The Supreme Court has refused to entertain a petition seeking a direction to the Centre and others to frame guidelines for regulation of trading and mining of cryptocurrencies.
Cryptocurrencies are blockchain-based digital or virtual currencies, which operate independently of a central bank.
A bench headed by Chief Justice D. Y. Chandrachud said the main reliefs sought in the plea were more in the nature of a legislative direction.
The bench, also comprising Justices J B Pardiwala and Manoj Misra, observed that though the petition was under Article 32 of the Constitution, it was evident that the “real purpose is to seek bail in proceedings which are pending against the petitioner.”
“We are unable to subscribe to this course of action. The petitioner would be at liberty to move the appropriate court for the grant of regular bail. Insofar as the main reliefs are concerned, they are more in the nature of a legislative direction which the court cannot issue under Article 32 of the Constitution,” the bench said in its order passed on Friday.
Article 32 deals with the right to constitutional remedies and 32 (1) grants a citizen the right to move the apex court for enforcement of rights.
The bench noted that reliefs sought in the plea filed by the Uttar Pradesh-based man also included a direction for prosecution of cases involving digital assets/ cryptocurrencies.
“We accordingly dispose of the petition granting liberty to the petitioner to pursue his remedies in accordance with law,” it said.
In a recent report by FOX Business, it has been revealed that a company led by former New York Stock Exchange (NYSE) President Tom Farley is among three potential suitors vying to reboot the now-bankrupt cryptocurrency exchange, FTX.
Bullish, the crypto exchange headed by Farley, fintech startup Figure Technologies, and crypto venture-capital firm Proof Group are competing to acquire the remnants of FTX as the auction for the collapsed exchange, founded by Sam Bankman-Fried, nears its final stages.
FTX Rebirth On The Horizon
Per the report, the prospective buyer of FTX may have the opportunity to restart the exchange following its planned exit from bankruptcy next year.
Should a new owner take control of the exchange, there is a possibility that customers could receive shares in the rebooted exchange or new tradable tokens as partial compensation for their outstanding debts.
Approximately $9 billion of customer deposits on FTX remain unaccounted for. However, some industry observers caution that relaunching FTX may face challenges in gaining the trust of professional traders, given the exchange’s tainted history of fraud and embezzlement.
As a result, discussions have occurred among potential bidders regarding rebranding the revived exchange by dropping the FTX name.
Former NYSE President’s Bullish Bid
Bullish, backed by notable investors such as Peter Thiel’s Founders Fund and hedge-fund manager Louis Bacon, is one of the contenders interested in acquiring the crypto company.
Tom Farley, the former NYSE President who served from 2014 to 2018, leads Bullish. Figure Technologies, a startup co-founded by former SoFi CEO Mike Cagney, and Proof Group, part of the consortium that successfully bid for bankrupt crypto lender Celsius, are also in the running to purchase FTX.
The sales process for the exchange does not include the exchange’s real-estate portfolio in the Bahamas or other assets. The auction winner is expected to be announced in December, with the potential for a relaunched FTX to compensate customers through equity or tradable tokens.
However, the challenge lies in rebuilding trust and credibility among professional traders who may harbor reservations due to FTX’s history.
FTX, once ranked as one of the world’s largest crypto exchanges, abruptly collapsed in November 2022 after a run on customer funds. Bankman-Fried, the founder of FTX, was subsequently charged with fraud, accused of misappropriating billions of dollars of customer funds for personal investments, luxury real estate, and political donations.
As reported by Bitcoinist, last week, a New York federal jury convicted him on all seven counts, and he is set to be sentenced in March, facing a potential prison term of up to 115 years.
As the crypto industry closely monitors the outcome of the exchange auction, the involvement of a former NYSE President and prominent investors underscores the significance of this potential relaunch.
In a groundbreaking experiment, Mario Havel, a protocol supporter and researcher of the Ethereum (ETH) Foundation, has achieved the synchronization of an ETH node on an unlikely device – a PlayStation 4 gaming console.
According to a recent post, Havel’s journey began with delving into “PlayStation jailbreaking,” where he discovered vulnerabilities in older PlayStation 4 firmware that allowed for control takeover.
Jailbreaking refers to bypassing the restrictions imposed by the official software (firmware) of a device, in this case, a PlayStation 4 console.
By jailbreaking the console, the researcher, Mario Havel, gained unauthorized access to the system, allowing him to run custom software and applications and make modifications not typically allowed by the manufacturer.
Armed with an “old PlayStation 4 machine” running firmware 9.00 or older, Havel embarked on a mission to transform the gaming console into a fully functional Ethereum node.
From Gaming To Blockchain
The initial challenge was to obtain a “suitable, hackable” PlayStation 4 console with the desired firmware version. Havel emphasized the importance of avoiding system updates, as newer firmware versions are incompatible with the exploit.
After acquiring the appropriate console, Havel manually installed the 9.00 firmware using a USB drive, ensuring the machine remained offline to prevent unwanted updates.
To prevent automatic updates while connected to the internet, Havel recommended using a custom domain name system (DNS) server that blocks updates and redirects the user guide homepage to an exploit host.
This setup allowed Havel to host a website locally or publicly, providing the necessary tools and resources for the PlayStation 4 jailbreaking process.
The jailbreaking process relied on an exploit discovered by comparing firmware versions 9.00 and 9.03. By exploiting a filesystem bug, Havel could trigger the vulnerability by inserting a specially formatted USB device immediately.
The exploit required an exfathax.IMG file, which could be downloaded and flashed onto a USB drive using software such as Balena Etcher, a cross-platform tool. Havel noted that the USB drive would be formatted during each jailbreaking session, and it was advisable to use a dedicated flash drive for this purpose.
According to Havel, once the exploit was successfully activated, the PlayStation 4 gained new capabilities, allowing it to install various packages, tools, and games directly on the console.
Linux-Based Ethereum Node Hosting
Havel mentioned the ability to install packages over a local network for a “smoother installation process.” He also highlighted the ability to run a GNU/Linux distribution – an operating system that can interact with computers and run other programs – on the PlayStation 4, turning it into a versatile personal computer.
With Linux successfully running on the PlayStation 4, Havel set up an Ethereum node on the console. He recommended downloading portable versions or compiling Ethereum clients suitable for the PlayStation 4’s GNU/Linux environment.
Havel shared his experience with clients, highlighting the importance of optimizing resource consumption for smoother operations. He also mentioned monitoring applications to ensure optimal temperature and fan control.
Having established secure shell (SSH) access over the local network, Havel could connect to his PlayStation 4 node from his laptop, treating it like any other server.
This setup allowed for continuous Ethereum synchronization and showcased the PlayStation 4’s potential as a dedicated node-hosting device.
Ultimately, by repurposing a PlayStation 4 as an Ethereum node, Havel has opened up new possibilities for node hosting, decentralization, and utilizing existing hardware for blockchain network participation.
As the experimentation continues, researchers and enthusiasts will likely explore similar avenues, pushing the boundaries of what can be achieved with gaming consoles and decentralized technologies.
Going back decades, if you wanted to buy or sell a stock on the open market, you had to pay a 2% commission to buy and a 2% commission to sell. Then the advent of discount brokerage, led by Charles Schwab Corp. SCHW, +1.64%,
made lower commissions available until eventually, with improved technology and efficiency, the entire industry changed to enable the average investor to avoid commissions completely.
But the internet hasn’t done much to reduce the cost of selling a home in the U.S. Sellers typically pay a 6% commission to a real-estate agent to list and sell a home, with the seller’s agent splitting that commission with the buyer’s agent. But all of that may change because of a verdict this week in a class-action lawsuit in federal court against the National Association of Realtors.
Aarthi Swaminathan covers the case, what may happen next and the implications for home sellers and buyers:
Real-estate advice from the Moneyist
MarketWatch illustration
Quentin Fottrell — the Moneyist — works with three readers to answer tricky real-estate questions:
Jon Gray, the president of Blackstone Group, spoke with MarketWatch Editor in Chief Mark DeCambre and said he expected the Fed to succeed in bringing down inflation without pushing the U.S. economy into a deep recession.
The U.S. Treasury yield curve has been inverted for nearly a year.
FactSet
Normally, longer-term bonds have higher yields than those with short maturities. But the yield curve has been inverted for nearly a year, with 3-month U.S. Treasury bills BX:TMUBMUSD03M
having higher yields than 10-year Treasury notes BX:TMUBMUSD10Y.
There has been elevated demand for long-term bonds, as investors have anticipated a recession and a reversal in Federal Reserve interest-rate policy. When interest rates decline, bond prices rise and vice versa.
As you can see on the chart above, the yield curve was narrowing until mid-October. Yields on 10-year Treasury notes were close to 5% on Oct. 19, but they have been falling the past several days as the three-month yield has remained close to 5.5%.
In the Bond Report, Vivien Lou Chen summarizes the action as investors react to the Federal Reserve’s decision not to change its federal-funds-rate target range this week and to other economic news.
For income-seekers looking to avoid income taxes, here’s a deep dive into municipal bonds, with taxable-equivalent yields and a deeper look at those within four high-tax states.
Ford’s good news — in the bond market
Ford Motor Co.’s debt rating has been lifted by S&P to investment-grade.
By now you have probably heard the term “Magnificent Seven” used to describe stocks of the tremendous tech-oriented companies that have led this year’s rally for the S&P 500 SPX
: Apple Inc. AAPL, -0.52%,
Microsoft Corp. MSFT, +1.29%,
Amazon.com Inc. AMZN, +0.38%,
Nvidia Corp. NVDA, +3.45%,
Alphabet Inc. GOOGL, +1.26%
GOOG, +1.39%,
Meta Platforms Inc. META, +1.20%
and Tesla Inc. TSLA, +0.66%.
With Tesla’s recent decline, that company is now the ninth-largest holding in the portfolio of the SPDR S&P 500 ETF Trust SPY,
which tracks the benchmark index. Here are the top 10 companies held by SPY (11 stocks, including two common-share classes for Alphabet), with total returns through Thursday:
Five of these stocks (including the two Alphabet share classes) are still down from the end of 2021. SPY itself has returned 14% this year, following an 18% decline in 2022. It is still down 7% from the end of 2021.
After the market close on Wednesday, PayPal Holdings Inc. PYPL, +1.89%
announced quarterly results that came in ahead of analysts’ expectations, and the stock soared 7% on Thursday even though the company lowered its target for improving its operating margin.
Consumers drive mixed reactions to earnings results
Apple Inc. reported mixed quarterly results.
Mario Tama/Getty Images
Here’s more of the latest corporate financial results and reactions. First the good news:
And now the news that may not be so good:
Harsh verdict for SBF
FTX founder Sam Bankman-Fried.
AP
It might seem that some legal battles never end, but it took only a year from the collapse of FTX for the cryptocurrency exchange’s founder, Sam Bankman-Fried, to be convicted on all seven federal fraud and money-laundering charges brought against him. The charges were connected to the disappearance of $8 billion from FTX customer accounts.
Here’s more reaction and coverage of the virtual-currency industry:
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The US Federal Reserve (Fed) has taken legal action against Bitcoin Magazine, alleging that the publication’s parody merchandise infringes on its image and trademarks.
The dispute revolves around using the FedNow Service image and trademark in merchandise sold by Bitcoin Magazine, which aims to critique the surveillance capabilities of the FedNow system and its potential impact on civil liberties.
Bitcoin Magazine has responded with an open letter, asserting its First Amendment rights and refusing to comply with the cease-and-desist request.
Fed Accuses Bitcoin Magazine Of Unauthorized Infringement
According to Bitcoin Magazine, the US Federal Reserve has initiated legal proceedings in response to the publication’s parody merchandise.
The central bank claims that the merchandise, which uses the FedNow Service image and trademark, constitutes unauthorized infringement and misleading association with the Federal Reserve.
In an open letter penned to the Federal Reserve Financial Services’s Deputy General Counsel, Bitcoin Magazine’s editor-in-chief, Mark Goodwin, expressed gratitude for the inquiry while asserting the publication’s refusal to comply with the cease-and-desist request.
Goodwin highlighted concerns regarding the FedNow system’s potential infringement on civil liberties and emphasized the publication’s First Amendment rights to criticize and parody the system.
First Amendment Battle
Bitcoin Magazine firmly believes that its parody merchandise falls within protected speech under the First Amendment. It argues that the imagery used serves as social commentary, specifically critiquing the surveillance aspects associated with the FedNow system.
The publication maintains that its readership would not associate Bitcoin Magazine with the Federal Reserve and that no confusion or deception is intended. Goodwin further claimed:
We do not believe that anyone that is familiar with our editorial guidelines and general stance on the world would ever associate Bitcoin Magazine with the Federal Reserve. We agree with your assertion that “no such association or relationship exists.” We look forward to defending our First Amendment rights, and the opportunity to make clear to all Americans the difference between the open, free, and decentralized financial system that is Bitcoin, and the centralized FedNow system that threatens our nation’s founding values.
The legal dispute between the US Federal Reserve and Bitcoin Magazine over parody merchandise sold by the publication highlights the clash between intellectual property rights and freedom of speech.
Bitcoin Magazine asserts its First Amendment rights to criticize and parody the FedNow system, emphasizing the importance of open dialogue and the distinction between the publication and the Federal Reserve.
The outcome of this legal battle will have implications for the boundaries of protected speech and the ability to critique public institutions.
After a brief rally to the mid-$35,000 level, Bitcoin (BTC) has again pulled back, falling below this threshold and failing to establish a strong consolidation above it. Currently, the market’s leading cryptocurrency is trading at $34,700, down 0.5% over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com
In a recent report by Reuters, online payment system company PayPal announced plans to bolster its market value by $4 billion, seeking to streamline operations to appease investors. However, investor optimism was tempered by disclosing a subpoena from the US Securities and Exchange Commission (SEC) related to PayPal’s stablecoin PYUSD.
PayPal’s $4 Billion Value Boost Amidst SEC Subpoena
Before market opening on Thursday, PayPal’s shares surged by 7% to reach $55.16, fueled by a full-year profit forecast that assuaged concerns of a spending slowdown.
The company’s new CEO, Alex Chriss, acknowledged the need for cost reduction, stating, “Simply put, our cost base remains too high.” Chriss emphasized aligning resources with the most profitable growth priorities in their strategic realignment.
Per the report, the positive forecast reflects consumers’ “resilient” financial health, enabling them to sustain their spending habits despite lingering economic uncertainties.
Analysts, including Tien-tsin Huang from J.P. Morgan, praised Chriss’ remarks, citing his “insightful assessment” of the company’s challenges and a solid framework for improving growth and profitability. William Blair, a leading brokerage firm, also expressed encouragement regarding PayPal’s narrowed focus on profitable growth.
While PayPal’s market value expansion was well-received, the disclosed SEC subpoena signifies continued regulatory scrutiny in the cryptocurrency industry.
Despite a recent high-profile court loss against Grayscale Investments, the SEC’s Enforcement Division sent the subpoena to PayPal, requesting document production.
Notably, PayPal made history as the first major financial technology firm to embrace digital currencies for payments and transfers when it launched its dollar-backed stablecoin in August.
Acknowledging the SEC’s scrutiny, PayPal reiterated its cooperation with the subpoena, according to the report.
PYUSD Stablecoin Gains Traction
According to data from CoinMarketCap, PayPal’s PYUSD stablecoin has garnered significant attention in the digital currency space, boasting a notable market cap and significant trading volume.
With a market cap of approximately $158,763,822, PYUSD currently ranks 240th among digital assets. Furthermore, PYUSD has experienced a 24-hour trading volume of $2,847,923, ranking it at 482nd.
The volume-to-market cap ratio, a key metric that measures the liquidity and relative trading activity of an asset, stands at 1.80% for PYUSD. This figure highlights the notable trading activity surrounding the stablecoin, with a significant portion of its market cap being actively traded within 24 hours.
PYUSD’s circulating supply currently stands at 158,956,937 tokens. This signifies the number of stablecoins in circulation and utilized for various transactions and financial activities.
The total supply of PYUSD also aligns with the circulating supply, indicating that there are no additional tokens planned for issuance beyond the current amount. This fixed supply ensures stability and predictability for PYUSD users and investors.
All around, despite the SEC’s subpoena, PYUSD has emerged as a significant player in the stablecoin ecosystem. The unfolding situation and potential further actions by the SEC against PayPal’s PYUSD stablecoin, along with their potential implications for the company’s operations, are yet to be determined.
The total crypto market cap’s retracement after reaching the $1,30 trillion mark on Tuesday. Source: TOTAL on TradingView.com
Featured image from Shutterstock, chart from TradingView.com
In a significant development for the crypto industry, the United Kingdom’s His Majesty’s Treasury (HMT) has released its long-awaited update on the regulatory framework for crypto assets.
According to Brian Quintenz, Head of Policy at a16z Crypto, a venture capital fund, the announcement signals the UK’s commitment to fostering an open, well-regulated, and technologically advanced capital market that embraces the potential of cryptocurrencies and blockchain technology.
UK Takes Proactive Stance, Setting Clear Path For Crypto Regulation
The HMT’s response to the crypto asset regulatory regime covers several key aspects. Firstly, it excludes airdrops from the token issuance regulatory perimeter, recognizing that they do not constitute a public offering.
Additionally, the statement clarifies that non-fungible tokens (NFTs), including in-game purchases and sales of digital items, are considered out of scope, emphasizing their classification as non-financial services activity.
According to Quintenz, the UK government’s approach to decentralized finance (DeFi) reflects a cautious yet forward-thinking stance. The HMT acknowledges the potential role of DeFi in financial services as the crypto asset sector expands and blockchain-based solutions gain wider adoption.
Importantly, the government emphasizes that it does not intend to ban DeFi, aligning with its innovation-forward approach.
Addressing concerns over crypto trading, the HMT strongly disagrees with characterizing it as gambling or advocating for an outright ban. It highlights the divergence such approaches would have from international regulatory workstreams and the potential negative impact on crypto-based innovation.
However, the statement acknowledges the need for additional clarity on concepts of decentralization and protection of customers from legacy risks associated with centralization.
Furthermore, the regulatory framework emphasizes managing risks while encouraging innovation, recognizing the developing nature of the crypto asset sector and its evolving complexities.
Additionally, the government is exploring the potential benefits of Distributed Ledger Technology (DLT) in financial market infrastructures and sovereign debt management.
Clearing The Path For Innovation?
The proposed regulatory framework aims to establish a proportionate and clear regulatory environment that enables firms to innovate while maintaining financial stability and regulatory standards. It includes plans to bring centralized crypto exchanges, custody services, lending platforms, and other core activities under financial services regulation for the first time.
According to the update, the UK government acknowledges the transformative potential of digital assets and the need for an enhanced regulatory framework to realize their benefits while effectively managing risks. The proposed regulatory regime will be incorporated within the existing framework established by the UK’s Financial Services and Markets Act 2000 (FSMA), leveraging its credibility and regulatory clarity.
The HMT’s regulatory framework is subject to consultation and stakeholder engagement. The government will carefully consider the responses and issue further technical consultations on specific rules.
An engagement group, chaired by the Economic Secretary to the Treasury, will facilitate ongoing dialogue with key industry participants, ensuring their insights inform establishing a clear regulatory framework that supports innovation and consumer protection.
As the UK takes proactive steps towards effective crypto asset regulation, it aims to strike a delicate balance between encouraging innovation, managing risks, and providing regulatory clarity. The unveiled framework positions the UK as a global hub for web3 and reinforces its commitment to embracing the transformative potential of digital assets in the financial landscape.
The total crypto market cap continues to climb to levels not seen since April. Source: TOTAL on TradingView.com
Featured image from Shutterstock, chart from TradingView.com
Federal prosecutors on Monday sought to chip away at FTX founder Sam Bankman-Fried’s credibility, pointing to discrepancies between his public comments and actions taken behind the scenes as the company collapsed.
In a steady drumbeat of questions, Assistant U.S. Attorney Danielle Sassoon tried to paint Bankman-Fried, the 31-year-old former wunderkind of the crypto world, as someone who lied to his customers about the safety of their investments, while secretly raiding their accounts to fund his own risky investments, luxury real estate purchases, costly celebrity endorsements and political contributions.
In his second day of testimony before a jury in his criminal fraud trial in Manhattan’s federal court, Bankman-Fried repeatedly said he couldn’t remember exactly what he had said in numerous media interviews in the days and weeks after FTX had declared bankruptcy and $8 billion in customer deposits had vanished.
He also sought to distance himself from decision-making at FTX’s sister investment firm, Alameda Research, whose risky bets helped bring the crypto trading platform down.
Sassoon pointed to multiple public comments by Bankman-Fried in which he claimed FTX’s risk management protocols made it safer than other crypto currency trading platforms, while the company allowed its own investment arm, Alameda Research to make risky bets without limit.
FTX ultimately collapsed largely as a result of the billions in loans it had extended to Alameda, which prosecutors allege was done using customer money.
Federal prosecutors have alleged that Alameda was effectively granted carte blanche to use FTX customer money to make risky bets. One key element was that certain risk-management systems that FTX used to to liquidate customer accounts that had entered into negative territory were disabled for Alameda, allowing it unfettered ability to make high-risk moves.
Throughout his testimony, Bankman-Fried claimed he had limited visibility as to what was happening at Alameda, which he founded and mostly owned, but which had ceased running day-to-day in 2021, when his ex-girlfriend Caroline Ellison took over as CEO.
He said he only became aware of how bad a liquidity issue Alameda faced well after a financial crisis began sweeping through the crypto industry in the summer of 2022. Bankman-Fried said he had told Ellison, who had pleaded guilty and testified against him, that she should have taken hedge positions earlier to lessen the company’s risk.
But he said he continued to believe up until just days before the companies collapsed, that both Alameda and FTX were on firmer financial footing.
“I viewed Alameda as solvent and FTX as solvent and decently liquid,” he testified. “Had that analysis come up any other way, I would have been in full on crisis mode. But in my view at the time that wasn’t the case.”
Bankman-Fried did admit that he consulted frequently with Ellison about moves that Alameda made and even signed off on several billion-dollar investments.
“I think a few billion of them were my decision,” he said when asked about several large investments made by Alameda in 2021 and 2022.
Bankman-Fried is expected back in court for further cross examination on Tuesday. The judge in the case said he expected the case may go to the jury as early as Friday.
Sam Bankman-Fried takes the stand on FTX’s collapse
Sam “SBF” Bankman-Fried testified this week in his ongoing criminal trial in the Southern District of New York, denying any wrongdoing between FTX and Alameda Research while acknowledging making “big mistakes” during the companies’ explosive growth. Highlights of his testimony include denying directing his inner circle to make significant political donations in 2021, as well as claims that FTX’s terms of use covered transactions between Alameda and the crypto exchange. Additionally, Bankman-Fried testified that he requested additional hedging strategies for Alameda in 2021 and 2022, but they were never implemented. The trial is expected to conclude within the next few days.
‘Buy Bitcoin’ search queries on Google surge 826% in the UK
Google searches for “buy Bitcoin” have surged worldwide amid a major crypto rally, with searches in the United Kingdom growing by more than 800% in the last week. According to research from Cryptogambling.tv, the search term “buy Bitcoin” spiked a staggering 826% in the U.K. over the course of seven days. In the United States, data from Google Trends shows that searches for “should I buy Bitcoin now?” increased by more than 250%, while more niche searches, including “can I buy Bitcoin on Fidelity?” increased by over 3,100% in the last week. Zooming out further, the search term “is it a good time to buy Bitcoin?” saw a 110% gain worldwide over the last week.
US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF
The United States Court of Appeals has issued a mandate following a decision requiring Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF) to be reviewed by the Securities and Exchange Commission (SEC). In an Oct. 23 filing, the “formal mandate” of the court took effect, paving the way for the SEC to review its decision on Grayscale’s spot Bitcoin ETF. The mandate followed the court’s initial ruling on Aug. 29 and the SEC’s failure to present an appeal by Oct. 13. To date, the SEC has yet to approve a single spot crypto ETF for listing on U.S. exchanges but has given the green light to investment vehicles linked to Bitcoin and Ether futures.
Coinbase disputes SEC’s crypto authority in final bid to toss regulator’s suit
The U.S. Securities and Exchange Commission overstepped its authority when it classified Coinbase-listed cryptocurrencies as securities, the exchange has argued in its final bid to dismiss a lawsuit by the securities regulator. In an Oct. 24 filing in a New York District Court, Coinbase chastised the SEC, claiming its definition for what qualifies as a security was too wide, and contested that the cryptocurrencies the exchange lists are not under the regulator’s purview. The SEC sued Coinbase on June 6, claiming the exchange violated U.S. securities laws by listing several tokens it considers securities and not registering with the regulator.
Gemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6B
Cryptocurrency exchange Gemini filed a lawsuit against bankrupt crypto lender Genesis on Oct. 27. At issue is the fate of 62,086,586 shares of Grayscale Bitcoin Trust. They were used as collateral to secure loans made by 232,000 Gemini users to Genesis through the Gemini Earn Program. That collateral is currently worth close to $1.6 billion. According to the suit, Gemini has received $284.3 million from foreclosing on the collateral for the benefit of Earn users, but Genesis has disputed the action, preventing Gemini from distributing the proceeds. Genesis filed for bankruptcy in January. It had suspended withdrawals in November 2022, which impacted the Gemini Earn program.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $34,143, Ether (ETH) at $1,789 and XRP at $0.54. The total market cap is at $1.26 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Pepe (PEPE) at 72.08%, Mina (MINA) at 55.47% and FLOKI (FLOKI) at 53.33%.
The top three altcoin losers of the week are Bitcoin SV (BSV) at -10.27%, Toncoin (TON) -3.14% and Trust Wallet Token (TWT) at -0.82%.
“I should say, I am not a lawyer, I am just trying to answer based on my recollection. […] At the time [at] FTX, certain customers thought accounts would be sent to Alameda.”
“Without prejudging any one asset, the vast majority of crypto assets likely meet the investment contract test, making them subject to the securities laws.”
Gary Gensler, chair of U.S. Securities and Exchange Commission
“I do not believe there has been a single serious conversation regarding a settlement between Ripple […] and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.”
“He [Sam Bankman-Fried] thought he was going to take that money, and […] he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.”
Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in
Bitcoin surfed $34,000 at the end of the week as attention turned to BTC price performance against macro assets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding steady, preserving its early-week gains.
The largest cryptocurrency avoided significant volatility as the weekly and monthly closes — a key moment for the October uptrend — drew ever nearer.
“I think Bitcoin will hang around this range for some time,” popular pseudonymous trader Daan Crypto Trades told X subscribers in one of several posts on Oct. 27. “Roughly $33-35K is what I’m looking at as a range. Eyes on potential sweeps of any of these levels for a quick trade,” he wrote.
FUD of the Week
UK passes bill to enable authorities to seize Bitcoin used for crime
Lawmakers in the United Kingdom have passed legislation allowing authorities to seize and freeze cryptocurrencies like Bitcoin if used for illicit purposes. Introduced in September 2022, the passed legislation aims to expand authorities’ ability to crack down on the use of cryptocurrency in crimes like cybercrime, scams and drug trafficking. One of the provisions of the bill permits the recovery of crypto assets used in crimes without conviction, as some individuals may avoid conviction by remaining remote.
Scammers create Blockworks clone site to drain crypto wallets
Phishing scammers have cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting readers into connecting their wallets to a crypto drainer. A fake Blockworks site displayed a fake “BREAKING” news report of a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap and encouraged users to visit a fake Etherscan website to rescind approvals. The fake Uniswap news article was posted on Reddit across several popular subreddits.
Kraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in Canada
Kraken will suspend all transactions related to Tether, Dai, Wrapped Bitcoin, Wrapped Ether and Wrapped Axelar in Canada in November and December. The suspensions may not surprise many Canadian cryptocurrency users, as they come on the heels of several other notable exchanges taking similar actions throughout 2023. OKX ceased operations in Canada in June after Binance announced its intention to do so in May.
5,050 Bitcoin for $5 in 2009: Helsinki’s claim to crypto fame
In a revelation brought to light by an account on X (formerly Twitter) under the name “CoinFLEX Real,” allegations have emerged indicating that the founder of CoinFLEX, a derivatives exchange based in Hong Kong, along with their partners at Three Arrows Capital (3AC), have allegedly engaged in the misappropriation of creditor assets for personal gain.
Mark Lamb, the founder of CoinFLEX, along with Zhusu and Kyle Davies of 3AC, stand accused of utilizing funds entrusted to them as their personal “piggy bank.”
CoinFLEX Founder Accused Of Manipulation
CoinFLEX suffered significant losses, amounting to $160 million, leading to its collapse in June 2022, triggered by a negative balance from one of its customers, Roger Ver. Subsequently, a group of creditors developed a restructuring proposal to revive the exchange.
In September 2022, CoinFLEX’s leadership presented a restructuring plan that granted creditors a majority stake and control of the board. The company retained $10 million to finance litigation against Roger Ver and facilitate a reboot.
However, in January 2023, Mark Lamb suddenly established a separate exchange called OPNX, seemingly unrelated to CoinFLEX. Despite this, the exchange’s funds supported OPNX’s operations.
Mark allegedly misled regulators by presenting OPNX as part of CoinFLEX and manipulated FLEX tokens for “personal benefit.” The new venture heavily relied on CoinFLEX’s technology, funds, staff, and the FLEX token.
CoinFLEX’s website even encouraged users to migrate to OPNX despite the lack of authorization to develop this new business, which contradicted the terms of the restructuring order pending approval by the Seychelles courts.
Over the following six months, CoinFLEX stakeholders received minimal information from Mark Lamb, Kyle Davies, and Su regarding the status of remaining funds and spending.
According to the allegations, proper reporting for creditors was never completed, keeping them “in the dark” and impeding their ability to take action. Furthermore, allegations have emerged that the founders intentionally manipulated the token’s price.
Employees were allegedly instructed to freeze account withdrawals for users with substantial FLEX balances, preventing them from cashing out. FLEX and OX assets were frozen on-chain to boost the token price artificially. Influencers were allegedly paid with creditor assets to promote OX.
Additionally, the founders reportedly used the proceeds from the sale of creditor assets to inflate the same tokens they had previously sold over-the-counter (OTC)
Controversial Settlement
According to CoinFLEX Real’s allegations, requests for information in the company were ignored, and any employee communicating with the creditor group was promptly terminated.
It wasn’t until August 2023 that a board was finally formed, but Mark Lamb allegedly refused to attend most board meetings, providing little meaningful information.
Exploiting the absence of a clear structure, Mark demanded additional funds from creditors to cover legal expenses and personal costs related to his support of arbitration.
Mark allegedly met secretly with Roger Ver to settle an $84 million lawsuit over the advice of arbitration lawyers who believed CoinFLEX had a strong case. Notably, as the truth began to unravel, it appeared that Mark, Kyle, and Su planned to shut down CoinFLEX to destroy evidence and conceal their misdeeds.
Two weeks ago, evidence of the scale of wrongdoing was uncovered when investigators entered CoinFLEX’s Hong Kong office. Staff members were allegedly cut off from systems to obstruct access to crucial evidence. Given these alleged developments, the X account under the pseudonym “CoinFLEX Real” concluded:
These grifters cannot remain unpunished and continue to infect our space. We owe a duty to protect the crypto community and its reputation. We have the evidence to pursue justice and ask for the support of the community to make it happen.
In a bid to “safeguard consumers,” the UK Financial Conduct Authority (FCA) has issued a warning regarding “common issues” observed in crypto asset promotions. With the implementation of a new marketing regime, the FCA has asserted its authority over crypto promotions in the UK.
FCA Unveils Alert List To Expose ‘Non-Compliant Crypto Entities’
The FCA has identified specific “areas of concern” since the new marketing rules were enacted. To address these issues, the financial watchdog has shared an updated “alert list” to highlight “non-compliant entities.”
The FCA’s statement emphasized that the change in legislation has brought crypto asset promotions under its remit, enabling it to supervise firms and “ensure consumers” receive accurate information and risk warnings.
Since October 8, the FCA has identified three common issues with crypto asset financial promotions. These include misleading claims about the safety and security of digital asset services without adequately highlighting associated risks, risk warnings not prominently displayed due to small fonts or hard-to-read color schemes, and firms failing to provide customers with sufficient information about the risks linked to specific promoted products.
The FCA expects authorized firms responsible for approving financial promotions of crypto asset firms to fulfill their regulatory obligations diligently. In cases of non-compliance, the FCA will take action and has already imposed restrictions on one authorized firm, preventing it from approving digital asset financial promotions.
Collaboration with businesses, including social media platforms, app stores, search engines, and domain name registrars, is underway to remove or block illegal promotions.
The FCA also works with payments firms to limit UK consumer exposure to entities issuing unauthorized promotions. It urges these businesses to heed the alerts issued and play their part in protecting UK consumers.
FCA Cracks Down On Illegal Promotions
Per the announcement, the FCA continues to identify and take action against firms illegally promoting crypto assets to UK consumers. Since the new regime came into effect, the FCA has issued 221 alerts, with the list continually updated to include firms that fail to comply or engage constructively.
To make informed investment decisions in the crypto space, consumers are advised to consult the Warning List, which helps identify firms whose promotions may violate the law, enabling them to consider such promotions with all available information.
Since October 8, 2023, firms promoting crypto assets in the UK must be authorized, and registered by the FCA, or have their marketing approved by an authorized firm.
Promotions must adhere to FCA rules, ensuring clarity, fairness, the absence of misleading information, and prominent risk warnings. These changes align crypto assets with other high-risk investments.
The financial promotion regime applies to all firms marketing crypto assets to UK consumers, regardless of their location or the technology used for promotion. The FCA’s rules aim to “enhance understanding of crypto asset purchases” and associated risks.
Furthermore, since February, the FCA has warned firms, urging them to prepare for the regulatory changes. A recent letter has also been published to remind digital asset firms of the impending compliance deadline.
The total crypto market cap continues with its uptrend on the daily chart. Source: TOTAL on TradingView.com
Featured image from Shutterstock, chart from TradingView.com
Bitcoin surged over 10% on Monday, briefly surpassing $34,500, on continued optimism that an exchange-traded fund investing directly in the cryptocurrency will soon be approved in the U.S.
The largest cryptocurrency BTCUSD, +6.59%
by market cap on Monday reached as high as $34,616, the loftiest level since May 2022, according to CoinDesk data, before falling to around $33,021 by Monday evening. Other major cryptocurrencies also rose, with ether up 5.8% over the past 24 hours to $1,763.
The U.S. Securities and Exchange Commission has repeatedly rejected bitcoin ETF applications in the past, citing risks of market manipulation. But crypto-industry participants are expecting that to change soon.
A U.S. Appeals court on Monday issued a mandate, putting into effect its ruling in August, which overturned the SEC’s rejection of Grayscale Investments’ application to convert its Bitcoin Trust product GBTC
into an ETF. The final ruling on Monday confirmed Grayscale’s win in court.
Meanwhile, BlackRock’s proposed bitcoin ETF has been listed on the Depository Trust & Clearing Corporation. While it doesn’t mean that the ETF is guaranteed to be approved, it shows another step closer for BlackRock to bring the fund to the market.
If bitcoin ETFs are approved, the crypto may see “historical price increases,” with a crypto bull market coming, according to Alex Adelman, chief executive and co-founder of Lolli. “Bitcoin ETFs will give institutional and retail investors new ways to gain exposure to bitcoin within established regulations,” Adelman said.
Bitcoin (BTC) ATMs have become both convenient and worrying, with scammers taking advantage of unsuspecting victims. Authorities in the US and other jurisdictions are now waging a war against crypto-ATM-based scams.
California takes a stance on new cryptocurrency laws
The state of California has introduced rules for cryptocurrency transactions. Senate Bill 401, signed by Governor Gavin Newsom, means you can only make $1,000 worth of cryptocurrency transactions at ATMs each day, and starting in 2025, the maximum they can charge you is $5, or 15% of the transaction. Whichever is higher.
Initially, some Bitcoin ATMs allowed up to $50,000 in transactions with fees ranging between 12% and 25% above the value of the digital asset. These changes are intended to protect people from scams and high fees, explained Sen. Monique Lemon, one of the co-authors.
Scammers taking advantage of the convenience of Bitcoin ATMs have been a growing concern, with the Federal Trade Commission reporting that more than 46,000 people have lost more than $1 billion to cryptocurrency scams since 2021. New transaction limits give victims more time to spot scams before loss of money. But Charles Bell of the Blockchain Advocacy Coalition worries that these rules could hurt the cryptocurrency industry and small businesses.
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Explore Australia’s rapid rise in the global cryptocurrency ATM scene
FBI Alerts About Bitcoin ATM and QR Code Scams
The Federal Bureau of Investigation (FBI) has raised the alarm about fraudulent schemes exploiting ATMs for cryptocurrencies and quick response (QR) codes for payments. These schemes take various forms, including online impersonation, romance scams, and lottery fraud, all using cryptocurrency ATMs and QR codes as tools.
QR codes, which smartphone cameras can scan, simplify cryptocurrency payments. However, criminals are now using it to trick victims into paying money. Victims are often asked to withdraw money from their accounts and use a QR code provided by scammers to complete transactions at physical cryptocurrency ATMs.
Once the victim makes the payment, the cryptocurrency is transferred to the scammer’s wallet, making recovery nearly impossible due to the decentralized nature of cryptocurrencies. The FBI offers several tips to protect against these schemes, focusing on caution, verification, and avoiding cryptocurrency ATM transactions that promise anonymity using only a phone number or email.
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Bitbuy is partnering with Canada’s largest Bitcoin ATM provider
Cryptocurrency regulation efforts in California
The passage of Senate Bill 401 in California is part of a broader effort to regulate the cryptocurrency industry while protecting consumers. Another law, scheduled to take effect in July 2025, will require digital financial asset companies to obtain licenses from the California Department of Financial Protection and Innovation. This represents a clear shift towards tightening government regulation and oversight in the world of digital finance.
Gavin Newsom’s decision to sign these bills into law demonstrates California’s commitment to strengthening the cryptocurrency industry and protecting its citizens. Balancing innovation and security remains a challenge, especially in a rapidly evolving digital landscape.
Bitcoin Depot’s historic debut on the NASDAQ
In July, Bitcoin Depot, a leading bitcoin ATM operator, went public on the Nasdaq. This milestone comes after Bitcoin Depot merged with GSR II Meteora, a blank check company.
The move to go public demonstrates the growing legitimacy and acceptance of cryptocurrencies in major financial markets.
Authorities vs. illegal crypto ATMs
The UK Financial Conduct Authority (FCA) is taking a strong stance against illegal cryptocurrency ATM operators. Using its power under money laundering regulations, the Financial Conduct Authority (FCA) has carried out raids on cryptocurrency ATMs suspected of illegal activities across England.
The measures, which follow previous operations in east London and Leeds, are part of the Financial Conduct Authority’s (FCA) efforts to crack down on unregulated cryptocurrency operations. This highlights global pressure for stronger cryptocurrency regulation, mirroring steps taken in California. The balance between innovation and security remains a fundamental concern for regulatory bodies around the world.
Grayscale files for new spot Bitcoin ETF on NYSE Arca
Major cryptocurrency investment firm Grayscale Investments has filed a new application with the U.S. Securities and Exchange Commission for a new spot Bitcoin exchange-traded fund (ETF). The new filing aligns with Grayscale’s ongoing effort to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF, according to a statement from the firm. The news comes weeks after Grayscale won an SEC lawsuit for its spot Bitcoin ETF review, with a court of appeals ordering the SEC to explain why it rejected Grayscale’s application in June 2023. The company also filed with the SEC to list an Ether futures ETF in September.
New York Attorney General sues Gemini, Genesis, DGC for allegedly defrauding investors
New York’s attorney general has filed a lawsuit against cryptocurrency firms Gemini, Genesis and Digital Currency Group (DCG) for allegedly defrauding more than 23,000 investors through the Gemini Earn investment program. The suit claims that Gemini assured investors that the program was a low-risk investment, while investigations carried out by the office of New York State Attorney General Letitia James found that Genesis’ financials “were risky.” The lawsuit also charges Genesis’ former CEO, Soichiro Moro, and its parent company’s CEO, Barry Silbert, with defrauding investors by attempting to conceal more than $1.1 billion in losses. In addition, the court case looks to ban Gemini, Genesis and DCG from operating in the financial investment industry in New York.
Former FTX engineering director faces up to 75 years in prison following guilty plea
Nishad Singh, the former engineering director at now-defunct crypto exchange FTX, faces up to 75 years in prison for charges related to defrauding users of the crypto exchange. He pleaded guilty to fraud charges as part of his cooperation agreement with the U.S. prosecutors. During his testimony this week, Singh said that when liquidity issues at FTX began in November 2022, he felt “suicidal for some days” while dealing with alleged inconsistencies between the exchange’s public statements and its activities behind the scenes. Singh also claimed that Bankman-Fried had the habit of deciding on purchases through Alameda Research by himself.
Binance shutting down European Visa debit card in December
Elon Musk, Mark Cuban team up to contest SEC trial strategies
Elon Musk, Mark Cuban and others have collaboratively submitted a shared amicus brief to the Supreme Court of the United States to raise concerns about the U.S. Securities and Exchange Commission’s (SEC) approach to conducting internal proceedings without the inclusion of juries. The context of this legal challenge centers around the SEC vs. Jarkesy case. George Jarkesy argues that the SEC’s internal adjudication process, which lacks a jury and is overseen by an administrative law judge appointed by the commission, contradicts his Seventh Amendment rights. Effectively resulting in a single entity fulfilling the roles of judge, jury and enforcer.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $29,590, Ether (ETH) at $1,607 and XRP at $0.52. The total market cap is at $1.12 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bitcoin SV (BSV) at 59.00%, Stacks (STX) at 25.91% and MX TOKEN (MX) at 25.26%.
The top three altcoin losers of the week are Conflux (CFX) at -8.03%, Frax Share (FXS) and Sui (SUI) at -6.35%.
“Using publicly available information to learn is not stealing. Nor is it an invasion of privacy, conversion, negligence, unfair competition, or copyright infringement.”
“After extensive DAO forum discussion followed by community vote, the sunsetting of the Lido on Solana protocol was approved by Lido token holders and the process will begin shortly.”
BTC price hits 2-month high amid bet Bitcoin will break $32K ‘soon’
On Oct. 20, data from Cointelegraph Markets Pro and TradingView captured new two-month Bitcoin highs of $30,233 on Bitstamp. BTC price showed continued strength during the Asia trading session on the same day, with a slight comedown taking the spot price back below $29,500.
With volatility still evident, market participants argued that a weekly candle close was needed in order to establish the rally’s true staying power. For Keith Alan, co-founder of monitoring resource Material Indicators, the 100-week moving average (MA) at $28,627 was of particular importance.
“This move is one to watch, but what I’m watching for right now is to see if this Weekly candle closes above the 100-Week MA and if next week’s candle can stay above it with no wicks below,” Alan wrote in part of an X post on the day. “Some might consider that a confirmation of a bull breakout, but this market is known for squeezes and fake outs so I’m looking for more confirmations. For me BTC will also need to take out prior resistance at $30.5k, $31.5k and ultimately $33k to call a bull breakout confirmed and validated.”
FUD of the Week
Fantom Foundation hot wallet hacked for $550K
The Fantom Foundation, the developer of the Fantom network, has been hacked for over $550,000 worth of cryptocurrency. The foundation confirmed the attack on X, claiming that most of the funds stolen belonged to other users and that 99% of the foundation’s funds remain safe. Blockchain security researchers initially reported that the attacker stole approximately $7 million in crypto. The Fantom Foundation later released an official statement saying that some of the wallets labeled “Fantom: Foundation wallet” were mislabeled by block explorers and that not all the stolen funds were from the foundation.
TrueCoin’s third-party vendor breach potentially leaks TUSD user data
TrueUSD (TUSD) announced a potential leak of certain Know Your Customer (KYC) and transaction history data after one of TrueCoin’s third-party vendors was compromised. The company was the operator of the TUSD stablecoin until July 13, 2023. The impact of the attack and the resultant data leak is yet to be identified, as the total number of users’ data was not revealed during the announcement. Data collected from such breaches — names, email addresses and phone numbers, among others — are typically used for phishing attacks. Attackers reach out to unwary investors by mimicking various crypto services, often promising high profits in short amounts of time.
Web3 game project allegedly hired actors to pose as executives in $1.6M exit scam
The development team for gaming project FinSoul carried out an alleged exit scam, siphoning away $1.6 million from investors through market manipulation, according to a recent report from blockchain security platform CertiK shared with Cointelegraph. The FinSoul team allegedly hired paid actors to pretend to be its executives, then raised funds for the sole purpose of developing a gaming platform. However, instead of actually creating the platform, the FinSoul team allegedly transferred $1.6 million in bridged Tether from investors to itself. Blockchain data indicates developers then laundered the funds through cryptocurrency mixer Tornado Cash.
Big Questions: What did Satoshi Nakamoto think about ZK-proofs?
What was once a passing interest of Bitcoin inventor Satoshi Nakamoto, zero-knowledge-proof technology is now a major part of the crypto world.
Ethereum restaking: Blockchain innovation or dangerous house of cards?
“Restaking” involves reusing staked Ether to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. But many fear restaking could disrupt Ethereum’s chain itself.
Bitmain’s revenge, Hong Kong’s crypto rollercoaster: Asia Express
Bitmain allegedly fires staff for speaking out against salary cuts, Hong Kong investors lose faith in crypto after JPEX scandal, Bitget gets a new crypto credit card and more.
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Opinions expressed by Entrepreneur contributors are their own.
Even the most novice degens know that the only rule that applies to cryptocurrency markets is that there are no rules. Not even the world’s brightest minds can outpace the mayhem that is the world of digital assets. One minute, Michael Saylor and Microstrategy could be live on CNBC discussing their latest billion-dollar Bitcoin purchase, and the next, Jim Cramer could be telling America that he’d never touch Bitcoin with a ten-foot pole, only a couple of weeks after calling it digital gold — it’s crazy.
The market has been rather uninteresting due to asset prices traveling sideways for the better part of this year. Nevertheless, hope in the vision of the Federal Reserve’s mythical “soft” landing, combined with the upcoming Bitcoin halving, has the Web3 community salivating at the prospect of many life-changing opportunities that could be within reach soon. With greed in the air, it would be foolish to ignore the difference in the landscape as the market sentiment shifts.
Whether it’s the likes of BlackRock looking to issue ETFs to commercialize crypto exposure, corporate adoption, multiple IPOs, the rise of artificial intelligence or the attempted onslaught of regulation, there hasn’t ever been this much discourse around the digital asset class. That’s exactly why you need to know three key things to capitalize on what’s to come.
One of the most common mistakes prospective investors make, regardless of the target market, is outsourcing critical thinking skills instead of developing their own. Most investors would rather follow someone else’s investment decisions instead of doing their own analysis.
That’s not to say that there is anything wrong with seeking the guidance of someone with more experience; however, it’s important to remember that finances, goals, and risk appetite vary from person to person. Blindly following anyone’s advice, no matter who they are, is a surefire way to make losing trades. Instead, cultivate the ability to ascertain the fair market value of an asset so that you can capitalize on whatever arbitrage opportunities exist within a given market.
During times of prosperity, it’s quite common for novice investors to fall victim to scams. Whether it’s a personal security issue gone wrong that leads to a complete loss of funds or being fooled into investing heavily in a meme coin pump-and-dump, it’s important to remember that there’s no such thing as easy money. Being equipped with the tools to properly evaluate the viability of an investment on its merit alone is the biggest key to financial freedom.
2. Crypto’s tiny!
As I write this article, the crypto market capitalization (i.e., the total size) is hovering around $1 trillion. By all accounts, this is an outrageously large number for an asset class still unacknowledged by some of the nation’s elite. However, it pales compared to the vast majority of other asset classes. For context, the US stock market cap is about $47 trillion, while Apple ($AAPL) alone, with a market cap of $3 trillion, is roughly 3x larger than the entirety of crypto.
Should crypto’s mission to update our archaic financial system as well as financially connect the most economically ostracized parts of the world succeed, the potential upside is undeniable. For example, the recent progress we’ve seen in developing a Bitcoin spot ETF will drastically increase opportunities for the everyday person to gain crypto exposure without having to take on the operational risk of self-custody.
There is an astronomical disparity in the global sentiment towards digital assets. Namely, we’ve seen more liberated financial markets overseas, like the United Emirates or various countries in Latin America, embrace crypto with open arms while many Americans remain emotionally scarred by the narratives that have been weaponized against them to discourage participation.
According to a study done by the Pew Research Center, 75% of Americans are not confident in the safety and reliability of crypto. This stark contrast sets the stage for rapid price swings. It brings to light the potentially misaligned incentives that might’ve come into play amidst a weakening dollar and ever-changing geopolitical landscape.
Perhaps the most significant change that has occurred over the last market cycle is the influx of use cases that have finally come to fruition. The overwhelming success and adoption of non-fungible tokens (NFTs) in the world of art and ticketing and the likes of Gucci, El-Salvador and the world’s most prestigious brands and countries deeming cryptocurrency legitimate currency, Web3 is no longer possible; it’s happening.
Various breakthroughs in decentralized technologies have largely addressed the initial limitations of many decentralized protocols. The emergence of proof-of-stake and its many derivatives have enabled builders to put decentralized technologies in the hands of consumers and drastically expand their applications. And while most degens have been of the opinion that the world of distributed ledgers is ‘winner takes all,’ it now seems that the broader Web3 community is interested in finding ways to build bridges to bolster collaboration, an essential ingredient for mass adoption.
Conclusion
We are on the precipice of what could be the greatest transfer of wealth that has ever happened in human history. The essence of blockchain is to create an equitable world where no one would ever fall victim to the abuse of power.
Bitcoin’s creator, Satoshi Nakamoto, dreamed about a more financially free world where everyone can participate. And while he could not, in his wildest dreams, envision how it would all play out, he must be happy to see both the financial and lifestyle benefits of his technology becoming reality for so many people worldwide.
Though now delayed, the SEC decision surrounding the spot Bitcoin ETF filing from BlackRock has everyone even remotely involved with crypto on the edge of their seats, and for good reason. BlackRock has more assets under management than most countries’ entire GDPs, and having the world’s largest asset manager entering the crypto game will send reverberations across the entire landscape. More importantly, an SEC approval would signal to other leading traditional financial institutions that crypto is back on the menu as an investment and product option.
But if the crypto and blockchain community has learned anything, it’s that nothing is promised. Despite BlackRock’s near-flawless ETF approval rate and surprise courtroom wins for Grayscale and Ripple Labs against the SEC — truly, anything can happen.
So, let’s say we expect the unexpected, and the SEC rejects BlackRock’s ETF filing. It’s unlikely that this will dampen crypto’s institutional ambitions and strides to continue partnering with traditional financial infrastructures. You can even see this change in trajectory throughout the industry’s bear market, where the projects still left standing have shifted gears towards sustainable growth and technical, practical use cases.
With shifting developments come shifting trends, and the institutional blockchain space is no exception. But with that in mind, it is vital to remember that people behind the institutions guide their decisions and strategies amid these trend shifts. Of course, it’s not a good idea to hop on every trend in any field, and the traditional financial space is usually well aware of that.
But what should the human force behind these traditional institutions be prepared for in the blockchain space apart from the incoming SEC decision and ETF filings? The directions point towards the rise of tokenized real-world assets (RWAs).
If you’re outside of the blockchain bubble, tokenized RWAs have been steadily climbing the ranks as a viable, long-term way to utilize blockchain technology. Essentially, tokenizing a real-world asset involves creating a virtual investment vehicle that’s linked to a tangible item. That tangible item can range from precious metals, art, collectibles, and real estate.
In practice, tokenized RWAs open up the gates to a few differing uses. Let’s say you buy a house — an immutable record of your ownership can be put on the blockchain instead of receiving a deed. But tokenizing RWAs also allows assets to be fractionalized, meaning multiple people can own or invest in a fraction of a single physical asset.
Some projects centered around fractionalized RWAs did emerge in the last crypto bull run, but they usually honed in on NFTs and sustained themselves on diminishing hype cycles. Now, the focus on fractionalizing tokenized RWAs targets market-resistant asset classes where investor appeal is perennial. By doing so, fractionalization also allows assets with a high-cost barrier to become more accessible to everyday investors, such as fine art or precious metals. The average person might not want to own a portion of one single pair of rare sneakers, but owning part of a Warhol could be more enticing.
Tokenized and fractionalized RWAs show what can happen when crypto and blockchain technology work in tandem with traditional finance and not in opposition to it. They also demonstrate a viable path forward for institutions beyond whatever happens with the slew of crypto ETFs sitting on the SEC’s docket.
However, creating digital assets for institutional use isn’t a simple plug-and-play task. There are real technological, security, and regulatory hurdles to clear in bringing RWAs on-chain and making them available for the public to interact with. Yes, many countries and international regulators are moving towards some type of regulatory clarity with regard to blockchain and cryptocurrency. But that means the people working for traditional financial institutions have to be firmly aware of what they’re getting into.
That kind of infrastructure creation to ensure traditional financial institutions are offering digital assets safely and in line with regulatory requirements can be daunting. However, some crypto-native companies aim to help carry the weight. GK8, for instance, tailors its product line for institutional use—covering everything from custody and enterprise-level security to tokenization.
GK8 serves as an example of how traditional institutions can lean on crypto-native companies for their expertise and prowess in navigating the sector’s ever-evolving threats. Many crypto companies have spent years perfecting and battle-testing their products in anticipation of institutional use, which is what makes them stand out.
Crypto and blockchain products coming back down to earth has translated into heightened authentic interest from massive institutions that can take mass adoption to a new level. But with so many competing paths and uncertainties hanging in the air, it’s hard to tell what exact next steps institutions will take. Either way, preparation, knowledge, and trust are essential to foster an effective and efficient working relationship between the traditional and decentralized finance spaces.
FTX founder Sam Bankman-Fried was sent to jail Friday to await trial after a bail hearing for the fallen cryptocurrency wiz left a judge convinced that he had repeatedly tried to influence witnesses against him.
U.S. District Judge Lewis A. Kaplan ordered Bankman-Fried’s bail revoked after prosecutors said he’d tried to harass a key witness in his fraud case last month when he showed a journalist her private writings and in January when he reached out to the general counsel for FTX with an encrypted communication.
His lawyers insisted he shouldn’t be jailed for trying to protect his reputation against a barrage of unfavorable news stories.
Kaplan said he had concluded there was probable cause to believe Bankman-Fried had tried to “tamper with witnesses at least twice” since his December arrest.
A defense lawyer said an appeal of the incarceration order would be filed and asked for an immediate stay of the order.
The 31-year-old has been under house arrest at his parents’ home in Palo Alto, California, since his December extradition from the Bahamas on charges that he defrauded investors in his businesses and illegally diverted millions of dollars’ worth of cryptocurrency from customers using his FTX exchange.
Bankman-Fried’s $250 million bail package severely restricts his internet and phone usage.
Two weeks ago, prosecutors surprised Bankman-Fried’s attorneys by demanding his incarceration, saying he violated those rules by giving The New York Times the private writings of Caroline Ellison, his former girlfriend and the ex-CEO of Alameda Research, a cryptocurrency trading hedge fund that was one of his businesses.
Prosecutors maintained he was trying to sully her reputation and influence prospective jurors who might be summoned for his October trial.
Ellison pleaded guilty in December to criminal charges carrying a potential penalty of 110 years in prison. She has agreed to testify against Bankman-Fried as part of a deal that could lead to a more lenient sentence.
Bankman-Fried’s lawyers argued he probably failed in a quest to defend his reputation because the article cast Ellison in a sympathetic light. They also said prosecutors exaggerated the role Bankman-Fried had in the article.
They said prosecutors were trying to get their client locked up by offering evidence consisting of “innuendo, speculation, and scant facts.”
Since prosecutors made their detention request, Kaplan has imposed a gag order barring public comments by people participating in the trial, including Bankman-Fried.
David McCraw, a lawyer for the Times, had written to the judge, noting the First Amendment implications of any blanket gag order, as well as public interest in Ellison and her cryptocurrency trading firm.
Ellison confessed to a central role in a scheme defrauding investors of billions of dollars that went undetected, McGraw said.
“It is not surprising that the public wants to know more about who she is and what she did and that news organizations would seek to provide to the public timely, pertinent, and fairly reported information about her, as The Times did in its story,” McGraw said.
Opinions expressed by Entrepreneur contributors are their own.
Cryptocurrency has made significant advancements in terms of functionality, applications and security. These developments have sparked interest across various industries, including real estate.
Firstly, let’s discuss how cryptocurrency has transformed various industries. Its decentralized nature and ability to facilitate secure and fast transactions have revolutionized sectors such as finance, supply chain management and healthcare. The adoption of cryptocurrency has proven its value in providing efficiency and transparency.
However, these benefits are not limited to technology-based industries. The use of blockchain and cryptocurrencies have also had a positive impact on real estate.
Cryptocurrency’s influence on the real estate industry
Real estate, being an asset-heavy industry, has also embraced cryptocurrency. The integration of blockchain technology has streamlined property transactions through the elimination of intermediaries, reducing costs and time.
The use of blockchain technology has also helped reduce fraud and data tampering. The recent implementation of smart contracts, which are self-executing, can be used as a legally binding document to ensure that both parties fulfill their obligations.
Notable successes of cryptocurrency in other industries
To give a better idea of how cryptocurrency can be used in real estate, it’s important to examine its successes in other sectors.
For instance, businesses have successfully raised funds through Initial Coin Offerings (ICOs) to finance projects and developments. This innovative approach has democratized investment opportunities, allowing small investors to get in on the action.
Businesses have also started using cryptocurrencies as a payment method, thereby reducing transaction costs and increasing transparency. For instance, Tesla Inc.’s CEO, Elon Musk, announced on Twitter that he would be accepting Bitcoin for purchases of the company’s cars.
Advancements and applications in real estate
Moving on, let’s explore the advancements of cryptocurrency in the real estate industry.
One notable blockchain-enabled implementation is tokenization. It enables more individuals to invest in real estate with greater flexibility by allowing them to own a portion of the asset rather than buying it outright.
Smart contracts can perform many of the functions that a traditional rental agreement does, such as ensuring timely payments and reducing disputes.
The use of blockchain can also increase transparency and efficiency by making the data on real estate transactions easily accessible to all parties. Blockchain technology is also being used in land registries to improve how property ownership is recorded. This is a big deal because it enables the government to track who owns what property and how it changes hands.
The technology also makes it harder for people to forge documents or hide ownership information from authorities. If a government decides that blockchain should be used for land registry, then all local governments will have access to the data in real time.
While blockchain technology has the potential to bring innovation and efficiency to the real estate industry, there are several challenges and problems that the industry must overcome in order to incorporate blockchain technology successfully. Here are some of the most common issues:
Lack of standardization: There is a lack of standardization in the real estate industry, making it difficult to develop uniform blockchain solutions that fit all parties. The real estate industry includes diverse groups of stakeholders, from investors to buyers, sellers, agents and government agencies, and each has its own unique processes, requirements and data.
Data privacy and security:Privacy and data security are critical for real estate transactions, and blockchain technology aims to create secure and private transactions. However, blockchain transactions are still vulnerable to privacy risks if proper measures are not taken. For instance, a blockchain network’s confidentiality may be compromised if a malicious actor gains control over 51% of the network’s computing power.
Cost and complexity: Implementing blockchain technology requires significant investment, time and expertise. Its integration would require significant IT infrastructure and staff expertise, which may be a challenge for some companies that do not have the required resources.
Limited adoption: The real estate industry is traditionally slow to adopt technology, resulting in a lack of blockchain awareness across the industry. Therefore, many industry players are skeptical of blockchain’s potential benefits and reluctant to adopt new technology.
Legal and regulatory frameworks: The uncertainty surrounding regulatory and legal frameworks at national or international levels makes it challenging to implement blockchain technology into the real estate industry. Because the regulations governing cryptocurrencies and their use in real estate transactions vary widely from one country to another, it can be difficult to make blockchain technology a standard adoption in the industry.
The integration of blockchain technology into the real estate industry faces various challenges related to standardization, privacy, cost, complexity and industry adoption. Overcoming these challenges will be essential for driving innovation and improving efficiency in the real estate industry.
My final thoughts
Cryptocurrency has undoubtedly brought convenience and efficiency to the real estate industry. Its potential to streamline transactions, enable fractional ownership and ensure transparency has garnered significant attention.
However, we must be aware of its limitations, such as solving non-financial real estate issues and the environmental impact of blockchain technology. While cryptocurrency shows promise, it may not be the sole future of real estate transactions.
A hybrid approach, combining the benefits of cryptocurrency with traditional practices, might be the way forward. Continual exploration and innovation will shape the future of real estate transactions, ensuring efficiency, transparency and sustainability.
Ousted leaders in Myanmar are launching a crypto-based bank to bankroll efforts to claw back government control from military rule and expand banking access to a population where already limited financial access has been further choked by two years of civil strife.
Named for the Spring Revolution — the protest movement against the ruling military junta — the “Spring Development Bank” will run on a blockchain-based network and perform currency swaps on a decentralized exchange with crypto-coins pegged to the U.S. dollar.
The neobank plans to offer currency swaps, loans, fixed deposits, prize-linked savings accounts and other financial services. The beta launch for the online bank is scheduled for Saturday, with plans for the bank to become fully operational in August, a spokesperson for the bank said Thursday.
Spring Development Bank’s launch comes as an effort — spearheaded by supporters of the National Unity Government, the democratically elected shadow government recognized by the United Nations and the European Parliament that was toppled in the State Administration Council’s military coup two years ago — to provide funding for the exiled government and widen financial access in a country where already limited banking access has been stymied by two years of authoritarian rule and conflict.
“It’s basically a failed state at this point. The economy has collapsed and the banking system has collapsed. Poverty is endemic. The military is committing massive abuses all over the country,” said Joshua Kurlantzick, senior fellow for Southeast Asia at the Council on Foreign Relations. “The NUG are trying anything possible to provide financial autonomy.”
The neobank will enable users to donate directly to the revolutionary effort and bank in four currencies — U.S. and Singaporean dollars, the Thai Baht and the Myanmar kyat — convertible to the fiat-backed stablecoin Tether, when exchange rates are most favorable. Eventually, the bank plans to also support British pounds, euros, South Korean won, Japanese Yen and other currencies.
Run on the Ethereum-compatible blockchain network Polygon and based on the Uniswap Protocol, a decentralized exchange, the bank will offer a 2% spread on exchange swaps and a lottery program that consumers can enter with non-fungible tokens.
To protect its users from being targeted by the military junta, which has become notorious for its violent repression of dissidents, Spring Development Bank will run on a web-only platform to prevent an app from identifying its users.
“The bank’s interface will look and feel like an application, but we encourage everyone to access it using their incognito window so it doesn’t store any browser history,” a bank spokesperson told Cointelegraph.
Hard cash is hard to come by in Myanmar, where the use of foreign currencies is restricted and banks have reportedly been forced to suspend accounts tied to resistance efforts. That has stymied the shadow government’s efforts to fund its challenge to the junta, which have included campaigns to issue revolutionary bonds, host auctions and reign in support from foreign governments.
“We cannot just move funds into a banking system controlled by the military, so we have to provide this alternative financial system that’s based on trust and guaranteed by the government,” Tin Tun Naing, the governor of Myanmar’s interim central bank and acting minister for finance and industry, told Cointelegraph.
Spring Development Bank also serves as an opportunity to expand banking access to the roughly 55 million Burmese living in the country — of whom three quarters were unbanked in 2019, according to a report from the Yangon-based business consultant ONOW — and the some 2 million beyond its borders that frequently send money back home.
“One thing [the NUG] is probably trying to do is provide services to the public,” Kurlantzick said. “It’s an incredibly impoverished population.”
After being offered to the public in two phases and raising funds through remittances, currency exchanges, loans and other means, the bank aims to onboard 100,000 active users within six months of operations and 500,000 users within a year’s time.
Last year, the NUG planned to launch a de facto digital central bank currency, the Digital Myanmar Kyat, in an attempt to broaden access to financial services and disrupt the ruling military power.
But with technological access limited in a country wrecked by violence and where crypto is a foreign concept to most people, setting up a full-fledged bank may prove to be a hard undertaking.
“That’s different than trying to set up banks with crypto in a country in an actual war zone,” Kurlantzick said.
“You have weak internet access and an inability for many people to assess knowledge about global markets,” Kurlantzick added. “You’re talking about operating in something that’s the equivalent of 1993 Somalia. So, the ability to pull off any of these things seems quite difficult to me.”
But for revolutionaries already accustomed to unlikely odds, the bank’s purpose is more straightforward.
“Spring Development Bank and the blockchain technology it’s powered by is the natural progression in terms of a fundraising strategy for the NUG,” a bank spokesman told Cointelegraph.
