Cryptocurrencies To Watch

Author: Sincerity Jahswill

  • Michael Saylor Wants MicroStrategy to Become the World’s Leading Bitcoin Bank

    Michael Saylor Wants MicroStrategy to Become the World’s Leading Bitcoin Bank

    Michael Saylor, the executive chairman of business intelligence company MicroStrategy, aims to transform the firm into a trillion-dollar value and become the world’s leading Bitcoin bank. He unveiled this vision during an interview with analysts at asset management firm Bernstein.

    What Fuels Saylor’s Vision?

    Microstrategy’s investment thesis positions Bitcoin as the standout performer of the 21st century. Its chairman views the pioneer crypto as a groundbreaking form of digital wealth that provides unparalleled protection against inflation and a robust store of value over time.

    Another source of Saylor’s conviction in bitcoin’s potential stems from the asset’s unique ability to attract investors seeking substantial returns despite its volatility. As the asset matures, the co-founder predicts it will become an invaluable component of both institutional and retail investment portfolios.

    How Will MicroStrategy Achieve This?

    Saylor plans to raise hundreds of billions through various financial instruments, including convertible notes and preferred stock, which will be used to purchase bitcoins. He predicts MicroStrategy’s value will skyrocket, dominating options and equity markets. 

    Anticipating Bitcoin’s price will reach millions per coin, Saylor believes MicroStrategy will become a trillion-dollar company, leading the financial industry. However, the vision does not end up being highly valued financially.

    Having a significant amount of bitcoins worth trillions of dollars, MicroStrategy will become the leading Bitcoin bank, creating a wide range of BTC-based financial instruments such as equity, convertibles, fixed income, and preferred shares. 

    Saylor’s Unusual Banking Model

    The MicroStrategy’s co-founder shared his unconventional approach to Bitcoin banking. Unlike traditional banks, it will borrow funds but not lend them out. Instead, the Bank will invest borrowed funds in bitcoin, leveraging its attractive average annual growth yield. This strategy, known as capital markets arbitrage, will generate returns without counterparty risk.

    Saylor believes borrowing $1 billion at fixed income rates and investing in Bitcoin at a 50% annual return rate is more intelligent than lending to individuals or corporations at 12-14%. Even in a bear market, he predicts BTC will grow 22% annually over the next decade, questioning who can match the interest rate.

    He further urges other institutions to adopt Bitcoin as a treasury reserve asset, arguing that traditional balance sheet management destroys shareholder value. Firms like Semler Scientific and Marathon Digital have already taken this stance, and Saylor expects more to follow.

  • Crypto Exchange Bitnomial Sues US SEC Over XRP Regulation

    Crypto Exchange Bitnomial Sues US SEC Over XRP Regulation

    Bitnomial, a Chicago-based derivatives crypto exchange, has sued the United States Securities and Exchange Commission (SEC) over the classification of XRP as a security. The lawsuit has been filed in Illinois federal court. 

    Bitnomial Engages SEC in Legal Battle

    The lawsuit comes after the derivatives exchange sought to list XRP futures contracts in August but got objected to by the SEC.  Before that, Bitnormal had already been approved by the Commodity Futures Trading Commission (CFTC).  

    The SEC asserted that XRP futures constitute securities, requiring Bitnomial to register as a securities exchange before listing the contracts. In response, the exchange claimed it could not comply with the legal requirements since XRP has not been registered as a security by the issuer, Ripple Labs.

    Bitnomial Argues in Filing

    Bitnomial argued that the SEC is overstepping its authority by claiming jurisdiction over XRP. The exchange claims XRP is already regulated by the CFTC as a commodity, making the securities regulator’s involvement unnecessary.

    In its argument, Bitnomial cited the recent court ruling in the SEC’s lawsuit against Ripple Labs. The court rejected the SEC’s claim that XRP constitutes a security. The derivatives exchange leveraged this decision to challenge the SEC’s jurisdiction, contesting that Ripple should not be subject to the same regulations as securities.

    Bitnomial concluded the argument by acknowledging that it will face severe consequences if the court doesn’t intervene. The SEC’s stance forces the exchange to choose between two unacceptable options. It can either abandon plans to list XRP Futures, wasting invested time and resources, or list it and risk penalties.

    Given the harm the dilemma would cause Bitnomial’s business and reputation, the exchange sought the court’s intervention to resolve the regulatory conflict and prevent further damage. The company wants a court order confirming XRP futures are not securities and blocking SEC jurisdiction and enforcement actions over the derivatives.

    Not the First in a Week

    Bitnomial’s lawsuit against the SEC is not an isolated case. Crypto.com, another digital asset exchange, filed a similar lawsuit on Tuesday, specifically challenging the SEC’s broad classification of crypto assets as securities.

    Notably, if XRP is deemed a security, it could significantly impact its value and adoption. The outcome of these lawsuits will set a precedent for crypto regulation in the U.S., clarifying the boundaries between securities and commodities.

  • Uniswap Labs Launches Ethereum L2 Network Unichain

    Uniswap Labs Launches Ethereum L2 Network Unichain

    Uniswap Labs, the creator of the decentralized exchange, Uniswap, announced the launch of its Layer-2 blockchain, Unichain. The developers claim the innovation will tackle the limitations of Ethereum. 

    Why Unichain?

    While Ethereum features decentralization as the key element of DeFi, it has limited affordability. Uniswap Labs claims Unichain will address this by shifting execution to Layer-2, lowering transaction costs by 95%

    Uniswap Labs further brags that its new Layer-2 will execute near-instant transactions. It stated that at launch, Unichain will feature 1-second block times, and will later be upgraded to feature 250 milliseconds “sub-blocks” for seamless user experiences. The blockchain developer claims this innovation will enhance user experience and improve market efficiency.

    The Uniswap operators acknowledged that the presence of other Layer-2 solutions has resulted in poor liquidity. With the ERC-7683 standard and partnership with OP Labs as part of the Optimism Superchain, Unichain will be interoperable, allowing users to access cross-chain liquidity without worrying about which chain they are on. 

    Uniswap Labs Invites Testers

    The decentralized exchange creator announced that Unichain’s testnet is now live, and the mainnet will be launched later this year. The team invites the crypto community to experience Unichain by interacting and completing test transactions. 

    Developers who wish to deploy on the new layer-2 can start building on it by using the Unichain Builder Toolkit, a suite of resources. To incentivize on-chain activity, the Uniswap Foundation will support developer engagement through grants, hoping this will foster innovation and growth within the Unichain ecosystem.

    Unichain Launches Amidst Regulatory Uncertainty

    It is worth noting that the new layer-2 comes at a time Uniswap Labs, received a Wells notice from the Securities and Exchange Commission (SEC) warning of potential legal action for alleged securities law violations. 

    In response, the DEX operator filed a 40-page document arguing against the SEC’s claims. It noted that Uniswap’s decentralized nature and autonomous protocol distinguish it from traditional securities exchanges or brokers and that it is prepared to fight the regulator’s claims.

    Meanwhile, UNI, Uniswap’s native token experienced a price increase of over 3.4% after the announcement and traded at $8.39 at the time of writing despite the price decline in the crypto market.

  • Mango Labs Sues Ex-Employees Over Alleged $10M Embezzlement

    Mango Labs Sues Ex-Employees Over Alleged $10M Embezzlement

    Mango Labs, the operator of Solana-based decentralized exchange Mango Markets, has filed a legal action against two senior ex-employes, John Kramer and Max Schneider, for allegedly embezzling approximately $10 million.

    The complaint has been filed in a San Juan, Puerto Rico, federal court. The United States District Judge Gina Méndez-Miró is presiding over the case which involves charges of market manipulation, fraud, and breach of trust.

    The lawsuit comes after Mango Labs recently settled a legal battle with the US Securities and Exchange Commission (SEC) by agreeing to pay a $223,228 fine and dissolve the Mango DAO, destroying all its MNGO tokens.

    Mango Labs Sues Former Employees

    According to the filed complaint, Kramer and Schneider, who held trusted positions, allegedly abused their power for personal gain. They were responsible for managing sensitive tasks, including the Mango DAO treasury and addressing a $100 million attack on Mango Markets.

    In October 2023, the FTX bankruptcy estate sold its Mango tokens (MNGO). The defendants secretly purchased 330 million tokens and hid their identities using multiple crypto wallets. They then proposed a vote to sell these tokens back to Mango DAO at an inflated price.

    The alleged gimmick gave the defendants excessive voting power, allowing them to manipulate the outcome. As a result, Mango DAO bought 73 million tokens for $2.5 million. The plaintiff claims the defendants have refused to return the tokens at cost, breaching their obligations and attempting to pressure Mango Labs to drop the issue.

    Mango Market Struggles

    Mango Markets faced a devastating $116 million exploit in October 2022. Avraham Eisenberg took advantage of a vulnerability in the platform’s smart contract, draining user funds. This security breach revealed the platform’s weaknesses and raised concerns about the safety of user assets.

    The exploit also drew regulatory attention to Mango Markets. As regulations evolve, the platform addresses concerns over market manipulation and fraud. Regulatory scrutiny led to legal challenges, operational restrictions, and compliance costs, further damaging the platform’s reputation.

    Mango Markets also struggles with competitive DeFi space, vying with other Solana-based protocols like Jupiter, Kamino, and Drift offering innovative features. 

    Data from DefiLlama, a blockchain analytics platform shows that since the Eisenberg exploit, Mango Markets’ Total Value Locked (TVL) has tumbled by over 85% currently at $14.74 million.

  • Gate.io Invests $10M in TON Blockchain to Boost Telegram-Based Projects

    Gate.io Invests $10M in TON Blockchain to Boost Telegram-Based Projects

    Crypto exchange Gate.io has announced a $10 million investment in The Open Network (TON) blockchain to support Telegram-based projects. The update comes as Toncoin’s price is experiencing a slight decline.

    Gate.io Invests $10M in TON

    The announcement unveiled the exchange’s claim to use the investment in enhancing the Telegram experience, including developing a CeFi-driven mini-app and integrating Gate Wallet. The mini-app will provide access to centralized finance services, while the wallet integration will enable digital asset management directly within the platform.

    The exchange further noted that the investment will strengthen its commitment to the TON blockchain, enabling deeper involvement in governance and development to drive growth, innovation, and long-term success.

    To further show its support for the Telegram-linked blockchain, Gate.io announced its participation in the TON Society’s Hackers League hackathon event. It claims to have contributed a prize pool of up to $2 million to encourage innovative solutions and foster the network’s adoption and development.

    Why TON Blockchain?

    Gate.io believes Telegram’s expansion into Web3, presents a prime opportunity for TON-based projects to achieve widespread adoption. Concerning this, the exchange CEO and founder Lin Han said:

    “The TON ecosystem holds strong potential due to its large Telegram user base and fast, low-cost blockchain technology. This makes it an ideal platform for attracting Web3 applications and developers, with promising prospects for large-scale user growth and network effects.”

    Meanwhile, it seems other Web3 firms concur with the above statement. Recently, Bitget, a crypto exchange, and Foresight Ventures, a Web3 venture capital firm, have co-invested $30 million in TON. This joint investment aims to support emerging trends and the adoption of the Telegram-linked blockchain.

    TON Keeps Growing

    The TON Blockchain has seen rapid growth in 2024, thanks to its connection to Telegram’s massive 950 million user base. This partnership has led to a significant increase in its on-chain activity. Recent data from Bitget Research shows impressive gains in key areas, including on-chain transactions and Total Value Locked (TVL).

    Popular Telegram apps like Notcoin, Catizen, DOGS, and TADA have driven this growth, attracting millions of users. These apps have helped establish TON as a leading blockchain, positioning it for continued innovation and expansion.

  • DeFi User Pays Over $700k in ETH for Transaction Fee

    DeFi User Pays Over $700k in ETH for Transaction Fee

    Blockchain analyst Lookonchain notified Crypto Twitter about a recent transaction involving an Ethereum user who paid 288 ETH ($704,000) as network fees to process a single transaction.

    The transaction was executed on block 20918439 with a high rate of over 13.73 million Gwei per gas limit. Since the gas used was 21,000, it attracted a high network fee for the transfer.

    The fee is higher than the average fee on the network and highlights the challenges associated with Ethereum’s decentralized finance (DeFi) ecosystem.

    What Likely Happened?

    A possible cause for the high fee is congestion in the Ethereum network which results in high gas prices. As the transaction was processed, network congestion may have worsened, and gas prices surged even higher. The user may have unknowingly set a very high gas price, hoping to prioritize their transaction.

    Complex smart contracts are another culprit for high transaction fees. This usually comes from factors like multiple contract interactions, nested contracts, and complex logic. These transactions include trades and non-fungible token (NFT) minting.

    Complex smart contracts are like mathematical equations, the more variables and operations, the harder it is to solve. This requires more computational power, increasing the fee.

    Smart contract bugs can also consume excessive gas, slow down transactions, and increase network fees. These bugs can be simple mistakes, like infinite loops or unnecessary computations, or more complex issues, like security vulnerabilities.

    What can be Done?

    To avoid excessive fees on Ethereum, users can leverage layer-2 Scaling Solutions like Base and Polygon to enable faster and cheaper transactions. These include off-chain transactions, sidechains, optimistic rollups, and zk-rollups. These technologies reduce congestion on the main Ethereum network, lowering fees and increasing efficiency.

    DeFi platforms can improve user experience by simplifying user interfaces to reduce errors. Decentralized apps can integrate estimation tools for providing accurate predictions, Gas-optimization techniques to minimize gas consumption, and dynamic fee adjustment features.

    Since high network fees can deter users from adopting DeFi and threaten viability, particularly for small transactions, developers can adopt solutions to help users enjoy a smoother and more cost-effective experience.

  • Non-Custodial Crypto Wallet Phantom Adds Base Network Support

    Non-Custodial Crypto Wallet Phantom Adds Base Network Support

    Phantom, a non-custodial crypto wallet, has announced its support for Base network, an Ethereum layer-2 blockchain backed by Coinbase. The integration is now available to over three million customers who have updated their wallet apps and extensions.

    Why Phantom Supports Base

    The Base network has recently achieved a significant milestone of over two million daily active addresses. This shows its rapidly expanding ecosystem and increasing adoption among developers and users.

    To further enhance its user experience and attract Base users, the Phantom team added the L2 network to its list of supported networks. According to the announcement, Base Network support on the non-custodial wallet is currently a beta feature, and users can choose whether or not to use it.

    What This Means for Users

    The layer-2 integration will allow users to send and receive token transfers on the Base network with Phantom effortlessly. The team claims users will also be able to purchase assets like USDC and ETH using credit cards, Apple Pay, or Coinbase.

    Phantom users who have opted for Base beta can also explore the layer-2 ecosystem and seamlessly interact with their favorite decentralized apps (dApps). The wallet’s development team also noted that users can trade crypto across the Coinbase-backed network.

    The Phantom team also assured Base users that security remains a top priority. It further mentioned other features that can be enjoyed, including Ledger support, automatic spam detection, and transaction simulation.

    Base Network is not the First

    Since its launch in 2021, Phantom has remained focused on the Solana blockchain until April 2023, when it first integrated two other networks: Ethereum and Polygon. This move was spurred by the team’s desire for users to interact with the three largest ecosystem blockchains without moving from one wallet app to another.

    Eight months later, Phantom expanded its capabilities by integrating the Bitcoin blockchain, enabling users to engage with Ordinals and BRC20 tokens amidst growing demand for Bitcoin-focused digital tokens. The team acknowledged that Solana, Ethereum, or Web3 would not exist without Bitcoin.

    With its latest integration of the Base network, the multi-chain wallet now supports five blockchains.

  • Bitget Pledges Full Compensation Following Token’s Sharp 50% Decrease

    Bitget Pledges Full Compensation Following Token’s Sharp 50% Decrease

    Seychelles-based crypto exchange Bitget has promised to fully compensate users impacted by an unexpected 53.5% price drop in its native token, BGB. According to data from the platform’s price chart, the crypto’s value plummeted from $1.14 to $0.53 within a brief six-minute window.

    The unexpected plunge in BGB’s value left users speculating about what caused it, especially those negatively affected by it. Incidents like this are often the result of internal and external factors, such as liquidity issues, manipulation, large-volume sell orders, regulatory changes, and exchange-related events.

    Bitget Pledges Compensation

    Hours after the incident, Bitget issued a statement via its official X (formerly Twitter) post, attributing the unexpected price plunge to market conditions. The exchange assured users that the native token’s price had stabilized.

    Bitget apologized for the incident and pledged to compensate affected users. The exchange assured its community that a detailed plan would be released within 24 hours, and reimbursement would be completed within 72 hours.

    Following the announcement, the exchange CEO, Gracy Chen, stated that the incident is still under investigation and there are no issues with the platform. The executive claims Bitget’s asset reserve exceeds 176%, and the exchange has the second-largest protection fund globally.

    Bitget’s financial strength has been seen in past reports. Last month, the crypto exchange injected $30 million into The Open Network (TON) blockchain in collaboration with the Web3 venture capital Foresight Ventures to foster Web3 adoption on the layer-1 network.

    Meanwhile, the exchange has not revealed the total number of affected users or details regarding its compensation plan. However, affected users now look forward to being reimbursed.

    At press time, the BGB token was trading at $1.06, a 100% increase from its day low of $0.53.

    Not the First

    On January 23, crypto exchange OKX’s native token, OKB, experienced a sudden 50% drop in three minutes due to abnormal price fluctuations. The token’s price plummeted from $50 to $25 before stabilizing at around $48.

    The volatility led to automatic liquidations of numerous margined positions. Like Bitget’s response, the OKX team developed a compensation plan for affected users.

  • Metaplanet Goes Shopping Again, Purchases Additional 108 BTC

    Metaplanet Goes Shopping Again, Purchases Additional 108 BTC

    Metaplanet, a Japanese investment firm, has just added 108.78 Bitcoins to its portfolio, valued at ¥1 billion ($6.7 million). This latest purchase was executed at the average price of ¥9.19 million ($62,000) per BTC.

    The firm’s BTC buying spree started early this year in response to Japan’s economic challenges, adopting a “Bitcoin First, Bitcoin Only” strategy. Due to its acquisition approach, Metaplanet has been compared to MicroStrategy, a prominent American Bitcoin investment company.

    Three Moves in One Week

    Metaplanet made two significant Bitcoin purchases and acquired more through a put option exercise in just one week. The Japanese firm added 240.59 BTC to its holdings during the first seven days of October, boosting its reserve to 639.5 BTC.

    Despite what may be seen as a bearish week in the crypto market, Metaplanet seized the opportunity to purchase 107.91 bitcoins on October 1. This highlights the firm’s commitment to expanding its BTC holdings and its bullish stance on the crypto’s long-term value.

    Two days later, the Asian MicroStrategy acquired 23.9 BTC through a put option exercise. By leveraging put options, Metaplanet can increase its Bitcoin reserves without adding financial risk.

    Metaplanet’s Stock Reacts

    Following the latest Bitcoin acquisition announcement, Metaplanet’s shares rallied over 7.8% in 24 hours, reaching ¥988 and pushing its valuation to higher height.

    The firm’s Bitcoin strategy has yielded remarkable results, driving a 517% year-to-date surge in its stock market performance.  Fueled by the ongoing Bitcoin bull run, the stock’s upward momentum may continue.

    Bitcoin Keeps Growing

    Bitcoin has emerged as a global asset, competing with the gold market and outpacing other asset classes. This shift is driven by growing institutional adoption, increasing investor awareness, improving regulatory clarity, and enhanced market infrastructure.

    Notably, United States Spot Bitcoin ETFs have rallied to over $60 billion in assets under management (AUM) in less than a year of operation showing BTC’s potential as a store of value and hedge against inflation.

    As Bitcoin continues to transform investment, users can expect potential changes in central bank policies and the asset’s increased adoption in different regions of the world.

  • Metaplanet Spends Another $1.4 Million on Bitcoin Purchase

    Metaplanet Spends Another $1.4 Million on Bitcoin Purchase

    Metaplanet, the Asian MicroStrategy, has announced its additional acquisition of an additional 23.9 bitcoin (BTC) worth over $1.4 million via option sale. This was executed at an average purchase price of ¥8.95 million (about $60,947) per BTC.

    Bitcoin Acquired with Options Sale

    Metaplanet made a transaction deal with QCP Capital, a Singapore-based digital asset trading firm. It sold put options for 233 Bitcoins, with a strike price of $62,000. This means Metaplanet promises to buy those Bitcoins at $62,000 if the price is below that level by the maturity date, which is December 27, 2024.

    In return for this promise, QCP Capital paid Metaplanet 23.97 BTC. This payment is like an insurance fee. If Bitcoin’s price stays above $62,000, the options expire worthless, and Metaplanet keeps the Bitcoins.

    This strategy helps Metaplanet manage risk and generate income. The firm gets paid to potentially buy Bitcoin. It’s a unique approach to acquiring Bitcoin, combining traditional finance techniques with crypto investing.

    The transaction agreement also includes a margin collateral of $13.826 million. This serves as a security deposit to cover potential losses if Metaplanet is obligated to buy the 233 BTC at $62,000. This amount ensures QCP Capital is protected in case Metaplanet defaults.

    The margin collateral for the put options transaction was sourced from the proceeds of Metaplanet’s eleventh stock acquisition rights exercise, ensuring the company’s ability to meet the contract obligations.

    Japan Gains Crypto Exposure

    As one of Japan’s few publicly traded companies to embrace crypto, Metaplanet is charting a new course, achieving notable success and positioning itself as a model for other institutions to enter the growing crypto market.

    Aptos Labs, the Aptos Foundation’s innovation arm, recently announced its interest in the Japanese crypto market. By partnering with HashPalette, the firm plans to connect with prominent Japanese businesses and gain access to key players in the market.

    Meanwhile, Japan’s crypto history has been marred by two massive exchange hacks, despite being an early adopter among retail investors. This has reduced investor confidence in the country and has prompted regulators to intervene earlier than in other countries.