Author: Jonathan Agozie

VanEck believes that SOL should be treated as a commodity, much like Bitcoin and Ethereum, even though the SEC has argued that SOL should be classified as a security.

VanEck has filed an S-1 registration statement to launch the “VanEck Solana Trust,” the first spot Solana (SOL) ETF in the United States. The product aims to track the price of Solana by directly backing the Trust’s shares with SOL tokens. VanEck plans to have the ETF listed on the Cboe BZX Exchange.

According to the prospectus, the Trust and the sponsor will not use any of the Trust’s SOL to earn staking rewards or generate income. This move follows the SEC’s recent approval of 19b-4 applications from national exchanges to list spot Ethereum ETFs. Although these Ethereum ETFs have not yet been fully approved, they could be available as early as next week, based on feedback from the SEC and expert opinions.

Matthew Sigel, who leads digital asset research at VanEck, stated in a tweet that the firm sees Solana as a strong competitor to Ethereum. He highlighted Solana’s high transaction speed, low fees, strong security, and vibrant community as key reasons for its attractiveness as an ETF offering. VanEck believes that SOL should be treated as a commodity, much like Bitcoin and Ethereum, even though the SEC has argued that SOL should be classified as a security.

https://twitter.com/matthew_sigel/status/1806313241431138434?t=3FVKCrq0FIKtD9svP0NP2w&s=19

The SEC’s recent swift approval of Ethereum ETFs has raised hopes within the crypto industry that other crypto asset ETFs might soon be approved. This decision came just before the SEC’s deadline to make a ruling on the matter. Following this, the SEC also closed its investigation into Ethereum software giant Consensys regarding the security status of ETH. These actions have increased optimism that the SEC might allow a broader range of crypto ETFs.

Solana ETF Faces Regulatory Scrutiny

Despite these positive developments, the SEC continues its lawsuits against major crypto exchanges such as Coinbase, Binance, and Kraken. In these lawsuits, the SEC maintains that SOL meets the criteria of the Howey Test, which would classify it as a security. However, industry experts believe that after approving Bitcoin and Ethereum ETFs, it will be difficult for the SEC to deny a similar product for Solana. They argue that denying Solana the same treatment would be inconsistent and challenging to justify.

This move is part of a broader effort to create a robust and transparent governance framework that ensures the long-term success and integrity of the Cardano ecosystem.

The Cardano Foundation has announced its new role in the governance of the Cardano blockchain, aiming to increase decentralization following the Chang hard fork, a significant upgrade to the Cardano network. This move is part of a broader effort to create a robust and transparent governance framework that ensures the long-term success and integrity of the Cardano ecosystem.

As part of the new governance model, the Cardano Foundation will participate in the Interim Constitutional Committee (ICC) and the ICC election. This step is crucial for guiding Cardano’s governance as it transitions to a more decentralized model. The proposed governance model includes various stakeholders, such as delegate representatives (DReps), stake pool operators (SPOs), and a constitutional committee, to ensure inclusivity and diversity while providing necessary checks and balances.

During the bootstrapping phase, between the Chang 1 and Chang 2 upgrades, three types of governance actions will be available. These actions include adjusting protocol parameters, initiating hard forks, and providing essential information to the community.

The ICC will have the authority to approve protocol parameter changes independently and collaborate with SPOs on hard forks. It will manage governance actions, ensure transparency and fairness, support initial governance structures, and guide the transition to a fully established Constitutional Committee.

Cardano’s New Governance Structure

The Cardano Foundation has voted in the ICC election and revealed its candidate choices based on factors such as community engagement, transparency, technical expertise, and commitment to Cardano. The top candidates include the Cardano Atlantic Council, the Eastern Cardano Council, Lloyd Duhon, Johnny Kelly, Cardano Japan, and Joshua Stone. The Foundation voted with 20 million ADA and maintained transparency throughout the process. The voting stake can be tracked through pool.pm.

The price of ADA has fallen over 2% in the past 24 hours and more than 3% in the past week, currently trading at $0.379. Trading volume has increased by 10% in the last 24 hours, indicating rising interest among traders. However, Cardano futures open interest has been declining for over a week, with a 2.84% drop in the last 24 hours to $202.46 million. Traders are advised to look for signs of recovery, such as an increase in trading volume, before continuing to trade ADA.

Gensler has expressed concerns about the lack of proper disclosures for many cryptocurrency tokens, highlighting the prevalence of fraud in the industry.

Stuart Alderoty, Ripple’s chief legal officer, has accused U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler of overstepping his authority. This accusation followed Gensler’s comments to the Financial Times about the SEC adjusting to recent legal setbacks.

Note to @GaryGensler: The courts aren’t “adjusting”…they are finding that you are breaking the law by exceeding your statutory authority. https://t.co/rne7JRygm2

— Stuart Alderoty (@s_alderoty) June 26, 2024

Since taking office in 2021, Gensler has aimed for significant reforms in financial markets, including those involving US Treasury bonds and climate disclosures. However, his initiatives have faced several legal challenges. In July 2023, Judge Analisa Torres ruled that secondary sales of Ripple’s XRP tokens were not securities, dealing a blow to the SEC. In August 2023, Grayscale won a key case against the SEC, leading to the approval of several spot Bitcoin ETFs in January. Recently, the SEC also approved multiple-spot Ethereum ETFs.

XRP Advocates Criticize the SEC’s Decisions

Gensler has expressed concerns about the lack of proper disclosures for many cryptocurrency tokens, highlighting the prevalence of fraud in the industry. At the Bloomberg Invest Summit, he stated that many crypto industry leaders are either in jail, facing jail, or awaiting extradition. In response to this, Ripple CEO Brad Garlinghouse criticized Gensler for failing to prevent the FTX fraud and suggested that Gensler should have been dismissed long ago.

XRP advocate John Deaton has also been vocal in his criticism of the SEC and Gensler. He accused them of harming small cryptocurrency investors, including those who invested in XRP. Deaton, who is running for the U.S. Senate, claimed that Gensler has caused more harm to small investors than anyone else in recent years. He also pointed out that Gensler had met twice with Sam Bankman-Fried, the founder of the collapsed crypto exchange FTX.

As the person who literally sued the @SECGov on behalf of tens of thousands of small investors, I can state with 💯 conviction that @GaryGensler and the SEC has caused more harm to investors than any other person or entity during the last several years. What Gensler fails to… https://t.co/kv2EIMSOw4

— John E Deaton (@JohnEDeaton1) June 26, 2024

The ongoing legal battle between the SEC and Ripple began in December 2020. Ripple’s CEO anticipates a final ruling in September and hopes for a favorable outcome.

Overall, the SEC has been intensifying its actions against cryptocurrency platforms and altcoins, labeling many as unregistered securities due to widespread noncompliance in the industry. This aggressive stance has led to increased scrutiny and legal challenges in the crypto space.

The surge in XRP trading volume suggests that investors are taking advantage of the volatility or positioning themselves for expected price movements in XRP.

According to CoinMarketCap data, XRP has seen a significant surge in trading volume, skyrocketing by 170% in the last 24 hours to reach $1.035 billion. This surge occurred despite a major market sell-off.

On Monday, cryptocurrencies fell deeper into a correction, with Bitcoin (BTC) dropping near $60,000 and altcoins experiencing even steeper declines. XRP’s price dropped by 2.32% in the last 24 hours to $0.4766 at press time as the broader market sold off. This sudden downturn triggered over $281 million in liquidations of leveraged trading positions across all digital assets, according to CoinGlass data.

The surge in XRP trading volume suggests that investors are taking advantage of the volatility or positioning themselves for expected price movements in XRP. Despite the overall bearish market sentiment, traders have flocked to XRP, driving up its trading volume.

XRP Volume Surge Despite Price Drop

Recent data from WhaleAlert, a popular tracker of large crypto transactions, identified three significant XRP transfers in the last 24 hours. Each of these transfers involved at least 26 million coins.

The first transfer moved exactly 30,820,000 (30.8 million) XRP from an unknown wallet to the Luxembourg-based exchange Bitstamp, valued at approximately $14.9 million. Further investigation revealed that the transaction was made by the well-known wallet ‘r4wf7…4Rzn,’ which frequently moves millions of XRP to Bitstamp and Bitso exchanges.

In the past few months, this whale has transferred large amounts of XRP to and from these exchanges. Some speculate that the whale is linked to Ripple, the company that issued XRP, while others believe it might be a large investor selling off holdings.

Following this, another transaction moved 26,234,427 XRP (worth $12.4 million) from Binance, the world’s largest cryptocurrency exchange by trade volume, to an unidentified wallet. Shortly after, the same whale transferred another 28,218,783 XRP (valued at $13.5 million) to another anonymous wallet.

Typically, when large amounts of cryptocurrencies are moved to an exchange, it is seen as a sell-off. Conversely, transfers from an exchange to a wallet are often viewed as accumulation, indicating confidence in the project’s future. While the reasons behind these transfers remain unknown, they have certainly caught the attention of market participants.

Phishing links are frequently circulated in Telegram groups, through airdrops, and other deceptive methods to trick users into revealing their TON wallets.

The rise of The Open Network (TON) ecosystem has drawn the attention of malicious actors looking to steal private information and assets. There has been a notable increase in phishing attacks targeting TON wallets. Yu Xian, the founder of blockchain security firm SlowMist, warned about this issue on June 24. He explained that phishing links are frequently circulated in Telegram groups, through airdrops, and other deceptive methods to trick users into revealing their TON wallets.

TON 生态的钓鱼开始多了，Telegram 生态过于自由的特点，许多钓鱼链接（或 bot 形式）通过消息群组方式传播，空投等诱骗方式来批量钓走用户 TON 钱包里的有关资产（包括 NFT，特别的如 Anonymous Telegram Numbers，类似手机号，许多人用于创建 Telegram 账号，这个被钓走，意味着对应的 Telegram…

— Cos(余弦)😶‍🌫️ (@evilcos) June 24, 2024

Hackers often use anonymous Telegram numbers. These numbers work like mobile phone numbers and are used by many people to create Telegram accounts. This makes them a big target for cybercriminals. If these numbers get phished, the connected Telegram account might be lost, unless the user has set up an independent password.

TON Network Attracting Cybercriminals

The TON blockchain has gained significant attention as Telegram’s chosen Web3 solution. Telegram is one of the most popular messaging apps in the world, with over 900 million users. This vast user base provides a strong foundation for the TON ecosystem. According to on-chain analytics company CryptoQuant, the TON blockchain’s daily transaction volume ranges between $5 billion and $10 billion, showcasing its popularity and impressive growth. For comparison, Bitcoin’s average daily transfer volume is around $50 billion, and TON has already achieved 10% of Bitcoin’s capacity.

The number of TON token holders has increased dramatically, from 2.9 million to 32 million, representing over 1000% growth. This surge in users has significantly enhanced the credibility of the TON blockchain within the crypto community, further increasing its potential user base.

However, the growing popularity of TON has also attracted cybercriminals. Cybersecurity firm Kaspersky reported that scammers use the Telegram app and Toncoin, TON’s native cryptocurrency, to build pyramid schemes targeting crypto users. These schemes exploit users’ trust and familiarity with the Telegram platform to lure them into fraudulent activities.

This situation highlights the critical need for users to be cautious and vigilant. As TON continues to grow and attract more users, the risk of cyberattacks also increases. Users should be wary of unsolicited messages, phishing links, and suspicious activities within the ecosystem to protect their private information and assets.

Despite these developments, on-chain data from IntoTheBlock shows that 76% of Bitcoin holders are still in a profitable position.

Crypto products experienced their second consecutive week of outflows, with $584 million leaving the market last week and a total of $1.2 billion over the two weeks. Asset management firm CoinShares suggests this is likely due to investors’ pessimism about the Federal Reserve cutting interest rates this year.

The Federal Reserve’s stance on interest rates is particularly influential. Despite recent rate cuts by the European Central Bank and the Bank of Canada, strong U.S. labor data suggests that the Fed might adopt a more hawkish approach, potentially keeping interest rates high for longer.

Bitcoin (BTC) was the main target of these outflows, with $630 million withdrawn last week. On the altcoin side, Ethereum (ETH) also faced outflows, with $58 million withdrawn. However, some altcoins like Solana, Litecoin, and Polygon saw inflows of $2.7 million, $1.3 million, and $1 million, respectively, after recent price declines.

Interestingly, multi-asset products received $98 million in inflows. This indicates that some investors see the weakness in the altcoin market as a buying opportunity, according to CoinShares analysts.

Regionally, the US led the outflows with $475 million, followed by Canada with $109 million. Germany and Hong Kong also saw outflows of $24 million and $19 million, respectively. In contrast, Switzerland and Brazil experienced inflows of $39 million and $8.5 million, respectively.

Bitcoin Holders Profit Amid Market Turbulence

Bitcoin reserves held by miners have dropped from 1.95 million BTC at the beginning of the year to 1.90 million BTC, the lowest level since 2010. This could cause a shift in the crypto market. Lucas Outumuro, head of research at IntoTheBlock, noted that miners are likely to continue reducing their BTC holdings over time due to halving events, which pressure their profit margins and force them to sell more reserves. This increase in bitcoins being sold has caused a temporary dip in prices, which is seen as necessary to remove less efficient miners from the market.

Despite these developments, on-chain data from IntoTheBlock shows that 76% of BTC holders are currently in a profitable position, while 13% are holding their coins at a loss. Additionally, 11% of holders purchased BTC at prices close to the current trading level.

This action underscores the UK’s stringent approach to regulating the rapidly evolving cryptocurrency market, ensuring that businesses comply with the law to protect consumers and the financial system.

The Financial Conduct Authority (FCA) and the Metropolitan Police Service have taken action against two individuals in London suspected of operating an illegal cryptocurrency exchange. The FCA announced in a press release that they believe over £1 billion ($1.2 billion) in unregistered cryptocurrency was traded through this business.

The identities of the arrested individuals and the name of the exchange remain undisclosed. During their investigation, the FCA conducted inspections at the suspects’ offices and homes, seizing several digital devices. The two suspects were interviewed by the FCA and have been released on bail while the investigation continues. Therese Chambers, the FCA’s executive director of enforcement, stated that this action demonstrates the agency’s commitment to stopping illegal crypto firms from operating in the UK.

UK’s Commitment to Crypto Oversight

From January 10, 2021, any crypto asset business in the UK must register with the FCA under regulations aimed at preventing money laundering and terrorist financing. These regulations, known as the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), give the FCA the authority to impose restrictions on crypto businesses. It is a criminal offense to violate these restrictions. As a result, not all international crypto companies have been allowed to operate in the UK. Companies like Binance and Bybit, for instance, have faced bans following FCA crackdowns.

The FCA has stringent criteria for approving crypto business registrations. Since becoming the supervisor of the crypto market, only 14% of the applications submitted have been approved. Out of 320 applications, only 45 businesses have successfully registered.

In early May, the UK Treasury released a report detailing its efforts over the past two years to monitor the crypto market. The report, titled “Anti-Money Laundering and Counter-Terrorist Financing,” highlighted that between 2022 and 2023, the FCA scrutinized the activities of 238 firms. About one-third of the FCA’s staff is involved in overseeing crypto-related operations, showing the significant resources dedicated to regulating this sector.

This recent action by the FCA underscores the UK’s stringent approach to regulating the rapidly evolving cryptocurrency market, ensuring that businesses comply with the law to protect consumers and the financial system.