Cryptocurrency

SEC delays BTC ETF decision, Grayscale triumphs over SEC and BitBoy gets the boot: Hodler’s Digest, Aug. 27 – Sept. 2

Published

1 year ago

September 3, 2023

Grayscale wins SEC lawsuit for Bitcoin ETF review

Crypto asset manager Grayscale Investments recently scored a big win in its battle against the United States Securities and Exchange Commission.

In an ongoing effort to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin exchange-traded fund (ETF), the U.S. appeals court judge accepted Grayscale’s argument that the SEC’s rejection of its recent ETF application was unfair. The SEC had alleged that the GBTC didn’t have enough safe practices and fraud protection in place.

Judge Neomi Rao gave the green light to Grayscale’s request for a second review.Previously, Rao said that the SEC did not “offer any explanation” as to why Grayscale was in the wrong.

However, the victory doesn’t automatically mean Grayscale’s Bitcoin ETF is a done deal. There’s still more to come…

BitBoy Crypto brand will no longer include YouTuber Ben Armstrong

The parent company of Hit Network, the folks behind the “BitBoy Crypto” brand, just gave the boot to its public face, Ben Armstrong.

The company alleged issues of substance abuse and financial damage as reasons behind the decision.

In a YouTube and social media announcement, Hit Network revealed that despite its efforts to support Armstrong during his struggle with addiction, it had decided to part ways with the influencer.

This follows Armstrong facing a series of lawsuits in recent times. He was in a class-action lawsuit where investors accused him and other influencers of promoting FTX without disclosing how much they were getting paid by the exchange.

Furthermore, during the lawsuit, there were claims that Armstrong threatened the plaintiff’s lawyers and even blew off a federal judge’s orders to show up in court. The case was put on hold in June.

SEC delays decision on 6 spot Bitcoin ETF applications

The SEC has chosen to postpone delivering a decision on six applications for spot Bitcoin ETFs in the United States. The commission has opted to extend its review period by an additional 45 days, pushing the eventual decision back until October. Shortly after the news broke, the SEC also put BlackRock, the biggest asset manager in the world, in the same delayed decision boat.

Bitwise withdraws Bitcoin and Ether Market Cap ETF application

In a surprising twist following the U.S. SEC’s announcement of delays, Bitwise has submitted a request to retract its application for its Bitcoin and Ether Market Cap Weight Strategy ETF. This application was originally submitted to the SEC on Aug. 3. It seems that Bitwise is taking a step back to reconsider its approach, despite the brief positive market sentiment that followed Grayscale’s recent SEC win.

Robinhood bought back Sam Bankman-Fried’s stake from US gov’t for $606M

Crypto and stock trading platform Robinhood scooped up more than 55 million shares of their own company that were previously owned by Sam Bankman-Fried, the former CEO of FTX. The purchase, which cost Robinhood roughly $606 million, was finalized this week after it filed the paperwork with the U.S. SEC. These shares originally held by Bankman-Fried and Gary Wang, a co-founder of FTX, through a company called Emergent Fidelity Technologies.

However, back in January, the U.S. Department of Justice seized these shares. The purchase has been in the works for a while. Robinhood’s board of directors gave it the green light in its Q4 2022 report, and an SEC filing from August confirmed that the U.S. District Court for the Southern District of New York approved the purchase without any legal complications.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $25,610, Ether (ETH) at $1,618 and XRP (XRP) at $0.49. The total market cap is $1.03 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Toncoin (TON) at 33.90%, Iota (MIOTA) at 13.13% and Maker (MKR) at 12.33%.

The top three altcoin losers of the week are KuCoin Token (KCS) at 15.53%, Hedera (HBAR) at 15.02% and Astar (ASTR) at 12.82%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotes

“There are many cases where transparency is a feature, but people do not want most transactions in the economy to be public.”

Brian Armstrong, CEO of Coinbase

“Now that the courts are starting to rein in the SEC a bit, I think there’s some hope that the industry is kind of igniting again in the U.S.”

Jeremy McLaughlin, partner at K&L Gates

“In the end, we will win. You can’t steal someone’s company they built on their identity and win.”

Ben Armstrong, former frontman of BitBoy Crypto

“I definitely do think we could see in this next cycle $100,000 cost per Bitcoin, and that’s based on if BTC were to capture even 2 to 5% of gold’s $13 trillion place in institutional portfolios.”

Sue Ennis, vice president of Hut 8

“We see limited downside for crypto markets over the near term.”

JPMorgan analysts

“I spoke to a guy the other day that has 80 altcoins in his portfolio. There’s no way an individual investor can stay across and know exactly what 80 different coins are doing at any one time.”

Ben Simpson, founder of Collective Shift

Prediction of the Week

Bitcoin risks ‘swift’ $23K dive after BTC price loses 11% in August

Data indicates that Bitcoin is on track for a retest of long-term support levels following a drop in BTC price as August came to a close. Reversing the gains witnessed the previous week, BTC/USD is now trading below $26,000 as of Sept. 1, according to data from Cointelegraph Markets Pro and TradingView.

Initially, market participants had reasons to be optimistic as Bitcoin held a key long-term trendline and maintained the $27,000 level. However, a decision by the U.S. SEC to delay several Bitcoin ETF applications caused a change in sentiment.Bitcoin swiftly shed $1,000 in value over just two hourly candles.

FUD of the Week

Balancer exploited in nearly $900k after vulnerability warning.

The Ethereum automated market maker and decentralized finance protocol, Balancer, confirmed that it had fallen victim to an exploit, resulting in losses of nearly $900,000. This incident occurred shortly after it had disclosed a vulnerability that impacted several pools.

An Ethereum address allegedly belonging to the attacker has been revealed by blockchain security expert Meier Dolev. Following the exploit, the address received two transfers of Dai stablecoin worth $636,812 and $257,527, respectively, bringing its total balance to over $893,978.

“Balancer is aware of an exploit related to the vulnerability below,” the protocol’s team posted on X, adding that, while mitigation measures taken in recent days had drastically reduced risks, affected pools could not be paused. “To prevent further exploits, users must withdraw from affected LPs,” the team advised.

Brazilian crypto streamer loses money by accidentally exposing private key

A Brazilian cryptocurrency streamer is one of the latest victims of unsafe self-custody practices, reportedly losing thousands of dollars due to a private key accident. The owner of the Fraternidade Crypto channel, Ivan Bianco, unwittingly exposed his private key to a self-custodial cryptocurrency wallet during a livestream on YouTube.

In the middle of the livestream related to Bitcoin and blockchain games, Bianco apparently tried to access his passwords for the blockchain games platform Gala Games through a text file on his computer.

Unfortunately for the streamer, his Gala Games passwords were stored in the same text file as the seed phrase for his MetaMask wallet, which had a significant amount of Polygon (MATIC).

Exploits, hacks and scams stole almost $1B in 2023: Report

Cybersecurity firm CertiK reported that over $997 million was lost to flash loan attacks, exit scams and exploits in 2023. Malicious actors targeting the crypto space have taken more than $45 million in digital assets from their victims in the month of August alone and a total of $997 million year-to-date.

In the report, CertiK highlighted that exit scams took around $26 million, flash loan attacks took $6.4 million, and exploits took $13.5 million from their victims in August 2023. The cybersecurity firm confirmed that the total losses amounted to over $45 million.

Best Cointelegraph Features

How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in.

Crypto is a volatile place. Money can be as easily lost as made through the ups and downs of Bitcoin and the wider market. Bitcoin OGs, veterans and experts provide their opinions, tools and views on how to protect your crypto.

6 Questions for Leila Ismailova: Digital fashion and life after Artisant

Leila Ismailova began her professional career at the age of 15 as a broadcasting star in Belarus, the Russian-neighboring Eastern European country that plays home to 9.3 million citizens. She continued in the role for 10 years, she says, before reaching what she felt was a “professional ceiling” and beginning a journey that led to Web3.

Crypto Banter’s Ran Neuner says Ripple is ‘despicable,’ tips hat to ZachXBT: Hall of Flame

Ran Neuner is the CEO of Onchain Capital, founder of Crypto Banter, and a vocal crypto commentator on X. According to Crypto Banter’s Ran Neuner, following people you dislike on Twitter/X can actually make you smarter.

Editorial Staff

Cointelegraph Magazine writers and reporters contributed to this article.

Cryptocurrency

Ripple v. SEC Lawsuit Updates, Cardano (ADA) Price Predictions, and More: Bits Recap Feb 7

Published

2 hours ago

February 7, 2025

TL;DR

The legal battle between Ripple and the SEC continues, but recent changes in the regulator’s leadership may favor the company.
Analysts predict a parabolic rally for Cardano (ADA), with strong fundamentals and rising adoption signaling a possible breakout despite recent price declines.
Whales accumulated 750 million DOGE during the dip, and analysts see $0.17 as a potential bottom before a major price surge.

More Changes at the SEC

Over the past few years, Ripple secured some vital partial court wins that seemingly positioned the regulator as the underdog in the legal tussle. Most recently, the SEC enforced some amendments to its leadership, which could also be interpreted as good news for the company.

As CryptoPotato reported, the agency moved Jorge Tenreiro to its computer systems management department. The law expert joined the agency 11 years ago and signed the SEC’s notice of appeal in its case against Ripple.

The plea was submitted in October last year, challenging Judge Torres’ 2023 decision. At that time, she ruled that Ripple’s sales of XRP to retail investors through centralized exchanges did not violate securities regulations.

Earlier this year, the SEC’s former Chairman, Gary Gensler, stepped down. The agency had a quite hostile approach towards the cryptocurrency industry during his tenure, and somewhat expectedly, the XRP community cheered his resignation.

His role was succeeded by Mark Uyeda, who is pro-crypto and even criticized the SEC’s previous leadership for launching a war on the sector.

ADA Bull Run in the Cards?

Cardano’s native token suffered the consequences of the market decline at the start of the business week and is currently deep in the red on a 7-day scale, trading at approximately $0.71 (per CoinGecko’s data).

However, many industry participants believe a fresh resurgence could be just around the corner. Such is the case with Ali Martinez, who observed ADA’s performance in the past years and assumed that it might be “at the very beginning of a monster parabolic rally.”

The X user Lucky was also bullish, telling his over 2 million followers on the social media platform that “strong fundamentals and rising adoption make Cardano a solid bet before the next big move.”

DOGE Price Predictions

Last but not least, we will touch upon the OG meme coin – Dogecoin (DOGE). Similar to ADA, it has also sank by double digits in the past week, but some factors signal a potential reversal.

Martinez recently disclosed that whales accumulated 750 million tokens during the correction, describing the move as “a strong sign of confidence in the market.”

For their part, the X users AMCrypto and KALEO outlined predictions for the near future. The former envisioned a potential decline to as low as $0.17 before a bull run to a new all-time high.

KALEO claimed that the current price level of $0.25 is “a solid entry and practically free compared to where we’ll see it a few months from now.”

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Cryptocurrency

Berachain Community Members Show Mix Reactions Following BERA Airdrop

Published

2 hours ago

February 7, 2025

The Berachain team has finally released BERA airdrops to community members following the successful launch of the proof-of-liquidity layer-1 network.

However, the airdrops have received mixed reactions from community members, with users complaining that the allocation to certain groups was not fair.

BERA Airdrop Allocations

According to the Berachain tokenomics and airdrop overview, market participants eligible for the airdrops include testnet users, community members who deposited capital in the Boyco program, and holders of Berachain ecosystem non-fungible tokens (NFTs).

Additionally, Binance Coin (BNB) holders, strategic partners, successful recipients of the Request for Broposal programs, holders of the Bong Bears NFTs who bridge their collectibles to Berachain, and users who constructively engaged with Berachain on X and Discord are eligible.

The Berachain Foundation, a non-profit organization piloting the affairs of the layer-1 network, allocated 1.65% BERA to testnet users, 2.35% BERA to Request for Broposal recipients, 2% to Boyco depositors, and 0.25% to X and Discord commentators. Holders of Berachain ecosystem NFTs received 0.25% of the amount, while the Berachain Foundation allocated 6.9% BERA to Bong Bears NFT holders. Strategic partners have been given 0.4% BERA, while BNB holders are to receive 2% BERA.

Notably, the airdrop makes up 15.75% of Berachain’s 500 million total supply. Although 107.48 million tokens are currently in circulation, the remaining will be released according to a linear vesting schedule over the next three years.

Mixed Reaction From Community

Berachain community members on X are complaining that the airdrop allocations are not fair. Some insist it is not right for testnet users, who have engaged with the network for years, to receive way fewer tokens than Bong Bears NFT holders. Some users revealed that they received substantial allocations, while others said they got none despite consistently interacting with the protocol over time.

Although pseudonymous Berachain co-founder Smokey the Bera explained that it is nearly impossible to target people perfectly during airdrops, community members are still voicing their grievances in the comment section. The pseudonymous crypto trader Jarzombek asserted that Smokey and the Berachain team members “rugged the most loyal community” by allocating 0.25% to holders of ecosystem NFTs.

Amid this chaos, the price of BERA has corrected a bit after rallying 1,346% to $14.46 after launch. Data from CoinMarketCap shows the token changing hands at $7.36 at the time of writing.

Meanwhile, the Berachain ecosystem has three main tokens: BERA, BGT, and HONEY. BERA is the native gas and staking token of the network, BGT is for governance and economic incentives, while HONEY is the chain’s native stablecoin.

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Cryptocurrency

3 Reasons That Ripple (XRP) Is Preparing for a Major Rally

Published

2 hours ago

February 7, 2025

TL;DR

Spot XRP ETF filings from well-known financial players could boost institutional and retail investment in the asset if approved.
Whales accumulated millions of tokens during the dip, and the RSI briefly dropped below 30, suggesting a potential price rebound.

The Potential Catalysts

Ripple’s XRP did not start the business week on the right foot, briefly tanking below $2 during the market correction witnessed on February 3. In the following days, the bulls reclaimed some lost ground, but the price remains deep in the red on a weekly scale, currently trading at around $2.37 (per CoinGecko’s data).

Despite the bearish environment, some essential factors hint that a move to the upside could be incoming. On February 6, Cboe BZX Exchange lodged 19b-4 filings on behalf of Canary Capital, WisdomTree, 21Shares, and Bitwise. The well-known asset managers seek to list the first spot XRP exchange-traded funds (ETFs) in the USA.

The filings represent a formal request submitted to the US Securities and Exchange Commission (SEC). The agency must approve or reject the application, often within 240 days.

A potential green light would grant American investors additional options to gain exposure to Ripple’s native token, which could create upward pressure on its price.

The whales’ activity is another factor worth observing. The popular X user Ali Martinez revealed that large investors had accumulated 520 million XRP (worth over $1.2 billion at current rates) during the latest dip.

Whales seized the opportunity during the recent dip, buying 520 million $XRP! pic.twitter.com/v2Lu4uBMgm
— Ali (@ali_charts) February 6, 2025

Such actions reduce the circulating supply of the asset, possibly setting the stage for a rally (should demand keep its level or rise).

Last but not least, we will focus on XRP’s Relative Strength Index (RSI), which measures the speed and change of price movements. The technical analysis tool varies from 0 to 100, with readings below 30 indicating oversold conditions and a potential for a bounce. Earlier this week, the ratio plunged below the bullish mark, currently set at around 35.

Bonus: Garlinghouse and Trump

The president of the USA, Donald Trump, started his second term at the White House with a bang, signing numerous executive orders and doubling down on his focus on the cryptocurrency industry. He reportedly plans to establish a crypto advisory council that may be comprised of some well-known names.

One of the people who could find a place there is Ripple’s CEO, Brad Garlinghouse. The advisors’ main role will be to design a comprehensive regulatory framework for the sector and work closely with Trump and David Sacks (whom the president tapped to serve as cryptocurrency and AI “czar”).

Garlinghouse’s possible connection with the White House could have a significant impact on Ripple’s native token. He might advocate for clearer regulations surrounding the asset, which has faced scrutiny from the US Securities and Exchange Commission (SEC) for years.

Ripple’s CEO and the American president have shown a close connection to each other, having a dinner meeting at the Mar-a-Lago estate earlier this year.

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