In a recent dialogue with Real Vision CEO Raoul Pal, BitMEX co-founder Arthur Hayes advocated a nuanced view of memecoins, suggesting that despite their seemingly frivolous nature, they contribute significantly to the blockchain ecosystem.
During their March 30 interview, Hayes emphasized the positive impact of memecoins in attracting new users and engineers to blockchain networks, thereby enhancing their value.
“You can poo-poo these things as stupid and valueless, but if it brings attention and more engineers to the space, it’s positive value for the chain itself,” Hayes stated, highlighting the benefit of increased attention and development activity.
Hayes further noted that blockchain networks like Solana and Ethereum, which embrace memecoin culture, are poised to benefit the most from this trend.
He pointed out how Solana experienced a surge in network activity following a memecoin frenzy last November, which was also accompanied by a growth in non-meme projects on the platform.
Similarly, the Bitcoin network saw a significant increase in activity with the advent of BRC-20 tokens and Ordinals.
The conversation also touched on the appeal of memecoins to younger investors, with Pal drawing parallels between the trend and the gaming mentality prevalent among Gen Z and Millennials.
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“This is the same thing, just gaming with money,” Pal remarked.
The duo predicted that the popularity of memecoins, such as the Solana-based Dogwifhat (WIF), would continue to rise, noting its upcoming projection on the Las Vegas Sphere and its impressive market capitalization, which recently surpassed that of the Ethereum layer-2 network Arbitrum.
Despite the enthusiasm, the discussion acknowledged the risks associated with memecoins.
Franklin Templeton, in a March 14 investor note, warned of the dangers posed by their lack of fundamental value or utility.
Additionally, Ethereum co-founder Vitalik Buterin expressed a lukewarm stance towards memecoins in a March 29 blog post.
While he recognized the enjoyment they bring to the crypto space, Buterin urged for a more constructive approach that adds utility or charitable value to these tokens.
Nevertheless, memecoins have demonstrated remarkable performance in the crypto market, outperforming other asset classes over the past month, as reported by CoinGecko.
Memecoins have seen an aggregate growth of 20% in the last week, surpassing gains in layer-1 network tokens and decentralized finance (DeFi) tokens, thereby illustrating their significant yet contentious role within the cryptocurrency landscape.
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Musk Eclipse (ECLIPSE) is a new Solana memecoin that was launched on 9 April, and it has rallied 1,900% in the last 24 hours, while popular memecoins like Shiba Inu (SHIB) and Dogecoin (DOGE) have dropped in price.
Musk Eclipse has enjoyed an explosive rally in the last 24 hours, with its pricing surging 1,900% as it currently trades at $0.00001935.
Its market cap currently sits at just $19,000, with $7,900 in locked liquidity according to DEX Screener, meaning it has tremendous potential for more price growth in the coming days, weeks and months.
This rally has occurred while, in the last 24 hours, Shiba Inu (SHIB) and Dogecoin (DOGE) have both dropped in price.
Specifically, SHIB is down 4.47%, while DOGE has seen a 5.6% decline in its price.
It has been predicted that Musk Eclipse’s market cap will hit $500,000 by Monday, delivering around 2,900% returns to investors who buy in at the current price point.
And, if the memecoin is able to eventually achieve a multi-million dollar market cap, like many other newly launched memecoins, early investors would see their positions surge to hundreds of thousands or millions of dollars.
Investors are targeting further gains once this price target is reached, with many investors expecting ECLIPSE’s (D6QcGYbrpzFjVEmzARLzMC2TdFiHhWaRoieq6YMJVZf8) market cap to rally further.
The coin can currently only be purchased on Solana decentralized exchanges, like Raydium and Jupiter, with investors needing to first buy Solana’s SOL token and then swap it for Musk Eclipse (ECLIPSE).
Due to the token’s small market cap, even an investment of just a few hundred dollars could turn into millions of dollars, if the coin’s market cap continues to build momentum and surge.
Roman Storm, the co-founder of Tornado Cash, has taken a significant legal step by filing a motion to dismiss the accusations leveled against him.
Facing three charges, including operating a money laundering business and violating the International Emergency Economic Powers Act, Storm’s defense team strongly refutes these allegations.
On March 29, in a court document submitted to the United States District Court for the Southern District of New York, his lawyers articulated, “By no stretch can Mr. Storm be deemed to have conspired to launder funds.”
The defense highlights the timing and nature of Tornado Cash’s development, emphasizing that the platform was immutable and accessible to the public well before being utilized by sanctioned entities, notably the North Korean Lazarus Group.
This detail is crucial, as the Lazarus Group is accused of using Tornado Cash to evade U.S. sanctions, purportedly aiding North Korea’s nuclear ambitions.
Storm’s legal team further argued against the characterization of Tornado Cash as a money-transmitting business, pointing out the absence of transmission fees and the maintenance of user control over cryptocurrency.
They argue that Storm’s intention was to create a tool for financial privacy for legitimate cryptocurrency users, branding the charges as baseless and calling for their dismissal.
Storm’s plea of not guilty in September 2023 and his subsequent release on a $2 million bond underscore the complexities surrounding the case. Restrictions limit his movements to certain states, reflecting the ongoing scrutiny of crypto-mixing services by U.S. authorities.
The case against Storm emerges amidst broader legal actions against crypto mixers, such as the conviction of Roman Sterlingov, the founder of Bitcoin Fog, on similar charges.
Yet, the crypto community often defends the importance of mixers for their role in ensuring privacy and confidentiality in transactions.
Debate around Tornado Cash’s situation extended to the Arbitrum DAO, which considered but ultimately did not proceed with financial support for Storm’s defense.
This legal battle not only underscores the tensions between privacy advocates and regulatory efforts but also signals the ongoing challenge of navigating the legal landscape for cryptocurrency innovations.
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The United States District Court for the District of Wyoming recently made a decision against Custodia Bank, denying it a U.S. Federal Reserve master account and dismissing its request for a declaratory judgment.
Despite this setback, Custodia is determined to fight back and is considering all available options, including an appeal.
“We are reviewing the court’s decision and all of our options, including appeal,” said a spokesperson from Custodia Bank to Cointelegraph.
The rejection came through a ruling on March 29 by Judge Scott Skavdahl, who turned down Custodia’s effort to obtain a master account.
This type of account is crucial for financial institutions, granting them direct access to the Federal Reserve’s payment systems.
Custodia argued that being denied a master account would significantly impair its ability to provide custodial services for crypto-assets, likening its potential operational status without one to a “second-class citizen” dependent on intermediary banks.
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Judge Skavdahl also stated that Custodia does not have the right to compel the Federal Reserve Bank of Kansas City (FRBKC) to grant it a master account, favoring FRBKC with a summary judgment on this claim.
Custodia initially applied for a Federal Reserve master account in October 2020, aiming for access to the Fedwire network.
This network is vital for processing transactions, having handled over 193 million transactions in 2023 alone.
The Federal Reserve had earlier, in January 2023, denied Custodia’s membership application.
The denial was based on Custodia’s engagement with cryptocurrencies, which the Fed found to be inconsistent with the legal requirements for such an application.
Custodia Bank, as one of Wyoming’s pioneering Special Purpose Depository Institutions (SPDIs), sought to serve businesses involved with cryptocurrencies that struggled to obtain services from banks insured by the Federal Deposit Insurance Corporation due to their crypto dealings.
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CryptoQuant CEO Ki Young Ju has recently highlighted that the cost of mining Bitcoin using Antminer S19 XPs is projected to escalate from $40,000 to an eye-watering $80,000 following the Bitcoin halving event set for mid-April.
This adjustment occurs in the backdrop of the Bitcoin halving, an event that unfolds approximately every four years or after 210,000 blocks are mined, effectively slashing the mining reward by half.
This pivotal moment not only influences Bitcoin’s market value indirectly but also exerts a profound effect on miners’ operations by doubling the expenses required to mine the same quantity of Bitcoin.
Reflecting on the aftermath of the May 2020 halving, the cost for miners to sustain profitable operations surged past $30,000.
Concurrently, Bitcoin’s valuation soared to a record peak of $69,000 within the same cycle. As of April 6, the average expense tied to Bitcoin mining stands at $49,902, with the cryptocurrency’s market price breaching the $70,000 mark.
Post-halving on April 20, the mining cost is anticipated to climb beyond $80,000, necessitating a corresponding increase in Bitcoin’s market price for mining ventures to remain viable.
Historical patterns post-halving showcase significant surges in Bitcoin’s price, substantiating miners’ ability to maintain profitability despite initial apprehensions of potential insolvency.
Following the 2012, 2016, and 2020 halvings, Bitcoin’s value experienced monumental rises of approximately 9,000% to $1,162, 4,200% to $19,800, and 683% to $69,000, respectively.
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Such increments have consistently offset the heightened costs and technological demands placed on mining operations, rendering only the most efficient machines competitive.
In the immediate aftermath of halving events, the Bitcoin community often faces a phase of uncertainty, marked by a below-profit-price BTC value, increased sales of mining equipment, and the exit of smaller mining entities.
Nonetheless, this period typically precedes a market correction driven by reduced supply and heightened demand, eventually elevating Bitcoin’s price well above average mining costs, thus securing miners’ profit margins in the longer term.
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In a significant legal development, a group of former FTX investors, who initiated a class-action lawsuit claiming they were misled and defrauded, have reached a nearly $1.36 million settlement with key figures and promoters associated with the now-defunct cryptocurrency exchange.
The settlement, pending approval by a federal court in Miami as of March 27, involves FTX co-founder Zixiao “Gary” Wang, former engineering lead Nishad Singh, ex-CEO of Alameda Research Caroline Ellison, among others, including seven influencers and Daniel Friedberg, who served as FTX’s chief regulatory officer and FTX.US’s chief compliance officer.
The agreement entails that Wang, Singh, and Ellison will assist the plaintiffs by providing valuable information and documentation that could bolster the lawsuit against other defendants, including notable celebrities, enterprises, and venture capitalists implicated in the case.
Despite not admitting guilt to the allegations, their cooperation was deemed instrumental by the plaintiffs for its potential to reinforce their legal stance.
The trio, already implicated in fraud charges and having started to divulge critical evidence obtained during their tenure at FTX, will continue to share pertinent non-privileged materials and avail themselves for further testimonies and legal proceedings.
This cooperation extends to FTX’s bankruptcy proceedings, with an understanding that they will forfeit their assets for judicial determination regarding the restitution and allocation of funds to the victims.
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The settlements also covered negotiations with Daniel Friedberg, who has been actively contributing information to the plaintiffs and vowed to maintain this support.
Friedberg’s involvement came under a different light as he claimed unawareness of the fraud until its revelation, after which he resigned and reached out to law enforcement authorities.
Additionally, several online influencers settled their part of the lawsuit by agreeing to monetary contributions, with Brian Jung, Kevin Paffrath, Tom Nash, Graham Stephan, Jeremy LeFebvre, and Andrei Jikh collectively contributing over $350,000.
Notably, a significant but undisclosed settlement, inferred to be around $1 million, was attributed to American football star William Trevor Lawrence, based on the cumulative settlement amount minus the known contributions.
The conclusion of these settlements marks a crucial step in addressing the grievances of FTX’s investors, offering them a pathway to recovery while ensuring the implicated parties’ accountability without directly admitting to the alleged misconduct.
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The potential for Bitcoin‘s price to surge is a hot topic in the financial world, with some analysts predicting significant growth.
A notable analysis by a pseudonymous analyst, TechDev, shared with their 440,000 followers on social media, suggests that Bitcoin could see its price double from its current $69,000 within three months.
This prediction is based on Bitcoin’s performance in relation to the upper Bollinger Band, a technical indicator measuring market volatility.
According to TechDev, “every time Bitcoin had done this in the past, its price had doubled within the next three months.” If this pattern holds, Bitcoin could hit approximately $140,000 by July.
Bollinger Bands, used in this analysis, are a technical analysis tool that indicates the momentum and volatility of an asset within a specific range, with prices near the upper band typically signaling an overbought condition.
However, while Bollinger Bands can provide insights, they are more reactive than predictive, relying on past price actions and volatility.
Their effectiveness can vary significantly across different market conditions.
Beyond technical indicators, significant optimism about Bitcoin’s future price comes from influential figures in the financial sector.
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Anthony Scaramucci, CEO of SkyBridge Capital, voiced on CNBC his belief that Bitcoin’s value could soar to $170,000 during this cycle and potentially reach a market cap half that of the global gold market.
This implies a dramatic increase to around $400,000 per Bitcoin, given the current market caps of Bitcoin and gold.
Scaramucci highlighted the role of recently approved spot Bitcoin exchange-traded funds (ETFs) in driving up demand, noting that nine out of ten such ETFs have already seen over $12 billion in net inflows.
Furthermore, the anticipation surrounding the upcoming Bitcoin halving, expected on April 20, is seen as a significant catalyst for price appreciation.
This sentiment is echoed by Ripple CEO Brad Garlinghouse, who expects the value of the entire crypto sector to double by year’s end, driven by factors like halving, regulatory developments, and the growing popularity of Bitcoin ETFs.
Garlinghouse, with his extensive experience in the industry, remains “very optimistic” about the sector’s growth potential, particularly with the entry of institutional money facilitated by ETFs.
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The Monetary Authority of Singapore (MAS) has made a significant move to broaden the regulatory framework surrounding digital payment token (DPT) service providers under the country’s Payment Services Act (PS Act).
This initiative aims to incorporate a variety of activities within the regulatory perimeter, including the provision of custodial services for DPTs, the facilitation of token transfers and exchanges, and the enabling of cross-border money transfers.
The MAS emphasized that these regulations would apply even when the funds are not physically handled by the service provider or when the transactions do not directly involve money entering or leaving Singapore.
With these amendments, the MAS seeks to strengthen its oversight by introducing additional requirements for DPT service providers, particularly in areas crucial to maintaining a secure financial environment.
The authority stated, “The amendments will empower MAS to impose requirements relating to anti-money laundering and countering the financing of terrorism, user protection and financial stability on DPT service providers.”
This regulatory expansion will be phased in starting April 4, with transitional provisions set to support entities navigating the new landscape.
Affected firms are mandated to communicate with MAS within a 30-day window and must secure a license within six months from this date to maintain operational status during the review process.
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The MAS has also made it clear that entities failing to meet these stipulations will be compelled to discontinue their operations immediately upon the enactment of these changes.
Moreover, the MAS plans to introduce further amendments aimed at bolstering the safeguarding of customer assets among payment token service providers.
These additional rules will address the segregation of customer assets, their safekeeping in trust accounts, and the maintenance of detailed records to enhance the security of these assets.
Such protective measures are slated for implementation six months after April 4.
The tightening of regulatory controls has not deterred crypto companies from entering the Singapore market, with prominent players like Crypto.com, Coinbase, and Ripple successfully obtaining full payment institution licenses.
Specifically, Crypto.com secured its Major Payment Institution (MPI) license in June 2023, Ripple was granted formal approval on October 4, and Coinbase achieved full MPI licensure on October 2, 2023, underscoring Singapore’s appeal as a crypto-friendly financial hub.
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Canada has taken a significant step to bolster its artificial intelligence (AI) sector by allocating $1.76 billion (2.4 billion Canadian dollars) from its federal budget.
This move aims to sustain the nation’s “competitive edge” in the rapidly evolving field of AI.
A suite of new initiatives has been announced, focusing on supporting AI-related startups, medium-sized enterprises, and research entities, all in an effort to “secure Canada’s AI advantage.”
Canadian Prime Minister Justin Trudeau highlighted the transformative potential of generative AI, emphasizing its capability to unlock considerable economic benefits for Canada, enhance productivity, and reduce the necessity for workers to engage in monotonous tasks.
“The rapid advance of generative AI today will unlock immense economic potential for Canada, significantly improving productivity and reducing the time workers have to spend on repetitive tasks,” Trudeau stated on April 7.
The funding package includes a $1.47 billion investment aimed at augmenting computing capabilities and other AI-related infrastructures via the new AI Compute Access Fund.
This initiative is designed to support the nation’s premier AI researchers and startups.
Furthermore, an additional $147 million will be allocated to AI startups within the agriculture, clean technology, healthcare, and manufacturing sectors.
Meanwhile, $73.5 million is set aside to aid small and medium-sized AI scale-up companies in enhancing productivity.
Trudeau also mentioned the positive impact AI has had in areas such as drug discovery, energy efficiency, and housing innovation, acknowledging the technology’s role in driving innovation, productivity, and economic growth.
Moreover, a portion of the fund is dedicated to addressing the workforce adjustments necessitated by the AI surge, with up to $36.8 million directed under Canada’s Sectoral Workforce Solutions Program for the re-training and re-skilling of workers across diverse sectors.
The film and animation industries are identified as particularly vulnerable to the disruptions caused by generative AI, a concern highlighted by a report from CVL Economics.
To further ensure the safe development and deployment of AI technologies, $36.8 million will be utilized to establish a Canadian AI Safety Institute.
Highlighting its pioneering role in AI governance, Canada introduced the Pan-Canadian Artificial Intelligence Strategy in 2017, marking its ambition to lead in AI adoption through focused research and commercialization efforts.
The country’s AI market is valued at approximately $7.4 billion, contrasting with the United States’ $106 billion market.
Efforts to enhance Canada’s AI landscape include engaging AI firms from the European Union and supporting leading startups like Tenstorrent, which recently partnered with Samsung to advance AI chiplet technology, following a significant funding round.
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Bitcoin has made a lot of progress in the last couple of years, with the emergence of Layer-2 projects such as Stacks, Rootstock and Merlin Network enhancing its capabilities to support basic smart contract functionality.
Those projects are striving to create a new generation of Bitcoin-native DeFi applications, play-to-earn games and NFTs, but they face a number of challenges in pursuing this dream. Many of these new Bitcoin L2s are unable to interoperate with each other, leading to problems around ecosystem fragmentation.
It’s with these challenges in mind that a new project, which leverages the unique capabilities of the EOS blockchain, has emerged, to streamline the flow of data between Bitcoin and its nascent ecosystem of L2s.
A hybrid consensus mechanism to link Bitcoin’s L2s
That new project presents itself as exSat, and it is building what it describes as a “Docking Layer” for Bitcoin’s ecosystem. It utilizes a revolutionary hybrid consensus mechanism that encompasses the traditional Proof-of-Work, the Proof-of-Stake algorithm used by Ethereum and other chains and the Delegated Proof-of-Stake mechanism pioneered by projects such as Polkadot.
exSat’s plan is to facilitate direct interaction between Bitcoin and its L2s without compromising the inherent security of Bitcoin’s original blockchain.
The exSat architecture relies on a system of both Synchronizers and Validators. The Synchronizers’ role is to supply a bridge between Bitcoin’s blockchain network and exSat (and hence, all of Bitcoin’s L2s), ensuring that data and transactions can be processed quickly and accurately. According to exSat, existing Bitcoin miners will take on this role, with their work secured by Bitcoin’s standard PoW consensus mechanism. For participating, they’ll be rewarded with exSat’s native XSAT tokens for processing each block.
As for the Validators, their job is to verify the data that’s processed by the Synchronizers. This is where the PoS consensus mechanism comes in, as anyone will be able to become a Validator simply by staking both BTC and XSAT tokens. There’s quite a hefty barrier to entry though, as exSat requires a minimum 100 BTC stake to participate, plus another XSAT stake to become eligible for the XSAT rewards.
On-Chain Data Storage and EVM Compatibility
There are few other components to this system, with the most notable one being its Data Consensus Extension Protocol, which makes it possible for exSat to make use of EOS’s blockchain, supporting on-chain data storage with high-speed access for BTC assets such as BTC tokens, Runes, BRC20, BRC217 and Ordinals.
Another element of exSat’s architecture is its decentralized state data indexing platform for Bitcoin-native assets, which is a fundamental ingredient for smart contracts, EVM compatibility and trustless interactions. Finally, exSat has created its very own smart contract platform that leverages its EVM interoperability to enable universal gas fees for Bitcoin assets.
Combined, the various features of exSat’s architecture make it possible for Bitcoin and any L2 network to interoperate seamlessly with one another. At the same time, it supports enhanced smart contract functionality required for the next-generation of Bitcoin-native dApps.
Accelerating Bitcoin’s Transition
What exSat is building sounds ambitious, yet it also appears to be very well thought out, catering to a real need that will only become more acute as Bitcoin’s L2 ecosystem grows.
Those L2 networks have already propelled Bitcoin on an evolutionary path that will transform its utility and, perhaps, ultimately help it compete with and maybe even surpass Ethereum as the world’s number one smart contract chain. exSat can play a pivotal role in accelerating that translition.