Welcome to MelegaSwap's weekly crypto news recap, where we take you on a thrilling journey through the ever-evolving realm of digital currencies. This week, spanning from May 7th to 13th, 2023, brace yourself for an adrenaline-pumping rollercoaster ride filled with jaw-dropping volatility, courtesy of meme coins like PEPE and Milady.
However, Bitcoin (BTC) and the entire crypto market experienced wild swings, leaving even the most seasoned traders gripping their seats. BTC tumbled from over $29,000, plunging as low as around $26,000. But fear not, for Bitcoin is currently staging a fierce comeback, currently trading at $26,893. This marks a 6.7% drop over the past seven days.
Other top 10 altcoins, including Ethereum, Cardano, Ripple, and BNB, are also trading in the red on weekly charts.
In this week's developments, Bittrex's US division has shockingly filed for bankruptcy, while an ex-Coinbase executive has finally faced the music, receiving a two-year prison sentence for insider trading. Furthermore, brace yourselves for some meme mayhem: Pepe's (PEPE) meme coin market cap nosedived below $500 million during the week, leaving investors in disbelief.
But the twists and turns don't stop there! The House Financial Services Committee has boldly requested that the SEC withdraw its proposed rule, adding a dash of uncertainty to the regulatory landscape. And just when you thought you'd seen it all, another memecoin frenzy has unfolded: Milady skyrockets by a mind-boggling 5,250% following a tweet from none other than Elon Musk.
So fasten your seatbelts and prepare to be captivated as we guide you through the maze of the cryptocosmos. No more delays—let's plunge right in!
TOP 10 CRYPTO STORIES THIS WEEK (May 7–May 13, 2023)
● Bittrex US division declares bankruptcy
● Former Coinbase executive sentenced to two years in prison for insider trading
● PEPE meme coin's market cap drops below $700 million
● House of Representatives Financial Services Committee urges SEC to retract proposed rule
● Do Kwon might be released on €400,000 bail
● The memecoin frenzy continues: Milady experiences 5,250% surge post Elon Musk tweet
Bittrex US division declares bankruptcy
The US branch of cryptocurrency exchange Bittrex Inc. declared bankruptcy after being accused by the SEC of running an unregistered securities exchange. Bittrex's former CEO, William Shihara, allegedly advised token issuers to remove public opinions that could attract regulatory scrutiny.
Despite denying the allegations, Bittrex decided to stop operating in the US market and urged customers to withdraw funds. However, the company clarified on Twitter that the bankruptcy proceedings only pertain to its US division and not Bittrex Global.
Former Coinbase executive sentenced to two years in prison for insider trading
Former Coinbase product manager Ishan Wahi received a two-year prison sentence for insider trading. Wahi exploited his position, gaining access to private information on token listings to make profitable trades before the public had the chance.
Ramani and Nikhil Wahi, acquaintances of Ishan Wahi, the accused, reportedly made more than $1 million using anonymous wallets.
PEPE meme coin's market cap drops below $700 million
Meme coin Pepe's price dropped 60% in 5 days, losing its billion-dollar market cap. The price drop was likely caused by large-scale traders liquidating their holdings and targeting new retail investors. However, some whales have continued to buy Pepe at its low price point. The token is now up 15.67% in the last 24 hours with a market cap of over $700 million, but potential investors should be cautious, as the development team itself has called it "completely useless."
House of Representatives Financial Services Committee urges SEC to retract proposed rule
US House Financial Services Committee Chair Patrick McHenry and six subcommittee chairs expressed concerns in a letter to SEC Secretary Vanessa Countryman about the agency's advisory client custody rule.
Known as the registered investment adviser (RIA) rule, its implementation would impose stricter requirements on custodians of client assets, including art, cash, and nontraditional assets.
Coinbase, the Blockchain Association, and Andreessen Horowitz earlier provided negative feedback on the proposed regulation, which could harm the banking sector and applies to assets beyond the SEC's jurisdiction.
Do Kwon might be released on €400,000 bail
Do Kwon, the founder of Terraform Labs, the company behind the Terra stablecoin and Luna cryptocurrency, has pleaded not guilty to allegations of using a forged passport to travel to Montenegro.
During a hearing at the Basic Court of Podgorica, the capital of Montenegro, Kwon and Han Chang-Joon, the chief financial officer of Terraform Labs, both denied the charges of document forgery.
Following the proceedings, it was reported that the court had approved Kwon's proposed bail of €400,000. Consequently, he is expected to be released from custody prior to the trial.
However, the prosecutors expressed their objections to the court's decision, arguing that Kwon and Chang-Joon may have no intention of remaining in Montenegro until the scheduled court date.
The memecoin frenzy continues: Milady experiences 5,250% surge post Elon Musk tweet
On May 11, the memecoin Milady (LADYS) surged by over 5,250% after Elon Musk tweeted a meme featuring a Milady NFT. It reached a trading value of $0.0000001528 on CoinMarketCap. However, just like Pepe’s (PEPE) creators clarified on their official website, LADYS developers clarified that the memecoin has no connection to Milady creator Charlotte Fang or Milady Maker, nor does it have any financial purpose. It's simply a tribute to a beloved NFT collection, serving no practical purpose.
This is not the first time that Musk's tweets have had a significant impact on the cryptocurrency market. However, it's important to note that investing in meme coins can be highly volatile and risky and should be approached with caution.
