Cryptocurrencies To Watch

Tag: Altcoin News

  • 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.

  • Solana Could Increase 5X If Trump Wins. Here’s Why

    Solana Could Increase 5X If Trump Wins. Here’s Why

    Solana could increase by 5X by the end of 2025 if Donald Trump wins the United State presidential election, according to Geoffrey Kendrick, Global Head of Digital Assets Research at the British multinational bank Standard Chartered.

    In a Tuesday note, Kendrick predicted that Solana could outperform Bitcoin and Ethereum upon Trump emerging as the president of the U.S. since his economic policies and administration will create a conducive environment for Solana’s expansion, potentially leading to significant price increases.

    “In rough terms from today’s prices under Trump I predict the following multiples by year-end 2025: SOL 5X, ETH 4X, BTC 3X,” he stated.

    Crypto’s Possible Future Under Trump

    Kendrick’s prediction for Solana’s growth hinges on Trump’s support, which could pave the way for a Solana exchange-traded fund (ETF).

    This development would significantly boost growth prospects, as a recent report suggests that an approval of a Solana Spot ETF could lead to a staggering price surge of over 8.9 times. In other words, Trump’s backing could be the catalyst for Solana’s meteoric rise.

    The Standard Chartered executive also predicted a substantial rise in Solana’s throughput, varying from 100 to 400 times, based on the current market cap-to-fees ratio, with SOL at 250x, and ETH at 121x. However, for this prediction to materialize, Solana must first meet key conditions.

    First, Solana has to implement the mainnet for Firedancer, a new independent validator client software that increases transactions per second to one million. In addition, Solana needs to establish dominance across multiple sectors, including finance, consumer services, and decentralized physical infrastructure (DePIN).

    Crypto’s Possible Future Under Harris

    While Kendrick predicts Solana will outshine Bitcoin and Ethereum under Trump’s presidency, his view changes with Harris at the helm.

    “Under Harris, we would expect BTC to outperform ETH and ETH to outperform SOL in 2025,” he said.

    Kendrick believes that by the end of 2025, Ethereum could sell at $7,000 while BTC at $200,000 if Harris wins.

    The upcoming U.S. presidential election is expected to significantly impact the crypto market. Both candidates, Trump and Harris, have expressed support for the crypto industry, although Trump has been more vocal about his intentions.

    The crypto community is cautiously optimistic, hoping the support is genuine and not just a strategic move to capture crypto votes.

  • 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.

  • Asset Manager Bitwise Files for Spot XRP ETF

    Asset Manager Bitwise Files for Spot XRP ETF

    Crypto asset management firm Bitwise has taken a significant step to expand its crypto Exchange-Traded Funds (ETF) products by filing for a spot XRP ETF in addition to the already existing Bitcoin ETF, BITB, and Ether ETF (ETHW).

    Prior to the application, Bitwise had already taken the first step by registering a trust with the state of Delaware, hinting investors on the next move.

    Bitwise Unveils Next Plan With S-1 Filing

    Bitwise submitted the S-1 Application for a spot XRP ETF with the U.S. Securities and Exchange Commission (SEC) on Wednesday morning. If the SEC approves the filing, investors can access XRP, Ripple Labs’ native token, by purchasing the ETF directly without buying from a crypto exchange or owning a digital wallet.

    Although the SEC has not replied to the just-submitted filing, Bitwise officials have expressed optimism about their recent move and look forward to positive feedback from the agency. The $4.5 billion asset manager believes that XRP is a sustainable cryptocurrency that has gained the attention of many institutional crypto investors.

    Bitwise CEO Hunter Horsley said concerning the filing,

    “At Bitwise, we believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century,” he added, “It’s why, for the past seven years, we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP.”

    Prior to its latest filing, Bitwise extended its presence into the European financial market by acquiring ETC Group, a renowned crypto ETP issuing firm in London. The company promised to offer customers improved professional services. 

    XRP Recent Price Action

    XRP has not reacted positively to the recent developments and filing announcement, as the entire crypto market is down. 

    According to live data from CryptocurrenciesToWatch, XRP is the seventh-highest crypto by market capitalization, and it trades at around $0.5830, reflecting the bearish market condition.

    Due to the recent downtrend, the crypto market has lost about $500 million as many long derivatives trade positions have been liquidated. Notably, October is usually a bullish month. Thus, many traders still believe that the crypto market will rebound to a bullish move before the month ends.

  • 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.

  • South Korea Imposes $830K Fine on Worldcoin for Alleged Data Protection Violations

    South Korea Imposes $830K Fine on Worldcoin for Alleged Data Protection Violations

    South Korea’s privacy watchdog Personal Information Protection Commission (PIPC) has ordered the cryptocurrency project, Worldcoin Foundation, and its operating firm, Tools For Humanity Corporation (TFH), to pay 1.1 billion Korean won ($830,000) for alleged non-compliance with data protection laws.

    During its 16th plenary session on Wednesday, September 25th, the PIPC issued penalties and corrective actions to the two firms for infringing on the country’s data protection laws.

    As reported, the PIPC started probing Worldcoin in February, earlier this year, after receiving complaints about unauthorized biometric data collection in exchange for the firm’s digital tokens, Worldcoin.

    After confirming their human identity, users are issued a ‘World ID’ allowing them to set up an online wallet to manage their tokens.

    Worldcoin Faces Data Protection Violations

    Following the investigation, the PIPC discovered that Worldcoin collected iris information from about 30,000 Korean users out of the 93,463 that downloaded the World App and charged the firm with several violations.

    First, the body charged Worldcoin for collecting iris images and information from users without proper consent and notification of the purpose, retention, and use period. Secondly, the crypto project transferred the personal data collected overseas to countries like Germany without properly notifying users.

    Furthermore, Worldcoin and Tools for Humanity failed to implement sufficient age verification measures for minors under 14 and also did not provide a clear process for requesting deletion or suspension of iris code data.

    Therefore, the PIPC charged Worldcoin Foundation and TFH 725 million won ($545,000) and 379 million won ($285,133) respectively, for violating Korea’s Personal Information Protection Act, on sensitive data processing and international transfer.

    Worldcoin and Tools For Humans Corrective Measures

    While the PIPC did not ban sensitive data collection in South Korea, it outlined corrective actions for the company and its development team to ensure compliance.

    The commission ordered the Worldcoin Foundation to obtain separate consent for collecting sensitive data, use the data collected only for intended purposes, and also provide effective deletion functions.

    Meanwhile, the PIPC mandated Tools for Humanity to introduce age verification procedures within the World App and inform users of overseas data transfers.

    In a similar development, South Korean prosecutors raided Bithumb and Upbit crypto exchanges following an investigation.

  • 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.