On a low note, the crypto market begins the final week of September with a cumulative market value decline of 2%. Bitcoin trades around $64,500, reflecting a subdued performance as traders anticipate critical economic data releases and a speech from U.S. Federal Reserve Chair Jerome Powell.

Market performance on a downward trend

On Monday, the global crypto market cap dropped by 2%, bringing the total to approximately $2.3 trillion. Bitcoin’s performance has been relatively stable, maintaining its position near the $64,500 mark. This downward trend coincides with the anticipation of significant U.S. economic data and Powell’s impending remarks, which are expected to address the central bank’s policy outlook following a 0.50% rate reduction. 

Analysts focus on Powell’s speech, as the Federal Reserve’s missteps could severely affect the economy. A recent survey by Reuters highlighted that 39% of economists consider inappropriate use of interest rate adjustments against inflation the top economic risk.

Anticipation of economic reports

The crypto market’s lackluster performance comes as traders await critical reports, including the S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) and the September ISM Manufacturing Index. The S&P Global PMI serves as a monthly indicator of manufacturing performance, while the ISM Manufacturing Index reflects expansion or contraction in the sector. Additionally, job data this week will be a critical economic indicator that will influence the Federal Reserve’s monetary policy decisions in November. 

Key Events This Week:1. Fed Chair Powell Speaks – Monday2. September ISM Manufacturing data – Tuesday3. JOLTs Jobs data – Tuesday4. ADP Nonfarm Employment data – Wednesday5. October OPEC Meeting – Wednesday6. Initial Jobless Claims – Thursday7. September Jobs Report…

— The Kobeissi Letter (@KobeissiLetter) September 29, 2024

Recent data indicated that consumer spending in the U.S. rose moderately in August. However, analysts predict further interest rate cuts could occur in the fourth quarter of this year. S&P Global Ratings has forecasted the real GDP growth for the U.S. to be 2.7% in 2024 while projecting a lower growth rate of 1.8% for 2025. The company also sees a 25% chance of a U.S. recession within the following year.

Potential for a positive year-end for Bitcoin

Despite the challenges in the economic landscape and the current state of the crypto market, Bitcoin may finish the year positively. September is closing with monthly gains of approximately 8%. Analysis from Ali Martinez reveals that only four September since 2013 ended with gains. A positive September has often indicated a bullish fourth quarter, leading to increased monthly returns. This suggests that despite ongoing uncertainties related to economic indicators and election outcomes, a solid finish to 2024 remains possible for Bitcoin and the broader crypto market.

The current market dynamics highlight the interplay between economic data releases and cryptocurrency performance. As traders monitor the developments closely, the outlook for Bitcoin and the crypto market may be favorable as the year progresses.

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Nvidia CEO Jensen Huang has stated that developing more advanced artificial intelligence is the best way to combat AI abuse. Speaking at an event hosted by the Bipartisan Policy Center in Washington, Huang emphasized that AI technology is a significant threat and a crucial solution in the ongoing battle against misinformation and data manipulation.

AI threats to U.S. elections

As the U.S. approaches the federal elections in November, concerns surrounding the misuse of AI are escalating. Huang pointed out that AI can generate fake information at a rapid pace, which can distort public perception and influence democratic processes. A survey conducted by the Pew Research Center revealed that nearly 60 percent of Americans are deeply concerned about AI’s potential role in spreading false information about candidates. 

This anxiety spans both major political parties, with around two in five respondents believing that AI will predominantly be used for harmful purposes during the elections. Huang urged the U.S. government to adopt AI technologies to avoid these threats. He advocated for every government department, especially those related to energy and defense, to leverage AI capabilities, highlighting the necessity for a government-led AI initiative.

The energy demands of AI

A substantial increase in energy consumption accompanies the rapid evolution of AI. According to Huang, AI data centers currently account for approximately 1.5 percent of global electricity use, which is expected to rise significantly. He predicts that future data centers may require 10 to 20 times more energy than what is utilized today. 

Huang explained that energy consumption will further escalate as AI models learn from one another. He proposed constructing data centers near abundant but hard-to-transport energy resources to address these demands. This strategy would allow AI systems to operate efficiently in remote locations while ensuring adequate energy supply.

Regulatory challenges facing AI development

As AI technology progresses, the conversation surrounding its regulation becomes increasingly important. California Governor Gavin Newsom recently vetoed SB 1047, a bill designed to impose mandatory safety measures on AI systems. The proposed legislation faced strong opposition from major tech companies, including OpenAI, Meta, and Google. Newsom expressed concern that the bill would hinder innovation and fail to protect the public from genuine threats posed by AI adequately. 

The bill, authored by Democratic Senator Scott Wiener, sought to require AI developers to incorporate a “kill switch” into their models and to create plans for mitigating extreme risks. Additionally, it would have held developers liable for any ongoing threats posed by their systems, such as a potential AI grid takeover. The veto reflects the continuing struggle to ensure safety and foster innovation within the AI landscape.

Jensen Huang’s remarks underscore AI’s dual nature as both a risk and a potential solution. As the technology evolves, stakeholders in the public and private sectors must address the associated challenges and opportunities presented by AI advancements.

The post AI is Both a Problem and a Solution, Says Nvidia CEO Jensen Huang first appeared on Coinfea.

Economists are now anticipating a 0.25% rate cut by the European Central Bank (ECB) in October, shifting their previous expectations of a December adjustment. Recent economic data, including weak inflation numbers from France and Spain and a decline in the Purchasing Managers’ Index (PMI), has heightened concerns about the Eurozone’s economic health.

The PMI, which fell to 48.9 in September from 51 in August, signals the first contraction in business activity since February. This is seen as a red flag for the ECB, with markets responding by showing an 80% chance of a rate cut at the October 18 meeting.

Weak economic data shifts forecasts

The outlook for ECB monetary policy has been revised in light of weaker-than-expected economic indicators. The central bank implemented rate cuts in June and September, reducing the critical deposit rate to 3.5%. With the Eurozone PMI falling below 50, economists from institutions such as Goldman Sachs, JPMorgan, and BNP Paribas have updated their forecasts.

Piet Haines Christiansen of Danske Bank remarked that the data is too weak to ignore. He suggests that the ECB will shift its focus from inflation concerns to the risks associated with slowing growth. Paul Hollingsworth, chief European economist at BNP Paribas, echoed this sentiment, warning that further delays in cutting rates could put the Eurozone’s economic recovery at risk.

ECB’s data-dependent approach faces pressure

The European Central Bank has maintained a cautious stance, with President Christine Lagarde emphasizing a data-driven approach to decision-making. However, pressure is building for the ECB to act sooner rather than later. Recent comments from ECB executive board member Isabel Schnabel highlighted that inflation expectations among businesses and households have significantly declined.

Schnabel’s latest remarks contrast her earlier stance, where she pointed out that inflation perceptions remained high. As sentiment shifts, other ECB officials have acknowledged that the risk of disinflation is becoming more prominent. One official, speaking anonymously, confirmed that the data points to downside risks, signaling that a rate cut could be necessary.

Potential for further cuts

Economists are also speculating on the ECB’s potential course of action beyond October. Tomasz Wieladek from T Rowe Price has suggested that the outcome of the upcoming U.S. presidential election in November could significantly impact the ECB’s future decisions. He predicts that if Donald Trump wins, the geopolitical uncertainty could lead to further rate cuts, potentially increasing the deposit rate to 2%.

Bond markets have already responded to the shifting expectations, with the probability of an October rate cut climbing from 40% to 80% within the week. Although the ECB has not yet confirmed its course of action, all signs indicate that the central bank will have to take further steps to address the growing economic concerns in the Eurozone.

The post Economists Predict ECB Rate Cut in October Amid Economic Struggles first appeared on Coinfea.

California Governor Gavin Newsom has vetoed SB 1047, a bill that sought to regulate large-scale artificial intelligence (AI) systems, stating that it would hinder innovation without adequately addressing real risks associated with the technology. 

The bill, introduced by Democratic state senator Scott Weiner, aimed to impose safety testing and oversight measures on AI models, specifically targeting systems that require over $100 million to develop.

Newsom’s decision on September 30 has sparked debate over the future of AI regulation in the state. His administration has faced growing pressure to implement safeguards as AI technology advances. However, Newsom argued that the bill focused too much on existing AI corporations, such as OpenAI and Google, while failing to address the actual threats posed by emerging AI models.

Bill aimed at regulating AI models

The proposed legislation, SB 1047, was one of the first bills in the country to target large-scale AI models. It called for mandatory safety testing, implementing a “kill switch,” and risk mitigation plans for developers of high-cost AI systems. The bill also proposed granting the state attorney general the power to take legal action against companies if their AI systems posed ongoing dangers, such as the potential for AI-driven grid takeovers.

Although current AI models still need to meet the financial threshold outlined in the bill, experts have suggested that such models could emerge within the following year. Proponents of SB 1047 argued that the legislation would pave the way for stronger national AI safety laws, positioning California at the forefront of AI regulation.

Newsom: bill misses the mark on AI dangers

Governor Newsom emphasized that while regulating AI is crucial, there were better approaches than SB 1047. He stated that the bill applied unnecessarily stringent standards to AI models, even in cases where only essential functions were involved. He expressed concerns that these regulations would stifle innovation in Silicon Valley, a hub for AI development.

Newsom’s decision to veto the bill came after significant opposition from tech giants and political figures. House Speaker Nancy Pelosi and major AI developers, including OpenAI, voiced concerns that the legislation would impede progress in the field. Despite vetoing the bill, Newsom reaffirmed his commitment to science-based AI regulations, pledging that his administration would continue working toward safety protocols that address the real risks of AI without hindering innovation.

Mixed reactions to the veto

Senator Scott Weiner criticized Newsom’s decision, calling it a setback for public safety and the regulation of large AI corporations. He argued that SB 1047 would have provided crucial oversight over companies developing AI models that could significantly impact society and the environment.

On the other hand, some industry leaders, including Elon Musk, expressed support for the bill’s general goals. Musk, who is developing his own AI model called Grok, admitted in a post on social media that passing SB 1047 was a “tough decision” but necessary for advancing AI safety. Governor Newsom’s veto highlights the tension between encouraging innovation and ensuring public safety as the state grapples with the rapid development of artificial intelligence.

The post California Governor Gavin Newsom Vetoes AI Safety Bill, Citing Innovation Concerns first appeared on Coinfea.

MicroStrategy (MSTR) has delivered remarkable returns for investors, surpassing Bitcoin’s performance after adopting a Bitcoin strategy. 

The company, led by founder Michael Saylor, is now the most significant corporate holder of Bitcoin, with a return on its investment exceeding 36 times the acquisition cost. Despite the volatility of both assets, MicroStrategy stock has shown more vigorous growth in recent months.

Higher returns with MSTR

While Bitcoin has surged by 150% in value over the past year, MicroStrategy’s stock has climbed nearly 300%. The company’s significant Bitcoin holdings are a major factor in this growth. MicroStrategy owns approximately 252,220 Bitcoin, representing almost 1% of the total Bitcoin supply. The value of these holdings now forms around 46% of the company’s market cap. With a cost basis of $458 million for its Bitcoin, MicroStrategy’s returns have been over 1,000% since adopting its Bitcoin-centric strategy.

Any individual, family, company, or country can copy MicroStrategy and enjoy the same outperformance. #Bitcoin pic.twitter.com/hE37gCUCRQ

— Michael Saylor (@saylor) September 22, 2024

According to data from Bitcoin Treasuries and other sources, MSTR has outperformed other companies, including Nvidia, which has posted impressive returns in the S&P 500. In comparison, Bitcoin mining firms like Marathon and Riot have benefited from the rise in Bitcoin, but their performance remains secondary to MicroStrategy.

Volatility and Sharpe ratio

Despite its higher returns, MicroStrategy stock remains more volatile than Bitcoin. Portfolio Slab shows MSTR’s volatility at 25%, while Bitcoin’s at 14%. However, the Sharpe Ratio, a metric that evaluates investment returns relative to risk, shows that MicroStrategy offers a better risk-adjusted return than Bitcoin. 

MSTR boasts a Sharpe Ratio of 4.70, compared to Bitcoin’s 1.73. This suggests that while MicroStrategy stock is riskier, it compensates investors with higher returns, making it a potentially more attractive investment for those with a higher risk tolerance. Investors may prefer MSTR over Bitcoin, particularly if they seek higher returns despite the stock’s increased volatility.

MSTR Vs BTC | Source: Portfolio Slab

The future outlook for MicroStrategy and Bitcoin

MicroStrategy’s success is primarily attributed to its Bitcoin strategy, which has driven much of its performance. As of September, public companies collectively held 361,735 Bitcoin, with MicroStrategy’s stake contributing significantly. Bitcoin’s price has fluctuated recently, but MicroStrategy stock has continued to rise, up 20-30% since March 2024. MSTR shares also spiked after the company announced additional Bitcoin purchases in September.

The company’s Q2 earnings, reported in August, showed another strong quarter due to its Bitcoin holdings. CEO Phong Le remains optimistic about the company’s future, focusing on both Bitcoin adoption and the growth of its cloud and AI software businesses.

Institutions increasingly engage with Bitcoin, with a large percentage involved through ETFs and ETPs. With Bitcoin gaining wider adoption, the future looks promising for cryptocurrency and MicroStrategy’s ongoing performance.

The post MicroStrategy stock outpaces Bitcoin with 36x returns first appeared on Coinfea.

Cryptocurrency has unexpectedly become a significant player in American politics, transforming the upcoming November 5 election into what some call the first “crypto election.” With hundreds of millions of dollars flowing into political campaigns, critical figures like Kamala Harris and Donald Trump have suddenly taken positions on crypto, adding to the absurdity of its influence in the political sphere.

Crypto voters and their alleged influence

There is now talk of a new group of “crypto voters.” Stand With Crypto, a lobby group supported by Coinbase, claims this group is bipartisan and growing in political importance. The group assigns grades to politicians based on their stance on cryptocurrency, with Trump receiving an “A” for his pro-crypto policies. At the same time, Kamala Harris holds a “N/A” for her vague comments on “innovative technologies.”

Despite these claims, it remains uncertain if this group of crypto voters has the significant influence that lobbyists suggest. While some individuals may be concerned about cryptocurrency regulation, most Americans are still more focused on critical issues such as housing costs, healthcare, and general economic survival. Polls show that concerns over crypto regulation are not a priority for most voters.

Crypto’s growing presence in U.S. politics

Lobbyists and advocates claim that crypto is now a national priority, with some claiming that 52 million Americans own cryptocurrency. However, this figure needs more concrete evidence. Despite the push to make cryptocurrency a vital issue in this election, most Americans appear more focused on broader financial and economic concerns.

The pro-crypto super PAC, Fairshake, has already raised over $200 million, showing the industry’s substantial financial power. However, critics argue that this movement serves the interests of the crypto industry’s elites rather than the average voter. Bitcoin’s value has soared in recent years, and the broader crypto market has continued to thrive despite regulatory hurdles and recent scandals like the FTX collapse. The suggestion that the Biden-Harris administration is hostile to crypto appears exaggerated, as the U.S. remains a central hub for the global crypto workforce.

Candidates and their crypto stances

Kamala Harris has recently spoken about supporting “innovative technologies,” but her position on crypto remains ambiguous. Stand With Crypto initially gave her a “B” rating but later downgraded her to “N/A” due to a lack of clear policy statements. Harris seems to be treading carefully, balancing the tech industry’s interests with those of regulators.

Donald Trump, in contrast, has fully embraced the crypto community. He has promised to turn the U.S. into the “crypto capital of the planet,” leveraging his pro-crypto stance to attract support and funding from the industry. This marks a significant shift for Trump, who once referred to Bitcoin as a scam.

While cryptocurrency’s role in U.S. politics is undeniably growing, whether this will translate into meaningful influence at the ballot box remains to be seen. For now, the industry’s political power benefits primarily those at the top.

The post The Absurdity of Crypto’s Growing Role in U.S. Politics first appeared on Coinfea.

Chinese stocks experienced their most robust weekly performance over a decade, spurred by a $114 billion government stimulus. The CSI 300 index, which monitors the performance of major companies in Shanghai and Shenzhen, surged by 15.7% over the past week. 

This marks the most significant one-week gain since November 2008, when China implemented similar measures during the global financial crisis. This significant boost in stock market activity has also had ripple effects, lifting European stocks and influencing global commodity prices. The stimulus is part of broader efforts by Chinese leaders to stabilize the domestic economy, address ongoing issues in the property sector, and drive consumer spending to meet the country’s 5% economic growth target for the year.

$114 billion liquidity boost

The People’s Bank of China announced an Rmb800bn ($114bn) lending facility to inject liquidity into the market. The goal is to help companies repurchase their shares and enable non-bank financial institutions, including insurers, to invest in local stocks.

The government aims to maintain momentum in the financial markets by providing ample liquidity. The CSI 300 index jumped 4.5% on Friday after the announcement. This has led to a surge in mainland markets and lifted the Hang Seng index in Hong Kong, which saw a 13% rise over the past week—its most significant since the 1998 Asian financial crisis.

Global impact on markets

The effects of China’s stimulus have extended beyond its borders. European luxury brands, which rely heavily on Chinese consumers, welcomed the move, anticipating an uptick in domestic spending. Wall Street has also shown positive reactions, with the S&P 500 closing at record highs multiple times this week. Investors are increasingly optimistic about a potential boost in global demand, particularly as the Federal Reserve’s interest rate cuts weaken the dollar, making emerging markets like China more attractive.

However, foreign investors’ access to Chinese stocks remains restricted. In August, Chinese regulators limited the daily data flow from the Hong Kong Stock Connect program, which tracks foreign investment activity in mainland markets.

Commodity prices surge, except for oil

The injection of liquidity into China’s economy is also driving up global commodity prices, particularly in the metals sector. Copper, aluminum, and zinc have all recorded gains, with copper rising more than 5% since Tuesday to break the $10,000 per tonne mark for the first time in three months. Iron ore, which had recently hit a two-year low, has also rebounded as steel demand strengthens.

Oil, however, has yet to follow this upward trend. News that Saudi Arabia might increase oil output has dampened any potential price gains in the energy sector, keeping prices steady despite the broader rally in commodities. As global markets remain focused on China’s next steps, all eyes are on the country’s ongoing efforts to balance market stability with long-term economic growth.

The post Chinese Stocks Record Best Week Since 2008 Following Major Stimulus Injection first appeared on Coinfea.

Vitalik Buterin, the creator of Ethereum, has emphasized the need for greater transparency in the alignment and governance of the Ethereum ecosystem. He argues that the community must balance decentralization and cooperation to unify various stakeholders while preserving Ethereum’s fundamental principles.

The Ethereum ecosystem comprises diverse participants, including client teams, researchers, layer 2 projects, developers, and local communities. Each group pursues its vision of Ethereum, raising concerns about potential fragmentation within the ecosystem. To mitigate this risk, the Ethereum community is increasingly discussing the concept of “alignment.”

Defining alignment in Ethereum

Buterin defines alignment as encompassing three critical areas: values alignment, technological alignment, and economic alignment. Values alignment emphasizes the importance of open-source principles, reducing centralization, and supporting public goods. Technological alignment involves adherence to ecosystem-wide standards, while economic alignment encourages using ETH as the primary token across projects.

Buterin highlights that the notion of alignment has remained ambiguous, leading to concerns that some projects may align based on personal connections rather than foundational principles. He proposes that Ethereum alignment be articulated through specific properties measured by concrete metrics to create clarity.

Critical components of Buterin’s alignment policy

Open-source software is a cornerstone of Ethereum’s alignment framework. It fosters security through inspection and diminishes the risk of proprietary lock-in. While not every line of code needs to be open-source, Buterin asserts that core components must adhere to this standard to maintain transparency and accessibility within the infrastructure. He cites the Free Software Foundation’s definition of free software and the Open Source Initiative’s standards as exemplary benchmarks for open-source practices.

Additionally, open standards play a pivotal role in ensuring interoperability across the Ethereum ecosystem. Buterin asserts that projects should maintain compatibility with existing standards, such as ERC-20 and ERC-1271. If new requirements emerge, projects should develop new ERCs to accommodate them. The primary metric for assessing alignment in this area is straightforward: does the project align with the relevant ERCs? If not, it fails to meet the alignment criteria.

Decentralization and security are equally important facets of Buterin’s alignment vision. He recommends that projects avoid single points of failure and reduce reliance on centralized infrastructure. To evaluate this, he proposes two tests. The walkaway test first assesses whether an application can continue functioning if the development team and its servers are no longer available. The second, the insider attack test, evaluates the potential damage a team could inflict if they chose to undermine their system. Layer 2 solutions should strive to pass these assessments, according to Buterin.

Fostering a positive-sum environment

Buterin contends that alignment should benefit individual projects and the broader Ethereum community. This can be achieved by utilizing ETH, contributing to open-source initiatives, and committing to donate a percentage of tokens or revenues to support public goods within the ecosystem. Such an approach creates a positive-sum outcome, where the success of one project fosters advantages for the entire community.

Projects should aspire to contribute beyond the Ethereum platform. This could involve developing technologies that deliver utility beyond cryptocurrency, such as funding mechanisms or general computer security solutions. Buterin envisions Ethereum as a vehicle for promoting freedom and openness worldwide, ultimately enhancing financial inclusion and providing real-world benefits.

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In a recent social media post, Tesla CEO Elon Musk voiced support for former President Donald Trump and the cryptocurrency Dogecoin (DOGE). Musk’s message also highlighted his potential role in Trump’s proposed government efficiency commission if Trump wins the 2024 election.

The post, shared on Musk’s platform X, depicted the billionaire alongside Trump in front of the White House. In a surprising move, Musk linked his support for Trump to Dogecoin, creating a buzz in political and crypto circles. This marks the first time Musk has publicly connected the two subjects.

Trump and Musk collaboration

During a rally in Michigan, Donald Trump revealed plans to appoint Musk as head of a “cost-cutting” commission if re-elected. Trump praised Musk’s ability to save money but acknowledged the Tesla CEO’s busy schedule, joking about his involvement in space exploration. Despite this, Trump emphasized that Musk would take on this role without financial compensation.

pic.twitter.com/PHPAbiYagy

— Elon Musk (@elonmusk) September 28, 2024

Musk’s recent post on X confirms his willingness to lead this initiative. While Musk’s exact role remains speculative, his inclusion in the campaign is seen as a strategic partnership between two high-profile figures.

Dogecoin gains attention

The inclusion of Dogecoin in Musk’s political post was met with surprise and anticipation. Musk has long advocated for the meme-based cryptocurrency, promoting it across various platforms. While Dogecoin experienced a surge in popularity in 2021, recent efforts to revive its rally have fallen short.

Despite its decline from an all-time high of $0.73 in May 2021, Dogecoin has seen some gains in the past month, rising by 22%. Musk’s mention of DOGE in his post led to a marginal increase in its price, which is currently trading at $0.123. However, the coin has decreased by 5% over the past two months.

Digital assets in the 2024 campaign

Digital assets, including cryptocurrencies like Dogecoin, are becoming critical issues in the 2024 U.S. presidential race. Musk’s endorsement of Trump and his connection to Dogecoin have set the stage for the meme coin to play a more significant role in political discussions.

Musk has previously incorporated Dogecoin into his business ventures, including accepting DOGE as payment for select Tesla merchandise and rides on the Las Vegas Loop transit system.

As both Trump and Musk continue to promote their visions for the future, it remains to be seen how Dogecoin will factor into their plans. With growing interest in digital assets, cryptocurrency could be central to political and financial conversations in the months leading up to the election.

The post Elon Musk Backs Donald Trump and Dogecoin in Latest Political Move first appeared on Coinfea.

Ethereum (ETH) is struggling to maintain momentum as it faces significant selling pressure from institutional investors. Despite a recent recovery, where ETH surged over 5% in the past week, the cryptocurrency remains approximately 20% down over the last 90 days. This mixed performance presents challenges and opportunities for investors navigating the current market dynamics.

Cumberland and para fi capital make significant moves

Recent data from Lookonchain reveals that prominent institutions, Cumberland and ParaFi Capital, are actively offloading substantial amounts of Ether. Cumberland transferred 11,800 ETH, valued at around $31.88 million, into Coinbase. 

This transaction marks one of Cumberland’s most significant sell-offs. On August 26, Cumberland deposited 6,439 ETH worth about $17.66 million into Binance. Meanwhile, ParaFi Capital withdrew 5,134 ETH, valued at $13.83 million, from Lido and deposited it into Coinbase Prime. These actions reflect a strategic move to capitalize on ETH’s recent price surge while maximizing profit.

An ancient whale emerges from dormancy

In addition to institutional activity, an ancient Ethereum whale has re-entered the market after prolonged inactivity. According to data from Spot On Chain, this whale liquidated another 12,979 ETH for about $34.3 million this week, coinciding with ETH’s recent rebound.

After 4 months of silence, an ancient #Ethereum whale with a $58.8M profit cashed in another 12,979 $ETH for $34.3M this week, as $ETH rebounded ~6%!Originally withdrawing 21,632 $ETH from #ShapeShift and #Poloniex in 2016 at $7.074/ETH, the whale has sold 15,879 $ETH since… pic.twitter.com/JrtBinVnj6

— Spot On Chain (@spotonchain) September 28, 2024

 The whale, previously silent for four months, had withdrawn 21,623 ETH from ShapeShift and Poloniex in 2016 when ETH was priced at $7.074. Since May, this whale has sold over 15,500 ETH, generating approximately $43.5 million at an average selling price of $2,739. Currently, the whale retains a balance of 5,760 ETH.

Ether ETFs experience positive inflows

Ether is trading near the crucial $2,600 price level, reflecting a modest 4.8% increase over the past month. However, the cryptocurrency’s 24-hour trading volume has decreased by 7%, at $15.99 billion. In a noteworthy turnaround, Ether exchange-traded funds (ETFs) have seen inflows surpassing $84 million this week, reversing several weeks of outflows. 

On a single day, inflows reached approximately $58 million, with Fidelity’s FETH leading the charge by bringing in $42.5 million. Following closely, BlackRock’s ETHA saw inflows of $11.5 million, while Grayscale’s ETHE experienced outflows of $10.7 million. Earlier this week, Ether ETFs had recorded outflows of $80 million, primarily from Grayscale’s ETHE, but BlackRock’s renewed interest has shifted the trend back toward positive territory.

As Ethereum navigates these complex market conditions, the actions of institutional players and individual investors will play a pivotal role in determining its future trajectory. The juxtaposition of significant sell-offs and renewed institutional interest underscores the cryptocurrency market’s volatility, leaving investors to assess their strategies in light of ongoing developments.

The post Institutions Offloading Ether: $45 Million Transferred to Coinbase in a Matter of Hours first appeared on Coinfea.

Markus Thielen, Head of Research at 10x Research, predicts a significant bull run in Bitcoin and altcoins following recent economic shifts. 

Thielen attributes this renewed surge to the Federal Reserve’s rate cuts in September and China’s stimulus efforts, which have sparked a wave of FOMO (Fear of Missing Out) in cryptocurrency.

According to Thielen’s research, Bitcoin saw a 5% rise, Ethereum jumped by 11%, and altcoins like SHIB, ENA, and SEI witnessed substantial gains of 36%, 51%, and 54%, respectively. These increases followed the Fed’s rate cuts, driving optimism in the market. Additionally, an altcoin explosion and a significant rise in stablecoin minting were observed, contributing to the rising liquidity across the sector.

FOMO is Back: Are You Holding Enough Bitcoin and Altcoins to Ride the Next Wave?1-11) Since the Fed’s September rate cut, Bitcoin has gained 5%, while Ethereum has surged 11%, and certain altcoins have seen impressive gains—+54% for ENA, +51% for SEI, and +36% for Shiba Inu.… pic.twitter.com/QK6hExh4lk

— 10x Research (@10x_Research) September 27, 2024

Altcoin surge and stablecoin minting

Thielen highlighted the increasing activity in the altcoin market, with Bitcoin’s dominance declining and Ethereum gas fees spiking due to heightened demand. One major factor behind this activity is the drop in the 10-year bond yield, which fell below the 4% mark, triggering a resurgence in decentralized finance (DeFi) projects.

The issuance of stablecoins has accelerated, with $10 billion being minted in recent weeks alone. Circle has been responsible for 40% of the latest stablecoin inflows. Year-to-date inflows for stablecoins have reached $35 billion, pushing their total value to over $160 billion. South Korea has also played a role in this trend, as its retail crypto activity has surged, with daily trading volumes averaging $2 billion, primarily driven by altcoins.

Institutional traders and Chinese stimulus impact

The ongoing Chinese stimulus plan, valued at $278 billion, has significantly boosted global liquidity, further strengthening the cryptocurrency market. Thielen noted that this influx of capital and a drop in Bitcoin’s 30-day realized volatility to 41% have attracted institutional traders. Due to the reduced volatility, these traders are now likely to take larger positions in the market.

Thielen also pointed to significant capital outflows from China, with over 55% of Bitcoin mined by Chinese mining pools. The capital flight is expected to flow into the crypto market, contributing to the continued rally in digital assets.

Shiba Inu surge and FOMO indicators

Santiment, an analytics firm, reported a 43% surge in the price of Shiba Inu, one of the standout performers in the altcoin market. On-chain metrics such as volume, circulation, and whale transaction counts reached 10-week highs. Social media discussions around Shiba Inu also spiked, signaling growing interest and potential FOMO within the market.

Thielen’s analysis suggests that the combination of liquidity boosts, stablecoin inflows, and growing interest in altcoins will likely fuel a continued bull run in Q4. With strong institutional and retail involvement, this trend could push Bitcoin toward the $70,000 mark and lead to further all-time highs across the crypto sector.

The post Bitcoin and Altcoin Bull Run Predicted as FOMO Returns to Crypto Market first appeared on Coinfea.

Hong Kong FinTech Week (HKFTW), Asia’s premier FinTech event, returns for its ninth edition from 28 October to 1 November 2024. Join 35,000+ attendees from over 100 economies at the Main Conference, held 28-29 October at AsiaWorld-Expo. This year, experience a more focused and valuable event designed to deliver the connections, insights and partnerships you need to drive real results in FinTech.

Themed “Illuminating New Pathways in FinTech”, the Main Conference takes overAsiaWorld-Expo, and be sure to check out the exciting community events happening throughout Hong Kong, offering a glimpse into the city’s dynamic FinTech scene.This year, Hong Kong FinTech Week is all about giving you a unique experience and helpingyou make a real impact. Imagine: 35,000+ passionate FinTech enthusiasts from over 100countries, 800+ speakers with fresh ideas, and 8 dedicated forums designed to help youachieve your business goals.

Gain insights from tech visionaries who are shaping the industry, including:

Alain Lam, Vice President, CFO, Xiaomi Corporation

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Tom Farley, Chief Executive Officer, Bullish

Esther Wong, Founder, 3Cap Investment

John Lindfors, Co-founder and Managing Partner, DST Global

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Max Minton, Asia Head of Digital Assets, Goldman Sachs

Thomas G. Tsao, Co-Founder and Chairman, Gobi Partners

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Your Conference Pass unlocks it all: access to all eight forums and a week of dynamiccommunity events. It’s your Hong Kong FinTech Week, your way.

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The post Hong Kong FinTech Week is Back! first appeared on Coinfea.

A cryptocurrency executive, Adam Iza, has been implicated in an extensive extortion scheme involving deputies from the Los Angeles Sheriff’s Department (LASD), according to an FBI affidavit. Iza, associated with the Zort platform, is facing serious charges, including conspiracy against rights and tax evasion, amid allegations of coercing individuals into transferring money and property under duress.

Allegations of corruption and extortion

The FBI’s investigation centers on claims that Iza engaged in a pattern of extortion, utilizing LASD deputies to carry out illegal acts. This included unauthorized searches and arrests intended to intimidate victims. One notable case detailed in the affidavit involves a victim referred to as E.Z., who reported an attempted robbery and kidnapping orchestrated by Iza and his associates. The FBI alleges that Iza secured an unlawful warrant targeting E.Z. Additionally, during a home invasion robbery in 2018, Iza reportedly impersonated an FBI agent to steal a laptop containing cryptocurrency and demanded passwords from the victim.

Victim reports gunpoint extortion

Another victim, identified as R.C., alleged that he was coerced into transferring $25,000 from his business account to Iza’s account. This transfer occurred under extreme duress, as R.C. was reportedly held at gunpoint by individuals claiming to be law enforcement officers. R.C. stated that the bodyguards surrounding him appeared to have ties to law enforcement, contributing to the intimidation he faced. The affidavit suggests a financial trail linking Iza and his associates to payments made to LASD deputies, with one deputy reportedly receiving over $250,000 from Iza’s company, Zort, in exchange for facilitating illegal activities.

Tax evasion and lavish spending

In addition to the extortion claims, the investigation uncovered evidence of substantial tax evasion. Iza allegedly accrued tens of millions of dollars through questionable means but failed to file income tax returns for 2020 through 2022. During this period, he reportedly lavished spending, including leasing high-end vehicles such as Ferraris and Lamborghinis, purchasing luxury goods, and financing extensive travel.

The affidavit indicates that Iza left the United States for the United Arab Emirates in March 2023. He made a brief return in July 2024. Messages reviewed by the FBI revealed that Iza expressed intentions to relocate to Monaco or Switzerland. When the affidavit was filed, he reportedly prepared to travel from Los Angeles to Zurich, Switzerland, raising concerns about his potential efforts to evade authorities.

The allegations against Iza represent a severe breach of both legal and ethical standards, involving public officials and an intricate web of extortion and financial misconduct. As the investigation unfolds, the implications of these accusations could lead to significant repercussions for Iza and the individuals involved in this alleged conspiracy.

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Tether (USDT), the leading stablecoin, is seeing aggressive growth across alternative blockchains during the current market cycle. While USDT’s primary activity centers around Ethereum and TRON, significant expansion has occurred on emerging platforms like Toncoin and Celo. 

This expansion positions Tether as a critical player in decentralized finance (DeFi) and simple payments on new chains. In September, the total supply of USDT reached 119.34 billion tokens, with an additional 1 billion tokens minted in the past month alone. As USDT increases its presence on alternative chains, its supply on Celo grew by over 68%, approaching $300 million. Meanwhile, Toncoin saw over $668 million in inflows, with an anticipated rise to over $700 million. USDT’s activity spans decentralized exchanges (DEXs), centralized exchanges, and daily payment use cases across these chains.

Celo expanded its USDT supply for trading and transfers. | Source: Artemis

USDC takes a conservative approach

While Tether continues diversifying its platform, Circle’s USDC has focused on compliance and maintaining activity on the Base blockchain. USDC’s usage has remained stable, particularly in following European Union regulations. However, USDC’s market share in private wallets has slightly declined compared to USDT. USDT holds 69% of its supply in private wallets, with a smaller portion, around 22.7%, deposited in centralized finance (CeFi) hubs like exchanges and yield platforms.

Despite USDC’s conservative approach, stablecoins have seen significant growth in 2024, especially with the increasing adoption of crypto-collateralized stablecoins. The total stablecoin supply reached between 164 billion and 169 billion, a recovery close to the market peak before the FTX collapse. Notable expansion has been observed on L2 chains like Base and Optimism, and the most significant growth occurred on Celo.

USDT’s varied use cases

USDT’s use cases differ depending on the blockchain. On Celo, the stablecoin is primarily used for transfers to and from centralized exchanges, accounting for $276.6 million of activity as of September. About $14 million, a smaller portion, went to decentralized finance (DeFi) applications, with Uniswap leading the way. On Toncoin, USDT plays a more significant role in gas fees, peer-to-peer payments, and the Telegram advertising economy.

The adoption of USDT in emerging markets continues to grow, providing a convenient solution for payments and transfers outside the strict regulatory environments of the United States and the European Union. USDT is also widely used within Telegram and the Toncoin wallet, enabling zero-fee transfers and message-based payments. This versatility is helping USDT become a go-to asset in tap-to-earn communities and decentralized applications.

Celo prepares for L2 transition

Celo’s recent shift toward becoming an Ethereum Layer 2 (L2) solution is another critical factor driving USDT’s growth. The platform’s transition is expected to facilitate the inflow of stablecoins like USDT from Ethereum. The Celo team has successfully launched the Alfajores testnet, now known as Celo L2, producing blocks for the past 12 hours. Although the complete transition has no fixed deadline, this move will likely encourage more stablecoin activity on Celo, especially with easier asset transfers from Ethereum.

The growth of stablecoins, led by Tether’s aggressive expansion, signals the increasing importance of stable assets across blockchains, particularly in emerging markets and decentralized finance applications.

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The combination of artificial intelligence (AI) and cryptocurrency is increasingly seen as a powerful partnership within tech communities. Ethereum co-founder Vitalik Buterin has acknowledged the potential benefits of integrating AI with blockchain technologies but has also noted certain limitations to its application.

AI and crypto could benefit each other in several ways. The integration could improve market efficiency, enhance security, and help users better understand complex processes. However, challenges remain in specific areas, such as zero-knowledge proofs and scalability.

Potential and Challenges of AI in Crypto

Vitalik Buterin has expressed optimism about AI’s growing role in enhancing the crypto space. He believes AI can significantly improve decentralized exchanges (DEXs) and decentralized autonomous organizations (DAOs). Buterin suggests integrating AI into prediction markets and adjudication systems could lead to more efficient outcomes.

As I said in my post earlier this year… there's been a crypto/AI intersection use case in plain sight for a decade, it's bots market-making DEXes.A lot of fruitful avenues in extending this to prediction markets, and then to adjudication games in DAOs. pic.twitter.com/xGOj9Oo65s

— vitalik.eth (@VitalikButerin) September 27, 2024

At the same time, Buterin has voiced concerns about the development of superintelligent AI, warning that the technology could pose risks if it advances too quickly. He emphasized that centralized control of AI could lead to dangerous outcomes, especially in sensitive areas such as information defense.

In January, Buterin introduced the concept of using AI to help users detect scams and distinguish between true and false information. He argued for eliminating centralized authorities in this process, noting that AI could empower users to make better decisions in their financial activities.

AI’s role in crypto market data

Aim Research highlights that AI and machine learning algorithms are already significantly analyzing market data. AI can help traders by identifying patterns and automating specific processes, reducing human error and improving efficiency. This capability is particularly relevant in the volatile cryptocurrency market, where accurate data analysis is crucial.

AI-powered algorithms can optimize blockchain scalability by reducing data size making transactions faster and more efficient. In decentralized exchanges, AI can also adjust liquidity pool sizes based on market conditions, reducing the risk of errors or fraud in intelligent contracts.

Censorship concerns and open-source AI

Only some people are optimistic about the future of AI and its interaction with crypto. Crypto commentator Goodalexander has expressed concerns over censorship, suggesting that open-source AI without the proof-of-work consensus could be vulnerable to government interference. He believes that robust AI systems will likely face more censorship attempts than cryptocurrencies like Bitcoin.

Despite these concerns, the consensus remains that AI has immense potential in the crypto world. Crypto philosopher Millie has pointed out that integrating AI with blockchain could unlock even greater value than simply using crypto to enhance AI technologies.

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Changpeng Zhao, known as “CZ,” the founder of Binance, will be released from federal custody on Friday, September 27, two days earlier than initially scheduled. His release date was moved due to a policy that prevents the release of prisoners on weekends. 

Zhao had been serving a four-month sentence for violations of anti-money laundering regulations at Binance, the world’s largest cryptocurrency exchange.

Early release and time served

Zhao spent the first half of his sentence at a minimum-security facility in the California desert before being transferred to a halfway house in Long Beach, where he had more freedom and access to supervised activities. His early release is no surprise to those familiar with the U.S. penal system, which often allows inmates to go home before the weekend if their release date falls on a Saturday or Sunday.

The light sentence of four months drew attention, with some attributing it to Zhao’s family’s testimony and the recognition of his extensive philanthropic work. During the sentencing process, his efforts in education through his initiative, Giggle Academy, which provides free education to underprivileged children globally, were highlighted.

Family and philanthropy

With his release, speculation surrounds Zhao’s next steps. He is widely believed to have reunited with his family, including his children and their mother, He Ye, a Binance executive currently residing in Dubai or Paris. Zhao has previously expressed a desire to focus on spending more time with his children and expanding his philanthropic endeavors.

#CZ may be released two days earlier than the official release date this Friday – @Forbes Because his release date falls on Sunday. Watch $BNB.

— MartyParty (@martypartymusic) September 27, 2024

His Giggle Academy, a project dedicated to providing high-quality education to children worldwide, is expected to be central to his future activities. Zhao has publicly stated his commitment to this cause, emphasizing the need to support the youth and provide them with better opportunities.

Restrictions and Binance leadership

Despite his freedom, Zhao faces significant restrictions under the terms of his criminal settlement. The agreement requires him to step down as CEO of Binance and refrain from participating in the company’s day-to-day operations. Additionally, Binance will continue to operate under the supervision of two external monitors appointed by the U.S. government to ensure compliance with regulatory requirements.

While Zhao no longer holds an executive role, his influence on the company remains substantial. As Binance’s largest shareholder, he retains significant sway over its future direction. Binance continues to perform well under its current leadership, boasting a global user base of over 229 million.

Zhao’s release marks the end of a challenging chapter. Still, questions remain about his future involvement in the cryptocurrency industry and how his philanthropic ambitions will evolve in the coming years. His actions will undoubtedly be closely watched by both supporters and regulators alike.

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DeFi leads activities on Layer 2 (L2) chains, demonstrating a significant integration of decentralized finance within the blockchain ecosystem. In 2024, decentralized activities accounted for these networks’ most considerable block space, primarily fueled by decentralized exchange (DEX) trading and lending services. 

The growth of various rollup platforms has raised questions about the sustainability and utility of these chains as their activity dynamics evolve.

The dominance of DeFi and stablecoins

The relationship between DeFi and L2 chains has proven effective, with DEX trading and lending emerging as the primary catalysts for activity on these platforms. In 2024, stablecoins have been crucial, serving as the primary liquidity source across L2 networks. Mantle has allocated over 57% of its block space for DeFi activities. Following closely is Base, which primarily facilitates meme token creation and small-scale liquidity pair launches, with over 43% of its on-chain space consumed by these transactions. The demand for value transfers from Ethereum has driven net inflows of $1 billion into major L2 ecosystems, further solidifying DeFi’s position in the space.

After recent market recoveries, the total value of DeFi across all chains has surpassed $103 billion again, with Ethereum retaining the most significant share at nearly $60 billion. L2 chains compete with other platforms like Solana, TRON, and Binance Smart Chain (BSC) for market activity. Ethereum’s continued dominance remains the critical factor influencing liquidity and traffic in the existing L2 landscape. Furthermore, applications such as Uniswap and Aave have demonstrated their capacity to attract traders and capital, driving further activity on L2 chains.

Fragmentation of L2 chains

Despite the growth, most L2 chains continue to exhibit fragmentation. Polygon remains the most prominent option for cross-chain activities, leveraging its established relationship with Ethereum and its multiple liquid bridges. It holds approximately $63 million in locked liquidity, yet bridging activities are not highly trafficked, as most wrapped assets tend to remain on the new chain. This limits the efficacy of the bridging process, complicating returns to the original chain.

ZKSync transactions slowed down after the airdrop incentives ran out. | Source: Dune Analytics

Arbitrum leads the pack in bridging activity, although data indicates only around 819 wallets engage in bridging per week. Daily, fewer than 150 wallets are active, moving under 400 ETH. Other chains like Optimism, Zora, and Scroll maintain around 10% bridging activity. However, the vision of cross-compatibility among L2 chains and Ethereum has yet to be fully realized.

Challenges of L2 adoption

2024 marked a year of rapid growth for L2 chains, with high transaction volumes and significant value inflows. These chains have effectively scaled Ethereum, redirecting traffic to a more cost-effective and efficient layer. Many L2s are adopting business models to attract venture capital investment or to create viable tokens for short-term gains.

A notable challenge faced by L2 chains is the rapid decline in transaction volumes shortly after their launch. The incentive model, particularly with airdrops, often draws developers to nascent L2s during their testnet phases. Once the mainnet is live, users frequently shift to emerging chains, seeking larger airdrop rewards. This pattern leads to a decline in activity as early adopters migrate to newer opportunities.

L2 chains may rely on high-fee applications and liquidity hubs that offer passive returns or trading opportunities to sustain user engagement. While some chains successfully maintain liquidity and user bases, the initial hype surrounding L2 technology has led to questions about its long-term viability. Existing chains continue to host tangible activity, which could positively impact Ethereum’s ecosystem.

The post DeFi Leads Activities on L2 Chains, but Questions Remain first appeared on Coinfea.

The Superintendent of the New York Department of Financial Services, Adrienne Harris, has urged urgent federal legislation regarding cryptocurrencies. She emphasized that while federal laws are necessary, states should retain their authority over crypto assets to address the evolving landscape of digital finance effectively.

State action vs. federal inaction

Harris noted that state regulators have acted more swiftly than their federal counterparts in implementing crypto regulations. She dismissed concerns that state-level regulation would lead to a detrimental “race to the bottom” in oversight. Harris wanted to collaborate with federal partners, stating, “We are maybe more eager than anyone to have a federal partner and see federal legislation and regulation.”

The New York BitLicense, established nearly a decade ago, has generated mixed reviews and received criticism and praise. Despite the ongoing debates, Harris maintains that the approach has focused on balancing innovation with consumer protection. The NYDFS has established one of the world’s most extensive crypto regulatory frameworks, with a dedicated team of 60 professionals. Harris mentioned that the public perception of BitLicense has shifted towards greater acceptance over time.

Recognition of the BitLicense model

The BitLicense has gained recognition beyond New York, with some federal lawmakers considering it a potential regulatory model. Harris acknowledged its imperfections but expressed satisfaction in seeing other jurisdictions, including California, Illinois, the EU, and Singapore, adopt framework elements. Despite this progress, Congress has had minimal movement on comprehensive crypto regulations, leaving the federal landscape unchanged.

Trump’s Crypto agenda and concerns

In the political arena, former President Donald Trump has positioned himself as a proponent of the cryptocurrency industry. If he wins the election, he has proposed initiatives to establish the U.S. as the “crypto capital of the planet.” A key element of his plan includes creating a National Bitcoin Stockpile, akin to the country’s gold reserves, which would encompass the Bitcoin currently held by the government, valued at over $5 billion.

Trump’s proposals include forming a “Bitcoin and crypto presidential advisory council” to shape policies supporting the digital currency sector. Additionally, he has launched World Liberty Financial, a decentralized finance platform focusing on borrowing and lending using stablecoins within the crypto ecosystem. However, these proposals have sparked concerns regarding potential conflicts of interest, given Trump’s business ties to the industry.

Trump’s recent engagements with the crypto community, including appearances at crypto-themed events and his visit to a Bitcoin bar in New York City, have garnered attention. He has actively promoted his crypto agenda while connecting with supporters and raising significant funds, reportedly generating over $25 million at a single event.

While the discussion surrounding federal crypto legislation intensifies, Harris’s call for collaboration and Trump’s ambitions highlight the pressing need for regulatory clarity in the ever-evolving landscape of digital currencies.

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The Hamster Kombat token mint will commence on September 26 at 10:00 UTC, and network activity on The Open Network (TON) blockchain is expected to increase significantly. 

This event is anticipated to strain the blockchain’s infrastructure considerably, as Hamster Kombat boasts a monthly active user base of 100 million. The TON community has been alerted to prepare for potential operational challenges during this high-traffic period.

Urgent preparations for validators

In anticipation of the increased load from the Hamster Kombat token mint, TON has advised its validators to remain on standby from September 26 through September 29. Validators are encouraged to follow the TonStatus channel on Telegram for prompt communication regarding network conditions and necessary responses. The announcement emphasizes the urgency of this situation, advising validators to act quickly in response to any requests during this critical time.

Dear TON ValidatorWe would like to notify you that from the 26th of September 10:00 UTC we are expecting an increased load on the TON blockchain, as the Hamster Kombat game project with more than 100 million monthly active users will be minting coins on the blockchain, which is…

— TON Status (@ToncoinStatus) September 26, 2024

The TON team has indicated that emergency measures may arise, and validators are expected to closely monitor their hardware and overall validator status throughout the token mint period. The anticipation surrounding the Hamster Kombat airdrop is unprecedented, with projections of it being the largest in cryptocurrency history. Hamster Kombat has amassed over 300 million accounts, contributing to its substantial active user base, which includes approximately 32 million daily users.

Concerns over network capacity

The scale of the Hamster Kombat project raises significant questions about TON’s capacity to handle the impending influx of transactions. The mini-game currently features 55 million bound wallets, prompting concerns regarding the blockchain’s ability to support many simultaneous users. Previous experiences indicate potential vulnerabilities; the network faced significant downtime in August due to traffic from the DOGS memecoin launch. This incident resulted in operational disruptions lasting approximately seven hours.

During that period, major exchanges such as Binance and ByBit temporarily suspended withdrawals and deposits involving the TON network due to transaction surges. The DOGS launch led to over 20 million transactions in just two days, illustrating the network’s susceptibility to sudden increases in activity. The upcoming Hamster Kombat token mint is expected to generate even more transactions, raising the stakes for the TON blockchain.

Future network improvements

In response to the challenges faced during the DOGS memecoin frenzy, TON developers announced plans to enhance the network’s decentralized penalty system. These improvements aim to identify underperforming validators better and promote overall stability within the TON ecosystem. With the impending Hamster Kombat token mint, these updates will be crucial in managing the anticipated surge in network activity.

As the launch date approaches, the TON community remains vigilant. The stakes are high, with millions of users potentially interacting with the blockchain concurrently. The success of the Hamster Kombat token mint could determine the future stability and scalability of the TON network, underscoring the importance of effective preparedness and robust infrastructure. In the coming days, users and developers will closely monitor the blockchain’s ability to withstand this increased load.

The post Hamster Kombat Token Mint May Strain the TON Blockchain first appeared on Coinfea.

A significant Solana whale has unstaked 200,000 SOL, valued at $29.8 million, and moved the tokens to Binance, sparking concerns about potential selling pressure on the asset. 

This whale has previously influenced SOL prices during the July correction. The wallet was inactive but showed a pattern of withdrawing large amounts of SOL before moving them to Binance, a trend that has recurred in recent months.

Whale activity raises market concerns

The whale’s recent activity involved removing 200,000 SOL from staking and transferring it to Binance over three days. The wallet, created in August 2023, has seen activity primarily during significant market movements, such as in June, July, and the end of September.

This whale is one of 217 wallets that hold substantial SOL stakes, with around 13% of the total staked SOL controlled by these large players. In the past, the same whale unstaked $178 million worth of SOL in July, contributing to a price drop from $170 to $129. The whale still holds a stake of 299,994.07 SOL, delegated to Block Logic +MEV Triton, one of the critical validators in the Solana ecosystem.

Block logic validator loses support from a mid-range whale

Block Logic, one of the leading Solana validators, lost a significant portion of its stake following the whale’s withdrawal. Located in Amsterdam, this validator staked 1,449,366 SOL, valued at $217 million, offering a 7.1% annual yield. However, concerns about the potential impact on the validator’s rewards and security have emerged with the recent withdrawal.

Block Logic still has support from another whale, holding more than 1.2 million SOL and several smaller stakers. Despite the withdrawal, Solana staking continues to show net inflows, with more users staking SOL each epoch, surpassing the outflows.

Impact on Solana staking and market sentiment

Solana staking plays a crucial role in maintaining market stability and price support. Staking not only mitigates inflation but also offers passive income to stakers. Currently, nearly 70% of SOL is staked, meaning that free tokens in circulation can significantly influence market dynamics.

The recent whale activity and unstaking events have raised concerns among market participants, especially given the history of significant unstaking events contributing to price declines. However, with most SOL remaining staked and steady inflows of new stakers, the market sentiment around SOL remains cautiously optimistic.

SOL is trading at $149.70, with trading volumes exceeding $2 billion in the last 24 hours. While open interest remains stable, the potential for increased selling pressure looms, especially if other whales follow a similar unstaking pattern.

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