Cryptocurrency
Caroline Ellison speaks on FTX-Binance war, SEC won’t appeal Grayscale BTC ETF: Hodler’s Digest, Oct. 8-14
Top Stories This Week
Caroline Ellison wanted to step down but feared a bank run on FTX
Caroline Ellison, former CEO of Alameda Research, testified for over 10 hours this week at Sam Bankman-Fried’s trial, offering deeper details on the events that anticipated the FTX debacle in November 2022. From Ellison’s testimony, jurors learned that she planned to leave Alameda months before its collapse, but feared a bank run on FTX amidst the crypto market downturn. The week also featured a recording presented as evidence in the case showing the exact moment Ellison told employees about Alameda’s use of FTX customer deposits. Among the key moments of Bankman-Fried’s trial were revelations of fabricated balance sheets in order to deceive crypto lenders, as well as BlockFi CEO Zac Prince’s testimony. Check out this week’s highlights from Cointelegraph’s team on the ground.
Months before the collapse of crypto exchange FTX, former CEO Sam Bankman-Fried was “freaking out” about buying shares in Snapchat, raising capital from Saudi royalty and getting regulators to crack down on rival crypto exchange Binance, according to evidence presented in court this week as a part of the ongoing criminal trial. Bankman-Fried believed Binance leaked an Alameda balance sheet to the media in 2022. According to a document from Nov. 6, 2022, Bankman-Fried wrote that Binance had been “engaging in a PR campaign against us.” It continued, saying that Binance “leaked a balance sheet; blogged about it; fed it to Coindesk; then announced very publicly that they were selling $500m of FTT in response to it while telling customers to be wary of FTX.”
SEC reportedly won’t appeal court decision on Grayscale Bitcoin ETF
The United States Securities and Exchange Commission reportedly has no plans to appeal the recent court decision that favored Grayscale Investments. The ruling requires the SEC to review the firm’s spot Bitcoin exchange-traded fund (ETF) application. The SEC’s supposed decision not to appeal doesn’t necessarily mean Grayscale’s application is set to be approved. If the reports are true, the SEC will need to follow the court’s August order and review Grayscale’s application to change its Grayscale Bitcoin Trust into a spot Bitcoin ETF.
Terraform Labs contends Citadel Securities had a hand in its stablecoin collapse
Terraform Labs has again pointed the finger at market maker Citadel Securities for its role in an alleged “concerted, intentional effort” to cause the depeg of its TerraUSD stablecoin in 2022. On Oct. 10, Terraform Labs filed a motion in the United States to compel Citadel Securities to produce documents relating to its trading activity in May 2022, when TerraUSD Classic depegged. In its motion, Terraform argued that the documents are crucial for its defense in the lawsuit filed by the U.S. Securities and Exchange Commission in February, which alleged Terraform Labs and its founder, Do Kwon, had a hand in “orchestrating a multi-billion dollar crypto asset securities fraud.” Citadel Securities has, however, previously denied trading the TerraUSD stablecoin in May 2022.
Mastercard announces successful wrapped CBDC trial results
Mastercard has completed a trial involving wrapping central bank digital currencies (CBDCs) on different blockchains, similar to wrapped Bitcoin and wrapped Ether. The trial was conducted with the Reserve Bank of Australia and the country’s Digital Finance Cooperative Research Centre CBDC. Mastercard said the solution allowed a CBDC owner to purchase a nonfungible token (NFT) listed on Ethereum. “The process ‘locked’ the required amount of a pilot CBDC on the RBA’s pilot CBDC platform and minted an equivalent amount of wrapped pilot CBDC tokens on Ethereum,” the payment processor wrote.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $26,892, Ether (ETH) at $1,551 and XRP at $0.48. The total market cap is at $1.05 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Loom Network (LOOM) at 86.71%, Trust Wallet Token (TWT) at 16.72% and Tether Gold (XAUt) at 5.16%.
The top three altcoin losers of the week are Mantle (MNT) at -17.27%, Rocket Pool (RPL) at -14.39% and Avalanche (AVAX) at -13.39%.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Read also
Most Memorable Quotations
“That’s our homework, actually. To really educate people about the benefit of using blockchain.”
Grace Sabandar, co-founder of the Indonesia Blockchain and Metaverse Center
“Crypto-assets markets, including DeFi, do not represent meaningful risks to financial stability at this point.”
European Securities and Markets Authority
“I was worrying about customer withdrawals from FTX, this getting out, people to be hurt. […] I didn’t feel good. If people found out [about Alameda using FTX funds], they would all try to withdraw from FTX.”
Caroline Ellison, former CEO of Alameda Research
“It’s alarming and should be a wakeup call for lawmakers and regulators that digital wallets connected to Hamas received millions of dollars in cryptocurrencies.”
Elizabeth Warren, U.S. senator
“Bitcoin and Ethereum may seem like opposites, but they can co-exist and complement each other.”
Willem Schroé, CEO of Botanix Labs
“People who believe SBFraud is a ‘good guy’ who made ‘mistakes’, and FTX grew too fast and it all got away from him, should NEVER be in charge of other people’s money.”
John Deaton, attorney and crypto advocate
Prediction of the Week
Ethereum losing streak vs. Bitcoin hits 15 months — Can ETH price reverse course?
The price of Ethereum’s native token, Ether, is trading around a 15-month low versus Bitcoin, and the lowest since Ethereum switched to proof-of-stake. The ETH/BTC pair dropped to as low as 0.056 BTC earlier this week. In doing so, the pair broke below its 200-week exponential moving average (200-week EMA; the blue wave) near 0.058 BTC, raising downside risks further into 2023.
The 200-week EMA has historically served as a reliable support level for ETH/BTC bulls.
ETH/BTC stares at similar selloff risks in 2023 after losing its 200-week EMA as support. In this case, the next downside target looks to be around its 0.5 Fibonacci line near 0.051 BTC in 2023, down about 9.5% from current price levels.
Conversely, ETH price may rebound toward its 50-week EMA (the red wave) near 0.065 BTC if it reclaims the 200-week EMA as support.
FUD of the Week
Mistake or money laundering? User pays $1.6 million for CrypToadz NFT
One of the CrypToadz NFTs, whose average price doesn’t exceed $1,000, was bought for an astonishing 1,055 wrapped Ether, an equivalent of $1.6 million. The CrypToadz collection was launched during the NFT boom of 2021 and surpassed a trading volume of $38 million worth of Ether during its first 10 days on the market. The price paid by the anonymous user for the NFT raised questions among the community. Two weeks ago, this item was acquired for 0.95 ETH (around $1,600), only to be sold for a price a thousand times higher.
USDR stablecoin depegs to $0.53, but team vows to provide solutions
Real estate-backed stablecoin USDR lost its peg to the United States dollar after a rush of redemptions caused a draining of liquid assets such as Dai from its treasury. USDR, backed by a mixture of cryptocurrencies and real estate holdings, is issued by the Tangible protocol, a decentralized finance project that seeks to tokenize housing and other real-world assets. During the crisis, a trader reportedly exchanged 131,350 USDR for 0 USD Coin, resulting in a complete loss on investment.
HTX claws back $8M in stolen funds, issues 250 ETH bounty to hacker
Huobi Global’s crypto exchange HTX has confirmed the return of the funds stolen by a hacker in late September and issued a 250 Ether bounty after resolving the issue. One of HTX’s hot wallets was drained of 5,000 ETH on Sept. 25, worth roughly $8 million at the time. Shortly after the hack occurred, the firm contacted the hacker and claimed to know their identity. HTX ultimately offered to pay a 5% bounty worth around $400,000 and not to take any legal action if they returned 95% of the funds before a deadline of Oct. 2.
Beyond crypto: Zero-knowledge proofs show potential from voting to finance
An emerging cryptographic technology may provide help with two gaping 21st-century needs: Privacy and truth.
Eleanor Terrett on impersonators and a better crypto industry
Fox Business producer Eleanor Terrett’s following exploded after she began providing commentary on the SEC v. Ripple lawsuit.
SBF’s alleged Chinese bribe, Binance clarifies account freeze: Asia Express
SBF allegedly bribes Chinese officials with $150 million to unfreeze accounts, Binance justifies blocking Hamas users, meanwhile, Huobi hacker returns all $8M in stolen assets.
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Cryptocurrency
Bitcoin to $500K, Ethereum to $20K? Analyst Forecasts a Major Crypto Surge
Crypto analyst Michaël van de Poppe has made a bold prediction, forecasting that the price of Bitcoin could reach $500,000, with Ethereum’s soaring past $20,000 in the coming years.
His outlook, supported by macroeconomic trends and growing institutional adoption, suggests that the crypto market is on the cusp of an unprecedented rally.
Overcoming ‘Bear Market PTSD’
Market sentiment is currently quite low following one of the biggest daily sell-offs in crypto history, which saw more than $400 billion wiped off in less than a day. However, while Van de Poppe acknowledges the bearish outlook, he argues that the market is primed for a major bull run.
According to him, a “perfect storm” is brewing, fueled by growing institutional adoption and the U.S. government’s more tolerant stance on crypto. This includes a proposal for a national digital asset stockpile. Additionally, institutions are launching crypto products providing greater market access and banks have been given the leeway to offer custody services following the SEC’s revocation of SAB 121.
Van de Poppe admitted that many investors were skeptical, still haunted by past downturns, a phenomenon he called “bear market PTSD,” which makes it hard for traders to believe in a long-term uptrend. Nonetheless, he argued that Bitcoin and Ethereum’s trajectories should not be judged by past cycles alone, especially given their increasing global adoption and the ongoing influx of institutional capital, including millions spent on crypto by an organization linked to U.S. President Donald Trump.
A shifting macroeconomic landscape could also boost crypto’s explosion. The analyst suggests that China’s economic strategy to deal with Trump’s new tariffs could create the perfect condition for altcoins to thrive.
In his opinion, the Asian giant has two options to counter the U.S.: devalue its currency to continue exporting products into the United States or focus on its own domestic market to become stronger. If it chose the second option, it would mean selling its dollar reserves, buying back the renminbi, and making it solvent.
Such a situation, in Van de Poppe’s opinion, would cause the dollar to lose some of its strength, and a weaker dollar coupled with lower yield bonds often leads to increased capital flow into digital assets.
Exponential Gains
Taking everything into consideration, Van de Poppe outlined two likely possibilities. In the blow-off top scenario, he envisions a rapid bull run, similar to the dot-com boom of the ‘90s, which could see BTC shoot up to anywhere between $300,000 and $500,000 before a sharp correction.
Ethereum would follow suit and could climb past $20,000 with the acceleration of institutional adoption, potentially powered by its new marketing initiative, Etherealize.
The second option would be an extended supercycle, leading to a slower but self-sustaining rally that could drive Bitcoin’s value towards $1 million over the next few years. ETH would also benefit from taking advantage of the expected growth of layer-2 networks and institutional DeFi integration to push to $30,000.
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Cryptocurrency
Dogecoin Whales Make a Huge Move: Is DOGE’s Price Poised for a Rally?
TL;DR
- Large investors bought 750 million DOGE during the recent dip, potentially setting the stage for a price rebound.
- While some analysts expect a further drop to $0.17, historical trends suggest the possibility of another explosive bull run for Dogecoin in the coming months.
Time for a Reversal?
The cryptocurrency market has suffered substantial losses in the past week, mainly due to the crash witnessed on February 3. Bitcoin (BTC) is down 6% for that timeframe but it was the altcoins that took the major hit.
The OG meme coin, Dogecoin (DOGE), was among the biggest losers, with its price plunging well below $0.30 and tanking by 21% weekly (per CoinGecko’s data).
However, it seems like whales have interpreted the downtrend as a “buy the dip” opportunity and increased their exposure to the asset. X user Ali Martinez revealed that large investors purchased 750 million tokens (worth almost $200 million) during the correction. “This is a strong sign of confidence in the market,” the analyst claimed.
Whale accumulation is often seen as a bullish signal since it could make some traders follow suit and thus trigger a potential price uptrend. The buying spree also leaves fewer assets available on the open market, meaning DOGE’s valuation might head north (assuming demand remains constant or increases).
The whales’ latest actions contrast to those at the beginning of the month. Back then, they offloaded 270 million DOGE in the span of 24 hours, which was shortly after, followed by a price decline.
DOGE Predictions
The meme coin’s market dynamics have caused numerous people to speculate on its next potential move. The X user AMCrypto assumed that DOGE might be headed for a further decline to as low as $0.17 before rallying toward a new all-time high.
Trader Tardigrade and KALEO also chipped in recently. The former forecasted a massive bull run, citing the token’s historical performance:
“In the 2016 pullback, DOGE retraced 59.76%, followed by a +9,221% bull run. In the 2020 pullback, DOGE retraced 56.2%, followed by a +30,693% bull run. When in doubt, check the macro chart.”
KALEO was bullish, too, seeing $0.25 as “a solid entry and practically free compared to where we’ll see it a few months from now.”
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Cryptocurrency
Academic Labs to Be Listed on Bitpanda, Unveils AI-Powered Education Whitepaper 2.0
[PRESS RELEASE – Singapore, Singapore, February 6th, 2025]
Academic Labs, a notable innovator in the education sector, has announced its listing on Bitpanda, one of Europe’s largest cryptocurrency exchanges. This milestone follows the release of Whitepaper 2.0, which details advancements in its EduFi Ecosystem, built on the Solana blockchain. The whitepaper introduces the AAX Chain and the AI-Agent layer, two innovations aiming to transform education by harnessing AI and Web3 technologies. Notably, Academic Labs has demonstrated remarkable potential, with its cryptocurrency volume doubling and rising by 70% even when the market was down, indicating strong prospects for 2025.
Whitepaper 2.0 introduces two innovations: the AAX Chain and the AI-Agent layer. The AAX Chain, built on the Solana blockchain, harnesses its high-speed, low-cost, and scalable infrastructure to optimize educational resources and facilitate seamless knowledge discovery, curation, and sharing. The native AAX Token, following the SPL token standard, serves as the lifeblood of the ecosystem, enabling value exchange, governance, and incentivization.
The AI-Agent layer enhances personalized learning by leveraging the power of advanced machine learning algorithms. By analyzing large amounts of data from the Universal Library of Knowledge and the comprehensive Learner Data Layer, the AI-Agent generates adaptive learning paths, content recommendations, and targeted support, ensuring that each learner receives a tailored educational experience.
Whitepaper 2.0 also highlights the integration of decentralized identity (DID) within the Academic Labs EduFi Ecosystem. Leveraging the Solana blockchain’s capabilities, learners can create and manage their digital identities securely and transparently, empowering them to showcase their achievements and skills across various platforms while maintaining control over their educational data.
Furthermore, the whitepaper explores the incorporation of decentralized science (DeSci) and decentralized finance (DeFi) applications within the ecosystem. By tapping into Solana’s robust DeFi infrastructure, Academic Labs offers learners and educators novel opportunities to engage with tokenized assets, participate in yield farming and staking programs, and access innovative funding models for educational projects and research endeavors.
The tokenomics of the AAX Token, as detailed in the whitepaper, ensure the long-term sustainability and growth of the Academic Labs EduFi Ecosystem. With a carefully designed token allocation and unlocking schedule, the ecosystem is structured to align incentives and foster long-term commitment to the platform’s success.
Prior to Whitepaper 2.0, Academic Labs had already made steady progress in the EduFi space, launching a successful MVP, hosting hackathons and courses at top universities, and empowering various ecosystems with more than 2 million people.
The whitepaper outlines an ambitious timeline for expanding the Academic Labs EduFi Ecosystem. The platform plans to launch a suite of new products powered by AI and gamification functions in the coming months, enhancing user engagement and learning outcomes. Additionally, Academic Labs aims to secure new listing opportunities for the AAX Token across global cryptocurrency exchanges, increasing liquidity and accessibility for users worldwide.
Following the prior listing on Gate.io, on February 7th, Academic Labs will be listed on Bitpanda, one of Europe’s largest cryptocurrency exchanges. This represents a key step in Academic Labs’ efforts to expand its education-focused initiatives through Web3 and AI.
With the introduction of the AAX Chain, AI-Agent layer, and the planned expansion of its product offerings and token listings, Academic Labs aims to develop AI-driven solutions for the education sector. The integration of advanced technologies, along with the platform’s existing ecosystem, supports its ongoing efforts to enhance digital learning experiences.
About Academic Labs:
Platform: https://acad.live
CoinGecko: https://www.coingecko.com/en/coins/academic-labs
Gate: https://www.gate.io/tr/trade/AAX_USDT
Bitpanda: https://www.bitpanda.com/en/bitpanda-spotlight
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