James Howell - who is it?

James Howell is probably going down in history for having gotten into one of the most unfortunate self-inflicted accidents.
A British IT engineer who accidentally threw away a hard drive in 2013. On that disk were stored 7,500 bitcoins. Today, those bitcoins would be worth over 300 million dollars!

Where did he get that amount of bitcoins?

Back in 2009, Howells started mining Bitcoin as a hobby. He used his personal laptop and mined 7,500 BTC when Bitcoin was practically worthless.

At that time, mining was relatively easy and didn't require the specialized hardware used today.

And how did he lose them?

Fast forward to 2013, Howells had stopped mining and dismantled his laptop. He kept the hard drive in a drawer, thinking it might come in handy someday. Unfortunately, during a cleanup, he mistakenly threw it away, thinking it was an old, useless drive.

The hard drive ended up in the Docksway landfill site in Newport, Wales. This landfill covers an area the size of a football field and has layers of waste reaching up to 15 meters deep in some areas. The chances of finding the drive seemed slim.

Efforts to find the lost millions

The Bitcoin website reported that Howell now has in place a plan spanning 12 months. It involves searching the landfill using X-Ray scanning devices and AI technology.

He told The Sun that the Bitcoin in the dump, currently worth £340 million, might hit a billion by the time council officials act.
“I have put together a full consortium of experts in the field to refute all of the claims that the council has said it has concerns over,” Howell told the publication.

Lara Croft in the world of cryptocurrency

After realizing his mistake, Howells contacted the local council, proposing an excavation plan.
He detailed a methodical approach to excavating the landfill, including safety and environmental protection measures. However, his request was rejected because of the potential risks involved.

Over the years, Howells made several attempts to persuade the council. His latest proposals included securing venture capital funding and offering a substantial share of the Bitcoins as a reward for recovery. Despite his efforts, the council remained firm in its refusal.

First UK's "crypto hub"

If James Howells manages to find his lost hard drive containing 7,500 bitcoins, he plans to gift 50 pounds in bitcoins to each of Newport's 160,000 residents and turn the city into the UK's first "crypto hub."

“If we’re successful in recovering the coins, then I made a pledge to the people of Newport to literally give people in Newport crypto directly,” said Howells in an interview with journalist Richard Hammond.

What can be gleaned from this story?

The saga of James Howells is a modern treasure hunt and a stark reminder of the importance of backing up and securely storing digital assets. Will he ever find his lost fortune? Only time will tell...

Solana's Blinks
Now you can interact with blockchain applications without ever leaving your favorite website or social media platform. Solana, known for its lightning-fast and scalable blockchain technology, is turning this dream into reality with their new feature, Blink. This innovative tool aims to make blockchain interactions as simple as clicking a link, seamlessly integrating them into the digital spaces you already love.
What is Blink?
Blink is a revolutionary feature introduced by Solana to simplify how we interact with blockchain technology. Instead of jumping through hoops and navigating complex decentralized applications (dApps), Blink allows you to engage with the blockchain seamlessly through links embedded in familiar platforms like websites and social media. Think of it as a magical portal that connects you directly to the decentralized world.
Blink on Social Media Platforms
Let’s visualize how Blink works. Picture yourself scrolling through your X feed You come across a post from your favorite influencer who just released a new NFT collection. Instead of leaving X and navigating to a separate website, you can simply click on a "blink" link embedded in the post. This link takes you directly to a transaction page, where you can complete the purchase without ever leaving Twitter. It’s like having a mini blockchain wallet right in your social media app!
Blink in Action
Jup: Jup uses Blink to enable users to vote in a DAO or participate in a liquidity pool without switching between different applications. This creates a more cohesive and user-friendly experience.
Meteora: By creating Blink links, Meteora allows users to swap SOL tokens for other cryptocurrencies directly on their platform. This process is executed seamlessly in the background without the need for additional navigation.
DAO Voting: Participate in decentralized autonomous organizations directly from your current webpage.
Support Creators: Easily donate to your favorite influencers.
Mint NFTs: Create non-fungible tokens right from your social media feed.
Blink turns every interaction into a smooth, integrated experience, eliminating the need for multiple steps and platforms.
#Solana
#JUP
#blink

$SOL

What is Casper Network?
Hey there! So, let’s talk about Casper Network. It's this super cool, next-gen blockchain platform that's all about helping businesses get into the blockchain game. Think of it as a really secure, fast, and easy-to-use system for building decentralized applications (dApps).
Key Features of Casper Network
🔥 Scalability
Casper can handle a ton of transactions per second (TPS). That means it can process a lot of stuff really quickly. Perfect if you’re running a big business or a busy app that needs to be super fast.
🔐 Security
Casper takes security seriously. It uses something called Proof-of-Stake (PoS), which is a fancy way of saying it’s more secure and uses less energy than older systems. Basically, people have to put some of their tokens on the line to help keep the network safe.
🔄 Upgradable Smart Contracts
One of Casper's coolest tricks is upgradable smart contracts. This means you can update your smart contracts without having to start from scratch. It's like being able to update an app on your phone without having to download a new one every time. Super flexible and less chance of messing things up.
🌱 Energy Efficiency
Casper is designed to be green. Its PoS system uses way less energy than traditional mining methods. So, it’s not just powerful, it’s also eco-friendly.
💰 Native Token (CSPR)
Casper runs on its own token, CSPR. You can use these tokens for all sorts of things like staking (helping to secure the network), paying for transactions, and voting on network decisions. Plus, you can earn rewards by staking your tokens. Cool, right?

$Casper is built with businesses in mind. It offers predictable transaction fees, top-notch security, and tools for compliance and privacy. Basically, it’s everything a company needs to feel comfortable using blockchain.
🌍 Strong Use Cases
Casper is super versatile. It’s used in lots of industries, from finance and healthcare to gaming and supply chain management. For example, IPwe uses Casper to manage intellectual property, and Metacask uses it to trade whiskey NFTs$BNB $SOL

Scammers have destroyed the trust people once had in X (formerly Twitter) and meme coins. What used to be places for real connections and fun investments are now filled with lies and theft.
On X, fake accounts and scams are everywhere. Scammers pretend to be famous people, run fake giveaways, and push bogus investment schemes. This makes users wary and afraid to interact, fearing they’ll be scammed.
The meme coin scene, once known for fun and community, has also taken a hit. Coins like Dogecoin started as jokes but built real value. Now, scammers create fake coins, hype them up, and then disappear with the money. This leaves honest people out of pocket and ruins trust in the whole system.
It’s maddening to see how these scammers have wrecked what could have been great spaces. X and the crypto community need to step up with better security and transparency. Until that happens, people will keep getting hurt, and trust will keep getting harder to find. The promise of a connected, innovative future is being ruined by those looking to make a quick buck.$SOL $BNB
https://medium.com/@bobus78/scammers-ruin-trust-in-x-formerly-twitter-and-meme-coins-3919fac4b061

The terms of the deal were undisclosed.

Last year, Bloomberg had reported that Amber was planning to sell its Japanese unit.

Japan-based technology giant Sony Group has bought crypto exchange Amber Japan in a bid to enter the crypto market, according to multiple crypto media reports.

Wu Blockchain initially reported the deal, which was later substantiated by the Block.

Exclusive: Sony Group, one of Japan's largest companies, has acquired Amber Japan, officially entering the crypto exchange field. Sony's businesses include games, music, cameras, etc., with a market value of more than $100 billion. Singapore market maker Amber Group acquired… pic.twitter.com/XOHFIUmKtJ

— Wu Blockchain (@WuBlockchain) July 1, 2024

The terms of the deal were undisclosed.

While Sony has dabbled in Web 3 through investments and partnerships, the latest deal will mark the PlayStation maker's proper foray into crypto. The company had teamed up with the Astar Network for a Web3 incubation program and filed a patent for transferring non-fungible tokens (NFTs) between different games and consoles.

Amber Japan, formerly known as DeCurret, was taken over by crypto finance firm Amber Group in 2022 and subsquently renamed. Amber had bought DeCurret through its local unit, WhaleFin Holdings Japan.

Sony and Amber were not immediately available for comment.

Last year, Bloomberg reported that the Hong Kong-based Amber Group was planning to sell its Japan unit due to the strict regulations in the nation.

On July 4, 2024, the overall cryptocurrency market experienced a massive downturn, however, the world’s biggest cryptocurrency Bitcoin(BTC) tanked more than 3.5% in the last 24 hours. The potential reason behind this massive downside move is the recent breakdown of the support level near $60,000 and the Mt. Gox BTC repayment update.

Impact of Bitcoin Breakdown on Altcoins 

Following this massive price drop in BTC, the overall cryptocurrency market was significantly impacted. Top altcoins including Ethereum (ETH), Solana (SOL), BNB (BNB), XRP (XRP), and Dogecoin (DOGE) experienced massive price drops. According to coinmarketcap data, in the last 24 hours ETH, SOL, BNB, and XRP have experienced a price drop of 4.8%, 10%, 6%, and 5.5% respectively. 

Source: Coinmarketcap

Amid this massive price drop, bulls have liquidated their $280 million worth of long positions in the last 24 hours, according to an on-chain analytic firm Coinglass. At the time of press, BTC is trading near the $58,800 level, and in the last 24 hours, it experienced 3.4% of downside momentum. Whereas, the 24-hour trading volume jumps by 56% signaling a higher traders’ and investors’ participation in BTC following price drop.

If we look at the performance of BTC over a longer period, in the last 7 days it lost nearly 7% of gain. Whereas, in the last 30 days, BTC has lost more than 15% of its gains.

Bitcoin technical analysis and key levels

According to expert technical analysis, BTC is looking bearish and currently, it is getting a strong support of 200 EMA (Exponential Moving Average). If BTC on a daily time frame gives a strong daily candle closing below 200 EMA, then there is a high possibility that we may see a significant price drop of over 8% to $53,000 in the coming days. 

However, this $53,000 level is a strong support for BTC if it fails to sustain this current level. Additionally, if BTC reaches this level then nearly $1 billion worth of long positions will be liquidated as per data from CoinGlass. Following the recent breakdown of the support level, short sellers are more active as they have placed notable bids on the short side. Whereas, long buyers are comparably lower.

Besides this fear and massive selling pressure in the market, on July 4, 2024, James Seyffart Bloomberg ETF expert stated there is a low possibility that the US SEC will approve a spot Ethereum ETF (Exchange Traded Fund) by the predicted launch dates. 

Today’s newsletter marks my one-year anniversary of curating the Crypto for Advisor newsletter. Time flies when you are having fun, and it’s hard to believe I have 52 issues under my belt. Thanks to CoinDesk and particularly Kim Klemballa for giving me this opportunity along with all of our valued newsletter contributors who spend their time building this industry as your contributions are invaluable. As we continue our crypto journey together, I hope to see new contributors and continued engagement with ideas and topics as we strive to deliver advisor education globally. Your educational needs, views and opinions are what shape this newsletter - as it is truly Crypto for advisors!

We understand the last couple of years have been challenging in the crypto space, but 2024 has brought excitement and energy back. We are seeing many exciting product launches and regulatory advancements. I look forward to continuing to provide content to our valued audience and to keeping them informed of timely and relevant developments.

In today’s issue, André Dragosch, head of research at ETC Group, discusses the volatility of crypto assets, including bitcoin and ether and how they compare to other emerging technology investments. Bryan Courchesne, CEO of DAIM, explains how advisors can navigate the volatility of crypto within client portfolios.

Happy Independence Day to our American readers.

– Sarah Morton

You’re reading Crypto for Advisors, CoinDesk’s weekly newsletter that unpacks digital assets for financial advisors. Subscribe here to get it every Thursday.

Are Crypto Assets Too Volatile?

Traditional financial investors tend to shun crypto assets because of the high volatility.

To be fair, the volatility of crypto assets is relatively high compared to traditional asset classes such as equities, bonds and most commodities.

Over the past three months, the annualized volatility of bitcoin and ether has been around 45% to 50%, respectively, while the volatility of the S&P 500 was around 15%.

A recent survey by Fidelity among institutional investors also identified high volatility as the No. 1 most-cited barrier keeping investors from allocating to crypto assets.

However, the truth is that high returns come with high risks, i.e. volatility.

Put differently, where there is growth, there is volatility.

Most equity investors know this since most high-growth mega-cap stocks like Tesla still tend to have high double-digit volatility.

Will tokenization of real-world assets (RWAs) take off, and will Ethereum be the go-to platform?

Will bitcoin replace the U.S. Dollar as a global reserve currency?

Although these types of scenarios have become increasingly likely over the past few years, there remains uncertainty around these questions.

Uncertainty tends to create volatility.

The history of Amazon holds important lessons in this regard. In the late 1990s, most Wall Street analysts thought “selling books online” was a silly idea. There was a lot of uncertainty about whether online retailing and the internet in general would eventually become mainstream.

In the same way that the uncertainty around the technology has declined, the volatility in Amazon’s stock price has declined over time.

Few investors seem to remember that Amazon’s stock used to record above 300% in annualized volatility in the late 1990s; today, the volatility is well below 50%.

We have already observed a similar structural decline in volatility in the case of crypto assets.

One reason is that bitcoin’s scarcity has increased with every halving, making it more “gold-like.” Halvings are best understood as a supply shock that reduces the supply growth of bitcoins by half (-50%). Hence, the character of bitcoin as an asset class has changed over time

While bitcoin’s volatility was around 200% during the first epoch – the roughly four-year timespan between the cryptocurrency's pre-programmed "halvings" of miner rewards – until 2012, it has decreased to only 45% more recently. Similar observations can be made regarding ether.

In a global 60/40 stock-bond portfolio, the maximum Sharpe Ratio is achieved by increasing the bitcoin allocation to around 14% at the expense of the global equity weighting.

The Sharpe Ratio of major crypto assets like bitcoin or ether is significantly above 1, which means that investors are more than compensated for exposing themselves to higher volatility.

Looking ahead, the decline in volatility is bound to continue with every new halving. The next one is scheduled to happen in 2028.

Increasing retail and institutional adoption of this technology is also bound to decrease volatility structurally over time.

The reason is that increasing heterogeneity among investors will lead to more dissent between buyers and sellers, which dampens volatility – the essence of Edgar Peters's Fractal Market Hypothesis.

Just remember: Where there is growth, there is volatility.

- André Dragosch, head of research, ETC Group

Ask an Expert

Q. How can advisors help their clients navigate crypto volatility?

A. Crypto, in its short history, has undoubtedly been a volatile asset. But that does not mean that it should be ignored by advisors. Advisors should not consider assets in isolation but rather how they interact with others in a well-balanced portfolio. When creating a portfolio that can deliver long-term results, diversification is key. Asset prices move in cycles, sometimes together but more or less distinct. This can be measured by an asset’s correlation to other assets. A lower correlation means assets are less likely to move together. If one asset is up 35% in the year, another asset might only be up 4%. If assets are negatively correlated, one asset will be up in a given period while the other will be down. This is important in the context of an investment portfolio because while assets may be volatile themselves, including them with other less correlated assets can lower the overall volatility of a portfolio.

Q. Is there a correlation between crypto’s volatility and other assets?

A. With respect to correlation, a volatile asset like crypto is actually very important to decrease the overall volatility of a portfolio. Lowering the overall volatility of a portfolio is important as it helps smooth investment returns over time. This is important for many reasons. For example, an investor could have significant and unpredictable liquidity needs. If they have a portfolio of highly correlated assets and those assets are experiencing a period of poor returns, they would be withdrawing a larger percentage of their portfolio compared to a portfolio that included less correlated assets. Crypto, having a low correlation with traditional assets, could help in this regard. Its volatility has historically been positively skewed so even though it has big swings, when all other assets are down it can provide a ballast to your portfolio. Smoothing returns also helps from a cognitive perspective for most investors. People can get too emotional when looking at their portfolio’s performance. Big price moves have a visceral effect where large moves up make people want to buy more (usually right before a drop) and large moves down make people discouraged and pull money out (right before performance rebounds). Including at least a small portion of (less-correlated) crypto in a portfolio smooths the returns of a portfolio so when investors check in, they see more modest gains or losses. This helps keep their portfolio out of sight and out of mind which generally improves the chances of long-term success. Crypto, while volatile, should not be viewed in isolation but in the context of how it can help create a truly diversified portfolio that will help create long-term wealth for investors.

- Bryan Courchesne, CEO, DAIM

Keep Reading

Revised spot Ether ETF date: the U.S. SEC has requested issuers submit revised filings by July 8.

Will Solana ETFs be available next? On June 28, 21Shares filed an S-1 application with the U.S. SEC for a spot Solana (ETF).

Bitcoin ETFs saw the largest inflows since June 7, with Fidelity leading at $65 million.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.