- A tumultuous week in the crypto market with a series of events including hacks, fake news, and the introduction of groundbreaking Bitcoin spot ETFs.
- The SEC's Twitter account was compromised by hackers who falsely announced the approval of an ETF, leading to significant fluctuations in Bitcoin's price.
- Despite the earlier chaos, the launch of Bitcoin spot ETFs was a success, resulting in substantial trading volumes and outperforming other Bitcoin ETFs.
- Coingecko experienced a Twitter hack similar to the SEC, putting users at risk of falling victim to a phishing scam.
- U.S. officials issued warnings about the increased use of AI for malicious activities such as hacking, scamming, and money laundering in the future.
Diving into the second week of January in the crypto space brought a mix of surprises, milestones, and security challenges. The week commenced with a shocking turn of events as the SEC's official Twitter account announced the approval of spot Bitcoin ETFs, causing a surge in Bitcoin prices. However, the excitement was short-lived when SEC Chair Gary Gensler revealed the tweet was a result of a hack, prompting concerns about the SEC's security protocols and its ability to safeguard sensitive information.
This incident raised questions about who watches over the regulators, prompting U.S. Senators to seek an explanation. Just a day after this turmoil, on January 10, 2024, the eagerly awaited spot Bitcoin ETFs were officially approved, marking a significant milestone for the crypto market. The ETF market went live on January 11, with an impressive combined trading volume of approximately $4.5 billion on the first day, outperforming Bitcoin futures ETFs.
In terms of return on investment (ROI), spot Bitcoin ETFs outshone both GBTC and Bitcoin futures ETFs, with an average return of 6.7%. Notably, the Grayscale Bitcoin Trust (GBTC) emerged as the best-performing spot Bitcoin ETF, followed by Blackrock's ETF and Fidelity's ETF.
The crypto sector faced another setback when Coingecko, a major crypto data aggregator, fell victim to a hacking spree on January 10, 2024. The attackers gained access to Coingecko's X account and terminal, posting a phishing link that led users to a fake website offering airdrop tokens for a supposed new crypto ($GCKO). This incident underscored the urgent need for enhanced crypto education, revealing that human errors, such as clicking on fraudulent links, can still pose significant security risks despite robust measures like two-factor authentication.
Meanwhile, at the International Conference on Cyber Security, U.S. officials raised concerns about the darker side of AI, emphasizing its potential role in cybercrimes such as hacking, scamming, and money laundering. They highlighted AI's ability to reduce the technical expertise required for such illicit activities, pointing to the rising threat of AI-based cyber attacks, particularly deepfakes.
As the crypto landscape navigates these challenges and milestones, it's crucial for participants to stay informed and exercise caution, given the volatile nature of cryptocurrencies. Voice of Crypto provides information with the aim of accuracy, but users are encouraged to conduct their own research and make informed financial decisions, considering the inherent risks associated with crypto assets.
