Golden Weekly is a weekly blockchain industry summary column launched by Golden Finance, covering the week's key news, mining information, project dynamics, technological progress and other industry dynamics. This article is one of the news weekly, taking you through this week's blockchain industry events.
Headlines
▌Biden's chances of winning the election hit a new record low at 9%
Prediction market Polymarket posted on the X platform that Biden's chances of winning hit a new record low of 9%. In contrast, Trump's chances of winning are 61%.
▌Bitcoin’s correlation with the S&P 500 has dropped sharply, which may indicate a potential bottom
Bitcoin’s (BTC) correlation with the S&P 500 (SPX) fell to 0.05, indicating market divergence. In the past five years, the two have been highly positively correlated during the epidemic and from the end of 2021 to 2022. In early 2024, both rose significantly. However, while SPX continues to hit new highs, BTC hovers around $60,000, occasionally falling below this level. Since 2019, BTC and SPX have experienced negative correlation four times, each time indicating local lows for Bitcoin prices.
▌US federal judge upholds “most” of SEC’s charges against Binance
Golden Finance reported that a U.S. federal judge upheld most of the SEC's charges against Binance, arguing that the company may have provided unregistered investment products in violation of anti-fraud regulations. The ruling considered most of the agency's arguments to be reasonable and rejected certain arguments raised by Binance, which were also rejected by other judges, such as the Major Questions Doctrine, which means that the SEC has no power to fully regulate the cryptocurrency industry. In addition, the court also found that Binance founder and former CEO CZ, who is currently serving a prison sentence, has been charged by the Department of Justice against Binance in another case, and given his control over Binance, he may be personally responsible for Binance's violations. However, the judge also rejected certain complaints related to some of the charges. Judge Amy Berman Jackson's ruling stated that the charges did not meet the Howey test standard. Judge Jackson also dismissed charges related to BNB secondary sales and Binance's simple earning project, but the charges against Binance's Earn Vault will continue. Of the 13 charges, only one charge (related to BUSD sales) was completely dismissed.
▌US SEC sues Silvergate Bank for securities fraud
The U.S. Securities and Exchange Commission (SEC) sued District Bank Silvergate in a federal court, alleging securities fraud.
▌Trump raised $331 million in the second quarter, surpassing Biden
Donald Trump raised $331 million in the second quarter, giving him more cash on hand than incumbent President Joe Biden, a development that could heighten anxiety among Democrats about the incumbent's reelection campaign. The amount raised by Trump and the Republican National Committee surpassed the $264 million raised by Biden and the Democratic National Committee in the second quarter. The Trump campaign said it now has nearly $285 million in cash on hand, compared with the $240 million reported by Biden, a stunning reversal after Biden's fundraising numbers crushed his opponent for months.
policy
Coinbase software engineer: If the Democratic Party wants to get enough votes, it must quickly change its attitude towards cryptocurrency
Coinbase senior software engineer yuga.eth posted on social media that as the Democratic Party falls into chaos, we are approaching the moment when cryptocurrency has the greatest political influence in the United States. Democrats have been misled by Elizabeth Warren and others to launch an unpopular and ineffective war on cryptocurrency, which will cause them to lose thousands of votes in key swing states. If the Democratic Party really wants to get enough votes to avoid a disastrous defeat in November, they must quickly and radically change their attitude towards cryptocurrency. They should immediately stop the law enforcement and regulatory strategy, improve and pass FIT 21 in a bipartisan manner, and revoke SAB 121. Instead, PACs that support cryptocurrencies should use this opportunity to put pressure on them by obtaining commitments from Democratic political leaders and policymakers to promote financial innovation in the United States.
▌Dragonfly Capital partner: The US SEC has made it clear that SOL is a security and will not abandon this decision
Hasseb Qureshi, partner at Dragonfly Capital, said that approval of the SOL ETF is unlikely to happen. He believes that VanEck's application for the SOL ETF may just be "buying goodwill" to lay the foundation for the development of similar products, because the U.S. Securities and Exchange Commission has made it clear that SOL is a security and the regulator will not give up this decision.
▌Chen Maobo: Hong Kong should speed up the cultivation of new industries and vigorously promote the development of artificial intelligence
Golden Finance reported that Hong Kong Financial Secretary Paul Chan Mo-po said Hong Kong must accelerate the cultivation of new industries and vigorously promote the development of artificial intelligence.
▌Silvergate will pay $63 million to settle with the U.S. SEC, Federal Reserve and California regulators
Silvergate Capital Corp., the parent company of crypto-friendly bank Silvergate Bank, has agreed to pay $63 million to reach a settlement with the U.S. SEC, the Federal Reserve and the California Department of Financial Protection and Innovation (DFPI).
The regulator accused it of failing to maintain an adequate anti-money laundering program and making misleading disclosures about the effectiveness of that program. It also accused Silvergate and its former CFO of misleading investors about expected losses from securities sales following the collapse of cryptocurrency exchange FTX.
Silvergate was fined $43 million by the Federal Reserve and $20 million by California regulators, who also cited deficiencies in the bank's tracking of internal transactions. The SEC also fined it $50 million, but is not expected to increase the total fine. The SEC said any fine owed by Silvergate could be offset by the amount it pays to bank regulators, and the settlement is subject to court approval.
▌The US SEC has confirmed receipt of the 19b-4 application for the Hashdex Nasdaq Crypto Index US ETF
Documents released on the X platform by Nate Geraci, president of The ETF Store, show that the U.S. SEC has confirmed receipt of the 19b-4 application for the Hashdex Nasdaq Crypto Index US ETF, which will hold both spot BTC and ETH.
▌US judge calls cryptocurrencies OHM and Klima “commodities” in Jafia LLC fraud case
The U.S. Commodity Futures Trading Commission (CFTC) announced today that Judge Mary Rowland of the U.S. District Court for the Northern District of Illinois issued an order for a summary judgment in the Jafia LLC fraud case. The judge ordered Sam Ikkurty of Oregon and his company Jafia LLC to pay more than $120 million in partial compensation to the victims of what the agency called a "Ponzi scheme."
Notably, Judge Rowland also stated that “not only does the order find that Bitcoin and Ethereum commodities fall under the jurisdiction of the CFTC, but that OHM and Klima, two virtual currencies, qualify as commodities,” noting that these virtual currencies fall into the same category as Bitcoin and involve regulated futures trading. OHM and Klima are both smaller cryptocurrencies than Bitcoin and Ethereum, but the determination of which assets are securities (subject to the jurisdiction of the U.S. Securities and Exchange Commission) or commodities (subject to the jurisdiction of the CFTC) has been controversial.
▌U.S. Congresswoman Cynthia Lummis: The United States will become a Bitcoin country
U.S. Senator Cynthia Lummis said the United States will become the nation of Bitcoin.
▌German MPs urge the German government to stop selling Bitcoin
German MP Joana Cotar strongly criticized the government’s decision to sell $195 million worth of Bitcoin, arguing that the move increased market volatility and could have a long-term negative impact on the stability of the cryptocurrency market. The Bitcoins came from an investigation into the illegal website Movie2k.to.
Cotar said on Twitter that the German government should reconsider this strategy and discuss Bitcoin as a strategic reserve currency in comparison with the United States. She invited officials to attend the "National Bitcoin Strategy" lecture on October 17, which will be presented by Bitcoin strategist Samson Mow to discuss how to use Bitcoin to enhance the national economy.
▌South Korea's FSS's new exchange monitoring system will promote market stability
South Korea’s Financial Supervisory Service (FSS) announced the launch of a new monitoring system aimed at strengthening supervision of cryptocurrency exchanges and preventing fraudulent transactions. According to the latest announcement, local exchanges will establish a continuous monitoring system and regularly report abnormal transactions to ensure that their legal obligations are fulfilled.
The move will be implemented simultaneously with the first cryptocurrency investor protection regulatory framework, the Virtual Asset User Protection Law, on July 19. At the same time, the Digital Asset Exchange Alliance (DAXA) and 20 local exchanges released the "Best Practice Guidelines for Supporting Digital Asset Transactions", which aims to provide a more relaxed review plan for assets that have been compliantly traded in overseas markets for more than two years.
These measures show South Korea’s proactive attitude towards cryptocurrency regulation, committed to improving market stability, protecting investors, and combating financial crime.
Blockchain Applications
▌Hong Kong Securities Industry: Hope to issue relevant derivatives for cryptocurrency spot ETFs and launch relevant leverage options
Golden Finance reported that the Hong Kong securities industry hopes to issue related derivatives for cryptocurrency spot ETFs. Since cryptocurrency spot ETFs have been officially listed, brokerages can apply to regulators to issue derivatives, such as launching related options with higher leverage, which will greatly enhance the attractiveness of Hong Kong's virtual asset market. It can be said that after the launch of cryptocurrency spot ETFs, it will not only attract investors who like to invest in physical cryptocurrencies, but also open up more development opportunities for brokerages. Xie Mingguang, a senior securities industry figure, pointed out that cryptocurrency spot ETFs have more confidence in Hong Kong's development prospects.
▌S&P Global Ratings joins Singapore's "Guardian Program" to promote digital transformation of financial markets
S&P Global Ratings announced that it has joined Singapore's "Guardian Program" to explore tokenization on public blockchains. The program is led by the Monetary Authority of Singapore (MAS) and brings together 18 financial institutions and regulators. S&P will focus on developing digital asset analysis frameworks and assessments in the fixed income sector. Several financial institutions are conducting fixed income-related trials, reflecting the push for digital transformation in financial markets.
▌Wuxi City's "Taihu Chain" blockchain technology platform realizes functions such as "one certificate for all"
Jinse Finance reported that Wuxi held the "Wuxi on the Chain" blockchain innovation and application results exhibition, which comprehensively demonstrated the positive results achieved by Wuxi in the process of creating a national blockchain innovation and application comprehensive pilot city in the past two years. The results of promoting the development of blockchain around the "Taihu Chain" are clear at a glance. The results exhibition covers key contents such as popular science knowledge, infrastructure, industrial development, social governance, public services, innovation ecology, and future prospects, and showcases representative application scenario cases involving more than 20 industries. The "Taihu Chain" management service platform is the core project in the national blockchain innovation and application pilot work. Its biggest highlight is the construction of a city-level blockchain technology public service capacity infrastructure platform, which effectively realizes the functions of "one certificate for all" and "one network for unified management" of electronic certificates, data lineage management, seamless supervision of state-owned assets, and full-process tracing of people-friendly funds.
Ethereum DApp transaction volume surges 83%, but is mainly driven by a single application
The Ethereum network’s decentralized application (DApp) transaction volume recently surged 83%, but 59.5% of it came from a single application, Balancer. Despite the overall increase in transaction volume, the number of active Ethereum users decreased by 8% and the total locked value (TVL) also decreased by 17.5%.
This growth is inconsistent with the trend of the rest of the crypto market, and excluding Balancer’s contribution, Ethereum’s transaction volume actually fell by 5%. This anomaly suggests that further analysis is needed to understand the real demand and potential manipulation behind the increase in transaction volume.
Web3 users hit a record high of 10 million in Q2
According to the latest report from blockchain analysis platform DappRadar, the number of daily active unique wallets (dUAW) for Web3 applications reached a record high of 10 million in the second quarter, an increase of 40% from the first quarter. The report pointed out that user growth in the social and blockchain gaming fields is particularly significant, and the non-fungible token (NFT) market transaction volume reached US$4 billion, but the total value locked (TVL) of decentralized financial applications (DeFi) But it dropped 4%. DappRadar warned that growth could be affected by temporary airdrop activity, stressing the importance of delivering a quality user experience and a robust development roadmap.
▌National Blockchain Center takes the lead in building a new model for sharing artificial intelligence corpus
On July 1, the reporter learned from the National Blockchain Center that recently, Xinhua News Agency National Key Laboratory, People's Daily Online, Chinese Academy of Sciences Documentation and Information Center, Beijing Radio and Television Station, Higher Education Press, Capital Library, Central Audiovisual Education Center Press, Wanfang Data, China National Knowledge Infrastructure and other key corpus data units announced that they would jointly establish a high-value corpus trusted and secure circulation ecosystem with the National Blockchain Technology Innovation Center. Using cutting-edge information technologies such as blockchain and privacy computing, large-scale model corpus resources across the country will form a sustainable and self-growing data supply ecosystem in the privacy and security protection and circulation value-added incentives, enabling the field of artificial intelligence large models to accelerate high-quality development.
▌Fantom’s third Sonic governance proposal passed
The Fantom Foundation announced on the X platform that the third Sonic governance proposal has been passed, involving ecosystem grants, a new token destruction mechanism, and innovative programs such as Sonic Spark and Sonic University. It is reported that over the next six years, the Sonic Foundation will allocate a portion of tokens as operating funds for Sonic Labs to manage dApps, BD partnerships, and the growing network growth between existing and new user communities.
Cryptocurrency
▌Even as Bitcoin fell, spot Bitcoin ETFs still received $790 million in net inflows in June
In June, spot Bitcoin ETFs received $790 million in net inflows even as the price of Bitcoin fell 7%. BlackRock’s iShares Bitcoin Trust (IBIT) continued to be the largest Bitcoin fund, with inflows of more than $1 billion, offsetting huge outflows from Grayscale Bitcoin Trust (GBTC). In contrast, spot funds as a whole saw massive outflows in April when the price of Bitcoin fell 15%.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted that baby boomers are holding more than expected. June's inflows benefited in part from expectations for spot Ethereum ETFs. Regulators and potential issuers are working to obtain approval, and it is expected that these ETFs may be listed this month, indicating that regulators are gradually accepting the cryptocurrency industry as part of the financial system.
▌13 of the top 25 US hedge funds already have exposure to Bitcoin ETFs
Data from investment firm River shows that as of the end of the first quarter of 2024, 13 of the top 25 hedge funds in the United States already have exposure to Bitcoin ETFs. Among them, the notable one is Millennium Management, which owns 27,263 BTC worth $1.69 billion, accounting for about 2.5% of its total assets under management (valued at $67.7 billion).
Other significant players include Schonfeld Strategic Advisors (holding 6,734 BTC) and Point72 Asset Management (holding 1,089 BTC). In contrast, some top hedge funds, such as Bridgewater Associates, AQR Capital Management, and Balyasny Asset Management, have not yet invested in a Bitcoin ETF.
▌Bloomberg ETF Analyst: Bitwise Submits Revised S-1 Form, Spot Ethereum ETF May Be Listed in the Near Future
Bloomberg ETF analyst James Seyffart wrote on the X platform that he saw Bitwise Invest submit another revised S-1 form for its Ethereum ETF, and more issuers are expected to submit the form during the rest of this week. We believe that the spot Ethereum ETF product may be listed later next week or during the week of July 15.
Another Bloomberg analyst, Eric Balchunas, commented: "No one really knows why the SEC is taking so long to process these forms, given that there are so few comments, the listing should be quick, but it may be that a 'problem' issuer slowed down the process, or it may just be summer laziness/people are on vacation, not sure. That being said, all signs point to the listing happening this month, with more details to be revealed next week."
▌DeFi tokens fell 10%-20% this week, with Pendle leading the decline
This week, the decentralized finance (DeFi) market experienced significant fluctuations, and Pendle’s governance token fell by 20%, attracting market attention. The market is volatile, so please exercise risk control.
The Pendle protocol’s locked asset value (TVL) dropped by $3 billion, with many users choosing to withdraw their funds after the June expiration rather than continue holding them. Tokens of major DeFi platforms such as Aave (AAVE) and Lido (LDO) also fell by 10%-15%.
In addition, a large investor transferred millions of dollars of tokens to Binance Exchange for sale, exacerbating market panic and liquidity changes. Mainstream cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) also performed poorly, further exacerbating the instability of the DeFi market.
▌Telegram CEO: Hamster Kombat will issue tokens on the TON blockchain
Telegram CEO Patel Du Rove posted on his personal channel that Hamster Kombat has become the latest Internet phenomenon, with 239 million people registered in just three months. This Telegram mini-app reached 100 million monthly active users in 73 days, with 4-5 million new users every day, making it the fastest growing digital service in the world. Hamster Kombat plans to issue its tokens on the TON blockchain to bring the advantages of blockchain to hundreds of millions of users.
▌The transfer volume of short-term Bitcoin holders has dropped significantly, indicating that the market is stable
Since the 2024 halving, short-term Bitcoin holders have made significantly fewer transfers to exchanges when they lose money, according to Glassnode data. This transfer volume peaked at 90,000 BTC in early 2024, but stabilized below 30,000 BTC after the April halving.
Historical data shows that short-term Bitcoin holders tend to increase transfer activity during major price declines, reflecting panic selling. This trend was particularly evident during the 2018 bear market and the March 2020 COVID-19 crash.
However, after the 2024 halving, the market showed greater stability and investor confidence, with fewer panic transfers. Still, it is important to monitor transfer volume, as its peaks often herald significant price moves and can be a potential indicator of changes in market sentiment.
9,708 ETH transferred from unknown wallet to Coinbase
Golden Finance reported that according to Whale Alert monitoring, at around 6:03 Beijing time, 9,708 ETH (US$33,177,383) was transferred from an unknown wallet to Coinbase.
Seven employees of the Paraguayan National Electricity Administration have been accused of being directly involved in setting up illegal Bitcoin mining farms
Golden Finance reported that employees of the Paraguayan National Electricity Administration (ANDE) were accused of being directly involved in setting up illegal Bitcoin mining farms in Paraguay. Seven engineers employed by the country's National Electricity Administration (ANDE) will be involved in organizing illegal connections to provide electricity to Bitcoin businesses in Paraguay. Felix Sosa, director of the National Electricity Administration, clarified that the agency's internal audit department is verifying and organizing investigations into the organization. All relevant information will be submitted to the National Prosecutor's Office for further investigation. However, Sosa said that employees of the National Electricity Company have not been responsible for the execution of electrical connections for some time, but have delegated this function to third-party contractors. ANDE has been fighting illegal Bitcoin mining connections since December and has cut off more than 70 farms that draw unmetered electricity directly from the grid.
▌A total of 4,336,609.06 ETH were destroyed on the Ethereum network
According to Ultrasound data, Golden Finance reported that as of now, the Ethereum network has destroyed a total of 4,336,609.06 ETH. Note: Since the introduction of EIP-1559 in the Ethereum London upgrade, the Ethereum network will dynamically adjust the BaseFee of each transaction based on transaction demand and block size, and this part of the fee will be directly burned.
Important economic developments
▌Strategist: Inflation and employment pave the way for the Fed to cut interest rates in September
Golden Finance reported that Seema Shah, chief global strategist at Principal Asset Management, said: "Friday's PCE data was in line with expectations, which was a relief, and the Fed certainly welcomed this. However, the policy path is still uncertain. Further deceleration in inflation, coupled with more evidence of a weakening job market, will pave the way for the first rate cut in September."
▌ECB Governing Council: The ECB may cut interest rates twice more this year
ECB board member Simkus said the assumption that the ECB will cut interest rates two more times in 2024 could prove correct if the economy develops as officials predict. "If the data develops as expected, the expectation of two more rate cuts this year is in line with my own thinking," he said in an interview. He said officials should be ready to act at any meeting, not just at the quarterly meetings where new economic forecasts are presented, and should be able to act if they agree at other meetings that a rate cut is necessary. He also said: "I think the case for a rate cut in July no longer exists."
▌ECB Governing Council member Stournaras: Two more rate cuts this year seem reasonable
ECB board member Stournaras said that two more rate cuts this year seemed reasonable; recent data strengthened the case for further rate cuts; even if there were two more rate cuts, the central bank's interest rate would still be at a restrictive level; service inflation should not be over-interpreted.
▌“Federal Reserve Megaphone”: Fed officials hinted that they are not in a hurry to cut interest rates
Nick Timiraos, the "Fed mouthpiece," said that as rising inflation has made Fed officials lack sufficient confidence in rate cuts, some policymakers called for close attention at last month's meeting for signs that the job market may be weakening faster than expected. The minutes of the Fed's June meeting showed that "several participants said that monetary policy should be ready to respond to unexpected economic weakness." Officials also cited several economic developments, including slower wage growth, reduced corporate pricing power, and increased consumer sensitivity to price increases, to support their expectations that inflation will continue to fall over the coming year. The minutes showed that officials were generally satisfied with their wait-and-see stance on interest rate changes and highlighted a range of views that could prompt the Fed to raise or lower interest rates. Combined with recent public statements by Fed officials, the minutes suggest that they are unlikely to cut interest rates at their meeting later this month.
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.
