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SEC serves $4M in fines to Coinme over ‘misleading’ UpToken ICO

SEC serves $4M in fines to Coinme over ‘misleading’ UpToken ICO

The regulator nabbed the crypto ATM operator turned exchange for securities law violations over its sales and statements of a crypto token.

The United States securities regulator has handed down nearly $4 million in fines to crypto exchange Coinme for allegedly offering unregistered securities and giving “misleading statements” on its crypto token UpToken (UP).

On April 28 the Securities and Exchange Commission (SEC) said it settled charges against Coinme, its subsidiary Up Global SEZC and the CEO of both firms, Neil Bergquist.

Up Global agreed to pay a $3.52 million penalty, for which Coinme was also liable. Separate penalties against Coinme and Bergquist of $250,000 and $150,000 respectively were also leveled, which both have agreed to pay.

In its order, the SEC alleged Coinme, Up Global and Bergquist’s Initial Coin Offering (ICO) of UP between October to December 2017 was an investment contract under the Howey test and were subsequently unregistered securities offerings.

The September 2017 press release announcing UpToken. Source: GlobeNewswire

The ICO raised around $3.6 million to expand the amount of Bitcoin (BTC) ATMs in Coinme’s fleet, with which it added 30 ATMs using ICO funding. UP holders received benefits such as discounted fees and a 1% cashback paid in UP when using the ATMs.

In January 2019, Coinme changed its offering and partnered with Coinstar to use its cash-counting kiosks to facilitate cash-to-crypto transactions rather than its own ATMs. By July 2019 Coinme shut down all of its own ATMs.

“There is currently no use for UpToken, and UpToken holders can no longer use UpToken to obtain the benefits that were described in the UpToken offering materials.”

The price of UP has seen a significant drawdown since, with its market cap also falling to around $50,000 and 24-hour trading volumes topping just over $180.

The price of UpToken from early 2018 to today. Source: CoinMarketCap

Bergquist and Up Global also made “false and misleading statements” about the demand for UpToken and the amount raised in the offering according to the SEC.

Up Global said Coinme’s purchasing of UP to fund its ATM rewards program would create constant demand for the token, but the SEC said:

“Bergquist and Up Global took steps before and throughout the ICO to obtain an UpToken supply that would substantially reduce Coinme's need to purchase UpToken after the ICO for the ATM rewards program.”

The SEC claimed Coinme sent 160 BTC worth over $1 million at the time to an Up Global wallet used to receive investor funds in the ICO. Up Global sent back around 14.5 million UP at a discount to Coinme and the transaction “knowingly or recklessly” created the impression that a third party made a large purchase.

Related: Rep. McHenry announces hearings to address market structure around crypto

In another example, it was claimed Bergquist negotiated a 500 Bitcoin round-trip transaction of UP tokens with an unnamed Hong Kong company, with Coinme borrowing the funds to purchase further UP at a discount. The transaction was also used to create an impression of demand for the tokens.

The SEC said Bergquist didn’t admit or deny the regulator's findings, agreed to settle the charges and was barred from acting as an executive of a public company for three years.

Cointelegraph contacted Coinme for comment but did not immediately receive a response.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?



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Coinbase exec uses ChatGPT 'jailbreak' to get odds on wild crypto scenarios

Coinbase exec uses ChatGPT 'jailbreak' to get odds on wild crypto scenarios

According to ChatGPT, Bitcoin has a 15% chance it will “fade to irrelevancy” with prices down 99.99% by 2035.

A Coinbase executive claims to have discovered a “jailbreak” for artificial intelligence tool ChatGPT, allowing it to calculate the probability of bizarre crypto price scenarios.

The crypto exchange’s head of business operations and avid ChatGPT user Conor Grogan shared a screenshot of the results in an April 30 Twitter post — showing that ChatGPT states there be a 15% chance that Bitcoin (BTC) will “fade to irrelevancy” with prices falling over 99.99% by 2035.

Meanwhile, the chatbot assigned a 20% chance for Ethereum (ETH) becoming irrelevant and approaching near-zero price levels by 2035.

ChatGPT was even less confident about Litecoin (LTC) and Dogecoin (DOGE) however, attributing probabilities of 35% and 45% respectively for the coins to go to near zero.

The Coinbase executive concluded that ChatGPT is “generally” a “big fan” of Bitcoin but remains “more skeptical” when it comes to altcoins.

Prior to the cryptocurrency predictions, Grogan asked ChatGPT to assign odds to several political predictions involving Russian president Vladimir Putin, U.S. President Joe Biden and former U.S. president Donald Trump.

Other predictions were aimed towards the impact of AI on humanity, religion and the existence of aliens.

“Aliens have visited Earth and are being covered up by the government” — one wild prediction read — to which ChatGPT assigned a 10% probability.

The executive also shared a script of the prompt, which he then fed to ChatGPT to build the tables.

Grogan backed up the preciseness of the results by claiming to tested out the prompt over 100 times:

“I ran this prompt 100 times on a wiped memory GPT 3.5 and 4 and GPT would return very consistent numbers; standard deviation was <10% in most cases, and directionally it was extremely consistent.”

Related: Here’s how ChatGPT-4 spends $100 in crypto trading

It isn’t the first time the executive experimented with crypto-related issues using ChatGPT.

On March 15. Grogan showed that GPT-4 — the latest iteration of ChatGPT — can spot security vulnerabilities in Ethereum smart contracts and provide an outline to exploit faulty contracts.

Studies carried out by OpenAI — the team behind ChatGPT — have shown GPT-4 to pass high school tests and law school exams with scores ranking in the 90th percentile.

Meanwhile, Italy recently lifted a ban on the AI tool after banning it for one month following a series of privacy concerns that were raised to Italian regulators.

Magazine: How to prevent AI from ‘annihilating humanity’ using blockchain



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2 reasons why Bitcoin Ordinals are ‘positive’ for the BTC: Grayscale

2 reasons why Bitcoin Ordinals are ‘positive’ for the BTC: Grayscale

Ordinals have been a controversial topic within the Bitcoin community but crypto investment firm Grayscale says there’s two main reasons to be optimistic.

Bitcoin (BTC) Ordinals — also known by some as Bitcoin NFTs — could renew developer enthusiasm for Bitcoin and boost mining fees, according to cryptocurrency investment firm Grayscale.

In an April 27 “Market Byte” blog post, the firm suggested that Ordinals provide two key benefits to the growth and development of the Bitcoin ecosystem.

The first is a substantial increase in fees paid to miners, which has been seen since the launch of the protocol in January, according to Grayscale.

“The advent of ordinals has led to an increase in total fees paid to miners [...] which could potentially establish a sustainable baseline level of transaction fees to incentivize miners.”

Grayscale argued that this would ensure "continued network security throughout the lifetime of the Bitcoin network.”

As reported by Cointelegraph, in less than two months after its launch, more than $600,000 was paid to Bitcoin miners, solely as the result of fees generated by Ordinal inscriptions. As of the time of publication, that figure now exceeds the $6.5 million mark.

Fees spent on inscribing Ordinal NFTs on the Bitcoin blockchain. Source: Dune Analytics

The investment firm also believes that Ordinals and the “velocity of NFT adoption” could also attract new Bitcoin users and spark more development on the Bitcoin network. 

"We believe the emergence of ordinals is likely to promote a development-oriented community and culture in support of the Bitcoin network." 

On April 30, Ordinals reached a new record, with the number of daily inscriptions topping 300,000.

Around the same time, the number of Bitcoin transactions neared peaks not seen in a number of years, according to blockchain data firm IntoTheBlock.

Related: Magic Eden launches marketplace for Bitcoin Ordinals

The meteoric rise of Ordinals has been a controversial topic in the wider Bitcoin community, having been extensively criticized by Bitcoin maximalists for straying from the original purpose of Bitcoin as a peer-to-peer electronic currency and clogging up valuable block space.

One such critic is Blockstream CEO Adam Back, who has made a number of comments in which he declared Ordinals to be “useless,” and claimed that he is “more into Bitcoin as a currency.”



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Gemini ‘supportive’ of Genesis mediation, but frustrated over pacing

Gemini ‘supportive’ of Genesis mediation, but frustrated over pacing

Genesis is starting a 30-day meditation with its key creditors as its bankruptcy proceedings are close to hitting the four-month mark.

Crypto lender Genesis and its key creditor group have agreed to a 30-day mediation process in an attempt to move forward with a final restructuring plan, though one company is expressing "frustration" over the pace of progress.

On April 30, Gemini tweeted that Genesis, its parent company Digital Currency Group (DCG), its Unsecured Creditors Committee (UCC) and Gemini have agreed to a 30-day mediation process in court on April 28. 

Gemini said its aim is to “drive to a final resolution as soon as possible, and that it was “supportive” of mediation. Gemini, however, added it had “expressed our frustration” regarding “the pace of progress among the parties and the need for urgency.”

The mediation is to move forward on a proposed bankruptcy exit plan submitted in February that expected creditors to recover 80% of lost funds. The plan is backed by DCG but the UCC opposed the restructuring deal, wanting better terms.

Genesis is slated to next appear in bankruptcy court on May 4. Sean O’Neal, a lawyer for Genesis, said in court on April 30 that it hopes to have two mediation sessions before May 8, with the deal’s final terms made public after the mediation period.

A mediator will need to be selected by Genesis and the UCC. O’Neal said potential mediators have started to be contacted and the process will be outlined to the court once one is selected.

Related: Binance.US, Alameda, Voyager Digital and the SEC — the ongoing court saga

On April 25, DCG expressed its thoughts on the matter when Genesis filed its motion for mediation.

The crypto conglomerate said the settlement would “prolong the court process” due to the renewed demands and added it was “difficult to understand the rationale” of Genesis creditors as they had given “limited engagement” since the plan proposed in February.

Genesis filed for Chapter 11 bankruptcy in a New York District Court in January, estimating its liabilities were between $1 billion and $10 billion with assets in the same range.

The crypto lender was one of several firms hit by liquidity issues in the wake of the collapse of FTX.

Magazine: Whatever happened to EOS? Community shoots for unlikely comeback



via cointelgraph.com
The Fall Of Bitcoin In The Central African Republic: Why This Legal Tender Experiment Failed

The Fall Of Bitcoin In The Central African Republic: Why This Legal Tender Experiment Failed

Just a year after making bitcoin legal tender, the Central African Republic (CAR) abandoned its plans to revitalize its country. Why?

This is an opinion editorial by Jonathan Buck, founder of JB & GS Mining GmbH, a German bitcoin mining hosting company.

In April 2022, the Central African Republic (CAR) adopted bitcoin as legal tender, becoming the second nation in history to do so. However, just a year later, the nation reversed its decision. But what are the reasons behind this failure in the CAR?

Challenging Economic Conditions

The CAR, one of the poorest countries in the world, faces numerous obstacles, such as political instability, inadequate infrastructure and food shortages.

In the 2018 Human Development Index, the CAR ranked second to last, with around 79% of its 4.7 million residents living in poverty. More than three million people in the country are reported to require humanitarian assistance while more than 85% of the population lacks electricity.

One of the significant barriers to the success of the Bitcoin project in the CAR was surely the country’s limited internet access. With only about 10% percent of the population having access to the internet, widespread adoption of digital currencies was highly unlikely.

While Bitcoin has been helping to bank the unbanked globally, the digital currency alone cannot solve all of a country's underlying infrastructure problems. And while Bitcoin can be resilient off the grid, the lack of basic amenities such as electricity and internet in CAR likely hindered the spread and usability of Bitcoin there.

Skepticism And International Concern

The introduction of bitcoin as legal tender in CAR was met with skepticism, partly due to the country’s close ties with Russia, raising suspicions about its potential plans to use cryptocurrencies to bypass sanctions.

The United Nations also warned that developing countries like the CAR could face high risks and costs associated with cryptocurrencies.

And, ultimately, the economic benefits promised by the proponents of Bitcoin in the CAR never materialized. Ambitious projects, such as building a “Bitcoin city,” failed or never began, further dampening enthusiasm for the digital currency experiment.

A Larger Trend?


Despite the disappointment in the CAR, Bitcoin and other cryptocurrencies have been gaining traction in other African countries. For example, countries such as Nigeria and South Africa have seen a significant increases in bitcoin adoption, with millions of users now buying, selling and trading digital assets. In these countries, the growth of the cryptocurrency industry has been driven by factors such as the high inflation rate of local fiat currencies; an increasing number of young, tech-savvy individuals; and a growing number of businesses accepting bitcoin as a payment method.

In the end, the failure of bitcoin as legal tender in the CAR can be attributed to the nation's challenging economic conditions, skepticism surrounding its motives, limited access to technology and unfulfilled peripheral promises.

But despite this failure, other African countries represent some of the world’s most promising, growing epicenters of Bitcoin adoption. If anything, this failure in the CAR highlights the importance of developed environments and good-faith intentions for the successful adoption of Bitcoin, at least for the first handful of countries that hope to be successful.

This is a guest post by Jonathan Buck. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.


via bitcoinmagazine.com
'Good luck bears' — Bitcoin traders closely watch April close with BTC price at $29K

'Good luck bears' — Bitcoin traders closely watch April close with BTC price at $29K

Bitcoin approaches the end of April barely moving as BTC price offers little short-term clues on trajectory.

Bitcoin (BTC) narrowed volatility on April 30 as the weekly and monthly candle closes loomed.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader sees BTC price upside capped at $32,500

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it loitered just above $29,000 throughout the weekend.

After unsettled price action earlier in the week, Bitcoin returned to sideways trading, with markets witnessing an eerie calm despite the potential for volatility thanks to lower weekend liquidity.

As such, traders were hopeful that no unwelcome surprises would greet the candle closes.

“Nothing has changed,” popular trader Elizy summarized in part of recent Twitter analysis of the 3-day chart.

Elizy eyed a potential upside target of up to $32,500 in the event of a breakout, while the loss of a key trend line below spot price would be cause to “become really bearish.”

BTC/USD annotated chart. Source: Elizy/Twitter

Fellow trader known as J focused on the monthly close, noting that BTC/USD now sat at a historically significant point based on behavior from throughout its current halving cycle.

“On the monthly, we can see Bitcoin has rallied into the 2021 lows, which is a major resistance + supply area,” he summarized.

As part of the longer-term roadmap, the largest cryptocurrency should see “Chop + slightly down during May - Sep/Oct,” J added, before performance picks up.

BTC/USD annotated chart. Source: J/Twitter

"Good luck bears"

With little to work with on lower timeframes, others also resorted to examining strength on the weekly chart and higher.

Related: Bitcoin price holds $29K as US PCE data sparks 90% Fed rate hike bets

Among them was analyst Moustache, who noted support holding above key exponential moving averages (EMAs) in a manner similar to that which preceded major upside in previous years.

“Imagine being bearish on BTC even though it has been forming support ABOVE the EMA ribbon bands for several weeks. Good luck bears,” he commented.

BTC/USD annotated chart. Source: Moustache/Twitter

Last week, Moustache argued that "smart money" had already built BTC positions and was now waiting for the real upside to kick in.

At current spot price of $29,267, Bitcoin would go some way to canceling out the prior weekly candle losses were it to close without last-minute volatility.

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

Magazine: Whatever happened to EOS? Community shoots for unlikely comeback

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.



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YouTube helps recover hacked channel that attempted XRP crypto scams

YouTube helps recover hacked channel that attempted XRP crypto scams

YouTube’s swift intervention ensured damage control by preventing XRP hackers from interacting with the channel’s subscribers.

Prominent YouTuber DidYouKnowGaming was able to regain access to his YouTube channel, which an anonymous bad actor hacked to promote XRP (XRP) cryptocurrency scams.

While hacking into YouTube channels to promote scams has been a long-standing method of targeting unwary investors, the number of creators on the platform reporting hacks has increased. Most recently, DidYouKnowGaming — a YouTuber with 2.4 million subscribers — warned his Twitter followers about a hack.

After gaining access to the account, the hacker changed the YouTuber’s profile and cover images to Ripple’s logo, as shown below.

Hacked YouTube account of DidYouKnowGaming. Source: Twitter

YouTube’s swift intervention ensured damage control by preventing XRP hackers from interacting with the channel’s subscribers. Recently, one of the largest YouTube creators, Linus Tech Tips, also reported losing access to his channels.

While the exploit used by the hackers to gain access to YouTube accounts remains a mystery, the victim YouTubers have always been able to recover their accounts and deleted videos, if any.

The threat to crypto investors from such hacks is prominent, considering the rise of deepfakes, which are fake impersonation videos generated by artificial intelligence (AI) tools.

Hackers often create deepfakes of Tesla CEO Elon Musk and other entrepreneurs to misguide crypto investors.

Concerns escalated as Chinese tech giant Tencent launched a new deepfakes creation tool, allowing users to impersonate anyone for 1,000 yuan ($145).

Deepfake version (left) created by Tencent Cloud’s AI service. Source: Tencent (via Jiemian) 

As reported by Cointelegraph, the service will be used by Tencent to host live-streamed infomercials for the Chinese demographic.

Related: Here’s how to quickly spot a deepfake crypto scam — cybersecurity execs

Crypto investors across the world use YouTube to learn about and research the world of cryptocurrencies, blockchain and Web3.

To learn more about Web3 development, check out these five YouTube channels that can help investors and enthusiasts with their research.

Magazine: Shirtless shitposting and hunting SBF on the meme streets: Gabriel Haines, Hall of Flame



via cointelgraph.com
First Republic’s crisis is not an isolated incident - suggests JPMorgan exec

First Republic’s crisis is not an isolated incident - suggests JPMorgan exec

The CIO of JPMorgan Asset Management said it’d be “naive to say that this is just limited to First Republic.”

An executive at JPMorgan Asset Management is unsure how United States regional banks are “going to operate” when the Federal Deposit Insurance Corporation (FDIC) and Federal Home Loan Bank (FHLB) emergency lending programs expire – warning that the possible collapse of First Republic Bank may cause a domino effect.

In an April 27 Bloomberg television interview, Bob Michele, CIO of JPMorgan Asset Management said that the impact of First Republic's liquidity issues caused by significant deposit outflows isn’t “just limited” to the bank itself, but could potentially affect the entire banking industry.

Michele emphasized that this is not an isolated incident, when asked if he sees this as a “First Republic problem or a banking problem.” He stated:

“Well, I think we have both, I think it’s somewhat naïve to say that this is just limited to First Republic.”

He added that the liquidity issues faced by First Republic “should never have happened,” as banking is the “most heavily regulated capitalized industry on the planet.”

Michele believes there needs to be “continuous progress to some sort of resolution” for the impact of First Republic’s downfall to be contained, or “ringfenced,” and prevented from spreading throughout the broader financial system.

Michele blamed the “high price of everything” as a major factor leading to the recent banking crisis events, as the “bottom quartile of earners” in the United States have been “most punished,” forced to deplete their deposit balances “just to live.”

He stated that "most people’s" deposit balances are now even lower than before the beginning of the Covid-19 pandemic.

Michele believes that a resolution is urgently needed as regional banks are “heavily dependent” on both the FDIC and FHLB.

“I think the regional banks are heavily dependent on the FDIC, they are heavily dependent on the federal home loan bank to get additional cash, we don’t know how they are going to operate when those two programs expire.”

During the last quarter of 2022, both Signature Bank and Silvergate Bank reportedly received substantial loans from the FHLB – a consortium of 11 regional banks across the United States that provides funds to other banks and lenders – totalling nearly $10 billion and at least $3.6 billion, respectively.

However, despite the financial assistance, both banks eventually collapsed due to significant deposit outflows.

Related: Bitcoin price jumps in the wake of First Republic Bank price crash

Ryan Selkis, CEO of blockchain research firm Messari, suggested in a tweet to his 322,000 followers on April 29 that unless the government recognizes that the Federal Reserve's (Fed) policies "are to blame and not crypto," more banks may face collapse in the future.

This comes after “people with knowledge” told Bloomberg on March 21 that Treasury Department staff members are reportedly studying ways to expand the current deposit insurance beyond the maximum cap of $250,000 to cover all deposits in the United States.

According to the FDIC, domestic U.S bank deposits totalled $17.7 trillion as of December 31.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom



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FDIC pins Signature Bank's failure on poor governance and illiquidity

FDIC pins Signature Bank's failure on poor governance and illiquidity

FDIC blamed SBNY’s board of directors and management for pursuing “unrestrained growth” using uninsured deposits without implementing liquidity risk management strategies.

The United States Federal Deposit Insurance Corp’s (FDIC) post-mortem assessment of Signature Bank of New York (SBNY) revealed poor management and inadequate risk management practices as the root cause for its collapse.

Signature Bank was shut down by federal regulators on March 12 in a bid to protect the U.S. economy and strengthen public confidence in the banking system. FDIC was appointed to handle the insurance process.

On April 29, FDIC’s report on the matter highlighted the collapse of major US banks — Silvergate Bank and Silicon Valley Bank — caused illiquidity due to deposit runs. The regulator further stated:

“However, the root cause of SBNY’s failure was poor management. SBNY management did not prioritize good corporate governance practices, did not always heed FDIC examiner concerns, and was not always responsive or timely in addressing FDIC supervisory recommendations (SRs).”

FDIC blamed SBNY’s board of directors and management for pursuing “unrestrained growth” using uninsured deposits without implementing liquidity risk management strategies. The final nail in the coffin for Signature Bank was when it could not manage liquidity, which was required to fulfill large withdrawal requests.

Correlation of SBNY’s stock price to crypto-industry events. Source: FDIC

The report also revealed that Signature Bank often denied addressing FDIC’s concerns or implementing the regulator’s supervisory recommendations. Since 2017, FDIC sent numerous supervisory letters to SBNY citing regulatory, audit or risk management criticisms, as shown below.

Proposed SRs from targeted review Supervisory Letters in process at the time of SBNY’s failure. Source: FDIC

Due to non-compliance with the recommendations, the FDIC had downgraded SBNY’s Liquidity component rating to “3” starting in 2019, further highlighting the need to improve its funds management practices.

Related: ‘Ludicrous’ to think Signature Bank’s collapse was connected to crypto, says NYDFS head

Two government bodies were reportedly investigating Signature Bank for money laundering prior to its collapse. A report from March 15 highlighted that Justice Department was investigating the bank for potential money laundering.

In addition, a parallel probe by the Securities and Exchange Commission was reportedly underway. However, it remains unclear how the investigations aided the bank’s closure.

Magazine: Whatever happened to EOS? Community shoots for unlikely comeback



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Visa stablecoin plan, debt’s ceiling effect on Bitcoin price: Hodler’s Digest, April 23-29

Visa stablecoin plan, debt’s ceiling effect on Bitcoin price: Hodler’s Digest, April 23-29

Circle launches cross-chain transfer protocol, Visa shares plans for stablecoin product, Kraken fights back in court, and more.

Top Stories This Week

Circle launches cross-chain USDC transfer protocol

Circle launched a cross-chain protocol that enables USDC transfers between the Ethereum and Avalanche blockchains. The protocol works by burning the selected amount of native USDC on the source chain, and minting an equivalent amount of new USDC on the intended destination chain. The protocol essentially makes USDC transfers between the two networks faster and more user-friendly, as prior to its launch, people had to use third-party bridges or a Circle partner to facilitate transfers between the two networks. Additional support for Solana and other blockchains will be added later in 2023.

Stablecoin payments: Visa shares plans for ambitious crypto product

Cuy Sheffield, the head of crypto at Visa, announced a new cryptocurrency-related project, on April 24, focused on stablecoin payments. Details are sparse at this stage; however, Sheffiled shared a job listing relating to the project, with the description noting that the Visa Crypto Team is building the next generation of products to facilitate commerce in everyone’s digital and mobile lives. The job listing is seeking candidates with a good understanding of layer-1 and layer-2 solutions, alongside experience with writing smart contracts using the programming language Solidity, among other things.

Kraken asks San Francisco court to intervene against IRS demands

Crypto exchange Kraken has fought back against the U.S. Internal Revenue Service (IRS) over what it feels is an unjustified treasure hunt for users trading info. According to court documents, the firm requested a federal court in San Francisco to intervene and ask the IRS to back off. The IRS issued a summons in February demanding additional information on Kraken users who traded $20,000 or more in any single year from 2016 to 2020. 

Metaverse divisions $4B loss drags on positive first quarter for Meta

Meta disclosed in its Q1 earnings report that its metaverse unit, Reality Labs, posted a loss of around $4 billion during the quarter. In what has been a costly venture for the firm, the $4 billion loss adds to the $14 billion Reality Labs loss over the entirety of 2022. Still, Meta posted a profit totalling roughly $5.7 billion in Q1 overall, with the firms work on artificial intelligence somewhat curbing the losses. Mark Zuckerberg was also not phased by the loss from Reality Labs, as he reiterated that we continue to expect Reality Labs operating losses to increase year-over-year in 2023 as the firm eyes growth in the long term.

Viral clips of Securities and Exchange Commision chair Gary Gensler started circulating this week, showing him take a highly contradictory stance on crypto compared to what he holds now. As it stands, Gensler thinks almost every crypto asset apart from BTC is a security, and has pushed hard to regulate the crypto sector from that viewpoint. However, in a snippet from one of his Blockchain and Money lectures from 2018 while he was working as a professor at the Massachusetts Institute of Technology Gensler said, Three quarters of the market is non-securities, it’s just a commodity, cash, crypto. He even suggested Ether was not a security, despite repeatedly suggesting otherwise over the past couple years.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $29,275, Ether (ETH) at $1,900 and XRP at $0.47. The total market cap is at $1.2 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Render Token (RNDR) at 40.91%, Cronos (CRO) at 13.47% and Injective (INJ) at 10.49%. 

The top three altcoin losers of the week are PancakeSwap (CAKE) at 19.13%, Zilliqa (ZIL) at 12.41% and Optimism (OP) at 11.26%.

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

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Most Memorable Quotations

Its a critical moment here in the U.S. and, as I like to say, its really a moment for Congress to step up.

Jeremy Allaire, CEO of Circle

I think its probably not a coincidence that youre seeing all these concerns about de-dollarization at the same time they’re cracking down on crypto.

David Sacks, co-host of the All-In podcast

[Blockchain] is about helping different groups of people come together to be able to trust each other more, to collaborate across larger distances on many different kinds of projects.

Vitalik Buterin, Ethereum co-founder

The fights about mining arent really about mining. Its not really about environmental concerns. What its really about is controlling energy use.

Perianne Boring, CEO of the Chamber of Digital Commerce

While DeFi has immense potential, more education is needed to quell the confusion and fear plaguing mainstream users.

 Julian Hosp, CEO and co-founder of Cake DeFi

Prediction of the Week 

Analysts at odds over Fed, US debt ceiling impact on Bitcoin price

After the House Republicans scarcely passed their bill to increase the U.S. debt ceiling on April 26, market analysts promptly started weighing up its potential impact on the price of Bitcoin (BTC). Analysts such as the chief operating officer of investment firm Onramp, Jesse Meyers, believe that raising the debt ceiling will likely prompt the Federal Reserve to print more money, thus boosting capital inflows into risky assets like BTC.

When the debt ceiling is lifted and credit-contraction leads to economic crisis… They will have to print money on a massive scale, he noted. #Bitcoin was the winner during the last round of stimulus.

FUD of the Week 

Ordinals Finance has conducted a $1M rug pull: CertiK

Ethereum-based decentralized finance protocol Ordinals Finance, was accused of performing a rug pull. The protocol enables users to lend and borrow inscriptions. However, blockchain security firm CertiK reported that the protocols developer abruptly pulled 256 million OFI tokens out of its smart contracts using a safuToken function. According to CertiK, another 13 million OFI was then removed through an ownerRewithdraw function, bringing the total number of withdrawn tokens to 269 million. In total, the reported loss to investors was estimated to be around $1 million, almost half of the total OFI market cap.

One crypto wallet launched 114 dodgy memecoins in two months

According to research from pseudonymous blockchain sleuth ZachXBT posted, on April 26, one specific wallet address launched 114 memecoin scams over the previous 45 days. ZachXBT tracked the 0x739c58807B99Cb274f6FD96B10194202b8EEfB47 address, and found that stolen funds from scams are continually sent to this address. ZachXBT was unable to calculate how much the funds equated to, as the alleged scammer used multiple wallets to split up funds. I suspect there are more too. These are just ones sent to that deposit address lol, ZachXBT wrote.

Google Ads data: $4M stolen through crypto phishing URLs

According to Google Ads data coupled with blockchain analytics, over $4 million has been stolen from people that clicked on malicious phishing websites that mimic legitimate crypto platforms. It marks a concerning trend for the crypto community, given that these dubious websites are promoted on Google search results and closely replicate real platforms.

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Elizabeth Warren wants the police at your door in 2024

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UK Treasury seeks input on taxing DeFi staking and lending: Finance Redefined

UK Treasury seeks input on taxing DeFi staking and lending: Finance Redefined

The UK Treasury is seeking input on taxing the DeFi space, and on provisions around staking and lending.

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.

The taxation arm of His Majesty’s Treasury in the United Kingdom has proposed new regulatory changes to simplify how DeFi returns are taxed and reduce the “administrative burden” for taxpayers.

A DeFi options protocol has raised $17 million for a buy-side marketplace and an expanded number of listed tokens. USD Coin (USDC) issuer Circle launched a cross-chain USDC transfer protocol between Ethereum and Avalanche.

Ordinals Finance, an Ethereum-based DeFi protocol, allegedly rug-pulled its users for over a million dollars and erased its presence from all social media platforms as news about the same broke out.

The top 100 DeFi tokens by market capitalization had another mixed week in terms of price action, with minimal changes over the past week.

UK Treasury seeks input on taxing DeFi staking and lending

The taxation arm of the UK Treasury is seeking input on a possible new regime for taxing DeFi. An April 27 consultation by His Majesty’s Revenue and Customs will run until June 22. It asks for “investors, professionals and firms engaged in DeFi activities” along with representative bodies and think tanks to submit their views on the government’s proposed DeFi tax treatment.

Under the proposed legislative changes, crypto used in DeFi transactions wouldn’t be treated as a disposal for the purposes of tax, which usually trigger a capital gains tax event.

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DeFi options protocol raises $17M for buy-side marketplace

Thetanuts Finance, a DeFi protocol offering crypto options contracts, has raised $17 million to provide a buy-side marketplace and an expanded list of coins, according to an April 24 announcement from the team.

The team plans to employ the new funds to provide a “buy-side altcoin options market” to attract options purchasers. The announcement states that, until now, DeFi options protocols have focused on attracting sellers looking for steady income instead of options traders looking for leverage. Using the newly raised funds, the developers hope to be one of the first protocols to provide products for the buy side of the options market.

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Circle launches cross-chain USDC transfer protocol for Ethereum, Avalanche

Circle, the creator of USDC, has launched a mainnet protocol that lets users transfer USDC between Ethereum and Avalanche, according to an April 26 announcement. Previously, Avalanche users holding USDC on Ethereum had to deposit their coins with a Circle partner or use a third-party bridge to transfer USDC between networks. The new cross-chain transfer protocol appears to do away with the need for USDC bridges.

The team released a video on April 13 showing how the new protocol works. Unlike a traditional bridge, it doesn’t lock tokens sent to its contract. Instead, it destroys them and issues new tokens on the receiving network. Users can directly redeem these new tokens for bank deposits by depositing them with Circle or its partners.

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Ordinals Finance has conducted a $1M rug pull: CertiK

Ordinals Finance, an Ethereum-based DeFi protocol that allows users to lend and borrow inscriptions, has been accused of performing an exit scam known as a “rug pull.”

In an April 24 press release seen by Cointelegraph, blockchain security firm CertiK reported that the protocol’s developer pulled 256 million of its native OFI tokens out of its smart contracts using a “safuToken” function. Another 13 million OFI were removed through an “ownerRewithdraw” function, bringing the total number of tokens withdrawn to 269 million, CertiK stated.

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DeFi market overview

DeFi’s total market value saw a minor increase this past week. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a mixed week, with most tokens trading in the red. The total value locked in DeFi protocols stood at just above $50 billion.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.



via cointelgraph.com
Price analysis 4/28: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC

Price analysis 4/28: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC

Bitcoin and select altcoins continue to face selling at higher levels, a sign that the bears have not yet given up.

The cryptocurrency market witnessed sharp volatility on April 26 on rumors that large sums of Bitcoin (BTC) were on the move from the wallets linked to the defunct cryptocurrency exchange Mt. Gox and the United States government. A minor positive is that Bitcoin and select altcoins held their respective support levels.

After Bitcoin’s sharp rally in 2023, some traders seem to be planning to book profits. Coinglass reported that the Bitcoin balance held at Binance soared by 50,000 Bitcoin in the past 30 days.

While this could add to short-term pressure, bulls can take solace because the increase is not identical across exchanges. Coinglass said that the aggregate increase of Bitcoin balance across exchanges was 14,000 Bitcoin.

Daily cryptocurrency market performance. Source: Coin360

The next major event for the market is likely to be the U.S. Federal Reserve’s meeting on May 2 and 3. The FedWatch Tool projects a 90% probability of a 25 basis point rate hike in the meeting. Most analysts expect this to be the final rate hike before a pivot later in the year.

Could Bitcoin and select altcoins break above their respective resistance levels and resume the up-move? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin formed a long-legged doji candlestick pattern on April 26, indicating indecision among the bulls and the bears about the next directional move. This uncertainty resolved to the upside with a close above the 20-day exponential moving average ($28,619) on April 27.

BTC/USDT daily chart. Source: TradingView

The bears will try to pull the price back below the 20-day EMA while the bulls will attempt to flip the level into support. If buyers succeed, the BTC/USDT pair will try to challenge the overhead resistance zone between $31,000 and $32,400. This zone is likely to witness a tough battle between the bulls and the bears.

Contrary to this assumption, if the price turns down and slips below the 20-day EMA, it will indicate that the sentiment is turning negative and traders are selling on rallies. The pair may then retest the strong support at the 50-day simple moving average ($27,657). A break and close below this level could open the gates for a decline to $25,250.

ETH price analysis

The bulls kicked Ether (ETH) above the 20-day EMA ($1,905) on April 26 and 27 but they could not reach the psychological level of $2,000. This suggests that the bears are trying to halt the recovery below $2,000.

ETH/USDT daily chart. Source: TradingView

The 20-day EMA has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. This points to a possible range-bound action between $2,000 and $1,785 for a few days.

If that happens, it will be a positive sign because it will indicate that the bulls are not rushing to book profits. That will enhance the prospects for a potential rally to $2,200. This positive view will invalidate if the price turns down and breaks below $1,785. The ETH/USDT pair could then collapse to the 61.8% Fibonacci retracement level of $1,663.

BNB price analysis

The bulls propelled BNB (BNB) above the $338 overhead resistance on April 26 but they could not sustain the higher levels as seen from the long wick on the day’s candlestick.

BNB/USDT daily chart. Source: TradingView

The bulls again tried to overcome the obstacle at $338 on April 27 but the bears did not budge. The selling picked up momentum on April 28 and the bears are trying to sink the price below the 50-day SMA ($321). If they succeed, the BNB/USDT pair could dive to $300 and thereafter to $280.

Instead, if the price rebounds off the current level, it will indicate that bulls have not given up and are buying on dips. The bulls will have to surmount the hurdle at $350 to signal the start of a new uptrend toward $400.

XRP price analysis

XRP (XRP) bounced off the support at $0.43 on April 26, indicating that the bulls are fiercely guarding this level.

XRP/USDT daily chart. Source: TradingView

The price has reached the 20-day EMA ($0.48), which is an important level for the bears to defend in the near term. If the price turns down from this level, the sellers will again try to yank the price below $0.43. If they manage to do that, the XRP/USDT pair may plunge to $0.36.

Contrarily, if buyers kick the price above the 20-day EMA, the pair can reach the resistance line. A break and close above this level will suggest that the short-term corrective phase is over. The pair will then attempt a rally to $0.54 and subsequently to $0.58.

Cardano price analysis

Cardano (ADA) rebounded off the 50-day SMA ($0.38) on April 25 and 26, indicating that buyers are trying to start a recovery from this support.

ADA/USDT daily chart. Source: TradingView

The ADA/USDT pair has reached the neckline of the inverse head and shoulders pattern where the bears are trying to halt the recovery. If buyers overpower the sellers and sustain the price above the neckline, the pair should rally to $0.46.

Conversely, if the price turns down from the neckline, it will suggest that the bears are trying to prevent the reversal pattern from forming. The sellers will then make another attempt to sink the price below the 50-day SMA. If they can pull it off, the pair could dump to $0.34.

Dogecoin price analysis

The bears pulled Dogecoin (DOGE) below the support near $0.08 on April 26 but they failed to build upon the breakdown. Buyers purchased the dip and pushed the price back above the 50-day SMA ($0.08) on April 27.

DOGE/USDT daily chart. Source: TradingView

The next resistance to watch out for is the 20-day EMA ($0.08) and then the downtrend line. Buyers will have to propel the price above the downtrend line to clear the path for a possible rally to the $0.10 to $0.11 resistance zone.

Meanwhile, the bears are likely to have other plans. They will try to sink the price back below the support near $0.08. If they succeed, the DOGE/USDT pair may slide to the vital support near $0.07. The bulls are likely to protect this level with all their might.

Polygon price analysis

The long tail on Polygon’s (MATIC) April 25 and 26 candlestick shows that the bulls are defending the support at $0.94 with vigor but the bears have not yet given up.

MATIC/USDT daily chart. Source: TradingView

The downsloping 20-day EMA ($1.05) and the RSI in the negative territory indicate that bears have the upper hand. Sellers will try to halt the recovery in the zone between the 20-day EMA and the resistance line.

If the price turns down from the resistance line, it will signal the formation of a potential descending triangle pattern, which will complete on a break below $0.94. If this support cracks, the MATIC/USDT pair risks a plunge to $0.69.

Related: Bitcoin price holds $29K as US PCE data sparks 90% Fed rate hike bets

Solana price analysis

Solana (SOL) tried to break out of the tight range trading on April 26 but failed. The bulls are again trying to resolve the uncertainty in their favor on April 28.

SOL/USDT daily chart. Source: TradingView

If the price rises above the immediate resistance at $23.18, it will signal that the bulls have absorbed the supply. The SOL/USDT pair will then attempt a rally toward the stiff overhead resistance at $27.12, which remains the key level for the bulls to overcome. If they do that, the pair can start a new up-move and soar to $39.

If bears want to prevent the rally, they will have to quickly tug the price below the $18.70 support. That can sink the pair to the next support at $15.28.

Polkadot price analysis

The bears successfully defended the moving averages on April 26 but could not sustain the drop below the support at $5.70. This indicates that Polkadot (DOT) is finding buyers at lower levels.

DOT/USDT daily chart. Source: TradingView

The DOT/USDT pair can swing between $5.70 and the 50-day SMA ($6.20) for some time. If the consolidation resolves to the downside, the selling could intensify and the pair may fall to $5.15. This level is likely to attract buyers.

Alternatively, if buyers drive the price above the 50-day SMA, it will suggest that the bulls are on a comeback. The pair may first climb to $7 and if this resistance is scaled, the rally could stretch to $7.90.

Litecoin price analysis

Litecoin (LTC) witnessed a hugely volatile day on April 26, indicating that the bulls and the bears tried to gain complete control but failed.

LTC/USDT daily chart. Source: TradingView

Usually, large volatile days are followed by a range contraction for a few days. The flattish moving averages and the RSI just below the midpoint suggest a range-bound action in the near term. The LTC/USDT pair may oscillate between $85 and $96 for some time.

A break above $96 or below $85 will start the next leg of the trending move. If bears sink the price below $85, the pair may plummet to $75. On the other hand, a rally above $96 may open the gates for a possible rally to $106.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.



via cointelgraph.com
Neutronpay Launches Bitcoin Lightning App In Canada, Partners With Ditobanx For Remittances To El Salvador

Neutronpay Launches Bitcoin Lightning App In Canada, Partners With Ditobanx For Remittances To El Salvador

Neutronpay aims to empower the second largest population of El Salvadorans outside of the country using Lightning and Bitcoin.

Neutronpay, a Bitcoin and Lightning company, has announced the release of its mobile app in Canada. According to the company, Neutronpay aims to provide a fast, secure and low-cost solution for cross-border remittances using Lightning.

The app allows users to send and receive Bitcoin and Lightning payments, and it comes with a range of features, including a Lightning Network explorer, QR code scanner and a customizable address book. It also allows users to exchange Bitcoin and other cryptocurrencies for fiat currencies, such as Canadian dollars, and vice versa.

In addition to the release of the app, Neutronpay has announced its first Canadian partnership with DitoBanx, a Bitcoin and Lightning app in El Salvador. The partnership aims to facilitate cross-border remittances between El Salvadorian-Canadians and their families in El Salvador. Neutronpay's Lightning-powered app will allow Canadians to send and receive money to and from DitoBanx instantly and transparently.

"Cross-border remittances over Lightning are truly keeping more money in the hands of the people who need it the most, all while happening instantly and transparently," Neutronpay said in a statement. "We look forward to supporting El Salvadorians and each new community which comes next for us, so stay tuned!"

El Salvador was the first country in the world to adopt Bitcoin as legal tender, and it has been attracting attention from bitcoin companies around the world. According to Neutronpay, Canada has the second largest El Salvadorian community outside the country making it a perfect market for this technology.


via bitcoinmagazine.com
'The war room was despondent' — Scaramucci recounts FTX collapse at Consensus

'The war room was despondent' — Scaramucci recounts FTX collapse at Consensus

The Skybridge founder said that Binance CEO Changpeng Zhao is not to blame for the collapse.

On April 27, Skybridge founder Anthony Scaramucci revealed what the final days of FTX were like, claiming that most employees of the failed crypto exchange probably didn’t know what its executives were doing behind closed doors until it was too late.

In a panel discussion called “FTX: What Happened?” at Consensus 2023, Scaramucci gave a detailed narrative of what happened from his perspective. The Skybridge founder said he remembers hearing that FTX CEO Sam Bankman-Fried had commented negatively about Binance CEO Changpeng Zhao, also known as “CZ.”

Scaramucci claimed that CZ responded by selling his share of FTX Tokens. However, CZ's stated reason for unloading FTX Tokens was "post-exit risk management," likely because he reviewed a leaked balance sheet of the company showing a concerning connection between FTX and sister company Alameda Research. However, Scaramucci was emphatic in stating that CZ did not cause the bankruptcy of FTX, explaining:

“If Sam was running the business appropriately […] The business would have been fine […] Some people have got on a stage like this and said, "Well CZ put Sam out of business." No, no. Sam put Sam out of business by the way he ran that business.”

Scaramucci said that on Nov. 6 or 7, he had just returned from giving a speech in Florida. After speaking to Bankman-Freid’s father, he learned that there was some kind of liquidity problem at FTX. He thought the exchange had the assets to repay depositors but that these assets could not be sold quickly, threatening to force the exchange to halt withdrawals.

Scaramucci wanted to help the exchange, he said. But “later in the evening, that number went from 1 billion to 4.5 billion,” referring to the dollar amount of the liquidity shortfall. This convinced him that something more serious was going on at the exchange. He immediately booked a flight to The Bahamas to visit FTX headquarters and discover what was happening. When he arrived, “The war room was despondent, and I would say that it was clear to a few people that there was a very small group of people that had done some things that they didn't let the other people into,” he explained.

Related: FTX sells Ledger X for $50M to affiliate of Miami-based exchange holding company

Scaramucci said the collapse of FTX was an example of why frauds are almost always committed by a small group of people:

“The way crimes get committed is they get committed by very small groups. It's very hard to commit a crime like this with a large group of people because what you learn about psychology and sociology, there's always a person of conscience that comes out and says, "Hey, I don't want to do this."”

Scaramucci implied that FTX was a fraud and not merely the victim of liquidity crises brought on by market events, stating:

“Three of those four people have already pled guilty. So, guys, when the windows open and you hear clippity clop outside, it's a horse. It's not a zebra […] It'll be very interesting to see how Sam makes a decision on his own plate.”

FTX filed for bankruptcy in November. Two of its executives, Gary Wang and Nishad Singh, have pled guilty to fraud, along with Caroline Ellison, the former CEO of Alameda Research. Bankman-Fried has also been charged with fraud. However, he has pleaded not guilty and claims that some of the money lost can be recovered.



via cointelgraph.com
Robinhood launches fiat-to-crypto on-ramp for self-custody wallets and DApps

Robinhood launches fiat-to-crypto on-ramp for self-custody wallets and DApps

Robinhood Markets announced the launch of its new “Robinhood Connect” service and numerous updates to its app.

The launch of "Robinhood Connect," a fiat-to-crypto on-ramp featuring support for decentralized applications (DApps) and self-custody wallets, was announced at Consensus 2023 on April 27.

Positioned as a competitor to similar services such as Coinbase Pay and MoonPay, Robinhood Connect essentially allows users to purchase and sell cryptocurrency directly to and from their self-custody wallet or natively in DApps using a credit or debit card.

Robinhood Connect features integration with Web3 projects, as developers can embed the service directly into applications. This allows customers to access their Robinhood credentials natively in DApps without having to open the Robinhood website or app separately to log in and conduct transactions.

Currently, the service is only available in the MyDoge, Giddy and Slingshot ecosystems, but upcoming support for Exodus and Phantom has been announced.

Johann Kerbrat, general manager of Robinhood Crypto, explained in a company blog post that the service was developed in hopes of bringing more people into the cryptocurrency space:

“Crypto and Web3 have the potential to change the future of the financial system for the better, but we recognize there are still significant hurdles preventing broader adoption.”

The market for fiat-to-crypto services such as Robinhood Connect isn’t exactly crowded, but Robinhood represents one of the only companies associated with traditional finance to enter the space.

As of January 2023, Robinhood claims to have 23 million total user accounts and $74.7 billion in assets under custody. This is significantly lower than Coinbase’s claimed 110 million verified users, but the asset count remains similar (Coinbase says it holds $80 billion in on-platform assets). For comparison, rival companies MoonPay and Webull have an estimated five and 13 million users, respectively. 

Along with the launch of Robinhood Connect, the company also announced several changes to the Robinhood app, such as the ability to conduct advanced orders via stop orders and stop limit orders.

Related: Robinhood board gives nod to buy Sam Bankman-Fried’s $578M stake

The new service and app upgrades come just a couple of months after the launch of Robinhood’s own branded self-custody wallet on the iOS App Store, which currently has a 3.9-star rating and ranks No. 144 in downloads for the finance category.



via cointelgraph.com