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- Crypto Alpha, Week 26 2024
Crypto Alpha, Week 26 2024
All things Crypto, Web3 and Blockchain to keep you updated
TL;DR
Dormant Bitcoin Wallet Awakens After 14 Years
Coinbase Sues SEC and FDIC for Regulatory Overreach
PancakeSwap Launches AI Prediction Market on Arbitrum
Vitalik Buterin Backs MegaETH in $20M round
VanEck Files for Solana ETF in the US
Zeta Markets Launches $ZEX Token on Solana
Binance Supports Token Merge into ASI Alliance
Andromeda & Stargaze Forge NFT Innovation
Chainlink Data Streams Now Live on Avalanche
Ava Labs Empowers K-Pop IP Management with Blockchain
Bitcoin Brings Aid to Gaza Through Taxi Driver's Efforts
Crypto Ignored in Biden-Trump Debate
And much more!
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Bitcoin Highlights of the Week
A Bitcoin wallet from the Satoshi era, inactive since 2010, recently transferred 50 BTC to Binance. This wallet, belonging to a miner who earned the BTC as a reward in July 2010 when Bitcoin was valued at $0.05, signifies early mining activity when the reward per block was 50 BTC. The miner’s initial $25 in BTC is now worth approximately $3 million, reflecting Bitcoin's dramatic price increase over the years.
The transaction underscores the rarity of mining a single block in 2010, given today's high network hashrates and increased mining difficulty. The transfer of Bitcoin to centralized exchanges like Binance is often seen as a bearish signal, as it usually implies selling. Recently, several dormant wallets from the early Bitcoin days have become active, transferring or selling their holdings.
The German government has sold 900 Bitcoin, worth over $54 million, through transactions to Coinbase and Kraken, among others. This move, part of ongoing interactions with various wallets, including an unknown entity "139Po," has raised concerns about increased selling pressure on Bitcoin.
Despite these sales, the government still holds a substantial 46,359 BTC, potentially influencing market dynamics, particularly amid Bitcoin's current downtrend nearing the $60,000 mark. Analysts suggest these actions could further impact Bitcoin's price, which has already seen an 11% decline this month.
Coinbase has sued the SEC and FDIC, accusing them of denying information requests and coordinating efforts to restrict the crypto industry's access to banking services. Filed on June 27th in Washington D.C., the lawsuits claim that the agencies failed to comply with Coinbase's Freedom of Information Act (FOIA) requests, which sought to reveal regulatory attempts to limit banking for crypto firms.
Coinbase asserts that regulators are deliberately trying to sever Bitcoin and crypto companies from vital financial lifelines, comparing this to the Obama-era "Operation Choke Point." The exchange contends that the SEC and FDIC are exceeding their mandates and violating transparency laws, aiming to expose this alleged regulatory overreach.
The U.S. government transferred 3,940 Bitcoin to Coinbase Prime on June 26, according to Arkham Intelligence. These Bitcoin were seized from convicted drug dealer Banmeet Singh during his January 2024 trial. Singh, arrested in London in 2019 and extradited to the U.S. in 2023, ran a narcotics network from 2012 to 2017, leading to the surrender of over 8,100 Bitcoin, valued at $150 million.
The transfer has sparked fears of market sell-offs, compounded by similar actions from other governments and the Mt. Gox bankruptcy estate. The U.S. currently holds around 214,000 Bitcoin, worth about $13 billion.
Mt. Gox, the defunct cryptocurrency exchange that lost 850,000 Bitcoin in 2014, will start repaying users in Bitcoin and Bitcoin Cash in July 2024. The exchange’s rehabilitation trustee announced that repayments will be processed in collaboration with cryptocurrency exchanges, asking users for patience as the order of payments will depend on each exchange.
Approximately 127,000 creditors are owed over $9.4 billion in Bitcoin. This long-awaited restitution follows the transfer of 141,686 BTC worth $9.62 billion in May as part of the repayment process. Creditors have been waiting over a decade to recover their funds following Mt. Gox’s collapse.
Daily Alphas of the Week
Ethereum Highlights of the Week
PancakeSwap has launched an AI-powered prediction market on Arbitrum, partnering with Allora Network to leverage machine-learning data for accurate Ether price forecasts. This new feature allows users to predict ETH price movements with AI-driven data, boasting 95–99% confidence in its accuracy for over 400 million assets.
The prediction market's payout process is guided by AI performance, adjusting as users make predictions. The AI issues predictions only after rounds are locked to prevent manipulation. PancakeSwap believes this new feature will expand to other markets, potentially enhancing liquidity and volatility management on the platform.
VanEck's recent filing for an Ethereum ETF suggests approval could be imminent, following a pattern seen with their Bitcoin ETF launch just seven days after a similar filing. Bloomberg's Eric Balchunas views this timing optimistically, pointing to a potential launch date around July 2nd. Unlike the uncertainty surrounding Bitcoin ETFs earlier this year, Ethereum ETFs are expected to move forward, with SEC chairman Gary Gensler indicating likely approval this summer.
Preparations by ETF sponsors like Bitwise and VanEck, including fee disclosures and promotional efforts, indicate readiness for the launch. Bullish investment theses, such as VanEck's projection of ETH reaching $22,000 by 2030, further highlight confidence in Ethereum's future as a financial asset.
The Blast network is set to distribute 17% of its total token supply in an airdrop starting June 26. Users who bridged assets like Ether or US Dollar Blast to the network and contributed to DApps will receive tokens. Notably, tokens allocated to top 1,000 wallet holders will vest linearly over six months, restricting immediate sales.
The Blur Foundation plans to distribute its share to traders and holders across multiple seasons, totaling 1% for Season 3 and additional reserves for future use. Despite some user concerns about vesting requirements, the airdrop marks a significant milestone for Blast, the fourth largest Ethereum layer-2 network by total value locked.
Ethereum co-founder Vitalik Buterin has invested in MegaETH, an Ethereum-compatible blockchain project aiming for speeds of up to 100,000 transactions per second (TPS) with minimal latency. MegaETH secured $20 million in seed funding from both institutional investors like Dragonfly Capital and individual backers dubbed "Mega Angels."
Led by founder Da Bing, MegaETH utilizes innovative technologies like in-memory computing and a new state trie design to optimize performance. The project has already established a functional devnet and launched initiatives like "0xMegaMafia" to support developers exploring decentralized applications.
Paradigm has introduced Reth 1.0, a new Ethereum client aimed at boosting network speed and stability. Developed over nearly two years and rigorously audited by Sigma Prime, Reth 1.0 emphasizes stability with zero recorded crashes since its beta phase. It enhances block-sealing processes to minimize delays in chain updates and optimizes resource management to prevent memory leaks, ensuring consistent performance across various hardware setups.
With enhanced Remote Procedure Call (RPC) throughput and reduced latency, Reth 1.0 aims to streamline transaction processing and data management for Ethereum users and node operators alike. Paradigm encourages industry players to adopt Reth 1.0 for Ethereum mainnet operations, emphasizing its security, reliability, and compatibility with multiple Ethereum-based chains.
Solana Highlights of the Week
VanEck has filed for a Solana ETF with the U.S. Securities and Exchange Commission, making it the first firm in the U.S. to do so. Announced by VanEck’s head of digital assets research, Matthew Sigel, the VanEck Solana Trust aims to leverage Solana’s decentralized nature and utility. The fund seeks to reflect Solana's cryptocurrency price performance, excluding operational expenses.
VanEck’s filing specifies that the ETF would be listed on the Cboe BZX Exchange if approved. Sigel emphasized that Solana’s native token, SOL, functions like digital commodities such as Bitcoin and Ether, used for transaction fees and services on its blockchain. The SEC's recent approval of spot Ether ETFs and its subsequent classification of ETH as a commodity set a supportive precedent for this filing.
Zeta Markets, a Solana-based decentralized exchange (DEX), is launching its native token $ZEX through a Token Generation Event (TGE). This event not only introduces $ZEX but also initiates an airdrop aimed at rewarding early participants and fostering sustained engagement within the protocol.
$ZEX will serve pivotal roles in governance, staking, and incentivizing liquidity on Zeta Markets, aiming to replicate centralized exchange (CEX) efficiency in decentralized finance (DeFi).Solana's scalability and low transaction costs make it an ideal platform for Zeta Markets, particularly for its focus on on-chain perpetual futures. These derivatives, which allow indefinite holding of positions, cater to traders seeking efficient and high-performance trading environments.
Wormhole, a cross-chain bridge protocol, has received a grant to integrate Worldcoin's World ID solution on the Solana blockchain. This will allow developers to easily verify user identities within Solana applications, enhancing security and streamlining user experience. The integration leverages Wormhole's Ethereum-Solana bridge to securely transfer World ID verification data between the two blockchains.
This collaboration offers significant benefits. Developers gain access to a robust identity verification tool, while users enjoy a more secure and standardized authentication process across different blockchains. Additionally, Worldcoin has implemented new privacy features like zero-knowledge proofs to address regulatory concerns and give users more control over their data.
Zeta Markets, a Solana-based decentralized exchange (DEX), launched its native ZEX token. To incentivize user participation, they distributed 10% of the total supply through an airdrop. Loyal traders received 8%, with an additional 2% for early stakers. The airdrop rewards users based on trading activity and staking duration.
ZEX plays a key role in Zeta's ecosystem, governing the platform, incentivizing participation, and facilitating staking. It will also be crucial for Zeta X, their upcoming DeFi L2 solution. This launch empowers the community and aligns stakeholder interests for long-term growth.
Solana introduced a new feature called Solana Actions and Blockchain Links (blinks). This allows websites, social media platforms, and even QR codes to initiate crypto transactions on the Solana blockchain. Users can click a link and perform actions like buying NFTs, tipping creators, or voting directly on the website, eliminating the need to switch to a separate crypto wallet app.
While initially launching with whitelisted partners, the system aims to make any website a potential starting point for interacting with the Solana blockchain. To ensure user safety, wallets will prompt users before connecting to unfamiliar sites, similar to connecting to decentralized applications (dApps).
Cosmos Highlights of the Week
Persistence DEX has integrated with Skip API, an interoperability platform, allowing its liquidity pools to be used for cross-chain swaps on ibc.fun, a DEX aggregator built on Skip. This offers several benefits:
More Trading Routes: Users on ibc.fun gain access to Persistence DEX liquidity, potentially improving swap rates.
Increased Volume for Persistence DEX: Persistence DEX benefits from "background trading" on ibc.fun, boosting its exposure and liquidity.
Higher Trading Fees: Increased volume translates to more fees for liquidity providers on Persistence DEX.
Community Benefit: A portion of trading fees goes to the Persistence Community Pool, funded by XPRT holders.
This integration enhances the usability of Persistence DEX and expands its reach within the growing interoperable DeFi landscape.
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