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Anticipated Return of $9B Mt. Gox-era Bitcoin May Spur Market Anxiety

The potential return of over $9 billion worth of Mt. Gox-era Bitcoin in the coming weeks could unsettle the market and exert negative price pressure on Bitcoin, according to analysts at K33 Research. Earlier this week, some creditors of the now-defunct Mt. Gox crypto exchange shared updates on their claims, providing information about the amount of cryptocurrency and fiat owed to them, as well as completed repayment dates.

Mt. Gox Creditors Could Receive Payments Next Month

The new updates suggest that creditors might start receiving their Bitcoin as soon as next month, as noted by K33 Research analysts Anders Helseth and Vetle Lunde in an April 23 market note. The outstanding debt to Mt. Gox’s 127,000 creditors amounts to over $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $445.8 million in fiat currency (69 billion Japanese yen).

Helseth and Lunde caution that the release of Bitcoin may not necessarily result in immediate selling pressure. However, they emphasize that the substantial “overhang” of 142,000 BTC and 143,000 BCH could “spook the market” . Bitcoin is currently trading at just over $66,700, with recent volatility attributed to changing tensions in the Middle East and the Bitcoin halving that occurred on April 20.

Mt. Gox’s Troubled History

The Mt. Gox creditors have been eagerly awaiting the return of their funds for over a decade since the exchange’s collapse in February 2014 due to a series of undetected hacks. In January, the Mt. Gox trustee initiated contact with creditors to verify their identities and the crypto exchange accounts that would be used for repaying the owed Bitcoin and Bitcoin Cash. Some creditors had already begun receiving Japanese yen repayments by December of last year, and further fiat transfers were reported in March.

While the final repayment deadline for base repayments, early lump-sum repayments, and intermediate repayments is currently set for October 31, 2024, it remains subject to potential changes.

Potential Impact on Bitcoin’s Price

The return of Mt. Gox coins has the potential to significantly impact Bitcoin’s price in the coming weeks. The sheer quantity of 142,000 BTC and 143,000 BCH involved could unsettle the market, creating what analysts refer to as an “overhang”. This overhang could potentially put negative price pressure on Bitcoin, as investors may anticipate a flood of Bitcoin hitting the market.

Conclusion

The anticipated return of over $9 billion worth of Mt. Gox-era Bitcoin could potentially unsettle the market and negatively impact Bitcoin’s price. Creditors of the failed Mt. Gox crypto exchange have reported updates on their claims, suggesting that Bitcoin repayments could begin as early as next month. The sheer quantity of Bitcoin involved could create an “overhang” and potentially impact Bitcoin’s price in the coming weeks. Traders and investors will be closely watching the market for any signs of increased volatility or selling pressure.

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"Buckle Up" For Bitcoin's Next Bull Run, Cameron Winklevoss Says

Gemini CEO and co-founder Cameron Winklevoss believes that the next Bitcoin bull run coming up will be “dramatically different,” due to the innovative financial resources that crypto investors have access to nowadays and to the current economic infrastructure.

Winklevoss Anticipates Next BTC Bull Run

Compared to previous bull markets, the billionaire crypto philanthropist said that with the rise of infrastructure, the influx of capital, and better projects at hand, Bitcoin (BTC) is set for its next bull run:

“The next Bitcoin bull run will be dramatically different. Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!”

The Winklevoss brothers are on the same page regarding Bitcoin. Last week, Cameron’s twin brother and co-founder of Gemini, Tyler Winklevoss, commented on the US Federal Reserve’s economic stimulus strategy having a positive impact on Bitcoin and its pricing on the crypto market. Winklevoss stated that the Federal Reserve had set the stage for BTC’s next bull run. He referred to the fact that the US government is actively printing money in bulk in order to deliver an economic stimulus package to its citizens, to provide pandemic relief.

Americans Use First-Time Stimulus Check for BTC

What seems to be interesting however, is that according to a report by Coinbase CEO Brian Armstrong, instead of using their funds towards goods and services, many Americans directd their first-time stimulus checks of $1,200 towards investing in BTC funds.

So despite coronavirus and the economic downfall happening worldwide, things appear to be looking up for the cryptocurrency market. Data points hint that crypto investors’ capital have been on the rise. Furthermore, with the increase in regulatory policies and the clarity of them, the infrastructure of the crypto market has been improving considerably.

Why Was More Money Involved In the Last BTC Rally?

Researchers looked at two key points to explain why more money has been involved in the latest Bitcoin rally, where the dominant cryptocurrency underwent a huge surge.

First of all, Tether(USDT), the market capitalization of Tether, the biggest stablecoin on the cryptocurrency market, has surpassed $10 billion in assets. Secondly, Grayscale Investments, the big-time cryptocurrency investment firm, has recently achieved a new high in the Assets Under Management (AUM) department.

Stablecoin Tether On Top of Its Game

Tether has been up to now the biggest stablecoin on the crypto market. Investors worldwide have therefore relied a lot on the stablecoin to trade crypto. Countries with poor regulatory policies revolving around cryptocurrency regulation have favored Tether, as it is a stablecoin. With the rise in market cap of Tether to $10 billion, this may mean that cryptocurrency exchanges might be on the brink of a huge money influx, with more funds being used on them.

As to further explain why more money has been involved in the latest BTC bull run, researchers turn towards Grayscale’s crypto-asset trusts as an explanation. The crypto asset trust funds of the large-scale investment firm are arguably the most utilized investment vehicles employed by businesses and networks looking to gain exposure to cryptocurrencies.

Grayscale Investments Reaches $5.1 Billion

Recently, the assets under management by Grayscale Investments have achieved a new record, reaching an all-time high of $5.1 billion.

On the subject matter, CEO of Grayscale Investments, Barry Silbert, said that Bitcoin has too much support from US government officials to ever be dismissed and shut down. The CEO thinks that blockchain firms’ success with regulatory policies put forth by officials can be attributed to pro-blockchain groups, such as Blockchain Association. The latter is a group who has advocated for digital firms by appealing to the US Securities and Exchange Commission in the past.

Silbert thinks that the blockchain industry has come a long way, with more and more investors looking at Bitcoin as an interesting hedge. In a Twitter post, he spoke about his own personal experience with his cryptocurrency investment firm. Silbert said that in 2013, when his company launched a Bitcoin investment fund, everyone thought they were crazy. “Well, look at us now…,” he added.

This Week’s Bitcoin Bull Run

Overall, projects and companies in the Bitcoin and crypto industry seem to be increasing in quality. With the latest Bitcoin rally that happened earlier this week, there seems to be an indication that the cryptocurrency industry is on the rise. Bitcoin surged past the $10,000 mark on Monday, creating a buzz in the financial industry.

CEO of financial consultancy firm deVere Group, Nigel Green, was even bold enough to state that the cryptocurrency is set to potentially “knock gold from its long-held position” of being a safe-haven asset.

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ASIC Appeals Federal Court Ruling on Finder Wallet's "Earn" Product

An appeal has been submitted by the Australian Securities and Investments Commission (ASIC) against a decision made by a federal court that rejected the action that it had brought against Finder Wallet Pty Ltd and its cryptocurrency product known as “Earn”. The court had previously determined that Finder Wallet was in accordance with the laws governing financial services in Australia. This ruling has the potential to have substantial repercussions for future cases in Australia that involve cryptocurrencies and regulatory compliance.

To provide some context, the Australian Securities and Investments Commission (ASIC) initiated legal action against Finder Wallet in December 2023, saying that the firm had violated the rules governing financial services by offering its “Earn” product without first obtaining an Australian Financial Services Licence (AFSL). The Australian Securities and Investments Commission (ASIC) said that the product functioned as a debenture, which is a kind of financial instrument that requires disclosure with the regulator as well as the issuing of a target market statement. Finder Wallet reportedly failed to satisfy both of these requirements.

The actions brought by the Australian Securities and Investments Commission (ASIC) were dismissed by the Federal Court in March 2024. The Federal Court said that the ASIC had failed to prove that the “Earn” product offered by Finder Wallet was a debenture and that it was operating within the legal confines. In light of the fact that the monies that were transmitted to Finder Wallet were not meant to be used for the purpose of raising capital for the firm, the court dismissed the argument that the funds constituted a deposit or loan. The court, on the other hand, characterised the connection between Finder Wallet and its consumers as a contractual commitment, as opposed to the usual debt payback that is connected with debentures.

The Australian Securities and Investments Commission (ASIC) has filed an appeal against the verdict made by the Federal Court. The ASIC has expressed its concern that the “Earn” product was sold without the required licence or permission, which resulted in the absence of significant consumer safeguards. The appeal is an attempt to address the need for appropriate licencing and regulatory control in the cryptocurrency field. This is done with the intention of ensuring that consumers are appropriately protected when interacting with goods of this kind.

The decision of the appeal filed by the Australian Securities and Investments Commission (ASIC) might have substantial repercussions for the regulation of bitcoin goods in Australia. The purpose of this investigation is to evaluate whether or whether businesses who sell crypto-based goods that are comparable are required to get the requisite licences and comply with regulatory responsibilities . In addition, the appeal raises awareness about the significance of consumer protection measures in the cryptocurrency business, which is undergoing fast development.

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OKX Exchange to List WIF and MEW for Spot Trading

OKX, a well-known cryptocurrency exchange, has recently revealed its plans to list two new tokens, WIF and MEW, on its spot trading market. The announcement highlights the deposit and spot trading schedules for these tokens, providing an opportunity for users to engage in trading activities.

According to the announcement, WIF and MEW deposit services will be available from 7:00 am UTC on April 15, 2024. This allows users to deposit their WIF and MEW tokens onto the OKX platform in preparation for trading.

Spot trading for MEW against USDT will commence at 8:00 am UTC on April 15, 2024, while spot trading for WIF against USDT will begin at 9:00 am UTC on the same day. These trading pairs present an opportunity for users to buy and sell WIF and MEW tokens directly on the OKX platform.

Furthermore, the announcement states that withdrawals for WIF and MEW will be enabled at 10:00 am UTC on April 16, 2024. This ensures that users have the flexibility to transfer their tokens out of the OKX platform if they wish to do so.

WIF, also known as “dogwifhat,” is a meme coin on the Solana network. It features a dog wearing a hat as its logo and aims to capture the attention of the crypto community with its unique concept. The maximum supply of WIF tokens is set at 998,926,392.

On the other hand, MEW, the cat-inspired cryptocurrency, is determined to establish its dominance in the crypto realm. With the objective of surpassing its canine rivals, MEW aims to reclaim its position at the top of the food chain. The maximum supply of MEW tokens is set at 88,888,888,888.

As with any cryptocurrency investment, it is important to exercise caution and conduct thorough research before engaging in trading. Digital assets are highly speculative and subject to market volatility. It is essential to evaluate your risk appetite and make informed decisions regarding your investments.

For further information or inquiries, users are encouraged to reach out to OKX’s support center or connect with them on various platforms, such as Telegram and Discord. OKX advises users to refer to their Terms of Service and Risk & Compliance Disclosure for more details on trading digital assets.

In conclusion, the listing of WIF and MEW on OKX’s spot trading market presents an exciting opportunity for users to explore and engage in cryptocurrency trading. By following the provided schedules and conducting proper research, traders can take advantage of these newly listed tokens on the OKX platform.

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CoinGecko: 2024 Q1 Strong Crypto Industry Growth Propels Market Cap to $2.9 Trillion

The 2024 Q1 Crypto Industry Report by CoinGecko showcases the continued growth and development of the cryptocurrency market. The report highlights key statistics and trends observed during the first quarter of 2024.

Bitcoin (BTC) emerged as a top performer, growing by 68.8% and reaching an all-time high of $73,098. This growth was attributed to the approval of US spot Bitcoin ETFs in early January. The report also indicates that Bitcoin ETFs held over $55.1 billion in assets under management (AUM) by April 2, 2024.

Ethereum (ETH) also witnessed positive growth, with the total number of restaked ETH on the EigenLayer platform increasing by 36% to 4.3 million. Additionally, Solana memecoins experienced a surge in market cap, growing by $8.32 billion in Q1.

The NFT market remained active, with NFT trading volume across the top 10 marketplaces reaching $4.7 billion. Magic Eden emerged as the leading marketplace in terms of market share.

Spot trading volume on centralized exchanges (CEX) reached $4.29 trillion in Q1, the highest since Q4 2021. However, Ethereum’s share of decentralized exchanges (DEX) trading volume fell below 40%, indicating the increased attention given to other blockchain networks.

The report provides comprehensive insights into these developments, featuring 50 slides of analysis and data. It offers valuable information for investors, traders, and industry enthusiasts seeking to understand the current state of the crypto market.

CoinGecko’s 2024 Q1 Crypto Industry Report demonstrates the continued growth and innovation within the cryptocurrency industry. As the market expands and evolves, it is crucial to stay informed about the latest trends and developments to make informed decisions.

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Binance Adds APT/USDC, GALA/USDC, NEO/USDC, OMNI/BRL, and STX/USDC Trading Pairs

Binance, a leading cryptocurrency exchange, has unveiled its latest update, which introduces new trading pairs and the availability of Trading Bots services on the Binance Spot platform. This move is in line with Binance’s commitment to delivering an exceptional trading experience to its users and expanding their trading options.

Effective from April 19, 2024, Binance Spot users will have access to a selection of new trading pairs. The newly added pairs include APT/USDC, GALA/USDC, NEO/USDC, OMNI/BRL, and STX/USDC. By offering these additional trading pairs, Binance aims to provide users with more opportunities to diversify their cryptocurrency portfolios and engage in a wider range of trading activities.

One of the notable features introduced alongside the new trading pairs is the Trading Bots services. Trading Bots allow users to automate their trading strategies, enabling them to execute trades based on predefined algorithms. This feature is designed to facilitate faster and more efficient trading, saving users valuable time and effort.

However, it’s important to note that eligibility to trade these new pairs is subject to certain restrictions based on the user’s country or region of residence. Binance has identified a list of countries that are currently restricted from trading the new pairs. These countries include Canada, Cuba, Crimea Region, Iran, Netherlands, North Korea, Syria, the United States of America, and its territories (American Samoa, Guam, Puerto Rico, the Northern Mariana Islands, the U.S. Virgin Islands), as well as any non-government controlled areas of Ukraine. Binance reserves the right to update this list in accordance with relevant laws and regulations.

To gain access to the new trading pairs and utilize the Trading Bots services, Binance Spot users are required to complete the account verification process. This verification procedure ensures compliance with regulatory requirements and contributes to maintaining the security and integrity of the platform.

Binance remains committed to enhancing users’ trading experiences by continuously introducing new features and expanding its services. In addition to the new trading pairs and Trading Bots, Binance offers a range of other services such as margin trading, peer-to-peer trading, options trading, and more. Users can also benefit from educational resources provided by Binance Academy, stay informed through the blog and research section, and explore various opportunities within the cryptocurrency industry.

Please note that the value of digital assets is subject to high market risk and volatility. Users are advised to exercise caution and seek professional advice before making any investment decisions. Binance cannot be held responsible for any losses incurred by users.

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Reasons Behind the Success of the Binance Coin

The native coin of the world’s largest crypto-exchange has returned to its previous historical maximum, while others remain 80-90% lower. The BNB token quickly rose and holds the seventh line in the ranking of cryptocurrencies in terms of market capitalization.

Although no one knows for sure why Binance Coin performed so well, there are several factors that have definitely had a positive effect.

Binance burns BNB tokens every quarter

Each quarter, Binance burns 20% of BNB, which the exchange collects in the form of commissions from the platform. This removes them from circulation forever. Binance will continue to burn Binance Coins until the 100 million coins threshold has been reached.

Token burning, as a rule, has a certain effect on the coin. With a decrease in circulating supply, the balance of supply and demand shifts. Supply is reduced and maintains constant demand, pushing prices higher.

Burning coins also have a positive psychological effect on the market. However, in a rational world, this effect is minimal. The exchange withdraws from circulation only 1-2% of the Binance Coin issue, but the price does not show a larger increase immediately after burning. To feel the real changes in the rational world, it would take more time and changes in proposals on a much larger scale.

BNB now has actual utility

Binance Coin technically already had some utility before. With a token, you can pay for a cryptocurrency transaction and a Binance commission to get a discount, as well as earn rewards on several different platforms. However, in the above functions, the Binance Coin coin is not unique.

The actual usefulness of Binance Coin appeared with the launch of the Binance Chain and will continue with the subsequent launch of the corresponding decentralized exchange (DEX). Binance Chain was launched on Apr. 18. On Apr. 23, the Binance team switched BNB from the ERC20 token to its own token in the new chain.

Then Binance Coin will be used “as payment for every transfer that goes online.” Judging by the current volume of Binance, this change should lead to a significant increase in demand for BNB.

But why now?

The announcement of the Binance Chain is not new. The company announced its plans in March 2018. But now the team has produced something tangible. By the end of February this year, they launched the Binance Chain test network. After the news about the launch of testnet, and then mainnet, the price of BNB rose a couple of times well.

Binance price spikes after releases

Binance’s reputation is ahead of itself. Perhaps the most influential (but difficult to measure) factor is Binance’s stellar reputation in the crypto community. Since speculation is considered a healthy part of investing in cryptocurrency, sometimes unrelated determinants can change the price of a token.

Binance is often the first step investors take to altcoins. Therefore, it is logical that Binance Coin will be one of the first altcoins that investors will want to purchase.

Changpeng Zhao (CZ), CEO of Binance, is a famous figure in the crypto space with a large number of followers on Twitter. Many praise him as an example of how to properly manage cryptocurrency exchanges. Many think that Changpeng Zhao might be more generous. In any case, only one of his presence continues to attract attention to the platform’s native coin.

The more investors learn about the token, the more chances it has to grow in the right direction. Finally, many years of positive experience using the Binance platform brings confidence to the BNB base token. Most people have only very minor comments about the operation of the exchange.

The Future of Binance Coin

There are many risks in investing in BNB, because in Binance Coin there is still not enough real usefulness. The coin does not provide opportunities for use in smart contracts, therefore, Binance-based DApp applications are practically not used.

Added to this is the weak security potential of the coin. The company behind the exchange has already faced some regulatory problems, which forced it to move to another country. Future legal problems can cause a sharp drop in prices if they are serious enough.

As with any investment, especially cryptocurrency, it is important to conduct your own research and keep track of any new finds. Although Binance Coin seems like a delicious investment opportunity today, anything can happen tomorrow.

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Facebook Libra: The Latest Crypto Used in Illegal Financial Activities?

“With the evolution of virtual currencies and new marketplaces, nefarious actors are continuously adapting to find new ways to engage in illegal financial activity.” said U.S. Representatives Emanuel Cleaver, during the briefing with Financial Crimes Enforcement Network (FinCEN) on 27 June.

The discussion with FinCEN focused on the use of AI and ML technology to detect illicit financial activity. Cleaver is concerned about Facebook’s Libra project during the briefing. He is doubtful on Facebook’s ability to identify bad actors and thus the ability to prevent financial fraud. He added “We’ve seen the significant damage that foreign adversaries and bad actors have wrought on our democracy through Facebook’s platform, and that was simply through messaging and advertising.”

Cleaver has been very active in encouraging corporations and regulators to prevent the use of cryptocurrencies in illegal activities. For instance, Cleaver sent a letter in July 2018, calling on FinCEN to investigate the case where 12 Russian intelligence officials had been accused of using cryptocurrencies to interfere the 2016 election and request FinCEN to provide further guidance on preventing the financial crimes. In March 2019, Cleaver also sent a letter to FinCEN Director Kenneth Blanco to host a briefing on the working progress of the bureau and steps to be taken.

Congressman Trey Hollingsworth said “I appreciated Director Blanco and his team for sharing the Bureau’s ongoing efforts to use AI/ML to combat money laundering and to collaborate with both financial institutions and technology providers to help strengthen our financial system.”

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Response to Facebook Libra? EU Banks Can Deploy Payment System By 2020

All banks in the eurozone could share the instant payment system at the end of 2020, as reported by Reuters on 26 June.

The real time payments are available since 2017. However, only half of the banks in the eurozone have adopted the technology and it is mainly used for domestic payments. Now, the adoption on payment systems may speed up due to the threat from competitors such as Facebook that use cryptocurrencies to facilitate seamless payments across their global users.

Director general of the European Payments Council (EPC), Etienne Goosse commented on the impact of Facebook Libra “They come with a global solution, under a global brand offering many things that the consumers seem to find wonderful.” Goosse added that instant payments are being adopted by 60% of lenders and payment service providers within the eurozone, and it is expected to reach to all banks in the bloc by the end of 2020.

The European Central Bank launched the TARGET Instant Payment Settlement (TIPS) in November 2018, which enables real-time transaction mitigating fragmentation risks in the European retail payments market. However, it is argued that these mechanisms are not interoperable among lenders that are not members of the same clearinghouse, and each of these systems that cover only a few dozen banks.

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Donald Trump is “Not a Fan” of Bitcoin and Crypto, Citing High Volatility

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money.” Donald Trump tweeted on 11 July.

Exhibit 1. How Donald Trump views cryptocurrencies

Source: Donald Trump Twitter

The tweet came after the night of “Social Media Summit” which did not include any representatives from social media companies such as Facebook, Twitter or Google. The summit was a closed-door conference inviting many right-wing leaders instead. Trump has been complaining about the slowdown for the number of his Twitter followers during the summit, suggesting a conspiracy without further evidence.

Trump also believed Facebook’s Libra to have little standing or dependability. He added that Facebook must seek a new Banking Charter and comply with all domestic and international banking regulations. He then concluded:

“We have only one real currency in the USA. It is by far the most dominant currency anywhere in the world, and it will always stay that way. It is called the United States Dollar!”

In June, Trump’s tweet demanding Twitter to let banned Conservative Voice back to the platform, and said: “It’s called Freedom of Speech.” Trump also tweeted in May saying he will continue to monitor the “censorship of AMERICAN CITIZENS on social media platforms” after Facebook banned seven users’ accounts including right-wing media personalities Paul Joseph Watson, Milo Yiannopoulos and Laura Loomer for policies against “dangerous individual and organizations”.