Cryptocurrencies To Watch

Author: Sincerity Jahswill

  • Ripple’s Victory Becomes Short-Lived as SEC Appeals Court Ruling

    Ripple’s Victory Becomes Short-Lived as SEC Appeals Court Ruling

    The SEC has officially filed an appeal in its lawsuit against Ripple Labs, challenging the August 7 court ruling in the United States District Court. This update was shared by James Filan, a Ripple community lawyer, via a recent tweet.

    The appeal comes after United States District Judge Analisa Torres ruled that Ripple breached federal securities law with its institutional sales of XRP tokens but not with its programmatic sales to retail exchanges. 

    Following this ruling, the justice ordered Ripple to pay a $125 million fine, lower than the $2 billion in disgorgement and civil penalties initially requested by the SEC. The ruling was seen as a significant win for the crypto industry, but the regulator’s appeal has put that victory on hold.

    Appeal’s Potential Outcome

    Bitwise Asset Management has recently filed for a spot XRP exchange-traded fund (ETF) with the SEC. This move excited investors, as it could provide direct exposure to the token. However, the appeal will probably hinder the ETF’s progress and cause uncertainty over Ripple’s regulatory status.

    Beaconing on past legal battles, law expert Fred Rispoli analyzed that the appeal against Ripple is expected to proceed with brief submissions, opposition briefs, and oral arguments. Since these processes take several months, Rispoli further mentioned that a final ruling might be in 2026, potentially extending the legal case to the next two years.

    Appeal Gains Reactions

    Brad Garlinghouse, Ripple’s CEO, seems frustrated with the SEC and its chairman, Gary Gensler, for prolonging the legal battle. He believes the regulator should have wrapped up the case sooner, emphasizing the lawsuit’s significant harm to the industry. 

    Garlinghouse argues that the SEC failed to safeguard U.S. investors and damaged its reputation in the process. Despite this, he is confident that Ripple and the broader industry have emerged victorious, stating that the SEC lost on key aspects. 

    Reacting to the appeal news, XRP’s price plummeted over 10% to below $0.52. Data from Whale Alert revealed three whale wallets transferred approximately 60 million XRP ($33 million) to exchanges. The SEC’s appeal injected uncertainty into the market, prompting cautious investor behavior.

  • The Crypto Market Lost Over $120 Million in 20+ Hacks in September

    The Crypto Market Lost Over $120 Million in 20+ Hacks in September

    Blockchain security firm PeckShield highlighted via a recent tweet that the crypto market experienced some challenges in September, which included over 20 hack incidents resulting in losses exceeding $120 million.

    September Top Hacks

    BingX, a Singapore-based crypto exchange, suffered the largest hack of September, losing over $44 million in a hot wallet breach. The hackers targeted multiple blockchains, including Ethereum, Binance Smart Chain, and Base. The platform vowed to cover all losses from its capital and will work with security firms to recover the stolen funds.

    The second-largest hack of September targeted the Penpie protocol, a decentralized finance platform hosted on Pendle Finance. The exploit, which occurred on September 3, resulted in a loss of $27 million in client funds. The project’s officials reassured users that their funds were unaffected by the attack.

    Indonesia’s largest crypto exchange, Indodax, was ranked the victim of the third-largest hack of September. Similar to the BingX attack, the hackers exploited a vulnerability in the platform’s withdrawal system. According to data from PeckShield, the cyber attacker stole $21 million worth of assets from Indodax’s hot wallet.

    In addition to the top three exploits, other hacks in September included Deltaprime, Onyx, and BananaGun. All three resulted in over $12.5 million in lost funds.

    Notably, the September hack record showed hackers’ interest in the Asian crypto market. Two of the month’s major hack victims, BingX and Indodax, are Asian crypto exchanges. This follows the biggest hack of the year, targeted at WazirX, another Asian-based platform.

    September Ranks 2nd Best Month

    PeckShield reports that September is not the worst month of the year. It is the second-best month so far, with fewer hacks, following April, which lost only $60 million to hacks.

    While there were exploits in September, May remains the worst month for crypto hacks this year, with $574.6 million stolen. The most significant incident was the $308 million breach at DMM Bitcoin, while Coinbase suffered an $18 million account drain.

    Data from PeckShied reveals that February 2024 is the second-worst month for crypto hacks, with over $360 million in losses. The month’s most notable incident was the $290 million PlayDapp breach.

  • Metaplanet Acquires Additional 107 BTC for $6.9 Million

    Metaplanet Acquires Additional 107 BTC for $6.9 Million

    Metaplanet, a Japanese investment firm, has acquired an additional 107.91 Bitcoin worth $6.9 million at an average price of $64,100 per BTC. The purchase brings the company’s total Bitcoin holdings to 506.74 BTC, worth about $32 million at the current price.

    Notably, the latest purchase is just one of Metaplanet’s series of BTC acquisitions, with its first in April. To show its commitment to being crypto-focused, the company rebranded from Red Planet, a hospitality-centric entity, to a Web3 investment firm.

    The news of the firm’s latest Bitcoin purchase has positively impacted its stock price, which jumped over 4%. This surge reflects investor confidence in the company’s strategy, which has led to a remarkable 495% increase in Metaplanet’s stock value year-to-date.

    Why Metaplanet Keeps Acquiring Bitcoin

    Metaplanet has adopted a bold “Bitcoin first, Bitcoin only” strategy, prioritizing Bitcoin over traditional assets like the yen to safeguard against inflation and economic uncertainty. This approach mirrors MicroStrategy’s playbook, which has utilized BTC as a hedge against currency devaluation.

    Metaplanet’s approach centers on consistently acquiring Bitcoin, regardless of market volatility. The Asian MicroStrategy believes that by doing so, it will protect its investments and capitalize on Bitcoin’s expected future growth. 

    As one of Japan’s few publicly traded companies to embrace digital assets, Metaplanet is pioneering the country’s crypto market. Its bold strategy has already yielded positive results, with its stock price surging significantly. The firm’s Bitcoin acquisition approach may inspire other companies to follow suit.

    Bitcoin Demand Surges

    Recently, Bitcoin’s popularity has increased due to whale investors and large investment funds. This is because central banks in countries like the United States and Canada have lowered interest rates, making investing in Bitcoin more appealing.

    In the last month, investment funds focused on Bitcoin, like BlackRock’s IBIT and Fidelity’s FBTC, have received around $2 billion. Companies like MicroStrategy are also investing more in Bitcoin.

    This growing interest in Bitcoin shows that big investors and institutions are now considering it a legitimate investment option. As more people invest, Bitcoin becomes more accepted and attractive to others.

  • Binance Founder CZ to Be Released from Prison Ahead of Schedule

    Binance Founder CZ to Be Released from Prison Ahead of Schedule

    Changpeng Zhao (CZ), the co-founder of the world’s largest exchange, Binance, is finally walking free today after serving his four-month sentence for failing to implement anti-money laundering controls at Binance.

    His release comes two days ahead of schedule due to a policy that allows inmates to leave custody early if a discharge date falls on a weekend.

    He voluntarily returned to the United States in April to face the music, showing his willingness to take responsibility for his actions. CZ’s sentence was relatively short, considering prosecutors were pushing for three years, but his cooperation and guilty plea helped reduce the term.

    CZ’s Prison Life

    CZ’s time in federal custody was divided into two phases. Initially, he spent approximately two months at a minimum-security prison located in the California desert. This facility, designed for non-violent offenders, provided a relatively relaxed environment for Zhao to serve his sentence.

    Zhao was later transferred to a halfway house in Long Beach, California, with fewer restrictions and more freedom. He was allowed to participate in supervised excursions and leisure activities, including watching movies.

    According to prison officials, these outings were carefully monitored to ensure compliance with the terms of his release. The halfway house likely provided a stepping stone for Zhao to gradually readjust to life outside prison, preparing him for his eventual release.

    What’s Next for CZ?

    According to a statement made by Zhao during his hearing, he plans to dedicate his time and resources to providing free, quality education to underprivileged children worldwide via a platform he calls Giggle Academy.

    In what appeared to be a goodbye tweet to his executive office at Binance, CZ clarified that he may invest in blockchain startups. As one of the most influential figures in the crypto market, Zhao’s next moves will likely significantly impact the industry.

    Notably, with about $60 billion in his portfolio and experience and influence, the exchange’s co-founder has many opportunities ahead of him. Many are eager to see how he will leverage his resources and expertise.

    At press time, Binance coin (BNB), the native token of the Binance-tied BNB Chain, had experienced a 0.57%  increase within the last 24 hours.

  • Solana Leads Crypto Market with Most Daily Active Addresses as TON Trails Behind

    Solana Leads Crypto Market with Most Daily Active Addresses as TON Trails Behind

    Layer-1 blockchain Solana has emerged as the blockchain project with the highest daily active addresses. According to a recent metric shared by the blockchain analytics firm IntoTheBlock, the L1 network saw over 3 million addresses actively engaging with its platform.

    The metric also showed that Toncoin (TON) and Tron (TRX) secured second and third places with 2.89 million and 2.5 million daily active addresses, respectively. Dogs (DOGS), Bitcoin (BTC), and Ethereum (ETH) trail closely.

    Why is Solana at the Top?

    Solana’s decentralized finance (DeFi) platforms are viral. They allow users to lend, borrow, trade, and earn rewards. Protocols like Jupiter have made it easy for users to interact with their digital assets.

    These activities on the Solana chain make the network very busy. As more people troop into Solana, the L1 network sees an overall increase in active users and daily transactions, cementing Solana in its leading position.

    Airdrops are another potent catalyst for Solana’s growth. Most protocols, like Kamino, SharkyFi, and Uprock, attract new users by offering free tokens. This encourages users to explore Solana’s ecosystem, hoping for more airdrops from new protocols, resulting in increased adoption and engagement.

    These reasons are reflected in Solana’s native token, which has achieved the highest number of daily active addresses. This milestone shows the crypto’s widespread adoption and interest in Solana’s ecosystem.

    Toncoin Takes Second Position

    Toncoin, the native token of The Open Network (TON), has gained significant traction since 2023. Its affiliation with Telegram, one of the world’s most popular messaging apps with over 900 million users, has solidified Toncoin’s presence among the leading crypto projects.

    Telegram’s integration with TON has fueled the success of play-to-earn mini-games like Notcoin, Dogs, and Hamster Kombat, which reward users with tokens. These engaging games have boosted TON’s popularity and attracted new users. They have also driven network activity as their native tokens are launched on the Telegram-affiliated blockchain.

    Despite the latest metric, a blockchain project’s success is not solely measured by its active addresses. Factors like trading volume, market cap, liquidity, and developer activity are vital in determining the protocol’s growth.

  • Terrorism Victims Sue US DOJ, Seeking Compensation from Binance $4.3B Settlement

    Terrorism Victims Sue US DOJ, Seeking Compensation from Binance $4.3B Settlement

    Four individuals affected by state-sponsored terrorism filed a lawsuit against the United States  Department of Justice (DOJ), alleging improper handling of Binance’s $4.3 billion settlement funds.

    Victims Seek Compensation

    The lawsuit, filed in a Washington D.C. federal court, accused the DOJ of withholding funds meant to compensate victims of state-sponsored terrorism. The plaintiffs claim that the Justice Department failed to deposit the proceeds from Binance’s $4.3 billion settlement into the U.S. Victims of State Sponsored Terrorism (USVSST) Fund, as required by law.

    Notably, Congress established the USVSST Fund to provide compensation to international terrorism victims harmed by state-sponsored terrorism. The fund has paid over $6 billion to eligible victims since its establishment in 2015. 

    The Victims of State Sponsored Terrorism Act mandates that 100% of criminal proceeds and 75% of civil proceeds from relevant cases should go to the fund. However, the plaintiffs reported that the DOJ has deposited $898.6 million so far, which is nowhere near the stipulated amount.

    Beaconing on these provisions by the law, the four individuals bravely stepped into the legal arena, implying there are issues with the distribution of funds from Binance’s settlement. They ask the court to compel the DOJ to deposit all applicable settlement proceeds from Binance into the Victims Fund.

    While the lawsuit mainly targeted the DOJ, it also named other defendants, including the Commodity Futures Trading Commission (CFTC), U.S. Attorney General Merrick Garland, and the Treasury Department.

    Binance’s $4.3 Billion Fine

    In May 2023, the US Department of Justice’s national security and crime divisions launched an investigation into Binance for providing services to Russian individuals or entities despite US sanctions imposed on Russia in April 2022.

    Binance, the world’s largest crypto exchange, pleaded guilty in November 2023 to violating US sanctions and the International Emergency Economic Powers Act (IEEPA). As part of the settlement, the firm paid $4.3 billion in fines.

    On the other hand, Changpeng Zhao, the former CEO of Binance, has been permanently banned from executive roles in the company. He has been serving his four-month prison sentence since April and is set to be released on September 29. 

  • SEC Charges TrustToken and TrueCoin Over Stablecoin Investment Fraud

    SEC Charges TrustToken and TrueCoin Over Stablecoin Investment Fraud

    The United States Securities and Exchange Commission (SEC) filed a lawsuit against two companies, TrueCoin and TrustToken, for selling a stablecoin called TrueUSD (TUSD) without proper registration and making false claims about its backing.

    TrueCoin issued the TUSD stablecoin, while TrustToken developed and operated TrueFi, a decentralized lending platform that uses the stablecoin to enable lending and borrowing activities.

    SEC Charges TrustToken and TrueCoin

    The SEC alleged that TrueCoin and TrustToken falsely claimed their stablecoin, TUSD, was fully backed by the U.S. dollar from November 2020 to April 2023, contradicting the regulator’s findings. The financial agency reported that the companies invested a substantial portion of TUSD’s backing assets in a speculative offshore investment fund to earn extra returns.

    By March 2022, over $500 million of TUSD’s backing assets were invested in this fund. Despite knowing about redemption problems at the fund since late 2022, the companies continued to falsely assure investors that TUSD was backed one-to-one by the U.S. dollar. In September 2024, about 99% of TUSD’s reserves were invested in the speculative fund.

    Concerning the case, Jorge Tenreiro, Acting Chief of the SEC’s Crypto Assets & Cyber Unit, said:

    “TrueCoin and TrustToken sought profits for themselves by exposing investors to substantial, undisclosed risks through misrepresentations about the safety of the investment, this case is a prime example of why registration matters, as investors in these products continue to be deprived of the key information needed to make fully informed decisions.”

    TrustToken and TrueCoin Agree to Settlement

    TrueCoin and TrustToken have agreed to settle the charges, paying $163,766 each in civil penalties. TrueCoin will also pay $340,930 in disgorgement and $31,538 in prejudgment interest. As part of the settlement, the companies have been prohibited from violating federal securities laws in the future.

    Meanwhile, the SEC is intensifying its crackdown on the crypto industry, with monetary sanctions surging to over $4.6 billion in 2024. Chairman Gary Gensler cites investor protection concerns, but critics argue the approach stifles innovation and drives businesses overseas.

  • Base Network Sees Explosive Growth with Over 2M Daily Active Addresses

    Base Network Sees Explosive Growth with Over 2M Daily Active Addresses

    The Base Network, an Ethereum layer 2 blockchain, backed by Coinbase exchange, has hit a new milestone, recording over 2 million daily active addresses.

    This remarkable growth puts Base above other Layer 2 solutions like Arbitrum and Optimism, currently hovering around  600,000 daily users.

    Why is Base Growing Rapidly?

    Rumors of a potential token airdrop may have fueled the Base Network’s recent growth surge. This speculation stems from similar moves by other layer 2 blockchains, such as Arbitrum and Optimism, which previously airdropped tokens to users who transacted on their networks. Despite lacking official confirmation, this has driven interest and attracted new users. 

    The introduction of cbBTC, a wrapped Bitcoin token on the Base Network, may have also contributed to the chain’s recent growth surge. cbBTC brought fresh capital to the network, increasing liquidity and trading activity.

    Additionally, it attracted Bitcoin investors, expanding the Base Network’s user base and enabling Bitcoin holders to participate in its ecosystem.

    While airdrops and cbBTC may have contributed to the surge, blockchain analytic firm IntoTheBlock suggests the primary catalyst behind Base’s explosive growth could be “Basenames.” The feature allows users to create unique, human-readable names for their crypto addresses, similar to Ethereum Name Service (ENS) names.

    Base Sees Massive Growth Since Basenames Launch

    Name Service has captivated the crypto community with its innovative approach to simplifying complex addresses on the blockchain. By doing so, it has enhanced usability, simplified payments, and provided a more personalized experience. No longer hindered by cumbersome addresses, users can effortlessly send and receive assets, making crypto more intuitive for all.

    The launch of Basenames on August 21 sparked a significant increase in daily active addresses on the layer-2 network. Notably, the service attracted widespread adoption, with more than 200,000 Base.eth usernames created one week after launch. Users have continued embracing this new feature resulting in skyrocketed activity in the base network.

    The rapid growth of daily active addresses on the Base Network shows its increasing relevance in the decentralized ecosystem. The Base community and developers are eager to see more growth in the chain as they spread more awareness and build features that can incentivize blockchain users.

  • Kraken Acquires Crypto Broker Coin Meester to Expand EU Reach

    Kraken Acquires Crypto Broker Coin Meester to Expand EU Reach

    American crypto exchange Kraken has announced its successful acquisition of Coin Meester (BCM), a Dutch crypto broker. The company noted that this move will extend its presence to the Netherlands market and, by extension, Europe.

    Why Target Europe?

    Kraken noted that the European market comprises many small, separate companies, making it hard for them to compete. As costs rise and competition increases, these companies will likely merge or be bought out. The exchange plans to take advantage of this situation by using its global presence and products to become a more significant player in the European market.

    Notably, the exchange has been operating in Europe over the past two years. It offers services like buying, selling, and storing crypto in five European countries: Germany, Spain, Italy, Belgium, and Ireland. Its acquisition of BCM has expanded its services to three more countries: France, the Netherlands, and Poland.

    This expansion automatically legalizes the company’s operations in France and Poland since the newly acquired broker is registered as a Virtual Asset Service Provider (VASP) in these countries.

    The exchange claims to follow the new rules called Markets in Crypto-Assets Regulation (MiCA), making it easier for people in these countries to use crypto. Kraken believes this recent move puts the company in a great position to succeed amidst Europe’s dynamic crypto regulations.

    What This Means for BCM Users

    The announcement stated that Kraken has strengthened its core product offering and expanded its product suite, which aligns with its strategy to become the bridge to the most exciting areas of crypto. Its clients now benefit from the Kraken Pro trading interface for advanced traders and a new consumer web user experience.

    Kraken boasts that BCM users will not be excluded from these services as they will soon see a significant upgrade. It explained that customers will access over 200 digital assets, benefit from market-leading liquidity, and enjoy superior security. Additionally, the firm promises to give these users round-the-clock support in their local language and improve their trading experience.

    Meanwhile, Kraken’s latest acquisition comes months after it lost $3 million to a security breach.

  • Bitget and Foresight Ventures Invest $30M to Support Telegram-Based Projects

    Bitget and Foresight Ventures Invest $30M to Support Telegram-Based Projects

    Crypto exchange Bitget and web3 venture capital firm Foresight Ventures have jointly invested $30 million in The Open Network (TON) Blockchain to boost the adoption of emerging trends within the TON ecosystem.

    According to the official announcement, the joint $30 million was executed through the acquisition of $TON, the native token of the TON protocol.

    The fund will primarily focus on Tap-to-Earn and GameFi models that reward users with tokens for engagement. Bitget noted that the investment will foster growth and development within the TON network. The crypto exchange believes the move will drive mainstream adoption of TON-based projects, supporting Web3 innovation and expansion within the TON network.

    Not the First

    Bitget noted that this is not the first time it has supported the growth of the TON ecosystem. The company’s mobile wallet, Bitget Wallet, impacted the TON ecosystem through TONNECT 2024, an online event accelerating emerging dApp growth.

    The initiative leveraged the growing user interest in TON within Bitget’s decentralized wallet. In Nigeria, Bitget Wallet topped Apple’s App Store charts, surpassing TikTok and WhatsApp, thereby showing the rising adoption of decentralized finance (DeFi).

    Does TON Merit the Investment?

    The TON Blockchain has experienced rapid growth in 2024, becoming one of the fastest-growing blockchains. With its connection to Telegram’s massive 950 million user base, TON has seen a significant increase in activity. 

    According to a recent report by Bitget Research, on-chain transactions, ecosystem Total Value Locked (TVL), and DEX trading volume have all grown by over 10 times. This growth is largely driven by popular telegram apps such as Notcoin, Catizen, DOGS, and TADA, which have collectively amassed millions of users.

    Telegram’s support for Web3 startups has contributed to TON’s success. As the ecosystem grows, TON seems to be positioned for mass adoption. Notably, With its growing user base, the blockchain is becoming a major player in the Web3 space, trailing behind other blockchain giants like Solana.