Author: Chris Lion

An unknown trader invested $3,000 on PEPE token and cashed out big, with investors taking profit as the meme coin recorded a new all-time high.

In a market where profit can be made and lost in the blink of an eye, an unknown trader has made headlines by profiting $46 million with the popular memecoin PEPE, equivalent to a 15,718x gain in just one year.  

According to Lookonchain data, the trader invested $3,000 on April 15, 2023, to purchase 4.9 trillion PEPE, which is currently valued at $56 million. The trader also sold $2,256 worth of Timeless (LIT), $210 worth of Ethereum (ETH), and 500 USDC to buy PEPE. 

Earned more than $46M on $PEPE with only $3K, a gain of 15,718x!😱

This super big winner sold 255B $PEPE($2.3M) for profits again after the price of $PEPE increased.

He spent only $3K to buy 4.9T $PEPE($56M currently) on Apr 15, 2023, and sold 1.41T $PEPE for $7.4M, with 3.5T… pic.twitter.com/VKGxmK9gCt

— Lookonchain (@lookonchain) May 15, 2024

PEPE Token Records New All-Time High

On May 15, as the trader’s success unfolded, PEPE reached a new all-time high of $0.00001151, which indicates a 5.8% increase within the last 24 hours. At the time of writing, the memecoin had a total market cap of $4.26 billion and now ranks as the 27th largest crypto in the market.   

Also, Roaring Kitty, known for initiating the 2021 GameStop rally, stirred speculation of his comeback on Monday on the X platform. Traders took it as a sign, which caused a rally in meme coins, with top perfumers such as PEPE, Dogecoin (DOGE), Shiba Inu (SHIB), and Floki (FLOKI).    

According to SpotOnchain data, whales and other early investors of the meme coin started cashing out profits as soon as it hit its new high.  

Profits Generated From Trading PEPE

This is not the first time a trader has made substantial profit from trading PEPE. For instance, an anonymous trader moved 250 billion PEPE, worth $2.69 million, to Binance. Following the transfer, the trader still held 42.2 billion PEPE, which amounts to a profit of $3.96 million.

In another case, a trader capitalized on a 20.5% profit on their PEPE investment within three days. They sold 123.7 billion PEPE for $1.31 million.

Interestingly, Santiment data reveals a 416% surge in whale transactions involving at least $100,000 worth of PEPE on May 14, which skyrocketed from 135 to 697 unique transactions daily. However, recent figures have slightly declined, with the transactions decreasing from 706 to 698 in the last 24 hours.

Aside from PEPE, other traders have cashed out from other meme coins. For instance, on April 26, an unidentified trader made a substantial profit of $23 million on Solana meme coins. The trader gained profit from investing in tokens like Dogwifhat (WIF), Joe Boden (BODEN), and Bonk (BONK).

Adams warned that crypto policies from the SEC and Senator Elizabeth Warren might harm President Joe Biden’s re-election chances.  

Hayden Adams, founder and CEO of decentralized exchange Uniswap, has urged the President of the United States, Joe Biden, to reverse the current crypto regulatory policy.  

In a recent tweet, Adams emphasized the urgency for President Biden to alter the perception many crypto-focused voters had regarding his administration’s crypto asset policies. He noted that there was “not much time” for such changes.   

The Uniswap CEO highlighted a “miscalculation” by the U.S. President, cautioning against assumptions of crypto’s irrelevance in the 2024 elections. He expressed concern over Senator Elizabeth Warren and the U.S. Securities and Exchange Commission (SEC) potentially “waging total war” on the technology.   

“Republicans smell blood in the water and are turning hard towards crypto,” said Adams. “Not much time for Biden to save it. Anyone close to him or [Democratic] leadership should be expressing how serious this is and pushing for immediate reversal on his approach to crypto (public support/plan and reigning in sec + warren),” he added.   

United States Upcoming Election. 

In November, U.S. voters will decide whether to re-elect President Biden for a second term. After assuming office in 2021, he signed an early executive order to establish a regulatory framework for digital assets and nominated Gary Gensler as the SEC Chair.  

Furthermore, under Gensler’s leadership, the SEC has intensified enforcement actions against crypto firms offering services or products to U.S. residents, drawing criticism from perceived inconsistency in its approach to crypto assets. The regulator has pending civil cases against Binance, Coinbase, Kraken, and Ripple.   

House of Representatives to Nullify SEC Rule. 

On May 8, most U.S. House of Representatives members backed a solution to overturn an SEC rule limiting banks’ holdings of crypto. Before the vote, President Biden stated he intended to veto the resolution, keeping the rule intact. 

In addition, with the upcoming election, barely under six months, both within and outside the crypto community, have criticized the Biden administration concerning its policies in crypto assets. Some use it as a warning, like Adams, while others express outright criticism. 

Congress is advancing legislation to clarify the roles of the SEC and Commodity Futures Trading Commission (CFTC) in regulating crypto.

Bitfarms’ outgoing CEO filed a claim in the Superior Court of Ontario, alleging a contract breach and seeking damages.

Bitfarms, a leading global Bitcoin mining firm, has made headlines with the termination of its interim president and CEO, Geoffrey Morphy, amid an ongoing $27 million lawsuit against the company over breach of contract, among other issues.  

Morphy, appointed in late 2022, was announced to leave the Toronto-based company on March 25, pending a search for his replacement. However, Bitfarms stated that Morphy has been terminated immediately and no longer serves as the company’s director.   

Legal Action Filed Against Bitfarms. 

The saga unfolded as Morphy filed a claim against Bitfarms in the Superior Court of Ontario on Friday, alleging breach of contract, wrongful dismissal, and seeking damages. The firm believes the claims are meritless and intends to defend itself.     

Bitfarms’ chairman and co-founder Nicolas Bonta has assumed the role of interim president and CEO as the company continues its search for a permanent replacement. Bitfarms stated that the search is almost completed, with plans to appoint a new CEO in a few weeks.   

Bitcoin mining firms like Bitfarms are essential to the crypto ecosystem’s infrastructure. They enable the validation and processing of transactions on the blockchain network, ensuring its smooth operation and integrity.  

Bitcoin Mining Sector Challenges. 

In addition, the Bitcoin mining sector is encountering numerous challenges, including higher energy costs, intensifying competitions, and the outcome of a significant software-code update in April, commonly known as the “halving,” which substantially reduced its primary revenue stream. 

Meanwhile, in the first quarter, Bitcoin prices rapidly increased as new coin production crashed due to increased mining difficulty, which measures the computing power needed to create Bitcoin tokens.    

The firm stated that its recent upgrade combines a high-efficiency fleet with cost-effective practices to strengthen the farm. It also elevates its capital-efficient fleet, aiming for a modest increase to 12.0 EH/s by Q2 2024.  

Bitfarms noted that it cuts miner and energy costs, enhances fleet energy efficiency, and offers advantageous pricing flexibility.  

Furthermore, Bitfarms promotes hydroelectricity and locally sourced natural gas to maintain low costs and environmental impact while securing 2% of the Bitcoin network.

The halt of the L3 Degen chain has sparked concerns and debates in the crypto community.

In a surprising turn of events, the L3 Degen Chain, a Layer 3 Ethereum-based blockchain developed for the Degan meme token, has ceased block production for over 11 hours. 

The L3 blockchain, known for its innovative decentralized finance (DeFi) solutions features, experienced a significant disruption without any clear explanation. The outage has interfered with transaction confirmations and network functionalities.

DEGEN is one of the biggest coins in the Farcaster network. Its role in facilitating transactions and enhancing various functions and activities in the Degen Chain ecosystem is essential. However, the block production pause has impacted DEGEN’s functionality and liquidity. Stakeholders seek clarity on the underlying issues, but developers have not yet issued a statement. 

What is DEGEN Chain?

Degen Chain is also a Layer 3 blockchain built with Arbitrum Orbit dedicated to the Degen community on Warpcast. The platform uses distinct features and the Gas token “DEGEN,” an important component in the broader Farcaster ecosystem while functioning on Syndicate’s innovative infrastructure.  

The project was founded by Jacek Trociński, who had previously worked on tokens with similar tokenomics, such as Blur (BLUR) and Uniswap (UNI). The primary objective behind the project is for users to earn points if they are active in the channel. Several points were awarded to users who participated in the tasks or held certain NFTs. 

Initially, one DEGEN token equaled one point, with users receiving rewards through an airdrop. As community interest grew, Trociński observed an increase in developers building applications utilizing DEGEN as the native token.  

The founder noted that DEGEN is not designed to be capable of doing anything “technically different” but operates as an “application layer chain.”

Trociński believes that if the DEGEN chain eventually becomes a memecoin enabling applications to build games and design fun applications, it would become vastly valuable.    

The live price of the DEGEN token is $0.01856. At the time of writing, it has a market cap of $231.15 million and a volume of $28.03 million.

The bank disclosed that it holds $143,111 worth of shares several bitcoin-related products, including the ProShares Bitcoin Strategy ETF and Grayscale.

Wells Fargo, one of the biggest banks in the United States, has revealed that it owns investments in Grayscale and ProShares Bitcoin exchange-traded funds (ETFs).   

Wells Fargo Invests $143k in Bitcoin ETFs

In a recent filing with the U.S. Securities and Exchange Commission (SEC) on May 10, Wells Fargo disclosed ownership of 37 shares of the ProShares Strategy ETF (BITO) and 2,245 shares of the Grayscale Bitcoin Trust (GBTC). Notably, the GBTC was converted to an ETF. The firm also reported 52 shares in Bitcoin Depot, a crypto ATM provider.   

Wells Fargo reported a total investment value of $143,111 in its three Bitcoin-related assets, a relatively small portion of its overall holdings. As of June 2023, the banking giant boasted approximately $1.7 trillion in assets, ranking it the third-largest bank in the United States by holdings.   

The bank’s representative noted that investors can acquire spot Bitcoin ETFs through Wells Fargo Advisors or Wellstrade Bank’s online platform upon regulatory clearance.

Other Firms Investing in Spot Bitcoin ETFs

Aside from Wells Fargo, other financial institutions and companies, such as Susquehanna International Group, revealed that have invested in spot crypto ETFs. Susquehanna holds over $1 billion in the Grayscale Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, and ProShares Bitcoin Strategy ETF. 

The Bank of New York Mellon Corporation (BNY Mellon), one of the oldest and largest banks in the U.S., has also disclosed its investments in Bitcoin ETFs managed by BlackRock and Grayscale.

BNY Mellon’s involvement with Grayscale entailed buying shares of its Bitcoin Trust, while its engagement with BlackRock’s IShares Bitcoin Trust (IBIT) included acquiring ETF shares. Despite being relatively small, these investments underscore the bank’s acknowledgment of Bitcoin’s potential as an asset class. 

The surge of Bitcoin ETFs has been remarkable. According to Bloomberg’s ETF expert Eric Balchunas, it typically took 647 trading days (around three years) for an ETF like JPMorgan Nasdaq Equity Premium ETF (JEPQ) to reach $10 billion in assets before the introduction of Bitcoin ETFs.

The Zilliqa team assured the community that it will continue investigating the root of the recent network setback. 

Zilliqa, an ERC-20 blockchain focused on high transaction throughput, has restored its network operations after a temporary halt. Users can now resume transactions on the platform, although the cause of the disruption is still under investigation.  

The platform informed the community that the network is back online after experiencing temporary disruptions to block production on mainnet. While network functionality has been restored, the infrastructure team is still monitoring stability and diagnosing the underlying cause of the recent disruptions.   

How it Started

Zilliqa’s network disruption started on May 8 after it showed signs of block generation slowing down. The blockchain’s technical team has been active for nearly 48 hours, working to prevent further disruptions.  

On May 9, around 9:30 am UTC, the Zilliqa technical team detected a malfunction in which a null value was returned instead of a node’s RLP following a potentially invalid database lookup.

“The team has created internal rehearsal networks to recreate this issue and trial bug fixes, allowing for possible solutions to be tested within an isolated environment before progressing to Testnet and mainnet deployments,” the team said.  

By 2:30 pm UTC on May 9, the team had restored full functionality with a fix and deployed Zilliqa’s version 9.3.4 network upgrade, which includes enhancements to EVM compatibility. The team apologized for any inconvenience caused to users and the Zilliqa community.     

Another Network Setback

Interestingly, despite the fix and upgrade rollout, another disruption to block production occurred on Zilliqa’s mainnet around 7:05 pm UTC on May 9. The team then improved debugging processes to better diagnose and address the leading cause of the disruption.  

The Zilliqa team assured users that they would rectify and address the root of the recent network disruption. The team thanked the community for their patience and support during the resolution process. 

Lightning Labs CEO outlined Bitcoin Lightning essentials at FT Live’s Crypto and Digital Summit and hinted at a new development on Bitcoin’s leading layer 2.

Lightning Labs CEO Elizabeth Stark has recently announced the potential integration of stablecoins on the Bitcoin network.  The CEO revealed the latest from the Bitcoin development firm at FT Live’s Crypto and Digital Assets Summit in London.

According to Stark, Lightning Labs’ Taproot assets protocol is working on bringing stablecoins and tokenized assets to Bitcoin. Also, she stated that developers have made significant progress toward this aim, including testing transactions on Lightning.  

“We released an early part of the code in October and recently demoed the first-ever transaction on Lightning of an asset. The idea is to have crypto dollars and stablecoins on the Bitcoin blockchain,” she said.  

Stark further emphasized that traditionally, digital assets operated on blockchains with high fees and other issues. She argues that Bitcoin, with its secure and decentralized network, is ideally positioned to facilitate the use of stablecoin.  

Bitcoin and Stablecoin As a Store of Value

The Lightning Labs CEO also discussed the value of Bitcoin and stablecoins as a store of value, particularly in countries facing inflation and currency devaluation challenges. She mentioned that the stablecoin has expanded since the COVID-19 pandemic, especially in emerging markets.  

In addition, Stark explained that the most loyal users seek stability, opting for either Bitcoin, stablecoins, or a mix of both. She further mentioned that Tether and Circle’s USD Coins hold more US Treasury bonds than countries like Germany and South Korea, as end-users don’t benefit from the interest.  

Lightning-Driven Stablecoins will be Advanced

Despite the significant growth in the value of the stablecoin market, the CEO noted that infrastructure will be needed to enable the insurance of stablecoins and real-world assets on the Bitcoin blockchain.  

“That’s why we’re building this protocol and this technology right now. We’re not issuing assets; we’re building the rails. Asset issuers will use our technology to issue real-world tokenized assets,” Stark highlighted.    

The CEO recommended that financial institutions could issue gold assets, stablecoins, and fiat-backed assets on Bitcoin to facilitate transactions over the Lightning Network. Stark added that the process could competitively enable global transactions at significantly lower rates than traditional networks.

The victim demanded the return of 90% of the stolen funds, stressing the traceability of WBTC and the challenge of laundering such a substantial amount. 

A poisoning scammer has made headlines by stealing a whopping 1,155 Wrapped Bitcoin (WBTC) worth $71 million and a message.  

The attacker used a vanity address service to create an address strikingly similar to the victim’s, prompting the victim to mistakenly transfer funds to the attacker’s address.    

51 ETH Valued at $151,600 Returned To The Victim. 

After the theft, the scammer took an unusual step by contacting the victim through the Ethereum blockchain, seeking their Telegram details. Subsequently, the scammer returned 51 Ethereum (ETH), valued at approximately $151,600, to the victim.  

The partial return, totaling only 4.2% of the stolen funds, came with a request for ongoing communication, as the scammer promised to initiate a call the following day.  

The victim responded by demanding the return of 90% of the stolen funds, citing WBTC’s traceability. Also, victim set a deadline of 10:00 am UTC on May 6, 2024, for the scammer to comply. They asserted that reversing the theft was impossible due to the blockchain’s traceability.  

In addition, the partial return of stolen funds led to speculation about the scammer’s identity and motives. Some said it might be an effort to repair their reputation in the crypto community, while others saw it as a strategic move to avoid legal consequences or aid future fraudulent activities. 

Victims and Their Loses. 

Amidst the chaos, WBTC stood at $62,365.45, showing moderate growth over the past 24 hours. The crypto community closely monitors the unusual direct interaction between scammers and their victims.    

Meanwhile, on May 3, 2024, an unknown trader lost over $67.8 million worth of WBTC in a single transaction in an address-poisoning scam.  

On April 29, another investor lost approximately $33 million in a fraud linked to the ZKasino gambling platform. Even after the ZKasino incident, crypto losses from scams and hacks in April were estimated at $25.7 million, marking the lowest figure since 2021, when Certik, an on-chain intelligence firm, began monitoring such data.

The recent transfer of 6,021 wstETH back equates to approximately two-thirds of the missing amount in the exit scam. 

ZKasino, the decentralized casino platform, has seen over $20 million worth of bridged Ether returned to its multisig wallet almost three weeks after users accused platform founders of an exit scam.  

On May 9, an X account ($JAIL) dedicated to recovering funds from the ZKasino exit scam revealed that nearly $21 million worth of wrapped Lido staking ETH (wstETH) had been returned to the project’s multi-signature wallet. The development gave investors hope that they might soon receive their funds back as initially promised.  

UPDATE! 2/3 of the Zkasino $ZKAS bridged eth are now back on the multi-sig wallet!https://t.co/rIYEHOL7my

Could they be preparing to refund the victims ?? pic.twitter.com/oNT39faXvT

— $JAIL (@jail_monke) May 9, 2024

The saga started when Zkasino, like many other DeFi platforms, faced a critical vulnerability in its smart contract, which resulted in the loss of funds in millions of dollars.  

“One of the three scammers just sent the funds back to the original multi-sig wallet address,” $JAIL stated, offering Etherscan evidence of the transfers.   

ZKasino Airdrop Launch

ZKasino launched on April 20, presenting an airdrop in its native token, ZKAS, to those who bridged ETH to the platform and pledged to refund it.  

However, the gambling project redirected approximately $33 million worth of users’ bridged Ethereum to the staking protocol Lido Finance rather than fulfilling the original promise of returning the funds to users. 

The incident resulted in accusations of an exit scam, as over 10,000 individuals had bridged assets based on promises made by the protocol, which they alleged were subsequently violated.    

Suspect Arrested for Alleged ZKasino Scam

On April 29, Dutch authorities arrested a 26-year-old man suspected of involvement in the alleged ZKasino scam. At the time, authorities seized approximately $12.2 million worth of digital assets, real estate, and luxury cars from the suspect.   

Some users speculated in the crypto community that the arrested suspect might be the project founder known under the pseudonym “Derivatives Monke,” identified as Elham Nourzai by blockchain investigators.   

Meanwhile, Binance helped by freezing millions of dollars worth of stolen crypto after authorities obtained a seizure warrant against the attacker’s accounts.  

Despite the arrest, unauthorized funds are still flowing, showing that other potential attackers may still be around the corner. However, the recent movement of funds back to the project’s mutisig wallet has returned hope for the victims involved.   

Lastly, according to figures from on-chain intelligence firm CertiK, in April, $25.7 million worth of crypto was lost to scams and hacks, with the ZKasino incident excluded.