Cryptocurrencies To Watch

Author: Sincerity Jahswill

  • Australia Hits Kraken Operators with $5.1M Fine for Regulatory Violations

    Australia Hits Kraken Operators with $5.1M Fine for Regulatory Violations

    Australia’s regulatory agency, the Australian Securities and Investments Commission (ASIC), has fined Kraken’s local operator, Bit Trade, $5.1 million for violating regulatory requirements.  The move is part of the regulator’s strategy to strengthen its crypto market oversight.

    Kraken Operators Bags $5.1M Fine

    The Australian federal court ordered Bit Trade to pay for unlawfully issuing a credit facility to over 1,100 customers, resulting in more than $5 million in losses.

    The issue arose from Bit Trade’s margin trading product, which offered credit or loans that could be repaid in crypto assets like Bitcoin or fiat currencies like the U.S. dollar. ASIC found that Bit Trade failed to determine the right customers for the product, charging fees and interest of over $7 million without considering whether it suited them.

    Notably, the regulator acknowledged that the case is the first instance an entity is being charged for failing to have a target market determination (a mandatory public document required for credit facilities). Since the August ruling by the federal court determined that the exchange’s product was a credit facility, the document was needed.

    Kraken’s spokesperson expressed disappointment with the outcome, stating that the rulings would significantly hinder growth in the Australian economy. Despite this, the exchange operators plan to engage constructively with policymakers and regulators as these rules are developed.

    Australian Crypto Industry Decreases

    A recent KPMG report revealed that the number of active crypto firms in Australia has reduced by 14% from 85 to 74. Despite this decrease, high-profile players like Swyftx and Coinspot remain in the sector. The decline was attributed to a broader trend in the financial industry, where mergers and acquisitions (M&A) activity was subdued in 2024.

    The report further noted that the spotlight has shifted from blockchain technology to artificial intelligence (AI) globally, with investors pouring capital into the AI space to future-proof their businesses. However, the blockchain sector may be poised for a revival, owing to the SEC’s approval of the Bitcoin ETF and the expected U.S. pro-crypto administration.

    The recent rate cuts in various countries, including the anticipated cuts in Australia, may also free up capital for investment in the crypto industry. As the risk-free rate falls, alternative investments like blockchain may become more attractive, drawing in investors who have been sitting on the sidelines.

  • Hacker Exploits Dogecoin Flaw, Crashing 69% of Nodes

    Hacker Exploits Dogecoin Flaw, Crashing 69% of Nodes

    A critical vulnerability in the Dogecoin network known as “DogeReaper,” which allowed a hacker to crash 69% of nodes, has been exposed. If exploited further, it could have potentially taken down the entire network. Surprisingly, the incident occurred after the Dogecoin Network developers claimed to have already released a security patch to fix the issue.

    The DogeReaper Vulnerability Exposed

    The DogeReaper vulnerability is a critical issue that could have allowed an attacker to crash any Dogecoin node remotely. The vulnerability was caused by a malformed AuxPow Coinbase, which could cause a Segmentation Fault in Dogecoin. This vulnerability is particularly concerning, as an attacker could have exploited it to disrupt the entire network.

    AuxPow Coinbase refers to the first transaction in a block containing additional data proving the block was mined using the shared PoW algorithm to reward miners for their work. It is said to be malformed when the data is corrupted or incorrectly formatted, resulting in technical problems.

    Two whitehat hackers, Tobias Ruck and Roqqit, discovered the network vulnerability and promptly notified the Dogecoin blockchain developers, detailing the vulnerability. Node operators were advised to update their software immediately. Notably, the latest incident affected nodes that did not upgrade to the newest patch, making them vulnerable to the attack.

    After the vulnerability was publicly disclosed, a Bitcoiner claimed to be behind the latest hack. In response, the Dogecoin community called for increased awareness and education on security best practices to prevent similar incidents in the future.

    Coinbase Response to DogeReaper Vulnerability

    Coinbase, an American crypto exchange, is affected by the DogeReaper vulnerability due to its Dogecoin (DOGE) listing. As a validator in the Dogecoin network, the exchange operates nodes to support DOGE transactions and trading, which means vulnerabilities like DogeReaper can impact it.

    The hackers reported their findings to Coinbase. However, the exchange’s response to the vulnerability has been criticized. Despite the potential severity of the vulnerability, Coinbase labeled it as “low” severity and “informative.” Furthermore, the exchange rewarded the hackers with a $200 bounty, which some consider inadequate given the vulnerability’s potential impact.

    The incident reminds crypto users of the importance of ongoing security research and responsible disclosure in maintaining the integrity of blockchain networks. It also shows the need for node operators to stay up-to-date with the latest security patches and updates.

  • Vancouver City Council Accepts Proposal for Bitcoin Adoption

    Vancouver City Council Accepts Proposal for Bitcoin Adoption

    The city council of Vancouver, Canada, has passed the motion to become a “Bitcoin-friendly city.” The return of United States President-elect Donald Trump has partially driven the move, which is seen as a step towards embracing innovation.

    Vancouver Votes for Bitcoin

    The proposal suggests allocating a portion of the city’s financial reserves to Bitcoin. It cites Bitcoin’s potential as a hedge against inflation and a means to promote innovation and economic growth. The move aims to position Vancouver as a blockchain and crypto innovation hub.

    The city’s Mayor, Ken Sim, has been a vocal advocate for Bitcoin, calling it “the greatest invention ever in human history.” He believes that conventional fiat currency will eventually become obsolete and that Bitcoin’s value will increase significantly. Sim’s enthusiasm for Bitcoin has been evident since he announced the motion in late November.

    Vancouver’s decision to adopt a “Bitcoin-friendly” policy is part of a broader trend of global interest in crypto. With other countries, provinces, and states exploring the use of Bitcoin, Vancouver wants to get ahead of the curve. The city’s reputation as a hub for digital innovation makes it an ideal location for embracing new technologies like Bitcoin.

    Meanwhile, the motion approval does not mean the city is now committed to immediate crypto investments or payments. Instead, the council has directed staff to investigate potential crypto uses and explore the possibility of making Vancouver a Bitcoin-friendly City.

    Vancouver’s Decision Raises Concerns

    The city’s decision to become a Bitcoin hub has also raised concerns among experts, who point to the asset’s price volatility and the regulatory challenges associated with investing in crypto.

    Vancouver City Council members are divided on the proposal to explore the use of Bitcoin in municipal finances. Councillor Peter Meiszner voted in favor but expressed skepticism about the city investing public money in crypto. He highlighted the difference between individual residents investing their money and the city’s financial responsibilities.

    On the other hand, Councillor Pete Fry opposed the motion, citing concerns about Bitcoin’s potential use for money laundering. He pointed out that the Vancouver Police Department had previously recommended banning Bitcoin ATMs due to money laundering risks. FINTRAC, the Canadian financial regulator, recently warned about the same issue in May.

    Embracing Bitcoin could attract new businesses and talent to the city, driving innovation and economic growth. As Vancouver explores the use of Bitcoin, it will be closely watched by other cities, countries, and investors worldwide who may follow suit.

  • Artificial Intelligence is Now Consuming More Electricity Than Bitcoin

    Artificial Intelligence is Now Consuming More Electricity Than Bitcoin

    Artificial intelligence (AI) has impacted various industries, transforming how businesses operate and interact with customers. However, this rapid growth comes with electricity consumption. Recent studies reveal that AI is now consuming more electricity than Bitcoin mining, changing the energy sector dynamics.

    AI Firms Flip Bitcoin Miners in Energy Consumption

    A few years ago, Bitcoin miners dominated the electricity market, purchasing massive amounts of power for their data centers, which resulted in concerns about the power grid’s capacity. Today, Miners are eclipsed by AI tech giants who invest heavily in AI research and development, requiring more electricity to process vast amounts of data and train complex models. 

    This surge in demand has led to a significant increase in electricity consumption, which has increased electricity costs. AI companies are willing to spend significantly more on energy than Bitcoin miners. 

    Commenting on this, Fred Thiel, CEO of Bitcoin mining firm MARA Holdings, said big tech firms like Amazon, Microsoft, and Google are willing to pay up to three times more than Bitcoin miners, who struggle to spend over $40 per megawatt. This disparity has led power producers to favor AI companies, which can absorb more power.

    The demand for electricity by AI firms has become so significant that Dominion Energy, an energy provider, metaphorically implied that data centers now require a reactor’s worth of power. Amazon Web Services’ AI data center in Virginia is an example of this trend. The facility’s electricity consumption has become a concern, highlighting the need for sustainable energy solutions.

    The rise in AI may have severe consequences for Bitcoin miners. Companies like MARA Holdings are already struggling to compete, leading to a decline in their market share. Bitcoin miners face higher costs, loan defaults, and takeover risks as AI tech firms target them to buy up their data centers.

    BTC Miners Slowdown Operations

    Bitcoin miners are slowing down their operations, mainly due to increasing energy costs and the need to adopt more sustainable practices. As a result, many Bitcoin miners are exploring alternative energy sources, such as solar and wind power, to reduce their environmental footprint and energy costs.

    A few months ago, Bitcoin miner Rhodium filed for bankruptcy in Texas. Cathedra, another miner, considered halting mining operations to focus on BTC purchases from the open market.

  • Crypto Exchange OKX Invests $5 Million in TON Blockchain

    Crypto Exchange OKX Invests $5 Million in TON Blockchain

    Crypto exchange OKX has recently announced its investment of $5 million in The Open Network (TON) blockchain. This financial backing, executed by its investment arm, OKX Ventures, and managed by TON Ventures, is focused on accelerating growth within the TON ecosystem.

    OKX Invests in TON Blockchain

    An official press release noted that the investment complements its recently launched $10 million Telegram Growth Hub, demonstrating its long-term conviction in TON’s potential to drive mainstream adoption. The exchange believes that with direct access to Telegram’s 950 million monthly active users, TON has strong potential for massive growth.

    The exchange further claimed the latest investment is a strategic move to establish a network of experienced builders and develop best practices for TON applications. Notably, The partnership between OKX Ventures and TON Ventures is expected to drive growth and innovation within the TON ecosystem and empower web3 entrepreneurs.

    Meanwhile, TON Ventures, led by former TON Foundation executives, has secured $40 million in initial funding and typically deploys investments of up to $500,000 for early-stage projects. The fund claims to have already shown early success by backing projects like DeLabs, Goat Gaming, Memetics, and Grably.

    TON Ventures focuses on backing early-stage consumer applications building on TON. In the coming months, the fund will focus on supporting mid-core gaming experiences, expanding monetization tools for creators, and growing the decentralized finance sector on TON.

    TON Attracts Big Investors

    TON has garnered significant attention and support from prominent investors, with Pantera Capital and crypto exchange Gate.io being notable examples. These investments have played a crucial role in driving the development and growth of the TON ecosystem.

    On the other hand, the TON Blockchain has experienced rapid growth in 2024, driven by its strategic partnership with Telegram’s user base. This has significantly boosted on-chain activity, with key metrics showing impressive gains. Popular Telegram apps like Notcoin, Catizen, DOGS, and TADA have driven this growth, attracting millions of users.

    According to data from the aggregator platform CoinMarketCap, the blockchain’s native crypto, Toncoin (TON), trades at $5.76 and has a $14.63 billion market capitalization. The coin experienced a 10.17% decline within the past 24 hours following a market correction that affected several digital assets, including Bitcoin.

  • Memecoin Project Floki Launches Debit Card For Crypto Payments

    Memecoin Project Floki Launches Debit Card For Crypto Payments

    Ethereum-based memecoin project Floki has announced the launch of its debit card, enabling users to spend their crypto assets worldwide. Partnering with Visa and Mastercard, the Floki team claims the debit card will become functional for users at millions of merchant locations.

    Recall that the Floki team unveiled its expansion strategy in March, transitioning the project from a memecoin to a crypto ecosystem. This initiative includes introducing debit cards, staking services, and other innovative offerings. Additionally, the highly anticipated launch of Valhalla, a metaverse blockchain game, is part of this expansion effort.

    Floki Launches Debit Card

    The Floki team boasts the debit card will feature 0% transaction fees, 0% exchange rate fees, and support for over eight blockchain networks. Users can fund their cards directly with the FLOKI token or major digital assets like Bitcoin (BTC), Ether (ETH), Tether (USDT), Binance (BNB), and Solana (SOL). TON and its tokens, including DOGS, HMSTR, and NOT, can be used for funding.

    Users have the option of physical and virtual Floki debit cards. Regarding pricing, the physical card incurs a one-time fee of €32, including shipping, while the virtual card costs €10. A 2% top-up fee applies to both options. While the physical card is currently available in 31 European countries, its twin product, the virtual card, will have a worldwide release.

    However, both products are subject to certain geographic restrictions. They are not available for use in countries under economic sanctions by the Office of Foreign Assets Control (OFAC) or restricted by the issuing banks, Mastercard, or Visa.

    Meanwhile, despite the latest development, the token’s price has remained relatively unchanged, with no significant market reaction observed following the announcement.

    Not the First

    Aside from Floki, several crypto projects have launched payment cards. These projects include Binance, Coinbase, BitPay, and Nexo. Recently, Layer-1 blockchain developer Avalanche Foundation launched a crypto Visa card.

    These cards enable users to spend their crypto in real time, enhancing the accessibility and usability of digital assets. They further aid crypto adoption by simplifying transactions and providing users with greater flexibility. Users can expect more payment solutions to emerge as the industry grows, integrating digital assets into everyday life.

  • MicroStrategy Spends $2.1 Billion to Purchase More 21,550 BTC

    MicroStrategy Spends $2.1 Billion to Purchase More 21,550 BTC

    Publicly traded company MicroStrategy has purchased 21,550 BTC for approximately $2.1 billion. The acquisition, executed at an average price of $95,976, brings its total Bitcoin holdings to 423,650 BTC, valued at around $42 billion. With this big buy, the company now boasts over 2% of the Bitcoin supply.

    MicroStrategy Purchases 21,550 BTC

    According to the company’s official filing with the Securities and Exchange Commission (SEC), MicroStrategy entered into a sales agreement in October. This agreement allows the company to issue and sell shares of its class A common stock with an aggregate offering price of up to $21 billion. The sales further enabled the firm to fund its recent Bitcoin purchases, including the latest acquisition.

    It’s worth noting that MicroStrategy’s CEO, Michael Saylor, has been a strong advocate for Bitcoin, and the company’s investment strategy has been focused on accumulating the pioneer crypto. While commenting on the latest purchase, the firm’s executive chairman expressed that its BTC yield has reached 43.2% quarter-to-date (QTD) and 68.7% year-to-date (YTD).

    Meanwhile, a few days before the purchase announcement, the Bitcoin Maximalist, Saylor, suggested via an X post that the United States sell its $500 billion gold reserve and invest in a strategic Bitcoin reserve, mirroring El Salvador’s approach. He believes the move would benefit the U.S. economy and solidify its position as a financial innovation leader.

    Interestingly, the company’s latest move marks its fifth consecutive week of Bitcoin purchases, following last week’s acquisition of 15,400 BTC for $1.5 billion at an average price of $95,976 per BTC.

    BTC Garners More Attention

    As the world’s first and largest crypto, coupled with the recent surge in value, BTC has gained more attention lately with other firms investing in the digital asset. Today, the Bitcoin miner Riot announced plans to offer $500 million in convertible senior notes to invest in bitcoins. As more firms invest in BTC, the crypto will likely continue to gain traction and attention.

    As Bitcoin’s popularity and value continue to rise, it has also drawn the attention of critics. Peter Schiff, a former U.S. Senate candidate from Connecticut, has labeled Bitcoin “public enemy number one,” likely referring to the BTC reserve initiative backed by Donald Trump and other prominent figures in the Republican Party.

  • South Korea to Permit Institutions to Accept Crypto Donations

    South Korea to Permit Institutions to Accept Crypto Donations

    The South Korean government plans to allow institutions, including universities and local governments, to cash out donated and confiscated crypto starting next year. If this is realized, it will gradually allow corporations to open virtual asset won accounts. Notably, the authorities previously blocked these from opening such accounts.

    A virtual asset won account is a type of digital asset account that allows users to manage and store digital assets, such as crypto and other digital currencies.

    Interestingly, many worldwide nonprofits already accept crypto donations, reflecting its growing recognition as a legitimate donation means. Some notable examples include the American Cancer Society and the American Red Cross. These organizations have partnered with crypto payment processors like Coinbase to accept donations in various digital assets.

    Accepting Crypto Donations

    In line with the latest plans, South Korea’s Financial Services Commission is set to release a roadmap by the end of this month for allowing corporations to open virtual asset won accounts. Currently, corporations can not open these accounts because banks restrict issuance based on anti-money laundering guidelines.

    The plan is to roll out the account opening in phases, starting with central government ministries, local governments, public institutions, universities, and non-profit corporations. These entities will only need to cash out donated virtual assets rather than invest in crypto.

    In the second stage, crypto exchanges and related businesses can open won accounts. The government claims to advance the crypto industry by allowing businesses to open their accounts. However, there are concerns that the Asian country is slow in allowing general and financial companies to engage in other crypto transactions.

    Why the New Plan?

    South Korea’s financial authorities have explained that allowing corporations to hold virtual asset won accounts is a necessary step, given the existing reality of the crypto market. Despite maintaining that crypto is not an investment asset, the authorities acknowledge the need to institutionalize it, especially considering United States President-elect Donald Trump’s proposal to stockpile 1 million BTC.

    However, the authorities are cautious, restricting account issuance to general corporations and financial institutions until detailed regulations and infrastructure are established. Additional legislation is required to address the needs of the crypto market fully.

    Meanwhile, as the use of crypto for donations continues to grow, more institutions, ministries, and local governments in South Korea and other parts of the world are likely to explore this new funding method.

  • South Korean Crypto Investor Bags 5 Years Jail-Term Over $427,800 Theft

    South Korean Crypto Investor Bags 5 Years Jail-Term Over $427,800 Theft

    A South Korean court has sentenced a civil servant to five years in prison for embezzling approximately $427,800 (600 million won) in public funds. The civil servant at Cheongju City Hall was responsible for student work activities and North Korean defector settlement support projects.

    Sentenced to Five Years Jail-Term

    The embezzlement, which started in January 2017, lasted seven years and involved forging various official documents. The stolen funds were used to invest in crypto and stocks. He also used part of it to pay off personal debt.

    The civil servant likely invested the embezzled funds in crypto, intending to make returns and replace the money before being caught. This strategy, often called “robbing Peter to pay Paul,” is common in embezzlement and other financial misconduct cases.

    Perpetrators often attempt to use investments or other financial instruments to replace stolen funds, but these schemes can be complex and challenging to sustain. Whichever reasons he may have had for investing in crypto with stolen funds, the plan ultimately backfired, and he was caught and brought to justice.

    Judge Kwon No-eul of the Cheongju District Court stated that the defendant’s repeated offenses over a long period, combined with the fact that only a portion of the damages were paid, contributed to the severity of the sentence.

    Not the First

    Recently, a Chinese government official was also sentenced to life imprisonment for betraying national trust by selling classified state secrets to an unauthorized third party. Foreign agents exploited his vulnerability, offering him compensation for classified data. He eventually supplied the internal documents for significant sums, receiving over $140,000 via crypto transactions. 

    Chandrahar SR, a former Indian police inspector, was also charged with stealing about $216,000 worth of Bitcoin from hackers. As part of the investigation team, he allegedly accessed the hackers’ Bitcoin wallets and transferred the funds to his accounts while destroying the evidence to cover his tracks.

    Officials’ misuse of power to engage in criminal activities can have far-reaching consequences. To prevent such abuses, the government should have robust systems of accountability and transparency in place. This includes measures such as periodic investigations and whistleblower protection laws.

  • Coinbase CEO Says US Govt Should Never Sell BTC, Amid Market Panic

    Coinbase CEO Says US Govt Should Never Sell BTC, Amid Market Panic

    Coinbase CEO Brian Armstrong recently posted on X (formerly Twitter) that the United States government “should never sell” its Bitcoin holdings. Notably, the U.S. authorities have a history of selling confiscated Bitcoins, including a previous sale of 9,861 BTC worth $216 million in March 2023.

    The statement comes after a recent transaction has ignited concerns that the U.S. government might be planning to sell its seized Bitcoins. A wallet tagged by Arkham as “U.S. government: Silk Road” transferred 10,000 BTC, worth over $954.6 million, to Coinbase.

    It’s worth noting that the U.S. government still holds around $17.5 billion worth of Bitcoin, alongside other crypto assets like ETH and USDT. The fate of these holdings remains uncertain, and the recent transfer to Coinbase has only added to the speculation.

    A Huge Strategic Mistake

    The coinbase CEO attached another tweet belonging to a U.S. Space Force major, Jason Lowery, who noted his strong belief that the U.S. government selling its Bitcoin holdings would be a “huge strategic mistake.” 

    He further emphasized that there is no price point at which selling Bitcoin would make sense for the U.S. government, implying that Bitcoin’s long-term value and potential are too great to be sold. Lowery also criticized the government for not fully understanding the value and implications of the Bitcoin they hold.

    Interestingly, Bitcoin’s consistent value appreciation since its inception makes it a potentially lucrative investment for the U.S. government. By holding its Bitcoin, the authorities could benefit from the potential growth. It could also provide a diversification benefit, reducing dependence on traditional assets like gold and foreign currencies. 

    Furthermore, as a leader in financial innovation, the U.S. selling Bitcoin could be perceived as a lack of confidence in the crypto’s potential. This would set a precedent, potentially encouraging other governments to follow suit and sell their holdings.

    Speculations Met With Hopium

    Coinbase involvement in the latest government BTC transaction does not necessarily mean a sale is imminent. Coinbase Prime has secured a contract with the U.S. Marshals Service to manage its digital assets. Hence, users should note that the sales are only speculation.

    Meanwhile, President-elect Donald Trump’s vow to build a strategic Bitcoin reserve for America has given investors hope. His plan could potentially boost the market and increase investor confidence, leading to a sense of optimism among investors who believe that Trump’s plan will be realized.