Cryptocurrencies To Watch

Author: Sincerity Jahswill

  • Google Cloud Invests $10 Million in BNB Chain MVB Program

    Google Cloud Invests $10 Million in BNB Chain MVB Program

    BNB Chain’s Most Valuable Builder (MVB) program received $10 million in support from Google Cloud. According to a recent official announcement, the investment will sponsor up to 40 projects building decentralized applications on the BNB Chain.

    Google Cloud Supports BNB Chain

    The MVB Program is a competitive 4-week incubator program jointly hosted by BNB Chain, Binance Labs, and CMC Labs. It provides mentorship, resources, and potential direct investment opportunities from Binance and is designed to foster the growth of the decentralized ecosystem.

    As part of the partnership, selected projects will also receive additional support to fuel their growth. AI-first Web3 projects will be eligible for up to $350,000 in cloud credits over two years, while non-AI-related Web3 projects will receive up to $200,000 in cloud credits over the same period.

    These cloud credits will enable MVB projects to leverage Google Cloud’s infrastructure. Overall, the support will assist select startups in reducing operational costs, accelerating development, and focusing on building impactful decentralized applications.

    Not Just BNB Chain

    While Google Cloud invested $10 million in BNB chain’s MVB program, it also partnered with ZetaChain, another layer-1 blockchain. The blockchain will utilize Google Cloud’s Web3 validator services to bolster the security and decentralization of its ecosystem, as stated in an announcement.

    As a validator, Google Cloud will contribute to ZetaChain’s blockchain integrity, block verification, and network consensus. Commenting on this move, Google Cloud’s Head of Web3 Strategy, Richard Widmann, said:

    “At Google Cloud, we’re committed to empowering developers with the tools and infrastructure they need to build the future of decentralized applications, our secure cloud infrastructure and validator capabilities will help ZetaChain grow its Universal Blockchain and unlock interoperability for Web3 developers.”

    On the other hand, ZetaChain has pledged to delegate one million ZETA tokens to five validators operating on Google Cloud infrastructure. The blockchain developer believes its partnership with the cloud storage firm will make on-chain activities more accessible and efficient for developers and validators.

    Big Players Eye DeFi

    Decentralized finance has gained significant traction lately, and major players are investing heavily. Crypto exchange Gate.io has invested $10 million in The Open Network (TON) blockchain. In comparison, Bitget and Foresight Ventures have jointly invested $30 million to boost the adoption of emerging trends within the TON ecosystem.

    Binance co-founder Chenpeng Zhao, who is worth over $61 billion, has also expressed interest in supporting blockchain projects. These investments and partnerships will likely fuel innovation and growth in the DeFi sector, enabling the development of new financial products and services.

  • Crypto Mining Chip Designer Nano Labs Adopts Bitcoin Payments

    Crypto Mining Chip Designer Nano Labs Adopts Bitcoin Payments

    China-based crypto mining chip designer Nano Labs has announced that it will now accept Bitcoin as payment for its goods and services. Surprisingly, this move by the publicly traded company comes at a time when crypto transactions remain banned in its home country.

    Nano Labs Adopts Bitcoin Payments

    Nano Labs mentioned it has created an account with the American exchange Coinbase to facilitate Bitcoin payments. The registration will enable the company to securely process crypto transactions, providing clients and partners a faster payment experience.

    The company claims its primary reason for accepting Bitcoin payments is to cater to the growing demand for crypto transactions in the technology sector. It believes that by embracing Bitcoin, the Chinese firm will enhance its global transaction capabilities, offering its clients and partners greater payment flexibility.

    The company’s announcement claims that the latest crypto stance aligns with its long-term vision of being at the “forefront of technology advancements and delivering added value to clients worldwide.”

    Why Choose Coinbase?

    As Nano Labs embraces Bitcoin payments through the Coinbase platform, it’s essential to consider potential drawbacks. Crypto transactions can be volatile, with rapid value fluctuations. For instance, if a customer pays the chip designer in bitcoins, its value may drop significantly before conversion to fiat currency, impacting revenue.

    Although Nano Labs did not mention it, it is worth noting that the tech firm may have been impressed by Coinbase Commerce’s real-time and automatic conversions, which fixed the challenge mentioned earlier. The American exchange claimed that the payment system eliminates slippage during market fluctuations, benefiting businesses like Nano Labs.

    Additionally, Nano Labs can navigate China’s crypto ban by utilizing Coinbase’s payment processing system while still accepting Bitcoin payments. This is possible because Coinbase operates outside China’s jurisdiction.

    Crypto Payment Adoption Keeps Growing

    Crypto payments are gaining traction globally, with various industries and governments embracing the technology. El Salvador made Bitcoin legal tender in 2021, while the Central African Republic followed suit in 2022. Recently, the Dubai Court of First Instance recognized crypto as a valid form of payment for employee salaries.

    Companies like Microsoft, AT&T, and Tesla have also started accepting crypto payments. A few weeks ago, Skylux Travel launched a crypto payment platform powered by Triple-A, a US-licensed crypto payment company. As the BTC price soars, more firms might be interested in adopting it as a means of transaction.

  • Defunct FTX Seeks $1.8 Billion Recovery from Binance

    Defunct FTX Seeks $1.8 Billion Recovery from Binance

    The bankrupt crypto exchange FTX has made several headlines since its collapse in 2022. It recently filed a lawsuit in the bankruptcy court of Delaware against Binance and its former CEO and co-founder, Changpeng Zhao (CZ). The defunct exchange wants to recover $1.8 billion, which it claims to have been fraudulently transferred to Binance.

    FTX Sues Binance

    The lawsuit involves a 2021 transaction that was part of a share repurchase deal worth $1.76 billion. Binance and its executives, including the co-founder CZ, sold their stakes in FTX back to the company’s co-founder, Sam Bankman-Fried (SBF). The stakes were significant, with Binance owning 20% of FTX’s international unit and 18.4% of its US-based entity.

    To pay for the shares, Bankman-Fried used a combination of FTX’s native token (FTT), Binance-affiliated crypto BNB, and Binance USD (BUSD). At the time, the deal seemed like a regular legal business transaction — however, the lawsuit claims otherwise, alleging that the transaction was entirely fraudulent and, hence, invalid.

    The filing mentioned that FTX may have already been insolvent from its inception and did not have enough assets to cover its debts, implying that SBF’s payment was fraudulent. As a result, the exchange’s bankruptcy estate is suing Binance and Zhao to recover the $1.8 billion, claiming the transaction was fraudulent and should be reversed.

    The filing also accused CZ of posting false, misleading tweets that contributed to FTX’s collapse. It claims the tweet announcing Binance’s intention to sell FTT triggered massive withdrawals from the platform and resulted in more market panic, which impacted FTT’s decline. It believes the actions were mainly designed to destroy the rival exchange.

    FTX in a Suing Spree

    As part of its bankruptcy proceedings, FTX is taking legal action to recover funds to repay its creditors, which has led to multiple lawsuits. Last week, it sued Crypto.com, a Singapore-based exchange, to recover $11.4 million in assets held in Alameda Research’s account on the platform.

    FTX is also seeking to recoup funds from Bankman-Fried’s influence-buying campaign. The lawsuit alleged that Scaramucci’s SkyBridge Capital investments did not benefit the defunct exchange. Its trading arm, Alameda Research, also sued Aleksandr Ivanov, founder of Waves and affiliated entities, to recover at least $90 million.

    As FTX’s Estate executes its bankruptcy plan, the crypto industry anticipates more legal battles, targeting individuals and entities that received funds from FTX before its collapse.

  • Bankrupt FTX Sues Crypto.com to Recover $11.4M Alameda Funds

    Bankrupt FTX Sues Crypto.com to Recover $11.4M Alameda Funds

    The bankrupt crypto exchange, FTX, has filed a lawsuit against Singapore-based Crypto.com, seeking to recover $11.4 million in assets held in Alameda Research’s account created in the Crypto.com platform. While the dispute is already within the FTX bankruptcy case in the United States, it requires the court’s hearing to resolve the conflict between the parties.

    Why Sue Crypto.com?

    According to FTX claims, its trading arm, Alameda, had funded and controlled the account housing the fund. Following the exchange’s November 2022 bankruptcy filing, Crypto.com locked the account, withholding the said assets contained in it. Despite repeated requests, it refused to cooperate with FTX’s demands for asset return, prompting the lawsuit.

    Surprisingly, FTX acknowledged that Crypto.com also maintained two accounts on its platform, holding $18.63 million. The lawsuit alleged the Singapore-based exchange violated bankruptcy laws by retaining estate property without authorization.

    FTX wants the court to dismiss all of Crypto.com’s claims associated with funds that are custodied by the bankrupt exchange unless it first returns all Alameda assets. The exchange further claimed in the filing that successful recovery of the funds would significantly aid its bankruptcy proceedings.

    Meanwhile, after being sued by FTX, the Singapore-based exchange initiated a lawsuit against the U.S. Securities and Exchange Commission (SEC), aligning with other “industry peers.” It claims the legal move aims to challenge unauthorized regulatory actions and safeguard the future of the crypto market.

    FTX’s Collapse Triggers Several Lawsuits

    Since the fall of FTX, different filings associated with the scandal have surfaced. The defunct exchange has recently initiated a lawsuit against imprisoned Ryan Salame, former co-CEO of its Bahamian subsidiary, seeking reimbursement of approximately $98.8 million in cash and crypto. The lawsuit alleged that Salame intentionally facilitated the misappropriation of customer assets by FTX executives.

    Nikolas Gierczyk, a California-based FTX customer, has also filed lawsuit against Olympus Peak hedge fund, alleging breach of contract. He sold his $1.59 million FTX claim to Olympus Peak for $930,000, retaining rights to additional recoveries. With FTX’s bankruptcy plan approved, the firm may receive more, but allegedly refused to honor Gierczyk’s residual rights.

  • Chinese Official Bags Life Sentence After Trading State Secrets for Crypto

    Chinese Official Bags Life Sentence After Trading State Secrets for Crypto

    A Chinese local media has recently reported a case involving Wang Moumou, a government official entrusted with sensitive information within a confidential unit. He was sentenced to life imprisonment for betraying national trust by selling classified state secrets to an unauthorized third party.

    Chinese Official Trades State Secrets

    The story starts with Moumou’s financial struggle. He faced monetary crises after investing borrowed funds into crypto, which only accrued losses instead of expected gains. Desperate and frustrated, he started seeking a part-time online job while revealing his government position and high debts.

    Soon after the post, foreign agents contacted him, offering compensation for classified data. Initially hesitant, Moumou’s resolve crumbled, and he supplied internal documents for the agreed sums. His greed intensified, leading him to provide increasingly sensitive information to his clients.

    Eventually, the Ministry of State Security agents uncovered Moumou’s treasonous activities, revealing he had received over $140,000 via crypto transactions involving monera tokens. Convicted of espionage, the national betrayer received life imprisonment and permanent revocation of political rights.

    Nonetheless, Moumou’s case is not the first or only crypto crime perpetrated by a government official. India’s Former Central Crime Branch inspector Chandrahar SR was charged with illegally accessing hackers’ Bitcoin wallets, stealing $216,000 worth of BTC, and destroying evidence. The hackers had stolen $660,000 from exchanges.

    Moumou’s life imprisonment sentence reflects China’s stance on national security and crypto transactions. His treason charges, combined with his violation of the country’s crypto ban, likely led to the harsh penalty. However, the Asian nation has not always been hostile to crypto.

    China’s Stance on Crypto

    China was one of the first countries to embrace crypto. It was home to the exchange BTC China, which launched in 2011 and sparked growth. Baidu, the country’s largest search engine, accepted Bitcoin in 2013, and Bitmain dominated global mining in 2014.

    Security concerns led its regulators to ban initial coin offerings (ICOs) in 2017. It completely banned crypto transactions in 2021, which also affected Bitcon mining firms in the country. While there have been rumors of plans to lift the ban, there has not been any official announcement validating it.

    Meanwhile, Hong Kong, a pro-crypto city, has its own jurisdiction, which separates it from mainland Chinese financial regulations. Recently, it announced its plans to implement regulatory frameworks for stablecoins.

  • Watch Out: Crypto Crimes on the Rise as the Market Surges

    Watch Out: Crypto Crimes on the Rise as the Market Surges

    This week, the crypto market has been experiencing a price upswing, driven by favorable economic developments, including the recent election and FOMC results, with Bitcoin leading the surge. However, this optimism is tempered by crypto-related crimes, which have affected its victims either financially or emotionally.

    Three Crypto Crimes This Week

    Earlier this week, Rooch Network co-founder Haichao Zhu narrowly escaped robbery in Bangkok, targeted upon arrival for Ethereum’s Devcon conference. Likely recognizing his connection to the crypto event, two men wielding knives stole his phone, suggesting that their primary motive was crypto theft as the phone might grant them access to his digital wallet.

    On Wednesday, a Canadian news outlet reported that Dean Skurka, CEO of WonderFi, a Toronto-based crypto firm, was kidnapped downtown during rush hour and released after a $1 million ransom was paid electronically. The incident occurred near University Avenue and Richmond Street West, with Skurka being forced into a vehicle by suspects demanding money.

    The same day, Forbes reported that the Hellcat ransomware group, led by spokesperson Grep, breached Schneider Electric’s developer server, stealing 40GB of data and demanding $125,000 in Monero cryptocurrency. Initially, they jokingly requested payment in French bread.

    Security researcher Hüseyin Can Yuceel considers this a marketing stunt to establish credibility for future ransomware-as-a-service operations. Schneider Electric confirmed the incident and assured its users that products and services remain intact, claiming its Global Incident Response team is investigating.

    Staying Safe Amidst Crypto Crimes

    Crypto crimes include scams and schemes aiming to exploit investors by stealing digital or physical assets. Phishing scams create fake websites or emails resembling legitimate platforms, while Ponzi and pyramid schemes promise unrealistic returns. Fake initial coin offerings (ICOs) and pump-and-dump schemes artificially inflate prices, leaving investors vulnerable.

    As crypto prices surge, more scams targeting industry newcomers are likely to surface. Users can watch for red flags, including unusually high returns, lack of transparency, pressure to invest quickly, unsolicited offers, and manipulative marketing tactics. Legitimate projects provide detailed information, credible teams, and clear objectives.

    Crypto investors can protect themselves by researching projects thoroughly and using secure wallets and connections. Users can enable two-factor authentication, rely on credible sources, and stay updated on crypto trends and security measures. Background checks, whitepaper analysis, and community feedback can also help verify legitimacy.

  • Massive Week: Investors Pump Over $350 Billion Into Crypto Market

    Massive Week: Investors Pump Over $350 Billion Into Crypto Market

    The crypto market had a rollercoaster week, full of unexpected twists and turns. It began with a dip, causing the market to shrink to $2.19 trillion, as Bitcoin and other altcoins experienced a significant drop in value. However,  it all changed for the opposite as the market rebounded with a massive inflow of over $350 billion, catapulting its value to $2.54 trillion, according to CoinMarketCap data.

    Bitcoin’s price surge has been impressive. It jumped over 13% from its lowest in the week to break $76,000 and shatter its previous record set in March. Investors and analysts see this uptrend as promising and predict more highs for the pioneer crypto.

    What’s Driving the Week’s Market Rally?

    This surge is largely attributed to Trump’s pro-Bitcoin stance and proposed policies, such as eliminating taxes on Bitcoin transactions and establishing a strategic BTC reserve. These moves have generated a bullish sentiment in the crypto community, leading to a significant inflow of funds by institutional investors.

    The bullish sentiment is further motivated by expectations of favorable regulatory changes that will take the crypto industry into its next growth phase. Investors anticipate a more lenient and clarity-driven approach from regulators during Trump’s tenure as the U.S. president. Most market participants seem optimistic that a pro-crypto regulatory environment will advance the industry.

    Further Probe Into the Week 

    While Bitcoin surged to an all-time high, Ether, the world’s second-largest crypto, also increased by over 20%. Dogecoin, Elon Musk’s favored token, skyrocketed by 42%. The token’s rally is unsurprising, as Elon supported Trump during the election campaigns, and the president-elect acknowledged it during his post-win speech.

    Solana has also seen a 25% increase in value this week. Notably, Geoffrey Kendrick, Global Head of Digital Assets Research, predicted that Trump’s economic policies and administration could significantly increase SOL price, outperforming Bitcoin and Ether. 

    Interestingly, Crypto-related stocks have also surged alongside crypto, outperforming the broader market. Coinbase jumped over 40%, while Robinhood Markets and MicroStrategy increased 26.55% and 7%, respectively. 

    Meanwhile, at press time, the crypto market capitalization stands at $2.5 trillion, a 2% increase over the last 24 hours. Bitcoin’s dominance is 59%, with Ethereum’s market cap at $342.82 billion.

  • Coinbase Embraces Solana Further With Wrapped Token cbBTC Launch

    Coinbase Embraces Solana Further With Wrapped Token cbBTC Launch

    Today, the American crypto exchange Coinbase announced that it has deployed its Wrapped BTC (cbBTC) on the Solana blockchain. The token, which marks the exchange’s first innovation in Solana, is currently available on three networks, including Base and Ethereum.

    Coinbase Launches cbBTC on Solana

    A wrapped token is a crypto that represents another asset, typically from a different blockchain, encased in a new token. These types of tokens enable cross-chain interactions and increase liquidity by allowing the original assets to be traded on other networks.

    According to Coinbase, cbBTC allows seamless transactions between Bitcoin and Solana, with automatic conversions at a 1:1 ratio. When users send Bitcoin from Coinbase to Solana, it is exchanged for cbBTC, and when receiving cbBTC, it’s converted back to Bitcoin. Coinbase believes this latest move will foster more excellent crypto ecosystem connectivity and DeFi adoption.

    To alert the crypto community to the possibilities of the wrapped SPL token, Coinbase tweeted about some big players in the Solana ecosystem. These protocols, including Jupiter, Meteora, Kamino, Jito, Drift, Raydium, and Orca, may add cbBTC to their offerings soon. Users hope to start lending, borrowing, trading, and facilitating liquidity for the new token as offered by the DApps.

    Not the First on Solana

    Solana’s Bitcoin ecosystem is expanding with the addition of cbBTC, joining other existing tokens such as tBTC and WBTC. These tokens also offer tokenized Bitcoin solutions but differ in security and design. WBTC holds Bitcoin with a single custodian, whereas tBTC uses a decentralized, validator-controlled wallet. 

    WBTC, the first and largest wrapped bitcoin by Marketcap, and tBTC are also available across other blockchains, including Ethereum, Arbitrum, Optimism, and Polygon. Currently, WBTC’s circulating supply is $147,007. Its $11.24 billion market share is significantly higher than cbBTC’s $1.03 billion. 

    Notably, the presence of other wrapped Bitcoin tokens will enhance Solana’s ecosystem, providing users with more choices and flexibility. Meanwhile, its native token, SOL, has been growing in value. It recently flipped the Binance-affiliated token BNB, coming in fourth place in market capitalization, while analysts predict it will outperform Ether and BTC.

    Other Wrapped token creators like Kraken may deploy their kBTC to Solana soon.

  • Crypto Exchange Binance Seeks Dismissal of SEC Lawsuit Amendment

    Crypto Exchange Binance Seeks Dismissal of SEC Lawsuit Amendment

    Attorneys for Binance and its former CEO, Changpeng Zhao, have submitted a new motion requesting the district court to dismiss the lawsuit filed by the United States Securities and Exchange Commission (SEC).

    The lawsuit, filed in June 2023, accused Binance and Zhao of operating unregistered exchanges, broker-dealers, and clearing agencies and misrepresenting trading controls on the platform. The SEC also charged the exchange with violating unregistered sales of BNB and BUSD tokens.

    SEC Amends Lawsuit

    The SEC recently amended the lawsuit, adding new charges accusing Binance of being involved in securities transactions. These transactions include reselling tokens created by others, developers selling their tokens, initial exchange offerings (IEOs), paying employees with BNB, and depositing crypto assets into the Binance Simple Earn program.

    Notably, to determine if these transactions fall under SEC authority, each must meet the Howey test, which requires an investment contract, expectation of profits, investment in an enterprise, and profit derived from others’ efforts.

    Binance Responds to Lawsuit Amendments

    Binance claims reselling tokens is not a securities transaction. It explained that when buyers and sellers trade, they are unknown to each other and do not invest in the enterprise. It further noted that tokens have everyday uses like payment, fees, and gaming and do not meet the Howey test for securities.

    The pioneer exchange also argued that developers selling their tokens are similar to resales and lack investment contract features. According to the filing, tokens are marketed for use cases, not investment, and buyers do not expect profits from developers’ efforts.

    Concerning paying employees with BNB, the exchange attorneys claim the token is an alternative currency, not an investment. Hence, while employees receive payment in the Binance-affiliated coin, they are not investing in Binance. The lawyers further argued that  Simple Earn is not an investment contract. Instead, users deposit crypto and receive interest but do not buy shares.

    Binance Legal Woes in U.S.

    Aside from regulatory lawsuits, Binance has also faced other legal challenges. Earlier this year, the exchange was sued by U.S. victims and families affected by the 2023 Hamas-led attack on Israel, alleging that Binance facilitated Hamas’s terrorist activities by providing funding.

    In Q2 2024, its founder was sentenced to four months in prison for violating U.S. money laundering laws. As part of a settlement with the U.S. Department of Justice, it paid $4.3 billion in fines, and Zhao stepped down as CEO of Binance.

  • Telecom Giant Deutsche Telekom (Valued at $152B) Dives Into Bitcoin Mining

    Telecom Giant Deutsche Telekom (Valued at $152B) Dives Into Bitcoin Mining

    MMS, a Deutsche Telekom subsidiary, has announced its partnership with financial institution Bankhaus Metzler to operate a Bitcoin mining infrastructure. According to the official blog post, the firms’ collaborative move is only a test or pilot project intended to gain insights for future project planning.

    Why Test Bitcoin Mining?

    The partners observed that the energy grid faces new challenges as renewable energy sources like solar and wind power grow. Weather-dependent production peaks make it harder to balance supply and demand, stressing the grid. It further claims innovative solutions are needed to stabilize the grid, thus addressing the challenge.  

    The firms unanimously believe that one solution is utilizing surplus energy for Bitcoin mining. Citing other countries where this mining method is successful, the duo claims the approach will help regulate power and balance the grid. By harnessing excess energy, Bitcoin mining reduces waste and promotes power sustainability.

    The pilot project, which will be executed in Germany, will expose strategies to enhance grid stability and avoid energy fluctuations or outages. While mentioning the benefits, the report added that the proposed solution will reduce energy waste. Producers and operators of power-related facilities will also benefit from the technology.

    Bitcoin Mining Interest Stalls

    The pilot project comes at a time of dwindling interest in Bitcoin mining. Enthusiasm for the network-securing process has recently slowed due to several factors, including regulatory uncertainty. Rising global energy costs have also impacted profitability, making mining less attractive. 

    The 2024 halving event reduced miner revenue by cutting block rewards to 3.125 BTC. Cathedra, a Bitcoin mining company, recently mentioned its plans to pause mining due to the decreased rewards from the halving event. It wants to invest profits into buying Bitcoin directly, following MicroStrategy’s strategy of increasing shareholder value and maintaining industry presence. 

    Northern Data, a German tech firm, also announced plans to sell its Bitcoin mining unit, Peak Mining, and shift focus to artificial intelligence (AI). The company believes the move will transform it into an AI solutions provider, operating Europe’s largest generative AI cloud platform and advanced data centers.