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Grayscale Bitcoin Trust Could See $2.7B of Outflows if ETF Conversion Is Approved: JPMorgan
Grayscale Bitcoin Trust (GBTC) shares have been bought in the secondary market this year at a deep discount to net asset value (NAV) in anticipation the trust’s conversion to an exchange-traded fund (ETF) will be approved by the U.S. Securities and Exchange Commission (SEC), JPMorgan (JPM) said in a research report Thursday. The bank estimates a net $2.5 billion has flowed into GBTC since the start of the year, increasing to $2.7 billion if adding the covering of short interest.
“Assuming this buying flow was mostly speculative in anticipation of GBTC being converted to an ETF, then it is likely that this $2.7b would come out of GBTC as these investors take profit once GBTC gets converted,” analysts led by Nikolaos Panigirtzoglou wrote. “If this $2.7b exits completely the bitcoin space then such an outflow would of course put severe downward pressure on bitcoin prices,” the authors wrote. “If instead most of this $2.7b shift into other bitcoin instruments such as the newly created spot bitcoin ETFs post SEC approval, which is our best guess, then any negative market impact would be more modest.” Still, the “balance of risks for bitcoin prices is skewed to the downside in our opinion as some of this $2.7b is likely to completely exit the bitcoin space,” the bank said.
PancakeSwap proposes veCAKE launch to boost governance influence and liquidity
Multi-chain decentralized exchange PancakeSwap has proposed introducing vote-escrowed CAKE (veCAKE) and voting gauges over the next few days, with over 98% of votes currently in favor of the launch. The move is “designed to empower CAKE holders with increased governance influence, boost liquidity across our pools and supercharge rewards for CAKE stakers,” according to the proposal.
PancakeSwap’s Q4 roadmap, voting gauges enable veCAKE holders to vote on the distribution of CAKE farm emissions. This means that CAKE holders, stakers and protocols can start accumulating veCAKE and leverage their holdings to influence reward distributions in different liquidity pools on the decentralized exchange. In return, they receive "ve" tokens, granting them more substantial voting rights in governance decisions and often higher protocol rewards. It aims to promote long-term engagement and align user interests with a protocol's success, moving away from short-term speculation and toward sustained participation and decision-making.
Bitcoin Long Term Holders Supply Hit New High With Positive Market Signs
In a remarkable turn amidst Bitcoin’s recent market fluctuations, data from HIVE Digital Technologies reveals an extraordinary trend among long-term holders. Often referred to as “hodlers,” these individuals and entities, including notable names like Microstrategy and Grayscale, form the bedrock of Bitcoin’s ecosystem. Renowned for resisting panic selling during market downturns, their resilience is proving crucial in navigating the current period of uncertainty.
Bitcoin long term holders supply has reached an unprecedented milestone, totaling an astounding 14.83 million BTC. This surge serves as a testament to the unwavering belief in Bitcoin’s intrinsic value and its potential to revolutionize the financial landscape. Remarkably, despite the continuous increase in overall Bitcoin supply, the percentage of BTC held by low-time preference investors remains at a record high. This data surfaces at a time when the cryptocurrency markets are experiencing prolonged periods of low volatility, attributed to the absence of favorable catalysts, challenges in sustaining a crypto ecosystem, and a general lack of interest among retail investors for tokens.
Hacker Steals $27M in Tether From Wallet Linked to Binance Deployer
A hacker stole $27 million worth of tether (USDT) from a wallet linked to the Binance deployer over the weekend, according to blockchain analyst ZachXBT. The $27 million loot was converted to ether (ETH) before being sent to exchanges FixedFloat and ChangeNow. All funds were then bridged to bitcoin (BTC) via the THORChain bridge. According to on-chain data, the victim's wallet had received ether via two separate wallets from the Binance deployer in 2019.
"The user made a withdrawal from Binance, which was valid and authorized on our platform. Unfortunately, the DeFi wallet that received the withdrawal was compromised. While this is outside of our scope of control, Binance's security team is looking into the matter and we will provide assistance where we can," a Binance spokesperson told CoinDesk. THORChain has become an epicenter for hack-related activity over the course of the year – in June hackers that stole $35 million from Atomic Wallet used THORChain to conceal the ill-gotten gains, and last month THORSwap put its platform into maintenance mode after a series of FTX hack-related trades.
Vanguard Group Bitcoin ETF Will Not Be Launched Because Of Intrinsic Value
Vanguard Group’s CEO, Tim Buckley, has confirmed that the asset management giant will not pursue Bitcoin Exchange-Traded Funds (ETFs), distinguishing itself from competitors like BlackRock and Fidelity. A Vanguard spokesperson cited similar reasons for not launching a Vanguard Group Bitcoin ETF as the company had for never creating a gold ETF, emphasizing Bitcoin’s perceived lack of “intrinsic value,” absence of cash flow, and extreme volatility. Market indicators also signal increasing readiness for cryptocurrency products, with inflows into digital asset funds reaching their highest weekly level since July 2022.
In contrast to BlackRock and Fidelity, which recently announced proposals for Bitcoin spot ETFs, Vanguard remains steadfast in its decision. When asked about the possibility of a Vanguard Group Bitcoin ETF or cryptocurrency ETF, Buckley clarified that Vanguard’s focus lies with asset classes suited for long-term portfolios, and they do not view Bitcoin as fitting within that framework. Currently, BlackRock’s application for a spot Bitcoin ETF is awaiting review by the Securities and Exchange Commission (SEC). The regulatory body has expressed skepticism toward the cryptocurrency sector in the past, denying similar applications while permitting Bitcoin futures ETFs. However, hopes for regulatory approval have been bolstered by Grayscale Investments’ recent legal victory against the SEC. The court ruling suggests that the path to a spot Bitcoin ETF may be clearer.
UK confirms plans to regulate crypto industry with formal legislation
The U.K. government on Monday confirmed plans to regulate the cryptocurrency industry, announcing in a consultation paper that it will look to bring in formal legislation for crypto activities by 2024. The government published its response to a consultation paper issued earlier this year, which outlined recommendations on regulating the crypto industry. In the Monday paper, the government said it intends to bring a number of cryptoasset activities under the same regulations that govern banks and other financial services firms.
The government’s proposals include stricter rules for exchanges, custodians that store crypto on behalf of clients, and crypto lending companies. The U.K. also proposes stricter regimes for market abuse and cryptoasset issuance and disclosures. The government aims to introduce laws for the crypto industry before Parliament by 2024, according to the paper. The EU set out a clear framework for digital assets with its MiCA (Markets in Crypto-Assets) regulation, including a licensing process for crypto firms. The U.K. is further ahead in the process than other tech leading nations. Numerous bills are going through Congress, but the U.S. is far behind others when it comes to bringing about formal federal laws for the crypto industry.
Sam Bankman-Fried Tells Jury 'Run on the Bank' Felled FTX
NEW YORK — Sam Bankman-Fried continued his defense Monday against allegations he committed fraud and conspired to commit other forms of fraud in operating FTX and Alameda Research. Continuing a trend from Friday, when Bankman-Fried's lawyers kicked off their direct examination, the FTX founder corroborated some details from company insiders who testified against him earlier in the trial while providing alternate explanations – downplaying his culpability – for certain key events.
Toward the end of his defense lawyer's questioning, Bankman-Fried walked the jury through the events of August through November of 2022, when FTX rapidly morphed from crypto kingpin to bankrupt company. Bankman-Fried zoomed in on the aftermath of an award-winning Nov. 2, 2022, CoinDesk scoop that revealed Alameda's secretly precarious financial position – characterizing the events that followed as a "run on the bank," an interpretation prosecutors moved to strike for the jury. (It was the same phrase used by former Enron CEO Jeff Skilling when explaining that company's spectacular collapse to Congress more than 20 years ago; he ended up serving 12 years in prison for fraud.)
Sam Bankman-Fried’s perspective on FTX fall
Sam “SBF” Bankman-Fried took the stand this week to testify in his ongoing criminal trial in the United States District Court for the Southern District of New York, denying any wrongdoing between FTX and Alameda Research while acknowledging making “big mistakes” during the company’s fast-paced growth. During the hearing, Bankman-Fried struggled to answer questions raised by government attorneys, whereas he appeared much better prepared the following day when facing the jury.
Bankman-Fried’s testimony this week include denying directing his inner circle to make millionaire political donations in 2021, as well as claims that FTX’s term of use covered transactions between Alameda and the crypto exchange. Moreover, the former CEO stated that he had requested additional hedging strategies for Alameda throughout 2021 and 2022, but they were never implemented. The defense is expected to conclude Bankman-Fried’s examination on Oct. 30, followed by the prosecution’s cross-examinations and closing arguments from both sides. Prosecutors also hinted at a rebuttal witness next week, who is someone called to prove that the testimony of another witness is false or inaccurate.
Breaking: US Core PCE Inflation Slows To 3.7% But Higher MoM; Will US Fed Pivot?
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New Floki Staking Feature Will Appear Soon To Boost The Ecosystem
Floki, the renowned memecoin inspired by Elon Musk’s dog and a Viking character, is set to revamp its ecosystem with a new Floki staking feature and a utility token. The primary means of earning the upcoming utility token, which remains unnamed, will be through the Floki staking feature. Notably, there will be no pre-sale or fundraising activities for these tokens. The majority of the token supply will be accessible exclusively through staking FLOKI.
Users will have the opportunity to lock up their FLOKI tokens for periods ranging from 3 months to 4 years to earn the reward token, as detailed in a DAO proposal shared with CoinDesk. This strategy is expected to decrease the circulating supply of FLOKI tokens significantly, thereby adding substantial value to the FLOKI token. The Floki staking feature involves locking tokens in exchange for annualized yield rewards, a move that is likely to attract increased investor capital to the Floki ecosystem. While Floki has faced recent declines in its market value, it remains a prominent name in the meme coin space. Its strong community and strategic partnerships position it for a potential price resurgence, making it an attractive choice for crypto investors looking toward the future.
Coinbase Trading Volume Slows Further as Crypto Winter Continues: Berenberg
Coinbase’s (COIN) cryptocurrency trading volumes in the U.S. appear to have weakened more than expected in the third quarter, investment bank Berenberg said in a research report on Tuesday. The crypto exchange’s trading volume fell around 17% sequentially and by about 52% year-on-year, the Berenberg report said, citing The Block. Coinbase will report its third-quarter results on Nov. 2. “We continue to view COIN’s consumer take rate as being at risk of compression due to competition for market share within a lower volume crypto space,” the bank said.
Analyst led by Mark Palmer said that, “The primary driver of our cautious stance towards Coinbase Global is not our concern about the company’s operating performance during the next couple of quarters, but rather on the threats to its business from the various regulatory actions and litigations that it faces in the U.S., as well as others that it could face in the future as the regulatory crackdown on crypto continues.”. Coinbase, its shares are trading at a valuation close to that at which they traded in late 2021, which was the height of the last crypto boom, the report added, noting that the stock has risen more than 112% this year versus a 72% gain for bitcoin (BTC) and a 29% uplift for the Nasdaq stock index.
Ethereum Co-founder Vitalik Buterin Moves $15M of USDC to Gemini
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Ripple Institutional Investors are Attracted In Dubai
Ripple institutional investors continues to draw in Dubai, according to a new report from Sologenic, an XRP Ledger-based platform. Ripple institutional investors is making strides in Dubai and the MENA region, despite its legal battle with the SEC. The establishment of a new office at the Dubai International Financial Centre shows their commitment to global expansion. Ripple’s CEO, Brad Garlinghouse, shared that the XRP Ledger has over 4.8 million wallets, with 20% from the MENA region, indicating the increasing demand for Ripple solutions there.
Despite the legal dispute, Ripple serves a global clientele, with over 90% of its operations outside the US. The MENA region is significant for Ripple as it has key clients there, including SABB, Qatar National Bank, Lulu Financial Holdings, Al-Ansari Exchange, and RAK Bank. Sologenic, a UAE firm, aligns with Ripple’s vision and has onboarded over 200,000 customers onto the XRP Ledger, showing the growing acceptance of Ripple’s solutions in the institutional sphere. Ripple institutional investors resilience and appeal to demonstrate their commitment to global expansion, with the MENA region as a pivotal hub. Furthermore, Sologenic, a UAE-based firm, shares Ripple’s vision and has successfully onboarded over 200,000 customers onto the XRP Ledger.
$730M Worth Of BTC And ETH Options Expire On October 6th
$730M worth of BTC and ETH options expire soon. Market sentiment, liquidity, and holiday factors influence crypto trends. On October 6, the market is bracing for the expiry of a substantial number of options contracts. Specifically, 14,000 BTC options, valued at $400 million, and 200,000 ETH options, valued at $330 million, are set to expire. BTC has been driving the week’s uptrend, yet overall implied volatilities (IVs) have remained relatively subdued. Lower trading volumes during Asian hours due to holidays have contributed to this trend.
BTC Options Data: There are 14,000 BTC options expiring with a Put Call Ratio of 0.89, a maxpain point of $27,000, and a notional value of $400 million. ETH Options Data: Meanwhile, 200,000 ETH options are about to expire with a Put Call Ratio of 0.87, a maxpain of $1,650, and a notional value of $330 million. However, historical data shows that Q4, especially October, tends to be an uptrend season, offering hope for increased activity in the market. Looking back at the September 29 options data, there were 118,000 BTC options with a Put Call Ratio of 0.58, a max pain point of $26,500, and a notional value of $3.2 billion. Additionally, 1.11 million ETH options were expiring with a Put Call Ratio of 0.46, a max pain point of $1,650, and a notional value of $1.8 billion. Looking back at the September 29 options data, there were 118,000 BTC options with a Put Call Ratio of 0.58, a max pain point of $26,500, and a notional value of $3.2 billion.
Cardano-Powered DeFi Platform Empowa Takes on Africa’s Housing Crisis
In the face of exorbitant mortgage rates crippling the housing market in Africa, Coinbase, a leading cryptocurrency exchange, has spotlighted the potential of blockchain technology to radically transform the situation.
The exchange has specifically highlighted the innovative efforts of Empowa, a decentralized finance (DeFi) platform powered by Cardano (ADA), that aims to tackle the housing affordability crisis in Africa.
Empowa has set an ambitious mission: to enable 1 million African families to become owners of climate-smart homes by 2030. The company is determined to disrupt the current real estate market, which is ridden with high mortgage rates. In Zimbabwe, for instance, the rate stands at an almost prohibitive 45%, according to Empowa. Such high finance costs have perpetuated a vicious cycle of unaffordable housing across the continent.
The Empowa team, in their white paper, have underlined the severity of the issue, stating that low levels of investment, high interest rates, and short finance terms (if finance is even available) have resulted in an extremely high cost of capital. The 2020 Centre for Affordable Housing (CAHF) Annual report states that the mortgage rate in Zambia is 32%, while it’s at least 25% in Guinea, Nigeria, and Zimbabwe.
KuCoin Became The First Exchange That Listed Islamic Coin, But New Listings Are On Its Way
According to the Islamic Coin's socials the official listing of Islamic Coin has launched October 10th on KuCoin. Islamic Coin also announced that KuCoin is only a kickstarter and there will be new listings this year on other top-tier CEX and DEX platforms. That means ISLM will receive new liquidity and improve its price.
Islamic Coin is backed by top names in finance and UAE Royal Family members on Executive Board. The mission of the company is to empower 1.8B+ Muslims with a gateway to Shariah-compliant Web3. The coin has the biggest Twitter account among crypto Muslim community with 1.3M followers. The project has already secured $400M from private investments and from ABO Digital. Collaborations with Sushi and Pyypl further expand Islamic Coin's ecosystem, providing liquidity and staking assets, and setting the stage for lucrative token mining opportunities. If you want to secure ISLM before new liquidity hits - check KuCoin to buy ISLM now.
US Presidential Candidate Vows to Protect Bitcoin From Government Interference
U.S. presidential candidate Vivek Ramaswamy says the government is “threatened by the existence of Bitcoin,” emphasizing that if the cryptocurrency becomes more popular, it would create “a threat to the incumbent status of the U.S. Federal Reserve itself.” He promised to ensure the government is “staying the heck out of the business of those who are innovating” if he’s elected president.
“My view is I’m against corporatism which is the merger of state power and private power to together coordinate and do what can’t be done,” he detailed. “I, instead, have a different vision, which is the government should get the hell out of the hair of Bitcoiners.” He emphasized: “It’s not how do we integrate. It’s how do you actually realize the initial promise of being an alternative Wild West that’s a true frontier for pioneers and explorers without being constrained.”. He warned: “That’s just the excuse they are using. Part of this is they want to create a surveillance state … to be able to monitor how you are using your energy. If they can monitor that, they can monitor anything.”
🗞️US Options Exchange Cboe To Promote Margined Bitcoin And Ethereum Futures
Cboe Digital, a leading cryptocurrency platform, has revealed its groundbreaking plan to initiate trading and clearing in margin futures on Bitcoin and Ether, commencing January 11, 2024. Dedicated to instilling trust, transparency, and responsible innovation in crypto markets, US options exchange Cboe adopts an intermediary-inclusive model, ensuring the separation of duties to prevent conflicts of interest. The integrated exchange-clearinghouse model is poised to introduce unique offerings in 2024.
Initially, US options exchange Cboe will provide financially settled margined contracts on Bitcoin and Ethereum, with plans to expand into physically delivered products contingent upon regulatory approvals. The margin model offers a capital-efficient approach, enabling customers to trade futures without the need for full collateral upfront. John Palmer, President of US options exchange Cboe, expressed gratitude for the support from industry partners, emphasizing the significance of margin futures in expanding access and offering hedging opportunities in the evolving digital asset market. The integration of derivatives is viewed as a crucial step in advancing the market’s liquidity and growth. Cboe Digital’s unified spot and derivatives trading platform will simplify customer access to both markets.
Track Champions League launches mobile metaverse
The UCI Track Champions League and Infinite Reality have launced a metaverse platform for the Track Champions League. First revealed at a trial for the London event last year, which Broadcast Sport wrote about here, the platform includes public and private lounges for viewers to meet each other in, biometric rider race data to see during races, on-demand highlights and exclusive content such as behind-the-scenes docuseries Back On Track.
The metaverse will be available on the App Store from 10 November, leading into the two London rounds taking place this weekend. It will only be available on iOS at first, with Android and desktop versions to come “soon”. You can see the metaverse in use in the video below. Following the races, former UCI World Champion Matthew Richardson and reigning Olympic Champion Kelsey Mitchell will take part in the first live meet and greets on the platform, where fans will have the opportunity to discuss their recent performances face-to-face, in real-time. These will take place at 18:30 and 19:30 GMT on Friday 10 November, and 17:00 and 18:00 GMT on Saturday 11 November
Crypto lawyer John Deaton believes Ripple has 90% chance of winning SEC lawsuit
Well-known cryptocurrency attorney John Deaton believes that the SEC only has a 10% chance of winning its dispute with Ripple, with 90% odds in the company’s favor. Deaton said that a settlement of $20 million or less would represent a significant legal triumph for Ripple, The lawsuit, which the SEC initiated against Ripple Labs in December 2020, alleged that the company conducted an unregistered securities offering by selling its native token XRP.
Deaton’s recent comments were prompted by a post from Ripple’s Chief Legal Officer Stuart Alderoty, who highlighted that the SEC faced a recent defeat in the case of the SEC versus Govil, where the U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot request a substantial disgorgement award without first demonstrating actual financial harm to investors. Deaton strongly refuted the idea that the lawsuit’s outcome was an even 50/50 for the SEC, contending that it’s closer to a 90/10 advantage in favor of Ripple. His assessment resonates with the sentiment in the cryptocurrency community, which generally views a suggested $20 million settlement as a favorable resolution for Ripple.
Solana-Based Products Lead with 74% AUM Increase in October: CCData
October witnessed significant advancements in the industry owing to the launch of six ETH Futures ETFs, offering investors a chance to delve into Ether futures. Bitcoin responded positively to the developments. Further gains were fueled by speculations about BlackRock’s application approval of a spot BTC ETF in the United States. As a result, the total assets under management (AUM) for digital asset products surged by 6.74%, reaching $31.7 billion in October. This represented the first upturn since July 2023.
Despite affiliation to FTX and its disgraced founder, Sam Bankman-Fried, as well as its own share of outages, Solana has managed to recover this year. This is evident by the continued inflow streak over the past several weeks. Meanwhile, the assets under management (AUM) for Bitcoin-based products also surged by 11.1%, reaching $23.2 billion and commanding a 73.3% market share. This signifies a rise from 70.5% in September. Ethereum-based products, however, witnessed a decrease despite the introduction of new ETFs. These products collectively experienced a 5,45% decline, lowering their AUM to $6,35 billion, and their market share dropped to 20.1%. This marks a down from 22.6% in September. Basket-based products, on the other hand, saw a 2,10% increase, reaching $1,19 billion and capturing 3,75% of the market.
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Bitcoin dominance hits multi-year high as altcoins underperform
Bitcoin dominance has reached a multi-year high, according to The Block's data dashboard. The digital asset's market share has risen to 51.5% of the entire cryptocurrency sector, the highest level since April 2021. Bitcoin has posted more than two weeks of continuous rally, making gains of over 18% in the past week alone. It was changing hands for $33,909 at 1:30 p.m. ET, according to CoinGecko. In comparison, ether's weekly performance lags behind BTC, with a 13% increase in the past seven days.
The latest surge in the bitcoin's dominance can be attributed to a year-long rally, with the cryptocurrency's price increasing by around 100% since the start of 2023. Institutional investors have been taking notice, as bitcoin's price has outperformed most equities and fixed-income securities. In a recent research note sent to The Block, CoinShares Head of Research James Butterfill described how the growth of bitcoin's dominance in the crypto market highlights that the spot ETF narrative is the driving force behind the price movement. "Investors have logically attempted to enter before the actual announcement, which seems increasingly likely," he added.
Sam Bankman-Fried’s Defunct Exchange FTX Receives Multiple Bids for Restart
Bankrupt crypto exchange FTX has received multiple bids for a potential restart, investment banker Kevin Cofsky of Perella Weinberg Partners said Tuesday during a court hearing. A decision will be potentially made by mid-December, as part of plans to be submitted to the Delaware bankruptcy court for approval. Cofsky's testimony contributed to a successful bid to keep the platform's list of over 9 million customers secret, given that such information might prove valuable to a potential buyer.
“We’ve narrowed the field from a large number to a smaller number in what we’re calling our second round,” Cofsky said at the court hearing, referring to the parties with whom he's discussing wind-up options. “I am optimistic that we will have either a plan for a reorganized exchange, a partnership agreement or a stalking horse for a sale, on or prior to the December 16 milestone date.” FTX collapsed last November after CoinDesk published revelations concerning the state of its balance sheet. New CEO John J. Ray III has excoriated financial controls at the company, and founder Sam Bankman-Fried is on trial for criminal charges. Ray has floated an amended proposal which could see 90% of whatever assets the estate manages to muster returned to creditors.
Taproot Assets can help usher in the 'Bitcoin Renaissance,' says Lightning Labs co-founder
Lightning Labs CEO and co-founder Elizabeth Stark told The Block Taproot Assets can help usher in the “Bitcoin Renaissance,” making Lightning a multi-asset network and potentially “cementing Bitcoin's place as the internet of money.”. Taproot Assets v0.3 was released on mainnet alpha on Wednesday, paving the way for issuing stablecoins and other assets on Bitcoin. The release currently supports on-chain functionality, with Lightning support coming soon, according to Lightning Labs.
“Since the launch, we've been blown away by the level of developer activity with over 18,000 distinct assets minted on mainnet,” Stark said. “Mints can either create a single asset or a batch of assets of the same type — for instance, a mint could issue a certain asset with a supply of 21 million.”. In terms of the estimated timeline for Lightning support, “It's always a challenge to give exact timelines when it comes to protocol development, but the team says it's hard at work to get this out to the world as soon as possible,” Stark added. “We recently shipped v0.17 of our Lightning implementation LND with Taproot channel support, which was an important prerequisite for Taproot Assets on the Lightning Network.
Grayscale 'GBTC Discount' Narrows to Near 2-Year Low as SEC Misses ETF Appeal Window
The widely tracked crypto market indicator "GBTC discount" narrowed to its lowest in 22 months on Friday, signaling increased optimism that Grayscale will be able to convert its close-ended bitcoin trust into an open-ended spot-based exchange-traded fund (ETF). Grayscale Bitcoin Trust (GBTC) traded at a discount of 15.87% to the trust's net asset value, reaching the level last seen in December 2021, according to YCharts. The discount has been steadily narrowing since reaching a record low of nearly 50% during the height of the bear market in December last year.
The latest improvement came as the U.S. Securities and Exchange Commission (SEC) decided not to appeal against the D.C. Circuit Court of Appeals' August verdict to set aside the regulator's decision to reject Grayscale's attempts to convert its trust into an ETF. The SEC had until Friday midnight to challenge the decision. "As far as I know, the SEC did not appeal, which means it now has to reconsider its ruling. It could deny again for different reasons - but the agency is reportedly engaging with other potential issuers, which is unusual. It is starting to feel like it is getting ready to let them list," Noelle Acheson, author of the popular Crypto Is Macro Now newsletter, said in the weekend edition. That said, the probability appears low, considering the regulator has been actively engaging with other spot-ETF applications.
Flare Network Will Burn 2.1B FLR to Support Ecosystem Health
The developer of Flare blockchain told CoinDesk on Friday that they will burn 2.1 billion FLR tokens to support ecosystem development and overall health. The tranche of tokens that are scheduled to be burned had been allocated to Flare’s early backers. These tokens will no longer be distributed after Flare reaches an agreement with these entities on how the first Flare Improvement Proposal, FIP.01, should affect token allocations to equity shareholders.
More than 2% of FLR’s total supply will be permanently removed from circulation, preventing dilution of community token holdings and increasing incentives for new users to join the network. Some 198 million FLR will be burned immediately with a further 66 million set to be burned monthly until January 2026. At the time of writing, FLR was trading at $0.0094. Based on current prices the total number of tokens burned will have a value of around $20 million. “We are very happy to have reached an agreement with our shareholders and thank them for their support,” Hugo Philion, CEO and co-founder of Flare, said in a statement. “Without this burn, the investors would be able to claim approximately 3x their original allocation through the FlareDrops, unfairly diluting community holdings.”
Iris Energy Increases Bitcoin Mining Capacity by 25%
One of the Canadian bitcoin mining firms Iris Energy has raised its mining capacity by 25%, to stand at 7.0 exahashes per second (EH/s), just before the upcomi ng Bitcoin halving event due on April 2024. The company managed this by purchasing an additional 7,000 of the Latest S21 Miners from Bitmain, which cost $19.6m. The expansion will be financed by using the existing capital sources such as $64m Cash Reserves by iris. Iris Energy had originally planned to meet a 9.1 EH/s target by April 2024 but has since upped it to 9.4 EH/s. They are also watching for other hardware chances in the market.
To put it simply, mining capability matters for getting Bitcoin rewards, with the company having high mining capability standing to earn more Bitcoin. Following this news, Iris Energy’s shares on the NASDAQ (ticker: IREN) rose by 9.5%. As for the Bitcoin halving in April of 2024, it may result in lower mining rewards which could affect the viability of some mining companies. But on the other hand, it might just start a Bitcoin bull market making it more profitable for the industry in terms of dollars. Similarly, other major mining companies such as Blockstream, Riot, and CleanSpark are also increasing their mining activities in preparation for the Bitcoin halving, so as to remain competitive in this emerging market.
Brazil rolls out blockchain-based digital ID
Over 214 million Brazilians will soon be using blockchain technology for digital identity, the government recently announced. Rio de Janeiro, Goiás and Paraná will be the first states to issue identification documents on-chain through a private blockchain developed by Serpro, Brazil’s national data processing service. The entire country should be able to issue identity documents through blockchain technology by Nov. 6, reads a decree on Sept. 25.
According to Alexandre Amorim, president of Serpro, the immutability and decentralization of blockchain made it an ideal technology for the country’s digital identification project. As per the local government, the national ID project is crucial in targeting organized crime, allowing government sectors to work together, offering a simpler way to access services and streamlining administrative records. The city of Buenos Aires, Argentina, recently disclosed a similar initiative, allowing residents to access identity documents via a digital wallet. The newly adopted technology will allow a more secure data exchange between the Federal Revenue and government departments, said the announcement.
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