In the tumultuous final week of June, Ethereum exchange-traded products (ETPs) endured substantial financial turbulence, marking the largest net outflows since August 2022. Investors withdrew a notable $61 million from Ether investment products between June 24 and June 29.

This downturn accumulated to $119 million in outflows over the previous two weeks, culminating in a monthly total of $37 million extracted from Ethereum funds. Consequently, Ethereum funds have emerged as the worst-performing asset in terms of net flows year-to-date, with a total of $25 million pulled from these investments so far.

SEC Approval and Market Impact

Despite receiving a green light for Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in May, Ethereum’s market price fell by more than 8.7% over June.

Market analysts had been optimistic following the SEC’s approval, anticipating a positive shift in investor sentiment. However, the SEC’s recent directive for prospective issuers to resubmit their S-1 forms by July 8 has delayed the expected launch of these ETFs until mid-July or potentially later.

Financial firm Bitwise projects that these funds could attract as much as $25 billion by the end of 2025, indicating a long-term confidence in the asset class.

Source: CoinShares

Conversely, Bitcoin-related exchange-traded products witnessed an inflow of $10 million during the same period. This modest increase represents a significant turnaround from the prior staggering outflow of $630 million.

Following this recent performance, the total assets managed across all Bitcoin ETPs have climbed to a remarkable $67.57 billion.

Additionally, last week saw other digital assets registering inflows; multi-asset ETPs attracted $18 million, and there were notable inflows into altcoin-related ETPs, including Solana ($1.6 million), Litecoin ($1.4 million), Chainlink ($600,000), and XRP ($300,000).

The report from CoinShares also highlighted regional variations in investment flows. The United States, Brazil, and Australia experienced substantial inflows of $43 million, $7.6 million, and $2.9 million, respectively.

In stark contrast, negative sentiments plagued crypto investment products in Germany, Hong Kong, Canada, and Switzerland, which saw outflows of $29 million, $23 million, $14 million, and $13 million, respectively.

Bitcoin ETFs and Trading Volumes

Despite the overall $30 million in net outflows across digital asset investment products last week, Bitcoin ETFs showed signs of resilience. Most Bitcoin ETF providers reported minor net inflows, apart from Grayscale, whose Bitcoin fund experienced outflows totaling $153 million.

This contrasted sharply with the total $10 million inflow reported among other issuers, highlighting a partial recovery in investor confidence in Bitcoin-related products.

Trading volumes provided another perspective on the market’s dynamics, with a 43% increase week-on-week, totaling $6.2 billion globally as of June 29.

Although this figure represents a significant uptick, it still remains considerably below the $14.2 billion average weekly trading volume observed throughout the year.

Source: CoinShares

Among altcoins, funds associated with Solana and Litecoin continued to attract investors, with inflows of $1.6 million and $1.4 million, respectively.

This year has seen a considerable $545 million withdrawn from blockchain equities, which represents 19% of their market capitalization. However, CoinShares’ latest report suggests that there may be early signs of improving sentiment towards Bitcoin.

James Butterfill, the Head of Research at CoinShares, noted a “significant stemming” of the recent outflows, which could indicate a turning point in market sentiment.

Overall, while Ethereum-based ETPs have faced significant challenges, marking them as this year’s worst-performing assets in terms of net flows, the broader cryptocurrency investment landscape shows signs of nuanced shifts.

With Bitcoin experiencing a stabilization in outflows and some altcoins seeing renewed interest, the digital asset market continues to display a complex interplay of investor sentiment and regulatory developments.

The post Ether Investment Loses Steam: Largest Outflows in Two Years appeared first on Coinfomania.

Did you believe in Bitcoin in 2011? Well, few people figured it out early and invested their $100 in it then. 

Fast forward to now, their investment value is worth $2 million in June 2024. But the journey wasn’t easy as BTC is too volatile, and not liquidating funds was a risky deal. Here’s where there are upcoming new crypto coins with huge potential, and you would not have to wait so long for a significant ROI. Cryptocurrencies like 5thScape provide the same or rather a better potential. 

Besides, volatility doesn’t affect them much, and their coin scope is beyond trading. Therefore, they would turn your $1000 into $10,000 even before their proper launch on exchanges. 

5 Best Upcoming New Coins To Turn $1000 Into 10,000 

The following is the list of 5 best upcoming new crypto coins for 10x gains: 

5thScape (5SCAPE)

DarkLume (DLUME) 

BitBot (BITBOT)

Memereum (MEME) 

BlockDAG (BDAG) 

Despite being new, these best upcoming new crypto coins have a potential of 10x gains that would turn your $1000 into $10,000. We have analyzed each of these coins below! 

1. 5thScape (5SCAPE) 

How about VR integrating with blockchain for mutual benefits and its ability to yield 10x-100x gains? If yes, then 5thScape is a must for under your list. This cryptocurrency is in its presale phase and aims to raise $15 million! It is a profitable cryptocurrency whose token value will rise by 14%-15% in each phase. Therefore, your $1000 will become over $ 10,000 in its next presale round. 

>>Click Here To Visit 5thScape Presale Page 

Moreover, the coin’s current value is $0.00376, and after the listing, 5SCAPE’s value would be $0.1. If you invest in it now, then it will give you 600x gains by 2025. You can also invest in its staking program that would benefit you with 365% APY. 

When you play VR games on the platform, it will reward you with 5SCAPE tokens that are tradeable. The project is currently in its presale phases and has raised $6.7 million. If you buy it in June 2024, then the program will offer you amazing rewards and bonuses. The best part is that $1000 will give you lifetime access to its 3D VR games. 

2. DarkLume (DLUME) 

What if investing in one crypto would fulfill your luxury fantasies and simultaneously give you huge returns? If yes, then DarkLume is a cryptocurrency that provides you with both of them!

>>Click here to visit DarkLume VR

It has its Metaverse, which is a VR gaming environment that is changing how you interact with crypto. You can use it by buying DLUME tokens. These tokens are the main focus of DarkLume VR and will grant you citizenship in one of its countries. 

You can play games, rest, socialize, date, visit clubs, and do lots more. Each of these activities will reward you with crypto coins. Besides, the token is currently in its presale phase, and its value would increase by a minimum of 7% in each round, as per the whitepaper. Yet, it has exceeded expectations by showing a price appreciation of more than 12%. 

3. BitBot (BITBOT) 

What if a crypto presale provides automated trading strategies and analysis and sharpens your skills? 

If yes, then BitBot is a must-check under your list! 

AI is helping every sector to progress, and crypto is no different. BitBot has various tools that beginner and even crypto whales can use to boost their trading strategies. These give you AI-driven insights, and now more people are adopting it. Therefore, it will provide a lucrative staking program and greater adoption. 

You can thus remain competitive with your investments and trade well in the dense world of investors. 

4. Memereum (MEME) 

Do you wish to invest in an upcoming crypto revolutionizing the insurance sector? 

If yes, then Memereum is a must-check under your list that works on the BSC. 

Though it sounds like a trickle meme coin, it’s not. Memereum also has a utility instead of attracting users for a short time with memes. 

You can join its staking program as well, which gives users a 183% APY, so it attracted many investors. This Decentralized Exchange also has insurance that lets you trade without much risk. Besides, it even gives you a presale program where referrals would give you 5% profits in MEME coin by sharing your link, provided you are an investor. 

5. BlockDAG (BDAG)

What if you invest in an upcoming crypto that claims to provide the fastest transactions and excellent security? 

If yes, then BlockDAG is a must-check under your list! 

BlockDAG provides the fastest and most secure blockchain with a proof-of-work consensus mechanism. The hybrid consensus has a new-age DAG acyclic structure. It adds plenty of blocks in the blockchain together, which provides speedy transactions without affecting its security and decentralization. Its infrastructure is such that BlockDAG is not prone to hashing attacks. 

Moreover, it is scalable and energy-efficient. This is because it needs less mining power than BTC. 

Concluding Thoughts 

We have covered the upcoming new crypto coins that have legitimate potential. Besides, if you identify it early, you won’t leave the chance to make more profits. 5thScape is the best upcoming cryptocurrency that will give you 100x-1000x gains. The project is in its presale phase at $0.0376, and its token value would increase by 14x-15x in the next presale phase, so investing $100 would return you more than $1000. 

Similarly, DarkLume provides a profitable potential and is gaining more attention in the crypto community as it gives luxury and profits simultaneously. So, what stops you? Invest your $100 in such projects now!

The post 5 Upcoming New Crypto Coins: How $1000 Can Grow to $10,000 appeared first on Coinfomania.

Robinhood, a prominent player in the cryptocurrency market, has recently expanded its portfolio by acquiring Pluto, an innovative AI-driven investing copilot.

This acquisition is set to enhance Robinhood’s service offerings by integrating advanced artificial intelligence tools designed to empower retail investors with data-driven investment insights.

Praise for Pluto’s Capabilities

Mayank Agarwal, Vice President of Engineering at Robinhood, praised Pluto’s capabilities in a recent press release, noting the platform’s high regard within the financial services sector.

Agarwal emphasized that Pluto’s artificial intelligence expertise and its mission to democratize finance perfectly align with Robinhood’s goals.

“Their expertise in artificial intelligence coupled with a mission-aligned passion to democratize finance will complement our team’s effort to bring AI-powered tools to our customers,” he stated.

Source: Robinhood

Although the financial terms of the acquisition remain undisclosed, industry analysts suggest that this deal could significantly bolster Robinhood’s competitive position in the market.

The integration of Pluto’s sophisticated AI capabilities is anticipated to attract a broader spectrum of investors looking for advanced investment tools. Under the leadership of CEO Jacob Sansbury, Pluto has distinguished itself through its pioneering AI technology.

Sansbury expressed his enthusiasm for the merger, highlighting Robinhood as the optimal platform for advancing access to financial services through leading-edge AI. “I look forward to innovating at the company which has inspired me and so many others,” said Sansbury.

He underscored Pluto’s commitment to enhancing retail investor empowerment with access to a broad array of real-time data, including news articles, stock prices, company financials, reports, and even SEC filings, all aimed at facilitating informed investment decisions.

Strategic Move to Democratize Financial Services

Robinhood’s acquisition of Pluto underscores its commitment to democratizing financial services by providing personalized and intelligent investment advice.

This strategic move is expected to deepen user engagement and loyalty through enhanced investment insights that cater to individual financial goals.

Furthermore, the integration of Pluto’s advanced AI tools marks a significant enhancement in Robinhood’s ability to provide detailed data analytics.

Pluto’s use of cutting-edge large language models (LLMs) that process and interpret market data efficiently allows the platform to swiftly identify emerging trends and lucrative investment opportunities.

This capability ensures that Robinhood users gain a competitive edge by accessing highly tailored investment strategies based on their risk appetite, investment objectives, and past financial behaviors.

Real-Time Updates and Portfolio Optimization

Additionally, Robinhood customers will benefit from real-time updates and actionable insights that support swift and confident investment decision-making.

Pluto’s AI-driven analysis continually optimizes customer portfolios, striking an ideal balance between growth potential and risk mitigation, tailored to individual preferences.

Robinhood has been at the forefront of financial innovation, particularly with its zero-commission trading model. The addition of Pluto’s AI tools is seen as a strategic move to enhance its service offerings, likely attracting a wider range of investors seeking sophisticated tools.

Robinhood Markets, Inc. is officially acquiring Pluto Capital, Inc. An artificial intelligence (AI) powered investment research platform, that delivers highly-customized investment strategies based on customer needs and financial goals. https://t.co/PPaDkbX2q0 pic.twitter.com/ie8ZGfP7ZW

— Robinhood (@RobinhoodApp) July 1, 2024

This merger not only signifies Robinhood’s ongoing innovation in financial technology but also highlights its role as a leader in the movement towards more accessible financial services.

By harnessing Pluto’s AI advancements, Robinhood aims to transform the landscape of retail investing, making it more inclusive and empowering for investors of all levels.

Robinhood’s acquisition of Pluto is a testament to its commitment to leveraging advanced technology to democratize financial services.

By integrating Pluto’s AI-driven tools, Robinhood is poised to offer more personalized and intelligent investment solutions, fostering greater engagement and loyalty among its users. This strategic move enhances Robinhood’s competitive edge and reaffirms its position as a pioneer in financial innovation.

The post Robinhood Now Offers AI-Powered Investing with Pluto Acquisition appeared first on Coinfomania.

Ethereum, the second-largest cryptocurrency by market capitalization, recently experienced a price surge of 3.2%, a significant uptick that has put market watchers and investors on ‘red’ alert.

This price rally was primarily driven by the extensive liquidation of derivative traders’ positions. 

ETH price surges 3.2% in 24 hours, driven by $20.4M worth of ETH shorts liquidation. Eyes are on the pending approval of US spot Ethereum ETFs, with trading expected in mid-July. Crypto market cap nears $2.5T. #Ethereum #ETFs #CryptoCap @decryptmedia

— Sharpe Signals (@SharpeSignals) July 1, 2024

The Price Rally

Ethereum, a major player in the smart contract and decentralized applications (dApps) space, witnessed a 3.2% price increase over the last day. During this upward trend, ETH reached an intraday peak of $3,514 before settling at $3,488. What’s driving this rally? The answer lies in the extensive liquidation of derivative traders’ short positions.

Understanding Derivative Liquidation

Derivatives are financial contracts that derive their value from an underlying asset—in this case, Ethereum. Short positions are derivative contracts that speculate on an asset’s price decline. When the market moves against these short positions, traders face liquidation. In contrast, long positions bet on the asset’s appreciation.

According to a derivatives analytics platform, the $20.4 million worth of Ethereum shorts liquidated far outweighs the $1.87 million in long positions liquidated during the same period. This imbalance between short and long liquidations is a clear indicator of the bullish sentiment surrounding Ethereum.

Spot Ethereum ETFs on the Horizon

Market attention isn’t solely on liquidations. Investors are eagerly awaiting the potential approval of U.S. spot Ethereum exchange-traded funds (ETFs). An ETF, or exchange-traded fund, is a type of investment fund and exchange-traded product that tracks the performance of a specific asset or group of assets. 

Eric Balchunas, a Senior ETF Analyst at Bloomberg, noted that the U.S. Securities and Exchange Commission (SEC) has requested revised ETF filings to be submitted by July 8, hinting at a mid-July trading launch. Previously, projections pointed to approval by July 2, but the timeline has shifted.

Unfort think we gonna have to push back our over/under till after holiday. Sounds like SEC took extra time to get back to ppl this wk (altho again very light tweaks) and from what I hear next wk is dead bc holiday = July 8th the process resumes and soon after that they’ll launch… https://t.co/0ZQR7yiBLt

— Eric Balchunas (@EricBalchunas) June 28, 2024

SEC Chair Gary Gensler has expressed confidence in the approval process, emphasizing a summer launch. Some ETF issuers, including VanEck and Franklin Templeton, have introduced fee waivers for their spot Ethereum funds to attract institutional investors.

Widespread Crypto Gains

Ethereum isn’t the only cryptocurrency experiencing positive momentum. Recent data from Coingecko shows that the total market capitalization of cryptocurrencies has risen by 3.6% within the past day, nearing the $2.5 trillion mark. This surge is fueled by the liquidation of $81 million worth of short positions across various digital assets, offset by $17 million in long liquidations.

While the crypto market is notorious for its volatility, Ethereum’s recent surge owes much to the short liquidations, and all eyes are on the potential ETF approvals. These recent developments around Ethereum paint a promising picture.

The post Ethereum Surges Amid $20 Million Short Liquidations appeared first on Coinfomania.

Tether, the issuer of the USDT stablecoin, has unveiled a significant partnership with UQUID, marking a strategic advancement in the application of stablecoins in everyday transactions.

This collaboration focuses on integrating USDT payments into the Philippine Social Security System (SSS), enabling Filipinos to use the TON blockchain to manage their SSS contributions.

Announcement and Objectives

This integration represents a critical development in the adoption of stablecoins for public services and underscores Tether’s commitment to expanding the utility of USDT globally.

The announcement of this partnership was made on the X platform, where Tether outlined the new feature allowing users in the Philippines to make their social security contributions using digital currency.

Source: Uquid

This initiative aims to simplify and enhance the efficiency of payment processes, leveraging the speed and security that the TON blockchain is known for. UQUID, a company that operates with a decentralized business infrastructure, is instrumental in this integration.

Their involvement ensures the technology backing this service is robust, promising a seamless and user-friendly experience for Filipinos in managing their SSS payments.

In addition to facilitating payments for social security, the partnership between Tether and UQUID extends to the realm of digital commerce. Together, they have introduced the “1 USDT” store, an innovative project that showcases the practical use of stablecoins in retail.

This venture aims to demonstrate how stablecoins can facilitate everyday purchases, thereby enhancing the practicality and accessibility of digital currencies in online shopping. This initiative aligns with UQUID’s commitment to advancing the infrastructure for Web3 shopping experiences.

Since its inception in 2016, UQUID has been at the forefront of leveraging blockchain technology and decentralized finance (DeFi) to offer secure and transparent shopping experiences.

By incorporating USDT into its payment systems, UQUID addresses several challenges associated with traditional Web 2.0 e-commerce platforms, paving the way for a smoother and more efficient Web3 shopping environment.

The CEO of UQUID highlighted the significance of this initiative with Tether, stating that it establishes a new benchmark for convenience and accessibility in the realm of digital commerce.

The Evolving Role of Stablecoins

The integration of USDT into the payment system not only enhances the user experience but also demonstrates the evolving role of stablecoins in everyday financial activities. As the use of cryptocurrencies gains mainstream traction, stablecoins like USDT are playing a pivotal role.

Originally developed as tools for easing transactions on centralized exchanges, stablecoins have now become key liquidity providers in both centralized and decentralized markets.

This growing prominence of stablecoins is also evident in other significant developments in the financial sector. Mainstream payment platforms such as PayPal have introduced their native stablecoins, like the PayPal USD (PYU), reflecting the increasing acceptance and utility of these digital currencies.

Additionally, Ripple’s announcement of its plans to launch its own stablecoin in early 2025 further underscores the expanding market for these financial instruments.

Stablecoins are increasingly being utilized for cross-border payments at an institutional level, highlighting their importance in the global financial ecosystem. The partnership between Tether and UQUID is part of a broader strategy to enhance the practical applications of USDT.

USDC, USDT, PYUSD, USDP: Stablecoin Transaction Volumes. Source: Visa.

By leveraging blockchain technologies such as the TON blockchain, this collaboration offers an efficient alternative to traditional payment methods. This is particularly relevant in regions where digital payment infrastructures are still evolving.

The ability to pay for government services like social security contributions through stablecoins not only streamlines the process but also promotes financial inclusion.

Moreover, the “1 USDT” store initiative serves as a practical demonstration of how digital currencies can be seamlessly integrated into daily transactions, further promoting the use of blockchain technology in enhancing the efficiency of financial services.

The post Philippines Now Allows USDT Payments for Social Security appeared first on Coinfomania.

Unearth the exciting era of play-to-earn gaming (P2E), where blockchain tech and cryptocurrencies intertwine to reshape the modern gaming experience. In a crypto gaming world, players come together to engage in thrill-packed virtual adventures, not just for fun but also to gross real-world value through digital assets and currencies. 5thScape is a rising star in the crypto VR gaming industry. Gaming cryptos are securely recorded on base blockchain layers for transparency and facilitate seamless transactions for in-game reserves. 

Crypto gaming allures both traders and gamers, offering the excitement of gameplay alongside the potential opportunity for financial gains. NFTs play a major role to enhance digital ownership of gaming assets within the ecosystem. The landscape of crypto gaming is rapidly evolving to a space where avatars (characters), real estate, and awards make earning fun.

What Are Gaming Tokens?

Gaming tokens are cryptos that can be used to trade in-game items and services. You can play virtual games and earn tokens as points within the game and redeem it for actual cash. For instance, you’re in the virtual ring in a Cage Contest battle within 5thScape’s VR ecosystem. As the game progresses you are awarded points as 5SCAPE tokens. These tokens can be used to purchase in-game upgrades or exchange them for real-world currencies.

6 Best Gaming Crypto Coins To Maximize Profits

Are you ready to invest your time and money to become a part of the transforming crypto gaming arena? Have a look at the six best gaming crypto coins primed to dominate the digital industry in 2024.

5thScape (5SCAPE)

DarkLume (DLUME)

Axie Infinity (AXS)

Enjin Coin (ENJ)

Immutable X (IMX)

Illuvium (ILV)

Fun Meets Profitability: Review Of The Best Gaming Crypto Coins

Numerous gaming cryptos are known for their intensive and immersive gameplays. Let’s analyze the best candidates to be a part of your portfolio in 2024.

1. 5thScape (5SCAPE)

The VR/AR gaming project, 5thScape, is swiftly advancing through its presale phase garnering more than $6.7 million for developing its core ecosystem. 5thScape emerges as a dark horse contender in the crypto gaming race and is poised to win the race. The team is concentrating on its promotional marketing and gameplay development to attract maximum investors and gamers globally. Let us look at the key features of 5thScape.

Try 5thScape Now>>

Key Features:

5SCAPE, a native token used for all in-game transactions, rewards and purchases

Decentralized blockchain operation ensuring secure and transparent network

Balanced economic model to enhance gameplay and earning potential

Strategic tokenomics that allure investors

Strong player community to create an active and thriving player base

2. DarkLume (DLUME)

What activities DLUME token holders can enjoy in its heightened, luxurious metaverse? Gaming of course! Beyond crypto gaming, DarkLume’s metaverse offers a plethora of engaging activities that you might never have dreamt of. DLUME is the gaming token responsible for all transactions in the DarkLume’s virtual realm. 

Try DarkLume VR Now>>

Token holders can explore virtual countries and get citizenship within the virtual world. They can also enjoy nightlife and virtual clubbing in the digital space. Building long-lasting relationships and romantic intimacies is also virtually possible here. Wow, that’s so cool. But there is more to it. All these activities incentivize you with DLUME tokens. So, will you invest in this exciting and surreal adventure?

3. Axie Infinity (AXS)

One of the established coins, AXS, in the play-to-earn (P2E) gaming sector has captivated investor interest since long. Its pioneering gameplay model and innovative tech engages a huge community thereby pushing its value to the next notch. Axie Infinity enables players to breed and battle digital creatures called Axies that can be bought and sold on the gaming platform. These NFTs can be exchanged for real-world income through active participation in the gameplay. AXS has greatly contributed to the popularity of crypto gaming in the blockchain industry. With more than a million active players, this gaming cryptocurrency has emerges as the leader of NFTs and gaming tokens to date.

4. Enjin Coin (ENJ)

Developers and gamers are attracted to Enjin Coin’s platform owing to its ability to manage gaming assets within the ecosystem. The tools and services provided on the blockchain, bridge the gap between blockchain and gaming techs to create thrilling and secure games on the platform. Investors can earn passive income from its play-to-earn gaming models. Currently priced at $0.19311, ENJ makes a potential candidate for the best gaming crypto coins in 2024.

5. Immutable X (IMX)

Immutable X is a next-gen Web3 game with unmatched scaling solutions to provide cost-effective and efficient ways to harness Ethereum’s network to build a path to financial prosperity. Players can mint carbon-neutral NFTs with Immutable X. The platform’s global order book instantly circulates your asset creations to every decentralized marketplace under its network. Creativity and innovation collide to form an uncharted world of immersive gaming with Immutable X. Play and reshape the future of Web3 crypto gaming.

6. Illuvium (ILV)

Similar to Axie Infinity, Illuvium is a creature-based NFT creating game that blends role-play mechanics and blockchain to ensure true ownership of assets within the ecosystem. The platform offers players worldwide a chance to earn massive rewards through their battling gameplays. Illuvium is making a mark on the gaming world with its presale raising over $5 million in just 24 hours. Early investors reap maximum profits in such compelling projects.

5thScape (5SCAPE): The Future Of Digital Earnings

The future of gaming is intertwined with the blockchain industry. This convergence has the potential to unlock an empire of exciting opportunities for players and crypto investors. The six best gaming crypto coins are just a glimpse into the vast possibilities that this niche holds. These coins are a gateway to a rewarding and immersive gaming experience you may have never seen with traditional video games. Transform the way we play and interact in virtual environments with 5thScape and other gaming cryptos. 

Join in the revolution and get your hands on 5SCAPE tokens – a doorway to extreme fun and profits in the digital age.

The post 6 Best Gaming Crypto Coins To Earn Passive Income In 2024: Maximizing Fun And Profits appeared first on Coinfomania.

Circle has achieved a significant milestone by becoming the first global stablecoin issuer to secure an Electronic Money Institution (EMI) license, a crucial step for offering dollar- and euro-pegged crypto tokens within the European Union.

This development positions the company favorably under the new Markets in Crypto Assets (MiCA) regulatory framework. The license enables Circle to lead in the stablecoin market across the 27-country trading bloc, home to approximately 450 million people.

Significance of Stablecoins

The significance of stablecoins as critical infrastructure in the digital asset market cannot be understated. They facilitate trading on cryptocurrency exchanges and are increasingly used for transactions and remittances.

Circle’s stablecoin, USDC, which has a market value of $32 billion, remains the second-largest globally, trailing behind Tether’s USDT, which boasts a market cap of $110 billion.

The gap between USDC and the market leader has been expanding, underscoring the competitive landscape in this sector.

Following the acquisition of its EMI license, Circle Mint France, under the oversight of the French banking regulatory authority, announced plans to “onshore” the issuance of its euro-denominated EURC stablecoin within the EU.

Circle CEO Jeremy Allaire on Securing First EU Stablecoin License under MiCA

Additionally, it will begin issuing USDC from the same entity. This strategic move comes as the MiCA stablecoin regulations took effect on June 30, a change that led some cryptocurrency exchanges to delist euro-denominated stablecoins like Tether’s EURT ahead of the enforcement date.

The genesis of the MiCA framework was partly spurred by the potential entry of major tech corporations, such as Meta’s Diem (formerly known as Libra), into the financial markets.

This possibility drove five years of dedicated policy development in Europe. Dante Disparte, Circle’s head of policy and a former participant in the Libra project, expressed a personal connection to the MiCA regulations.

“MiCA is both a vindication of the industry’s permanence and a clear statement that there are no more shortcuts in operating within the third-largest economy in the world,” Disparte noted in an interview.

He emphasized the end of an era where companies could operate in regulatory havens or behind a veil of secrecy while still accessing broad market and consumer bases.

Last year, EU regulators enacted the world’s first comprehensive cryptocurrency law, which outlines measures to ensure investor protections and the integrity of platforms against manipulation.

Known as MiCA, the law officially took effect in May 2023. It was only last week that specific provisions targeting stablecoins were finalized. These rules are particularly strict, setting limits on the trading volumes for non-euro-denominated stablecoins that are used as a means of exchange.

MiCA Regulations and Thresholds

According to the newly adopted regulations, companies are required to halt the issuance of such stablecoins if they exceed a daily threshold of either 1 million transactions or a value of more than 200 million euros ($215.2 million).

This stipulation, detailed in Article 23 of MiCA, reflects the stringent controls the EU intends to enforce on the cryptocurrency market.

As a registered EMI in France, Circle is now positioned to extend its services, including the capability to mint and redeem USDC through Circle Mint, not only in France but across the entire European Union.

MiCA regulatory framework. Source: European Union

MiCA allows crypto businesses to offer their services in one EU country and then expand these services to other member states, a process often referred to as “passporting.”

The remaining regulations under MiCA, which pertain to crypto asset service providers, are set to come into effect by December 30, 2024. Crypto companies will then have until July 2026 to fully comply with the MiCA standards.

Launched in September 2018 by Circle and cryptocurrency exchange Coinbase, USDC is now the world’s second-largest stablecoin, with $32.4 billion in circulation as reported by CoinGecko, standing just behind Tether’s leading USDT, which has $112.7 billion in circulation.

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In a strategic maneuver on Monday, July 1, multiple reports indicate that the German government has transferred an additional substantial sum of $94 million worth of Bitcoin to various cryptocurrency exchanges. This move, part of a broader trend of state actors participating in the digital asset market, comes on the heels of similar actions taken by the U.S. government, signaling a potential intention to sell their crypto assets. This transfer has triggered discussions and speculations in the crypto space.

The German Government transferred 1,500 $BTC($94.7M) out again in the past 20 minutes, of which 400 $BTC($25.3M) was transferred to #Bitstamp, #Coinbase and #Kraken.German Government currently holds 44,692 $BTC($2.82B). pic.twitter.com/aGYXimO4fP

— Jesse Trading (@TradeWithJesse) July 1, 2024

The Whale Movements 

Details of the German Government’s Bitcoin Transfer

According to data from blockchain analytics firm Arkham, the German government moved 1,500 Bitcoin, equivalent to $94 million, to several addresses, including those at Coinbase, Bitstamp, and Kraken. This move is not an isolated event but follows a trend of similar transactions by the German and U.S. governments in recent weeks.

The transactions have been interpreted as signals that the governments intend to sell their crypto assets. The German authorities sent 600 BTC and 500 BTC to an unknown address in two transactions while moving 200 BTC to an address at Bitstamp, 100 BTC to a Coinbase address, and 100 BTC to a Kraken address. 

This move reflects the German government’s growing involvement in the crypto space. Currently, they hold approximately 44,692 Bitcoin, valued at around $2.81 billion. Notably, Germany is among the largest known state holders of Bitcoin, trailing only the United States, China, the UK, and Ukraine.

In the crypto industry, such large-scale transactions are often referred to as ‘whale movements.’ These movements can significantly impact the market, causing price fluctuations and influencing trading behavior.

U.S. Government’s Involvement

Coincidentally, wallets associated with the U.S. government also made notable crypto transactions, sending 3,375 Ether, or about $11.75 million, to an unknown address. Arkham data reveals these transactions were made from an address holding assets seized from Estonian entrepreneurs Sergei Potapenko and Ivan Turõgin.

Currently, the hot wallets thought to be associated with the U.S. government hold about 213,534 BTC, worth $13.42 billion, and possess about 50,524 Ether, worth approximately $175.9 million. 

Based on the Bitcoin Treasuries’ report, these two countries are among the largest known state holders of Bitcoin. The U.S. tops the chart, followed by China, the UK, Germany, and Ukraine.

The ‘Likely’ Outcome of These Government Transactions on the Crypto Market

When governments move substantial amounts of cryptocurrencies like BTC or ETH, it often signals their intent to sell these assets. This can lead to speculation and uncertainty in the market, potentially causing price volatility.

These transactions can also affect the liquidity of the market. Large-scale sales of cryptocurrencies can increase the supply in the market, potentially leading to a decrease in prices. On the other hand, if these cryptocurrencies are held and not sold, it could reduce the supply, possibly leading to an increase in price dynamics.

Data from CoinMarketCap shows that at the time of writing, BTC’s price climbed 2.17% in the past 24 hours, reaching approximately $62,574, while Ether gained 2.68% to trade at $3,433. These price movements indicate that market participants are paying attention to government activity.

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In a ‘path-finding’ move — one that marks a significant milestone for corporations looking to embrace the crypto revolution — Abra, a platform specializing in digital asset services and wealth management, has unveiled a new offering. This service, known as ‘Abra Treasury’, is tailored for corporations wishing to include cryptocurrency in their balance sheets as a reserve asset.

JUST IN Abra rolls out a new Treasury Service for businesses, family offices, and nonprofits to manage their cryptocurrency holdings efficiently. #Crypto #TreasuryManagement #DigitalAssets

— THΞ FΞNNΞC (@FennecSpirit) July 1, 2024

The Services Offered by Abra Treasury

Abra Treasury is managed by Abra Capital Management, an investment advisor registered with the SEC. The service merges custody (the secure storage of digital assets), trading (the exchange of cryptocurrencies), borrowing (securing loans against crypto holdings), and yield services (earning interest on crypto assets). This comprehensive service allows clients to securely store their cryptocurrencies in individually managed accounts, ensuring they maintain ownership and control over their digital assets.

Rising Trend of Bitcoin as a Reserve Asset

The current volatile macroeconomic climate, marked by rising inflation and geopolitical unrest, has led some corporate treasurers to consider adding bitcoin (BTC) to their reserve assets. MicroStrategy (MSTR), a software firm listed on Nasdaq and led by Michael Saylor, is the largest corporate holder of BTC, with a total of 226,331 tokens.

Interest of Non-Crypto-Native Businesses in Bitcoin

Marissa Kim, the head of asset management at Abra Capital Management, highlighted the growing trend of non-crypto-native businesses expressing interest in using Bitcoin as a treasury reserve asset. “We are increasingly seeing clients that are business owners and CEOs of small to medium-sized businesses (SMBs), particularly real estate companies, with interest in buying BTC for their treasury or borrowing against BTC to finance business needs or real estate projects, which we did not see last cycle,” Kim said.

Abra’s Settlement with Financial Regulators

However, Abra’s journey hasn’t been without its challenges. The company and its founder and CEO, William “Bill” Barhydt, recently reached a settlement for a fine with 25 state financial regulators, a press release from the Conference of State Bank Supervisors (CSBS) stated. As part of the settlement agreement, Abra will return up to $82.1 million in crypto to U.S. customers in the settling states.

Other Companies Exploring Crypto Treasury Services

Interestingly, Abra is not alone in this daunting quest. In addition to Abra, several other companies are exploring crypto treasury services, recognizing the potential of digital assets as a reserve. 

Notable firms like MicroStrategy and Tesla have already made headlines with their significant Bitcoin purchases. Goldman Sachs, the multinational investment bank and financial services company, is not left out, as it now offers investment in underlying and derivatives markets for cryptocurrencies.

Finally, there is Genesis Trading, a prime brokerage for digital assets, which is seeing increased global interest by corporate treasurers across all its products and services. And the list goes on…

These companies are leading the charge in the new digital economy, accelerating the process of corporate investment in digital assets. As the crypto and banking worlds continue to blossom, they need to be ready to service these newfound needs.

As the old saying goes, “fortune favors the brave,” and Abra’s brave move could well be a turning point in how the corporate world views crypto assets.

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Japanese publicly traded company, Metaplanet has begun its Bitcoin buying spree as it purchases 200 million worth of BTC today, July 1. The investment company buys into Bitcoin at a time when the price of the asset is undergoing a notable price uptick.

According to data from CoinMarketCap, the value of Bitcoin has jumped by almost 3% in the last 24 hours, trading above the $63,000 mark. Consequently, the entire crypto market cap has spiked by 2.13% to $2.32 trillion. Metaplanet joins other global large firms like Microstrategy in adding a significant amount of Bitcoin to its portfolio. The diversification into the crypto market is part of its broader strategy to hedge against economic uncertainties.

Metaplanet Buys 20 BTC

In a July 1 post on X (formerly Twitter), Metaplanet disclosed that it has purchased exactly 20.195 BTC at an aggregated amount of 200 million yen ($1.24 million). The company noted that it purchased this much Bitcoin at an average price of 9,903,441 yen ($61,492).

Recall that on June 24, Metaplanet announced that it will add a total of 1 billion yen ($6.3 million) worth of Bitcoin to its coffers. The company said in a statement that the funds that will be used for this purpose will be obtained from a bond sale that happened on June 26. Following the successful offering, Metaplanet has begun the first round of Bitcoin purchases with over 20 BTC.

Source: Metaplanet/X

With this recent purchase, Metaplanet now holds a total of 161.3 Bitcoins (worth $10.1 million) purchased at an average price of 10.2 million yen ($63,326) per Bitcoin. The total Bitcoin holding equals 1.65 billion yen. With this initiative, Metaplanet might reach the $1 billion in Bitcoin holding milestone in the future.

Notably, Metaplanet has shifted its focus to Bitcoin amid the ongoing devaluation of the Japanese yen. Last week, the legal tender dropped to its lowest against the USD since 1986 after it crashed to ¥160.8 per USD. At the time of writing, USD conversion to yen sits at ¥161.10. As the Japanese yen continues to weaken, more companies might start to look towards adopting Bitcoin as an alternative since Japan provides a crypto-friendly atmosphere and is beginning to solidify itself as an emerging web3 hub.

Bitcoin is currently trading at $62,812 with a 24-hour trading volume of $21.1 billion and a live market cap of $1.2 trillion.

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In the ongoing legal conflict between Coinbase and the United States Securities and Exchange Commission (SEC), Coinbase’s Chief Legal Officer (CLO), Paul Grewal, has accused the SEC of persistent stonewalling. 

This accusation comes as the San Francisco-based crypto exchange contests what it perceives as the SEC’s unclear regulations and overreach in the burgeoning crypto sector.

Paul Grewal has taken to the X platform (formerly known as Twitter) to voice concerns over the SEC’s approach. Grewal asserts that the SEC has adopted an aggressive enforcement strategy without providing a practical framework for compliance. He alleges that the regulatory body has refused to supply clear guidelines, hindering Coinbase’s ability to operate within the legal boundaries.

Chevron: gone. Secondary sales in the Binance case: gone (more to say about that…). And now, late on a Friday, more stonewalling from @SECGov to stop Coinbase from obtaining documents from Gary Gensler in our litigation.

— paulgrewal.eth (@iampaulgrewal) June 29, 2024

Grewal emphasized the importance of obtaining documents from SEC Chairman Gary Gensler, which could be crucial for Coinbase’s defense. 

“And now, late on a Friday, more stonewalling from SECGov to stop Coinbase from obtaining documents from Gary Gensler in our litigation,” he stated. 

Moreover, these documents pertain to communications that could demonstrate inconsistencies in the SEC’s stance on digital assets.

Gensler’s Statements Under Scrutiny

The CLO pointed to statements made by Gary Gensler, particularly those made after he assumed the role of SEC Chairman in May 2021. Gensler’s comments before Congress suggested that the SEC lacked regulatory authority over transactions involving digital assets traded on exchanges, reinforcing market participants’ belief that such transactions were exempt from securities rules.

Grewal also highlighted Gensler’s statements to market participants and the general public contradicting the SEC’s current enforcement actions. Coinbase argues that these interactions are pertinent in illustrating how the SEC’s actions may violate the Constitution’s due process clause. Despite repeated requests, the SEC has reportedly withheld these communications, leading to accusations of non-cooperation.

Broader Frustration in the Crypto Sector

The allegations from Coinbase’s CLO reflect broader dissatisfaction within the crypto community regarding what is perceived as hostile and unpredictable regulatory practices. The dispute between the SEC and Coinbase has been marked by months of court battles, with Coinbase striving to engage with the SEC to seek regulatory clarity.

Recently, Coinbase escalated its efforts by suing the SEC, demanding access to documents that could support its ongoing litigation. Despite these efforts, the SEC has yet to respond to Coinbase’s motion. The core of the dispute centers on the SEC’s claims that Coinbase has been operating as an unregistered securities exchange and offering unlicensed securities to investors.

Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. @SECGov has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones. While @FDICgov pressured financial institutions to cut…

— paulgrewal.eth (@iampaulgrewal) June 27, 2024

This legal battle is pivotal in the ongoing debate over regulating cryptocurrencies and digital assets in the United States. The outcome of this conflict may set important precedents for how cryptocurrencies are regulated moving forward. Coinbase and the SEC remain entrenched in their positions as the dispute continues, each seeking a resolution that aligns with their interpretations of the law.

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A massive crypto whale has shifted a staggering amount of Ethereum (ETH), up to the tune of 60,000 from a centralized cryptocurrency exchange. This major move has sparked interest among market participants as it coincides with a notable price uptick.

Meanwhile, the global crypto market has experienced a significant recovery over the last 24 hours. At the time of writing, the total crypto market cap has jumped by 3.79% to $2.33 trillion. This comes following last week’s downward trend that saw huge amounts liquidated from the market.

While we await for the launch of spot Ethereum ETF possibly on July 8, large investors are making major moves. Let us look at this transaction in detail.

Whale Shifts $230 Million in ETH to Bitfinex

Spot-on-chain, an AI-based blockchain insight platform, reported earlier on X (formerly Twitter), that it had spotted a large amount of Ethereum changing hands. According to the report, a massive whale, likely Abraxas Capital, an asset management firm, withdrew 60,000 ETH (valued at $230 million) from the Hong Kong-based crypto exchange, Bitfinex.

Notably, the transaction was made at an average of $3,387 per coin. Following this, the price of Ethereum rallied by over 3%, thus signifying $6.274 million in unrealized profit for the whale.

Source: Spot-on-chain/X

Following the withdrawal, the whale deposited the ETH to Spark and borrowed $119 million in stablecoins. The stablecoins were immediately deposited to Binance, the largest cryptocurrency exchange by trade volume.

Interestingly, whales have been swapping other coins for Ethereum in anticipation of the spot Ethereum ETF launch. In a previous report, Coinfomania noted that a smart whale swapped 1.4 trillion PEPE (worth $18.01 million) for 2,646 ETH, valued at $9.04 million. The launch which was supposed to happen on July 4 was delayed and rescheduled for submission on July 8 by the Securities and Exchange Commission. Before then, the price of Ethereum might experience a further uptick as anticipation grows.

Ethereum (ETH) Price Today

Ethereum (ETH) has seen a healthy price jump over the last day. According to data from CoinMarketCap, ETH is currently trading at $3,482, representing a 2.77% increase. Additionally, its trading volume over the last 24 hours has surged by 49.33% to $10.3 billion. For ETH to continue this rally, it has to maintain a position above $3,500 at the end of the day’s trading, this can further push the price towards the $4,000 mark.

Source: CoinMarketCap

In the last 24 hours, Ethereum has traded between the lows and highs of $3,374.13 and $3,514.17. The current ETH price is notably down by 28.6% from its all-time high of $4,878 reached in November 2021.

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Japanese multinational conglomerate corporation Sony Group has entered the crypto space with its latest acquisition of Amber Japan, a crypto exchange and the Japanese subsidiary of the global Amber Group. This purchase marks an expansion from Sony’s electronics and information technology products to a digital asset trading venture.

Valued at over $100 billion, Sony now has businesses that cut across games, music, cameras, electronics, movie production, and cryptocurrency trading. The decision to enter the Japanese market is strategic as the country continues positioning itself as an emerging web3 hub.

Sony to Compete in the Japanese Crypto Space

Colin Wu, an Asian news reporter first reported the development on X (formerly Twitter). According to him, Amber Japan, previously known as DeCurret, was purchased by the Singapore-based Amber Group in 2022.

However, following the collapse of FTX in the same year, Amber Group was hit with a major financial crisis which prompted the company to enter into a debt-to-equity transaction with Fenbushi Capital. Amber Group went on to close a staggering $300 million Series C funding round in June 2023.

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

Notably, Amber Group investors comprise some notable names including Coinbase, Sequoia China, Temasek, Tiger, and Pantera. Sony’s shift into the digital currency space in Japan leverages its strong market position, consequently, it will be competing in the field with other major cryptocurrency exchanges including Binance, Bybit, BitFlyer, Huobi, and OKX.

Sony’s Web3 Journey

Interestingly, this is not the first time the tech giant is venturing into the web3 space. Recall that in March 2023, Sony entered into the Non-fungible tokens (NFTs) market by filing a patent for an NFT framework. The patent was for digital asset usage and transfer between gaming platforms. With this, players can securely and easily trade cryptocurrencies across several gaming platforms, boosting cryptocurrency impact in the gaming industry.

The Japanese web3 space has gotten major traction over the past month. On June 28, Coinfomania reported that Alibaba Cloud, a subsidiary of Alibaba Group, collaborated with Aptos Foundation to launch Alcove, to improve the web3 ecosystem in Japan. The debut of Sony in the web3 space in Japan marks a significant milestone and is expected to advance and boost credibility in the landscape.

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As July approaches, the cryptocurrency market is preparing for a substantial influx of token unlocks, with an estimated $3 billion worth of digital assets scheduled for release. Token unlocks are designed to gradually distribute coins, a strategy intended to prevent early investors and team members from offloading large quantities at once, which could destabilize the market. Experts in the market suggest that such unlocks might heighten selling pressure, potentially impacting the broader digital asset landscape.

CryptoRank, a well-regarded crypto research and analytics platform, has identified the top ten token unlock events scheduled for July. These events collectively will release over $3 billion in digital assets, with more than $100 million becoming available in just the first week of the month.

One significant unlock event involves AltLayer, a project that facilitates the deployment of Ethereum roll-ups. On July 25, AltLayer is set to release approximately 684 million tokens, valued at around $119 million.

According to Token Unlocks data, these tokens constitute 22% of AltLayer’s market capitalization. The distribution will target various stakeholders, including the project’s team, investors, advisers, and the broader AltLayer community, supporting protocol development and the treasury ecosystem.

Worldcoin’s Extensive Token Unlock Schedule

The significant token unlocks that are set for July will affecting various blockchain platforms and networks. Aptos, a Layer-1 blockchain platform, and Arbitrum, an Ethereum Layer-2 network, will continue their routine monthly token distributions, releasing a combined total of $150 million worth of tokens to their teams, advisors, and investors.

Another major event is the planned token unlock by Worldcoin, known for its proof-of-personhood initiative. Starting July 24, Worldcoin will begin releasing 6.62 million WLD tokens daily over a span of 730 days. These tokens, valued at approximately $18 million daily, are designated for community members, the initial development team, and investors.

Top 10 Token Unlocks in July. Source: Cryptorank

Additionally, July will see notable token releases from other key projects in the crypto space. Uniswap is set to distribute 8.33 million UNI tokens, valued at $77.88 million, on July 16. Following this, Ronin plans to release 35.71 million RON tokens worth $76.32 million starting July 27. Other projects scheduled for token unlocks include SUI, ImmutableX (IMX), SEI, Starknet (STRK), and Ethereum Name Service (ENS). These unlocks are critical events for the respective tokens’ markets, potentially influencing their valuation and market dynamics.

Worldcoin (WLD) Technical Analysis

In recent trading sessions, Worldcoin (WLD) has shown a marked downtrend against the US Tether (USDT) on Binance, as evidenced by analysis of the 30-minute price chart. The data extracted from this chart offers insight into the prevailing market sentiment and potential future trends for the cryptocurrency.

The Exponential Moving Average (EMA), represented in blue and currently positioned at approximately $2.436, has recently seen the price of WLD fall below it. This descent below the EMA line suggests a possible short-term bearish trend and indicates that WLD is facing significant selling pressure, struggling to surpass this dynamic resistance level.

WLD/USDT price chart. Source: TradingView

Additionally, the Relative Strength Index (RSI) is recorded at 46.22, which places it in a neutral to slightly bearish range. Being below the midline of 50, yet not extending into the oversold area (below 30), the RSI suggests that there might be further downward movement or potential stabilization if buying interest picks up.

Currently, Worldcoin’s price trajectory further underscores the bearish sentiment, with a recent price point near $2.457. The consistent inability to break above the EMA, despite multiple attempts, further confirms its role as a critical barrier to price gains, reinforcing the overall downtrend observed in the market.

Support and Resistance Zones

In the current trading landscape, WLD has established a primary support level at approximately $2.42. This price point acts as a floor, historically preventing further declines, as evidenced by multiple instances where the price has rebounded upon reaching or approaching this level. A break below this level could suggest a shift towards a more pronounced bearish trend, necessitating a revision of trading strategies.

If the price drops beneath this primary support, the next critical level to monitor is near $2.36. This support level has previously seen minor consolidation, indicating a sustained buying interest that might serve as a buffer against further drops.

Regarding resistance levels, the immediate resistance is identified at roughly $2.44, slightly above the current trading price. This resistance aligns closely with the Exponential Moving Average (EMA) and is characterized by recent failures of the price to maintain upward movements. Surpassing this EMA is seen as essential for reversing the prevailing bearish sentiment.

A more formidable resistance stands around $2.48, a level confirmed by observing peaks that have consistently acted as a significant barrier. The repeated struggles to exceed this price level highlight strong selling pressure. A successful breakout above this mark could signal a potential bullish reversal or at least indicate an increase in upward momentum.

The post Crypto Market Anticipates $3 Billion in Token Unlocks in July; Worldcoin (WLD) Price Analysis appeared first on Coinfomania.

Nigeria’s cryptocurrency community has expressed admiration for Europe’s new Markets in Crypto-Assets Regulation (MiCA), particularly its rules on stablecoins. They regard these regulations as beneficial, emphasizing the importance of aligning crypto projects with local interests to safeguard national currencies.

In a recent conversation, Nigerian data and policy analyst Obinna Uzoije discussed the potential lessons the Economic Community of West African States (ECOWAS) could draw from Europe’s MiCA. He underscored the potential benefits that a similar regulatory framework could offer to the cryptocurrency landscape within ECOWAS member states.

Uzoije noted that stablecoins are currently the most widely utilized crypto assets, especially in Africa, where transactions using stablecoins surpass those of any other digital asset form.

USD-backed stablecoins dominate with 90% of crypto transactions in 2024, averaging $270bn weekly—70x more than EU counterparts. Euro-backed stablecoins now at an all-time high, though only 1.1% of transactions. Read more: https://t.co/Wy0zUwA16F pic.twitter.com/GmhmTdQTgt

— Open Dollar (@open_dollar) June 30, 2024

The significance of the MiCA’s stablecoin regulations, which come into effect on June 30, is considerable. These rules mark a major milestone in the regulation of crypto assets not just in Europe, but potentially in other regions as well. Under these regulations, with no transitional period allowed, issuers and relevant parties must secure a MiCA license to publicly offer or trade asset-referenced tokens (ARTs) or e-money tokens (EMTs) within the European Union.

The Impact of a Unified Crypto Regulatory Framework

Under the leadership of Nigerian President Bola Tinubu, who currently heads the Economic Community of West African States (ECOWAS), there is a unique opportunity to establish a regulatory framework for cryptocurrency projects within the region. Uzoije points out that this could be particularly transformative for ECOWAS, as some member countries like Sierra Leone have strict or complete bans on cryptocurrencies. A unified regulatory approach could mitigate these restrictions across its 15 member states.

Uzoije argues that a cohesive set of regulations would provide much-needed clarity for potential crypto investors, simplifying the investment process across different nations by eliminating the need to navigate various national regulations. Such clarity could make the ECOWAS region more attractive to investors by reducing regulatory uncertainty, which is a major global barrier to crypto investments.

Moreover, Uzoije highlights the ongoing dispute between Nigerian authorities and the cryptocurrency exchange Binance, where money laundering has been cited as a major issue. By adopting a unified regulatory framework, ECOWAS could bolster its efforts in combating money laundering. This framework would facilitate more effective monitoring of crypto-related money laundering activities. Additionally, clear regulations would assist in addressing the financing of terrorism, another significant concern tied to cryptocurrency use in the region.

Key Changes in Market Valuations of Major Stablecoins

In June, the stablecoin market showed little variation in supply, with several stablecoins experiencing shifts in their market valuations. Tether (USDT), holding the title of the largest stablecoin by market capitalization, registered a marginal increase of 0.7%, bringing its market value to $112.65 billion. Meanwhile, First Digital’s FDUSD, ranked fifth, underwent a significant reduction of 28.5%, with its market cap now standing around $2 billion.

USDC, the second largest stablecoin, saw its market cap slightly decrease by 0.4% to $32.24 billion. Makerdao’s DAI, which ranks third, decreased by 3.9%, resulting in a market valuation of $5.13 billion. Contrarily, Ethena’s USDE, the fourth largest, recorded the most notable growth among its peers, surging by 21.4%. Tron’s USDD and frax dollar (FRAX) saw minor adjustments with increases of 0.5% and a decrease of 0.1%, respectively. TrueUSD (TUSD), the eighth largest, saw its supply contract by 1.3%.

Further down the list, Paypal’s PYUSD, the ninth largest stablecoin, increased by 6.3%. In contrast, Blast’s USDB, the tenth largest, faced a slight downturn of 0.2%. The changes in the stablecoin market during June underscore that growth in supply primarily responds to market demand. These minor fluctuations indicate that while stablecoins play an essential role in the cryptocurrency ecosystem, their expansion is contingent upon the specific demands of the market.

Timeline and Implementation of MiCA Regulations

As of June 30, 2024, a significant regulatory development in the European Union, known as the Markets in Crypto-Assets Regulation (MiCA), will specifically address the burgeoning stablecoin market, marking a major milestone for crypto asset regulation not just in Europe but potentially globally. Under this new regime, any entity involved in the public offering or trading of asset-referenced tokens (ARTs) or e-money tokens (EMTs) will need to secure a MiCA license, with the regulation taking effect immediately without any transitional period.

BREAKING: MiCA is now live! From June 30th crypto exchanges and stablecoin issuers will operate in the EU according to the rules provided for by the MiCA law! Most of the stablecoins don’t fulfill all necessary regulations but #Ripple stablecoin ‚RLUSD‘ will do!… pic.twitter.com/jxzfNpEyVs

— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) June 30, 2024

MiCA signifies a major evolution in regulatory approaches within the EU, shifting from frameworks predominantly focused on anti-money laundering and counter-terrorist financing to a more comprehensive structure. This structure includes prudential and conduct requirements for both issuers of crypto assets and crypto asset service providers (CASPs). The regulation seeks to streamline the fragmented regulatory landscape, enhancing legal certainty, consumer and investor protection, and the overall integrity and stability of the European financial system, while also promoting innovation.

While the specific regulations for stablecoins are set to activate by the end of this month, the broader regulatory provisions for CASPs will come into force six months later, on December 30, 2024. In preparation, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have engaged in extensive consultations, developing Regulatory Technical Standards (RTS), Implementing Technical Standards (ITS), and guidelines. These efforts are aimed at helping firms understand and meet the regulatory expectations outlined in MiCA.

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This year, Solana (SOL) has demonstrated remarkable growth, surging by almost 800%, surpassing the gains of both Bitcoin and Ethereum.

Over the past 12 months, despite a recent decline to the $141 level, Solana’s value has increased by more than 770%, as reported by CoinMarketCap. In comparison, Bitcoin and Ethereum have registered gains of 100% and 82% respectively, within the same period.

The substantial growth of Solana has solidified its position as one of the top three cryptocurrencies in the market, alongside Bitcoin and Ethereum. This recognition of Solana’s market performance has prompted two firms to file for Spot Solana ETFs just this week, highlighting its increasing relevance in the cryptocurrency space.

Solana’s Strong Position Among Crypto Giants

Throughout 2024, the United States has approved two cryptocurrency-based ETFs, with expectations for more approvals on the horizon. Solana has notably emerged as a strong candidate for such an investment product, thanks in part to its impressive 800% annual gains, which have surpassed those of both Bitcoin and Ethereum.

gmtndao The Solana community builder house is coming back to Salt Lake City this August! Here's what you can expect:– Quality workstations with fast WiFi– Connecting with Solana builders– Workshops from Solana teamsapply below pic.twitter.com/V2ZXH6Q0EM

— Solana (@solana) June 28, 2024

According to a recent report from GSR Markets, SOL has solidified its position within the “Big Three” of the cryptocurrency market, suggesting that it’s only a matter of time before a SOL ETF is established. This development would elevate Solana alongside Bitcoin and Ethereum in a select group of assets benefiting from ETF products.

Recent filings by 21Shares and VanEck indicate significant interest in launching a Solana investment product. This reflects not only Solana’s potential as a lucrative investment but also indicates a shift in the regulatory landscape in the United States. The broader implications hint at an overarching change in the financial sector.

Bloomberg has noted that Bitcoin’s performance is increasingly being overshadowed by Ethereum and Solana as excitement around ETFs grows. The potential approval of a Solana ETF could substantially benefit both the industry and the token itself, enhancing its market position and value.

Growth in Staked SOL Despite Market Downturn

Amid intense market volatility and a general downturn in cryptocurrency values, core Solana investors have maintained a resiliently bullish posture, suggesting an imminent price resurgence for SOL. Despite past underperformance, Solana’s stakers and node validators have consistently exhibited optimism.

Solana Price vs. Total SOL Staked. Source: StakingRewards

Recent data from StakingRewards.com, a staking data aggregator, shows real-time shifts in the volume of SOL coins deposited into smart contracts. These deposits serve the dual purpose of generating passive income and enhancing the security of the Solana blockchain network. On May 20, at the onset of the market downturn, Solana stakers had 368.8 million SOL in smart contracts. However, by June 29, this number had increased to 375.3 million SOL, despite prevailing market fears, uncertainty, and doubt.

This increase of 6.5 million SOL, valued at approximately $884 million, has elevated the total value of staked SOL to $50.1 billion. This strategic move by Solana’s core investors highlights their strategy to withstand the bearish market by staking coins for passive income, anticipating future price gains.

The behavior observed on the trend chart where stakers increase their deposits during a bearish market phase indicates a positive long-term outlook on SOL’s price potential. Furthermore, staking reduces the short-term market supply of SOL, easing selling pressure and potentially hastening a price breakout when market sentiments turn bullish.

Moreover, a 0.22% drop in the inflation rate during this period, influenced by SOL’s tokenomics, further incentivizes stakers to increase their deposits moving forward. These strategies reflect the robust approach of Solana investors to navigate the current bearish market, balancing book-value preservation with passive income generation, in preparation for the next market recovery.

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After a recent dip to $58,000, the price of Bitcoin has surged, leading to a positive ripple effect across the altcoin market. The market capitalization of altcoins has risen slightly to $228.9 billion, signaling a broader recovery in the cryptocurrency sector.

This turnaround comes after several challenging days that saw significant declines. Currently, a new trend is emerging in the market, with July poised to be a pivotal month for altcoins. Analysts predict these cryptocurrencies could see gains of at least 100%. Given these projections, the present moment is considered an optimal time to invest in major altcoins such as Ethereum, Solana, Toncoin, and XRP.

Toncoin (TON)

Toncoin has experienced a remarkable surge in popularity this year, delivering an impressive 223% gain despite recent setbacks. Its demand peaked in early June when its daily active users, totaling 568,300, eclipsed those of Ethereum.

Recently, Toncoin reached a new all-time high of $8.24 but has since retracted slightly, currently priced at $7.56. This places it just 8.3% below its peak. Notably, Toncoin is among the first alternative cryptocurrencies to show signs of recovery, bouncing back robustly from earlier losses.

Ethereum (ETH)

The cryptocurrency market has recently experienced significant volatility, with Ethereum and numerous other altcoins reaching their lowest values of the month. Ethereum, the second-largest cryptocurrency by market capitalization, saw its price decline to $3,249.50 earlier.

However, it has since undergone a modest recovery, with its current price standing at $3,390. Despite this slight uptick, Ethereum remains at a net loss. Its price movements tend to mirror those of Bitcoin, which has recently rallied to an all-time high, suggesting Ethereum may be poised for a rebound against the prevailing bearish trends.

Ethereum: where yesterday's FUD is today's solved problem. pic.twitter.com/revNpVEeqm

— vitalik.eth (@VitalikButerin) June 11, 2024

Solana (SOL)

Solana experienced a notable increase, rising from $139 to $146.93, which contributed to a 7% recovery on the 27th. Despite the initial surge, investor sentiment remained neutral shortly thereafter. However, market dynamics are poised for a shift with the onset of a Summer rally expected in July. Previously, in March, the price of Solana had reached a high of $202 before entering a subsequent downtrend.

This historical performance has piqued the interest of investors who are now keenly watching these alternative cryptocurrencies for potential rallies in the coming month. Moreover, there is a growing demand for Solana-based Exchange Traded Funds (ETFs). Notably, VanEck has applied to launch a Solana (SOL) ETF, which has further fueled the heightened demand for the Solana token.

Analysts maintain that despite the current limitations of Cardano and XRP, there are signals of a potential price recovery from recent dips. On the other hand, altcoins such as Cardano, Injective, and XRP are poised for a rebound, buoyed by their popularity. Particularly, Injective has already commenced its upward trajectory, significantly aided by its effective token-burning mechanism, which aligns with the right market trends and boosts its value.

Ripple’s (XRP) Technical Analysis

The technical analysis of XRP (Ripple) shows intriguing trends, especially as the price navigates just below the Exponential Moving Average (EMA – depicted in blue), marking a critical juncture. Let’s break down the current setup and what it might suggest for future price movements.

XRPUSDT price chat. Source: TradingView

The 9-day EMA currently sits at approximately $0.4750, serving as a significant marker by reflecting the adjusted average closing price over the recent nine sessions to accommodate price fluctuations. Presently, the price of XRP is marginally below this EMA, indicating a slight downward pressure. In this scenario, the EMA serves as a resistance level, challenging the price to rise above it.

Meanwhile, the RSI stands at a moderate 52.40, neither signaling overbought nor oversold conditions, which portrays a market in relative equilibrium but tilting slightly towards bullish tendencies. Positioned just above the midpoint of 50, the RSI suggests an increasing interest in buying, though not yet strong enough to classify the market as overbought, which is typically indicated by an RSI above 70.

The Relative Strength Index (RSI), consistently registering above the midpoint at 50, supports a mild bullish sentiment. This suggests there is sufficient buying pressure that could, in time, help the price overcome the current resistance. Market watchers are advised to keep an eye on the potential for a sustainable breakout above the EMA line. Should this occur, it would likely signal a bullish trend reversal, potentially leading XRP to test higher resistance levels, possibly around $0.4850 or higher.

XRP Support and Resistance Zones

Analyzing the XRP/USDT chart reveals key support and resistance levels that offer insights into potential price movements and significant trading activities.

The first notable support level is at approximately $0.4720. This level has recently become significant, acting as a support zone where the price often stabilizes or rebounds after declines. The consistent buying interest at this price suggests that traders and investors view it as an opportune entry point, preventing further price drops.

Should the price of XRP fall below this initial support, the next critical level is near $0.4650. This price has historically served as a floor, with the price struggling to fall below it. This indicates a strong area of support where market participants may look to accumulate shares or enter new positions, suggesting its importance in the trading strategy of investors and traders alike.

The current trading pattern of XRP shows that the first significant resistance level is approximately at $0.4750, where the EMA line serves as a dynamic barrier. This price point has been tested by XRP multiple times, but maintaining a breakout above this level has proven challenging. The repeated failure to surpass this threshold suggests a pivotal area where selling pressure consistently overcomes buying momentum, often leading to price retracements.

If XRP were to successfully breach the EMA and sustain this advance, the next key resistance is expected around $0.4850. At this level, historical data suggests a tendency for price rejections and reversals, marking it as a potential point for traders to take profits. This observation underscores the $0.4850 mark as another critical resistance that could influence future trading strategies for XRP.

The post Which Altcoins Are Poised For a Recovery? Ripple’s (XRP) Price Analysis appeared first on Coinfomania.

The launch of United States-based spot Ether exchange-traded funds (ETFs) has been delayed following the U.S. Securities and Exchange Commission’s (SEC) comments on the S-1 forms. 

The SEC has requested resubmissions of these forms by July 8, pushing the anticipated launch from early July to mid-to-late July.

ETF analysts Eric Balchunas and James Seyffart from Bloomberg have reported that the SEC has taken additional time to return the S-1 forms submitted by prospective spot Ether ETF issuers. This delay has affected the expected launch schedule, moving it to a later date in July. 

Balchunas remarked, 

“Unfortunately, I think we’re going to have to push back our over/under until after the holiday.”

Unfort think we gonna have to push back our over/under till after holiday. Sounds like SEC took extra time to get back to ppl this wk (altho again very light tweaks) and from what I hear next wk is dead bc holiday = July 8th the process resumes and soon after that they’ll launch… https://t.co/0ZQR7yiBLt

— Eric Balchunas (@EricBalchunas) June 28, 2024

Minor Revisions and Approval Process

Nate Geraci, president of ETF Store, mentioned that the recent round of S-1 revisions was relatively minor. Geraci predicts that the SEC will clear issuers for trading within 14 to 21 days after resubmission. Despite the uncertain timeline, the SEC has indicated a potential launch during the summer. Previously, Balchunas had predicted an early July ETF launch due to the lack of significant commentary from SEC staff on the ETF applicants’ S-1 filings.

The approval of the S-1 forms represents the second part of a two-step process required for the ETFs to go live. The first step involved approving the issuers’ 19b-4 forms in May. The SEC approved the 19b-4 filings from eight ETF bidders on May 23. Unlike the 19b-4 forms, the S-1 forms do not have a specific deadline, making the issuers dependent on the SEC’s review and approval timeline.

Statements from SEC Chair Gary Gensler

On June 26, SEC Chair Gary Gensler confirmed that the approval process for spot Ether ETFs is progressing smoothly. Gensler stated, “These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.” This statement delegates responsibility for the approval process to the issuers, indicating that the SEC will not intentionally delay it.

The SEC has approved a rule change allowing significant issuers to participate, including BlackRock, Fidelity, 21Shares, Grayscale, Franklin Templeton, VanEck, iShares, and Invesco. Some issuers, such as VanEck, have filed 8-A forms preparing for listing on exchanges by July 8. However, Gensler has indicated that listing spot Ether ETFs on stock exchanges might take months, potentially delaying until September.

The post SEC Delays Launch of Spot Ether ETFs After S-1 Form Comments appeared first on Coinfomania.

Recent insights from GSR’s analysis indicate that XRP and Cardano may face challenges transitioning into exchange-traded funds (ETFs). 

This analysis evaluates cryptocurrencies on decentralization and market demand, and both XRP and Cardano scored poorly in these critical areas.

Decentralization is a fundamental aspect involving factors like permissionless participation and hardware diversity in the network. The Nakamoto Coefficient, which measures the concentration of operational power within a network, revealed vulnerabilities in both XRP and Cardano. 

XRP scored -0.9 and Cardano -0.1, suggesting concerns about their network structures. These low scores reflect potential risks of collusion or control by a few entities, raising doubts about their suitability for ETF adaptation.

Market Demand and Community Activity

Besides decentralization, market demand plays a crucial role in the potential for cryptocurrency ETFs. This includes metrics like market cap, trading volume, and community activity. Despite the popularity of XRP and Cardano, they lagged behind other cryptocurrencies in GSR’s analysis. XRP scored -0.2, while Cardano scored -0.5, indicating weaker demand metrics.

These lower demand scores further contribute to XRP and Cardano’s challenges in launching ETFs. In contrast, other cryptocurrencies like Ethereum, Solana, and NEAR show stronger potential for future market demand, aligning with their higher scores in GSR’s analysis.

Contrast with Solana and Other Cryptocurrencies

While XRP and Cardano struggle, other cryptocurrencies are making significant strides. Solana, in particular, has been highlighted for its positive evaluations. VanEck, a major asset management firm, has filed for the first-ever Spot Solana ETF with the US Securities and Exchange Commission (SEC). 

According to Matthew Sigel, VanEck’s head of digital asset research, 

“With its combination of scalability, speed, and low costs, the Solana blockchain has the potential to provide an enhanced user experience across a wide range of use cases.”

I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US. Some thoughts on why we believe SOL is a commodity are below.Why did we file for it?A competitor to Ethereum, Solana is open-source blockchain software designed to… pic.twitter.com/XwwPy8BXV2

— matthew sigel, recovering CFA (@matthew_sigel) June 27, 2024

Solana’s growing stature and recent ETF filing underscore its position as a notable competitor to Ethereum. This contrasts sharply with the outlook for XRP and Cardano, which are hampered by their lower decentralization and demand scores.

Bitcoin and Ethereum ETF Developments

The landscape for Bitcoin and Ethereum ETFs remains mixed. Bitcoin spot ETFs have experienced varying inflows, reflecting market caution. Ethereum’s potential ETF is still pending final S-1 approvals, which are expected to materialize soon. Despite these pending approvals, the market’s response has been cautious, with slow but positive trends in inflows for spot Bitcoin ETFs observed over recent days.

The cautious market reception highlights the complexities and uncertainties surrounding the approval and adoption of cryptocurrency ETFs. While Bitcoin and Ethereum navigate these mixed signals, XRP and Cardano’s path appears more challenging based on GSR’s analysis.

The post GSR Reveals Challenges for XRP and Cardano ETF Approval appeared first on Coinfomania.

Logan Paul, a name synonymous with internet fame, has recently found himself in the eye of a legal fiasco. The YouTube sensation turned crypto enthusiast is suing Stephen Findeisen, better known as Coffeezilla, for defamation. The bone of contention? A series of videos on Paul’s failed non-fungible token (NFT) project, CryptoZoo.

Can’t get over the fact that Logan Paul subscribed to my Patreon, advertised it on his main channel, said he admired my “work ethic” & “creativity”, and then said he’s suing me. https://t.co/eYB57EIHgQ pic.twitter.com/8guq428rtM

— Coffeezilla (@coffeebreak_YT) January 4, 2023

Logan Paul vs. Coffeezilla’s Defamation Duel

Background

CryptoZoo, an ambitious NFT game, was launched with much fanfare in 2022. The game allowed players to buy NFT “eggs” using the game’s token, ZOO. However, the project hit a roadblock, and accusations of it being a scam started to surface.

Hey Logan, was promising $1.8 million in refunds to CryptoZoo victims, and 6 months later not paying "another masterclass in marketing"? Asking for all the people who got scammed by you and the criminals you hired. https://t.co/wRS4yE24Jb

— Coffeezilla (@coffeebreak_YT) June 29, 2023

Coffeezilla, a YouTuber famed for his financial fraud exposés, released three videos calling CryptoZoo “Logan Paul’s biggest scam.” He accused Paul of defrauding his fans by pocketing the money of NFT holders without delivering the rest of the promised project.

Source: YouTube (Findeisen in the first of three videos discussing Paul’s CryptoZoo project).

Hey Logan, was promising $1.8 million in refunds to CryptoZoo victims, and 6 months later not paying "another masterclass in marketing"? Asking for all the people who got scammed by you and the criminals you hired. https://t.co/wRS4yE24Jb

— Coffeezilla (@coffeebreak_YT) June 29, 2023

Paul, on the other hand, has vehemently denied these allegations. He claims that Coffeezilla purposefully omitted information in his videos that proved Paul was “deeply committed” to CryptoZoo’s success. According to Paul, he was “deceived by several of the project’s trusted advisers who turned out to be conmen.”

The Lawsuit

In response, Logan Paul filed a defamation lawsuit against Coffeezilla. The lawsuit, filed on Thursday, June 27, 2024, in a San Antonio, Texas District Court, states that Findeisen “maliciously and repeatedly [published] false statements accusing Paul of operating a scam in connection with a troubled blockchain project called CryptoZoo.” Paul is seeking damages over $75,000 plus interest and lawyer fees.

The plot thickens as Paul shifts the blame for the project’s failure onto Eduardo “Eddie” Ibanez and Jake Greenbaum. Paul accuses Ibanez of being a “charlatan” who lied about his credentials and Greenbaum, an adviser, of being more interested in personal profit than creating a legitimate project.

Why It Matters

This legal battle highlights the intersection of celebrity influence, NFTs, and due diligence. Investors need to be cautious when diving into the NFT space, as not all projects are equal. Coffeezilla’s critique serves as a reminder to thoroughly research any crypto project before investing.

The post Logan Paul Files Defamation Lawsuit Against Coffeezilla over CryptoZoo ‘Scam’ Allegations appeared first on Coinfomania.