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- Bitcoin, Ethereum, Cosmos and more Week 29 2024
Bitcoin, Ethereum, Cosmos and more Week 29 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
Mt. Gox Transfers $6 Billion in Bitcoin
BlackRock's Fink Acknowledges Bitcoin as Digital Gold
SEC Grants Preliminary Approval for ETH ETFs
Vitalik Buterin Warns Against Pro-Crypto Candidates
Synternet Launches with Interchain Integration
Brev.dev Acquired by NVIDIA
Court Orders Arrest of Doctor Over Binance Exec's Health
China Eyes Reversal on Bitcoin Ban
and much more!
Market & Airdrop Update
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Bitcoin Highlights of the Week
Mt. Gox's rehabilitation trustee transferred approximately $6 billion worth of Bitcoin to new wallets, advancing efforts to repay creditors from the 2014 hack. On-chain data reveals that around 95,870 BTC were moved in two transactions, with the first 47,000 BTC valued at nearly $3 billion. These funds are part of the $9 billion owed to creditors. Kraken confirmed receipt of these funds, informing creditors to expect distribution within 7-14 days.
Despite market fears of potential price drops from immediate liquidations, most creditors are expected to hold their coins. The reimbursement marks a significant step in resolving one of Bitcoin's most notorious incidents, showcasing the community's resilience and commitment to transparency.
An open-source collaboration between StarkWare and L2 Iterative has verified the first zero-knowledge proof on Bitcoin's testnet, marking a significant milestone. Spearheaded by Weikeng Chen, this project involved moving computations for zero-knowledge proofs to Bitcoin's network using the OP_CAT script.
StarkWare’s Eli Ben-Sasson highlighted the importance of this development, calling it a step towards closing the technology gap between Bitcoin and advanced cryptographic tools. Chen, despite challenges, remains optimistic about future innovations, emphasizing the need for a cohesive vision to attract talented developers to Bitcoin's ecosystem.
BlackRock CEO Larry Fink, previously a skeptic, now recognizes Bitcoin as "digital gold" and a legitimate financial instrument. In a CNBC interview, Fink highlighted Bitcoin's potential for uncorrelated returns, especially during economic instability and currency debasement. He noted Bitcoin's value for individuals in countries facing economic challenges.
BlackRock's iShares Bitcoin Trust has become the largest Bitcoin exchange-traded fund, with inflows surpassing $18 billion this year. Following Fink's comments and other positive developments, Bitcoin's price surged, reversing recent negative trends and rising above $60,000.
Craig Wright has issued a legal disclaimer on his website, stating he is not Bitcoin's creator, Satoshi Nakamoto. This follows a ruling by the UK High Court of Justice, influenced by the Crypto Open Patent Alliance (COPA), which provided substantial evidence debunking Wright's claims. The disclaimer acknowledges Wright is not the author of the Bitcoin white paper and does not hold its copyright.
In 2023, Wright sued several Bitcoin developers for copyright violations, asserting he was Satoshi. COPA's evidence and expert testimonies revealed Wright's forgeries and metadata tampering. The court ruled against Wright, leading to his assets being frozen and recommending a perjury investigation by the Crown Prosecution Service.
BlackRock's iShares Bitcoin Trust saw significant investor interest, attracting $260 million on July 16, contributing to a total of $422.5 million in net inflows for US spot Bitcoin ETFs, marking the eighth consecutive day of positive inflows. This surge represents the strongest trading day since June 5. Fidelity's Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF followed with $61.1 million and $29.8 million, respectively.
BlackRock's Bitcoin holdings now exceed $20 billion, bolstered by a recent purchase of 4,004 Bitcoin and a 3% price rise since Monday. This milestone comes shortly after CEO Larry Fink acknowledged Bitcoin as a "legitimate" financial instrument. Bitcoin's price has risen 13.1% over the last week, currently at $65,470, following concerns over German government Bitcoin sales and Mt. Gox repayments.
Ethereum Highlights of the Week
The SEC has reportedly granted preliminary approval to BlackRock, Franklin Templeton, and VanEck for their spot Ether exchange-traded funds (ETFs). This approval is contingent on the submission of final offering documents by the end of the week, with trading potentially beginning on July 23.
Other applicants, including Fidelity, 21Shares, Grayscale, Bitwise, and Invesco Galaxy, are also expected to launch their Ether products simultaneously. The SEC's approval process has involved feedback and amendments to the S-1 filings, with final instructions for submission by July 16. Analysts predict significant inflows into the Ether ETFs, potentially attracting up to $15 billion in the first 18 months.
Vitalik Buterin, co-founder of Ethereum, cautioned voters against supporting political candidates solely based on their pro-crypto stance. In a blog post, he emphasized that such candidates might only be making superficial promises and urged consideration of broader issues like privacy, internationalism, and immigration.
The post sparked varied reactions, with Messari CEO Ryan Selkis labeling Buterin as "politically naive" and suggesting that Buterin's idealism overshadowed practical political understanding. Buterin’s warning comes amid increasing support for crypto by Republicans and Donald Trump. Some in the crypto community, like Bitwise’s Jake Chervinsky and Coin Center’s Peter Van Valkenburgh, agreed with Buterin’s broader view on political alignment.
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BlackRock has settled on a 0.25% annual fee for its forthcoming spot Ethereum exchange-traded fund (ETF), outlined in its S-1 registration filed on July 17. The fee will be calculated daily based on the fund's net asset value and paid out quarterly in US dollars or in-kind.
Initially, the fee will be reduced to 0.12% for the first 12 months or until the fund reaches $2.5 billion in assets. Competitors like Franklin Templeton, Bitwise, and VanEck have proposed fees ranging from 0.19% to 0.21%, with some offering fee waivers to attract initial investments. Regulatory approval is expected by July 22, with trading slated to begin on July 23 across major exchanges.
Former Ethereum developer Virgil Griffith's prison term has been reduced by seven months, now set to end in January 2025 following his guilty plea for violating US sanctions on North Korea. Judge Kevin Castel of the Southern District of New York approved the reduction from 63 to 56 months in a July 16 court filing.
Griffith initially gained attention for speaking at a North Korean crypto conference in 2019, advocating for crypto's potential to bypass sanctions. Despite acknowledging his rule infractions in prison, the judge cited Griffith's hardships and reduced public threat as reasons for the sentence reduction, balancing it against the need for deterrence in similar cases.
The SEC has greenlit Grayscale Ethereum Mini Trust and ProShares Ethereum ETF for trading on NYSE Arca, pending final S-1 filing approvals. Grayscale is progressing towards converting its Grayscale Ethereum Trust into an ETF, with plans to distribute shares to existing ETHE fund holders.
Meanwhile, eight spot Ether ETFs await final SEC clearance, with preliminary approval granted to three issuers for potential listing by July 23. ProShares, filing later than its peers, will not be among those expected to list immediately.
Cosmos Highlights of the Week
Synternet's integration with the interchain ecosystem has enhanced real-time data sharing across major blockchain networks. The platform utilizes the Inter-Blockchain Communication (IBC) protocol, Cosmos SDK, CometBFT, and CosmWasm to ensure seamless, secure, and efficient cross-chain data exchange.
This integration supports various decentralized applications (dApps) by enabling real-time data streams for DeFi, IoT, and autonomous vehicles, thereby optimizing their performance and reliability. With the launch of Synternet's mainnet, the platform aims to expand its data services, introduce Autonomous Economic Agents (AEAs) and Programmable Streams, and foster collaborations within the interchain ecosystem.
Skip has launched as the first full-stack interoperability platform, prioritizing accountability to integrators and stakeholders. The platform simplifies user interaction across 120+ blockchain chains through one-click usability and one API call for developers. Emphasizing simplicity and cost-efficiency, Skipconnects applications seamlessly, enhancing cross-chain liquidity access.
Key to its approach is open sourcing, minimizing trust issues, and stakeholder governance for long-term alignment. This initiative aims to democratize access to users and liquidity, overcoming barriers to decentralized application development. Despite its complexity, Skipinvites community collaboration to refine and innovate further in the interchain ecosystem.
Developer-focused workshops at Injective's Builder House provided an interactive environment for hands-on learning and technical deep dives. Ivan Angjelkoski of Injective Labs introduced the robust developer toolkit with a focus on launching dApps and API interactions. Yorke Rhodes IV from Hyperlane highlighted rollup interoperability, while Enol Alvarez from The Graph demonstrated data indexing with Graph Node and Substreams.
Further sessions covered startup scalability, traditional finance integration, and leveraging real-time data with Pyth. David Josse discussed building sustainable tech products, and Bojan Angjelkoski provided insights on bridging finance and Injective. The day concluded with Andi Stan's presentation on network effects enhancing business strategy.
Akash Network's primary client and close partner, Brev.dev, has been acquired by NVIDIA. Brev.dev, known for utilizing Akash Supercloud to access high-performance GPUs, aims to simplify AI/ML development by pairing powerful NVIDIA hardware with leading software.
The acquisition strengthens their mission to deliver the best developer experience. Brev.dev's integration with the NVIDIA NGC catalog enables seamless, one-click deployment of GPU-optimized AI software, enhancing accessibility and efficiency for developers. This milestone marks an exciting new chapter for Brev.dev and its users.
Over 1,100 enthusiasts gathered at the Cosmos Hub side event during EthCC, passionately affirming that Cosmos Hub is the premier destination for launching a chain. Hosted by the @ATOMAccelerator and @informalinc, the event was a whirlwind of activities and networking opportunities.
The day was filled with four dynamic workshops that delved into various aspects of blockchain technology and Cosmos Hub’s capabilities. Attendees also enjoyed a thrilling AEZ pitch night, where innovative projects competed for attention and support. Throughout the event, countless impactful conversations took place, fostering deeper connections and discussions on the future of blockchain and decentralized technologies.
Other Highlights of the Week
Justice Emeka Nwite of the Federal High Court in Abuja issued a bench warrant for Dr. Abraham Ehizojie, a doctor at Kuje Correctional Centre, for failing to present a medical report for Binance executive Tigran Gambaryan or appear in court. Gambaryan's lawyer highlighted his client's deteriorating health and requested immediate medical attention.
The court ordered Gambaryan be transferred to a hospital for a 24-hour checkup under security. Gambaryan, facing money laundering and foreign exchange violation charges alongside Binance, has seen his health decline significantly. His family, expressing deep concern, appealed for his release on humanitarian grounds.
Mark Cuban speculates that geopolitical instability and inflation could elevate Bitcoin to a global reserve asset. He suggests that rising support for Trump in Silicon Valley might signal a strategic Bitcoin move by Big Tech. Cuban notes that the United States' geopolitical uncertainties and potential tax cuts could drive Bitcoin's price higher, though he clarifies these are possibilities, not certainties.
Cuban's comments reflect broader concerns about fiat currencies, particularly the US dollar, which suffers from inflationary pressures. He highlights stablecoins as a potential means to maintain dollar dominance. Examples from Venezuela and Argentina, where economic instability has spurred cryptocurrency adoption, illustrate the growing importance of digital assets in providing financial stability.
Speculation is growing that China might lift its longstanding Bitcoin ban by the fourth quarter of 2024. This potential policy shift could have significant implications for the global Bitcoin market and China’s role in digital finance. Historically, China has had a complex relationship with Bitcoin, initially supporting the technology but later imposing stringent regulations, culminating in a comprehensive ban on digital asset mining and related transactions in 2021.
Despite these measures, demand for Bitcoin in China has remained strong, with many investors turning to overseas exchanges. Mike Novogratz, CEO of Galaxy Digital, has amplified these rumors, suggesting that lifting the ban could drive a sharp surge in Bitcoin prices and global trading volumes.
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