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[INST] Worldcoin tightens privacy checks, allows users to unverify World ID [/INST] Worldcoin, the digital identity and cryptocurrency project built by OpenAI CEO Sam Altman, is adding new features to increase the protection of personal data and improve age verification. On April 9, Worldcoin announced two updates: The ability to unverify World IDs via permanent iris code deletion and in-person age verification checks. World ID holders can now unverify their World ID, which serves as a digital passport that verifies an individual’s humanness using “orbs,” which are devices that scan users’ eyeballs to confirm that they are real humans. OpenAI CEO Sam Altman being scanned for Worldcoin. Source: Vulcan Post Unverifying the World ID includes permanently deleting the user’s iris code, a numeric representation of their unique iris texture. The iris code ensures that individuals can only verify one World ID. Once deletion is requested, the individual‘s World ID will become invalid. To protect against fraud, the procedure will require a six-month “cool-off” period to ensure that individuals cannot immediately re-verify humanness. By the end of the cool-off period, users will have their iris code permanently deleted and made unrecoverable. Worldcoin’s new unverify option was developed in consultation with third-party privacy and security experts, including the Bavarian State Office for Data Protection Supervision (BayLDA). According to the startup, BayLDA is Worldcoin’s lead supervisory authority in the European Union. The second update — Worldcoin in-person age verification checks — are introduced to help ensure that the platform is available only to humans above the age of 18 years old. The update includes an on-site age verification check at all orb locations before World ID verification. Third-party personnel will perform the check before entering the venue, the announcement notes. “Worldcoin has always required that individuals be a minimum of 18 years old to obtain a World ID,” a spokesperson for Worldcoin told Cointelegraph, adding: “Individuals have always been asked to confirm they meet this requirement in the app, similar to other apps in wide use today.” Altman, the creator of OpenAI — the firm behind the natural language processing chatbot ChatGPT — launched Worldcoin in July 2023 with the goal of providing a “global financial and identity network based on proof of personhood.” Worldcoin received mixed reactions from the community as many questioned its centralization, privacy and security. Related: TON’s $5M incentive program aims to drive digital ID verification Some governments have also been skeptical about Worldcoin’s security and privacy. Worldcoin’s European Union supervisor, BayLDA, reportedly began an investigation into Worldcoin due to privacy concerns months before its official launch. In late 2023, Worldcoin paused the offline orb verification function for users in India and aims to reinstate the service later in 2024. In August 2023, Worldcoin was banned in Kenya, with the government halting all local activity associated with the platform, including biometric identification. Worldcoin has been working with the Kenyan government to resume operations. In March 2024, Worldcoin declared that it operated lawfully in all of the locations in which it is available and fully complies with related laws. Magazine: 1 in 6 new Base meme coins are scams, 91% have vulnerabilities

[INST] Hedera’s HBAR token pumps 96% on misinterpreted BlackRock announcement [/INST] Shares of a BlackRock money market fund have been tokenized on the Hedera blockchain sending the Hedera (HBAR) token on a 96% rally in the last 24 hours — but the world’s largest asset manager confirmed it has no relationship with Hedera despite many believing it was actively involved. The widely misinterpreted April 23 HBAR Foundation X post — an organization working with the Hedera community — shared that blockchain trading and infrastructure firms Archax and Ownera tokenized BlackRock’s ICS US Treasury Fund on its network. The video shared with the announcement seemed to suggest Ownera, Archax, and BlackRock were partnered on the venture and HBAR claimed it was “bringing the world’s largest asset manager on-chain.” A BlackRock spokesperson confirmed to Cointelegraph it “has no commercial relationship with Hedera nor has BlackRock selected Hedera to tokenize any BlackRock funds.” "As we have in the past, BlackRock will communicate directly with the public on the evolution of our digital asset strategy,” the spokesperson added. Some crypto influencers with large X followings shared a misinterpretation of the post — which had amassed over 1.6 million views and 2,700 reposts over the last 15 hours — believing it to mean BlackRock was responsible for the $22.3 billion fund’s move onto the blockchain or had partnered with Archax and Ownera. Cardano Ghost Fund DAO founder Chris O’Connor posted that BlackRock had “no involvement” with Hedera’s development and slammed the HBAR Foundation for the way it framed the announcement. “What did happen was a HBAR project through the secondary market tokenized shares of a BlackRock fund. Much like I can buy a Rolex take a pic and post it on my X account. Doesn’t mean Rolex ‘partnered’ with me.” Archax co-founder and CEO Graham Rodford replied to O’Connor, saying “it was indeed an Archax choice to put [BlackRocks fund] on Hedera” and added that “everyone involved was aware.” Related: Envision partners with HBAR and UN on new digitization platform for carbon markets HBAR’s 96% rally in the past day has pushed its price to $0.175 — a two-year high, according to CoinGecko. HBAR’s price over the last three months. Source: CoinGecko Despite the price pump, HBAR is still down over 69% from its September 2021 all-time high of $0.57. The announcement came as the Hedera Global Governing Council — which oversees the Hedera network — recently approved allocating 4.86 billion HBAR ($408 million at the time) for further network development. The funds are part of the HBAR Foundation’s plans to strengthen its user base in 2024, following 2023’s performance, which saw 33 billion transactions processed on the network, the foundation claims. Magazine: Is measuring blockchain transactions per second (TPS) stupid in 2024? Big Questions Update (April 24, 7:30 am UTC): This article has been updated to add an X post from Graham Rodford. Update (April 25, 12:55 am UTC): This article has been updated to add comment from BlackRock.

[INST] Wealth management firms to boost Bitcoin ETF holdings — Bitwise CEO [/INST] Bitwise CEO Hunter Horsley has predicted that wealth management firms will increase their holdings of Bitcoin (BTC) exchange-traded funds (ETFs). The prediction comes at a time when Bitcoin ETFs are expected to gain even more traction after the halving. Horsley’s prediction aligns with the broader market belief that there is increasing demand for ETFs, given that Bitcoin investments in the United States ETF market recorded a net positive inflow right before the Bitcoin halving day following five consecutive days of drain. BlackRock’s iShares Bitcoin Trust (IBIT) is closing the gap with Grayscale’s, standing just $2 billion shy. This positions BlackRock to potentially surpass Grayscale as the world’s largest Bitcoin fund. Grayscale’s Bitcoin Trust (GBTC) experienced a 68-day period of value decline, shedding nearly $16 billion and reducing its assets to $19.4 billion. In contrast, IBIT saw continuous asset growth, reaching approximately $17.3 billion in total assets. However, notable capital outflows have been observed from Grayscale’s spot Bitcoin ETF. Over the last five days alone, investors withdrew $89.9 million, contributing to a net outflow of $1.6 billion since January. Despite its early lead, Grayscale’s supremacy in the Bitcoin ETF market seems to be diminishing. Fidelity and BlackRock quickly gained substantial market shares from the onset of trading. For instance, Fidelity and BlackRock Bitcoin ETFs experienced net inflows of $37.3 million and $18.7 million, respectively, in the same week, providing relief to some of the market’s liquidity issues. Related: Bitcoin mining stocks saw spikes across the board ahead of halving event Bitwise’s CEO describes the adoption of Bitcoin ETFs by registered investment advisers (RIAs) and multifamily offices as “stealthy but significant.” He notes that major financial entities are discreetly conducting thorough assessments of the Bitcoin market. According to Farside data, GBTC saw outflows of $17.5 million on April 10, a significant decrease from the $154.9 million outflows recorded on April 9. The previous low was on Feb. 26 when GBTC outflowed $22.4 million. The daily GBTC outflow average since January is $257.8 million. GBTC launched in 2015 and converted to an ETF in January, alongside the launch of nine other spot Bitcoin ETFs after Grayscale won a lawsuit against the U.S. Securities and Exchange Commission, forcing it to review a GBTC conversion bid it previously denied. Bankrupt crypto lending firm Genesis recently offloaded approximately 36 million GBTC shares to acquire 32,041 BTC. Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto

[INST] Prisma Finance exploited in $10 million breach [/INST] 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

[INST] El Salvador: Hackers leak code of state Bitcoin wallet [/INST] The saga of El Salvador’s state-operated Bitcoin (BTC) wallet, Chivo, continues to unfold as hackers expose more sensitive information related to the wallet. The hacker group known as CiberInteligenciaSV released part of the source code on the black hat hacking crime forum BreachForums on April 23. “This time I bring you the code that is inside the Bitcoin Chivo Wallet ATMs in El Salvador, remember that it is a government wallet, and as you know, we do not sell, we publish everything for free for you,” the hacker group wrote. Source: BreachForums The move follows a series of Chivo hack-related events, including the public exposure of personal data of 5.1 million Salvadorans — or almost the entire adult population of the country — which was reported in early April. Local cybersecurity project VenariX took to X on April 22 to warn the public about the upcoming leak. It referred to CiberInteligenciaSV’s Telegram channel, which posted about plans to release the source code. “Tonight we will publish part of the source code and VPN access that belongs to Chivo Wallet, for free as always, unless one of you nosy government people wants to talk,” CiberInteligenciaSV’s Telegram post reads. CiberInteligenciaSV also published the file Codigo.rar, which includes a compilation of code and VPN credentials from the Chivo Wallet ATM network. In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender, with the government promoting Chivo as the official BTC wallet for citizens. The platform allows users to buy and sell Bitcoin, as well as store and withdraw BTC from ATMs. Related: El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin The Chivo wallet had a bumpy start, with users subsequently reporting multiple bugs and technical glitches. Despite reports of a personal data hack on Chivo surfacing in early April, the Salvadoran government has not addressed the issue. According to industry reports, El Salvador authorities have not released any official statement related to the hack, causing more confusion about the situation. Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

[INST] DAO acquires rights to the image behind the Doge meme [/INST] Own The Doge, the decentralized autonomous organization (DAO) associated with the Shiba Inu meme behind the Dogecoin (DOGE) token, announced that it had secured legal rights to the iconic image. Speaking to Cointelegraph on April 17, Own The Doge project leaders John Monarch and ‘Tridog’ said they had negotiated a deal with Sato Atsuko, the owner of the 18-year-old Shiba Inu Kabosu that became popular for her confused expression while sitting on a couch. The group purchased exclusive licensing and rights for the Doge image, seemingly giving them control over merchandise and other uses for the meme in the crypto space. “I think [the deal] unlocks a lot for corporations, where there’s confusion around copyright,” said Tridog. Own The Doge said that with more clarity around the doge image copyright — which had seemingly been a free-for-all for years — there were opportunities for partnerships with big brands. The project said they reached out to Sato roughly three years ago and were able to negotiate a deal to purchase the rights to Kabosu’s image by working with legal experts in Japan and the United States. Working with Sato and others, the project has already released a documentary on the history of doge and the evolution of the image in and out of the crypto space. According to Tridog, the group was not “looking to enforce” its copyright claim on users and certain brands already using the image to spread its ‘doing only good everyday’ mantra. “We want to unify the whole doge community,” said Monarch. “We feel like Dogecoin and a lot of the others, like NFT [nonfungible token] side of things, and people who are into memes and the Reddit world, have always kind of diverged [...] it’s all about bringing the tracks together under one cultural umbrella.” Related: Coinbase to launch DOGE futures, says it ‘transcended’ meme origins The basis for the Doge image dates back to 2010 when Sato took a casual picture of Kabosu sitting on a yellow sofa in her home in Japan. Monarch suggested he had been the first person to use the term ‘Doge’ on social media, eventually leading to additional memes, the Dogecoin token, and various crypto-themed merchandise. Tridog said the purchase of the licensing rights likely wouldn’t impact the Dogecoin Foundation or the meme token, which continues to use the image. Kabosu will celebrate her 19th birthday on Nov. 2 at a celebration in Japan. Though old for a dog, she has some catching up to do: the world’s oldest Shiba Inu lived to be more than 26 years old. Magazine: Real-life Doge at 18: Meme that’s going to the moon

[INST] Starknet explains reasons for 4-hour block outage [/INST] Ethereum layer-2 protocol Starknet suffered a block reorganization that led to a backlog of transactions. The protocol’s block monitoring tool, Starkscan, showed an outage of four hours in block production. Starkscan shows a gap between the creation of blocks 630028 and 630029 on April 4, while Starknet’s status page did not reflect any outages on the network on the same day. Starkscan’s block monitor reflects a four-hour gap between locks 630028 and 630029. Source: Starkscan Starknet subsequently released a statement on X, explaining that a rounding error bug led to a reorganization of blocks. The company said block production continued as usual, but the reorganization caused a transaction backlog that prevented it from reaching full capacity. “Consequently, there were a few minutes during which new transactions could not be accepted for processing and were therefore rejected. Moreover, some transactions were reverted due to changing parameters (e.g., timestamps),” the post explains. Cointelegraph contacted Starknet to confirm the details of the incident but has not received additional information and if block production was halted as per block data. Starknet’s status page last reflects a major outage on March 13 when its network experienced slow block creation due to Ethereum’s Dencun upgrade. Starknet’s status page shows the last major incident on March 13 during Ethereum’s Dencun upgrade. Source: Starknet Status Starknet’s outage is the latest in a series of hiccups for some of the ecosystem’s largest blockchain networks. Solana suffered a significant outage in early February 2024. Downtime in block production on its mainnet halted the network’s block progression for over five hours. It was not the first time Solana had gone down. Since January 2022, Solana has seen around half a dozen significant outages and 15 partial or major 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. Related: Starknet anticipates significant impact from Ethereum’s Dencun hard fork Austin Federa, head of strategy at the Solana Foundation, told Cointelegraph that a process was underway to replace the old loader system with a new motor system, but it was scheduled to be disabled with an updated version. “It looks like someone intentionally called that old instruction set, which hadn’t been used in quite a long time but was still around in the codebase. The JIT compiler ran into issues where it couldn’t find what it was looking for. And that’s what created the infinite loop,” Federa told Cointelegraph. Solana encountered problems again in early April, with close to 75% of all transactions on the network failing amid a deluge of activity brought by the recent memecoin mania. Analysts suggest that these failed transactions are mainly due to bot activities on Solana, which look to carry out arbitrage trades. Magazine: Ethereum’s ERC-20 design flaws are a crypto scammer’s best friend

[INST] El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin [/INST] Investors will soon be able to own a slice of a new 4,500-square-foot Hampton by Hilton hotel in El Salvador by buying tokenized shares issued on the Bitcoin layer 2 Liquid Network. The country’s first-ever tokenized asset raise will be facilitated by Bitfinex Securities, the first licensed and registered digital asset provider in El Salvador, while the debt issued from Inversiones Laguardia S.A. de C.V. The hotel will be constructed at El Salvador’s international airport, with Inversiones Laguardia looking to raise $6.25 million from crowdfunders in exchange for a 10% coupon over a five-year term. “[This] represents an important step forward in developing its nascent capital market as well as introducing a major new asset class into the market,” said Paolo Ardoino, chief technology officer of Bitfinex Securities, in an April 11 statement. “For the first time, investors who do not usually have the opportunity to invest in such assets have the opportunity to do so, while issuers in markets which have less access to capital, are able to tap into a new asset class to raise finance.” Investors will need to make a minimum $1,000 investment to purchase the token under the ticker HILSV on the Liquid Network. Liquid was built by Blockstream in 2018, a Bitcoin-focused infrastructure firm led by long-time cypherpunk Adam Back. Related: El Salvador’s Bitcoin treasury is now $85M in profit amid BTC rally The hotel project will have five levels, 80 rooms, five commercial spaces and other hotel amenities, including a swimming pool, restaurants, a gym, gardens and multipurpose rooms, Bitfinex noted. HILSV tokenholders will also be offered some free night accommodations at the hotel based on the size of their investment. El Salvador, widely known for its Bitcoin investment and adoption strategy, decided to expand into the real-world asset tokenization space in April 2023 when it granted Bitfinex a digital asset service provider license. Prior to Bitcoin (BTC), many locals in El Salvador were stuck between no investments and buying an entire house, said Jamie Robinson, chief strategy officer of The Bitcoin Hardware Store, in a recent interview with Cointelegraph. But Bitfinex’s expansion marks a “new era of capital markets” on Bitcoin in El Salvador, noted Bitcoin commentator Stacy Herbet, which will offer the local population a new way to access financial markets. “This capital raise not only marks our first venture in El Salvador but also stands as a testament to the transformative power of Bitcoin-based capital markets,” said Jesse Knutson, head of operations at Bitfinex Securities. Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

[INST] Binance and its detained US exec face more charges in Nigeria [/INST] Troubled global cryptocurrency exchange Binance is facing more issues in Nigeria as its United States-based executive Tigran Gambaryan remains detained in the country. Nigeria has introduced more charges against Binance despite the exchange trying to find dialogue with local regulators, The Wall Street Journal reported on April 3. Binance has been actively working with authorities in Nigeria since local regulators blamed the crypto exchange for helping crash its fiat currency, the naira, in February 2024. Bayo Onanuga, the presidential adviser on information and strategy, suggested banning platforms like Binance in the country. In response to the threat of the ban, two senior Binance executives, including Gambaryan and Nadeem Anjarwalla, came to Nigeria to attempt to find a dialogue with local authorities. However, both were detained even after Binance urgently delisted all naira transactions and stopped peer-to-peer naira transactions in February. Binance's Tigran Gambaryan at a 2023 conference. Source: WSJ The WSJ’s report on new charges comes amid Binance releasing a new statement urging Nigerian authorities to let Gambaryan go. The exchange argued that the executive has “decision-making power” at the company and should not be held responsible while discussions are ongoing between Binance and Nigerian government officials. While Gambaryan remains arrested in Nigeria, Anjarwalla, another co-accused Binance exec, reportedly escaped the country using a fake passport in March. According to local reports, Anjarwalla fled detention on March 22 after he was taken to a nearby mosque for prayers. Related: Binance exec seeks redress over Nigeria detention, demands apology Nigeria’s law enforcement authority, the Economic Financial Crime Commission (EFCC), is preparing to charge Gambaryan and Anjarwalla with five counts of money laundering of over $35.4 million on April 4, the local online newspaper Nairametrics reported on April 2. According to the report, Gambaryan and Anjarwalla are listed as first to third defendants, respectively, with the EFCC planning to arraign Anjarwalla in absentia. Although the crypto exchange firm, Gambaryan and Anjarwalla are listed as first to third defendants respectively. Justice Emeka Nwite of the Federal High Court in Abuja will reportedly preside over the arraignment of Gambaryan, Anjarwalla and Binance. Cointelegraph reached out to Binance for a comment regarding the new charges but did not receive a response at the time of publication. Magazine: SBF gets 25 years in prison, Fidelity eyes ETH staking, and Coinbase’s court loss: Hodler’s Digest, March 24-30

[INST] Hong Kong Bitcoin, Ether ETF structures revealed ahead of April 30 launch [/INST] Hong Kong spot Bitcoin and Ether exchange-traded funds (ETFs) will be remarkably different from their United States counterparts, with the city’s regulator having greenlit them for an April 30 launch. According to a report by one of the issuers, ChinaAMC, its spot Bitcoin (BTC) and Ether (ETH) ETFs will track the performance of the Chicago Mercantile Exchange’s crypto indexes. Redemptions will be available in both fiat money and crypto funds. In addition, ChinaAMC’s crypto ETFs will be denominated in three currencies: the U.S. dollar, Hong Kong dollar and Chinese yuan. Investment asset manager BOCI-Prudential and crypto exchange OSL will act as the custodians for the ETFs. The aforementioned two firms will also custody spot Bitcoin and Ether ETF assets for issuer Harvest Global. BOCI and OSL "effectively solves problems such as excessive margin requirements, price premiums caused by missing short positions, and roll losses, thereby more accurately reflecting the real-time value of Bitcoin and Ethereum,” said Harvest Global staff in a statement. Meanwhile, Hong Kong-based HashKey Capital will jointly launch its spot Bitcoin and Ether ETFs with Bosera Asset Management. Regarding the future of the crypto ETFs, its staff wrote: “The approval of the virtual asset spot ETF and the innovative introduction of a currency-holding subscription mechanism (which allows investors to directly use Bitcoin and Ethereum to subscribe for corresponding ETF shares) are expected to further promote the development of the virtual asset market in Hong Kong and even Asia., attracting more global capital inflows.” On April 24, Bloomberg senior ETF analyst Eric Balchunas mentioned that Hong Kong Bitcoin ETF management fees will range from 0.3% to 0.99%. This is much higher than U.S. spot Bitcoin ETFs, where some issuers charge less than 0.25% per annum. “A potential fee war could break out in Hong Kong over these Bitcoin & Ethereum ETFs,” commented Bloomberg analyst James Seyffart. The structure of Hong Kong spot crypto ETFs (Source: Bloomberg) All three ETF issuers will create and redeem ETF shares on Hong Kong's regulated crypto exchanges, OSL and HashKey. Each day, investors will have until 11:00 am local time to redeem their shares for cash or until 4:00 pm for crypto withdrawals. BOCI Prudential will serve as the custodian for all issuers, while market makers include Vivienne Court, Virtu Financial and others. Related: Hong Kong approves first Bitcoin and Ether ETFs

[INST] SEC’s closed-door policy stifling crypto innovation — Hester Peirce [/INST] 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?

[INST] Filecoin Foundation launches Chinese legal inquiry into STFIL incident [/INST] Filecoin Foundation, a nonprofit that promotes the development of Web3 storage protocol Filecoin, “has a lawyer in China” and is investigating the reported detention of Filecoin Liquid Staking (STFIL) team members, according to an April 13 social media post from foundation senior fellow Danny O’Brien. Withdrawals from the STFIL protocol stopped working in early April after a developer wallet made several unscheduled upgrades and moved $23 million worth of Filecoin (FIL) tokens to an address whose owner is unknown. On April 8, the STFIL team announced that core technical members was detained by local Chinese police and that the mysterious upgrades and transfers had occurred during these detentions. This announcement left many users of STFIL wondering how they could recover funds. In the post, O’Brien stated that “FF has a lawyer in China who has been looking into the incident,” adding that the foundation has “high confidence” that members of the STFIL team are in police custody. The foundation has not been able to confirm whether the police possess the funds, but they expect to know this information in “upwards of a week.” The foundation plans to allow its attorney to represent all staking providers and leasers in any court proceedings related to the incident. O’Brien promised to share more information once the plan's details are finalized. He also asked staking providers who lost funds to provide contact details through a Google Doc or Slack Channel set up for this purpose. Source: Filecoin Foundation senior fellow Danny O’Brien. Filecoin is a decentralized storage protocol that allows PC owners to rent out their hard disk space to users with data storage needs. It requires storage providers to provide FIL tokens as collateral to guarantee that they store data per their agreements. FIL holders can lend out their tokens to the storage providers, in which case they earn a portion of the fees collected. This process is called “FIL staking.” STFIL is a protocol that pools FIL tokens and stakes them through a network of trusted storage providers. When users deposit FIL into the STFIL protocol, they receive STFIL tokens in exchange. When the protocol is functioning correctly, these STFIL tokens can be redeemed for their underlying deposited FIL plus accumulated staking rewards. However, this redemption process stopped functioning in April, after the unauthorized upgrades and transfers were made. Related: What is Filecoin and How Does it Work? STFIL is not the only Web3 protocol to encounter criminal legal action in China. Users of the Multichain cross-chain bridging platform saw more than $1.5 billion of their crypto frozen after Chinese police arrested the protocol’s development team. The funds have still not been recovered. Fantom Protocol, one of the biggest depositors to Multichain, filed for bankruptcy in March in an attempt to pursue at least some of the lost Multichain funds through litigation. According to Fantom co-founder Andre Cronje, it may take “years” for investors to obtain a court order that can force police to hand over the funds.

[INST] Argentine government passes registration requirements for crypto firms [/INST] Argentina’s government has begun implementing requirements for cryptocurrency exchanges to operate legally in the country. In a March 25 announcement, Argentina’s Comisión Nacional de Valores (CNV) — the country’s equivalent of a securities regulator — said virtual asset service providers would be operating in accordance with recommendations from the Financial Action Task Force (FATF). Certain companies offering crypto-related services must register with the Argentina government as part of reforms to the country’s Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) laws. The implementation of the law affecting crypto providers in Argentina moved forward on March 14, when the country’s senate approved modifying laws aimed at preventing money laundering and the financing of terrorism. CNV President Roberto Silva said virtual asset service providers that are not registered “will not be able to operate in the country.” The proposed modification to Argentina’s laws affecting crypto users reportedly came before Javier Milei won the country’s presidential election in November 2023. Many crypto proponents lauded the ascension of Milei at the time for his seemingly pro-Bitcoin (BTC) views, but the implementation of the FATF requirements seems to have many concerned for for the future of digital assets in Argentina. Related: Bitcoin demand in Argentina reaches highest point in nearly 2 years Many users on Strike, popular in Argentina for facilitating Bitcoin payments via the Lightning network, reported the app no longer allows locals to send fiat to bank accounts. It’s unclear how the requirements may affect businesses operating in Argentina or customers seeking to use their services. In December 2023, Argentina’s minister of foreign affairs said contracts could be settled in Bitcoin and other cryptocurrencies. Milei spoke publicly on April 2 as part of a Malvinas Day ceremony recognizing the loss of life during the Falklands War in 1982. Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO

[INST] Software engineer sentenced to three years in prison for Nirvana hack [/INST] Computer security engineer Shakeeb Ahmed was sentenced to three years in prison followed by three years of supervised release in Southern New York District (SDNY) Court. Ahmed was found guilty of flash loan attacks on the decentralized Crypto Exchange and Nirvana exchanges in 2022. U.S. Attorney Damian Williams said in a statement that Ahmed’s conviction was the first for hacking a smart contract. Ahmed was also ordered to forfeit $12.3 million as well as “a significant quantity of cryptocurrency” and to pay the exchanges $5 million in restitution. Ahmed had offered to return all the funds stolen from Crypto Exchange except for $1.5 million if the exchange did not contact law enforcement. Nirvana offered him $600,000 for the return of funds, but Ahmed demanded $1.4 million, out of the $3.6 million he hacked, and no agreement was reached. Related: Stolen crypto worth $674M successfully recovered in 2023 Nirvana’s NIRV stablecoin depegged from the U.S. dollar, and its native ANA coin fell by 85% on the news of the hack and closed shortly afterward. According to the SDNY statement, Ahmed laundered the hacked funds: “Using token-swap transactions; ‘bridging’ fraud proceeds from the Solana blockchain over to the Ethereum blockchain; exchanging fraud proceeds into Monero […]; using overseas cryptocurrency exchanges; and using cryptocurrency mixers, such as Samourai Whirlpool.” It has also been observed that a third exchange, Crema, was subject to an attack in July 2022 using the same methods, but the federal charges did not link him to that hack. Ahmed was employed as “a senior security engineer for an international technology company” at the time he carried out the attacks, according to the statement. According to Bloomberg, Ahmed was the technical lead of Amazon’s bug bounty program. According to Inner City Press, Ahmed, who was released on bail, now works for a mental health care startup. That publication quoted him as saying, “I witnessed hacks, I found a way to exploit an exchange's smart contracts. I went into therapy” at his trial. Ahmed was arrested in New York and charged in July with wire fraud and money laundering in connection with the hacks. He went on to plead guilty to a single charge of computer fraud in December. Magazine: Pink Drainer creator defends his wallet draining crypto scam kit

[INST] ParaSwap DAO votes to compensate hack victims [/INST] The community behind the decentralized finance (DeFi) aggregator ParaSwap has agreed to compensate hack victims using funds from its treasury. On April 4, the ParaSwap decentralized autonomous organization (DAO) pitched the idea of refunding the victims of the AugustusV6 contract vulnerability. After a three-day voting period, 96.81% of ParaSwap voters agreed with the DAO’s proposed method of compensating users. The Paraswap community voted to refund victims using DAO treasury funds. Source: vote.paraswap.network The ParaSwap AugustusV6 contract, which momentarily went live on March 18, aimed to improve swapping efficiency and reduce gas fees. However, the contract contained a critical vulnerability, allowing hackers to drain funds from users who approved the upgrade. While a swift rollback prevented a potential $3.4 million loss, roughly $864,000 of assets were lost in the process. ParaSwap collaborated closely with blockchain analytics and security firms Chainalysis and TRM Labs to identify the hacker addresses and trace the movement of the funds. The foundation said: “The (ParaSwap) Foundation will cover the remaining costs linked to the vulnerability, including the refunds, the engagement of security analysts, conducting thorough contract re-audits, communication with authorities, and the formulation and execution of the refund process.” On April 4, ParaSwap announced the recovery of roughly $500,000 worth of assets. “Thanks to this rescue, the amount of funds still unaccounted for — which comprise users drained after depositing to a still compromised account — has been reduced by 63%,” it said. According to ParaSwap, providing full refunds to affected users is a step toward the project’s long-term sustainability. Related: Crypto hacking losses decline in Q1 2024 — Immunefi According to data compiled by blockchain security firm PeckShield, nearly $100 million in digital assets stolen in March hacks were recovered. Total hack losses in 2024 by month. Source: PeckShield While the losses ran into the millions, 52.8% of the hacked funds were returned. Most recovered funds were from the security incident involving the nonfungible token (NFT) game based on the Blast network called Munchables. Magazine: AI didn’t kill the metaverse, it will build it — Alien Worlds, Bittensor vs Eric Wall: AI Eye

[INST] Grayscale’s Mini Bitcoin ETF ‘cheap’ fees are ‘hypothetical’ — analysts [/INST] Grayscale Investments has declared its upcoming “mini” version of the Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF) will be almost a tenth cheaper than the current GBTC fees, making it the most cost-effective option among the approved spot Bitcoin ETFs. However, investors shouldn’t get their hopes up yet, according to Bloomberg analyst Eric Balchunas. “This is pro-forma financials and as such hypothetical,” Balchunas explained in an April 20 post on X, arguing that while changes are possible before launch, the fees were intended to catch investors’ attention. “The good news is they had to pick a number for this and knew ppl would be watching, and they decided on 15bps,” he wrote. Grayscale has proposed fees for its new Grayscale Bitcoin Mini Trust (BTC) to be set at one-tenth of the current 1.5% fee for GBTC, according to a recent filing with the United States Securities and Exchange Commission (SEC). With a suggested fee of 0.15%, it is positioning its ETF to have the lowest fees among the 11 approved spot Bitcoin ETFs introduced in January, closely followed by trillion-dollar asset manager Franklin Templeton at 0.19%. Following behind are the Bitwise Bitcoin ETF (BITB) and VanEck Bitcoin Trust (HODL), both at 0.20%. CEO of crypto-focused reviews portal Apollo, Thomas Fahrer, told his 42,900 X followers in an April 21 post that Grayscale “offering cheap” alternative fees was necessary to compensate for the large GBTC outflows. “Grayscale has lost 315K BTC in outflows since launching, and they needed to plug the leak,” he said. Related: Bitcoin halving hype breaks week-long ETFs outflow streak This comes amid many investors withdrawing funds from the GBTC product since the launch of spot Bitcoin ETFs in January, which offer a more competitive fee for Bitcoin exposure. Since spot Bitcoin ETFs were introduced on Jan. 11, GBTC has seen approximately $16.73 billion of outflows, as per Farside data. Cointelegraph recently reported that the shares of the new Bitcoin trust are planned to be distributed to existing GBTC shareholders, as GBTC will also contribute an undisclosed amount of Bitcoin to the new trust. Magazine: a16z snubs crypto, Mango Markets exploiter found guilty and Worldcoin launches blockchain network: Hodler’s Digest, April 14-20

[INST] Lummis-Gillibrand bill will ban algorithmic stablecoins: Law Decoded [/INST] United States Senators Kirsten Gillibrand and Cynthia Lummis have introduced legislation establishing a regulatory framework for payment stablecoins. The legislation aims to prohibit “unbacked, algorithmic stablecoins”— likely a nod to TerraUSD (UST) depegging from the U.S. dollar in 2022 — and requires issuers to maintain one-to-one reserves. It will also “create federal and state regulatory regimes for stablecoin issuers that preserves the dual banking system.” According to the text of the 179-page bill, state non-depository trust companies would be allowed to issue up to $10 billion in payment stablecoins, with authorized institutions able to issue stablecoins “up to any amount” under a limited-purpose state charter. The legislation also aimed to uphold the current system of state and federal charters and established rules on custody for non-depository trust companies. Advocacy group Coin Center has expressed concerns about the bill, claiming it would be “bad policy” and unconstitutional for its proposed prohibition on algorithmic stablecoins. The group argued that banning algorithmic stablecoins targets code, which could be an unconstitutional act under the protections of the First Amendment. Coin Center suggested that the Clarity for Payment Stablecoins Act — a bill set for a full floor vote in the U.S. House of Representatives — had a “not unreasonable” approach to algorithmic stablecoins by proposing a two-year moratorium rather than an outright ban. Canada transits to international crypto tax reporting standard 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, 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. CASPs would be required to report transactions between crypto assets and fiat and crypto assets for other crypto assets to the Canada Revenue Agency. Crypto asset transfers carried out by CASPs, including payment processing where the value exceeds $50,000, would also need to be reported. Continue reading Arkansas wants to restrict crypto mining An Arkansas Senate committee has passed two bills that could restrict cryptocurrency mining within the state. The bills lay the groundwork for further discussions. In a Senate hearing on April 17, lawmakers sought to address general concerns such as noise reduction, foreign ownership and the proximity of crypto mines to residential areas. The committee will continue to discuss the issue and hear more public comments. The discussion of whether and how much crypto mines should be regulated at the state level arose from the Arkansas Data Centers Act, which limited local government’s ability to regulate crypto mines. Continue reading Binance returns to India, gets Dubai license Binance crypto exchange is set to return to India after a four-month ban after paying a $2 million fine for noncompliance. It will be the second overseas exchange after KuCoin to mark a return to the country after India’s financial regulatory body blocked access to crypto exchanges for noncompliance. Binance reportedly accounted for more than 90% of Indian crypto trading volume before its ban in January. The company has also received its Dubai Virtual Asset Service Provider (VASP) license after co-founder Changpeng Zhao gave up his voting power in the exchange’s local entity. The Virtual Assets Regulatory Authority’s final requirement for granting the VASP license was for Zhao to give up his voting power in Binance FZE, the Dubai-based unit of the exchange, according to unnamed people familiar with the matter. While Binance’s current CEO, Richard Teng, confirmed receiving the license, he said that Zhao giving up his voting power was “pure speculation.” Continue reading

[INST] Fidelity’s Bitcoin ETF draws $40M in largest single investment from advisers [/INST] Fidelity’s Bitcoin exchange-traded fund (ETF) has achieved a new record as the largest single investment in a Bitcoin fund, attracting $40 million from two traditional United States financial advisers. According to Bloomberg analyst Eric Balchunas, financial advisers Legacy Wealth Management and United Capital Management of Kansas have each recently invested $20 million in shares of the Fidelity Wise Origin Bitcoin Fund (FBTC), joining the fund’s top shareholders. Legacy Wealth Management oversees more than $359 million in assets under management, while United Capital Management of Kansas manages over $436 million. The figures are part of recent 13F form filings submitted by asset managers to the U.S. Securities and Exchange Commission (SEC) for the first quarter of 2024. Source: Eric Balchunas According to data from investment research firm Fintel, Bitcoin (BTC) represents 6% and 5% of the funds’ portfolios, respectively. Bloomberg’s Balchunas believes the figures indicate a growing adoption among traditional investors. “This is as Boomer as it gets,” he noted on X in reference to United Capital Management of Kansas. “Likely a wonderful sight for those hoping to see long-term adoption and an absolute nightmare for the RIA Skeptics Branch of the Underwhelmers Club,” he added. However, the recent disclosures have prompted some to express concerns regarding the limited mainstream participation in BTC ETFs. Jim Bianco, founder of macro research firm Bianco Research, described the first-quarter allocation data as a “disappointment.” “Unrealized gains are shrinking fast,” he added, referring to ETF investor gains versus current Bitcoin prices. Fidelity’s BTC fund is the second-largest Bitcoin ETF in terms of assets under management, with over $10 billion at the time of writing, just behind BlackRock's iShares Bitcoin Trust (IBIT), which holds more than $18 billion. Despite newcomers and growing adoption among traditional investors, Bitcoin ETFs are experiencing a slowdown in demand. CryptoQuant CEO Ki Young Ju noted on X that the demand for BTC funds has stagnated since its peak in March. On April 15, Bitcoin ETFs experienced net outflows of $36.7 million. According to Farside Investors, only Grayscale and BlackRock recorded positive flows on April 12 and April 15, while all other funds saw outflows. Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto

[INST] Dencun is a big step towards mass adoption: Metis CEO [/INST] 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

[INST] FTX saga ends as Sam Bankman-Fried gets 25 years in prison: Law Decoded [/INST] Judge Lewis Kaplan of the United States District Court for the Southern District of New York sentenced Sam “SBF” Bankman-Fried to a total of 25 years in prison following his conviction on seven felony charges. SBF is the first person tied to FTX and Alameda Research to face prison time following the collapse of the exchange in November 2022. “Kaplan weighed all of the sentencing factors, including the magnitude of the crime, his conclusion that SBF lied on the witness stand and tampered with a witness, and handed down a serious sentence,” Mark Bini, a former assistant U.S. Attorney for the Eastern District of New York, told Cointelegraph. “While less than the prosecutors’ request for 40–50 years, it is a very significant sentence and sends a message that people convicted of crimes in the crypto space will face serious consequences.” Gary Wang, Caroline Ellison, Nishad Singh and Ryan Salame — four other individuals associated with FTX and Alameda charged in the same case as SBF — pleaded guilty and accepted deals. Salame, the former co-CEO of FTX Digital Markets, was the only one who did not testify at Bankman-Fried’s criminal trial. He will likely be the next to face sentencing on May 1. Immediately following the New York courtroom announcement, crypto users jumped onto social media to express their thoughts. Many suggested that 25 years wasn’t enough prison time, given longer sentences for seemingly less severe crimes. Philippines will block Binance The financial regulator of the Philippines will block local user access to Binance, the world’s largest cryptocurrency exchange, citing concerns over the firm’s unlicensed operations in the country. The country’s Securities and Exchange Commission (SEC) said it received the assistance of the National Telecommunication Commission to block access to Binance’s website and online trading platform. The Philippines’ financial watchdog alleges that Binance offers investment products such as leveraged trading services and crypto savings accounts without the required licenses, which violates the Securities Regulation Code. According to the SEC, the ban will take effect within three months to allow investors to exit their positions held through Binance. The agency also asked Google and Meta to block Binance-related advertising from showing up on their platforms for Filipino users. Continue reading Worldcoin blocked for three months in Portugal The Portuguese data regulator, the National Data Protection Commission (CNPD), announced the decision to temporarily limit Worldcoin’s biometric data collection through its Orb devices within the country. According to the CNPD, the decision was made to protect the rights of its citizens, particularly minors. The measure will take effect immediately and until the conclusion of an investigation. The CNPD said these measures were taken after receiving “dozens of reports” on the collection of data from minors without the proper authorization of parents or legal authorities. Continue reading Coinbase Wallet wins over SEC in court Crypto lawyers are hailing a recent decision by a United States judge to dismiss allegations against Coinbase Wallet as a win for self-custody wallets and decentralized finance (DeFi) apps. U.S. District Judge Katherine Failla denied Coinbase’s bid to dismiss a Securities and Exchange Commission’s (SEC) lawsuit, finding the SEC “sufficiently pleaded” Coinbase was unlicensed and its crypto staking offering was unregistered securities. The judge also determined the SEC failed to allege that Coinbase conducted brokerage activity through Coinbase Wallet, its self-custody crypto wallet app that gives users full control of their assets. Continue reading

[INST] Tether boosts Bitcoin reserves with latest acquisition [/INST] Tether, the company behind the Tether (USDT) stablecoin, acquired 8,888 Bitcoin (BTC) worth $618 million on March 31. Following the acquisition, Tether’s wallet now holds 75,354 Bitcoin, bought at an average price of $30,305, worth around $5.2 billion at the time of writing, according to on-chain data. The wallet is up over 128%, with a current unrealized profit of $2.94 billion, according to CoinStats data. Tether BTC wallet overview: Source CoinStats The acquisition came during a time of heightened institutional interest in Bitcoin due to the approval of United States-based spot Bitcoin exchange-traded funds and the incoming Bitcoin halving, which is set to reduce the block supply issuance in half in just 19 days. Related: Is the Bitcoin halving the right time to invest in BTC? Following the acquisition, Tether is now the seventh-largest Bitcoin holder in the world, according to Bitinfocharts data. Binance’s cold wallet is the largest Bitcoin holder, with over 248,597 Bitcoin worth $17.31 billion at publication. The firm said it would invest 15% of its net profit into Bitcoin to diversify the stablecoin’s backing assets. Tether’s USDT reached a record $100 billion market cap on March 4, posting a 9% year-to-date growth. Related: Tether plans major expansion into BTC mining with $500M investment: Report Bitcoin trades above $69,000, suggesting end of pre-halving correction Bitcoin price fell 1.23% in the 24 hours leading up to 8:45 am UTC to trade at $69,523. The world’s first cryptocurrency has been trading above the $69,000 support line since March 25 despite the market experiencing the largest quarterly options expiry event on March 29. Bitcoin’s pre-halving correction could be over since Bitcoin flipped its old all-time high of $69,000 into support, said pseudonymous crypto analyst Rekt Capital in a March 26 video analysis: “Bitcoin is now peaking beyond this old all-time high, potentially positioning itself for this pre-halving retracement to be over.” Bitcoin reached a new all-time high before the halving event for the first time in the cryptocurrency’s history. Despite its strong price action, the halving is still not priced in to “full extent,” Basile Maire, the co-founder of D8X decentralized exchange and former UBS executive, told Cointelegraph. Bitcoin has just closed seven monthly green candles in a row for the first time in history. BTC/USDT, 1-month chart. Source: CoinMarketCap Related: How high can Bitcoin go? New BTC price prediction sees cycle top at $180K

[INST] John Deaton’s crypto backers help outraise Warren in Senate race [/INST] Pro-crypto lawyer John Deaton has outraised Senator Elizabeth Warren over the first quarter of this year for his bid to seize her Senate spot — bankrolling $1.36 million compared to Warren’s $1.09 million. A who’s who of crypto backers make up Deaton’s top donors, including Ripple executives Chris Larsen and Brad Garlinghouse, Gemini founders Cameron and Tyler Winklevoss, SkyBridge Capital founder Anthony Scaramucci, Cardano and Ethereum co-founder Charles Hoskinson and Kraken co-founder Jesse Powell. In total, Deaton’s contributors have given him nearly $360,700 for Q1 2024, plus the $1 million he loaned to his campaign, preliminary filings to the United States Federal Election Commission (FEC) show. Deaton’s top Senate campaign donors between January and March 2024. Source: FEC In comparison, Warren reported raising just under $1.09 million — all from donors alone. Deaton rose to prominence defending XRP (XRP) holders’ interests in the Securities and Exchange Commission’s legal fight against Ripple. He announced his bid for Warren’s Senate seat representing Massachusetts in February, running as a Republican against the 11-year Democratic Party incumbent. Warren has long campaigned against crypto and introduced bills she claims are to “level the playing field” between crypto and traditional financial markets, which her detractors claim would drive innovation and investment out of the United States. Related: Crypto users could ‘make a difference in a close election’ in the US — CoinFlip CEO Among Deaton’s largest individual contributors were Ripple’s Larsen and Garlinghouse, Scaramucci and the Winklevoss twins. Each made the maximum donation of $6,600 — the max of $3,300 each to the primary and general election bids. Cardano’s Hoskinson, Kraken’s Powell and Casa wallet founder Jameson Lopp each threw in $3,300 to Deaton’s primary campaign challenge, as did Ripple legal chief Stuart Alderoty. The U.S. Senate elections are set to be held on Nov. 5 with 34 of the 100 total seats up for contestation alongside all 435 seats in the House alongside the presidency — with it likely that former President Donald Trump will again face off with President Joe Biden. Magazine: Pro-XRP lawyer John Deaton ‘10x more into BTC, 4x more into ETH: X Hall of Flame

[INST] What to expect at Changpeng Zhao’s sentencing on April 30 [/INST] Former Binance CEO Changpeng “CZ” Zhao is scheduled to appear before a federal judge more than 160 days after pleading guilty to one felony count as part of a settlement agreement with United States authorities. On April 30, Judge Richard Jones will hear from prosecutors and CZ’s attorneys in United States District Court for the Western District of Washington for one of the most anticipated legal proceedings in the crypto space since the conviction and sentencing of former FTX CEO Sam Bankman-Fried. Zhao’s sentencing hearing has already been pushed back once, but at the time of publication, it was expected to be held by the end of the month. In November 2023, Zhao pleaded guilty to one count for failure to maintain an effective Anti-Money Laundering (AML) program while at Binance, violating the Bank Secrecy Act. He resigned as CEO as part of the plea deal, in which the crypto exchange and Zhao agreed to pay $4.3 billion to settle “civil regulatory enforcement actions” in the United States — which did not include a lawsuit from the Securities and Exchange Commission (SEC). Under U.S. sentencing guidelines, Judge Jones could put CZ in federal prison for up to 10 years, but there is a recommended sentence of 12 to 18 months for the charge he's facing. Bankman-Fried received a 25-year sentence on March 28, but other than the fact both cases involve high-profile members of the crypto space, there are few similarities. Some have suggested that given his guilty plea and cooperation with authorities, Zhao could face no prison time. “I would say [these cases] are not comparable from a charges perspective, but they are extremely comparable from the perspective that the [Justice Department], the SEC and the federal government are making it very clear that they are not going to tolerate nefarious behavior,” Moe Vela, a former Director of Administration for then-Vice President Joe Biden, told Cointelegraph. Vela added that U.S. authorities may be trying to “send a message” to illicit players in the crypto space, regardless of whether the judge imposes a harsh sentence on CZ. However, he speculated that the former Binance CEO could “see some leniency” from the judge due to Zhao's cooperation and guilty plea. Related: What to expect at Sam Bankman-Fried’s sentencing hearing Mark Bini, a former Assistant U.S. Attorney in the Eastern District of New York, told Cointelegraph that, unlike Bankman-Fried’s criminal case, CZ’s felt more “like a regulatory offense.” However, he said there was a risk that events around Hamas’ attack on Israel could potentially influence the judge overseeing CZ’s sentencing. In the wake of the Hamas attack, many reports have surfaced alleging connections to crypto being used to fund terrorist organizations. The allegations may not be entirely unrelated to the former Binance CEO’s charge for failure to maintain an AML program and the exchange’s civil case. “The wild card and where public sentiment might line up with what the government feels about the case is that there is that case out there against Binance [...] accusing them of having laundered funds related to Hamas,” said Bini. “Something like that [...] might be framed in some way as showing how serious that what looks like a regulatory offense has real-world consequences that prosecutors might argue should be taken into account.” Bini added: “The facts of the case may be so compelling to the judge in some bad way for CZ that the judge feels that a more significant sentence is called for.” Since his guilty plea, Zhao has remained mainly free to travel within certain areas of the United States on a $175 million bond. His legal team has made several requests for the former Binance CEO to travel to the United Arab Emirates to visit family before his hearing, all of which the judge has denied. Magazine: US enforcement agencies are turning up the heat on crypto-related crime

[INST] FTX estate to unload $7.6B locked Solana balance at 68% discount [/INST] The estate of bankrupt cryptocurrency exchange FTX will sell its balance of 41 million Solana (SOL), worth $7.65 billion at the time of publication, to institutional investors at around $60, or a 68% discount to its current market price. As told by FTX creditor Sunil Kavuri during FTX co-founder and former CEO Sam Bankman-Fried’s (SBF) sentencing on March 28, not all customers have been made whole by the exchange's bankruptcy. “Sullivan & Cromwell [FTX bankruptcy counsel] has trampled over our property rights,” Kavuri alleged. “They have liquidated billions of dollars of crypto assets. There’s a token S&C sold at 11 cents; it’s now trading at two dollars. FTX had $10 billion [misprint] in Solana tokens — they sold it at 70% discount." In an earlier victim impact statement filed by Kavuri, the FTX creditor claimed that the FTX estate “owns 41.1 million Solana tokens which should be distributed to FTX creditors. They were planning to sell them for $60, the price today is $187." Despite the creditors’ claims, presiding Judge Lewis A. Kaplan reiterated that the March 28 hearing was solely for sentencing SBF, and not for raising issues with creditors’ claims. “I accept your assertion the claim customers will be made whole is inaccurate," said Judge Kaplan. At least one investor seems to have confirmed the discounted sales. On March 27, Canadian blockchain firm Neptune Digital Assets announced it had acquired 26,964 SOL at $64 per token, a 67% discount to its then-market price. Although the firm did not specify its counterparty, the terms of the sale match the offer conditions provided by the FTX estate. As per a March 7 Bloomberg report, the vesting period for the purchase of discounted SOL tokens is four years. Simultaneous to the bankruptcy proceedings, FTX creditors have filed a class action against Sullivan and Cromwell, alleging that the firm participated in the FTX fraud before it became the exchange's bankruptcy counsel. Before its collapse, FTX was an early investor in the Solana ecosystem. Related: Sam Bankman-Fried sentenced to 25 years in prison

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

[INST] Manchester City to release digital collectibles through multi-year partnership with Quidd [/INST] The Premier League’s Manchester City Football Club has entered into a multi-year partnership with Animoca Brands subsidiary Quidd to develop and launch digital collectibles alongside new promotions and fan experiences. Quidd will create and launch “special edition” digital collectibles including cards that will unlock real-world experiences. Tom Boyle, Vice-President, Global Partnerships Marketing and Operations at City Football Group announced the partnership in a blog post adding: “We’re excited to help transform the traditional football pastime of cards and collectibles in a new digital age alongside Quidd, enabling us to further connect with our fans across the globe. We look forward to working together on creating new digital experiences and games for our fans to enjoy.” Related: Animoca Brands raises $5M for NFT marketplace, Quidd The inaugural product for the partnership will be a series of 200 bespoke digital player cards which will launch or purchase on May 2. The first 10,000 “Cityzens” (the colloquial term for Man City fans) to purchase packs will receive two exclusive “For the Fans” packs. Cityzens who unlock digital rewards through the Quidd packs will also have the opportunity to participate in real world events and purchase opportunities including official Manchester City merchandise and hospitality tickets as well as winning “money-can’t-buy experiences, including an exclusive opportunity to watch a first team training session at the City Football Academy.” Image source: Club News As Cointelegraph recently reported, Man City has been active in the NFT space as of late with the launch of its “Unseen City Shirts” NFT collection on the OKX blockchain on April 22. A limited number of Unseen City Shirts NFTs are tied to physical, limited-edition jerseys featuring hand painted artwork. The club also partnered with Sony in 2022 to build a virtual version of Etihad Stadium, Man City’s iconic home field, reportedly the first officially-licensed football stadium to be built in the metaverse. Meanwhile, other clubs are turning to cryptocurrency for their long-term futures. The Winklevoss twins recently bought into Bitcoin podcaster Peter McCormack’s Real Bedford Football Club, investing $4.5 million towards the club’s Bitcoin treasury. Evidently they’re bullish on both BTC and the club’s chances to one day make it to the Premier League.

[INST] UK to propose clearer crypto regulations by July [/INST] The United Kingdom Treasury intends to present a regulatory framework for crypto assets and stablecoins by July, with the aim of encouraging local innovation in digital assets and blockchain technology. The U.K.’s economic secretary to the Treasury, Bim Afolami, revealed the government’s ongoing drive to lay the groundwork for revamping the country’s payments landscape while speaking at the Innovate Finance Global Summit (IFGS) 2024. Alongside the U.K.’s focus on fiat payment innovation, Afolami highlighted the importance of crypto regulations to remain globally competitive: “Speaking of true change, I know that the cornerstone of our position as a world leader in fintech is the delivery of our regulatory regime for crypto assets and stablecoins.” Afolami further highlighted the British government’s perspective on regulations, which aims to find the right balance between allowing firms to innovate while protecting the consumers. IFGS 2024: Keynote Address from Bim Afolami, economic secretary to the Treasury. Source: YouTube The U.K. Treasury is working on the final proposals that “deal with stablecoin and (crypto) staking” and plans to deliver them by June or July. The minister added: “Once it goes live, a whole host of crypto asset activities, including operating in exchange, taking custody of customer assets and other things, will come within the regulator perimeter for the first time.” Afolami also announced the formation of an open finance task force during the conference. “The task force will craft a clear set of recommendations, pinpointing the data sets of commercial incentives necessary to drive forward CFIT’s SME lending use case for open finance,” he explained. Related: Controversial UK legislation creates ‘positive frictions’ for crypto users From April 26, U.K. authorities will be able to retrieve crypto assets directly from exchanges and custodian wallet providers. The law comes into effect after amendments were made to the Economic Crime and Corporate Transparency Act 2023, which expands the power of the National Crime Agency to confiscate and seize crypto assets the agency suspects are linked to suspicious illicit activities without needing to go through extensive legal procedures. The Economic Crime and Corporate Transparency Act 2023. Source: U.K. Parliament While it didn’t outline its process, the most common way to destroy a crypto token is by burning it, transferring the tokens to a burn wallet address and taking them out of circulation. Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)

[INST] Paradigm leads $225M funding round for new ‘Solana killer’ L1 [/INST] Crypto-focused venture capital (VC) firm Paradigm is leading a $225 million funding round into a new layer-1 blockchain network, which is set to compete for market share with Solana and other top networks. Monad Labs completes the funding round, which aims to build a new layer-1 smart contract network with faster speed and lower costs than Ethereum. The funding round was announced after two years of development, according to Keone Hon, the founder of Monad Labs, who told Fortune in an interview: “We’re emerging from roughly two years of development […] At a time when a lot of the research community was focused on roll-up, data availability, and other directions of scaling, Monad basically went really deep on the pure execution side.” The new L1 will be 100% compatible with the Ethereum Virtual Machine (EVM), capable of up to 10,000 transactions per second (TPS), according to a March 14 X post by Monad. Despite being the home of decentralized finance (DeFi), Ethereum has significant shortcomings, including notoriously high gas fees during network congestion. Monad Labs aims to improve on its shortcomings with its execution-focused L1. Hon told Fortune: “We realized there was a huge need for a more performant EVM, and that in spite of this need, no one was really working on this problem.” Related: With 10 days to the halving, analysts predict $150K Bitcoin top Crypto VC funding continues to rise The new investment round was announced during a period of increased VC interest in crypto firms. Bitcoin layer-2 network Mezo announced the completion of a $21 million Series A funding round led by Pantera Capital on April 9. Mezo enables investors to earn yield based on the time they hold their tokens. They describe it as a “Bitcoin Economic Layer.” On April 3, reports emerged about Paradigm negotiating to raise up to $850 million for a new fund, which would make it the largest raise in the crypto industry since May 2022, when Silicon Valley-based VC firm Andreessen Horowitz raised a record-setting $4.5 billion. Crypto VC funding turned positive in the first quarter of 2024, breaking a two-year slump, with the funds invested rising 38% compared to the previous quarter, according to data analysis platform Crypto Koryo. Related: Frax Finance dives into DeFi liquidity with $250M USDe allocation

[INST] UK court freezes over $8M of Craig Wright’s assets [/INST] A United Kingdom court has approved the freezing of 6.7 million British pounds ($8.4 million) of Craig Wright’s assets to prevent him from evading court expenses. The decision was made after Wright transferred some of his assets outside of the U.K. after a court verdict debunked his claim to be Satoshi Nakamoto, the founder of Bitcoin (BTC). According to a U.K. court document, this prompted him to shift shares of his London firm, RCJBR Holding, to a Singaporean entity on March 18. Judge James Mellor stated: “Understandably, that gave rise to serious concerns on COPA’s part that Dr Wright was implementing measures to seek to evade the costs and consequences of his loss at trial.” The judge endorsed a “worldwide freezing order” by the Crypto Open Patent Alliance (COPA) to address its total court expenses amounting to 6.7 million British pounds ($8.4 million). COPA was founded in 2020 “to encourage the adoption and advancement of cryptocurrency technologies and to remove patents as a barrier to growth and innovation.” Its 33 members include Coinbase, Block, Meta, MicroStrategy, Kraken, Paradigm, Uniswap and Worldcoin. An Australian computer scientist, Wright falsely claimed he was Nakamoto to file copyright assertions concerning the Bitcoin network. He demanded two websites remove the Bitcoin white paper in January 2021. Related: Bitcoin price retraces 30 days ahead of halving in historical pattern In April 2021, COPA filed a lawsuit against Wright, contesting his claims. On March 14, Mellor ruled that Wright is not Nakamoto. In 2023, Wright sued 13 Bitcoin Core developers and a group of companies, including Blockstream, Coinbase and Block, for copyright violations relating to the Bitcoin white paper, its file format and database rights to the Bitcoin blockchain. The Bitcoin Legal Defense Fund responded, highlighting the trend of abusive lawsuits against prominent Bitcoin contributors, deterring development due to the associated time, stress, expenses and legal risks. Wright filed for United States copyright registration for the Bitcoin white paper in 2019. The Bitcoin white paper is now subject to an MIT open-source license, allowing anyone to reuse and modify the code for any purpose. Magazine: China will intensify Bitcoin bull run, $1M by 2028: Bitcoin Man, X Hall of Flame

[INST] Morgan Stanley wants to beat UBS to become first Bitcoin ETF bank [/INST] The launch of spot Bitcoin (BTC) exchange-traded funds (ETF) in the United States has fueled rivalry between investment banks over which will be the first wirehouse to add the products. Morgan Stanley is hoping to beat UBS in becoming the first wirehouse to fully approve the Bitcoin ETF, crypto enthusiast Andrew (AP_Abacus) reported on X on April 3. Citing internal Morgan Stanley notes, Andrew said that the bank “may announce a few days before” its move into Bitcoin ETFs. He also mentioned that global banks have been actively talking about the Bitcoin ETF addition as a race. Bloomberg ETF expert Eric Balchunas added to Andrew’s X thread, noting that neither Morgan Stanley nor UBS have added Bitcoin ETFs, citing a “solid source.” “Still in a holding pattern, in a compliance game of chicken, waiting for one of them to go first, then gives rest cover. So probably will be an all-at-once type moment when that is the question,” Balchunas suggested. Prior to posting the new update, Andrew reported that UBS plans to add Bitcoin ETFs to its platform between April 8 and April 12 next week. Follow Bitcoin Halving coverage in full, presented by M2 The latest speculation about Morgan Stanley’s potential rival move against UBS comes a few weeks after Andrew reported that the bank is set to approve Bitcoin ETFs. “Several sources confirm that Morgan Stanley is set to approve Bitcoin ETFs on its platform in the next two weeks,” the poster wrote on March 26. Cointelegraph approached Morgan Stanley and UBS for a comment regarding the potential addition of spot Bitcoin ETFs to their platforms but did not receive a response at the time of publication. Spot Bitcoin ETFs made a historic trading debut in the United States on Jan. 11, after many years of efforts to launch one in the country. Customers of major banks like UBS and Citi subsequently reported not being able to access spot Bitcoin ETFs, with banks citing different reasons to not list those investment products. Related: SEC calls for comments on Fidelity, Grayscale and Bitwise spot Ether ETF applications A spokesperson close to UBS told Cointelegraph in January that spot Bitcoin ETFs can only be offered in a brokerage account and are only suitable for “aggressive investors.” “It remains to be seen if the issuers will be able to distinguish themselves in terms of ability to manage the product during turbulent markets,” UBS wrote in an official statement about spot Bitcoin ETFs on Jan. 29. Some other major banks in the U.S. have continued to maintain skepticism about Bitcoin even after the ETF approval. “We do not think it is an investment asset class,” Goldman Sachs’ chief investment officer and known Bitcoin skeptic Sharmin Mossavar-Rahmani said in an April 2 interview with the Wall Street Journal. “We’re not believers in crypto,” she stated. Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO

[INST] Vietnamese tech company to build $200M AI factory with Nvidia [/INST] 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

[INST] Ernst & Young taps ZK-proofs on Ethereum to automate contracts [/INST] Big Four accounting firm Ernst & Young has launched an Ethereum-based solution using zero-knowledge proofs aimed at helping its private business clients facilitate complex contracts. Called the EY OpsChain Contract Manager (OCM), the solution will help private businesses execute complex business agreements in a timely, confidential and cost-effective manner, the firm explained in an April 17 statement. Among the types of contracts that can leverage EY’s Ethereum-based solution are purchase agreements, standardized rate cards, volume discounts, rebates and strike prices. EY said it chose Ethereum — a public blockchain — instead of a private network as it would prevent a party from gaining a “strategic advantage” over another and reduce the risk of sensitive business information being leaked. The firm built OCM as it realized through past client work that accuracy in contract terms could be improved while also cutting cycle times and administration costs by around 90% and 40%, respectively, noted Paul Brody, EY Global Blockchain Leader. “With our zero-knowledge privacy technology, we have industrialized this capability, and we can now get these benefits at a fraction of the up-front cost.” The solution was launched at the annual EY Global Blockchain Summit on April 17. In a recent interview with Cointelegraph, Reed Smith’s On Chain cryptocurrency group leader Celisa Morin noted that TradFi institutions have started to prefer using public blockchains instead of private ones in recent months, with BlackRock’s BUIDL being a textbook example of that. Related: Bitcoin ETF to trigger massive demand from institutions, EY says OCM has been in the works since at least September 2021, when the accounting firm chose Polygon to help build its blockchain enterprise product. Polygon helped EY build Nightfall — an Ethereum-based enterprise solution to orchestrate private transactions — a few months later, in December 2021. However, no mention of Polygon was made in EY’s latest product information sheet for OCM. EY first started experimenting with ZK-proofs in April 2019 for the purpose of building a blockchain-based platform for audit, tax and transaction monitoring. Ethereum has long been its chain of choice to build on. The firm revealed it invested $1.4 billion into AI technologies for its new EY.ai platform late September, aimed at helping companies adopt AI through its in-house built large language model, EY AI EYQ. Magazine: Ethereum is eating the world — ‘You only need one internet’

[INST] Lido’s Ethereum staking market share dips below 30% [/INST] 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

[INST] DeFi’s ‘unknown and unpredictable’ risks curb institutional use — Fireblocks VP [/INST] Institutional investors have a “growing interest” in decentralized finance (DeFi) but are held back by the risks of on-chain transactions, says a Fireblocks executive. The company aims to address these concerns by introducing new features to its platform. “For institutional investors navigating DeFi transactions, the risks are significant,” Fireblocks security and trust products vice president Shahar Madar told Cointelegraph. “They manage significantly more funds than the average consumer trader.” Madar added: “The risks of unknown and unpredictable DeFi engagements is something they have to consider within their risk portfolio, which is what essentially holds them back.” Despite the risks, Madar said institutional DeFi trading on Fireblocks rose 75% in the first quarter of 2024, reaching “nearly $4.5 billion.” With DeFi having $95 billion in total value locked, according to DefiLlama, it has “attracted attention from sophisticated attackers” said Madar. Around $336.3 million worth of crypto was stolen in hacks and scams in Q1, down from $437.5 million stolen in Q1 of 2023. Fireblocks added two new tools to its institutional DeFi suite: “Transaction Simulation,” which allows its users to see what a smart contract will do to a wallet before it is signed, and “DApp Protection,” which analyzes contracts for malicious elements and alerts users of “suspicious smart contracts.” For DeFi to attract institutions, Madar said it “must prioritize security, user-friendly interfaces, and effective risk management,” which he thinks could “transform perceptions of DeFi and the entire industry.” Related: Crypto sleuth warns of scammers behind DeFi protocol Institutions, for their part, are increasingly drawn to staking, restaking and tokenizing real-world assets, said Madar. He added that Fireblocks users are actively “swapping, lending, staking and bridging” on decentralized applications, including Uniswap, Aave, Curve, 1inch and Jupiter. Meanwhile, the interest of traditional finance players leans toward real-world asset tokenization and using DeFi’s infrastructure to “establish a safer financial ecosystem without counterparty risks.” Magazine: Synthetix founder Kain Warwick: It’s DeFi that’s wrong, not the market

[INST] Token2049 Dubai preview — tuxedos optional, lifejackets obligatory [/INST] Token2049, the annual Web3 conference, opens its doors on Thursday, April 18, but those doors may well be barricaded with sandbags as the desert city has been inundated with a wall of water. The city, which typically gets just 9.5 centimeters (about 4 inches) of rain in a year, has seen close to 15cm (about 6 inches) fall in just 24 hours between Monday and Tuesday evening, throwing the tinder-dry metropolis into chaos. Social media is awash with videos and clips of the unlikely situation, with streets turned to rivers, cars submerged, planes spraying water on flooded runways, and tales of diverted flights and visitors to the conference trapped in their hotels. The city’s international airport, the second busiest in the world with 87 million passengers, told travelers this morning not to come — a first for the desert nation. Source: Dubai International Airport The event itself is still scheduled to go ahead despite the inconveniences visitors are experiencing. The hope is that the return of the kind of weather the Emirates expects for this time of year — blue skies and temperatures around 30 degrees Celsius — will be sufficient to get the city back on its feet and wheels again. Cointelegraph's reporter Ezra Reguerra is in Dubai to report on the event and has sent some eye-popping videos of the city after the storms. TOKEN2049 will run from April 18-19, 2024, at the Madinat Jumeirah Hotel in Dubai. Considered by some as one of tthe leading global Web3 and crypto community events of the year, 2024 marks the first time the event is taking place in Dubai. Tickets sold out well in advance, and 10,000 attendees are expected over the two days. It will bring together founders, executives, and decision-makers from over 4,000 companies and 100 countries. The agenda will cover a range of topics, including decentralized AI, Web3 gaming, DeFi, and blockchain scalability. And, as one would expect from the city of Dubai, the event will be accompanied by exhibitions, live DJ sets, and high-class hospitality. TOKEN2049 actually began on April 15, with a week-long series of meetups, workshops, and parties. The second TOKEN2049 event of the year will take place in Singapore in September.

[INST] US Justice Department charges KuCoin and two founders with violating AML laws [/INST] United States Justice Department officials unsealed an indictment against cryptocurrency exchange KuCoin and two of its founders for “conspiring to operate an unlicensed money transmitting business” and violations of the Bank Secrecy Act, or BSA. In a March 26 announcement, the U.S. Department of Justice said KuCoin founders Chun Gan and Ke Tang had willfully failed to maintain an Anti-Money Laundering program at the exchange, leading to the platform being used for “money laundering and terrorist financing.” The company itself was charged with operating an unlicensed money-transmitting business and violating the BSA. “KuCoin and its founders deliberately sought to conceal the fact that substantial numbers of U.S. users were trading on KuCoin’s platform,” said U.S. Attorney Damian Williams. “Indeed, KuCoin allegedly took advantage of its sizeable U.S. customer base to become one of the world’s largest cryptocurrency derivatives and spot exchanges, with billions of dollars of daily trades and trillions of dollars of annual trade volume.” Williams added: “In failing to implement even basic anti-money laundering policies, the defendants allowed KuCoin to operate in the shadows of the financial markets and be used as a haven for illicit money laundering.” The DOJ criminal charges were announced in parallel to a civil enforcement case from the U.S. Commodity Futures Trading Commission (CFTC), which charged KuCoin “with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations” on March 26. According to the Justice Department, KuCoin received more than $5 billion and sent more than $4 billion of “suspicious and criminal funds.” Related: KuCoin responds to claims of user funds being locked Gan and Tang helped launch KuCoin in 2017. According to its website, KuCoin’s operational headquarters was in Seychelles. The two founders, Chinese nationals, remained at large at the time of publication. U.S. officials have pursued similar criminal charges against crypto exchanges and their executives doing business in the country. On March 28, former FTX CEO Sam Bankman-Fried will be sentenced following his conviction on seven felony charges. Former Binance CEO Changpeng Zhao is expected to be sentenced on April 30. Magazine: US enforcement agencies are turning up the heat on crypto-related crime

[INST] Base asset tokenization protocol loses $1.7M due to private key leak [/INST] Real-world asset tokenization protocol Grand Base (GB), which operates on Coinbase’s native layer-2 blockchain, has suffered $1.7 million in losses after a private key compromise. “On April 15 at 03:01:27 AM +UTC, an exploit happened on our contracts,” wrote an admin in the protocol’s Telegram chat. “For this specific reason, we urge all our community members to stay away from this contract as it is not safe anymore.” According to blockchain analytics firm PeckShield, the private key leak resulted in the theft of $1.7 million in tokens from its liquidity pools, which have since been swapped on-chain for Ether (ETH) and sent to an external address. Simultaneously, the protocol’s native token lost 99% of its value in the past 24 hours due to the incident. The Grand Base Telegram admin reiterated that “this token contract is NOT safe anymore and you should NOT swap or interact with it, stay safe. We will update you asap on the next step.” In a follow-up analysis by blockchain analytics firm CertiK, it appears that the hacker gained control of Grand Base deployer contracts and subsequently minted an excess number of GB tokens without authorization before withdrawing them. A subsequent post from Grand Base staff claims that developers have “tracked all the wallets of the hacker” and are awaiting the next move. “We are in talks with CEXs [centralized exchanges] to freeze any funds that he might move,” Grand Base staff added. Grand Base’s description of the attack. Source: Telegram Users were not impressed with the news of the Monday hack. “I’m very sorry for everyone involved here,” one user wrote in Grand Base’s Telegram chat. “Please, don’t lose more money here. Abandon this and don’t deposit a single dollar more into this thing, whatever happens.” “There are hidden loopholes in this contract,” another user alleged. “The total balance does not show any changes, and it belongs to hidden loopholes. Do you know if it was intentional by dev or not?” they added. Before the minting attack, Grand Base had a maximum GB token cap of 50 million. The Grand Base tokenization protocol was launched less than five months ago. It allowed users to deposit collateral to mint real-world assets in the form of ERC-20 tokens and provided liquidity for the tokenized assets to earn rewards. Related: This platform aims to make seamless RWA tokenization possible

[INST] Unharmonized regulation threatens stablecoin usability — BIS report [/INST] 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

[INST] Binance restricts unverified sub-accounts on Exchange Link program [/INST] Crypto exchange Binance announced mandatory Know Your Customer (KYC) requirements for its Exchange Link account holders under the Binance Link Program. On April 5, Binance said that only verified and compliant users will be given access to their sub-accounts. The rule also applies to subaccounts created for deposit purposes and are not used in trading. The exchange said it had been applying restrictions to noncompliant sub-accounts since March 20 and giving an ultimatum to unverified sub-account holders. The exchange noted that by May 20, sub-accounts that have not submitted the necessary KYC information will be “fully restricted” from accessing the Binance Link Program services. Binance restrictions on unverified sub-accounts. Source: Binance Accounts with incomplete KYC information will have their deposits restricted. However, they will be allowed to withdraw their funds. When it comes to trading, the restricted accounts will not be able to place new orders in spot trading and will have all of their existing orders canceled. In futures and margin trading, the restricted accounts will not be able to place new orders but will be allowed to reduce their existing positions. Binance said that the Exchange Link account holders should be the ones to provide any additional information on behalf of their sub-account holders. This includes their source of funds, wealth and proof of address. Binance also added measures to determine whether a sub-account user is involved in politics. If the user is politically exposed, Binance requires them to provide their position and employer details. Those related to politically exposed persons (PEP) must also provide details of their relationship with the PEP. The exchange also noted that they could freeze the funds in a sub-account and restrict access for legal and compliance reasons. The exchange wrote: “In such cases, Binance may sometimes not be able to provide the Exchange Link account holder or their sub-account users with a detailed explanation for legal and compliance reasons.” The exchange also highlighted that it could restrict access to Exchange Link account holders who are unresponsive or uncooperative. This could lead to accounts being downgraded and their sub-accounts fully deleted. Related: Binance exec’s legal case in Nigeria adjourned until April 19 Meanwhile, Binance’s nonfungible token (NFT) arm announced that it will cease support for Bitcoin Ordinals trades and deposits on April 18. The exchange said this is part of its efforts to streamline its offerings on the Binance NFT marketplace. Binance will also cease to offer Bitcoin NFT-related airdrops, benefits and utilities after April 10. Magazine: KuCoin’s desperate $10M airdrop, 1 tweet raises $37M for memecoin: Asia Express

[INST] Indonesian NFT ‘selfie guy’ makes $1.8M, CryptoPunks sells for $16M: Nifty Newsletter [/INST] 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.

[INST] Advocacy groups warn of ‘adverse repercussions’ for crypto in case against Tornado Cash co-founder [/INST] Representatives of three United States-based cryptocurrency advocacy organizations have filed amicus briefs in support of a motion to dismiss the charges against Tornado Cash co-founder Roman Storm. In April 5 filings in U.S. District Court for the Southern District of New York, the Blockchain Association, Coin Center and DeFi Education Fund argued that Tornado Cash did not have control of the funds or messages users sent through the cryptocurrency mixer. The advocacy groups separately claimed that the three felony counts Roman faces should be dismissed, citing First Amendment issues regarding the Tornado Cash co-founder allegedly violating sanctions and the U.S. government “misunderstand[ing] the basic relationship between smart contract protocols and their developers” regarding allegations of money laundering. “Adoption of the government’s legal theory would not only have adverse repercussions for the digital asset industry but also raise serious concerns regarding fintech more generally,” said Blockchain Association Head of Legal Marisa Coppel. “We urge the court to hold the government up to its burden and dismiss the unfounded charges, safeguarding both the defendants’ rights and the integrity of the burgeoning digital asset sector.” The U.S. Justice Department announced charges against Storm and co-developer Roman Semenov in August 2023. Storm pleaded not guilty to all three charges and is free on a $2 million bond, largely restricted from traveling. Semenov’s whereabouts were unknown at the time of publication, but Storm is set to go to trial in September. Related: Here are the next biggest crypto court cases with the SBF saga over In the Netherlands, Tornado Cash developer Alexey Pertsev was arrested in August 2022 but released after roughly nine months in jail. Dutch authorities alleged he played a role in North Korean hacking groups using the crypto mixer to launder roughly $1 billion in illicit funds. All three cases are connected to the U.S. Treasury’s Office of Foreign Asset Control adding crypto addresses associated with Tornado Cash to its list of Specially Designated Nationals — sanctioned entities. The decision prompted some crypto advocates to sue the U.S. Treasury, but both cases await appeal after losing summary judgment motions. Magazine: Lawmakers’ fear and doubt drives proposed crypto regulations in US

[INST] Etherscan ads behind massive phishing campaign [/INST] Several Ethereum blockchain explorer Etherscan advertisements have been identified as part of a major phishing campaign targeting Etherscan users. On April 8, X community member McBiblets identified some advertisements on Etherscan as wallet drainers, warning users against being redirected to phishing websites when clicking on such advertisements. Further investigations revealed that the phishing advertisements appearing on Etherscan were also displayed on various known phishing websites. Picking up on McBiblets’ lead, Web3 anti-scam platform Scam Sniffer found that the phishing advertisements spread beyond Etherscan and were showing up on popular search engines such as Google, Bing, DuckDuckGo, as well as social media platform X. Scam Sniffer suspected the lack of oversight from advertisement aggregators as the root cause of the large-scale phishing campaign: “Etherscan aggregates ads from platforms like Coinzilla and Persona, where insufficient filtering could lead to exposure to phishing attempts.” The wallet drainer scam involves luring users to fake websites and prompting them to link their crypto wallets. Once linked, the scammer can withdraw funds into their personal wallet addresses without user authentication or permission. Blockchain security firm SlowMist’s chief information security officer, 23pds, also issued a warning about the phishing advertisements on Etherscan: “Be careful, there are phishing ads on etherscan.” The infamous and seasoned cyber phishing organization Angel Drainer is suspected of running the phishing attack campaign against Etherscan users. However, no concrete evidence about the scammers’ identity has yet been discovered. Read Cointelegraph’s guide to learn more about phishing attacks and how to prevent them. Related: Crypto phishing attacks reached ‘alarming levels’ — CertiK co-founder In 2023 alone, crypto phishing scams stole nearly $300 million from over 324,000 victims through wallet drainers. Notable wallet drainers active in 2023. Source: Scam Sniffer Scam Sniffer also reported that even when drainers close down, “phishing gangs” just take their business elsewhere, as there seems to be no lack of platforms providing services for scammers. Magazine: AI didn’t kill the metaverse, it will build it — Alien Worlds, Bittensor vs Eric Wall: AI Eye

[INST] Fake Ethena Labs token exploited for $290K on Binance Launchpool [/INST] Update March 29, 09:50 am UTC: This article has been updated to clarify the token in question is a fake bearing the same name as Ethena Labs' ENA token. A fake token with the same name as Ethena Labs's ENA token has been exploited for 480 BNB (BNB) tokens worth $290,000 on the Binance launch pool for farming. The vulnerability behind the exploit is still unknown. On-chain security firm PeckShield reported the incident at 8:31 am UTC on March 29 in an X post, mistaking the fake token for the real ENA token. Ethena Labs’s ENA token was announced on the Binance Launchpool on March 29. The exploit of the fake token, which is unrelated to Ethena Labs, occurred a few hours after the announcementing listing, causing widespread confusion. Ethena Labs launched its USDe synthetic dollar on the public mainnet on Feb. 19. Ethena became the highest-earning decentralized application (DApp) in crypto on March 8, when it offered investors an annual percentage yield (APY) of 67%. In terms of total sum, the exploit is on the smaller side of crypto hacks. The attack occurred a day after the over-$11-million Prisma Finance hack on March 28. Crypto hacks are a long-standing issue in the industry, eroding investor trust. 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, 17% of which can be attributed to the North Korean Lazarus Group, according to a Dec. 28 report by Immunefi. Related: Funds hacked in 2024 increased by 15.4% vs. the same period in 2023 — Immunefi Amount of crypto funds stolen fell 54% in 2023 The biggest year for crypto hackers was 2022, which saw over $3.7 billion in funds stpo, a decrease of 54.3% to $1.7 billion in 2023, according to the “2024 Crypto Crime Report” by Chainalysis. Despite the value of funds falling, the number of incidents grew from 219 in 2022 to 231 in 2023. Total value hacked. Source: Chainalysis Chainalysis attributed the significant yearly drop to a decrease in decentralized finance (DeFi) hacking, according to the report: “Hacks of DeFi protocols largely drove the huge increase in stolen crypto that we saw in 2021 and 2022, with cybercriminals stealing more than $3.1 billion in DeFi hacks last year. But this year, hackers stole just $1.1 billion from DeFi protocols. This amounts to a 63.7% drop in the total value stolen from DeFi platforms year-over-year.” Related: Marc Andreessen, Galaxy Digital, Accolade, back new $75 million crypto fund: Report

[INST] ‘Disable iMessages’ ASAP to avoid crypto zero-day exploit: Trust Wallet [/INST] 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

[INST] Bitcoin surpasses 65 million Ordinals inscriptions days before halving [/INST] The Bitcoin network has surpassed 65 million Ordinals inscriptions just days before the much-anticipated Bitcoin halving. Ordinals inscriptions surpassed the 65 million mark on April 11, less than one year and three months since their launch in January 2023, according to Dune data. Ordinals Inscriptions chart. Source: Dune Ordinals are the first iteration of nonfungible tokens (NFTs) on Bitcoin, the world’s first blockchain network. Ordinals live solely on the Bitcoin blockchain, unlike most of today’s popular NFT collections that host their metadata on centralized servers, creating additional points of vulnerability. The milestone comes just before the Bitcoin halving, which will happen on or around April 19, reducing block rewards from 6.25 Bitcoin (BTC) to 3.125 BTC. To date, Ordinals have generated over $458 million worth of network fees for Bitcoin miners, according to Dune, which is a significant lifeline for mining firms as the halving approaches. Related: With 10 days to the halving, analysts predict $150K Bitcoin top Ordinals signal demand for BTCFi The 65 million milestone shows the increased demand for block space on Bitcoin and the need for additional Bitcoin layer-2 networks, according to Mithil Thakore, CEO of Velar, who told Cointelegraph: “As ordinals become more prevalent, the need for utility around them through lending, derivatives markets, becomes evident. This trend will likely drive the rise of Bitcoin L2s, offering the programmability needed to support smart contracts to bring these ordinals as well as BTC to DeFi [decentralized finance]. It’s an exciting time for the Bitcoin ecosystem as we witness its evolution and expansion into new realms of functionality.” BTCFi, short for Bitcoin decentralized finance, is a new paradigm aiming to bring DeFi capabilities to the Bitcoin network. Provided that the current adoption rate continues, BTCFi could match the innovation of Ethereum-based DeFi in the future, Nash Lee, co-founder of MerlinSwap, who told Cointelegraph: “[Market appetite] is seeking expansive platforms capable of accommodating the surging volumes and expectations. DeFi stands out as the only sector with the potential to leverage this narrative, providing a sustainable ecosystem for Bitcoin’s evolving use cases. This dynamic sets the stage for Bitcoin DeFi to potentially match, if not exceed, the innovation and complexity seen in Ethereum’s DeFi ecosystem.” Related: 10 days until halving: Bitcoin mining profitability won’t necessarily fall

[INST] Aave contemplates fee distribution in DeFi shake-up [/INST] A proposal may be in the works at the decentralized lending platform Aave as deliberations about the activation of a “fee switch” to distribute fees to holders is set to get underway, according to Aave Chan Initiative founder Marc Zeller. Zeller said, “Temp check to activate ‘fee switch’ next week,” after noting that Aave DAO — the community-driven decentralized autonomous organization (DAO) behind the Aave platform — current net profits total about $60 million per year. Aave is a crypto lending platform primarily based on Ethereum. It allows borrowers to take out loans in one cryptocurrency and depositing another as collateral. It is governed by holders of the Aave (AAVE) token, who collectively form the Aave DAO. In a prior post on X, Zeller hinted at the possibility of implementing fees for Aave stakers. On March 16, he wrote, “A new iteration of the safety module will suggest distributing fees to stakers.” A “fee switch” typically refers to a feature or mechanism within a system or platform that allows for activating or deactivating specific fees or charges. In decentralized finance (DeFi) protocols like Aave, a fee switch might enable the distribution of fees collected from transactions or other activities to tokenholders or participants. Related: Restaking could introduce ‘hidden risks’ to Ethereum — Coinbase The fee switch will allow governance to control and adjust fee-related policies based on the platform’s needs and objectives. Aave DAO recently greenlit alterations to staking fees for its stablecoin GHO to maintain the token’s peg. If Aave DAO proceeds with fee activation, it will emulate Frax Finance, which recently endorsed a proposal to reintroduce its fee switch. However, on April 5, the AaveDAO discussed Dai (DAI) collateral restrictions. Risk management advisers from Chaos Labs presented a fresh proposal advocating a 12% decrease in Dai loan-to-value ratios (LTV) against Marc Zeller’s proposed 75% reduction. Prior to this, Aave launched a new proposal to set DAI’s loan-to-value ratio to 0% across all Ave deployments. Additionally, the proposal recommends removing sDAI incentives from the Merit program starting from Merit Round 2 and onward. The move counters MakerDAO’s rapid D3M plan, raising the DAI credit line to about 600 million DAI a month. Meanwhile, decentralized exchange Uniswap is in the final stages of preparation for its own fee switch proposal, expected to come in mid-April following a successful temperature check. Magazine: ‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull

[INST] Binance to return to India after paying $2M fine for non-compliance: Report [/INST] Binance crypto exchange is set to return to India after a four-month ban by paying a $2-million fine for non-compliance, according to a report published in The Economic Times. Binance will be the second overseas exchange after KuCoin to mark a return to the country after India’s financial regulatory body blocked access to crypto exchanges for non-compliance. The Indian Ministry of Finance’s Financial Intelligence Unit (FIU) blocked access to nine foreign crypto exchange’s URLs and mobile applications, including Binance, in the first week of January for failing to adhere to the country’s Anti-Money Laundering Act. Binance reportedly accounted for more than 90% of Indian crypto trading volume before its ban in January earlier this year. Indian users flocked to foreign crypto exchanges like Binance to bypass the severe tax impositions, which prompted the government to ban overseas exchanges not registered with FIU. Now, with FIU registration, foreign crypto exchanges like Binance have to adhere to the same rules and regulations as Indian exchanges. KuCoin has started a 1% tax deduction at source (TDS), and other foreign crypto exchanges looking to mark an entry into India will have to follow the same. Related: Taxman: India’s new tax policies could prove fatal for crypto industry A person with knowledge of the matter told The Economic Times that it is “unfortunate that it took (Binance) more than two years to realize there is no room for negotiations, and (that) no global powerhouse can command special treatment, especially at the cost of exposing the country’s financial system to vulnerabilities,” reported ET. Binance has a long history in India. It was believed to have acquired the local crypto exchange WazirX in 2019 but later claimed the deal never went through. Binance claimed it only provided wallet services for WazirX as a tech solution and that WazirX was responsible for all other aspects of the exchange, including user sign-up, Know Your Customer (KYC), trading and initiating withdrawals. While KuCoin and Binance have decided to become FIU-registered entities in India, OKX, another leading crypto exchange among the nine blocked crypto exchanges, shut its operations completely, citing the regulatory burden. Cointelegraph has approached Binance for comment but has yet to hear back. Magazine: Bitcoin Halving will pump games, Shrapnel’s ‘simple’ secret revealed: Web3 Gamer

[INST] How acclaimed composer Hans Zimmer got to write a crypto theme song [/INST] 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

[INST] Frax Finance dives into DeFi liquidity with $250M USDe allocation [/INST] 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

[INST] Crypto community triumphs: Token2049 attendees brave Dubai storms [/INST] Despite the difficulties faced by crypto community members who flew to the United Arab Emirates for Token2049, the number of attendees who persevered surprised leaders and executives who came to the event. Bus stuck in the middle of the road. Source: Cointelegraph On April 18, attendees were met with blocked roads and challenges that could have made many people simply turn around and leave the country. Various leaders in the space who were scheduled to have interviews with Cointelegraph wound up stuck in different airports and had to turn back because of the situation. Tether CEO Paolo Ardoino had to wait an extra two hours in the sky because his plane was unable to land due to the storm. “I was quite lucky because I only spent two more hours in the sky,” he said. However, after witnessing the number of people who still made it to the event, Ardoino expressed gratitude for the type of people crypto community members are. He said: “It’s a good sign that this industry is made by people who are willing always to gather, to discuss and keep pushing the industry forward. I’m grateful to see many people around.” Ava Labs founder Emin Gün Sirer also shared the challenges his team went through as they went to the event. “It was very difficult to come here. We were landing in the middle of the biggest storm ever. We spent five hours on what should’ve been a 20-minute landing,” he said. Fully packed main stage of Token2049. Source: Cointelegraph Despite this, Sirer believes that attending was the right choice and that it was worth it. He said: “We ended up going through a lot of water. My luggage and clothes were wet, but it was so worth it because the energy I see in the room right now is amazing.” Among the attendees, almost everyone faced their own difficulties. Still, since the tickets were sold out three weeks in advance, many crypto enthusiasts flocked to the event. Crypto community members indulged in the various activities available at the event, including various content-packed talks, project booths and networking. Ultimately, the crypto community showed resilience amid a historic storm that made attending the event difficult.

[INST] Hong Kong spot Bitcoin ETF approval draws praise and caution from industry players [/INST] The much-anticipated approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in Hong Kong earlier this week represents a significant industry milestone for some experts. However, others warn that greater market forces, such as persistent inflation and geopolitical risk, could overshadow the bullish event. “We are delighted to witness the historic moment of the launch of Asia’s first Bitcoin spot ETF and the world’s first Ethereum spot ETF,” said Livio Wang, chief operating officer of Hong Kong-based HashKey Group, in a statement. “This will serve as a significant milestone for traditional financial institutions in Hong Kong to enter the market and provide retail users with a more convenient purchasing gateway.” At the same time, Wang explained that, unlike U.S. spot Bitcoin ETFs, which were approved in January, Hong Kong spot Bitcoin ETFs have several unique features, such as subscription and redemption both via fiat money and via Bitcoin and stablecoins themselves. In addition, Wang spoke highly of Hong Kong regulators approving a spot Ether (ETH) ETF, which has seen greater regulatory hurdles in the U.S. Similarly, Patrick Pan, CEO and chairman of OSL Exchange, told Cointelegraph that “the initiation of these ETFs is expected to significantly boost capital inflow into the digital asset market in Hong Kong.” Pan also praised Hong Kong spot ETFs’ ability to allow in-kind settlement, explaining that such a structure will result in "uninterrupted trading flows" and "enhanced market liquidity." Crypto exchange eToro is also bullish on the prospects of Hong Kong spot ETFs. "Hong Kong would become the first Asian jurisdiction to have a bitcoin spot ETF, positioning itself as a rising crypto hub in Asia, as well as potentially paving the way for other neighboring countries and jurisdictions to follow suit with their own ETFs," the exchange wrote in a statement, continuing: "More potential investors and integrations into the traditional financial system could bode well for the bitcoin price." However, eToro also noted after the Hong Kong ETF news, all eyes now rest on Bitcoin's Halving event. "The question on every Bitcoin investor’s mind now is if we will see the price rally again to fresh all-time highs given the immediate supply shock from the halving, or will the price fall even lower, with the halving becoming a sell-the-news event after all the build-up, similar to the Bitcoin spot ETF approval earlier this year?” the exchange stated. Others are not as enthusiastic about the prospects of the Hong Kong spot Bitcoin ETF. "Mainland China investors probably won’t be eligible to buy Hong Kong-listed spot bitcoin and ether ETFs as they are barred from buying virtual assets," commented Bloomberg ETF analyst Eric Balchunas. Due to such demand constrictions, Balchunas predicts that Hong Kong spot Bitcoin ETFs will only attract "$1 billion within two years," far less than the approximately $50 billion currently managed by U.S. spot Bitcoin ETFs. Meanwhile, Markus Thielen, founder of Singaporean blockchain analytics firm 10x Research, said that the firm “sold everything last night,” just one day after Hong Kong spot ETFs were approved. “Our growing concern is that risk assets (stocks and crypto) are teetering on the edge of a significant price correction," wrote Thielen, adding: "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." Bitcoin has lost nearly 20% of its value since achieving its all-time high of $73,750 apiece last month. On April 13, the digital asset took a nose-dive due to escalating tensions in the Middle East. Source: Eric Balchunas (X). Related: 'China is about to start bidding' — Will Hong Kong Bitcoin ETFs spark the halving rally?

[INST] Casa's multi-key solution for tackling self-custody Bitcoin inheritance [/INST] Bitcoin self-custody firm Casa is rolling out an inheritance feature aimed at streamlining the transfer of assets to benefactors from deceased estates. The inheritance of cryptocurrencies can be a complicated process, even more so if the owner of the digital assets has not made any provisions for their families or designated recipients to take control. Nick Neuman, co-founder and CEO of Casa, tells Cointelegraph that the inheritance of cryptocurrencies has long been an issue for crypto-natives looking to ensure that their digital holdings are passed on accordingly. “It’s not overlooked. Many people recognize it as a big problem they want to solve but they haven’t had good tools to solve it yet, so most people either don’t have a solution, or have cobbled together something that they hope will work but don’t feel good about,” Neuman said. Casa has offered an inheritance feature to its highest membership tier in the U.S. for the past few years. Neuman said the new offering will be available to all Casa members and differs from the existing high-tier feature, allowing users to transfer Bitcoin (BTC), Ether (ETH), Tether (USDT), and USD Coin (USDC) holdings to benefactors. Related: Casa Releases Self-Custody Bitcoin Wallet Focused on Privacy The offering aims to ensure that the process of managing cryptocurrency holdings of deceased individuals is straightforward, secure and resistant to malicious actors. Neuman said that instances where inheritance plans have not been made have been “precarious and stressful,” adding: “When we’ve tried to help recover assets for people who don’t have an inheritance plan and have passed away, it has taken anywhere from 6-12 months to figure everything out. Even then, the chance of actually recovering the assets is low.” The offering hinges on a Casa’s user designating a recipient to a specific token vault in its proprietary app. The recipient then creates a free Casa account and scans a QR code provided by the vault owner, which contains an encrypted version of the owner’s mobile key. Related: Casa launches multisignature Ethereum self-custody vault The key can only be imported by the specified account and the recipient can’t initially use it or see the vault balance as Neuman explains: “If the vault owner passes away, the recipient can request access to the vault in their Casa app. This starts a six month timer, and sends a ton of notifications every month to the owner.” If the owner is still alive, they can reject the request in their app. If the timer runs out after six months, the recipient can use the shared mobile key and request a signature from the Casa Recovery Key for the shared vault. This will give them 2 out of 3 signatures required to access the asset. Casa's inheritance feature allows a vault owner to assign encrypted keys to benefactors to access assets after their death. Source: Casa Casa will also offer a five-key vault, where one hardware key is shared with the recipient. The small increase in friction for recipients adds increased security and resilience of a five-key vault for larger holdings. Best guess estimates pin the value of lost Bitcoin at around $140 billion, of which misplaced keys are often a cause. Since its inception in 2016, Casa has promoted multisignature self-custody in the crypto industry. Its flagship Bitcoin vault allows users to store the cryptocurrency using up to five keys for more distributed security. Casa’s service originally catered to Bitcoin “whales” willing to spend $10,000 a year on custody before opening its service to a broader base of users. The company has now added an Ether vault to its platform, with ETH holders also able to use up to five keys to secure their holdings. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

[INST] Canada to begin implementing international crypto tax reporting standard [/INST] 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

[INST] Australia's securities regulator appeals loss in Finder Wallet case [/INST] 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

[INST] Bitcoin miner CleanSpark plunges 10% after $800M share offering [/INST] 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

[INST] Grayscale fund drops ADA and ATOM after quarterly rebalancing [/INST] Grayscale has removed Cardano’s (ADA) token from its Grayscale Digital Large Cap Fund (GDLC) and Cosmos’ (ATOM) token from its Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE). The removal of the tokens was part of Grayscale’s quarterly fund rebalancing, the world’s largest crypto-focused asset manager announced in an April 4 X post. The proceeds generated from selling the tokens were used to buy existing fund components. Grayscale Digital Large Cap Fund. Source: Grayscale Following the removal of the ADA token, Grayscale’s large-cap fund now consists of 70.96% Bitcoin (BTC), 21.84% Ether (ETH), 4.52% Solana (SOL), 1.73% XRP (XRP) and 0.95% Avalanche (AVAX). Grayscale Smart Contract Platform Ex-Ethereum Fund. Source: Grayscale As for Grayscale’s smart contract platform fund, it now holds 58.41% Solana, 14.56% Cardano, 12.25% Avalanche, 8.53% Polkadot (DOT) and 6.25% Polygon (MATIC) tokens, after removing ATOM from the fund. No new assets have been added or removed from Grayscale’s DeFi Fund, which currently holds 48.74% Uniswap (UNI), 20.41% Maker (MKR), 13.17% Lido (LDO), 9.99% Aave (AAVE) and 7.69% Synthetix (SNX) tokens. Related: Google sues alleged China crypto app racketeers: Report Grayscale is the world’s largest crypto-focused asset manager. At the end of March, it announced a crypto investment fund prioritizing cryptocurrencies with staking rewards. The new Grayscale Dynamic Income Fund is only available to clients with more than $1.1 million assets under management or a net worth of more than $2.2 million. ADA and ATOM deliver negative returns year-to-date Cardano’s ADA token fell 8.1% year-to-date (YTD) while ATOM fell over 3.3%, significantly underperforming both Bitcoin — the world’s first cryptocurrency — and Ether. BTC, ADA, ATOM, YTD chart. Source: TradingView In comparison, Bitcoin is up 59% since the beginning of the year, while Ether has rallied over 40%, TradingView data shows. ADA is down over 10% on the weekly chart, after falling below the $0.6 psychological mark on April 2, and is currently 81% away from its previous all-time high of $3.10 reached in September 2021. ATOM is also down over 10% during the past week, trading at the $10.8 mark, 75% away from its record $44.7 reached in September 2021. Related: BTCFi innovation to match Ethereum DeFi in the future: MerlinSwap co-founder

[INST] DeFi hub Chainage seeks tokenholder approval for $13M capital raise [/INST] 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

[INST] Australian Monochrome spot Bitcoin ETF expected to launch within 2 months, says CEO [/INST] 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

[INST] Elon Musk’s AI spinoff is seeking $4B that could level up Grok: Report [/INST] Tech entrepreneur Elon Musk is seeking to raise up to $4 billion for his artificial intelligence (AI) startup xAI, the inventor of the X-linked AI chatbot Grok. Select investors are reportedly being offered the chance to participate in funding rounds for the AI startup through special purpose vehicles (SPVs), according to an email sent to potential investors. SPV structures allow different venture capital firms and individuals to invest together through a single entity. However, there are upfront fees of up to 5% and management fees and interest to be added on, according to reports. Reports also reveal that Musk is looking to raise $3 billion–$4 billion in a deal that could value the company at $18 billion following the completion of the funding round, and the firm “expects to raise the funds in the next 2–3 weeks on a first-come, first-served basis.” XAI was founded by Musk in March 2023 and launched in July of that year and is headquartered in the San Francisco Bay Area in California. The firm has the lofty ambition of “understanding the true nature of the universe.” The firm launched its first product in November, claiming that its X-linked chatbot Grok can outperform ChatGPT. The email pitch reportedly highlighted potential selling points for investors, including Musk’s track record at Tesla and the training of the AI model on data from Musk’s microblogging network X. Entrepreneur and angel investor Mario Nawfal commented on the news, stating that as AI investments skyrocket with billions flowing into startups, “concerns about an AI bubble grow amid soaring valuations and high development costs.” XAI’s in-house AI tutors hail from a wide array of fields and are tasked with creating and curating high-quality data for training and evaluating its models, according to the official website. Related: Groq AI chip system goes viral and rivals ChatGPT, challenges Elon Musk’s Grok In March, Musk said that xAI was making the AI chatbot open-source to challenge OpenAI’s closed ChatGPT model. However, xAI remains a small startup despite its multibillion-dollar valuation, with just 10 full-time engineers and between 5,000 and 10,000 GPUs, according to reports. Cointelegraph reached out to xAI for further details but did not receive an immediate response. Grok is part of a crowded AI chatbot marketplace with competitors such as OpenAI’s ChatGPT, Antropic’s Claude, Microsoft’s Copilot, Google’s Gemini and Meta AI from the company formerly known as Facebook. Magazine: AI didn’t kill the metaverse, it will build it — Alien Worlds, Bittensor vs Eric Wall: AI Eye

[INST] Holding Bitcoin now profitable 99.92% of all days [/INST] Bitcoiners maintained a profitable portfolio for 99.92% of all days, leaving just six days when investing in Bitcoin (BTC) did not turn out to be profitable since it launched over 14 years ago, on Jan. 3, 2009. Bitcoin recently marked an all-time-high price of $73,600 in mid-March, ensuring that BTC holders across all price points saw their investments appreciate. Since then, Bitcoin has continued to hold a price close to the $68,000–$70,000 range, according to data from Cointelegraph Markets Pro and TradingView. Bitcoin (BTC/USD) price chart from February 2024 to date. Source: TradingView As a result of the market volatility-induced price fluctuations, only a handful of Bitcoin hodlers remain unprofitable. According to crypto financial services firm Blockchain.com, Bitcoin purchased between March 9–13 and March 25–29 is currently at a loss. In other words, 0.16% or six days of the last 3,732 tradable days did not turn out to be a profitable investment. Number of days in which holding bitcoin has been profitable, relative to current price. Source: blockchain.com Zooming out, the price chart solidifies the strategic importance of holding Bitcoin during the bear markets. CoinMarketCap estimates that 86.28% of all Bitcoin wallets hold up to $1,000, 13.03% hold anywhere between $1,000 to $10,000 and 0.69% hold $100,000 in Bitcoin. Additionally, Bitcoin’s consistent comebacks from bear markets and subsequent price retention allow the mining community to thrive, contribute to the hash rate and inadvertently increase the security of the Bitcoin network. As the Bitcoin halving event approaches, institutions and private investors are accumulating BTC, anticipating a price surge. The fourth Bitcoin halving is expected to commence at the block height of 840,000, expected on April 20, 2024. Related: Memecoin madness is breaking the Bitcoin halving cycle The mining community is also strategizing a game plan to remain profitable post-Bitcoin halving despite rewards being slashed in half to 3.125 BTC. Canadian Bitcoin mining firm Bitfarms pledged nearly $240 million to upgrade its fleet of mining equipment. Speaking to Cointelegraph, Bitfarms chief financial officer Jeffrey Lucas gave his reasoning behind the ongoing fleet upgrade: “The transformational fleet upgrade propels Bitfarms in scale and profitability amid the Bitcoin halving. This is a game changer that triples our hash rate to 21 EH/s, increases our targeted operating capacity by 83% to 440 megawatts (MW), and improves fleet efficiency by 40% to 21 w/TH.” Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance

[INST] Tether issued on TON blockchain at a ‘great start,’ says CEO — Now at $60M [/INST] $60 million worth of Tether (USDT) has already been issued on The Open Network (TON) since it began supporting the blockchain on April 19, making it the 11th-largest blockchain for Tether out of 16. On April 19, the stablecoin issuer announced a collaboration with the TON Foundation at the Token2049 crypto conference in Dubai that would see Tether begin to be minted on TON. The firm also revealed it has launched the gold-pegged Tether Gold (XAUT) stablecoin on TON as well. The Open Network team said that cross-border payments were instant, free and as easy as sending a text message to Telegram’s 900 million users in a post on X. Tether CEO Paolo Ardoino commented in a post on X on April 21 that Tether had made a “great start” with $35 million USDT issued on TON. However, according to the Tether Transparency report, the authorized supply issued on TON has grown to $60 million as of 11:30 pm UTC on April 21. The collaboration allows Telegram’s users to send transfers freely and instantly among all platform users. “All you need to do is send a DM [direct message], no need for a blockchain address, and no need to download a new app,” the messaging company stated. USDT on TON will be accompanied by fully integrated on-ramps from most fiat currencies globally at launch, it added before stating that soon, integrated global off-ramps will enable users to withdraw supported fiat currencies directly to bank accounts or cards. However, the majority of Tether’s $109.8 billion circulating supply is on the Tron network, which has $57.8 billion. Ethereum has $51 billion USDT in circulation, a number that has been dwindling as more Tether is deployed on different blockchains to alleviate high network fees on Ethereum. USDT issuance on various blockchains. Source: Tether Transparency Report Solana is the third-largest network supporting Tether with $1.9 billion issued. The stablecoin has also been issued on Avalanche, Omni, Cosmos, Tezos, Near, EOS and Celo, among others. Related: Binance’s $1B emergency ‘SAFU’ fund now makes up 3% of UDSC supply Tether has a market share of 69% of the entire stablecoin market capitalization, which is around $159.5 billion, according to CoinGecko. Its closest rival, Circle, has a share of 21% for its stablecoin, USD Coin (USDC), of which there are $33.7 billion in circulation. Toncoin (TON) prices reacted to the announcement with a 22% spike but quickly returned to previous levels. The asset is trading down 1.6% on the day at $6.13 at the time of writing, according to CoinGecko. Magazine: The real risks to Ethena’s stablecoin model are not the ones you think

[INST] Bitcoin halving: Why it’s important for BTC scarcity [/INST] The fourth-ever Bitcoin halving occurred a few hours ago at the 840,000th block. The halving is considered the most important economic mechanism influencing Bitcoin (BTC) supply and creating scarcity for the asset. The Bitcoin network’s fourth halving event, reduced block issuance rewards from 6.25 BTC to 3.125 BTC per mined block, effectively slashing Bitcoin’s issuance rate in half. The halving is a crucial mechanism for Bitcoin’s scarcity and market valuation, according to Karim Chaib, the CEO of crypto platform Dopamine App. Chaib told Cointelegraph: “Scarcity is a fundamental economic principle that affects the value of an asset. By programmatically ensuring that the supply of Bitcoin increases at a slower rate over time, the halving events underscore Bitcoin's scarcity.” The halving is hard-coded in Bitcoin’s code base, which happens every 210,000 blocks mined, which equates to roughly every four years. The Bitcoin network witnessed its first halving in 2012 when the Bitcoin’s issuance rate was reduced from 50 BTC to 25 BTC per mined block. The last two halvings occurred in 2016 and 2020, significantly slashing Bitcoin’s issuance rate to the current 3.125 BTC. This hard-coded scarcity makes Bitcoin stand out from traditional store-of-value assets, according to Chaib, who told Cointelegraph: “This programmed scarcity is a key feature that differentiates Bitcoin from traditional assets like gold, which can become less scarce as new means of extraction and production are developed. Bitcoin, by contrast, has a capped supply of 21 million coins, making it fundamentally inflation-proof.” Related: Bitcoin supply to run out on exchanges in 9 months — Bybit Is Bitcoin the next gold? Bitcoin’s economic design and halving mechanism are effective mathematical methods to make Bitcoin a deflationary asset, which makes it the first reliable alternative to gold, according to Jonas Simanavicius, co-founder and CTO at Syntropy. He told Cointelegraph: “Gold has served for thousands of years as the primary store of wealth because it is difficult to increase its supply and it is global... Nothing else came close to having a predictably slow-growing supply—until Bitcoin.” Bitcoin price rose 122% during the past year, while Gold price rose 19%. During 2024, Bitcoin is up over 51% year-to-date (YTD), while Gold price increased 15% YTD, according to TradingView. Precious metals and real estate were considered the best store of value assets throughout the years. But the digital age is seeking more liquid assets for faster movements, which will ultimately benefit Bitcoin, said Simanavicius: “Over time, Bitcoin has not only survived, but its backing power of extensive computation and decentralization has also grown so strong that more people and institutions recognize this security, and the benefits such as immediate transactability, geopolitical decentralization, and ease of carry outweigh those of other asset classes.” Related: Top five BTC miners not selling despite Bitcoin halving

[INST] History of Crypto: Ethereum’s entry and Bitcoin’s expansion [/INST] Welcome to History of Crypto, a Cointelegraph series that brings readers back to the most significant events in the crypto space. Powered by Phemex, the timeline allows crypto community members to explore and look back at the important events that shaped the industry into what it is today. This article explores the pivotal period from 2013 to 2015 in the cryptocurrency world — a time of significant advancements and notable challenges. During this period, the increasing mainstream adoption of Bitcoin (BTC) marked a critical shift toward recognizing digital currencies. However, this era also witnessed the dramatic fall of Mt. Gox, underscoring the risks and volatility in the burgeoning crypto market. This epoch also saw the emergence of the first memecoin and the first nonfungible token (NFT), innovations that expanded the crypto landscape’s creativity and functionality. Explore the History of Crypto Most importantly, this is the time period when the Ethereum network was conceived. This groundbreaking development promised to leverage blockchain technology for more than just currency, paving the way for smart contracts and decentralized applications (DApps). This period was crucial in shaping the trajectory of the cryptocurrency movement, setting the foundation for future innovations and challenges. Bitcoin continues its expansion Shortly after the first Bitcoin halving in 2012, BTC reached a notable milestone a few months later. On March 28, 2013, the price of Bitcoin climbed, beginning to trade at around $92. This price increase led its market capitalization to hit the $1 billion mark for the first time, marking a significant moment in the cryptocurrency’s history. In an event that sparked widespread attention, Bitcoin achieved a remarkable milestone by reaching a new all-time high of $190 on April 10, 2013, during the Cyprus banking crisis. This crisis highlighted the potential benefits of decentralized currencies, leading many to view Bitcoin as a viable alternative to the traditional financial system’s vulnerabilities. Despite the initial surge, Bitcoin’s value experienced a significant drop to $68 just a week after reaching its peak. Bitcoin price. Source: CoinMarketCap Later in the year, Bitcoin continued to captivate market observers by surpassing expectations and reaching $1,000 on Nov. 19, first on the BTC China exchange (now known as BTCC) and subsequently on Mt. Gox. This achievement underscored Bitcoin’s growing relevance and the increasing interest in its role as an alternative asset within the broader financial landscape. An old titan falls, new exchanges start to rise During this critical period, Mt. Gox, the largest crypto exchange at the time, faced significant challenges. On June 20, 2013, it announced a temporary halt of U.S. dollar withdrawals, setting off two weeks of uncertainty. Although withdrawals eventually resumed, the exchange encountered difficulties processing them efficiently, underscoring the operational hurdles it grappled with. In a significant development within the cryptocurrency community, Mt. Gox announced the suspension of U.S. dollar withdrawals, followed by a stop to Bitcoin withdrawals on Feb. 7, 2014. This series of events culminated in the suspension of trading on Feb. 24, 2014, and a bankruptcy filing in Tokyo shortly after. The situation escalated when Mt. Gox sought bankruptcy protection in the United States in March 2014, revealing that 750,000 BTC belonging to its customers and 100,000 of its own coins had been compromised, amounting to a loss valued at around $473 million at that time. While the downfall of Mt. Gox marked a turbulent period in the cryptocurrency sector, it coincided with the emergence of several platforms that would become major players in the future. Okcoin, which would later rebrand to OKX, launched its operations on June 1, 2013. Close on its heels, Kraken’s trading platform became operational on Sept. 10, 2013. In the meantime, Coinbase, established in 2012, secured a $25 million Series B funding round in December 2013, led by venture capital firm Andreessen Horowitz, showcasing the growth and resilience of new entrants in the cryptocurrency exchange landscape during a period of upheaval. Ethereum’s arrival In 2013, Vitalik Buterin introduced the Ethereum network through a white paper, positioning it as a versatile platform for developing DApps. Buterin outlined how blockchain technology could serve purposes beyond just monetary transactions. In January 2014, Ethereum co-founders Gavin Wood, Charles Hoskinson and Anthony Di Iorio unveiled Ethereum at the North American Bitcoin Conference in Miami with Buterin. Follow History of Crypto! These exchanges now offer users access to a broad array of cryptocurrencies, with Ethereum’s native coin, Ether (ETH), securing its position as the second-largest digital asset by market capitalization. Ethereum has fulfilled its promise by evolving into a central platform for DApps. EXPLORE THE HISTORY OF CRYPTO The next piece in Cointelegraph’s History of Crypto series will delve into the initial coin offering boom and the ongoing evolution of Ethereum. Be sure to follow Cointelegraph for insightful updates on the most pivotal developments in crypto history.

[INST] Stablecoin competition crucial for regulatory engagement — Tether CEO [/INST] Ripple’s move to launch its own stablecoin could add further legitimacy to the stablecoin landscape, according to Tether CEO Paolo Ardoino. Speaking exclusively to Cointelegraph during Paris Blockchain Week, Ardoino said the stablecoin ecosystem needs healthy competition between big players to further legitimize the utility of fiat-backed tokens in the eyes of regulators. “First of all, competition is great. I always believed that Tether cannot be alone. The stablecoin ecosystem is an industry because there are many players,” Ardoino said. Stablecoins have become an increasingly important cog in the wider cryptocurrency space. With a total market capitalization of over $130 billion in April 2024, stablecoins provide a wide range of utilities, from centralized exchange to decentralized finance (DeFi) protocols. The top 10 stablecoins by market capitalization. Source: CoinMarketCap Ardoino said that having multiple credible players with viable and thriving businesses offering stablecoins reflects the growing importance of the sector: “Being multiplayer helps in discussions with the regulators. If you are all alone and you have one single product, regulators will never take you seriously. If you have a group of great companies, then you are more effective.” Ardoino also believes that Ripple’s intent to launch a stablecoin later in 2024 is indicative of the amount of room for more players to offer legitimate fiat-backed tokens. Related: Tether’s USDT stablecoin hits historic $100B market cap “I believe that there is space for everyone. Considering that the United States is printing around $1 trillion every 100 days, the space could probably be 30 times bigger than it is,” Tether’s CEO said. Tether’s market dominance Tether (USDT) is the leading stablecoin by market capitalization, valued at $108 billion on April 17. USD Coin (USDC) trails USDT as the second biggest stablecoin by market cap at $32 billion. Tether’s latest attestation of circling USDT tokens across 15 different blockchain protocols. Source: Tether Ardoino believes that the growing adoption of stablecoins like USDT and USDC is a direct result of rampant inflation and devaluing national currencies around the world. “Think about Argentina, Turkey, Venezuela, Vietnam or Brazil. All these countries are looking for an alternative to the national currency. The inflation in these countries and nations has been going through the roof,” Ardoino said. He added that more than 2 billion people remain unbanked, living off less than $300 a month. This leaves a large number of people without bank accounts and unable to transact in conventional economies. Related: Tether boosts Bitcoin reserves with latest acquisition The growing accessibility of digital wallets means that people are becoming increasingly able to save in digital forms of money like USDT or USDC. As Ardoino said, the simplicity of these offerings reflects a bleak reality of the global economic landscape: “USDT’s digital dollar is nothing fancy. It simply moves on a blockchain. The sad reality is that the success of stablecoins is also directly proportional to the macroeconomic issues happening in this world.” Ardoino maintains that circulating USDT is overcollateralized by 106%. Tether also intends to move toward 100% reserves in U.S. Treasury bills. It currently holds an estimated $90 billion of Treasury bonds. Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)

[INST] Marc Andreessen, Galaxy Digital, Accolade, back new $75 million crypto fund: Report [/INST] Prominent venture capitalists Marc Andreessen, Galaxy Digital, and Accolade Partners are among the top contributors to crypto venture capital (VC) firm 1kx’s latest fund. 1kx raised $75 million, with Chris Dixon, a partner at Andreessen Horowitz, as one of the limited partners, Lasse Clausen, the founding partner of 1kx, told Bloomberg on March 28. Private equity firm Accolade is the anchor investor in the new fund, according to Clausen. 1kx’s new fund is targeting crypto-based consumer applications. The new fund has already made around five investments, said Clausen, without naming the companies. Clausen founded 1kx in 2018, along with Christopher Heymann. The announcement of the new fund comes during a period of increasing institutional interest in crypto, bolstered by the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. Related: Hong Kong’s in-kind ETF creation could be a significant market opportunity: Analysts Venture capital funding in crypto startups saw an uptick in Q4 2023 to $1.9 billion, which is 2.5% higher than the previous quarter, according to a report from PitchBook. This is the first time VC investments have risen since March 2022. February’s VC investments also suggest renewed institutional confidence in the blockchain space, after a diverse group of crypto startups announced recent funding raises, including Lava Protocol, Analog, Helika, Truflation, and Omega, among others. More notably, Andreessen Horowitz (a16z) announced a $100-million funding round for EigenLayer, Ethereum’s largest restaking protocol by total value locked. Avail closed a $27 million seed funding round, led by Founder Fund and Dragonfly, at the end of February. The Web3 data availability and consensus layer aims to use the funds to develop its products and accelerate Web3 unification. In the wider crypto space, blockchain game publisher Immutable launched a $100 million fund to invest in blockchain games, in partnership with Venture capital firm King River Capital and Polygon Labs. The new fund called “Inevitable Games Fund,” or IGF for short, raised $30 million during its first close. The IGF kicked off with investments in seven blockchain game titles all native to ImmutableX or Polygon, including the Pokémon-reminiscent Pixelmon, fantasy role-player Guild of Guardians and shooter games Metalcore and My Pet Hooligan. Related: SEC can proceed with Coinbase lawsuit: Court ruling

[INST] Solana validators pass ‘Timely Vote Credits’ plan to speed up transactions [/INST] Solana validators have voted in a proposal aimed at decreasing the latency of consensus “votes” — which could speed up transactions on the blockchain. The proposal calls for a “Timely Vote Credits” mechanism on Solana and was passed on April 9 with 98% votes in favor. It would change how validators are incentivized to make “votes” — a key part of Solana’s consensus mechanism that confirms transactions. Solana Timely Vote Credits voting results. Source: Dune Analytics According to Solana Labs, up until now, validators are given a flat one vote credit whenever they submit a consensus vote on a block that becomes finalized by the network. Over time, validators have found they can maximize earnings by delaying their votes just long enough to ensure they’re voting on the correct fork — at no penalty. The proposal, floated on March 14 by “zantetsu” from Solana validator Shinobi Systems, would implement a variable number of vote credits that are awarded for votes — with more credits given to votes that have less latency. “This will discourage intentional ‘lagging,’ because delaying a vote for any slots decreases the number of credits that vote will earn,” Solana Labs explained. Solana users have raised concerns with the vote credit system in the past. Source: Reddit Currently, Solana Compass shows the blockchain is producing approximately 1,000 “non-vote,” or user transactions per second and nearly 2,000 “vote” transactions per second. Related: Paradigm leads $225M funding round for new ‘Solana killer’ L1 It’s not yet known what the impact of the new mechanism will be, as it’s expected to be implemented sometime after Solana’s v1.18 upgrade slated this month — which includes patches to fix priority fees and network congestion issues on the chain. Meanwhile, Solana has been battling a string of failed transactions which has been blamed on an “implementation bug” from QUIC, a Google-developed data transfer protocol that loops all nodes in on the current state of the network. A bug fix — which involves a reconfiguration for QUIC — is now slated for April 15, should no additional issues come about in testing. Magazine: Is measuring blockchain transactions per second (TPS) stupid in 2024? Big Questions

[INST] Woo X exchange launches world’s first tokenized T-bills for retail [/INST] Woo X cryptocurrency exchange has launched tokenized United States Treasury Bills (T-Bills), claiming to be the first protocol to offer tokenized T-Bills for retail investors. Woo X launched its real-world–asset (RWA) tokenization vaults, RWA Earn Vaults, enabling users to earn yield by holding Circle’s USD Coin (USDC), according to an April 22 X post: “With the RWA Earn Vaults, all @WOO_X users can now earn stable, predictable yield on their USDC holdings backed by U.S. Treasury Bills without having to jump through any extra hoops.” Backed solely by U.S. T-bills, RWA Earn Vaults offer between 4.5% and 4.7% annual percentage rate (APR) to USDC holders. According to the announcement: “User subscriptions accumulate real yields, fully backed by U.S. Treasury Bills, with current APRs for 7-day and 28-day terms at ~4.5% and ~4.75% respectively.” Related: Hashing It Out: Are RWAs the future of crypto? The yield-earning product was launched in partnership with OpenTrade, a London-headquartered tokenization platform backed by Circle. Circle is the issuer of the world’s second-largest stablecoin, USDC, which has a $34 billion market cap, behind Tether’s (USDT) with an over $109 billion market capitalization, according to CoinMarketCap data. Related: USDT aims to offer a lifeline to inflation-stricken nations: Tether CEO RWAs were the second most profitable crypto narrative in Q1 2024 RWAs were the second most profitable narrative in the crypto space during the first quarter of 2024, according to a recent report by CoinGecko. CoinGecko analyst Lim Yu Qian said: “The memecoin narrative was 4.6 times more profitable than the next best-performing crypto narrative of tokenized real-world assets (RWA) and 33.3 times more profitable than the layer 2 narratives with the lowest returns in Q1 this year.” Showcasing the growing institutional interest in the RWA sector, the world’s largest asset manager, BlackRock, launched a USD Institutional Digital Liquidity Fund on March 20, tickered “BUIDL,” worth over $298 million at the time of writing, according to Etherscan. Over $1 billion worth of U.S. Treasurys have been tokenized through 17 tokenization products by March 28, which rose to $1.15 billion by April 22, according to Dune data. Tokenized government securities. Source: Dune Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) remains the largest treasury tokenization fund, worth over $390 million at the time of writing, according to Dune. How tokenization will transform traditional finance | Interview with FTX US president Brett Harrison. Source: Cointelegraph Related: EigenLayer on the brink of potential yield crisis

[INST] ‘Buy Bitcoin’ sign that photobombed Janet Yellen sells for $1M [/INST] A yellow notepad with “Buy Bitcoin” written on it, which was flashed behind then-United States Federal Reserve Chair Janet Yellen during a 2017 congressional hearing, has sold at auction for 16 Bitcoin (BTC) — over $1 million. The buyer, identified as “Justin” — also known as “Squirrekkywrath” — was the winning bidder on the Bitcoin auction platform Scarce City. The auction ran for a week, ending on April 24, just after 11:00 pm UTC. The sign was offered up by Christian Langalis, who wrote it out and flashed it to the camera after nabbing a seat behind Yellen at a televised House Financial Services Committee hearing in July 2017. Langalis was escorted out after photobombing Yellen, as signs are not allowed to be displayed during hearings. CNBC reported at the time that after the sign was flashed, Bitcoin traded 3.7% higher, reaching over $2,418. After Scarce City takes its 15% fee, Langalis is set to pocket around $875,000, or 13.6 BTC. In a statement under the listing, Langalis said it was “good to finally liberate this number from my sock drawer and offer it back to the Bitcoin public.” Related: $1M Bitcoin price still in play amid ‘macro liquidity surge’ — Arthur Hayes The listing notes the page with the handwritten sign “was removed from the notepad shortly after the hearing” but was since “reattached with clear archival wire.” The yellow legal pad also contains “an unseen rough draft” of the now-iconic scrawl, along with notes on the hearing monetary policy and Bitcoin. Langalis’ draft of the sign was part of the sale. Source: Scarce City In 2019, Langalis created and sold 21 replicas of the sign, which sold for an average price of 0.8 BTC, worth about $51,300 today. The listing claims the replicas are displayed in the offices of venture firms Paradigm, Blockchain Capital and Castle Island Ventures, along with the crypto think-tank Coin Center. Bloomberg reported that Langalis planned to use the money from the latest sale to help fund a Bitcoin software project. Magazine: Recursive inscriptions — Bitcoin ‘supercomputer’ and BTC DeFi coming soon

[INST] Bitcoin ETF demand turns negative around BTC halving [/INST] Demand for the newest Bitcoin investment products is slowing down as the world’s first cryptocurrency went through its fourth “halving” event. Spot Bitcoin exchange-traded funds (ETFs) became a benchmark for institutional investments in Bitcoin (BTC) after launching in January 2024. The 11 spot Bitcoin ETFs approved by United States regulators in January collectively managed over $13 billion in inflows within a couple of months of launching. Gold ETFs took years to accomplish the same feat. At their peak, spot BTC ETFs saw up to $1 billion in daily net inflows — the result of institutional investors reallocating investments from the Grayscale Bitcoin Trust (GBTC) to the new ETFs. The Bitcoin halving is considered an important event in the Bitcoin timeline, which occurs roughly every four years and reduces the block reward for miners by half. Thus, the amount of new BTC added to the market daily is reduced by half. The halving has now reduced the block reward from 6.25 BTC to 3.125 BTC. Reduced rewards and high demand for BTC via ETFs led many market pundits to predict a supply shock after the April 20 halving. However, after weeks of consecutive net positive inflows to Bitcoin ETFs, demand for the products appears to be slowing down. Are geopolitics to blame for BTC ETF outflows? While many market analysts predicted that GBTC outflows would soon dry up as institutions ran out of GBTC shares to sell, inflows to ETFs have now turned negative. Ahead of the Bitcoin halving, spot BTC ETFs recorded several consecutive days of net outflows ranging in the hundreds of millions of dollars. However, despite the current downturn, Jag Kooner, head of derivatives at Bitfinex, believes the demand for ETF will catch up after the halving. “The reduction in inflows and significant outflows is not correlated to the halving event but rather to the current SPX and Nasdaq decline and geopolitical tensions. Bitcoin ETFs are an ‘alternate investment’ or a smaller part of large TradFi [traditional finance] investment portfolios. The current situation is likely a product of rebalancing risk on those portfolios and reducing exposure to high-risk assets,” he said. Recent: Bitcoin halving puts focus on crypto education initiatives Kooner added that BTC’s impressive rally since January 2024 was thanks not only to ETF approvals but also to market participants speculating on the impact of spot ETFs on the Bitcoin price. Thus, “we expect a stabilization of flows to result in a return of speculation on a bullish tipping of flows while we return to bullish trending market conditions.” Bitcoin supply shock theory takes a backseat The first three months of spot BTC ETF inflows ranged from three to 10 times the daily mining supply of 900 BTC. The high ETF demand and heavy buying from institutional giants such as MicroStrategy led many market analysts to predict a post-halving supply shock. A Bybit report predicted that BTC reserves on exchanges could dry up within nine months of the BTC halving, while other analysts predicted a six-month time frame. According to data shared by crypto analytics firm CryptoQuant, BTC supply on centralized exchanges fell to a three-year low of 1.94 million BTC by April 16. Ki Young Ju, CEO of CryptoQuant, made a similar prediction, saying BTC could face a severe supply shock “within six months” of the halving. But, by the third week of April, ETF demand has slowed to consecutive net daily outflows. The demand for ETFs stagnated at the end of March when BTC saw its first week of net outflows. Bitcoin ETF historical netflow. Source: CryptoQuant Young stated that the demand for ETFs may rebound if the BTC price approaches critical support levels where new whales — mainly ETF buyers — have a $56,000 on-chain cost basis. The cost basis of an investment is the total amount initially invested plus any commissions or fees involved in the purchase. Kooner added that people often ignore the long-term holders with a significant amount of supply. He said that there could also be a major distribution from long-term holders during the later stages of the current cycle, explaining: “The demand for spot Bitcoin ETFs is unprecedented by all accounts, but a single metric cannot measure demand for BTC itself. However, the market decline is evidence enough that the demand doesn’t currently outstrip BTC supply on an absolute basis.” While ETF demand has slowed, open interest in BTC options has increased, implying that buy-and-hold investors are waiting on the sidelines while volatility-focused investors are taking their place. Josef Tětek, Bitcoin ambassador at hardware wallet maker Trezor, told Cointelegraph that ETFs don’t necessarily signify institutional demand. Recent: Memecoin sector’s continued growth hinges on long-term utility Under U.S. regulation, ETFs are available to both institutions and retail investors. Thus, It’s impossible to speculate on the impact and relative influence of various demand drivers in the short term. “Taking a longer-term view and turning away from U.S. markets, there is rising demand for Bitcoin in countries across the globe as fiat currencies fail as a reliable store of value and even in some countries as a viable medium of exchange.” The post-halving supply shock notion was prevalent for most of February and March owing to heavy inflows into the spot ETFs despite GBTC outflows and new BTC price highs. However, just days before the halving, the ETF flows turned passive, and the BTC price also slid nearly 10% from all-time highs, prompting many to reconsider their supply shock theory in the short term. However, some experts are optimistic that BTC ETF demand will reach new highs as market conditions improve after the halving.

[INST] Base and SOL memecoin market caps plummet 19% and 12% in 24 hours [/INST] The total market capitalizations of memecoins on Solana and Coinbase's Ethereum layer-2 Base have witnessed a significant drop in the last 24 hours, plunging 12% and 19% respectively across the two networks. The memecoin sell-off arrived around the same time as a sharp decline in the price of Bitcoin (BTC), with the cryptocurrency falling 4.94% in the last 24 hours, per CoinMarketCap data. Bitcoin saw a sharp decline of 4.94% over the past 24 hours. Source: CoinMarketCap One crypto analyst said it’s common for memecoins to plummet when the price of BTC falters, however, another analyst linked the bearish trend to the humor simply running its course. “I guess it stopped being funny,” crypto analyst and founder of Quantum Economics Mati Greenspan told Cointelegraph. “Pretty fitting that the top came in on April Fool’s day,” he added. “There is too much value on memecoins, it’s gotta end at some point, it can’t keep going forever.” Solana's memecoin market cap stands at $8.29 billion, marking a 12% decrease within the last 24 hours, according to CoinGecko. The leading Solana-based meme token by total value — dogwifhat (WIF) — saw a 9% market cap decline on the day, amounting to a loss of $3.9 billion. Notably, WIF still accounts for nearly half of the total memecoin market share on Solana. Across eight major crypto exchanges, WIF currently touts a total of $484 million in open interest (OI). However, $2.76 million in leveraged positions have been liquidated over the last 24 hours, including $1.89 million in short positions and $872,460 in long positions, per CoinGlass data. WIF saw $2.29 million in liquidations, while Bitcoin had $172.54 million within the same 24-hour period Source: CoinGlass Base's total market cap dropped 19% over 24 hours to $1.47 billion. The native token of a new Layer 3 network dubbed “Degen” (DEGEN) on Base, suffered the most, witnessing a 26.14% drop in market cap to $436.5 million. The total crypto market cap — the value of all assets across the entire crypto sector — has also taken a 6.14% hit over the past 24 hours, currently standing at $2.45 trillion, per CoinMarketCap data. Greenspan suggested that while Bitcoin is finding strong support levels, memecoins are seeing fluctuations beyond critical key price points. “Bitcoin retracement is minuscule at the moment, memecoins are getting slaughtered,” Greenspan added. Bitcoin dropped 4.94% over the past day to trade at $65,910. Meanwhile, WIF’s price has dropped 10.3% to $3.67. Related: Base TVL doubles in a month as pundits tip memecoins to drive adoption Greenspan attributes this to the leading correlation that Bitcoin commands over other cryptocurrencies in the wider crypto market. “It has directional correlation, when Bitcoin is up, they go up more, and when Bitcoin is down, they go down more than Bitcoin. This will hold up for a very long time,” Greenspan says. Charles Edwards, the founder of quantitative Bitcoin and digital asset fund Capriole shared a similar sentiment, telling Cointelegraph that it's typical for memecoins of this nature to experience up to double the impact of Bitcoin's downturns. “Altcoins like this are high beta on Bitcoin, so if Bitcoin drops 7-10% as it has over the last day or two, expect coins like this to drop at least 1.5 -2x more,” Edwards told Cointelegraph, adding that excitement has been driving much of the prices for Solana and Base in recent times: “There’s just generally been a lot of hype for SOL and Base ecosystems, but I would argue that they have a lot less tangible value than BTC and Ethereum.” Crypto analyst and Crypto Banter podcast host Ran Neuner said in an April 2 X post that the memecoin market is nearing an oversaturation point. Magazine: Creating ‘good’ AGI that won’t kill us all: Crypto’s Artificial Superintelligence Alliance

[INST] US Bitcoin miner Giga Energy to launch facility in Argentina [/INST] Texas-based Bitcoin (BTC) miner Giga Energy has expanded its operations into Argentina as part of a move to utilize wasted energy from "natural gas flaring" on the South American nation's oil fields. Giga co-founder Brent Whitehead described the expansion as a “significant milestone” for his firm in a March 26 post on LinkedIn. “This move not only broadens our operational landscape but also aligns with our vision to mitigate flaring globally.” Gas flaring is the burning of the natural gas associated with oil extraction. Methane is released as part of the process, which Giga then converts into electricity to power its Bitcoin mining rigs. The expansion will see Giga place a large shipping container with thousands of Bitcoin miners on top of an oil well, divert the excess gas into generators, and then harnessing that energy to power Bitcoin mining rigs, according to a March 26 CNBC report. Giga’s Argentina mining site — based in the province of Mendoza — has been in a test phase since December and has already mined between $200,000 and $250,000 worth of Bitcoin, the firm’s other co-founder, Matt Lohstroh, told CNBC. However, the firm is still waiting to import all necessary equipment before it can fully scale the operation. Until then, the firm doesn’t expect to turn a profit. Argentina boasts the second-largest shale gas reserve in the world, according to a recently published academic paper from the University of Michigan. The firm’s Bitcoin mining operation will also reduce methane emissions, Whitehead told CNBC. “By capturing stranded natural gas to power modular data centers for energy-intensive computing, Giga is actively contributing to reducing global methane emissions.” IT services company Exa Tech will help Giga handle operations onsite, while oil and gas firm Phoenix Global Resources will provide the gas needed to power the Bitcoin miners. Giga first launched its Bitcoin mining operations in 2019 and has 150 megawatts worth of containers installed in its facilities in Texas and Shanghai, according to CNBC. Related: Riot, TeraWulf and CleanSpark best-positioned miners for Bitcoin halving — CoinShares The move comes as Bitcoin mining firms prepare for the upcoming Bitcoin halving event currently slated to occur sometime around April 20. The halving event will see the Bitcoin reward paid to miners sliced from 6.25 BTC ($439,000) to 3.125 BTC ($219,500). Notably, the event could see global hashrate shift from the United States to countries with cheaper electricity rates, according to Hashlabs Mining’s founder and chief mining strategist Jaran Mellerud. Mellerud told Cointelegraph that Argentina and Paraguay are the most promising countries for Bitcoin mining in South America. Magazine: Wolf Of All Streets worries about a world where Bitcoin hits $1M: Hall of Flame

[INST] Bitfinex launches volatility futures on Bitcoin and Ether [/INST] Cryptocurrency exchange Bitfinex is expanding trading tools in response to a volatility spike in crypto markets by introducing new Bitcoin (BTC) and Ether (ETH) volatility futures. Bitfinex’s derivatives platform Bitfinex Derivatives, provided by iFinex Financial, launched trading of two new perpetual futures contracts, the firm announced to Cointelegraph on April 3. The new contracts are based on the Volmex Implied Volatility indexes, the Bitcoin Implied Volatility Index (BVIV) and Ethereum Implied Volatility Index (EVIV). The indexes track 30-day expected volatility or the implied volatility of BTC and ETH options contracts. The Bitcoin Implied Volatility Index all-time chart. Source: TradingView “The creation of these indices allows our customers to not only monitor but actually trade the implied volatility of Bitcoin and Ether in a simple perpetual format,” Bitfinex’s head of derivatives, Jag Kooner, told Cointelegraph. Perpetual futures, also known as perpetual swaps or perpetuals, are a type of derivative contract that allows traders to speculate on the future price of an asset without an expiration date. According to Kooner, perpetual futures make the “most tradable format in the crypto space,” as other contracts rely on a dated structure. He noted: “Tracking the 30-day implied volatility in Bitcoin and Ether options contracts without the need to roll — i.e. dated futures — opens up the product to both retail and institutional investors alike.” The new contracts join over 60 perpetual futures contracts available on Bitfinex, including not only cryptocurrencies but commodities like precious metals and oil, FX and equities. “These new contracts will allow us to add implied volatility as another asset class,” Kooner stated. Related: Crypto derivatives firm Deribit moves to Dubai after winning VARA approval In options trading, implied volatility is a metric indicating how much the market expects the value of an asset to change over a certain period of time. If investors expect a lot of movement, the volatility rises, but if the expectation is that an asset’s price movement will be muted, then volatility contracts. Kooner mentioned the new trading tools are introduced in response to cryptocurrencies hitting new all-time-high prices. He noted: “With many crypto prices reaching new ATHs, the likelihood of increased volatility and significant drawdowns means there is more utility for these indexes than ever.” The news comes after cryptocurrency volatility broke all-time highs in March 2024. The Crypto Volatility Index (CVI), which tracks 30-day future volatility and serves as a “market fear index” to the crypto market, topped at 85 points on March 11. The Crypto Volatility Index all-time chart. Source. CVI Finance The CVI’s all-time high came just two days before Bitcoin reached its historic highs above $73,000 on March 13. At the time of writing, the implied crypto volatility measured by CVI values around 76. Magazine: NFTs are like nightclubs, crypto is a volatile religion: NFTStats, NFT Collector

[INST] OpenSea enables support for ERC-721C programmable earnings standard [/INST] 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

[INST] Base sets record high DEX volume day, surpassing $1B [/INST] 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

[INST] Visa Token Service reaches 1B tokens served in Asia-Pacific market [/INST] Visa announced on March 26 that its payment services in the Asia-Pacific region have served more than 1 billion tokens while bringing an “uplift” to the market of more than $2 billion last year. Visa Token Service (VST), launched in 2014, serves as a bridge between traditional banking account information and digital payment services such as Google Pay and Apple Pay. Essentially, VST replaces the traditional 16-digit credit/debit card number used by consumers to make purchases with a secure numeric token. This allows consumers to share financial information without exposing their private details or banking information. VST operates on VisaNet, the company’s proprietary network that, according to company documentation, is capable of handling more than 56,000 transaction messages a second. One of the more common use cases for tokenized payment methods is for cross-border payments and international travel. Exchanging cash or conducting wire transfers across currency types comes with myriad friction points. The use of tokenized assets such as cryptocurrency or tokenized payment services such as VST can avoid much of the hassle involved in these transactions. A recent study by Visa found that 97% of travelers to the Asia-Pacific region prefer to make payments by means other than cash. In 2023, this led to an average spend of $2,525 per trip. The “tokenization” of traditional assets into digital currencies and payment facilitators has grown significantly in the wake of COVID-19. As travel continues to flourish as the world recovers from the pandemic, the need for international payment methods with low fees and friction has become increasingly cited by consumers as driving factors in how and where they make purchases. Visa’s head of products and solutions for the Asia-Pacific region, TR Ramachandran, said in a press release that tokens “pave the way for the future of commerce.” “The innovation possibilities are immense with tokenised payment credentials that can unlock new and more personalised consumer experiences beyond physical Visa cards. We continue to build on the capabilities that modern credentials offer, together with our partners, to bring more value to the entire payment ecosystem.” Previn Pillay, head of merchant sales and acquiring for Asia Pacific at Visa, added that the company encourages “more merchants to adopt tokenised payments as this technology can make a direct impact to their top and bottom lines." Related: Visa, Mastercard could be key drivers for crypto in the year ahead

[INST] New Bitcoin whales, ETFs are up only 1.6% in unrealized profit — Is the BTC bottom in? [/INST] Institutional investors and Bitcoin exchange-traded fund (ETF) holders are barely up in unrealized profits, suggesting that this cohort is likely not to produce much selling pressure in the short term. So, was the dip below $60,000 the local bottom for Bitcoin (BTC) price? Bitcoin ETF holders only up 1.6% in unrealized profit Short-term Bitcoin whales, or investors holding at least 1,000 BTC for up to 155 days have an unrealized profit of just 1.6% on their holdings, according to CryptoQuant data. BTC unrealized profit ratio for whale and miner cohorts. Source: CryptoQuant In contrast, the cohort of old whales holding at least 1,000 BTC for over 155 days has a 223% unrealized profit, according to Ki Young Ju, founder and CEO of CryptoQuant. Ju wrote in an April 19 X post: “Not enough profit to end this cycle, imo [in my opinion].” Unrealized profits for small miners are at 131%, while the cohort of big mining firms is up 81%. Despite the significant unrealized profit, the five largest mining firms have not been selling in anticipation of the Bitcoin halving. Bitcoin selling by the top five mining firms slowed to a two-year low in the first quarter of 2024, when the five largest miners sold a total of approximately 2,000 BTC, according to an April 10 report by Bitwise. Bitcoin mined vs. Bitcoin sold by top 5 miners. Source: Bitwise Bitcoin price fell below $60,000 on April 16 and April 19, before bouncing back toward $65,000. Some technical analysts are anticipating that the BTC price may have formed a “double bottom” pattern. BTC/USDT, 4-hour chart. Source: TradingView Following this week’s dip, key technical indicators have also reset from overbought territory. Bitcoin’s relative strength index (RSI) on the daily chart, for example, is 46, which means that the asset’s price is neutral, down from 76 on March 17, when Bitcoin was overbought. BTC/USDT, 1-day chart. Source: TradingView The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes. Related: With 10 days to the halving, analysts predict $150K Bitcoin top Is the Bitcoin bottom in? Bitcoin’s retrace to below $60,000 earlier this week may have marked the local bottom for the market, argued Arthur Cheong, founder and chief investment officer of DeFiance Capital. Cheong wrote in an April 19 X post: “Very high chance that was the local bottom.” Additionally, Bitcoin price broke out from a significant channel on the four-hour chart. This suggests that $72,000 could be up next, according to popular crypto trader Satoshi Flipper’s April 19 X post. BTC/USDT, 4-hour chart. Source: Satoshi Flipper Institutional net inflows from the 10 U.S. spot Bitcoin ETFs have turned negative on the week of the halving. The Bitcoin ETFs saw over $147 million worth of cumulative net outflows on April 18, according to Dune. Bitcoin ETF net flows. Source: Dune The slowing ETF inflows were the main reason behind Bitcoin’s downward price action, which is set to turn bullish with the upcoming halving, according to Denis Petrovcic, CEO and founder of Blocksquare. He told Cointelegraph: “While some might anticipate a drop post-halving, the sustained institutional interest and decreased block rewards should keep BTC prices stable or slightly bullish, avoiding the typical ‘sell the news’ fallout.” Related: BRC-20 tokens bleed ahead of Bitcoin halving as trader focus shifts to Runes 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.

[INST] UK regulator scrutinizes Big Tech's role in AI industry [/INST] Regulators in the United Kingdom are keeping a watchful eye on the local artificial intelligence (AI) scene as Big Tech companies continue to dominate the space. On April 24, the U.K.’s Competition and Markets Authority (CMA) said it is in the process of collecting information from major market players to understand if the increasing collaboration between Amazon.com and AI developer Anthropic threatens local competition. In September 2023, Amazon announced an agreement to invest $4 billion into Anthropic in an effort to support its development of high-performing foundation models. Later, in March 2024, the web services giant said it fulfilled its $4-billion investment commitment, revealing a minority ownership stake in the company and the implementation of AWS as Anthropic’s cloud service provider. Now, both companies are facing a potential in-depth antitrust probe from U.K. regulators. This comes a week after the agency highlighted Big Tech’s “interconnected web” of deals and partnerships in the market. It also said it will be looking into a partnership between Microsoft and Mistral AI, one of Europe’s leading AI startups. This is in addition to an investigation by U.K. regulators over Microsoft’s multibillion-dollar collaboration with OpenAI, which was opened in December 2023. Related: Coca‑Cola pours $1.1B into generative AI experiment with Microsoft Joel Bamford, the executive director of mergers at the CMA, commented on the development: “We will assess, objectively and impartially, whether each of these 3 deals fall within UK merger rules and, if they do, whether they have any impact on competition in the UK.” However, back in January, Microsoft CEO Satya Nadella called its deal with OpenAI “pro-competition,” saying that partnerships are an avenue to having competition in the AI space against some of the players who are completely already integrated. The scrutiny from the CMA comes after its findings revealed a pattern of Big Tech companies funneling money into AI companies that could allow them to shape markets, creating concern for competition. The agency said it is trying to avoid past mistakes that have led to the rise of a select number of dominating platforms. Nonetheless, companies like Microsoft and Google have been pouring billions of dollars into AI development in countries around the world, including, the United Arab Emirates, Spain, Germany and France. Magazine: How to get better crypto predictions from ChatGPT, Humane AI pin slammed: AI Eye

[INST] Worldcoin will increase WLD supply by up to 19% in the next 6 months [/INST] Digital identity project Worldcoin will increase the supply of its WLD token by as much as 19% over the next six months through a swathe of private sales to non-United States institutions. In an April 23 blog post, Worldcoin shared that World Assets — a subsidiary of the Worldcoin Foundation in charge of token issuance — will sell up to 1.5 million WLD, about $8.2 million worth, every week through a series of “private placements to a select group of institutional trading firms” operating outside of the U.S. Worldcoin will be increasing the supply of its WLD token over the next six months. Source: Worldcoin “World Assets expects to sell between 0.5 million and 1.5 million WLD per week on average,” Worldcoin wrote. “The circulating supply of WLD will thus increase correspondingly.” An increase of up to 1.5 million WLD tokens per week for six months equates to a supply increase of 36 million new tokens hitting the market — currently worth around $197 million, per CoinGecko data. With a current circulating supply of 193 million WLD tokens, the private sales represent an 18.6% increase in the total available supply within the same time frame. Worldcoin noted it would negotiate with individual trading firms — especially those engaged in competition with each other — to execute private placements as close to “prevailing [WLD] market prices” as possible, to help minimize potential price impact on the token. At current prices, Worldcoin touts a market capitalization of $1 billion. However, this pales in comparison to its fully diluted value (FDV) of $54.5 billion — its total value if all tokens were circulating. Worldcoin is ranked as the 6th largest cryptocurrency by FDV. Source: Coingecko Related: Portuguese data regulator bans Worldcoin operations for 90 days Launched out of beta in July 2023, Worldcoin was founded by OpenAI CEO Sam Altman, current Wolrdcoin CEO Alex Blania, and Max Novendstern who also serves as the CEO of biometrics research firm Mana. Worldcoin is a crypto-based digital identity project that markets itself as providing a solution to identity issues brought about by rapid developments in AI as well as ushering in a novel universal basic income model by way of its native WLD token. Worldcoin users register a unique identity with the company’s “World App” by scanning their irises at machines referred to by the company as “Orbs.” Once users verify themselves at an Orb, they are then able to op in to claim free WLD tokens — depending on the country they signed up in. Buoyed by a wider rally in the price of AI-linked crypto projects, Worldcoin soared 435% from a launch price of $2.17 on July 24 to a peak of $11.74 on March 10. Worldcoin grew more than 450% in six months. Source: CoinGecko However, its price has tumbled more than 53% from its all-time high in the last few weeks and is currently changing hands for $5.49. AI Eye: How to get better crypto predictions from ChatGPT, Humane AI pin slammed

[INST] Will DOGE reach $1 this cycle? It's a 'crapshoot,' say analysts [/INST] With the rising number of memecoins entering the market, Dogecoin’s (DOGE) strong community could keep the cryptocurrency from fading into obscurity, but analysts are skeptical of traders' hopes that it could reach a price of one-dollar this cycle. A one-dollar price tag would represent a 36% increase from Dogecoin’s May 2021 all-time high of $0.73 and a 525% increase from today’s price of $0.16. DOGE has seen a 2.58% rise over the past 7-days. Source: CoinMarketCap Over the last week, DOGE posted a 2.58% gain — significantly less growth when compared to other large-cap memecoins within the same timeframe, per CoinMarketCap data. The next three largest memecoins by market capitalization all experienced notable upside price action in the last seven days, with PEPE (PEPE) up 43%, Shiba Inu (SHIB) up 17.42%, and Dogwifhat (WIF) gaining 14.43%. “DOGE is one of the most cyclical altcoins in the space,” pseudonymous trader Rekt Capital told Cointelegraph, adding that the rising popularity of other memecoins shouldn’t have a major impact on investor sentiment towards the largest memecoin. “Other meme coins launching doesn’t mean DOGE will suffer,” Rekt added. Pav Hundal, the lead analyst for Australian crypto exchange Swyftx offered a more skeptical position, saying that while DOGE has a “huge community of users,” any sharp spikes in price may lead to a significant sell-off from long-term holders. “A lot will depend on the decision-making of the millions of minnow investors who bought DOGE in 2021 and right now are sitting on paper losses,” Hundal told Cointelegraph, suggesting it’s uncertain whether the price will hit a dollar before the potential sell-off: “It’s a crapshoot. If most of these people decide to take quick profits during the cycle, you could start to see selling pressure ratchet up.” Hundal added that Dogecoin is not “seeing the deep books of the last cycle.” In the derivatives market alone it has seen a 56% drop in Open Interest (OI) since the beginning of April. OI in Doge— which measures the total value of all outstanding or unsettled DOGE futures contracts across exchanges — has declined from $2.15 billion on April 1 to its current level of $928.72 million, per CoinGlass data. Related: Is Dogecoin copying the 2020 fractal that sent DOGE price soaring 15,800%? Despite the decline in derivatives activity for the memecoin, Rekt Capital argued that the “cyclicality in DOGE’s chart,” suggests that Dogecoin will still “most probably” reach a price of one dollar this cycle. He reiterated that Dogecoin comes packed with “historical heritage” and has largely predictable cycles, which traders point out frequently on social media. Pseudonymous trader Blockchain Mane told his 15,300 X followers in an April 24 post that looking at past data, DOGE usually sees price growth during the month of May. Rekt also looked to potential social media posts from billionaire Elon Musk as a price catalyst, asserting that Musk is still “very interested in Dogecoin.” Since April 17, Musk has been interacting regularly with the well-known DOGE influencer DogeDesigner on X. In April 2023, Musk requested a United States judge to dismiss a $258 billion lawsuit brought against him by investors alleging he operated a pyramid scheme to promote Dogecoin. Although, Musk has recently hinted that his interest in crypto may have waned slightly. “I don’t spend a lot of time thinking about cryptocurrency. Hardly any at all,” Musk told Ark Invest CEO Cathie Wood in an X space on Dec. 2023. Magazine: ChainLinkGod was in High School when he started the account! X Hall of Flame

[INST] PayPal proposes ‘cryptoeconomic’ rewards for sustainable Bitcoin miners [/INST] International payments giant PayPal has proposed to make sustainable Bitcoin (BTC) mining more economically attractive by rewarding miners through incentives layered on top of the Bitcoin network. PayPal’s Blockchain Research Group, in collaboration with Energy Web and DMG Blockchain Solutions, has proposed using “cryptoeconomic incentives” to encourage Bitcoin miners to use low-carbon energy sources, according to an April 22 blog post. The firm hopes that the experimental incentive contributes to further discussion and innovation around Bitcoin and is seeking industry feedback on potential improvements. Under the proposal, “green miners” that use sustainable energy sources would be accredited with special “green keys,” which are associated with their public keys. Bitcoin transactions would be preferentially routed to these green miners by attaching lower fees but with an additional locked BTC reward in a multisig payout address that only the green miners can claim. “Green miners will be incentivized to mine these transactions since they will be the only ones eligible for the additional ‘locked’ BTC reward,” it explained. This incentivizes rational profit-driven miners to operate with low-carbon sources to get the extra BTC rewards. Green miner transactions. Source: PayPal Blockchain Research Group According to the paper, the proposed solution will leverage Energy Web’s “Green Proofs for Bitcoin” platform for miners to get certified based on their clean energy and grid impact scores. The green miners can register and share their green keys on the platform as participants of the incentive program. PayPal BRG said that it has successfully tested the proposed solution with Bitcoin miner DMG Blockchain Solutions Inc. During the test, it broadcasted multiple low-fee transactions to observe effectiveness under different levels of on-chain transaction volume. Depending on transaction volume, “these transactions would either take a long time to confirm or eventually be dropped by the network,” it observed before adding, “This would increase the chances for green miners to pick up these transactions.” Related: Biden is asking Congress to kill the American Bitcoin mining industry An alternative approach would involve exploring private channels such as the Lightning Network or smart contracts, but there would be trade-offs such as more complex implementation, it added. “The solution outlined here aims to achieve a good degree of decentralization, ease of implementation and trust independence while distributing incentives,” PayPal BRG concluded. Cointelegraph contacted PayPal for further details on potential implementation but did not receive an immediate response. Magazine: Jameson Lopp: Skeptical of spot Ether ETFs, BTC price prediction dilemma: X Hall of Flame

[INST] BlackRock ETF close to overtaking Grayscale, despite second-lowest daily inflows [/INST] 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

[INST] Crypto derivatives firm Deribit moves to Dubai after winning VARA approval [/INST] 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

[INST] Prisma Finance $11.6M hacker claims it was a ‘whitehat rescue’ [/INST] 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

[INST] Nifty News: PayPal removes NFT protections, Adidas NFT sneakers and more [/INST] PayPal removes protections for NFT buyers and sellers Multinational payment services firm PayPal is silently taking down protections for purchases related to nonfungible tokens (NFTs). On May 20, amended policies will take effect, removing buyer and seller protection coverages for NFT purchases. In its upcoming policies page, PayPal said that it has revised its Purchase Protection Program to exclude NFTs from eligibility. Excerpt from PayPal’s revisions on NFT protections. Source: PayPal Apart from this, the company also highlighted that it’s also changing its Seller Protection Program to exclude NFT transactions worth $10,000.01 or above. This means that PayPal’s guarantee will no longer cover NFT sales over $10,000 against false claims, chargebacks, or scams that could lead to monetary losses. Adidas and Stepn release NFT sneakers Move-to-earn game Stepn announced that it partnered with popular shoe retailer Adidas to release co-branded sneaker NFTs on the Solana network. Stepn said in the announcement that the collaboration is “long-term” and aims to provide their community with a full experience through multiple activations. According to Stepn, the collaboration aims to offer digital assets that promote healthier and more active lifestyles. The sneakers will cost about 10,000 GMT tokens (the project's native coin), worth about $2,500, according to coin information website CoinGecko. Related: Nifty News: LA’s Bored Ape lovers go hungry, Bitcoiners sell $500 Game Boy dupe and more Louis Vuitton drops $8,400 phygital varsity jacket Fashion brand Louis Vuitton announced the drop of a varsity jacket worth around $8,400, which will have both the physical garment and a corresponding digital collectible NFT. The jacket is designed by the American record producer and singer-songwriter Pharrell Williams and is a part of the fashion brand’s ongoing Via NFT project. Digital representation of the limited edition varsity jacket released by Louis Vuitton. Source: Louis Vuitton The jacket is made from suede buckskin and bears an embroidered logo of the brand. Users can purchase the jacket through a token-gated site and will receive its physical version later in November or December. The jacket is the third product released by the fashion brand exclusively to its Via NFT holders. The first product was a bag worth about $9,000. This was followed by a $6,400 digital mini trunk that was also sold exclusively to token holders. Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis

[INST] Crypto market stumbles amid arrest of Samourai Wallet founders [/INST] Bitcoin (BTC), Ether (ETH) and major altcoins briefly tumbled amid news of Samourai Wallet founders’ arrest by the United States Department of Justice (DOJ) on the backdrop of ongoing Middle East tensions and post-halving volatility. On April 24, Cointelegraph reported that cryptocurrency wallet Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill will each face one count of conspiracy to commit money laundering and one count of conspiracy to operate an unlicensed money transmitting business. Within an hour of the DOJ announcement, Bitcoin’s price dropped 3.6%. Its price dipped below key support levels to $63,710 before recovering slightly to $64,546, per CoinMarketCap data. Bitcoin’s price dropped by 3.6% following the DOJ announcement. Source: CoinMarketCap Meanwhile, Ether dropped 2.51% within the same time frame but failed to bounce back, declining further to $3,158. The largest altcoins also took a hit; meanwhile, PEPE (PEPE) saw a brief 6.4% drop, Shiba I (SHIB) experienced a 2.7% decline, and Dogecoin (DOGE) briefly dipped 3.2% following the announcement. The sharp price drops in the top two cryptocurrencies by market capitalization triggered widespread liquidation of long positions. Market price drops across the board forced heavy long position liquidations. Source: CoinGlass In the last 12 hours, Bitcoin saw $33.08 million worth of long positions liquidated; Ether had $29.88 million, and approximately $23 million in long positions were liquidated across the rest of the crypto market, per CoinGlass data. The crypto market decline also comes in the backdrop of geopolitical tension further escalating in the Middle East. On April 24, the Israeli military struck approximately 40 locations linked to Hezbollah in Southern Lebanon, according to local reports. The crypto community was already largely anticipating some short-term volatility following the Bitcoin halving event, which happened just days earlier on April 20. Pseudonymous crypto trader Rekt Capital told their 456,400 X followers on April 24 that they predict the next bull market peak not to occur until late 2025, approximately 546 days after the halving. Related: Bitcoin analysts agree that BTC has ‘a lot further to run’ The fluctuations came despite overall positive investor sentiment in the crypto market. According to the Fear & Greed Index, which measures crypto market sentiment, the “greed” score rose to 72 this week, a 15-point increase from last week. The crypto community criticized the recent arrests, fearing it could be another attempt by the U.S. government to crack down harshly on crypto. “These developers face up to 25 yrs in prison for writing code. The US is sending a message. No transaction will be private,” crypto analyst Ryan Adams stated in an April 24 post. Meanwhile, Fred Krueger claimed on the same day in an X post that the arrest was “not a good look for Bitcoin in general.” Crypto commentator Luke Mikic told his 26,800 X followers that this “attack by the US Government on Samourai wallet is bigger than most people think.” Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto 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.

[INST] Australians wouldn’t value retail CBDC for its privacy or safety, RBA finds [/INST] The Reserve Bank of Australia (RBA) has examined the value the public would place on a retail central bank digital currency (CBDC). It looked at willingness to pay for the use of CBDC in a digital wallet and the privacy benefits that CBDC might offer. The RBA described its hypothetical CBDC as “a digital currency that is even safer and potentially more private than commercial bank deposits” and used a discrete choice experiment to assess public valuations of goods without markets. Source: Resist CBDC The research considered fees for privacy and safety options of up to 5 Australian dollars (AUD), which is equivalent to about $3 U.S. dollars. It added that that users paying 5 AUD per year would generate about 100 million AUD in fees — not a significant enough amount to “overwhelm the range of other considerations relevant to the CBDC issuance decision.” Related: Aussie federal budget reaffirms BTC won’t be treated as foreign currency The safety value of a CBDC lies in its lack of credit risk, which is inherent in bank deposits, as banks can fail. Using data from 2022, the RBA was able to demonstrate that willingness to hold an account with the RBA instead of a commercial bank is in the negative — people would be willing to pay (less than an Australian dollar per year) not to do it. According to the RBA: “This is consistent with bank deposits in Australia already being perceived as a safe form of money, and physical cash issued by the Reserve Bank of Australia continuing to be available as an alternative option.” Public resistance to CBDC could also color those findings, the RBA said. The survey assumed the use of a disintermediated system in which the RBA would open accounts for members of the public. Most live and trial CBDCs are intermediated and make us of the services of a financial institution to provide services for CBDC users. The report noted that some policymakers expect to design an intermediated CBDC, which would have different privacy options. Estimates of willingness to pay for CBDC privacy and safety options, Source: RBA Privacy data were much more complex. Previous research has suggested that people highly value privacy, but frequently forgo privacy measures in practice, making its value hard to assess. The results obtained showed a strong preference for sharing information with the financial crime authority Australian Transaction Reports and Analysis Centre and a commercial bank, which was worth about 5 AUD more than allowing data sharing with the RBA. In short, the study finds little public support for a retail CBDC. The RBA has made numerous previous studies of CBDC, most of which reached positive conclusions. Those studies mainly looked at wholesale CBDC use cases. Magazine: Wealthy, isolated, and incredible beaches: Perth Crypto City Guide

[INST] Thailand’s biggest crypto exchange goes on hiring spree ahead of IPO [/INST] Bitkub Capital Group Holdings, the owner of Thailand’s largest cryptocurrency exchange, is hiring financial advisers to facilitate its planned initial public offering (IPO) listing. Bitkub aims to go public on the Stock Exchange of Thailand (SET) in 2025, CEO Jirayut Srupsrisopa told Bloomberg on April 1. The upcoming public listing aims to raise new capital and boost Bitkub’s profile. In addition to hiring advisers, Bitkub is now actively expanding staff despite cutting its headcount by 6% in 2022 and 2023. Jirayut said that the Thai exchange is looking to add 1,000 employees by 2025, doubling the workforce from the current 2,000 people. Bitkub initially announced plans to launch an IPO in Thailand in a 2023 shareholder letter without disclosing details. Based in Bangkok, Bitkub is the largest crypto exchange in Thailand, accounting for 77% of the market share as of December 2023, according to data from HashKey. The exchange handles roughly $30 million in daily trading volumes. Other major Thai crypto exchanges include Upbit — which launched in 2021 — along with Bitazza and Zipmex. However, Zipmex suspended trading activity in November 2023 following a crackdown from local regulators. Market share of top four Thai crypto exchanges as of 2022. Source: CoinGecko Thailand has emerged as a major crypto player in recent years. It reportedly had more than 13 million crypto users as of 2023, accounting for roughly 18% of its total population, according to data from Statista. It is projected that this figure will reach 17.7 million users in 2028. Amid growing adoption, cryptocurrency firms have been moving to grab market share from Bitkub in Thailand. A major global rival, Binance, officially launched its local subsidiary in January 2024, and is planning to open to the public in 2024. Thailand’s Kasikornbank — one of the largest in the country — acquired a majority stake in the Satang crypto exchange in October 2023. Related: Thailand approves personal income tax exemption for token earnings The new details about Bitkub’s planned IPO come after the exchange sold a 9.2% stake in its crypto exchange unit — called Bitkub Online — to tech holding company Asphere Innovations in July 2023. At the time, the stake was worth 600 million baht, or $16.5 million. According to Jirayut, Bitkub expects Bitkub Online’s valuation to rise as trading volumes on the platform near levels not seen since the last crypto bull market in 2021. Bitkub Online accounts for roughly 80% of Bitkub Capital’s earnings. In 2022, SCB X, a financial firm that owns the nation’s largest bank by market value, canceled a 17.85 billion baht plan to acquire a 51% stake in Bitkub Online amid increased regulatory scrutiny. Magazine: KuCoin’s desperate $10M airdrop, 1 tweet raises $37M for memecoin: Asia Express

[INST] Binance’s $1B emergency ‘SAFU’ fund now makes up 3% of UDSC supply [/INST] The world’s largest crypto exchange, Binance, is converting its Secure Asset Fund for Users (SAFU) into Circle’s USD Coin (USDC) stablecoin and now holds 3% of its circulating supply. The company announced the move on April 18, stating that “we are transferring 100% of SAFU’s assets to USDC” but didn’t elaborate on why, other than it was “making use of a trusted, audited, and transparent stablecoin for SAFU,” which further enhances its reliability and ensures it remains stable at $1 billion. The exchange’s Secure Asset Fund for Users is an emergency insurance fund established in 2018 to protect Binance users in extreme situations, such as exchange hacks, where users could be reimbursed for unforeseen losses. According to Etherscan, the SAFU wallet address made a transaction of 800 million USDC on Ethereum at 2:35 am UTC for a transaction fee of just $1.88. There was also a transfer of 1.36 million BNB (BNB) worth around $754 million and a 16,277 BTC transfer as part of the conversion process. The billion-dollar Binance insurance fund now represents around 3% of the $32.6 billion supply of Circle’s stablecoin. It is the second conversion of the fund in just over a year. In March 2023, Binance announced that it had replaced the Binance USD (BUSD) holdings in the SAFU with Tether (USDT) and TrueUSD (TUSD). The move at the time was in response to a regulatory crackdown on BUSD issuer Paxos, which announced that it would stop minting the exchange-backed stablecoin. Related: Crypto exchange insurance funds surge more than $1B amid bull market Tether remains the world’s dominant stablecoin, with a circulating supply at record levels of $108 billion, giving it a market share of 69%, according to CoinGecko. Circle’s USDC is the second largest stablecoin, with a market share of around 20%, with its supply increasing by 33% since December 2023. Related: 'China is about to start bidding' — Will Hong Kong Bitcoin ETFs spark the halving rally?

[INST] Nigeria’s Binance crackdown threatens Web3 industry [/INST] Nigeria is feeling the consequences of actions against Binance executives, with investors withdrawing from deals and partnerships, particularly in the web3 sector. They mention Nigeria’s perceived lack of safety for business and government hostility, citing the Binance case as evidence, according to Lucky Uwakwe, the chairman of Nigeria's Blockchain Industry Coordinating Committee (BICCoN). In an interview with Cointelegraph, Uwakwe, head of Nigeria’s intercommunity working group involving Blockchain Nigeria User Group (BNUG), Cryptography Development Initiative of Nigeria (CDIN), and Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), expressed investors’ concerns. According to Uwakwe, investors worry about potential repercussions similar to Binance’s fate when investing in local Web3 companies. He pointed out that already invested parties are gradually divesting. Binance executives Tigran Gambaryan and Nadeem Anjarwalla came to Nigeria in February following claims that the exchange manipulated the country’s fiat currency, the naira. The executives were detained and slammed with five counts bordering on money laundering after a meeting with the Nigerian government over Binance’s regulatory woes. Uwakwe stated that the government’s approach to the Binance issue is adversely impacting the entire nation. By pursuing fines against Binance, the government is essentially undermining the entire industry, sacrificing potential growth for short-term measures. When asked about the possibility of the current trial resulting in an acquittal for the Binance executives, Uwakwe expressed skepticism. He believes the executives face slim chances of acquittal unless certain conditions are met internally by the company, according to the government’s perspective. He said, “The chances are probably 90-10, 90 for the government,10 for the Binance executives in question…” Uwakwe emphasized that even in the event of the Binance executive’s acquittal by the judge, there’s a strong possibility that the Nigerian government may disregard the court ruling. This pattern has been observed before, especially in cases perceived to threaten the country’s stability. Related: Binance executive tracked to Kenya, extradition underway Uwakwe addressed a potential question from the international community about why the Nigerian crypto community isn’t vigorously advocating for the release of the Binance executives. He suggested that if Binance had engaged relevant associations earlier, they would have garnered support from pressure groups and lobbying efforts. The Nigerian government has often been at odds with cryptocurrency exchanges. Binance ceased operations using the naira on March 8 after Nigerian government criticism of crypto exchanges singled it out in February. In August 2022, Nigeria was named the most crypto-obsessed country in the world by the number of Google searches for “cryptocurrency” or “buy crypto.” Magazine: Bitcoin hits new highs, SEC delays options decision, and stablecoin bill looms: Hodler’s Digest, March 3–9

[INST] Restaking could introduce ‘hidden risks’ to Ethereum — Coinbase [/INST] Ethereum restaking could form the “bedrock” for a wide range of new decentralized applications on the blockchain, but it could also introduce several new hidden risks, says Coinbase. In an April 2 research report, Coinbase analysts David Han and David Duong noted several risks with restaking and the issuance of so-called liquid restaking tokens (LRTs). Ethereum restaking protocol Eigenlayer allows users to earn extra rewards — LRTs — by securing actively validated services (AVS) by staking derivative tokens, which are given to those who have already staked Ether (ETH) through liquid staking protocols such as Lido (LDO). When the Eigenlayer protocol is first launched, the analysts explained the restaking process should be “fairly straightforward,” but a feature of EigenLayer is that staked tokens committed to one AVS can again be staked to another AVS’. “While this can increase earnings, it can also compound risks,” the analysts said, as it allocates the same funds to similar validators for increased yield. Secondly, the addition of LRTs means restakers could become concentrated into more high-risk providers offering the highest yields. “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. The analysts also warned that the LRT providers and decentralized autonomous organizations (DAOs) would be incentivized to “maximally restake multiple times to remain competitive.” Related: Vitalik Buterin shares the next steps for Ethereum Purge Despite the risks, the analysts said EigenLayer’s restaking protocol looks “poised to become the bedrock for a wide range of new services and middleware on Ethereum, which, in turn, could generate a meaningful source of ETH rewards for validators in the future.” Han and Duong also predicted that despite the amount of restaked ETH continuing to grow in the long term, there could be a reasonable short-term drop in Eigenlayer’s TVL when point farming comes to an end or if early AVS rewards are below expectations. On March 6, Eigenlayer flipped lending giant Aave to become the second-largest DeFi protocol, commanding a total of $11.5 billion in total value locked (TVL) per DefiLlama — second only to Ethereum liquid staking protocol Lido. Eigenlayer now holds $11.5 billion in TVL. Source: DeFiLlama The market enthusiasm for restaking has already been met with controversy and Ethereum developers warn it could create a concerning amount of leverage. Restaking proponents, meanwhile, say it offers further rewards to those who have already staked their ETH. Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

[INST] Bitcoin ETF activity to remain robust until the halving: Santiment [/INST] Spot Bitcoin (BTC) exchange-traded fund (ETF) flows are likely to remain high until the Bitcoin halving later this month, according to on-chain analytics firm Santiment. The blockchain data firm observed that Bitcoin ETF volume hasn’t slowed since the asset hit an all-time high in mid-March, adding, “Trader activity is still notably higher than the turning point that began in late February after an influx of individual trading began” in a post on X on April 8. Santiment speculated that it is a “likely foregone conclusion” that the high ETF activity will continue leading up to the Bitcoin halving in around two weeks. The Bitcoin halving event, which happens every four years, is estimated to occur on April 20. According to Santiment, there has been $3.19 billion daily volume among the top seven ETFs. However, “it will be interesting to see whether a drop-off in ETF volume and on-chain volume will occur directly afterward,” it added. Lucas Kiely of Yield App recently suggested that the accumulation of Bitcoin via ETFs could reduce the likelihood of large swings after the halving. Bitcoin ETF volumes. Source: Santiment Spot Bitcoin ETF volumes soared to $111 billion in March, almost tripling the volume for the previous month, highlighting consistent interest in the products. According to Farside Investors, Bitcoin ETF inflows picked up at the end of last week, with two days of more than $200 million in net inflow on April 4 and 5. That followed a couple of low days earlier in the week with an $85.7 million outflow on April 1 in what appeared to be a trend reversal from a strong few days in late March. Grayscale continues to drag the aggregate figures down with consistent outflows every trading day since it converted to a spot ETF in mid-January. Last week, the firm’s GBTC fund shed $738 million, bringing the total BTC outflow from the product to 294,313 BTC. Related: Bitcoin ETFs set for ‘even bigger wave’ in next few months: Bitwise Industry executives remain confident, however. Ripple CEO Brad Garlinghouse predicts that the total crypto market value will double this year, primarily driven by spot ETFs and the Bitcoin halving. “I’m very optimistic. I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money,” he told CNBC on April 7. Magazine: Wolf Of All Streets worries about a world where Bitcoin hits $1M: Hall of Flame

[INST] Munchables hacker returns $62.8M Ether without ransom [/INST] It took nearly eight hours for the Munchables hacker — a Munchables developer — to have a change of heart and return $62.8 million worth of Ether (ETH) stolen in an exploit without demanding a ransom. On March 26, roughly around 9:30 pm UTC, Ethereum-based nonfungible token (NFT) game Munchables reported a hack that drained over 17,400 ETH from the GameFi app. Munchables, along with blockchain investigators such as PeckShield and ZachXBT, began tracking the movements of the stolen funds in an attempt to intercept them. ZachXBT claimed the exploit stemmed from the Munchables team hiring a North Korean developer known by the alias “Werewolves0943.” On March 27, 4:40 am UTC, Munchables identified the hacker as one of its developers. An hour of negotiations led the former developer to agree to return the hacked funds. In an official statement, Munchables said: “The Munchables developer has shared all private keys involved to assist in recovering the user funds. Specifically, the key which holds $62,535,441.24 USD, the key which holds 73 WETH, and the owner key which contains the rest of the funds.” The creator of the Ethereum layer-2 blockchain Blast, who uses the pseudonym Pacman, thanked ZachXBT for his support, as he announced that “the ex-Munchables dev opted to return all funds in the end without any ransom required.” As Munchables was built on top of the Blast blockchain, Pacman will work with the Munchables team to help redistribute the stolen — now recovered — funds. In the meantime, victims of the hack are advised to ensure they follow only communications from official sources to avoid falling for refund scams. Related: Hacker moves $10M from 2023 phishing incident to Tornado Cash The exploit occurred nearly four days after a hacker stole roughly $24,000 from four different decentralized finance (DeFi) aggregator ParaSwap addresses. The protocol managed to recover the funds and began refunding users. ParaSwap, aided by white hat hackers, successfully resolved the issue and revoked permissions for the vulnerable AugustusV6 smart contract. In total, ParaSwap revealed that 386 addresses were affected by the vulnerability. However, 213 addresses have yet to revoke allowances for the flawed contract as of March 25. Magazine: 5 dangers to beware when apeing into Solana memecoins

[INST] AaveDAO debates Dai collateral limit after $600M mint with eUSD backing [/INST] The Aave decentralized autonomous organization (AaveDAO) continued to debate limits to Dai (DAI) collateral on April 5, as risk management consultants Chaos Labs offered a new proposal to reduce Dai loan-to-value ratios (LTV) by 12%. Previously, Aave Chan initiative founder Marc Zeller had argued for a 75% reduction. Aave is a crypto lending platform that runs on multiple blockchain networks. It allows borrowers to take out loans in one cryptocurrency while depositing another as collateral. It is governed by holders of the Aave token, who collectively form AaveDAO. Dai is an algorithmic stablecoin backed by multiple forms of crypto collateral, including USDC (USDC), Ethereum (ETH), and others. Dai is issued by the Maker protocol, which is governed by MakerDAO. MakerDAO was criticized on the AaveDAO forums on April 2 after it minted 600 million DAI and deposited it in a vault with decentralized lending protocol Morpho. An April 1 proposal on the MakerDAO forums attempted to increase the vault's minting limit to 1 billion DAI, potentially leading to an even greater supply of the stablecoin. Morpho vault with 100 million Dai. Source: Morpho. MakerDAO claims that the newly minted Dai will be lent out to end-users who deposit stablecoin eUSD to the Morpho protocol. Thus, they claim that the new coins will be properly backed by stable collateral. In response, critics claim that eUSD is a risky asset and that MakerDAO is being overly aggressive in using it for collateral purposes. On April 2, Zeller proposed that the Aave LTV for Dai be set to zero instead of its current 75%, which would essentially ban Dai from being used as collateral for any new Aave loans. Zeller claimed this change is necessary because of “concerns regarding the inherent risk nature of DAI as collateral” after its alleged “aggressive actions.” The proposal is still in the discussion stage and has not been put to a formal vote. On April 5, AaveDAO’s risk management consultant, Chaos Labs, analyzed the risks posed by the new vault and suggested a 12% reduction in LTV instead. This would still allow borrowers to use Dai as collateral in new loans but would require them to hold a greater collateral-to-loan ratio to compensate for the perceived increased risk. Currently, Dai depositors to Aave can only borrow 75% against the value of their Dai. The proposal from Chaos Labs would lower this amount to 63%. Related: Aave deploys DeFi protocol on BNB Chain One of the key issues in the debate is the nature of stablecoin eUSD, which is issued by the Ethena protocol. According to Ethena documents, eUSD is backed by two components: an amount of Lido Staked Ether (stETH) that market makers deposit into the protocol and a corresponding futures short position that hedges the underlying ETH represented by this deposit. Ethena protocol official website. Source: Ethena. This backing should be “delta neutral” or incapable of declining or increasing in value, according to the documents. That’s because, if the price of ETH increases, the value of the stETH deposit should increase while the value of the short futures position should decrease, causing gains and losses to net at zero. On the other hand, a decline in the price of ETH should have the opposite effect, causing a loss in the value of the deposit that exactly equals a gain in the value of the short position. Either way, the value of the eUSD token should remain stable regardless of which direction ETH price goes. In addition, the documents claim that holders can earn a yield from staking eUSD, which purportedly comes from two sources: First, the stETH deposit earns staking rewards from the Ethereum network, which can be captured by eUSD stakers. Second, the futures price for ETH is currently much higher than its spot price, creating a “basis” or spread between them, which can also be captured by stakers. According to the protocol’s official website, eUSD staking pays a yield of approximately 37% as of April 5. Despite this characterization of eUSD as delta-neutral, critics have claimed that it can become under-collateralized in two different circumstances. First, in a crypto bear market, the price of ETH futures could become lower than the price of spot ETH. If this occurred, the yield on the position would turn negative, implying that stakers would need to pay to hold eUSD instead of receiving payments for holding it. Critics say this would lead to a wave of redemptions, causing bad debt in the system and leading the eUSD value to go below $1. In an April 2 thread on X, Yearn.finance founder Andre Cronje argued that eUSD must eventually become “unbacked” due to “negative funding rates,” stating: “while things are going great now (because market is positive and shorting funding rates are positive [because everyone is happy being long]), eventually that turns, funding becomes negative, margin/collateral gets liquidated, and you have an unbacked asset.” Second, a problem with Lido’s staking network could lead stETH’s value to decline relative to ETH. This could cause the collateral backing each eUSD to be worth less than $1. Decentralized finance educator BowTiedIguana expressed this concern in a reply to Cronje’s post: “One issue that I've never seen acknowledged or discussed is that ETH is not a perfect hedge for stETH. If something bad happens on the tech side (low probability but very high impact) the unstaking queue becomes very long and the prices of the two assets diverge significantly.” On April 3, Ethena protocol developers hosted a public discussion on X with MakerDAO founder Rune Christenson and Morpho development team CEO Paul Frambot, along with Zeller from Aave Chan. In the discussion, Zeller argued that MakerDAO and Morpho did not have adequate guardrails to protect Dai from its exposure. The rest of the participants claimed that eUSD poses some risk to the Maker protocol but that the development teams from all three projects (Maker, Ethene, and Morpho) were managing this risk properly. Related: Maker’s ‘Endgame’ readies launch, aims for 100B DAI to take on Tether The proposal to reduce Dai LTV on Aave is still being discussed, and no formal snapshot vote has yet been created or scheduled.

[INST] Omni Network token falls 55% after airdrop, fake token completely rugs [/INST] The Omni Network’s ERC-20 token OMNI dropped over 55% nearly 18 hours after its airdrop, shaving off over half its market capitalization. Meanwhile, a fake token sporting the same name has just been “rug pulled,” with its price dumping 100%. The layer-1 testnet blockchain aiming to connect Ethereum rollups doled 3 million OMNI — 3% of its 100 million token supply — to its community contributors on April 17, starting at 11 am UTC. OMNI, market cap was $560 million. Within half an hour, OMNI dropped nearly 30% from $53.80 to under $39 and has continued to slide to around $24 — an over 55% drop. The current market cap is $267.5 million, giving it a fully diluted valuation of about $2.57 billion, according to CoinGecko. OMNI’s price since its airdrop over 16 hours ago has continued to slide. Source: CoinGecko The airdrop saw early testnet users, builders and community participants get 50% — 1.5 million OMNI — of the latest airdrop, worth about $36.2 million. Eligibility was determined via a snapshot on April 3. The remaining tokens were split variously between EigenLayer restakers and some nonfungible token (NFT) projects including Pudgy Penguins, among others. OMNI’s airdrop split, some tokens went to Pudgy Penguin NFT holders. Source: Omni Network Omni Network outlined on April 15 that 9.27 million OMNI — 9.27% of the total supply — was being set aside as public launch tokens used for “launch pools and liquidity.” OMNI’s full token distribution plan. Source: Omni Network The largest chunk of OMNI — 29.5 million at 29.5% of its supply — will be set aside for “ecosystem development” and handed out initially at the discretion of the blockchain’s backing firm, the Omni Foundation. Nearly a quarter of all OMNI — 23.3 million — was earmarked for investors and advisers. Advisers today received 625,000 OMNI worth $15 million — another 875,000 OMNI will come after a year, then 437,500 OMNI every six months for two years. Investors’ tokens were on a three-year unlock schedule, with nearly 6.7 million tokens — worth almost $161 million today — to come after 12 months, with the rest unlocking every six months until their allocation is exhausted. Related: Withdrawals from real estate betting platform Parcl hit $74M after airdrop Meanwhile, the developers of a fake OMNI token using the same ticker have pulled a $398,000 exit scam. Blockchain security firm PeckShield wrote in an April 18 X post that a fake token dropped 100% after the deploying smart contract dumped over 1.7 quadrillion tokens for 132 Wrapped Ether (WETH). Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)

[INST] Once unprofitable BTC miners are turning their machines back on — Analyst [/INST] Bitcoin miners have likely put their older crypto-mining machines back to work in the first quarter, contributing to a record-setting hash rate as Bitcoin’s price skyrocketed to a new all-time high in early March. “Improved market conditions have encouraged miners who were previously unprofitable at lower hashprice levels to come back online,” said Nico Smid, founder of Digital Mining Solutions in the firm’s first quarter Bitcoin mining review, published on April 2. Smid told Cointelegraph he has spoken with industry players who have observed an uptick in less efficient miners turning back on. “The fact that the network became less efficient in comparison to the 1st of January (30.4 J/TH) [...] supports the thesis that less efficient machines are coming back online." Bitcoin’s hash price level has moved in a similar trajectory to Bitcoin’s (BTC) change in price, which has increased 56.8% in 2024 to $66,280 at the time of publication. Switching back on these less efficient Bitcoin miners may have contributed to a 14.7% increase in Bitcoin hash rate since the start of 2024. “This growth is equivalent to adding 375,000 Antminers S21 200 TH/s to the network.” The deployment of Bitmain S21s and other latest-generation mining equipment also played a role in driving Bitcoin hash rate growth over the first three months. Bitcoin’s hash rate peaked at 631 exahashes per second (EH/s) on a 7-day moving average on March 11 — a little less than a week after Bitcoin surpassed its previous all-time high price of $68,990. Bitcoin’s change in hash rate in 2024. Source: Digital Mining Solutions Bitcoin went on to set a new all-time high of $73,738 three days later on March 14, according to CoinGecko. Related: Bitcoin miner bankruptcies will be less common this cycle — Hut8 CEO Interestingly, Smid noted miner revenues reached a new all-time high on March 10 despite a steady decline in transaction fees since the start of March. “While this is beneficial for individuals seeking to send quick transactions, it presents a less favorable scenario for miners who have grown accustomed to high transaction fees over the past few months.” Change in total transaction fees on Bitcoin in 2024. Source: Digital Mining Solutions While less efficient miners are turning back on, the cost of application-specific integrated circuit (ASIC) machines continues to stabilize as many Bitcoin miners are holding off on new investments as the halving event fast approaches. “Miners seem to be adopting a ‘wait and see’ approach as the halving event approaches,” noted Smid, who cited an ASIC Jungle survey which found 65% of customers are postponing the purchase of new miners until after the halving. The Bitcoin halving is currently slated for April 20 when block 840,000 is reached. The event will reduce miner rewards from 6.25 BTC ($414,000) to 3.125 BTC ($212,000) at current prices. Magazine: This is your brain on crypto — Substance abuse grows among crypto traders

[INST] YouTuber Logan Paul argues CryptoZoo ‘isn’t a scam’ in new documentary [/INST] YouTuber Logan Paul has argued that his infamous CryptoZoo project, which resulted in many investors losing money, was not a scam. In a new documentary, 5 Months with Logan Paul, journalist Graham Bensinger sat down with Paul to get his side of the story on the CryptoZoo nonfungible token (NFT) gaming project. The duo spoke about the many allegations hurled at the internet celebrity, with Bensinger reiterating the point that the exposure brought by Paul “led people to lose money.” Logan Paul answering questions about CryptoZoo. Source: YouTube Paul admitted that there’s an element of truth to the statement. However, the YouTuber argued it was not a scam. Paul added: “Everything you just said has an element of truth to it. Here’s the problem. What you just described isn’t a scam. I took on a project that I was simply incapable of handling at the time.” Paul argued that he also lost money in the project, seemingly implying he was also a victim. “I didn’t make any fucking money, bro. I’ve lost half a million dollars on this. Where is the scam?” The YouTuber also said in the documentary that he’s had suicidal thoughts because of the CryptoZoo project. “For the first time in my life, I was having suicidal thoughts. I was just spiraling,” he said. Related: YouTuber KSI faces pump-and-dump allegations from ZachXBT and Coffeezilla Apart from attempts to counter allegations, Paul also said in the documentary that he’s going to “take care” of the people who made CryptoZoo look like it was a scam perpetuated by him. He said: “The CryptoZoo saga is far from over because it was a one-sided story. He [Coffeezilla] told it how he wanted to tell it and told it a certain way that made me look like the captain of the ship.” This isn't the first time Paul has promised to act against those who have reported about CryptoZoo. In January 2023, Paul threatened to take legal action against YouTube journalist Stephen Findeisen — also known as Coffeezilla — after Findeisen published a piece on the project. However, Paul quickly backtracked on the threats and apologized to Findeisen days later. In the same month, Paul unveiled a $1.5 million recovery plan for those affected by the failed project. However, it took a year and a class-action lawsuit before the buyback plan was implemented. In February 2023, disgruntled investors filed a class-action lawsuit against CryptoZoo and Paul, alleging that the venture performed a rug pull. The plaintiffs alleged that Paul and the project stole millions of dollars through the venture. On Jan. 5, Paul announced that the buyback program would begin. However, it included a catch: Users could only get a refund if they waived any current or future claims against the YouTuber. Magazine: ‘Am I sorry? No’ — 3AC founder. $6B BTC laundered for fast food worker: Asia Express

[INST] Crypto users fooled by fake Elizabeth Warren letter proposing crypto tax [/INST] 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’

[INST] Bitcoin drops as dollar eyes ‘best 5-day run’ in 14 months on expected rate cut hold [/INST] The United States dollar is eying its “best 5-day run” since February 2023, while Bitcoin (BTC) has dropped over that time as interest rates are expected to remain high along with volatility leading up to the April 20 halving. The dollar’s strengthening is likely driven by expectations of sustained higher interest rates, according to trading resource The Kobeissi Letter. “Less than a month ago, markets were anticipating the Fed to start cutting in June. Higher for longer is now the base case,” The Kobeissi Letter wrote in an April 17 X post. Higher interest rates typically encourage foreign investors to take advantage of greater returns on bonds and term deposits, increasing the demand for the dollar. The Bloomberg Dollar Spot Index (BBDXY), which tracks the performance of a basket of 10 leading global currencies versus the U.S. dollar, has climbed by approximately 2% over the last five trading days, its largest increase in 14 months. According to the BBDXY, the U.S. Dollar Index score stands at 106.34, an increase from 105.28 five days prior, indicating that it has strengthened against the other nine currencies included in the index, including the euro, British pound and Japanese yen. Meanwhile, Bitcoin has seen a 9% price decrease over the past five days to $63,936, per CoinMarketCap data. While not always correlated, Bitcoin and the dollar have shown an inverse relationship over the years. Reuters reported on April 16 that U.S. Federal Reserve Chair Jerome Powell said the country’s inflation rate — currently 3.5% — is not moving toward the central bank’s 2% goal, meaning it’s “likely to take longer than expected to achieve that confidence.” Meanwhile, trader Justin Spittler warned in an April 16 X post that each time the U.S. dollar has reached “overbought levels,” it has been swiftly followed by a significant correction. Bitcoin, which is seen as a more volatile asset, usually sees spikes in demand when the dollar weakens. However, another factor comes into play with the Bitcoin halving scheduled just three days away, slated for April 20 — a process that reduces the amount of BTC that can be mined per block by 50%. Related: $70K BTC price by the halving? 5 things to know in Bitcoin this week Although this is the halving, crypto investors are showing greater confidence in riskier crypto assets compared to the 2020 halving event, according to Bitcoin’s dominance chart. Three days before the 2020 halving, Bitcoin dominance — a ratio of Bitcoin’s market cap compared to the cumulative market cap of all other cryptocurrencies — stood 15% higher than its current level. The U.S. dollar was 6% weaker at the time compared to its current strength. Bitcoin’s dominance is currently 52%, according to CoinStats. Meanwhile, the five-day rise in the U.S. dollar has also seen the crypto market sentiment tracking the Crypto Fear & Greed Index drop by 11 points since April 10. 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.

[INST] Binance ends support for Bitcoin Ordinals [/INST] Binance is winding down support for Bitcoin (BTC) nonfungible tokens (NFTs) just a few months after introducing it to its marketplace. In a blog post on April 4, Binance announced efforts “to streamline product offerings” on the Binance NFT marketplace. As part of these efforts, the exchange’s marketplace is ceasing support for trades and deposits of Bitcoin Ordinals on April 18. “Users are advised to withdraw their Bitcoin NFTs from the Binance NFT Marketplace via the Bitcoin network before 2024-05-18 00:00 (UTC).” In addition, the Binance NFT marketplace will cease to offer airdrops, benefits, and utilities related to Bitcoin NFTs after April 10, 2024. Bitcoin Ordinals, also known as Bitcoin NFTs, allow for the inscription of digital content like art, text, or video directly onto the Bitcoin blockchain. Data embedding has been part of the Bitcoin protocol for some time, but its popularity increased with the advent of Ordinals in late 2022. This protocol, created by Casey Rodarmor, allows unique digital arts to be directly embedded into Bitcoin transactions, similar to Ethereum’s nonfungible tokens (NFTs). Binance specifically noted that users of Runestone NFT who meet the conditions for the airdrop are advised to withdraw their tokens by April 10. “Users are advised to withdraw these NFTs by 2024-04-10 10:00 (UTC), to ensure they still have the opportunity to receive any associated tokens, utilities, and benefits after 2024-04-10,” reads the blog post. The decision came as a surprise to the community. Binance added support to Bitcoin NFTs just a year ago, in May 2023, extending its ecosystem to the Bitcoin network and promising more opportunities to collectors. The high volume of NFT transactions has clogged the Bitcoin network several times since its inception, increasing fees and slowing processing times as more transactions are validated on-chain. According to data from Dune Analytics, the network has over 64 million inscriptions to date, and generated over $423 million in transaction fees. Inscriptions on the Bitcoin network overtime. Source: Dune Analytics. Magazine: Ordinals turned Bitcoin into a worse version of Ethereum — Can we fix it?

[INST] Goldbugs renew mocking Bitcoin as the yellow metal hits all-time high [/INST] 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