Tag: Cryptocurrency

Ripple XRP Q2 2023: Market Cap Decline while NFT Transactions Rise, Reported Messari

by Blockchain News

According to a recent analysis by Messari, the XRP Ledger (XRPL) saw growth and fall in the second quarter of 2023. Despite a 10.7% quarter-over-quarter (QoQ) decline in market cap from $27.8 billion to $24.8 billion, the XRPL, a ten-year-old platform renowned for its quick, energy-efficient, cross-currency, and cross-border payments, saw its native token, XRP, maintain its position as the sixth-largest cryptocurrency by market capitalization.

The XRPL’s market performance was a tale of two halves. The year-to-date (YTD) increase of 42.5% in XRP’s circulating market cap was primarily driven by a surge in Q1. However, Q2 saw a decline in market cap, reflecting a broader downturn in network activity metrics. Average daily transactions and active addresses fell by 11.9% and 17.6% QoQ, respectively, returning to levels last seen in Q3 2022.

Despite the overall decline in network activity, the XRPL saw a 12.7% QoQ increase in average daily Non-Fungible Token (NFT) transactions, from 13,800 to 15,500. This growth was led by NFTokenCreateOffer, which now accounts for over half of all NFT transactions on the XRPL.

The XRPL continues to innovate and expand, with new sidechains like Coreum and Root Network offering developers more programmability for exploring security tokenization and metaverse applications. The EVM sidechain and XLS-38d bridge also saw further iterations, with developers now testing transfers between Issued Currencies and ERC-20s, among other features.

Despite these advancements, the XRPL’s ecosystem still lacks native support for smart contracts, a feature present in programmable settlement networks like Ethereum, Cardano, and Solana. However, the XRPL’s design choice to not enable arbitrary smart contracts on the base layer is a deliberate move to ensure maximum security and stability.

Multiple sidechains for the XRPL are either in development or have recently launched, in line with the platform’s vision of minimized Layer 1 complexity. These sidechains are set to provide increased programmability for both general and specific use cases, further expanding the XRPL’s capabilities.

In conclusion, the XRPL saw growth and drop in Q2 2023. Despite declines in network activity and market valuation, the platform witnessed an increase in NFT transactions and continuing development of sidechains. 

Image source: Shutterstock

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Korean Prosecution Investigates Cypto Coin WEMIX Issuer WeMade and Hyperism Simultaneously

by Blockchain News

The Korean prosecution has simultaneously raided WeMade, the issuer of the cryptocurrency WEMIX, and Hyperism, the asset management company responsible for WEMIX’s market making. This incident comes right after South Korea’s parliament passed the Virtual Asset Protection Act, which aims to crack down on illegal illegal trading practices such as market price manipulation and insider trading.

The raid was conducted at the headquarters of Hyperism, located in Gwanak-gu, Seoul. An official from Hyperism confirmed that the prosecution was conducting a search in relation to WEMIX. The office was tightly sealed, with both the front glass door and the external iron door firmly closed.

The Financial Investigation Department 1 of the Seoul Southern District Prosecutor’s Office initiated the search at WeMade’s headquarters in Bundang-gu, Seongnam-si, Gyeonggi-do. The investigation also extended to the market makers of WEMIX.

Previously, WEMIX investors had filed a complaint against Hyun-guk Jang, the representative of WeMade, accusing him of fraud and fraudulent unfair trading under the Capital Market Act on May 12.

In 2021, WeMade had invested in Hyperism through its blockchain-specialized subsidiary, WeMade Tree. It was reported that WeMade had invested KRW 5.2 billion from the funds raised from the sale of WEMIX, and subsequently paid 18 million WEMIX to the Hyperism Eco Fund.

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Binance Survey: Institutional Investors Bullish on Crypto’s Long-Term Prospects

by Blockchain News

Binance Research, in collaboration with Binance VIP & Institutional, has recently unveiled the results of their Institutional Crypto Outlook Survey. The study reveals a strong positive sentiment towards cryptocurrencies among institutional investors, with 63.5% expressing optimism for the next year and a striking 88% displaying a positive outlook for the next decade.

The survey, which ran from March 31 to May 15, 2023, gathered responses from 208 Binance VIP and Institutional users. It aimed to explore the demographics, attitudes, preferences, and motivations of these investors towards cryptocurrency investments.

Key findings from the survey indicate that despite market fluctuations over the past year, 47.1% of investors have maintained their crypto allocation, while 35.6% have increased their allocation. Only a minority, 17.3%, have decreased their crypto allocation. Looking forward, the majority of respondents expect to either increase (50.0%) or maintain (45.7%) their allocation over the next 12 months.

The study also highlights that institutional investors believe that the adoption of cryptocurrencies will be driven more by real-world use cases (26.9%) and improvements in regulatory clarity (25.3%) rather than higher prices (3.4%). This suggests that institutional participation in the crypto market is taking on a longer-time horizon, less reactive to short-term market cycles.

Interestingly, the survey reveals a more positive perception of Bitcoin compared to the broader crypto sector. While perceptions of Bitcoin and crypto remained largely unchanged over the past year (47.8% and 44.7% respectively), a larger proportion of respondents have turned more positive on Bitcoin (47.3% vs. 33.2%).

When it comes to investment motivation, 42.8% of investors cited the potential for large investment returns as the most compelling reason for investing in cryptocurrencies. This was followed by 37.5% of investors who see gaining long-term exposure to an emerging technology as the primary motivation.

Centralized Exchanges remain the most popular platform for institutional trading (90.5%) and custody activities (58.2%). The top three criteria for selecting a trading platform were liquidity (28.0%), security (26.0%), and reputation (22.5%).

Catherine Chen, Head of Binance VIP and Institutional, commented on the findings, “Institutions typically take a long-term horizon when they enter a new market, and our survey indicates that is likewise for crypto assets. These findings match the healthy rate of institutional account growth on Binance, which has increased 89% since the height of the bull market in Q4 2021.”

The results of this survey underscore the growing institutional interest and confidence in the long-term potential of cryptocurrencies. 

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South Korea’s Crypto Protection Law Advances in Assembly

by Blockchain News

In a landmark move for South Korea’s cryptocurrency sector, the Cryptocurrency User Protection Act (also known as the Cryptocurrency Investor Protection Law) has successfully passed through the Legal Affairs Committee, marking a momentous milestone in the legislative process for digital assets.

Coming in the wake of the May 11 verdict by the Political Affairs Committee, the swift and unanimous passage of the Cryptocurrency Investor Protection Law through the Legal Affairs Committee on June 29 has crossed what is often referred to as the ‘ninth part of a steep hill’ in the law-making process. This progress suggests a strong likelihood of the law being passed in the National Assembly’s plenary session, given the absence of partisan disagreement.

If enacted, this legislation will be the first comprehensive law related to cryptocurrencies since the Specific Financial Transaction Information Act. The legislation aims to provide a clear and secure framework for investors in digital assets, addressing their protection and rights within the burgeoning cryptocurrency sector.

The progression of this law through the legislative process signifies a crucial step forward for the virtual asset (cryptocurrency) industry. Its potential enactment in the National Assembly underpins a growing recognition of digital currencies and the need for regulatory measures to ensure their safe and secure use.

The meeting at the main National Assembly building in Yeouido, Seoul, highlighted the importance of this law for the protection of cryptocurrency users, a fact that is being closely watched by investors and industry insiders alike.

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QuadrigaCX Bankruptcy Trustee Announces Interim Distribution of Funds

by Blockchain News

QuadrigaCX’s bankruptcy trustee, Ernst & Young, has announced an interim distribution of funds to creditors of the now-defunct Canadian cryptocurrency exchange. The announcement was made in consultation with estate inspectors, and a Notice to Affected Users will be posted soon with further details about the distribution process.

QuadrigaCX became insolvent in February 2019, following the death of its co-founder, Gerald Cotten. Cotten had taken the private keys to QuadrigaCX’s offline storage systems to his grave, leaving the exchange unable to access its funds. According to the Ontario Securities Commission (OSC), QuadrigaCX owes its affected clients an estimated $160 million.

Since then, Ernst & Young has been working as the bankruptcy trustee for QuadrigaCX and has been attempting to recover any assets it can for the exchange’s creditors. So far, the trustee has recovered $34.3 million worth of assets.

The interim distribution of funds provides some relief to QuadrigaCX’s creditors, who have been waiting for over two years to receive any compensation for their losses. However, the trustee has also stated that a small number of affected users may receive a Notice of Disallowance of Claim, meaning that their creditor’s claim has been revised or disallowed in the bankruptcy process.

If users receive a Notice of Disallowance, they have the right to appeal the decision. Miller Thomson, the law firm representing QuadrigaCX users, has advised affected users to review the reasons for the revision or disallowance and gather any necessary evidence to support their claim.

The collapse of QuadrigaCX was a major blow to the Canadian cryptocurrency market, raising concerns about investor protection and regulatory oversight. The QuadrigaCX case highlighted the need for proper safeguards and measures to protect investors and prevent similar incidents from happening in the future.

Ernst & Young’s announcement of the interim distribution of funds is a significant step in the bankruptcy proceedings of QuadrigaCX. However, it remains to be seen how much creditors will actually receive and how long the proceedings will continue. The bankruptcy trustee continues to work towards recovering any additional assets for the exchange’s creditors.

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Grayscale Launches New Entity to Manage Growing Funds

by Blockchain News

Grayscale Investments, the cryptocurrency asset manager, has announced the launch of a new entity, the Grayscale Funds Trust, to manage its publicly traded financial products in-house. The move indicates the company’s growing confidence in its ability to manage its funds internally.

In addition to the launch of the new trust, Grayscale has filed a registration statement with the United States Securities and Exchange Commission (SEC) for three new cryptocurrency-focused exchange-traded funds (ETFs). The new funds include a Bitcoin Composite ETF, an Ethereum Futures ETF, and a Privacy ETF.

Grayscale’s Bitcoin Composite ETF will invest in exchange-traded products related to or backed by Bitcoin, including Bitcoin mining firms. The Ethereum Futures ETF will offer indirect exposure to the potential future value of Ether through shares that track ETH’s price. The Grayscale Privacy ETF will invest in companies working on blockchain-based privacy technology.

However, until the registration statement is approved by the SEC, the funds will not be available for public purchase. This move comes as Grayscale continues to navigate a conflict with the SEC over converting its $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF product.

In January 2021, Grayscale sued the SEC for denying its application, arguing that the SEC acted unfairly in treating crypto spot traded exchange-traded products differently from futures products. Grayscale claims that there is a 99.9% correlation between prices in the Bitcoin futures market and the spot Bitcoin market. Despite the SEC’s approval of several Bitcoin Futures ETFs, it has so far rejected every application for a spot Bitcoin investment product due to concerns about exposing investors to potential fraud and market manipulation.

Despite these challenges, Grayscale’s move to launch new crypto ETFs and manage its publicly traded financial products in-house demonstrates the company’s commitment to the cryptocurrency market and its belief in the long-term potential of digital assets.

In conclusion, Grayscale Investments’ launch of the Grayscale Funds Trust and its filing of three new cryptocurrency-focused ETFs is a significant development for the company and the cryptocurrency market as a whole. While the SEC’s approval of these new ETFs is still pending, Grayscale’s continued efforts to introduce crypto-focused investment products is a positive sign for the industry’s growth and adoption.

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QuadrigaCX Users to Receive Interim Distribution

by Blockchain News

Users of the now-defunct Canadian cryptocurrency exchange QuadrigaCX are expected to receive interim distribution of funds tied to bankruptcy proceedings in the coming weeks. Law firm Miller Thomson, which represents QuadrigaCX users, announced the news on May 8. Bankruptcy trustee Ernst & Young has consulted with estate inspectors to announce the interim distribution. In the near future, the trustee will post a Notice to Affected Users providing details about the manner and procedure of the distribution.

However, a small number of affected users are expected to receive a Notice of Disallowance of Claim, which means that the creditor’s claim has been revised or disallowed in the bankruptcy process. If users receive such a notice, they have the right to appeal the decision. Miller Thomson explained that users should review the reasons for the revision or disallowance and gather any necessary evidence to support their claim. The Trustee is likely to have issued a Notice of Disallowance if there was a discrepancy in the user’s proof of claim.

QuadrigaCX was once the largest cryptocurrency exchange in Canada before it became insolvent in February 2019. The exchange’s co-founder, Gerald Cotten, died in India, taking the private keys to QuadrigaCX’s offline storage systems to his grave. According to the Ontario Securities Commission (OSC), QuadrigaCX owes its affected clients an estimated $160 million.

In addition to losing access to cold storage, the OSC alleges that Cotten realized $86 million in crypto trading losses on the QuadrigaCX platform, which was then covered with users’ funds. Since then, bankruptcy trustee Ernst & Young has recovered $34.3 million worth of assets. The OSC stated that they did not identify any other assets beyond those identified by Ernst & Young.

The collapse of QuadrigaCX was a major blow to the Canadian cryptocurrency market, raising concerns about investor protection and regulatory oversight. The QuadrigaCX case highlighted the need for proper safeguards and measures to protect investors and prevent similar incidents from happening in the future.

The interim distribution of funds provides some relief to QuadrigaCX users, who have been waiting for over two years to receive any compensation for their losses. However, it remains to be seen how much users will actually receive and how long the bankruptcy proceedings will continue. The QuadrigaCX case serves as a cautionary tale for investors, highlighting the importance of conducting due diligence and being cautious when investing in cryptocurrencies.

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Grayscale Files for Three New Crypto ETFs

by Blockchain News

Grayscale Investments, the cryptocurrency asset manager, is seeking approval from the United States Securities and Exchange Commission (SEC) for three new cryptocurrency-focused exchange-traded funds (ETFs). The new funds include a Bitcoin Composite ETF, an Ethereum Futures ETF, and a Privacy ETF.

Grayscale’s Bitcoin Composite ETF will invest in exchange-traded products related to or backed by Bitcoin, including Bitcoin mining firms. The Ethereum Futures ETF, on the other hand, will offer indirect exposure to the potential future value of Ether through shares that track ETH’s price. The Grayscale Privacy ETF will invest in companies working on blockchain-based privacy technology.

Despite previous roadblocks from the SEC over crypto-related ETFs, Grayscale has filed a registration statement for the new ETFs. However, until the registration statement is approved, the funds will not be available for public purchase.

Grayscale also announced the launch of the Grayscale Funds Trust, a new arm of its business that allows it to manage many of its publicly traded financial products in-house. This move indicates the company’s growing confidence in its ability to manage its funds internally.

While Grayscale continues to navigate a conflict with the SEC over converting its $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF product, the company remains optimistic about the future of crypto ETFs. In January 2021, Grayscale sued the SEC for denying its application, arguing that the SEC acted unfairly in treating crypto spot traded exchange-traded products differently from futures products. Grayscale claims that there is a 99.9% correlation between prices in the Bitcoin futures market and the spot Bitcoin market.

Despite the SEC’s approval of several Bitcoin Futures ETFs, it has so far rejected every application for a spot Bitcoin investment product due to concerns about exposing investors to potential fraud and market manipulation. However, Grayscale’s move to launch new crypto ETFs and manage its publicly traded financial products in-house demonstrates the company’s commitment to the cryptocurrency market and its belief in the long-term potential of digital assets.

In conclusion, Grayscale Investments’ filing of three new cryptocurrency-focused ETFs and the launch of its Grayscale Funds Trust is a significant step forward for the company and the cryptocurrency market as a whole. While the SEC’s approval of these new ETFs is still pending, Grayscale’s continued efforts to introduce crypto-focused investment products is a positive sign for the industry’s growth and adoption.

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Coinbase vs SEC: Legal Battle Heats Up

by Blockchain News

Coinbase, the largest US-based cryptocurrency exchange, has been embroiled in a legal battle with the US Securities and Exchange Commission (SEC) over regulatory clarity for trading digital assets. On May 4th, Coinbase’s chief legal officer Paul Grewal announced that the US Court of Appeals for the Third Circuit has responded to the complaint against the SEC, marking a significant development in the ongoing legal battle.

The court’s response was a text-only order, instructing the SEC to respond to Coinbase’s writ of mandamus within ten days. A writ of mandamus is a court order that compels an inferior government official to fulfill their official duties properly. The court also granted Coinbase the right to file a reply to the SEC’s response within seven days of the filing.

Coinbase filed a lawsuit in April, requesting that the court compel the SEC to publicly disclose its stance on a petition submitted several months prior. The petition posed 50 specific questions about the regulatory treatment of certain digital assets, covering topics such as how tokens are classified as securities and seeking clarification on various other matters.

Despite the lack of public response to the petition, the SEC has increased enforcement and issued warnings to crypto exchanges. The commission has even issued a Wells notice to Coinbase in the past, warning the company that the SEC may follow with an enforcement action.

Due to the ongoing regulatory issues faced by the company, US investment bank Citigroup has downgraded the shares of the crypto exchange from “buy” to “neutral,” and has also lowered its price target. The bank has cited “too many unknowns” as the reason for this downgrade. According to Citi analyst Peter Christiansen, the downgrade will remain in place until the regulatory “rules of the road” are better established in the United States.

The legal battle between Coinbase and the SEC highlights the need for greater regulatory clarity in the cryptocurrency industry. While the industry has seen rapid growth in recent years, the lack of clear guidelines from regulatory bodies has led to confusion and uncertainty for businesses and investors alike. As the battle between Coinbase and the SEC continues, it remains to be seen how the regulatory landscape for digital assets will evolve in the United States and beyond.

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Coinbase executive discovers ChatGPT jailbreak

by Blockchain News

An Executive from Coinbase Has Discovered a “Jailbreak” for the ChatGPT AI Tool, Which Predicts Bizarre Cryptocurrency Price Scenarios

Coinbase’s chief of business operations, Conor Grogan, recently made a statement in which he claimed to have found a “jailbreak” for the artificial intelligence application ChatGPT. Grogan published a snapshot of the findings from ChatGPT in a tweet on the 30th of April. The results revealed that the tool had given a 15% likelihood that Bitcoin will “fade to irrelevancy” by the year 2035, with values plummeting over 99.99%. Grogan’s tweet was sent on April 30. Additionally, ChatGPT predicted that there is a 20% chance that Ether will become irrelevant and approach price levels close to zero by the year 2035. Even less self-assured was the tool about Litecoin and Dogecoin, assigning odds of 35% and 45%, respectively, for each currency to fall to a value close to zero.

The artificial intelligence tool known as ChatGPT generates replies to prompts by using natural language processing. Grogan used the program to assign probability to a variety of political forecasts and other situations, including as the influence of AI on humans, the presence of aliens, and religion. A crazy forecast was made on ChatGPT that “aliens have visited Earth and are being covered up by the government.” This prediction was given a chance of 10%.

Grogan is a dedicated user of ChatGPT, and he provided others with a script that replicates the prompt that he used to build the tables. He came to the conclusion that the tool is “generally” a “big fan” of Bitcoin but is “more skeptical” when it comes to other cryptocurrencies.

As a tool for anticipating price movements and other trends in the cryptocurrency field, ChatGPT has gained a significant amount of popularity in recent months. The forecasts that it makes, however, should be taken with a grain of salt since they are based on probabilities and are not a guarantee of the future performance of the asset. Grogan’s discovery of a “jailbreak” also raises the possibility of a security breach since it enables the tool to make more accurate and possibly sensitive predictions.

In general, the use of artificial intelligence technologies inside the cryptocurrency market, such as ChatGPT, sheds insight on the expanding function of technology within the sector. As more traders and investors look to these tools for insights and forecasts, it will be crucial to keep in mind the limits of these tools as well as the possible hazards that they pose.

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Bitcoin (BTC) $ 26,596.13 0.06%
Ethereum (ETH) $ 1,594.36 0.06%
Litecoin (LTC) $ 64.87 0.21%
Bitcoin Cash (BCH) $ 209.12 0.03%