Two early Ethereum investors have recently moved the funds that they acquired at the time of the network’s initial coin offering (ICO), to seemingly cash out their funds after they appreciated around 1,200,000% from their purchase price.

According to on-chain analysis service Lookonchain, two separate Ethereum ICO participants have recently deposited a total of 9,518 ETH worth around $36.3 million at the time of the deposit onto popular centralized cryptocurrency exchange Kraken.

The deposit came after they invested in the now second-largest cryptocurrency by market capitalization at the time of its Genesis, with its price then being of around $0.31 per ETH, meaning that the value of their funds appreciate 1,200,000% since then, with one ETH now trading at $3,780.

2 #Ethereum ICO participants deposited 9,518 $ETH ($36.33M) into #Kraken today.They received 200K $ETH (cost is $62K, currently worth $767M) at #Ethereum Genesis, the ETH ICO price is ~$0.31.https://t.co/MpZNj3UUdzhttps://t.co/cotXncC1s2https://t.co/BUVl4EfUkb… pic.twitter.com/9AK55Y4E8X

— Lookonchain (@lookonchain) June 3, 2024

The ICO participants, however, deposited only a portion of the 200,000 ETH their received at the time they purchased it during the ICO, having spent $62,000 on the cryptocurrency, with their holdings now worth well over $750 million.

The transactions came after the U.S. Securities and Exchange Commission (SEC) recently approved form 19b-4 filings for several spot Ether exchange-traded funds (ETFs), a move that sent shockwaves through the cryptocurrency market and paving the way for these products to start trading.

Michael Nadeau, a prominent crypto analyst, recently provided an in-depth analysis of the current and future state of the cryptocurrency market, with a particular focus on Bitcoin and Ethereum, suggesting ETH could significantly outperform BTC in the near future.

On top of that, data shows that since Ethereum transitioned into a Proof-of-Stake consensus algorithm and after the London hard fork, over $16.6 billion worth of the cryptocurrency have been burned.

The London hard fork included the implementation of Ethereum Improvement Proposal (EIP) 1559, which changed the way transaction fees on the network work. 

Featured image via Pixabay.

The price of Ethereum ($ETH ), the second-largest cryptocurrency by market capitalization, has managed to remain above the $1,800 mark after the U.S. Securities and Exchange Commission cleared the path for spot Ether exchange-traded funds last month, with ETH whale accumulation intensifying since then.

According to an analyst from cryptocurrency analytics firm CryptoQuant, over 800,000 ETH worth around $3 billion has moved off of centralized cryptocurrency exchanges in little over a week.

The analyst noted that institutions preparing for a spot Ethereum ETF to start trading in the United States could be behind the centralized exchange outflows in a bid to meet the potential demand from investors for such a fund.

Source: CryptoQuant

The data comes as the first leveraged Ether ETF was launched in the United States, with the Volatility Shares 2x Ether ETF (ETHU), set to start trading on June 4 after securing approval from the U.S. Securities and Exchange Commission.

Notably IntoTheBlock, a cryptocurrency intelligence firm, has noted that whale accumulation has recently intensified, with 41% of the supply of the second-largest cryptocurrency now being held by addresses with more than 1% of its total circulating supply, up from 36% at the beginning of the year.

Per the firm, the trend highlights the increasing confidence in ETH among large holders.

Whale accumulation in ETH has intensified. Currently, 41% of the $ETH supply is held by addresses with more than 1% of the total supply, up from 36% at the start of the year. This trend highlights increasing confidence among large holders. pic.twitter.com/GEvADO13k5

— IntoTheBlock (@intotheblock) May 31, 2024

As CryptoGlobe reported, last month data revealed that then umber of smaller Ethereum investors, those holding 10 ETH or less,  recently climbed to a new all-time high while larger investors were seemingly still lagging behind after divesting most of their funds over the last few months.

Before any trading can begin, issuers of spot Ether ETFs must receive the go-ahead on their S-1 registration statements, with the SEC having no set deadline to review these filings.

The SEC’s ongoing investigation into Ether has intensified over the last few months, especially after the network’s transition to a Proof-of-Stake protocol.

Should Ether be classified as a security, it could provide the SEC with a basis to deny the applications for spot Ether ETFs. Nevertheless, the surge led to the spike in small ETH holders while seeing the cryptocurrency’s trading volume explode.

Featured image via Unsplash.

On May 15, Markets Insider reported that the state of Wisconsin made a significant foray into the cryptocurrency market by purchasing $163 million worth of Bitcoin during the first quarter of the year. This investment, documented in a 13F filing with the Securities and Exchange Commission (SEC), marks a notable moment for institutional investment in digital assets.

The Wisconsin Investment Board, which oversees the state’s $150 billion pension fund, has allocated approximately $38 billion in public stocks as of 31 March. The recent filing revealed that the board acquired over 1 million shares of the Grayscale Bitcoin Trust valued at $63.7 million and around 2.5 million shares of the iShares Bitcoin Trust worth $99.2 million. This strategic move positions Wisconsin as one of the pioneering state pension funds to embrace the crypto space.

Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, highlighted the significance of this development, noting that state pension funds typically wait longer before engaging in new ETF markets. He emphasized that the early adoption by Wisconsin’s pension fund could signal a trend, with more institutions likely to follow.

Wow, a state pension bought $IBIT in first quarter. Normally you don't get these big fish institutions in the 13Fs for a year or so (when the ETF gets more liquidity) but as we've seen these are no ordinary launches. Good sign, expect more, as institutions tend to move in herds https://t.co/leKVe2CK1S

— Eric Balchunas (@EricBalchunas) May 14, 2024

In a follow-up to this news, on May 31, Frederica Freyberg of PBS Wisconsin interviewed David Krause, an Emeritus Associate Professor of Finance and the inaugural director of the Applied Investment Management (AIM) program at Marquette University. Krause offered his perspective on the investment, noting that the move surprised many in the investment community due to its timing shortly after the approval of multiple spot Bitcoin ETFs by the SEC on January 10.

Krause explained that spot Bitcoin ETFs allows institutions like the Wisconsin Investment Board to invest directly in regulated, highly liquid securities traded on exchanges. Despite the initial surprise, he acknowledged Wisconsin’s history of innovative investment strategies, supported by its fully funded pension status. This financial stability gives the state the flexibility to pursue long-term investments without the immediate liquidity concerns faced by underfunded pensions.

Addressing concerns about Bitcoin’s volatility, Krause pointed out that many assets within pension fund portfolios are inherently volatile. He emphasized that Bitcoin’s supply and demand dynamics are becoming more balanced, making it a viable alternative investment. Krause also noted that the pension fund’s Bitcoin investment is relatively small, representing just 0.1% of the total fund. This cautious entry allows the board to gauge public and market reactions before making more substantial allocations.

Krause highlighted the diversification benefits of including Bitcoin in the pension fund’s portfolio. Bitcoin’s lack of correlation with traditional assets like stocks and bonds can enhance portfolio diversification, potentially increasing returns while mitigating risks. Additionally, he said, Bitcoin’s limited supply could serve as an effective hedge against inflation.

Looking ahead, Krause expects other state pension funds to closely monitor Wisconsin’s experience with Bitcoin. He believes that well-funded pension systems may follow suit, while those with lower liquidity might refrain from such long-term investments. Krause also remarked that Wisconsin’s investment could legitimize Bitcoin in the eyes of other institutional investors, as evidenced by the immediate 1% increase in Bitcoin’s price following the public disclosure of the SEC filing.

Fiscally sound pension funds see the value of #Bitcoin.pic.twitter.com/kPkUUfocN6

— Michael Saylor⚡️ (@saylor) June 3, 2024

Featured Image via Pixabay

Billionaire venture capitalist Chamath Palihapitiya recently discussed the potential for countries to adopt Bitcoin (BTC) alongside their local currencies.

Chamath Palihapitiya is a Canadian-American venture capitalist, engineer, and the founder and CEO of Social Capital, a venture capital firm that invests in companies across various sectors including technology, healthcare, and education. Born in Sri Lanka in 1976, Palihapitiya moved to Canada with his family as a refugee. He graduated with a degree in electrical engineering from the University of Waterloo.

Palihapitiya’s career began at AOL, where he eventually became the youngest vice president in the company’s history. He later joined Facebook in 2007, where he played a significant role in expanding the social media giant’s user base and business operations, serving as the vice president of user growth. His tenure at Facebook significantly boosted his profile in Silicon Valley.

After leaving Facebook in 2011, Palihapitiya founded Social Capital with the goal of funding and mentoring innovative companies. Under his leadership, Social Capital has invested in a wide array of successful startups, including Slack, Yammer, and Box. Palihapitiya is known for his outspoken views on technology, investing, and social issues, often sharing his thoughts through various media platforms and speaking engagements.

In addition to his venture capital activities, Palihapitiya has made headlines through his involvement with SPACs (Special Purpose Acquisition Companies), using them to take companies like Virgin Galactic public. He is also known for his philanthropy, particularly in areas related to education and scientific research.

In the episode of the All-In Podcast that was released on May 31, Palihapitiya shared insights from his conversation with Wences Casares, a Silicon Valley entrepreneur who introduced him to Bitcoin back in 2010, when the cryptocurrency was trading at around $80.

Palihapitiya recounted a compelling concept presented by Casares, suggesting a path for the mass adoption of Bitcoin. According to Casares, while some countries may never fully endorse Bitcoin, there is a growing number that might adopt a dual-currency system. These countries would use their local currency for everyday transactions and Bitcoin for purchasing permanent assets with lasting value. Palihapitiya highlighted this dual-currency approach as a powerful idea, especially for countries grappling with economic instability.

In their discussion, Casares urged Palihapitiya to examine Bitcoin’s performance following its halving events, which cut miners’ rewards in half. Historical data suggests that Bitcoin’s price tends to surge significantly after each halving. Palihapitiya shared a chart predicting that Bitcoin could soar to nearly $500,000 by October 2025 if it follows the same pattern observed in previous market cycles.

Source: YouTube

Palihapitiya elaborated on the potential for Bitcoin to replace gold as a store of value. He suggested that if Bitcoin reaches the predicted levels of appreciation, it could surpass gold and become a preferred asset for transactions involving hard assets. This scenario becomes even more plausible when considering concerns about the debasement of the U.S. dollar. Palihapitiya believes that such economic conditions could create significant opportunities for Bitcoin.

Featured Image via Pixabay

Tel Aviv, Israel, June 2nd, 2024, Chainwire

Leading Fantom AMM SpookySwap has announced the integration of Orbs’ flagship L3 protocol, Liquidity Hub. The addition of Orbs’ Liquidity Hub to SpookySwap will allow Fantom users to optimize their onchain trading while incentivizing liquidity providers.

The rollout of Liquidity Hub enables SpookySwap users to access deeper liquidity procured from a broad range of onchain protocols on Fantom. Powered by Orbs’ advanced L3 technology, the solution provides significant improvements in pricing, resulting in an enhanced user experience.

The expansion of Orbs Liquidity Hub to Fantom marks the technology’s fifth deployment on an EVM chain and is a milestone in providing SpookySwap users with greater control when executing token swaps. In addition to supporting more efficient pricing, Liquidity Hub protects against Maximal Extractable Value (MEV), enables gasless trades, and delivers enhanced capital efficiency within a streamlined user interface.

As a fully decentralized and interoperable protocol, Orbs Liquidity Hub allows DEXs to draw liquidity from a combination of on- and off-chain sources. This is achieved without incurring custodial risk or compromising on the permissionless design that is inherent to the value proposition of DeFi. SpookySwap users can now access these new features and benefits without incurring any additional costs.

Liquidity Hub operates as an L3 that forms an optimization layer above the AMM. It taps into external liquidity to deliver better price quotes, allowing trades to be executed with less slippage. As a result, traders can capture more value from every swap they make.

Liquidity Hub harnesses third-party solvers who compete to fill swaps with liquidity procured from AMM pools or their own private inventory. It also enables decentralized orders to be accessed via API, allowing institutional and professional traders such as market makers to submit bids and compete to fill swaps. If the layer cannot execute the trade at a better price than the AMM, the transaction will return to the AMM contract and execute as normal.

From a user perspective, Liquidity Hub maintains SpookySwap’s familiar user interface, ensuring a seamless and intuitive trading experience. Its introduction to Fantom follows similar integrations that include Quickswap on Polygon PoS and zkEVM, Thena on BNB Chain, and IntentX on Base, aggregating liquidity across multiple chains. 

About SpookySwap

SpookySwap is an automated market-making (AMM) decentralized exchange (DEX) for Ethereum Virtual Machine (EVM) compatible networks. Different from other DEXs, Spookyswap invested in building a strong foundation with its BOO token as a governance token, diverse farms, a built in bridge, built in limit orders, and user-centered service.

Learn more: https://spooky.fi/

About Orbs 

Orbs is a layer-3 public blockchain infrastructure project powered by PoS, pioneering on-chain innovation since 2017. Orbs is a separate execution layer on top of L1/L2 chains and under the application layer as part of a tiered blockchain stack, enhancing the capabilities of smart contracts and powering protocols such as dLIMIT, dTWAP, and Liquidity Hub. The project’s core team comprises more than thirty dedicated contributors from Tel Aviv, London, New York, Tokyo, and Seoul.

Learn more: https://www.orbs.com/

Contact

Ran Hammerhello@orbs.com

The recent approval of form 19b-4 filings for several Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has sent shockwaves through the cryptocurrency market, signaling a significant shift in sentiment, according to Jan van Eck, CEO of investment management firm VanEck.

VanEck is an investment management firm known for offering a diverse range of financial products and services. Founded in 1955, VanEck has built a reputation for providing innovative investment solutions, including mutual funds, exchange-traded funds (ETFs), and other investment strategies aimed at helping investors achieve their financial goals. The firm focuses on various asset classes, such as equities, fixed income, and alternative investments, and is particularly noted for its expertise in sectors like natural resources and emerging markets. VanEck’s approach combines thorough market research with a commitment to meeting the evolving needs of investors, making it a respected name in the financial industry.

As CNBC reported on June 1, in a recent interview with CNBC’s “ETF Edge,” van Eck described the SEC’s decision as “one of the most amazing things” he has witnessed in his career in terms of securities regulation. VanEck, which was the first company to apply for permission to list in the U.S. a spot Ethereum ETF, can now begin the process of bringing the product to market, although the exact timeline remains unclear.

Van Eck believes that the approval of spot Ethereum ETFs in the U.S. goes beyond just Ethereum, suggesting that it represents a broader narrative in the crypto market. He argues that there was a genuine risk of the SEC losing jurisdiction over digital assets, and the green light for spot Ethereum ETFs was a proactive move by the regulatory body to maintain its oversight.

The VanEck CEO believes there is clearer regulation on the horizon and an increased investor interest in cryptocurrencies. VanEck has publicly stated on its website that “the evidence clearly shows that ETH is a decentralized commodity, not a security,” further bolstering the case for Ethereum ETFs.

In addition to the SEC’s approval, van Eck pointed to the passing of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the U.S. House of Representatives on May 8 as another significant step towards regulatory clarity for cryptocurrencies. Although he expresses doubts about the bill making it to the U.S. Senate before the upcoming election, he thinks the passage of FIT21 in the House demonstrates a growing recognition of the need for clear guidelines in the crypto space.

The market reaction to the SEC’s decision was immediate, with Ether, the native cryptocurrency of the Ethereum blockchain, experiencing a spike in value on May 23. However, the price has remained relatively flat since then, suggesting that the initial excitement may have settled as investors await further developments.

Source: TradingView

Michael Nadeau, a renowned crypto analyst known for his work at The DeFi Report, recently provided a comprehensive analysis of the cryptocurrency market, with a focus on Bitcoin (BTC) and Ethereum (ETH). Nadeau, celebrated for his deep insights into decentralized finance (DeFi) and blockchain technology, particularly emphasized Ethereum’s performance and valuation.

According to ETF experts at Bloomberg, the flow of funds into ETH ETFs is anticipated to be about 10-20% of that into BTC ETFs. This expectation stems from several factors: lower institutional interest in ETH compared to BTC, the greater complexity of understanding ETH, lower trading volumes in ETH futures, and ETH’s market cap being approximately one-third that of BTC. Given that BTC ETFs have seen around $13 billion in net flows since their inception, Nadeau estimates that ETH ETFs could attract $1.3-$2.6 billion in net inflows.

Nadeau draws a parallel between BTC’s price surge following the launch of U.S.-listed spot Bitcoin ETFs and potential movements in ETH. BTC experienced a 75% gain from $40,000 to $70,000 after its spot ETFs began trading. Nadeau expects a similar performance for ETH, potentially pushing it past its previous all-time high of $4,800.

Several factors could contribute to ETH’s outperformance. Unlike BTC miners, ETH validators do not face the same structural sell pressure, as a significant portion of ETH supply (38%) is “soft locked” on-chain, earning yield in staking contracts, DeFi applications, or as collateral. Additionally, ETH balances on exchanges are at their lowest since 2016, indicating reduced sell pressure. Nadeau envisions ETH not just as a cryptocurrency but as a pivotal technology for the growth of Web3, offering a larger addressable market than BTC.

Nadeau extends his analysis to the broader crypto market, maintaining a highly bullish outlook. He identifies several favorable cycles, including innovation in blockchain technology, macroeconomic conditions, political developments, the Bitcoin halving cycle, and ETF approvals. Regulatory concerns have diminished, particularly with reduced fears of aggressive actions from regulators like Gary Gensler.

Using a hypothetical $10 trillion market cap for crypto, Nadeau predicts BTC could reach $202,000 per coin and ETH could hit $14,984 per coin, assuming no change in supply. Even conservative estimates suggest significant price increases for both BTC and ETH, driven by continued advancements and increased market accessibility.

Featured Image via Pixabay

In a recent report, renowned trader and analyst Peter Brandt shed light on the fascinating symmetry of Bitcoin’s bull market cycles, particularly in relation to Bitcoin’s “Halving” events.

Peter Brandt is a highly experienced trader with a deep background in the commodities trading sector. Initially gaining recognition for his work with commodities, Brandt has expanded his reputation over the years to include forex and cryptocurrency trading. His expertise is particularly evident in his ability to analyze market patterns and trends, insights he frequently shares through social media and various trading publications.

Brandt is especially renowned for his use of classical charting principles in trading, a methodology he has honed over decades. He has authored a book detailing these principles, offering readers a glimpse into his strategies and thought processes. His forecasts and analyses, especially regarding major market movements in cryptocurrencies like Bitcoin, have garnered him a significant following among traders who value his experienced perspective on market dynamics. In addition to trading, Brandt contributes to the trading community by providing mentorship and educational resources, helping others navigate the complexities of financial markets.

The Bitcoin Halving is a significant milestone in the cryptocurrency’s journey, occurring approximately every four years. During these events, the mining rewards for Bitcoin are cut in half, effectively reducing the rate at which new Bitcoins enter circulation. Interestingly, Brandt has observed that these Halving dates have coincided with the halfway points of Bitcoin’s bull market cycles.

Brandt’s analysis reveals a striking pattern: the number of weeks from the start of each bull market cycle (marked by a low following a 75% or greater decline) to the Halving date is nearly equal to the number of weeks from the Halving date to the subsequent bull market peak. He says this symmetry has been consistent throughout Bitcoin’s history, suggesting that the cryptocurrency’s price action is influenced by these key events.

If this pattern continues, Brandt predicts that the next bull market cycle high could occur in late August or early September 2025. This projection is based on the observed symmetry and the timing of the previous Halving events.

But how high could Bitcoin potentially reach during this upcoming bull run? While no method of analysis is infallible, Brandt notes that the peaks of past bull markets align closely with an inverted parabolic curve. If this trend persists, he suggests that the high of the current bull market cycle could fall within the range of $130,000 to $150,000.

However, Brandt is cautious not to be overly dogmatic about his predictions. As a seasoned trader, he acknowledges that there is always a degree of uncertainty in the markets. While his preferred analysis points towards a bullish outcome, he also assigns a 25% probability to the possibility that Bitcoin’s price has already topped for this cycle.

In an alternative scenario, outlined in a separate analysis, Brandt explores the concept of “Exponential Decay.” This theory suggests that if Bitcoin fails to make a decisive new all-time high and instead falls below the $55,000 mark, the probability of a bearish trend would increase.

Featured Image via Pixabay

At the recent Consensus 2024 conference (held May 29, 31, 2024, in Austin, Texas), Ripple CEO Brad Garlinghouse made headlines by directly criticizing Dogecoin, questioning its value and use case.

Dogecoin (DOGE) began as a parody cryptocurrency created by software engineers Billy Markus and Jackson Palmer in December 2013. Initially intended as a joke, it features the Shiba Inu dog from the “Doge” meme as its mascot. Despite its humorous origins, Dogecoin quickly garnered a substantial following due to its active and engaging community on platforms like Reddit.

The appeal of Dogecoin lies in its friendly and fun nature. It was designed to be more accessible and lighthearted compared to Bitcoin. Dogecoin transactions are faster and cheaper, typically costing just a fraction of a penny, which makes it practical for everyday use and microtransactions. The unlimited supply of DOGE contrasts sharply with Bitcoin’s capped supply, aiming to promote spending over hoarding.

A significant factor in Dogecoin’s sustained popularity is its high-profile endorsements and social media influence. Celebrities like Elon Musk, Snoop Dogg, and Gene Simmons have frequently tweeted about Dogecoin, driving spikes in its price and keeping it in the public eye. This celebrity backing, coupled with its meme-driven culture, has kept Dogecoin relevant and highly popular.

In 2021, Dogecoin experienced a meteoric rise, driven by social media buzz and celebrity endorsements. This period saw its price surge from fractions of a cent to over $0.70, making it one of the top cryptocurrencies by market capitalization. Although its price has since stabilized and dropped from its all-time high, Dogecoin remains a favorite for short-term trading due to its high liquidity and volatility.

Despite criticisms regarding its lack of intrinsic value and infinite supply, Dogecoin’s strong community, low transaction costs, and ongoing celebrity endorsements ensure it remains a significant player in the cryptocurrency market. Its potential future integrations, such as with the X platform for payments, hint at continued growth and utility.

Garlinghouse highlighted the irony of the United States, the largest economy in the world, ranking low in terms of regulatory clarity. He stressed that clear regulations could unlock the potential of the U.S. economy, attracting significant institutional investment. This, in turn, could create substantial opportunities for growth and innovation in the crypto space.

Despite the popularity of speculative assets like Dogecoin, Garlinghouse underscored the importance of focusing on projects that provide real-world utility. He pointed out that while Dogecoin has garnered significant attention, its lack of a clear use case raises questions about its long-term value. Instead, he called for the industry to concentrate on developing blockchain projects that address tangible problems and offer practical solutions.

Garlinghouse noted that there are many blockchain projects currently demonstrating significant utility across various sectors. He believes that the future of the industry should be built on these practical applications rather than speculative investments. According to him, the next decade for cryptocurrency must prioritize solving real-world problems to achieve sustainable growth and widespread adoption.

Garlinghouse said:

“You know, I get a ton of s**t when I say these things, but I’m going to say it anyway. I don’t think Dogecoin has been a good thing for the industry, and I’m not anti-Dogecoin, but it’s like, I don’t know what the use case is. I don’t know, like, are there projects being built to solve real utility? And I see lots of real utility across lots of different chains, and I think that is what is critical, and for me, the 10-year prediction has to be about … solving real problems.“

Ripple CEO Brad Garlinghouse I get a ton of shit when i say these things but I’m going to say it anyway, I don’t think Dogecoin has been a good thing for the industry. It’s about solving real Problems . 🏁 pic.twitter.com/XMeEWaJz8O

— 𝗕𝗮𝗻𝗸XRP (@BankXRP) May 31, 2024

Featured Image via Unsplash

According to Reuters, Seattle-based startup EigenLayer has taken the crypto world by storm, attracting $18.8 billion worth of cryptocurrency to its platform in just six months. The company, founded by former University of Washington assistant professor Sreeram Kannan, has invented a new investment strategy called “re-staking,” which has quickly become a popular choice among traders seeking high yields.

EigenLayer is a groundbreaking protocol developed on the Ethereum blockchain, introducing the concept of “restaking.” This allows users who have already staked their Ethereum (ETH) to leverage their staked assets further, enhancing both security and potential rewards within the Ethereum ecosystem.

Restaking in EigenLayer enables Ethereum stakers to use their already-staked ETH or liquid staking tokens (LSTs) to secure additional decentralized applications (DApps) and services on the network. By opting into EigenLayer’s smart contracts, stakers can restake their assets, which helps increase security for these new applications. This is achieved without unstaking the original ETH, thereby maximizing the utility and efficiency of the staked capital.

EigenLayer provides numerous benefits. It significantly boosts protocol security by allowing protocols to tap into Ethereum’s robust security layer by incentivizing ETH stakers. This increases the security of new applications built on Ethereum. The protocol offers a high degree of flexibility, allowing developers to retain control over their projects while leveraging Ethereum’s security. This flexibility facilitates developer success by lowering the barriers to building new validator pools, thus promoting innovation and development of new projects.

However, EigenLayer also introduces some risks and complexities. Stakers face slashing penalties on the consensus layer and any additional slashing conditions set by the protocols they support, potentially affecting up to 100% of their staked ETH. The promise of increased yield might lead stakers to redirect their assets to EigenLayer, centralizing a significant portion of Ethereum’s staking power. Moreover, competition among protocols to offer higher yields could lead to unsustainable practices and potentially lower overall yields for users.

A practical application of EigenLayer’s capabilities is EigenDA, a data availability layer that enhances scalability by offloading data storage tasks. This approach helps reduce transaction fees on Layer 2 solutions and improves data bandwidth, making it a vital tool for the Ethereum ecosystem.

EigenLayer represents a significant advancement in Ethereum’s staking and security model. By allowing ETH stakers to restake their assets across multiple protocols, it enhances security, rewards, and capital efficiency. However, it also introduces new risks and complexities that need careful consideration. As the protocol evolves, it promises to play a crucial role in shaping the future of decentralized applications on Ethereum.

Reuters’ report says that the growth of re-staking platforms has been fueled by users seeking airdrops and other giveaways, with the expectation of future rewards. However, experts like David Duong, head of institutional research at U.S. crypto exchange Coinbase, warn that re-staking is “very risky,” as users are investing in anticipation of rewards without knowing what they will receive.

The Reuters article also mentions that. despite the risks, re-staking is catching on with institutional investors. Some, like Standard Chartered’s crypto arm, Zodia Custody, have observed significant interest in staking but consider re-staking a step too far due to the difficulty in establishing a clear “paper trail” of asset movements and reward distribution. Others, such as Nomura’s crypto arm, Laser Digital, have partnered with re-staking platforms like Kelp DAO to participate in this emerging trend.

Featured Image via Pixabay

During a conversation with CNBC corrspondenant MacKenzie Sigalos at the recent Consensus 2024 conference (held May 29-31, 2024, in Auston, Texas) Galaxy Digital CEO Mike Novogratz shared his thoughts on the evolving landscape of institutional crypto, political shifts affecting the industry, and the future of digital assets.

Seismic Shifts in Crypto Politics

Novogratz highlighted the recent political upheavals that have significantly influenced the crypto market. He noted a pivotal moment when the White House announced President Biden’s intent to veto the overturn of SAB 121, an arcane accounting rule filed by the SEC. This action led to a political backlash, particularly from the Republican side, with figures like Donald Trump positioning themselves as pro-crypto. Novogratz emphasized that this move has mobilized the crypto community, making it a potent political force. He pointed out that there are now more crypto owners in America than dog owners, many of whom are single-issue voters.

Bipartisan Support and the Future of Regulation

Novogratz says that the political dynamics around crypto are shifting towards a more bipartisan approach. Novogratz mentioned that significant Democratic figures, such as Senators Schumer and Torres, have started to support crypto-friendly legislation, recognizing the substantial voter base. This bipartisan support was exemplified by the passing of FIT 21 in the House, which aims to bring regulatory clarity to the market.

Novogratz believes that the market infrastructure bill and the overturning of restrictive accounting rules are crucial for integrating traditional financial institutions into the crypto space. He anticipates that these changes will enable major custodians like Bank of New York and State Street to start custodying crypto assets, which will pave the way for a broader institutional adoption.

The Impact of Institutional Involvement

The conversation also touched upon the current state and potential future of spot Bitcoin and spot Ether ETFs. Despite the regulatory hurdles, Novogratz is optimistic about the institutional adoption of these products. He explained that institutions are slowly warming up to the idea of crypto, driven largely by client demand. However, he noted that regulatory clarity is essential for the full participation of major financial entities like Goldman Sachs and Morgan Stanley.

Novogratz highlighted that while the current involvement of institutions in crypto is still in its early stages, the potential for growth is immense. He predicts a significant influx of institutional investment once regulatory uncertainties are resolved.

The Role of Crypto in the Broader Economic Context

Novogratz provided a macroeconomic perspective, linking the crypto market’s resilience to broader economic trends. He pointed out that despite the Federal Reserve’s hawkish stance and the absence of expected rate cuts, the crypto market has remained strong. This resilience, according to Novogratz, is due to the U.S. government’s continued fiscal irresponsibility and the growing appeal of Bitcoin as a hedge against inflation and currency devaluation.

Galaxy Digital’s Strategic Direction

Discussing Galaxy Digital, Novogratz outlined the company’s future plans, emphasizing a shift towards on-chain initiatives. He acknowledged the challenges posed by the current regulatory environment but expressed confidence in the eventual resolution of these issues. He also touched on Galaxy’s involvement in the liquidation of the FTX estate, praising the efficiency of the U.S. bankruptcy system in resolving the crisis and returning value to creditors.

Tokenization and the Future of Finance

One of the most forward-looking aspects of Novogratz’s talk was his discussion on tokenization. He believes that the tokenization of assets is a game-changer that will slowly build momentum before rapidly transforming the financial landscape. Novogratz noted that major financial institutions are already preparing for this shift by investing in the necessary infrastructure.

On 29 May 2024, Daniela Cambone hosted Jack Mallers, CEO of Bitcoin startup Zap Solutions, Inc., on her show. Mallers, known for his outspoken advocacy for Bitcoin and its underlying technology, shared his perspective on dedollarization and why he transitioned to using Bitcoin exclusively in his daily transactions. Here’s a detailed look at what Mallers discussed during the interview.

The Origins of Dedollarization

Mallers began by addressing the concept of dedollarization, which he traces back to the financial crisis of 2008-2009. According to Mallers, this period marked a significant turning point as the world began to lose faith in the U.S. dollar. He pointed out that the global financial system revealed its vulnerabilities during this crisis, leading to a realization that the U.S. dollar, as the world’s reserve currency, was not as infallible as previously thought:

“Dedollarization started in ’08-’09 because the world realized they don’t care,” Mallers explained, highlighting a perceived neglect by financial authorities to maintain the dollar’s value and stability.

Transition to Bitcoin

In a notable move, Mallers stopped using the U.S. dollar in his daily transactions and switched to Bitcoin in January 2024. He described his decision as a strategic choice driven by the ongoing debasement of fiat currencies. Mallers emphasized that he wanted to avoid holding a currency that continually loses value due to inflation and other economic policies.

“They’re lending me a currency that’s constantly being debased. So I get to spend that currency without actually having to own it,” Mallers said, underscoring his strategy of utilizing Bitcoin for its perceived stability and appreciation potential.

By stating that he gets to spend the dollar without owning it, Mallers refers to using the dollar only as a medium of exchange when necessary, without holding it as a store of value. He may convert his Bitcoin to dollars only at the point of transaction to avoid holding dollars and being affected by its depreciation.

The Philosophy Behind Money

Mallers delved into his philosophical views on money, describing it as a representation of human time and energy. He argued that money should ideally preserve its value over time, allowing individuals to save or exchange their hard-earned resources without fear of devaluation.

“Money is a representation of our time and energy, which can be saved or exchanged,” Mallers stated, advocating for a financial system where the medium of exchange holds its value.

Economic Concerns and Bitcoin’s Role

Mallers expressed deep concerns about the current global economic landscape, particularly the high debt-to-GDP ratios seen in many countries. He argued that governments have borrowed extensively against future growth, leading to unsustainable economic practices.

“The global debt to GDP ratio indicates governments have borrowed extensively from our future without growth to repay it, leaving a loss that must be realized somewhere,” Mallers asserted, highlighting the potential economic crises looming on the horizon.

In this context, Mallers sees Bitcoin as a crucial tool for preserving wealth and financial stability. He believes that Bitcoin’s decentralized nature and finite supply make it an ideal hedge against inflation and economic instability.

The Future of Finance

Mallers concluded by sharing his vision for the future of finance, where Bitcoin plays a central role. He emphasized that adopting Bitcoin could lead to a more stable and fair financial system, free from the manipulations and debasement seen with traditional fiat currencies.

“Tune in to understand Mallers’ perspective on the financial future and why Bitcoin is central to his strategy,” Cambone invited viewers, encapsulating the essence of Mallers’ argument for Bitcoin as a foundational asset for the future.

Mallers’ Price Target for Bitcoin

In the interview, Jack Mallers passionately outlined his vision for Bitcoin as the ultimate safe haven asset. He argued that continuous money printing by governments will inevitably debase fiat currencies, prompting investors to seek refuge in Bitcoin. According to Mallers, this shift could drive Bitcoin’s price to unprecedented heights.

“Because the money printing will debase the currency, investors will start piling into Bitcoin as a safe store of value, sending its price soaring to as high as $1 million by the end of November 2025.”

Mallers expressed skepticism about the willingness of politicians, whether Trump, Biden, or RFK, to address the underlying economic issues. He suggested that politicians are more likely to offer short-term solutions that involve significant spending rather than implementing painful but necessary economic reforms.

“I don’t think Trump or Biden or RFK is going to get up and say, ‘I’m going to take away your healthcare. I’m going to inflate everything around you. I’m going to crash everything you know. All your bank deposits are gone. We’re going to go through the Great Depression because it’s in the best interest of America.’ That’s not what politicians do. I think politicians are going to say, ‘Here’s a bunch of free stuff and this is why you should elect me.’ And they’re going to have to fill the hole of this deficit…”

Mallers provided a bold price prediction for Bitcoin, highlighting a range that reflects both the potential for substantial growth and the inherent uncertainties in the financial system.

“I’m quoted saying $250,000 to $1 million [for a Bitcoin cycle top prediction]. That’s my range, and the range is wide. But you’re asking me to price something in a piece of paper that politicians, who don’t even know how the system works, are actively debasing. So, I think it trivially gets to $250,000. I think $1 million is possible within the next 18 months for that reason.”

Featured Image via Pixabay

A popular cryptocurrency analyst has recently revealed he believes the price of the native token of the XRP Ledger is set to soon vastly outperform the flagship cryptocurrency Bitcoin ($BTC) over a key technical indicator.

In a post shared on the microblogging platform X (formerly known as Twitter), popular cryptocurrency analyst Cryptoinsightuk revealed that on a monthly timeframe the price o XRP in BTC is in “reversal territory.”

Per his words the XRP/BTC monthly Relative Strength Index (RSI) is currently at its lowest level ever, and in the last two occasions it dropped so significantly XRP rose 5,251% and 498% against the flagship cryptocurrency.

The analyst noted, however, that he can see “many potential positive catalysts coming for XRP,” and that once something changes its narrative then “sentiment can change extremely quickly.”

$XRP Vs $BTC Monthly.On the monthly timeframe, $XRP price vs $BTC is in reversal territory. The last 3 entries into this are have seen significant moves to the upside.Additionally, the monthly RSI is at it's lowest EVER reading vs $BTC. The last two occasions we saw this… pic.twitter.com/ZdVRPEngNi

— Cryptoinsightuk (@Cryptoinsightuk) May 31, 2024

It’s worth noting that the price of XRP has been significantly underperforming the flagship cryptocurrency, having dropped around 15% year-to-date and risen just 0.8% over the last 12 months.

Meanwhile, the price of Bitcoin rose 61.5% so far this year and over 150% in the last 12 months, partly with the help of the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, which made it easier for institutional investors to gain exposure to the cryptocurrency.

Notably BlackRock’s iShares Bitcoin Trust (IBIT) has seen its BTC holdings surpass those of the Grayscale Bitcoin Trust (GBTC), making it the world’s largest exchange-traded fund offering investors exposure to the price of Bitcoin.

Analysts attribute this shift to Grayscale’s higher fees, which have driven investors towards BlackRock’s lower-cost alternative after GBTC was converted into a spot Bitcoin ETF at the same time several of these ETFs started trading in the United States.

Notably, BlackRock’s income and bond-focused funds have recently added exposure to its own spot Bitcoin ETF, with regulatory filings showing that BlackRock’s Strategic Income Opportunities Fund and Strategic Global Bond Fund purchased shares of iShares Bitcoin Trust.

Featured image via Pixabay.

 The flagship cryptocurrency Bitcoin ($BTC ) has been seeing an influx of capital from whale wallets, which have been adding around $1 billion worth of BTC per day, according to data from the cryptocurrency’s blockchain.

That’s according to the CEO of cryptocurrency analytics firm CryptoQuant, Ki Young Ju, who revealed on the microblogging platform X (formerly known as Twitter) that the robust accumulation suggests that these funds are “likely custody.”

In his post, Young-Ju highlighted a parallel between Bitcoin’s current behavior and the market activity of mid-2020, before a bull run in 2021. During that period, Bitcoin’s price remained relatively stable, yet on-chain activity, particularly over-the-counter (OTC) transactions involving institutional players, was exceptionally high.

Despite Bitcoin’s price being relatively stagnant over the past six months, the realized cap for new whales, a metric reflecting the total value at which large investors acquire Bitcoin, has seen significant growth.

Same vibe on #Bitcoin as mid-2020.Back then, $BTC hovered around $10k for 6 months with high on-chain activity, later revealed as OTC deals.Now, despite low price volatility, on-chain activity remains high, with $1B added daily to new whale wallets, likely custody. https://t.co/1TcC7BwNUb pic.twitter.com/o3N1AHxSJm

— Ki Young Ju (@ki_young_ju) May 31, 2024

The current trend, mirroring Bitcoin’s on-chain activity in 2020, could lead to a repeat of the subsequent bull run that culminated in record highs in 2021. Analysts believe Bitcoin is nearing its final resistance point at $69,000 before potentially breaking new ground.

As reported, a cryptocurrency analyst has recently suggested Bitcoin’s price could surge to the $156,000 mark by May 2025 based on historical BTC price action after its halving events.

A Bitcoin halving sees the coinbase reward miners receive per block found get cut in half, effectively reducing in half the amount of new supply entering the market. The analysis revealed a compelling trend. Following the first halving in 2012, Bitcoin’s price skyrocketed a phenomenal 8,300%.

The second halving in 2016 witnessed a more moderate but still impressive increase of 288%. The more recent halving in 2020 sparked a 540% surge within a year, while the latest halving occurred in April of this year.

Taking all of this into account, the analyst suggested that the price of Bitcoin could skyrocket 127% from its level at the halving to between $115,00 to $156,000.

Featured image via Pixabay.

A cryptocurrency trader has managed to take advantage of the launch of a red-hot celebrity-themed token to capture a large percentage of its total supply, which they used to turn less than 1 ETH into over $350,000.

According to available blockchain data, the trader took advantage of the launch of a Caitlyn Jenner-themed token trading under the ticker symbol $JENNER, and promoted by Caitlyn Jenner herself on social media.

$Jenner is live NOW on $ETH. Official contract address to trade now: 0x482702745260Ffd69FC19943f70cFFE2caCd70e9 pic.twitter.com/9Bz9DCFvqz

— Caitlyn Jenner (@Caitlyn_Jenner) May 30, 2024

The cryptocurrency trader managed to use roughly $3,200 – 0.85 ETH – to capture around 44% of the cryptocurrency’s supply, accounting for nearly 430 million tokens that they then kept on offloading after the price of the cryptocurrency rose.

The trader sold 393 million JENNER tokens for approximately $330,000 while keping around $104,000 worth of JENNER on their wallet. This dramatic trade exemplifies the rags-to-riches stories that continue to emerge in the current crypto boom, often attributed to project insiders.

the $jenner token on eth was launched with 1 eththe deployer wallet still holds the LP tokens – liquidity has not been locked or burned can be rugged at any moment one wallet (..E75AC) sniped 44% of the supply at launch for 0.84 eth realizing >$350k profit and still holds… pic.twitter.com/LIiWZPF2So

— phomo (@phomo_eth) May 30, 2024

The trader’s fortune comes amid a wider memecoin trading trend that has seen a memecoin created with the help of OpenAI’s ChatGPT chatbot skyrocket in value to a market capitalization of over $600 billion.

The brainchild of digital artist Rhett Mankind, Turbo stands out for its unusual origin story as its creator harnessed the power of GPT-4, an advanced AI language model, to design the memecoin’s concept, tokenomics, and even its smart contract.

This innovative approach, coupled with a community-driven development process documented on X (formerly known asTwitter), has fueled Turbo’s rapid rise, as Finbold first reported. Polls on the platform allowed users to participate in choosing the coin’s name and mascot, fostering a sense of ownership and engagement.

Other memecoins that have seen stunning success over the last few months include PEPE, Grok, and CorgiAI. While the memecoin craze has played a role in the success of these cryptocurrencies, their value is ultimately derived from the community they managed to build around them.

It’s worth pointing out cryptocurrency market is notoriously volatile, and the hype surrounding memecoins can be fleeting. Investors should be aware of the potential for significant losses if demand any cryptocurrency wanes. The long-term viability of the project will depend on its ability to sustain community engagement and navigate the ever-shifting dynamics of the crypto market.

Featured image via Unsplash.

Shortly after former U.S. President Donald J. Trump was convicted on 34 felony counts for falsifying business records involving reimbursements to his former lawyer Michael Cohen for hush money payments, several Trump-inspired meme-inspired cryptocurrencies were launched, with one trader making over $160,000 in just 5 hours from them.

According to the New York Times, Trump was convicted for falsifying records to cover up a sex scandal with former adult industry star Stormy Daniels with the judge overseeing the case releasing the former U.S. President on his own recognizance and setting his sentencing for July 11.

Trump reacted the verdict saying it was a “disgrace,” and said that the “real verdict is going to be November 5, by the people,” referring to Election Day, while his lawyers argued the case politically motivated and said he would appeal the conviction.

The memecoin community respond to the news with the launch of several memecoins inspired on the verdict, and one trader made around 972 Solana ($SOL) worth roughly $167,000 in just five hours through these tokens.

The trader used Trump-themed tokens called FREE TRUMP ($FREE) and NEVER SURRENDER ($TRUMP) to get to his results, spending 85 SOL to buy $FREE, before selling those tokens for 814 SOL and making a $125,000 gain.

The trader also spent $12,300 worth of SOL on $TRUMP tokens, which were then sold for $54,000 to realize a $42,000 gain.

As the news of #DonaldTrump being found guilty, many Trump-themed #MEMEcoins were created.A smart trader has made ~ 972 $SOL($167K) in 5 hours by trading Trump-themed tokens FREE TRUMP( $FREE) and NEVER SURRENDER( $TRUMP).He spent 85 $SOL($14.6K) to buy $FREE and sold for… pic.twitter.com/G1uEO49Zw6

— Lookonchain (@lookonchain) May 31, 2024

Solana’s ecosystem has been seeing a memecoin mania amid the cryptocurrency market’s recovery, with several fortunes being made – and lost – over the last few months within it.

As CryptoGlobe reported, in a recent case, a crypto trader sold their $GME memecoin token holdings after a meme stock frenzy surrounding GameStop resurfaced earlier this month, for a loss of over $122,000 after capitulating.

Notably, cryptocurrency investment products offering exposure to Solana’s native token SOL have been seeing significant inflows, adding in $8 million over the past week, bringing total year-to-date flows to $29 million as investors keep betting on the smart contract platform.

Featured image via Unsplash.

Some astute traders (or gamblers) have managed to capitalize on the meteoric rise of Solana (SOL)-based memecoins, realizing astronomical gains in the process. According to data from blockchain tracking firm Lookonchain, one trader purchased a substantial amount of Dogwifhat (WIF) in December 2023 and has since seen a staggering 118,967% return on their investment.

The trader’s strategy involved making a series of well-timed sales as WIF’s value skyrocketed. Initially investing just $5,879 to acquire 6.1 million WIF tokens, the trader gradually sold off 4.7 million tokens for a total of $1.57 million. With 1.4 million WIF still in their possession, currently valued at $5.47 million, the trader’s profit on WIF alone stands at an impressive $7 million – a jaw-dropping 1,197x return.

WIF’s explosive growth has been nothing short of remarkable, with the memecoin surging from $0.069 on January 10th to $3.41 at the time of writing, representing a gain of over 49x.

Source: TradingView

Another trader has also found success with MAGA (TRUMP), a memecoin inspired by former U.S. President Donald Trump, who is currently campaigning for the presidency once more. Lookonchain reports that this trader withdrew 1.16 million USDT from Binance and invested 1.15 million USDT to purchase 118,671 TRUMP tokens at an average price of $9.69 over the past two weeks. With TRUMP currently trading at $13.91, the trader is sitting on an unrealized profit of $540,000.

Perhaps the most impressive feat, however, belongs to a savvy trader who has amassed a combined profit of $41.38 million by trading WIF alongside two other memecoins: Jeo Boden (BODEN), inspired by current U.S. President Joe Biden, and Bonk (BONK). Lookonchain reveals that this “smart money” trader sold all 539,558 WIF tokens for 11,708 SOL ($2 million) at a price of $3.70 on May 28th, realizing profits of $24.1 million on WIF, $11 million on BODEN, and $6.28 million on BONK.

As of the time of writing, BONK is trading at $0.000035385, up 1.9% in the last 24 hours, while BODEN is trading at $0.2794, down 5.9% on the day.

These success stories highlight the potential for significant gains in the volatile world of cryptocurrency trading, particularly when it comes to memecoins built on the Solana blockchain. However, it is crucial to remember that such astronomical returns are not the norm and that investing in memecoins carries a high level of risk. As with any investment, it is essential to conduct thorough research, exercise caution, and never invest more than one can afford to lose.

Featured Image via Unsplash

On 30 May 2024, renowned trader Peter Brandt shared an analysis of Bitcoin’s performance against gold on the social media platform X.

Peter Brandt is a highly respected and veteran trader known for his expertise in classical charting principles. With over four decades of experience in trading commodity futures, forex, and cryptocurrencies, Brandt has established himself as a significant figure in the trading community.

Brandt is the founder and CEO of Factor LLC, a global trading firm he established in 1980. His approach to trading is heavily based on classical chart patterns and rigorous risk management, which has earned him a stellar reputation. He shares his insights and strategies through the Factor Report, a subscription service that provides educational content, real-time alerts, and webinars to its members.

Throughout his career, Brandt has been recognized for his straightforward and disciplined trading style. His analysis often focuses on technical patterns and market behaviors, and he is known for his clear and actionable trading advice. Notably, he has been a prominent voice in the cryptocurrency community, making headlines with his predictions and analyses of Bitcoin and other digital assets.

Brandt’s influence extends beyond his trading successes; he is also a celebrated author and educator. His book, “Diary of a Professional Commodity Trader,” offers a detailed look into his trading practices and has been praised for its practical insights and honest counsel. Brandt is also a regular contributor to financial media and often shares his expertise in interviews and public forums.

His work is highly regarded by other industry professionals, with notable figures such as Jack Schwager, Howard Lindzon, and Raoul Pal endorsing his methods and insights. Brandt’s commitment to educating others and his transparent sharing of knowledge make him a valuable mentor to many traders around the world.

On Thursday, Brandt, posted a chart illustrating the BTC/GLD ratio and commented on Bitcoin’s historical gains and future potential.

The chart tracks the number of ounces of gold (GC) required to purchase one Bitcoin (BTC) from 2012 to 2024. The visual representation shows Bitcoin’s significant appreciation against gold over the years. Initially, it took just a few ounces of gold to buy one Bitcoin. As Bitcoin’s value soared, the ratio increased substantially, reflecting Bitcoin’s rise as a prominent asset.

Brandt’s chart highlights several key patterns and periods of consolidation followed by significant gains. These patterns suggest that Bitcoin has experienced phases of stabilization before making substantial upward movements. The chart indicates:

Early Growth (2012-2014): The initial phase where Bitcoin started gaining against gold, breaking several resistance levels.

Consolidation Phases: Periods where the BTC/GLD ratio moved sideways, reflecting market stabilization before the next surge.

Major Breakouts: Points where Bitcoin significantly increased its value against gold, marked by sharp rises in the ratio.

In his post, Brandt mentioned that since Bitcoin’s inception, it has consistently gained value against gold. He emphasized that the BTC/GLD ratio has been on a steady upward trajectory. According to Brandt, the ratio is expected to “chop for another 12 to 18 months,” implying a period of sideways movement or consolidation. This phase, characterized by fluctuations within a range, is expected before the ratio advances to a level where 100 ounces of gold would be required to buy one Bitcoin.

Brandt’s projection of the BTC/GLD ratio reaching 100 ounces of gold per Bitcoin suggests a bullish long-term outlook for Bitcoin. This potential growth could be driven by factors such as increased institutional adoption and Bitcoin’s growing recognition as a store of value akin to digital gold.

Since its inception Bitcoin $BTC has gained against Gold. This chart shows the # oz. of $GC_F to buy one BTC. The ratio should chop for another 12 to 18 months — then advance to 100 oz of GC to buy a BTCWhat say you @PeterSchiff pic.twitter.com/3G2adZV0KM

— Peter Brandt (@PeterLBrandt) May 30, 2024

Featured Image via Pixabay

On Thursday, at the Consensus 2024 conference, which is being held in Austin, Texas, Ripple CEO Brad Garlinghouse shared his thoughts on the future of spot crypto ETFs in the United States.

With the recent approval of spot Bitcoin ETFs and advancements in the U.S. SEC’s approval process for spot Ethereum ETFs, Garlinghouse confidently predicted a surge in spot ETF approvals for various popular altcoins.

He believes that spot ETFs for XRP, Solana (SOL), and Cardano (ADA) are on the horizon, stating, “It’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana ETF, there’s gonna be a Cardano ETF, and that’s great.”

This prediction follows the unexpected progress of spot Ethereum ETFs, which saw 19b-4 filings approved recently by the SEC. Although final approval is still pending, these developments mark a significant milestone in the crypto industry’s journey toward mainstream acceptance. Cathie Wood, CEO of ARK Invest, highlighted during the conference that the expected approval of spot Ethereum ETFs was influenced by crypto’s growing importance as an election issue.

Despite the optimism surrounding these developments, Garlinghouse acknowledged the substantial regulatory hurdles that remain. He characterized these as “speed bumps,” indicating a belief that while challenging, they are not insurmountable.

Garlinghouse also expressed frustration with the current regulatory environment in Washington, criticizing what he sees as a lack of clarity from the SEC. He referenced SEC Chair Gary Gensler’s reluctance to clarify whether Ethereum is considered a security, despite Gensler’s assertions that existing rules are clear and sufficient.

In Garlinghouse’s view, the U.S., despite being the world’s largest economy, ranks poorly in terms of regulatory clarity. He criticized Gensler’s reliance on the decades-old Howey Test, originally designed for traditional securities, to regulate modern cryptocurrencies. Garlinghouse argued that this approach is outdated and politically problematic, even affecting the presidential race.

Reflecting on Ripple’s global strategy, Garlinghouse noted that last year, 75% of Ripple’s hiring occurred outside the U.S., with that figure currently at 60%. Ripple’s major offices in London, Geneva, and Singapore highlight the company’s focus on regions with clearer regulatory frameworks and significant customer bases.

Garlinghouse emphasized the critical importance of achieving regulatory clarity in the United States, indicating that it is essential for the industry’s growth and Ripple’s strategic planning.

May 30th, Panama – Gate.io, a leading crypto exchange and Web3 innovator, has published its May 2024 Proof of Reserves (PoR) report, transparently demonstrating a reserve-deposit ratio of 115.34% and a total reserve value of $6.49 billion (USD) at the time of completion.

This latest report covers over 209 digital assets, an increase of 20 since the previous report, and maintains its position as the most extensive of any exchange. Other key data from the report include:

Gate.io Total Reserves: $6,492,214,095

Excess Reserves: $863,807,685

Reserve-Deposit Ratio: 115.34%

BTC: 116.55%

ETH: 113.43%

USDT: 105.47%

USDC:  102.65%

Gate.io was one of the first exchanges to commit to PoR in 2020 and has consistently enhanced its reporting methods since. Its PoR method, audited and praised by the leading blockchain security firm Hacken, has also been released as open-source to encourage industry participation. More recent upgrades, such as increased reporting frequency, broader coverage, and the introduction of zero-knowledge tech for better privacy and security, demonstrate the exchange’s commitment to meticulous reporting and transparency.

“We are pleased to share the publication of our May 2024 Proof of Reserves report, underscoring our unwavering dedication to transparency and accountability. Our commitment to upholding a robust reserve-deposit ratio and expanding our reporting standards reflects our ongoing efforts to ensure the security and confidence of our users and the industry,” said Gate.io Founder and CEO Dr. Lin Han.

Gate.io’s May 2024 reserves report is available on its PoR portal. Users can independently verify that their accounts and deposits were reflected and access other related information.

The U.S. Department of Treasury has released a 29-page report titled “Illicit Finance Risk Assessment of Non-Fungible Tokens,” highlighting potential risks associated with NFTs. The assessment reveals that while NFTs and their platforms are seldom used for activities such as proliferation financing, they are highly susceptible to fraud and scams. Traditional fraudulent schemes involving NFTs can result in stolen assets, and criminals often use NFTs to launder proceeds from crimes, employing techniques to obscure the illicit source of funds.

The report details how criminals exploit various vulnerabilities related to the unique characteristics of NFTs, the assets they represent, and existing regulatory frameworks both in the U.S. and internationally. Specific concerns include cybersecurity vulnerabilities, challenges with trademark and copyright protection, and the fluctuating hype and pricing of NFTs, which can facilitate fraud and theft. It also claims that the lack of appropriate controls in some NFT firms and platforms can jeopardize market integrity, facilitate money laundering and terrorist financing, and aid in sanctions evasion.

To mitigate these risks, the Treasury report examined several measures that can partially address the identified threats and vulnerabilities. These measures include industry tools, law enforcement actions and public announcements, the transparency of most blockchains, and existing regulations and requirements for industry participants. While these can help mitigate illicit finance risks, they are not comprehensive solutions.

The Treasury has outlined several areas for further work to address outstanding risks associated with NFTs:

Application of Regulations to NFTs and Raising Awareness: Authorities should consider developing regulations or guidance specific to NFTs, providing clarity on existing obligations for NFT platforms. This could involve issuing guidance, alerts, and advisories that highlight how current regulations apply to NFTs and increasing private sector outreach to raise awareness of regulatory obligations.

Enforcing Existing Laws and Regulations: Regulatory agencies should continue to supervise and enforce compliance among actors in the NFT sector, ensuring adherence to applicable obligations, including the Bank Secrecy Act (BSA) and sanctions obligations.

Private Sector Engagement: Continuous engagement with the private sector is crucial to understanding the evolving NFT ecosystem. Monitoring changes in NFT use cases and platforms will help assess their impact on anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations. NFT firms are encouraged to participate in cybersecurity programs like the CISA Cyber Hygiene Scanning Service and the Financial Services Information Sharing and Analysis Center (FS-ISAC).

Addressing Scams and Fraud: The government should collaborate with developers and industry stakeholders to foster innovation that mitigates the illicit finance risks associated with NFTs, particularly those related to scams and fraud.

Consumer Education: Providing educational materials to consumers can help improve their understanding of the rights associated with NFTs and reduce confusion. This can prevent them from falling victim to scams and fraud.

Engagement with Foreign Partners: The U.S. government should work with international partners to encourage risk assessments and develop policies addressing the illicit finance risks of NFTs and NFT platforms.

Featured Image via Unsplash