Crypto Hacks and Frauds Surge to $509M Q2, Immunefi Reports

Web3 bug bounty platform Immunefi has revealed that the cryptocurrency industry lost an estimated $509 million to hacks and fraud in the second quarter of 2024, marking a staggering 91% increase from the same period last year. May 2024 alone saw the highest monthly losses recorded, amounting to $107 million. June, however, experienced a slight reprieve with losses dropping to $78 million across 12 incidents, a 27% decrease from the $107 million lost in June 2023.

Centralized crypto institutions were the prime targets, accounting for two-thirds of successful attacks, according to the Immunefi report. The findings also highlighted that Ethereum was the most exploited blockchain during the quarter, followed by the BNB chain and Arbitrum, representing 44.4%, 25%, and 5.6% of the total losses, respectively.

Jonah Michaels, Communications Lead at Immunefi, noted that Ethereum’s prominence as the main hub for DeFi activity, coupled with the vast amount of funds locked within its ecosystem, makes it a prime target for hackers. He explained that hackers exploit numerous protocols on Ethereum for significant gains, and its connection to major privacy-focused chains and technologies facilitates the quick laundering of stolen funds.

The most significant loss this quarter was suffered by Japanese centralized exchange DMM Bitcoin, which fell victim to hackers and lost an astonishing $305 million. In response, DMM Bitcoin has instituted measures to reimburse affected customers. Other notable targets included BtcTurk, Hedgey, Lykke, Gala Games, and SonneFinance, which collectively faced losses totaling $164.2 million.

Bitcoin Miner CleanSpark to Acquire Griid Infrastructure in $155 Million Deal

Bitcoin miner CleanSpark announced its plan to merge with Griid Infrastructure, acquiring all of the mining firm's common shares in a deal worth $155 million. As part of the merger agreement, CleanSpark will gain access to 20 megawatts (MW) of Griid’s currently available power, which is expected to significantly boost CleanSpark’s operational capacity. The company estimates that this deal could increase its power capacity by over 400 MW within the next two years.

CleanSpark CEO Zach Bradford highlighted the strategic benefits of the acquisition, noting that Griid’s energy infrastructure in Tennessee complements CleanSpark’s existing operations in Georgia and Mississippi. “This acquisition would give us a clear and steady path over the next three years,” Bradford stated, expressing confidence in the merger's long-term benefits.

In Georgia, CleanSpark has developed over 400 MW of power capacity backed by valuable, long-term power contracts. The company also operates power infrastructure in Mississippi and co-locates mining machines in New York. Further expanding its footprint, CleanSpark has announced the development of additional mining facilities in Wyoming.

Following the announcement, Griid Infrastructure's stock price plummeted, dropping 49% to $1.20 per share. Despite this sharp decline, shares in the Cincinnati-based mining firm have rallied 55% over the past month, reflecting optimism about its future prospects. CleanSpark’s stock showed little change following the announcement, with a slight increase of 0.44%, trading at $16.15 per share.

New US President, SEC Could Pave Way for Approval of Spot Solana ETF, Bloomberg ETF Analyst Says

The launch of a spot Solana (SOL) exchange-traded fund (ETF) in the United States might depend on a shift in administration and changes in the leadership of the Securities and Exchange Commission (SEC), according to Bloomberg ETF analyst Eric Balchunas.

On June 27, Matthew Sigel, VanEck’s head of digital assets research, stated that the ETF issuer filed for a spot Solana ETF with the SEC. The new fund, named the VanEck Solana Trust, aims to leverage Solana’s decentralized nature, high utility and economic viability.

Despite this, Balchunas expressed skepticism about the approval of such ETFs. His initial reaction was that the SEC would likely reject the spot Solana ETF filing, primarily because there are no Solana futures ETFs available in the U.S. Both Bitcoin (BTC) and Ethereum (ETH) had futures products approved prior to spot ETFs, as the SEC was concerned about potential fraud and market manipulation affecting spot ETF products.

Balchunas suggested that a new U.S. President and a change in SEC leadership in 2025 could pave the way for these products. He speculated on social media that if someone like Hester Peirce were to lead the SEC, the regulatory environment might be more favorable for spot Solana ETF applicants.

Globally, more than $1 billion worth of Solana exchange-traded products are already available, including the 21Shares Solana Staking ETP and the ETC Group Physical Solana product in Europe, as highlighted by Bloomberg ETF analyst James Seyffart.

Zeta Markets' Airdrop Outperforms Expectations, Surging to $30M in Value

Zeta Markets, a Solana-based decentralized exchange (DEX) known for facilitating on-chain perpetuals trading, launched an airdrop on Thursday, distributing 100 million ZEX tokens. The airdrop, which amounts to 10% of the total supply, was designed to reward long-term users of the platform.

ZEX tokens debuted at $0.13, slightly above pre-market predictions. The token's value quickly tripled, soaring past $0.30 and elevating the airdrop's total value to approximately $30.78 million. However, as of now, ZEX has stabilized at around $0.25.

The airdrop will be distributed in two phases. The first phase, which took place today, made 80% of the tokens available to early platform users. Allocation was based on users' "Z scores," a points system tracking individual trading volumes and other criteria. The remaining 20% of the tokens will be distributed later to ZEX holders who stake their tokens with Zeta.

Perpetual contracts, the core of Zeta's trading offerings, allow traders to speculate on the future prices of crypto assets without any expiration date. This airdrop follows a strong performance by Zeta Markets, which recorded $3.24 billion in trading volume in May.

U.S. Government Transfers Seized 3,940 BTC Worth $240M to Coinbase

The United States government transferred 3,940 Bitcoin, worth approximately $240 million at current prices, to a Coinbase Prime wallet on June 26, 2024, as revealed by Arkham Intelligence. The transaction involved Bitcoin seized from convicted drug trafficker Banmeet Singh earlier this year.

Singh was arrested by British authorities in London on drug distribution charges in 2019, and extradited to the United States in 2023. As part of his sentencing, Singh was ordered to forfeit over 8,100 Bitcoin to U.S. authorities, a sum valued at approximately $150 million at the time. This seizure, characterized by the U.S. Drug Enforcement Agency (DEA) as the largest ever cryptocurrency confiscation by the agency, marked a significant moment in the enforcement of digital asset regulations.

The United States government is a substantial holder of Bitcoin, acquired through various seizures and asset forfeitures. Arkham Intelligence data indicates that the U.S. government currently holds approximately 214,000 Bitcoin, valued at $13 billion, making it the largest state holder of the cryptocurrency in the Arkham Intel database.

The government's handling of seized Bitcoin raised fears that large sell-offs could impact Bitcoin prices. These concerns have been amplified by recent actions from the German government, which has been liquidating its Bitcoin holdings, valued at roughly $2.76 billion. Furthermore, the potential impending sell-off from the Mt. Gox bankruptcy estate, which is in the process of liquidating 140,000 Bitcoin to reimburse creditors, has also sparked fears amongst market participants.

TON-Based Notcoin Announce 210M Token Burn Worth $3M, NOT Surges 16%

The Telegram-based cryptocurrency Notcoin (NOT) announced a major token burn, eliminating 210 million NOT tokens valued at $3 million in a single day. This move drove NOT's price up by 16.40% to $0.0164 on June 25. NOT is currently down 2.78% over the past 24 hours as part of a retracement following a wider market recovery. However, it is up a staggering 195% in the past month, despite a market downturn, making NOT the top performer amongst large cap tokens.

In addition to the token burn, the Notcoin team revealed plans to distribute $4.2 million worth of NOT tokens to "Gold and Platinum users" of its Explore initiative. This program allows any project to contribute NOT to the Explore pool, creating campaigns with tasks that users complete to earn NOT.

Token burns permanently reduce the supply of a cryptocurrency in active circulation, which is typically bullish if demand remains strong or increases. Secondly, the Explore initiative ensures ongoing demand for NOT by incentivizing user engagement and attracting new projects to the platform. Both strategies align with Notcoin founder Sasha Plotvinov's four-year roadmap for the project's growth.

Currently, the Notcoin project is concentrating on its Notcoin app, which features campaigns where users can earn Notcoin by interacting with new Telegram games. The goal is to establish the app as a central hub for launching other ecosystem projects, thereby driving demand for Notcoin and incorporating further token burns.

Ethereum L2 Blast Airdrops $430M Worth of BLAST, Token Immediately Selloffs

Ethereum layer-2 network Blast finally launched its eagerly awaited airdrop. However, the initial excitement quickly turned to a rush of selloffs, driving down the price of BLAST tokens. The BLAST token launched at a price of $0.025, making the Phase One airdrop of 17 billion tokens valued at around $430 million. Within minutes of the airdrop, a significant number of claimants began offloading their tokens, causing the price to drop closer to $0.02.

The rapid selloff appears to be fueled by a mixture of genuine disappointment and high expectations within the DeFi community. Many had anticipated a higher opening price for BLAST, given the network's popularity and the substantial sums raised during the airdrop for Blast's predecessor, Blur, an incentivized NFT marketplace.

Prior to the airdrop, speculations about BLAST's value ran high. Crypto traders had predicted that the token would debut between $0.03 and $0.10, a range it has not yet achieved. Just a month ago, pre-market trading saw BLAST valued at $4.40, which would have put the airdrop's worth at a staggering $74.8 billion.

Leading up to the airdrop, Blast saw a surge in activity, with the total value locked (TVL) on its network soaring to $2.3 billion by June 5. However, since the airdrop, TVL has dropped by over 30%, now sitting at $1.6 billion, according to DefiLlama. The price of BLAST has since gained 31% over the past 24 hours to trade at $0.0277.

Bitwise: U.S. Spot Ethereum ETFs Could See $15B in Net Flows

As the launch of spot Ethereum exchange-traded funds (ETFs) draws near, Bitwise's chief investment officer Matt Hougan predicts these ETFs could attract significant capital into the market. Hougan expressed bullish sentiment about the potential impact of spot Ether ETFs, suggesting that Ethereum ETFs could attract $15 billion in net flows within their first 18 months.

Hougan's projection is rooted in a detailed analysis of several factors, including comparisons of Ethereum's market capitalization to Bitcoin's, the international crypto ETP market, the anticipated conversion of Grayscale’s Ethereum Trust (ETHE) to an ETF, and the dynamics of spot Bitcoin ETFs’ “carry trade.”

According to Hougan, investors are likely to allocate funds to Bitcoin and Ethereum ETFs in proportion to their market caps. "U.S. investors have already poured $56 billion into spot Bitcoin ETPs," Hougan noted, predicting this figure could reach $100 billion by the end of 2025 as these ETFs gain traction on major platforms like Morgan Stanley. Using this $100 billion benchmark and accounting for Grayscale’s $10 billion Ethereum Trust conversion, Hougan estimates spot Ethereum ETFs might see a net flow of $25 billion.

To further substantiate his estimate, Hougan examined international ETF markets, discovering that Canada and Europe exhibit similar investment splits between Bitcoin and Ethereum ETPs. In these regions, Bitcoin ETPs constitute roughly 78% of the assets under management (AUM), while Ethereum ETPs make up about 22%.

"The near-identical asset splits across geographies suggest this distribution accurately reflects ETP investors' demand for BTC and ETH," Hougan explained. Given that international Ethereum ETFs represent only 22% of the combined market share compared to Bitcoin, the estimate for potential inflows into Ethereum ETFs is adjusted from $25 billion to $18 billion.

Crypto Market Braces for Volatility as $10B in Bitcoin and Ether Options Set to Expire

Bitcoin (BTC) options worth $6.68 billion and Ethereum (ETH) options worth $3.5 billion are slated to expire on Deribit, the leading crypto derivatives exchange, this Friday at 8AM UTC. This impending expiry represents over 40% of the current cumulative open interest, which stands at more than $23 billion. Such large quarterly expiries often lead to heightened market volatility, as increased trading volumes and the unwinding or rolling over of positions make prices more unpredictable.

"As we approach Friday's large quarterly expiry, potentially influenced by 'quadruple witching' and related volatility in U.S. stock markets, over 25% of Deribit open interest is set to expire in-the-money, equating to over $2.7 billion. The total notional size of the expiry is over $10 billion," according to Luuk Strijers, chief executive officer at Deribit.

Having more than 25% of open interest set to expire in the money suggests that a significant number of derivative contracts are expected to be profitable for their holders at expiration. Bitcoin, the leading cryptocurrency by market value, has dropped nearly 9% this month, testing levels below $60,000, which attracted bargain hunters. As usual, this sell-off has impacted the broader market, pulling ether down by almost 10%.

Despite the current bearish sentiment, data from Amberdata indicates that investors are willing to pay a higher premium for near-term and long-term calls, which offer asymmetric upside, compared to puts. This suggests that traders are anticipating a positive shift in the market. BTC is currently trading at $60,958, down 2.24% over the past 24 hours, while ETH is down 1.14% and hovering around $3,375.

Blast Airdrop Will See 17 Billion in Tokens Up for Grabs

One of the summer’s most anticipated crypto airdrops, from Layer-2 Blast, is set for June 26. Crypto holders who use Blast, the Ethereum layer-2 scaling network developed by the creators of the incentivized NFT marketplace Blur, stand to receive substantial portions of the initial 17 billion BLAST tokens being distributed.

The allocation for this airdrop has been meticulously calculated based on the number of Blast Points users have accumulated. A significant 50% of the initial airdrop will be reserved for users of decentralized applications (dapps) within the Blast ecosystem. These tokens will be distributed through various dapps that have received Blast Gold and passed it on to their users.

The total supply of BLAST tokens is 100 billion. Out of this, 25.5% is allocated to core contributors, 16.5% to investors, 8% to the Blast Foundation, and 50% for community initiatives, including the initial airdrop.

The "Phase One" airdrop will distribute 17 billion BLAST tokens, equaling 17% of the total supply. Specifically, 7 billion tokens will go to Blast Points holders, another 7 billion to Blast Gold holders, and 3 billion to the Blur Foundation, which supports Blast’s NFT marketplace predecessor. These funds will be used for both retroactive and future airdrops.

If users have held any amount of ETH, WETH, or Blast’s native stablecoin USDB on the Blast network since its mainnet launch in February, they have earned Blast Points. Users can check their Blast Points balance on their dashboard. ETH and WETH balances earn a consistently proportional amount of Blast Points for each transaction block, while USDB balances earn a variable amount of points that fluctuate with the price of ETH.

For Blast Gold, the team has selectively distributed it to certain apps in the Blast ecosystem that have shown promise. Blast encouraged these dapps to pass accumulated Gold to their users, and many have complied. Blast Gold holders are set to receive their share of 7 billion BLAST tokens tomorrow. Notable recipients like the meme coin community Pacmoon and the SocialFi gaming experiment Fantasy Top have passed this allocation onto their users.

VanEck's Filing Hints at Imminent Launch of Spot Ethereum ETFs

A recent regulatory filing by VanEck suggests that the launch of U.S. Ethereum ETFs could be just a week away. VanEck, an $89 billion investment manager, submitted an 8-A form for its VanEck Ethereum Trust on Tuesday, a necessary step for issuing certain types of securities on national exchanges.

Bloomberg ETF analyst Eric Balchunas highlighted that VanEck filed an 8-A form for its Bitcoin spot ETF exactly seven days before it launched on January 11. This pattern has led Balchunas to speculate that the Ethereum ETF could see a similar timeline, potentially launching by July 2. "Good sign for our July 2nd over/under (7 days from now)," Balchunas noted, while also cautioning that anything is possible.

This situation differs slightly from January's Bitcoin ETF launch, which was surrounded by uncertainty about regulatory approval. In contrast, Ethereum ETFs have already received the green light to list on national securities exchanges. The Securities and Exchange Commission (SEC) is currently reviewing individual applicants' S-1 applications, making the approval of Ethereum ETFs a matter of "when" rather than "if." SEC Chairman Gary Gensler confirmed this month that Ethereum ETFs are expected to be approved "over the course of this summer."

Several signs indicate that Ethereum ETF sponsors are gearing up for an imminent launch. Bitwise has begun airing multiple television ads promoting Ethereum's advantages over traditional financial systems. Meanwhile, VanEck and Franklin Templeton have already disclosed their funds' management fees, a detail often kept confidential until the last moment to avoid tipping off competitors.

Solana Foundation Introduces 'Blinks' to Simplify Blockchain Transactions

The Solana Foundation has unveiled a feature designed to seamlessly connect its blockchain to any website via a shareable link. Announced on June 25, this innovative solution, known as Solana Actions and blockchain links or "blinks," enables any web page capable of displaying a URL to facilitate Solana transactions.

This new functionality allows users to perform Solana transactions directly from a shared link. This capability opens up a wide range of applications, including crowdfunding, online purchases, and on-chain voting. Chris Osborn, founder of Dialect, highlighted the potential of this feature: "From your X feed, you can buy an NFT, tip a creator, receive money, vote, stake, swap, and so much more." Dialect is responsible for the developer tools that power Solana Actions, such as forkable, self-hosted interstitial signing sites and software development kits.

Blinks can be shared across various platforms, including websites, social media, and even physical QR codes. Jon Wong, head of ecosystem engineering at the Solana Foundation, explained that Solana Actions and blinks enable any website or application to become a distribution point for on-chain interactions.

To ensure user safety, the Solana Foundation has implemented a security roadmap for this new feature, allowing users to enable wallet support for Actions and blinks. A spokesperson noted, "Actions and blinks are similar to 'connecting' your wallet to DApps [decentralized applications] - trust the sites you know and use, just as you trust the DApps you know and use."

When a wallet initially attempts to pull a transaction from an unfamiliar API, users will encounter a standard "connect to site" prompt. "If the site domain has been connected to the wallet in the past, the site domain is more likely to be trustworthy. As with DApps, Action transactions are always simulated prior to execution," the team elaborated. To further enhance security, the launch will initially run with whitelisted domains from Solana's partners, including Jupiter, Helium, Truffle, Phantom, and Backpack.

ZKsync Introduces Elastic Chain Architecture in Major Upgrade

Layer 2 developer ZKsync has unveiled a significant upgrade to its ecosystem, transitioning to an "elastic chain" architecture with its recent v24 update. This move marks a shift from a singular zero-knowledge (ZK) rollup chain to a network of multiple ZK chains, each offering native interoperability and a unified user experience as part of the ZKsync 3.0 roadmap.

One of the key changes in this architectural overhaul is the reconfiguration of ZKsync’s native bridge into a token vault. This enhancement aims to improve connectivity among the growing number of ZK chains within its ecosystem, facilitating smoother transactions and interactions.

This upgrade follows the project's airdrop of 3.675 billion ZK tokens to early adopters of the Ethereum Layer 2 network. This distribution represents 17.5% of the ZK token’s total supply of 21 billion tokens, rewarding the community that has supported the network's growth.

The developers at ZKsync envision the elastic chain architecture creating a seamless operation that mimics a single blockchain. This means transactions will only require a single wallet confirmation, eliminating the need for network switching or manual asset bridging. This unified approach is designed to provide a more cohesive and user-friendly experience across the multi-chain ecosystem.

The ZKsync Era, the project's flagship rollup, serves as the foundational layer of this new elastic chain ecosystem. By the end of 2024, the network plans to encompass over 20 operational chains on the mainnet, all developed with the ZK Stack software kit. This expansion includes notable projects such as Lens Protocol, QuarkID, PlayFi, GRVT, Cronos zkEVM, Nodle, and others.

Crypto Market Rebounds, Triggering Over $56M in Short Liquidations

The cryptocurrency market saw a modest recovery on Tuesday, with almost every token in the top 100 by market cap posting gains compared to the previous day. This upward trend, however, has led to significant liquidations of over $87 million in the past 24 hours, $56 million of which were from short positions, according to CoinGlass.

Bitcoin (BTC) gained 2.45% in the past 24 hours, trading at $61,983, while Ethereum (ETH) has increased by 1.88% to $3,403. Notably, memecoins such as Pepe (PEPE) and Dogwifhat (WIF) performed exceptionally well, with gains of 15.9% and 16.8%, respectively.

While these gains are positive for the overall market, they have spelled trouble for those taking short positions. Even those with long positions faced some setbacks, with approximately $30.9 million in long positions being liquidated. The cryptocurrency market had been on a downward trajectory for the past two weeks, with Bitcoin dipping as low as $59,780 yesterday. Several factors have contributed to this downward pressure, such as the sell-off of seized Bitcoin by Germany and the anticipated movements of Bitcoin held by the failed crypto exchange Mt. Gox.

Bitcoin and Ethereum have been particularly impacted by recent liquidations, which reached over $360 million on June 24 when Bitcoin fell below $60,000 for the first time since early May. In the midst of these market movements, analysts are closely watching for "accumulation whales," large investors who may be taking advantage of the lower prices to accumulate more assets.

AI Crypto Tokens Surge Despite Nvidia's Market Cap Plunge

Artificial intelligence-related crypto tokens have soared over the past week, even as Nvidia, a key player in the AI space, experienced a significant drop in its market capitalization. Nvidia's stock price plummeted by 11.16% over the last five trading days, erasing $430 billion from its market cap, according to Google Finance. As of June 25, Nvidia's market cap stands at $2.91 trillion, down nearly 13% from its all-time high of $3.34 trillion.

Nvidia’s decline came amid concerns over substantial share sell-offs by its top executives, including President Jensen Huang. Since June 13, Huang has sold $79.38 million worth of Nvidia stock, as per a June 21 filing with the U.S. Securities and Exchange Commission (SEC). Research firm Barchart reported that Nvidia insiders have collectively sold over $796 million worth of shares this year, nearing the billion-dollar mark. Despite this, portfolio analyst Oguz O pointed out that many of these sales are pre-planned, a common practice for executives to systematically sell stock over time.

AI-related cryptocurrencies such as Fetch.AI (FET) and SingularityNET (AGIX) have seen impressive gains. Over the past seven days, Fetch.AI surged by 35% and SingularityNET by 34%, according to CoinMarketCap data. This growth is particularly noteworthy given the broader crypto market's decline during the same period, with Bitcoin (BTC) and Ethereum (ETH) falling by 7% and 2.2%, respectively.

Other AI tokens have also shown gains. OpenAI CEO Sam Altman's Worldcoin (WLD) saw a 5.9% increase over the past week, while Arkham Intelligence’s native token, ARKM, rose by 26% during the same period.

Trump Could Speak at Bitcoin 2024 Conference in Nashville

According to a report from Axios, Republican candidate and former President Donald Trump might be making an appearance at Bitcoin 2024 in Nashville this July. The news outlet cited two sources familiar with the discussions, suggesting that Trump is in talks to speak at the prominent cryptocurrency event.

Other notable political figures are also slated to speak at the conference, including presidential candidate Robert F. Kennedy Jr., former presidential candidate Vivek Ramaswamy, and Republican Senators Bill Hagerty and Marsha Blackburn.

Trump, the presumptive GOP presidential nominee, has been vocal about his support for cryptocurrency in the lead-up to the November election. At a recent event at Mar-a-Lago, he told attendees that he would advocate for bitcoin mining if he returned to the White House, highlighting miners' contributions to energy grid stability. Additionally, Trump expressed his willingness to accept political donations in the form of cryptocurrency and pledged to halt what he described as "Joe Biden's crusade to crush crypto."

In contrast, President Joe Biden's re-election campaign has been engaging with members of the crypto industry for advice on digital asset policies. This marks a notable shift from the Biden administration's previously less favorable stance on cryptocurrency. Both Trump and Biden are set to face off in a debate on Thursday, hosted by CNN.

Mt. Gox to Begin Repaying Defunct Exchange Users in July 2024

The long-awaited repayments to former users of Mt. Gox, the notorious cryptocurrency exchange that lost 850,000 Bitcoins in 2014, is set to begin in July 2024. According to a written note issued on June 24 by the exchange's rehabilitation trustee, repayments will be made in Bitcoin (BTC) and Bitcoin Cash (BCH).

"The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments," the announcement stated.

"We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information. Please wait for a while until the repayments are made," the trustee reiterated.

Mt. Gox owes more than $9.4 billion worth of Bitcoin to approximately 127,000 creditors. These creditors have been waiting for over a decade to recover their funds following the exchange's collapse in 2014 due to multiple unnoticed hacks.

In May, Mt. Gox's rehabilitation trustee, Nobuaki Kobayashi, confirmed that a significant transfer of 141,686 BTC, valued at $9.62 billion, to a new wallet labeled "1Jbez" was part of the repayment process. This transfer marked the first on-chain movement of funds from the collapsed exchange in over five years.

The rehabilitation process has been closely monitored by the cryptocurrency community, with many users anxiously awaiting the return of their lost assets. However, the news has spooked the crypto markets, with investors concerned about the potential selling pressure resulting from Mt Gox’s Bitcoin holdings. Bitcoin (BTC) fell over 7% following the news and broke below the key $60,000 level, although it has since recovered to trade at $61,324 currently.

TON Blockchain Faces Surge in Phishing Attacks Amid Rapid Growth: SlowMist

The Open Network (TON) is grappling with an increase in phishing attacks amid its explosive growth in 2024, according to Yu Xian, founder of the blockchain security firm SlowMist. Xian noted that the TON ecosystem, which includes a variety of decentralized applications (DApps) and tokens, has become a prime target for phishing attackers. "There are more and more phishing activities in the TON ecosystem," Xian wrote on X (formerly known as Twitter).

The vulnerabilities stem from the ease with which scammers can infiltrate message groups within the Telegram ecosystem, posting phishing links that deceive users into compromising their TON wallets. "The Telegram ecosystem is too free, and many phishing links — or bot forms — are spread through message groups, airdrops, and other deceptive methods to lure away users’ TON wallets in batches," Xian explained.

The surge in phishing activity correlates with the rapid expansion of the TON ecosystem in 2024. The native cryptocurrency Toncoin (TON) and the play-to-earn token Notcoin (NOT) have been significant drivers of this growth. Clicker games and tokens like Notcoin have gained immense popularity among Telegram users, contributing to the ecosystem's expansion.

As of now, the TON ecosystem has a combined market capitalization of $20.2 billion, according to CoinMarketCap data. TON has a market cap of $18.6 billion, making it the 8th most valuable cryptocurrency, while NOT is valued at $1.48 billion, despite only launching slightly over a month ago.

Solana Memecoin Dogwifhat (WIF) Drops Out of Top 50 Crypto Momentarily

Dogwifhat (WIF), a memecoin on the Solana blockchain, has fallen out of the top 50 cryptocurrencies by market capitalization after suffering a significant 38% price drop over the past week. Over the past week, the price of Dogwifhat decreased by as much as 43%, which saw the market cap reach a low of $1.52 billion. This decline allowed Fantom (FTM) to surpass WIF momentarily, as Fantom's market cap rose by 2.24% to $1.65 billion.

While some traders suggest that WIF has entered an accumulation zone, others disagree. "Many people are talking about how WIF is in their accumulation zone, but I just checked the chart, and it doesn’t seem like anyone is accumulating," remarked pseudonymous crypto trader Blockgraze in a June 23 post on X.

The sharp decline in Dogwifhat's value has also impacted futures trading. Open Interest (OI), which represents the total value of all unsettled Bitcoin futures contracts across exchanges, has dropped by 25% to $209.64 million over the same period, as reported by CoinGlass. If WIF rebounds by approximately 13% to its previous price of $1.81, it could potentially wipe out around $13.53 million in short positions.

Currently, Dogwifhat remains the fourth largest memecoin by market cap, trailing behind Pepe (PEPE), which boasts nearly three times Dogwifhat's market cap at $4.57 billion. At the time of writing, Dogwifhat is trading at $1.91, marking a remarkable 24% recovery over the past 24 hours. It has regained its top 50 ranking, flipping Fantom, according to CoinMarketCap data.

What’s Causing the Bitcoin Price Decline?

The market is all red once again.

Over the past week, Bitcoin has shed nearly $5,000 from its value, plummeting from a comfortable perch above $66,000 to hover around the $61,000 mark (at the time of writing). This sudden plunge has left investors and analysts confused.

This sharp decline coincided with a significant shift in market sentiment. The Crypto Fear and Greed Index fell from 60 to 49 in just 13 days, moving from "Greed" to the edge of "Neutral" territory.

The sudden price drop and sentiment shift have left many wondering about the underlying causes.

Several key events in crypto appear to have influenced this market movement.

Let's jumpt to the details of what's been happening in the Bitcoin market and explore the factors behind this recent plunge.

Reason #1: German Government's Bitcoin Sale

The crypto market experienced significant turbulence following news that the German government is preparing to liquidate a substantial Bitcoin holding.

The German Federal Criminal Police Office (BKA) held approximately 50,000 BTC, seized from a piracy site in 2013, now valued at over $3 billion.

This news, which came to light a few days ago, likely triggered Bitcoin's initial drop from $66,000 to $63,000 - as can be seen on CoinMarketCap.

The prospect of such a large amount of Bitcoin potentially entering the market has understandably caused concern among investors.

Reports suggest that the German authorities have already begun the process, selling around 3,000 BTC in recent days. However, the bulk of the holding—47,000 BTC—remains to be sold.

The government appears to be taking a measured approach to minimize market impact, but investor anxiety persists.

Reason #2: Big Players Hitting the Brakes

The second major factor behind Bitcoin's recent price slide involves the market's biggest fish – the "whales."

Here's what's happening: Whales have suddenly become much less active. Data from Santiment shows that big transactions (over $100,000) dropped by 42% in just a couple of days. That's a significant change in behavior.

So why does this matter? Well, when whales slow down their trading, it often signals caution. This whale behavior is especially interesting as it's happening right after a period of heavy selling.

What does this mean for the market? It could be that these large investors are waiting to see if prices will drop further before they start buying again. Or they might be holding off on selling more to avoid pushing prices down too quickly.

Either way, when the whales get quiet, it's often a sign that the market is at a crossroads. Their next moves could give us clues about where Bitcoin's price might head in the coming weeks.

Reason #3: Mt. Gox Returns With Repayments

The defunct exchange has resurfaced and shaken things up once again. More than a decade after its collapse, Mt. Gox has announced that it will begin repaying its creditors – and the news has sent ripples through the Bitcoin market.

Mt. Gox's Rehabilitation Trustee, Nobuaki Kobayashi, announced that repayments in Bitcoin and Bitcoin Cash will start in early July.

Why is this such a big deal?

Well, Mt. Gox was once the biggest exchange in crypto before its dramatic closure in 2014.

This isn't a small change we're talking about. The three Mt. Gox wallets combined hold 141,686 BTC, worth approximately $8.71 billion.

The fear is simple: as creditors finally get their hands on their long-lost Bitcoin, many might rush to cash out. This potential flood of Bitcoin hitting the market has investors on edge.

The impact was almost immediate. Bitcoin's price took a nosedive to $61,060, marking a 6.5% drop in just 24 hours. While it's since recovered slightly to around $61,300, the market remains jittery.

It's not just Bitcoin feeling the heat. Bitcoin Cash (BCH) also took a hit, dropping 9% in the wake of the announcement.

While the repayment process is set to begin soon, it's worth noting that it could stretch out over several months. The deadline for repayments was previously extended to October 2024, giving the market some breathing room.

Reason #4: Domino Effect

The recent Bitcoin price drop wasn't just about external factors. A significant internal market mechanism played a crucial role in amplifying the decline: cascading liquidations in the derivatives market.

Think of it as the crypto world's version of a domino effect, and it's been in full swing over the past 24 hours.

Here's what went down: As Bitcoin's price started to slip, it triggered a chain reaction in the derivatives market. According to data from Coinglass, $311.3 million worth of crypto positions were liquidated in just 24 hours.

Out of this $305.89 million, $275.75 million were long positions. In plain English, that means the vast majority of these liquidations hit traders who were betting on crypto’s price to go up.

This cascade of liquidations isn't the root cause of Bitcoin's price drop, but it certainly didn't help matters.

As the market navigates through these issues, it's clear that multiple factors are at play. The German government's Bitcoin movements, whale behavior shifts, Mt. Gox repayment plans, and cascading liquidations have all contributed to the recent price volatility.

While short-term fluctuations can be unsettling, they also provide valuable insights into market dynamics. As the dust settles, market participants will be keenly watching how these factors evolve and influence Bitcoin's trajectory in the coming weeks and months.