Bitcoin - Page 109

The total count of Bitcoin wallet addresses possessing at least one BTC has crossed the milestone of one million.

Data from Glassnode confirms that this benchmark was achieved on May 13.

A significant rise in wallet addresses owning a minimum of one Bitcoin was observed last year as the cryptocurrency’s price plummeted by over 65%. The most prominent increases happened during a severe market downturn in June and from November 11, following the bankruptcy declaration by FTX.

As Bitcoin’s price declined from its peak in November 2021, approximately 190,000 “wholecoiners” joined the ranks from early February 2022.

Glassnode co-founder Negentropic advised his 54,000 Twitter followers that the optimal time to invest in Bitcoin is during market distress.

This advice comes amidst several major bank failures in the U.S. and potential halting of interest rate hikes by the Federal Reserve. These factors contribute to Glassnode’s continued belief in Bitcoin’s potential to reach $35,000 in the mid-term.

While the milestone of “one million” is notable, it’s essential to remember that a single Bitcoin wallet address doesn’t necessarily equate to one individual.

Many Bitcoin investors manage multiple addresses, and others belong to major entities like cryptocurrency exchanges and investment firms that often hold substantial Bitcoin quantities.

CoinGlass, a crypto analytics provider, estimates that out of the roughly 19 million Bitcoin in circulation, 1.89 million BTC — valued at $50.7 billion — are held by large centralized exchanges such as Binance and Coinbase.

Moreover, Glassnode’s estimates suggest that an astonishing 3 million BTC — equivalent to $80.4 billion and 17% of the total circulating supply — are irretrievably lost. These estimations are based on various data sources, including BTC sent to “burn addresses,” wallets with lost keys, and substantial accounts that have been inactive for over a decade.

The US Department of Justice (DOJ) is intensifying its efforts against hackers and exploiters in the Decentralized Finance (DeFi) sector, following a significant increase in illicit cryptocurrency activities over the past four years.

Eun Young Choi, the head of the DOJ’s National Cryptocurrency Enforcement Team (NCET), shared in a Financial Times report on May 15 that the DOJ is zeroing in on thefts and cyber-attacks related to DeFi, with a special focus on “chain bridges.”

Choi highlighted that this is a considerable concern for the DOJ, especially since North Korean state-sponsored hackers have been identified as major players in this area.

Cointelegraph reported in February that North Korean hackers had pilfered an estimated $630 million to $1 billion in cryptocurrency assets in 2022 alone.

Choi, who has nearly ten years of prosecutorial experience with the DOJ, was named the inaugural director of the NCET in February 2022. The DOJ stated at that time that the NCET would act as the primary hub for the department in dealing with matters related to cryptocurrency, cybercrime, money laundering, and asset forfeiture.

The DOJ underscored that they would specifically target “mixing and tumbling services,” but there was no mention of DeFi platforms in their initial announcement.

Speaking at the recent Financial Times Crypto and Digital Assets Summit, Choi reaffirmed that the DOJ is targeting cryptocurrency companies that either commit crimes or knowingly permit such activities to occur, thereby facilitating money laundering.

Choi underlined that focusing on the platforms where these activities originate could have a multiplying effect by making it harder for criminals to reap the benefits of their illicit activities.

She also noted that the extent and variety of illicit uses of digital assets have significantly increased in the past four years.

Riot Platforms, previously known as Riot Blockchain, a crypto mining company, has initiated legal proceedings against Rhodium Enterprises, a Bitcoin miner based in Texas. The dispute involves recovering an alleged unpaid sum exceeding $26 million in mining facility fees.

Riot Platforms, in its Q1 2023 financial statement released on May 10, claimed that Rhodium violated their contract by not meeting the payment obligations for hosting and service fees. These fees were related to the use of Whinstone’s Bitcoin mining facilities, which Riot Platforms fully owns.

On May 2, a legal petition was lodged against Rhodium Enterprises in the Milam County Court in Texas. The petition seeks to recoup “over $26 million” and requests reimbursement for any legal expenses incurred.

In addition, Riot has asked for authorization to end “certain hosting agreements” with Rhodium. They also proposed that they should not be obligated to pay back any remaining power credits after stopping these services.

Riot Platforms acknowledged the uncertainty surrounding the possible recovery of these unpaid fees at this stage of the litigation. They stated:

“At this early stage of the litigation, it’s not possible to reasonably predict the probability of a negative outcome or the extent of such an outcome, if it happens.”

According to the report, Rhodium was served on May 8 and given until May 30 to respond.

The report also disclosed that Riot Platforms had successfully mined “2,115 Bitcoins” in the first quarter of 2023, marking a 50.5% rise from Q1 2022.

The report clarified that Riot Platforms had no involvement with recent bank failures, stating:

“We have no banking relationships with Silicon Valley Bank, Silvergate Bank, or First Republic Bank, and currently we keep our cash and cash equivalents in several banking institutions.”

Riot Platforms anticipates ongoing challenges for crypto mining businesses in 2023. This is due to the “significant drop in Bitcoin’s value” and “other national and global macroeconomic factors.”

However, Riot believes its “relative position” in the industry, coupled with its “liquidity and lack of long-term debt,” places it in a strong position to “benefit from such consolidation.”

Cryptocurrency exchange Binance announced via Twitter on May 12 that it is ceasing operations in Canada. The decision is a “proactive” response to the new regulatory guidelines enforced by Canadian authorities, which are significantly impacting the nation’s cryptocurrency sector.

This move makes Binance the latest among several other cryptocurrency entities to exit Canada, following the implementation of new rules by the Canadian Securities Administrators (CSA) on February 22. These rules mandate that all crypto firms must submit new preregistration undertakings and comply with additional restrictions.

Despite having reportedly submitted a new preregistration undertaking, Binance clarified in a tweet: “Regrettably, new guidelines related to stablecoins and investor limits on crypto exchanges make it untenable for Binance to continue operations in the Canadian market at this time.”

The newly introduced CSA rules forbid companies from allowing Canadian clients to enter into contracts to purchase and sell any crypto asset classified as a security and/or a derivative, and they categorize stablecoins as securities.

Previous to Binance’s announcement, OKX exited the Canadian market in March, followed by decentralized exchange dYdX in April and blockchain fintech Paxos afterward.

An email from Binance to its Canadian users, as seen by Cointelegraph, asked them to settle their open positions by September 30, 2023. It cautioned that, “Starting October 1, 2023, Canadian customers will be transitioned to liquidation only mode.”

Binance further stated: “Although we disagree with the new guidelines, we intend to remain in dialogue with Canadian regulators in the hope of establishing a comprehensive, thoughtful regulatory framework.”

Binance had previously been operating in all Canadian provinces and territories, except Ontario. It had withdrawn from this province in March 2022, following an extended dispute with its regulatory authorities.

However, not all is doom and gloom for Canadian crypto enthusiasts. Kraken, another major player in the space, submitted a new preregistration undertaking in March and has pledged to maintain its operations in Canada. According to the CSA, there are 11 platforms “Authorized to Do Business with Canadians.”

Cryptocurrency exchange OKX has launched an audacious new marketing campaign, encouraging a comprehensive overhaul of existing financial and digital systems. The campaign subtly takes aim at the American exchange Coinbase and the wider conventional finance sector.

OKX unveiled its latest high-quality commercial, with its CMO, Haider Rafique, explaining the firm’s conviction in a Cointelegraph interview that blockchain technology is crucial for revamping financial infrastructure and promoting digital ownership.

During Rafique’s tenure, OKX has engaged in significant partnerships and daring ad campaigns with entities such as Manchester City and the McLaren Formula1 team, thereby bringing cryptocurrencies and Web3 offerings to broad global audiences.

The “Rewrite the System” initiative uses potent imagery to underscore issues like inflation, data breaches, and censorship as evidence of a flawed system. Rafique stressed that discussions about updating existing financial and digital structures do not address the deep-seated problems that inspired the campaign:

“The current system is not really designed to be updated and then updated into a system that can really solve some of the problems that the entire system has created.”

Several events over the past year have revealed the deficiencies of current financial systems, as well as the lapses of conventional finance and decentralized finance (DeFi) entities.

The notorious fall of FTX and the subsequent arrest of its former CEO, Sam Bankman-Fried, tarnished the cryptocurrency sector’s reputation. Traditional finance institutions, meanwhile, grappled with their own crises in a high-inflation economy, leading to the folding of Silicon Valley Bank, Silvergate Bank, and Signature Bank.

Rafique is of the opinion that these ongoing system failures highlight the stress on the financial ecosystem. He believes that these events will demonstrate how blockchain-based software offers individuals more control over their financial and digital independence:

“Our hope is that we can give the tooling to people that Web3 starts with, ultimately downloading software on your machine or your phone that enables you to be your own bank.”

The campaign also emphasizes interoperability as a key element in the case for blockchain-based, Web3 tools to revolutionize financial systems and platforms. Rafique cites the isolated nature and incompatibility of Google’s Play Store and Apple’s App Store as an example where blockchain-based applications could offer superior interoperability:

“Crypto and blockchain-based apps are actually designed to connect with each other and drive their interoperability.”

OKX aims to offer a wallet service that connects public chains, simplifying the management of digital assets, and exemplifying the interoperability inherent in blockchain technology:

“We want to connect all crypto ecosystems together so you can hop from one place to another place or another place very easily, but also at very low transaction costs.”

Rafique is firm in his belief that OKX’s advertising efforts, which include engaging audiences through partnerships in diverse markets, have shaped the exchange’s image.

According to a recent report by Goldman Sachs, an increasing number of home offices are investing in digital assets, with 32% now participating in the market. This trend demonstrates the growing interest and adoption of cryptocurrencies and other digital assets by these private wealth management entities.

The report highlights that these investments are driven by a desire to diversify their portfolios and protect their wealth against economic uncertainties. Furthermore, the increasing number of institutional investors entering the market has helped solidify the legitimacy of digital assets as an investment class.

As part of the study, Goldman Sachs surveyed home offices across the globe, including those in the United States, Europe, Asia, and the Middle East. The results showed that while some home offices are still hesitant about the risks associated with digital assets, a significant number are embracing the opportunity to invest in this emerging asset class.

In addition to the 32% of home offices investing in digital assets, the study found that many are also considering investments in blockchain technology and related start-ups. This interest suggests that these investors recognize the potential for digital asset technology to revolutionize various industries and provide significant long-term growth opportunities.

The rising interest in digital assets among home offices indicates a growing level of trust in this asset class, and is a testament to the increasing recognition of cryptocurrencies and blockchain technology as valuable investments for private wealth management.

Amid concerns about a potential denial-of-service (DoS) attack on the Bitcoin network, several prominent Bitcoin maximalists have stepped forward to allay fears, insisting that the network remains secure and robust.

Rumors of a potential DoS attack began circulating when users started noticing delays in Bitcoin transactions. This fueled speculation that malicious actors were attempting to flood the network with low-fee transactions in order to slow it down.

However, Bitcoin maximalists were quick to refute these claims, emphasizing that the network is designed to withstand such attacks. These experts argue that the recent congestion is primarily due to an increase in legitimate trading activities, as well as a higher demand for block space.

Notably, Bitcoin developer Jimmy Song took to Twitter to address the concerns, stating that the network is not under attack and that the delayed transactions are simply a result of increased demand. Song further clarified that Bitcoin’s sophisticated fee system is designed to prevent DoS attacks by prioritizing transactions with higher fees, ensuring that the network remains functional even during periods of high demand.

Other prominent figures in the Bitcoin community, such as Adam Back, CEO of Blockstream, and Jameson Lopp, CTO of Casa, also chimed in to support this stance. They emphasized that the Bitcoin network has demonstrated its resilience over the years and that it is highly unlikely that a DoS attack could be successful in disrupting the network.

While the recent congestion on the Bitcoin network has raised concerns, the reassurances from Bitcoin maximalists have helped to ease fears and reinforce the network’s reputation for security and reliability. Users are encouraged to remain patient during periods of high demand and adjust their transaction fees accordingly to ensure timely processing.

For the second time within a 12-hour timeframe, Binance, the world’s largest cryptocurrency exchange by trading volume, has temporarily halted Bitcoin (BTC) withdrawals. The exchange has assured its users that the suspension is only temporary and is due to network congestion.

On May 7th, Binance first announced that it had suspended Bitcoin withdrawals for a brief period. The exchange cited a “large backlog of outgoing BTC transactions” as the reason for the halt. Within a few hours, the platform resumed its withdrawal services, but only to suspend them again later in the day.

Binance’s CEO, Changpeng Zhao, took to Twitter to address the situation, explaining that the suspensions were necessary to address the congestion and ensure the smooth functioning of the platform. He assured users that their funds were safe and that the situation would be resolved as quickly as possible.

The suspension of Bitcoin withdrawals on Binance has raised concerns among users and the wider cryptocurrency community, with some speculating about the possibility of a security breach or other issues. However, no evidence has been found to support these claims, and Binance has maintained that the issue is purely related to network congestion.

In the past, Binance has experienced similar issues with other cryptocurrencies, such as Ethereum, due to increased trading volumes and congestion on the networks. The exchange has always managed to resolve these issues swiftly, and it is expected that the current situation with Bitcoin withdrawals will be no different.

While the temporary suspension of Bitcoin withdrawals on Binance may cause inconvenience for some users, the platform’s commitment to addressing the issue and ensuring the safety of its users’ funds has been appreciated by the community.