Cryptocurrencies To Watch

Tag: Top Crypto News

  • 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.

  • SEC Charges 3 Firms, 9 Individuals in $25M Crypto Manipulation Case

    SEC Charges 3 Firms, 9 Individuals in $25M Crypto Manipulation Case

    The United States Securities and Exchange Commission (SEC) has charged three firms and nine individuals purporting to be market makers with engaging in a coordinated scheme to manipulate the prices of several crypto assets on crypto exchanges.

    According to a press release, the defendants orchestrated a trading scheme that artificially inflated the trading volume and price of multiple crypto assets, a fraud commonly known as a “pump and dump.” 

    Over $25M Confiscated

    The SEC confiscated over $25 million in crypto and shut down several trading bots that facilitated millions of dollars in wash trades across approximately 60 digital assets.

    The three market makers, ZM Quant, CLS Global, and MyTrade, and their employees are accused of participating in wash trading on behalf of NexFundAI, a crypto token created by the Federal Bureau of Investigation (FBI) as part of the government’s probe. Additionally, a fourth market maker, Gotbit, its CEO, and two directors are also facing charges for running a similar scheme. 

    While the SEC charged 12 entities, the U.S. Department of Justice (DOJ) listed 18 people facing charges in the combined cases.

    Four Plead Guilty

    The SEC noted that the defendants used a technique called “wash trading,” a form of market manipulation in which an entity simultaneously sells and buys the same financial instruments, creating a false impression of market activity without incurring market risk or changing the entity’s market position. 

    This practice is illegal because it misleads other investors into believing that an asset has a higher demand, which can artificially drive up prices.

    “With purported promoters and self-anointed market makers teaming up to target the investing public with false promises of profits in the crypto markets, investors should be mindful that the deck may be stacked against them,” said Sanjay Wadhwa, Deputy Director of the SEC’s Division of Enforcement.

    The report also stated that four defendants have pleaded guilty, another has agreed to do so, and the FBI has arrested three additional individuals this week in Texas, the United Kingdom, and Portugal. 

    Jodi Cohen, the special agent leading the FBI’s Boston Division, explained that this initiative aimed to uncover and interrupt the activities of alleged fraudsters.

    The court will decide the amounts for disgorgement, prejudgment interest, and civil penalties.

  • Crypto.com Files Lawsuit Against SEC to Safeguard the Future of Crypto in the U.S.

    Crypto.com Files Lawsuit Against SEC to Safeguard the Future of Crypto in the U.S.

    Singapore-based crypto exchange Crypto.com has filed a lawsuit against the United States Securities and Exchange Commission (SEC).

    The crypto exchange has joined forces with other companies to actively defend themselves and take a stand against a federal agency overstepping its legal authority, and protect the future of the crypto industry in the U.S.

    “Our decision to sue the SEC follows our receipt of a Wells notice from the Commission staff, illustrating that the SEC’s unauthorized and unjust regulation by enforcement campaign continues despite bipartisan indications that the next Administration will take a more constructive and effective approach to advancing crypto in the U.S,” the firm wrote.

    Legal Action Against the SEC

    The firm noted in its lawsuit that the SEC has overstepped its statutory boundaries by unilaterally expanding its jurisdiction. Additionally, it questions the regulator’s unlawful rule that treats nearly all crypto assets as securities, regardless of how they are conducted.

    The company also noted that its primary objective is to stop the SEC’s unlawful overreach and violation of federal law.

    “Crypto.com is committed to using all regulatory tools available to help bring certainty to the industry, including this petition for joint rulemaking under the Dodd-Frank Act,” the company added.

    The lawsuit claims that the SEC has failed to offer clear guidelines or a consistent regulatory framework, forcing crypto companies to navigate compliance through uncertainty. Crypto.com argues this has led to an unfair landscape, where certain firms are singled out while others face no scrutiny.

    Crypto.com believes that security and compliance are essential to driving mainstream adoption of crypto, and all of its achievements are centered around safety, security, and regulatory adherence.

    SEC Targets Major Platforms

    Over the years, the SEC has ramped up enforcement, targeting various crypto platforms, including high-profile exchanges like Binance, Kraken, and Coinbase. The securities watchdog claims that many tokens traded on these platforms are unregistered, falling under its jurisdiction.

    Exchanges have also told the agency that crypto assets are not securities. For instance, in September 2024, US-based crypto exchange Kraken replied to the SEC charges of offering crypto asset securities and investment contracts.

    The exchange stated that the SEC violated federal securities laws and that its securities classification is unclear.

  • 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.

  • 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.

  • Indiana Man Pleads Guilty to $37M Crypto Theft

    Indiana Man Pleads Guilty to $37M Crypto Theft

    An Indiana man, Evan Frederick Light, has pleaded guilty to charges related to a major cybercrime involving the theft of over $37 million in crypto from nearly 600 victims.

    The 21-year-old Lebanon pleaded guilty on September 30 to conspiracy to commit wire fraud and money laundering. 

    Light Turned to Crypto Mixers

    On October 1, the United States Department of Justice (DOJ) reported that Light illegally accessed an investment firm’s computer systems to obtain customer data. He subsequently exploited the information to steal crypto assets from clients. 

    Following the report, Light funneled the stolen funds through crypto mixers and online gambling platforms. His primary aim was to obscure his identity and conceal the assets’ origin.

    “Although this defendant tried to hide in the shadows of a cyber underworld, he was not beyond the reach of our team, and today’s guilty verdicts should serve as a reminder that this Office and its law enforcement partners will bring cyber criminals to justice,” said U.S. Attorney Ramsdell.

    Up to 20 Years in Prison

    According to the DOJ, Light faces up to 20 years in prison for each count, three years of supervised release, and a $200 special Federal Crime Victims Fund assessment. Restitution may also be included.  

    Before the now-convicted Indiana man pleaded guilty, he initially pleaded not guilty in South Dakota on June 15, 2023, where he was charged.  

    The DOJ’s complaint noted that the offenses occurred between 2021 and May 2023, with Light collaborating with at least one other accomplice who remains unidentified. 

    Alvin M. Winston Sr. of FBI Minneapolis noted that cyber intrusions significantly threaten individuals and organizations. He expressed his commitment to safeguarding the public.

    He further stated that the FBI will continue collaborating with its partners to ensure that those who misuse technology for financial gain are brought to justice, regardless of the complexity or scope of operations.

  • Over $500M in Long Position Liquidated as Bitcoin Crashes to $60K

    Over $500M in Long Position Liquidated as Bitcoin Crashes to $60K

    The recent crash in the crypto market, induced by news of Iran attacking Israel, has triggered a wave of liquidation, with more than half a billion dollars in long positions liquidated.

    The news of the attack caused bitcoin (BTC) to crash to $60k from over $64k, as investors fear an impending World War III.

    Bullish Crypto Traders Caught Unaware

    The sudden plunge caused a heavy blow to futures traders, marking their largest losses since early August.

    Data from crypto derivative analysis platform CoinGlass revealed that Bitcoin traders who had opened long positions lost more than $127 million, while Ethereum (ETH) positions saw nearly $107 million in liquidations.

    Other altcoins collectively suffered over $85 million in liquidations, the highest amount since July, while memecoin Pepe (PEPE) contributed an unexpected $10 million.

    The market crash and mass liquidation started hours after Iran launched missiles at strategic Israeli locations, prompting Israel to warn of potential retaliation in the days ahead.

    Crypto’s Uptober Having a Bad Start?

    Bitcoin dropped to a low of $60,300 late Tuesday, marking its worst start to a historically bullish month, before rebounding above $61,500 at the time of writing.

    Data also revealed that nearly 86% of all futures positions were bullish, as traders anticipated higher prices in the coming weeks.

    Historically, October is favourable for Bitcoin, with only two losing October since 2013, averaging a return of 23%. As such, the 10th month is popularly known as “Uptober.”

    Furthermore, Bitcoin historically performs well after presidential elections in the United States, and some speculators see BTC reaching new highs by the end of the year if history repeats itself.

  • Australian Police Confiscate Crypto Assets Worth $6.4M Linked to Crime

    Australian Police Confiscate Crypto Assets Worth $6.4M Linked to Crime

    The Australian Federal Police (AFP) has seized A$9.3  million (equivalent to $6.4m) worth of cryptocurrencies belonging to Jay Je Yoon Jung, a 32-year-old Nawee man linked to a criminal messaging app.

    The latest development is part of an ongoing investigation dubbed Operation Kraken, which targets organized criminal activities.

    AFP Deciphers Suspect’s Crypto Seed Phrase

    The 32-year-old suspect is allegedly the mastermind behind an encrypted messaging app called “Ghost,” which authorities believe facilitate communication between crime networks.

    On October 2, the AFP announced that the crypto assets were seized after an analyst from the Criminal Assets Confiscation Taskforce (CACT) cracked the account’s seed phrase by examining digital devices found at the home of Jung.

    After accessing the wallet holding the crypto assets, the AFP transferred them into the police’s custody. The AFP also noted that the crypto asset will be transferred to the government in due course and could be used to support future law enforcement programs. 

    AFP Warns Crypto Criminals

    According to the report, this is the second time digital assets have been confiscated in the AFP’s investigation targeting all alleged Ghost app developers and users. The first raid in August led to the seizure of $1.4 million in crypto and properties.

    “Whether you have tried to hide them in real estate, cryptocurrency, or cash, we will identify your ill-gotten goods and take them away from you, leaving you with nothing,” AFP acting Commander Scott Raven said.

    The agency noted the ongoing results from Operation Kraken, which includes  46 arrests, 93 search warrants conducted, intervention in 50 threats to life/threats to harm, prevention of more than 200kg of illicit drugs from harming the Australian community, seizure of 30 illegal firearms/weapons, A$2.37 million ($1.60 million) in cash seized, and restraint of A$11.9 million ($8.2 million) in assets.

    According to the AFP, Jung was arrested on September 17 and charged with five crimes, including aiding a criminal organization.

    The police noted that Jung specifically developed “Ghost” for criminal use, with individuals using the platform to coordinate activities such as drug trafficking, money laundering, and contract killings.