Author: Chris Lion

Investors have pumped a staggering $862 million into crypto funds just last week, nearly erasing the previous week’s record outflow of $931 million despite market volatility. The influx of capital into crypto funds shows growing confidence among investors while trading activity slows. 

Data compiled by crypto fund tracking firm Coinshares revealed that Exchange-Traded Fund (ETF) activity is slowing down, with daily trading turnover currently at $5.4 billion, which is currently down 36% relative to its peak three weeks ago. 

Crypto Volatility  

The surge in investment comes amid a backdrop of increased volatility in the crypto market. 

Bitcoin (BTC), the largest and most recognized crypto asset, with a current market cap of $1.3T, according to CryptocurreciesToWach, has experienced an unstable ride over the past week. Likewise, other major crypto assets like Ethereum and Solana witnessed a significant price swing. 

In the past week, BTC fluctuated within the $68,000 to $71,000 mark. However, recent developments have caused the leading digital asset to decline in value. At the time of writing, the leading crypto asset is trading at $66,500.  

According to CoinShares analysts, bitcoin recovered toward $70,000, and assets under management increased from $88.2 billion to $97.9 billion.  

After withdrawing $3.7 million a week earlier, clients pulled out $2 million from structures that allow opening shorts on the first crypto. For Ethereum (ETH) funds, the outflow decreased from $34.2 million to $18.9 million, a typical trend following network upgrades, which indicate investors’ apprehension about their success.    

Investor’s Allocation 

Investors allocated $6.1 million, $2.4 million, and $1 million into instruments based on Solana (SOL), Polkadot (DOT), and Cardano (ADA), respectively.   

On a regional level, the divergence continues, with the United States witnessing an additional influx of $897 million, whereas Europe and Canada collectively saw outflows of $49 million.

Despite the market fluctuations, investors view price dips as favorable buying opportunities rather than reasons for concern. 

Meanwhile, investors are advised to exercise caution and conduct thorough research before allocating capital to crypto assets, recognizing the risk associated with the crypto market.  

The acquisition of 8,888 BTC has elevated Tether to the seventh-largest Bitcoin holder.

Tether, the company behind the world’s largest stablecoin USDT, has acquired a total of 8,888 bitcoin (BTC) worth $618 million.  

The latest acquisition is part of Tether’s efforts to boost its stablecoin reserve. According to on-chain data Tether’s wallet now holds 75,354 BTC, with a total value of $5.2 billion as of the time of writing. The assets were purchased as an average price of $30,305 per coin. 

Interestingly, data from CoinStats shows that the wallet has surged by more than 128%, currently yielding an unrealized profit of $2.94 billion.  

The lastest acquisition comes amid increased institutional attention towards Bitcoin. The interest was sparked by the approval of spot bitcoin exchange-traded funds (ETFs) in the United States, alongside the incoming Bitcoin Halving scheduled to occur in just 19 days.

According to Bitinfocharts data, Tether is currently the seventh Bitcoin holder globally, with Binance’s cold wallet being on the number one spot with 248,597 BTC, valued at $17.31 billion.  

On March 4, Tether’s USDT achieved a milestone, reaching a record market cap of $100 billion, reflecting a notable 9% year-to-date growth for the stablecoin.  

The firm announced its intention to allocate 15% of its net profit towards investments in BTC, aiming to diversify its stablecoin reserve. 

BTC’s Trading Position  

Meanwhile, since last month, bitcoin maintained its position above the $69,000 support line despite the market undergoing the largest quarterly options expiry event on March 29. 

In a video analysis released on March 26, pseudonymous crypto analyst Rekt Capital said that Bitcoin’s pre-halving correction might have concluded, pointing to the fact that BTC turned its previous all-time high of $69,000 into a support level. 

“Bitcoin is now peaking beyond this old all-time high, potentially positioning itself for this pre-halving retracement to be over,” he said.    

According to data, BTC has recently concluded seven monthly green candles in a row, marking a significant milestone in its performance.

The Prisma Finance hacker has commenced swapping the stolen funds to ETH.

Popular decentralized finance (DeFi) platform, Prisma Finance, has been compromised in an exploit resulting in the loss of approximately $10 million worth of crypto assets. The incident has raised concerns about the security of DeFi protocols. 

Prisma Finance Exploited For $10 million 

On-chain security alert provider Cyvers was the first to detect the anomaly on March 28. 

“Our system has detected multiple suspicious transactions with @PrismaFi and are still ongoing. The total loss so far is around $9M. The attacker has been funded by @FixedFloat! Our system has detected the malicious contract 2 min earlier than hack transactions,” the security provider said. 

The exploit targeted Prisma Finance’s smart contracts, allowing the attackers to siphon funds from the platform. According to the investigation, the attackers exploited a vulnerability in the platform’s code that enabled them to transfer funds from various liquidity pools and other protocol functions.   

Cyvers Alert Notification 

Following the initial alert, Cyvers quickly identified and detected an additional $1 million in fraudulent transactions, totaling the exploited funds to nearly $10 million. 

“The attack is ongoing, with the total loss now increased to ~3,257.7 $ETH (worth ~$11.6 million). To vault owners, please follow up on notifications from the official source and be cautious about scams,” Cyvers added.   

Shortly after the exploit, Prisma Finance, a DeFi liquidity staking protocol with over $222 million in TVL, announced that its core engineers and contributors would suspend the protocol and initiate an investigation. 

The DeFi platform also urged all users to revoke all connections to prevent further loss of funds. 

Prisma Finance Assures Users

The DeFi platform has reassured its users that measures are being implemented to enhance the security of its smart contracts and prevent similar exploits in the future.  

Additionally, Prisma Finance has committed to regularly updating its community about the ongoing investigation progress and actions taken to rectify the breach. 

Meanwhile, due to the recent event, other scammers are attempting to capitalize on the exploit. According to the official Prisma Finance announcement, a fraudulent Prisma Finance account with a golden badge strives to redirect users to a suspicious and dubious link.   

Solana-based decentralized exchange (DEX) Jupiter has announced the launch of its native Decentralized Autonomous Organization (DAO), with a staggering initial capital of $137 million via USDC and JUP.

In the announcement on March 27, the developers revealed that the budget allocated to the DAO enables funding for ideas using USDC while also allocating JUP for long-term incentive alignment with JUP Contributors.

“To ensure that the DAO will be able to execute these crucial things over the long term, we will aim to top up the same budget on a yearly basis. If the DAO ends the year with 1.5M USDC and 50M JUP, the team will replenish 8.5M USDC from revenues, and an additional 50M JUP will be transferred from the community cold wallets,” the developers explained.

Users Control Access

The integration of a DAO in the Jupiter DEX promises to empower users with greater control over the platform’s governance and direction, which aligns with the core beliefs of decentralization.  

DAOs are governed by consensus mechanisms and smart contracts, which allow stakeholders to collectively make decisions without depending on traditional centralized structures.   

Upon its establishment, the ecosystem funds are stored in multisig wallets governed by a DAO, initially comprising three members. There are plans to expand access to additional custodians in the coming weeks.  

Jupiter’s Total Locked Value (TVL)

Jupiter stands out as one of the leading decentralized applications on the Solana blockchain, boasting a total value locked (TVL) of $381.49 million. Impressively, the figure reflects an 86% month-over-month growth, according to DeFiLlama.

At the time of writing, the DEX contributes approximately 8% to the total TVL of Solana ecosystems.  

Solana has firmly secured its position as one of the fastest growing blockchain in the industry, with the SOL currently ranking as the fifth largest crypto asset by market cap. A significant portion of that growth can be attributed to the recent memecoin frenzy on the network.

U.S. Judge Shelby slammed the securities regulatory for serious misconduct.

The United States Securities and Exchange Commission (SEC) has come under intense scrutiny and potential sanctions following allegations of severe abuse of authority and misconduct against Utah-based crypto firm DEBT Box.   

SEC Faces Sanction 

U.S. District Judge Robert Shelby instructed the SEC to clarify its actions after attorneys representing DEBT Box expressed concerns about the regulator’s behavior and misconduct. Although the SEC acknowledged its errors, it appealed to the judge not to impose formal sanctions.

The case garnered attention following the defendants’ allegations that the SEC misrepresented crucial facts to secure a temporary restraining order, which froze assets on the crypto platform.   

In a decision rendered on Monday, Judge Shelby dismissed the SEC’s appeal and underscored numerous instances of “bad faith” behavior. He held the agency accountable for its actions, saying it had “significantly compromised the integrity of the proceedings and the judicial process.”  

Also, in an 80-page document filed by Shelby, sanctions were levied against the SEC, which mandates the agency to reimburse DEBT Box’s attorney’s fees and expenses associated with the restraining order. Additionally, the judge rejected the regulator’s plea to dismiss the lawsuit with prejudice, denying the SEC the opportunity to refile the lawsuit later.   

SEC’s Integrity and Transparency in Jeopardy

Initially, Judge Shelby granted the SEC’s request, but later raised concerns about the accuracy of the agency’s information, which led to a demand for evidence.   

In December, the regulator acknowledged and admitted errors, with enforcement chief Gurbir Grewal apologizing for the oversight.  But the securities watchdog tried to avoid sanctions, contending against accusations of bad faith conduct. In January, the commission filed a motion to dismiss the case, asserting that sanctions were unwarranted. 

The legal tussle started after the SEC filed an action against DEBT Box in July 2022 for allegedly that the crypto firm defrauded investors of nearly $50 million through the sale of unregistered securities.  The regulator also requested for an ex parte temporary restraining order, a measure typically reserved for situations where there’s a risk of evidence tampering or fleeing the country.  

The SEC claimed that DEBT Box executives were closing bank accounts and planning to depart from the United States.  

In his judgement, Judge Shelby criticized the SEC for relying on its federal agency status to justify its actions, particularly in pursuing the restraining order. Shelby expressed concerns over the disruption caused to lives by granting the initial order.  

He further highlighted the SEC’s repetition of factual inaccuracies and introduction of new falsehoods in subsequent court representations. 

Shelby underscored that these matters couldn’t be brushed aside as unintentional mistakes. He concluded that the SEC’s lawyers deliberately made strategic decisions to present information, fully aware that without it, they wouldn’t be able to obtain the restraining order and asset freeze. 

Arbitrum is set to have another massive token unlock next month.

Arbitrum (ARB) whales have made a massive move, transferring $58 million worth of ARB tokens shortly after a significant unlock event on March 16. The transaction has caused widespread panic among investors and traders, highlighting the volatility of the digital asset space.

Arbitrum Token Unlock

On March 18, blockchain analysis firm Lookonchain reported at least 11 whales who had deposited their tokens to several crypto exchanges after the unlock. At the time of writing, the whales have collectively deposited 34 million ARB worth approximately $58 million. 

During the massive token unlock event, Arbitrum unlocked a staggering 1.1 billion ARB tokens, with a total value estimated at $2.23 billion.

According to data from crypto vesting tracker Token Unlocks, the project unlocked 573.5 million tokens for its team members and advisers and released an additional 438.25 tokens for investors.   

The Ethereum layer-2 network used a “Cliff Unlock” mechanism, meaning the tokens were released simultaneously. This prompted speculation that many holders might initiate short positions against the token.  

Several community members took to social media platforms to announce their decision to sell their ARB holdings.  

Some individuals maintained optimism that the token would not experience a sharp decline. A community member hoped ARB would exhibit a similar pattern in the previous vesting unlock periods, where token prices surged instead of declining.   

Arbitrum Price Fluctuation 

ARB token price experienced a downward trend. The token reached a high of $2.22 early this month and dropped to $1.84 on March 16, coinciding with the day of the unlock.   

On March 17, ARB witnessed a further decline in value, with the asset dropping to $1.64, marking a seven-day low.  

At the time of writing, the token is fluctuating around the $1.67 mark, representing a 29% decrease from its all-time high of $2.39, which it attained on January 12.  

Meanwhile,according to Token Unlocks, Arbitrum is set to release another 92.65 million tokens on April 16. 

Here’s what Cardano co-founder has to say about claims of Hydra being abandoned.

Cardano’s co-founder Charles Hoskinson has debunked the growing rumors surrounding the future of the firm’s ambitious scaling project, Hydra.

Rumors About Cardano’s Hydra

The Cardano-based protocol Hydra was introduced in May 2023. It aims to strengthen transaction processing capacity and reduce transaction costs on the Cardano blockchain while maintaining security.

Speculation arose following a period of silence from Cardano regarding updates on the Hydra project. Some community members began to question whether the firm has shifted its focus from the project or encountered difficulties.

On March 17, the YouTube channel “The Cryptoviser” uploaded a video alleging that Cardano had “turned away from Hydra” based on Hoskinson’s announcement concerning an integration with Hyperledger Firefly, an open-source Supernode designed for enterprises to build and secure Web3 applications.

However, earlier today, Hoskinson took to the X platform, explaining that developers have not given up on the project and emphasized that the team has never been more motivated and productive.

“I’m seeing some videos claiming that Hydra has been abandoned,” he said before adding that “it is just pure FUD.”

Hoskinson Defends Cardano Over FUD

In his X post, Hoskinson expressed frustration at what he called a “wave of FUD” regarding Cardano’s partnership with the digital ID platform World Mobile and its scaling plans.

“Man, it’s raining FUD this weekend, and I’m not sure about the origin. I guess it’s that time of the cycle where everyone freaks out about ADA’s potential and roadmap, so they throw a wave of FUD at us,” he said.

This is not the first time Hoskinson has addresses and defended Cardano and Hydra over FUD publicly.

In October, the co-founder released a video highlighting Hydra’s capabilities as a scaling solution for Cardano, addressing concerns regarding the network’s scaling issues. 

He countered criticism about throughput, arguing that “Cardano isn’t a TPS system; it’s a transaction-per-transaction system.” 

Hoskinson added that Hydra drifted a little and created middleware for developers to build decentralized applications (DApps) for Cardano.  

Meanwhile, according to DefiLlama, Cardano has experienced notable growth in total value locked (TVL) DeFi this year, hitting a record high of $520 million on March 14.

However, Cardano’s native token ADA is underperforming and a long way from its previous all-time high. At the time of writing, the crypto asset was trading at $0.68 with a market cap of $24 billion.

The Hong Kong securities regulator said MEXC does not have the required license to operate in the country, which makes the platform’s operation a crime. 

The Securities and Future Commission (SFC) of Hong Kong has issued a cautionary warning to investors regarding popular crypto exchange MEXC Global, urging them to exercise vigilance when dealing with the platform.   

According to CoinMarketCap, the platform has a 24-hour trading volume of over $2.19 billion, with a current market cap of $362.97M. MEXC averages three weekly visits and provides access to 1,942 cryptocurrencies.  

MEXC Not Licensed to Operate in Hong Kong

Despite not being licensed by the SFC or having applied for a license to operate a virtual asset trading platform (VATP), the exchange has actively promoted its services to Hong Kong investors.   

“Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is an offense to carry on a business of providing a virtual asset service (i.e., operating a virtual asset exchange) in Hong Kong and actively market such services to Hong Kong investors without a license,” the SFC said.

On March 15, 2024, the SFC added MEXC and its website to the Suspicious Virtual Asset Trading Platforms Alert List, alongside other exchanges like Bybit and BitForex.  

The securities regulator also warned investors against trading digital assets on unregistered exchanges, which may risk losing their investment held on the platform if it ceases operation.  

In early February 2024, the SFC and police cautioned the public about a suspected virtual-asset-related fraud involving a separate entity that also uses the name “MEXC.”  

Approved Crypto Exchanges

At the time of writing, only two crypto exchanges in Hong Kong are licensed by the SFC – the OSL exchange and HashKey Exchange.

The SFC noted that crypto platforms operating in Hong Kong that fail to submit license applications would need to cease business operations by the end of March.

MEXC Hong Kong’s KYC

Meanwhile, MEXC recently launched a marketing campaign targeting Hong Kong investors. In the campaign, new users who complete “KYC” within seven days of registration would be rewarded with 20 USDT. 

In addition, the exchange said it would reward Hong Kong users who used the referral links by introducing friends to trade on the MEXC platform and reaching a specific trading volume with 10 MX.