participants to input computational power to solve and add the next block to the network.

However, with the asset’s price increasing, mining has exploded in popularity resulting in an increase in competitiveness — known as difficulty — and hash rate, or network horsepower, meaning that it is almost impossible to solve a block alone.

Related: PayPal proposes ‘cryptoeconomic’ rewards for sustainable Bitcoin miners

In March 2023, Cointelegraph reported that a solo miner netted the entire 6.25 BTC reward for solving a block, however, prices were much lower then so the reward was around $150,000.

The most recent solo block was on April 5, a couple of weeks before the halving, when a solo miner solved block 837,814 with 7PH of hash rate netting a reward of around $422,750 at the time.

The average network hash rate is currently 618 EH/s (exa hashes per second) having hit an all-time high of 728 EH/s on April 23, according to Bitinfocharts. It has increased by more than 90% over the past 12 months making the latest solo mining achievement even more exceptional.

BTC hash rate 3 years. Source: Bitinfocharts

Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto

The United States’ arguments to forge ahead on its case against crypto mixer Tornado Cash and developer Roman Storm show a “disdain for privacy” and include a few “egregious statements,” says DeFi Education Fund legal chief Amanda Tuminelli.

The Department of Justice on April 26 opposed Storm’s motion to dismiss conspiracy and money laundering charges which Tuminelli said in April 27 X posts were “filled with technical inaccuracies, obvious disdain for privacy and emerging technology, and misapplication of the law.”

Tuminelli highlighted on X one section where the DOJ said Storm argued that “misconduct through computer software is absolutely protected” and that crypto was “inherently beyond the reach of law enforcement.”

“This is simply not what Storm argued in his motion,” Tuminelli wrote. “It is difficult to imagine how this is not intentionally misleading.”

Tuminelli also slammed prosecutors for not understanding “how immutable smart contract protocols work” as the filing alleges Storm and co-founder Roman Semenov “could have done something about” the alleged unlawful activity on Tornado Cash “but they chose not to.”

Source: Amanda Tuminelli

The DOJ also “completely ignores” the arguments in the DeFi Education Fund’s amicus brief supporting the dismissal of Storm’s charges — which Tuminelli took “as a compliment.”

In it, the advocacy group argued the International Emergency Economic Powers Act (IEEPA) — giving the president power to regulate from “unusual and extraordinary” threats — has “never been used and should not be used to penalize a software developer that never directly engaged with or solicited conduct with a sanctioned entity.”

"Seminal crypto court case”

Meanwhile, observers say one particular section of the prosecutors’ 111-page response could have huge implications for crypto and internet freedom.

The DOJ argued the money transmitting definition under U.S. law “does not require the money transmitter to have ‘control’ of the funds being transferred” and extends to “transferring funds on behalf of the public by any and all means.”

Pseudo-anonymous industry commentator L0la L33tz said in an April 27 X post that the DOJ’s broad argument “could set [dangerous] precedents for the freedom of the internet.”

“Any provider broadcasting financial transactions” including internet service providers “could be at risk of being forced into KYC,” they claimed. “Grandma sent $50 in the mail? Clearly the postman is running a money service business.”

Source: Jason Gottlieb

Another observer, financial writer John Paul Koning wrote on X that the case against Storm “may end up being the seminal crypto court case” and is “really about who, if anyone, is liable for smart contracts and the interfaces that access smart contracts, and to what degree.”

It comes as crypto-focused lawyer Gabriel Shapiro wrote on X that he was “not (yet) worried” that the DOJ’s arguments make decentralized application operators into money transmitters.

He believed the case would come down to the relayers and the crypto mixer’s Tornado Cash (TORN) token.

Related: Samourai Wallet mixer co-founders arrested on AML, licensing charges

“Relayers did Ethereum txs for users (including paying gas). TORN provided an economic interest in the relaying enterprise,” Shapiro explained.

Source: Gabriel Shapiro

In comparison, on most DApps the user transacts on Ethereum — such as by paying their own gas or by a node “owned by wallet operator, not the DeFi web app operator,” he added.

“[Relayers] literally paid for gas for users,” Shapiro wrote. “Does it definitely constitute ‘money transmission’ under law? We’ll find out, but at minimum it’s closer to the line.”

Storm’s trial is currently slated for September. Semenov is still at large.

Magazine: Tornado Cash 2.0 — The race to build safe and legal coin mixers

Gas fees on the Ethereum network have plunged to a six-month low even as the price of Ether (ETH) rallied slightly over the weekend, which analysts from crypto analytics platform Santiment say could signal an upcoming altcoin rally. 

On April 27, the average fee for an Ethereum translation fell as low as $1.12, according to an April 28 X post from Santiment.

“Traders historically move between sentimental cycles of feeling that crypto is going ‘To the Moon’ or feeling that ‘It Is Dead’, which can be observed through transaction fees,” wrote Santiment.

Source: Santiment

Santiment explained that fees tend to peak around local market tops and fall back to “resting state” lows around the time of market bottoms.

Gas fees on Ethereum reached an eight-month high in February this year amid a tidal wave of interest in an experimental token standard called ERC-404.

The analytics platform suggested the low gas fees could indicate a future uptick in Ethereum network activity and herald the beginning of an altcoin rally.

“With markets mainly retracing over the past 6 weeks, the lack of demand and strain on the network may help turn ETH and associated altcoins around sooner than many may expect.”

It comes as the price of Ether rallied slightly, gaining 4.3% in the last week, per CoinGecko data.

Related: Franklin Templeton lists Ethereum ETF on DTCC

On April 27, Ethereum layer-2 networks Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) accounted for three of the top five best-performing assets in the top 50 cryptocurrencies by market cap, gaining 11.7%, 3.5%, and 2.8% respectively.

Source: Luke Martin

Meanwhile, the lowered activity on the network has seen the circulating supply of Ethereum surge to its highest point in the last month.

In the last 30 days, 74,458 new ETH were issued while just 57,516 were burned, resulting in a net supply increase of 16,979 new Ether (ETH), per ultrasound.money data.

This stands in stark contrast to the previous five months, which have consisted of steady deflation. Despite the recent uptick in ETH-based inflation, more than 437,000 ETH has been burned since the network’s switch to a proof of stake consensus mechanism, dubbed ‘The Merge’ which occurred on Sep. 15, 2022.

Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)

Bitcoin (BTC) attempted to start a relief rally this week but met with intense selling pressure near $67,000. The largest cryptocurrency by market capitalization is on track to end the week with a minor loss of about 2%.

Popular trader and analyst Rekt Capital believes that Bitcoin has “entered the Post-Halving ‘Danger Zone’” where it could see a further dip within the next two weeks. Another negative in the near term is the net outflows from the spot Bitcoin exchange-traded funds. Farside Investors reported that the ETFs witnessed a net outflow of $218 million on April 25, after a $120 million outflow the previous day.

Crypto market data daily view. Source: Coin360

When the price trades in a large range, it is difficult to predict the direction of the breakout with certainty. Traders could buy near the support and sell at the resistance by keeping a suitable stop loss, or stay on the sidelines until a breakout happens.

Will Bitcoin and altcoins stay above their respective support levels and start a relief rally?

Let’s study the top 5 cryptocurrencies that look strong on the charts and may start the recovery.

Bitcoin price analysis

Bitcoin has been range-bound between $59,600 and $73,777 for several days, indicating indecision between the bulls and the bears about the next directional move.

BTC/USDT daily chart. Source: TradingView

Generally, in a range, traders buy near the support and sell close to the resistance. The bulls are expected to aggressively defend the $59,600 level as a break below it could deepen the correction to 61.8% Fibonacci retracement level of $54,298. Such a move will delay the start of the next leg of the uptrend.

Contrarily, if the price turns up from the current level or the $59,600 support, it will suggest that bulls remain active at lower levels. The BTC/USDT pair may jump to $67,250 and later to the overhead resistance of $73,777. A break and close above this level will signal the start of the next leg of the uptrend to $84,000.

BTC/USDT 4-hour chart. Source: TradingView

The flattish moving averages and the RSI just below the midpoint suggest a balance between supply and demand. The first sign of strength will be a break and close above the downtrend line. That could clear the path for a rise to $68,000 and then to $71,500.

Alternatively, if the price turns down from the current level or the downtrend line and breaks below $62,300, it will suggest that bears are in command. The pair could then skid to the crucial support at $59,600, where buyers are likely to step in.

Near Protocol price analysis

Near Protocol (NEAR) closed above the descending channel pattern on April 25, indicating that the downtrend could be ending.

NEAR/USDT daily chart. Source: TradingView

However, the bears have not given up and are selling near the immediate resistance at $7.70. If the price dips back into the channel, it will suggest that the breakout may have been a bull trap. That could pull the price down to $5.90.

Instead, if the price breaks above $7.70, it will suggest that the bulls are taking charge. The NEAR/USDT pair could then attempt a rally to $9., where the bears are likely to mount a strong defense.

NEAR/USDT 4-hour chart. Source: TradingView

Both moving averages are sloping up, and the RSI is in the positive territory, indicating that the bulls have a slight advantage. Buyers are likely to face selling in the zone between $7.70 and $8.10, but if they bulldoze their way through, the rally could reach $9.

This optimistic view will be negated in the short term if the price turns down and breaks below $6.60. Such a move will indicate that the bears continue to sell on relief rallies. The pair may then slump to $5.90.

Arweave price analysis

Arweave (AR) rose above both moving averages on April 25, signaling that the bulls are attempting a comeback.

AR/USDT daily chart. Source: TradingView

The bears tried to pull the price back, but the bulls purchased the dip to the 20-day EMA ($32.19) on April 27. This suggests a change in sentiment from selling on rallies to buying on dips. There is a minor resistance at $40, but if it is crossed, the AR/USDT pair could rally to the stiff overhead resistance of $47.52.

If bears want to prevent the rally, they will have to quickly tug the price back below the 20-day EMA. If they do that, the pair may tumble to $22.

AR/USDT 4-hour chart. Source: TradingView

The pair shows the formation of an inverse head-and-shoulders pattern that will complete on a breakout and close above the neckline. If that happens, the pair is likely to dash toward the pattern target of $50.

On the contrary, if the price fails to maintain above the neckline, it will suggest that demand dries up at higher levels. The pair could then drop to the critical support at $30. A break below this level will tilt the advantage in favor of the bears.

Related: Crypto trader sees best 'altseason' since 2017 as Bitcoin price cools

Core price analysis

Core (CORE) has taken support at the 20-day EMA ($2.23) on two occasions in the past few days, indicating a positive sentiment.

CORE/USDT daily chart. Source: TradingView

If the price bounces off the current level and breaks above $2.91, it will suggest that the bulls are back in the driver’s seat. The CORE/USDT pair could then pick up momentum and surge toward $4.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that the bears are not willing to give up. That could open the doors for a drop to the 50-day SMA ($1.72).

CORE/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair is range-bound between $1.83 and $2.91. The flattening moving averages and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears.

If the price breaks above the moving averages, the bulls will try to push the pair to $2.91. The bears are expected to defend this level with vigor because a break above it may start a new up move.

Conversely, if the price turns down and breaks below $2.10, the pair may tumble to the strong support at $1.83.

Bonk price analysis

Bonk (BONK) climbed above the moving averages on April 23, signaling that the corrective phase may be ending.

BONK/USDT daily chart. Source: TradingView

The bears tried to yank the price below the moving averages, but the bulls held their ground. This suggests that the bulls are trying to flip the moving averages into support. If the price bounces off the current level and breaks above $0.000030, the BONK/USDT pair will complete an inverse H&S pattern. This bullish setup has a pattern target of $0.000048.

However, the bears are likely to have other plans. They will try to sink the price below the moving averages and gain the upper hand. If they succeed, the pair may descend to $0.000019 and then to $0.000015.

BONK/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are facing stiff resistance at $0.000030. The bears are trying to strengthen their position by pulling the price below the moving averages. If they manage to do that, the pair will complete a H&S pattern and drop toward $0.000019.

On the other hand, if the price turns up from the current level or the 50-day SMA, it will indicate that the bulls continue to buy on dips. A break and close above $0.000030 will be the first sign of strength. The pair may then jump to $0.000036.

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.

OpenAI, an artificial intelligence company co-founded and helmed by Sam Altman, is reportedly in partnership talks with Tools For Humanity’s Worldcoin, a cryptocurrency-based universal basic income and identity verification firm also co-founded by Sam Altman. 

Bloomberg recently reported that the two firms are in negotiations for a partnership that would see OpenAI providing AI solutions and services to Worldcoin with the possibility for further synergy down the road.

Any partnership between OpenAI and Worldcoin would almost certainly draw additional regulatory scrutiny given Altman’s status within both firms.

Per Tools for Humanity CEO Alex Blania, speaking to Bloomberg:

“I think it’s just because of Sam. Just, like, much more attention than you would usually face as a company of that size or a project of that size.”

It’s unclear exactly what Blania might have meant by their comments, as Worldcoin is currently among the world’s most active universal basic income and identity verification services with an average of two million users per day.

Related: Worldcoin reaches 10M users, 70M transactions and at least 13 goats bought

Controversy and regulatory scrutiny are nothing new for either company. OpenAI recently outlasted threats to investigate its partnership with Microsoft as a merger by European Union authorities, ultimately dodging the allegations entirely.

And Worldcoin has faced bans in Portugal, Kenya, and Spain in the first three months of 2024 alone.

Worldcoin has so far spent the better part of 2024 looking to expand its operations. As Cointelegraph recently reported, the firm launched its own blockchain, a layer-2 solution that prioritizes verified Worldcoin users — humans — over bots.

On the cryptocurrency side of things, Worldcoin recently announced it would increase its WLD token supply by 36 million — currently worth around $196 million — over the next six months as part of a sell-off to select institutions.

This comes as the token’s popularity — at least as far as distribution is concerned — continues to rise. Semafor reports that despite having somewhere between 300 and 500 of the company’s “orbs” in the field, they’re currently facing a shortage.

Orbs are hardware that Worldcoin uses to scan user’s irises — a part of the human eye considered unique, like our fingerprints — to register and confirm their digital identity. Those who sign up for the service in areas where it’s available, can have their eyes scanned to receive 10 WLD tokens — currently trading at $4.81 as of the time of this article’s publication — plus an additional two every month after.

LSE Consulting, a firm anchored within the London School of Economics and Political Science (LSE), recently released a report detailing a potential path towards European dominance in the emerging Web 4.0 sector. 

According to the team, the formation of an Airbus-style industrial conglomerate dedicated to fostering innovation and growth in the metaverse is the EU’s best bet to compete with the U.S., China, and other global sector leaders, and potentially exploit Europe’s current technological and economic potential.

Airbus is a multinational conglomerate that was formed when a trio of French, German, and Spanish aerospace companies merged in 2000. Since 2019, it’s been the world’s leading manufacturer of both airliners and helicopters.

It’s relevancy to the metaverse market, according to LSE Consulting, is in its cross-border incorporation and company focus on ensuring Europe remains the dominant player in the international aerospace market.

Per the team’s report, adopting an Airbus model for the metaverse could help position the EU at the top of the Web 4.0 hierarchy:

“An immersive industrial cluster will contribute to specialised internet engineering expertise in Europe. While national and regional governments must support engineering and research education programmes more broadly, immersive technologies can also make these programmes more attractive.”

The report cited a number of case studies from noteworthy European firms such as BMW, Ikea, Bosch Sensortec GmbH, Ericsson, and STMicroelectronics. Based on the success of these and other European firms exploring metaverse technologies, LSE Consulting came up with three recommendations to advance the sector.

First, the aforementioned formation of an international conglomerate — the Airbus model — for European innovation in the metaverse, is necessary to compete at the global stage, according to the report.

Secondly, LSE Consulting recommends prioritizing skills supply training to ensure that the European workforce is up to the challenge of innovating in the metaverse.

Finally, the report calls for government support in developing innovative cross-border solutions to emergent challenges and standards for adoption.

Related: EU DeFi regulations set to welcome big banks, challenge crypto natives

Michael Barngrover, Managing Director at XR4Europe said in a statement that “There are multiple viable paths ahead for the continent,” but added that “the recommendations presented by LSE's researchers contribute to discussions around the paths we must consider.”

Bitcoin (BTC) bounced past $64,000 ahead of the April 28 weekly close as altcoins sought a recovery.

BTC/USD 1-hour chart. Source: TradingView Altcoins set for boost on waning Tether dominance

Data from Cointelegraph Markets Pro and TradingView tracked stronger BTC price momentum over the weekend.

After putting in weekly lows of $62,400, BTC/USD reversed and managed to maintain higher ground, circling $63,500 at the time of writing.

Altcoins also performed well for “out-of-hours” trading, with the total altcoin market cap up around 1% on the day.

Total altcoin market cap (excluding top 10 tokens) 1-hour chart. Source: TradingView

“Alts bounced very nicely but still have to break the trend of setting week highs around monday to tuesday,” popular trader Skew responded on X (formerly Twitter), referencing recent market patterns.

Skew nonetheless suspected that sell-side pressure would step in on Bitcoin around range highs, keeping bulls from advancing much higher.

Source: Skew

Continuing on altcoins, trader and commentator Moustache was willing to bet on a full-fledged “altseason” entering next, this rivalling anything seen since the market’s ascent to all-time highs on 2017.

The monthly dominance chart for largest stablecoin Tether (USDT) dominance attempting a reclaim after breaking below a rising trendline this year, he suggested, was merely a “backtest.”

"When USDT.D goes down, Altcoins go up," he wrote.

"Biggest Altseason since 2017 is loading imo."

Tether (USDT) market dominance chart. Source: Moustache/X

Others thus awaited the start of “TradFi” trading, including Bitcoin futures, for further cues as to crypto market trajectory.

“Weekend price action so far so good,” fellow trader Daan Crypto Trades told X followers.

“Doubt we see any meaningful move from $BTC from this point until after CME opens back up.”

BTC/USD chart with CME Bitcoin futures open and close. Source: Daan Crypto Trades/X "Very bullish" BTC price structure keeps bull market on radar

Despite consolidating in a range still below previous cycle all-time highs, Bitcoin did not disappoint everyone.

Related: Bitcoin entering most likely 2 weeks for new BTC price dip — Analysis

For trader Alan Tardigrade, the monthly BTC/USD chart looked promising.

“On monthly chart, Bitcoin is still sitting above the Triangle Top, which is very Bullish,” he argued in recent X analysis.

“To have a long and solid Bull Run in the future, Consolidation is necessary to be built up.”

BTC/USD vs. IXIC chart. Source: Alan Tardigrade/X

An accompanying chart compared Bitcoin now to a pre-breakout period for the Nasdaq Composite Index (IXIC) in 2013.

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.

Io.net, a decentralized physical infrastructure network (DePIN), recently experienced a cybersecurity breach. Malicious users exploited exposed user ID tokens to execute a system query language (SQL) injection attack, which led to unauthorized changes in device metadata within the graphics processing unit (GPU) network.

Husky.io, Io.net’s chief security officer, responded promptly with remedial actions and security upgrades to protect the network. Fortunately, the attack did not compromise the GPUs’ actual hardware, which remains secure due to robust permission layers.

The breach was detected during a surge in write operations to the GPU metadata API, triggering alerts at 1:05 am PST on April 25.

In response, security measures were reinforced by implementing SQL injection checks on application program interfaces (APIs) and enhancing the logging of unauthorized attempts. Additionally, a user-specific authentication solution using Auth0 with OKTA was swiftly deployed to address vulnerabilities related to universal authorization tokens.

Source: Hushky.io

Unfortunately, this security update coincided with a snapshot of the rewards program, exacerbating an expected decrease in supply-side participants. Consequently, legitimate GPUs that did not restart and update could not access the uptime API, causing a significant drop in active GPU connections from 600,000 to 10,000.

To address these challenges, Ignition Rewards Season 2 has been initiated in May to encourage supply-side participation. Ongoing efforts include collaborating with suppliers to upgrade, restart, and reconnect devices to the network.

The breach stemmed from vulnerabilities introduced while implementing a proof-of-work (PoW) mechanism to identify counterfeit GPUs. Aggressive security patches before the incident prompted an escalation in attack methods, necessitating continuous security reviews and improvements.

Related: AI has a hardware crisis: Here’s how decentralized cloud can fix it

The attackers exploited a vulnerability in an API to display content in the input/output explorer, inadvertently revealing user IDs when searching by device IDs. Malicious actors compiled this leaked information into a database weeks before the breach.

The attackers leveraged a valid universal authentication token to access the ‘worker-API,' enabling changes to device metadata without requiring user-level authentication.

Husky.io emphasized ongoing thorough reviews and penetration tests on public endpoints to detect and neutralize threats early. Despite challenges, efforts are underway to incentivize supply-side participation and restore network connections, ensuring the platform’s integrity while serving tens of thousands of compute hours per month.

Io.net planned to integrate Apple silicon chip hardware in March to enhance its artificial intelligence (AI) and machine learning (ML) services.

Magazine: Real AI use cases in crypto: Crypto-based AI markets, and AI financial analysis

The United States Department of Justice (DOJ) prosecutors opposed a Motion to Dismiss conspiracy and money laundering charges against Tornado Cash co-founder Roman Semenov. They argued that the defense’s filing raised disputed facts for jury consideration, which is unsuited for early-stage motions.

In the DOJ’s response, the prosecutors analyzed why the Tornado Cash co-founder should answer for the alleged crimes levied against him. The DOJ contested the defense’s characterization of Tornado Cash, noting it was introduced in 2019 as a mixer. The service comprises a website, a user interface, a set of smart contracts, and a network of “relayers.”

The DOJ accused Roman Storm and fellow developer Roman Semenov of conspiring to commit money laundering, operating an unlicensed money transmitter, and violating sanctions by creating Tornado Cash, a crypto-mixing service. U.S. authorities claim that entities like North Korea’s Lazarus Group used Tornado Cash to launder funds.

Court filing in the U.S. District Court for the Southern District of New York. Source: CourtListener

In September 2023, Storm pleaded not guilty to all charges and was released on a $2 million bond shortly after his arrest. He is primarily restricted from traveling outside some areas of New York, New Jersey, Washington and California.

However, in late March, Storm’s attorneys sought to dismiss the indictment by arguing that authorities lacked grounds to charge him. Semenov clarified that he contributed to code design but is not accountable for its use.

Semenov’s legal team’s motion to dismiss emphasized that Tornado Cash does not operate as a custodial mixing service and does not meet the criteria for a “financial institution.” They claimed Storm had no control over the service to prevent entities like Lazarus Group from using it.

Related: FBI warning against crypto money transmitters ‘appears’ to be aimed at mixers

Damian Williams-led team of prosecutors argued in the filing that Semenov was accountable for operating the cryptocurrency mixer and accused him of developing systems aiding criminals in anonymity. They criticized Tornado Cash’s co-founders for inadequate changes to exclude sanctioned addresses.

This comes as the U.S. government continues its crackdown on crypto-mixing services.

On April 24, the co-founders of Samourai Wallet, a cryptocurrency mixer, Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill, were arrested and charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years and conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years.

Ki Young Ju, CEO of CryptoQuant, stated that crypto mixing services are not inherently criminal in response to the recent arrest of the founders of Samourai Wallet.

Magazine: Runes are offering a significant lifeline for Bitcoin miners — TeraWulf CEO

Google Cloud has introduced a new Web3 portal with resources for blockchain developers, including datasets and tutorials on creating non-fungible tokens (NFT), but its reception within the cryptocurrency industry has been mixed.

“No native Bitcoin and lightning support? Seems like an oversight to ignore the most important cryptocurrency,” vice president of product marketing at Unchained Phil Geiger stated in an X post on April 25.

“Not impressed Google is way behind,” pseudonymous crypto trader MartyParty told his 80,700 X followers on April 26.

Meanwhile, others were more receptive to the launch. Mitroplus labs founder Ivaibi Festo described the Web3 portal as a "comprehensive resource" in an April 25 post on X.

Source: Google Cloud

According to its website, developers can access a range of products and receive testnet tokens to deploy and test their decentralized applications (DApps) on Ethereum testnets Sepolia and Holesky.

It also has a learn program with tutorials on developing an NFT, implementing Web3 loyalty programs, and how to secure digital assets with multi party computation (MPC).

This comes after several recent developments by Google in the Web3 industry.

Most recently, it has expanded its features to allow users to search wallet balances across multiple blockchains, such as Bitcoin, Arbitrum, Avalanche, Optimism, Polygon and Fantom.

Related: Bitcoin halving searches on Google is at its highest point ever

At the beginning of 2024, Google updated its policies to allow certain crypto products to be advertised on major search engines, including Bitcoin exchange-traded funds (ETF).

Last year, Google appeared to be focusing on establishing partnerships in preparation for the portal launch this year.

In October 2023, Google Cloud’s BigQuery data warehouse was integrated with MultiversX, which will help Web3 projects and users derive valuable insights from powerful data analytics and artificial intelligence tools within the Google Cloud ecosystem.

Just a month before this, in September 2023, Google’s BigQuery added 11 blockchain networks to its data warehouse.

The new networks included Avalanche, Arbitrum, Cronos, Ethereum’s Görli testnet, Fantom, Near, Optimism, Polkadot, Polygon’s mainnet, Polygon’s Mumbai testnet and Tron.

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ACINQ's Bitcoin wallet, Phoenix Wallet, and zkSNACKs’ Wasabi Wallet are both discontinuing services for United States customers in response to the recent crackdown on two major self-custodial cryptocurrency wallet providers.

Both ACINQ and zkSNACKs raised concerns about whether self-custodial wallet providers can be seen as legitimate money service businesses following the recent action taken by the U.S. regulatory agencies against Metamask creator Consensys and crypto mixer Samourai Wallet.

“In light of recent announcements by U.S. authorities, zkSNACKs is now strictly prohibiting U.S. users from using its services,” zkSNACKs wrote in an April 27 statement.

“Recent announcements from US authorities cast a doubt on whether self-custodial wallet providers, Lightning service providers, or even Lightning nodes could be considered Money Services Businesses and be regulated as such,” ACINQ explained in an April 26 post on X.

ACINQ has given Phoenix Wallet users until May 2 to adjust to the upcoming changes, while the new policy at Wasabi Wallet was implemented “effective immediately.”

ACINQ explained that Phoenix Wallet users should drain their wallets, but avoid “force-closing” their wallets, as “on-chain fees could be significant.”

Source: Phoenix Wallet

Recently, regulators worldwide have argued that self-custody crypto wallets may assist in facilitating illicit activities such as money laundering.

On April 25, Cointelegraph reported that Consensys received a Wells notice from the SEC on April 10, warning of potential enforcement actions related to its MetaMask Swaps and MetaMask Staking products.

The SEC allegedly said in a phone conference that Consensys was operating as an unregistered broker-dealer.

Related: Wallet providers remain divided on BRC-20 integration despite popularity

Meanwhile, just a day earlier, on April 24, Cointelegraph reported that the co-founders of cryptocurrency mixer Samourai Wallet were arrested on charges of money laundering brought by the U.S. Justice Department (DOJ) and other agencies.

Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill are each facing one count of conspiracy to commit money laundering, with a maximum sentence of 20 years in prison, and one count of conspiracy to operate an unlicensed money transmitting business, with a maximum sentence of five years in prison.

In the meantime, European regulators have recently relaxed potential proposed regulations concerning self-custody wallets.

On March 23, Cointelegraph reported that a majority of the European Parliament’s lead committees scrapped a 1,000 euro ($1,080) limit on crypto payments from self-hosted crypto wallets as part of new anti-money laundering laws.

However, crypto exchanges, must perform due diligence, such as identity verification checks, on users who carry out business transactions of at least 1,000 euros.

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The Imagineers at Disney have come up with what may be the killer app for metaverse hardware, a 360-degree treadmill controllable via remote control, physical movement, or gesture. 

U.S. YouTuber and 2022 Ultimate champion Marques Brownlee, professionally known as MKBHD, was the first non-Disney employee to test the prototype device.

The Holotile, as the device is called, resembles a thick plastic mat made up of hundreds of little spinning pieces arranged in a seemingly random geometric pattern. It uses tilted, spinning discs to essentially create a floor that moves in every direction.

MKBHD demonstrated how it can be used to move objects with a wave of his hand (gesture control), much like the fictional Jedi Knights from the Star Wars entertainment franchise are able to use “the Force” to move objects with their minds.

Per MKBHD, in the video:

“And they've actually mapped anything that crosses a certain line in front of me to move whatever object is on the floor. So when I move my hand in front of that line, the program moves the floor around to match the movement of the object with the movement of my hand.”

Next up, the Disney team put MKBHD in a chair and allowed him to fling himself around the device using a PlayStation controller.

Finally, the YouTuber was allowed to use the device on his own two legs. After a brief training period he managed to walk around in a Disney metaverse environment where his movements were translated into the virtual 3D environment.

While the Holotile is only a prototype, it’s an example of what’s possible. There are 360-degree treadmills on the market today but, of the devices we’ve seen, none are capable of the unfettered movement that Holotile is.

It’s easy to imagine myriad use cases beyond simply imitating scenes from “Ready Player One” where fictional gamers walk, run, and sprint around virtual environments using a futuristic 360-degree treadmill.

Disney apparently sees it as a method by which to explore the company’s theme parks in the metaverse. During MKBHD’s trial, both he and the device’s inventors showed it off by walking around in a digital version of the Magic Kingdom.

Outside of theme parks and video games, it could be used to move objects in shifting environments, to train first-responders, law enforcement agents, and military operatives, and in any number of educational experiences. It could also make collecting NFTs a more interactive, physically-demanding activity if we imagine a paradigm where “Pokemon Go” meets “Bored Apes” in a traversable environment.

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Apple is reportedly on the hunt for a big tech partner to help shore up its flagging artificial intelligence (AI) offerings, with a specific focus on bringing th iPhone’s capabilities up to speed. 

Per a report from Bloomberg citing multiple sources, Apple and OpenAI are deep into discussions concerning the further integration of generative AI technologies on iOS.

However, previous reports also indicate that Apple is still shopping around with Google on the hook as another potential cloud partner.

Apple artificial intelligence

The Cupertino company’s AI ambitions appear to have fizzled over the past few years. Where once Apple’s walled garden approach to AI development seemed to indicate that it might have some mysterious tricks up its sleeve now, in 2024, the company’s flagship offering, the iPhone, is starting to show signs of lagging behind its AI-first competitors.

Arguably, the shift from internal development to external partnerships was signalled in May of 2022 when Ian Goodfellow, often referred to as the “GANfather” for his contributions to the field of AI, left his post as director of machine learning over Apple’s return to office policy.

Generative AI

In the time since Goodfellow’s departure, Apple has remained busy in the AI sector. The company recently released a bevy of open-source large language models, eight in total, complete with code and training logs.

While this signals a continuing dedication to AI and machine learning, it’s unlikely that any of the released models could be considered competitive with available closed models such as OpenAI’s ChatGPT and Google’s Gemini.

Market capitalization

As such, it’s possible that Apple is trying to finalize its generative AI partnerships ahead of its annual Worldwide Developers Conference (WWDC) in June.

The WWDC event is the typical showcase for the company’s biggest and most impactful products and, so far, 2024 has been a relatively quiet year for Apple.

Meanwhile, the company’s largest competitor, Microsoft, has had a metaphorical liscene to print money ever since it partnered up with AI sector leader OpenAI. As of current, Microsoft has a commanding lead as the world’s most valuable company by market capitalization with a total value of $3.019 trillion against Apple’s second place score of $2.614 trillion.

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Prosecutors in Taiwan are recommending a minimum 20-year prison sentence for the four main suspects in the fraud and money laundering case related to the cryptocurrency trading platform ACE Exchange.

According to a local news report, the Taipei District Prosecutors’ Office indicted 32 people on fraud and money laundering charges, including ACE Exchange founder David Pan, his business partner, Lin Keng-hong, and prominent attorney Wang Chen-huan, who served as chairman of the exchange.

The prosecutors now believe that over 1,200 individuals were deceived, resulting in an estimated total loss of 800 million New Taiwan dollars (US$24.56 million). This is an increase from the previous estimated loss of 340 million New Taiwan dollars ($10.6 million).

According to the report, the increased scale of the losses justifies the sentence recommendation. The prosecutors also recommended at least 12 years for Wang, considering his status as a director of a well-known law firm and his alleged vital role in assisting the scheme.

In January 2024, Taipei City police arrested Pan and 14 others linked to the case, conducting raids at various sites, including Ace’s headquarters. Investigations revealed Pan’s association with the fraudulent crypto wallet service known as “Alfred” or “Afu wallet,” along with a related crypto card.

According to the prosecutors, in 2019, the suspects promoted investments in NFTC tokens, bitnature coins, mochange — a token from ACE Exchange, and other tokens, using white papers and promotional materials to enhance their credibility.

Related: Taiwan to introduce new digital currency laws in September: Report

During their promotional efforts, Pan and Lin aimed to develop ACE Exchange into Asia’s most comprehensive blockchain ecosystem for crypto trading. However, many investors experienced a sharp decline in token value. They were unable to convert them back to New Taiwan dollars as guaranteed, prompting them to file complaints for a legal investigation.

A Taiwanese court reportedly ruled that the defendant’s property should be seized, with some confiscated assets amounting to at least 3.5 million New Taiwan dollars or $110,000.

In response to the indictment, Ace Exchange published a statement on April 8, reiterating that Pan and his fraudulent activity had nothing to do with the platform, as he reportedly ceased to be involved in day-to-day operations in 2022.

Ace Exchange is a lesser-known centralized crypto exchange based in Taiwan. According to data from CoinMarketCap, the platform was launched in late 2018 and trades around $14 million per day. According to data from Traders Union, Ace Exchange should be considered a “high-risk cryptocurrency exchange” with a trust score of 2.78 out of 10.

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Asset management firm Franklin Templeton has launched its Ethereum exchange-traded fund (ETF), dubbed the “Franklin Ethereum TR Ethereum ETF” and coded as EZET. The Ethereum spot ETF has been listed on the Depository Trust and Clearing Corporation website, a significant platform for securities transactions in the United States.

The DTCC website’s Create/Redeem column lists the ETF, indicating its availability for creation and redemption. This is a crucial aspect of ETFs, as it allows for adjusting the supply of ETF shares in response to demand, helping keep the ETF’s market price close to its net asset value.

The listing of the Franklin Templeton Ethereum spot ETF on the DTCC website does not necessarily indicate that the S-1 filing submitted to the United States Securities and Exchange Commission (SEC) for a spot Ether ETF has been approved.

Source: Depository Trust and Clearing Corporation

The DTCC website often lists securities that are eligible for trading and settlement within its systems, which can include ETFs that have completed particular registration or compliance processes. However, the approval status of an ETF filing is determined by the SEC based on various regulatory criteria and considerations.

The 1.5 trillion dollar asset management firm submitted the S-1 filing with the United States Securities Exchange Commission on Feb. 12 to apply for a spot Ether (ETH) ETF. It would be listed as “Franklin Ethereum ETF” on the Chicago Board Options Exchange if approved.

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The SEC postponed a potential decision on Franklin Templeton’s Ethereum spot ETF application on April 23. The SEC said it extended the timeline to review the proposed rule change for the listing and trading Franklin Ethereum Trust shares on the Cboe BZX Exchange. The commission now has until June 11, granting an additional 45 days for evaluation.

Franklin Templeton’s Ethereum spot ETF being listed on the Depository Trust and Clearing Corporation website aligns Franklin Templeton with other industry giants like BlackRock, Grayscale, VanEck, and ARK Invest, which have also entered the Ethereum ETF race. However, the outlook for Ethereum-based funds differs from that of their Bitcoin counterparts.

Bloomberg ETF analyst Eric Balchunas previously estimated chances of the SEC approving a spot Ether ETF in May at around 35% in March, citing the regulator’s less engaged stance compared to the Bitcoin ETF approval process. He also mentioned that SEC Chair Gary Gensler’s stance on Ether could impact the decision process, as Gensler has refused to clarify whether Ether is a security.

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Liquid staking, explained

Liquid staking allows stakers to keep the liquidity of their staked tokens by using a stand-in token that they can use to earn additional yield through DeFi protocols.

Before diving into liquid staking, let’s understand staking and the problems associated with it. Staking refers to the process of locking up a cryptocurrency in a blockchain network to sustain it, and it enables the stakers to earn a profit. However, staked assets typically become illiquid during the staking period, as they can’t be exchanged or transferred.

Liquid staking enables cryptocurrency holders to take part in staking without giving up control over their holdings. This has transformed the way users approach staking. Projects such as Lido introduced liquid staking, offering a tokenized representation of staked assets in the form of tokens and derivatives. 

It allows users to reap the advantages of staking while also retaining the flexibility to trade, trading these tokens in decentralized finance (DeFi) applications or transferring them to other users.

Is there a difference between delegated staking and liquid staking?

Network users in delegated proof-of-take (DPoS) cast votes to select the delegate of their preference. The purpose of liquid staking, however, is to let stakers circumvent the mechanism of minimum staking threshold and locked tokens.

Though DPoS borrows its basic concepts from proof-of-stake, its execution is different. In DPoS, network users are empowered to elect delegates, called “witnesses” or “block producers” for block validation. The number of delegates participating in the consensus process is limited and can be adjusted through voting. Network users in DPoS can pool their tokens into a staking pool and use their combined voting power to vote for the preferred delegate.

Liquid staking, on the other hand, is designed to bring down the threshold for investing and provide a way for stakers to circumvent the mechanism of locked tokens. Blockchains often have minimum requirements for staking. Ethereum, for instance, requires anyone who wants to set up a validator node to stake 32 Ether (ETH) minimum. It also requires specific computer hardware, software, time and expertise, which again requires plenty of investment.

What is staking-as-a-service?

Staking-as-a-service is a platform that serves as a mediator, connecting a blockchain’s consensus mechanism with cryptocurrency holders who want to contribute to the functioning of the network. 

Staking-as-a-service is a platform or service that enables users to delegate their crypto assets to a third party, who then participates in staking on the users’ behalf, usually in exchange for a fee or a share of the rewards. JP Morgan notes that by 2025, the staking services sector will expand to a whopping $40 billion. Crypto staking services will play a large role in this emerging economy, and liquid staking will be an integral part of it.

Staking-as-a-service platforms can be categorized as custodial and noncustodial based on their level of decentralization, which plays a major role in safeguarding stakeholders’ best interests and maintaining transparency. To facilitate decentralized governance, key decisions are made by a decentralized autonomous organization (DAO). 

Custodial staking-as-a-service involves extensive management of the staking process. Staking services offered by crypto exchanges are custodial. Rewards first go to the staking provider before being distributed among stakers.

In the noncustodial staking-as-a-service model, a validator charges a commission to anyone who wants to participate in staking. In PoS networks that support native delegation, the staker’s share of rewards is directly sent to them, with no involvement from the validator. 

How liquid staking functions

Liquid staking is designed to eliminate the threshold of staking and enable holders to make profits with liquid tokens.

Staking pools allow users to consolidate several small stakes into a large one using a smart contract, which gives corresponding liquid tokens (representing their share of the pool) to each staker.

The mechanism eliminates the threshold of becoming a staker. Liquid staking takes it a step further and enables stakers to make double earnings. On the one hand, they earn from the staked tokens, and on the other hand, they make profits with liquid tokens by carrying out financial activities such as trading, lending or any other activity without impacting their original staked position.

Using Lido as a case study will help us understand better how liquid staking functions. Lido is a liquid staking solution for PoS currencies, which supports several PoS blockchains, including Ethereum, Solana, Kusama, Polkadot and Polygon. Lido provides an innovative solution to the hurdles presented by traditional PoS staking by effectively lowering barriers to entry and the costs associated with locking up one’s assets in a single protocol.

Lido is a smart contract-based staking pool. Users who deposit their assets with the platform are staked on the Lido blockchain via the protocol. Lido allows ETH holders to stake fractions of the minimum threshold (32 ETH) to earn block rewards. Upon depositing funds into Lido’s staking pool smart contract, users receive Lido Staked ETH (stETH), an ERC-20 compatible token, which is minted upon deposit and burned upon withdrawal.

The protocol distributes the staked ETH to validators (node operators) within the Lido network, and subsequently, it is deposited to the Ethereum Beacon Chain for validation. These funds are then safeguarded in a smart contract, which is inaccessible to validators. The ETH deposited via the Lido staking protocol is segregated into sets of 32 ETH among active node operators on the network.

These operators utilize a public validation key to validate transactions involving users’ staked assets. This mechanism allows users’ staked assets to be distributed across multiple validators, mitigating risks linked to single points of failure and single validator staking. 

Stakers who deposit Solana’s (SOL) token, Polygon (MATIC), Polkadot (DOT) and Kusama KSM with a set of smart contracts in Lido receive stSOL, stMATIC, stDOT and stKSM, respectively. The stTokens can be used for DeFi yield earning, providing liquidity, trading on decentralized exchanges (DEX) and many other use cases.

Are there any risks associated with liquid staking platforms?

Like any product or service in the crypto space, technical threats and market volatility need to be taken into account when dealing with liquid staking.

Technical threats

PoS blockchains are still relatively new, and there is always the possibility of protocol bugs or vulnerabilities leading to asset loss or exploitation. Reliance on validators for staking also introduces counterparty risks.

Market risks

Liquid staking unlocks the staked assets, enabling stakers to earn rewards from DeFi applications. However, this also opens up the risk of losing on two fronts in a market downturn.

Keeping a liquid staking platform open-sourced and regularly audited helps protect against threats to an extent. Having a bounty program for the platform also helps minimize bugs. 

Conducting comprehensive due diligence is crucial to combat the risks associated with market volatility. This involves researching historical market data, evaluating the financial health of potential investments, understanding the regulatory landscape and developing a diversified investment strategy.

The financial services giant DTCC has stated that it will not allocate any collateral to exchange-traded funds (ETFs) with exposure to Bitcoin or cryptocurrencies and will not extend loans against them.

DTCC’s announcement states that effective April 30, 2024, the Depository Trust and Clearing Corporation (DTCC) will implement changes to collateral values for specific securities during its annual line-of-credit facility renewal, potentially affecting position values in the Collateral Monitor.

This notice released on April 26 means that exchange-traded funds and similar investment instruments with Bitcoin or other cryptocurrencies as underlying assets will not be assigned any collateral value, resulting in a 100% reduction in their collateral value.

However, in an X post, cryptocurrency enthusiast K.O. Kryptowaluty clarified that this would only apply to inter-entity settlement within the Line of Credit (LOC) system.

Source: K.O Kryptowaluty

A Line of Credit is a borrowing arrangement between a financial institution and an individual or entity that allows the borrower to draw funds up to a predetermined credit limit. The borrower can access these funds as needed and typically pays interest only on the amount borrowed.

According to Kryptowaluty, using cryptocurrency exchange-traded funds for lending and as collateral in brokerage activities will continue without impact, depending on individual brokers’ risk tolerance.

While DTCC has taken a stand against crypto ETFs, the same is not valid for other traditional players. Goldman Sachs’ clients have begun reentering the crypto market this year, driven by renewed interest following the approval of spot Bitcoin (BTC) exchange-traded funds.

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The introduction of spot Bitcoin ETFs has spurred increasing institutional interest in this investment product. Within three months of their launch, all United States Bitcoin ETFs have accumulated over $12.5 billion in assets under management (AUM).

In February, an estimated 75% of new Bitcoin investments came from the 10 spot Bitcoin exchange-traded funds approved in the United States on Jan. 11.

Following a healthy launch of Bitcoin ETFs, overall inflows have recently slowed down. In the past three days, multiple ETF issuers reported significant outflows in these spot Bitcoin ETFs. As reported by Farside Investors, spot Bitcoin ETFs in the U.S. saw a net outflow of $218 million on April 25, following a $120 million outflow the previous day.

Grayscale’s GBTC ETF saw a notable single-day outflow of $82.4197 million. According to data from Farside investors, the current historical net outflow for GBTC totals a substantial $17.185 billion.

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The share price of Nvidia (NVDA), one of the biggest producers of graphics processing units (GPUs), has recovered by 15% this week, leading analysts to speculate whether “bottomed out” artificial intelligence (AI) crypto tokens will follow suit.

“This is absolutely insane,” trading resource The Kobeissi Letter declared in an April 27 post on X, while pointing out the major climb seen in Nvidia's market cap within the past trading week:

“The stock has jumped from a low of $756 to $880+, adding ~$320 BILLION in market cap,” it added.

Source: The Kobeissi Letter

Even though AI crypto tokens have faced price drops across the board, analysts are hopeful that Nvidia's strong performance will have a positive effect, as they claim was the case in the previous market cycle.

Pseudonymous crypto trader Crypto Stream explained in an April 26 post on X that his “base assumption” for investing in AI tokens revolves around the performance of Nvidia. Its anticipated Q1 2024 earnings report will be released publicly on May 22.

“Many TradFi investors are probably waiting for this data before making their next move. Don't forget they felt a lot of FOMO when NVIDIA pumped non-stop,” they explained.

Meanwhile, Pseudonymous crypto trader CryptoGodJohn told their 668,100 X followers on April 27 that it “should be an exciting few weeks leading into the Nvidia earnings.” 

“A lot of AI coins looking bottomed out here,” CryptoGodJohn further added.

Render (RNDR) is down 6.89% over the past 24-hours, while Fetch.AI (FET) dipped 6.12% and SingularityNET (AGIX) has declined 5.47% over the same time period, as per CoinMarketCap data.

Related: AI takes center stage as Microsoft and Google earnings signal booming market

NVDA saw a recovery of 15% since the end of trading on April 19, when the stock closed at $762. By the end of the trading week on April 26, the share price had reached $877.

Within the past 24 hours alone, NVDA rose 6.18%, according to Google Finance data.

Source: Google Finance

AI crypto tokens experienced price jumps after Nvidia's strong performance was released in its Q4 2023 earnings report in February.

On Feb. 26, Cointelegraph reported that following Nvidia announcing breakout earnings, AI crypto tokens saw a surge in value. The firm announced revenue and earnings of $22.1 billion and $12.3 billion, respectively, in Q4 2023, representing increases of 265% and 769% compared with Q4 2023.

Just days before, on Feb. 22, it was reported that the total market cap of AI-based tokens swelled by over 9% to $17.8 billion since Nvidia’s quarterly earnings report and has risen from $7 billion earlier in February.

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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.

United States regulators have reportedly closed Philadelphia-based Republic First Bank, marking the nation's first banking failure of 2024.

It has sparked debate among the crypto community amid Bitcoin (BTC), Ether (ETH), and several altcoins slightly faltering following the news.

“Another bank just collapsed, the Republic First Bank. Yeah... I think I'll stick to Bitcoin,” CEO of Zesh Marius Martocsan stated in an April 26 post on X.

“Republic First Bank failure is worth a look since bank failures are the best possible narrative we can get for crypto,” pseudonymous crypto trader Pillage Capital claimed in an April 26 post on X.

“How many more need to fail before people start to be their own bank?” crypto commentator Randi Hipper asked her 87,100 X followers on April 26.

After Republic First was reportedly seized by the Pennsylvania Department of Banking and Securities on April 26, the Federal Deposit Insurance Corporation (FDIC) was appointed as its receiver. The agency will take on nearly all deposits and acquire all assets of Republic Bank, according to an April 26 Reuters report.

Republic First reportedly had approximately $6 billion in total assets along with $4 billion in total deposits as at Jan. 31. 

The bank has 32 branches across New Jersey, Pennsylvania, and New York, and will reopen under Fulton Bank's umbrella by the start of next week at the latest.

In 2023, even rumors of possible banking failures saw slight spikes in Bitcoin's price shortly after, however, its price has slightly declined following the news.

Over the past hour, Bitcoin is down 1.16%, trading at $62,715 and Ether is down 0.58% trading at $3,095, as per CoinMarketCap data. 

Bitcoin has been trading below a key support level of $65,000 in the past 24 hours. Source: CoinMarketCap

Meanwhile, altcoins have seen a slightly larger slump in the same timeframe, with Dogecoin (DOGE) down 2.88% and Solana (SOL) down 1.79%.

The news follows a rough year for the banking industry, with five banking failures recorded in the U.S. in 2023, according to FDIC data.

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First Republic Bank, a separate entity, was acquired by JPMorgan in May 2023 after initial recovery efforts failed.

In March 2023, the Federal Reserve announced the closure of Signature Bank, claiming it was in an effort to protect the U.S. economy, citing “systemic risk.”

It came only days after Silicon Valley Bank was ordered to shut down. A week prior, Silvergate Bank, another crypto-friendly bank, announced it would close its doors and voluntarily liquidate itself.

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