Pantera Capital is seeking to secure $1 billion for its new fund, ‘The Panter Fund V. ‘ It is designed to provide investors with exposure to a wide range of blockchain-based assets.

A new report by Bloomberg revealed that the new fund is expected to launch in April 2025.

Pantera Fund V

The Pantera Fund V has been designed to be an all-encompassing product, differing from the digital asset investment manager’s previous funds with more specific investment focuses such as the Liquid Token Fund, Early Stage Token Fund, Bitcoin Fund, and Venture Funds. Qualified investors must allocate a minimum of $1 million, with the first close scheduled for April 1, 2025.

Limited partners are expected to contribute a minimum of $25 million to participate in the fund.

Its website states,

“Fund V offers exposure to the full spectrum of blockchain assets. The venture-style Fund will invest in venture equity, early-stage tokens, and liquid tokens.”

The fund, if successful, would become the largest raised since the sector’s collapse amidst scandals and bankruptcies in 2022, according to the report. The fund managers encountered significant difficulties in raising new capital last year, but this appears to be changing as the sentiment of key players improves.

With the market recovery, Pantera’s new fund is expected to match the size of its last one, which raised about $1.25 billion two years ago.

Pantera Capital Scores Discounted Solana Tokens

In addition to the new fund, Pantera Capital also emerged as one of the successful bidders for another batch of discounted Solana tokens. They were auctioned by the administrators overseeing the bankruptcy of the now-defunct FTX cryptocurrency exchange.

Approximately 2,000 SOL tokens were sold this week, though this information hasn’t been publicly disclosed. Neither Pantera nor the FTX estate spokespeople have commented on the sale yet. Earlier this month, the FTX estate disposed nearly two-thirds of a $2.6 billion stash of Solana tokens at a discounted rate, attracting interest from Pantera and Galaxy Digital, as reported by insiders.

The 41 million SOL tokens being sold are locked under a pre-agreed vesting period spanning four years. Despite previous auctions fetching roughly $60 per token, sources reveal that these recent coins were sold at a higher price. More auctions are expected to follow.

The post Pantera Capital’s Fund V Targets $1 Billion for Diverse Blockchain Investments appeared first on CryptoPotato.

An “epic sat,” an extremely rare satoshi (the smallest unit of Bitcoin) from the network’s fourth halving block, was recently sold for over $2 million.

On April 25, the crypto mining pool ViaBTC successfully auctioned off “Sat 1,968,750,000,000,000” for 33.3 BTC, approximately $2.13 million, on the cryptocurrency exchange CoinEx Global.

ViaBTC’s Rare Satoshi Auctioned

CoinEx Global announced that its partner, the ViaBTC mining pool, successfully mined the 840,000th block. This milestone marked Bitcoin’s fourth halving and featured a block identified as an epic “Rare Satoshi.”

According to CoinEx, this event was not just a bidding event but part of Bitcoin’s blockchain history, showing the community’s acknowledgment, media coverage, and wider acceptance of the asset and the network.

The auction has concluded successfully, with the FIRST & ONLY epic sat selling for 33.3 $BTC (≈$2,134,000). This auction isn’t just a bidding event; it marked the community recognition, media attention, & widespread embrace of #Bitcoin. A heartfelt thanks to all who support us. pic.twitter.com/fCFz1YrH0I

— CoinEx Global (@coinexcom) April 25, 2024

This satoshi, known as an “epic sat,” garnere­d a lot of intere­st, with 34 bids before an unidentifie­d bidder secured owne­rship rights to the epic sat. The runner-up bidder made an offer of 20 Bitcoin for the rare sat but was outbid in the auction.

The Bitcoin network currently has 100 million satoshis (sats), with each worth around $0.00065. However, some sats are considered more special within the Bitcoin ecosystem.

Only four ­of the ­first satoshis mine­d after a Bitcoin halving e­­vent are conside­re­d exceptionally rare and valuable­­. The Bitcoin Ordinals protocol, which assigns metadata to satoshis, has made ­the­se “epic sats” collectible­, resulting in them being highly sought afte­­r.

Bitcoin Struggles Following Fourth Halving

The fourth Bitcoin halving event on April 20 reduced mining rewards from 6.25 BTC to 3.125 BTC. In addition to receiving 3.125 BTC in mining rewards, ViaBTC also earned 37.6256 BTC in reward fees, amounting to approximately $2,401,399.

Meanwhile, bitcoin’s price has been struggling post-halving. On Thursday morning, it dropped below $64,000. This price decline followed the liquidation of over $209 million in crypto-long positions as the market dipped overnight, with around $52 million in bitcoin-long positions getting wrecked. Comparatively, BTC had climbed as high as $73K before halving.

However, the top crypto by market cap has since seen some recovery. CoinGecko data shows Bitcoin is currently trading at around $64,386, up 0.2% over the last day.

Meanwhile, the next Bitcoin halving is projected to take place around April 17, 2028. With this one, the fifth “epic sat” will be associated with the first subsequent block, as mining rewards decrease to 1.56 BTC.

The post Rare ‘Epic Sat’ from Bitcoin’s Fourth Halving Block Sold for Over $2 Million appeared first on CryptoPotato.

Bitcoin could be headed to $1 million after a tsunami of newly printed cash drives up all asset prices, according to Strike CEO Jack Mallers.

The executive, whose payments app lets people remit fiat currency around the world on Bitcoin rails, said in a Friday interview that money printing will be required to bail out the U.S. bond market, which he claims is “in trouble for the first time in modern financial history.”

A Recipe For Money Printing

According to Mallers, the U.S. government and the Federal Reserve have two options: either let the banking system fail, or print their way out of the mess.

“I think historically, governments and empires have picked inflation running hot,” he said. “I expect inflation to run hot, and the currency to be debased.”

The CEO claimed that the entire banking system is “insolvent,” including JPMorgan and Bank of America.

In March 2023, institutions like Silicon Valley Bank collapsed after experiencing a run on withdrawals. The collapse was spurred by revelations that they’d realized a massive loss on their underwater long-term bonds, which plummeted in value after the Federal Reserve began hiking interest rates the year prior.

“The central banks and government is going to try and save that market,” Mallers argued. The liquidity required for the rescue may equal “two or three Covids,” he said, which would boost asset prices as a byproduct.

How Bitcoin Hits $1 Million Per Coin

“I think $250,000 to $1,000,000 is the imagination I have, in that range, of just how big (Bitcoin) can get,” he added.

Mallers’ predictions echo those of BitMEX co-founder Arthur Hayes, who regularly writes about the precarious tension between inflation and government debt. At Token2049 this month, the essayist claimed that Bitcoin will surge well past $100,000 this cycle, as real interest rates continue to trend negative relative U.S. GDP.

Other industry leaders with price predictions surpassing $1 million include Jan3 CEO Samson Mow, and Ark Invest CEO Cathie Wood.

The post Strike CEO Predicts $1 Million BTC Amid COVID-Level Money Printing appeared first on CryptoPotato.

Bitcoin whales appear to be realizing their profits from BTC’s latest rally, as on-chain analysts have identified a surge in inflows to centralized crypto exchanges.

According to a CryptoQuant Quicktake by anonymous crypto analyst Phi Deltalytics, BTC whale inflows to exchanges currently constitute a substantial portion of overall flows to trading platforms.

Whales May Be Taking Profits

A separate Quicktake from analyst Woominkyu on April 25 revealed that the unrealized profits of long-term bitcoin whales had gotten high, especially with BTC hovering above $60,000. Analyzing the chart in his post, Woominkyu explained that whales were seeing an increase in their profits, but they had not cashed out yet.

The analyst identified a spot on the chart that indicated a significant rise in their unrealized profits, suggesting that this cohort of BTC investors was holding onto their positions. However, he warned that a move to realize the profits would impact the market.

Around 24 hours after Woominkyu’s post, Phi Deltalytics announced the notable surge in bitcoin exchange inflow, the majority of which appears to be from whales.

“This uptick potentially signifies significant profit-taking by whales amidst the 2024 Bitcoin bull run. While acknowledging that such metrics occasionally generate false signals, prudent caution is warranted in interpreting market dynamics,” Phi Deltalytics said.

Long-term Holders Are Cashing Out

Besides bitcoin whales, long-term holders of the digital asset have also been cashing out. Three days ago, Woominkyu observed that the Spent Output Profit Ratio (SOPR) of long-term holders had surged past that of short-term holders over a seven-day moving average. This indicates that the former cohort is realizing more profits than short-term holders.

Additionally, Woominkyu explained that the SOPR of long-term holders has decreased over the years. However, there are occasions where the ratio experiences an uptick, which precedes spikes in bitcoin’s price. Those upticks have revealed that long-term investors are capitalizing on price surges to realize price. Investors are urged to exercise caution against potential price corrections and increased volatility as the SOPR is currently high.

Meanwhile, BTC is consolidating between $60,000 and $70,000, meaning the cryptocurrency could witness a major slump if it rallies to $70,000 and gets rejected there. At the time of writing, the asset was changing hands at $64,100, registering insignificant gains or losses in the past 24 hours.

The post Exchange Inflow Surge: Are Bitcoin Whales Taking Profits? appeared first on CryptoPotato.

TL;DR

Shiba Inu’s layer-2 scaling solution is set for a major update on May 2, aiming to enhance user experience and streamline transaction fees.

The amendment aims to improve the platform’s security, with more details to be shared closer to the launch date.

The Approaching ‘Transformative Upgrade’

The team behind Shiba Inu announced on X that the layer-2 scaling solution, Shibarium, will undergo an important update on May 2 through “an upcoming hard fork.” 

The advancement aims to enhance user experience, empower the community of developers and innovators, implement quicker block processing times, and respond directly to community feedback.

“We are also smoothing out transaction fee variations during high traffic times, making costs more predictable and fair for everyone. This ensures our platform remains affordable and accessible,” the team added.

Shiba Inu’s developers raised hopes that the upcoming changes will make Shibarium easier to use and more “robust and secure.” The update is also expected to boost the efficiency of the burning mechanism, which has witnessed significant progress lately.

Last but not least, the team said the active participation of the SHIB army in such an amendment is “crucial,” adding that more details will be presented “as we get closer to launch.”

Earlier this month, Shibarium underwent another key upgrade. The developers introduced a new user interface (UI), describing it as “faster, smoother, and more accessible than ever.” It enables compatibility with popular self-custody wallets, including Coinbase Wallet, MetaMask, and Trust Wallet. 

Shibarium’s Future Roadmap

Besides announcing the aforementioned essential updates, the Shiba Inu team unveiled the main agenda for Shibarium in the next two years. The network’s marketing strategist, using the X handle LUCIE, said the development of the DeFi platform ShibaSwap and the application Shiba Hub came first on the list.

The launch of the TREAT token (a governance cryptocurrency of the upcoming layer-3 blockchain) and an enhanced focus on K9 Finance (a liquid staking derivative platform for the Shibarium network) were mentioned, too.

Those willing to know how the L2 scaling solution aims to foster the advancement of the Shiba Inu ecosystem can take a look at our dedicated video below:

The post Importnat Shiba Inu (SHIB) Update Coming Up Next Week: Details appeared first on CryptoPotato.

The predictions for the US economy continue to be gloomy.

“Rich Dad Poor Dad” author Robert Kiyosaki bluntly stated that the American economy is in a depression. He defined depression as an economy experiencing subpar growth – even though it is technically growing, it’s below its potential.

To support his claim, Kiyosaki pointed out that in Q4 2023, the economy grew by 3.4%, but in Q1 2024, it only increased by 1.6%, less than half of the previous quarter’s growth.

American Economy Growing Below Potential

In his tweet, Kiyosaki even warned against believing fake news and encouraged seeking facts, preparation, and taking care as the ongoing downward trend indicates there won’t be a “soft landing.”

Q: Is the American economy in DEPRESSION? A: Yes Definition of a depression: an economy in subpar growth. In other words the economy may be growing but below potential. Q4 2023 economy grew by 3.4%. Q1 2024 economy grew by 1.6% less than half. Not going to be a soft…

— Robert Kiyosaki (@theRealKiyosaki) April 25, 2024

This tweet follows his earlier suggestions about investing in Bitcoin.

Kiyosaki – who has penned down several financial books – is a strong supporter of the Bitcoin ecosystem and had previously urged his followers to reduce their exposure to fiat currencies, which he described as part of the “fake money system.”

Rich Dad Poor Dad’s Bitcoin Predictions

The popular financial guru predicted that BTC could reach $300,000 by the end of 2024 as the world’s leading asset was experiencing significant rallies driven primarily by the introduction of spot Bitcoin ETFs.

He even deemed that BTC is superior to traditional assets such as gold, silver, and oil.

Despite his ownership of gold and silver mines along with oil wells, Kiyosaki said that a fundamental flaw in these traditional assets is that the more they are mined, the more their values are diluted. This contrasts sharply with bitcoin, which has a fixed supply of 21 million BTC, highlighting its advantage in terms of scarcity and potential long-term value.

The post No Soft Landing: Here’s Why Robert Kiyosaki Believes the American Economy Is in Depression appeared first on CryptoPotato.

Polkadot has been undergoing a prolonged corrective consolidation around the critical $6.5 support level, with the price retracing slightly toward the 100-day moving average.

However, the short-term expectation is to continue this corrective consolidation phase.

Polkadot Price Analysis: Technicals

By Shayan

The Daily Chart

A comprehensive analysis of the daily chart shows a swift rebound near the pivotal support level of $6.5, with the price exhibiting a minor bullish retracement. This suggests a lack of significant market activity and momentum, indicating a cooling down in the futures market.

Nonetheless, the price remains within a crucial price range, bordered by the significant resistance zone of the 100-day moving average at $8.1, aligned with the 0.382 Fibonacci retracement level ($8), and the significant support region of $6.5.

These levels serve as crucial reference points for Polkadot in the short term, and a breakout from this critical range could result in a substantial market movement.

Source: TradingView The 4-Hour Chart

Upon closer examination of the 4-hour timeframe, there is evidence of bullish corrective retracements towards the critical resistance region of the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels, leading to the formation of an ascending wedge, a recognized bearish continuation pattern.

However, the Polkadot price has recently faced rejection from the 0.5 Fib level and experienced a decline, breaking below the lower boundary of the pattern.

This suggests the potential for a continued downtrend, with the price aiming for the crucial support region of $6.

Source: TradingView Sentiment Analysis

By Shayan

The intensity of long and short positions in the perpetual market, along with the potential for significant liquidations, significantly impacts market volatility.

Open Interest, a crucial metric measuring the number of open perpetual futures contracts across cryptocurrency exchanges, provides valuable insights into market sentiment.

With Polkadot’s recent downtrend, it’s notable that the Open Interest metric has mirrored this trajectory, experiencing a notable decline. This synchronization suggests a reduction in activity within the futures market.

Consequently, as the price is currently testing a critical support region, the market seems primed for the resurgence of long positions, potentially signaling a fresh and decisive market movement.

Source: TradingView

This post is powered by Polkadot.

The post Is Polkadot Primed for a Major Move Following Extended Consolidation? (DOT Price Analysis) appeared first on CryptoPotato.

The market continues to chop, clearly unable to pick a definitive direction throughout the past seven days. The total capitalization currently stands at around $2.5 trillion, more or less where it was during the same time last week. However, there’s been substantial volatility, sending many leveraged traders into liquidations. Let’s have a look.

Starting with Bitcoin, it has failed to make any progress during the past seven days, but this wasn’t due to a lack of effort. On Monday, April 22nd, BTC bulls took its price toward the higher end of the current range—above $66K. Critical technical resistance lies at around $68K, and the bulls attempted to break above it on two separate occasions—one on Tuesday and one on Wednesday.

Both of these were unsuccessful. It appears that this gave the bears a lot of confidence, and they pushed the price back toward the lower spectrum of the range. Bitcoin currently trades at around $64K.

A lot of the altcoins, however, managed to capitalize on this indecision, charting certain gains.

For example, ETH is up 1.1% during the same period, XRP gained more than 4%, SHIB skyrocketed by 9.2%, TRX – by 8.8%, and so forth. BNB is the largest top-performing altcoin, increasing by almost 8% in the past seven days.

In terms of what happened, perhaps the most notable event is the beginning of the trial between the United States Securities and Exchange Commission and Ripple Labs. It’s a lawsuit that’s been dragged on for many years, and it has just entered its final phase. Some experts are already speculating that a settlement is incoming, while others vouch for a more decisive victory for the company behind XRP.

The SEC also got involved in another lawsuit, but this time it was on the receiving end. Consensys – one of the biggest companies in the industry – filed against it, arguing that its potential regulations could seriously harm the blockchain industry in the United States.

With over a week after the Bitcoin halving, it’s interesting to see how the market will develop in the near future. If one thing is sure, it’s that boring days are a rarity in the industry, and there might be a surge of volatility right around the corner.

Market Data

Market Cap: $2.49T | 24H Vol: $84B | BTC Dominance: 50.9%

BTC: $64,351 (-0.9%) | ETH: $3,140 (+1.2%) | BNB: $603 (+7.9%)

This Week’s Crypto News You Better Not Miss

Tether CEO: Bitcoin Is the Most Beautiful Currency in the World (Token2049 Dubai Interview). During the Token2049 conference in Dubai, CryptoPotato sat down with the CEO of the world’s largest stablecoin issuer, Tether (USDT). Find out what he had to say about the market and the industry’s future.

How to Stake Polkadot (DOT): The Ultimate Guide. Polkadot is one of the leading cryptocurrencies by means of development activity and total market capitalization. In this guide, we take an in-depth look at the intricacies of Polkadot staking and how to do it.

Here’s What Will Drive Bitcoin to $150K After the Halving: Standard Chartered. An analyst from Standard Chartered, who’s also the head of digital asset research – Geoff Kendrick, thinks that Bitcoin’s price is likely to trend higher following the halving. Check out the reasons why and how high it could go.

Consensys Files Lawsuit Against SEC Over Ethereum Regulation. Crypto heavyweight Consensys has filed a lawsuit against the United States Securities and Exchange Commission. The company stipulates that the Commission’s potential regulation poses risks to the US blockchain tech industry.

 SEC Likely To Deny Ethereum Spot ETFs In May: Reuters. Industry experts seem to believe that the Ethereum (ETH) ETF will likely be denied approval for public trading by regulators in May. Here’s why.

Instagram Influencer Jay Mazini Sentenced to 7 Years for $8 Million Fraud Scheme. From riches to rags: United States District Judge Frederic Block has sentenced popular Instagram influencer Jay Mazini to seven years in prison. He’s been found guilty of multiple fraud schemes and scams.

Charts

This week, we have a chart analysis of Ethereum, Ripple, Cardano, Shiba Inu, and Polkadot – click here for the complete price analysis.

The post Bitcoin’s Chop Continues, XRP Gains as Ripple v. SEC Trial Begins, and More: This Week’s Crypto Recap appeared first on CryptoPotato.

Following Bitcoin’s recent halving event, market analysts are closely eyeing the role of liquidity in shaping the cryptocurrency’s trajectory over the coming months.

According to insights from Kaiko, the strengthening liquidity could support a sustained rise in bitcoin’s price.

Bitcoin’s Liquidity Rebounds

Liquidity refers to the ease with which an asset can be bought or sold without significantly impacting its price. Recent data suggests that BTC’s liquidity has been steadily improving since the lows witnessed in the aftermath of the FTX collapse, particularly with the approval of spot Bitcoin ETFs.

According to Kaiko, improved liquidity is a positive development for Bitcoin, as it can mitigate price volatility and reduce the impact of large sell-offs. Strong liquidity is essential for supporting a prolonged positive trend in bitcoin’s price trajectory and increasing market confidence and demand.

Since the halving on April 20th, bitcoin’s aggregated market depth has shown promising growth, increasing from $323.91 million on April 14th to $419.97 million by April 22nd.

However, despite the overall positive trend in liquidity, there are concerns regarding weekend trading activity. Historically, weekend and overnight liquidity management has posed challenges for crypto markets, leading to a consistent decline in bitcoin’s weekend trading volumes over the past three years.

Although the halving did not immediately impact weekend trade volumes, with daily numbers hovering around $10 billion during the first after the event, a drop in this metric could reduce the positive effects of strengthening liquidity.

Despite the optimism surrounding the spot Bitcoin ETF approvals, improving liquidity conditions, and higher transaction fees, macroeconomic uncertainties prevail, introducing uncertainty on the post-halving trajectory.

Macroeconomic Factors

Previous Bitcoin halvings have coincided with periods of low-interest rates and stable inflation, supporting subsequent bull runs.

Kaiko notes that between 2009 and 2016, the U.S. Federal Reserve maintained rates around 0.25%, briefly raising them to 2.5% in 2019 before reverting to 0.25% by the third halving in 2020.

Low rates encourage investment in risk assets like bitcoin. While BTC is sometimes viewed as a safe haven, it typically benefits from lower rates due to its correlation with risk assets.

Moving forward, the halving alone won’t fuel a sustained bull run. The asset must attract new investors, likely through the U.S. and upcoming Hong Kong spot Bitcoin ETFs, to sustain a bullish trend. Thus, improving liquidity and demand will be vital for bitcoin’s value proposition in the coming months.

The post This Metric Predicts Sustained Bitcoin Price Gains By 2024’s End: Kaiko appeared first on CryptoPotato.

This week, we take a closer look at Ethereum, Ripple, Cardano, Shiba Inu, and Polkadot.

Ethereum (ETH)

Ethereum’s downtrend appears to be coming to an end as the price has decided to move sideways above the key support. For this reason, ETH closed the week with a 2% price increase.

This cryptocurrency is now in a range between support at $2,900 and resistance at $3,370. The longer it consolidates here, the more significant the eventual breakout will be.

Looking ahead, ETH did a bullish cross on the daily MACD, which could bring optimism and put bulls back in charge. To confirm a bullish bias, the resistance at $3,370 has to fall.

Chart by TradingView Ripple (XRP)

Earlier this month, XRP failed to hold above 53 cents and fell all the way to 43 cents, which is currently acting as a key support. XRP bounced on this level and managed to close the week with a 6% price increase.

Even if buyers managed to defend the price and keep it above 43 cents, they seem unable to push this cryptocurrency to new highs. The resistance is at 54 cents and may stop any renewed buying interest.

Looking ahead, XRP has been stuck in a large range since late 2023 and was unable to have a major breakout. This has not changed this year so far. Until that happens, don’t expect a significant rally.

Chart by TradingView Cardano (ADA)

ADA managed to find good support at 46 cents and closed the week with a 2.6% price increase. As long as the key support holds, buyers could aim to regain control of the price action.

The current resistance is at 61 cents, and Cardano has not tested this level yet. A relief rally could follow if the support holds. At that point, a test of the key resistance becomes possible.

Looking ahead, if buyers manage to stop the downtrend here, they could attempt to put this cryptocurrency back on an uptrend in the coming month.

Chart by TradingView

Shiba Inu (SHIB)

Shiba Inu closed the week with a 14% price increase, making it the best performer on our list. This is an impressive recovery considering that a week before the price made new local lows.

The key support is found at $0.000025. So far, buyers managed to hold here and defend SHIB from further sell pressure. The resistance is at $0.000037.

Looking ahead, the ideal scenario for this meme coin is to range above the key support and eventually attempt a new rally in May.

Chart by TradingView

Polkadot (DOT)

DOT’s price action is similar to Cardano and managed to find good support above $6.7. For this reason, the price closed the week with a 1.8% price increase.

The correction appears to be coming to an end and as long as the key support holds then buyers can use this period to gather strength for an attempt at the key resistance currently found at $7.7.

Looking ahead, DOT may consolidate here before it attempt to resume its uptrend. This is contingent on the overall market turning bullish.

Chart by TradingView

The post Crypto Price Analysis Apr-26: ETH, XRP, ADA, SHIB, and DOT appeared first on CryptoPotato.

TL;DR

Some analysts point to potential bearish trends for Bitcoin, predicting a drop to as low as $59,000, suggesting the cryptocurrency has reached its cycle peak.

Peter Schiff continues his critical stance on BTC, identifying $60,000 as a key resistance level and warning of a significant potential decline if this is not overcome.

A Bearish Outlook

Bitcoin’s price has been hovering around $64,000-$67,000 in the past few days, currently trading at the lower mark. While the majority of industry participants remain optimistic that a substantial rally is just behind the corner due to the halving that took place last week, some analysts outlined somewhat bearish forecasts.

One example is the popular X user Ali Martinez, who noticed two sell signals on BTC’s 12-hour chart: “a death cross between the 50 and 100 SMA and a red 9 candlestick from the TD Sequential.”

He believes a further plunge below $63,300 may trigger a price downfall to $61,000 or even a two-month low of $59,000.

Another trader who presented a worrying scenario for BTC bulls is Mikybull Crypto. The analyst assumed that the leading digital asset has reached its cycle top and expects a price retreat from now on.

#Bitcoin is not looking great here

The cycle top is in I’m afraid pic.twitter.com/kAEMvc7egt

— Mikybull Crypto (@MikybullCrypto) April 25, 2024

The Ultimate Bear

When speaking of people who believe BTC’s value is on the verge of a decline, one should mention Peter Schiff. Most recently, the American stockbroker (who is among the harshest critics of the cryptocurrency) claimed that the asset’s current condition “is not looking good for HODLers.” He pinpointed the $60,000 level as a major resistance zone, or otherwise, BTC is going “a long way down.”

This is not the first time Schiff has predicted a grim future for the cryptocurrency. Last year, he envisioned that BTC’s rally will cease once the US SEC approves the first spot Bitcoin ETFs in the world’s biggest economy.

Recall that the regulator gave the thumbs up in January when the price of the asset was hovering around $46,000. BTC has charted a 40% increase since then.

The post Grim Bitcoin Price Prediction: Analyst Warns of Potential Bearish Sentiment appeared first on CryptoPotato.

The United States spot Bitcoin exchange-traded fund (ETF) market is struggling with inflows as investors withdraw their assets in droves. This wave of withdrawals has affected the two largest funds, causing them to break their inflow streak and even lose some of their assets.

According to data from CoinGlass, the Fidelity Wise Origin Bitcoin (FBTC) witnessed its first outflow since launch on April 25, a day after the spot Bitcoin ETF of the world’s largest asset manager, BlackRock, broke its 71-day inflow streak.

FBTC Witnesses Outflows for the First Time

Yesterday, FBTC saw outflows of $22.6 million for the first time since inception. The fund’s outflows were alongside that of Ark Invest’s ARKB, Bitwise’s BITB, and Valkyrie’s BRRR, which lost $31.3 million, $6 million, and $20.2 million, respectively.

In addition, Grayscale’s GBTC, which has been on a 73-day outflow streak since its conversion from a Bitcoin Trust, also witnessed withdrawals of $139.4 million. The only ETF that saw inflows was that of asset manager Franklin Templeton, which received investments of $1.9 million. The rest, including BlackRock’s IBIT, saw zero inflows and outflows.

Altogether, the spot Bitcoin ETF market saw outflows totaling $217.6 million, representing its second and highest outflow this week.

While FBTC’s outflows were its first since launch, the fund has witnessed several days of zero inflows, with at least three in April alone. Regardless, the fund holds 154,000 bitcoins (BTC) worth over $9.9 billion.

A Breather Was Overdue: Analyst

On the other hand, IBIT recorded its first day of zero inflows on April 24, a day after joining the top ten United States ETFs with the longest inflow streak. BlackRock’s fund defied an outflow streak the spot Bitcoin ETF market witnessed between April 12 and 18, accumulating assets while its rivals saw no inflows and some withdrawals.

Despite zero inflows for two consecutive trading days, IBIT remains the largest spot Bitcoin ETF, with assets under management totaling $17.24 billion (274,460 BTC). The ETF also set a new record, topping the list of ETFs with the highest assets after their first 72 days in the market. An X post by Bloomberg ETF analyst Eric Balchunas showed FBTC came second on the list, outpacing the following funds by a far margin.

Balchunas said that “the league of own-ness” of IBIT and FBTC indicated that their inflows were overheated and that a hiatus was overdue.

The post Fidelity’s FBTC Sees First-Time Outflows as BlackRock’s IBIT Breaks Inflow Streak appeared first on CryptoPotato.

TL;DR

The trial between Ripple and the SEC has advanced, with Ripple set to respond to SEC motions by early May following a new scheduling order by Judge Sarah Netburn.

Attorney Jeremy Hogan anticipates a potential summer conclusion to the lawsuit, with the company possibly facing a $100 million settlement.

What’s Coming Next?

The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) entered into its trial phase last week, with numerous industry participants expecting a resolution or a mutual agreement in the near future.

Most recently, American attorney James K. Filan revealed that Magistrate Judge Sarah Netburn has entered a new scheduling order. The action is focused on the motion for remedies and entry of final judgment. Judge Netburn ruled that the regulator should file its response by April 29, whereas Ripple is granted three business days thereafter to reply.

The latest action on the case follows Netburn’s recent nomination as District Judge in the Southern District of New York. She has previously shown a rather favorable stance toward Ripple’s native token, giving the XRP army hope that a decisive court win for the company might be on the horizon.

“My understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from bitcoin and ether,” the judge said in 2021 (according to attorney Jeremy Hogan).

The Possible Scenarios

Hogan recently suggested that the lawsuit might be officially closed sometime this summer, envisioning a $100 million settlement:

“I’m saying that the Judge will order 0 disgorgement but throws the SEC a bone and orders Ripple to pay a $100 million penalty.”

Previously, the SEC sought a $2 billion fine on the firm, alleging certain XRP sales violations. For its part, Ripple argued that its native cryptocurrency should not be classified as a security and, thus, not fall under the agency’s jurisdiction. The company’s chief legal officer, Stuart Alderoty, outlined several important reasons why the penalty should be no more than $10 million.

If you are curious to learn more about the legal spat and its potential impact on XRP and the entire cryptocurrency market, feel free to check our dedicated video below:

The post Ripple v. SEC Lawsuit Update: The Next Key Dates to Wait for appeared first on CryptoPotato.

Ethereum’s network has been the home of many narratives throughout the years, and liquid restaking is undoubtedly one to look into.

You might be confused by the term liquid restaking, and that’s completely understandable. After all, another popular narrative is centered around liquid staking.

Before we dive into the intricacies of the Renzo Protocol, which is the ultimate purpose of this guide, it’s essential to understand a few fundamental principles first.

Quick Navigation

What’s the difference between Liquid Staking and Liquid Restaking?

Liquid Staking Tokens (LST)

Liquid Restaking Tokens (LRT)

What is EigenLayer?

Understanding Actively Validated Services (AVS)

What is Renzo Protocol?

Understanding restaking strategies

Understanding ezETH

Restaking with Renzo Protocol: step-by-step guide

ezPoints: everything you need to know

The REZ token in depth

Utility

Tokenomics

Token Distribution

Token Release Schedule

The Renzo (REZ) airdrop

The Team

Investors

Participating in the Binance Launchpool for Renzo Protocol (REZ)

That’s a Wrap

What’s the difference between Liquid Staking and Liquid Restaking?

Let’s keep it simple. Both of these involve some sort of staking, which is the process of taking your tokens (we will use ETH as an example throughout the entire guide) and locking them within a protocol to serve a certain purpose. For this, you will receive a reward (in the form of interest).

Liquid Staking Tokens (LST)

Liquid staking is a process where you stake your ETH in protocols, which in turn mint a synthetic representation of your ETH – that’s called a liquid staking token (LST). The purpose of your ETH, however, is always to increase the economic security of Ethereum. It’s staked to validate and secure the Ethereum network. The term “liquid” comes from the fact that the synthetic asset that you receive can then be used in various DeFi initiatives that you find fit.

The base protocol here is Ethereum, and there are different LST protocols such as Rocket Pool, Lido, Binance ETH, Mantle ETH, and so forth.

Liquid Restaking Tokens (LRT)

With liquid restaking, the purpose of your staked ETH is to increase the economic security of external systems. These can be Oracle networks, Rollups, and whatnot. So, you will still stake your ETH within a certain protocol, and you will once again receive a synthetic representation of your tokens called a liquid restaking token (LRT), but the purpose is different.

The base protocol here is EigenLayer. Some of the top LRT protocols include Renzo, Eigenpie, Kelp DAO, Puffer, ether.fi, and others.

Important note: both LSTs and LRTs are pegged to ETH in a 1:1 manner, and you should always be able to redeem your synthetic tokens for the ETH you’ve staked.

Here’s a table to visualize the above:

Source: CryptoPotato What is EigenLayer?

Now that you know what LRTs are, let’s quickly explain the role of EigenLayer in all this. This is important for our guide because Renzo Protocol is essentially a Liquid Restaking Token and a strategy manager for EigenLayer. Don’t worry. It will make more sense in a moment.

EigenLayer is a protocol that’s built on Ethereum, and it was the first to introduce restaking as a primitive. Through that protocol, users are able to repurpose their ETH on the consensus layer. They are now able to opt-in to EigenLayer smart contracts and restake their ETH to increase the crypto-economic security of other applications on the network.

It’s essentially a middle layer where users agree to grant EigenLayer more enforcement rights on their staked ETH. This then allows the protocol to restake the ETH on other applications.

These applications can be rollups, oracle chains, or pretty much any application that is based on similar cryptoeconomic principles. They are called Actively Validated Services (AVS). These are very important to understand the purpose of the Renzo Protocol.

Understanding Actively Validated Services (AVS)

In essence, an AVS is any system that has a requirement for distributed validation for verification. These can be sidechains, bridges, keeper networks, data availability layers, oracle networks, and so forth.

To put it in very simple terms, your staked ETH is being restaked to secure these AVSs. But since each AVS is different and it might come with inherently variable risk profiles, the rewards are also different (you get rewards for staking and restaking, remember?) So, which AVS should you direct your tokens to, and what’s the best strategy?

This is where the Renzo Protocol comes in.

What is Renzo Protocol?

Renzo is a platform that’s built on EigenLayer and basically serves as an interface to its ecosystem. It uses a combination of operator nodes and smart contracts to make sure that its users get the best risk/reward restaking strategy.

We know this can be quite confusing, so let’s try to break it down even further.

Understanding restaking strategies

Now that you know what EigenLayer is and what LRTs are let’s attempt to simplify even more what Renzo does.

As we already explained, the AVSs in EigenLayer are any sort of decentralized service looking to inherit Ethereum’s security. A restaking strategy is, then, a position where you (the user) decide to secure any of the many available AVSs. You can also make all sorts of combinations. The number of possible strategies, however, increases with the number of available AVSs.

This makes it hard to choose the one which will bring the best risk/reward ratio. This is what Renzo does. It simplifies this process and makes the choice for you, ensuring the best R:R ratio.

Understanding ezETH

ezETH is the Liquid Restaking Token (LRT) of the Renzo Protocol. It represents the user’s restaked position at Renzo.

Users are able to stake native ETH or liquid staking tokens (LSTs), such as wBETH and stETH, and receive ezETH.

An important factor here is that ezETH is a reward-bearing token. As such, its value can increase relative to the underlying tokens, as it yields more rewards because of its usage in AVSs.

Renzo has also integrated with Pendle Finance, where a new token is created through a single contract – EIP5115 SY Token. It represents ezETH at a 1:1 ratio, but it can also be tokenized in principal tokens and yield tokens for those who want to do that.

Restaking with Renzo Protocol: Step-by-Step Guide

Now that you have a fundamental understanding of how the Renzo protocol works, let’s find out how to actually use it in practice.

Step 1: You will need some ETH (or LSTs such as stETH) in your MetaMask wallet.

Step 2: Visit the Renzo Protocol restaking dashboard and connect your wallet.

Step 3: You will be able to choose between the different ecosystems, as well as between native ETH or any other LSTs that are supported. These include wBETH (Binance Staked Ether) and stETH (Lido Staked Ether) for Ethereum.

Step 4: In our case, we will restake native ETH.

Step 5: Enter the amount you wish to stake and hit “Confirm.”

Step 6: Confirm the transaction from the interface.

Step 7: Confirm the transaction from your wallet.

Step 8: Head to the Portfolio tab where you’ll be able to view your earned points and rewards.

And you’re done!

Please note that withdrawals are currently disabled. Users will be able to withdraw their deposited ETH following a so-called cooldown period, to be determined by the team. However, ezETH is traded on secondary markets so you can always swap it on DEXs.

ezPoints: Everything You Need to Know

Renzo’s points (ezPoints) are designed to reward users who actively participate and contribute to the success of the protocol. Every participant receives points but their number varies based on the duration and the nature of this participation.

Holding ezETH, for instance, rewards ezPoints. Every ezETH holder receives 1 Renzo ezPoint per hour per 1 ezETH. Early participation is also rewarded, while users who hold more ezETH receive more points, based on different boosts such as these:

Source: Renzo Protocol

ezPoints determine the number of REZ tokens a user will receive following the token generation event, which brings us to the next point.

The REZ Token in Depth

Imperative to Renzo’s commitment to decentralization is the REZ token – a cryptocurrency that’s designed to power the governance of the protocol.

Utility

REZ is the native governance token for the protocol. Holders of REZ will be able to vote on governance proposals regarding various matters, including but not limited to:

Operator whitelisting

Actively Validated Services whitelisting

Frameworks for general risk management

Community and treasury grants

Concentration amounts, collateral assets, deposits, etc.

Tokenomics

The total supply of REZ tokens is capped at 10,000,000,000.

The initial circulating supply (listing on April 30th) will be 1,150,000,000.

You can find the contract here.

Token Distribution

Fundraising: 31.56%

These tokens are for the project’s early investors.

Community: 32%

7% will be for Season 1 airdrop rewards based on the earned ezPoints.

Various community campaigns

5% allocated towards second season of incentives

Core Contributors: 20%

Distribution to Renzo Labs’ team and advisors

Foundation: 12.44%

Binance Launchpool: 2.5%

Liquidity: 1.5%

Token Release Schedule

The token release schedule looks like this:

Source: Binance The Renzo (REZ) Airdrop

The REZ airdrop has been a much-anticipated event for community members who have been farming ezPoints since their announcement.

As stated above, 7% of the total supply will be distributed for Season 1 airdrop rewards based on the user’s earned ezPoints.

Here are the airdrop eligibility criteria:

You need minimum 360 ezPoints per wallet.

Most of the eligible wallets, accounting for over 99% of the total, will be fully unlocked at TGE.

This doesn’t apply to larger wallets. Those who have more than 500,000 ezPoints will see 50% unlocked at TGE and the rest vested linearly over 3 months.

The snapshot date is April 26th, 2024, while the claim date will be on April 30th. The claim window will open an hour before the listing on Binance, which is at 12:00 (UTC).

There will also be a Season 2 with undisclosed dates for now. It will receive 5% of the total supply.

The Team

Lucas Kozinski is part of the founding team at Renzo Protocol. He comes with rich background in the crypto industry, having previously worked at lending and borrowing app Moonwell, TokenSoft, and the Tezos Foundation.

James Coole is another founding contributor at Renzo. He had previously co-founded TokenSoft, where he served as the Chief Technology Officer for five years.

Kratik Lodha is also listed as one of the founding contributors. His background consists of multiple analytic positions in various funds such as the Woodstock Funds, WorldQuant, Equity Research, and others.

Investors

In January 2024, Renzo disclosed a $3.2 million seed round led by Maven11. Other participants included IOSG Ventures, Figment Capital, SevenX Ventures, and more.

According to its official website, investors also include Binance Labs, OKX Ventures, Mantle, Edessa Capital, BODHI Ventures, Robot Ventures, Re7Capital, and others.

Participating in the Binance Launchpool for Renzo Protocol (REZ)

The Binance Launchpool campaign will last until April 30th. Trading will start at 12:00 (UTC).

To participate, you will need a Binance account. If you don’t have one, you can create it using this link. You will also need to complete your KYC verification. The whole process takes no more than a few minutes.

Step 1: Locating the Launchpool Section

Once you have your account prepared, you will need to navigate to the Launchpad & Launchpool section from the top navigation menu (if you’re on Desktop).

renzo_binance_launchpool_1

Step 2: Selecting a Pool

Once there, the Renzo launchpool will appear as the latest one, and you will have to choose which pool you want to join. For REZ, there are two pools:

FDUSD Pool

BNB Pool

For the sake of this guide, we will choose the FDUSD Pool. You will be staking FDUSD to receive rewards in REZ.

Click on “Stake.”

Step 3: Staking the Selected Cryptocurrency

You will be taken to a new window, where you will be able to monitor all the information for the pool you’ve selected. This includes total pool rewards, maximum hourly rewards, how many people participate, how much is staked, and so forth. Here, you will also be able to track your rewards and claim once the claiming window opens.

You will once again have to click on “Stake.”

After that, all you need to do is input the amount you wish to stake and, you guessed it, click “Stake” again.

Step 4: Claim Your Rewards When Possible

Rewards are calculated hourly, so once enough time has passed, you will see the claimable amount appear under the “My Rewards” tab on the page. You can claim them, but you will only be able to trade REZ once the listing takes place on April 30th.

That’s a Wrap

Renzo Protocol has managed to attract a lot of attention through its considerable growth in a relatively short period of time. The liquid restaking narrative is also one of the more interesting trends in 2024, with EigenLayer booming in both usage and popularity.

The protocol provides an easy-to-use way to earn a yield on otherwise dormant tokens, but there are also certain risks involved.

While Renzo does what it can to ensure security, it’s also highly advisable for every user to do extensive research, assess their risk profile, and—if needed—even consult with a professional before making any financial decisions.

The above post is powered by Renzo Protocol.

The post What is Renzo Protocol? The Liquid Restaking Primitive Explained appeared first on CryptoPotato.

Despite the growing outflows from the US spot Bitcoin ETFs, the cryptocurrency’s price has remained relatively stable at just over $64,000.

The altcoins are a lot less volatile today, with SHIB gaining around 3% while NEAR has pumped by 7% to well above $7.

BTC Remains Above $64K

Bitcoin faced enhanced volatility last week amid the growing geopolitical tension between Iran and Israel. The most substantial declines came last Friday, with a price drop to well below $60,000.

Once that tension was put to rest, at least in theory, the asset regained over $5,000 and stood at around $65,000 when the fourth halving was completed. The following few days were quite positive, with minor but consecutive gains that pushed BTC to a local peak of just over $67,000.

However, the primary digital asset failed at that point and was pushed down hard yesterday. The bears drove BTC to below $63,000 but it managed to bounce off and spiked to over $65,000 later that day.

It has failed to maintain its run since then but still remains above $64,000 as of now, even though the ETF outflows continued for a second day straight.

Its market cap is about $30 billion away from $1.3 trillion on CG, while its dominance over the alts is just shy of 51%.

Bitcoin/Price/Chart 26.04.2024. Source: TradingView NEAR Heads Further North

Most altcoins have remained relatively still on a daily scale, with ETH, SOL, TON, ADA, and BCH slightly in the red, while BNB, XRP, DOGE, and AVAX have charted insignificant gains.

Tron and Shiba Inu have added more value within the same timeframe, having jumped by around 2.5%-3%.

NEAR Protocol’s native token is today’s top performer from the top 50 alts. NEAR has soared by almost 7% and sits north of $7.2 as of now.

The total crypto market cap has increased slightly since yesterday but still remains inches below $2.5 trillion on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto

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Consensys has taken legal action against the U.S. Securities and Exchange Commission (SEC).

The lawsuit, filed on Thursday, aims to stop an impending SEC crackdown on Consensys’ MetaMask wallet and seeks a crucial ruling on the classification of Ethereum’s native token, Ether.

Consensys Challenges SEC’s Stance

The filing asserted, “The U.S. Securities and Exchange Commission’s (SEC) threatened regulation of Ether as a security would jeopardize the United States’ ability to use Ethereum and similar blockchain technology.”

Consensys is pushing for a federal court declaration affirming that Ether is not a security. It argues that any investigation based on ETH being a security would violate the company’s Fifth Amendment rights and the Administrative Procedures Act.

The lawsuit also seeks to clarify that MetaMask, Consensys’ wallet product, does not function as a broker under federal law, and its staking service does not break securities laws.

Consensys received a Wells notice from the SEC on April 10, indicating the SEC’s intent to pursue enforcement action against the company for alleged violations of securities laws through its MetaMask wallet product. The complaint also references the SEC’s prior stance on Ethereum, citing former director Bill Hinman’s 2018 speech, which classified Ether as a commodity.

Consensys highlights the SEC’s inconsistency in its approach and points to the Commodities Futures Trading Commission’s (CFTC) jurisdiction over Ethereum derivatives as further evidence of ETH’s commodity status.

It alleges that this shift constitutes an “about-face” that contradicts the Constitutional requirement of fair notice under the Due Process Clause.

Consensys also invokes the “major questions doctrine,” a legal principle that limits federal regulators from overstepping their Congressional mandates. The company warns of serious consequences for both the Ethereum network and Consensys should the SEC’s actions proceed unchecked.

Gensler’s Crypto Crackdown

The lawsuit against the agency comes amid SEC Chairman Gary Gensler’s aggressive crackdown on major crypto players, such as Coinbase and Uniswap.

Gensler’s approach has included issuing subpoenas to firms and developers for documents related to their interactions with the Ethereum Foundation, a nonprofit supporting the network’s development.

Critics within the crypto industry are angered by Gensler’s tactics. They argue that the SEC has not provided clear regulatory guidelines tailored to blockchain technology’s unique characteristics. Gensler denies these criticisms, asserting that existing securities laws are sufficient and blaming the crypto industry for non-compliance.

Consensys’ lawsuit, filed in the Northern District of Texas, aligns with similar preemptive legal actions taken by groups like the Blockchain Association and companies like Legit Exchange. Despite these legal actions, Gensler continues to pursue Ethereum’s staking feature as the basis for the SEC’s recent legal stance.

The post Consensys Files Lawsuit Against SEC Over Ethereum Regulation appeared first on CryptoPotato.

TL;DR

Shibarium plans further developments, including enhancements to the ShibaSwap platform and the launch of the TREAT governance token.

The L2 blockchain solution experienced a brief network outage but swiftly recovered. It also introduced a new user interface update, improving compatibility with popular self-custody wallets.

Shibarium’s Development in the Next Two Years

Shibarium—Shiba Inu’s layer-2 scaling solution—has made great strides since its launch last summer. Total transactions on the network have surpassed 400 million, while total blocks are inching toward the 4.5 million mark. 

Despite these achievements, the feature is yet to experience some important advancements. Shibarium’s Marketing Strategist, using the X handle LUCIE, outlined that the further development of the DeFi platform ShibaSwap and the application Shiba Hub come first on the list.

The launch of the TREAT token – a governance asset of the upcoming layer-3 blockchain – and an enhanced focus on Shiba Eternity (a mobile game in the SHIB ecosystem) are also included on the agenda.

Last but not least, the team will touch upon K9 Finance – a liquid staking derivative platform for the Shibarium network which allows users to stake BONE tokens.

What’s coming in 2024/2025 for #Shibarium?

– #Shibaswap (version 1.75 followed by 2.0) – #Shibahub – @treatsforShib – #ShibaEternity P2E – @mvshib – @K9finance Liquid Staking – Layer 3 Testnet

Additionally, fully functional DAOs will be available for all tokens within the Shiba… pic.twitter.com/iICIaoi11Z

— | SHIB.IO ‍ (@LucieSHIB) April 24, 2024

Shibarium’s Latest Ups and Downs

The L2 blockchain solution recently witnessed a temporary outage caused by “networking issues amongst the validators.” However, the SHIB developer Kaal Dhairya revealed that the issue was quickly resolved:

“Network is back up and running now, some services like Shibariumscan or external RPCs can still remain down until the steps provided are implemented. If you’re an external team working on infrastructure level for Shibarium ( e.g. RPC etc ) please reach out so that we can streamline comms with you over shared telegram / slack channels.”

Contrary to the brief disruption, Shibarium introduced a new user interface (UI) upgrade, describing it as “faster, smoother, and more accessible than ever.” According to the team, the update has allowed compatibility with popular self-custody wallets like MetaMask, Coinbase Wallet, and Trust Wallet.

If you want to learn how Shibarium aims to foster the development of the Shiba Inu ecosystem and its main purposes, please check our video below:

The post Big News for Shiba Inu (SHIB): Team Member Posts Shibarium Roadmap Hints appeared first on CryptoPotato.

Jabara Igbara, commonly known as “Jay Mazini,” who boasted of being a crypto millionaire on Instagram, has been sentenced to seven years in prison by U.S. District Judge Frederic Block.

The sentence on wire fraud and money laundering charges also mandates Igbara to forfeit $10 million.

Jay Mazini Labelled a “Crypto Con Man”

According to the United States Attorney’s Office, Igbara, 28, carried out multiple fraud schemes and scammed investors of at least $8 million. He pleaded guilty to the charges in November 2022.

United States Attorney Breon Peace stated that Igbara’s prosecution revealed him as a fraudster who used his social media popularity to con investors out of millions of dollars. Peace added that Igbara targeted his religious community, exploiting their trust to spend and gamble their hard-earned money. The hope is that today’s sentence will deter fraudsters like Igbara from victimizing investors for personal gain, he added.

Internal Revenue Service Criminal Investigation Special Agent-in-Charge Thomas Fattorusso characterized Igbara as a “crypto con man” who created a fake online presence to convince unsuspecting victims to invest in his schemes.

Fattorusso noted that Igbara conned the New York Muslim community out of millions and subsequently spent and gambled the funds away. He emphasized that Igbara’s actions disregarded the victims of his scam, but the sentencing ensures that he will spend years in prison for his criminal acts.

Igbara Orchestrated Overlapping Fraud Schemes

From 2019 to 2021, Igbara maintained a prominent presence on Instagram as “Jay Mazini,” garnering nearly one million followers. He portrayed himself as a prosperous investor and entrepreneur while sharing content related to his Muslim faith, presenting himself as devout.

Igbara showcased his alleged wealth by sharing videos on Instagram in which he distributed large sums of cash to shoppers in grocery store checkout lines, fast-food restaurant employees, and a woman he encountered at the airport who had lost her purse.

Operating through a company named Halal Capital LLC, Igbara executed an investment fraud scheme targeting members of the Muslim-American community in New York. He solicited funds from them for purported investments in stocks, electronics resale, and the sale of personal protective equipment. In reality, Igbara was orchestrating a Ponzi scheme, diverting nearly all the funds for personal expenses, luxury vehicles, and gambling.

Igbara then began a second fraudulent scheme to maintain the illusion of profitability and retain investors. He advertised on his Instagram and other social media platforms that he would pay above-market prices for various cryptocurrencies.

After receiving cryptocurrency from victims, Igbara would fabricate wire transfer confirmations, falsely indicating that he had sent money for the cryptocurrency as promised. In reality, no payment was made, and Igbara was simply pocketing the cryptocurrency sent by his victims.

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Blockchain developers have come one step closer to launching rollups on Bitcoin, enabling “unlimited smart contract functionality” and scaling once foreign to the OG crypto network.

On Friday, BitcoinOS published the whitepaper for “BitSNARK and Grail”, a system for bridging Bitcoin to layer 2 rollups and blockchains in a trust-minimized way.

Rollups On Bitcoin: Is It Possible?

The new rollup system is an outgrowth of BitVM – the Bitcoin-based computing paradigm discovered by Robin Linus last year.

Among BitVM’s most notable applications was its ability to verify “Succinct Non-Interactive Arguments of Knowledge” (SNARKs) on Bitcoin. By extension, this opened the possibility for Bitcoin Rollup Bridges, and scaling technologies similar to Optimism or Arbitrum on Ethereum.

BitSNARK builds on BitVM using a software library optimized for this specific purpose, enabling bridges that are cheap, efficient, and secure enough for practical use.

“This is a solution to Bitcoin’s trilemma of scale, computational expressivity, and decentralization,” wrote Edan Yago, one of the paper’s authors, to Twitter on Thursday. “No softfork, upgrades, or new op-codes are required.”

The New Bitcoin Bridge Model

Until now, existing Bitcoin layer 2 systems have been plagued by significant tradeoffs compared to scaling systems built on more expressive blockchains like Ethereum. For example, Bitcoin’s lightning network can grow impractical for use by individuals due to the cost and complexity of channel management.

Furthermore, Bitcoin sidechains like Liquid and Rootstock require a federation of third parties to manage the “bridge” between L1 and L2, representing a single point of failure for both chains.

That’s where Grail comes in: the new system uses BitSNARK to generate SNARK proofs for Bitcoin and rollup transactions and allows secure asset transfers between L1 and L2 rollups.

“While many systems rely on a majority vote in a threshold signature scheme for security, BitSNARK promises to provide stronger security by allowing a single honest agent to prevent abuse by any or all of the other agents,” the whitepaper stated.

The authors said the Grail bridge requires at least two operators to function, but that theoretically any number could be supported. Creators can also form systems for old bridge operators to leave the group, or new operators to join it.

Yago said that the BitcoinOS team is currently aiming to design a bridge with over 100 operators.

“The trust assumption works unless all parties collude,” he added. “That’s what makes it so strong.”

The whitepaper arrives shortly after the launch of Runes – a Bitcoin token protocol that’s driven up activity and fees substantially on Bitcoin’s base layer over the past week.

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Binance founder and former CEO Changpeng Zhao (CZ) has publicly apologized for what he described as “poor decisions” and has taken “full responsibility” for his actions.

Meanwhile, Binance co-founder He Yi said that while he acknowledges that CZ may have made mistakes, his biggest one was ignorance.

CZ Issues Apology and Appeals for Second Chance

Following his November 2023 settlement of charges with the U.S. Department of Justice (DOJ), Changpeng Zhao (CZ) is scheduled for sentencing on April 30. The DOJ has requested a 36-month sentence despite CZ previously waiving his right to appeal any sentence up to 18 months.

In a letter addressed to Judge Richard A. Jones of the United States District Court for the Western District of Washington on April 24, Zhao acknowledged his past oversights. He recognized the necessity for implementing compliance changes at Binance sooner and highlighted the subsequent incorporation of stringent controls during his tenure.

CZ further emphasized his voluntary surrender and acceptance of responsibility in the ongoing case, expressing a desire to resolve matters before the court to pursue new opportunities.

The Binance co-founder then appealed for a second chance, recounting his unconventional career path of simplicity and integrity, including the return of investor funds after failed startup ventures. Additionally, he portrayed his involvement in crypto as driven by ideals of inclusivity and equal opportunity, aiming to support small biotech labs and youth-centric initiatives in the future.

Binance Co-founder Says CZ’s Mistake Was Ignorance

He Yi, Binance co-founder and mother of CZ’s three children, has characterized him as the guardian of the cryptocurrency industry, likening it to the Wild West. She stated that as a startup with no illustrious background, the founding team, including herself, lacked legal expertise, and most members, except CZ, could not read English.

Despite their limited experience and legal knowledge, CZ won over users with fairness, integrity, and a strong sense of responsibility for the industry, albeit while making mistakes. Nonetheless, both Binance and CZ have borne the consequences.

Meanwhile, the plea for leniency for Zhao includes mentions of his family members, such as his wife and two children attending U.S. institutions, along with his sister, a former Managing Director at Morgan Stanley.

Jessica Zhao, his sister, acknowledged CZ’s errors while noting his commitment to altruism. She highlighted the dispute with FTX and noted CZ’s dedication to maintaining Binance’s integrity by refraining from misusing customer funds.

Notably, Binance settled charges for U.S. anti-money-laundering and sanctions violations late last year, resulting in penalties amounting to $4.3 billion and the imposition of oversight from authorities.

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