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- Bitcoin, Ethereum, Cosmos and more Week 22 2024
Bitcoin, Ethereum, Cosmos and more Week 22 2024
Keeping you updated on crypto, web3 and blockchain
TL;DR
Argentina Looks to Emulate El Salvador’s Bitcoin Success
Tokyo-Listed Metaplanet to Expand Bitcoin Holdings
Taiko Launches Ethereum Rollup with Vitalik’s Inaugural Block Proposal
Ethereum ETF Could Launch in June as BlackRock Updates S-1 Filing
POKT Network Integrates with the Interchain
Binance Pay Integrates INJ for Global Payments
NY Attorney General Warns Crypto Companies to ‘Play By The Rules’
Meme coins take a nosedive as Donald Trump faces conviction amidst political upheaval
and much more!
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Bitcoin Highlights of the Week
The Argentine government is collaborating with El Salvador to understand their experience with Bitcoin adoption and other crypto activities. Argentina’s National Securities Commission (CNV) had a meeting with El Salvador’s National Commission of Digital Assets (CNAD) to discuss how both countries handle cryptocurrency use and regulation, as announced by the CNV.
On May 23, CNV president Roberto Silva, CNV vice president Patricia Boedo, and CNAD president Juan Carlos Reyes talked about El Salvador's journey as the first country to make Bitcoin legal currency in September 2021. The officials shared their approaches and ideas on using cryptocurrencies in the global economy, focusing particularly on El Salvador's Bitcoin adoption.
Silva pointed out that El Salvador is not only a leader in adopting Bitcoin but also successful in the overall cryptocurrency industry. He emphasized the importance of the insights gained by CNAD, which regulates the digital asset market in El Salvador. Silva said: “We want to strengthen our relationship with El Salvador, and we are considering signing collaboration agreements with them.”
Japanese company Metaplanet Inc has announced plans to buy more Bitcoin as part of its bullish strategy. The company decided to spend ¥250 million (about $1.59 million) to add to its Bitcoin holdings. Currently, Bitcoin's price is around $68,000 after a slight dip from $71,000.
On May 28, Metaplanet disclosed to investors its plan to buy more Bitcoin and update its accounting strategies. This new purchase adds to their existing 117.7 BTC, which they bought at an average price of ¥10,193,536 each.
For long-term holdings, Metaplanet will value Bitcoin at its purchase cost. For short-term holdings, they will revalue it quarterly based on market prices. Any gains or losses will be reported as non-operational income, with significant impacts on quarterly earnings disclosed promptly.
This new acquisition follows a previous purchase of ¥200 million worth of Bitcoin (about $1.25 million). Inspired by Michael Saylor’s MicroStrategy, Metaplanet aims to increase its Bitcoin holdings to $6.25 million, as announced in April. The company sees this investment as a symbol of innovation and adaptability in financial markets.
For the first time in over five years, Mt. Gox has moved $9.62 billion worth of Bitcoin, ahead of the October 2024 repayment deadline.
The collapsed cryptocurrency exchange transferred 141,686 Bitcoins into a new wallet, raising hopes among creditors that they may finally get their money back. This large transfer comes from several cold wallets associated with Mt. Gox and is seen as part of the exchange’s plan to repay users by October 31, 2024.
Anndy Lian, a blockchain expert, mentioned that this move is likely part of the plan to distribute the assets back to creditors. Mt. Gox's trustee, Nobuaki Kobayashi, confirmed that the consolidation is a step towards making these repayments, although the exact timing is still unclear.
The current deadline for repayment could face delays, as it was initially set for October 2023. Mt. Gox owes over $9.4 billion worth of Bitcoin to its 127,000 creditors, who have been waiting since the exchange collapsed in 2014 following multiple hacks.
Luxor Technology Corporation and Bitnomial Inc. have introduced a new Bitcoin mining derivative product on Bitnomial’s U.S. derivatives exchange. This product, called Hashrate Futures, allows investors to speculate on future Bitcoin mining power and potential revenue.
What Are Hashrate Futures? Hashrate Futures are a type of financial contract that lets investors trade Bitcoin’s computing power. These contracts, known under the ticker HUP, give miners a way to hedge their revenue and allow investors to gain exposure to Bitcoin mining.
Key Features:
Futures Contract: An agreement to buy or sell Bitcoin’s computing power at a future date for a set price.
Hashrate Trading: Trades Bitcoin’s computing power, known as the hash rate.
Hashprice Index: Uses Luxor’s Bitcoin Hashprice Index to determine the contract’s value.
Contract Size: Each Hashrate Futures contract represents 1 petahash (PH) and has a monthly duration.
Luxor also provides non-deliverable Hashrate Forwards, which are traded over-the-counter and do not settle on a Commodity Futures Trading Commission-regulated exchange.
This new product offers a novel way for investors to engage with the Bitcoin mining industry, while providing miners with tools to manage their financial risk.
Phantom Wallet's recent decision to integrate support for BTC ordinals marks a significant milestone for the Solana network, bringing about a renewed sense of activity and engagement.
The integration of BTC ordinals into Phantom Wallet represents a pivotal step forward for users, as it eliminates the need to rely on centralized exchanges or unfamiliar wallets to access these assets. This update enables seamless transactions directly through the Phantom platform, empowering users with greater accessibility and convenience.
Furthermore, this development underscores Phantom's ongoing commitment to enhancing the Bitcoin experience for its users, following the initial beta release in December 2023. With this integration, customers can now easily buy and sell ordinals and BRC-20s through various applications, including Magic Eden, Atlas 3, BTC Ordinals Wallet, and UniSat.
Ethereum Highlights of the Week
Taiko, a new rollup protocol aimed at improving Ethereum's scalability, is now live on the mainnet. Ethereum co-founder Vitalik Buterin marked the occasion by proposing the first block, which included the names of all Taiko core contributors.
Vitalik Buterin's Quote: Vitalik shared his excitement, saying, "I'm excited to see Taiko launching as a rollup. Ethereum benefits from Layer 2 solutions taking different approaches, and I appreciate them being among the first to go in this direction."
Taiko's mainnet launch represents a significant step forward in blockchain scalability. Using this rollup design, Ethereum validators sequence transactions and blocks for Taiko, ensuring strong security and performance from the base layer.
Trailblazers Campaign: To celebrate the launch and thank the community, Taiko will reward participants with 100 million TKO tokens (10% of the total supply) through the Trailblazers campaign. This campaign will be divided into seasons, allowing both new and long-term supporters to earn tokens. More details will be released soon.
Clearpool has launched the T-Pool for Hex Trust’s new stablecoin, USDX, on the Flare network. This new product offers an easy way to earn returns on your USDX holdings, along with additional FLR rewards. T-Pool Features are:
Flexibility: There are no lock-up periods, so you can stake and withdraw your USDX anytime without any restrictions, similar to having instant access to your savings in a high-yield account.
Maximize Returns: You earn a 4% annual percentage yield (APY) on your USDX, plus extra rewards in FLR, enhancing your overall returns.
For a smooth experience, Clearpool has provided a detailed guide to help you navigate earning yields on USDX and extra FLR rewards.
Understanding USDX: USDX is developed by HT Digital Assets under Hex Trust's tokenization ecosystem. It offers the stability of a 1:1 backing against the U.S. dollar or equivalent assets, ensuring reliable value. These reserves are held by regulated tier-1 financial institutions, much like your savings being safeguarded by reputable banks, giving you confidence in the stability and resilience of USDX.
This setup makes USDX a crucial element in the decentralized finance (DeFi) landscape on Flare, offering both stability and opportunities for earning attractive yields without complex restrictions.
ENS Labs has proposed a major upgrade called ENSv2, which aims to move the Ethereum Name Service (ENS) to a Layer 2 network. This migration is designed to improve scalability and reduce gas fees by shifting core functions from the Ethereum mainnet to a more efficient Layer 2 chain.
If approved, users will benefit from lower transaction costs. ENS Labs has not yet chosen the specific Layer 2 network for this migration, but it will be the new platform for ENS interactions once the move is complete.
The upgrade also includes a new "hierarchical registry system" for better management of .eth domain names. This system will allow users to manage subdomains and configure resolvers more effectively. Nick Johnson, Lead Developer and Founder of ENS Labs, explained that this new system will give nameholders access to a unique registry for easier management.
ENS provides the .eth name service, which simplifies Ethereum addresses. Over two million .eth names have been registered so far. The ENSv2 upgrade is expected to enhance multi-chain interoperability, increasing the utility and reach of ENS across different blockchain ecosystems.
BlackRock has taken a significant step towards launching its Ethereum (ETH) exchange-traded fund (ETF) by updating a crucial filing with the Securities and Exchange Commission (SEC). Analysts believe this move makes the launch of the first U.S. spot Ether ETFs by late June a "legit possibility."
On May 29, BlackRock updated its Form S-1 for the iShares Ethereum Trust (ETHA), following the SEC's approval of its 19b-4 filing. Both approvals are necessary for the ETF to start trading.
"This is a good sign. We might see other filings soon," Bloomberg ETF analyst Eric Balchunas said. He mentioned that another round of updates to address SEC comments might be needed, but a late June launch is very possible. However, he added that a July 4th approval is more likely, with an earlier approval being a "long shot."
Bloomberg ETF analyst James Seyffart noted that BlackRock's updated S-1 indicates active collaboration between issuers and the SEC to launch spot Ethereum ETFs. The amendment also provided details about the seed capital investor, the entity funding the ETF to initiate trading.
Vitalik Buterin, one of the creators of Ethereum, recently explained that Ethereum layer-2 solutions are more than just a way to scale the network. They also serve as cultural hubs that enhance the Ethereum ecosystem beyond what the main chain can achieve on its own.
In a blog post on May 29, Buterin highlighted how layer-2 blockchains support various "subcultures" within the crypto community. These subcultures range from old-school "cypherpunks," who focus on building infrastructure without dictating its use, to philanthropic "regens," who prioritize providing public goods to the community. Additionally, there are "degens" who engage in speculative trading of trendy memecoins and NFTs.
Buterin noted that these diverse groups, first identified by Ethereum researcher Prof. Paul Dylan-Ennis, contribute to different approaches in scaling, virtual machine design, and application development. This diversity makes layer-2 solutions a dynamic and exciting part of the Ethereum ecosystem. For example, Buterin mentioned that institutional investors and NFT enthusiasts buying "monkey pictures" are vastly different in their cultural approaches, yet both find their place within the layer-2 landscape. This highlights how layer-2 solutions have become a key area for innovation and activity within the Ethereum community.
Cosmos Highlights of the Week
The POKT Network, known for its decentralized RPC infrastructure, is making its mark on the #Interchain. By integrating with the Interchain Stack, POKT Network gains access to cutting-edge blockchain technologies and establishes connections with over 100 IBC-enabled chains.
The recent launch of the Shannon Public Testnet marks a significant milestone for POKT Network. Drawing from four years of experience running the live Morse protocol, Shannon is built on the Interchain, incorporating valuable insights into its design.
What to Expect from Shannon Alpha 1 Testnet
Establishment of the blockchain's foundation
Introduction of building blocks for end-to-end Relay Mint = Burn mechanism
Provision of tooling, telemetry, and observability features
Comprehensive documentation for building, deploying, operating, and contributing
Engagement Opportunities for the Community: Community members are encouraged to explore and inquire about the Shannon Alpha 1 testnet. They can visit the initial block explorer and try out the faucet provided by POKT Network. Additionally, community feedback on desired information is welcomed.
Injective and Mercuryo have joined forces to revolutionize access to global financial services. With the integration of Mercuryo into the Injective ecosystem, users now have a seamless pathway to engage with a diverse range of applications built on Injective.
Injective, known for its lightning-fast layer-1 blockchain, is optimized for crafting cutting-edge Web3 finance applications. Developers harness Injective's powerful plug-and-play modules to create innovative decentralized applications (dApps) across various financial domains, including decentralized exchanges (DEXs), derivatives, prediction markets, and more.
The collaboration between Mercuryo and Injective marks a significant milestone in democratizing financial services worldwide. By providing secure, speedy, and user-friendly access to INJ—the native token of Injective—via fiat gateways, this partnership aims to accelerate mainstream adoption of Injective's ecosystem.
Kakeru has announced the launch of iUSD, a new stablecoin built on the Injective blockchain, marking a significant step forward in decentralized finance (DeFi). This move is part of Kakeru's rebranding effort, which emphasizes innovation and excellence.
Kakeru's transformation, inspired by ancient legends, aims to embody stealth, agility, and cunning, offering users a thrilling adventure in the DeFi space. The introduction of iUSD reflects this spirit, designed to provide stability and redefine the future of finance.
Key Features of iUSD:
Minting iUSD:
Users can mint iUSD by depositing accepted blue-chip assets as collateral, starting with nINJ.
iUSD is generated against the deposited collateral, providing a stable and reliable asset.
Using iUSD:
iUSD can be staked on Kakeru to earn rewards.
It functions like any other stablecoin, allowing users to purchase other stablecoins, assets, NFTs, and more.
Secret Network has teamed up with Unstoppable Domains to introduce the .secret Web3 top-level domain (TLD). This new TLD offers users a personalized digital identity that facilitates crypto transactions, integrates with hundreds of dApps, supports encrypted chats, and much more.
Unstoppable Domains, a leading Web3 domain name provider, enables users to replace complex crypto wallet addresses with simple, human-readable names. These domains are minted on the blockchain, ensuring full ownership and control without renewal fees. With the .secret domain, users can log into and transact with over 720 apps, wallets, exchanges, and marketplaces.
Key Features of .secret Domain:
Personal Digital Identity: Acts as both a website address and a digital identifier for creating unique profiles.
Blockchain Functionality: Enables sending and receiving cryptocurrencies, accessing integrated dApps, and private messaging.
Enhanced Privacy: Plans to integrate Secret’s Confidential Computing Layer for private domain registration and encryption of domain metadata.
Future plans include applying for a branded Web2 generic top-level domain (gTLD) with ICANN, which would elevate .secret to the same status as .com and .org by 2026.
Binance Pay, a rapidly expanding cryptocurrency payment solution developed by Binance, now supports Injective as a payment option. This integration empowers users to utilize INJ for transactions at various merchants and facilitates global peer-to-peer transfers, further promoting the adoption of Injective through the innovative Binance Pay platform.
About Binance Pay Binance Pay is a payment technology that allows users to seamlessly send, receive, and spend cryptocurrencies. It offers secure, contactless, and borderless payment solutions for everyday transactions. With support for major crypto assets like Bitcoin, Ethereum, Injective, and stablecoins, users have a wide array of options for making payments or receiving funds. The platform boasts over 30 million users and thousands of merchants globally, enabling payments for hotels, e-commerce, flights, and more.
Mass Adoption for Injective Injective is now one of the major blockchains integrated with Binance Pay. This significant leap forward allows the Injective ecosystem to tap into Binance Pay’s extensive network of users and merchants, facilitating easy transactions and payments with INJ. This integration is a major step in extending the adoption of Injective’s native asset.
Other Highlights of the Week
As the US government appears to ease its control over the crypto industry, New York Attorney General Letitia James has given a clear warning to the sector. James, who recently settled with Genesis for $2 billion, emphasized her stance on crypto companies.
Follow the Rules or Face Consequences…
Last week, the New York State Attorney General’s Office reached a $2 billion settlement with bankrupt platform Genesis Global Capital. This came as a resolution to a lawsuit filed by the NYAG’s Office in October 2023, marking the largest settlement against a crypto company in New York.
After the settlement, NY Attorney General Letitia James promised to continue overseeing the sector and protecting New York investors: New York investors deserve the peace of mind that comes from a properly regulated marketplace, and my office will always work towards that. During the weekend, James reiterated her stance on companies in the sector in a post. She issued a fresh warning to all cryptocurrency companies operating in the state, stating that they must comply with regulations like any other company.
Trump, known for stirring controversy, faces significant legal trouble once again. The former U.S. president has been convicted on 34 felony charges tied to the "hush money" case by a Manhattan jury. This news sent shockwaves through the market, particularly impacting meme coins, notorious for their volatility. Prices of coins featuring Donald Trump swiftly dropped post-conviction, showcasing how trader sentiment can swiftly influence their value.
In the crypto realm, the guilty verdict had a notable impact on meme coins associated with Trump. The TRUMP coin plummeted by up to 35%, shedding over $130 million from its market cap within a brief 20-minute window after the announcement. Although it partially rebounded, other Trump-related tokens like Super Trump (STRUMP) and Baby Trump (BABYTRUMP) didn't recover. Interestingly, the Joe Biden-linked Jeo Boden (BODEN) coin briefly surged by 6.4% post-verdict before declining.
This upheaval caused a slight dip in the market cap of political finance (PolitiFi) meme coins by 0.1%, totaling approximately $1.56 billion.
Regarding Trump's legal woes, the guilty verdict on May 30 involved 34 counts of falsifying business records, stemming from his lawyer's payment of $130,000 to an adult actress prior to the 2016 election.
DBS, Singapore’s leading bank, is reportedly a major holder of Ethereum (ETH), as revealed by on-chain analytics firm Nansen. According to Nansen's findings, an Ethereum address linked to DBS holds 173,753 ETH, valued at around $647 million, considering the current price of Ether at $3,730 per coin. Nansen's analysis suggests significant profits exceeding $200 million from Ether investments associated with this address.
While DBS has denied these allegations, stating it doesn't hold such a position on its books, the bank does provide various digital asset services, including custody solutions, a trading exchange for security tokens, and a portfolio management app integrating traditional and crypto assets. A recent DBS report noted a surge in crypto market interest across retail investors, high-frequency traders, and hedge funds.
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