Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.

The rise of total value locked (TVL) in DeFi protocols above $100 million was aided by the Ethereum liquid restaking in the first quarter of 2024. Protocols such as Lido and EigenLayer are behind the DeFi TVL resurgence.

Solana developers released a patch for the prolonged network congestion on the blockchain on April 15. They promised more patches in the near future to ensure the network returns to normalcy.

Ethereum liquid restaking drove DeFi TVL to $100 billion in first quarter

Decentralized finance TVL almost doubled in the first three months of this year compared to the previous quarter, partially driven by Ethereum liquid restaking initiatives, according to recent research.

DeFi TVL surged from a Q4 2023 low of $36 billion to peak at almost $97 billion in the first quarter of 2024, according to DefiLlama. Since the beginning of the year, it has increased by 81%, reaching a two-year high of $98 billion last week.

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Avalanche home loan tokenization protocol raises $10 million in Series A funding

Homium, a home equity line of credit (HELOC) tokenization protocol built on Avalanche, has raised $10 million in a Series A funding round led by Sorenson Impact Group and Blizzard.

“Through shared appreciation home equity loans, Homium introduces a way for homeowners to borrow against their home equity without increasing their monthly debt burden,” wrote Avalanche in an April 15 announcement.

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Solana’s mainnet beta update v1.17.31 aims to resolve congestion issues

Solana developers have released a mainnet beta update, v1.17.31, to deal with the ongoing network congestion on the Solana blockchain. The update was released on April 12, and now, after three days of testing, it is being recommended for general use by mainnet beta validators.

This patch contains enhancements that will help with some of the ongoing network congestion and will be followed by further enhancements in v1.18. The current version will help improve network congestion and issues with the open interest jump.

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Crypto sleuth warns of scammers behind DeFi protocol

Pseudonymous blockchain investigator ZachXBT warned about a group of scammers attempting to entrap more victims in a new fraud using millions of stolen funds.

In a thread on X, ZachXBT disclosed the findings of an investigation over Leaper Finance, a lending protocol based on Blast. According to the analysis, the group is behind several rug pulls, including those that hit users of Magnate ($6.5 million), Kokomo ($4 million), Solfire ($4.8 million) and Lendora.

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DeFi market overview

Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a bearish week, with most trading in the red on the weekly charts. The total value locked in DeFi protocols fell below $90 billion.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.

United States-based cryptocurrency advocacy organization Coin Center has expressed concerns about a bill recently introduced in the Senate to establish a regulatory framework and guardrails for payment stablecoins.

In an April 19 notice, Coin Center claimed that the Lummis-Gillibrand Payment Stablecoin Act — introduced by Senators Kirsten Gillibrand and Cynthia Lummis — would be “bad policy” and unconstitutional for its proposed prohibition on algorithmic stablecoins. The group argued that banning such stablecoins essentially targeted code, seemingly an unconstitutional act under the protections of the First Amendment.

“[I]t may make sense to require issuers of products like Terra to register with the SEC and make appropriate disclosures (which for all practical purposes would make their use as a stablecoin infeasible), but an outright ban on a particular business model is unnecessary and anti-innovation,” said Coin Center. “If one can comply with the securities laws, one should be able to bring a product to market.”

Coin Center Executive Director Jerry Brito said that attempting to create a regulatory framework for stablecoins in the U.S. was a “laudable effort.” According to the text of the proposed bill, only U.S.-approved issuers would be allowed to issue dollar-backed stablecoins.

Source: Jerry Brito

Lawmakers in the U.S. House of Representatives and the Senate are working toward legislative solutions to stablecoins. Coin Center suggested that the Clarity for Payment Stablecoins Act — a bill set for a full floor vote in the House — had a “not unreasonable” approach to algorithmic stablecoins by proposing a two-year moratorium rather than an outright ban.

Related: Elizabeth Warren supports enhanced US sanction options for stablecoins

The depegging of TerraUSD (UST) from the U.S. dollar was one of the events that contributed to a crypto market downturn in 2022. Several firms filed for bankruptcy, and U.S. authorities and regulators continued to pursue criminal and civil charges against individuals involved in illicit activities.

Senator Sherrod Brown, who chairs the Senate Banking Committee, reportedly said on April 16 that a stablecoin bill would be one of his goals in the legislative session, provided his concerns were addressed. There were no plans in the House to schedule the Clarity for Payment Stablecoins Act for a floor vote at the time of publication.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Telegram’s 900 million users will be able to make peer-to-peer interactions seamlessly as the messaging app incorporates mini-apps and the Tether (USDT) stablecoins. Many users will interface with crypto for the first time and not even notice it. 

Developers will also benefit as they launch ecommerce, paywalled content, games and other business activities on top of The Open Network’s (TON’s) layer-1 blockchain more smoothly thanks to the stablecoin, TON Foundation director of investments Justin Hyun told Cointelegraph’s Ezra Reguerra at the Token2049 conference in Dubai. Telegram is also continuing the rollout of its TON-based wallet.

The launch of Tether on TON “really unlocks the creator economy that is already happening in TON and Telegram” as users “no longer need to jump through the barriers of having to acquire a different type of crypto or token,” Hyun said. He added:

“The most interesting use cases are the ones that engage in social viral mechanics. So there are games that are being created on a daily basis that are powered through Telegram mini-apps.”

Those products will be available without downloading outside apps. The advantages of that are clear. Hyun gave the Catizen game as an example. When the developers came to TON from a different blockchain, they gained 2 million users in two months, compared to 600,000 in a year and a half previously.

Related: Telegram commits to TON blockchain, plans to support tokenized emojis and stickers NFTs

Other social media are highly regionalized. “We have seen the rise of super apps which were not able to break through the barriers,” Hyun said, pointing to WeChat in China, Line in Japan and KakaoTalk in South Korea. TON’s global reach and native USDT remove the need for local payment gateways. Tether also makes it possible for Telegram to circumvent the payment restrictions imposed by Google and Apple.

Source: TON

TON is thus returning to the original vision that was scuttled by the inability of The Open Network to hold an initial coin offering in 2020 due to United States Securities and Exchange Commission’s opposition, Hyun said. The TON Foundation was created in 2021 by open-source developers who took over the project.

Magazine: Shanghai Man: Hack of little-known Poly Network highlights East-West crypto divide

Bitcoin (BTC) witnessed a sharp 6% drop on April 19, falling to a low of $59,640 in the early hours, before quickly recovering to secure support above $64,500. 

This rebound was driven by the optimism surrounding the upcoming Bitcoin halving, scheduled for April 20, which typically attracts significant interest from both traditional media and spot Bitcoin exchange-traded fund (ETF) providers. This event appears to have helped with offsetting the negative impacts of broader socio-economic challenges.

During the current tumult, the geopolitical landscape adds to the market's volatility. As tensions escalate in the Middle East, Bitcoin's price movement seems to correlate with global events. However, a recovery was aided by reassurances from Iranian officials, who stated there were no plans for retaliation, thus soothing markets’ nerves.

Low liquidations during extreme volatility strengthen the $60,000 support

Despite the dramatic $5,850 swing in Bitcoin’s price on April 19, liquidations in BTC futures remained relatively minimal, totaling around $45 million, as per data from Coinglass. This suggests that market participants were not heavily leveraged, a bullish signal considering that the $60,000 level has become a significant psychological support.

Cryptocurrency analysts at Amina Bank suggested that geopolitical tensions are not the sole drivers of market sentiment. As noted in their research, "Trading volumes, ETF flows, and news coming out of US inflation data are also pivotal." These analysts also pointed out that miners are selling off their Bitcoin in anticipation of the halving, trying to secure profits before the reward reduction.

From an economic perspective, the resilience in U.S. inflation data and strength in the labor market, supporting a 0.7% year-over-year growth in retail sales, has led to reduced odds that the U.S. Federal Reserve will reduce interest rates in the next couple of months. This skepticism is reflected in the 5% decline of the S&P 500 index since it retested its all-time high of 5,265 on March 28.

Bitcoin halving proximity caused no relevant changes in BTC futures metrics

A bird's eye view from BTC derivatives markets is a good starting point to analyze if the Bitcoin halving has driven considerable bets. According to BTC futures data, the current open interest stands at $29.8 billion, only slightly up from $28.6 billion two days prior. This slight increase suggests that the Bitcoin halving event has not sparked a significant surge in demand for leverage.

Bitcoin futures aggregate open interest, USD. Source: Coinglass

When viewed over a larger time frame, the demand for BTC futures appears subdued compared to the previous week’s $35.5 billion. Thus, there is no indication of excessive demand solely caused by the Bitcoin halving expectation.

Related: Is Bitcoin’s negative futures funding rate a sign of an upcoming BTC price crash?

To understand professional traders’ positions after the substantial price swing, one should analyze BTC futures premium. Such metric typically trades at a 5%–10% annualized premium compared with spot markets, indicating that sellers demand additional money to postpone settlement.

Bitcoin 3-month futures premium. Source: Laevitas

The premium for 3-month BTC futures is currently at 11%, which is moderately bullish but represents a decrease from last week's 16%. Notably, even during the swift retest of the $60,000 level on April 19, the premium managed to maintain a robust 9%. The data indicates that while the market is cautiously optimistic, there is no rush of short-term speculative betting in anticipation of the halving event.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

News about geopolitical tension between Iran and Israel caused wild swings in Bitcoin (BTC) on April 19. Although the price dipped below $60,000, the bears could not keep the price down. This suggests that the bulls are trying to flip the $60,000 level into support.

CryptoQuant head of research Julio Moreno said in a X post that the selling pressure may be reducing as traders unrealized profit margins were “basically zero” near $60,000. “Trader’s realized price” has acted as a strong support during bull markets, Moreno added.

Crypto market data daily view. Source: Coin360

Traders seem to be focusing on the long-term prospects of Bitcoin post halving. According to CryptoQuant data, during the 24-hours between April 16 and April 17, Bitcoin holders transferred more than 27,700 Bitcoin to accumulation addresses, creating a new record. Accumulation address is a wallet that holds more than 10 Bitcoin but has seen no previous withdrawal.

Have Bitcoin and select altcoins bottomed out in the short term? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

The long tail on Bitcoin’s April 19 candlestick shows that the bulls aggressively purchased the dip below the $60,775 support.

BTC/USDT daily chart. Source: TradingView

The relief rally has reached the 20-day exponential moving average ($66,067), where the bears may pose a strong challenge. If the price turns down sharply from the 20-day EMA, the $60,775 support may come under pressure. A break and close below $60,775 will complete a double-top pattern that has a target objective of $47,773.

On the other hand, if buyers kick the price above the moving averages, it will suggest that the BTC/USDT pair may trade between $60,775 and $73,777 for a while longer. A rise above $73,777 could propel the pair to $84,000.

Ether price analysis

The bears tried to sink Ether (ETH) below the April 13 low of $2,852, but the long tail on the April 19 candlestick shows that the bulls are aggressively buying the dips.

ETH/USDT daily chart. Source: TradingView

The price could reach the 20-day EMA ($3,261), which is likely to witness a tough battle between the bulls and the bears. If the price turns down from the 20-day EMA, the bears will make one more attempt to sink the ETH/USDT pair below $2,852. If they can pull it off, the pair may collapse to $2,717 and subsequently to $2,200.

Alternatively, if the price rises above the 20-day EMA, it will suggest that the correction has ended. The pair will try to rise to the overhead resistance of $3,679.

BNB price analysis

BNB (BNB) has been consolidating between $495 and $635 for the past several days, indicating indecision between the bulls and the bears about the next directional move.

BNB/USDT daily chart. Source: TradingView

If buyers overcome the obstacle at the 20-day EMA ($565), the BNB/USDT pair could rise to the overhead resistance at $635. This is an essential level for the bears to defend because a break above it could clear the path for a rally to $692. If this level is crossed, the pair may reach the pattern target of $775.

On the other hand, if the price turns down and breaks below $495, the pair will complete a double top pattern. That could start a slide to $460 and thereafter to $400.

Solana price analysis

Solana (SOL) has been finding support at $126 for the past few days, indicating solid buying by the bulls.

SOL/USDT daily chart. Source: TradingView

The recovery is likely to reach the 20-day EMA ($158), a critical level to keep an eye on. If the price turns down sharply from the 20-day EMA, the bears will again try to sink the SOL/USDT pair below $126. If they succeed, the pair could extend the downtrend to the psychological level of $100.

On the contrary, if the price continues higher and rises above the 20-day EMA, it will suggest that the bears are losing their grip. The $162 level may act as a resistance, but it is likely to be crossed. The pair may then climb to $185.

XRP price analysis

XRP (XRP) has been oscillating between $0.46 and $0.52 for the past few days, indicating that the bulls are trying to start a recovery.

XRP/USDT daily chart. Source: TradingView

The relief rally is likely to face selling at the downsloping 20-day EMA ($0.55). A sharp reversal from the 20-day EMA will signal that bears remain active at higher levels. The XRP/USDT pair could retest the critical support at $0.46.

Instead, if the price breaks above the 20-day EMA, it will suggest that the correction may be over. The pair could then rise to the 50-day SMA, extending its stay inside the $0.41 to $0.74 range for some more time.

Dogecoin price analysis

The long tail on Dogecoin’s (DOGE) April 19 candlestick shows that the bulls are trying to protect the $0.14 support.

DOGE/USDT daily chart. Source: TradingView

The recovery is likely to reach the 20-day EMA ($0.17), a significant level to watch out for. If buyers overcome this barrier, the DOGE/USDT pair could reach the downtrend line, where the bears are likely to sell aggressively.

The zone between $0.14 and $0.12 is likely to attract strong buying by the bulls because if the support gives way, the pair could face intense selling and tumble toward the formidable support at $0.10.

Toncoin price analysis

Toncoin (TON) rebounded off the support line of the ascending channel pattern on April 18, indicating that the bulls continue to defend the level with vigor.

TON/USDT daily chart. Source: TradingView

The bulls pushed the price to $7.23 on April 19, but the long wick on the candlestick shows aggressive selling by the bears near the resistance line of the channel. This suggests that the TON/USDT pair may remain inside the channel for several more days.

A slide below the channel will signal a potential trend change in the near term. The pair may slide to the 50-day SMA ($4.70). On the contrary, a break above the channel could open the doors for a rally to $8.56 and then to $10.

Related: 5 things you didn't know about Bitcoin halvings and BTC price

Cardano price analysis

Although Cardano (ADA) traded below the $0.46 support for a few days, the bulls did not allow the price to slip below the April 13 low of $0.40.

ADA/USDT daily chart. Source: TradingView

The failure to sink the price lower may attract buyers who will try to push the price to the 20-day EMA ($0.52). If the price turns down sharply from the 20-day EMA, it will signal that the rallies are being sold into. That could pull the price to the $0.46 to $0.40 support zone. A slide below the zone could result in a fall to $0.35.

Contrarily, if buyers shove the price above the 20-day EMA, it will suggest that the correction may be over. The ADA/USDT pair could then attempt a rally to the 50-day SMA ($0.63).

Avalanche price analysis

Avalanche (AVAX) is consolidating in a downtrend, indicating that the bulls are trying to arrest the decline.

AVAX/USDT daily chart. Source: TradingView

The zone between $32 and $27 is likely to act as a strong support. If the price rebounds off the support zone with strength, the AVAX/USDT pair could rally to the downtrend line. Buyers will have to clear this obstacle to signal that the correction may be over. The pair may then attempt a rally to $50.

Contrary to this assumption, if the price turns down and breaks below $27, it will indicate that the bears have seized control. That could accelerate selling and sink the pair to $20.

Shiba Inu price analysis

Shiba Inu (SHIB) has been hovering near $0.000022 for the past few days, indicating a balance between buyers and sellers.

SHIB/USDT daily chart. Source: TradingView

If the price turns down and skids below $0.000020, the SHIB/USDT pair could start the next leg of the down move to $0.000017. This level may act as a strong support, but if the bears prevail, the pair may complete a 100% retracement of the latest leg of the rally and plummet to $0.000010.

The advantage will tilt in favor of the buyers if the price rises and maintains above the downtrend line. The pair could gradually rise to $0.000033 and after that attempt a rally to $0.000039.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Cryptocurrency exchange Binance recently launched an early access incentive and rewards program for web3 users featuring airdrops and quests. 

Dubbed “Megadrop,” the new program is a token launch platform where users “can subscribe BNB to Locked Products and/or complete tasks in their Web3 Wallet for early access to rewards from selected Web3 projects before their tokens are listed on the Binance Exchange,” according to a Binance blog post.

Source: @binance on X.com.

Essentially, Megadrop will function as a loyalty and rewards program with incentives for participation. Users who sign up for the platform will be given the opportunity to stake Binance’s BNB token prior to the launch of projects on the platform.

Users will also have access to quests. The blog post didn’t specify how quests will work but, in all likelihood, they’ll involve performing engagement tasks such as watching educational videos about web3 products or signing up for mailing lists.

While similar platforms exist throughout the industry — Coinbase Earn, for example — Binance’s Megadrop appears to separate itself from the herd with a few key differences.

Where typical learn-to-earn and staking services tend to be periodic or one-offs, Binance is incentivizing users to engage in long-term participation with an early access platform.

According to the blog post, Megadrop rewards increase as users participate in more events and for longer periods of time:

“Longer subscriptions yield higher scores. … Users will receive a Web3 Quest Bonus and a Web3 Quest Multiplier when they complete all the designated Web3 Quests with the minimum requirements specified.”

The new platform’s launch comes as the company moves on after paying $4.3 billion in fines and restitution as part of a plea deal with the U.S. government after the company’s former CEO, Changpeng (CZ) Zhao, pleaded guilty to running afoul of anti-money laundering laws.

Related: Binance’s US settlement was a ‘turning page,’ says exec

CZ is currently slated for sentencing in the U.S. on April 30 after being found guilty of money laundering. Despite the former executive’s current predicament, Binance co-founder He Yi says CZ is in “a positive situation.”

According to analysts, CZ faces anywhere from 12 months to 10 years in federal prison.

Welcome to the History of Crypto, a Cointelegraph series that brings readers back to the most significant events in the crypto space. Powered by Phemex, the timeline allows crypto community members to explore and look back at the important events that shaped the industry into what it is today.

This article explores the period following November 2022, when the FTX exchange collapsed, giving rise to one of the most notorious crypto winters in the history of digital assets.

The period after the collapse of the FTX exchange is known as one of the darkest times in crypto history.

The downfall of FTX and its over 130 subsidiaries catalyzed a chain reaction of bankruptcies and layoffs among Web3 firms, giving rise to one of the longest crypto winters, that saw Bitcoin's (BTC) price bottom out at $16,000.

EXPLORE THE HISTORY OF CRYPTO

Following the bankruptcy that caused a $8.9 billion loss of investor funds, regulators were forced to take action and develop more investor safety-oriented frameworks emphasizing transparency for crypto exchanges and service providers.

United States regulators issued some of the most significant criminal fines in history to Binance despite no evidence of user fund misappropriation. They also fined smaller exchanges in a hawkish effort to prevent potential FTX-like meltdowns.

Explore the History of Crypto. Source: History of Crypto How did FTX collapse?

The now-infamous FTX exchange collapsed nearly on and a half years ago, sending shockwaves across global crypto markets and wiping out tens of billions of value within a few days.

In essence, FTX collapsed due to user fund misappropriation, which resulted in billions worth of trading losses for its sister company, Alameda Research. The quantitative trading firm used FTX customer funds that Bankman-Fried transferred without consent to fund Alameda’s trading losses, now referred to as the Alameda gap.

Before getting its quantitative trading protocol from Gary Wang, Alameda lost over $500,000 every day throughout an awful month, claimed Michael Lewis in his biography about Bankman-Fried.

The user fund misappropriation started to unravel in November 2022 when it was revealed that a large portion of Alameda’s balance sheet was made up of FTX’s FTT token.

The revelation led to a large sell-off, which caused the FTT token price to plummet, raising widespread concerns about the financial health of FTX and Alameda Research. This led to mass customer withdrawals of up to $6 billion within three days. FTX could not meet the withdrawals as it was forced to suspend them.

FTX filed for bankruptcy on Nov. 11, 2022. Bankman-Fried was arrested in the Bahamas on Dec. 12, 2022, after United States prosecutors filed criminal charges against him. He was extradited to the U.S. in January 2023. Bankman-Fried was sentenced to 25 years in federal prison on March 28, 2024.

100 Years in Jail?! SBF Trial Verdict Explained. Source: Cointelegraph

Related: Alameda Research FTT token transfer from September fuels wild speculations

The regulatory crackdown after the FTX collapse

The collapse of the FTX exchange triggered a hawkish response from the United States Securities and Exchange Commission (SEC), which started a broader crackdown on crypto exchanges to avoid another potential FTX-like meltdown.

In June 2023, the SEC sued Coinbase and Binance Exchange for alleged securities violations. In the lawsuit against Binance, the SEC alleged that the company and its founder, Changpeng Zhao, had misappropriated billions of user funds.

EXPLORE THE HISTORY OF CRYPTO

Despite no evidence of user fund misappropriation, Binance was charged with violating Anti-Money Laundering laws and settled to pay one of the most significant criminal fines in history worth $4.3 billion.

As for the Coinbase lawsuit, the SEC claimed that the exchange operates as an unregistered exchange, broker, and clearing agency and violated securities laws by listing 13 tokens it alleged were securities, according to the lawsuit filed in June 2023.

Coinbase sought an order to drop the case, questioning the SEC’s authority over crypto exchanges. The exchange’s motion to drop the legal case was dismissed on March 27, allowing the SEC to proceed with its lawsuit against Coinbase.

How the U.S. SEC is waging an undeclared war on crypto. Source: Cointelegraph

The immediate regulatory response focused on prosecutions and enforcement rather than implementing blockchain-specific regulations, according to Ashar Burney, the legal head of TDeFi, who told Cointelegraph:

“This approach reflects a broader trend where regulators address fraudulent activities within the crypto space through existing legal frameworks, emphasizing enforcement against criminal behavior rather than introducing new regulations specific to blockchain technologies.”

Burney added that the FTX collapse was primarily a “case of criminal fraud,” not a lack of regulatory frameworks.

Related: Paradigm leads $225M funding round for new ‘Solana killer’ L1

How the regulatory landscape evolved post-FTX

Following the FTX collapse, crypto exchanges have started striving for more transparency, spearheaded by Binance, the world’s largest exchange.

By the end of November 2022, Binance launched its Proof-of-Reserves (PoR) system, which shows the amount of underlying assets the exchange holds on behalf of users. This third-party audit aims to show users that the exchange can meet any potential withdrawal requests. Binance’s main assets were overcollateralized by at least 102% as of April 12, according to its PoR page.

Following Binance’s push for transparency, other top exchanges have followed suit, including Coinbase, OKX, Crypto.com, Kraken, and Bybit.

How CZ built Binance and became the richest person in crypto | Crypto Stories Ep. 16. Source: Cointelegraph

Despite the new PoR audit systems, investors still need to conduct due diligence as FTX had also performed numerous financial audits that didn’t uncover the fraud, according to TDeFi’s legal head, Burney, who told Cointelegraph:

“SBF's firm underwent multiple audits by reputable auditing firms, demonstrating the complexity of identifying fraudulent behavior even with established compliance measures. Overall, investors' safety is not significantly different, especially considering that the crypto industry experiences lower fraud rates compared to traditional fintech and investment sectors.”

Beyond the transparency efforts of crypto exchanges, governments worldwide have also taken a more collaborative approach to regulating the nascent crypto industry, according to James Wo, the founder and CEO of DFG, who told Cointelegraph:

“Although countries have different stances with some being more crypto-friendly than others, they all work towards the same goal of providing a framework that prevents Anti Money Laundering (AML) with ample Know Your Client (KYC) processes in countries that do not outright ban it.”

In May 2023, the European Council adopted the first comprehensive legal framework for the crypto industry. The Markets in Crypto Assets (MiCA) framework aims to protect investors through more rigorous transparency standards and AML rules.

EXPLORE THE HISTORY OF CRYPTO

Thanks to the new MiCA bill, crypto exchanges will become fully regulated entities from the end of 2024, Vyara Savova, senior policy lead at the European Crypto Initiative, told Cointelegraph:

“2024 is the year of MiCA, and the whole EU will now have a comprehensive legal framework for crypto-assets, crypto-asset services, and crypto-asset service providers (also known as CASPs). Crypto exchanges are a type of CASP under MiCA and will become fully regulated in December 2024. “

While MiCA is a significant step for the global regulatory landscape and investor safety, its efficiency will depend on the member state implementations for each country, explained Savova:

“An important aspect that is often overlooked is the role of member state laws in applying this regulation, as these laws will create the supervisory framework in the respective country.”

Hong Kong and Dubai have also introduced crypto regulations that favor innovation in an effort to become known as global crypto hubs. Yet, the most regulatory sign came in January 2024, with the approval of the spot Bitcoin exchange-traded funds (ETFs).

Related: TradFi Wall Street firms pushing for Ether ETF approval, says former Binance Labs head

Bitcoin ETFs signal an innovation-friendly approach, but investors are not necessarily safer

After months of regulatory battles, the ten spot Bitcoin ETFs were approved by the United States SEC on Jan. 10, enabling traditional investors to gain exposure to BTC through publicly-traded funds.

The approval of the ETFs is a positive development signaling that signals an innovation-friendly approach from U.S. regulators for the future, according to DFG’s Wo, who told Cointelegraph:

“Despite the lawsuits to multiple crypto exchanges, the SEC previously approved the Bitcoin ETF with the Ethereum ETF being filed. This is a signal that governments are more in favor of regulation than outright banning, as seen in many other countries regulators which provide tight regulations for the approval of licenses to operate crypto-related businesses.“

The U.S. ETF approval has also inspired other jurisdictions to follow suit. The Securities Regulatory Commission (SFC) of Hong Kong could approve the first four spot Bitcoin ETF applications by April 15, after the financial regulator has reportedly accelerated the approval process for the first ETFs.

Spot Bitcoin ETF Approved: Impact on Investments with Mark Yusko. Source: Cointelegraph

Related: Hong Kong regulator fast-tracks Bitcoin spot ETF approvals

Despite significant global regulatory developments like ETFs and more regulations around crypto exchanges, investors aren’t necessarily shielded from another FTX-like meltdown, according to DFG’s Wo:

“Although regulation and compliance have stepped up in regulated entities, it does not mean it will not happen again even if we can expect better risk management from these entities. Overall, self-custody will still be the safest as you are in control of your own funds as long as you take sufficient risk mitigations of not clicking on phishing or scam links that may drain your wallet.”

Related: FTX moves to offload 8% stake in Anthropic

Looking ahead to 2024 and beyond

The FTX collapse inspired widespread collaboration between global regulators to prevent another high-profile meltdown. Some of the world’s leading economies have developed new regulations for crypto exchanges, while Europe passed the first comprehensive framework for the crypto industry, setting the benchmark for other regulators.

The European MiCA framework is still a work in progress. The next major part of the bill will set a marketing communication standard for crypto exchanges, which could impact crypto service providers in Europe, according to the European Crypto Initiative’s senior policy lead, Savova, who told Cointelegraph:

“What will develop throughout 2024 is the CASP and, therefore, exchanges’ marketing communications and what will be allowed. It’s a very impactful topic that emerged in France and is now being discussed at the EU level through the Retail Investment Strategy.”

The second consultation package for reverse solicitation guidelines under MiCA is set to end on April 29. The outcome of the consultation will be influential for MiCA’s final implementation in December, according to Savova:

“[This will determine] how exchanges and other CASPs from countries outside of the EU might provide services to EU citizens without a license and how these services should be marketed in Europe. The outcomes of this consultation will be critical for MiCA’s implementation in December.”

According to TDeFi’s Burney, crypto service providers could still see more regulatory scrutiny, including more stringent disclosure and compliance requirements, leading to a more mature industry. Burney said:

“These developments reflect a shift towards a more mature regulatory framework aimed at balancing innovation with regulatory oversight. However, obtaining a license in the US may not entirely prevent exchanges from operating globally and serving US customers, highlighting the challenges of regulating a decentralized and global industry.”

Crypto Bull Market Phase 2: What to Expect. Source: Cointelegraph

Related: Binance Labs shifts investment focus to Bitcoin DeFi

EigenLayer, explained

EigenLayer aims to eliminate a critical barrier many new DApps face by providing developers with an established security framework.

Ethereum has come a long way since its launch in 2015. It has held its position as the most influential blockchain, successfully transitioned from proof-of-work (PoW) to proof-of-stake (PoS), and is the foundation for many innovative crypto projects. 

One such project is EigenLayer, a decentralized Ethereum staking protocol that provides developers with an established security pool. This EigenLayer explanation details staking and other vital parts of the Ethereum staking protocol.

The EigenLayer protocol is an Ethereum-based project aiming to improve the network’s PoS consensus through a process called Ethereum restaking. The EigenLayer team claims to solve many existing Ethereum security inefficiencies, such as requiring every protocol to manage its own security and scalability processes.

However, before discussing the EigenLayer restaking process, defining the traditional Ethereum staking process is essential.

What is staking?

Staking is one of crypto’s most popular features, providing traders with a reliable passive income stream.

Staking involves locking one’s cryptocurrency in a staking pool, exchange or smart contract. A user earns interest on their staked assets, and in turn, the network utilizes these assets to cultivate network security. The more funds a user stakes, the more passive income they make.

High-value stakeholders often become validators who participate in transaction validation and vote on upcoming or existing proposals to improve the network. The idea is that stakers are more invested in protecting the blockchain network and less likely to become bad actors. Staking incentivizes good behavior as well. Validator rewards on Ethereum are slashed if a validator fails to participate in the network’s best interest.

Decentralized staking is seen as the more accessible form of transaction validation when compared to PoW. PoW has miners racing to be the first block validator to earn a reward. This process has miners spending thousands on computer equipment to increase their hash rates, meaning those who spend the most earn the most. As these users continue to amass tokens, it becomes even more difficult for new miners to get involved.

Staking on Ethereum is similar to holding a savings account in a traditional bank and requires much less effort from the user. Thanks to the advent of staking pools, even users without much money to spare can begin their staking journey.

What is restaking, and how does EigenLayer support it?

Restaking is EigenLayer’s take on traditional staking. It provides new ways for users to generate passive income while increasing network security. 

Restaking, in the case of EigenLayer, is the act of taking staked Ethereum and repurposing it to increase security on other protocols — essentially creating a pool of restaked assets from which other decentralized applications (DApps) can pull. Users can opt-in to EigenLayer’s restaking smart contract through their already staked Ether (ETH) or through a liquid staking token (LST). 

When a user stakes funds on an Ethereum protocol, most projects offer liquid staking tokens to represent those staked assets — a sort of receipt. These tokens allow one to keep using their funds in other ways, such as restaking them through EigenLayer via a process called LST restaking without unstaking their original assets.

Alternatively, users can allow EigenLayer’s smart contracts to work with their already-staked ETH. Restaking with already-staked ETH is called native restaking. If a user participates in native restaking, the network will add those assets to the protocol’s security pool. How safe is EigenLayer? It’s about as secure as the size of its security pool.

Applications built on EigenLayer are called actively validated services (AVSs) and can be anything from a bridge to a DApp to an oracle. Developing on EigenLayer is cheaper and more efficient than developing on a separate protocol, as EigenLayer has an established trust network in place through restakers. Developing elsewhere requires building a trust network from scratch.

That said, AVSs aren’t randomly harnessing services from EigenLayer. Instead, there’s an intermediary called a node operator, a volunteer opting to help manage the network. Much like an Ethereum validator, an operator can be a single user or an organization. 

Operators can build their own AVSs or provide services to other existing AVSs while receiving rewards in return. However, operators are also subject to an AVS’s slashing requirements should they fail to perform their duties.

Moreover, operators can be restakers, or restakers can choose to delegate their restaked assets to an operator. Either way, restakers have complete control over which services their assets go toward. As a result, EigenLayer creates a sort of free-market governance system. Developers build on EigenLayer to harness its established security, while operators and restakers earn rewards for managing and providing said security. 

How do restakers manage their restaked assets?

EigenLayer streamlines asset management through its EigenPod solution.

Users must connect their wallet to the EigenLayer application and select the token they want to restake. First-time restakers must approve the process before depositing funds into EigenLayer’s restaking contract.

A restaker manages their restaked assets through an EigenPod, a smart contract created during the restaker’s initial restaking process. An EigenPod is essentially a hub for the restaker to manage restaking processes, withdrawals and more. There can only be one EigenPod per Ethereum wallet address.

Restakers can visualize their network contributions through EigenLayer’s restaked points. Users earn restaked points every time a block is validated from their restaking date onward. EigenLayer calculates a user’s restaked points through a proprietary formula that factors the amount of restaked assets and the time they’ve been locked in. The formula views native restaked ETH and restaked LST equally.

Users can withdraw their staking rewards on EigenLayer through a partial or full withdrawal process. Restakers who want to withdraw their earned rewards but continue providing services go through a partial withdrawal process. Partial withdrawals require on-chain proofs, and their gas fees can be expensive. Restakers can request one partial withdrawal every four to five days, and withdrawn funds must go through an additional escrow period before appearing in the restaker’s wallet.

Full withdrawals are for restakers who no longer want to provide their services. Otherwise, the process is similar to a partial withdrawal, requiring on-chain proofs and an escrow period for withdrawn funds. If a restaker accidentally initiates a full withdrawal, they can redelegate their assets via EigenPod’s “redeposit” button. Restakers can initiate either withdrawal process through their EigenPod’s “Unstake” section.

Pros and cons of EigenLayer

EigenLayer features innovative solutions, though this Ethereum network upgrade also introduces its own problems.

EigenLayer hopes to innovate on Ethereum’s tried-and-true proof-of-stake feature. In some ways, it is doing just that. However, its innovations aren’t perfect and can lead to new problems.

Pros

Additional passive revenue

Since restakers can use their staked assets in additional ways, they have the potential to earn higher rewards than traditional staking methods.

Improving developer success rates

EigenLayer’s security pool eliminates a key barrier many new projects struggle to overcome. Now, developers can focus on providing valuable services without worrying about establishing trust.

By removing one of the most significant barriers that newer projects face, EigenLayer could lead to genuinely innovative layer-2 projects. 

Cons

Higher barrier to entry

While EigenLayer benefits new DApps by providing them with established security, restaking to participate in the network may overwhelm some users. Many crypto exchanges offer staking as a built-in service, simplifying node setup and maintenance for users on the network. That accessibility comes at the cost of technical know-how. If less technical users are already comfortable with the staking process, they will unlikely be interested in restaking.

Increased risk

EigenLayer AVSs have slashing rules that are different from traditional staking. Since restakers hold assets in traditional staking and restaking avenues, they’re doubling their slashing risk should they fail to uphold their duties.

Not only this, but restakers are doubling their exposure to security risks. Stakers already trust Ethereum’s smart contract code when they stake assets, and restaking requires trust in EigenLayer’s development prowess. This isn’t to mention the quality of EigenLayer AVSs. 

Fortunately, both Ethereum and EigenLayer’s code is entirely open-source. Knowledgeable developers can assess this code before risking their assets.

The Open Network's Pavel Durov committed the future of messaging application Telegram to blockchain technology, announcing major plans to tokenize features, share ad revenue with users and onboard Tether’s stablecoin at Token2049.

Speaking in front of a packed house in Dubai, Durov sang the praises of blockchain’s ability to promote freedom and privacy before outlining ambition plans to build out functionality on The Open Network (TON).

“The reason we love blockchain. It’s a technology of freedom. We care about freedom. Even our logo, the paper airplane symbolizes freedom to move in three dimensions,” Durov said.

The founder of the app, which reportedly has over 900 million monthly users, said the company strives to give its users the ability to build tools, apps and businesses on Telegram.

Related: TON continues to attract Web3 firms as Telegram Ad Platform goes live

Durov said Telegram has adopted a different approach to monetizing user bases than other major messaging and social media platforms, which sell user data to advertisers. Telegram recently announced plans to share revenue with content generators on its platform through its Ad Network.

Durov described the move as one of the most generous revenue-sharing models in the history of social media. He also said that 50% of the revenue Telegram receives from displaying ads and broadcast channels would be shared with channel owners and content creators using TON’s network:

“All these transactions, the payments for ads, withdrawals of ads are powered by blockchain. We will use the TON blockchain exclusively for that.”

Durov estimates that the advertising market running on blockchain rails could be worth tens of billions of dollars and that users, from owners of large group chats to content creators, will get a decent share of the revenue.

Related: Crypto-like communication devices could break gov’t surveillance — Telegram founder Durov

The use of a blockchain protocol will also allow Telegram to mitigate the limited in-app purchase mechanisms enforced by Apple and Google regarding payment processing.

Despite this, Telegram has allowed app developers and merchants to sell physical goods and services by integrating 40 payment providers, including the likes of Stripe.

Pavel Durov announced plans to allow the tokenization of stickers and emojis on Telegram using the TON blockchain. Source: YouTube

Durov also said that Telegram has already experimented with tokenization, becoming the first social media platform to tokenize its user namespace. According to the founder, this in-platform market generated $350 million in sales and he said that tokenizing other elements of its platform is in the pipeline:

“The next step that we are going to undertake is tokenizing Telegram stickers.”

Durov said that Telegram needs the scalability afforded by TON’s network, which can process tens to hundreds of millions of transactions in the future.

Following Durov’s address at the conference, stablecoin operator Tether announced the launch of U.S. dollar-pegged USDT (USDT) token on the TON network. Tether also unveiled the launch gold-pegged Tether Gold (XAUT) stablecoin on TON.

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

Over the last couple of months, the crypto world has been abuzz with anticipation for the upcoming Bitcoin halving event.

This pivotal moment, expected to occur on April 20 (based on the UTC time standard), will once again cut the reward for mining new Bitcoin blocks in half, further reducing the supply of the world’s first and largest cryptocurrency, Bitcoin (BTC).

While many investors and traders are speculating on the potential price implications, a growing movement within the industry is shifting this focus toward education and adoption.

Whether through online courses, podcasts, workshops or good old-fashioned books, the push for increased Bitcoin education seems to be fueled by a shared belief that understanding begets trust.

There are a number of initiatives spearheaded by businesses, individuals and educational institutions that promote a deeper understanding of Bitcoin and the digital asset ecosystem as a whole.

Binance Academy

Binance Academy is the official education platform offered by cryptocurrency exchange Binance. It provides a suite of resources to promote the understanding of Bitcoin and its associated technologies. For instance, those new to the world’s pioneering cryptocurrency can sign up for the free “Bitcoin Basics” course, which offers a structured introduction covering the asset’s history, underlying blockchain technology, mining processes, wallets and more.

Binance Academy has prepared several in-depth explanatory articles to help the community grasp the significance of this supply-altering phenomenon. The pieces delve into the mechanics of halvings, their impact on Bitcoin’s issuance rate, and historical price effects surrounding past events.

For traders seeking to analyze Bitcoin’s market movements, the platform provides targeted technical analysis content. A dedicated series explores charting techniques, indicators and other strategies specifically applied to Bitcoin trading and price forecasting. Complementing this is a wide array of video tutorials and articles that unpack various concepts like wallets, forks, mining and more.

Lastly, Binance Academy also maintains a living glossary of Bitcoin-related terminology to ensure key concepts are readily accessible. Through this multiformat approach spanning courses, articles, videos and reference tools, the platform strives to elevate Bitcoin knowledge across skill levels.

Jameson Lopp — Lopp.net

Celebrated cypherpunk, software engineer, columnist and Bitcoin advocate Jameson Lopp has created a comprehensive repository of Bitcoin-related resources on his personal website, Lopp.net, aimed at furthering education and understanding of the pioneering cryptocurrency.

One of the standout offerings on Lopp’s site is his curated “Bitcoin Resources” page, which compiles a vast collection of links and materials covering everything from Bitcoin’s fundamentals (including the halving) and its codebase to developer tools, research papers and educational courses.

Source: Jameson Lopp

Complementing this is Lopp’s article chest, where he regularly publishes pieces unpacking complex Bitcoin concepts and analyzing industry developments while also sharing his expertise as a seasoned cypherpunk. The posts tackle intricate topics like Bitcoin privacy, self-custody best practices and the philosophy behind the technology’s decentralized ethos.

For those seeking a more structured learning experience, Lopp’s website also hosts comprehensive video recordings, allowing viewers to gain insights into Bitcoin’s technical operations from many of the industry’s foremost educators.

Coinbase Learn

Like Binance, crypto exchange Coinbase has recognized the importance of education in driving mainstream adoption. To this end, the company has dedicated the “Learn” section on its website to hosting a wealth of resources that cater to audiences across the crypto knowledge spectrum.

For those just beginning their journey, the “crypto basics” category provides foundational knowledge through beginner-friendly articles explaining concepts pertaining to Bitcoin, cryptocurrencies and blockchain technology. There are also practical guides on setting up wallets and securely sending and receiving digital assets.

As users progress on their learning paths, more advanced topics are covered, including in-depth explainers on major events like Bitcoin’s recurring halving events. The “explore” subsection allows curious learners to dive deeper into emerging trends, use cases, and innovative crypto applications.

Recognizing the importance of staying updated, there is a market updates section where users can find the latest news, analyses and expert insights into market movements.

MIT Bitcoin Club

Launched by one of the most prestigious institutions in the world, MIT’s BTC education program is designed to be holistic in its outlook. It covers a host of topics, ranging from the foundations of the Bitcoin network to more advanced concepts like the creation of decentralized applications atop the Bitcoin ecosystem and the design of hardware wallets.

Starting page for MIT Bitcoin Club's educational resources. Source: MIT

Additionally, there is also a free archive of some of MIT’s own cryptocurrency research and academic papers, providing readers with a technical understanding of experimental ideas permeating the Bitcoin and blockchain ecosystem.

In addition to these free offerings, there is also the option to take online classes, whose topics include cryptocurrency engineering and design, shared public ledgers, and blockchain entrepreneurship, among others.

BitDegree

BitDegree is an online education platform that aims to simplify and democratize access to the Web3 sector.

One of BitDegree’s flagship offerings is its Web3 Missions program. The initiative allows learners to earn valuable crypto rewards and nonfungible token (NFT) certificates by successfully completing various comprehensive examinations.

They cover a wide range of topics, from blockchain fundamentals to emerging trends (such as the aforementioned Bitcoin halving) and upcoming innovative applications within the decentralized web ecosystem. By incentivizing knowledge acquisition, BitDegree aims to foster a more educated, empowered crypto community.

Additionally, the platform hosts various campaigns in collaboration with established Web3 projects called LearnDrops. These typically involve interactive courses that introduce users to specific crypto platforms, protocols or services. Upon their completion, learners are rewarded with the project’s native tokens, NFTs or other incentives. Notable past collaborations include projects like the FIO Protocol, Ledger and PrimeXBT.

Furthermore, BitDegree offers resources spanning cryptocurrency basics, market news, practical tutorials and analyses.

Cointelegraph Learn

Cointelegraph’s own Learn section contains a variety of educational resources for newcomers and veterans of the cryptocurrency industry.

These include “how-to” guides for things like setting up a wallet, staking, getting into decentralized finance and trading Bitcoin options, to name a few.

Cointelegraph Learn also has an “Explained” section detailing complex concepts in the blockchain and cryptocurrency industry to make them more accessible and understandable to a wider audience.

The crypto glossary also explains the myriad of unique terms that are used every day in the cryptocurrency industry.

Cointelegraph's Crypto Glossary. Source: Cointelegraph

In short, there have never been more resources for crypto enthusiasts, traders or even the crypto-curious to learn more about digital currency. As events like the Bitcoin halving gain increasing public attention, demand for knowledge about the world's seminal cryptocurrency will also increase. 

Hedgey Finance, a token infrastructure platform, has suffered two parallel exploits amounting to a total of $44.7 million worth of lost funds.

Hedgey suffered an exploit worth over $42.8 million Arbitrum (ARB) tokens on the Arbitrum network, according to an April 19 X post by on-chain security firm Cyvers. The attacker has already deposited part of the funds to the Bybit cryptocurrency exchange.

Smart contract vulnerability. Source: Cyvers

Earlier, Hedgey protocol was hacked for a total of $1.9 million worth of crypto on the Ethereum network, according to an X alert by Cyvers.

Hedgey exploit alert. Source: Cyvers

Hedgey protocol confirmed the exploit, adding that it is actively working with auditors to understand the vulnerability behind the potentially ongoing attack. It said in an April 19 X post:

“We're investigating an attack on the Hedgey Token Claim Contract. If you have created active claims, please cancel them using the “End Token Claim" button…”

Shortly after Hedgey confirmed the exploit, scam accounts impersonating the protocol have started posting potentially malicious links under the thread, urging people to ask for a refund or revoke their smart contract approvals, pointing to suspicious links without connection to Hedgey protocol.

The exploit occurred hours before the much-anticipated Bitcoin halving, set to reduce block issuance rewards in half.

Related: New Bitcoin whales, ETFs are up only 1.6% in unrealized profit — Is the BTC bottom in?

Over $500 million stolen in crypto hacks in Q1 2024

The first quarter of 2024 saw 223 hacks and exploits that amounted to a total of over $502 million worth of stolen digital assets, according to the Hack3d report by on-chain security firm CertiK.

This represents a 54% increase compared to the first quarter of 2023, which saw a total of $326 million worth of funds stolen. January was the most lucrative month for hackers, who stole over $193 million worth of crypto in 78 on-chain incidents.

Hacks by type. Source: CertiK

As in previous quarters, compromised private keys remained the top attack vector, with over $239 million lost in 26 such incidents. Compromised private key exploits only account for 11.7% of all security incidents, according to CertiK.

On the bright side, over $77.9 million worth of stolen funds were ultimately returned in the first quarter, most attributed to the Munchables security incident.

A total of $1.8 billion was lost to crypto hacks and scammers in 2023, of which 17% can be attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi.

Related: Prisma Finance exploited in $10 million breach

Despite the difficulties faced by crypto community members who flew to the United Arab Emirates because of the Token2049 event, the number of attendees who persevered surprised community leaders who came to the event.

Bus stuck in the middle of the road. Source: Cointelegraph

On April 18, the attendees were met with blocked roads and challenges that could make many people just turn around and fly away from the country. 

Leaders in the space who were scheduled to have interviews with Cointelegraph were stuck in different airports and had to turn back because of the situation.

Tether CEO Paolo Ardoino had to wait an extra two hours in the sky because the plane was unable to land due to the storm. “I was quite lucky because I only spent two more hours in the sky,” said Ardoino.

However, after witnessing the number of people who still made it to the event, Ardoino expressed gratitude because of the type of people crypto community members were. He said:

“It’s a good sign that this industry is made by people who are willing always to gather, to discuss and keep pushing the industry forward. I’m grateful to see many people around.”

Ava Labs founder Emin Gün Sirer also shared the challenges their team went through as they went to the event.

“It was very difficult to come here. We were landing in the middle of the biggest storm ever. We spent five hours on what should’ve been a 20-minute landing,” he said.

Fully-packed main stage of Token2049. Source: Cointelegraph

Despite this, Sirer believes that coming was the right choice and that it was worth it. He said:

“We ended up going through a lot of water. My luggage and clothes were wet, but it was so worth it because the energy I see in the room right now is amazing.”

Among the attendees, almost everyone faced their own difficulties. Still, in the middle of the first day, the Token2049 team stopped accepting new registrations as all tickets were sold out.

Crypto community members indulged in the various activities available at the event. This included various content-packed talks, project booths, and networking.

Ultimately, the crypto community showed resilience amid a historic storm that made attending the event difficult.

The main purpose of the world’s largest stablecoin, Tether USD (USDT), is to help people in inflation-stricken economies protect their purchasing power, according to Tether CEO Paolo Ardoino.

In an exclusive interview with Cointelegraph, Ardoino said Tether’s main focus is to help the unbanked population who don’t have access to traditional banking gain access to USDT.

“[USDT] is a tool that helps people in places that have been forgotten by the banking industry. These 300 million people are of no interest to the banking industry. These are great people, but they cannot be onboarded by the banking industry because they are too poor to be of interest.”

Rampant inflation is forcing people in emerging economies to increasingly look for external financial alternatives, such as the U.S. dollar. This issue is especially pressing in Argentina, where the national currency lost 98% of its value against the dollar, according to Ardoino.

“What you want to do if you live in Argentina is to buy the U.S. dollar… We think about USDT as the tool that is helping people. So we have to be so focused on making it the safest that it can be. That's why we have T-bills, gold, and Bitcoin. But now our approach is to be 100% in T-bills in the next few quarters.”

Related: Tether USDT stablecoin goes live on TON blockchain

Tether is the world’s largest stablecoin with an over $109 billion market capitalization, compared to Circle’s USDC, with a $33 billion market cap in the second place, according to CoinMarketCap data.

Ardoino attributes Tether’s success to finding the right market fit, which is people who need access to financial services and U.S. dollars. In contrast, other stablecoin issuers are trying to sell their services to the legacy banking industry.  The CEO explained:

“So our biggest competitors focus on the banking industry as their customers. But the banking industry has already the best, the best access to the dollar. They have credit cards, debit cards, and banking rails. They work in jurisdictions like Europe and the U.S. where people don't need stablecoins.”

Stablecoin usage in Europe and the United States is “approaching zero,” explained Ardoino, adding that serving the world’s unbanked will remain a top priority for the stablecoin issuer:

“The people that need a stablecoin are the ones that live in emerging markets. And these people need stability. They need to know that whatever happens, they can redeem for $1.”

Tether completed the ‘gold standard’ security audit, the System and Organization Controls 2 (SOC) audit on April 1, This represents the highest level of security compliance that an organization can demonstrate.

Related: BlackRock ETF close to overtaking Grayscale, despite second-lowest daily inflows

Google appears to be promoting a malicious crypto website that directs users to a phishing website clone that drains users’ crypto through Google Ads, an online advertising platform enabling businesses to showcase ads on Google’s search engine results pages.

According to a report by BleepingComputer, threat actors have discovered a method to advertise a counterfeit version of Whales Market, an over-the-counter (OTC) cryptocurrency platform facilitating the trading of airdropped tokens.

The report indicates that the fake version is being advertised as a sponsored link at the top of Google search results.

Cointelegraph has verified that Google is currently promoting the counterfeit Whales Market as an advert. Although it displays a seemingly genuine domain address on the search results page, users are rerouted to [www.whaels.market] instead of the authentic [www.whales.market] upon clicking.

Fake version of Whales Market promoted by Google Ads   Source: Google

BleepingComputer also notes that the malicious actors have reportedly registered multiple domains mimicking Whales Market, including [www.whaless.market], which is already inactive.

The fake version replicates the interface of the authentic Whales Market site, deceiving users into connecting their digital wallets. However, malicious scripts are activated upon doing so, siphoning crypto from victims’ wallets.

This incident contributes to similar events where scammers have used Google’s platform to advertise deceptive services.

An example is the nearly $900,000 worth of crypto drained from one of the hot wallets belonging to billionaire investor and Dallas Mavericks owner Mark Cuban by an unidentified hacker.

Related: Scam crypto projects using stolen funds for liquidity disappear

In December 2023, Scammers used a wallet-draining service called “MS Drainer” to siphon approximately $59 million in crypto from victims over the past nine months.

The scammers used Google Ads to target victims with fake versions of popular crypto sites, including Zapper, Lido, Stargate, DefiLlama, Orbiter Finance and Radient.

While the individuals responsible for this recent phishing campaign are still unknown, Google appears to be taking action against scammers.

In April, Google filed a lawsuit against Chinese nationals Yunfeng Sun and Hongnam Cheung for deceiving individuals with counterfeit crypto investments through the Google Play store.

Wallet drainers have become a major problem in the Web3 ecosystem. In November 2023, the developer of the “Inferno” drainer claimed to be retiring after successfully stealing more than $80 million from victims during the software’s lifetime.

In March, the developer of “Monkey Drainer,” which had successfully stolen an estimated $13 million up to that point, also announced their retirement.

Magazine: Google sues crypto app scammers, Crypto.com in Korea

Institutional investors and Bitcoin exchange-traded fund (ETF) holders are barely up in unrealized profits, suggesting that this cohort is likely not to produce much selling pressure in the short term. So was the dip below $60,000 the local bottom for Bitcoin (BTC) price?

Bitcoin ETF holders only up 1.6% in unrealized profit

Short-term Bitcoin whales, or investors holding at least 1,000 BTC for up to 155 days have an unrealized profit of just 1.6% on their holdings, according to CryptoQuant data.

BTC Unrealized Profit Ratio for Whale and Miner Cohorts. Source: CryptoQuant

In contrast, the cohort of old whales holding at least 1,000 BTC for over 155 days has a 223% unrealized profit, according to Ki Young Ju, founder and CEO of CryptoQuant. Ju wrote in an April 19 X post:

“Not enough profit to end this cycle, [in my opinion].”

Unrealized profits for small miners are at 131%, while the cohort of big mining firms are up 81%. Despite the significant unrealized profit, the five largest mining firms have not been selling in anticipation of the Bitcoin halving.

Bitcoin selling by the top five mining firms slowed to a two-year low in the first quarter of 2024, when the five largest miners sold a total of approximately 2,000 BTC, according to an April 10 report by Bitwise.

Bitcoin Mined vs. Bitcoin sold by Top Five Miners. Source: Bitwise

Bitcoin price fell below $60,000 on April 16 and April 19, before bouncing back toward $65,000. So technical analysts are anticipating that the BTC price may have formed a “double bottom” pattern. 

BTC/USDT, 4-hour chart. Source: TradingView

Following this week’s dip, key technical indicators have also turned reset from overbought territory. Bitcoin’s relative strength index (RSI) on the daily chart, for example, is 46, which means that the asset’s price is neutral, down from 76 on March 17, when Bitcoin was overbought.

BTC/USDT, 1-day chart. Source: TradingView

The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.

Is the Bitcoin bottom in?

Bitcoin’s retrace to below $60,000 earlier this week may have marked the local bottom for the market, argues Arthur Cheong, founder and CIO of DeFiance Capital. Cheong wrote in an April 19 X post:

“Very high chance that was the local bottom.”

Additionally, Bitcoin price broke out from a significant channel on the 4-hour chart. This suggests that $72,000 could be up next, according to popular crypto trader Satoshi Flipper’s April 19 X post.

BTC/USDT, 4-hour chart. Source: Satoshi Flipper

Institutional net inflows from the ten U.S. spot Bitcoin ETFs have turned negative on the week of the halving. The Bitcoin ETFs saw over $147 million worth of cumulative net outflows on April 18, according to Dune.

Bitcoin ETF Net Flows. Source: Dune

The slowing ETF inflows were the main reason behind Bitcoin’s downward price action, which is set to turn bullish with the upcoming halving, according to Denis Petrovcic, CEO and founder of Blocksquare. He told Cointelegraph:

“While some might anticipate a drop post-halving, the sustained institutional interest and decreased block rewards should keep BTC prices stable or slightly bullish, avoiding the typical 'sell the news' fallout.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Love them or hate them, memecoins are all the rage in 2024. Despite the inherent risks of aping a new coin, Avalanche founder Emin Gün Sirer believes they are bringing value and new users into the cryptocurrency ecosystem.

Speaking exclusively to Cointelegraph report Ezra Reguerra at Token2049 in Dubai, Gün Sirer weighed up the benefits and drawbacks of the rise of memecoins across several blockchain protocols. From Bitcoin, Ethereum, Solana to Avalanche, memecoins have made fortunes and ruined portfolios in recent months.

“They’re great for the space because they bring people in, they keep them excited, occupied and concentrated on what the technology can do,” Gün Sirer said.

The CEO of Ava Labs conceded that many critics argue that memecoins bring no value to the ecosystem, just as the rise of nonfungible tokens had detractors. Gün Sirer said their value is not tied to the prospect of making fortunes but to attracting newcomers to the space.

Cointelegraph's Ezra Reguera (l) alongside Emin Gün Sirer at Token2049 in Dubai. Source: Cointelegraph

“As someone who is very conservative financially and has been in this space for a very long time, I spent a fair bit of time criticizing Dogecoin and Shiba Inu. But you realize after a while that memecoins serve a purpose, and that purpose will not be obvious to boomers,” Gün Sirer said.

The former Cornell University professor sees memecoins as an opportunity for younger, risk-taking crypto enthusiasts to signal their aptitude for betting on the right projects.

“What is that purpose? That purpose is social signaling. In the same way that some people use a Bored Ape Yacht Club NFT as a profile picture, they’re saying I made so much money off trading that I can afford this,” Gün Sirer explained.

The Ava Labs CEO said that most memecoin traders are not holding tokens long-term and that the nature of the emergent trend relies on the ability to constantly adjust to the movement of value between different memecoins.

“They don’t see it as an investment in that fashion. They see it as a transitory phase. It’s like riding a bike. It’s a dynamic equilibrium. you have to constantly make corrections.”

Gün Sirer conceded that luck also plays its part as traders jump from coin to coin. “You have to be at the forefront of that community movement. You have to guess right. It’s not easy to do, and not everyone can do it,” he said.

This is also why memecoins have “such a premium associated” with people who understand these memes and act early on projects. Gün Sirer said Avalanche has attracted a thriving memecoin culture on its protocol.

The founder said the Avalanche Foundation was one of the first cryptocurrency ecosystem players to endorse memecoins and wants to see the community grow publicly. He cited an influx of users to Avalanche as a direct result of memecoins.

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

Tether stablecoin operator is strengthening ties with Telegram’s Web3 ecosystem by launching its stablecoins like Tether (USDT) on The Open Network (TON).

Tether Operations announced on April 19 the launch of its U.S. dollar-pegged Tether USDT stablecoin and the gold-pegged Tether Gold (XAUT) stablecoin on the TON blockchain.

The announcement came in conjunction with Tether CEO Paolo Ardoino and Telegram founder Pavel Durov’s keynote speeches at the crypto event Token2049 in Dubai.

At the same event, Tether also announced restructuring and introduced four new business divisions: Tether Data, Tether Finance, Tether Power and Tether Edu.

Tether CEO Paolo Ardoino at Token2049 in Dubai. Source: Tether

According to Ardoino, TON and Tether share the vision of an open and decentralized internet and a borderless financial system.

“The launch of USDT and XAUT on TON will allow seamless value transfer, increasing activity and liquidity while offering users a financial experience that can match those found in the traditional financial system,” the Tether CEO stated.

The new USDT-TON development marks another milestone in Tether’s expansion across multiple blockchains, bringing its coverage to 15 blockchains, including Tron and Ethereum.

The milestone is also essential for the TON network, which overtook Dogecoin (DOGE) as the ninth-largest blockchain and cryptocurrency by market value on April 16.

“The TON blockchain works with Telegram, meaning USDT and XAUT on TON have the potential to provide a simple, borderless experience for peer-to-peer payments for Telegram’s user base which Telegram estimates at over 900 million global users,” the announcement reads.

Related: Crypto-like communication devices could break gov’t surveillance — Telegram founder Durov

The unique thing about USDT’s launch on TON is that the TON ecosystem enables transfers between fiat and crypto and has ambitions to beat traditional finance in efficiency and ease of use, TON Foundation’s marketing head, Jack Booth, told Cointelegraph. He said:

“With built-in on-ramps for fiat at the launch and global off-ramps to bank cards and accounts coming soon. This will be the first time a mass audience will be able to use crypto infrastructure for global payments.”

USDT’s launch on the TON blockchain isn’t the first instance of the two ecosystems intersecting. Since at least 2023, USDT has been one of the default cryptocurrencies available on Wallet, a third-party custodial wallet available to Telegram users, alongside other coins like Bitcoin (BTC) and Toncoin (TON).

At the time of writing, the Tron network is the default blockchain available for USDT on Wallet, enabling TRC-20 USDT. According to Halil Mirakhmed, chief operating officer of Wallet in Telegram, TON-based USDT will become another option on Wallet, while TRC20 USDT will stay.

The Tron blockchain accounts for the biggest share of issued USDT at the time of the announcement, according to data from Tether transparency.

Screenshot from Wallet on Telegram messenger. Source: Cointelegraph

The news comes a few weeks after Tether launched a recovery tool allowing users to migrate USDT between different blockchains in March 2024. Previously, Tether’s USDT stablecoin crossed an all-time high market cap of $100 billion on March 4.

Additional reporting by Felix Ng.

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Every four years, the Bitcoin (BTC) community celebrates the Bitcoin halving. Many BTC market analysts view this as a quadrennial milestone event due to its historically bullish impact on the cryptocurrency market as a whole.

As the market edges closer to Bitcoin's fourth halving on April 19, let's dive into five fascinating facts about this phenomenon that even seasoned crypto-enthusiasts might not know.

Bitcoin price's up over 650,000% since the first halving

Historically, Bitcoin’s price has increased following a halving, though this largely hinges on the balance of supply and demand.

Historical data provides some insights: After Nov. 28, 2012, the day of Bitcoin’s first halving, its price climbed from $11 to the then-record high of $1,240 a year later. Similarly, after the second halving in July 2016, Bitcoin’s price surged from around $650 to a new record high of $20,000 in December 2017.

In May 2020, after the third halving, Bitcoin's price boomed from around $8,8000 toward $69,000 in November 2021. So, Bitcoin's returns since the first halving stand at an astounding 650,000%.

Multiple catalysts have spurred demand for Bitcoin following its halving events. For instance, during 2020-2021, a generally dovish stance by global central banks significantly contributed to Bitcoin's price rally.

Related: Crypto market ‘underestimates the long-term impact’ of Bitcoin halving: Bitwise

Halvings test miners' economic resilience

Each halving reduces the income that miners receive for verifying transactions, making profitability more challenging, especially for those with higher operational costs. This situation pressures miners to either upgrade to more efficient technology or cease operations.

For instance, after the third Bitcoin halving in May 2020, the average cost to mine one BTC rose, as the blue wave in the chart below illustrates. 

The rise in operations costs squeezed smaller players out of the market, potentially increasing network centralization. 

Pre-halving price rallies can be speculative

The anticipation of a Bitcoin halving often leads to speculative price increases.

For example, in the six months before the 2020 halving, Bitcoin's price increased by over 40%, from around $7,000 in November 2019 to approximately $10,000 by May 2020.

BTC/USD weekly price chart. Source: TradingView

These gains are often driven by speculative investors hoping to capitalize on the post-halving price increase, reflecting historical patterns and leading to volatility.

The theory behind a post-halving price increase is based on a supply shock. With each of the first three halvings, the daily production of Bitcoin decreased from 50 to 25 to 12.5, and most recently in 2020, to 6.25 BTC per block. This reduction can lead to significant price movements if demand remains strong.

For instance, the year following the 2016 halving saw a nearly 300% rise in Bitcoin's price, partly attributed to this supply shock.

Macroeconomic impact on Bitcoin halving cycles

The broader economic environment plays a crucial role in shaping the impact of Bitcoin halvings on its price.

For example, the 2020 halving coincided with the period of loose monetary policies, including near-zero interest rates in the U.S. This unique situation contributed to Bitcoin's appeal as a "digital gold," helping its price to soar from around $8,000 at the time of the halving in May 2020 to an all-time high of nearly $69,000 by November 2021.

BTC/USD vs. U.S. M2 supply weekly performance chart. Source: TradingView  Last Bitcoin halving will occur next century

Thanks to the halving process, the final Bitcoin is projected to be mined around the year 2140. After the last halving, miners will no longer receive block rewards in new BTC but will rely solely on transaction fees for revenue.

This shift could fundamentally change Bitcoin's security and economic model, influencing everything from miner participation to transaction costs.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Open-source governance and development tools remain prerequisites for governments, organizations and financial institutions that want to leverage blockchain technology.

Speaking exclusively to Cointelegraph at Paris Blockchain Week, Hyperledger executive director Daniela Barbosa discussed why open-source blockchain technology is a non-negotiable requirement for global institutions.

Barbosa, who also serves as the general manager of the Linux Foundation, said shifting critical financial infrastructure onto blockchain protocols hinges on the underlying network being open-source and open governance.

Open-source blockchain infrastructure like Hyperledger Besu operates on Ethereum, but enables public and private permissioned use cases. Source: Daniela Barbosa, Hyperledger Foundation.

“All around the world, organizations are selecting Hyperledger families to work with because they know it’s under the Linux Foundation. It’s under that open governance and open development, and it has the backing of major companies, governments and organizations,” Barbosa explained.

The Hyperledger director said that organizations tapping into their technology stack care not only that the tools are open-source but that there is open development and an active community of diverse maintainers and code contributors.

“Nobody wants to build new rails on code that one company owns. If that company goes out of business or changes its mind and says we’re no longer open source, you must pay license fees to continue using what you built.”

Barbosa also believes the Linux Foundation’s focus is on fostering open governance and the development of tools under its umbrella. She highlighted critical infrastructure like Linux Kernel’s use in a myriad of computing systems as an example of the embeddedness of open-source infrastructure.

“For the last 25 years, the Linux Foundation has been building open source communities and the most important code. Think Linux Kernel and Kubernetes. Essentially, all cloud computing runs on Kubernetes,” Barbosa said.

Related: Hyperledger onboards Citi, forms Besu working group headed by DTCC

The Linux Foundation GM said that several organizations have made efforts to open-source their software and code. However, she questioned whether making this information openly useable on GitHub does enough to make the tools openly developed and governed.

“That’s what the foundation does; we bring that open governance and development. Banks who compete with one another can come and collaborate. Companies like Accenture and IBM could collaborate on things for the community,” Barbosa explained.

Related: Tokenized asset market could hit $16T on public blockchains — RippleX VP

She added that this is an essential long-term consideration for the financial services industry in the event that regulators begin to probe who owns what and makes changes to the underlying code.

Barbosa also unpacked the development history of Hyperledger’s blockchain tools. Hyperledger Besu, a prominent Ethereum execution client, has become one of its most important infrastructure offerings.

Hyperledger Besu is an open-source Java Ethereum execution client. It offers public and private functionality and can run all Ethereum smart contracts. Users can use all Ethereum token standards, including nonfungible token standards ERC-20 and ERC-721.

Hyperledger Besu is among the top three Ethereum execution clients by user numbers. Source: Daniela Barbosa, Hyperledger Foundation. 

“By 2019, institutions were very interested in Ethereum ecosystem. This was the contribution that came in from Consensys around the time that the Hyperledger Foundation and Ethereum Enterprise Alliance joined forces,” Barbosa said.

Barbosa cited on-chain data that reflects 12% of Ethereum mainnet users running Hyperledger Besu as an execution client. Consensys Linea runs on the client, as well as Hedera Hashgraph.

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Can blockchain-based location mapping replace GPS mapping?

The global positioning system (GPS) calculates a person’s location, merges it with their environment, and displays it live on their mobile device via a real-time interface. Blockchain-based systems make it transparent and resistant to interference.

Using GPS-based navigation devices has become ubiquitous. People use tools such as Google Maps, OpenStreetMap and Foursquare, which rely on GPS. However, these services are plagued by a common fault — centralization — which makes them prone to opaque functioning and a central point of failure when it comes to hacking.

Blockchain technology offers several advantages over centralized systems and helps users tide over the limitations of traditional tools like GPS mapping. It improves transparency, increases resilience to hacking attempts and enables faster data processing. Unsurprisingly, several businesses have begun to use blockchain technology or are actively exploring its application.

The inefficiencies in current interactive maps

Though the current system of GPS-based interactive maps has been around for more than a decade, it has its share of inefficiencies. The data from these systems may sometimes be inaccurate and slow to load on devices.

GPS mapping entails processing and storing enormous amounts of data, usually on centralized servers, which might cause delays when accessing and sharing. As these technologies track a person’s whereabouts in real time, they may jeopardize user privacy. Traditional GPS system development and maintenance might also be prohibitively expensive for businesses.

Centralized mapping relies on proprietary data that may be outdated, failing to adequately reflect recent advances in roads, highways and infrastructure due to rapid change. GPS also faces difficulty in adequately mapping dense metropolitan areas. Creating interactive maps in regions with narrow lanes necessitates hard work from the mapping provider to document each area, which is both time-consuming and costly. Moreover, in civil applications such as surveying and transportation, GPS is unencrypted, lacks proof-of-origin or authentication features and is susceptible to cyberattacks, jamming and spoofing. 

Most mapping projects use crowdsourcing to enable their operations. In OpenStreetMap, for instance, a large number of contributors use GPS devices, aerial imagery and low-tech field maps to update map data. As the world pushes into the age of the Internet of Things (IoT), new crowdsourcing use cases are likely to emerge. However, problems like difficulty with accuracy and top-down policy implementation — which crowdsourcing projects have generally grappled with — may pervade. Blockchain-based mapping provides a viable alternative.

How blockchain augments interactive digital maps

The decentralized structure blockchain technology works on may provide effective answers to common difficulties in the usual interactive digital maps.

GPS mapping requires processing and storing large amounts of data, usually stored on a single or a few servers. The centralized nature of GPS mapping can lead to processing and delivery delays due to the strain of handling large amounts of data on limited servers. Decentralized apps (DApps), however, distribute data over several network devices (nodes), reducing latency and allowing for smooth data access.

As these applications rely on a decentralized network of nodes to continuously validate transactions and data updates rather than a single centralized authority, they can keep location information more current and accurate. The blockchain’s consensus process, which needs confirmation from several nodes before accepting changes, preserves data integrity and protects it from illegal changes.

Better privacy is another advantage of using blockchain for mapping. Traditional GPS mapping compels consumers to send their location data to major organizations, which can then monetize this geotagged information without the users’ consent. On the other hand, Blockchain functions without centralized authority that can make unanimous decisions, with data spread across multiple nodes, improving user privacy.

Can blockchains be used for spatial verification?

Spatial verification in blockchain is the process of authenticating the physical location of an event, object or user within a decentralized network.

Spatial verification refers to the confirmation that things are at the place where they claim to be. It is very useful in various industries, especially supply chain management.

For instance, when an Amazon delivery drone drops off a package at an owner’s door, the cost is charged to the owner’s account, relying on spatial verification. This eliminates problems with dishonest delivery persons and disagreements over charges for products that go missing.

Similarly, if someone has a broken windshield, they can use blockchain-based spatial verification to back up their insurance claim by sending a photo and documentation proving the time and location. This helps streamline insurance claim processing, reduces disputes and helps combat fraud.

When one creates a new bank account remotely, spatial verification allows them to verify the residence by merely being present at their home rather than providing proof of address such as utility bill copies.

A smart contract built in a blockchain-based proof-of-location (PoL) protocol would do spatial verification in these use cases. By providing a trustless way to prove location, PoL systems enhance transparency and efficiency in various industries.

What is proof-of-location protocol?

PoL uses a combination of cryptographic algorithms and consensus procedures to ensure the authenticity of a user’s location data without relying on a single authority.

In blockchain, PoL is the validation of a user’s physical position within a decentralized network. PoL assures the precision of location-based transactions and services in a range of applications, including supply chain management, asset tracking, decentralized finance and more. 

One frequent approach to PoL is to use a network of trustworthy nodes or oracles to collect and validate location data from an array of sources, including GPS satellites, WiFi signals and cellphone towers. These nodes then verify the user’s location by broadcasting signed messages or proofs to the blockchain. 

By implementing PoL into blockchain systems, users can securely engage with location-conscious smart contracts and DApps while maintaining privacy and trust. This technology expands the possibilities for location-based services and enables innovative use cases that require verifiable location data on the blockchain.

Core elements of a PoL smart contract

Location data submissions, verification mechanisms, data storage, and linking spatial verification to specific actions are the core elements of a PoL smart contract.

Location data submission

The smart contract would define how users or devices submit location data, including: 

Geotagged photos or videos.

GPS coordinates from a mobile device.

Sensor readings from IoT devices confirming a location.

Verification mechanisms

The contract would need ways to verify the submitted location:

Using reputation systems to assess the reliability of data providers.

Cross-checking with multiple data sources.

Employing cryptographic techniques to prevent location spoofing.

Data storage

A tamper-proof record would be created by securely storing the verified location data on the blockchain.

Triggering actions

The spatial verification would be connected to particular activities by the smart contract, such as paying out in supply chain situations, approving claims made by insurance, or granting access upon verification of physical presence.

What are the limitations of a proof-of-location protocol?

Despite its potential, PoL has several drawbacks, including reliance on external data sources, scalability difficulties and variable applicability across geographies, among others.

While PoL offers several advantages, it has significant limitations. One problem is the reliance on external data sources, which can lead to vulnerabilities for manipulation or spoofing. Additionally, PoL may face scalability concerns because confirming location data for a large number of transactions demands significant processing resources.

Moreover, PoL solutions may not be universally applicable across geographic regions or situations, resulting in inconsistent verification accuracy. There are no standardized methods for incorporating geographic locations, physical addresses or coordinates into smart contracts. 

Each developing platform has its own hardware infrastructure, protocols and business models. Addressing these restrictions is critical to the general adoption and efficacy of PoL in blockchain applications.