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EigenLayer on the brink of potential yield crisis

EigenLayer, the largest restaking protocol on Ethereum by total value locked (TVL), could be facing a “major” yield crisis, according to industry watchers. Due to EigenLayer’s rapid growth in TVL, the protocol may be outgrowing its Actively Validated Services (AVS), which could lead to a major yield reduction, according to Chudnov, a pseudonymous builder at 3Jane derivatives exchange. He wrote in an April 22 X post: “EigenLayer has >$15B in TVL but AVSs will actually need less than *10%* of that for security, which means yields may fall off a cliff.” EigenLayer removed the limits on all liquid staking tokens (LSTs) on April 16, according to an X announcement. EigenLayer launched on mainnet on April 10. When a user stakes an LST via EigenLayer, it is automatically delegated to a node operator, which uses the deposits to secure an AVS on EigenLayer while receiving staking rewards. Part of the staking rewards are passed on to the user. Yet Actively Validated Services on the protocol require much less staked Ether (ETH) for security, which could lead to issues in the future, according to Chudnov: “The problem is that none of the AVSs will come close to needing $1.5B in security let alone $15B. The whole point of Proof-of-Stake is that the value of the stake is higher than the potential profit earned from a validator behaving dishonestly.” Cointelegraph has approached EigenLayer for comment. EigenLayer is the second-largest protocol on Ethereum after liquid staking protocol Lido. EigenLayer’s TVL rose over 16% during the past month to the current $14.15 billion, according to DefiLlama. Related: EigenLayer becomes 4th largest restaking protocol, nears $7 billion TVL The issue could worsen as altcoin prices decline since AVSs won’t be incentivized to hold the excess on-chain capital. The first solution could be a series of token launches to increase the security budget requirements, which could temporarily be “kicking the can down the road.” However, intertwining EigenLayer into the decentralized finance (DeFi) ecosystem and creating more utility for LSTs could offer a permanent fix. According to Chudnov: “If [the EigenLayer] ecosystem can more deeply entrench itself in the DeFi ecosystem via [Liquid restaking tokens] and financial primitives on top then this is a much more guardable moat and gives AVS’s more time to figure things out at a fraction of the cost.” Solana: Expectation Versus Reality. Source: Cointelegraph Related: The 2024 Bitcoin halving is the “most bullish” setup for BTC price

EigenLayer, the largest restaking protocol on Ethereum by total value locked (TVL), could be facing a “major” yield crisis, according to industry watchers. When a user stakes an LST via EigenLayer, it is automatically delegated to a node operator, which uses the deposits to secure an AVS on EigenLayer while receiving staking rewards. The whole point of Proof-of-Stake is that the value of the stake is higher than the potential profit earned from a validator behaving dishonestly.”Cointelegraph has approached EigenLayer for comment. EigenLayer is the second-largest protocol on Ethereum after liquid staking protocol Lido. Related: EigenLayer becomes 4th largest restaking protocol, nears $7 billion TVLThe issue could worsen as altcoin prices decline since AVSs won’t be incentivized to hold the excess on-chain capital.

Bitcoin outperforms Tesla stock for the first time since 2019

Bitcoin's (BTC) price has finally outperformed Tesla's (TSLA) stock over the past five years in percentage terms. The electronic vehicle manufacturer has also missed out on a potential $1.27 billion in profit after selling a big chunk of its BTC holdings in 2022. BTC overtakes TSLA in long-term gains Over the past five years, Bitcoin's price has risen over 1,180%, while Tesla's stock price has risen over 806%, according to TradingView data. Looking at smaller time horizons, Bitcoin’s returns have outperformed TSLA over the past year, in particular. Bitcoin rose 139% while Tesla fell over 11% over the past 12 months, while year-to-date BTC is up 49% while Tesla’s stock price is down 42%. Such a stellar year so far for BTC has made it the world’s ninth-largest asset with a $1.3 trillion market capitalization, larger than Meta Platforms, Berkshire Hathway, Visa, or JPMorgan Chase. In comparison, Tesla is the world’s 21st largest asset, with a $455 billion market capitalization, according to Companiesmarketcap. World’s 10 largest assets by market capitalization. Source: Companiesmarketcap Tesla was among the first publicly traded companies to invest in Bitcoin back in February 2021, when the company bought over $1.5 billion worth of BTC, around the $36,000 mark. However, Tesla sold around 10% of its holdings in March 2021. Then, the company sold approximately 75% of its Bitcoin reserves in the second quarter of 2022. Had Tesla not sold, it would have made over $1.27 billion in profit, up over 84% on its initial investment, at current price levels. Tesla BTC Balance. Source: Arkham Intelligence Tesla currently holds 11,509 BTC worth over $766 million with Coinbase Prime Custody, according to Arkham Intelligence. Related: Bitcoin price breaks above $66K — Has BTC flipped bullish again? Bitcoin ETFs are the main reason why BTC is winning The approval of the ten United States spot Bitcoin exchange-traded funds (ETFs) was the main reason behind BTC price rising 60% so far this year, according to Andrey Stoychev, the head of prime brokerage at Nexo. He told Cointelegraph: “U.S. spot Bitcoin ETFs’ role in elevating Bitcoin to a genuine asset class has been invaluable, with pleasing trading volumes and capital flows since launch.” The ten Bitcoin ETFs amassed over 835,000 BTC in cumulative on-chain holdings, worth over $55.1 billion, according to Dune. Related: New Bitcoin whales, ETFs are up only 1.6% in unrealized profit — Is the BTC bottom in? 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.

Bitcoin's (BTC) price has finally outperformed Tesla's (TSLA) stock over the past five years in percentage terms. Bitcoin rose 139% while Tesla fell over 11% over the past 12 months, while year-to-date BTC is up 49% while Tesla’s stock price is down 42%. Tesla BTC Balance. Source: Arkham IntelligenceTesla currently holds 11,509 BTC worth over $766 million with Coinbase Prime Custody, according to Arkham Intelligence. Related: Bitcoin price breaks above $66K — Has BTC flipped bullish again?

Shiba Inu memecoin raises $12M from institutional investors

Canine memecoin project Shiba Inu (SHIB) has raised $12 million from a private token sale of its not-yet-released TREAT utility and governance token. According to the April 22 announcement, investors include Comma 3 Ventures, Big Brain Holdings, Cypher Capital, Shima Capital, Hercules Ventures, Animoca Brands, Morningstar Ventures, Woodstock Fund, DWF Ventures, Polygon Ventures, Stake Capital, Illuminati Digital Capital, Primal Capital, Mechanism Capital, DWF Ventures and Spirit Dao. All investors participating in the private token sale were outside the United States. The participation of venture capital firms and their partners will help the Shiba Inu project expand its network and “increase what Shiba Inu can truly be capable of for our community,” commented Shytoshi Kusama, the anonymous core developer of Shiba Inu. Kusama has maintained a low profile this year, with user reports of his sightings in New York, Japan and the Maldives. However, Kusama claims that he is on vacation to enjoy himself “just like everyone else.” That said, the core developer resurfaced on Telegram on April 21. "I have put my heart in soul to build this, and you are a worthless fudder who is not deserving of the breath God gave you,” wrote Kusama in response to a user’s critique. Shiba Inu staff explained that “TREAT is the final unreleased token by the popular meme brand that will unlock Shiba Inu’s newly announced blockchain featuring Fully Homomorphic Encryption (FHE).” Two months prior, Shiba Inu partnered with Zama.ai to deploy the FHE technology, which forms the basis of the protocol’s novel privacy layer, Tre. The fund will be used by Shiba Inu’s Panamian entity, Shiba Inu Mint S.A., to build the Treat platform. The project noted that possible applications of the technology include encrypted lending platforms, tokenized asset exchanges and encrypted machine learning models. Shiba Inu has been a top-performing memecoin, with a gain of 164% over the past year. Last December, the protocol introduced .shib domains for its tokenholders. Meanwhile, Shibarium, its layer-2 scaling solution, has surpassed over 1 million users since its inception. Related: Shibarium denies bridge issues, calls it FUD

Canine memecoin project Shiba Inu (SHIB) has raised $12 million from a private token sale of its not-yet-released TREAT utility and governance token. According to the April 22 announcement, investors include Comma 3 Ventures, Big Brain Holdings, Cypher Capital, Shima Capital, Hercules Ventures, Animoca Brands, Morningstar Ventures, Woodstock Fund, DWF Ventures, Polygon Ventures, Stake Capital, Illuminati Digital Capital, Primal Capital, Mechanism Capital, DWF Ventures and Spirit Dao. The participation of venture capital firms and their partners will help the Shiba Inu project expand its network and “increase what Shiba Inu can truly be capable of for our community,” commented Shytoshi Kusama, the anonymous core developer of Shiba Inu. The fund will be used by Shiba Inu’s Panamian entity, Shiba Inu Mint S.A., to build the Treat platform. Shiba Inu has been a top-performing memecoin, with a gain of 164% over the past year.

Germany’s largest federal bank to offer crypto custody services: Report

Update April 15, 11:30 am UTC: This article has been updated to include quotes from Bitpanda. Germany’s largest federal bank, the Landesbank Baden-Württemberg, will start offering cryptocurrency custody solutions in the second half of 2024. The bank will start offering crypto custody services to institutional clients in partnership with the Austria-based Bitpanda cryptocurrency exchange. The German federal bank has been seeing increasing corporate demand for digital asset custody, Jürgen Harengel, managing director of corporate banking at Landesbank Baden-Württemberg, told Bloomberg: “The demand from our corporate customers for digital assets is increasing.” The Landesbank Baden-Württemberg will tap Bitpanda’s institutional custody solution for its offering. Bitpanda Custody is a crypto custody platform with decentralized finance (DeFi) capabilities, registered with the United Kingdom’s Financial Conduct Authority (FCA), according to Bitpanda’s homepage. The partnership will be enable the bank to tap into Bitpanda's digital asset platform, custody services and relevant licenses, Gonzalo Lamas, the head of global communication at Bitpanda, told Cointelegraph: “As part of this cooperation, LBBW leverages our “Investment-as-a-Service” infrastructure and services, which is used to source and provide custody services for cryptocurrencies such as Bitcoin, Ethereum, and other digital assets. The collaboration aims to enhance LBBW's digital asset offerings, ensuring high security and innovative solutions for corporate clients.” Related: 'China is about to start bidding' — Will Hong Kong Bitcoin ETFs spark the halving rally? German banks prepare for MiCA regulations by the end of 2024 The Landesbank Baden-Württemberg isn’t the only German bank mulling crypto services. Deutsche Bank has also been working on digital asset custody services since September 2023, tapping Swiss crypto startup Taurus for crypto custody and tokenization services. In February, DZ Bank, Germany’s second-largest bank, announced its plans to launch a crypto trading pilot later in 2024. The bank unveiled its digital asset custody platform in November 2023 The banks in Europe’s largest economy are preparing for the Markets in Crypto-Assets (MiCA) regulation that will take full effect in December 2024 as the first comprehensive legal framework for the crypto industry. Crypto exchanges will then 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.” The MiCA bill is still being finalized. 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: “[The consultation 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.” Related: With 10 days to the halving, analysts predict $150K Bitcoin top

Germany’s largest federal bank, the Landesbank Baden-Württemberg, will start offering cryptocurrency custody solutions in the second half of 2024. The bank will start offering crypto custody services to institutional clients in partnership with the Austria-based Bitpanda cryptocurrency exchange. Bitpanda Custody is a crypto custody platform with decentralized finance (DeFi) capabilities, registered with the United Kingdom’s Financial Conduct Authority (FCA), according to Bitpanda’s homepage. German banks prepare for MiCA regulations by the end of 2024The Landesbank Baden-Württemberg isn’t the only German bank mulling crypto services. Deutsche Bank has also been working on digital asset custody services since September 2023, tapping Swiss crypto startup Taurus for crypto custody and tokenization services.

Bitcoin’s 2028 halving price target is $435K, historical data suggests

The Bitcoin price (BTC) rallied approximately 650% since the last Bitcoin halving in 2020. If history repeats, Bitcoin could reach the $435,000 price level before the 2028 halving. Is BTC price headed to $435,000 by the 2028 halving? The Bitcoin price has risen around 658% since the last Bitcoin halving in 2020, according to TradingView data, and is currently trading around the $66,000 mark. BTC/USD percentage increase, one-week chart. Source: TradingView The 2024 Bitcoin halving will happen in less than three weeks. If historical chart patterns were to repeat, Bitcoin’s current $66,000 price would reach $434,280 per coin by the 2028 halving if it performs similarly to the current cycle. Nonetheless, Bitcoin’s post-halving rallies have seen diminishing returns throughout the years. Until the first halving in 2012, Bitcoin increased from having virtually no value to $12.50 — an over 12,400% increase. Bitcoin price jumped 5,200% to $650 by the 2016 halving and 1,200% to $8,500 by the 2020 halving. Related: How high can Bitcoin go? New BTC price prediction sees cycle top at $180K Thus, Bitcoin’s average price rallies fell by 45% each cycle to the current 658%. If this diminishing returns trend repeats, Bitcoin will deliver a 360% rally during the next cycle, resulting in a roughly $303,600 BTC price at the 2028 halving. Bitcoin halving or ETFs having a bigger impact? Bitcoin’s recent price surge is unrelated to the upcoming halving and mainly attributed to the inflows into spot Bitcoin exchange-traded funds (ETFs), argues Hao Yang, head of financial products at Bybit, who told Cointelegraph: “Considering [the] halving and price trends from a very rigorous quantitative point of view, there is no evidence supporting a positive correlation between the halving event and BTC price. But history can be interpreted in many different ways. I certainly hope for $435,000 by 2028 but won’t put too much into it.” A six-figure BTC price appears even more possible if Bitcoin ETFs overtake gold ETFs, which is something that could happen in the next two years, according to a Feb. 26 research report from Bloomberg analyst Eric Balchunas. BTC and gold price chart, five years. Source: TradingView Additionally, Bitcoin ETFs are growing at a much quicker pace than gold ETFs did when they first appeared in 2004. In fact, Bitcoin is “speedrunning” gold’s price fivefold, says Sam Wouters, the head of contact at River, who wrote in a March 29 X post: “Bitcoin is basically just 5x speedrunning gold’s trajectory. The last 10 years of Bitcoin look a bit like a squished version of gold’s last 50. No wonder some people get salty.” 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.

The Bitcoin price (BTC) rallied approximately 650% since the last Bitcoin halving in 2020. Is BTC price headed to $435,000 by the 2028 halving? The Bitcoin price has risen around 658% since the last Bitcoin halving in 2020, according to TradingView data, and is currently trading around the $66,000 mark. If historical chart patterns were to repeat, Bitcoin’s current $66,000 price would reach $434,280 per coin by the 2028 halving if it performs similarly to the current cycle. Bitcoin price jumped 5,200% to $650 by the 2016 halving and 1,200% to $8,500 by the 2020 halving.

Crypto Biz: Exchanges face new legal issues, Goldman Sachs’ clients eye crypto, and more

Crypto exchanges are facing a new wave of regulatory hurdles worldwide, with the United States Department of Justice (DOJ) indicting KuCoin and its founders on March 26 for allegedly operating an unlicensed money-transmitting business and violating the Bank Secrecy Act (BSA). The charges coincide with a civil enforcement case by the U.S. Commodity Futures Trading Commission (CFTC), alleging multiple violations by the exchange. The DOJ claims KuCoin handled over $5 billion in suspicious and criminal funds. Staying in the United States, another setback hit Coinbase on March 27. District Judge Katherine Failla denied the exchange’s motion to dismiss a lawsuit from the U.S. Securities and Exchange Commission (SEC), arguing that similar transactions have previously been considered securities transactions. Coinbase sought an order to drop the case, challenging the SEC’s authority over crypto exchanges. In the Philippines, the financial regulator decided to block local users’ access to Binance on March 25, citing concerns over the firm’s unlicensed operations in the country. According to the agency, the exchange offered leveraged trading services and crypto savings accounts to local users without licenses. Meanwhile, in Russia, Binance’s successor, CommEx, has officially announced that it is shutting down operations and has halted deposits. The company acquired Binance’s Russian business for an undisclosed amount in September 2023. Along with the exchanges’ challenges, this week’s Crypto Biz explores BlackRock’s Bitcoin exchange-traded fund (ETF) inflows, Goldman Sachs’ clients returning to crypto, SWIFT’s central bank digital currency (CBDC) trials, and Mastercard’s forecasts for remittances in Latin America. BlackRock’s ETF could flip GBTC in Bitcoin holdings within three weeks BlackRock’s spot Bitcoin ETF is on track to surpass the Grayscale Bitcoin Trust (GBTC) holdings in about three weeks, given the current rate of inflows and outflows. As of March 22, BlackRock’s iShares Bitcoin Trust ETF held 238,500 Bitcoin (BTC) on its books, worth nearly $15.5 billion at current prices, with daily inflows averaging 4,120 BTC. In contrast, Grayscale’s Bitcoin Trust has 350,252 BTC worth $23 billion but is experiencing average daily outflows of $277 million or 4,140 BTC. In another ETF headline, asset manager Hashdex has officially joined the spot Bitcoin ETF market after completing the conversion of its futures ETF to hold spot Bitcoin. Hashdex renamed and converted its Hashdex Bitcoin Futures ETF to the Hashdex Bitcoin ETF with the ticker “DEFI.” Galaxy Digital reports $296 million net income in 2023 after $1 billion loss in 2022 Digital asset management firm Galaxy Digital has reported a net income of $296 million for 2023, marking a reversal after ending 2022 with a $1 billion net loss. The performance shift is due to the rising prices of major cryptocurrencies, such as Bitcoin. The firm’s assets under management grew from $1.7 billion to $5.1 billion in 2023 and nearly doubled in the first two months of 2024, reaching $10.1 billion by the end of February. The firm also reported $18.7 million in mining revenue for the fourth quarter of 2023, a 31% increase over the previous quarter. “Our average marginal cost to mine in the fourth quarter increased relative to prior quarters due to fewer opportunities to economically curtail our mining operations and a higher network hash rate,” the company said in its statement. Goldman Sachs hedge fund clients are piling back into crypto Goldman Sachs’ clients have started to jump back into crypto, with renewed appetite stemming from the approval of spot Bitcoin ETFs. Max Minton, head of digital assets for Goldman Asia Pacific, told Bloomberg that many of his firm’s largest clients had recently become active or were “exploring getting active” in the crypto sector. Goldman’s options and futures offerings are the primary source of fresh demand, with hedge funds being the most involved among its clients, according to Minton. Goldman’s clients use their derivatives primarily to gain exposure to crypto volatility and to make long-term predictions about prices, said the executive, adding that Bitcoin-related products stood as the most popular investment vehicles among active clients. SWIFT declares second sandbox connector tests a success for CBDC and more The SWIFT messaging network has released the results of the second phase of sandbox testing for its CBDC interlinking solution, which it calls a connector. The project looked at four use cases, not all of which involved CBDC, according to the report it released on the test results. It experimented with digital trading with atomic (instantaneous) settlement using smart contracts. It connected tokenization platforms to facilitate atomic delivery versus payment and worked with financial infrastructure firm CLS Group to show the connector’s capability of connecting existing foreign exchange infrastructures using CBDC. SWIFT now plans to further develop the beta version of its connector. Before you go: Mastercard has released a white paper on remittances in Latin America, noting that remittance rates are growing faster than the global average in the region. Digital remittances are expected to be worth $20 billion by 2026. Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Along with the exchanges’ challenges, this week’s Crypto Biz explores BlackRock’s Bitcoin exchange-traded fund (ETF) inflows, Goldman Sachs’ clients returning to crypto, SWIFT’s central bank digital currency (CBDC) trials, and Mastercard’s forecasts for remittances in Latin America. BlackRock’s ETF could flip GBTC in Bitcoin holdings within three weeksBlackRock’s spot Bitcoin ETF is on track to surpass the Grayscale Bitcoin Trust (GBTC) holdings in about three weeks, given the current rate of inflows and outflows. In another ETF headline, asset manager Hashdex has officially joined the spot Bitcoin ETF market after completing the conversion of its futures ETF to hold spot Bitcoin. Goldman Sachs hedge fund clients are piling back into cryptoGoldman Sachs’ clients have started to jump back into crypto, with renewed appetite stemming from the approval of spot Bitcoin ETFs. Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Unharmonized regulation threatens stablecoin usability — BIS report

The Bank for International Settlements (BIS) has found that despite their promise, the use of stablecoins is hindered by international regulatory fragmentation, in a survey of 11 jurisdictions. The publication said the need for stablecoin regulation is “urgent,” but diversity in regulation poses risks for their integration into the international financial system. Most regulatory approaches are similar in their authorization of issuers, reserve requirements, risk management and Anti-Money Laundering (AML) measures, the report noted. Differences in the structuring of stablecoin issuances can cause them to be regulated under banking, securities, commodities or payment system frameworks, however. Licensing regimes across jurisdictions. Source: Bank for International Settlements There are also differences in the details of regulations, redemption policies and the definition of a stablecoin. For example, some jurisdictions regulate algorithmic stablecoins, which are not pegged to external assets, identically to fiat-pegged stablecoins, but the United Kingdom, Japan and Singapore regulate them separately, and jurisdictions in the United Arab Emirates ban them altogether. The report said: “Differences appear to be largely driven by the variety of stablecoin design features, perceived risks associated with their issuance and the nature of the issuing entity. […] The resulting fragmentation may pose significant challenges for an integrated financial system.” Reserves may have to be segregated in different ways, placed in the hands of custodians subject to differing requirements or, in the case of the U.K., placed in a statutory trust. Audit and liquidity requirements also vary greatly. Related: ‘Primitive’ stablecoin lacks mechanisms that maintain fiat stability: BIS report Technological and cybersecurity requirements tend to be more uniform. The interaction of stablecoins with central bank digital currency, tokenized deposits and other digital assets needs to be explored more thoroughly. Source: Bank for International Settlements The report follows BIS recommendations on stablecoin regulation released in February. BIS urged governments to cooperate and address disclosure, risk management, redemption and other issues. Numerous international bodies, such as the International Monetary Fund, Financial Stability Board, Financial Action Task Force, Basel Committee on Banking Supervision and International Organization of Securities Commissions, also have policies on stablecoins that they hope to advance. Magazine: The DeFi bots pumping Solana’s stablecoin volume

The publication said the need for stablecoin regulation is “urgent,” but diversity in regulation poses risks for their integration into the international financial system. Most regulatory approaches are similar in their authorization of issuers, reserve requirements, risk management and Anti-Money Laundering (AML) measures, the report noted. Source: Bank for International SettlementsThere are also differences in the details of regulations, redemption policies and the definition of a stablecoin. Related: ‘Primitive’ stablecoin lacks mechanisms that maintain fiat stability: BIS reportTechnological and cybersecurity requirements tend to be more uniform. Source: Bank for International SettlementsThe report follows BIS recommendations on stablecoin regulation released in February.

Prisma Finance exploited in $10 million breach

Decentralized finance (DeFi) protocol Prisma Finance was exploited for around $10 million worth of cryptocurrencies on March 28. On-chain security alert provider Cyvers were the first to detect the anomaly, according to a March 28 X post: “Our system has detected multiple suspicious transactions with @PrismaFi and still ongoing! Total loss so far is around $9M. The attacker has been funded by @FixedFloat! Our system has detected the malicious contract 2 min earlier than hack transactions!” Shortly after the initial alert, Cyvers detected another $1 million fraudulent transactions, bringing the total amount of exploited funds near $10 million. Prisma Finance said that its core engineers and contributors will pause the protocol and investigate, according to a March 28 X post. Prisma is a decentralized liquid staking token protocol with over $222 million in total value locked (TVL) according to DefiLlama. Related: Funds hacked in 2024 increased by 15.4% vs. the same period in 2023 — Immunefi Hacked funds surpass $11.6 million Following the initial exploit, the attacker has already started swapping the stolen funds to Ether, according to Cyvers. The attack is still ongoing, according to on-chain security firm PeckShield, which wrote in a March 28 X post at 12:28 p.m. UTC: “The attack is ongoing, with the total loss now increased to ~3,257.7 $ETH (worth ~$11.6 million). To vault owners, please follow up on notifications from the official source and be cautious about scams.” Peckshield Alert. Source: PeckShield As shown by PeckShield’s above image, other scammers are trying to benefit from the exploit. Under the official Prisma Finance announcement, a scam Prisma Finance account with a golden badge is trying to redirect users to a suspicious link. On closer inspection, it can be seen that the fraudulent account has no connection to Prisma Finance. Crypto hacks continue to erode the legitimacy of the industry. Over $200 million worth of crypto has been lost to hacks and rug pulls in 2024 across 32 individual incidents up to Feb. 29, according to blockchain security firm Immunefi. The over $200 million loss represents a 15.4% increase compared to January and February 2023, when $173 million of digital assets were stolen. 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: Max pain $51K? Bitcoin options worth over $9.4B set to expire Friday

Decentralized finance (DeFi) protocol Prisma Finance was exploited for around $10 million worth of cryptocurrencies on March 28. Prisma Finance said that its core engineers and contributors will pause the protocol and investigate, according to a March 28 X post. Prisma is a decentralized liquid staking token protocol with over $222 million in total value locked (TVL) according to DefiLlama. Under the official Prisma Finance announcement, a scam Prisma Finance account with a golden badge is trying to redirect users to a suspicious link. On closer inspection, it can be seen that the fraudulent account has no connection to Prisma Finance.

Bhutan’s DHI to offset halving effects with Bitcoin mining upgrade

The Kingdom of Bhutan’s sovereign investment arm and its Bitcoin (BTC) mining partner, Bitdeer Technologies, will increase their BTC mining capacity to offset the potential impact of the mining rewards reduction after the Bitcoin halving. Druk Holding and Investments (DHI), the investment arm of the royal government of Bhutan, and the Nasdaq-listed Bitdeer reportedly announced that they will invest in increasing their mining project’s capacity sixfold ahead of the halving. Bitcoin mining profitability chart for the first quarter of 2024. Source: BitInfoCharts Bitdeer’s chief business officer said the planned upgrades will raise Bhutan’s mining capacity by 500 megawatts by the first half of 2025. This would increase the Himalayan kingdom’s total mining capacity to 600 megawatts. The funds needed to introduce new hardware for the upgrade will be taken from the $500 million fund the duo announced last year. On May 3, 2023, the two entities announced the creation of a closed-end fund valued at $500 million. Bitdeer chairman Jihan Wu said at the time their company would work with DHI to use Bhutan’s zero-emission energy to support blockchain technologies. Wu said that the fund would help develop international stakeholder networks that could help Bhutan’s technology sector. Bhutan’s DHI, which manages over $2.9 billion in assets, had quietly grown a crypto portfolio before it was brought to light in the bankruptcy proceedings of crypto firms Celsius and BlockFi. A Forbes report highlighted that the DHI placed millions in crypto and was a customer of the two bankrupt companies. Local reports also highlighted that Bhutan has been using hydropower to mine BTC since 2019 when the price was around $5,000. Related: Once unprofitable BTC miners are turning their machines back on — Analyst While the two companies are preparing to offset potential losses after the Bitcoin halving, others believe that the halving of BTC rewards would not affect profitability. Laurent Benayoun, the CEO of liquidity firm Acheron Trading, said that the mining rewards are going to be “compensated by an increase in network fees.” BNB Chain senior solution architect Jimmy Zhao believes that Bitcoin-based nonfungible tokens could also help with miner profitability after the Bitcoin halving. As of February 2024, crypto asset manager Grayscale estimated that Bitcoin Ordinals generated over $200 million in transaction fees for miners. Magazine: Bitcoin hits new highs, SEC delays options decision, and stablecoin bill looms: Hodler’s Digest

The Kingdom of Bhutan’s sovereign investment arm and its Bitcoin (BTC) mining partner, Bitdeer Technologies, will increase their BTC mining capacity to offset the potential impact of the mining rewards reduction after the Bitcoin halving. Bitcoin mining profitability chart for the first quarter of 2024. Source: BitInfoChartsBitdeer’s chief business officer said the planned upgrades will raise Bhutan’s mining capacity by 500 megawatts by the first half of 2025. This would increase the Himalayan kingdom’s total mining capacity to 600 megawatts. Wu said that the fund would help develop international stakeholder networks that could help Bhutan’s technology sector.

Wormhole bridge hacker from 2022 was briefly eligible for the recent airdrop

The hacker behind the infamous $320-million exploit of the Wormhole bridge in 2022 was initially deemed eligible for an airdrop that would have seen them claim $50,000 in newly launched W tokens. In an April 4 post to X, pseudonymous researcher Pland claimed that the Wormhole team had forgotten to exclude a number of wallet addresses affiliated with an exploit that saw hackers steal $321 million in crypto from the cross-chain bridge in 2022. According to data from Solana-based airdrop checker Airdrop.link later cited by Degen News in an April 4 post to X, a total of four wallet addresses connected with the exploit were temporarily able to claim Wormhole’s airdrop. If the hacker had elected to claim their airdrops, they would have been eligible for roughly 31,642 Wormhole (W) tokens worth around $50,000 at current prices. Cointelegraph independently checked the wallet addresses on Airdrop.link; however, we found that they were no longer eligible, suggesting that the Wormhole team may have already plugged the gap. Cointelegraph contacted Wormhole but did not receive a response by the time of publication. All four of the eligible wallet addresses were flagged as being linked to the 2022 Wormhole exploit by Solana block explorer Solana.fm. Related: Wormhole crosses 1B in cross-chain messages ahead of token launch The Wormhole bridge was exploited for a staggering $321 million in February of 2022, rendering it one of the largest hacks in the history of the crypto industry. However, in February 2023, Web3 infrastructure firm Jump Crypto and decentralized finance (DeFi) platform Oasis.app conducted a “counter exploit” on the Wormhole protocol hacker. The two firms managed to successfully claw back a total of $225 million in digital assets from the wormhole exploiter and subsequently returned them to safe wallets. On April 3, Wormhole announced that it would be airdropping more than 675 million — worth roughly $850 million at current prices — of its new Wormhole (W) tokens to eligible users. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

The hacker behind the infamous $320-million exploit of the Wormhole bridge in 2022 was initially deemed eligible for an airdrop that would have seen them claim $50,000 in newly launched W tokens. If the hacker had elected to claim their airdrops, they would have been eligible for roughly 31,642 Wormhole (W) tokens worth around $50,000 at current prices. Cointelegraph independently checked the wallet addresses on Airdrop.link; however, we found that they were no longer eligible, suggesting that the Wormhole team may have already plugged the gap. All four of the eligible wallet addresses were flagged as being linked to the 2022 Wormhole exploit by Solana block explorer Solana.fm. On April 3, Wormhole announced that it would be airdropping more than 675 million — worth roughly $850 million at current prices — of its new Wormhole (W) tokens to eligible users.

Vietnamese tech company to build $200M AI factory with Nvidia

The Vietnamese IT company FPT and Nvidia, a global leader in semiconductor chip production, said they would be collaborating to finance and build a $200 million artificial intelligence (AI) factory in Vietnam. In a joint statement on April 23, the companies said their initiative aims to create a “one-stop shop” for all things AI and cloud computing in Vietnam. Its targets include AI products, GPU infrastructure, tech experts and domain expertise for local clients. FPT plans to invest funds in the AI factory, which will serve as a “sovereign cloud,” while Nvidia will supply its latest tech. This will include its AI enterprise software and frameworks, along with Nvidia H100 Tensor Core GPUs. According to the statement, FPT aims to establish Vietnam as an “AI hub of the world” and turn the country into an AI nation while accelerating the adoption of AI applications in neighboring countries such as Japan and Korea. Keith Strier, the vice president for Worldwide AI for Nvidia, said that AI has the potential to “improve lives and strengthen the economies of every nation” through accelerating innovation in various fields such as healthcare, agriculture, climate and manufacturing. The factory will provide cloud GPU services to corporate customers of FPT to accelerate the capabilities and speed of AI applications, as well as offer end-to-end generative AI services. Related: Vietnamese Web3 coalition Ninety Eight launches $25M ecosystem fund Additionally, Nvidia’s programs will be incorporated into the educational curriculum and activities, training programs, and lab facilities at universities and high schools around the country. The statement said that over the ne at least 30,000 students will be reached by the initiative. In December 2023, the CEO of Nvidia announced that the company had plans to expand partnerships in Vietnam with the intention of attracting local talent in the AI industry. Before that, in September 2023, the United States and Vietnam entered into business agreements and partnerships worth billions of dollars to further AI-related cooperation, focusing on strengthening the semiconductor supply chain. During this meeting, heads of major tech companies working in the AI space were present, including Nvidia, Microsoft and Google. Magazine: AI didn’t kill the metaverse, it will build it — Alien Worlds, Bittensor vs Eric Wall: AI Eye

The Vietnamese IT company FPT and Nvidia, a global leader in semiconductor chip production, said they would be collaborating to finance and build a $200 million artificial intelligence (AI) factory in Vietnam. Its targets include AI products, GPU infrastructure, tech experts and domain expertise for local clients. FPT plans to invest funds in the AI factory, which will serve as a “sovereign cloud,” while Nvidia will supply its latest tech. During this meeting, heads of major tech companies working in the AI space were present, including Nvidia, Microsoft and Google. Magazine: AI didn’t kill the metaverse, it will build it — Alien Worlds, Bittensor vs Eric Wall: AI Eye

Charles Hoskinson points to 2 major upgrades amid Cardano ‘dunking’

Cardano founder Charles Hoskinson has his eye on two major upgrades — at least one of which is slated for this year — for the Cardano network amid a recent flood of criticism over its native token and ecosystem. “We are holding all the cards as an ecosystem,” Hoskinson said in an April 7 post on X in response to recent pessimism about the blockchain. “We have the best path for scalability, governance, and innovation. We also have the best community,” he added in response to “all the dunking on Cardano.” Hoskinson’s optimism was fueled mainly by the upcoming Chang hard fork, seen as one of the network’s biggest hard forks since the 2022 Vasil upgrade and slated for the second quarter of this year. Cardano governance roles. Source: Essential Cardano Chang is the first hard fork of the Voltaire era of Cardano’s roadmap, which will introduce the concept of community-run governance to the blockchain by enabling on-chain community consensus and allowing Cardano’s ADA (ADA) holders to use their tokens to vote on proposals. It’s seen as enabling the network to become fully decentralized by introducing community governance. “Chang is coming soon as measured by progress on SanchoNet.” Throughout the rest of this year, the transition will introduce Delegate Representatives (DReps), involve a Cardano Constitution Convention event, and a Cardano community vote to ratify the first draft of the Cardano Constitution. “Ouroboros Leios is the biggest step forward toward solving the blockchain trilemma ever,” Hoskinson added. Ouroboros Leios is a new version of the proof-of-stake consensus model designed to increase throughput, scalability and transaction speed on Cardano while maintaining the current level of decentralization. Hoskinson’s comments came in response to an April 7 video from Ben Armstrong — aka BitBoy — who was contemplating whether Cardano was “dead.” He compared Cardano to Solana, Sui and Toncoin, which were “blowing up” and “killing it” in terms of users, activity and price action, whereas the numbers for Cardano were “not fantastic.” Hoskinson argued that the crypto industry has a problem with short-term narratives. “The problem with our industry is that we let short-term narratives and carnival barkers dominate the conversation. AI has the same issue.” Related: Cardano refutes rumors it abandoned its scaling project Hydra “Most hate for Cardano is emotional,” commented zenGate Global founder and CEO Daniel Friedman on X on April 8. “My decision to build on Cardano and Ergo was a business and architecture decision. Not an emotional tantrum,” he added. Crypto Capital Venture founder and Cardano advocate Dan Gambardello suggested that the FUD was because ADA’s price was not back above $1. “Even Cardano people who say they don’t care about price, care about price. If price was up, you wouldn’t see these comments.” ADA prices have been lackluster this year and have actually dipped slightly since the beginning of 2024. The coin was trading down 10% over the past seven days at $0.584 at the time of writing. It is also down 81% from its September 2021 all-time high of $3.09, according to CoinGecko. Magazine: Is measuring blockchain transactions per second (TPS) stupid in 2024? Big Questions

Cardano founder Charles Hoskinson has his eye on two major upgrades — at least one of which is slated for this year — for the Cardano network amid a recent flood of criticism over its native token and ecosystem. Cardano governance roles. It’s seen as enabling the network to become fully decentralized by introducing community governance. “Chang is coming soon as measured by progress on SanchoNet.”Throughout the rest of this year, the transition will introduce Delegate Representatives (DReps), involve a Cardano Constitution Convention event, and a Cardano community vote to ratify the first draft of the Cardano Constitution. Crypto Capital Venture founder and Cardano advocate Dan Gambardello suggested that the FUD was because ADA’s price was not back above $1.

Goldbugs renew mocking Bitcoin as the yellow metal hits all-time high

Spot gold prices have reached an all-time high, resulting in a resurgence of Bitcoin (BTC) derision from the precious yellow metal’s investors. Gold hit an all-time high of $2,304 per ounce on April 3, according to the American Hartford Gold Group, posting an 11.5% year-to-date gain for the usually slow-moving asset. Gold started gaining momentum in mid-February, rising from around $2,000 per ounce to over $2,200 in late March, having held up well alongside other safe-haven assets due to growing global tensions, uncertainty over possible interest-rate cuts and de-dollarization, Hartford Funds investment strategist Nanette Abuhoff Jacobson told MarketWatch on April 3. Gold’s price in U.S. dollars since Jan. 1. Source: American Hartford Gold Group Bitcoin is sometimes referred to as “digital gold,” but the real gold’s price peak sparked renewed mockery from goldbugs and Bitcoin belittlers. Gold bull and Bitcoin detractor Peter Schiff said in an April 3 X post that so far, in the second quarter of 2024, Bitcoin is down 7%, while silver and gold are up 8.7% and 3.4%, respectively, claiming, “The results speak for themselves.” However, the second quarter began three days ago at the time of Schiff’s post, and BTC has gained 55% this year, eclipsing gold’s gains over the same time by a factor of five. In a follow-up post, Schiff claimed it might be the “last chance to sell your Bitcoin and buy some gold and silver at favorable prices.” “If you fail to act, have fun staying poor,” he claimed. The irony was not lost on some of the respondents. Crypto trader “Quasar” said that they didn’t “have another 60 years to wait for gold to go up another $1,500.” Related: Bitcoin and gold broke new price records on the same day ByteTree analyst and researcher Charlie Morris also took a swipe at Bitcoin in an April 3 X post, commenting that gold has reached its all-time high “without electricity consumption,” referring to Bitcoin’s power-intensive mining process. FOLLOW BITCOIN HALVING COVERAGE IN FULL HERE However, environmentalist and Bitcoin ESG researcher Daniel Batten was quick to point out that the energy required for gold extraction is mostly from fossil fuels, adding: “[Gold] has a much higher environmental impact and emission intensity than bitcoin mining, which is fully electrified, and does not leave mercury or arsenic in the local land and water supply.” Swan co-founder Brady Swenson added, “How can you be a gold bug and not understand the gold mining process[?] I visited a gold mine once, it was apocalyptic.” Meanwhile, the 14 leading gold-tracking exchange-traded funds (ETFs) had lost $2.4 billion from the start of the year to mid-February, in contrast to spot Bitcoin funds, which had seen $3.89 billion in inflows over the same period. Magazine: 6 Questions for Illuvium founder Kieran Warwick

Spot gold prices have reached an all-time high, resulting in a resurgence of Bitcoin (BTC) derision from the precious yellow metal’s investors. Gold hit an all-time high of $2,304 per ounce on April 3, according to the American Hartford Gold Group, posting an 11.5% year-to-date gain for the usually slow-moving asset. Gold’s price in U.S. dollars since Jan. 1. Source: American Hartford Gold GroupBitcoin is sometimes referred to as “digital gold,” but the real gold’s price peak sparked renewed mockery from goldbugs and Bitcoin belittlers. I visited a gold mine once, it was apocalyptic.”Meanwhile, the 14 leading gold-tracking exchange-traded funds (ETFs) had lost $2.4 billion from the start of the year to mid-February, in contrast to spot Bitcoin funds, which had seen $3.89 billion in inflows over the same period.

BlackRock has ‘no commercial relationship’ with Hedera, HBAR sinks 32%

BlackRock has confirmed it has “no commercial relationship” with Hedera and that it did not choose the Hedera Hashgraph to tokenize any BlackRock funds, including shares of its $22 billion money market fund. Hedera’s (HBAR) token rallied over 100% on Tuesday following the HBAR Foundation’s announcement on X stating that blockchain firms Archax and Ownera tokenized BlackRock’s ICS U.S. Treasury Fund on Hedera. Some misinterpreted the post to suggest BlackRock played an active role in the tokenization effort, but a BlackRock spokesperson has confirmed to Cointelegraph that’s not the case. “BlackRock has no commercial relationship with Hedera nor has BlackRock selected Hedera to tokenise any BlackRock funds.” As of the time of writing, HBAR has fallen 32.8% in the past 24 hours to $0.118 since it peaked at $0.176 at 5:00 am UTC on April 24, according to CoinGecko. “As we have in the past, BlackRock will communicate directly with the public on the evolution of our digital asset strategy,” the spokesperson added. HBAR Foundation’s announcement has amassed over 2.9 million views and 3,200 reposts since it was posted a little over 36 hours ago — though some cryptocurrency influencers misinterpreted the message. “BLACKROCK JUST TOKENIZED ONE OF THEIR MONEY MARKET FUNDS ON HEDERA,” said Mason Versluis to his 189,000 X followers. Archax CEO Graham Rodford also clarified later on X that it was his firm’s choice to put shares of BlackRock’s money market fund on Hedera but said BlackRock was “aware” that Archax was tokenizing shares of the fund. Rodford further explained the nuance during an interview with crypto YouTuber Jesus Martinez. “What we saw on Twitter was kind of pretty much close to the truth [...] Archax had clients that wanted to invest in the BlackRock money market fund. When they expressed an interest we opened an account at BlackRock so that we could,” explained Roford. "With most of the investments we make, we want to tokenize them, we told them [BlackRock] we were going to and then just out of the good relationship with them we said 'hey we're putting out a press release, you guys happy to check it?' — so they checked it and gave their views on it," he explained. “Some kind of went a bit off track, saying ‘hey, BlackRock did this, BlackRock did that, BlackRock were involved’ […] but Archax has been leading the project.” Cointelegraph reached out to HBAR Foundation on April 24 but didn’t receive a response. Related: Hedera network approves $408M of HBAR for ecosystem growth Despite the short-lived price pump, HBAR is still down over 78% from its September 2021 all-time high of $0.57, according to CoinGecko. HBAR’s change in price over the last month. Source: CoinGecko Magazine: Is measuring blockchain transactions per second (TPS) stupid in 2024? Big Questions Update (April 25 at 3:45 am UTC): Added a further explanation from Archax CEO Graham Rodford taken from an interview with Jesus Martinez.

BlackRock has confirmed it has “no commercial relationship” with Hedera and that it did not choose the Hedera Hashgraph to tokenize any BlackRock funds, including shares of its $22 billion money market fund. Hedera’s (HBAR) token rallied over 100% on Tuesday following the HBAR Foundation’s announcement on X stating that blockchain firms Archax and Ownera tokenized BlackRock’s ICS U.S. Treasury Fund on Hedera. “BlackRock has no commercial relationship with Hedera nor has BlackRock selected Hedera to tokenise any BlackRock funds.”As of the time of writing, HBAR has fallen 32.8% in the past 24 hours to $0.118 since it peaked at $0.176 at 5:00 am UTC on April 24, according to CoinGecko. “BLACKROCK JUST TOKENIZED ONE OF THEIR MONEY MARKET FUNDS ON HEDERA,” said Mason Versluis to his 189,000 X followers. “What we saw on Twitter was kind of pretty much close to the truth [...] Archax had clients that wanted to invest in the BlackRock money market fund.

‘Unsustainable’ deficit, inflation mean more demand for Bitcoin: Grayscale

Store of value assets, such as Bitcoin (BTC), will continue to be a hot commodity as the United States government continues to overspend and keep interest rates high, according to Grayscale’s managing director of research, Zach Pandl. “We expect persistent inflation and unsustainable budget deficits to contribute to continued demand for store of value assets, like Bitcoin,” Pandl told Cointelegraph. Pandl argued that, given the current high inflation, the Federal Reserve is unlikely to reduce interest rates anytime soon. However, upcoming events like Bitcoin halving, scheduled for April 20, rising economic growth and more crypto adoption will fuel Bitcoin’s price. “The Fed won’t be able to cut rates for a while with core inflation this high, but booming nominal growth, the Bitcoin halving and adoption trends like tokenization should create a supportive environment for crypto markets.” The inflation in March rose 0.4% month-on-month and 3.5% year-over-year, versus 0.3% monthly increase and 3.4% year-over-year estimates from the Dow Jones economists survey show. The outcome has left many disappointed, as commentators resonated with Pandl’s concerns that persistent high inflation rates will hinder the Fed from lowering interest rates in the near future. Ernst & Young chief economist Greg Daco told Yahoo Finance that the higher inflation rates put more pressure on “policymakers to sustain a higher-for-longer monetary policy stance.” Pandl, however, also said that while an increase in the real interest rate is a “short-term negative for crypto,” there will be continued demand for store-of-value assets over the longer term. From a macro perspective, the 10-year real interest rate soared by 19% from the previous month to 1.934, up from February’s 1.616, which might be a catalyst for prompting investors to gravitate toward less volatile assets, such as bonds and term deposits. There have been several instances over the years when the 10-year real interest rate experienced a major monthly spike, and Bitcoin’s price significantly dropped in correlation. The 10-year real interest rate. Source: Federal Reserve Bank of St.Louis The 10-year real interest rate surged by 52.35% from December 2017 to January 2018, rising from 0.573 to 0.873, per the Federal Reserve Bank of St. Louis data. Similarly, Bitcoin’s price fell sharply during this period, from approximately $12,839 at the end of December 2017 to $9,240 by the end of January 2018, representing a 28% decline. Related: Bitcoin whales ‘buy the dip’ post-CPI as BTC price gains 3.6% Following the release of the most recent CPI information, Bitcoin experienced a minor downward shift in its price, mirroring a similar sentiment from investors. Data from Cointelegraph Markets Pro and TradingView shows that BTC’s price dropped as much as 2.5% on April 10 to an intra-day low of $67,463 on Coinbase. At the time of publication, Bitcoin’s price stands at $70,640, per CoinMarketCap data. In an April 11 post on X, crypto analyst Matthew Hyland identified the formation of an ascending triangle on Bitcoin’s price chart, noting that Bitcoin has established a new resistance level above $71,500, reaching $72,329 on April 8. Magazine: Synthetix founder: It’s DeFi that’s wrong, not the market

“We expect persistent inflation and unsustainable budget deficits to contribute to continued demand for store of value assets, like Bitcoin,” Pandl told Cointelegraph. Pandl argued that, given the current high inflation, the Federal Reserve is unlikely to reduce interest rates anytime soon. However, upcoming events like Bitcoin halving, scheduled for April 20, rising economic growth and more crypto adoption will fuel Bitcoin’s price. The outcome has left many disappointed, as commentators resonated with Pandl’s concerns that persistent high inflation rates will hinder the Fed from lowering interest rates in the near future. The 10-year real interest rate.

Ethereum’s next hard fork could make lost private keys a thing of the past

Ethereum users may no longer need to worry about losing their seed phrases ever again after the Pectra hard fork — thanks to a new “social recovery” feature part of the planned Ethereum Improvement Proposal (EIP) 3074 upgrade. EIP-3074 was confirmed as a new addition to the Pectra hard fork by Ethereum core developer Tim Beiko in an April 11 X post. The upgrade will see a “supercharging” of ordinary Ethereum wallets (externally owned accounts) with several new smart contracts capabilities, including the ability to recover assets, Ethereum Foundation researcher “Domothy” explained in a March 25 blog post. However, to leverage the social recovery tool, users must first have transferred ownership of their assets to an invoker contract via a digital signature, which will perform future transactions and function calls on the user’s behalf. While ownership is delegated, the message in the digital signature will enable the user to retrieve their assets if they lose or forget their seed phrase. The feature will be made possible by the implementation of the “AUTH” and “AUTHCALL” opcodes, cryptocurrency commentator Cygaar explained in an April 11 X post. AUTH will take a user’s signature and intended action and verify it was signed properly. AUTHCALL will then call the target contract to carry out the transaction but will assign the user as the caller instead of the invoker contract. Domothy, however, shared concerns that funds could be drained if users delegate their assets to a malicious invoker contract, though he also expects a few formally verified and fully audited invoker contracts to become available after the Pectra upgrade. It has been estimated that billions of dollars worth of cryptocurrency have been lost over the years due to users forgetting or losing their private keys. Related: Key elements to watch on the Ethereum network roadmap Meanwhile, another key advantage of EIP-3074 is that users won’t need any Ether (ETH) in their wallet to send transactions, as the entity behind the invoker contract can pay for that upfront. “This could be huge for gaining mass retail adoption,” Cygaar noted. It will also enable multiple actions to be taken in one transaction. “Right now in order to swap tokens on Uniswap, you have to first approve Uniswap to use your tokens, and then run the actual swap. Not great.” “[But] with 3074, these two actions can be batched into a single tx,” Cygaar added. The Pectra hard fork is reportedly expected to occur in late 2024 or early 2025. Magazine: ‘Account abstraction’ supercharges Ethereum wallets: Dummies guide

Ethereum users may no longer need to worry about losing their seed phrases ever again after the Pectra hard fork — thanks to a new “social recovery” feature part of the planned Ethereum Improvement Proposal (EIP) 3074 upgrade. EIP-3074 was confirmed as a new addition to the Pectra hard fork by Ethereum core developer Tim Beiko in an April 11 X post. AUTH will take a user’s signature and intended action and verify it was signed properly. AUTHCALL will then call the target contract to carry out the transaction but will assign the user as the caller instead of the invoker contract. The Pectra hard fork is reportedly expected to occur in late 2024 or early 2025.

Base sets record high DEX volume day, surpassing $1B

Coinbase Ethereum layer-2 network Base has shattered its trading volume record within a 24-hour on decentralized exchanges (DEX), jumping approximately 25% compared to the previous day and surpassing the $1 billion mark. On March 30, Base recorded $1.21 billion in DEX trading volume, up 25% from the previous day’s $959.63 million, according to Dune data. Most of the trading activity occurred on Uniswap, which accounted for 64.3% of the volume, followed by Aerodrome Finance at 9.7% and SharkSwap at 7.8%. DEX volume (%) across exchanges. Source: Dune Daily active users (DAU) also saw a spike of around 12.4%, climbing from 153,000 to 172,000. Over the past six weeks, there has been an average of 667,765 weekly active users. There is speculation within the crypto community that the growing network could become the next hub for memecoins. Crypto trader Wizard of SoHo told his 97,000 X followers that Base reminds him of an “early Solana,” predicting “several billion dollar memecoins on Base.” Meanwhile, Base contributor Jesse Pollak polled his 73,200 followers, asking how long until Base becomes the “largest non-Ethereum on-chain economy.” Of the respondents, 49.4% responded with “3 months,” while another 28.6% predicted “within 12 months.” DEX volume, base DEX metrics. Source: Dune At the time of publication, there are currently no tokens on the network with a market capitalization at or above $1 billion. Degen (DEGEN) and Brett (BRETT) are among the largest Base memecoins, boasting market caps of $709.9 million and $654.6 million, respectively, according to CoinGecko. Only a week prior, on March 25, Cointelegraph noted that DEGEN’s market cap stood at $143.4 million, marking an almost five-fold increase in the span of seven days. Related: Ethereum Dencun upgrade lowers transaction fees for L2s On March 27, Cointelegraph reported that Coinbase will start moving more of its customer and corporate USD Coin (USDC) stablecoin accounts to Base. Coinbase vice president Max Branzburg stated in a post on social media that the move would allow the crypto exchange to “manage and secure customer funds with lower fees and faster settlement times.” The change will only affect Coinbase.com accounts, not Coinbase Wallet, as those users are responsible for their own private keys. Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance

Coinbase Ethereum layer-2 network Base has shattered its trading volume record within a 24-hour on decentralized exchanges (DEX), jumping approximately 25% compared to the previous day and surpassing the $1 billion mark. On March 30, Base recorded $1.21 billion in DEX trading volume, up 25% from the previous day’s $959.63 million, according to Dune data. Most of the trading activity occurred on Uniswap, which accounted for 64.3% of the volume, followed by Aerodrome Finance at 9.7% and SharkSwap at 7.8%. DEX volume (%) across exchanges. Degen (DEGEN) and Brett (BRETT) are among the largest Base memecoins, boasting market caps of $709.9 million and $654.6 million, respectively, according to CoinGecko.

dYdX community approves 20M token stake as network activity soars

The dYdX community approved staking 20 million DYDX tokens to strengthen security as the decentralized crypto exchange (DEX) experiences a surge in activity. The proposal passed on April 6 with 91.7% of votes in favor, allowing tokens from the community treasury worth over $61 million at current prices to be staked with liquid staking protocol Stride. According to dYdX, the move is a response to the growing trading activity on the protocol: “The rate of DYDX being staked to validators has plateaued and deposits to the exchange are growing at a tremendous pace. Over $140M USDC is held in dYdX v4, of which roughly $100M arrived in the past week.” Staking is the process of locking cryptocurrency to support a blockchain network’s operations, like processing transactions or validating new blocks. Participants, or “stakers,” commit their tokens as stakes in the network. In return for their service and the risks—such as potential token value fluctuation — stakers receive rewards, often in the form of additional tokens. Staking proposal result. Source: Mintscan By staking its native tokens, the DEX is seeking to shield its network from a possible control attack, similar to a 51% attack. This type of attack happens when a malicious entity gains control over a significant amount of a blockchain’s hashing power, enabling the network to be manipulated. Decentralizing voting power prevents such attacks from occurring. dYdX noted that its network architecture enables a scenario where an attacker, with just one-third of the voting power, could pause on-chain operations. Additionally, possessing two-thirds of the voting power could allow such actors to potentially misuse the funds of users and the community within the dYdX Chain. “Since the voting power today is $456M, a malicious actor must contribute at least $912M in staked DYDX to take control of the protocol, which would allow them to exploit user deposits and community assets. This sounds like a lot today, but it isn’t such a high barrier when we factor in that only 11.5% of the total supply of DYDX are staked.” Staking rewards on dYdX accrue in the stablecoin USD Coin (USDC) and are generated from the fees users pay to trade on the protocol. Stride’s mechanism allows DYDX stakes to increase automatically over time as rewards are recompounded. For the staking service, the dYdX community will pay a 7.5% fee on the staked position. Data from DefiLlama shows dYdX total value locked on-chain at $504.48 at the time of writing. The network generated over $48.59 million in fees over the past twelve months. Magazine: 5 dangers to beware when apeing into Solana memecoins

The dYdX community approved staking 20 million DYDX tokens to strengthen security as the decentralized crypto exchange (DEX) experiences a surge in activity. Decentralizing voting power prevents such attacks from occurring. dYdX noted that its network architecture enables a scenario where an attacker, with just one-third of the voting power, could pause on-chain operations. Additionally, possessing two-thirds of the voting power could allow such actors to potentially misuse the funds of users and the community within the dYdX Chain. For the staking service, the dYdX community will pay a 7.5% fee on the staked position.

Binance Labs shifts focus to Bitcoin DeFi, MarginFi sees $200M of outflows: Finance Redefined

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. Like Ethereum’s peak era in 2017, Solana is facing a similar hurdle in network congestion that has lasted almost a week, leading to a high transaction failure rate. Solana developers have now set April 15 as their target date to resolve the issue, calling it a bug rather than a design flaw. Binance Labs has shifted its DeFi focus toward Bitcoin by investing in Bitcoin-native restaking protocol BounceBit. In other news, withdrawals from the Solana-based DeFi protocol MarginFi grew over $190 million amid an apparent management meltdown and claims from competitors that it hasn’t met its promises. Solana devs target April 15 for failed TX fix — It’s “not a design flaw” Solana developers are targeting April 15 to implement a fix for an “implementation bug” that recently caused the transaction failure rate on Solana to skyrocket. “Solana’s current issue is not a design flaw; it’s an implementation bug,” stressed Mert Mumtaz, the CEO of Helius Labs, a blockchain infrastructure firm that provides back-end support exclusively to the Solana network. Continue reading Arkham accuses competitors of spreading “false rumors” amid token sell-off Blockchain analytics firm Arkham has accused its fellow competitors of “spreading false rumors” to create fear, uncertainty and doubt (FUD) after questions arose regarding the firm’s transfer of its native ARKM tokens. Although Arkham did not name the dissenting competitors, just a few days prior, a post published by fellow blockchain analytics firm Nansen claimed that Arkham “moved over 25.2m ARKM ($56 million) over the past two days” to unlabeled wallets and cryptocurrency exchange Binance. “Let’s take a look at what’s going on because they won’t show you,” wrote Nansen, noting that the ARKM was sent to different Binance addresses with no prior activity and to a fresh wallet address. Continue reading Binance Labs shifts investment focus to Bitcoin DeFi Binance Labs, the venture capital arm of the world’s largest cryptocurrency exchange, has invested in Bitcoin-native restaking protocol BounceBit. BounceBit merges centralized finance and DeFi features to create more utility for Bitcoin (BTC), wrote co-founder of Binance and head of Binance Labs, Continue reading MarginFi outflows $190 million as CEO rage-quits amid token controversy Nearly $200 million of user funds have exited Solana-based lending protocol MarginFi over the last two days amid an abrupt resignation of the platform’s CEO, which was followed by accusations of wrongdoing by its competitors. On April 10, the now-former CEO of MarginFi, Edgar Pavlovsky, suddenly announced he had resigned from MarginFi, citing disputes arising from both within his firm and outside of it. Continue reading DeFi market overview Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a bullish week, with most trading in the green on the weekly charts. The total value locked in DeFi protocols rose above $100 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.

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. Binance Labs has shifted its DeFi focus toward Bitcoin by investing in Bitcoin-native restaking protocol BounceBit. In other news, withdrawals from the Solana-based DeFi protocol MarginFi grew over $190 million amid an apparent management meltdown and claims from competitors that it hasn’t met its promises. Continue readingBinance Labs shifts investment focus to Bitcoin DeFiBinance Labs, the venture capital arm of the world’s largest cryptocurrency exchange, has invested in Bitcoin-native restaking protocol BounceBit. On April 10, the now-former CEO of MarginFi, Edgar Pavlovsky, suddenly announced he had resigned from MarginFi, citing disputes arising from both within his firm and outside of it.

North Korean Lazarus hacker group using LinkedIn to target and steal assets: Report

The North Korean hacker group Lazarus is using LinkedIn to target vulnerable users and steal their assets via targeted malware attacks. The incident came to light after blockchain security analytics firm SlowMist revealed that Lazarus group hackers are pretending to look for jobs as blockchain developers in the cryptocurrency industry through LinkedIn. SlowMist claimed hackers steal confidential employee credentials after inviting access to their repository to run relevant code. The code snippets the hacker runs contain malicious code that steals confidential information and assets. Using LinkedIn for targeted attacks is not a new method, and the North Korean hacker group used a similar tactic in December 2023, posing as a fake Meta recruiter. After contacting victims via LinkedIn, the fake recruiter requested that the targeted “applicants” download two coding challenges as part of the hiring procedure. These two coding files contained malware, and when they were run on a work computer, they released a Trojan that allowed remote access. Lazarus has stolen over $3 billion in crypto assets. It is among the most notorious and organized hacking groups that first surfaced in 2009 and continues to target crypto firms despite numerous sanctions against it. Lazarus is known for using innovative ways to target and steal funds. In August 2023, the group used fake job interviews to steal $37 million from crypto payment firm CoinPaid. The hackers attempted to infiltrate CoinsPaid infrastructure by targeting individuals through fake high-salary job offers. Related: US Treasury sanctions crypto mixer Sinbad, alleging North Korea ties The group has been behind some of the biggest heists in the crypto industry. The 2022 Ronin Bridge hack is its biggest, with $625 million stolen. The hacker group often uses crypto mixing services to launder its stolen funds back to North Korea, which, according to many reports, are used to fund the country’s military operations. Although crypto firms are often the target of hacker groups, the decentralized nature of blockchain makes it difficult for them to move their funds. Once identified, they are often tracked and blocked with the help of crypto platforms. In February 2023, Huobi and Binance froze $1.4 million worth of crypto assets linked to North Korea. Similarly, $63 million worth of assets linked to the Harmony Bridge hack was also frozen by crypto exchanges. Magazine: Deposit risk: What do crypto exchanges really do with your money?

The North Korean hacker group Lazarus is using LinkedIn to target vulnerable users and steal their assets via targeted malware attacks. Using LinkedIn for targeted attacks is not a new method, and the North Korean hacker group used a similar tactic in December 2023, posing as a fake Meta recruiter. Lazarus has stolen over $3 billion in crypto assets. It is among the most notorious and organized hacking groups that first surfaced in 2009 and continues to target crypto firms despite numerous sanctions against it. In August 2023, the group used fake job interviews to steal $37 million from crypto payment firm CoinPaid.

Linux on Bitcoin? Open-source framework BitVMX envisions BTC-powered programs

Bitcoin researchers are polishing a new open-source framework called BitVMX, which promises to allow complex applications and functions to be built and executed securely on Bitcoin’s base layer. BitVMX, inspired by Robin Linus’s BitVM project, is backed by RootstockLabs, the development firm behind the Bitcoin layer-2 protocol Rootstock. The project aims to create an open-source, peer-reviewed, sidechain-agnostic framework for developing Bitcoin-based programs. Cointelegraph spoke exclusively to RootstockLabs chief scientist Sergio Demian Lerner to unpack details of the BitVMX project and its potential impact on the Bitcoin ecosystem. The project is set to be officially unveiled at the Bitcoin++ Austin conference along with the publication of its white paper. Lerner’s research into the mining patterns employed by Bitcoin creator Satoshi Nakamoto has been widely cited by news outlets and researchers. Source: Bitslog Lerner is best known for his research exploring patterns to identify what hardware Satoshi Nakamoto used to mine in the early days of Bitcoin, which Cointelegraph Magazine covered in 2021. BitVMX wants to power programs on Bitcoin On a technical level, BitVMX allows funds to be locked in an unspent transaction output (UTXO) with a spend condition that depends on the result of a program’s execution. Lerner said a program must be defined when the UTXO is created, but the program input does not need to be. The scientist said the possibilities of the framework are broad and have the potential to power a variety of applications and functions: “The incredible thing about BitVMX is that it essentially allows developers to run anything on Bitcoin, even Linux.” Lerner said that BitVMX could power bridges to Bitcoin that allow the unilateral flow of BTC between the main chain and sidechains like Rootstock, where it can then be used to interact with decentralized applications (DApps) and other smart contracts. Related: Bitcoin needs DeFi, consumer apps for mass adoption — L2 devs Another use case would be building aggregator oracles that collect and verify data from various sources and store them on the Bitcoin network in an automated and decentralized way. BitVMX will also support Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARK) and Zero-Knowledge Scalable Transparent Argument of Knowledge (zk-STARK) verifiers directly on Bitcoin. This promises to open up new applications such as zero-knowledge contingent payments and autonomous bug bounty programs. Bitcoin L2 criticisms The Bitcoin community has been vocal about the increased affinity marketing ploys by startups promoting Bitcoin L2s that claim to operate natively on-chain. Lerner stressed that BitVMX is not associated with any token sale and that the framework allows the creation of secure and more decentralized bridges that don’t rely on collateralization in foreign tokens. Bitcoin layer-2 protocols ranked by the total amount of Bitcoin locked in various protocols. Lightning’s peer-to-peer protocol still has the most BTC locked in payment channels. Source: Bitcoin Frontier Fund The computer scientist also said that Rootstock Labs believes in simple criteria to define what constitutes a Bitcoin L2: “It must use BTC as its native asset and as a settlement mechanism to enforce transactions and demonstrate a functional dependence on Bitcoin. Everything else is just affinity marketing.” Lerner added that duplicitous projects claiming to be built on Bitcoin have marred every bull market. He adds that users should stick to battle-tested solutions like the Lightning Network, Liquid and Rootstock rather than “risking their sats on untested or unknown solutions with deep pockets and shiny marketing campaigns.” Shifting the narrative for Bitcoin’s functionality The BitVMX project openly credits the foundational work of Robin Linus’ BitVM framework. It looks to build on the theoretical approach of BitVM, which uses a complex combinatorial logic circuit approach relying on large Merkle trees for gate-level verification. Instead, BitVMX touts a streamlined approach by executing central processing unit instructions directly using Bitcoin script opcodes. Lerner says this makes it better suited for real-world applications and unlocks use cases such as running sidechain light clients and verifying using zk-SNARKs. The chief scientist explained that the framework brings disputable computation to Bitcoin in an “efficient and secure way,” which enables a range of new use cases. Lerner briefly unpacked the paradigm of disputable computation. No computation is performed on-chain if all parties agree on a computation result. However, if a party disagrees, an on-chain interaction begins to solve the dispute formally and efficiently. The worst-case scenario leads to a single disputed gate, wire or computation step being verified on-chain. Related: Bitcoin L2 tokens surge double digits as BTC notches 25-month high Lerner envisions BitVMX inspiring a new wave of Bitcoin builders by broadening the network’s functionality. He highlighted the framework enabling more complex spending constraints for Bitcoin’s base layer. The computer scientist added that Bitcoin’s scripting language lacks key opcodes that could make BitVMX cheaper and more efficient. “It will no longer be a question of should Bitcoin be able to do X?, but “how efficiently can Bitcoin do X,” Lerner said. A shifting narrative could also accelerate changes to Bitcoin and the potential to bring back opcodes, including OP_MUL or OP_CAT. Magazine: The value of a legacy: Hunting down Satoshi’s Bitcoin

Bitcoin researchers are polishing a new open-source framework called BitVMX, which promises to allow complex applications and functions to be built and executed securely on Bitcoin’s base layer. BitVMX, inspired by Robin Linus’s BitVM project, is backed by RootstockLabs, the development firm behind the Bitcoin layer-2 protocol Rootstock. Cointelegraph spoke exclusively to RootstockLabs chief scientist Sergio Demian Lerner to unpack details of the BitVMX project and its potential impact on the Bitcoin ecosystem. Bitcoin L2 criticismsThe Bitcoin community has been vocal about the increased affinity marketing ploys by startups promoting Bitcoin L2s that claim to operate natively on-chain. Related: Bitcoin L2 tokens surge double digits as BTC notches 25-month highLerner envisions BitVMX inspiring a new wave of Bitcoin builders by broadening the network’s functionality.

Paris Blockchain Week recap: Optimism abounded as the Bitcoin halving approaches

Paris Blockchain Week, a three-day insider event featuring panels, discussions, and presentations from a diverse group of global industry leaders, has now concluded its fifth annual gathering. Cointelegraph was on site to capture the highlights, and there were plenty. As we turn the page in our calendars and begin preparing for the next big event — the Bitcoin halving predicted to occur on or about April 20 — here’s a recap of what you missed in France at Blockchain Week. BTC to hit $250K? Venture capitalist and Tim Draper, whose list of unicorn investments includes such noteworthy companies as Tesla, Baidu, Coinbase, and Twitch, believes Bitcoin could thrash its current all-time-high price of around $72K per coin by the end of the year. “If I had to predict, maybe we could see $250,000 by the end of the year; I mean, it’s looking pretty good,” Draper told Cointelegraph in an interview. Crypto market to hit $100T? If Draper’s cool quarter-million prediction for BTC isn’t bombastic enough, eToro CEO Yoni Assia told Cointelegraph they believed the global cryptocurrency market would reach a capitalization of $100 trillion over the next decade. For comparison, gold, the precious metal, has a global market cap of about $16.18 trillion as of the time of this article’s publication. But that might not be the most interesting prediction Assia gave us. They also told us that “the crypto community will be the first to identify singularity,” a hypothetical point in future human history where an artificial intelligence (AI) entity becomes effectively more capable (or intelligent) than any human, “because it’s very hard to define what consciousness is.” Binance turns the page Many companies wouldn’t face having to pay a $4.3 billion settlement to the U.S. government with optimism and aplomb, but Binance has moved on. According to Binance executive Catherine Chen, the company is looking forward to the challenges it faces in the wake of the settlement. During a panel discussion moderated by Cointelegraph’s editor-at-large Kristina Cornèr, Chen said the monitoring restrictions placed on the company would ultimately prove to be a net positive for the industry: “It is a challenge, but it’s a welcome challenge, and we fully embrace it because we know that that would be great for the market.” Chen on stage at Paris Blockchain Week discussing Binance’s settlement. Source: Paris Blockchain Week ETF inflows uneven Around 90% of Bitcoin ETF inflows are still retail according to Jan van Eck, CEO of American investment management firm VanEck. The traditional banking and institutional investment sectors have, so far, been seemingly reluctant to dive into the BTC ETF market. Jan van Eck on stage at Paris Blockchain Week. Source: Gareth Jenkinson “You’ve had some Bitcoin whales, and some other institutions move some assets in, but they were already exposed to Bitcoin,” van Eck told Cointelegraph, adding that the end of April might see some further inclusion by non-traditional investors. Dubai to ease burdens for small investors Matthew White, CEO of Dubai's Virtual Asset Regulatory Authority (VARA) told Cointelegraph that the new system, if implemented, would place the bulk of the regulatory financial burdens on the largest players: “The cost of compliance is borne by the larger systemic players, and this allows the smaller players to come into the ecosystem, be regulated, but also not have to suffer the same sort of level of costs of compliance that we’ve got.” VARA CEO Matthew White discussing regulations at the Paris Blockchain Week stage. Source: Paris Blockchain Week Ubisoft teases new game AAA gaming giant Ubisoft, the publisher behind Assassin’s Creed, Ghost Recon, Rainbow Six, and numerous other gaming franchises, took the stage to discuss its newest web3 title, a blockchain-based competitive PVP turn-based role-playing game called “Champions Tactics.” “We must understand the market and how we launch this kind of game,” he said. “That’s really what we want to achieve here. We want to give the players the power to populate the game with figurines and understand what it means to own your gaming assets.” Ultimately, Paris Blockchain Week turned out to be another optimistic gathering of like-minded entrepreneurs and professionals highlighting the challenges, opportunities, and triumphs in our industry.

Paris Blockchain Week, a three-day insider event featuring panels, discussions, and presentations from a diverse group of global industry leaders, has now concluded its fifth annual gathering. As we turn the page in our calendars and begin preparing for the next big event — the Bitcoin halving predicted to occur on or about April 20 — here’s a recap of what you missed in France at Blockchain Week. “If I had to predict, maybe we could see $250,000 by the end of the year; I mean, it’s looking pretty good,” Draper told Cointelegraph in an interview. Source: Paris Blockchain WeekETF inflows unevenAround 90% of Bitcoin ETF inflows are still retail according to Jan van Eck, CEO of American investment management firm VanEck. Jan van Eck on stage at Paris Blockchain Week.

How acclaimed composer Hans Zimmer got to write a crypto theme song

Hans Zimmer, the iconic movie composer, can now add the wild world of crypto to his expansive list of compositions after collaborating with Tron to create a theme song for Web3. On April 16, the Tron blockchain announced that it would have its own anthem, composed by Zimmer, brought to life through a lengthy collaboration and exchange of ideas and Web3 values with founder Justin Sun. The track, titled “The Tron Anthem — a song for the Web3 generation,” has classic Zimmer touches. It’s a musical world of epic and dramatic proportions that blends electronic music with traditional orchestral arrangements. Zimmer has composed music for some of the biggest contemporary blockbusters, including Interstellar, Dune, The Dark Knight and Gladiator. But what exactly does it take to compose an anthem for a living and evolving digital community? Cointelegraph talked to Sun about creating music with Zimmer that reflected the values of the Web3 space and received an exclusive quote from the composer about his vision. According to the announcement, this theme song has been in the works since the beginning of 2022, when the Tron founder and Zimmer opened discussions for the project. Sun said that a joint endeavor of leveraging music as a “catalyst for communication and collaboration” was at the heart of the talks. “Hans’ unparalleled creativity and influence make him a natural ally in our quest to harness the power of music to not only showcase who we are but also to attract diverse talents and capabilities to the Web3 ecosystem.” Related: Hollywood union deal with music giants guards against AI use Sun said the overall mission was to help foster mutual understanding within the Web3 community, catalyze industry-wide collaboration, and propel the community toward an innovative future. Music as a medium to showcase ideas, and represent themes or communities is one of the most accessible ways to bring in audiences. “Blockchain technology has unlocked a new frontier of digital collaboration, transcending geographical boundaries, time zones, languages and cultures,” Sun said. “In pursuit of these goals, we recognize the transformative power of music. It serves as a universal language capable of bridging gaps and fostering connection.” In an exclusive quote for Cointelegraph, Zimmer described a sense of what Web3 can invoke and how we can even approach it: “Everything that the Western world certainly is built on is a legacy code of the Industrial Revolution. Our education systems are built around that, our government is built around that etc. And once the internet happened, I don’t think we really knew how to use it. I think we need to free ourselves from those philosophies and those restrictions.” This is not the first instance of music being used as an instrument to unite communities and foster inclusivity in the Web3 space. In the past, nonfungible tokens (NFTs) have been used as a form of micro-philanthropy to open up new funding avenues to classical musicians outside the limiting legacy institutions. Web3 has also been able to bridge genres together through new musical collaborations through NFTs and metaverse performances, in addition to creating new means of connecting musicians to their communities. The musical collaboration is yet another connection between the worlds of music and Web3 and points toward a more mainstream understanding of the importance of the emerging decentralized space. Magazine: Synthetix founder Kain Warwick: It’s DeFi that’s wrong, not the market

Hans Zimmer, the iconic movie composer, can now add the wild world of crypto to his expansive list of compositions after collaborating with Tron to create a theme song for Web3. The track, titled “The Tron Anthem — a song for the Web3 generation,” has classic Zimmer touches. It’s a musical world of epic and dramatic proportions that blends electronic music with traditional orchestral arrangements. Zimmer has composed music for some of the biggest contemporary blockbusters, including Interstellar, Dune, The Dark Knight and Gladiator. According to the announcement, this theme song has been in the works since the beginning of 2022, when the Tron founder and Zimmer opened discussions for the project.

Bitcoin miner CleanSpark plunges 10% after $800M share offering

Bitcoin miner CleanSpark plunged 10% in after-hours trading on Thursday after the firm amended its at-the-market (ATM) offering agreement to sell up to $800 million of its stock. CleanSpark initially inked a deal for a $500 million ATM offering with New York investment banking firm H.C. Wainwright & Co on Jan. 5, 2024, where CleanSpark said it may, from time to time, offer and sell shares of its common stock at $0.001 per share, a March 28 SEC filing reveals. CleanSpark’s at the market agreement with H.C. Wainwright & Co. LLC. Source: SEC Primary stock dilution is a common strategy for publicly-listed companies to raise additional capital. CleanSpark isn’t the only Bitcoin miner to enter into an ATM agreement for this reason either — with Riot Platforms and Marathon Digital Holdings, both entering into $750 million ATM agreements last August and October. With a market capitalization of $4.2 billion, a $800 million stock offering would effectively dilute CLSK shares by 19%. CLSK started the trading day at $23.20 but is now down 16% to $19.1 in after-hours — which included an 8.2% fall during trading hours, according to Google Finance. CleanSpark’s change in stock price over the last trading day. Source: Google Finance Despite the stock plunge, CLSK is up 95% in 2024 and 685% over the last 12 months. Related: Bitcoin halving ‘blood bath’ could push US miners offshore CleanSpark is one of many Bitcoin miners preparing for the upcoming Bitcoin halving event, expected to occur on April 20, which will see Bitcoin mining rewards reduced from 6.25 BTC ($441,000) to 3.125 BTC ($220,500). The firm boasts the lowest cost production to mine one Bitcoin post-halving at $26,900, a Jan. 12 CoinShares research report found. On Feb. 6, Cleanspark said it expects its hash rate to double in the first half of 2024 on the back of a recent agreement to purchase four new mining facilities in Mississippi, worth $19.8 million, which produced an immediate 2.4 exahashes per second (EH/s) for the firm. It also agreed to buy an additional mining facility in Dalton, Georgia, for $6.9 million, which will produce 0.8 EH/s. However, that facility is under construction and won’t be ready until April 2024. Cointelegraph reached out to CleanSpark for comment but didn't receive a response by the time of publication. Magazine: This is your brain on crypto — Substance abuse grows among crypto traders

Bitcoin miner CleanSpark plunged 10% in after-hours trading on Thursday after the firm amended its at-the-market (ATM) offering agreement to sell up to $800 million of its stock. CleanSpark isn’t the only Bitcoin miner to enter into an ATM agreement for this reason either — with Riot Platforms and Marathon Digital Holdings, both entering into $750 million ATM agreements last August and October. With a market capitalization of $4.2 billion, a $800 million stock offering would effectively dilute CLSK shares by 19%. Related: Bitcoin halving ‘blood bath’ could push US miners offshoreCleanSpark is one of many Bitcoin miners preparing for the upcoming Bitcoin halving event, expected to occur on April 20, which will see Bitcoin mining rewards reduced from 6.25 BTC ($441,000) to 3.125 BTC ($220,500). The firm boasts the lowest cost production to mine one Bitcoin post-halving at $26,900, a Jan. 12 CoinShares research report found.

Binance forms board of directors for the first time

Binance Holdings, which operates the cryptocurrency exchange of the same name, has formed a seven-person board of directors filled with company executives and independent members. According to Binance’s website, the firm’s board of directors is now chaired by Gabriel Abed, the former ambassador of Barbados to the United Arab Emirates (UAE). Other members included Binance CEO Richard Teng, Binance co-founder Heina Chen, Bayview Acquisition Corp CEO Xin Wang, Gojo & Company managing partner Arnaud Ventura, Roger Wang and Rock He. “We are pleased to share that Binance has established a new Board of Directors,” a spokesperson told Cointelegraph. “The Board consists of seven total Directors, three of whom are Independent Directors. We are proud to have some of the world’s strongest Web3 leaders advising our company as we enter our next chapter.” The formation of the board is likely one of the most significant changes to Binance’s leadership since Teng moved from his position as head of regional markets to become CEO in November 2023. Former Binance CEO Changpeng “CZ” Zhao resigned as CEO at roughly the same time as part of a settlement agreement with United States authorities. As part of the deal with the U.S. Justice Department, Treasury Department, and Commodity Futures Trading Commission, Binance agreed to pay $4.3 billion in penalties, and CZ pleaded guilty to one felony count related to his failure to maintain an effective Anti-Money Laundering program at the crypto exchange. Zhao is expected to be sentenced on April 30, and Binance still faces enforcement action from the U.S. Securities and Exchange Commission. Related: Binance is now ‘totally different’: Interview with CEO Richard Teng Founded in China in 2017, Binance became one of the largest crypto exchanges in the world under Zhao, who largely kept the firm’s operations and personnel decentralized. The firm runs out of the UAE for its Middle East and North Africa operations and in France for its European business. Binance’s agreement with U.S. authorities required the firm to form a board of directors with independent members and compliance and audit committees. Teng said in December 2023 that he intended to report to the board. Magazine: Fake news crypto panic, Binance gains users as market share falls? Asia Express Update (April 1 at 9:41 pm UTC): This article has been updated to include a statement from Binance.

Binance Holdings, which operates the cryptocurrency exchange of the same name, has formed a seven-person board of directors filled with company executives and independent members. Other members included Binance CEO Richard Teng, Binance co-founder Heina Chen, Bayview Acquisition Corp CEO Xin Wang, Gojo & Company managing partner Arnaud Ventura, Roger Wang and Rock He. “We are pleased to share that Binance has established a new Board of Directors,” a spokesperson told Cointelegraph. “The Board consists of seven total Directors, three of whom are Independent Directors. Binance’s agreement with U.S. authorities required the firm to form a board of directors with independent members and compliance and audit committees.

Dogecoiners clone hyped Bitcoin Ordinals ‘Runestone’ airdrop

Dogecoin blockchain natives have just finished handing out its own “Runestone” airdrop inspired by the nonfungible token (NFT)-like giveaway done through Bitcoin Ordinals last month. Finishing up on April 2, a total of 30,272 of the inventively titled “Doge Runestone” Doginals — Dogecoin’s name for its Ordinals — were handed out to wallets that held at least one Doginal from a list of collections outlined by Robo AI, the airdrop’s organizer. The Doge Runestones are now trading at a floor price of 185 Dogecoin (DOGE), worth about $32, and have seen a 24-hour volume of just over $2,000, according to data from the Ordinals Wallet marketplace. Doge Runestones, which are all the same, resemble a golden rock etched with the DOGE logo. Source: Ordinals Wallet The airdrop copied the buzzy Bitcoin Ordinals-based Runestone airdrop in March, where a community-run effort handed out over 112,000 Runestones to the protocol’s early adopters. Bitcoin Ordinals are NFT-esque assets such as images or documents that are embedded into sats — the smallest unit of Bitcoin (BTC). Dogecoin is a fork of a fork of Bitcoin — which is why it’s able to have Ordinals — and its Doginals protocol was launched by an anonymous developer in February last year, a month after Bitcoin Ordinals. The protocol also opened up the possibility for the launch of the DRC-20 token standard in early May 2023, taking its namesake from Ethereum’s ERC-20 standard and Bitcoin’s similar BRC-20 standard. Related: ‘No such thing as spam’ — OKX exec on Bitcoin Ordinals There are 149 Doginal collections and nearly 68,000 DRC-20 tokens with a combined market capitalization of $120 million, according to Doginal Explorer data. The 1993 classic shooter game Doom has also been inscribed on the Dogecoin blockchain as a Doginal — a continuing meme of video game porters that have run Doom on random hardware such as washing machines and toothbrushes. Doom on Dogecoin. Source: Dogecoin Ordinals The Doge Runestone airdrop didn’t seem to positively affect DOGE, which is trading at $0.1718 — down 2% in the past day and 20% on the week, per Cointelegraph Markets Pro. Magazine: Real-life Doge at 18 — Meme that’s going to the moon

Dogecoin blockchain natives have just finished handing out its own “Runestone” airdrop inspired by the nonfungible token (NFT)-like giveaway done through Bitcoin Ordinals last month. Doge Runestones, which are all the same, resemble a golden rock etched with the DOGE logo. Source: Ordinals WalletThe airdrop copied the buzzy Bitcoin Ordinals-based Runestone airdrop in March, where a community-run effort handed out over 112,000 Runestones to the protocol’s early adopters. Bitcoin Ordinals are NFT-esque assets such as images or documents that are embedded into sats — the smallest unit of Bitcoin (BTC). Dogecoin is a fork of a fork of Bitcoin — which is why it’s able to have Ordinals — and its Doginals protocol was launched by an anonymous developer in February last year, a month after Bitcoin Ordinals.

Circle enables USDC transfers for BlackRock’s first tokenized fund

Circle, the issuer of major stablecoin USDC (USDC), has enabled transfers of BlackRock USD Institutional Digital Liquidity Fund (BUIDL) shares to its stablecoin. Circle officially announced on April 11 a new smart contract functionality that would allow BUIDL holders to transfer their shares to Circle for USDC. Circle’s smart contract functionality enables the frictionless transfer of BUIDL shares in exchange for USDC to Circle on the secondary market. According to the announcement, the smart contract will enable “near-instant” BUIDL off-ramp that serves investors 24/7. Launched by BlackRock in March 2024, BUIDL is a tokenized fund that operates on the Ethereum blockchain to offer U.S. dollar yields through tokenization. BUIDL allows investors to purchase tokens representing shares in the fund, which invests in assets like U.S. Treasury bills. The fund is referred to as the “digital liquidity fund” because it is digitized in the form of tokens on the Ethereum blockchain and operates as an ERC-20 token called BUIDL. The new investment tool is the first tokenized fund introduced by BlackRock, which is also the operator of the fastest-growing spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States. According to Circle co-founder and CEO Jeremy Allaire, tokenization of real-world assets is a rapidly emerging product category. “Tokenizing assets is but one important dimension of solving investor pain points. USDC enables investors to move out of tokenized assets at speed, lowering costs and removing friction,” Allaire stated. Related: Binance follows Circle and drops USDC support on Tron BlackRock is one of the biggest players in the cryptocurrency industry, operating the iShares Bitcoin Trust (IBIT) spot Bitcoin ETF, which holds 266,580 BTC, worth $18.5 billion as of April 10. IBIT was among the first spot Bitcoin ETFs to launch in January 2024 following historic approval by the U.S. Securities and Exchange Commission. BlackRock’s latest collaboration with Circle follows years of cooperation in the crypto industry. In 2022, Circle started investing in the Circle Reserve Fund to manage a portion of the USDC reserves in cooperation with BlackRock. The firm expected its composition to continue to be around 20% cash and 80% short duration U.S. Treasuries. The Circle Reserve Fund is a registered Rule 2a-7 government money market fund managed by BlackRock Advisors, and its portfolio consists of cash and short-dated U.S. Treasuries. Magazine: Synthetix founder: It’s DeFi that’s wrong, not the market

Circle, the issuer of major stablecoin USDC (USDC), has enabled transfers of BlackRock USD Institutional Digital Liquidity Fund (BUIDL) shares to its stablecoin. Circle officially announced on April 11 a new smart contract functionality that would allow BUIDL holders to transfer their shares to Circle for USDC. Circle’s smart contract functionality enables the frictionless transfer of BUIDL shares in exchange for USDC to Circle on the secondary market. USDC enables investors to move out of tokenized assets at speed, lowering costs and removing friction,” Allaire stated. In 2022, Circle started investing in the Circle Reserve Fund to manage a portion of the USDC reserves in cooperation with BlackRock.

SEC pushes decision on Franklin Templeton spot Ether ETF

The United States Securities and Exchange Commission (SEC) has postponed a potential decision of an application for a spot Ether (ETH) exchange-traded fund (ETF) from Franklin Templeton. In an April 23 notice, the SEC said it had designated a longer period to approve or disapprove a proposed rule change allowing the Cboe BZX Exchange to list and trade shares of the Franklin Ethereum Trust. The commission will have until June 11 to reassess its decision on the spot ETH ETF — an additional 45 days. Many analysts have speculated that the SEC will reach a final decision on whether to approve or deny a spot Ether ETF for listing and trading on U.S. exchanges in May, during deadlines for applications from several asset managers. In March, Bloomberg ETF analyst James Seyffart suggested that the current round of Ether ETF applications would “ultimately be denied.” Related: Ether ETFs may be delayed, as institutions are unprepared — Web3 exec In January, the SEC began allowing U.S. exchanges to list and trade shares of spot Bitcoin (BTC) ETFs — a landmark decision that will likely continue to affect how financial institutions handle cryptocurrencies. Though some speculated at the time that the commission was likely to follow suit with a spot ETH ETF, reports have suggested that it may be attempting to classify Ether as a security. Franklin Templeton’s spot BTC ETF was in the first round of approvals by the SEC. As of December 2020, the firm reported it had more than $1.5 trillion in assets under management. Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto

The United States Securities and Exchange Commission (SEC) has postponed a potential decision of an application for a spot Ether (ETH) exchange-traded fund (ETF) from Franklin Templeton. The commission will have until June 11 to reassess its decision on the spot ETH ETF — an additional 45 days. Many analysts have speculated that the SEC will reach a final decision on whether to approve or deny a spot Ether ETF for listing and trading on U.S. exchanges in May, during deadlines for applications from several asset managers. Though some speculated at the time that the commission was likely to follow suit with a spot ETH ETF, reports have suggested that it may be attempting to classify Ether as a security. Franklin Templeton’s spot BTC ETF was in the first round of approvals by the SEC.

Prisma Finance $11.6M hacker claims it was a ‘whitehat rescue’

The hacker behind the $11.6 million exploit of decentralized finance (DeFi) protocol Prisma Finance is claiming it was a “whitehat rescue” and is enquiring about returning the funds, according to on-chain messages. “Hi, this is a whitehat rescue, who can I contact to refund,” the exploiter said on March 28, around 6 hours after the attack. The message came from the address “0x2d4…7507a” — which was earlier identified as being one of three addresses linked to the attack. “Please contact us at negotiations@prismafinance.com,” the DeFi firm said in response about two hours later. On-chain messages were sent between Prisma Finance and the hacker. Source: Etherscan A white hat hacker refers to a person who uses their hacking ability to find security vulnerabilities in software code. In the broader cybersecurity world, these security experts often notify the creator of the attack vector rather than exploiting it themselves. However, in the cryptocurrency industry, it is more common for hackers to exploit the protocol and then ask for a white hat bounty in exchange for immunity, though there have also been cases where they’ve returned funds without asking for any reward. The first batch of malicious transactions occurred at 11:29 am UTC on March 28. Prisma Finance is still investigating the root cause of the attack. Blockchain security firm PeckShield estimated about $11.6 million was stolen and sent to three separate addresses. The hacker then started swapping the stolen funds to Ether (ETH), according to blockchain security firm Cyvers. PeckShield later observed about 200 Ether was transferred to OFAC-sanctioned cryptocurrency mixer Tornado Cash. Prisma Finance engineers have since halted the DeFi protocol. Prior to the exploit, Prisma Finance had about $220 million in total value locked on its protocol, but that figure has plummeted to $115 million, according to DeFiLlama. Total value locked on Prisma Finance. Source: DefiLlama. Meanwhile, the Prisma Governance Token (PRISMA) plummeted 30% to $0.244 on the news but has since rebounded to $0.289, according to CoinGecko. Cointelegraph reached out to Prisma Finance for comment but did not receive an immediate response. Related: Ethical hacker retrieves $5.4M for Curve Finance amid exploit Cryptocurrency hacks continue to hamstring the developments in the DeFi industry. Over $200 million worth of cryptocurrencies have been lost to hacks and rug pulls across 32 individual incidents over the first two months of 2024, according to Web3 security firm Immunefi. A total of $1.8 billion was lost to cryptocurrency hacks and scammers in 2023, of which 17% have been attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

The hacker behind the $11.6 million exploit of decentralized finance (DeFi) protocol Prisma Finance is claiming it was a “whitehat rescue” and is enquiring about returning the funds, according to on-chain messages. On-chain messages were sent between Prisma Finance and the hacker. Prisma Finance is still investigating the root cause of the attack. Total value locked on Prisma Finance. Cointelegraph reached out to Prisma Finance for comment but did not receive an immediate response.

‘Disable iMessages’ ASAP to avoid crypto zero-day exploit: Trust Wallet

Crypto wallet provider Trust Wallet is urging Apple users to disable iMessage, citing “credible intel” of a zero-day exploit that could allow hackers to take control of users’ phones. “Alert for iOS users: We have credible intel regarding a high-risk zero-day exploit targeting iMessage on the Dark Web,” the firm posted to X at 7:53 pm UTC on April 16. The firm stressed the zero-day exploit can infiltrate and take control of iPhone users without clicking a link and that high-value account holders are most at threat. A zero-day exploit is a cyberattack vector that takes advantage of an unknown or unaddressed security flaw in computer software, hardware or firmware. Trust Wallet stressed that all crypto wallets held on an iPhone with iMessage switched on are at risk. The firm’s CEO, Eowyn Chen, shared a screenshot of which she claims to be a potential zero-day exploit, showing an asking price of $2 million for the exploit. However, the so-called threat was met with skepticism from several industry pundits. “If this is your ‘credible intel’ it’s embarrassing. You don’t have evidence of a iOS exploit you have a screenshot of a guy claiming to have an exploit,” pseudonymous blockchain researcher Beau said in response to Chen’s screenshot. Asked whether it’s better to be “safe than sorry,” Beau stressed Trust Wallet’s alert could cause panic-induced harm. More than 1.2 million X users viewed Trust Wallet’s alert on X over the first four hours. Another skeptical comment from crypto analyst Foobar later led the firm into revealing its intel was sourced from its “security team and partners” that constantly check for threats. Cointelegraph reached out to Apple but didn’t receive an immediate response. Related: WinRAR patches zero-day bug that targeted stock and crypto traders It comes as Apple released emergency security updates to fix two iOS zero-day vulnerabilities that were exploited in attacks on iPhones last month. Apple’s iMessage application has also been used as an attack vector for hackers in previous events, according to security researchers at Kaspersky. Meanwhile, more than 280 blockchain networks are at risk of zero-day exploits that could put at least $25 billion worth of crypto at risk, cybersecurity firm Halborn claimed last month. Magazine: Should crypto projects ever negotiate with hackers? Probably

Crypto wallet provider Trust Wallet is urging Apple users to disable iMessage, citing “credible intel” of a zero-day exploit that could allow hackers to take control of users’ phones. A zero-day exploit is a cyberattack vector that takes advantage of an unknown or unaddressed security flaw in computer software, hardware or firmware. Trust Wallet stressed that all crypto wallets held on an iPhone with iMessage switched on are at risk. The firm’s CEO, Eowyn Chen, shared a screenshot of which she claims to be a potential zero-day exploit, showing an asking price of $2 million for the exploit. More than 1.2 million X users viewed Trust Wallet’s alert on X over the first four hours.

Paraguay’s proposed Bitcoin mining ban could cost $200M a year

The Paraguayan economy could lose more than $200 million annually if the country’s lawmakers pass a recently introduced bill to ban crypto mining in the country. Lawmakers introduced the draft bill on April 4, claiming illegal cryptocurrency mines steal power and disrupt the country’s electricity supply. If passed, the ban would last 180 days or until new laws are enacted and the national power grid operator can ensure it can supply sufficient energy. But a ban on lawful miners operating in the region could prove costly for the South American country, according to Hashlabs Mining co-founder and chief mining strategist Jaran Mellerud, who recently spoke with Cointelegraph: Banning Bitcoin mining could cost Paraguay more than $200 million a year, assuming the country has 500 megawatts of legal miners paying $0.05 per kilowatt-hour in operating expenses.” Markets of this size aren’t common in Paraguay either, which boasts a rather small population of 6.8 million people and the 94th-largest gross domestic product in the world at $41.7 billion, according to Worldometer, citing 2022 data. Bitcoin (BTC) mining has provided a “significant, positive contribution to Paraguay’s trade balance” until this point, Mellerud argued. Bitcoin mining firms currently need to register and receive authorization from the Paraguayan Ministry of Industry and Commerce. If passed, the bill may impact one of the industry’s largest players, Marathon Digital Holdings, which started deploying 27 megawatts around the Itaipu hydroelectric power plant last November. The Itaipu Dam has become a popular site for miners to set up, as it supplies all of Paraguay’s local electricity needs and leaves a large amount of excess electricity to tap into. This excess electricity has historically been exported to Brazil at low prices. However, Mellerud noted that a wave of Bitcoin miners has swooped in at slightly higher prices in recent months. But lawmakers say there have been 50 cases of interrupted power supply linked to cryptocurrency miners illegally tapping into these electricity sources since February alone. The country’s National Electricity Administration estimates each cryptocurrency mining operation has caused damages and losses up to $94,900. Total annual losses in the Alto Paraná area — where the Itaipu power plant is based — could be up to $60 million. “Illegal operations can be harmful to the grid if it draws too much electricity from low voltage lines,” Mellerud acknowledged. Related: Bitcoin’s halving won’t see a 600% return this year — so adjust your strategy A similar situation played out in Kazakhstan a few years ago, ultimately leading to the Kazakh government cracking down on the industry and kicking illegal mining operators out of the country. Mellerud previously told Cointelegraph that Paraguay and Argentina would take in an influx of United States-based miners looking to expand or even migrate to the energy-rich nations due to lower electricity costs. The controversy in Paraguay comes as Bitcoin miners prepare for the upcoming Bitcoin halving event expected to take place on April 20, which will slice miner rewards from 6.25 Bitcoin (BTC) ($434,000) to 3.125 BTC ($217,000). Magazine: Wolf Of All Streets worries about a world where Bitcoin hits $1M: Hall of Flame

Lawmakers introduced the draft bill on April 4, claiming illegal cryptocurrency mines steal power and disrupt the country’s electricity supply. Bitcoin (BTC) mining has provided a “significant, positive contribution to Paraguay’s trade balance” until this point, Mellerud argued. Bitcoin mining firms currently need to register and receive authorization from the Paraguayan Ministry of Industry and Commerce. However, Mellerud noted that a wave of Bitcoin miners has swooped in at slightly higher prices in recent months. The controversy in Paraguay comes as Bitcoin miners prepare for the upcoming Bitcoin halving event expected to take place on April 20, which will slice miner rewards from 6.25 Bitcoin (BTC) ($434,000) to 3.125 BTC ($217,000).

OpenAI makes ChatGPT ‘less verbose,’ blurring writer-AI distinction

OpenAI has unveiled an upgraded version of GPT-4 Turbo, one of the models that power the conversational ChatGPT experience. This upgraded version enables the artificial intelligence (AI) tool to engage in more natural conversations. This updated version is now available to premium users subscribed to ChatGPT Plus, Team or Enterprise plans. OpenAI said that the latest model, “gpt-4-turbo-2024-04-09,” boasts writing, math, logical reasoning and coding enhancements, along with an updated knowledge base. The latest upgrade was trained on publicly accessible data up to December 2023. The previous version could only draw on material up to April 2023. OpenAI wrote in a post on X: “When writing with ChatGPT [with the new GPT-4 Turbo], responses will be more direct, less verbose and use more conversational language.” However, this update could worsen the ongoing challenge of writers sounding like AI despite having written the articles themselves. On April 7, Paul Graham, co-founder of influential startup accelerator Y Combinator, concluded that an email including the word “delve” must have been written with the help of AI. Graham argued that the word wasn’t commonly used in everyday conversation, but many Africans — mostly Nigerians — countered, saying they used the word often. The conversation has since shifted to the fact that people from different parts of the world use the English vocabulary in diverse ways. Graham’s post also implies that writers who speak English as a second language could lose their jobs because their work could be deemed too similar to AI-generated content. Related: OpenAI set off an arms race and our security is the casualty The update follows the April 10 launch of new models in OpenAI’s API, including GPT-4 Turbo with Vision, incorporating image understanding features. According to documentation on its website, the AI developer OpenAI quietly updated the training data set for its GPT-4 Turbo to be relevant from December 2023. The update was implemented with the intention of reducing what developers call “laziness” in a model in which it doesn’t complete tasks asked of it. OpenAI has also eliminated the requirement for users to create an account to access its widely used generative AI tool, ChatGPT-3.5. The company announced on April 1 that it would no longer require ChatGPT users to sign up to make it “easier to experience the potential of AI.” However, users without accounts cannot store their history of previous interactions. Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance

OpenAI has unveiled an upgraded version of GPT-4 Turbo, one of the models that power the conversational ChatGPT experience. This updated version is now available to premium users subscribed to ChatGPT Plus, Team or Enterprise plans. OpenAI said that the latest model, “gpt-4-turbo-2024-04-09,” boasts writing, math, logical reasoning and coding enhancements, along with an updated knowledge base. According to documentation on its website, the AI developer OpenAI quietly updated the training data set for its GPT-4 Turbo to be relevant from December 2023. OpenAI has also eliminated the requirement for users to create an account to access its widely used generative AI tool, ChatGPT-3.5.

Turkish Misyon Bank moves into Bitcoin with Taurus

Update March 27: The article was updated to reflect that Misyon Bank and Taurus' collaboration will enable custody of cryptocurrencies like Bitcoin and Ether in the first phase of implementation. Misyon Bank — an investment banking firm and one of the first neobanks in Turkey — is moving into digital asset custody and tokenization with Swiss cryptocurrency custody provider, Taurus. The Turkish neobank signed a partnership agreement with Taurus to implement its technology in order to provide crypto custody and tokenization services at Misyon Bank. The custody service will support Bitcoin (BTC), Ether (ETH) and Avalanche (AVA) in the first phase, a spokesperson for the Misyon Bank told Cointelegraph. “We plan to extend our coverage by including the other essential cryptocurrencies provided by Taurus for our clients in the following phases,” the representative noted, adding that crypto support is enabled in addition to tokenization of real world assets. Announcing the news on March 26, Misyon mentioned that the collaboration is structured through its wholly-owned subsidiary MisyonTech. Misyon will deploy multiple Taurus-developed solutions, including the custody platform Taurus Protect, the tokenization tool Taurus Capital and the blockchain node infrastructure Taurus Explorer. Taurus is known for providing its custody service to major European banks, including the Spanish financial services giant Banco Santander and global investment bank Credit Suisse. The latter is also a major Taurus investor, leading a $65 million Series B raise for the firm in February 2023. According to Misyon Bank CEO Önder Halisdemir, the partnership with Taurus is a significant step forward in its plan to make Turkey the “Switzerland of its region.” “With this collaboration, Turkish assets will be made accessible to investors worldwide through tokenization,” Halisdemir noted. He added that local solutions for digital assets will be designed with the contributions of Istanbul Technical University and KPMG. The exec stated: “With the completion of the local regulatory framework for digital asset custody services, our efforts will make Turkey a center of excellence and attraction in its region regarding custody services and tokenization.” Misyon and Taurus didn’t mention whether the collaboration targets the addition of cryptocurrencies like Bitcoin (BTC) on the Misyon platform directly. Related: OKX announces launch of Turkish platform Turkey has emerged as one of major crypto economies in the world, ranking fourth in terms of crypto transaction volumes, or $170 billion in 2023, according to data from Chainalysis. The country is just behind the United States, India and the United Kingdom. According to Misyon Bank and Taurus, the newly signed partnership opens the door for a wave of institutional activity in the region. “We have been impressed by Misyon and MisyonTech team of experts, and we are confident that through this significant collaboration, Turkey could establish a prominent position within the region in digital asset custody and tokenization,” Taurus co-founder Lamine Brahimi said. Magazine: Asia Express: $383M for HK crypto hub, APAC exchanges expand, Digital Yuan bridge

Update March 27: The article was updated to reflect that Misyon Bank and Taurus' collaboration will enable custody of cryptocurrencies like Bitcoin and Ether in the first phase of implementation. The Turkish neobank signed a partnership agreement with Taurus to implement its technology in order to provide crypto custody and tokenization services at Misyon Bank. The custody service will support Bitcoin (BTC), Ether (ETH) and Avalanche (AVA) in the first phase, a spokesperson for the Misyon Bank told Cointelegraph. Misyon will deploy multiple Taurus-developed solutions, including the custody platform Taurus Protect, the tokenization tool Taurus Capital and the blockchain node infrastructure Taurus Explorer. According to Misyon Bank and Taurus, the newly signed partnership opens the door for a wave of institutional activity in the region.

Coinbase to move customer and corporate USDC balances to Base

Coinbase will start moving more of its customer and corporate USD Coin (USDC) stablecoin accounts to Base — its Ethereum layer-2 blockchain launched a little over seven months ago. Coinbase vice president Max Branzburg posted to X on March 26 claiming the move would allow the crypto exchange to “manage and secure customer funds with lower fees and faster settlement times.” The change only impacts Coinbase.com accounts — not Coinbase Wallet, as those users are responsible for their own private keys. Currently, Coinbase.com user tokens are custodied by Coinbase in a wallet secured by multiparty computation. Branzburg stressed that Coinbase always holds customer assets 1:1 and doesn’t lend funds out unless instructed. Coinbase’s move on-chain will carve a path toward a future on-chain financial system, explained David Hoffman, a co-host on the Ethereum-focused show Bankless in a March 26 X post. Bankless co-host, Ryan Sean Adams, believed the move would also set a precedent for cryptocurrency exchanges and banks to follow suit. “Every asset is a future token [...] Every bank is a future chain," Sean Adams added. Not everyone is on board with the move, though. X user “callmeKappa.algo” suggested Base is too centralized in its current state. Related: Base TVL doubles in a month as pundits tip memecoins to drive adoption Coinbase is currently the sole sequencer of Base, according to L2BEAT data — meaning the chain is fully controlled by the exchange. However, the firm has iterated its intention to progressively decentralize Base over time. Base was launched as an Ethereum scaling solution on Aug. 9, 2023. It uses optimistic rollups to store transaction data off-chain and submit transactions to Ethereum’s base layer. Coinbase also open-sourced Base's code in October to increase transparency and accountability while simultaneously allowing public contributions to the project. It is currently the fourth largest Ethereum layer 2 by total value locked at $2.63 billion, trailing only Arbitrum, Optimism and Blast, according to L2BEAT. Base notched an all-time high of 2 million daily transactions on March 16 as figures for daily new users also continue to rise. Magazine: ‘Am I sorry? No’ — 3AC founder. $6B BTC laundered for fast food worker: Asia Express

Coinbase will start moving more of its customer and corporate USD Coin (USDC) stablecoin accounts to Base — its Ethereum layer-2 blockchain launched a little over seven months ago. Currently, Coinbase.com user tokens are custodied by Coinbase in a wallet secured by multiparty computation. Branzburg stressed that Coinbase always holds customer assets 1:1 and doesn’t lend funds out unless instructed. X user “callmeKappa.algo” suggested Base is too centralized in its current state. Coinbase also open-sourced Base's code in October to increase transparency and accountability while simultaneously allowing public contributions to the project.

Crypto users fooled by fake Elizabeth Warren letter proposing crypto tax

Many social media users appeared to be fooled by an anti-crypto policy proposed by Massachusetts Senator Elizabeth Warren. The problem is the letter containing the proposal was fake. On April 21, many on Crypto Twitter erupted in dismay at a seemingly real letter from Senator Warren to United States President Joe Biden. The letter — which misspelled the senator’s first name — proposed a 1% wealth tax on crypto holdings exceeding $500,000. The letter called for President Biden to support crypto-related legislation from Senator Warren as part of efforts to address issues in the U.S. financial system. Even after many on social media pointed out discrepancies between the letter and reality, some crypto users seemed to refuse to acknowledge the truth. “Could be [not true] but she’s the type to ask that,” said DonCryptoDraper. No such letter appeared on Senator Warren’s website at the time of publication. Cointelegraph reached out to her office for comment but did not receive a response at the time of publication. Related: Elizabeth Warren supports enhanced US sanction options for stablecoins The Massachusetts senator is one of the more vocal anti-crypto voices in Congress, often associating digital assets with illicit activities, including the financing of terrorism. One of her proposed bills, the Digital Asset Anti-Money Laundering Act, has been critized by many crypto advocates and lawmakers for being ineffective in stopping illicit financing. Warren is up for reelection in November and will likely face off against Republican candidate and crypto lawyer John Deaton. He raised roughly $1.36 million for his campaign — $1 million from his own pockets — in the first quarter of 2024 compared to Warren’s $1.09 million. Deaton has also requested to serve as a friend of the court in Coinbase’s civil lawsuit with the U.S. Securities and Exchange Commission. Magazine: Opinion: GOP crypto maxis almost as bad as Dems’ ‘anti-crypto army’

Many social media users appeared to be fooled by an anti-crypto policy proposed by Massachusetts Senator Elizabeth Warren. On April 21, many on Crypto Twitter erupted in dismay at a seemingly real letter from Senator Warren to United States President Joe Biden. The letter — which misspelled the senator’s first name — proposed a 1% wealth tax on crypto holdings exceeding $500,000. The letter called for President Biden to support crypto-related legislation from Senator Warren as part of efforts to address issues in the U.S. financial system. Even after many on social media pointed out discrepancies between the letter and reality, some crypto users seemed to refuse to acknowledge the truth.

SushiSwap DAO backs transition to ‘Labs model’ in preliminary vote

Decentralized exchange SushiSwap has received a positive sign to move forward with a hotly debated plan for a less decentralized business model. According to a signal vote completed on April 10, more than 62% of voters supported the exchange’s proposal to transition to a so-called “Labs model.” SushiSwap introduced the proposal on March 26, leading to significant debate within its community. According to the plan, the exchange seeks to establish Sushi Labs, an autonomous administrative, technical and operational company that would manage the Sushi ecosystem. Tokenholders would still decide on treasury allocations, but without getting into operational details. The Labs would receive 25 million SUSHI (SUSHI) tokens, worth nearly $39 million at current prices. In addition, Sushi Labs will be designated as the exclusive recipient of any future airdrops from affiliated protocols and partners. “We request that Sushi DAO award a grant of 25 million Sushi tokens to Sushi Labs, including assets from the Arbitrum airdrop, business development, and partner grants, Kanpai 2.0, Sushi 2.0, rewards, stablecoins, and ‘Sushi House’ funds.” The next steps for Sushi’s community include voting on the implementation proposal by April 17. Nearly 7 million tokens support it, representing a 92% approval rate at the time of writing. A signal vote is an initial step to gauge the community’s interest or opinion on a proposal without implementing any changes. An implementation vote, on the other hand, is a subsequent step where the community decides if the proposal should be executed. Sushi’ community reacts On Sushi’s governance forum, several community members expressed their opposition to the proposed plan, voicing concerns regarding the treasury’s financial stability and allegations of voting power manipulation. “I think it would be important to have a sizable amount of all revenues, airdrops included, going directly the the DAO treasury. This would not interfere with hiring, firing, or other operations [...] Treasury should not be ignored. [...] I suggest a split of revenues between treasury and operations,” noted community member Nick Rishwain in the proposal’s thread. Another member of the SushiSwap community, Naïm Boubziz, claimed on X that the move was a hostile takeover. According to Boubziz, the core development team created new wallets prior to the vote in order to increase their voting power. “It appears that Sushi DAO is at the end of its journey,” said another member on the governance forum. Sushi “head chef” Jared Grey has responded to the criticism. “After consulting our legal counsel, I directed the operations team to execute the YAY vote with the OPs wallet and its holdings due to the threat of a hostile takeover,” he said on X in response to allegations of manipulation. Grey also noted that the Labs model will help Sushi recover lost market share: “Much of the current product development roadmap’s limitations and delays stem from the DAO’s outsized ambition, unrealistic expectations, and budget constraints endorsed through snapshot votes from when Sushi’s resources were multitudes greater.” SushiSwap’s revenue has been declining since 2022 despite the current bull market. According to DefiLlama data, the decentralized exchange generated $11.65 million in fees and $1.5 million in revenue in March 2023, compared to $3.5 million in fees and $531,640 in revenue last month. Magazine: 5 dangers to beware when apeing into Solana memecoins

Decentralized exchange SushiSwap has received a positive sign to move forward with a hotly debated plan for a less decentralized business model. According to the plan, the exchange seeks to establish Sushi Labs, an autonomous administrative, technical and operational company that would manage the Sushi ecosystem. The Labs would receive 25 million SUSHI (SUSHI) tokens, worth nearly $39 million at current prices. In addition, Sushi Labs will be designated as the exclusive recipient of any future airdrops from affiliated protocols and partners. Nearly 7 million tokens support it, representing a 92% approval rate at the time of writing.

Scammers eye Toncoin as Telegram-TON partnership grabs headlines

Telegram’s public support for The Open Network (TON) blockchain and its intention to incorporate its native Toncoin token have led to scammers targeting unsuspecting tokenholders to exploit them. Information shared with Cointelegraph from cybersecurity firm Kaspersky outlines a cryptocurrency scam that has been attempting to steal Toncoin (TON) from Telegram users worldwide. According to experts at Kaspersky, the scam has been operating since at least November 2023 as interest and investments in TON surged. Scammers have been promoting an elaborate referral scheme that ultimately aims to steal TON tokens from users. Related: Telegram commits to TON blockchain, plans to support tokenized emojis and stickers NFTs Potential targets receive a link from friends or contacts to participate in an “exclusive earning program.” The scammers then begin prompting victims to join an unofficial Telegram bot purportedly designed to store cryptocurrency and to link their Web3 wallet to the bot’s system. At the same time, the fraudsters instruct users to purchase Toncoin through legitimate channels like the official Telegram bot, peer-to-peer (P2P) markets or cryptocurrency exchanges, which adds an element of credibility and a false sense of security. The signup page for users to purchase boosters that offer varying returns for TON deposits. Source: Kaspersky Victims are then coerced into purchasing “boosters” using a separate bot. The scammers claim that users must complete this action to start earning. This is the point at which scammers make their money. After purchasing a booster, the user irrevocably loses control of their cryptocurrency. “The costs of ‘boosters’ — labeled by the scammers as ‘bike,’ ‘car,’ ‘train,’ ‘plane,’ or ‘rocket’ — vary from 5 to 500 Toncoins,” Kaspersky’s experts explained. The scheme’s booster tier with commissions offering returns typical of a pyramid scheme. Source: Kaspersky Users lose anywhere between $2 and $2,700 through the targeted pyramid scheme. After convincing users to purchase fake boosters, the scammers also tout a referral program that requires victims to create private Telegram groups with friends and contacts. Related: New Telegram mini-apps will be so convenient users won’t know it’s crypto The scammers provide a referral link that comes with its own video instructions for users in both Russian and English. Users are required to have five successful referrals in order to start earning through the fraudulent scheme. The scammers promise earnings from two sources, including a fixed payment of 25 TON for each invited friend and commission based on the booster tariff purchased by your referrals. “It turns out to be a classic pyramid scheme, in which each participant is a partner rather than a freeloader. Sadly, nobody profits except the scammers, and all ‘partners’ lose their investments,” Kaspersky’s analysts explained. Cointelegraph has requested additional information from Kaspersky regarding the number of users who have been affected and the total amount of funds that have been lost. This article will be updated accordingly. Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis

Information shared with Cointelegraph from cybersecurity firm Kaspersky outlines a cryptocurrency scam that has been attempting to steal Toncoin (TON) from Telegram users worldwide. Scammers have been promoting an elaborate referral scheme that ultimately aims to steal TON tokens from users. The scheme’s booster tier with commissions offering returns typical of a pyramid scheme. Source: KasperskyUsers lose anywhere between $2 and $2,700 through the targeted pyramid scheme. “It turns out to be a classic pyramid scheme, in which each participant is a partner rather than a freeloader.

Ethereum boosts 8% amid ‘ultra-strong’ social and market activity

Ether (ETH) accelerated 8% in spot crypto markets on Monday amid an uptick in social sentiment and optimism among derivatives traders. Ether prices have gained around 8% over the past 24 hours, with the asset hitting an intraday high of $3,722 on April 9, outpacing Bitcoin (BTC) and most of its closest peers, according to CoinGecko. It is the highest price ETH has reached since March 16, just over three weeks ago. The asset is now 9% away from its 2024 high of $4,070 and 24% down from its 2021 all-time high of $4,878. Comparatively, Bitcoin prices have moved 3% over the past day reaching $71,395 at the time of writing. Ethereum’s momentum may have been spurred by several factors, including “ultra-strong” social and market activity, according to social intelligence firm Lunar Crush. “Social activity continues to accelerate, joined by both strong price action and market volume,” it noted in a post on X on April 8. Ethereum social activity and price. Source: Lunar Crush Meanwhile, Ethereum derivatives markets are also hinting at bullish sentiment for the asset for the rest of this month. There is currently around $600 million in open interest (OI) at the $4,000 strike price and $378 million at strike prices of $3,700 and $5,000, according to crypto futures exchange Deribit. This shows an upside bias and bullish sentiment for the end-of-the-month options expiry on April 26, when around 900,000 Ethereum contracts expire with a notional value of $3.8 billion. Ethereum OI by strike price. Source: Deribit Not everyone is so bullish, however. Crypto author and educator Vijay Boyapati opined in a post on X on April 8 that the premise of Ethereum spot ETF approvals is driving momentum, but it could be short-lived if they get rejected. “All the hot money that flowed into ETH because of ETF hopium is going to go back into Bitcoin once the Ethereum ETFs are all rejected…” Related: Key Ethereum price metric targets $5.4K ETH in 2024 On April 9, on-chain analytics firm Santiment observed that “powered by Ethereum’s rise to start the week,” ERC-20 assets have been “well ahead of the markets on average,” the sector has grown by 8.1% in the past week. Meanwhile, Toncoin (TON) has flipped Cardano (ADA) to take the tenth spot by market capitalization following an 18.5% daily gain to hit an all-time high of $6.50 on April 9. Magazine: 1 in 6 new Base meme coins are scams, 91% have vulnerabilities

Ether (ETH) accelerated 8% in spot crypto markets on Monday amid an uptick in social sentiment and optimism among derivatives traders. It is the highest price ETH has reached since March 16, just over three weeks ago. Ethereum’s momentum may have been spurred by several factors, including “ultra-strong” social and market activity, according to social intelligence firm Lunar Crush. Ethereum social activity and price. Ethereum OI by strike price.

Railgun denies being used by North Korea as it nears $1B total volume

Crypto privacy protocol Railgun has denied being used by North Korea and other United States-sanctioned entities to launder cryptocurrency, arguing its zero knowledge-based tech prevents this and the accusations have “no evidence.” It comes as the Railgun platform’s total volume nears the $1 billion mark, boosted by a recent X post from Ethereum co-founder Vitalik Buterin praising and defending the privacy protocol. Railgun, founded in January 2021, uses zero-knowledge (ZK) cryptography to shield wallet balances, transaction history and transaction details allowing users to use decentralized apps (DApps) on Ethereum or other supported chains while remaining private. Blockchain security firm Elliptic once labeled Railgun a “prime alternative to Tornado Cash” after the U.S. government imposed sanctions against the crypto mixer. In January 2023, the FBI stated that North Korean cyber attackers used Railgun to launder more than $60 million worth of Ether (ETH) from the 2022 Harmony Bridge heist. In an X post responding to crypto reporter Colin Wu, Railgun denied that Lazarus had used the privacy protocol, calling it “false reporting.” “Firstly, that group is blocked from using the RAILGUN system by the “Private Proofs of Innocence” system, which went live over a year ago,” Railgun wrote on X. “Secondly, it was a mistaken, false allegation in the first place,” it added. Private Proofs of Innocence — also known as Private POI — was launched by Railgun’s researchers and contributors in January 2023. It uses cryptographic assurance to ensure that funds entering the Railgun smart contract are not from a known list of undesirable transactions or actors by requiring users to create a ZK-proof that their funds are not part of a pre-set list of transactions and wallets. Related: Advocacy groups warn of ‘adverse repercussions’ for crypto in case against Tornado Cash co-founder Buterin has also since defended Railgun arguing that “privacy is normal” and that the privacy pools protocol makes it “much harder for bad actors to join the pool.” Railgun hit $962.8 million in total volume, while its total value locked on Ethereum — where most of the protocol’s activity is — also crossed over $25 million, according to Dune Analytics data. Its token Railgun (RAIL) also rallied on April 15 after it was reported that Buterin had sent 100 ETH worth $325,000 to Railgun earlier that day. The token is now trading at $1.18 and is up 86.3% over the past seven days. Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)

Crypto privacy protocol Railgun has denied being used by North Korea and other United States-sanctioned entities to launder cryptocurrency, arguing its zero knowledge-based tech prevents this and the accusations have “no evidence.”It comes as the Railgun platform’s total volume nears the $1 billion mark, boosted by a recent X post from Ethereum co-founder Vitalik Buterin praising and defending the privacy protocol. Blockchain security firm Elliptic once labeled Railgun a “prime alternative to Tornado Cash” after the U.S. government imposed sanctions against the crypto mixer. In January 2023, the FBI stated that North Korean cyber attackers used Railgun to launder more than $60 million worth of Ether (ETH) from the 2022 Harmony Bridge heist. Private Proofs of Innocence — also known as Private POI — was launched by Railgun’s researchers and contributors in January 2023. Its token Railgun (RAIL) also rallied on April 15 after it was reported that Buterin had sent 100 ETH worth $325,000 to Railgun earlier that day.

Bitcoin to attract $1T from institutions amid ‘raging bull market’ — Bitwise exec

Bitwise chief investment officer Matthew Hougan said institutional investors would likely inject as much as $1 trillion into Bitcoin (BTC) through exchange-traded funds (ETFs) as they slowly move into crypto. In a memo sent to investment professionals, Hougan addressed concerns over Bitcoin’s price volatility. As the asset bounces between $60,000 and $70,000, the executive said the best approach would be to “keep calm and take the long view.” While the price seems unstable in the short term, Hougan noted many key events to look forward to in the coming months and years. These include the Bitcoin halving and the spot Bitcoin ETFs getting approved on national account platforms like Morgan Stanley or Wells Fargo. Furthermore, the executive highlighted that the space has to wait for investment committees and consultants still conducting their formal due diligence on Bitcoin. This is a necessary step they have to take before investing in the asset. Related: Bitcoin Halving: Latest News and Full Coverage by Cointelegraph Hougan said that while the space waits for these key events, the BTC price would likely “chop sideways” whenever there are small changes in sentiment; however, the investment officer believes things would be different long-term. Hougan wrote: “But long-term, we believe Bitcoin is in a raging bull market. Not only is it up nearly 300% in the past 15 months, but there are strong reasons to think that will continue.” According to Hougan, the spot Bitcoin ETF approvals in January opened crypto to investment professionals in a major way. Related: 3 theories why the SEC may be eyeing down Ethereum: Crypto lawyer He also believes that investment professionals who control trillions of dollars are just starting to move into crypto. Hougan highlighted that onboarding more professional investors would “take years, not months.” The executive also said that the $12 billion flowing into ETFs since their launch is exciting and is “the most successful ETF launch of all time.” However, he believes that once global wealth managers begin to allocate 1% of their portfolio into Bitcoin, this would mean $1 trillion in inflows into the space. “A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment,” he added. Magazine: Ether ETFs face Senate opposition, Wright is not Satoshi, and Dencun goes live: Hodler’s Digest, March 10–16

Bitwise chief investment officer Matthew Hougan said institutional investors would likely inject as much as $1 trillion into Bitcoin (BTC) through exchange-traded funds (ETFs) as they slowly move into crypto. In a memo sent to investment professionals, Hougan addressed concerns over Bitcoin’s price volatility. These include the Bitcoin halving and the spot Bitcoin ETFs getting approved on national account platforms like Morgan Stanley or Wells Fargo. Furthermore, the executive highlighted that the space has to wait for investment committees and consultants still conducting their formal due diligence on Bitcoin. Hougan wrote:“But long-term, we believe Bitcoin is in a raging bull market.

Ethereum on track for $1B annual profit as DeFi drives Q1 revenue

Blockchain network Ethereum is on the path to $1 billion in annualized profits after it netted income of $365 million in Q1, coming alongside a year-on-year quarterly revenue growth of 155%. The network’s 2024 first-quarter income is a nearly 200% bump from the $123 million profit in Q4 2023, according to an April 17 report from The DeFi Report analyst Michael Nadeau. Ethereum’s fee revenue — earned through users paying for transactions — hit $1.17 billion, up 155% from Q1 2023 and an 80% increase from the prior quarter. Ethereum’s yearly profit and loss since launching in 2015. Source: The DeFi Report Increased network activity “primarily driven by a surge in DeFi activity during the quarter” was the cause of the revenue bump, Nadeau said. The activity surge has seen average daily transactions on the blockchain in 2024 already surpass last year’s figures and are closing in on the results from Ethereum’s peak in 2021. Ethereum's average daily transactions per year (blue) and Ether burned (pink). Source: The DeFi Report Over 1.15 million average daily transactions have taken place in 2024, slightly up from the 1.05 million last year and just shy of the 1.25 million recorded in 2021. Ethereum was launched in 2015 but only had its first profitable year in 2023 — earning $623 million — despite its revenues that year being 75% lower than its peak $9.9 billion 2021 revenues. “This is largely due to the move to proof-of-stake consensus in September of ‘22 — in which token incentives paid to miners (now validators) dropped roughly 80%,” Nadeau explained. He added Ethereum’s fees have grown at a rate of 58% since 2017. “Crypto will outperform everything else” in the years ahead Nadeau gave his market predictions for the coming years and concluded that “crypto will outperform everything else.” He expected rising liquidity conditions for the “next few years” as the United States has a large amount of debt needing refinancing this year and the market had priced in three rate cuts this year from the Federal Reserve. “This should provide a tailwind for risk assets such as tech stocks and quality crypto.” The U.S. spot Bitcoin (BTC) exchange-traded funds, the Bitcoin halving and what Nadeau called “the innovation cycle” were three additional catalysts “pointing to a bullish setup for the next few years.” Related: Bitcoin fees top Ethereum for 3 days in a row as halving approaches The Bitcoin ETFs will serve as a “gateway drug” for increased interest in cryptocurrencies as they enable broad access and the halving — slated for April 20 — “has historically led to a bull run in the year after.” The “innovation cycle” will also draw in new venture funding and renew retail interest in crypto as it matures, Nadeau believed. He claimed Bitcoin and Ether (ETH) are “quite correlated” — Bitcoin outperforms early in the bull market as it is the most recognizable cryptocurrency while ETH and altcoins tend to outperform it in the later stages of the cycle. “It’s noteworthy that altcoins actually rallied so much in the last two cycles that they outperformed Bitcoin across the full length of both cycles,” Nadeau added. He believed this would continue but only with altcoins “that have clear product market fit.” Magazine: Joe Lubin — The truth about ETH founders split and ‘Crypto Google’

Blockchain network Ethereum is on the path to $1 billion in annualized profits after it netted income of $365 million in Q1, coming alongside a year-on-year quarterly revenue growth of 155%. The network’s 2024 first-quarter income is a nearly 200% bump from the $123 million profit in Q4 2023, according to an April 17 report from The DeFi Report analyst Michael Nadeau. Ethereum’s fee revenue — earned through users paying for transactions — hit $1.17 billion, up 155% from Q1 2023 and an 80% increase from the prior quarter. Source: The DeFi ReportIncreased network activity “primarily driven by a surge in DeFi activity during the quarter” was the cause of the revenue bump, Nadeau said. He believed this would continue but only with altcoins “that have clear product market fit.”Magazine: Joe Lubin — The truth about ETH founders split and ‘Crypto Google’

Bitcoin FilmFest: Lights, camera, halving as Bitcoin cinema hits Warsaw

Bitcoiners from around the world descended upon Poland’s capital, Warsaw, from April 18 to 21 for a weekend of films, networking, group activities and the much-anticipated Bitcoin halving. The second edition of the family-friendly Bitcoin FilmFest hosted several film premieres and screenings, including a biopic of Carl Menger, founder of the Austrian school of economics and “grandfather of Bitcoin;” Gods of Their Own Religion, a dystopian story in the not-too-distant future about a city living under the jackboot of a technocratic empire; Dirty Coin, which addresses the widespread misconceptions about Bitcoin (BTC) and its reputation as a “dirty coin” due to its energy consumption and alleged role in facilitating illegal activities — and several others. Bitcoin FilmFest saw the iconic Kinoteka venue transformed into a Bitcoin-themed theater. Source: Cointelegraph The festival took place in Warsaw’s famous Palace of Culture and Science, a stunning display of Stalinist-Gothic architecture known locally as “Stalin’s Palace.” The building is a reminder of the troubled history of Poland, which spent over 50 years under repressive communist rule. The palace symbolizes soviet grandeur and propaganda — built in the middle of devastated post-World War II Warsaw when residents faced unimaginable struggles. It’s a true product of statism, and it is fitting, then, that it should host an event focused on educating about Bitcoin and building a decentralized economy outside of the government-controlled fiat system. The Palace of Culture and Science in Warsaw. Source: Cointelegraph The festival also featured the documentary My Trust in You is Broken, which highlights the dangers of trusted third parties and chronicles the story of decentralization, focusing on Nicolas Dorier’s contribution to the Bitcoin ecosystem. His innovation, the BTCPay Server, played a major role in progressing Bitcoin acceptance worldwide. There were also short films and mini-documentaries, such as Lekker Feeling, which is set in Mossel Bay, South Africa, where an organization called Bitcoin Ekasi partnered with a local surfing group to create new opportunities with Bitcoin. Bitcoin FilmFest co-founder Tomek Kolodziejczuk told Cointelegraph that the event has evolved into much more than just movies about Bitcoin: “Most Bitcoiners say The Matrix is a Bitcoiner movie. But then, what is a Bitcoiner movie? That’s a big debate, right? Is it just a film that includes Bitcoin, or maybe a film that has nothing to do with Bitcoin but was crowdfunded with Bitcoin? Or maybe it’s a film that somehow aligns with Bitcoin’s values of decentralization, autonomy and independence, like maybe a movie that is anti-system, right?” The event had several satellite meetups, networking gatherings and leisure activities for all — including children. Each morning, the festival hosted an “Amondo morning,” which included a cinema meetup for kids and young people. On April 21 was “Cartoonfest,” a series of short kid’s films and cartoons with narratives about Bitcoin and sound economics. Buying flats with sats One such satellite event was “Sats4Flats,” a private event for Bitcoin and real estate professionals that included a discussion on Bitcoin, real estate and tokenization. Participants also shared real estate investment opportunities and brainstormed how to make purchases using Bitcoin. An example of an apartment for sale advertised by Sats4Flats, with its price in BTC. Source: Sats4Flats The Sats4Flats event also saw the launch of a new Bitcoin real estate community in Poland, with several presentations from special guests. Sats4Flats founder Maciej Kordala introduced the new initiative, which he said aims to attract the interest of investors and developers in the traditional Polish real estate market. Tick tock, next block One of the highlights of the weekend was the Bitcoin halving — an event occurring every four years that halves the block reward for Bitcoin miners, hard-coding Bitcoin as a scarce and ultimately deflationary asset. The festival included a “European Halving Party,” which saw attendees celebrate the halving in the wee hours of the morning on April 20. Related: Bitcoin halving 2024 — Done and dusted! This year’s halving came at a time of euphoric optimism in the Bitcoin community, which has seen some big wins in recent months. In January, the United States Securities and Exchange Commission approved spot Bitcoin exchange-traded funds in the country, which was followed soon after by a new all-time high of over $73,000 for Bitcoin. All of this is happening in the context of an increasingly tense and uncertain macro climate. The event coincided with the Bitcoin halving and included a European Halving Party. Source: Cointelegraph Bitcoiners who spoke to Cointelegraph at the event shared their beliefs that the current system is broken. One attendee shared the story of how Bitcoin has enabled him to build wealth in a “broken system that no longer works for the average person.” This was a common theme at the event. Kolodziejczuk told Cointelegraph, “It makes people ask the question: Is something wrong with the system? And then this question brings them to question the fiat structures and fiat system and then to Bitcoin.” Kolodziejczuk said the long-term plan is to keep growing and building a culture around Bitcoin. He added that they plan to keep the event in Warsaw and that there’s still a lot of untapped potential, particularly in the traditional film industry. The Bitcoin FilmFest team is “trying to build this bridge to more Hollywood or legacy filmmakers who are getting orange-pilled, with more networking between producers, investors and actors,” Kolodziejczuk said, adding: “With each next edition, it will be more for filmmakers who are interested in Bitcoin. This is the boiling pot of what fosters the growth of Bitcoin cinema that happens in Warsaw, and let’s continue. It’s just the second edition, right? But the plan is definitely long-term.” Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto

Bitcoiners from around the world descended upon Poland’s capital, Warsaw, from April 18 to 21 for a weekend of films, networking, group activities and the much-anticipated Bitcoin halving. Buying flats with satsOne such satellite event was “Sats4Flats,” a private event for Bitcoin and real estate professionals that included a discussion on Bitcoin, real estate and tokenization. Source: Sats4FlatsThe Sats4Flats event also saw the launch of a new Bitcoin real estate community in Poland, with several presentations from special guests. Related: Bitcoin halving 2024 — Done and dusted! The event coincided with the Bitcoin halving and included a European Halving Party.

Stocks and crypto at the edge of ‘significant’ correction: 10x Research

The stock and cryptocurrency markets could be “ahead of a crucial tipping point” heading for a significant price correction, according to Markus Thielen, the founder of 10x Research. “We sold everything last night,” wrote Thielen, citing persistent inflation, decreasing rate cuts and a rising bond yield as the reasons behind his bearish outlook. In an April 16 research note, the founder wrote: “The primary trigger is the unexpected and persistent inflation. With the bond market now projecting less than three cuts and 10-year Treasury Yields surpassing 4.50%, we may have arrived at a crucial tipping point for risk assets.” The bearish research note comes after Bitcoin’s (BTC) price fell over 9.3% during the week to trade above the $63,400 level as of 9:15 am UTC, according to CoinMarketCap data. The reason behind Bitcoin’s decline could be the falling expectations for an incoming interest rate cut, according to the research note: “Most of this 2023/2024 bitcoin rally is driven by expectations that interest rates would be cut, and this narrative is being seriously challenged now.” Traders are currently expecting rates to remain unchanged — 99% of market participants expect the Federal Reserve to maintain interest rates at the current 5.25%–5.50%, up from 93.6% a month ago, according to the CME Group’s FedWatch Tool. Target interest rate expectation. Source: CME Thielen added that the company sold all its tech stocks at the open during Monday’s trading session: “We only hold a few high-conviction crypto coins. Overall, we are bearish risk assets.” Related: ETH price nears 3-year lows vs. Bitcoin — Will an Ethereum ETF stem the tide? Is Bitcoin price overheated? A key technical indicator suggests that Bitcoin price may be “overbought.” On the weekly chart, Bitcoin’s relative strength index (RSI) is currently at 67, suggesting that the asset may be overheated. Yet Bitcoin’s RSI has cooled significantly from its 2024 high of 88, hit on March 24, according to TradingView. BTC/USD, 1-week 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. Investor focus has shifted to the upcoming Bitcoin halving, prompting long-term holders to start selling and moving assets off exchanges. As long as short-term holders absorb the supply, Bitcoin price could see a recovery, according to a Bitfinex research report shared with Cointelegraph: “There has been a shift in the makeup of the Bitcoin investor base, with new entrants (Short-Term Holders) absorbing the supply sold by Long-Term Holders (LTHs). This is evidenced by the rising Market Value to Realized Value ratio for STHs, albeit it is still below peak levels seen in previous cycles. If this dynamic of STHs absorbing LTH sell downs persists, then it could indicate room for further price growth.” Related: ‘China is about to start bidding’ — Will Hong Kong Bitcoin ETFs spark the halving rally?

The stock and cryptocurrency markets could be “ahead of a crucial tipping point” heading for a significant price correction, according to Markus Thielen, the founder of 10x Research. In an April 16 research note, the founder wrote:“The primary trigger is the unexpected and persistent inflation. Source: CMEThielen added that the company sold all its tech stocks at the open during Monday’s trading session:“We only hold a few high-conviction crypto coins. Is Bitcoin price overheated? Yet Bitcoin’s RSI has cooled significantly from its 2024 high of 88, hit on March 24, according to TradingView.

ETH to spike post halving, ETF denial would not ‘be bearish’ — Analysts

Crypto analysts are betting that Ether’s (ETH) price could see a significant upswing within months after the Bitcoin halving despite being down 11.39% over the past 30 days, based on historical data. One researcher also thinks that a potential exchange-traded fund (ETF) denial won’t necessarily lower prices. “If the ETF is denied, it will not be that bearish, as the market is not pricing in it yet, and we still have Bitcoin ETFs as the entrance for traditional funds,” Hashkey Capital head of Research Jupiter Zheng told Cointelegraph. However, Zheng believes if a spot Ether ETF is approved with staking, it will be “really bullish.” He explained that an approval could trigger a surge in short liquidations, potentially driving up the price further. The steep decline in Ether’s price this week has led to $39.13 million in long positions being liquidated over the past 24 hours, as per CoinGlass data. ETH has seen $16.10 million in short liquidations and $39.13 million in long liquidations over the past 24 hours. Source: CoinGlass Additionally, short positions totaling $15.66 million were also liquidated within the same time period. At its current price of $3,293, just a 1.5% drop to $3,250 will see $70.96 million in liquidations. Although he forecasts that it will not have a large impact on ETH futures open interest, as the market is “not betting hard on it.” There is currently $12.89 billion in Ether futures open interest (OI). Meanwhile, Bitcoin (BTC) is approximately 2.5x larger in OI at $31.744 billion. Clear pattern identified on Ether’s price chart Meanwhile, popular trader Jelle has observed a trend in Ether’s price chart leading up to the Bitcoin halving on April 20, which he said is reminiscent of the pattern before the previous Bitcoin halving. “The last Bitcoin halving was ETH’s sign to start running hard,” crypto trader Jelle stated. The last Bitcoin halving happened on May 11, 2020, which saw Ether’s price sitting around $210. By Aug. 14, just three months later, ETH had surged to $433, marking a 106% price increase, per CoinMarketCap data. Jelle identified a clear ascending triangle forming on Ether’s price chart since June 2023, seen on a zoomed-out view from May 2020, signaling a potential surge ahead. Meanwhile, Zheng forecasted that the “ETH season is yet to come.” Related: SEC calls for comments on Fidelity, Grayscale and Bitwise spot Ether ETF applications However, recent reports suggest that there is less optimism about the approval of spot Ether ETFs following the United States Securities and Exchange Commission investigating the Ethereum Foundation. On March 20, Cointelegraph reported that the SEC issued several subpoenas to companies that have worked with the Ethereum Foundation. Sources familiar with the matter said the commission had launched a campaign to classify ETH as a security in 2022. Magazine: Jameson Lopp: Skeptical of spot Ether ETFs, BTC price prediction dilemma: X Hall of Flame 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.

Crypto analysts are betting that Ether’s (ETH) price could see a significant upswing within months after the Bitcoin halving despite being down 11.39% over the past 30 days, based on historical data. Clear pattern identified on Ether’s price chartMeanwhile, popular trader Jelle has observed a trend in Ether’s price chart leading up to the Bitcoin halving on April 20, which he said is reminiscent of the pattern before the previous Bitcoin halving. “The last Bitcoin halving was ETH’s sign to start running hard,” crypto trader Jelle stated. The last Bitcoin halving happened on May 11, 2020, which saw Ether’s price sitting around $210. Magazine: Jameson Lopp: Skeptical of spot Ether ETFs, BTC price prediction dilemma: X Hall of FlameThis article does not contain investment advice or recommendations.

Solana struggles: Record 75% of user txs are failing... or are they?

Roughly three-quarters of all transactions on the Solana network have been failing amid a deluge of activity brought by the recent memecoin mania on Solana; however, proponents say the data is being widely misinterpreted. Dune Analytics data shows that on April 4, just over 75% of all “non-vote” Solana transactions failed, the highest failure rate on record. 75.4% of non-vote transactions on Solana have failed. Source: Dune Analytics The uptick has been paralleled by a recent uproar from Solana users on social media, complaining of failed transactions and degraded user experience. In an April 4 post to X, pseudonymous trader Altcoin Sherpa said that while he still believed Solana would cement itself as the blockchain network for retail adoption, he noted that the current user experience was currently less than ideal. “As much as I think that SOL is the chain for retail this cycle — the experience is f---ing brutal lately.” Or maybe it’s bot spam However, in an April 4 post to X, vocal Solana proponent and Helius CEO Mert Mumtaz took issue with the claim that 75% of transactions were failing, noting that the vast majority of failed non-vote transactions were simply “bot spam.” Related: Solana activity flips Ethereum amid memecoin craze, even as txs fail “This is usually not a big problem for users because your wallet will simulate the [transaction] and let you know that it will not work beforehand anyway,” he said. Mumtaz claimed that the failed transactions chart was “not a good way of assessing user impact as most users don’t make it there to begin [with].” “About 95% of that entire chart is just bots failing arbitrage attempts,” he added. Additionally, Mumtaz explained that because much of this spam activity occurs before the scheduling process, increasing transaction priority fees won’t help and that “increasing it above a certain median” will see users “waste money.” He added that it was unlikely that the upcoming 1.18 Solana network upgrade would fix these issues, hinting that user experience on Solana could remain degraded for some time. “Networking patches are what’s required, and those are rolling out soon.” Solana CEO Anatoly Yakovenko took to social media to express his frustration at the process of improving congestion bugs on the network. “Dealing with congestion bugs sucks so much more than total liveness failure. The latter is one and done, bug is identified and patched and chain continues. The former has to go through the full release and test pipeline. Shipping fast is impossible,” wrote Yakovenko in an April 5 post to X. The price of Solana’s SOL (SOL) has fallen around 3% in the last week, stumbling slightly after a 45% rally in the last month. Its recent weekly drawdown has seen it fall back to being the fifth-largest cryptocurrency by market capitalization, per CoinGecko data. SOL currently commands a total value of $81 billion, trailing behind Binance’s BNB (BNB) at $89 billion. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

Roughly three-quarters of all transactions on the Solana network have been failing amid a deluge of activity brought by the recent memecoin mania on Solana; however, proponents say the data is being widely misinterpreted. Dune Analytics data shows that on April 4, just over 75% of all “non-vote” Solana transactions failed, the highest failure rate on record. 75.4% of non-vote transactions on Solana have failed. Source: Dune AnalyticsThe uptick has been paralleled by a recent uproar from Solana users on social media, complaining of failed transactions and degraded user experience. The price of Solana’s SOL (SOL) has fallen around 3% in the last week, stumbling slightly after a 45% rally in the last month.

Binance exec arrested in Kenya, could face extradition to Nigeria: Report

Nadeem Anjarwalla, a British and Kenyan national who works at cryptocurrency exchange Binance, has reportedly been detained in Kenya after fleeing Nigeria in March. According to several Kenyan news outlet reports from April 22, local police arrested Anjarwalla and may extradite the Binance executive to Nigeria to face criminal charges. Anjarwalla reportedly escaped custody in Nigeria on March 22 after he was taken to a mosque for prayers, fleeing the country using his Kenyan passport. Cointelegraph was unable to confirm reports of Anjarwalla’s arrest in Kenya. He initially traveled to Nigeria in February with fellow Binance executive Tigran Gambaryan following claims the exchange manipulated the country’s fiat currency, the naira. Authorities detained both men after Binance announced that it intended to cease all naira transactions. It’s unclear how Anjarwalla escaped Nigeria. Reports have suggested that he was able to board a plane out of Abuja — Nigeria’s capital — using his Kenyan passport, as authorities confiscated only his U.K. travel documents. Related: Binance exec remains in jail as bail appeal fails again Nigerian officials have moved forward with charges against the exchange and Gambaryan in Anjarwalla’s absence. The Binance executive has pleaded not guilty to tax evasion and money laundering charges, with the case returning to court on April 19 after a brief adjournment. Gambaryan’s wife has also launched a petition to return him to the United States, claiming he was “an innocent man, a pawn in someone else’s game.” Binance claimed he had “no decision-making power in the company” and requested that he not be held responsible for the exchange’s activities in Nigeria. Changpeng Zhao, the former CEO of Binance, is expected to be sentenced in the U.S. on April 30 in a separate case after pleading guilty to one felony charge. He could face up to 10 years in prison. Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame

Nadeem Anjarwalla, a British and Kenyan national who works at cryptocurrency exchange Binance, has reportedly been detained in Kenya after fleeing Nigeria in March. According to several Kenyan news outlet reports from April 22, local police arrested Anjarwalla and may extradite the Binance executive to Nigeria to face criminal charges. Anjarwalla reportedly escaped custody in Nigeria on March 22 after he was taken to a mosque for prayers, fleeing the country using his Kenyan passport. He initially traveled to Nigeria in February with fellow Binance executive Tigran Gambaryan following claims the exchange manipulated the country’s fiat currency, the naira. The Binance executive has pleaded not guilty to tax evasion and money laundering charges, with the case returning to court on April 19 after a brief adjournment.

$7.5B AI crypto token merger scheduled for community vote on April 2

A token merger to the tune of $7.5 billion consisting of artificial intelligence (AI) protocols SingularityNet, Fetch.ai and Ocean Protocol is scheduled for a community vote of approval on April 2. According to the March 27 announcement, there will be three separate community votes for each individual protocol, with completion of all voting scheduled for April 16. If the union is approved, SingularityNet’s AGIX token, Fetch.ai’s FET (FET) token and Ocean Protocol’s OCEAN token will be replaced with the new Artificial Superintelligence Alliance’s ASI token. As of March 26, the merged token would have a fully diluted market capitalization of $7.6 billion across 2.631 billion tokens. The three tokens’ current combined market cap is around $5.3 billion. “If approved, it will then be possible to swap $FET for Artificial Superintelligence token at a rate of 1:1," the teams wrote. “For example, if you hold 100 $FET, you will be able to swap it for 100 $ASI.” FET will be the reserve currency of ASI, while users will be able to convert OCEAN and AGIX into ASI at a new fixed rate. An additional 1.48 billion ASI tokens will be minted, with 867 million ASI allocated to AGIX holders and 611 million ASI allocated to OCEAN tokenholders. Therefore, Singularity and Ocean tokenholders will “receive 0.433226 $ASI per $OCEAN and 0.433350 $ASI per $AGIX” as a result of the merger. As per Fetch.ai: “If you have $OCEAN and $AGIX tokens on an exchange, no action is needed. We will work with each exchange to ensure a smooth conversion and your holdings will automatically be converted to $ASI tokens directly by the exchange. You won’t see $OCEAN or $AGIX on the exchange — but don’t panic! Your tokens are there, just look for the $ASI symbol.” In addition, the swap mechanism will be available indefinitely for OCEAN and AGIX users holding tokens on self-custody wallets to convert their balance. Announced the same day, the novel Superintelligence Alliance will share the common goal of developing blockchain-based decentralized AI protocols, which can’t be controlled by centralized parties or large stakeholders. Related: Fetch.ai announces GPU rewards for tokenholders after $100M infrastructure investment

A token merger to the tune of $7.5 billion consisting of artificial intelligence (AI) protocols SingularityNet, Fetch.ai and Ocean Protocol is scheduled for a community vote of approval on April 2. If the union is approved, SingularityNet’s AGIX token, Fetch.ai’s FET (FET) token and Ocean Protocol’s OCEAN token will be replaced with the new Artificial Superintelligence Alliance’s ASI token. As of March 26, the merged token would have a fully diluted market capitalization of $7.6 billion across 2.631 billion tokens. “If approved, it will then be possible to swap $FET for Artificial Superintelligence token at a rate of 1:1," the teams wrote. Therefore, Singularity and Ocean tokenholders will “receive 0.433226 $ASI per $OCEAN and 0.433350 $ASI per $AGIX” as a result of the merger.

Frax Finance dives into DeFi liquidity with $250M USDe allocation

Decentralized finance (DeFi) lending protocol Frax Finance has recently passed a community governance proposal that greenlights a $250 million allocation of Ethena Labs’ USDe to a new liquidity pool. As part of Frax’s Singularity Roadmap, the proposal enables the creation of an automated market operation (AMO) that will allow the minting of new FRAX tokens backed by overcollateralized debt. The proposal was approved on April 5. The proposal will create one of the deepest liquidity pools in the DeFi space and enable Frax to diversify its backing yield, according to Ethena Labs, which wrote in an April 8 X post: “As of yesterday, FRAX has begun adding USDe POL which will create one of the deepest pools of dollar liquidity on-chain, and enable FRAX to diversify their source of backing yield.” According to Curve Finance data, the new Curve-based liquidity pool held $44.9 million worth of liquidity as of 10:45 am UTC, with $30.6 million worth of FRAX coins and $14.6 million worth of the USDe synthetic dollar. FRAX/USDe liquidity pool. Source: Curve Finance Related: Largest Ethena airdrop recipient gets nearly $2M Ethena Labs surpasses $2 billion in TVL Ethena Labs surpassed the $2 billion mark in total value locked (TVL) on April 6, less than two months after USDe was launched on the mainnet on Feb. 19, according to DefiLlama data. According to its homepage, the protocol is currently offering a 37.1% annual percentage yield (APY) on USDe to over 125,300 investors. Ethena Labs made headlines last week after it announced it was adding Bitcoin backing to its USDe synthetic dollar in an effort to further scale from its current $2 billion supply. Ethena Labs became the highest-earning decentralized application in crypto on March 8 when it offered a 67% APY on USDe, prompting widespread community concerns about the protocol’s financial sustainability. Following its success, Ethena also caught the attention of large investment funds, becoming the highest-conviction bet for Delphi Ventures for the current cycle. USDe could become the largest dollar-backed asset after Tether’s (USDT) and Circle’s USD Coin (USDC), according to José Maria Macedo, the CEO of Delphi Labs and the founding partner of crypto investment firm Delphi Ventures, who wrote in an April 2 post: “sUSDe will offer the highest dollar yield in crypto at scale. USDe will become the largest stablecoin outside of USDC/USDT in 2024. Ethena will become the highest revenue-generating project in all of crypto.” Related: Ethena Labs founder clarifies USDe stability amid high yield worries

Decentralized finance (DeFi) lending protocol Frax Finance has recently passed a community governance proposal that greenlights a $250 million allocation of Ethena Labs’ USDe to a new liquidity pool. According to its homepage, the protocol is currently offering a 37.1% annual percentage yield (APY) on USDe to over 125,300 investors. Ethena Labs made headlines last week after it announced it was adding Bitcoin backing to its USDe synthetic dollar in an effort to further scale from its current $2 billion supply. Ethena Labs became the highest-earning decentralized application in crypto on March 8 when it offered a 67% APY on USDe, prompting widespread community concerns about the protocol’s financial sustainability. Ethena will become the highest revenue-generating project in all of crypto.”Related: Ethena Labs founder clarifies USDe stability amid high yield worries

How blockchain-based voting can restore trust in the electoral process

Blockchain-based voting systems could foster more transparency and public trust in the election process, according to Brian Rose, an independent mayoral candidate in London and the host of the London Real podcast. Rose told Cointelegraph in an exclusive: “Wouldn't we all sleep better at night if the voting system was on the blockchain and you could really prove that identity and you could actually prove that vote and there would be an immutable record? This is the future and I think it takes someone like me who comes from a business background who's intimately involved in the blockchain.” Public trust in the election processes and political parties has taken a significant hit in recent years. In 2023, only 12% of the public in the United Kingdom said they trusted political parties, down from 20% in 2022, according to a report by the Office for National Statistics (ONS) published in March 2024. Levels of trust in public institutions, UK, 2023, Source: Office for National Statistics Rose clarified that he still maintains confidence in the United Kingdom’s election system, but sees great public benefits from introducing blockchain-based voting: “I’m not implying that the U.K. voting system is not true, but the problem is that when humans are involved, sometimes things don’t go as planned. So we want to put voting on the blockchain.” Beyond introducing an on-chain voting system, Rose also aims to make London more crypto innovation-friendly, to restore its status as a leading global financial center. He said: “[London] is not pro-crypto, whereas it used to be the greatest financial center in the world.” Brian Rose, Interview with Cointelegraph. Source: Cointelegraph The former Wall Street banker said that financial education is severely lacking in the country, which is why he aims to create a new London cryptocurrency and a financial education platform to empower citizens. “Financial education is king. But the only way to do it is to do it now with blockchain… I also want to create the London coin and get it into the hands of every man, woman, and child in this city to finally create a system for financial education.” While the details of the London token are still being finalized, Rose said that it will function as a regular cryptocurrency with price fluctuations and that it could potentially be launched on the Polygon or Avalanche blockchain. Rose plans to offer day-to-day utilities for the London crypto, including staking, payment of public transport, taxes, and other public services. Related: Hong Kong Bitcoin and Ether ETFs officially approved to start trading on April 30 Financial institutions would pay a 1% financial education tax for London coin The independent mayoral candidate is planning to issue the London token to around 10 million people living in the Greater London area, to incentivize users to learn about the intricacies of blockchain and crypto. To subsidize the costs, large financial institutions headquartered in London would be required to pay a 1% tax: “We're going to give a 1% one-off financial education tax to any institution that has a global headquarters here behind me in the city of London that will be a liquidity pool that gets injected into The London coin.” Rose said he invested over $10 million into 40 different Web3 companies, which is part of the reason he is so confident about the potential of blockchain technology. Related: Bitcoin outperforms Tesla stock for the first time since 2019

Blockchain-based voting systems could foster more transparency and public trust in the election process, according to Brian Rose, an independent mayoral candidate in London and the host of the London Real podcast. So we want to put voting on the blockchain.”Beyond introducing an on-chain voting system, Rose also aims to make London more crypto innovation-friendly, to restore its status as a leading global financial center. Source: CointelegraphThe former Wall Street banker said that financial education is severely lacking in the country, which is why he aims to create a new London cryptocurrency and a financial education platform to empower citizens. “Financial education is king. Rose plans to offer day-to-day utilities for the London crypto, including staking, payment of public transport, taxes, and other public services.

Spot Bitcoin ETFs regain traction, posting $418M net inflows

Fresh capital is flowing back into United States spot Bitcoin (BTC) exchange-traded funds (ETFs) following a five-day span of consecutive net outflows. Led by strong inflows into BlackRock’s and Fidelity’s funds, the 10 recently approved spot Bitcoin ETFs saw a combined net inflow of $418 million on March 26, according to Farside Investors data. Bitcoin ETF flows (USD). Source: Farside Investors Fidelity’s fund generated its largest daily inflow since March 13, notching $279.1 million on March 26 — as the investment giant snapped up an additional 4,000 BTC. This marked the second consecutive day the fund has seen inflows exceeding $260 million. Fidelity FBTC flows. Source: HODL15Capital Additionally, BlackRock’s fund attracted inflows of $162.2 million. However, its daily inflows remain low compared to inflows earlier this month, which averaged over $300 million per day. Ark 21Shares Bitcoin ETF fund had its best day since March 12, notching $73.6 million in inflows, while Invesco Galaxy, Franklin Templeton and Valkyrie all saw more than $26 million worth of inflows across their respective funds. Meanwhile, Grayscale’s Bitcoin Trust (GBTC) continued to bleed — notching a daily outflow of $212 million; however, it was not enough to outweigh the net inflows of its competitors. Since converting from a trust to an ETF on Jan. 11, Grayscale has shed a whopping 277,393 BTC worth roughly $19.5 billion at current prices. Related: Hashdex’s new spot Bitcoin ETF to begin US trading on Wednesday In a March 26 post to X, Bloomberg senior ETF analyst Eric Balchunas noted the presence of Bitcoin ETFs in a chart of the largest 30 asset funds in their first 50 days of trading. Four Bitcoin ETFs made the list of global funds with BlackRock’s IBIT and Fidelity’s FBTC “in a league of their own,” he exclaimed. Balchunas noted that even the Bitwise Bitcoin ETF (BITB) — currently the 18th-largest Bitcoin ETF by assets under management — was larger than the world’s largest SPDR Gold Shares (GLD) fund. Crypto asset management firm Hashdex claimed its place as the 11th spot Bitcoin ETF issuer in the U.S. on March 26 after announcing the conversion of its futures fund to a spot product, which now trades under the ticker DEFI. Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO

Fresh capital is flowing back into United States spot Bitcoin (BTC) exchange-traded funds (ETFs) following a five-day span of consecutive net outflows. Led by strong inflows into BlackRock’s and Fidelity’s funds, the 10 recently approved spot Bitcoin ETFs saw a combined net inflow of $418 million on March 26, according to Farside Investors data. Bitcoin ETF flows (USD). Balchunas noted that even the Bitwise Bitcoin ETF (BITB) — currently the 18th-largest Bitcoin ETF by assets under management — was larger than the world’s largest SPDR Gold Shares (GLD) fund. Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO

BlackRock, Grayscale have to wait for SEC’s spot ETH ETF decisions

The United States Securities and Exchange Commission (SEC) will delay its decisions on the BlackRock and Grayscale applications for spot Ether (ETH) exchange-traded funds (ETFs). The SEC released notices of the delay in the Grayscale decision and the amending of the BlackRock application just hours after the agency pushed back its decision on Franklin Templeton’s proposed spot ETH ETF. The SEC decision on converting digital asset manager Grayscale’s ETH Trust to a spot ETH exchange-traded product on NYSE Arca was due on April 24, but will now be extended 60 days to June 23. “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 1,” the agency wrote in its notice on April 23. It published the notice of Grayscale’s amendment filing on April 2. The amendment strengthened Grayscale’s arguments, but did not materially change its proposal. Related: Ether ETFs will ‘probably be rejected’ in May — VanEck CEO The SEC is now expected to make a decision on the Franklin Templeton application by June 11. Also on April 23, Grayscale filed an S-3 form, which is similar to the S-1 but shorter, for a Grayscale ETH Trust and an S-1 for a Grayscale ETH Mini Trust. SEC notice of filing of BlackRock amendment. Source: sec.gov BlackRock filed an S-1 application for a spot ETH ETF in November. The decision on the BlackRock application was delayed in March. Later that month, the SEC pushed back decisions on Hashdex and ARK 21 spot ETH ETF applications by two months to late May. BlackRock filed the amendment to the application on April 19. The April 23 SEC notice details the changes found in the amendment, which mainly concern the creation and redemption of shares. It also extends the comment period on the proposal for 21 days after its publication in the Federal Register. No new deadline for an SEC decision on it was specified. Source: Eleanor Terrett Observers say the SEC is unengaged with spot ETH ETF applications, which many interpret to be a sign of looming rejection. Grayscale won a victory over the SEC in August when an appeals court partially overturned the SEC's rejection of its application to convert its over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin (BTC) ETF. Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO

The United States Securities and Exchange Commission (SEC) will delay its decisions on the BlackRock and Grayscale applications for spot Ether (ETH) exchange-traded funds (ETFs). The SEC released notices of the delay in the Grayscale decision and the amending of the BlackRock application just hours after the agency pushed back its decision on Franklin Templeton’s proposed spot ETH ETF. Also on April 23, Grayscale filed an S-3 form, which is similar to the S-1 but shorter, for a Grayscale ETH Trust and an S-1 for a Grayscale ETH Mini Trust. Later that month, the SEC pushed back decisions on Hashdex and ARK 21 spot ETH ETF applications by two months to late May. Source: Eleanor TerrettObservers say the SEC is unengaged with spot ETH ETF applications, which many interpret to be a sign of looming rejection.

Web3 dev platform Mirror World launches first gaming rollup chain on Solana

Web3 application development platform Mirror World is launching the first gaming rollup on Solana. According to the March 29 announcement, the novel Solana Virtual Machine (SVM) computation engine, dubbed “Sonic,” will allow developers to deploy game engines or virtual machines of their choice on Solana via its software development kit (SDK) and power in-app transactions. At the same time, HyperGrid, the core technology of the Sonic SVM developed by Mirror World, enables gaming platforms to create their own on-ramp and cross-chain decentralized exchange (DEX) aggregators for Solana in-game interactions. Currently, the Mirror World SDK has been deployed to 50 gaming clients as initial distribution nodes. Three games, Mahjong Meta, Matr1x Fire and Seraph/ActozSoft, with over $30 million raised in their series rounds, have seen more than 200,000 traffic and transaction engagements generated during their gaming sessions after incorporating the Mirror World SDK. “Sonic provides natively integrated tools for payment & settlement infrastructure, as well as user engagement tools necessary to build a successful Web3 game,” Mirror World wrote. Chris Zhu, CEO of Mirror World, explained that the firm has worked with hundreds of games within the Web3 ecosystem to aid in their monetization and listing. “Sonic’s vision is to expand the existing Solana Gaming Ecosystem and process millions of requests per second per game and settle them back onto Solana L1,” Zhu stated. Another of Mirror World’s products, the Smart Marketplace SDK, allows developers to deploy a namesake nonfungible token marketplace within their decentralized application for $299 per month with a limit of $1 million in monthly transaction volume. Mirror World’s Sonic launch event. Source: World Store (by Mirror World) Solana has emerged to become a top five blockchain by market cap with a gain of 824% over the past year. However, gaming activities on Solana have lagged so far in development relative to Ethereum, with the most popular game, MomoAI, having only 80,680 unique active wallets. That said, the blockchain is gaining traction in other initiatives. In February, Solana hit an all-time high of $5 billion in nonfungible token sales. Related: Solana to outpace Ethereum in consumer applications — Former head of growth

Web3 application development platform Mirror World is launching the first gaming rollup on Solana. Currently, the Mirror World SDK has been deployed to 50 gaming clients as initial distribution nodes. “Sonic provides natively integrated tools for payment & settlement infrastructure, as well as user engagement tools necessary to build a successful Web3 game,” Mirror World wrote. Chris Zhu, CEO of Mirror World, explained that the firm has worked with hundreds of games within the Web3 ecosystem to aid in their monetization and listing. “Sonic’s vision is to expand the existing Solana Gaming Ecosystem and process millions of requests per second per game and settle them back onto Solana L1,” Zhu stated.

Montenegro’s Supreme Court sends Do Kwon’s extradition case back to lower court

The Supreme Court of Montenegro has annulled a decision from the country’s lower courts affecting the extradition of Terraform Labs co-founder Do Kwon to either the United States or South Korea. In an April 5 notice, Montenegro’s Supreme Court said it had approved a request for a protection of legality against a lower court decision that would have allowed Kwon’s extradition to South Korea. Prosecutors who made the request argued that an appellate court violated procedure in rejecting an appeal from Kwon’s legal team, placing the final decision on the Supreme Court. “In a situation where it is a matter of competing requests from two states for the extradition of the same person, and not a conflict of requests for the extradition of the same person, as found by the lower courts, the court’s obligation is to determine, in accordance with its powers, whether the legal conditions for extradition have been met the defendant in relation to each petition individually, after which the competent minister, not the court, decides on the permission and order of priority of extradition,” said the ruling. The Supreme Court said the decision of Kwon’s extradition would return to the High Court in Podgorica, which could decide whether the Terraform co-founder is sent to the U.S. or his native South Korea. He faces criminal charges in both countries but has been in Montenegro since his arrest in the country in March 2023 for using falsified travel documents. Kwon reportedly remains free to travel within Montenegro until the courts decide on his extradition case. Related: Here are the next biggest crypto court cases with the SBF saga over With the absence of Kwon, lawyers representing the U.S. Securities and Exchange Commission have moved forward with a jury trial against Terraform and the co-founder in March. Some of Kwon’s previous statements have been read into the record at trial. The case was ongoing at the time of publication. While Kwon remains in Montenegro, Terraform Labs’ former chief financial officer Han Chang-joon — also arrested in March 2023 — was extradited to South Korea. South Korean authorities have indicted several individuals connected to Terraform Labs, including co-founder Hyun-seong Shin. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

The Supreme Court of Montenegro has annulled a decision from the country’s lower courts affecting the extradition of Terraform Labs co-founder Do Kwon to either the United States or South Korea. In an April 5 notice, Montenegro’s Supreme Court said it had approved a request for a protection of legality against a lower court decision that would have allowed Kwon’s extradition to South Korea. Prosecutors who made the request argued that an appellate court violated procedure in rejecting an appeal from Kwon’s legal team, placing the final decision on the Supreme Court. The Supreme Court said the decision of Kwon’s extradition would return to the High Court in Podgorica, which could decide whether the Terraform co-founder is sent to the U.S. or his native South Korea. Kwon reportedly remains free to travel within Montenegro until the courts decide on his extradition case.

CFTC commissioner warns against infringing on SEC’s authority in KuCoin case

Caroline Pham, a commissioner with the United States Commodity Futures Trading Commission (CFTC), has suggested that a recent “aggressive” crypto enforcement action could put the regulator at odds with the Securities and Exchange Commission. In a March 29 statement, Pham said the CFTC appeared to have exerted authority over certain securities in its enforcement case against cryptocurrency exchange KuCoin. The commission charged the firm “with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations” on March 26, parallel to criminal charges from the U.S. Justice Department. “The CFTC’s approach may infringe upon the SEC’s authority and undermine decades of robust investor protection laws by conflating a financial instrument with a financial activity, disrupting the foundations of securities markets,” said Pham. “Owning shares is not the same thing as trading derivatives.” Related: KuCoin says user assets are unaffected by US SDNY indictment Pham’s statement echoed concerns from many U.S. lawmakers and regulators about the role the CFTC and SEC should play over cryptocurrencies and how they are judged as commodities or securities. Officials representing both regulators have been at odds over Ether (ETH) recently as crypto firm Prometheum announced it planned to offer custody services as a security. The KuCoin complaint from the CFTC suggested that Ether was a commodity. However, legal experts said the SEC potentially labeling ETH as a security could impact the commission’s decision on several spot Ether exchange-traded fund applications in the pipeline. Magazine: KuCoin’s desperate $10M airdrop, 1 tweet raises $37M for memecoin: Asia Express

Caroline Pham, a commissioner with the United States Commodity Futures Trading Commission (CFTC), has suggested that a recent “aggressive” crypto enforcement action could put the regulator at odds with the Securities and Exchange Commission. In a March 29 statement, Pham said the CFTC appeared to have exerted authority over certain securities in its enforcement case against cryptocurrency exchange KuCoin. The commission charged the firm “with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations” on March 26, parallel to criminal charges from the U.S. Justice Department. “The CFTC’s approach may infringe upon the SEC’s authority and undermine decades of robust investor protection laws by conflating a financial instrument with a financial activity, disrupting the foundations of securities markets,” said Pham. The KuCoin complaint from the CFTC suggested that Ether was a commodity.

Indonesian NFT ‘selfie guy’ makes $1.8M, CryptoPunks sells for $16M: Nifty Newsletter

In this week’s newsletter, read about how an Indonesian man who sold nonfungible token (NFT) selfies in 2022 is making a comeback through memecoins. Check out how asset manager BlackRock’s crypto wallet received memecoins and NFTs after depositing a stablecoin in the wallet. In other news, find out how the CEO of Pixelmon is betting on fractionalized NFTs, and learn about a new CryptoPunk transaction taking the second-largest sale record for the collection. Indonesian NFT “selfie guy” makes $1.8 million in memecoin comeback Sultan Gustaf Al Ghozali, who gained popularity from selling selfie NFTs in 2022, is making a comeback with a hybrid project combining NFTs and memecoins. Ghozali announced the project, its details and a presale address on March 24. Days after the announcement, the presale address had 527 Ether (ETH), worth about $1.8 million. Despite this, Ghozali said he would refund the amount exceeding the 400-ETH cap he set for the project. Continue reading BlackRock receives memecoins, NFTs after depositing $100 million USDC on-chain Asset management company BlackRock received at least $40,000 worth of memecoins and NFTs after on-chain sleuths found out about one of its wallets connected to a new tokenization fund. After BlackRock made a filing to offer its BlackRock USD Institutional Digital Liquidity Fund, a $100-million USD Coin (USDC) deposit was flagged. Because of this, unnamed crypto users sent at least 40 different tokens and 25 NFTs to the BlackRock labeled address on Etherscan. This ranged from Bitcoin Ordinals’ Pepe coin to a “CryptoDickbutts S3” NFT. Continue reading Pixelmon CEO bets on fractionalized NFTs for its huge comeback Crypto project Pixelmon, once mocked as the “worst NFT project,” has tapped into fractionalization to make a comeback. CEO Giulio Xiloyannis told Cointelegraph in an interview that they would redo the artworks of the project apart from “Kevin,” a popular NFT piece in the Pokemon-inspired project. Xiloyannis said that Pixelmon will be free to play but will have Web3 elements. By owning an NFT, holders could earn royalties when the likeness of the NFT is used outside the game. Traders can also own fractions of an NFT and earn according to the percentage they own. Continue reading CryptoPunks record another $16-million NFT sale in March Blue-chip NFT collection CryptoPunks saw another $16-million transaction in March, becoming the collection’s second-largest NFT sale. On March 20, CryptoPunk #7804 sold for 4,850 ETH, worth about $16.4 million at the time of the transaction. Peruggia, the long-time owner of the NFT, bid farewell and described the sale as the “end of an era.” The NFT owner purchased the CryptoPunk for 4,200 ETH in 2021 (worth about $7.5 million). Continue reading Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.

In this week’s newsletter, read about how an Indonesian man who sold nonfungible token (NFT) selfies in 2022 is making a comeback through memecoins. Check out how asset manager BlackRock’s crypto wallet received memecoins and NFTs after depositing a stablecoin in the wallet. Indonesian NFT “selfie guy” makes $1.8 million in memecoin comebackSultan Gustaf Al Ghozali, who gained popularity from selling selfie NFTs in 2022, is making a comeback with a hybrid project combining NFTs and memecoins. Continue readingPixelmon CEO bets on fractionalized NFTs for its huge comebackCrypto project Pixelmon, once mocked as the “worst NFT project,” has tapped into fractionalization to make a comeback. Continue readingCryptoPunks record another $16-million NFT sale in MarchBlue-chip NFT collection CryptoPunks saw another $16-million transaction in March, becoming the collection’s second-largest NFT sale.

DeFi hub Chainage seeks tokenholder approval for $13M capital raise

Decentralized finance service provider Chainage, with around $100 million in total value locked, is seeking to raise $13 million for protocol expansion, contingent on tokenholders’ approval within its native decentralized autonomous organization (DAO). According to the April 1 snapshot proposal, the $13 million raise, led by an unknown venture capital firm, will result in the issuance of 50 million additional XCHNG protocol tokens, representing approximately 10% of Chainage’s circulating supply. The issuance price of $0.26 is roughly at par with XCHNG’s token price at the time of publication. Users are able to vote in the proposal by staking their native XCHNG tokens in exchange for “vXCHNG,” which represents voting rights tokens. “We are set to implement numerous strategies to enhance usage and profitability, as a result enabling us to assure vXCHNG holders a minimum of $1 Million in profit generation for Q2,” Chainage wrote, adding: “As previously stated, 80% of this profit will be allocated to vXCHNG holders, distributed according to our profit-sharing mechanism, as a direct advantage of the capital investment.” Global expansion and visibility are the two main goals of the $13 million raise. The project also seeks to recruit “top-tier talent to fuse AI with cutting-edge technology” to position Chainge as a “leader in AI-powered crypto innovators.” The new capital, if approved, would also be used to incentivize Chainage’s liquidity, alongside supporting new partnerships, marketing ventures and rewards for tokenholders. The proposal has received 186 million XCHNG votes in favor and 7.2 million XCHNG votes against at the time of publication, against a backdrop of a 474 million circulating XCHNG balance. The move marks a stark contrast to the venture capital scene of crypto startups, which typically solicit new investments based on the approval of shareholders, who are typically the company’s co-founders. Recently, more and more Web3 startups are turning to accelerator programs as crypto enters a new bull market and investors look to cash in on the craze. Related: Marc Andreessen, Galaxy Digital, Accolade, back new $75 million crypto fund

Decentralized finance service provider Chainage, with around $100 million in total value locked, is seeking to raise $13 million for protocol expansion, contingent on tokenholders’ approval within its native decentralized autonomous organization (DAO). According to the April 1 snapshot proposal, the $13 million raise, led by an unknown venture capital firm, will result in the issuance of 50 million additional XCHNG protocol tokens, representing approximately 10% of Chainage’s circulating supply. Users are able to vote in the proposal by staking their native XCHNG tokens in exchange for “vXCHNG,” which represents voting rights tokens. The proposal has received 186 million XCHNG votes in favor and 7.2 million XCHNG votes against at the time of publication, against a backdrop of a 474 million circulating XCHNG balance. Related: Marc Andreessen, Galaxy Digital, Accolade, back new $75 million crypto fund

Over $1B in US Treasurys have now been tokenized on-chain

More than $1 billion worth of United States Treasurys now exist across Ethereum, Polygon, Solana, and other blockchains, helped in part by the recent launch of the BlackRock USD Institutional Digital Liquidity Fund. BlackRock’s product, tickered “BUIDL,” was launched on Ethereum on March 20 and now boasts a market cap of $244.8 million. According to Etherscan, four transactions to the fund totaling $95 million over the week added a boost to the fund, making it the second largest tokenized government securities fund. BUIDL now only trails Franklin Templeton’s 11-month-old Franklin OnChain U.S. Government Money Fund (FOBXX), which has $360.2 million in U.S. Treasurys, according to data compiled by the parent firm of 21Shares on a Dune Analytics dashboard. The dashboard shows that $1.08 billion in U.S. Treasurys have now been tokenized across 17 products. The most recent $79.3 million deposit to BlackRock’s fund was made by real-world asset tokenization firm Ondo Finance, which will allow instant settlements for its own U.S. Treasury-backed token, OUSG. The firm made a total of $95 million in deposits across four transactions, according to Etherscan. Ondo Finance now owns a 38% share in BUIDL, noted Tom Wan, a research strategist at 21.co in a March 27 X post. BUIDL’s price is pegged 1:1 with the United States dollar and pays daily accrued dividends directly to investors each month. It was launched on Ethereum via the Securitize protocol. In its Dune dashboard, 21.co described tokenized government treasurys as more appealing from both a risk and return perspective than stablecoin yields, given the current high-interest rate environment. Related: BlackRock receives memecoins, NFTs after depositing $100M USDC onchain BlackRock CEO Larry Fink recently voiced that capital markets could be made more efficient by blockchain tokenization, which Boston Consulting Group estimates will become a $16 trillion market by 2030. U.S. Treasurys are only one piece of the pie — stocks, real estate and many other assets can also be tokenized. Ethereum also accounts for $700 million of all real-world assets (RWA) tokenized on-chain. Franklin Templeton’s FOBXX is tokenized on Stellar and Polygon, which have the second and third largest market share of tokenized products at $358 million and $13 million, respectively. WisdomTree another large asset management firm tokenizing RWAs, while Ondo Finance, Backed Finance, Matrixdock, Maple Finance and Swarm are among the blockchain-native firms operating in the space. Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame

The dashboard shows that $1.08 billion in U.S. Treasurys have now been tokenized across 17 products. In its Dune dashboard, 21.co described tokenized government treasurys as more appealing from both a risk and return perspective than stablecoin yields, given the current high-interest rate environment. U.S. Treasurys are only one piece of the pie — stocks, real estate and many other assets can also be tokenized. Ethereum also accounts for $700 million of all real-world assets (RWA) tokenized on-chain. Franklin Templeton’s FOBXX is tokenized on Stellar and Polygon, which have the second and third largest market share of tokenized products at $358 million and $13 million, respectively.

Lido’s Ethereum staking market share dips below 30%

The recent influx of Ether (ETH) stakers brought the market share of liquid staking solution Lido down to 29.57% from 32% in December 2023, helping reduce concerns around Lido’s growing influence on the ecosystem. Lido’s popularity in ETH staking, coupled with the lack of competition in the space, allowed the platform to earn the lion’s share of the ETH staking market. The community feared that any entity representing over 33% of the market could influence various aspects of the Ethereum blockchain. As of April 4, data from crypto analytics platform Dune shows that Lido’s market share for staked ETH dipped below 30%. ETH stakers overview. Source: Dune Analytics Other prominent entities contributing to the ETH staking ecosystem are crypto exchanges Coinbase (14.04%) and Binance (3.75%) and Ethereum staking platform Kiln (3.5%). However, the second-largest entity in ETH staking is marked as “unidentified,” which currently represents 16.9% of the market. ETH stakers ranking and overall contribution. Source: Dune Analytics There are 26 known entities that contribute to ETH staking in total, including crypto exchanges Kraken (2.4%), Bitcoin Suisse (1.6%), OKX (1.2%) and Upbit (1.1%). According to Ethereum co-founder Vitalik Buterin, stake pools should not have more than 15% control and should choose to “keep increasing its fee rate until it goes back below 15%.” The Lido decentralized autonomous organization (DAO) community previously tried to solve the ETH staking dominance issue by proposing a hard limit in May 2022. However, the DAO rejected the proposal with a 99.81% vote in June 2022. The Lido DAO community voted against adding a hard limit on staking contribution. Source: snapshot.org Increasing competition among ETH staking service providers is expected to play a major role in further decentralizing the staking ecosystem. Related: Ethereum earnings tripled in Q1 2024, reaching $370M In a recent Coinbase report, in-house analysts noted the possibility of several risks around Ether restaking and the issuance of so-called liquid restaking tokens (LRTs). Using the Ethereum restaking protocol Eigenlayer as an example, the analysts said, “While this (restaking) can increase earnings, it can also compound risks” as it allocates the same funds to similar validators for increased yield. “As such, LRTs may be incentivized to maximize their yields in order to gain market share, but these could come at the cost of a higher (albeit hidden) risk profile,” they added. Magazine: Ethereum’s ERC-20 design flaws are a crypto scammer’s best friend

Lido’s popularity in ETH staking, coupled with the lack of competition in the space, allowed the platform to earn the lion’s share of the ETH staking market. As of April 4, data from crypto analytics platform Dune shows that Lido’s market share for staked ETH dipped below 30%. Source: Dune AnalyticsOther prominent entities contributing to the ETH staking ecosystem are crypto exchanges Coinbase (14.04%) and Binance (3.75%) and Ethereum staking platform Kiln (3.5%). However, the second-largest entity in ETH staking is marked as “unidentified,” which currently represents 16.9% of the market. Source: snapshot.orgIncreasing competition among ETH staking service providers is expected to play a major role in further decentralizing the staking ecosystem.

Mt. Gox’s $9B overhang could ‘spook the market,’ pressure Bitcoin: K33

The potential return of more than $9 billion worth of Mt. Gox-era Bitcoin (BTC) over the next few weeks might “spook the market” and put negative price pressure on Bitcoin, according to K33 Research analysts. Earlier this week on Reddit, some creditors of the failed Mt. Gox crypto exchange reported seeing updates on their claims, with many interpreting it to mean that crypto payments could soon be coming. The updates included how much cryptocurrency and fiat were owed to creditors as well as completed repayment dates. The new updates could mean creditors might start seeing Bitcoin returned as soon as next month — assuming it follows a similar repayment schedule for fiat in March, K33 Research analysts Anders Helseth and Vetle Lunde wrote in an April 23 market note. Over $9.4 billion in Bitcoin and $72 million in Bitcoin Cash (BCH) is owed to Mt. Gox’s 127,000 creditors, along with $445.8 million (69 billion Japanese yen). “Mt. Gox coins could become a relevant negative price contributor in the next weeks,” said Helseth and Lunde. While the release of Bitcoin may not necessarily equate to selling pressure, the “overhang” of 142,000 BTC and 143,000 BCH could still “spook the market,” they added. Bitcoin is currently trading at just over $66,700, though recent volatility has been attributed to changing tensions in the Middle East and the Bitcoin halving on April 20. Related: Mt. Gox trustee updates Bitcoin and fiat repayment timetable Mt. Gox creditors have been waiting on the return of their funds for more than 10 years after the exchange collapsed in February 2014 when it succumbed to a series of hacks that went unnoticed for years. In January, the Mt. Gox trustee began reaching out to creditors to confirm their identity and their crypto exchange accounts used to repay their owed Bitcoin and Bitcoin Cash. Meanwhile, reports in December last year showed that some creditors had already started to receive Japanese yen repayments. More creditors reported receiving further fiat transfers in March, the K33 report noted. Mt. Gox has a final repayment deadline of Oct. 31, 2024, for base repayments, early lump-sum repayments and intermediate repayments, though this can still be subject to change. Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis

Gox-era Bitcoin (BTC) over the next few weeks might “spook the market” and put negative price pressure on Bitcoin, according to K33 Research analysts. Gox crypto exchange reported seeing updates on their claims, with many interpreting it to mean that crypto payments could soon be coming. Over $9.4 billion in Bitcoin and $72 million in Bitcoin Cash (BCH) is owed to Mt. Gox trustee updates Bitcoin and fiat repayment timetableMt. Gox trustee began reaching out to creditors to confirm their identity and their crypto exchange accounts used to repay their owed Bitcoin and Bitcoin Cash.

Average daily active unique wallets reach 7M — DappRadar

The latest report from DappRadar highlights a slew of bullish indicators in the decentralized application (DApp) and Web3 sector for Q1 2024. DApps saw a quarter-over-quarter usage increase of 77% on the whole, with a total daily active user wallet count of 7 million. This shows an increase of approximately 40% since February 2024, indicating the highest adoption rates since 2022. According to DappRadar, the influx of new users “signals a robust recovery and the end of the longest bear market we’ve experienced.” These perceived gains come on the heels of a banner quarter for the world’s most popular cryptocurrency, with Bitcoin reaching new all-time highs on several occasions in the wake of the United States Securities and Exchange Commission’s approval of numerous spot Bitcoin exchange-traded fund applications. Related: New record: Bitcoin ETFs hit $1B in daily inflow As Cointelegraph recently reported, much of this recent growth in the DApp sector has been driven by a renewed interest in nonfungible tokens (NFTs) throughout 2023 after a usage decline in 2022. Wallet counts for unique active daily users rose to 4.8 million in 2023, more than double the previous year’s users. According to DappRadar, nonfungible tokens (NFTs) posted the highest gains last year, with a 166% increase over 2022. The NFT sector has remained strong through 2024 so far. According to DappRadar, the first quarter saw a 50% surge in trading volume, at $3.9 billion, and a 13% lift in sales to $11.6 million. This was the strongest quarter for NFTs since Q1 2023. In the first quarter of 2024, however, the social vertical has been at the front of the sector’s growth, with a 324% surge in active wallets. Decentralized finance, gaming and NFTs still performed well, but the uptick in activity for social media DApps could indicate an industry trend. Finally, while nearly every indicator shows positive momentum for Web3, there is some bad news. Per the report, losses to exploits and hacks are up 9% year over year. This is down 32% over Q4 2024, but losses totaled $407 million for Q1 2024 alone.

The latest report from DappRadar highlights a slew of bullish indicators in the decentralized application (DApp) and Web3 sector for Q1 2024. DApps saw a quarter-over-quarter usage increase of 77% on the whole, with a total daily active user wallet count of 7 million. Wallet counts for unique active daily users rose to 4.8 million in 2023, more than double the previous year’s users. In the first quarter of 2024, however, the social vertical has been at the front of the sector’s growth, with a 324% surge in active wallets. This is down 32% over Q4 2024, but losses totaled $407 million for Q1 2024 alone.

Bored Ape floor price sinks, NASA training astronauts in the metaverse: Nifty Newsletter

​​Welcome to the latest edition of Cointelegraph’s Nifty Newsletter. Keep reading to stay up-to-date with the latest stories on nonfungible tokens. Every Wednesday, the Nifty Newsletter informs and inspires you to dig deeper into the latest NFT trends and insights. Read about how NASA uses virtual reality (VR) technology and the metaverse to train its astronauts in this week’s newsletter. What’s behind the decline in the floor price of Bored Ape Yacht Club (BAYC) NFTs? And Cointelegraph has exclusive updates from Paris Blockchain Week, including Ubisoft’s blockchain gaming plans. NASA created a VR metaverse to prep astronauts for life on the lunar space station While most of us spend our time in the metaverse trading assets or bopping around in virtual reality on legless avatars, astronauts working with the National Aeronautics and Space Administration (NASA) and SpaceX are using the metaverse to prepare for life aboard a lunar space station that has yet to be built. The first humans to make their homes in deep space, according to NASA, will be the team tasked with operating a space station currently under development called “Gateway.” Continue reading Ubisoft teases new blockchain game at Paris Blockchain Week AAA game studio Ubisoft is edging closer to releasing its first blockchain-based game after releasing the first gameplay trailer for Champions Tactics Grimoria during Paris Blockchain Week. The tactical player-vs-player role-playing game’s lead developers gave Cointelegraph an exclusive playthrough at the conference. The RPG allows players to craft blockchain-based figurines with unique features and characteristics that can be combined into a team of three for the turn-based game. Continue reading Bored Ape NFT floor price hits lowest point in over two and a half years The floor price of BAYC NFTs has fallen over 90% from its peak to 11.1 Ether (ETH) — its lowest point since August 2021. BAYC is now approaching a sub-10 ETH floor price after a 50% fall since March 1 alone, according to NFT Price Floor. The NFT collection’s fall from a peak of 128 ETH set on May 1, 2022, is part of an industry-wide decline in popularity for digital art NFTs. However, it should be noted that a few BAYC NFTs have continued to sell significantly above their floor price, which is calculated by taking the lowest-priced NFT in a given collection. Continue reading VeChain announces tokenized gloves in partnership with UFC According to an April 12 blog post from VeChain, gloves worn by Ultimate Fighting Championship (UFC) fighters will soon be tokenized, and their identities will be tracked on the VeChainThor network. The gloves will contain VeChain near-field communication chips that record fight data, proving the authenticity of each pair, the post stated. After the fight, the athletes will “donate and give away” their gloves, making them into collectors’ items. The chips inside each pair will allow a buyer to check the item’s authenticity via a VeChainThor network smart contract. Fighters began wearing the gloves at UFC 300 on April 13. Continue reading Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.

What’s behind the decline in the floor price of Bored Ape Yacht Club (BAYC) NFTs? And Cointelegraph has exclusive updates from Paris Blockchain Week, including Ubisoft’s blockchain gaming plans. Continue readingBored Ape NFT floor price hits lowest point in over two and a half yearsThe floor price of BAYC NFTs has fallen over 90% from its peak to 11.1 Ether (ETH) — its lowest point since August 2021. BAYC is now approaching a sub-10 ETH floor price after a 50% fall since March 1 alone, according to NFT Price Floor. Continue readingThanks for reading this digest of the week’s most notable developments in the NFT space.

Canada to begin implementing international crypto tax reporting standard

According to a supplement to the 2024 annual budget, Canada expects to apply the international Crypto-Asset Reporting Framework (CARF) for taxation by 2026. The country is getting an early start on the new standard, which is expected to be observed by 47 countries by 2027. The CARF would impose new reporting requirements on crypto asset service providers (CASPs), such as cryptocurrency exchanges, crypto-asset brokers and dealers and crypto-asset automated teller machine operators, whether they are individuals or business entities. The supplemental report listed “stablecoins, derivatives issued in the form of a crypto-asset, and certain nonfungible tokens” as examples of crypto assets. CASPs would be required to report to the Canada Revenue Agency (CRA) transactions between crypto assets and fiat and crypto assets for other crypto assets. Crypto asset transfers carried out by CASPs, including payment processing, when the value exceeds $50,000 United States dollars, would also need to be reported. In addition: “Crypto-asset service providers would be required to obtain and report information on each of their customers, including name, address, date of birth, jurisdiction(s) of residence, and taxpayer identification numbers for each jurisdiction of residence.” CASPs resident in Canada or doing business in Canada would be subject to the requirements. Transactions by Canadian residents and nonresidents, whether individuals or entities, would be reported. Related: Crypto industry tops all Canadian fintech investments 2 years in a row Central bank digital currency and “digital representations of fiat currencies” (such as stablecoins) would not be reported under the CARF, as they are accounted for under amendments to the Organisation for Economic Cooperation and Development (OECD) Common Reporting Standard (CRS) for the sharing of information among international tax authorities. Source: Luke Belmar Information collected under the CARF would also be shared internationally. Like the CRS, the CARF was developed by the OECD. The creation of the CARF was motivated by the fact that the CRS did not capture transactions that did not go through traditional financial intermediaries. The OECD introduced the CARF at a meeting of G20 finance ministers and central bank governors in October 2022. In November 2023, 47 countries pledged to incorporate the CARF into domestic law by 2027. The OECD has 38 members, mainly in Europe. Magazine: Your guide to crypto in Toronto: Crypto City

According to a supplement to the 2024 annual budget, Canada expects to apply the international Crypto-Asset Reporting Framework (CARF) for taxation by 2026. The country is getting an early start on the new standard, which is expected to be observed by 47 countries by 2027. The supplemental report listed “stablecoins, derivatives issued in the form of a crypto-asset, and certain nonfungible tokens” as examples of crypto assets. CASPs would be required to report to the Canada Revenue Agency (CRA) transactions between crypto assets and fiat and crypto assets for other crypto assets. Magazine: Your guide to crypto in Toronto: Crypto City

$102M shorts liquidated as Bitcoin price surpassed $72K

Over $102 million worth of leveraged short positions were liquidated in the past 24 hours as Bitcoin (BTC) was trading above $70,400. Is the breakout from BTC’s weekly price range confirmed? Over $33 million worth of Bitcoin shorts liquidated Following April 8’s weekly high of $72,668, Bitcoin price retraced to trade above the $70,413 mark, falling 0.55% in the 24 hours leading up to 9:45 am UTC, according to CoinMarketCap data. BTC/USD, 1-day chart, Source: CoinMarketCap Following BTC’s rise to its weekly high, over $102 million worth of leveraged short positions were liquidated in the cryptocurrency market during the past 24 hours, with a total of $186.8 million worth of total liquidations, according to Coinglass data. Liquidation heatmap, 24 hours. Source: Coinglass BTC liquidations totaled $61.6 million, with over $33.9 million in short positions and $27.7 million leveraged longs. The largest single liquidation order amounted to $4.49 million worth of Bitcoin on Binance, the world’s largest exchange. Total liquidations, 24 hours. Source: Coinglass However, the $33 million worth of short Bitcoin liquidations is lower than the $38 million short liquidations on April 2. Moreover, BTC’s sudden 5% drawdown on April 2 liquidated $165 million of leverage in less than two hours. BTC futures short liquidations, all exchanges. Source: Glassnode Now, if BTC’s price rallies back to $73,000, over $507 million worth of cumulative short leverage would be liquidated on Binance. Cumulative short liquidations on Binance would reach $666 million at $73,500. Binance BTC/USDT liquidation map. Source: Coinglass Traders should also watch the $73,000 level — around the current all-time high — which now acts as significant resistance and a potential short-liquidation zone for the BTC price. BTC/USDT liquidation map. Source: Coinglass Related: Bitcoin mining profitability won’t necessarily fall after halving Following the liquidations, the Bitcoin futures funding rate saw a healthy reset, falling to 0.0163% on April 9, almost three times lower than the previous day. However, this is still significantly lower than the three-week high of 0.0714% on April 1. BTC OI-weighted funding rate. Source: Coinglass Bitcoin price breakout confirmed Now, Bitcoin price has successfully retested the old all-time high of $69,000, breaking out of the weekly range, which was needed to confirm future bullish momentum, according to an April 7 X post by popular crypto analyst Rekt Capital. In a subsequent post, the analyst wrote: “Bitcoin Daily Closed above the ~$69,000 level yesterday. And today Bitcoin is enjoying good upside.” BTC/USD, 1-day chart. Source: Rekt Capital Bitcoin’s latest price rally can mainly be attributed to the inflows from spot Bitcoin exchange-traded funds and the anticipation surrounding the upcoming Bitcoin halving, according to Matteo Greco, research analyst at digital asset firm Fineqia. Greco expects a sustained Bitcoin rally following the halving, which could last well into the second quarter of 2025. He told Cointelegraph: “Historically, BTC halving events have marked significant points followed by 9–18 months of uptrend, culminating in cycle peaks. [...] If historical patterns repeat, we may witness an uptrend for the remaining nine months of 2024, leading to a cycle peak expected between Q4 2024 and Q2 2025.” Related: Bitcoin’s 2028 halving price target is $435K, historical data suggests 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.

Over $102 million worth of leveraged short positions were liquidated in the past 24 hours as Bitcoin (BTC) was trading above $70,400. The largest single liquidation order amounted to $4.49 million worth of Bitcoin on Binance, the world’s largest exchange. Total liquidations, 24 hours. Source: CoinglassHowever, the $33 million worth of short Bitcoin liquidations is lower than the $38 million short liquidations on April 2. Source: GlassnodeNow, if BTC’s price rallies back to $73,000, over $507 million worth of cumulative short leverage would be liquidated on Binance.

Crypto derivatives firm Deribit moves to Dubai after winning VARA approval

Deribit, one of the world’s largest exchanges offering options and futures for cryptocurrencies like Bitcoin (BTC), is relocating to Dubai after securing new local regulatory approval. The Dubai subsidiary of Deribit group, Deribit FZE, has received a virtual asset service provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA), Deribit announced on April 2. The new license allows Deribit to offer crypto trading services in Dubai, covering both spot and crypto derivatives trading, such as futures and options. Deribit’s VASP license will remain non-operational until the company fully satisfies all remaining conditions and selects localization requirements defined by VARA. According to the announcement, the exchange will soon share launch plans, terms and the exact timing to start operating under the new licensed entity. Once operational, Deribit will serve institutional and qualified investors in Dubai. The exchange will also continue to serve its retail clients from its broker affiliate in Panama, which is a member of Deribit FZE in Dubai, until further notice. In addition to winning the license, Deribit will be relocating its global headquarters from Panama to Dubai, appointing its former chief commercial officer Luuk Strijers as the new CEO. Related: Bitcoin trades above $69K following largest quarterly options expiry in history According to Deribit co-founder John Jansen, the obtaining of the conditional VASP license from VARA is “not just a regulatory milestone” but rather a sign of the company’s commitment to providing a secure and transparent platform. “As we anchor our operations in Dubai, we’re not only extending our reach but also reaffirming our resolve to remain the platform of choice for trading,” Jansen noted. Cointelegraph approached Deribit for a comment regarding the VARA license but did not receive a response at the time of publication. Deribit is a major cryptocurrency exchange that is focused on derivatives trading. The exchange was founded in 2016 and has emerged as one of the largest crypto derivatives platforms alongside giants like Binance and Bybit. As of April 2, Deribit is ranked the fifth-largest derivatives exchange, with $1.9 billion traded daily, according to CoinMarketCap. Top 10 largest crypto derivatives exchanges. Source: CoinMarketCap Established in March 2022, VARA is the primary regulator of crypto-related activity in all zones across the Emirate of Dubai, including Special Development Zones and Free Zones, but excluding the Dubai International Financial Centre. Since launching the regulatory framework, VARA has issued multiple crypto trading licenses to companies like Binance and OKX. Magazine: SBF gets 25 years in prison, Fidelity eyes ETH staking, and Coinbase’s court loss: Hodler’s Digest, March 24-30

The Dubai subsidiary of Deribit group, Deribit FZE, has received a virtual asset service provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA), Deribit announced on April 2. The new license allows Deribit to offer crypto trading services in Dubai, covering both spot and crypto derivatives trading, such as futures and options. The exchange was founded in 2016 and has emerged as one of the largest crypto derivatives platforms alongside giants like Binance and Bybit. Top 10 largest crypto derivatives exchanges. Since launching the regulatory framework, VARA has issued multiple crypto trading licenses to companies like Binance and OKX.

China is about to start bidding' — Will Hong Kong Bitcoin ETFs spark the halving rally?

The potential approval of the first batch of spot Bitcoin exchange-traded funds (ETFs) in Hong Kong could be a big catalyst for Bitcoin’s (BTC) halving rally, commentators say. Hong Kong could approve 4 Bitcoin ETFs before halving Hong Kong’s Securities and Futures Commission (SFC) could approve the first batch of spot Bitcoin ETFs by April 15, days before the Bitcoin halving is set to cut the supply issuance rate of BTC. The Hong Kong regulator has reportedly accelerated the approval process for four spot Bitcoin ETFs, according to local news media reports. The potential approval could attract more buying demand for Bitcoin, by offering BTC exposure to both retail and institutional investors in Hong Kong. Hong Kong regulators could approve both Bitcoin and Ether ETFs on April 15, according to crypto entrepreneur and investor Lark Davis, who wrote in an April 12 X post: “Hong Kong likely to approve BOTH Bitcoin and Ethereum spot ETFs as soon as Monday! China is about to start bidding the same week the Bitcoin halving is happening!” It will take approximately two weeks to finalize ETF listing procedures on the Hong Kong Stock Exchange, after the securities regulator greenlights the initial set of spot Bitcoin ETFs. Related: How high can Bitcoin go? New BTC price prediction sees cycle top at $180K Can ETFs spark Bitcoin’s post-halving bull run? The approval of the first spot Bitcoin ETFs in Hong Kong could catalyze Bitcoin’s post-halving rally, according to Herbert Sim, chief operating officer of crypto exchange Websea, who told Cointelegraph: “Halving is not the only thing to look out for in the price action. But rather the upcoming Bitcoin ETF approval in Hong Kong, which also happens next week. The big banks of China will all have to start buying Bitcoin themselves too.” Sim noted that Hong Kong-based ETFs will only add to the institutional demand and inflows created by large U.S. ETF issuers such as BlackRock, which he expects to continue. He added: “And with this supply cut from the Bitcoin Halving, prices will definitely soar.” Large investors, or so-called mega whales, that are holding at least 10,000 BTC are accumulating Bitcoin at the current price level, in anticipation of next week’s approval, according to popular crypto commentator Bitcoin Munger’s April 12 X post: “The only cohort that is net-accumulating Bitcoin is the largest whales (>10k). Just ahead of Hong Kong ETF approvals and the halving. A positive contrarian signal if I had to guess.” Trend Accumulation Score by Cohort. Source: Bitcoin Munger ETF inflows have been a significant part of Bitcoin’s price rally. By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark, according to CryptoQuant research. Bitcoin’s price action has been closely correlated with the net Bitcoin ETF inflows, according to Thomas Fahrer, the co-founder of Apollo, who wrote in an April 12 X post, referencing the below chart: “I would have thought it was extremely obvious that ETF flows are driving Bitcoin [price]…” Net Bitcoin Flows, Year-To-Date Chart. Source: Thomas Fahrer Related: Hong Kong’s in-kind ETF creation could be a significant market opportunity: Analysts 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.

The potential approval of the first batch of spot Bitcoin exchange-traded funds (ETFs) in Hong Kong could be a big catalyst for Bitcoin’s (BTC) halving rally, commentators say. Hong Kong could approve 4 Bitcoin ETFs before halvingHong Kong’s Securities and Futures Commission (SFC) could approve the first batch of spot Bitcoin ETFs by April 15, days before the Bitcoin halving is set to cut the supply issuance rate of BTC. The Hong Kong regulator has reportedly accelerated the approval process for four spot Bitcoin ETFs, according to local news media reports. But rather the upcoming Bitcoin ETF approval in Hong Kong, which also happens next week. Just ahead of Hong Kong ETF approvals and the halving.

Why financial infrastructure needs to be open-source — Hyperledger

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

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. Open-source blockchain infrastructure like Hyperledger Besu operates on Ethereum, but enables public and private permissioned use cases. Source: Daniela Barbosa, Hyperledger Foundation. Hyperledger Besu, a prominent Ethereum execution client, has become one of its most important infrastructure offerings. Source: Daniela Barbosa, Hyperledger Foundation.

White hat hacker group SEAL launches crypto threat-sharing center

A team of white hat hackers called the Security Alliance (SEAL) has said it recovered $50 million in assets since its inception in 2023 and has launched a threat-sharing platform to support the crypto space. On April 17, the alliance announced its free Information Sharing and Analysis Center (ISAC) called SEAL-ISAC — a platform purpose-built for crypto aiming to protect against cyberattacks and financial crimes by providing security intelligence and connections to experts. Its features include information sharing, threat analysis and alerts, best practices, incident coordination and response and education on security best practices and threats. Nearly two dozen major crypto organizations, including the Ethereum Foundation, Polygon, Uniswap Labs, Chainalysis and MetaMask, have joined the initiative as early participants. The platform is built on the open-source Open Cyber Threat Intelligence Platform (Open CTI) and supports centralized and decentralized crypto entities. The ISAC integrates with SEAL’s other initiatives, such as its SEAL 911 crypto security incident response — a Telegram messenger channel where a team of around 40 white hat hackers can pick up reports of hacks in progress and assist in real time. Related: Crypto hack losses declined 51% in 2023: Report Crypto markets are poised to enter another bull cycle following a decline in hack losses in 2023. More than $7.7 billion has been stolen in crypto hacks since 2016 — the majority pilfered from major exploits in 2021 and 2022, according to DefiLlama. Crypto total value hacked since 2017. Source: DefiLlama SEAL team member and Paradigm security head “Samczsun,” told Cointelegraph Magazine in March that the increasing complexity of crypto-related hacks is “the equivalent of taking a college-level course on quadratic equations.” “Things are getting harder, but it’s a good sign we are forcing the hackers to solve more and more complicated problems,” they added. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

A team of white hat hackers called the Security Alliance (SEAL) has said it recovered $50 million in assets since its inception in 2023 and has launched a threat-sharing platform to support the crypto space. Its features include information sharing, threat analysis and alerts, best practices, incident coordination and response and education on security best practices and threats. The platform is built on the open-source Open Cyber Threat Intelligence Platform (Open CTI) and supports centralized and decentralized crypto entities. More than $7.7 billion has been stolen in crypto hacks since 2016 — the majority pilfered from major exploits in 2021 and 2022, according to DefiLlama. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

Tokenholders approve $7.5B AI merger

Tokenholders of SingularityNet, Fetch.ai and Ocean protocols have approved a $7.5 billion merger that would create a combined Artificial Superintelligence Alliance (ASI) project. According to the April 16 announcement, the Fetch.AI (FET) token will become the ASI token with a total supply of 2.6 billion. Meanwhile, SingularityNet (AGIX) and Ocean (OCEAN) tokens will be converted into ASI at approximate ratios of 0.43:1, with ASI tokens having a combined value of $7.5 billion post-merger. The ASI has yet to schedule a launch date. "Our mission is to create a decentralized AI infrastructure at scale, ensuring ethical and trustworthy practices,” said Humayun Sheikh, chairman of the Artificial Superintelligence Alliance and CEO of Fetch.ai. “By combining our platforms, we empower developers and users alike, fostering a more democratic and transparent AI ecosystem." The ASI is currently examining three distinct product pipelines: deployment of AI agents in commercial settings, neural symbolic language learning models (LLMs), and AI data sharing and utilization. “In the near term, we anticipate generating revenue as we launch the agentic network for deployment,” Sheikh told Cointelegraph in a statement. “In the short term, we’ll focus on deploying numerous commercial products that breathe life into AI applications.” As for the project’s upcoming roadmap, ASI plans to further invest in its GPU infrastructure for its commercial, computing, and data efforts. Last month, Fetch.ai launched a $100 million investment to deploy Nvidia H200, H100, and A100 GPUs to create a platform for developers and users to utilize computing power. Based in Cambridge, Fetch.ai uses LLMs and AI agents for its computing marketplace that matches users with AI-powered services. Meanwhile, SingularityNET, headquartered in Zug, Switzerland, explores the use of AI in realms such as finance, robotics, biomedical AI, media, arts, and entertainment. Finally, Singapore-based Ocean enables businesses and individuals to trade tokenized data assets via its platform. Blockchain has recognized significant synergies with AI since the popularization of LLMs such as ChatGPT last year. In an interview with Cointelegraph on April 12, Booksie founder and CEO Sol Nasisi discussed the potential for AI and blockchain to enable self-publishing book platforms in the near future. Related: SingularityNet, Fetch.AI, Ocean Protocol merger will drive decentralized AI development: ChainGPT CEO

Tokenholders of SingularityNet, Fetch.ai and Ocean protocols have approved a $7.5 billion merger that would create a combined Artificial Superintelligence Alliance (ASI) project. The ASI is currently examining three distinct product pipelines: deployment of AI agents in commercial settings, neural symbolic language learning models (LLMs), and AI data sharing and utilization. Based in Cambridge, Fetch.ai uses LLMs and AI agents for its computing marketplace that matches users with AI-powered services. Meanwhile, SingularityNET, headquartered in Zug, Switzerland, explores the use of AI in realms such as finance, robotics, biomedical AI, media, arts, and entertainment. Related: SingularityNet, Fetch.AI, Ocean Protocol merger will drive decentralized AI development: ChainGPT CEO

Magic Eden overtakes Blur, Yuga Labs offloads NFT games: Nifty Newsletter

In this week’s newsletter, nonfungible token (NFT) platform Magic Eden surpassed Blur in trading volume in March, and Yuga Labs is offloading two NFT games. In other news, find out how Manchester City football fans could get limited edition jerseys through NFTs and how a former Disney executive launched a Web3 game publishing company. And don’t forget this week’s Nifty News, featuring PayPal removing buyer and seller protections for NFTs. Magic Eden passed Blur as leading NFT marketplace in March: CoinGecko Solana-based NFT marketplace Magic Eden recorded a 194.4% increase in monthly trading volume, surpassing the leading platform Blur in March. The NFT trading platform recorded $756.5 million in trading volume last month, while Blur recorded $530.4 million. According to a CoinGecko report, Magic Eden’s rise was partly due to its newly implemented Diamond reward program and its continued partnership with NFT company Yuga Labs. Magic Eden’s rise in March marked its sixth consecutive month when its trading volume increased. Continue reading Yuga Labs offloads two NFT games amid effort to “unshackle” BAYC team Yuga Labs, the creators of popular NFT collections Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), sold the intellectual property (IP) rights for two of its games: HV-MTL and Legends of Mara. According to Yuga Labs, the Web3 gaming studio Faraway acquired the IP. The move was seen as part of the company’s efforts to “unshackle” the team, giving it the ability to execute its vision, and is in line with previous statements from its CEO, Greg Solano. Continue reading Man City and OKX release limited-edition jerseys tied to rare NFTs Football club Manchester City launched a new NFT collection that allows fans to win limited-edition jerseys and matchday experiences. Through its partnership with crypto exchange OKX, Manchester City allows users to mint NFTs on OKX, which gives them a chance to win the jerseys depending on the NFT’s rarity. The jerseys feature hand-painted designs by artist Christian Jeffrey, incorporating the Lancashire rose and the Manchester worker bee. Continue reading Former Disney boss launches Web3 game publisher with Marvel, Star Wars talent A former Disney executive joined forces with a team of Hollywood and gaming professionals to launch a Web3 game publisher based in the United Arab Emirates. The company is called Galactic Entertainment Publishing, which represents the first arm of the Galactic Group. The company’s first project, PlanetQuest, has been in development since 2022. Loren Roosendaal, CEO of Galactic Entertainment and founder of PlanetQuest, said the game had already amassed 200,000 NFT holders before its launch. Continue reading Nifty News: PayPal removes NFT protections, Adidas NFT sneakers and more Payment services company PayPal will take down protections for NFT-related purchases starting May 20. The fintech firm published amendments to its Purchase Protection Program to remove the eligibility of NFT transactions. Meanwhile, Adidas partnered with Stepn to release limited edition NFT sneakers on the Solana network. Continue reading Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.

In this week’s newsletter, nonfungible token (NFT) platform Magic Eden surpassed Blur in trading volume in March, and Yuga Labs is offloading two NFT games. Magic Eden passed Blur as leading NFT marketplace in March: CoinGeckoSolana-based NFT marketplace Magic Eden recorded a 194.4% increase in monthly trading volume, surpassing the leading platform Blur in March. The NFT trading platform recorded $756.5 million in trading volume last month, while Blur recorded $530.4 million. According to a CoinGecko report, Magic Eden’s rise was partly due to its newly implemented Diamond reward program and its continued partnership with NFT company Yuga Labs. Continue readingFormer Disney boss launches Web3 game publisher with Marvel, Star Wars talentA former Disney executive joined forces with a team of Hollywood and gaming professionals to launch a Web3 game publisher based in the United Arab Emirates.

Hashing It Out: Can blockchain create a sovereign internet?

A week after experiencing an internet blackout in his country, Hashing It Out host Elisha Owusu Akyaw looks for answers on how blockchain technology can create a more sovereign internet in an interview with the co-founder of XYO Network, Arie Trouw. The episode also covers data sovereignty and the importance of privacy in the ever-evolving internet landscape. The conversation between Owusu Akyaw and Trouw explores new issues like elections and fake news, and how blockchain tech could be used to verify the authenticity of information on social media. Trouw explains that the sovereign internet is based on that idea of the original version of the internet (Web1) but with the functionalities of Web2 and Web3. On a sovereign internet, users own their own data set, tools and services, which they can share with other users without needing a central server or third-party authority. “So the sovereign internet is really, to some degree, a step back from Web2 to Web1, where each party has their own services and their own peer-to-peer functionality that they share with somebody else. And the internet works the way it’s meant to be, where it’s resilient to outages.” With major elections taking place worldwide in 2024, issues like fake news and artificial intelligence-generated deep fakes threaten to widen the polarization in society. Trouw concedes that blockchain may not be the answer to the problem since dealing with fake information on the internet requires the average person to be a skeptic and have the desire to verify everything they read. However, when society develops a culture that seeks to verify the credibility of information, Trouw believes that blockchain technology would be the ultimate method to authenticate the origin of information on the internet. The rest of the podcast explores more use cases of blockchain technology in creating a better internet by using location data and how blockchain technology could play a role in identifying aliens. Listen to the full episode of Hashing It Out on Spotify, Apple Podcasts, TuneIn or your podcast platform of choice, and remember to check out Cointelegraph’s growing catalog of Web3 podcasts. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

A week after experiencing an internet blackout in his country, Hashing It Out host Elisha Owusu Akyaw looks for answers on how blockchain technology can create a more sovereign internet in an interview with the co-founder of XYO Network, Arie Trouw. Trouw explains that the sovereign internet is based on that idea of the original version of the internet (Web1) but with the functionalities of Web2 and Web3. On a sovereign internet, users own their own data set, tools and services, which they can share with other users without needing a central server or third-party authority. “So the sovereign internet is really, to some degree, a step back from Web2 to Web1, where each party has their own services and their own peer-to-peer functionality that they share with somebody else. The rest of the podcast explores more use cases of blockchain technology in creating a better internet by using location data and how blockchain technology could play a role in identifying aliens.

Israeli central bank official says CBDC competition with banks is good for economy

While the impact of central bank digital currency (CBDC) on commercial banks has often been seen as a source of concern, Bank of Israel deputy governor Andrew Abir took a contrarian view in a speech published on the central bank’s website. Let the banks scramble to compete, he said, in essence. Years of effort to increase competition in the Israeli banking sector have paid off in a variety of ways, but “we still have a long way to go,” Abir said. As the Bank of Israel raised interest rates to combat inflation, banks raised interest rates on credit, but the rise in deposit rates was “partial and slow.” He added: “In many countries around the world, including Israel, commercial banks do not win public popularity contests. […] In Israel, some of the anger directed at the banking system is the result of the need to increase the level of competition in some of the segments.” The design of the digital shekel includes an option to pay interest on it. Abir confidently declared that the digital shekel, which is still in its planning stages, would enjoy public support: “The digital shekel will not be developed by some anonymous Satoshi Nakamoto. Everyone will know who is behind the digital shekel and who is responsible for it — […] the same Bank of Israel that stands behind the cash we all know and trust.” The introduction of a digital shekel would benefit the Bank of Israel as well, by making central bank money more readily available, for instance for use in digital payments, reversing the downward trend in central bank money use brought on by technological breakthroughs in the private sector, Abir said. Related: Israel’s central bank says CBDC could be issued if stablecoin use increases Just the option to hold digital shekels could incentivize banks to pay higher interest, Abir said. Thus the digital shekel would give the central bank a mechanism to influence the degree of transmission of central bank interest rates. The digital shekel reportedly has strong support among the Israeli public. Magazine: Terrorism and Israel-Gaza war weaponized to destroy crypto

While the impact of central bank digital currency (CBDC) on commercial banks has often been seen as a source of concern, Bank of Israel deputy governor Andrew Abir took a contrarian view in a speech published on the central bank’s website. Abir confidently declared that the digital shekel, which is still in its planning stages, would enjoy public support:“The digital shekel will not be developed by some anonymous Satoshi Nakamoto. Related: Israel’s central bank says CBDC could be issued if stablecoin use increasesJust the option to hold digital shekels could incentivize banks to pay higher interest, Abir said. Thus the digital shekel would give the central bank a mechanism to influence the degree of transmission of central bank interest rates. The digital shekel reportedly has strong support among the Israeli public.

Bitcoin halving could ‘indirectly’ affect cryptocurrency regulation

The additional scrutiny around the Bitcoin (BTC) halving event could have an indirect effect on its future regulation. This is according to Natalia Latka, policy director and regulatory affairs at blockchain analysis firm Merkle Science. “While there is no direct impact on regulations or regulators’ approach, the economic and market dynamics influenced by halving events could indirectly affect regulatory considerations, especially in areas related to market stability and investor protection,” Latka told Cointelegraph. The halving and the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) in January are helping to fuel a Bitcoin bull run, making crypto hard to ignore. Should Bitcoin also become more volatile during this period of increased interest and mainstream media coverage — a not altogether unlikely scenario — regulators could feel inspired to consider action. Latka went on to outline a further scenario that could lead to increased regulatory scrutiny. “The Bitcoin halving could also impact energy consumption,” said Latka. “With rewards for mining reduced, less efficient miners could be pushed out of the market, potentially leading to a concentration of mining activities among larger players and a concentration of geographies.” Latka adds, “This might attract regulatory scrutiny regarding the environmental impact of PoW [proof-of-work], leading to regulations focused on sustainability.” Further clarity is required in the United States Cointelegraph spoke with Andrew Balthazor, a litigator with legal firm Holland & Knight, to better understand the current regulatory framework in the United States. According to Balthazor, U.S. law remains unclear on Bitcoin and cryptocurrency at large. Recent: Bitcoin halving supply shock set to shake up mining sector “I think there’s still some clarity in terms of what constitutes a security transaction in the United States, although there’s a general agreement that Bitcoin probably isn’t. We still don’t have a definitive statement one way or the other on even Bitcoin or Ether, or any cryptocurrency for that matter,” Balthazor said. Frustratingly, when courts have ruled on cryptocurrency, those courts tend not to be high enough to be binding across the union. “We don’t tend to have a lot of court adjudications saying definitively this token is a security in all circumstances. So, we have some conflicting lower court decisions, which in the U.S. aren’t binding on other courts. So that’s the issue.” Without clear guidance from the SEC or the courts, the U.S. finds itself in a situation referred to as “regulation through enforcement,” where the bounds of lawful behavior are measured through enforcement action. Latka said, “The absence of clear, upfront guidelines means businesses often find themselves navigating a regulatory minefield, uncertain if their operations comply with current or future interpretations of laws.” Balthazor’s experience shows that the situation has a real impact on businesses that want to and are trying to do the right thing: “I have clients who are frustrated and uncertain about whether their projects might be treated as securities, paying attorneys to negotiate for years.” Balthazor said this is only possible for companies with “deep pockets,” adding that he would like to see some mechanism put in place so that corporations and the SEC could deal with each other more transparently. “It would be great to have a more formal process where the SEC could say, ‘Here are our concerns about your project. We think it’s too much like a security for these reasons,’” said Balthazor. A moving target for U.K. businesses In the United Kingdom, the Financial Conduct Authority (FCA) deals with crypto asset regulation, bringing forward rules that, in instances such as the approval of crypto investment products, have been well-received, and in others, such as the introduction of “positive frictions” for U.K. customers of centralized exchanges, have been widely rebuked. Latka explained how the U.K.’s regulation philosophy and implementation create confusion. “The U.K.’s approach to regulating crypto assets has been to retrofit existing regulations in a phased manner. This method involves gradually implementing these retrofitted regulations, requiring businesses in the crypto space to constantly adjust to an evolving regulatory landscape,” Latka said. The approach taken by the FCA means that corporations must always keep one eye on compliance matters as they continue to shift and change. Latka said, “This ongoing adaptation process can lead to substantial costs and operational inefficiencies for these businesses, alongside a significant degree of legal uncertainty. The challenge arises when regulations designed for traditional financial systems are applied to the rapidly evolving crypto sector.” FCA announced ETNs in March. Source: FCA In March CryptoUK — the U.K. trade association for crypto — welcomed the FCA’s approval of crypto exchange-traded notes (ETNs). ETNs are similar to ETFs but exclude retail investors. CryptoUK asked the FCA to reconsider its position, adding, “We will continue to advocate for a reconsideration of the existing bans on access to appropriate financial investments for retail investors.” Commentators, including Latka, believe that criticism of the broader regulator landscape in the U.K. is widely true. Latka said, “There is a conspicuous discrepancy between the growing interest from the public in crypto assets and the regulatory measures in place, highlighting a significant misalignment that requires urgent attention.” Europe takes a different approach In Europe, where regulators have introduced bespoke regulation for cryptocurrencies, the chances of the Bitcoin halving making an impact seem more remote. Recent: Bitcoin returns “too significant to ignore” for world’s retirement plans The European Union’s Markets in Crypto-Assets Regulation (MiCA) was introduced in 2023, providing a far more comprehensive regulatory framework than the U.K. and a more crypto-tailored solution than in the United States. However, even here, Latka said that “further clarifications” are still required, as well as “the development of technical guidelines, particularly concerning MiCA’s interaction with existing EU financial regulations and directives.” So, even in the EU, just a few days out from Bitcoin’s halving, its potential to influence the regulator’s thinking remains.

The additional scrutiny around the Bitcoin (BTC) halving event could have an indirect effect on its future regulation. The halving and the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) in January are helping to fuel a Bitcoin bull run, making crypto hard to ignore. “The Bitcoin halving could also impact energy consumption,” said Latka. Recent: Bitcoin halving supply shock set to shake up mining sector“I think there’s still some clarity in terms of what constitutes a security transaction in the United States, although there’s a general agreement that Bitcoin probably isn’t. We still don’t have a definitive statement one way or the other on even Bitcoin or Ether, or any cryptocurrency for that matter,” Balthazor said.

Sam Altman pushes ChatGPT mass adoption among Fortune 500 companies: Report

OpenAI — known for its popular generative artificial intelligence (AI) tool ChatGPT — is actively pitching its services directly to Fortune 500 companies, according to a source close to the matter. A report from Reuters on April 12 said that OpenAI CEO Sam Altman and chief operating officer Brad Lightcap met with hundreds of executives from major corporations across San Francisco, New York and London. The pitch centered around OpenAI’s enterprise offerings, including ChatGPT Enterprise — a robust chatbot service tailored for corporate use — and software integrating customer applications with OpenAI’s AI services via application programming interfaces (APIs). The two noted that more than 92% of Fortune 500 companies already use the consumer version of its chatbot. OpenAI assured prospective clients that data from ChatGPT Enterprise would not be used to train its models, emphasizing privacy and security. This follows a series of lawsuits in which OpenAI has been implicated in alleged data violations. The move puts OpenAI in competition with its primary financial backer, Microsoft, which already offers some OpenAI services through its own platforms. Related: OpenAI accuses New York Times of hacking AI models in copyright lawsuit Through its Azure cloud and Microsoft 365 Copilot, Microsoft already offers access to OpenAI’s technology, which sparked some executives to express skepticism about paying for ChatGPT Enterprise on top of existing Microsoft services. According to the anonymous sources in attendance, Altman and Lightcap addressed these concerns by highlighting the benefits of direct collaboration with OpenAI’s team, which they said included access to cutting-edge models and customized AI solutions tailored to enterprise needs. As of March 2024, OpenAI has a valuation of $68 billion and is on track to achieve its target of $1 billion in revenue for 2024. It hopes to make sales of its enterprise model a significant contributor to its bottom line. During the meetings, Lightcap reportedly revealed a surge in interest in the business model, with over 600,000 signups for ChatGPT Enterprise and Team, up from 150,000 in January — underscoring growing demand for AI solutions in the corporate sector. OpenAI has also been reportedly in talks with movie studios in Hollywood, promoting its Sora video creation tool to studio executives. While the technology has garnered excitement, concerns persist regarding the source of training data, output reliability and copyright protection. Magazine: AI didn’t kill the metaverse, it will build it — Alien Worlds, Bittensor vs Eric Wall: AI Eye

OpenAI — known for its popular generative artificial intelligence (AI) tool ChatGPT — is actively pitching its services directly to Fortune 500 companies, according to a source close to the matter. The pitch centered around OpenAI’s enterprise offerings, including ChatGPT Enterprise — a robust chatbot service tailored for corporate use — and software integrating customer applications with OpenAI’s AI services via application programming interfaces (APIs). The two noted that more than 92% of Fortune 500 companies already use the consumer version of its chatbot. OpenAI assured prospective clients that data from ChatGPT Enterprise would not be used to train its models, emphasizing privacy and security. The move puts OpenAI in competition with its primary financial backer, Microsoft, which already offers some OpenAI services through its own platforms.

VeChain announces tokenized gloves in partnership with UFC — community responds

According to an April 12 blog post from VeChain, gloves worn by UFC fighters will soon be tokenized and their identities tracked on the VeChainThor network. The gloves will contain VeChain near-field communication (NFC) chips that record fight data, proving the authenticity of each pair, the post stated. After the fight, the athletes will “donate and give away" their gloves, making them into collectors’ items. The chips inside each pair will allow a buyer to check the authenticity of the item via a VeChainThor network smart contract. Fighters will begin wearing the gloves at UFC 300, which is scheduled for April 13. VeChain UFC tokenized gloves. Source: VeChain. In its post, VeChain claimed that the system will help prevent fraud in the secondary market, which is a common problem for buyers who seek to own the gloves worn during particular fights. The new items use aspects of VeChain’s ToolChain system, a supply-chain management system that some enterprises use to track items and make sure they make it to the intended recipient. VeChain announced that an initial set of 12 exclusive gloves will be given to “A-list” celebrities, including Joe Rogan. UFC CEO Dana White will also be making a live presentation to announce the partnership. On VeChain’s Reddit board, holders of the VeChainThor (VTHO) token had mixed reactions to the news. Some were excited about the new use case for the network. “[W]e're going to be minting rwa [real world asset] gloves as [non-fungible tokens] every ufc event!” said pez86. Another user, VETterDaysAhead, also saw the announcement as positive, stating, “Gloves and merchandise tracking sound great. Hoping they do QR code scanning on TV for events that burns VTHO as well." 🔥🔥🔥” Related: What is VeChain, and how does it work? But not everyone was impressed. Some users thought the new gloves would not burn enough VTHO from transaction fees to have any appreciable effect on the price. “Hey man, that's like a whole 10 VTHO burned per year. UFC gonna topple Walmart China in usage,” stated tkim91321 in a sarcastic reply to another user who had complained about the overhyped announcement. In another post, tkim91321 elaborated on their position, asking rhetorically, “And this would burn how many VTHO per month?” and then answering, “Nothing materially significant.” According to Coinmarketcap data, VeThor’s market cap was over $283 million as of April 12, making it one of the top 300 cryptocurrencies in the world. In May 2022, the network’s foundation had $1.2 billion in its treasury. In June of that year, the VeChain Foundation began its relationship with UFC, entering into a $100 million sponsorship deal with the mixed martial arts promotion.

According to an April 12 blog post from VeChain, gloves worn by UFC fighters will soon be tokenized and their identities tracked on the VeChainThor network. After the fight, the athletes will “donate and give away" their gloves, making them into collectors’ items. VeChain UFC tokenized gloves. VeChain announced that an initial set of 12 exclusive gloves will be given to “A-list” celebrities, including Joe Rogan. On VeChain’s Reddit board, holders of the VeChainThor (VTHO) token had mixed reactions to the news.

DePIN platform peaq secures $15M in pre-launch round

Update (March 27 at 17:58 UTC): This article has been updated to clarify that peaq is a layer-1 platform for DePINS, and Julia Pönitzsch is not a co-founder. Layer-1 platform peaq — focused on decentralized physical infrastructure networks (DePINs) — has disclosed a $15 million funding round ahead of its mainnet launch in May. The round was led by Generative Ventures and Borderless Capital, with participation from Spartan Group, HV Capital, CMCC Global, Animoca Brands, Moonrock Capital, Fundamental Labs, and other investors. Behind the peaq network is the Berlin-based startup EoT Labs, founded in 2017 by Leonard Dorlöchter, Max Thake, and Till Wendler. The peaq blockchain applies decentralization to physical infrastructure and systems, aiming to build an “Economy of Things” network. According to the company, its ecosystem is home to more than 20 DePIN projects — “already more than the likes of Solana, Polygon and other prominent layer-1s,” the company claimed in a statement to Cointelegraph. Announcing: peaq raises $15M in a pre-launch funding round led by @genventurecap and @borderless_cap The funds will go towards making it easier and faster for #DePINs to build, launch, and scale on peaq, ahead of peaq’s upcoming public offering, and the launch of peaq’s… pic.twitter.com/1ErsxsIUFP — peaq (@peaqnetwork) March 27, 2024 DePIN uses blockchain technology to incentivize people to build, own and run real-world physical infrastructure, thus distributing control across a network and avoiding centralization in any single organization’s hands. Initiatives in different industries are exploring DePIN use cases, such as energy systems for peer-to-peer energy trading, supply chains, telecommunications for internet access, and data storage for secure data management. Data from intelligence firm Messari indicates that the DePIN market valuation could reach $3.5 trillion in the next four years. The startup offers DePINs with Modular DePIN Functions, which are ready-to-use functions that allow DePINs to build and deploy their projects on the blockchain. Features available for projects include a machine tokenization platform and a DePIN Accelerator program. In 2021, peaq raised nearly $2.7 million in a seed round. The additional funds will be primarily allocated to its ecosystem expansion and further development of solutions for developers. “We will keep working on expanding the ecosystem, which will stand to benefit from more funds going into the Ecosystem Grant Program, and further developing the peaq SDK and the Modular DePIN Functions. All and all, this year is shaping up to be intense, growth-focused, and very promising, which is how we like it,” Leonard Dorlochter, co-founder of peaq, told Cointelegraph. Magazine: Inside Pink Drainer — Security analyst defends his crypto scam franchise

Update (March 27 at 17:58 UTC): This article has been updated to clarify that peaq is a layer-1 platform for DePINS, and Julia Pönitzsch is not a co-founder. Layer-1 platform peaq — focused on decentralized physical infrastructure networks (DePINs) — has disclosed a $15 million funding round ahead of its mainnet launch in May. Behind the peaq network is the Berlin-based startup EoT Labs, founded in 2017 by Leonard Dorlöchter, Max Thake, and Till Wendler. The peaq blockchain applies decentralization to physical infrastructure and systems, aiming to build an “Economy of Things” network. Features available for projects include a machine tokenization platform and a DePIN Accelerator program.

BlackRock updates Bitcoin ETF, adds 5 Wall Street firms

Global asset manager BlackRock updated its Bitcoin exchange-traded fund (ETF) prospectus on April 5, adding five big Wall Street firms as new authorized participants. New members include ABN AMRO Clearing, Citadel Securities, Citigroup Global Markets, Goldman Sachs and UBS Securities, according to the document amending BlackRock’s S-1 registration statement with the United States Securities and Exchange Commission. Among the previously authorized participants in the ETF are JPMorgan Securities, Jane Street Capital, Macquarie Capital and Virtu Americas. Authorized participants play a crucial role in the BTC ETF operational mechanism, as they can create and redeem shares of the ETF, which involves exchanging ETF shares for a corresponding basket of securities that reflect the ETF’s holdings or exchanging them for cash. According to Bloomberg analyst Eric Balchunas, the new additions indicate that “big time firms now want piece of action and/or are now OK being publicly associated w[ith] this.” The SEC’s position on a cash creation and redemption mechanism for Bitcoin ETFs was primarily directed at mitigating market manipulation risks associated with transactions. The cash mechanism entails that new shares of a Bitcoin ETF will only be created or redeemed through cash transactions, in contrast to the traditional in-kind model, where market participants handle the underlying assets directly. This approach was developed to prevent intraday price manipulation, according to initial proposals by asset managers like Hashdex. Following the SEC’s guidance, other asset managers — including giants like BlackRock, ARK Invest and Grayscale — have incorporated this mechanism into their filings. The Bitcoin ETFs witnessed a spike in trading volume in March, reaching $111 billion, while some analysis suggests the product’s demand is cooling down. BlackRock’s iShares Bitcoin Trust (IBIT) continues to dominate trading volume and assets under management, followed by Grayscale’s and Fidelity’s funds. According to data from BitMEX Research, BlackRock’s IBIT assets reached $17.6 billion on April 1. Spot Bitcoin ETF performances. Source: BitMEX Research Magazine: ‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull

Global asset manager BlackRock updated its Bitcoin exchange-traded fund (ETF) prospectus on April 5, adding five big Wall Street firms as new authorized participants. Among the previously authorized participants in the ETF are JPMorgan Securities, Jane Street Capital, Macquarie Capital and Virtu Americas. The Bitcoin ETFs witnessed a spike in trading volume in March, reaching $111 billion, while some analysis suggests the product’s demand is cooling down. BlackRock’s iShares Bitcoin Trust (IBIT) continues to dominate trading volume and assets under management, followed by Grayscale’s and Fidelity’s funds. Spot Bitcoin ETF performances.

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

BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), is slowly approaching the market share of Grayscale’s Bitcoin Trust ETF (GBTC). BlackRock’s IBIT recorded the second-lowest daily inflows of $24.9 million on April 17, compared to its lowest day of $20.4 million worth of inflows on April 9, according to Dune data. Despite the second-lowest daily inflows, IBIT’s current market share of 32.6% is quietly approaching Grayscale’s GBTC market share of 36.8%, which is the largest spot Bitcoin ETF, holding $19 billion worth of Bitcoin (BTC). BlackRock’s ETF is currently holding $16.8 billion worth of Bitcoin, which is $2.2 billion short of GBTC’s holdings. Top Bitcoin ETFs by market share. Source: Dune IBIT flipping GBTC for the first place is not unfeasible, considering that GBTC’s Bitcoin holdings fell by 50% ahead of the Bitcoin halving — from 619,220 BTC on the first day of trading on Jan. 11, to the current 308,105 BTC. Looking at accumulation patterns, BlackRock’s Bitcoin accumulation has slowed down since its record day on March 13, when IBIT saw $866 million worth of net inflows. However, BlackRock’s Bitcoin ETF holdings surged over 10,200%, from 2,621 BTC at launch, to the current 272,550. Grayscale’s Bitcoin selling has also been slowing down since March 19, when GBTC saw $607 million worth of outflows, as its fourth-largest day of outflows since inception. In comparison, GBTC outflows stood at $79 million on April 17, according to Dune. IBIT and Grayscale, Bitcoin ETF Flows. Source: Dune Cumulative ETF inflows have been slowing down since March. Last week saw over $199 million worth of net inflows into the ETFs, down from $2.58 billion in the week beginning March 11. Bitcoin ETFs weekly net flows. Source: Dune Bitcoin price has also been subdued due to the slowing ETF inflows. It fell 10.7% during the previous week to trade at $62,971 as of 12:30 pm UTC, according to CoinMarketCap. Bitcoin slipped below $60,000 on April 17, days before the halving. Related: Bitcoin supply to run out on exchanges in 9 months — Bybit Grayscale’s GBTC has been experiencing a massive sell-off since it was launched for trading, introducing significant selling pressure for Bitcoin. The massive outflows can be attributed to GBTC’s high trading fee of 1.5%, which is the highest among all U.S. Bitcoin ETF issuers. In comparison, Grayscale’s IBIT has a 0.25% trading fee, while Franklin Templeton’s ETF only charges a 0.19% fee. Breaking Down ETF's Impact on Bitcoin Price with Cory Klippsten. Source: Cointelegraph Related: Top five BTC miners not selling despite Bitcoin halving

BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), is slowly approaching the market share of Grayscale’s Bitcoin Trust ETF (GBTC). BlackRock’s IBIT recorded the second-lowest daily inflows of $24.9 million on April 17, compared to its lowest day of $20.4 million worth of inflows on April 9, according to Dune data. Despite the second-lowest daily inflows, IBIT’s current market share of 32.6% is quietly approaching Grayscale’s GBTC market share of 36.8%, which is the largest spot Bitcoin ETF, holding $19 billion worth of Bitcoin (BTC). However, BlackRock’s Bitcoin ETF holdings surged over 10,200%, from 2,621 BTC at launch, to the current 272,550. IBIT and Grayscale, Bitcoin ETF Flows.

Australia's securities regulator appeals loss in Finder Wallet case

The Australian Securities and Investments Commission (ASIC) has filed to appeal its court loss against Finder Wallet, a sister company of Australian fintech firm Finder.com, over its “Earn” product which was found to be compliant with Australia’s financial laws by a federal court last month. ASIC previously argued that Finder Wallet’s yield-bearing product operated without an appropriate license or authorization. But Federal Court Justice Brigitte Markovic dismissed the case on March 14, ruling ASIC failed to establish that Finder Wallet’s Earn product constituted a “debenture” — a debt security where companies promise to pay back borrowed money with interest — under the Corporations Act. In the April 10 filing, ASIC argued Justice Markovic “erred” in this finding because there was no depositing of money or a loan to Finder Wallet when an investor used the Finder Earn product. Additionally, “there was no undertaking by Finder Wallet to repay money as a debt,” the securities regulator argued. “ASIC has appealed this decision because it is concerned that the Finder Earn product was offered without the appropriate license or authorization and therefore without the benefit of important consumer protections,” ASIC argued in a separate statement on April 10. The appeal will be heard by the Full Federal Court on a date to be determined. The court hears appeals from the Federal Court on matters of “sufficient importance.” It is the second highest court behin the High Court of Australia. A Finder spokesperson told Cointelegraph the firm is “disappointed” with ASIC’s decision not to accept the Federal Court ruling but is prepared to diligently defend its product in the Full Federal Court. Offered between February and November 2022, users of the Finder Earn product could convert Australian dollars into TrueAUD (TAUD) — a stablecoin pegged to the Australian dollar, which could then be transferred to Finder Wallet in exchange for receiving a yield between 4-6%. ASIC filed the lawsuit against Finder Wallet in December 2022, arguing it was an unlicensed financial product. Related: Former Blockchain Global director restricted from leaving Australia ASIC also claimed Finder Wallet "sunset" the product one month earlier because it notified the firm of its concerns. However, a spokesperson told Cointelegraph at the time that it was “a strategic business decision” due to increased interest rates and “not brought on by regulatory review.” Last month, a Finder spokesperson told Cointelegraph the firm doesn’t have any intention to relaunch Finder Earn despite the court victory. Magazine: Wealthy, isolated, and incredible beaches: Perth Crypto City Guide

In the April 10 filing, ASIC argued Justice Markovic “erred” in this finding because there was no depositing of money or a loan to Finder Wallet when an investor used the Finder Earn product. Additionally, “there was no undertaking by Finder Wallet to repay money as a debt,” the securities regulator argued. The appeal will be heard by the Full Federal Court on a date to be determined. The court hears appeals from the Federal Court on matters of “sufficient importance.” It is the second highest court behin the High Court of Australia. ASIC filed the lawsuit against Finder Wallet in December 2022, arguing it was an unlicensed financial product.

Bitcoin miners could dump $5B in BTC after halving: 10x Research

There could be a large outflow of Bitcoin (BTC) from miners in the months following the Bitcoin halving as in previous cycles, according to a market analyst. Bitcoin miners could potentially liquidate $5 billion worth of BTC after the halving, according to calculations by the head of research at 10x Research, Markus Thielen, in an April 13 analyst note. “The overhang from this selling could last four to six months, explaining why Bitcoin might go sideways for the next few months — as it has done following past halvings,” he added. Thielen said that the same could happen again, with crypto markets potentially facing “a significant challenge in a six-month ‘summer’ lull.” Bitcoin prices remained range bound between $9,000 and $11,500 in the five months that followed the 2020 halving. This year, the halving will occur around April 20, just six days away, so markets may not see any significant upward trajectory until around October if history rhymes. BTC post-2020 halving prices. Source: 10x Research Additionally, miners tend to stock up on BTC, “leading to a supply/demand imbalance and a subsequent rally in Bitcoin prices,” leading up to the halving, he said. This has already occurred, with BTC prices surging 74% in 2024 to reach an all-time high of $73,734 on March 14 before correcting to below $63,000 in mid-April. Thielen also thinks that altcoins, in particular, could bear the brunt of this situation. Many of them have been falling back heavily over the past week and many remain a long way away from their peaks in 2021. “Even if there is a correlation between the halving and an altcoin rally, as some predict, historical evidence shows that the rally typically begins almost six months later.” Related: Bitcoin halving will have to battle with ‘weak time of year’ — Coinbase Thielen postulated that Marathon, the world’s largest Bitcoin miner, has built an inventory “that will likely be gradually sold after the halving to prevent a revenue cliff from occurring.” Marathon pre-halving accumulation. Source: 10x Research As Marathon (currently) produces 28–30 BTC per day, this could result in 133 days of additional supply hitting the market plus the BTC it produces, which would be 14–15 BTC per day after the halving, he said. “Other miners will likely follow a similar strategy to liquidate part of their inventory gradually.” The researcher concluded that if all miners have a similar strategy to sell inventory post-halving, “this could result in a maximum of $104 million of BTC selling per day — reversing the supply/demand imbalance that caused BTC to rally pre-halving.” Last week, Marathon CEO Fred Thiel said that the firm’s break-even rate would be about $46,000 per BTC to remain profitable after the halving, predicting that there is unlikely to be any significant price movements in the six months that follow the event. Magazine: Altseason on the horizon, SEC targets Uniswap, and BTC halving news: Hodler’s Digest, April 7–13

There could be a large outflow of Bitcoin (BTC) from miners in the months following the Bitcoin halving as in previous cycles, according to a market analyst. Bitcoin miners could potentially liquidate $5 billion worth of BTC after the halving, according to calculations by the head of research at 10x Research, Markus Thielen, in an April 13 analyst note. BTC post-2020 halving prices. Source: 10x ResearchAdditionally, miners tend to stock up on BTC, “leading to a supply/demand imbalance and a subsequent rally in Bitcoin prices,” leading up to the halving, he said. Magazine: Altseason on the horizon, SEC targets Uniswap, and BTC halving news: Hodler’s Digest, April 7–13

PayPal stablecoin circulation dropped 38% in March — Paxos

PayPal USD (PYUSD) — a stablecoin issued by the payment giant PayPal and the cryptocurrency company Paxos — saw a significant circulation drop in March. According to Paxos’ latest PayPal USD transparency report, PYUSD circulation amounted to $188.5 million in March — 39% less than in February. In February and January, PayPal USD circulation topped at $304 million and $301 million, respectively. As of March 29, PayPal USD treasury included $14.9 million in United States Treasury bonds, with a notional value of around $14.8 million. The current market value of PYUSD collateral in the U.S. Treasury bond-collateralized reverse repurchase agreements is $177.9 million, and the notional position value is approximately $174 million. The total net assets amounted to $192 million, with the notional position value of $189 million. PayPal USD market capitalization has been dropping since late February after reaching all-time high levels of $312 million on Feb. 26, according to data from CoinGecko. The stablecoin saw some sharp growth at the beginning of 2024, with its market value doubling in just about one month by mid-January. At the time of writing, PYUSD's market capitalization amounted to $194 million, up around 3% in the past seven days. PayPal USD all-time price chart. Source: CoinGecko The drop in PYUSD circulation came despite a rally in cryptocurrency markets, with Bitcoin (BTC) breaking all-time highs above $73,000 on March 13. Cointelegraph approached Paxos for a comment regarding the drop in PYUSD circulation but has yet to receive a response. Related: Tether completes ‘gold standard’ security audit PayPal launched the PayPal USD stablecoin in collaboration with Paxos Trust in August 2023, promoting it as being designed for digital payments and Web3. Pegged to the U.S. dollar on a 1:1 ratio, PYUSD is backed by U.S. dollar deposits, short-term Treasurys and other cash equivalents. Eight months after launch, PYUSD has emerged as a major stablecoin, ranked the 13th largest stablecoin by market capitalization, beating Paxos’ Pax Dollar (USDP) and Gemini Dollar (GUSD), according to CoinGecko. Top 13 stablecoins by market capitalization. Source: CoinGecko PYUSD’s market value accounts for just 0.18% of Tether (USDT) stablecoin, which boasts a $106.6 billion market value at the time of writing. The total market capitalization of all stablecoins amounted to $155 billion at the publishing time. Magazine: The DeFi bots pumping Solana’s stablecoin volume

PayPal USD (PYUSD) — a stablecoin issued by the payment giant PayPal and the cryptocurrency company Paxos — saw a significant circulation drop in March. According to Paxos’ latest PayPal USD transparency report, PYUSD circulation amounted to $188.5 million in March — 39% less than in February. In February and January, PayPal USD circulation topped at $304 million and $301 million, respectively. Cointelegraph approached Paxos for a comment regarding the drop in PYUSD circulation but has yet to receive a response. Source: CoinGeckoPYUSD’s market value accounts for just 0.18% of Tether (USDT) stablecoin, which boasts a $106.6 billion market value at the time of writing.

Rep. McHenry hopes digital asset bill passage will be his ‘biggest win’

Representative Patrick McHenry, chair of the United States House Financial Services Committee who has announced that he will not seek reelection in 2025, said he saw hope for the passage of legislation on digital assets before the end of his career in politics. Speaking at the Bitcoin Policy Summit in Washington, D.C., McHenry summed up his hopes for his remaining time in office. “We don't have a federal law — a definition of a digital accent. We don't have in federal law a means of exchange for a digital asset. We have to provide that clarity,” McHenry said. “The key thing to remind members of Congress though is that we now have this thing that is not defined in federal law.” Source: Swan McHenry expressed his hopes for the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act, both of which were approved by the House Financial Services Committee in 2023. The former bill “would state clearly what is a commodity, what is a security […] for digital assets and it would create a means of exchange,” McHenry said. McHenry was optimistic about the stablecoin bill. He has been working for two years with his “counterpart” on the House Financial Services Committee — apparently ranking member Maxine Waters — and they have achieved an understanding. Its passage into law “would be the first sign that there is hope and [...] there is bipartisanship when it comes to this digital world.” Related: Elizabeth Warren crypto bill draws criticism and sparks election challenge McHenry took crypto opponents to task for their lack of knowledge: “If they just take the time to read Satoshi white paper, it is a much easier conversation. […] That willfulness to not educate themselves leads them down rabbit holes of misinformation.” Nonetheless, McHenry said he hopes to see the stablecoin bill passed and “we can create some level of clarity by a definition which would then codify a property right.” In addition, he said he considered digital privacy another priority. In all: “If we can get clarity around digital assets that is going to be the biggest win of my 20 years in Congress. That would be fantastic.” Other aspects of cryptocurrency regulation were in better shape, though. “I believe the Biden administration is good enough to go on energy question,” McHenry said. Magazine: Lines in the sand: US Congress is bringing partisan politics to crypto

Speaking at the Bitcoin Policy Summit in Washington, D.C., McHenry summed up his hopes for his remaining time in office. “We don't have a federal law — a definition of a digital accent. We don't have in federal law a means of exchange for a digital asset. We have to provide that clarity,” McHenry said. He has been working for two years with his “counterpart” on the House Financial Services Committee — apparently ranking member Maxine Waters — and they have achieved an understanding.

Is Bitcoin’s pre-halving retrace over? 52K BTC accumulated on Sunday alone

Bitcoin’s (BTC) pre-halving retrace may already be over following one of the largest accumulation days in years, which saw Bitcoin reclaiming the $71,000 price level. On March 25, blockchain analytics firm Santiment reported that Bitcoin just “caught traders off guard” with a rebound as “key stakeholders” had a huge accumulation day over the weekend. Wallets, which it terms “sharks” and “whales,” holding between 10 and 10,000 coins accumulated 51,959 BTC on March 24, worth around $3.4 billion at the time, the firm revealed. It added that this equates to 0.263% of the entire currently available supply being accumulated in one day. As the Bitcoin halving approaches, three weeks away on or around April 19, “it would be unsurprising to see these wallets continue to grow, resulting in a positive impact on crypto-wide market caps,” it noted. Source: Santiment Crypto analysts were concerned about a more sizeable pre-halving retrace, assuming that history would rhyme with previous market cycles. However, BTC only fell around 17% from its March 14 all-time high of $73,738, dipping to $61,494 on March 20, according to CoinGecko. Technical analyst Rekt Capital said that if this ends up being the end of the pre-halving retrace, Bitcoin will have almost equaled the 2020 pre-halving retrace. “Bitcoin pulled back -18% in this cycle whereas BTC retraced just over -19% in 2020,” he noted. The analyst had previously predicted that this pre-halving retrace “would more likely be on the shallower side than on the deeper side” and could also be much shorter than has otherwise been the case historically. Related: Trading Bitcoin’s halving: 3 traders share their thoughts Reporting on market volatility and last week’s dip on March 25, crypto research firm Kaiko revealed that after an analysis of buy and sell orders, “selling intensified following the U.S. market close.” It concluded that “liquidity in the cryptocurrency market is not only fragmented across exchanges but also across trading pairs.” BTC was trading up 5.2% on the day at $70,252 at the time of writing after hitting an intraday high of $71,000 in late trading on March 25. Magazine: ‘Am I sorry? No’ — 3AC founder. $6B BTC laundered for fast food worker: Asia Express

Bitcoin’s (BTC) pre-halving retrace may already be over following one of the largest accumulation days in years, which saw Bitcoin reclaiming the $71,000 price level. Wallets, which it terms “sharks” and “whales,” holding between 10 and 10,000 coins accumulated 51,959 BTC on March 24, worth around $3.4 billion at the time, the firm revealed. Source: SantimentCrypto analysts were concerned about a more sizeable pre-halving retrace, assuming that history would rhyme with previous market cycles. Technical analyst Rekt Capital said that if this ends up being the end of the pre-halving retrace, Bitcoin will have almost equaled the 2020 pre-halving retrace. The analyst had previously predicted that this pre-halving retrace “would more likely be on the shallower side than on the deeper side” and could also be much shorter than has otherwise been the case historically.

Crypto phishing attacks reached ‘alarming levels’ — CertiK co-founder

While the first quarter of 2024 seemed “relatively typical” when it comes to hacks and exploits, Ronghui Gu, co-founder of blockchain security firm CertiK, said the complexity of private key compromises and phishing attacks raises concerns. Gu told Cointelegraph that among the incidents in Q1, losses attributed to private key compromises increased significantly compared with the first quarter of 2023. In its quarterly “Hack3d” security report, CertiK highlighted that losses from this attack reached $239 million despite there being only 26 incidents. Chart showing the number of incidents and amount lost in Q1 2024. Source: CertiK Compared with the same time period in 2023, when losses were only around $18.8 million, Q1 2024 recorded a 1,171% increase in losses caused by compromised private keys. Along with the 26 private key compromises, the overall number of incidents attributed to phishing attacks reached 83, with total losses reaching $64 million. Gu said that the complexity of such attacks also raises concerns: “The sophistication and success of phishing attacks have also reached alarming levels, with 18 phishing incidents, each causing over $1 million in losses.” Despite these two attack vectors being a constant risk for the Web3 space, Gu believes the crypto community is not entirely helpless. He said implementing multisig wallets and multiparty computation can greatly enhance security: “Private keys are the keystones of security in the blockchain world. Multisig wallets and multiparty computation can enhance security by distributing authorization power, thus mitigating the risk of single-point failures and unauthorized access.” Gu explained that these techniques ensure no single entity holds complete control over the assets. This means that attackers must attack multiple parties to gain access to a project’s private keys. Related: Nearly $100M recovered from hacks in March — PeckShield While the threats seem like a Web3 problem, Gu believes that countering targeted and advanced attacks requires incorporating both Web2 and Web3 security practices. This includes properly encrypting internal systems, implementing multifactor authentication and conducting regular security audits to address potential vulnerabilities. Gu also noted that educating employees is necessary to combat security attacks. “Educating team members on the latest phishing and social engineering tactics can significantly reduce the risk of compromises.” Losses from Web3 security incidents by quarter. Source: CertiK When asked if the trends observed in the first quarter would carry over to the rest of the year, Gu predicted that a continuation is reasonable because of the recent market upswing. He explained that as the market grows, the incentive for cybercriminals to exploit vulnerabilities also increases. “This, combined with the escalating sophistication of attacks, suggests that we should not only expect the continuation of serious security incidents but also proactively prepare for the emergence of new, innovative attack vectors,” he added. Magazine: ‘Web3 Gaming sucks’ says Ava, 2M Bitcoin Miner players make 13c: Web3 Gamer

While the first quarter of 2024 seemed “relatively typical” when it comes to hacks and exploits, Ronghui Gu, co-founder of blockchain security firm CertiK, said the complexity of private key compromises and phishing attacks raises concerns. In its quarterly “Hack3d” security report, CertiK highlighted that losses from this attack reached $239 million despite there being only 26 incidents. Along with the 26 private key compromises, the overall number of incidents attributed to phishing attacks reached 83, with total losses reaching $64 million. Gu also noted that educating employees is necessary to combat security attacks. “Educating team members on the latest phishing and social engineering tactics can significantly reduce the risk of compromises.”Losses from Web3 security incidents by quarter.

Fantom CEO defends Solana amid network woes

Fantom network creator Andre Cronje has expressed support for the Solana network amid recent transaction failures. Cronje is considered one of the most influential thought leaders in decentralized finance (DeFi). According to a post on X by Cronje, some critics view the ongoing congestion as Solana’s flaw, but it stems from the ecosystem’s rapid growth, which has increased demand for block space. Cronje stated that performance issues are technical challenges, not consensus mechanism flaws. According to Dune Analytics, amid a surge in activity driven by the recent memecoin craze on Solana, approximately 75% of non-vote transactions failed on April 4. Yet, proponents argue the data is widely misunderstood. Cronje referred to the Solana network as a victim of success. The uptick in transaction failures was followed by a recent uproar from Solana users on social media, who complained of failed transactions and a degraded user experience. Meanwhile, other members of the community supported Cronje’s stance, stating that people often laud blockchain technology for its underlying principles and capabilities. However, when increased demand leads to temporary user experience issues, they tend to react negatively despite craving higher usage. Solana CEO Anatoly Yakovenko expressed frustration, noting that addressing congestion bugs is more challenging than total liveness failure. While the latter requires identification and patching, congestion bugs entail a lengthy testing process and releasing updates, hindering rapid deployment. Related: Starknet explains reasons for 4-hour block outage This is not the first time Solana has gone down. Solana suffered a significant outage in early February. Downtime in block production on its mainnet halted the network’s block progression for over five hours. Since January 2022, Solana has seen around half a dozen significant outages and 15 partial or primary outage days. Solana-focused software development firm Anza released a postmortem report of the recent outage on Feb. 9. The report revealed that Solana’s Just-in-Time (JIT) compilation cache, which compiles all programs before executing a transaction, encountered a bug. Austin Federa, Solana Foundation’s strategy head told Cointelegraph of plans to replace the old loader system with a new one, set to deactivate upon update rollout. The price of Solana’s (SOL) token has fallen around 3% in the last week, stumbling slightly after a 45% rally in March. Its recent weekly drawdown has seen it fall back to being the fifth-largest cryptocurrency by market capitalization, according to CoinGecko data. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

Fantom network creator Andre Cronje has expressed support for the Solana network amid recent transaction failures. According to Dune Analytics, amid a surge in activity driven by the recent memecoin craze on Solana, approximately 75% of non-vote transactions failed on April 4. Cronje referred to the Solana network as a victim of success. Solana CEO Anatoly Yakovenko expressed frustration, noting that addressing congestion bugs is more challenging than total liveness failure. Solana-focused software development firm Anza released a postmortem report of the recent outage on Feb. 9.

VC Roundup: Capital flows and alternative funding models fuel crypto startups

Venture capitalists are back in crypto, bringing with them liquidity for alternative funding methods for startups, such as grants and node sales. Base-native lending platform Seamless, for instance, has announced a co-sponsored initiative with layer-3 Degen Chain and semi-fungible token protocol Pandora that will distribute nearly $600,000 in grants to creators and developers building on Base. While Degen focuses on developers interested in building within Farcaster and Degen Chain, Pandora seeks creators interested in ERC-404 technology for their collections and memecoins. “Members of the various communities will be evaluating applications, so it’s important that there’s a clear vision of how the grants will help uplift the relevant ecosystems. Useful and innovative ideas are encouraged,” told Cointelegraph Ras, a pseudonymous member of the Seamless Community Grants Program (SCGP). New grant submissions are available through the Community Governance forum. Applicants must complete a form detailing their project and specific needs. Another grant round is just around the corner, this time from the SingularityNET ecosystem. The Deep Funding Round 4, which will provide over $1 million in capital for decentralized artificial intelligence initiatives, is expected to be unveiled in early May. While grants can be a valuable resource for new projects and developers, a more welcoming funding environment is also emerging for crypto startups. Investment in crypto firms rose by 38% during the first quarter of 2024, and the number of projects receiving funding grew by 49% — the highest since the fourth quarter of 2021. In March alone, over $1.1 billion was invested across 180 crypto-related projects, a 52.5% month-on-month increase, with funds primarily directed toward infrastructure and decentralized finance projects. Among April’s highlights to date, Paradigm led a $225 million round on layer-1 protocol Monad Labs, while Auradine, a crypto mining hardware provider, completed a Series B funding worth $80 million. In this edition of Cointelegraph’s VC Roundup, we feature startups that raised capital during the first weeks of April. AI-blockchain platform Sapien raises $5M in seed round The artificial intelligence data labeling startup Sapien has secured a $5M seed investment from Primitive Ventures, Animoca, Ravikant Capital, and Yield Guild Games. Founded in 2023 by Trevor Koverko, previously of Polymath, Sapien aims to solve an AI bottleneck: data labeling. The company uses blockchain technology to implement gamification in data labeling and rewards for labelers to produce higher-quality work. The global data labeling market is currently estimated at around $3 billion, primarily dominated by labeling farms in developing countries. “This funding will allow us to expand our team, expand our frontend labeling infrastructure, and provide better quality data,” said Koverko in a statement. Ribbit Capital leads $10.6M funding round for Alpen Labs’s Bitcoin-based economy Alpen Labs, a Bitcoin layer-2 developer, has successfully raised $10.6 million to enhance Bitcoin’s blockchain scalability using zero-knowledge proofs. Emerging from stealth mode, Alpen Labs aims to introduce smart contract functionality to Bitcoin through its rollup infrastructure. The funding round, led by Ribbit Capital, also saw participation from Castle Island Ventures, Robot Ventures, and Axiom Capital. The startup, which began its journey nearly two years ago, focuses on creating a programmable and scalable layer for Bitcoin, supporting various on-chain financial applications, including payments, lending, and stablecoins. The team has veterans from Blockstream Research, Nethermind, Aleo, and Palantir, building an ecosystem that will enable applications to settle transactions via Bitcoin. Node sales generated $8M for Ethereum layer-2 HYCHAIN Layer-2 decentralized network for gaming HYCHAIN has raised 2,098 Ether (ETH), worth over $8 million, within 48 hours through a node sale. The protocol employs a business model that allows community members to earn rewards by operating software nodes. Participants receive 25% of transaction fees indefinitely for contributing to network security. According to the platform, 16,876 node keys were created by 3,357 unique holders. The HYCHAIN mainnet launched on March 9, providing several features and bridges for connectivity with Ethereum and Polygon networks. Web3Firewall secures $2.5M in pre-seed funding Web3Firewall completed a $2.5 million pre-seed funding round led by Laser Digital — Nomura’s digital asset subsidiary, gumi Cryptos Capital, and SPEILLLP, a Susquehanna International Group member. Founded in 2023 by Dr. Samer Fayssal, former chief information security officer at BitGo, the company offers an integrated risk and compliance platform designed for blockchain and digital asset companies, specifically targeting firms working in decentralized finance (DeFi), nonfungible tokens (NFTs), and decentralized autonomous organizations (DAOs). According to the startup, the platform will go live in the second quarter of this year, featuring real-time threat detection, prevention, and response powered by AI and machine learning. Magazine: Creating ‘good’ AGI that won’t kill us all — Crypto’s Artificial Superintelligence Alliance

Venture capitalists are back in crypto, bringing with them liquidity for alternative funding methods for startups, such as grants and node sales. Founded in 2023 by Trevor Koverko, previously of Polymath, Sapien aims to solve an AI bottleneck: data labeling. The company uses blockchain technology to implement gamification in data labeling and rewards for labelers to produce higher-quality work. The global data labeling market is currently estimated at around $3 billion, primarily dominated by labeling farms in developing countries. The funding round, led by Ribbit Capital, also saw participation from Castle Island Ventures, Robot Ventures, and Axiom Capital.

MeWe social network boss says blockchain can solve the TikTok problem

MeWe chairman and CEO Jeffrey Edell recently penned an op-ed detailing how he believes the situation between the United States government and China’s TikTok could be avoided by implementing blockchain technologies. Edell is in the unique position of helming a social media company with reportedly more than 20 million users that’s made the leap from traditional Web2 to the blockchain. The TikTok situation A slew of recent reports indicate that the U.S. is currently weighing an outright ban on China’s TikTok social media platform. There are allegations that ByteDance, the platform’s owner, has turned over sensitive user data to the Chinese government with potential negative implications for U.S. security. In an op-ed penned for Rolling Stone, Edell wrote that the TikTok situation is, at its crux, a matter of user privacy that could have been averted through decentralization: “While the concerns surrounding TikTok are valid, I believe the focus should not solely be on one app or one country. Instead, companies should work toward creating and setting strict guidelines for handling personal data, digital identity and users’ privacy, regardless of their origin.” Edell added that “one way to ensure that personal data is secure and protected is through the use of Web 3-based, blockchain technology.” Transitioning to blockchain As Cointelegraph reported, MeWe made the transition from Web2 to the Frequency blockchain network, a Polkadot parachain, in April 2023. Essentially, the argument for blockchain-based user privacy hinges on who, exactly, has access to user data. On traditional social media platforms, such as X, user data is held and accessed through a centralized control method wherein the company itself retains ownership of all data. In TikTok’s case, this ostensibly means that ByteDance — and, by legal extension, the government of China — owns all of the platform’s user data, including more than 150 million U.S.-based users. By placing data on the blockchain and implementing specific privacy controls, a social media network can give users control over their data without compromising platform functionality. Related: Worldcoin launches its own ‘human-centric’ blockchain network While MeWe’s user base doesn’t quite stack up to TikTok’s, the company’s transition to blockchain shows that it’s possible. To that end, Edell shared six best practices for other companies considering the change in his Rolling Stone article: understanding the technology, starting small, choosing the platform that’s right for your organization, staying up to date with regulatory compliance changes, collaborating with stakeholders, and ensuring employees are educated and trained on blockchain.

Edell is in the unique position of helming a social media company with reportedly more than 20 million users that’s made the leap from traditional Web2 to the blockchain. The TikTok situationA slew of recent reports indicate that the U.S. is currently weighing an outright ban on China’s TikTok social media platform. Essentially, the argument for blockchain-based user privacy hinges on who, exactly, has access to user data. On traditional social media platforms, such as X, user data is held and accessed through a centralized control method wherein the company itself retains ownership of all data. By placing data on the blockchain and implementing specific privacy controls, a social media network can give users control over their data without compromising platform functionality.

Wormhole, Ethena and Waves are top 3 ‘trending’ tokens right now: Santiment

The native tokens related to the interoperability project Wormhole and synthetic dollar protocol Ethena Labs, along with the Waves Protocol, are currently the most trending crypto assets on social media, according to data from Santiment. Wormhole’s W (W) token and Ethena Labs’ governance token (ENA) recently underwent multimillion airdrops, while the Waves (WAVES) token has captured trader attention after it was flagged for a potential delisting on Binance. Multichain interoperability project Wormhole underwent its “Wormhole Token Generation Event” on March 3, which saw 670 million tokens distributed to nearly 400,000 eligible wallets. In February, Wormhole described the event as “a crucial step in advancing Wormhole towards a decentralized and permissionless future.” However, the W token has fallen 27.5% to $1.20 since CoinGecko started tracking its price on April 3. Reports also emerged that Wormhole’s team also briefly forgot to exclude the address of the exploiter who stole $321 million from the protocol back in February 2022. ENA is also receiving close attention following its token launch on April 2, which included a massive $450-million airdrop. The largest recipient received 3.3 million ENA tokens, worth $1.96 million at the time. ENA has since surged past the $1 mark, meaning the holder’s ENA bag would now be worth over $3.4 million. Shortly after ENA went live, it was listed on some of the largest cryptocurrency exchanges, including Binance, Bybit, KuCoin, HTX, MEXC and BitMart. Ethena is a synthetic dollar protocol built on Ethereum that will provide a cryptocurrency-native solution for money not reliant on the traditional banking system. However, eyebrows were raised last month when it started offering a 67% annual percentage yield on its synthetic dollar, USDe. Related: Memecoin madness is breaking the Bitcoin halving cycle Meanwhile, the Waves Protocol’s WAVE token has plummeted 32.5% to $2.88 since April 2, sparking trader attention. Santiment’s “AI Summary” suggests WAVES is trending due to a proposal to invest Neutrino (XTN) treasury funds into the WavesIndex pool, where the protocol would buy tokens using WAVES from Neutrino reserves. However, WAVES was also added to Binance’s Monitoring Tags list, which means that it may no longer meet the standards and could be delisted at any time. Magazine: 5 dangers to beware when apeing into Solana memecoins

The native tokens related to the interoperability project Wormhole and synthetic dollar protocol Ethena Labs, along with the Waves Protocol, are currently the most trending crypto assets on social media, according to data from Santiment. Wormhole’s W (W) token and Ethena Labs’ governance token (ENA) recently underwent multimillion airdrops, while the Waves (WAVES) token has captured trader attention after it was flagged for a potential delisting on Binance. Multichain interoperability project Wormhole underwent its “Wormhole Token Generation Event” on March 3, which saw 670 million tokens distributed to nearly 400,000 eligible wallets. The largest recipient received 3.3 million ENA tokens, worth $1.96 million at the time. Ethena is a synthetic dollar protocol built on Ethereum that will provide a cryptocurrency-native solution for money not reliant on the traditional banking system.

21Shares debuts Toncoin staking ETP TONN on SIX Exchange

21Shares, one of the largest cryptocurrency exchange-traded product (ETP) issuers, is launching a staking ETP based on cryptocurrency Toncoin (TON). The new Toncoin Staking ETP is a 100% physically backed product that tracks the performance of TON while reinvesting staking yields into the ETP for enhanced performance. The product will start trading on the Swiss SIX Exchange under the ticker TONN on March 27, the firm said in an announcement to Cointelegraph on Wednesday. The new crypto investment product aims to provide investors with an opportunity to earn TON staking rewards without the need to set up and manage a staking node. The TON Blockchain uses a proof-of-stake (PoS) model to achieve network consensus, allowing validators — or network security supporters — to earn rewards by staking. According to the TON Foundation, users typically need at least 600,000 TON ($2.9 million) to qualify for staking, but users are allowed to join forces and pool their assets together. With 21Shares, investors will be able to enjoy the benefits of staking Toncoin without the technical complexities associated with TON staking. Instead, they will have the convenience and liquidity of traditional financial markets, the announcement notes. According to 21Shares co-founder and president Ophelia Snyder, TONN is the “first and only TON ETP” ever launched. Snyder told Cointelegraph that the firm opted to launch a staking ETP instead of a spot one because staking ETPs are “superior to non-staking ETPs as the staking yield benefits ETP holders.” She added: “A non-staking ETP would forego their income stream which is paid in TON, so for investors thinking in USD terms, their USD on yield cost goes up if TON goes up.” According to the 21Shares website, the Toncoin Staking ETP holds $25 million at launch, equivalent to roughly 5 million TON at the time of writing. The ETP’s net asset value debuts at $20. The Toncoin Staking ETP. Source: 21Shares 21Shares mentioned that the TONN ETP provides a regulated and secure way for investors to tap into The Open Network, a blockchain network used by popular crypto-friendly messengers like Telegram. Related: TON blockchain launches $115M community incentive program “The Open Network aims to create a comprehensive ecosystem of user-facing services like the super-app WeChat, offering products like a decentralized storage, decentralized VPN, a payments solution and a native wallet to hold crypto directly within the messaging app,” 21Shares announcement noted. The Open Network, or TON, started as “Telegram Open Network” in 2019 and was developed by Pavel Durov’s Telegram. The company was forced to cut involvement in the blockchain project in May 2020 following a long-running legal battle with the United States Securities and Exchange Commission. Despite dropping TON formally, Telegram continued actively participating in promoting the open-sourced TON technology and Toncoin. TON is one of the few coins natively supported in the custodial cryptocurrency wallet on Telegram, known simply as “Wallet.” In line with the ongoing rally on cryptocurrency markets, TON has posted significant growth recently, surging 134% over the past 30 days. At the time of writing, the coin is trading at $4.97, down about 4.5% over the past 24 hours, according to CoinGecko. Magazine: 5 dangers to beware when apeing into Solana memecoins

21Shares, one of the largest cryptocurrency exchange-traded product (ETP) issuers, is launching a staking ETP based on cryptocurrency Toncoin (TON). The new Toncoin Staking ETP is a 100% physically backed product that tracks the performance of TON while reinvesting staking yields into the ETP for enhanced performance. With 21Shares, investors will be able to enjoy the benefits of staking Toncoin without the technical complexities associated with TON staking. The Toncoin Staking ETP. The Open Network, or TON, started as “Telegram Open Network” in 2019 and was developed by Pavel Durov’s Telegram.

OKX launches WIF and MEW spot trading amid memecoin craze

Cryptocurrency exchange OKX is moving to capitalize on the ongoing memecoin craze by listing major rising Solana-based memecoins like the Dogwifhat (WIF) and the Cat in a Dog’s World (MEW). OKX has officially started spot trading for WIF and MEW, according to the exchange’s announcement on X. OKX users can now start depositing WIF and MEW tokens on the exchange to start trading the memecoins against the Tether (USDT) stablecoin. According to the announcement, WIF spot trading will open at 9:00 am UTC on April 15, or one hour after MEW spot trading was launched. The withdrawals for both tokens will open at 10:00 am UTC on April 16, OKX noted. WIF and MEW are among fast-growing memecoins, trading millions of dollars each day. Both are based on the Solana blockchain, which has been outperforming rival networks such as Ethereum and Avalanche in terms of network activity and adoption due to the ongoing memecoin frenzy. Launched in November 2023, Dogwifhat (WIF) has emerged as one of the biggest memecoins, making it to the list of the top 50 coins by market capitalization by the first quarter of 2024 at nearly $50 billion. At the time of writing, WIF is the 42nd-largest cryptocurrency by market cap and the third-largest memecoin after Elon Musk’s favorite memecoin, Dogecoin (DOGE), and Shiba Inu (SHIB), according to data from CoinGecko. The token is trading at $3, up around 13% over the past 24 hours at the time of writing. Top five memecoins by market capitalization. Source. CoinGecko The new Cat in a Dog’s World, or MEW, cryptocurrency was launched just a few weeks ago, officially debuting on March 26. The memecoin aims to disrupt the dominance of dog-themed memecoins, including DOGE, SHIB and WIF. Related: Trader hits $6M pay day after spending $8K on Ethereum memecoin At the time of writing, MEW is trading at $0.0052, up 80% over the past 24 hours, according to CoinGecko data. The newly listed memecoins join a series of memecoins already available on OKX. At the time of writing, the exchange lists roughly 20 memecoins, including the new additions, according to its official website. Magazine: 5 dangers to beware when apeing into Solana memecoins

Cryptocurrency exchange OKX is moving to capitalize on the ongoing memecoin craze by listing major rising Solana-based memecoins like the Dogwifhat (WIF) and the Cat in a Dog’s World (MEW). OKX has officially started spot trading for WIF and MEW, according to the exchange’s announcement on X. OKX users can now start depositing WIF and MEW tokens on the exchange to start trading the memecoins against the Tether (USDT) stablecoin. According to the announcement, WIF spot trading will open at 9:00 am UTC on April 15, or one hour after MEW spot trading was launched. WIF and MEW are among fast-growing memecoins, trading millions of dollars each day. At the time of writing, WIF is the 42nd-largest cryptocurrency by market cap and the third-largest memecoin after Elon Musk’s favorite memecoin, Dogecoin (DOGE), and Shiba Inu (SHIB), according to data from CoinGecko.

‘Ripple is well-positioned to pay a significant civil penalty,‘ says SEC

A United States Securities and Exchange Commission (SEC) brief detailing proposed fines and penalties for blockchain firm Ripple describes a different narrative than the one pushed by the company’s executives. In a March 25 filing in U.S. District Court for the Southern District of New York, attorneys for the SEC proposed Ripple pay $876,308,712 in disgorgement and $198,150,940 in prejudgment interest and a $876,308,712 civil penalty — roughly $1.95 billion total. According to the regulator, the fines and penalties were appropriate based on Ripple’s “defiance of the law,” continuing to sell XRP after legal warnings. “Ripple is well-positioned to pay a significant civil penalty,” said the SEC. “And one is warranted here both because a civil penalty should not be just the cost of doing business for a securities law violator, as the Second Circuit has held, and because the need for deterrence is clear given Ripple’s enormous amount of unregistered sales of XRP over the last three years.” The filing was consistent with what Ripple Chief Legal Officer Stuart Alderoty claimed would be made public in a March 25 X post: roughly $2 billion in fines and penalties. Alderoty claimed the SEC intended to “punish and intimidate” Ripple, adding the firm planned to file a response to the proposed judgment in April. The proposed SECorder added: “Only a significant sanction from this Court and the return of the ill-gotten gains Ripple made from its violations will cause Ripple to correct its conduct.” Related: RippleX addresses XRP ledger’s AMM pool error, advises user caution Filed in December 2020, the SEC’s lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen alleged the firm raised $1.3 billion in unregistered securities through sales of XRP tokens. The case made waves in the crypto space when Judge Analisa Torres ruled in July 2023 that XRP was not a security regarding programmatic sales on digital asset exchanges. Magazine: ETH a security? Celsius clawbacks, SBF says sentence too harsh: Hodler’s Digest, March 17-23

A United States Securities and Exchange Commission (SEC) brief detailing proposed fines and penalties for blockchain firm Ripple describes a different narrative than the one pushed by the company’s executives. In a March 25 filing in U.S. District Court for the Southern District of New York, attorneys for the SEC proposed Ripple pay $876,308,712 in disgorgement and $198,150,940 in prejudgment interest and a $876,308,712 civil penalty — roughly $1.95 billion total. According to the regulator, the fines and penalties were appropriate based on Ripple’s “defiance of the law,” continuing to sell XRP after legal warnings. “Ripple is well-positioned to pay a significant civil penalty,” said the SEC. Alderoty claimed the SEC intended to “punish and intimidate” Ripple, adding the firm planned to file a response to the proposed judgment in April.

Crypto users propose dropping lawsuit against Sam Bankman-Fried to pursue FTX influencers

A group of cryptocurrency users has reached an agreement with former FTX CEO Sam “SBF” Bankman-Fried as part of a class-action lawsuit filed in Florida. In an April 19 filing in United States District Court for the Southern District of Florida, plaintiffs who sued FTX influencers in 2022 announced they had reached a settlement with Bankman-Fried. According to the filing, the plaintiffs recognized the expense and length of proceedings should they continue to pursue judgment against SBF, opting to use some of the information presented at his criminal trial to continue their case against FTX promoters. “[Bankman-Fried] has knowledge and other information that Class Representatives and Class Counsel believe will be valuable to Class Representatives’ cases against other defendants in the FTX MDL [multidistrict litigation], particularly relating to the underlying actions and their connection to Miami, Florida, where FTX’s U.S. headquarters were based, as well as each MDL Defendants’ knowledge of and assistance with the actions and connections to other states in which jurisdictions over those Defendants is asserted,” said the April 19 filing. Source: PACER Subject to court approval, the settlement would resolve the lawsuit between SBF and crypto users seeking recourse for losses during the fall of FTX. The filing suggested that the plaintiffs proposed the settlement on March 28 — the day a judge sentenced Bankman-Fried to 25 years in prison for his conviction on felony felony charges. The plaintiffs in the lawsuit proposed that Bankman-Fried assist in prosecuting FTX influencers and aid in victim recovery through documents and testimony provided during his criminal trial. The lawyers specifically cited information related to celebrities and companies responsible for endorsing the crypto exchange before its downfall, including sports stars Naomi Osaka, Tom Brady, Stephen Curry and Shaquille O’Neal. Related: Crypto lawyer wants to depose Changpeng Zhao for civil case The lawsuit, first filed in November 2022, shortly after FTX filed for bankruptcy, was consolidated into its present form in June 2023. The Moskowitz Law Firm, behind many crypto-based class-action lawsuits, represented the plaintiffs. Bankman-Fried’s lawyers filed notice to appeal the former FTX CEO’s conviction and sentence on April 11. They also requested SBF remain at the Metropolitan Detention Center in Brooklyn rather than a federal prison in the San Francisco Bay Area to assist in his defense. Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame

A group of cryptocurrency users has reached an agreement with former FTX CEO Sam “SBF” Bankman-Fried as part of a class-action lawsuit filed in Florida. In an April 19 filing in United States District Court for the Southern District of Florida, plaintiffs who sued FTX influencers in 2022 announced they had reached a settlement with Bankman-Fried. Source: PACERSubject to court approval, the settlement would resolve the lawsuit between SBF and crypto users seeking recourse for losses during the fall of FTX. The plaintiffs in the lawsuit proposed that Bankman-Fried assist in prosecuting FTX influencers and aid in victim recovery through documents and testimony provided during his criminal trial. Related: Crypto lawyer wants to depose Changpeng Zhao for civil caseThe lawsuit, first filed in November 2022, shortly after FTX filed for bankruptcy, was consolidated into its present form in June 2023.

History of Crypto: Crypto winter and Ethereum landmarks

The cryptocurrency market has experienced several cycles characterized by periods of rapid price increases known as bull runs, followed by extended downturns referred to as “crypto winters.” The term crypto winter refers to a phase within the cryptocurrency market characterized by a downturn in investor enthusiasm. This is evident through significant declines in crypto asset prices and trading volumes from their previous highs. Distinct from traditional capital markets, the cryptocurrency sector lacks standardized metrics to identify the onset of a crypto winter. EXPLORE THE HISTORY OF CRYPTO Nevertheless, a pattern has been observed that tends to span a four-year cycle. This cycle starts with an increase in the price of Bitcoin (BTC), leading up to the block reward halving. After the halving, a price downturn typically begins after crypto assets achieve new all-time highs. The term crypto winter is not officially declared by any specific regulatory body or organization but is recognized by a consistent trend of declining prices across various cryptocurrencies. This phase began in January 2018 and extended through December 2020. The Great Crash of September 2018 During this period, Bitcoin and Ether (ETH), the two leading cryptocurrencies, experienced a loss of over 80% in value from their all-time highs. Bitcoin had previously reached a peak of nearly $20,000 toward the end of 2017, while Ether had ascended to over $1,400 before both saw a sharp decrease in value by September 2018. Among the top 100 listed cryptocurrencies, 95% recorded a substantial drop in value. Multiple inherent industry challenges triggered the crypto winter of 2018. These included the notably high failure rate of initial coin offerings, where over 97% did not meet their objectives, coupled with the issue of individual investors being overly leveraged. Regulatory concerns further complicated the situation, leading to a significant withdrawal of investors from the market. The aftermath of the 2018 crypto crash profoundly affected the perception of cryptocurrencies. Financial institutions began to view the crypto market skeptically, labeling it as potentially speculative, while governments worldwide advised caution regarding crypto investments. This period of inactivity shifted in July 2019, when investor enthusiasm began to warm up, propelling the price of Bitcoin beyond the $10,000 threshold. This revival in the market’s fortunes, however, was short-lived. In March 2020, the outbreak of the COVID-19 pandemic introduced a significant liquidity crisis that impacted markets globally, including the cryptocurrency market. EXPLORE THE HISTORY OF CRYPTO The Ethereum PoS journey sees new plans and reschedules Despite the significant downturn in 2018, the year also witnessed pivotal developments for Ethereum. During this period, Ethereum began laying the groundwork for its transition to a proof-of-stake (PoS) system despite facing delays and rescheduling efforts. Early in 2018, network congestion was caused by the popularity of CryptoKitties, a blockchain-based game. This event highlighted the need for Ethereum to improve its scalability. In response, Ethereum explored the concept of sharding, a process that divides the blockchain into several smaller, more manageable segments known as shard chains or data layers. Each shard operates independently, allowing for parallel processing of information, which can significantly enhance the blockchain’s scalability. However, Ethereum’s transition to a proof-of-stake (PoS) blockchain was slower than anticipated, with multiple delays along the way. According to its 2017 roadmap, two significant upgrades were planned from Ethereum — Metropolis and Serenity — to improve scalability by introducing proof-of-stake and sharding. The Metropolis upgrade was to be implemented in two phases: Byzantine, which focused on privacy improvements, and Constantinople, which would introduce a hybrid proof-of-work+PoS system. Nonetheless, by June 2018, Ethereum abandoned the hybrid approach in favor of a more straightforward PoS system known as Casper 2.0. Although initially expected in 2019, this transition was completed in 2021, illustrating the complexities involved in upgrading such a significant and widely-used blockchain platform. In a notable development during this period, the United States Securities and Exchange Commission (SEC) classified Ether as a non-security in June. This decision made Ether only the second asset, after Bitcoin, to receive such a designation, sparking discussions and debates in subsequent years. 2019: The year of mainstream recognition and DeFi In 2019, Ethereum gained significant attention due to its technical progress and decentralized finance (DeFi) expansion as an ecosystem. Over the course of the year, the DeFi sector experienced considerable growth, with the total value locked in DeFi protocols increasing to $667 million by Dec. 31, 2019. DeFi TVL chart 2019. Source: Medium Initially dominated by MakerDAO, which held 1.86 million ETH (approximately $260.4 million in value at the time), the sector saw an influx of new participants by year’s end. Decentralized Exchanges also experienced significant growth, gaining traction amid the prevailing popularity of centralized exchanges. Uniswap emerged as a key player, with its average daily trading volume increasing from $25,000 to $1.5 million and its liquidity expanding from $500,000 to $25 million. Moreover, Ethereum began to attract attention from various sectors, including major corporations, financial institutions, consumer brands and celebrities. Basketball player Spencer Dinwiddie announced a initiative to tokenize his NBA contract on Ethereum, creating 90 Ethereum-based tokens. These tokens allowed holders to invest in a portion of Dinwiddie’s futures contract earnings plus interest. Dinwiddie received $13.5 million upfront from his $34 million contract through this arrangement. The Sacramento Kings, a professional basketball team, launched a rewards program using a token built on Ethereum to enhance fan engagement through blockchain technology. In the entertainment industry, the Star Trek franchise announced it would issue a series of collectible ships as nonfungible tokens on Ethereum, leveraging the platform for digital collectibles. EXPLORE THE HISTORY OF CRYPTO Additionally, Samsung introduced a developer platform focused on Ethereum and announced a new smartphone with an integrated Ethereum wallet.

The aftermath of the 2018 crypto crash profoundly affected the perception of cryptocurrencies. EXPLORE THE HISTORY OF CRYPTOThe Ethereum PoS journey sees new plans and reschedulesDespite the significant downturn in 2018, the year also witnessed pivotal developments for Ethereum. Nonetheless, by June 2018, Ethereum abandoned the hybrid approach in favor of a more straightforward PoS system known as Casper 2.0. Moreover, Ethereum began to attract attention from various sectors, including major corporations, financial institutions, consumer brands and celebrities. EXPLORE THE HISTORY OF CRYPTOAdditionally, Samsung introduced a developer platform focused on Ethereum and announced a new smartphone with an integrated Ethereum wallet.

Crypto sleuth warns of scammers behind DeFi protocol

Pseudonymous blockchain investigator ZachXBT issued a warning 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. “In the past they let the TVL grow to 7 figs before stealing all of users funds deposited to the protocol and falsify KYC documents + use low tier audit firms. They now have launched scams on Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, Avalanche, etc,” noted ZachXBT. The group is also believed to be responsible for scams on Hash DAO, Glori Finance and ZebraDAO. Losses attributed to the group are estimated at over $20 million. A rug pull takes place when the developers of a blockchain-based protocol suddenly withdraw all of their funds from a liquidity pool or project wallet, essentially draining the funds invested by others. This usually happens without any warning, leaving investors with worthless tokens or assets. As part of the latest scam endeavor, the group reportedly funded a Leaper Finance address on the Blast network with nearly $1 million laundered from previous scams, adding further liquidity to lure victims. Shortly after Leaper Finance’s connection to the scams was revealed, the group replied to ZachXBT, harassing the investigator while announcing a “token launch.” “Nice work! My comrades here at Lazarus fear you yet admire you!” they said in reference to the North Korean hacker group Lazarus. Leaper Finance and Glori Finance accounts on X have been deactivated, and the projects’ websites have also gone dark. According to a Feb. 29 research report by blockchain security firm Immunefi, over $200 million worth of cryptocurrency was lost to hacks and rug pulls within the first two months of 2024 across 32 individual incidents. Magazine: 5 dangers to beware when apeing into Solana memecoins

Pseudonymous blockchain investigator ZachXBT issued a warning 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. The group is also believed to be responsible for scams on Hash DAO, Glori Finance and ZebraDAO. Leaper Finance and Glori Finance accounts on X have been deactivated, and the projects’ websites have also gone dark.

Dencun is a big step towards mass adoption: Metis CEO

Ethereum’s Dencun upgrade is a big step for mass blockchain adoption that could also bring benefits for traditional financial (TradFi) companies in the crypto space, the CEO of layer-2 (L2) network Metis said. Tom Ngo told Cointelegraph in an interview: “It’s a big step for mass adoption for companies to have more predictable transactions on their balance sheets. Even for TradFi, all this slippage matters in their trades, how they manage assets, and if they have to bridge or transfer to different parties. So in general, this is one of the biggest upgrades also for L2s as it reduces the gas fees.” Ethereum’s Dencun upgrade went live on the mainnet on March 13 as the biggest upgrade since the Merge transitioned the mainnet to a proof-of-stake consensus model on Sept. 15, 2022. The anticipation around the upgrade was due to Dencun’s aim of reducing transaction fees on L2 blockchain networks and increasing Ethereum’s scalability. High transaction costs associated with Ethereum are some of the biggest challenges for mainstream user adoption, for whom even a few cents matter, Ngo said. “The mainstream users are used to free messaging and free internet. I think blockchain is the same and will keep lowering the barrier of entry for the user as a whole and [enable] organizations and companies where they have to take an account for the fluctuation and gas transaction.” Some L2 protocols saw a significant drop in transaction fees following the upgrade. Median fees declined as much as 99% on Starknet, from $6 to just $0.04 after the upgrade. Related: Dencun is about fee stabilization, not reduction — Fuel founder Despite transaction fees on L2s falling, the Dencun upgrade hasn’t addressed the issue of high gas fees on the Ethereum mainnet, which could be part of the reason L2s will attract increasingly more users and capital. According to Ngo: “There's a lot of capital flowing into L2s as more users and more projects become familiar, have more secured ways to transact, and more trusted names are building on L2s. L2s are meant to build up and scale Ethereum. So L2s will continue to grow year over year.” The total value locked in L2 solutions is at $39.48 billion, up % from $10.3 billion a year ago, according to L2beat data. Combined TVL of L2s. Source: L2beat When asked about the challenges of mainstream decentralized finance (DeFi) adoption, Ngo said that user experience and interoperability are two of the most pressing concerns. Tom Ngo, CEO of Metis, talks about the importance of interoperability. Related: Key Ethereum price metric targets $5.4K ETH in 2024

Ethereum’s Dencun upgrade is a big step for mass blockchain adoption that could also bring benefits for traditional financial (TradFi) companies in the crypto space, the CEO of layer-2 (L2) network Metis said. Tom Ngo told Cointelegraph in an interview:“It’s a big step for mass adoption for companies to have more predictable transactions on their balance sheets. The anticipation around the upgrade was due to Dencun’s aim of reducing transaction fees on L2 blockchain networks and increasing Ethereum’s scalability. High transaction costs associated with Ethereum are some of the biggest challenges for mainstream user adoption, for whom even a few cents matter, Ngo said. Source: L2beatWhen asked about the challenges of mainstream decentralized finance (DeFi) adoption, Ngo said that user experience and interoperability are two of the most pressing concerns.

Bitcoin headed for ‘screwy price action’ after 64% surge in first quarter

Bitcoin (BTC) recorded one of its strongest quarters in the past three years in Q1, but analysts warn this could lead to significant volatility in the lead-up to the Bitcoin halving. “Be prepared for some screwy price action as we head into the halving,” crypto analyst Phoenix Desmond told his 11,700 X followers in a post on April 3. Bitcoin experienced a 64% price increase during the first quarter of 2024, its third-best quarter over the past three years, as per Kaiko Research data. Bitcoin's price was $44,172 on Jan. 1, and by the quarter’s end, it had reached $71,255. However, Desmond argues that the consistent pattern of outperforming price performance in weekly and monthly closings signals unprecedented market conditions. “Never before have we seen such a strong weekly, monthly, and quarterly close above previous ATH only to retrace so far so fast,” Desmond declared. In the last two weekly closes, on March 17 and March 31, Bitcoin surged by 6.09%, climbing from $67,234 to $71,333, according to Yahoo Finance data. Bitcoin’s price over the past 12 months. Source: CoinMarketCap The Bitcoin halving is set for April 20, with speculation arising about whether it could trigger further upward movement in the second quarter of 2024 due to the expected supply shock. However, investor sentiment regarding the short-term direction of Bitcoin’s price seems to be neutral. FOLLOW BITCOIN HALVING COVERAGE IN FULL HERE Over the past 24 hours, liquidations on both short and long positions remained fairly balanced, at $16.27 million and $16.77 million, respectively, as per CoinGlass data. Short and long positions remain fairly balanced for Bitcoin over the past 24 hours. Source: CoinGlass If Bitcoin’s price rises by just 1.5% to $66,687, approximately $57.08 million will be liquidated. If it goes the other way, dropping by just 1% to $65,013, $35.14 million will be liquidated. Related: Bitcoin is hedge against ‘horrible’ gov’t fiscal policy — Cathie Wood Popular pseudonymous crypto analyst Rekt Capital believes that Bitcoin may not follow the same trajectory as it did in the previous quarter, and at best, it could see resistance levels close to the all-time highs of the first quarter. “BTC may consolidate between $60k & $70k for the coming weeks going into the Halving and beyond,” Rekt Capital said in a March 3 post on X. While the launch of spot Bitcoin exchange-traded funds (ETFs) on Jan. 11 by several of the world’s largest asset management firms has heightened interest and speculation around Bitcoin’s price, some foresee a potential narrative shift. “Most likely not Bitcoin,” founder of MN trading consultancy Michael van de Poppe told his 710,600 X followers in a post on April 4: “Pre-Halving Bitcoin interest, Spot ETF launch causing additional liquidity. This is slowing down, back to normal price levels, after which a new narrative is likely going to surge.” Magazine: China will intensify Bitcoin bull run, $1M by 2028: Bitcoin Man, X Hall of Flame

Bitcoin (BTC) recorded one of its strongest quarters in the past three years in Q1, but analysts warn this could lead to significant volatility in the lead-up to the Bitcoin halving. “Be prepared for some screwy price action as we head into the halving,” crypto analyst Phoenix Desmond told his 11,700 X followers in a post on April 3. Bitcoin experienced a 64% price increase during the first quarter of 2024, its third-best quarter over the past three years, as per Kaiko Research data. However, Desmond argues that the consistent pattern of outperforming price performance in weekly and monthly closings signals unprecedented market conditions. Source: CoinMarketCapThe Bitcoin halving is set for April 20, with speculation arising about whether it could trigger further upward movement in the second quarter of 2024 due to the expected supply shock.

SEC’s closed-door policy stifling crypto innovation — Hester Peirce

United States Securities and Exchange Commission Commissioner Hester Peirce has taken another swipe at her agency, criticizing the regulator’s guidance on crypto custody while calling for more interaction with the public. Speaking at the annual SEC Speaks Conference on April 2, Peirce — also known by crypto enthusiasts as “Crypto Mom” — said that a “particularly pernicious weed” had sprung up in the SEC’s “secret garden” of policy guidelines. Her comments were made in response to the controversial Staff Accounting Bulletin 121 (SAB 121). In March 2022, the SEC issued SAB 121, which outlines the regulator’s accounting guidelines for institutions looking to custody crypto assets. Notably, SAB 121 prevents many banks from custodying crypto assets on behalf of clients. Peirce noted that SAB 121 — issued without input from the banking sector — does not protect investors; instead, keeps out experienced banks and broker-dealers from the crypto custody business due to its capital implications. “It is driving broker-dealers to allocate significant capital to their crypto custody businesses or to avoid the business altogether. SAB 121 arguably does not protect investors.” Additionally, if the custodian fails, these assets could be treated as if they belong to the failed entity, not the customers of that entity, she added. On March 1, the House Financial Services Committee voted in favor of a resolution that sought to overturn the bulletin. Republican Congressman Tom Emmer described SAB 121 as an “illegal” example of SEC Chair Gary Gensler’s “unrelenting prejudice towards the digital asset ecosystem.” Hester Peirce speaking at SEC Speaks 2024. Source: SEC Additionally, Peirce said the SEC had become closed off to productive engagement with the public, especially when it came to emerging technologies such as crypto. “The culture at the top of the SEC has changed, which in turn has changed the way the agency interacts with the public,” she said. Related: SEC’s Hester Peirce wants more decentralization in the financial system Peirce added that both investors and companies are hesitant to meet with the SEC out of fear of enforcement actions, especially in areas like crypto, which the regulator has identified as priorities for ramped-up enforcement. “People have told me that they desperately want to have substantive discussions with the staff but worry that the inevitable result of such a meeting would be a call from enforcement.” The commissioner called for the SEC to restore open communication with the public, provide clear guidance, and facilitate — rather than impede — responsible innovation, including in areas such as crypto custody. In an April 3 post to X, Coinbase chief legal officer Paul Grewal shared his support for Peirce’s remarks, throwing his weight behind her suggestion to create an advisory committee to better understand how rules “actually operate.” Magazine: Does SEC Chair Gary Gensler have the final say?

United States Securities and Exchange Commission Commissioner Hester Peirce has taken another swipe at her agency, criticizing the regulator’s guidance on crypto custody while calling for more interaction with the public. Her comments were made in response to the controversial Staff Accounting Bulletin 121 (SAB 121). In March 2022, the SEC issued SAB 121, which outlines the regulator’s accounting guidelines for institutions looking to custody crypto assets. Notably, SAB 121 prevents many banks from custodying crypto assets on behalf of clients. “It is driving broker-dealers to allocate significant capital to their crypto custody businesses or to avoid the business altogether.

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

Australian asset manager Monochrome plans to launch its flagship spot Bitcoin exchange-traded fund (ETF) on the global listing exchange Cboe Australia. Monochrome filed for the spot Bitcoin ETF in July 2023. The Monochrome Bitcoin ETF, if approved, will become Australia’s first spot Bitcoin ETF to permit direct Bitcoin (BTC) holding. Australian regulators have already greenlighted two exchange-traded products (ETPs) that give exposure to spot crypto assets on Cboe Australia, but these ETPs do not directly hold Bitcoin; instead, they invest in investment products with exposure to spot Bitcoin ETF. To list their spot Bitcoin ETF in Australia, asset managers must first get approval from the securities regulator and then apply for an exchange listing. FOLLOW BITCOIN HALVING COVERAGE IN FULL HERE Monochrome has already received approval from the Australian Securities regulator ASIC and expects Cboe Australia to clear its application by June. The asset manager was earlier slated to launch its spot Bitcoin ETF via Cboe rival ASX; however, Jeff Yew, Monochrome Asset Management CEO, told Cointelegraph that the selection of Cboe Australia as the listing venue for the Monochrome Bitcoin ETF aligns more “closely with our strategic vision, market reach and time frame.” Yew added: “We anticipate a decision from Cboe Australia about the Monochrome Bitcoin ETF before the middle of 2024. The Monochrome Bitcoin ETF stands to be the first Bitcoin ETF in Australia authorized to hold Bitcoin directly.” Yew explained that the key difference between existing ETPs and the Monochrome spot Bitcoin ETF is it provides investors with a straightforward, transparent pathway to exposure. It is identical to “how spot Bitcoin ETFs are structured in the United States.” Related: Blockchain Association files support in suit to lift Tornado Cash sanctions Spot Bitcoin ETFs have become a focus of major governments worldwide ever since the U.S. Securities and Exchange Commission approved 11 spot BTC ETFs on Jan. 11. The successful launch of spot BTC ETFs in the U.S. has prompted other countries to consider the possibility of introducing similar products in their own markets. Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

Australian asset manager Monochrome plans to launch its flagship spot Bitcoin exchange-traded fund (ETF) on the global listing exchange Cboe Australia. Monochrome filed for the spot Bitcoin ETF in July 2023. The Monochrome Bitcoin ETF, if approved, will become Australia’s first spot Bitcoin ETF to permit direct Bitcoin (BTC) holding. The asset manager was earlier slated to launch its spot Bitcoin ETF via Cboe rival ASX; however, Jeff Yew, Monochrome Asset Management CEO, told Cointelegraph that the selection of Cboe Australia as the listing venue for the Monochrome Bitcoin ETF aligns more “closely with our strategic vision, market reach and time frame.” Yew added:“We anticipate a decision from Cboe Australia about the Monochrome Bitcoin ETF before the middle of 2024. The Monochrome Bitcoin ETF stands to be the first Bitcoin ETF in Australia authorized to hold Bitcoin directly.”Yew explained that the key difference between existing ETPs and the Monochrome spot Bitcoin ETF is it provides investors with a straightforward, transparent pathway to exposure.

US SEC expected to deny spot Ether ETFs in May

The United States Securities and Exchange Commission (SEC) will most likely deny spot Ether (ETH) exchange-traded funds (ETF) in May, according to a new report. Reuters reported on April 24 that U.S. issuers and other firms expect the SEC to reject spot Ether ETF applications next month following meetings with the regulator in recent weeks, citing four people who participated in the meetings. The four persons, who asked to be anonymous due to the private nature of the discussions, said recent meetings between issuers and the SEC have been one-sided, and agency staff have not discussed substantive details about the proposed products. The sources compared the unsuccessful talks regarding Ether ETFs to detailed discussions between issuers and the agency in January, weeks before it approved spot Bitcoin ETFs. Before the historic approval, the SEC rejected spot BTC ETF filings for over a decade. It only changed its stance after Grayscale Investments won a court victory against the securities regulator in August 2023. Many analysts agree that the SEC is likely to further delay possible approval of Ether ETFs. “It seems more likely that approval will be delayed until later in 2024, or longer,” VettaFi ETF data analyst Todd Rosenbluth reportedly said, adding that the regulatory landscape is still too “cloudy.” Bloomberg ETF analyst Eric Balchunas previously estimated chances of the SEC approving a spot Ether ETF in May at around 35% in March. He also noted that he’d sourced “good intel” to suggest that the SEC may be giving the silent treatment to prospective fund issuers on purpose. Related: SEC lawyers resign after ‘gross abuse’ of power in crypto case — Report Balchunas also mentioned that SEC Chair Gary Gensler’s stance on Ether could also impact the decision process as Gensler has refused to give clarity on whether Ether was a security. While the U.S. is apparently set for another delay, some global jurisdictions have been moving forward with plans to start trading ETF products. On April 24, Hong Kong’s Securities and Futures Commission (SFC) officially approved the first batch of spot Bitcoin and Ether ETFs, including three BTC and three ETH ETFs by China Asset Management, Harvest Global Investments and Bosera. Following approval, Hong Kong’s crypto ETFs are expected to start trading on April 30. Magazine: ChainLinkGod was in High School when he started the account! X Hall of Flame

The United States Securities and Exchange Commission (SEC) will most likely deny spot Ether (ETH) exchange-traded funds (ETF) in May, according to a new report. The sources compared the unsuccessful talks regarding Ether ETFs to detailed discussions between issuers and the agency in January, weeks before it approved spot Bitcoin ETFs. Before the historic approval, the SEC rejected spot BTC ETF filings for over a decade. Many analysts agree that the SEC is likely to further delay possible approval of Ether ETFs. On April 24, Hong Kong’s Securities and Futures Commission (SFC) officially approved the first batch of spot Bitcoin and Ether ETFs, including three BTC and three ETH ETFs by China Asset Management, Harvest Global Investments and Bosera.

OpenSea enables support for ERC-721C programmable earnings standard

Nonfungible tokens (NFT) trading platform OpenSea has added support for the ERC-721C token standard that allows creators to set and enforce royalties. According to the April 2 announcement, creators on OpenSea can now enforce earnings via one click. Invented last May by blockchain gaming company Limit Break, ERC-721C solves the problem of NFT wash trading by standardizing token transfer conditions, such as royalties, across all channels. Before their invention, users could easily bypass creator royalty commissions on secondary markets, such as OpenSea and Blur, by transferring NFTs through self-custody wallets or even other NFT marketplaces that did not honor creators' royalty requirements. "In the long-run, this allowed for the incentivization of zero-fee, royalty-optional trading with airdrops, effectively turning tokens intended to be non-fungible into proxies for fungible tokens," Limit Break explained in a Medium post, adding that "traders were incentivized to farm tokens by wash-trading NFTs among their own wallets, which is bad for the NFT industry." As told by OpenSea developers, compatibility for ERC-721C was only enabled by the March 13 Dencun upgrade on the Ethereum network. "If you enforce your creator earnings according to the steps above, sales will only be supported on OpenSea and other marketplaces powered by LimitBreak’s Payment Processor," the platform stated. After ERC-721C contract deployment on OpenSea, creators can still manually list their digital artwork on other marketplaces, but OpenSea will also match the lowest royalties available on other platforms set by the creator. The feature is also compatible with OpenSea's Seaport 1.6, which programs NFTs to be sold only under certain conditions, such as a changing metadata in reaction to sale volume. Although largely at the discretion of its creator, NFT royalties typically range between 2.5% to 10% per sale. The top 10 NFT collections have earned over $345 million in royalties since their inception. Related: NFTs are like nightclubs, crypto is a volatile religion

Nonfungible tokens (NFT) trading platform OpenSea has added support for the ERC-721C token standard that allows creators to set and enforce royalties. According to the April 2 announcement, creators on OpenSea can now enforce earnings via one click. As told by OpenSea developers, compatibility for ERC-721C was only enabled by the March 13 Dencun upgrade on the Ethereum network. After ERC-721C contract deployment on OpenSea, creators can still manually list their digital artwork on other marketplaces, but OpenSea will also match the lowest royalties available on other platforms set by the creator. Although largely at the discretion of its creator, NFT royalties typically range between 2.5% to 10% per sale.

Genesis purchases $2.1B of Bitcoin following GBTC sell-off

Bankrupt crypto lending firm Genesis reportedly offloaded about 36 million shares of the Grayscale Bitcoin Trust (GBTC) to acquire additional Bitcoin (BTC) as part of its preparations to settle its debts with creditors. According to a recent Bloomberg report, Genesis liquidated approximately 36 million GBTC shares on April 2, valued at approximately $58.50 per share at that time. The share price has climbed by approximately 50% since Genesis initially sought permission from a United States bankruptcy court to sell the 36 million GBTC shares on Feb. 2, when the shares were at $38.50. The total sale amount came to $2.1 billion, which allowed the purchase of 32,041 Bitcoin on April 2 at a price of $65,685. Genesis will use Bitcoin to continue its efforts to repay creditors. At the time of publication, the 32,041 Bitcoin is currently worth $2.18 billion. Recently, cryptocurrency exchange Coinbase assured the community that the sell-off was not expected to have a wider impact on the crypto market. “Our view is that much of these funds will likely remain within the crypto ecosystem, contributing to a neutral overall effect in the market,” Coinbase stated. It explained that the rules of the bankruptcy plan allowed Genesis to either convert shares of the GBTC into the underlying Bitcoin asset on behalf of the creditors or sell the shares outright and distribute the cash. Related: Gemini mulled forming a ‘juggernaut’ with Genesis before it went to smoke This comes after the Digital Currency Group (DCG) argued that its subsidiary company Genesis has proposed paying its customers more than they are entitled to. On Feb. 6, Cointelegraph reported that DCG claims Genesis’s current plan would see “hundreds of millions of dollars more than the full amount of their petition date claims” go to lenders. Genesis filed for Chapter 11 bankruptcy in January 2023. Magazine: Ethereum’s ERC-20 design flaws are a crypto scammer’s best friend

Bankrupt crypto lending firm Genesis reportedly offloaded about 36 million shares of the Grayscale Bitcoin Trust (GBTC) to acquire additional Bitcoin (BTC) as part of its preparations to settle its debts with creditors. According to a recent Bloomberg report, Genesis liquidated approximately 36 million GBTC shares on April 2, valued at approximately $58.50 per share at that time. The share price has climbed by approximately 50% since Genesis initially sought permission from a United States bankruptcy court to sell the 36 million GBTC shares on Feb. 2, when the shares were at $38.50. Genesis will use Bitcoin to continue its efforts to repay creditors. Recently, cryptocurrency exchange Coinbase assured the community that the sell-off was not expected to have a wider impact on the crypto market.