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Ethereum Insider Teases ‘The Revelation Of A Lifetime’

In a series of provocative posts on X (formerly Twitter), Ethereum co-founder Steven Nerayoff has teased what he describes as “the revelation of a lifetime,” hinting at seismic disclosures that could reshape the public’s understanding of ETH, its foundation, and the broader crypto landscape. Nerayoff’s statements, coupled with remarks from on-chain researcher TruthLabs (@BoringSleuth), suggest an impending release of information alleging widespread corruption linked to the Ethereum Foundation and its co-founders.

Ethereum Insider: “The Time Has Come”

Nerayoff, in a tantalizing announcement, promised a disclosure that would “change our lives” and “our perspective on the world,” implicating the Ethereum Foundation in what he suggests are significant and previously undisclosed illicit activities.

“READY FOR THE REVELATION OF A LIFETIME? The time has come! The truth has been revealed and it is not what we expected when we first embarked on this journey,” Nerayoff posted, elevating expectations and setting the stage for a major exposé. He hailed @BoringSleuth as a pivotal figure in uncovering what he describes as “massive corruption” tied to the Ethereum Foundation.

@BoringSleuth’s own comments added depth to the intrigue, stating, “I came across some information this week that was passed on to me, and I’ve now verified it. Within it, ties together so much of what is Broken in my Country, and most likely, the rest of the World.” This statement not only underscores the gravity of the findings but also hints at a systemic issue transcending national borders, rooted in blockchain’s transparency and immutable record-keeping capabilities.

Nerayoff further stirred the pot with allegations directly targeting the operations and ethical standing of the ETH Foundation. “The recent revelations surrounding the Ethereum Foundation and their alleged involvement in illicit activities are irrefutable and unbelievable,” he claimed, expressing frustration over the lack of wider media and governmental traction for these issues.

He drew parallels between the forthcoming disclosures and historical financial scandals, stating, “Just like SBF and Madoff, the truth will eventually come out, no matter how hard they try to hide it.” This comparison not only magnifies the anticipated impact of the revelations but also aligns them with some of the most consequential financial truth-tellings in recent history.

What “Went Wrong” With Ethereum

Nerayoff’s critique extends deeply into the operational shifts within Ethereum since its inception. In another post on X, he criticized the platform’s evolution away from its founding principles, as evidenced by a decade-old video of Vitalik Buterin, which he claims shows a stark contrast to current practices. “This 10-year-old video of Vitalik Buterin showcases a significant contrast between his early assertions about ETH and its current state,” Nerayoff remarked.

Firstly, Nerayoff addresses the contentious issue of on-chain data deletion. He asserts this practice is in direct contradiction to Ethereum’s decentralization ethos, suggesting it serves to obscure the ETH Foundation’s involvement in past controversies, including significant security breaches like the DAO and Gatecoin hacks.

Nerayoff also raises alarms over the increasing transaction fees on Ethereum, which cast doubt on the blockchain’s sustainability and accessibility. He suggests these rising costs disproportionately benefit a small group of individuals, undermining the egalitarian premise of the blockchain.

Furthermore, Nerayoff critiques the lack of transformative decentralized applications (DApps), which were anticipated to be life-changing. He implies that the initial vision for Ethereum’s utility and impact has been sidelined, with the platform’s development and evolution seemingly prioritizing interests that do not align with those of the broader Ethereum community.

Another significant point of contention is the pre-mine controversy. Nerayoff highlights discrepancies in the initially promised minimal pre-mine volume, asserting that a larger than disclosed amount was acquired by a select few, including entities associated with the Chinese Communist Party (CCP). This, he argues, has led to trust issues within the Ethereum community and questions the platform’s commitment to decentralization.

Lastly, Nerayoff reiterates his stance on the fundamental nature of Ethereum as merely an open-source database, challenging the platform’s decentralized label. He points to the lack of response from Ethereum’s leadership to his criticisms as tacit acknowledgment of the issues he raises, particularly noting Vitalik Buterin’s choice of residence in a non-extradition country as indicative of the seriousness of these concerns.

Nerayoff’s bold claims culminate in a stark warning: “With all this evidence piling up and no answers in sight, it makes you think: At what point does this house of cards collapse? What does the future of Ethereum and crypto have in store for us?”

At press time, ETH traded at $3,471.

ETH price, 1-week chart | Source: ETHUSD on TradingView.com

Featured image created with DALL·E, chart from TradingView.com

Bitcoin Earns High Praise: Scaramucci Labels It As 21st Century’s ‘Berkshire Hathaway’

Renowned investor and founder of SkyBridge, Anthony Scaramucci, has once again expressed his firm belief in the transformative power of Bitcoin.

In a recent statement, Scaramucci emphasized that Bitcoin should not be merely compared to gold, but rather likened to Berkshire Hathaway, highlighting the cryptocurrency’s status as a “compounding machine for investors.”

Berkshire Hathaway is a renowned American multinational conglomerate holding company headquartered in Omaha, Nebraska. Led by Warren Buffett, it owns a diverse range of businesses and significant minority interests in public companies like Apple.

Berkshire Hathaway’s market capitalization exceeds $700 billion, making it one of the largest companies globally.

Scaramucci’s unwavering support for the leading cryptocurrency comes as no surprise, as he has consistently advocated for the adoption of the flagship cryptocurrency over the years.

Bitcoin: Outperformance Of Gold Demonstrates Unmatched Potential

When analyzing Bitcoin’s performance metrics, it becomes evident why Scaramucci holds such a positive outlook on the cryptocurrency. Over the past decade, while gold has managed to record a modest 30% gain when adjusted for inflation, the digital asset has soared by a staggering 3,700% since its inception.

This remarkable growth translates to annual returns of no less than 45%. These numbers highlight BTC’s unmatched potential and its ability to outperform traditional investment assets like gold.

Qatar’s Potential BTC Reserves Trigger Excitement In The Crypto Market

Meanwhile, in a recent tweet, Scaramucci – the former White House Director of Communications – hinted at the possibility of Qatar adding the king coin to its reserves, potentially becoming the first Middle Eastern country to do so. While there is no official confirmation regarding Qatar’s Bitcoin investments, the news has caused a stir within the crypto market.

Speculations surrounding Qatar’s interest in the crypto began to circulate in September 2023, when the Emir of Qatar, His Highness Tamim Bin Hamad, engaged in discussions about Bitcoin adoption and other investment prospects during his visit to El Salvador. The potential inclusion of Bitcoin in Qatar’s reserves further solidifies its status as a legitimate asset class.

Bitcoin’s Market Performance And Resistance Levels

As of the latest data, Bitcoin is currently exchanging hands at $63,459, representing a notable 21% surge over the past week. With a circulating supply of 20 million BTC, the cryptocurrency commands a staggering market capitalization exceeding $1.2 trillion.

BTCUSD trading at $63,459 on the 24-hour chart: TradingView.com

However, Bitcoin is currently facing resistance at its previous all-time high of $69,000, while $62,000 acts as its closest support level. The Relative Strength Index (RSI) on the weekly timeframe stands at an impressive 92.4, indicating robust momentum and potential for further price appreciation.

Scaramucci’s unwavering support for the alpha coin and his comparison of the cryptocurrency to Berkshire Hathaway underscore the transformative potential of digital assets. Bitcoin’s exceptional performance, as evidenced by its significant outperformance of gold, further solidifies its position as a viable investment option.

Featured image from Bloomberg via Getty Images, chart from TradingView

Crypto Scams Remain Persistent: Exit Scams And Hacks Cost Crypto Sector $160 million In February

The crypto industry is perpetually vulnerable to malicious activities, with hackers seemingly relentless in their pursuits. It’s been only two months into 2024 and crypto scams are already making their appearance. According to blockchain auditor CertiK, crypto hacks and scams led to over $160 million in losses in February alone

Although this figure saw a reduction from January losses, crypto losses from hacks, scams, and exploits have racked up quickly and are now at $343.5 million year-to-date.

Crypto Sector Loses $160 Million To Malicious Players

According to the latest update by Certik, the cryptocurrency world has already been hit hard by a series of sophisticated scams in 2024. The majority of February’s losses, about $101 million, came from exploits of vulnerabilities of crypto projects. Notably, Certik’s social media page on X noted various instances of exploits throughout the month. 

For example, on February 28, Certik noted that omnichain CDP protocol Seneca USD was exploited and the perpetrators stole at least $3 million worth of assets. In total, Seneca USD lost $6.46 million in February. 

The largest exploit, however, happened on South Korean blockchain game development platform PlayDapp. An attacker took advantage of the platform’s smart contract vulnerability and stole $32.35 million worth of cryptocurrency. Other large exploits occurred on Fixed Float, Jihoz.Run, and DuelBits, which suffered losses of $26 million, $9.7 million, and $4.66 million respectively. 

Certik noted that investors also lost $58.2 million to exit scams in February. This is when the developers of a crypto project suddenly disappear with investors’ funds after attracting huge sums of money. 

Total crypto market cap is currently at $2.262 trillion. Chart: TradingView.com

Hong Kong-based cryptocurrency exchange BitForex accounted for the majority of the exit scams in February. The exchange abruptly went offline following the mysterious withdrawal of $56.5 million from its hot wallets. RiskOnBlast, a gambling and exchange platform, also disappeared with $1.29 million worth of investor money. 

The industry also lost $138,000 to flash loans, a drastic reduction from the $15.3 million recorded in January. $6.4 million was returned, with the largest coming from the Seneca exploiter who returned 1,537 ETH worth $5.3 million to the project.

Can The Crypto Industry Be Truly Free From Scams?

Cryptocurrencies provide full anonymity to their users, but hacks and thefts are some of the drawbacks that come from the wider advantages of this anonymity. Despite various security measures being employed, attackers have upped their game and expanded their operations over the years. 

Recent reports, however, reveal that scams and exploits have reduced drastically in the past year. Particularly, a report disclosed that losses from crypto scams dropped from $39.6 billion in 2022 to $24.2 billion in 2023. 

Featured image from Pexels, chart from TradingView

Indonesia’s Crypto Evolution: Government Eyes Changes In Taxation Landscape

Indonesia’s crypto market faces a period of change and reassessment, as evidenced by falling tax revenue and planned regulatory shifts. While Bitcoin surged in value throughout 2023, the country’s crypto tax revenue plummeted by over 60% compared to the previous year, raising concerns about the effectiveness of the current tax regime.

Dual Taxation Burdening Crypto Activity

Implemented in May 2022, Indonesia’s dual tax system on crypto transactions has encountered criticism for potentially hindering market growth. This tax structure, initially established when digital currency was classified as a commodity, is now under review by the Ministry of Finance, led by Sri Mulyani.

Stakeholders, including the Commodity Futures Trading Supervisory Agency (Bappebti) and local exchanges, have urged the government to reconsider the existing tax framework. The Head of CoFTRA’s Market Development and Development Bureau, Tirta Karma Senjaya, emphasized the need for periodic tax reviews, highlighting the evolving nature of crypto and its potential for future revenue generation.

Local exchanges have expressed concerns that the current high tax rates discourage user activity and drive users towards unregulated platforms. They advocate for a simpler tax structure, potentially involving a single income tax, to foster a more stable and competitive environment for legal crypto businesses.

Bitcoin is now trading at $61.733. Chart: TradingView.com

Regulatory Shift And The Future Of Taxation

The upcoming transfer of regulatory oversight from Bappebti to the Financial Services Authority (OJK) in January 2025 is expected to further influence the future of crypto taxation in Indonesia. This shift could potentially pave the way for a more comprehensive regulatory framework and potentially, an adjustment to the current tax structure.

The government acknowledges the potential of the sector but remains cautious about the potential risks. The recent discovery of over 300 illegal crypto exchanges operating within the country underscores the challenge of effectively regulating and taxing the digital currency market. These unregulated platforms pose a significant threat to the integrity of the tax system, as they operate beyond the purview of regulatory authorities.

Balancing Innovation With Stability

The Indonesian government appears committed to fostering responsible growth in the bitcoin sector while maintaining financial stability and protecting the integrity of its official currency, the Rupiah. The recent ban on crypto payments for tourists in Bali exemplifies this cautious approach.

While the exact details of the upcoming regulatory and tax changes remain unclear, it is evident that Indonesia is actively navigating the dynamic landscape surrounding cryptocurrencies. The coming months will likely witness further developments as the government strives to strike a balance between encouraging innovation and safeguarding its financial system.

Featured image from Pexels, chart from TradingView

US Drops Emergency Survey Of Bitcoin Mining Amid Legal Tussle – Details

The US Department of Energy (DOE) and Energy Information Administration (EIA) have scrapped their emergency survey of Bitcoin mining’s power usage following a lawsuit from industry groups, Reuters and other news outlets reported. This move comes amidst growing scrutiny over the energy consumption of cryptocurrency mining and its potential impact on the environment and power grid stability.

Industry Claims Foul, Cites Legal Concerns

Riot Platforms, a publicly traded Bitcoin mining company, and the Texas Blockchain Council filed the lawsuit, arguing that the survey bypassed legal requirements for public comment and data collection procedures outlined in the Paperwork Reduction Act. The plaintiffs claimed the EIA failed to demonstrate how bypassing these procedures was necessary to prevent “public harm,” a prerequisite for emergency data collection.

Kara Rollins, representing the plaintiffs, told Fortune:

“We were shocked to see how blatantly the law was ignored here… We don’t want politics infecting data.”

The EIA, however, had argued that the urgency of the matter justified bypassing standard procedures, claiming Bitcoin mining “potentially disrupted the electric power industry.”

Bitcoin Mining And The Energy Debate

Bitcoin mining, the process of verifying and adding transactions to the blockchain ledger, relies on complex computers solving complex mathematical problems. This process requires significant amounts of electricity, raising concerns about its environmental impact and potential strain on the power grid.

Bitcoin is now trading at $61.780. Chart: TradingView.com

Initial estimates by the EIA suggest Bitcoin mining may account for between 0.6% and 2.3% of total annual US electricity use. While the industry argues this is comparable to individual states like Utah and Washington, environmental groups like Earthjustice counter that it contributes to greenhouse gas emissions and raises electricity costs for consumers.

In Texas, a major hub for Bitcoin mining, Wood Mackenzie reports that the industry has already driven up electricity costs for non-mining residents by an estimated $1.8 billion annually. However, the industry argues that data centers can actually benefit grid stability by offering flexible demand, allowing them to quickly shut down operations during peak hours or emergencies.

Transparent Data Collection: A Path Forward

The DOE and EIA have agreed to destroy any data collected through the initial survey and will instead pursue a non-emergency version with a 60-day public comment period. This revised approach aligns with the Paperwork Reduction Act and allows for broader stakeholder engagement.

While the lawsuit successfully challenged the initial approach, the incident highlights the need for transparent data collection and open dialogue to address the environmental and economic implications of Bitcoin mining. Gathering accurate data through the revised survey will be crucial for developing informed policies and regulations in the future.

Featured image from Pexels, chart from TradingView

Terra Classic Poised To Reawaken As Binance Burns 2.2 Billion LUNC

Binance, the world’s largest cryptocurrency exchange, has executed a large-scale token burn, opting to incinerate over 2 billion LUNCs in a single day. 

Binance Initiates Massive LUNC Burns

A new report from a Terra Luna army member on X (formerly Twitter) has unveiled a massive 2.2 billion LUNC burn initiated by Binance. The cryptocurrency exchange incinerated approximately 2,243,572,668 LUNC tokens valued at around $321,301. 

Cumulatively, Binance has executed a total of 53.49 billion LUNC burns across 2,956 transactions, starting from May 2022. Earlier in February 2024, the crypto exchange kickstarted the month with over 2.09 billion LUNC burns. 

At the start of the year, on January 1, Binance also executed another massive burn of 5.57 billion LUNC tokens. The crypto exchange has been on a LUNC burning spree for years, displaying a tradition of burning a considerable amount of LUNC tokens on the first of every month.  

Presently the total amount of LUNC tokens burned since May 2022 is estimated at 102.14 billion. This includes both Binance’s large-scale burns and that of the Terra Classic community. 

Commemorating Binance’s commitment towards Terra Classic via its burn initiatives, the Terra Luna army expressed gratitude to Binance’s previous and current Chief Executive Officers (CEO), ChangPeng Zhao and Richard Teng respectively, for their continuous support. 

Total crypto market cap is currently at $2.26 trillion. Chart: TradingView.com

Binance’s token-burning efforts not only emphasize the exchange’s dedication to promoting sustainable growth within the Terra ecosystem but also reflect its collaborative spirit with the Terra community to initiate a reawakening of the Terra Classic ecosystem

Terra Classic Potential Resurgence 

As the Terra Classic community remains appreciative of Binance’s proactive steps towards increasing the value of the token, anticipation has ignited the potential resurgence of the Terra Classic market. 

Typically, burning tokens is a common practice conducted to manage a cryptocurrency’s total supply, potentially influencing its market’s dynamics. Binance’s decision to execute its 2.2 billion LUNC burn has sparked optimism for a potential resurgence for Terra Classic.

Presently, LUNC’s total supply sits at approximately 5.78 trillion and Binance’s monthly burns have been steadily cutting down supply, aiming to increase scarcity and potentially triggering a price surge for the cryptocurrency. 

Furthermore, the Terra Classic community has disclosed that LUNC is currently showing great strength after breaking through key resistance levels. The cryptocurrency has experienced a significant upsurge of 49% in the past 30 days, highlighting its strength and potential in the market. 

The community has also unveiled the emergence of upcoming projects and new partnerships that could take the value of LUNC and the Terra Classic ecosystem to new heights. 

Featured image from Pexels, chart from TradingView

Whale Abandons Massive PEPE Position For Shiba Inu – How Much SHIB Did They Buy?

A crypto whale has made a significant bet, opting to relinquish a significant chunk of his PEPE investment for the Shiba Inu native token, SHIB

Whale Buys Billions Of SHIB

In a recent X (formerly Twitter) post, Lookonchain, a blockchain analytics platform has uncovered a strategic investment made by a crypto whale. According to the analytics platform’s findings, an anonymous crypto whale who previously invested heavily in the popular frog-themed PEPE token has abandoned its holdings to acquire SHIB.

Sharing a screenshot of a series of PEPE transactions on Etherscan, Lookonchain discovered that the whale deposited a staggering 1.97 trillion PEPE tokens worth over $6.07 million into Binance. Leveraging its strategic investment in this frog-themed cryptocurrency, the whale has amassed a substantial profit of $3.49 million, surpassing half of its initial $6 million investment. 

Following this massive PEPE deposit, the whale purchased approximately $75.9 billion SHIB valued at $893,000,000 from Binance into an unknown crypto wallet. The decision to abandon its considerable PEPE position in favor of SHIB underscores the whale’s sentiment towards the doggy-themed meme coin, suggesting a potential upside for the cryptocurrency.

Recently, more individuals have been showing major interest in the Shiba Inu token, opting to invest in the popular meme coin in the hopes of making significant returns. Earlier in January 2024, SHIB whale transactions saw a spike of over 1300%, highlighting the elevated demand for the doggy-themed token.

Bitcoin is now trading at $61.991. Chart: TradingView.com

The underlying motivations behind these large-scale transactions remain undisclosed. However, it’s not uncommon for significant whale activities to trigger a price rally for a cryptocurrency. At the moment the broader crypto community is still closely watching the effects of these developments and their potential influence on the dynamics of the SHIB market. 

SHIB Price Soars

Lately, SHIB has been witnessing significant gains, propelling its price to unprecedented levels. According to data from CoinMarketCap, over the past 24 hours, SHIB has recorded an almost 60% increase in its price value. 

At the time of writing, the cryptocurrency is trading at $0.000020, reflecting a 59.81% surge in just a day and an impressive 113.83% rise in the last seven days. These price leaps have been attributed to the success of its ongoing SHIB burns and the rapid growth of its ecosystem and community.

Currently, SHIB boasts a market capitalization of over $11 billion and has experienced a 140.35% increase in its 24-hour trading volume, pushing it to over $4 billion. Furthermore, derivatives data unveiled by Coinglass has suggested a potential continued uptrend for SHIB, aligning with the pump experienced in the past few days. 

The data has revealed a 74.06% rise in Shiba Inu’s open interest and a 220.54% surge in volume. This indicates a significant upside for the cryptocurrency, underscoring the token’s strength and prevalence in the broader cryptocurrency market. 

Featured image from Pexels, chart from TradingView

Hong Kong Trails Singapore In Crypto Licensing: Only 24 Applicants After Deadline | Bitcoinist.com

According to a Bloomberg report, Hong Kong has received applications from 24 companies seeking licenses to operate crypto exchanges in the city as it strives to establish itself as a regulated hub for the cryptocurrency industry. 

Notable players such as Bybit, OKX, and Crypto.com are among the applicants, while Binance, Coinbase, and Kraken are absent. However, the city’s virtual asset rulebook, which prioritizes investor protection, comes with compliance costs that could be challenging for some companies.

Binance, Coinbase Omit Hong Kong’s Crypto License Race

Per the report, the list of applicants includes well-known players in the digital asset space, such as Gate.io, HTX, and Bullish, which have demonstrated notable trading volumes. Nonetheless, the absence of major exchanges like Binance, Coinbase, and Kraken raises questions about their strategic decisions regarding Hong Kong. 

The list of applicants serves as a gauge of industry sentiment, indicating the confidence level in Hong Kong’s regulatory framework. Angela Ang, senior policy advisor at blockchain intelligence firm TRM Labs, sees the presence of recognized players as a positive sign. 

Notably, Hong Kong’s 24 applicants for exchange licenses lag significantly behind Singapore, where some 70 companies have officially applied for a license by the end of 2021, three times the number of applicants in Hong Kong so far.

However, the true measure of Hong Kong’s success will depend on the investments these companies make in the local market. Compliance costs associated with operating a regulated business in the digital asset industry are inevitable and must be factored into long-term strategies.

OTC Trading Dominates Crypto Inflows In Hong Kong

The report notes that Hong Kong has shifted its focus to becoming a cryptocurrency hub in late 2022, aiming to showcase its technological capabilities and secure its future. Currently, HashKey Exchange and OSL Group are the city’s only authorized digital asset exchanges. 

However, most digital flows into Hong Kong have occurred over-the-counter (OTC) trading rather than digital asset exchanges. Chainalysis data shows that around $64 billion of crypto entered Hong Kong through OTC channels last year. 

The government reportedly wants to regulate OTC outlets that facilitate cash-to-crypto transactions with minimal oversight. In addition, Hong Kong is exploring regulations for stablecoins and considering introducing exchange-traded funds (ETFs) that invest directly in selected cryptocurrencies.

Overall, the ongoing development of Hong Kong’s digital asset exchange sector and the influx of applications for operating licenses reflect the city’s ambition to become a regulated hub for the cryptocurrency industry.

However, the compliance costs associated with operating a regulated business pose challenges that companies must consider. 

In light of this latest development, Bitcoinist previously reported that HTX  has withdrawn from its efforts to secure a cryptocurrency exchange license in Hong Kong. According to the report, three other cryptocurrency exchange operators have also withdrawn their applications.

The daily chart shows the total crypto market cap’s valuation trending upwards at $2.24 trillion. Source: TOTAL on TradingView.com

Featured image from Shutterstock, chart from TradingView.com 

Crypto Regulation Stuck In “Enforcement-Only Mode,” Says SEC Commissioner Peirce | Bitcoinist.com

In a thought-provoking address at the ETHDenver Web3 hackathon, US Securities and Exchange Commission (SEC) Commissioner Hester Peirce expressed her concerns over the regulatory body’s handling of the cryptocurrency industry. 

Known for her pro-crypto stance and support for blockchain technology, Peirce lamented the lack of clear rules and the SEC’s tendency to pass judgment on cryptocurrencies as an asset class.

Peirce Urges Clearer Regulations To Foster Crypto Industry Growth

Peirce highlighted the negative impact of regulatory uncertainty on innovation, noting that developers and entrepreneurs are forced to spend “precious brainpower” trying to avoid potential legal repercussions. At the same time, the SEC has gone into “enforcement only mode” rather than focusing on building transformative solutions.

Once again, the Commissioner called for clearer regulations to allow the industry to thrive, emphasized her frustration with the SEC’s tendency to stifle innovation by treating crypto with undue skepticism, and echoed the vast industry’s calls for an improved and updated regulatory framework.

In her speech, Peirce also emphasized decentralization’s inherent strength and resilience to the financial system. At the same time, the SEC extends its oversight to decentralized finance (DeFi) solutions with new rules. 

The new rules, Exchange Act Rules 3a5-4 and 3a44-2, refine the definition of “in the regular course of business” in Sections 3(a)(5) and 3(a)(44) of the Securities Exchange Act of 1934 and are designed to identify specific activities that would classify persons engaged in them as “dealers” or “government securities dealers.” 

As a result, those who fall into these categories must register with the SEC, become members of a self-regulatory organization (SRO), and comply with federal securities laws and regulatory obligations.

Peirce acknowledged the challenges the Securities and Exchange Commission faced, led by Gary Gensler, in grappling with decentralized networks and interactions governed by code rather than traditional entities. Peirce further stated:

When you have people working together and someone interacting with code instead of with a person or entity, it’s a real challenge for the SEC to figure out what to do with that.

Focused Application Of Securities Laws

Peirce suggested that the SEC’s role should primarily be to ensure securities laws are appropriately applied rather than attempting to understand and regulate the entire crypto space.

Peirce further expressed her desire for the SEC to adopt a more supportive approach, allowing projects to grow and achieve decentralization without the constant threat of legal action. 

The Commissioner stressed the importance of providing a regulatory environment that encourages innovation and empowers individuals to make informed decisions. Peirce also cautioned against targeting those seeking clear guidelines for operating within the crypto industry, emphasizing the need for collaboration and a forward-thinking mindset.

As the SEC remains primarily focused on enforcement, Peirce’s remarks shed light on the necessity for the regulatory body to establish provisions that enable projects to flourish and evolve into decentralized entities. 

By providing clarity, embracing decentralization, and fostering an environment that encourages growth, the SEC has the opportunity to support the development of a vibrant and innovative crypto ecosystem. However, all indications are that the SEC is unlikely to change its crypto crackdown in the coming months unless there is a change in administration following the presidential election in the US scheduled for 2024.

The daily chart shows the total crypto market cap’s valuation trending upward. Source: TOTAL on TradingView.com

Currently, the valuation of the crypto market stands at $2.25 trillion, continuing its uptrend with gains of over 2% in the past 24 hours. 

Featured image from Shutterstock, chart from TradingView.com

Bitcoin Shake-Up: Galaxy CEO Novogratz Warns Of $55,000 BTC Drop – Here’s Why

With its recent surge above the $64,000 mark, Bitcoin has again proven its attractiveness to a broad spectrum of investors. Amid this bullish momentum, Michael Novogratz, the CEO of Galaxy Digital Holdings, has shared his insights, suggesting a possible short-term correction that could see Bitcoin’s value adjust to the mid-$50,000 range.

This forecast comes when Bitcoin has experienced a significant rally, surging from below $45,000  as of early January and recently touching highs above $64,000.

Bitcoin Poised For Drop To $55,000

Novogratz’s prediction was shared during a Bloomberg TV interview, where he detailed his perspective on the current state of the cryptocurrency market.

The Galaxy Digital Holdings CEO described the market’s recent behavior as a phase of “price discovery,” driven in part by the inception of Bitcoin spot ETFs, which have ushered in a new wave of investment into the sector.

Despite the positive trend, Novogratz highlighted concerns over the market’s leverage, particularly among younger investors whom he called “millennials and Gen Z” drawn to the allure of quick gains. The Galaxy CEO noted:

You’ve got a lot of millennials and Gen Z YOLOing it, and they all will get some of that money and a lot of ’em will get wiped out.

He noted that this demographic’s aggressive trading behavior could lead to significant market corrections, underscoring the inherent risks of high-leverage investment strategies.

So far, the recent retracement from Bitcoin’s peak of $64,000 has led to nearly $300 million in total liquidations within 24 hours, catching almost 100,000 traders of a wave of losses, as per data from Coinglass.

This situation exemplifies the high stakes in cryptocurrency trading, where significant price movements can result in substantial financial impacts for investors.

Novogratz pointed out a shift in leverage usage between the 2021 bull run and the current market conditions, noting that while institutional players have moderated their leverage, retail traders, particularly through offshore platforms, continue to embrace high-risk, high-leverage trading.

BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.com

The Future Trajectory Of Bitcoin

Despite potential short-term volatility, Novogratz remains optimistic about BTC’s long-term trajectory. He emphasized the market’s cyclical nature, suggesting that while “boom-bust” cycles may occur in the short run, the overall trend for Bitcoin is positive.

This viewpoint is supported by the growing interest from individual and institutional investors in allocating a portion of their portfolios to BTC’, recognizing its value as a digital asset.

Moreover, on-chain data reveals an interesting trend among “newbie whales,” or Bitcoin holders who have acquired their coins within the past 155 days. According to CryptoQuant CEO Ki Young Ju, this group of investors currently holds an all-time high amount of unrealized profit following the latest rally.

Featured image from Unsplash, Chart from TradingView