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- Bitcoin, Ethereum, Cosmos and more Week 26 2024
Bitcoin, Ethereum, Cosmos and more Week 26 2024
Keeping you updated on crypto, web3 and blockchain
TL;DR
Dormant Bitcoin Wallet Awakens After 14 Years
Coinbase Sues SEC and FDIC for Regulatory Overreach
PancakeSwap Launches AI Prediction Market on Arbitrum
Vitalik Buterin Backs MegaETH in $20M round
Binance Supports Token Merge into ASI Alliance
Andromeda & Stargaze Forge NFT Innovation
Bitcoin Brings Aid to Gaza Through Taxi Driver's Efforts
Crypto Ignored in Biden-Trump Debate
and much more!
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Bitcoin Highlights of the Week
A Bitcoin wallet from the Satoshi era, inactive since 2010, recently transferred 50 BTC to Binance. This wallet, belonging to a miner who earned the BTC as a reward in July 2010 when Bitcoin was valued at $0.05, signifies early mining activity when the reward per block was 50 BTC. The miner’s initial $25 in BTC is now worth approximately $3 million, reflecting Bitcoin's dramatic price increase over the years.
The transaction underscores the rarity of mining a single block in 2010, given today's high network hashrates and increased mining difficulty. The transfer of Bitcoin to centralized exchanges like Binance is often seen as a bearish signal, as it usually implies selling. Recently, several dormant wallets from the early Bitcoin days have become active, transferring or selling their holdings.
The German government has sold 900 Bitcoin, worth over $54 million, through transactions to Coinbase and Kraken, among others. This move, part of ongoing interactions with various wallets, including an unknown entity "139Po," has raised concerns about increased selling pressure on Bitcoin.
Despite these sales, the government still holds a substantial 46,359 BTC, potentially influencing market dynamics, particularly amid Bitcoin's current downtrend nearing the $60,000 mark. Analysts suggest these actions could further impact Bitcoin's price, which has already seen an 11% decline this month.
Coinbase has sued the SEC and FDIC, accusing them of denying information requests and coordinating efforts to restrict the crypto industry's access to banking services. Filed on June 27th in Washington D.C., the lawsuits claim that the agencies failed to comply with Coinbase's Freedom of Information Act (FOIA) requests, which sought to reveal regulatory attempts to limit banking for crypto firms.
Coinbase asserts that regulators are deliberately trying to sever Bitcoin and crypto companies from vital financial lifelines, comparing this to the Obama-era "Operation Choke Point." The exchange contends that the SEC and FDIC are exceeding their mandates and violating transparency laws, aiming to expose this alleged regulatory overreach.
The U.S. government transferred 3,940 Bitcoin to Coinbase Prime on June 26, according to Arkham Intelligence. These Bitcoin were seized from convicted drug dealer Banmeet Singh during his January 2024 trial. Singh, arrested in London in 2019 and extradited to the U.S. in 2023, ran a narcotics network from 2012 to 2017, leading to the surrender of over 8,100 Bitcoin, valued at $150 million.
The transfer has sparked fears of market sell-offs, compounded by similar actions from other governments and the Mt. Gox bankruptcy estate. The U.S. currently holds around 214,000 Bitcoin, worth about $13 billion.
Mt. Gox, the defunct cryptocurrency exchange that lost 850,000 Bitcoin in 2014, will start repaying users in Bitcoin and Bitcoin Cash in July 2024. The exchange’s rehabilitation trustee announced that repayments will be processed in collaboration with cryptocurrency exchanges, asking users for patience as the order of payments will depend on each exchange.
Approximately 127,000 creditors are owed over $9.4 billion in Bitcoin. This long-awaited restitution follows the transfer of 141,686 BTC worth $9.62 billion in May as part of the repayment process. Creditors have been waiting over a decade to recover their funds following Mt. Gox’s collapse.
Ethereum Highlights of the Week
PancakeSwap has launched an AI-powered prediction market on Arbitrum, partnering with Allora Network to leverage machine-learning data for accurate Ether price forecasts. This new feature allows users to predict ETH price movements with AI-driven data, boasting 95–99% confidence in its accuracy for over 400 million assets.
The prediction market's payout process is guided by AI performance, adjusting as users make predictions. The AI issues predictions only after rounds are locked to prevent manipulation. PancakeSwap believes this new feature will expand to other markets, potentially enhancing liquidity and volatility management on the platform.
VanEck's recent filing for an Ethereum ETF suggests approval could be imminent, following a pattern seen with their Bitcoin ETF launch just seven days after a similar filing. Bloomberg's Eric Balchunas views this timing optimistically, pointing to a potential launch date around July 2nd. Unlike the uncertainty surrounding Bitcoin ETFs earlier this year, Ethereum ETFs are expected to move forward, with SEC chairman Gary Gensler indicating likely approval this summer.
Preparations by ETF sponsors like Bitwise and VanEck, including fee disclosures and promotional efforts, indicate readiness for the launch. Bullish investment theses, such as VanEck's projection of ETH reaching $22,000 by 2030, further highlight confidence in Ethereum's future as a financial asset.
The Blast network is set to distribute 17% of its total token supply in an airdrop starting June 26. Users who bridged assets like Ether or US Dollar Blast to the network and contributed to DApps will receive tokens. Notably, tokens allocated to top 1,000 wallet holders will vest linearly over six months, restricting immediate sales.
The Blur Foundation plans to distribute its share to traders and holders across multiple seasons, totaling 1% for Season 3 and additional reserves for future use. Despite some user concerns about vesting requirements, the airdrop marks a significant milestone for Blast, the fourth largest Ethereum layer-2 network by total value locked.
Ethereum co-founder Vitalik Buterin has invested in MegaETH, an Ethereum-compatible blockchain project aiming for speeds of up to 100,000 transactions per second (TPS) with minimal latency. MegaETH secured $20 million in seed funding from both institutional investors like Dragonfly Capital and individual backers dubbed "Mega Angels."
Led by founder Da Bing, MegaETH utilizes innovative technologies like in-memory computing and a new state trie design to optimize performance. The project has already established a functional devnet and launched initiatives like "0xMegaMafia" to support developers exploring decentralized applications.
Paradigm has introduced Reth 1.0, a new Ethereum client aimed at boosting network speed and stability. Developed over nearly two years and rigorously audited by Sigma Prime, Reth 1.0 emphasizes stability with zero recorded crashes since its beta phase. It enhances block-sealing processes to minimize delays in chain updates and optimizes resource management to prevent memory leaks, ensuring consistent performance across various hardware setups.
With enhanced Remote Procedure Call (RPC) throughput and reduced latency, Reth 1.0 aims to streamline transaction processing and data management for Ethereum users and node operators alike. Paradigm encourages industry players to adopt Reth 1.0 for Ethereum mainnet operations, emphasizing its security, reliability, and compatibility with multiple Ethereum-based chains.
Cosmos Highlights of the Week
Persistence DEX has integrated with Skip API, an interoperability platform, allowing its liquidity pools to be used for cross-chain swaps on ibc.fun, a DEX aggregator built on Skip. This offers several benefits:
More Trading Routes: Users on ibc.fun gain access to Persistence DEX liquidity, potentially improving swap rates.
Increased Volume for Persistence DEX: Persistence DEX benefits from "background trading" on ibc.fun, boosting its exposure and liquidity.
Higher Trading Fees: Increased volume translates to more fees for liquidity providers on Persistence DEX.
Community Benefit: A portion of trading fees goes to the Persistence Community Pool, funded by XPRT holders.
This integration enhances the usability of Persistence DEX and expands its reach within the growing interoperable DeFi landscape.
Andromeda has partnered with Stargaze, a leading NFT network on Cosmos. This collaboration unlocks new possibilities for creators, developers, and NFT enthusiasts. Developers gain access to Stargaze's robust NFT infrastructure and seamless interoperability to build innovative dApps. They can also monetize their creations through Stargaze's marketplace and Andromeda's developer incentives.
Andromeda envisions a future with:
Cross-chain NFT marketplaces for seamless trading across Cosmos.
Fractionalized NFT ownership for broader asset accessibility.
NFT staking and yield farming for additional utility and rewards.
Dynamic NFTs that respond to real-world events.
NFT-based DAO governance for inclusive decision-making.
Binance and HTX Global are set to support the token merge of Fetch.ai (FET), Ocean Protocol (OCEAN), and SingularityNET (AGIX) into the Artificial Superintelligence Alliance (ASI). Effective July 1, 2024, Binance will delist all spot trading pairs for OCEAN and AGIX, converting them into FET tokens at specified ratios.
The integration will streamline deposits, withdrawals, and trading processes, with Binance managing all technical aspects. This move consolidates the tokens under the ASI banner, enhancing their interoperability and potential within the AI-driven blockchain space.
Cardano is integrating the Inter-Blockchain Communication Protocol (IBC) to connect with over 115 IBC-enabled chains, enhancing its interoperability. This integration will allow seamless data and asset transfers between Cardano and other blockchains, while maintaining the network's security and deterministic fees.
The IBC framework will enable projects to bridge Cardano with Cosmos SDK-based chains and Ethereum Virtual Machine (EVM)-based sidechains. This enhances enterprise blockchain solutions by improving scalability, flexibility, and operational efficiency, ensuring Cardano remains a key player in the interconnected blockchain ecosystem.
Agoric has adopted the Cosmos SDK to make blockchain programming accessible to over 17 million JavaScript developers globally. The Agoric components library, now live, offers community-built smart contract elements and detailed guides for developers to build interchain applications. These components include lending protocols, NFT marketplaces, and cross-chain smart contracts, accelerating development and fostering collaboration within the Agoric community.
Agoric's unique approach features Hardened JavaScript for secure coding and the Zoe smart contract framework for secure escrow services. Its integration with Cosmos SDK chains through IBC allows seamless interchain interactions, promoting innovation and interoperability in blockchain development.
Other Highlights of the Week
Yusef Mahmoud, a Palestinian taxi driver, turned to Bitcoin for donations to support civilians in Gaza amidst severe unemployment and poverty. Starting during Ramadan 2023, Yusef used the decentralized cryptocurrency to buy and distribute food and toys. The UK-based Bitcoiner Fumble supported his initiative, helping him use the Geyser crowdfunding platform to scale the project.
As Gaza's situation worsened due to military occupation, Yusef's efforts expanded. From April 2023 to May 2024, over 1,500 donors enabled him to provide essentials like food, water, and medication to 20,000 families and 500 orphans. Geyser facilitated the process, ensuring Yusef could continuously support his community.
In their first debate, President Joe Biden and Donald Trump didn't discuss cryptocurrency, despite significant financial efforts by the crypto industry to influence the 2024 elections. The 90-minute CNN-hosted debate covered topics such as the economy, abortion rights, immigration, and foreign policy, but omitted any mention of crypto, even though crypto-backed super PACs raised $202.8 million.
Fairshake PAC, Protect Progress, and Defend American Jobs raised substantial funds to support various political campaigns. Despite this, Gallup polls show that issues like the economy, inflation, and immigration are more pressing for American voters, overshadowing crypto in the presidential race.
The EU's Markets in Crypto-Assets (MiCA) Regulation introduces new rules impacting stablecoins and crypto asset service providers. Starting June 30, 2023, stablecoins must comply with these regulations, followed by rules for crypto service providers in December. MiCA, approved by the EU Parliament in April 2023, aims to legitimize the crypto industry within the EU, offering a clear regulatory framework.
Experts predict the regulations will enhance legitimacy and consumer protection while potentially causing market disruptions. Non-compliant stablecoins may be delisted, but increased regulatory oversight could foster growth and attract institutional players.
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