The world’s largest asset manager has been waiting to offer an exchange-traded fund for its iShares Bitcoin Trust in the United States.
The United States Securities and Exchange Commission (SEC) has delayed an application for a Bitcoin (BTC) exchange-traded fund from global asset manager BlackRock.
BlackRock, a firm with more than $8.5 trillion in assets under management, had a decision on its iShares Bitcoin Trust delayed following an application with the SEC. In June, BlackRock lodged an application for a BTC-backed ETF with Coinbase listed as the planned custodian of the fund’s Bitcoin holdings and the Bank of New York Mellon in charge of its fiat accounts.
BlackRock's filing outlined the value of the shares in removing “obstacles represented by the complexities and operational burdens involved in a direct investment in Bitcoin”. The ETF delay came after cryptocurrency asset manager Grayscale Investments petitioned to have an SEC decision overturned that had originally denied the listing of its over-the-counter Grayscale Bitcoin Trust (GBTC) on Aug. 29.
Many in the crypto space suggested the approval of a spot Bitcoin ETF backed by BlackRock — as the world's biggest asset manager — would signal a positive development for adoption. The delay, which allows the SEC another 45 days following publication in the Federal Register to approve, deny, or delay the BlackRock application again, puts the next deadline at Oct. 17.
A swathe of Bitcoin ETFs were delayed by the SEC on Aug. 31. The commission designated a longer period to review applications from WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck and Fidelity.
The SEC has just delayed BlackRock, Fidelity, WisdomTree, Invesco & Galaxy, VanEck, Bitwise, and Valkyrie's spot Bitcoin ETF applications, as first reported by Bloomberg ETF analysts James Seyffart and Eric Balchunas.
This was the first SEC decision deadline in the listing process for these applicants since filing, with the delays pushing these applications back another 45 days. The next bulk of deadlines are being slated for the middle of October.
Earlier this week, Grayscale won its lawsuit with the SEC, resulting in the DC Circuit court of appeals vacating the SEC's denial of Grayscale's $GBTC conversion into a spot Bitcoin ETF. This means it will be sent back to the SEC, in which now the commission has 45 days to appeal and file for an en banc hearing, if they wish to do so.
While this victory in court does not mean GBTC is automatically being converted to a spot Bitcoin ETF, this ruling does help bring us one step closer to one being approved by the SEC. Because the U.S. court of appeals shot down the SEC's reasonings for denying Grayscale's application, stating, "The Commission neither disputed Grayscale's evidence that the spot and future markets for bitcoin are 99.9% correlated, nor suggested that market inefficiencies or other factors would undermine the correlation...The Commission’s unexplained discounting of the obvious financial and mathematical relationship between the spot and futures markets falls short of the standard for reasoned decision making."
Yesterday, Bloomberg analysts Seyffart and Balchunas upped their approval odds by the SEC for a spot Bitcoin ETF to 75% by the end of this year, and to 95% by the end of 2024.
More information on the U.S. spot Bitcoin ETF race can be found here.
The storm hit Florida first in the continental U.S., which may have stopped Ron DeSantis from joining Vivek Ramaswamy in accepting crypto donations for his presidential campaign.
Florida Gov. Ron DeSantis canceled a campaign event in which he was reportedly planning to announce the acceptance of cryptocurrency contributions toward his 2024 presidential run.
According to an Aug. 29 report from the Miami Herald, DeSantis canceled a cocktail-hour fundraiser for his 2024 presidential campaign in which he was expected to start accepting donations in crypto. The cancellation was due to the approach of Hurricane Idalia — a storm that hit Florida’s coastline on Aug. 30 before moving into Georgia.
DeSantis appeared to abstain from campaign events in advance of the hurricane passing through Florida. He took to social media channels and press conferences to inform residents about evacuation orders and other relevant information.
Overnight, #Idalia strengthened and now has sustained hurricane-force winds.
It is still expected to make landfall at Florida’s Big Bend as a major hurricane tomorrow. If you are in the path of this storm, now is the time to finalize your preparations. Continue to follow @FLSERT… pic.twitter.com/3yCSHtIJIK
According to DeSantis’ campaign website, the candidate was only accepting fiat donations using a credit card. Cointelegraph reached out to the campaign for comment but did not receive a response at the time of publication.
DeSantis, who is trailing by double digits to former President Donald Trump according to several polls, would be one of only a handful of candidates to accept donations in cryptocurrencies like Bitcoin (BTC) or Ether (ETH). Miami Mayor Francis Suarez announced he would be accepting crypto campaign contributions in August but dropped out of the race after failing to qualify for the first Republican Party debate.
Campaigns for Republican candidate Vivek Ramaswamy and longshot Democratic candidate Robert F. Kennedy Jr. have both announced they will accept BTC contributions for their respective presidential runs. Many reports showed both Ramaswamy and Kennedy polling in the single digits as of Aug. 30 — far behind their respective party leaders, Trump and President Joe Biden.
Historically, crypto contributions to individuals running for federal office, when accepted, have not been make-or-break for the candidates. Andrew Yang’s political action committee accepted BTC donations for his 2020 campaign, but he ended up dropping out of the race in February 2020.
Lawmakers in certain U.S. states have aimed to regulate disclosure rules for digital asset contributions or otherwise establish a limit to the amount any one person can give in crypto. In December 2022, the U.S. Federal Election Commission issued an advisory suggesting companies could provide nonfungible tokens to campaign contributors.
The iris-scanning project saw a surge of signups in Argentina, registering an average of one user every nine seconds.
Human ID project Worldcoin signed up over 9,500 users in Argentina in a single day in August, setting a record for single-day signups. To achieve this feat, facilitators onboarded participants at an average rate of less than nine seconds per person, according to an Aug. 31 announcement from the project.
Argentina is one of the world’s leading countries for blockchain innovation & crypto adoption. That reputation was reinforced recently, as demand for World ID led to 9.5K Orb verifications in 24 hours—a new global record. https://t.co/DEMx1Yda2O
Argentina has Worldcoin facilitators in 38 different locations, according to the project’s website. Most locations are in the country’s capital city of Buenos Aires.
Worldcoin is a blockchain-based project that allows individuals to prove they're human by having their irises scanned. When a user verifies their humanness, they are given a “World ID” that can be integrated into future applications to prove they are not a bot or artificial intelligence program. The project was founded by OpenAI co-founder Sam Altman, who argued that human IDs would be needed in the future as artificial AI programs become more sophisticated and less distinguishable from humans.
Worldcoin launched on July 25 and almost immediately came under criticism from data privacy advocates. Critics claimed that it is too centralized and could easily leak users’ biometric data, leading to negative consequences for users.
In their Aug. 31 post, the team claimed that many Argentinians are signing up for World IDs anyway, despite the controversy. “There was a significant increase in demand for World ID verifications in countries around the world [after launch],” they stated. This “continued into August, which saw 9.5K Argentinians verify their World ID in a single day.”
The post also stated that the surge in signups caused the Worldcoin app to “temporarily become the number one app in Argentina on the App Store.”
Worldcoin gives its native coin, WLD, to new users after they sign up. Currently, the signup bonus is 25 WLD, which is worth approximately 10,239.48 Argentinian Pesos (ARS) or $29.25 on the open market. According to cost-of-living data from travel website Expatistan, this is enough to buy two meals from the “basic lunchtime menu” in the business districts of major cities within Argentina. The coin hit an all-time high on launch day, when the 25 WLD bonus was worth approximately 23,791 ARS, or $68.
The project claims that it “is fully compliant with all laws and regulations governing biometric data collection and data transfer.” In response to criticism, the Argentinian government has opened an investigation of Worldcoin's privacy practices. Worldcoin has also been suspended in Kenya, and the Worldcoin team has responded with a document arguing that it has complied with all privacy laws in the country.
This week’s episode of Market Talks discusses whether it will ever be “too late” to buy Bitcoin and why BTC could take over the financial world.
On the latest episode of Cointelegraph’s Market Talks, host Ray Salmond spoke with Luke Broyles, a popular Bitcoin (BTC) advocate and content creator on YouTube and X (formerly Twitter). During the show, Broyles laid out his Bitcoin investment thesis and his unique perspectives on how the asset’s price could eventually rise into seven-figure territory.
Broyles said that in 2020, he realized the bond market was broken. While searching for alternative investments, he discovered Bitcoin as a sound option. When asked about his Bitcoin investment strategy and how he stomachs the volatility, Broyles said:
“I do not own bonds. I have sold off 97% of my stocks over the past three years, and I’m selling off the last 3% this week actually, so it’s funny that you ask that. By the end of this week, the only three assets that I will own will be U.S. dollars, aka cash, the best political currency in the world; second, real estate; and third, Bitcoin. That’s it. And I sleep better now than I did with a diversified portfolio.”
Everything is overpriced and should crash
Another key factor backing Broyles’ Bitcoin investment thesis is his belief that “everything is overvalued, nothing makes sense, and everything should crash; however, we don’t want to deal with it. Politicians don’t want to deal with it. Lawyers don’t want to deal with it. I, as a real estate investor, don’t want to deal with it.” Broyles believes that stocks, healthcare, real estate and the education industry are highly overvalued, so people are losing faith in the dollar and their dollar purchasing power — which highlights the allure of Bitcoin as a supply-capped asset.
“If we have a credit unwind, of course we’re going to print ourselves out of it.”
When asked whether there is a particular price where it becomes “too late” for investors to consider buying Bitcoin, Broyles made the analogy of a sinking ship and suggested that for those on the boat, it’s never too late to exit.
“At no point is it ever too late to buy Bitcoin, but it will be too late to exit bonds and to exit fiat.”
Listen to the full episode of Market Talks on the new Cointelegraph Markets & Research YouTube channel, and don’t forget to click “Like” and “Subscribe” to keep up-to-date with all our latest content.
After Chainalysis Head of Investigations Elizabeth Bisbee had to admit to the lack of scientific evidence for the accuracy of Chainalysis’ Reactor software, experts of blockchain surveillance firm CipherTrace lay bare flaws in Chainalysis’ analysis.
An expert report filed on August 8th in the case United States vs. Sterlingov reveals a range of mistakes in Bisbee’s expert report as well as inaccuracies in the heuristics applied by Chainalysis’ Reactor software.
Chainalysis Reactor is a blockchain surveillance tool used to trace funds on the blockchain for law enforcement purposes. The widespread use of Chainalysis’ Reactor could pose a serious threat to democratic justice proceedings if the software’s findings prove to be unsubstantiated.
Roman Sterlingov is an early Bitcoin adopter accused of operating the custodial Bitcoin mixer Bitcoin Fog, who has been awaiting trial in a Virginia jail since 2021. Sterlingov is defended by Tor Ekeland, who is currently challenging the findings of Chainalysis Reactor in court. In Ekeland’s opinion, Chainalysis is “the Theranos of blockchain forensics.” As multiple expert evaluations of Chainalysis’ findings in the case show, he may not be wrong.
In an expert report to determine the viability of the accusations served against Sterlingov regarding the tracing of funds, Jonelle Still, director of investigations and intelligence at CipherTrace, now describes the use of Chainalysis’ behavioral clustering heuristic as “reckless”.
Chainalysis’ behavioral clustering heuristic aims to detect patterns in the structure or timing of transactions to identify a specific wallet software. By investigating a wallet service’s transaction patterns, Chainalysis applies clustering algorithms to map addresses belonging to the service.
In the case of Bitcoin Fog, CipherTrace has calculated a discrepancy in accuracy of roughly 64% for the behavioral clustering heuristic, which Still describes as overly inclusive. The inaccuracy of Chainalysis’ behavioral clustering heuristic would then be compounded by successive runs of co-spend and behavioral heuristics, leading to even more unreliable results.
“Notably,” Still continues in her report, “the heuristics with the highest claimed accuracy rates, FindNext and FindNext2, failed to find a link between Mt Gox [Sterlingov’s] transactions and Bitcoin Fog.” As opposed to behavioral clustering, FindNext heuristics are able to produce false discovery rates of only 0.62% and 0.02%, respectively.
CipherTrace, whose partners include Israeli digital forensics firm Cellebrite as well as the South African open source intelligence firm Maltego, refrains from using behavioral clustering as applied by Chainalysis as it is “not a true representation of the flow of funds on chain”, making it inaccurate and error-prone.
Still further criticizes Chainalysis’ use of single entity clustering, in which a root address is assigned to an entity “which may or may not be the correct address that transacted.” Such “lumping together” of data is described as being non-verifiable and can lead to many tracing errors, including a higher probability of false positives and negatives.
According to the report, “Law enforcement and other customers of Chainalysis have approached CipherTrace on this topic and have expressed frustration related to the errors they experience using Chainalysis Reactor.”
To add insult to injury, Still additionally highlights a non-exhaustive list of errors in Bisbee’s expert report, such as the use of bits instead of bytes leading to incorrect mathematical assumptions as well as multiple apparent incorrect identifications of change addresses. The report further highlights the missing of a number of script types, such as P2PK, P2MS, P2WSH, or P2TR and the incorrect statement that “a SegWit address begins with 3”, which also identifies P2SH addresses.
Citing a lack of data integrity, Still estimates that there are “hundreds of millions of data points that are unverified,” which “may warrant re-examination” of other cases based on these revelations.
To protect the integrity of data in criminal justice proceedings, Still recommends that “Chainalysis attribution data should not be used in court for this case nor any other case: it has not been audited, the model has not been validated, nor has the collection trail been identified.”
The report highlights the importance of model validation, which can be used to verify the accuracy of data enrichment and provide checks on the performance of a model. Providers should have “well documented, auditable processes for attribution and clustering” as opposed to “black-box models,” which use potentially unauthorized customer data” and “unverified user feedback”.
Still concludes that “Blockchain forensics should only be used to generate investigatory leads. Standing alone, they are insufficient as a primary source of evidence. What is striking about this case is the conclusions reached without any corroborating evidence for the blockchain forensics.”
Still further states that “The blockchain forensics and tracing tools used in this case were misused to erroneously conclude that Mr. Sterlingov was the operator of Bitcoin Fog when no such evidence exists on-chain.”
Still calls the failures of the blockchain forensics in this case “structural issues” in the space and calls for an independent audit of Chainalysis and their methodologies to “prevent wrongful arrests like this one, and failures in compliance, like with FTX.”
This is a guest post by L0la L33tz. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
The FTX bankruptcy claims agent reportedly confirmed that users’ personal data were leaked, contrary to earlier claims.
It appears that a data breach involving FTX bankruptcy claims agent Kroll has resulted in the leak of sensitive information, contrary to earlier reports.
In an alleged Kroll Q&A summary published on Aug. 30, FTX users’ email addresses, mailing addresses, account numbers, unique bankruptcy identifiers, account balances, phone numbers and other claim details were all reportedly breached in a cybersecurity incident that FTX revealed on Aug. 24. Previously, FTX wrote that Kroll “experienced a cybersecurity incident that compromised non-sensitive customer data of certain claimants in the pending bankruptcy case."
Kroll Data Leak Urgent
Kroll email (25 Aug) saying that name, address, email address, and the balance in FTX account was leaked
On Kroll's Q&A they state the information leaked is the above +
FTX account no., Unique ID and Phone numbers
— Sunil (FTX Creditor Champion) (@sunil_trades) August 30, 2023
Immediately after the incident, FTX said account passwords were not maintained by Kroll and that the firm’s own systems, along with its digital assets, were not affected. A day later, the bankrupt exchange said it would temporarily freeze the accounts of affected customers within the claims portal.
According to the report, Kroll has since “contained and remediated” the incident. However, it warned that users should remain on “high alert” for "fraud and scam” attempts that appear legitimate via the stolen data. Shortly after the breach, multiple users began reporting phishing emails disguised as being from Kroll.
New rounds of phishing attacks already underway for the poor users of FTX, BlockFi, Genesis, as a result of the Kroll data leak, which seems to be a result of a SIM swap on an employee.♂️
FTX had over 1 million users at the time of its bankruptcy filing last November. On Nov. 12, 2022, just one day after its bankruptcy announcement, FTX was hacked for nearly $400 million in an alleged inside job, sparking an investigation by the U.S. Department of Justice. The bankruptcy proceeding has come under fire for its length and cost, with over $32.5 million spent on legal fees in February alone.
Cointelegraph contacted Kroll for comments but did not receive a response in time for publication.
Vietnam is currently among the top countries in the world in terms of crypto adoption.
Over three-quarters of Vietnamese crypto holders make investment decisions through friends’ referrals.
That’s according to an Aug. 30 report by Vietnamese venture capital firms Kyros Ventures and Coin68, alongside Animoca Brands. In the 3,300-participant survey, 75.5% of participants admitted being “influenced by recommendations or referrals” regarding crypto investing. The amount is 2.5 times higher than reported in the United States.
Self-study, community groups and media news were the biggest sources of information for Vietnamese crypto investors, with nearly one in two electing such methods.
The "Vietnam Cryptocurrency Market Report" for the first half of 2023 also found that 70% of respondents believed the bear market was already over or nearing its end. Meanwhile, 75% of respondents desired more regulatory intervention in the crypto sector.
As per Chainalysis, Vietnam is currently the top country in the world in terms of crypto adoption and second in decentralized finance (DeFi), with over 19% of adults owning digital assets. Despite this, only nine Vietnamese educational institutions provide blockchain courses, and only eight blockchain infrastructure projects are present within the Southeast Asian country.
Vietnamese crypto users value the self-custodial nature of DEXs alongside the liquidity on centralized exchanges. Source: Kyros
Nearly 90% of survey respondents engaged in DeFi activities, compared with 70.2% for GameFi, 73.7% for nonfungible tokens, 91% for centralized finance and 54.9% for SocialFi. Participants remain equally distributed between their preference for centralized exchanges compared to decentralized exchanges. Researchers summarized:
“The local tech development and trends also change rapidly in line with the global climate. Indeed, you might recognize there were over a hundred GameFi projects in Vietnam before, and now it is time for the 'Web3 builder’ wave, especially since GM Vietnam [Vietnam Blockchain Week] 2023."
The Giving Block matched more than $68,000 in crypto and fiat donations to raise more than $136,000 for a project aimed at assisting efforts following the fires in Maui.
Relief efforts are still underway on the Hawaiian island of Maui following a series of wildfires severely damaging major areas, including Lahaina.
All Hands and Hearts, a disaster relief organization, has been collecting cryptocurrency and fiat donations to assist local Maui residents in the wake of the fires, which took the lives of more than 100 people and destroyed homes and businesses. Government officials have reported that the cost to rebuild may be more than $5.5 billion.
“Cryptocurrency donations as any other type of donations are helping to provide essential support after the devastating wildfires,” said Olga Ruggiero, chief of organizational integration and events at All Hands and Hearts. “The crypto industry continues to band together with communities around the world in need.”
We are participating in @TheGivingBlock's Maui Emergency Response Fund to support survivors of the wildfires in Hawaii.
Ruggiero reported that the organization had received more than $125 million in crypto through The Giving Block, a charity platform that facilitates digital asset donations in Bitcoin (BTC), Ether (ETH) and other cryptocurrencies. At the time of publication, the Giving Block had matched more than $68,000 in crypto and fiat donations to raise more than $136,000 for the Maui project.
“All Hands and Hearts and other disaster relief organizations have evolved their donation strategies over the years by embracing technology and utilizing different types of digital platforms,” said Ruggiero. “These changes have improved fundraising efficiency and effectiveness, enabling organizations to provide crucial aid during disasters.”
The fires, which reports suggest may have been caused by downed power lines on Aug. 8, have devastated the island of more than 160,000 residents. In addition to donations through All Hands and Hearts, the governments of Japan and South Korea each pledged $2 million in aid to support relief efforts.
Many organizations have turned to cryptocurrency as a solution to get funds into areas affected by natural and man-made disasters. In Ukraine, where residents have faced Russian military attacks since 2022, the government received more than $70 million in crypto for military equipment and humanitarian assistance as of February.
Today, Bloomberg ETF analysts Eric Balchunas and James Seyffart raised their odds of a spot Bitcoin ETF approval by the SEC to 75% by the end of this year, and 95% by the end of 2024.
"The chances of the SEC approving spot Bitcoin ETFs this year have risen from 75% from 65% following Grayscale's court win, we believe, while the odds by the end of 2024 reach 95%," said the analysts. "The judges unanimously repudiated the SECs arguments, and the agency will struggle to justify further denials as it faces deadlines, negative PR and HashDex's novel approach."
Yesterday, the DC Circuit court of appeals vacated the SEC's denial of Grayscale's $GBTC conversion into a spot Bitcoin ETF. While this did not result in GBTC automatically being converted to a spot Bitcoin ETF, this victory was a big step towards the approval of one in the future.
"The appeals court found the SEC to be arbitrary and capricious in its denial oder of GBTC's conversion into an ETF and vacated the decision," the analysts continued. "The written opinion from Judge Neomi Rao repudiated virtually every argument made by the SEC when comparing the Bitcoin spot and futures markets."
A SEC decision on multiple spot Bitcoin ETFs is due by the end of this week, with many believing the applications will be further delayed as these so close to the Grayscale court outcome that just happened. Although, Balchunas said he's "not sure timelines will matter as much in this situation," and that what is more likely is that eventually the SEC will give in and approve an imminent launch.
Leila Ismailova left Belarus — and an epic TV career — behind when she moved to America. Today, she’s at the forefront of digital fashion.
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.
I remember my audacity as a child, just sneaking into the buildings with newspapers and magazines it was called the House of Press, Ismailova recalls in an interview with Cointelegraph. I would handwrite my stories and sneak into the building because I didnt have a pass by making up stories that I was someones granddaughter, or by just going in when someone else entered. And I would find the doors that said editor or editor-in-chief, and I would just walk in and give them my articles. People smiled, and Im sure they felt I was naive, but I felt they also had some respect for me doing this work.
Her renegade news career led to television in a matter of years. She joined the countrys First National Channel at the age of 15, where she started on a show that covered news and culture for younger viewers.
My first audition went horribly, Ismailova says. I turned purple. I was thinking really fast, but they still wanted me to come for the second round.
Ismailova moved to the United States in 2016, setting off what she calls a season of migration for her family, including her brother, Bahram, and sister, Esmira. Bahram is a serial tech entrepreneur whose inventions include Peech App and Yope, among many others, while Esmira is an author whose published works include On the Shores of Bosphorus. (You wont find it in English yet, so dont spend too much time scouring Amazon.)
Leila Ismailova hosting the International Music Festival Slavic Bazaar in Vitebsk, Belarus, 2014. Source: Screenshot
Ismailovas and her siblings success came despite hardship. Their father died when they were children (Bahram was just 1), fighting for Azerbaijan in the countrys war with Armenia over the Nagorno-Karabakh region.
It happened very abruptly, Ismailova says. Of course, no one planned for it, so we went very fast from being a well-off family living in the capital of Baku to being a very scared family. We were pretty much on our own in a country that was going through the war with Armenia and, on top of that, separating from the Soviet Union. It was a very harsh time for everybody.
Ismailova says that experience inspired her to launch a charity during her broadcast career that offered mentoring for orphans, an activity she would like to resume in the future.
It seemed like these girls, even though the government provided very simple basics for them to start life, didnt have parental guidance, Ismailova recalls. It seemed like a lot of orphan girls were insecure because no one told them they were beautiful. Our goal was to create that guidance and to give them a confidence boost. […] For me, it was very important to do, and I was so lucky that I had a chance and a bit of influence. Right now, I miss it very much.
Today, shes a Web3 veteran after spending three years at Artisant, a digital fashion brand she co-founded inspired, in part, by her career in journalism. As a child, I didnt have access to a lot of beautiful dresses, Ismailova says. But I always appreciated the elegant and beautiful part of fashion, and when I watched TV, I always saw TV hosts and red carpets. It always looked stunning.
Ismailova left Artisant in July to launch a new chapter of her career as a consultant for digital-savvy fashion brands. Im sort of coming back to reality, Ismailova explains. Artisant was a digital fashion brand, but there was no physical product.
1. You moved from Belarus, where you were a TV journalist, to the United States. Whats the story behind that?
Im the only one from my family who moved, at first. I opened the season of migration for my family, as right after I moved, my sister moved, and then my brother. He didnt just move he ran away in August 2020, right after the Belarusian presidential election, when they started hunting people down. He had to run. His two co-founders were arrested.
Leila Ismailova with co-host Denis Kuryan in 2014. Source: Screenshot
My personal story is that I was a pretty successful TV host back home, I started when I was 15. I wanted to be a TV host because I wanted to wear beautiful dresses. I was very happy. It was my dream job! I started working early, and I think I was very hungry for success. I got all the national awards I dreamed of at a very young age, hosted all the shows I wanted to, and reached the professional ceiling back home.
2. What got you into crypto?
Well, my first stop in the United States was California this was before I moved to Miami. I got into graduate school for a masters program at USC Annenberg. (To be honest, Im still struggling to connect to American society.) Ive always been a nerd, and school seemed like a safe environment to connect to people. I started learning about entrepreneurship during the first wave of crypto in 2017, and then I invested in my first crypto and lost it. I bought Litecoin at $250. But I started working in crypto only in 2020.
3. What brought you to Miami?
I felt very limited in Los Angeles with the COVID-19 restrictions, and very isolated. I couldnt even walk my dog because they closed the parks. So, I got into digital fashion. It got me very curious about how something that didnt exist could make someone feel so good. That was when I met my Artisant co-founder, Regina [Turbina], in 2020. We were talking, and I started helping with little things. In 2021, I joined Artisant full-time.
Things were flowing, so I quit my job and took a leap of faith which brought me to Miami. And since I joined crypto, never have I met so many bright, prominent people with open minds. Everyone has been very welcoming, even though I knew far less in the beginning than I know now. People were willing to spend hours on the phone with me, sharing knowledge. I think the welcoming environment encouraged me to stay.
4. How do you see digital fashion evolving over the next five years?
Looking at the last bull run, I think it was awesome, but its over. We have this romantic notion that were all moving to the metaverse, and our avatars will all need clothes someday. I want to see technology become a tool that makes people more well-rounded, sustainable wholesome.
We have this vicious circle in the Western world of buying goods we dont need. Brands manipulate us into buying things. Consequently, we need to produce more goods, and we have this vicious circle of overproduction and overconsumption. We have a situation where fashion, the most beautiful business in the world, is responsible for 10% of carbon emissions.
We have a huge problem at hand, and I see digital fashion and technology as a possible solution. Were moving from the notion of building digital clothes for the metaverse to looking at how digital fashion can be useful right now. Look at Dior and their B33 sneaker collection with NFC chips built into the sole. Its an amazing technology that allows you to link them to digital assets. So, this is a very good way for brands to solve the problem of counterfeit products.
5. You recently left Artisant. Where are you going next?
Im starting consulting jobs, and I want to start writing more. For now, I want to focus on companies that deal in digital fashion. Companies that provide digital fashion services as an agency. I have a brand that wants me to consult their team, and they do an amazing clothing line that has augmented reality storytelling built into it. Im sort of coming back to reality. Artisant was a digital fashion brand but there was no physical product.
Seeing Artisant grow not just in numbers but in real people who defined Artisant as their community meant the whole world to me. But I came to a point where I gave everything I could to the project. Technology has a huge mission in reforming the world of fashion, and I want to contribute. While I am still pondering my next big professional adventure, I know it will be fun and will serve humanity.
6. Whats your life like outside of crypto?
I love having a balanced life. I have a dog. (Thats a hobby, right?) I play chess. For me, chess is a very important game that helps me a lot in business and in analyzing situations. I also like sports. For me, its very important to keep moving. Yoga has been part of my life for quite some time. Since I live in Miami, I do things like paddleboarding and kite surfing. And I take dance classes. That was one of my first dreams, actually to become a dancer.
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Along with longshot Democratic hopeful Robert F. Kennedy Jr., Francis Suarez was one of the few openly crypto-friendly candidates running in 2024.
Miami Mayor Francis Suarez, one of the few cryptocurrency-friendly candidates running for president of the United States in 2024, has announced he will be suspending his campaign.
In an Aug. 29 announcement on X (formerly Twitter), Suarez said that while running for U.S. president had been “one of the greatest honors of [his] life,” he made the decision to end his campaign and suggested he would support “a strong nominee” from the Republican Party. The Miami mayor announced in June he intended to seek the Republican nomination for U.S. president in the 2024 election, but he did not qualify for the first party debate on Aug. 23.
Running for President of the United States has been one of the greatest honors of my life. This country has given so much to my family and me. The prospect of giving back at the highest levels of public service is a motivator if not a calling. Throughout this process, I have met…
As mayor of Miami, Suarez made headlines in 2021 after announcing he would accept some of his paychecks in Bitcoin (BTC) and supporting the MiamiCoin (MIA) token project. Along with longshot Democratic hopeful Robert F. Kennedy Jr., the Miami mayor was one of the few openly crypto-friendly candidates running in 2024.
According to many recent polls, Florida Gov. Ron DeSantis trails behind former President Donald Trump for the Republican nomination for president. Trump did not attend the first party debate and faces both state and federal criminal charges related to his alleged role in attempting to overturn the results of the 2020 presidential election, which he lost to current U.S. President Joe Biden.
The 2024 elections in the U.S. could change the way the government handles digital asset legislation. Democrats currently hold a slim majority in the Senate, but 34 seats out of 100 will be up for grabs in the next election. Members of the Republican Party have a majority of seats in the House of Representatives, but the fate of all 435 will be decided in November 2024.
The SEC may have a limited window to appeal the court decision, while Grayscale could move forward with an amended application for its spot Bitcoin exchange-traded fund.
A federal judge has overturned the United States Securities and Exchange Commission’s decision to deny an exchange-traded fund (ETF) offering from Grayscale Investments through its Bitcoin Trust, but many experts have pointed out the court ruling will not automatically lead to the first spot Bitcoin ETF in the country.
In an Aug. 29 decision with the U.S. Court of Appeals for the District of Columbia Circuit, Judge Neomi Rao supported Grayscale’s position that its proposed Bitcoin (BTC) ETF was “materially similar” to Bitcoin futures exchange-traded products already approved by the Securities and Exchange Commission (SEC) for trading. The court largely ruled that the SEC’s justification of denying Grayscale’s Bitcoin ETF on the grounds it was not “designed to prevent fraudulent and manipulative acts and practices” was insufficient, and the matter will return to the commission for review.
THIS JUST IN: The D.C. Circuit ruled 3-0 in favor of Grayscale and $GBTC. This is a monumental step forward for all who have been advocating for Bitcoin exposure through the added protections of the ETF wrapper. Read the decision: https://t.co/ulAtcsad2Gpic.twitter.com/BNZABvM7tw
To date, the SEC has denied all spot crypto ETF offerings in the U.S., though many applications are currently being reviewed, including those from BlackRock, ARK Invest, Bitwise Asset Management, VanEck, WisdomTree, Invesco and Galaxy Digital, Fidelity, and Valkyrie. The commission has the means to keep delaying a decision or otherwise pushing the final deadline for approval on the majority of the aforementioned applications until March 2024.
At the time of publication, the SEC had not publicly commented on the appeals court decision but reportedly said it would be reviewing the case to determine its next steps. The commission will likely have the opportunity to appeal the decision, but many experts have claimed that the initial Grayscale victory could pave the way for eventual approval.
“Despite the inevitable SEC appeal, to our mind there is no doubt now, spot BTC ETFs are coming to the U.S.,” said Tim Bevan, CEO at ETC Group. “We don’t believe the SEC will act as kingmaker and the most likely outcome is a block approval of applications that meet requirements, probably in Q1 ’24.”
Lolli CEO and co-founder Alex Adelman said the appeals court ruling would “put new pressure on the SEC” in its justification for rejecting spot Bitcoin ETF applications. He added the BTC price rally following the news could be interpreted as a “vote of confidence” for spot investment vehicles linked to Bitcoin:
“Now is the time for the U.S. to embrace innovation by making bitcoin available to investors through exchange-based products or risk falling behind global powers that are moving faster to claim this advantage.”
A spokesperson for the Crypto Council for Innovation (CCI) told Cointelegraph the ruling opened the door to a wider range of investors looking to offer a spot BTC vehicle in the United States. According to the CCI, “spot bitcoins ETFs are now closer to a potential launch.”
Some have asked whether they could revoke the bitcoin futures ETFs, highly unlikely in our view, esp given their recent openness to Ether futures ETFs. In the end, I know it and you know it and even animals know it- the best move is to just approve the damn things already. https://t.co/fZCOIur4of
The next steps for either Grayscale moving forward with its application or the SEC appealing the decision are unclear. The asset manager could refile with the SEC, aiming to make the spot investment vehicle application more like that of a Bitcoin futures-linked ETF. Experts are reporting the SEC also has the option of filing for an "en banc" hearing in which all judges on the D.C. circuit — rather than the three which ruled on the Grayscale appeal — would hear the matter.
Circle announced that a Base version of its USDC stablecoin would be available soon, eventually eliminating the need for the USDbC bridged version.
Circle’s United States dollar stablecoin, USDC, will launch natively on the Base network “next week,” according to an Aug. 29 social media post from CEO Jeremy Allaire. The new version will replace the current US Dollar Base Coin (USDbC) that most users rely on as a substitute.
Coinbase’s Base network launched on Aug. 9. At the time, no native version of USDC existed on the network. Users could not deposit cash into a Circle account and receive equivalent USDC on Base. To solve this problem, the Base team allowed users to bridge USDC from Ethereum via an official bridge app. The token issued by the bridge is called “USDbC,” and is backed by native USDC locked on the Ethereum network.
The Aug. 29 announcement states that Circle will soon begin issuing USDC on Base, eventually doing away with the need for a bridged coin backed by the Ethereum version.
According to an accompanying blog post, the contract for the new token has already been deployed to Base. On launch day, the team will explain how the current USDbC can be redeemed for native USDC. The team will also “work with ecosystem apps” to allow liquidity providers to “smoothly transition” to providing liquidity for the new coin, and the current Base bridge that issues USDbC will continue to operate normally for the time being.
The Circle team has not announced a specific date for the coin’s official launch, as Allaire stated only that it will happen sometime “next week.”
Rhode Island has officially approved a license requested by Twitter Payments LLC, X's payment branch, to be able to store, transfer, and exchange Bitcoin and other digital assets on behalf of its users.
The currency transmitter license is required for companies who want to perform these activities related to Bitcoin and crypto on behalf of its users. This license also includes related service providers, such as wallets, payment processors, and exchanges.
Elon Musk has previously stated that he wants to turn X into the "everything app," sharing that the platform "will add comprehensive communications and the ability to conduct your entire financial world."
Bitcoin price is booming as investors’ excitement over the Grayscale victory over the SEC fuels dreams of a new bull market.
Bitcoin (BTC) price is up today, rising 5% with a sharp upward candle that sent the price to a 2-week high over $28,000 after U.S. Court of Appeals Circuit Judge Neomi Rao sided with Grayscale Bitcoin Trust (GBTC) in its case against the U.S. Securities and Exchange Commission (SEC).
The decision amplifies the recent growing institutional interest in Bitcoin from companies like BlackRock and Fidelity Investments, both of which are scheduled to hear answers about their BTC spot ETFs on Sept. 2.
Bitcoin price began the Aug. 29 rally after Judge Rao vacated the SEC’s order to deny the GBTC spot ETF over “fraud” concerns. The decision comes after the company took the SEC to the appeals court to argue for the soundness of Bitcoin futures on June 30, 2022. While the order does not approve the spot ETF, Judge Rao adjudged,
“Grayscale’s petition for review be granted and the Commission’s order be vacated, in accordance with the opinion of the court”
The judge vacating the SEC’s Grayscale ETF denial has also provided a boost to the Grayscale ETF. The discount is approaching 2023 highs under 25%.
Grayscale holdings. Coinglass
To date, the SEC has refused to approve a spot Bitcoin ETF, despite numerous applicants including BlackRock, Fidelity, Cathie Wood’s ARK and 21Shares which has filed for approval three times.
BlackRock is the world’s largest asset manager with over $8.5 trillion in assets under management. The firm will also utilize Coinbase to custody the BTC in the trust according to the filing with the SEC. Starting in Sept. the SEC has a host of ETF decisions to approve, deny or delay.
ETF tracker. Source: Bloomberg
Lower exchange BTC supply
Coinciding with Bitcoin price gains on Aug. 29, the BTC supply on exchanges is dropping to the lowest level since January 2018.
BTC balance on exchanges. Source: Glassnode
The market perceives coins leaving crypto exchanges as a bullish signal, given traders withdraw their BTC typically when they want to hold it in self-custody long-term.
Interestingly, on-chain data shows that exchanges have been shedding Bitcoin since May 18, 2023. In other words, large swaths of Bitcoin investors are positioning for a BTC price rally even amidst the elongated bear market trend of 2023.
Bitcoin exchange net position change. Source: Glassnode
Liquidations could be sending Bitcoin price higher
With Bitcoin continuing to leave exchanges, liquidations have less cushion causing volatility. In the past 24-hours alone, over $46.5 million BTC shorts have been liquidated with over $100 million in shorts being liquidated across the crypto market.
Bitcoin liquidation heat map. Source: Coinglass
Despite the short-seller losing streak, 48% of the futures market remains short on Bitcoin price. With such a high ratio remaining skewed short a potential opportunity for a short-squeeze could happen leading to greater Bitcoin price upside.
While Bitcoin price is showing some bullish momentum in the short-term after the Grayscale ruling and short liquidations, the Bitcoin Fear & Greed Index shows the market is still fearful, down over 13 points compared to the previous month.
Bitcoin Fear & Greed Index. Source: Alternative.me
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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.
The United States Internal Revenue Service has released proposed regulations on the sale and exchange of digital assets by brokers.
The United States Internal Revenue Service (IRS), which is responsible for tax collection in the United States, has released proposed regulations on the sale and exchange of digital assets by brokers. Under the rules, brokers would be required to use a new form to simplify tax filings and cut down on tax cheating. According to the U.S. Treasury, the regulations bring digital asset reporting into line with reporting on other types of assets.
The proposed rules would go into effect in 2026 to reflect sales and exchanges carried out in 2025. Written comments on the proposal are being accepted through Oct. 30, with at least one public hearing to be held after that date.
Several prominent crypto commentators have criticized the new crypto tax reporting rules. Kristin Smith, the CEO of the Blockchain Association, highlighted the difference between the crypto ecosystem and traditional finance. DeFi Education Fund CEO Miller Whitehouse-Levine called the rules “confusing, self-refuting, and misguided.” Messari CEO Ryan Selkis stated that President Joe Biden’s reelection would mean no future for the crypto industry in the country. Representative Patrick McHenry, the House Financial Services Committee chairman, called the proposal “another front in the Biden Administration’s ongoing attack on the digital asset ecosystem.”
Gemini files brief to dismiss SEC lawsuit
Cryptocurrency exchange Gemini has filed a reply brief as part of its efforts to dismiss the lawsuit it is facing from the U.S. Securities and Exchange Commission (SEC). The company argues that the SEC has failed to make a clear claim. It further argued that the court shouldn’t tackle the “convoluted analyses” presented by the SEC, and the agency should pose straightforward questions to determine whether it qualifies as a security. According to the SEC, Gemini Earn — a service enabling customers to lend crypto assets like Bitcoin to Genesis — breached securities regulations by offering unregistered securities.
No copyright for AI-generated art, U.S. court rules
U.S. District Judge Beryl Howell upheld the stance of the U.S. Copyright Office that artworks created solely by artificial intelligence (AI) are not eligible for copyright protection. The verdict came amid growing worries about the possibility of generative AI replacing human artists and writers, as well as ongoing legal discussions about AI firms using copyrighted content for training. Multiple lawsuits in California have been filed by artists claiming copyright violations, which might lead to AI companies needing to disassemble their language models.
As the United Kingdom prepares for a ban on finance-related cold calls, His Majesty’s Treasury has issued a consultation paper calling for evidence to gauge the full impact on businesses and the costs associated with introducing and implementing the ban. Intending to impose a blanket ban on financial cold calls, the Treasury put forth 19 questions to stakeholders to ensure maximum impact on scammers and minimum effect on businesses that often rely on cold calling prospects. The consultation closes on Sept. 27, 2023.
Lawyers questioned a judge’s decision to revoke bail on Aug. 11, claiming SBF speaking to a journalist about Caroline Ellison was “protected First Amendment activity.”
Lawyers representing Sam Bankman-Fried, or SBF, have filed an appeal claiming the former FTX CEO’s bail was revoked “in retaliation for him exercising his First Amendment rights” and not witness tampering as alleged.
In an Aug. 25 filing in the United States Court of Appeals for the Second Circuit, SBF’s legal team filed a motion seeking to have him released before his October trial. According to his lawyers, Judge Lewis Kaplan revoking SBF’s bail on Aug. 11 was “improper,” claiming his actions of speaking to the press and releasing information about former Alameda Research CEO Caroline Ellison were part of his First Amendment rights.
According to the appeal, SBF’s lawyers questioned the manner of “intimidation or threats” against Ellison by the former FTX CEO speaking to reporters at The New York Times, which led to some of her private journals being published in an article. The New York Times submitted its own filing in the case, claiming the public had a “legitimate interest” in the information and citing similar First Amendment concerns.
“Under prevailing precedent, Mr. Bankman-Fried’s communications to the Times reporter were protected First Amendment activity,” said the Aug. 25 appeal. “Neither the Government nor the trial court have cited any case law, and the defense is aware of none, where a defendant’s provision of newsworthy information to a journalist has ever been construed as witness tampering.”
SBF has denied he was involved in witness tampering after prosecutors moved to revoke his bail following his alleged sharing of Caroline Ellison’s diary with The New York Times. https://t.co/IvcKnimcyt
The appeal built upon a filing in the U.S. District Court for the Southern District of New York, which claimed Bankman-Fried’s access to discovery materials before his criminal trial was inadequate due to his confinement to the Metropolitan Detention Center in Brooklyn. SBF has roughly five weeks until his first trial is scheduled to begin on Oct. 3, and the Justice Department has produced millions of pages of discovery materials ahead of the court date.
Kaplan had already approved provisions allowing SBF to have access to a courthouse cell block with his attorneys, provided they gave 48 hours’ notice. However, Bankman-Fried’s lawyers have called these accommodations inadequate, given the limited time before trial and the amount of information to review.
In October, Bankman-Fried will face seven criminal counts related to alleged fraud and misuse of customer funds at FTX and Alameda. There will be another trial scheduled for March 2024 in which the former CEO faces five criminal counts. He has pleaded not guilty to all charges.
Evergrande’s ongoing bankruptcy saga has significant macroeconomic implications — including for the global cryptocurrency market.
As Evergrande Group, China’s heavily indebted property developer, files for bankruptcy in the United States, many are concerned about how this will impact the global economy and cryptocurrencies. The situation represents one of the largest debt faultings in the world and will have sizable ramifications.
However, it shouldn’t come as too much of a surprise that China’s real estate agent running out of money to cover debt is causing worry within the crypto space. While many fear Evergrande’s collapse will cause a knock-on effect for other tokens and coins already vulnerable in financial markets, the increased crypto volatility could be the silver lining for investors.
Market uncertainty and volatility
The collapse of a significant financial player like Evergrande could generate uncertainty and volatility across all asset classes, including cryptocurrencies. There’s no denying the crypto market is volatile. In other words, even the slightest hit to the status quo can cause the price of even the biggest cryptocurrencies to go down the dumps or through the roof.
This is even the case for Bitcoin (BTC). Cryptocurrencies are falling as concerns around China result in risk off-sentiment. Leading analysts have reported that the downturn in the crypto market is no big deal. However, investors are still in a hurry to liquidate their crypto funds. This is likely due to the fear of China’s crisis disrupting the biggest worldwide financial balance.
Evergrande, one of China’s real estate giants, just filed Chapter 15 bankruptcy.
Meanwhile, China’s HY real estate index is down a massive 82% in just over 2 years.
This puts the index back down to 2008-levels.
All while China just “unexpectedly” cut interest rates.
Investors may either flee to cryptocurrencies as a hedge against traditional markets or sell off crypto assets to cover losses elsewhere. Additionally, volatility is being harnessed by professional traders to book profits by selling during recovery and purchasing the dip. Bitcoin miners, then, are holding on to their funds even as it becomes increasingly challenging to mine for the cryptocurrency.
Liquidity crunch
If Evergrande’s collapse results in tightened credit markets, liquidity could become scarce. Cryptocurrency may be liquidated en masse to cover losses or meet margin calls, causing a temporary price drop. Tether (USDT) accounts for around half of the market capitalization of stablecoins and is a significant component of crypto market liquidity.
Tether is quite active in Asia, and there was some concern that some of USDT’s backing would be Evergrande commercial paper. Therefore, the collapse in Evergrande would be poor news for Tether and the market as a whole. While Tether issued a statement recently stating it does not hold any Evergrande paper, that doesn’t mean it is entirely free from Evergrande-related risks. Ultimately, this situation could cause a broader liquidity crisis within the industry.
Influence on Chinese cryptocurrency activity
There’s no denying the Evergrande collapse is occurring at a delicate time for China’s economy. The fallout from the collapse has affected banks, smaller suppliers, and even worldwide markets exposed to Evergrande’s debt. Considering that Evergrande is a Chinese company, its collapse could have specific implications for crypto markets in China.
These implications come from concerns about Tether’s holdings and that crypto is vulnerable to downturns in the broader market. Given China’s complex relationship with cryptocurrencies, any financial instability could lead to regulatory shifts that impact crypto adoption or trading within the country. It’s clear Evergrande’s challenges are part of a much larger set of issues within the sale of Chinese equities in global markets.
Macroeconomic consideration
While the collapse of Evergrande may seem as though it is about nothing more than the company, there is more to it. China is one of the world’s leading economies, and Evergrande is one of the largest companies within the Chinese economy.
Therefore, the fallout has presented significant macroeconomic implications. If a broader economic downturn is yet to come, cryptocurrencies could benefit as a “safe haven” asset. Due to their limited supply and lack of dependence on national governments, crypto assets can be key in times of crisis.
Additionally, cryptocurrency prices seem to be less affected by macroeconomic elements than prices of more traditional financial assets. Paradoxically, financial crises often lead to increased innovation and adoption of alternative financial systems.
In other words, in times of desperation, leaders and developers are encouraged to engage in outside-the-box thinking and devise effective and unique solutions. Bitcoin, for example, was born after a crisis, and the crypto market was developed as an alternative to the traditional economy.
It’s difficult to say whether events that occur in the broader economy will truly threaten crypto markets. A global economic slowdown ideally shouldn’t materially impact the price of cryptocurrencies, and crypto should be considered a speculative asset.
Therefore, Evergrande’s collapse could be an opportunity for the crypto market. The collapse of these traditional structures and encouraging a separation between the traditional and crypto economies could accelerate interest in decentralized finance solutions.
Daniele Servadei Is the 20-year-old founder and CEO of Sellix, an Italian e-commerce platform that has processed more than $75 million in transactions for more than 2.3 million customers worldwide. He's also attending the University of Parma for a degree in computer science.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
