Coinspeaker Top Democrat Maxine Waters Hints at Almost Ready Stablecoin Bill

US House Representative Maxine Waters (D-California) has claimed that the finalized version of the long-awaited stablecoin bill is just around the corner. The top Democrat on the House Financial Services Committee shared the update in a recent interview with Bloomberg. Waters said in a part statement:

“We are on our way to getting a stablecoin bill in the short run.”

The latest development comes after Waters earlier called a previous version of the bill “deeply problematic and bad for America”. However, from the look of things, it may seem that reasonable progress has been made on the bill since then.

Speaking about why the bill has been tarried for so long, Rep. Waters claimed that the delay has always been about investor protection. She added that it is the duty of legislators to ensure that issuers have “those assets to back up stablecoins”.

Stablecoin Law May Be in Effect Before Elections

The latest commentaries from Representative Maxine Waters have reignited hopes that a new stablecoin law could be in effect soon. That is even before this year’s general elections in the United States. The reason is that, according to Waters, all hands are on deck to get the job done. She mentioned that the US Federal Reserve, the Treasury Department, and the White House have contributed immensely toward the bill.

It might be worth noting that at the beginning of the year, a stablecoin law was widely considered unachievable in 2024. However, efforts have now gained massive momentum since the Senate and the House got on the matter some weeks ago.

As Coinspeaker reported earlier, Waters and House Financial Services Committee Chairman Patrick McHenry (R-N.C.) recently had a meeting with Senate Majority Leader Chuck Schumer regarding this bill. According to inside sources, the meeting was aimed at getting the stablecoin bill moving by any means necessary. That is, even if it means tying it to a must-pass Federal Aviation Administration reauthorization that is due in May.

Also, US Senators Cynthia Lummis and Kirsten Gillibrand recently floated a new stablecoin bill. The bill proposes an outright ban on algorithmic stablecoins while also asking that the required tokens of issuers be fully backed by reserve assets.

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Top Democrat Maxine Waters Hints at Almost Ready Stablecoin Bill

Coinspeaker South Korean Upbit Becomes Top 5 Exchange by Volume

Upbit, a South Korean crypto exchange based in Seoul’s ritzy Gangnam district, has climbed to become the top five global exchanges by volume. South Korea has benefitted from the recent crypto bull run that swept across the global market, with rumors of the Korean won supplanting the US dollar as the most popular currency for swapping Bitcoin and other digital assets reaching high intensity.

Upbit Dominates the Korean Market Volume

According to a Bloomberg report, over 80% of Korean trading volumes are currently being handled on Upbit. This is a huge milestone for Upbit as no other exchange has been able to attain such dominance in a major crypto hub. Additionally, Upbit is now in close competition with Coinbase Global Inc (NASDAQ: COIN), a leading crypto exchange in the US.

Last year, Upbit’s customers accounted for nearly a fifth of total deposits from its major banking partners. This move ignited a sharp rebuke from a South Korean lawmaker. However, new laws have been passed following the arrest of Do Kwon, a South Korean businessman whose stablecoin TerraUSD, collapsed in 2022.

Nam HyeonJoon, a spokesperson for Bithumb, Korea’s second-largest trading platform stated:

“Under the new regulatory regime, crypto exchanges will have to bulk up reserves, get investor-protection insurance, and step up monitoring for suspicious transactions, requiring both capital and manpower.”

Launched in 2017, Upbit is controlled by fintech firm Dunamu Inc. According to CCData, the exchange now accounts for almost 5% of overall crypto trading volume globally, up from 1.4% in January 2021.

Upbit became the first exchange registered with the Financial Intelligence Unit in 2021. This was made possible as a result of its partnership with K-Bank, an online lender. It is worth mentioning that before registering with Korean regulators, exchanges need to have banking partners.

A local media report from last year reveals that Upbit accounted for 18% of total deposits in K-Bank, drawing criticism from lawmaker Kim Heegon, who described the bank as “Upbit’s private safe deposit box” in October.

In an interview, a K-Bank representative stated that deposits made on the exchange are not utilized for lending purposes and can be withdrawn at any moment. He added that Upbit only makes up a “very small part” of the bank’s total earnings.

South Korea to Implement Strict Regulations

Beginning in May, regulators in South Korea are set to introduce stricter rules for token listings on centralized crypto exchanges (CEXs). Crypto exchanges within and outside the nation will have to abide by the rules once they are put into effect. This move is part of South Korea’s efforts to enhance transparency and security within its crypto market.

As Coinspeaker earlier reported, under the new guidelines, regulators may order exchanges to remove specific cryptocurrencies from their platforms if they fail to offer complete information on the digital asset.

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South Korean Upbit Becomes Top 5 Exchange by Volume

Coinspeaker Bitcoin’s Price Drop to $64,000 Leads to $210 Million Liquidations in One Day

The crypto market has once again been rattled by volatility as Bitcoin (BTC) price slipped to $64,000, marking a downturn following its rebound from the recent geopolitical tensions in the Middle East.

Despite maintaining a strong position above $66,000 for several days and briefly flirting with the $67,000 mark post-halving on April 20, 2024, Bitcoin faced resistance, leading to a subsequent decline. According to CoinGlass data, this downturn has brought increased pressure on bullish investors and over-leveraged traders with long positions, as daily liquidations surged to over $210 million.

BTC Drop Leads to Massive Liquidations

Over the past 24 hours, approximately 91,704 leveraged positions have liquidated in the crypto market. Long traders took the hardest hit with $178 million liquidated across several layer-1 blockchains, including Ethereum (Ether) and Solana (SOL).

Short traders also faced losses, with more than $32 million liquidated within the same period, according to CoinGlass data. Liquidations on the OKX crypto exchange accounted for the largest share, amounting to a total of $5.66 million.

Within the last hour alone, both long and short traders collectively incurred losses of $132.28 million. Currently, the entire crypto market capitalization stands at $2.37 trillion, reflecting a 3.97% decrease over the past 24 hours.

Broader Crypto Market Performance

Bitcoin’s decline to $64,000 had a widespread impact on the overall market, particularly affecting altcoins, which experienced larger drops than BTC.

In the last 24 hours, Solana (SOL) plummeted by over 7%, currently trading around $146 per token. Similarly, other altcoins such as Toncoin (TON), Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Bitcoin Cash (BCH) also saw significant declines of 7%, 6.35%, 9.91%, 7.5%, and 6.07%, respectively.

Even memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) were not spared, facing drops of 7.20% and 8.38%, respectively, during this period.

Bitcoin ETF Traders Seek Safety Amid Crypto Turmoil

With the bloodbath in the crypto market, Bitcoin ETF traders are scampering for safety and selling off their bags.  According to data from SoSoValue, Grayscale’s ETF GBTC faced a significant net outflow of $130 million within a single day.

Despite the massive outflow from Grayscale, Fidelity’s ETF FBTC recorded a massive inflow of $5.61 million in the same period. This figure represents the highest inflow among Bitcoin spot ETFs in the United States.

Similarly, ETFs like ARKB by Ark Invest and 21Shares also saw notable net inflows of $4.17 million within a day.

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Bitcoin’s Price Drop to $64,000 Leads to $210 Million Liquidations in One Day

Coinspeaker Man Who Flashed ‘Buy Bitcoin’ at 2017 Congressional Hearing Sells Sign for $1M

Nearly 7 years later, Christian Langalis, the man who wrote “Buy Bitcoin” on a yellow notepad and flashed it on live TV, has now sold the sign at an online auction.

Langalis was a 22-year-old intern during a 2017 Congressional hearing of the then-United States Federal Reserve chair Janet Yellen. However, he soon became a sensation, especially among a community of crypto developers and investors, after the act that saw him immediately escorted off the premises at the time.

According to the Bitcoin auction platform Scarce City, the sign has now sold to the highest bidder for 16 Bitcoin, around $1.027 million.

The buyer, identified as “Justin” aka “Squirrekkywrath”, went home with the prize after an auction that lasted for a week. The auction ended a few minutes after 11:00 pm. UTC on April 24.

Congratulations to Justin, A.K.A. Squirrekkywrath, winner of the #BitcoinSignGuy auction for 16 #BTC. 🏆@tpacchia Get this man a Whale! 🐳 pic.twitter.com/DPpczcEzkJ

— PUBKEY (@PubKey_NYC) April 24, 2024

Meanwhile, Scarce City is set to take a 15% cut for facilitating the sale. This means that Langalis will go home with 13.6 BTC (approximately $874,000) or thereabout.

This is not the first time Langalis would be cashing out from the yellow pad sign. In 2019, he created and sold at least 21 replicas of that sign at an average price of 0.8 BTC. By current prices, each of those replicas is now worth $51,420.

At the time, he sold to venture firms, including Paradigm, Blockchain Capital, and Castle Island Ventures. Crypto think-tank Coin Center was also one of the buyers.

The Iconic Buy Bitcoin Sign

According to the listing details, the item is an “Ink Drawing on Legal Pad” weighing half a pound. The legal pad also contains Langalis’s notes from the hearing of that fateful day. The description read:

“The page with the sign drawing was removed from the notepad shortly after the hearing. It has since been reattached with clear archival wire.”

With the proceeds from his latest sale, however, Langalis plans to fund his startup, Tirrel Corp. The project is supposedly working on a Bitcoin Lightning network wallet and implementation.

Bitcoin’s price has surged from around $2,300 in 2017 to a record high of almost $74,000 in March 2024. That is as institutional investors such as Fidelity and BlackRock joined the fray on championing the digital asset.

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Man Who Flashed ‘Buy Bitcoin’ at 2017 Congressional Hearing Sells Sign for $1M

Coinspeaker Binance Founder Changpeng Zhao Apologizes in Letter to Presiding Judge Ahead of Upcoming Sentencing

As the sentencing for Binance co-founder Changpeng Zhao (CZ) approaches, the former crypto leader has written an apology letter to the presiding Judge from the Western District of Washington, Richard A. Jones. According to the apology letter, CZ noted that he has accepted full responsibility for the poor decisions during his tenure at Binance.

“There is no excuse for my failure to establish the necessary compliance controls at Binance,” the apology letter said.

CZ further assured the court that this would be his only encounter with the criminal justice system. As Coinspeaker explained, the United States is seeking a harsher punishment for CZ, which entails a three-year sentence in addition to a $50 million penalty. Notably, Zhao pleaded guilty under an agreement with the United States government, which brushed off his right to appeal any sentence of more than 18 months.

Binance Team Supports CZ

In addition to the apology letter, there were 161 other letters from CZ’s family and friends seeking leniency from the judge.

According to He Yi, a Binance co-founder, CZ was bound to encounter such blind spots as he had never led such a huge company. Furthermore, the United States Congress has not yet passed clear crypto regulatory laws.

“If the cryptocurrency industry is compared to the Wild West, then CZ is the guardian of this wilderness. Even the U.S. has not decided how to regulate and define this industry,” Yi noted.

Another letter of support was written by Tigran Gambaryan, Binance’s Head of Financial Crime Compliance and a former special agent in the US Department of Treasury, who is currently detained in Nigeria.

“While acknowledging CZ’s prior missteps, I can attest to his integrity, business insight, and philanthropic actions have had a ripple effect, influencing not only Binance’s corporate philosophy but also positively impacting lives globally,” Gambaryan wrote.

Other support letters came from key members of the global political class including members of the ruling family in the United Arab Emirates. Max S. Baucus, former US Ambassador to China, Professor Jeremy R. Cooperstock, McGill University, Associate Professor Ronghui Gu, Columbia University, and Morgan Stanley Managing Director Sean Yang also wrote a supportive letter to the Judge.

Market Picture

The upcoming sentencing of CZ will mark a new era of cryptocurrency regulations around the world. Moreover, the cryptocurrency industry has grown to over $2 trillion valuation and attracted major hedge funds led by BlackRock Inc (NYSE: BLK).

With CZ having ceded power over Binance, the upcoming sentencing will have minimal impact on the BNB ecosystem. As of this writing, BNB price traded around $601, up approximately 14 percent in the past seven days.

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Binance Founder Changpeng Zhao Apologizes in Letter to Presiding Judge Ahead of Upcoming Sentencing

Coinspeaker Figment Soars with Record-Breaking Growth in Q1 2024 and Expanded Staking Services

Figment, a crypto staking firm, has announced its achievement in the first quarter (Q1) of 2024. The company revealed that with the launch of its Ethereum and Solana staking Exchange Traded Products (ETPs), it experienced a record year-on-year growth, managing over $15 billion in staking assets for more than 500 institutional clients. This huge five-fold increase compared to the same period in 2023 indicates the firm’s rapid expansion and the growing trust and confidence that its customers have in its services.

Exponential Growth in Staking Assets

Based on the company’s release reported by The Block, it could be mathematically proven that Figment’s staking asset volume stood at $3 billion during the same period last year. However, the significant spike in asset volume showcases the growth the company has been able to amass, driven by the increasing trust and confidence of its customers.

Lorien Gabel, Figment’s CEO and Co-founder, echoed the company’s commitment to its customers, emphasizing that they recognize the priorities of their clients, who are increasingly seeking trust, risk-adjusted rewards, and assurance in navigating the complexities of the blockchain landscape. Gabel further stated that Figment’s foundation is built on these principles, and the company takes pride in guiding its customers through uncertain regulatory environments with transparency, security, and compliance as top priorities.

European Expansion and Strategic Partnerships

Figment’s growth is not limited to staking volume alone; the company is also extending its reach by strengthening its presence in the European continent through the establishment of Figment Europe Ltd. This strategic move has proven fruitful, it has partnered with Apex Group to launch Ethereum and Solana staking ETPs on the Six Swiss Exchange.

These ETPs, named Figment Ethereum Plus Staking Rewards (ETHF) and Figment Solana Plus Staking Rewards (SOLF), provide investors with exposure to the prices of Ethereum and Solana while earning staking rewards, including maximum extractable value (MEV). The ETPs are fully backed by cryptocurrencies and aim to generate additional rewards through staking, providing investors with an easy way to access these rewards without the complexities of individual participation. The CEO revealed that the choice for ETH and SOL is based on the popular demand by the company’s largest customers.

Ethereum and Solana are among the major cryptocurrencies that have been favored by people in recent times. Ethereum is widely recognized as a leading platform for decentralized applications (DApps) and smart contracts, while Solana is known for its high throughput and low transaction fees, making it suitable for a wide range of applications, particularly in the decentralized finance (DeFi) space. The features could be catalysts for Figment customers’ preference for them over other options.

Figment’s ambitions do not stop there; the company has revealed plans to accelerate its growth by focusing on a new product offering called Figment Vaults. These innovations make it easier for institutions to stake ether. Clients can stake any amount of ether privately, without pooling or mixing assets. They can also choose where their validators are located, giving institutional investors more control and customization options.

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Figment Soars with Record-Breaking Growth in Q1 2024 and Expanded Staking Services

Coinspeaker Ripple IPO: David Schwartz Makes Key Expose on His Stock Option

David Schwartz, the Chief Technology Officer (CTO) at Ripple Labs Inc has shared important details about his stock options amid IPO conversations. His opinion has sparked curiosity about Ripple’s plans for an Initial Public Offering (IPO).

David Schwartz Stock Option

Schwartz revealed that he is uncomfortable with the level of risk associated with his current stock holdings and hinted at potential future actions to manage this risk. He mentioned that he might sell some of his Ripple stock to purchase more, pointing to expiring options and important tax implications.

“Funny story: I actually may have to sell some more Ripple stock soon in order to buy more Ripple stock. I have some options to buy Ripple stock that I’ve had for so long, they’re close to expiring. But exercising them has a huge tax cost,” says Schwartz.

The CTO’s comments arose amid a heated discussion in the online community where enthusiasts asked him to clarify his position on Ripple vs XRP shares. The discussion focused on the intricacies of stock ownership, with crypto enthusiasts speculating on Schwartz’s potential motives and considerations.

Funny story: I actually may have to sell some more Ripple stock soon in order to buy more Ripple stock. I have some options to buy Ripple stock that I've had for so long, they're close to expiring. But exercising them has a huge tax cost.

— David "JoelKatz" Schwartz (@JoelKatz) April 23, 2024

One community member even opined that it was easier to sell Ripple shares at any time and in exchange for XRP. In response to questions concerning his preference, Schwartz emphasized the difference in liquidity between XRP and equities of privately held companies, highlighting the better liquidity of the former.

Ripple IPO Ambition Growing

Ripple CEO Brad Garlinghouse has been vocal about his company’s plans for a long time. In January, Garlinghouse revealed in an interview that Ripple was exploring an IPO outside the United States. Although the CEO said the company has no time frame yet for the planned IPO, he emphasized that the move follows perceived hostility from the US Securities and Exchange Commission (SEC).

The regulator sued Ripple and two of its executives, including the CEO, in 2020, years after the blockchain payment firm conducted its Initial Coin Offering (ICO), citing unregistered securities and violations of federal laws.

In 2023, the court ruled in favor of Ripple and declared its associated XRP, to be non-security when traded on exchanges. The lawsuit is almost over right now. The SEC is expected to file its response brief under seal next month, after which there will be a meeting to address redactions. Subsequently, a redacted version of the response brief and any non-confidential supporting exhibits will be submitted publicly.

With talks with investors continuing and Ripple valued at an astounding $11 billion, expectations for the company’s future IPO plans are growing. However, some experts think that Ripple’s IPO will put an end to the inherently speculative nature of XRP. Some claim investors of XRP will be upset, thus leading to low investment in the cryptocurrency.

At the time of writing, XRP is trading at $0.5344, with market capitalization and trading volume standing at $29.4 billion and $1.3 billion respectively.

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Ripple IPO: David Schwartz Makes Key Expose on His Stock Option

Coinspeaker Will Ethereum Be Classified as Security? Crypto Analyst Offers Perspective on Raging Controversy

The cryptocurrency space has been in a debate concerning the approval of Ethereum as a security by the US Securities and Exchange Commission (SEC). This discussion has been ongoing for a considerable period, with various analysts and industry experts offering diverse perspectives on the matter’s outcome.

New York Attorney General Fuels the Debate

Recently, a crypto analyst and legal adviser Metalaw weighed in on the matter, making reference to the action taken by New York Attorney General (NYAG) Letitia James approximately a year ago. In this past move, Attorney General James made headlines by publicly asserting that Ethereum, one of the leading cryptocurrencies in the market, is a security.

Will @GaryGensler declare $ETH a security?

Maybe.

Don't forget, NYAG Letitia James already did this a year ago and issued a press release trumpeting the move.

"This action is one of the first times a regulator is claiming in court that ETH, one of the largest cryptocurrencies…

— MetaLawMan (@MetaLawMan) April 23, 2024

This assertion was made during a legal battle against the cryptocurrency exchange KuCoin, where Ethereum was likened to LUNA and UST. James’ argument hinges on the notion that ETH  is a speculative asset that relies on the efforts of third-party developers to generate profits for its holders, thereby necessitating registration as a security before being sold.

The debate on whether Ethereum should be classified as a security or not holds significant implications for the potential approval of an Ethereum ETF, as securities are subject to stringent regulatory oversight and registration requirements. This stance has garnered attention, as SEC Chairman Gary Gensler has refused to deny the possibility of Ethereum being classified as a security, stating that it depends on the facts and the laws of the United States.

Diverging Views from Industry Experts

While the approval of Ethereum as a security could lead to an ETH ETF approval, it has generated excitement among traders and investors who anticipate a potential price surge akin to the one witnessed after the approval of the Bitcoin ETF. However, issuers of the ETH ETF have expressed skepticism about a positive outcome.

VanEck CEO Jan van Eck has indicated that the approval is likely to be rejected, drawing parallels with the lengthy process involved in the approval of Bitcoin ETFs. He stated that regulators typically provide comments on applications, and this process took weeks before the Bitcoin ETFs were approved, but currently, no such signs are evident for Ethereum.

Furthermore, Eric Balchunas, a senior ETF analyst at Bloomberg, has estimated the odds of spot ether ETFs being approved in May at a mere 35%. While acknowledging that there are reasons for approval, he noted that the signs and sources that previously indicated optimism for the Bitcoin spot ETF approval are lacking in Ethereum’s case.

As the debate on whether Ethereum is a security or not gets intense, the cryptocurrency community stays hopeful, eagerly awaiting a decision that could push the price of Ethereum even higher. Traders and investors see the approval as a powerful catalyst that might spark a bullish rally. This is supported by observations of large wallet holders purchasing more ETH, indicating strong confidence in its future.

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Will Ethereum Be Classified as Security? Crypto Analyst Offers Perspective on Raging Controversy

Coinspeaker Stablecoin Adoption Sees 15% Surge as Number of Holders Inches Close to 100M

Stablecoins are fast growing in popularity, and the result is now evident in the number of addresses that hold them. According to the data from rwa.xyz, such addresses have climbed 15% this year alone, soaring to a record high of over 93.6 million.

These digital assets, which maintain a 1:1 peg to external references like the US dollar, can be classified into three main types. They are fiat-backed, crypto-backed, and algorithmic stablecoins.

Of all stablecoins, though, Tether (USDT) is unquestionably the biggest in terms of the number of holders. About 80% of all stablecoin addresses hold USDT, then closely followed by USDC and BUSD. As of this publication, there are 35 stablecoins in circulation with a collective market capitalization of $157 billion. Of that lot, Tether USDT boasts a market cap of $114.07 billion.

As in the number of addresses that hold stablecoin, the number of addresses actively transferring stablecoins has also surged. March alone saw over 26 million active addresses, a record amount that signaled significant retail investor participation. These transactions took place primarily on TRON and Binance Smart Chain (BSC).

Meanwhile, despite their dominance in active address counts, TRON and BSC pale in comparison to Ethereum and Solana in terms of transfer volumes.

Growing Use Cases

It might be worth noting that the stablecoin holding addresses have been on a steady rise for months. Even during the 2022 crypto bear market and seemingly against all odds, the tally continued on the uptrend.

According to analysts, that growth could be linked to increased investor interest in assets that promise more stability. Especially considering the rapid interest rate hikes that the Federal Reserve was implementing at the time.

Besides, a 2022 Federal Reserve report also noted that there were rising use cases for stablecoins. These include and are not limited to cross-border payments, internal fund transfers, and liquidity management within firms.

Furthermore, the versatile digital assets can serve an array of purposes depending on the geographical location. For instance, a country like Zimbabwe struggling with inflation would utilize stablecoins for payments, remittances, and store of value assets. More stable economies, on the other hand, may use stablecoins to facilitate crypto purchases.

Rating agency S&P predicts that regulatory clarity will encourage banks to adopt stablecoins. As Coinspeaker also recently reported, US Senators Cynthia Lummis and Kirsten Gillibrand introduced a comprehensive 179-page bill aimed at regulating stablecoins.

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Stablecoin Adoption Sees 15% Surge as Number of Holders Inches Close to 100M

Coinspeaker Nigeria’s Central Bank Issues Denial Regarding Alleged Freeze on Crypto Accounts

The Ce­ntral Bank of Nigeria (CBN) rejecte­d claims it instructed banks and financial companies to identify crypto exchange users. Re­ports stated accounts engaging in such transactions were put on Post No Debit (PND) for six-month re­strictions. However, the CBN de­nied issuing directives re­quiring identification of crypto traders and temporary account fre­ezes. 

The situation be­came confusion when the ce­ntral bank initially refuted the re­port on X, only to remove the de­nial. Later, they asse­rted that the allegations we­re indeed false, leading to uncertainty regarding the­ true circumstances.

This information does not originate from the Central Bank of Nigeria. For authentic updates, please visit the official website of the Bank at https://t.co/R9TQU0eRpp. pic.twitter.com/LCoUvalMRy

— Central Bank of Nigeria (@cenbank) April 24, 2024

In Decembe­r 2023, the financial institution allowed banks to facilitate transactions for lice­nsed crypto exchanges, lifting a two-ye­ar prohibition. However, this rece­nt reversal shows growing concerns within the Nigerian gove­rnment regarding cryptocurrency’s pote­ntial impact on economic stability within the nation.

Binance Faces Scrutiny amid Nigeria’s Naira Crisis

Nigeria has been struggling with substantial devaluations of its nationwide curre­ncy, the naira. Inflation escalated to an alarming 29.9% by April 2024. See­king stability, authorities scrutinize cryptocurrency platforms, vie­wing them as potential destabilize­rs amidst this financial turmoil.

Binance, the­ largest crypto exchange, has been a focal point of the CBN’s scrutiny. In 2023, the bank raised concerns about $26 billion worth of suspicious financial transactions passing through Binance­ Nigeria. These transactions alle­gedly involved unknown sources and use­rs, prompting investigations.  

Adding fuel to the fire, Binance executive Tigran Gambaryan currently faces alle­gations of money laundering in Nigeria, according to officials regarding regulations. Me­anwhile, another executive, Nadeem Anjarwalla, who accompanie­d Gambaryan, evaded custody and currently faces e­xtradition proceedings from Kenya. 

The CBN pre­viously restricted access to we­bsites facilitating crypto trading, allowing users the unofficial exchange­ rates for the Nigerian Naira. This move highlights their concerns regarding unregulated channels pote­ntially influencing the currency’s valuation. 

For the Nige­rian crypto community, clear regulations are e­ssential for a secure digital asse­t landscape. Establishing guideline­s promotes legitimacy. Furthermore, imple­menting measures to protect users’ interests is vital to e­nsure a fair and balanced approach towards cryptocurrency adoption in Nige­ria.

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Nigeria’s Central Bank Issues Denial Regarding Alleged Freeze on Crypto Accounts

Coinspeaker Floki and Pepe Leads in Bullish Breakout Ahead of Anticipated Meme Coin Season

The meme coin industry has grown to a major sector, with more than $56 billion in market cap and around $7.6 billion in daily average trading volume. Almost all layer-one (L1) and layer-two (L2) chains are using flashy meme coins to attract more on-chain activities.

Moreover, the initial rise of Shiba Inu (SHIB), and Dogecoin (DOGE) has inspired a new generation of meme coins including frog-themed, and cat-themed, among many others. The meme coin industry is expected to continue playing a crucial role in the ongoing crypto bull run.

Nonetheless, investors should be extra vigilant while dealing with new and flashy meme coins to avoid holding coins without liquidity and have high potential risks of rug pulls.

Top Meme Coin to Lead Bullish Recovery

Bitcoin dominance has been eating into the altcoin market cap for the past year fueled by the heightened demand from institutional investors. However, most analysts believe an altseason will kickstart soon as BTC holders continue to distribute their profits to different altcoins.

Meanwhile, traders should keep a close watch on the ETH/BTC pair, which is the ultimate indicator of the onset of the anticipated altseason.

Floki (FLOKI)

Floki is a fast-growing meme coin, with a fully diluted valuation of about $2 billion, backed by a thriving community. According to the latest market data, the Floki price edged over 15 percent higher in the past 24 hours to trade around $0.002 on Wednesday during the mid-London session.

According to a popular crypto analyst alias Captain Faibik, Floki’s price is en route to retesting its all-time high (ATH) following a breakout of a daily bullish flag. Notably, the crypto analyst expects the Floki price to rally as much as 3X from current levels in the coming days.

$FLOKI has also Broke out of Bullish Flag on the Daily timeframe Chart. ✅

Looks Promising for 2-3x Bullish Rally in the Coming Days. 📈#Crypto #FLOKI #FLOKIUSDT pic.twitter.com/Q2Jsr3h027

— Captain Faibik (@CryptoFaibik) April 24, 2024

The Floki ecosystem is fast transforming into a vibrant web3 ecosystem, especially through its FlokiFi Locker system. For instance, Altoscan, a web3 project developing an open-source block explorer compatible with all rollups, used Floki Locker to lock $18 million worth of $ATS for 15 months on Tuesday.

And more. pic.twitter.com/UFbG427yda

— FLOKI (@RealFlokiInu) April 24, 2024

Pepe (PEPE)

As Coinspeaker previously reported, frog-themed and Ethereum-based meme coin, Pepe (PEPE), has faced immense competition from other potentially influential meme coins led by Solana-based projects.  According to the latest market data, Pepe’s price gained over 17 percent in the past 24 hours to trade around $0.0000079 at the time of this report.

Following the recent uproar, Captain Faibik believes Pepe’s price is well positioned for at least a 3X rally in the coming days.

Notably, Coinbase International announced on Tuesday that its 1000PEPE-PERP, its latest perpetual future listing based on Pepe, is now available for trading.

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Floki and Pepe Leads in Bullish Breakout Ahead of Anticipated Meme Coin Season

Coinspeaker Australia Records 1,000 Bitcoin ATMs Milestone

Active Bitcoin ATMs in Australia have now crossed the 1,000 mark, making the country the third-largest hub for crypto ATMs. As of publication, Australia now hosts an active network of 1,002 Bitcoin ATMs, and joins the United States and Canada as the only countries to achieve this feat.

Australia’s latest figure means that the country now hosts 2.7% of the global Bitcoin ATM network. Meanwhile, the data from Coin ATM Radar suggests that the US hosted its first 1,000 crypto ATMs in November 2017. Canada also hit the milestone in January 2021.

However, the US has now added many more, and is now home to 31,170 machines, an impressive 82.8% of the global Bitcoin ATMs. Canada on the other hand currently controls 2,918 crypto ATMs, accounting for 7.8% of the global lot.

Growing Adoption of Bitcoin ATMs in Australia

Interestingly, the Bitcoin ATM market was relatively inactive in Australia until the end of 2022. However, as private firms began to enter into the market, it blossomed exponentially.

The timing of this surge is noteworthy, with Australia’s ascent coinciding with a global wave of interest in cryptocurrencies. By April 2023, the country had already overtaken Asia on the Bitcoin ATM count roll. That means it had a count greater than China, Japan, Singapore and India combined.

With its current installation momentum, Australia is poised to surpass even Europe any time soon. Europe currently boasts a network of 1,617 Bitcoin ATMs, representing 4.3% of the global size. Member countries in Europe that have significant numbers of crypto ATMs include Spain with 261, El Salvador (215), Poland (211), and Germany (194).

Australia’s journey towards crypto dominance is not without challenges. Regulatory scrutiny, security concerns, and market volatility stand as potential roadblocks. However, the nation’s unwavering commitment to innovation and its embrace of emerging technologies speak well for a promising future in the crypto sphere.

As Australia celebrates this milestone, it sends a clear message to the world about its intent to be at the forefront of global crypto adoption. Despite a slow start, Australia may just have positioned itself as a global crypto hub.

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Australia Records 1,000 Bitcoin ATMs Milestone

Coinspeaker Renzo Introduced REZ Tokenomics and ezPoints Claiming Details

With the end of Renzo’s Season 1 ezPoints campaign drawing closer, the liquid staking protocol has released REZ tokenomics and the claiming details of the ezPoints.

According to the Renzo Protocol, the Season 1 ezPoints campaign will end on April 26. The protocol confirms that it has experienced immense growth in the volume of active users and the Total Value Locked (TVL). The growth in its TVL has placed Renzo amongst the top 10 Decentralized Finance (DeFi) protocols.

Renzo Season 2 Starts on April 26

Notably, Season 2 will kick off almost immediately as the current season ends on Friday, April 26. The decentralization process will follow on April 30 and this will be marked by the launch of REZ, the native token of the Renzo Protocol.

Users cannot claim their REZ until May 2 when 5% of the total REZ supply will be distributed, representing 500 million units. The distribution would be done based on each user’s accumulated ezPoints. Notably, 2% of the earmarked 5% airdrop will go to Milady Maker and SchizoPosters communities respectively.

While the total supply of the REZ token is 10 billion, the initial circulating supply is pegged at 1.05 billion. The largest percentage of the token distribution will be allocated to investors and the smallest (2.5%) to Launchpool like Binance which recently announced the restaking protocol as its 53rd project.

Most of the largest wallets will be subjected to a 50% unlock at TGE and another 50% linear, vesting over six months. Renzo Protocol plans to relocate unclaimed or unvested tokens to loyal users who maintain their relationship with the platform. Eligible wallets from Season 1 will get additional boost for the next phase but this is based on a condition.

“…..as long as your ezETH balance from Season 1 remains in your wallet or in any of the Renzo DeFi integrations,” the protocol noted.

The REZ token can be used for several activities including for voting on governance proposals, precisely for matters involving the Renzo Protocol.

Renzo Season 1 Comes to an End

Some of the highlights from Season 1 are a deposit of $3.5 billion, restaking market share of 33.5%, and over 250,000 users.

For a liquid staking protocol that launched barely four months ago, Renzo has hit several significant milestones. In this short time, the protocol was able to unlock native restaking on seven networks including Ethereum, Coinbase’s Base, Arbitrum, Mode, Blast, BNB Smart Chain, and Linea. Renzo also recorded ezETH on Layer-2 accounts for 24% of the total Renzo TVL.

Per a published statement, Renzo stated that it is the first restaking protocol to bring both native ETH and LST deposits, with stETH and wBETH making up about $110 million of the TVL in a matter of two weeks of its launch.

Since January till now, Renzo has been integrated into Morpho Blue, Balancer, Curve, Pendle, and some other platforms.

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Renzo Introduced REZ Tokenomics and ezPoints Claiming Details

Coinspeaker Worldcoin to Boost WLD Supply by 19% in Next Six Months, WLD Price under Pressure

Sam Altman’s iris-scanning digital identity project Worldcoin announced that it would increase the supply of its WLD tokens by a staggering 19% over the period of the next six months. Worldcoin said that it plans to implement this through the private sale to non-US institutions.

In its blog post on Tuesday, April 23, Worldcoin stated that the Worldcoin foundation subsidiary World Assets, which is in charge of the WLD assets, will sell nearly 1.5 million Worldcoins (WLD) worth a staggering $8.5 million every week via a series of “private placements to a select group of institutional trading firms” outside the United States.

“World Assets expects to sell between 0.5 million and 1.5 million WLD per week on average. The circulating supply of WLD will thus increase correspondingly,” noted Worldcoin in its blog post.

Pumping a staggering 1.5 million WLD tokens every week for six months straight would lead to an increase of 36 million WLD token supply, amounting to ~$200 million as per the current supply. Worldcoin currently has a supply of 193 million WLD tokens in the market. This shows that it is planning to add nearly 19% of the additional supply to the market.

As soon as the news of Worldcoin increasing the WLD supply spread, the price of the WLD token came under some selling pressure. As of press time, Worldcoin (WLD) is trading 3.5% down at a price of $5.45 and a market cap of over $1.058 billion.

Worldcoin stated its intention to engage in negotiations with individual trading firms, particularly those in competition with one another, to conduct private placements at or near prevailing Worldcoin (WLD) market prices. This strategy aims to mitigate the potential price impact on the token.

About the Worldcoin (WLD) Project

Worldcoin is the pet project of OpenAI CEO Sam Altman current Wolrdcoin CEO Alex Blania, and Max Novendstern, launched last year in July 2023, in beta. This crypto-based digital identity project markets itself as providing a solution to identity issues evolving through rapid developments in AI along with a push for a new model of universal basic income through its native WLD token.

Users of Worldcoin register their identity through the company’s “World App” by scanning their retinas at machines called “Orbs,” as designated by the company. In return for their biometric data, users receive approximately 25 Worldcoin, which is presently valued at around $137.

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Worldcoin to Boost WLD Supply by 19% in Next Six Months, WLD Price under Pressure

Coinspeaker Ripple Switches US On-Demand Liquidity (ODL) Clients from XRP to USDT Following Last Year’s Court Order

A recent court filing submitted by Ripple against the United States Securities and Exchange Commission (SEC) reveals that Ripple has made a few changes to its services in the United States. According to the filing, Ripple now uses Tether’s USDT instead of XRP as the bridge currency for its On-Demand Liquidity (ODL) services for US clients.

Ripple Uses USDT for ODL in the US

Ripple’s decision to switch to USDT stems from last year’s court ruling, which concluded that the institutional sale of XRP tokens violates security laws in the US. Following the verdict, Ripple decided to use non-US entities as contract parties to handle the sale of XRP to ODL customers. The filing also notes that all ODL clients in the US now use “a non-XRP bridge currency”.

In addition to the filing, a popular XRP proponent Crypto Eri posted an update on X. Crypto Eri’s post contains a screenshot of an alleged internal note from Ripple President Monica Long detailing the company’s move to XRP from USDT. According to Long:

“Immediately following the Order, we took steps to migrate each US-based ODL customer from using XRP as the bridge currency in ODL to using USDT (or the contract was terminated.) We should continue to use USDT (or BTC or other vetted stablecoins) for US based flows unless otherwise approved by Legal.”

Making this change indicates Ripple’s willingness to continue providing its ODL services to customers in the US, while adhering to legal restrictions. Long’s message specified the non-US entities used for ODL are Singaporean. The Ripple president noted that these entities are the primary contracting entities used to sell XRP contracts to new ODL customers “who are predominantly foreign.”

Long also included an XRP minimum requirement enforced in 2023. According to Crypto Eri’s image, Ripple required all ODL customers or their corporate owners to have at least $5 million in assets, except for “otherwise sophisticated entities.” She added that Legal gets to determine whether or not an entity qualifies as “sophisticated.” The rule is likely to ensure that ODL clients have robust reserves to continuously cater to their business needs and protect the end customers.

XRP Sales May Affect Ripple’s Revenue

Ripple’s filing contains indications that XRP sales are integral to the company’s financials. The document shows that according to Ripple’s accounting expert, Anthony Bracco, Ripple’s books show that without accounting for revenue from the sale of XRP, the company operated a loss from April 1, 2014, through December 22, 2020.

Ripple recently filed a motion against the SEC, disputing the agency’s request for a $2 billion fine against the company. According to Ripple, the fine should be $10 million at most. In the filing, Ripple notes that it is willing to adhere to guidance in the future. However, the company says the SEC’s requests are “Draconian” and “ungrounded in law or principle”. Ripple has asked the court to reject the request.

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Ripple Switches US On-Demand Liquidity (ODL) Clients from XRP to USDT Following Last Year’s Court Order

Coinspeaker Don’t Ignore Left Curve: Arthur Hayes Explains Why Crypto Will Continue to Surge

Arthur Hayes, an experienced crypto trader and co-founder of Bitmex, recently shared some insight about the main factors behind the current bull run. He explained how sovereign debt, currency debasement, and the growing attraction towards cryptocurrencies as a protection against the decline in fiat currency all interact with each other.

Hayes acknowledgув that while certain traders may take pride in their recent successes, such as capitalizing on Solana’s rapid surge, the real crypto legends are those who adopted the “Left Curve” mindset during the bear market spanning from 2021 to 2023. This  approach involves buying and holding cryptocurrencies, especially Bitcoin, as the bull market gathers strength

Currency Debasement and Institutional Investment: Catalysts for Crypto Surge

Hayes further delved into the fact that major economic powerhouses such as the United States, China, the European Union, and Japan are deliberately lowering the value of their currencies to handle their government debts. He also noted that traditional financial institutions (TradFi) are now able to profit from this situation through Bitcoin Exchange-Traded Funds (ETFs).

As a result, these institutions are urging their clients to safeguard the value of their wealth against currency devaluation. This increase in institutional investment further boosts the cryptocurrency surge, confirming the belief that crypto is a practical way to protect against the depreciation of fiat currency.

Understanding Nominal GDP and Its Impact on Economic Policies

Hayes explains the concept of nominal Gross Domestic Product (GDP), which includes inflation and real growth. He argues that governments borrow money to fund projects, hoping to boost economic growth and attract investors with promising yields. However, politicians often manipulate the system by keeping government bond yields lower than GDP growth rates. This allows them to spend more without raising taxes, but it leads to bad investments and economic stagnation. As a result, bond yields become distorted, and central banks print more money to reduce the government’s debt.

More so, he revealed that when real yields turn negative, traditional government bonds become unattractive investments. Investors are then compelled to seek alternative assets capable of outpacing inflation, such as cryptocurrencies like Bitcoin, which possess a finite supply and are immune to the debasement afflicting fiat currencies.

The Bitmex co-founder further contends that the polarized political landscape in the United States, particularly leading up to the 2024 presidential election, will only worsen this trend. With both major parties vying for power and promising extensive spending programs, the incentive to maintain negative real yields and facilitate unchecked borrowing will intensify.

Don’t Leave the Left Curve

As the summer months approach, the crypto trader advises his colleagues to seize the opportunity presented by recent market dips and token launches to accumulate positions strategically. In his post, he stated:

“This is the perfect time to take advantage of the recent crypto dip to slowly add to positions…..Whatever the flavour of crypto risk excites you, the next few months will present a golden opportunity to add to positions.”

He remains steadfast in his conviction that the overarching macro narrative of currency devaluation and relentless money printing will continue to fuel the crypto bull market, rewarding those who embrace the “Left Curve” mentality and hold their ground.

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Don’t Ignore Left Curve: Arthur Hayes Explains Why Crypto Will Continue to Surge

Coinspeaker Runes Accounted for Over 57% of Bitcoin Transactions on Halving Day, Here’s Why

Usually, the Bitcoin halving day promises many changes in and around the ever-evolving world of cryptocurrency. From the anticipated reduction in miner rewards to the surging price of Bitcoin, the event holds massive significance to the industry. However, the recently concluded Bitcoin halving 2024 brought some new revelations to the fore as it marked a significant shift in transaction patterns due to the introduction of Bitcoin Runes.

On the day, Runes accounted for a staggering 57.7% of all transactions in a move that appears to signal the beginning of a new era of Bitcoin transactions.

Runes are a new form of data embedded directly into Bitcoin transactions. Unlike typical financial transfers, Runes contain additional information, ranging from simple messages to complex contract-like scripts. This technology operates using a method known as “transaction augmentation.” It allows users to embed arbitrary data into transaction outputs, all while leveraging Bitcoin’s secure framework.

However, it is worth noting that the launch of Runes on halving day was a master strategy. It aimed to leverage the heightened market attention to maximize visibility and impact.

Good and Bad Impact of Bitcoin Runes

While the attempt to ride the buzz of halving day worked, Runes also had a significant impact on the market, both good and bad.

For the good part, Bitcoin miners saw a significant increase in earnings due to the Runes protocol. On the halving day, miner revenue soared to a record $107 million despite the 50% reduction in block rewards. Additionally, being that the Runes protocol’s launch coincided with the halving block, it drew significant interest, particularly among meme coin and nonfungible token (NFT) enthusiasts. The demand for block space ended up creating some of the most lucrative blocks in Bitcoin’s history.

The downside on the day was that the network saw an unprecedented surge in transaction fees, with daily fees hitting a new all-time high.

Although the fees got back to normal levels the next day, the average transaction fee remains higher than pre-halving levels. There was also network congestion from the activities on the Bitcoin network, further pointing to the influence of Runes.

Interestingly, however, the Runes trend could not impact the number of new Bitcoin addresses. This means that the activity was driven by existing users rather than new investors.

Without a doubt, the introduction of Bitcoin Runes has left a significant mark on the cryptocurrency world. More so, with its effect on transaction patterns and miner revenue. However, it may still take a while to determine if these implications would be short-lived or long-term.

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Runes Accounted for Over 57% of Bitcoin Transactions on Halving Day, Here’s Why

Coinspeaker DOJ Seeks 3-Year Imprisonment for Binance Founder Changpeng Zhao

The US gove­rnment seeks harsher punishment for Changpeng Zhao, Binance founde­r, than initially negotiated. In a sente­ncing document submitted on April 23, 2024, the US De­partment of Justice (DOJ) argued Zhao should spend 3 ye­ars in prison and a $50 million penalty for his role in enabling Binance to bre­ach federal sanctions and anti-money launde­ring regulations.

The De­partment of Justice’s decision to e­xtend the potential se­ntence from 18 months to 3 years imprisonme­nt marks a substantial increase in the case against Zhao. DOJ justified this harsh punishment by highlighting the “massive scope and ramifications” of Zhao’s actions.

DOJ Criticizes Binance’s Systemic AML Failures

The me­mo details show how Binance, under Zhao’s leadership, allegedly neglected the robust anti-money laundering (AML) protocols. DOJ asserted that lack of security enabled illicit actors to misuse the e­xchange for various criminal endeavors. These activitie­s included operating cryptocurrency mixing se­rvices to conceal fund origins and ownership, as we­ll as laundering proceeds from ransomware attacks.

“In part because Zhao failed to implement an effective AML program at Binance, illicit actors used Binance’s exchange in various ways, including operating mixing services that hid the source and ownership of cryptocurrency,” said the filling.

The filing emphasizes that these violations weren’t isolated incidents but a systematic problem within Binance­’s operations. The Departme­nt of Justice highlighted that the e­xchange knowingly operated within the Unite­d States despite lacking appropriate­ licensing and compliance protocols.

While the $50 million pe­nalty for Binance remains, the DOJ’s push for a longer prison sentence, an aggressive stance­ against Binance and its top executive­s. This firm stance impacts the industry, signaling stricter e­nforcement from US authorities de­spite maintaining the agree­d monetary penalty.

Adding another laye­r to the ongoing debate centers around Binance­’s global operations. Although the firm states Dubai as its base­, the US Department of Justice­ contends it operated within America’s borde­rs. This disagreement adds furthe­r muddying the waters of inte­rnational cryptocurrency regulation.

Changpeng Zhao’s Fate Pending

The founde­r of Binance will attend his sente­ncing hearing on April 30, 2024. Zhao has given up his right to appeal any sentence up to 18 months. However, the­ Department of Justice’s sugge­stion could lead to a longer se­ntence. Moreove­r, uncertainty surrounds Zhao’s ability to reunite with his family, re­siding in Dubai.

Meanwhile, Binance­, the world’s largest cryptocurrency e­xchange, has already admitted guilt and agre­ed to a $4.3 billion fine. The e­xchange is also subject to oversight from a court-appointe­d monitor, who has yet to be named.

The situation surrounding Binance and CZ highlights the ongoing regulatory scrutiny faced by the cryptocurrency industry. The DOJ’s strong stance sends a clear message: the era of unchecked crypto exchanges operating outside the law may be coming to an end.

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DOJ Seeks 3-Year Imprisonment for Binance Founder Changpeng Zhao

Coinspeaker ETH Price Grinds Higher amid Expected US SEC’s Decision on Spot Ethereum ETF Applications

Ethereum (ETH), the undisputed world web3 leader that has facilitated over $279 billion in bridged total value locked (TVL) through its popular EVM, is about to enter the exciting phase of the macro bull run. The large-cap altcoin, with a fully diluted valuation of about $396 billion and a daily average traded volume of around $11 billion, rallied around 3 percent in the past 24 hours to trade about $3,249.

Having closed last week on a bullish outlook, with a Doji weekly candlestick, Ethereum price is aiming to retest its all-time high in the near term. Furthermore, short-term Bitcoin (BTC) holders have already begun distributing their profits to the altcoin market in the ongoing crypto cash rotation.

Spot Ethereum ETF Final Decision on the Horizon

The United States Securities and Exchange Commission (SEC) has a month to the official deadline for its decision on the spot Ether ETF applications. The multiple fund managers that received the green light to offer spot Bitcoin ETFs earlier this year are the same ones in the race to offer spot Ether ETFs.

Notably, the approval of spot Bitcoin ETFs was largely influenced by the court, which compelled the US SEC to use the same parameters for ETFs as the futures previously approved. With the US Ethereum futures having been in existence for several years, there is a high chance the US SEC could follow the same trend.

However, the agency has been arguing that Ethereum is more of a security than a commodity than Bitcoin. Some experts have argued that the US SEC might not want to approve the spot Ether ETFs as other altcoins will follow the same path led by Ripple-backed XRP, Solana (SOL), and Dogecoin (DOGE), among others.

Meanwhile, Grayscale Investments LLC filed with the SEC its form S-3 prospectus on April 23 in its bid to convert its Ethereum Trust to a spot Ether ETF. Notably, Grayscale now has all the required documents filed with the US SEC, thus leaving the agency to decide.

The company also filed an S-1 for a mini Ethereum ETF under the ticker ETH, similar to its BTC mini ETF that is yet to be approved by the US SEC.

🚨NEW filings from @Grayscale:

The asset manager has just filed its Form S-3 with the @SECGov, a registration statement for the conversion of its Ethereum Trust to a spot $ETH ETF. Unlike the other ETH ETF issuers, Grayscale does not have to file an S-1 because its Ethereum…

— Eleanor Terrett (@EleanorTerrett) April 23, 2024

On Tuesday, BlackRock Inc (NYSE: BLK) filed an amendment to its spot Ether ETF application through form 19b-4. The increased engagement follows the delayed decisions by the US SEC on two spot Ether ETF applications; by Grayscale and Franklin Templeton.

Ether Price Action

Ethereum price is hovering at a major crossroads in its Bitcoin pair.

If $ETH breaks through 0.05 BTC, it's party time. pic.twitter.com/QHnPnwo6Iu

— Michaël van de Poppe (@CryptoMichNL) April 24, 2024

According to a popular crypto analyst Michaël van de Poppe, the anticipated altseason will begin as soon as the ETH/BTC pair rebounds from the current levels. Furthermore, Bitcoin dominance has been eating into altcoins since early last year.

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ETH Price Grinds Higher amid Expected US SEC’s Decision on Spot Ethereum ETF Applications

Coinspeaker Solana Block Time Returns to 2 Sec, Is Congestion Nightmare Over?

After several weeks of network congestion, Solana is now functioning properly again as its issue has finally been resolved and block time has returned to 2 seconds.

Having the block production return to normal is a huge milestone for Solana considering the setbacks it has experienced. The transaction confirmation time has also reduced drastically to less than two seconds. This breakthrough is a result of intense technical amendment, refinement and enhancement from the Solana developer team.

Boost in Solana Block Time: Solving Congestion Woes

The Solana team has tried different approaches to solve the network congestion issues. Earlier this month, Austin Federa, Head of Strategy for Solana Foundation confirmed the contribution from multiple developers to solve the congestion menace plaguing the network.

A few weeks back, Anza, the developer of one of Solana’s Agave validator clients announced the release of a solution patch to alleviate the network’s congestion difficulties.

Anza’s proposed solution involved a new version v1.18.11 on devnet of which Solana testnet validators were encouraged to install and analyze to check its effectiveness. Unfortunately, that did not seem to solve the congestion problem. Then came another upgrade to version 1.17.31, which facilitates transactions from staked validators through a new feature called Stake We­ighted Quality of Service (SWQOS).

According to Tim Garcia, the Validator Re­lations Lead at the Solana Foundation, SWQOS is expected to prioritize certain data transmissions or conne­ctions for enhanced reliability and pe­rformance. The recurrence of the network congestion was a clear indication that none of these solutions were enough to address Solana’s issue.

Looking at how several of the proposed solutions failed to cater to the challenges, it is not yet certain how long the current solution will last for.

However, it is key to re-establishing Solana’s position as the network with the capacity to handle thousands of TPS. The unfortunate situation on its network impacted scalability, and its user experience, therefore, this is a major turning point for the blockchain. With a transaction rate of 2700 TPS, Solana is likely to become more attractive to new projects.

Solana Congestion Forced Many Projects to Halt Launching

Many community members lost interest in the Solana network as it battled multiple occurrences of congestion in the last couple of months. This caused several transactions including 75% of all non-vote transactions on the blockchain to fail. At the time, the developer team suspected that the transaction failure was due to a major surge in the volume of transactions contributed by an ongoing memecoin craze.

Many users took to the X app to voice their frustration on the deteriorating experience. In the long run, the Solana team was compelled to put a hold on the launch of several projects as they promised to proffer a lasting solution to the network congestion.

Suit Up, a Non-fungible Token (NFT) project, and Surge Finance, made the decision to wait until “conditions improve enough for transactions to succeed.”

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Solana Block Time Returns to 2 Sec, Is Congestion Nightmare Over?