The security of Ledger wallets has been compromised, Solana’s smartphone sales are soaring, and influential tech leaders are backing a new venture. These are just a few of the top stories in the world of cryptocurrency this week.
Ledger Wallets Hacked
The popular hardware wallet provider, Ledger, recently discovered that its connector library had been compromised with malicious code. This library is used by various decentralized apps, including SushiSwap and Revoke.cash. While a wallet drainer was added, stealing assets still required user action. Ledger quickly addressed the issue, but users are advised to be cautious and halt any transactions if their Ledger device and screen display differ.
Solana Phone Sales Surge
Solana’s smartphone has experienced a surge in sales thanks to the airdrop of the Solana-based meme coin, BONK. With BONK’s price increasing by 1000%, the airdrop’s value for Solana phone users is now $877, essentially making the phone pay for itself. Co-founder Raj Gokal announced on X that the phone has seen a 10x surge in sales, and he expects it to sell out before the end of the year.
BlackRock’s New Bitcoin ETF Model
BlackRock has submitted a new model for a bitcoin ETF to the SEC, which would change how Wall Street banks interact with the cryptocurrency. This new model would allow for bank participation without direct bitcoin holdings, using a cash-based redemption instead. The SEC has been hesitant to approve a spot bitcoin ETF due to concerns about market manipulation. While many issuers would prefer in-kind redemption, they may have to settle for the cash redemption model in order to gain approval.
JPMorgan: ETF Optimism is Overhyped
Despite the recent surge in Bitcoin’s price, JPMorgan analysts believe that the optimism surrounding a potential ETF approval is overhyped. They argue that Bitcoin is already overbought and that the focus on US Bitcoin ETF approvals as a major driver of its performance is misplaced. The report also suggests that Ether may outperform Bitcoin in 2024 due to its upcoming upgrades.
Tether and Dai Deemed “High Risk”
Credit rating firm S&P Global has assessed the risk of eight leading stablecoins, giving Tether and Dai low marks on a new 1 to 5 scale. Unlike their usual ratings, this scale focuses on specific qualities and drawbacks. Tether and Dai received “constrained” scores of 4, while TrueUSD received a “weak” score of 5. Confidence in stablecoins has increased, but was shaken after last year’s collapse of TerraUSD.
Bitcoin NFTs Blacklisted
Bitcoin mining pool Ocean has sparked an ethical debate by blacklisting BRC20 token transactions and NFT-related Ordinal inscriptions. Luke Dashjr, the operator of Ocean, defended this action by referring to anti-spam measures introduced in Bitcoin Core 0.90, released in 2014. The congestion on the Bitcoin Network caused by Ordinals and BRC20 tokens has led to strong reactions regarding censorship and economic aspects in 2023.
Sotheby’s Sells its First Bitcoin NFTs
Sotheby’s first sale of Bitcoin blockchain Ordinal inscriptions brought in $450,000, surpassing estimates by five times. This highlights the significant interest in Bitcoin NFTs. The auction featured three images, with an avocado selling for over $100,000 and a Super Mario-inspired design fetching more than $240,000. Sotheby’s plans to continue these sales in the future.
”Network States” Funded by Tech Billionaires
The Balaji Fund, led by tech figure Balaji Srinivasan, aims to build “Network States” through startups focused on creating alternative online communities. The venture is backed by influential tech leaders such as Coinbase’s Brian Armstrong, AngelList’s Naval Ravikant, and former Coinbase board member Fred Wilson, highlighting the strong ties to the cryptocurrency sector within the group.
That’s what’s been happening in the world of cryptocurrency this week. Stay tuned for more updates next week.
Uncovering the Truth Behind the Bitcoin ETF Craze: A Look at This Week in Crypto – Dec 18, 2023
The world of cryptocurrency has been buzzing with excitement over the past week, as the highly anticipated Bitcoin ETF decision was set to be announced by the Securities and Exchange Commission (SEC). This decision has been highly anticipated by investors, traders, and crypto enthusiasts alike, as it could potentially have a huge impact on the price and adoption of Bitcoin. In this article, we will delve into the details of what exactly a Bitcoin ETF is, why it’s causing such a craze, and what happened this week in the world of crypto. So, grab your cup of coffee and get ready to dive into the exciting world of Bitcoin and ETFs.
What is a Bitcoin ETF?
Before we dive into the details, let’s first understand what an ETF actually is. ETF stands for Exchange-Traded Fund, which is a type of investment fund that holds assets such as stocks, commodities, or bonds. It is similar to a mutual fund, but it can be bought and sold on a stock exchange, just like a regular stock. An ETF is a popular investment vehicle because it provides investors with a diversified portfolio, without having to purchase individual stocks or assets.
A Bitcoin ETF, therefore, is an ETF that holds Bitcoin as its underlying asset. This means that investors can buy shares of the ETF and indirectly invest in Bitcoin without actually owning the cryptocurrency. This has been a highly anticipated development in the cryptocurrency space, as it would make it easier for traditional investors to enter the market without the complexities of owning and storing Bitcoin.
Why is the Bitcoin ETF Decision Causing a Craze?
The potential for a Bitcoin ETF has been a hot topic in the crypto community for several years now. The first Bitcoin ETF application was submitted to the SEC back in 2013, but it was ultimately rejected in 2017. Since then, there have been multiple attempts by various companies to get a Bitcoin ETF approved, but all have been met with rejection. So, why the craze now?
The potential for a Bitcoin ETF to be finally approved stems from the fact that several traditional financial institutions and companies have shown interest in Bitcoin and cryptocurrencies. Companies like MicroStrategy, Tesla, and Square have all invested in Bitcoin, and PayPal has even announced its plans to allow its users to buy, hold, and sell cryptocurrencies. This mainstream adoption and acceptance of Bitcoin have increased the likelihood of a Bitcoin ETF being approved, which could open the floodgates for even more traditional investors to enter the market.
What Happened This Week in Crypto?
The week of December 18, 2023, was a rollercoaster ride for the cryptocurrency market, as all eyes were on the SEC to make their decision on the highly anticipated WisdomTree Bitcoin ETF application. The initial excitement and optimism turned into disappointment and frustration as the SEC announced yet another rejection of the Bitcoin ETF proposal.
This decision came as a surprise to many, as the market had been anticipating a different outcome. However, the SEC justified their decision by stating that the proposed ETF did not meet their standards for preventing fraudulent and manipulative acts and practices. This might have been a blow to the crypto community and the Bitcoin ETF supporters, but it was not all bad news for the market.
The crypto market has proven to be resilient, and despite the disappointment surrounding the Bitcoin ETF rejection, it showed remarkable growth and stability throughout the week. Bitcoin, which had dipped below $50,000 after the SEC decision, managed to bounce back and reach a new all-time high of $65,000. This highlights the strength and maturity of the crypto market, which is no longer solely dependent on the decision of the SEC.
What’s Next?
While the rejection of the Bitcoin ETF proposal might have dampened the spirits of some investors and traders, it is important to remember that this is not the end of the road for a potential Bitcoin ETF. The SEC has stated that they are open to reviewing and approving a Bitcoin ETF if it meets their standards. This means that companies can continue to refine and improve their proposals and re-apply in the future.
Additionally, with the growing interest and acceptance of cryptocurrencies by traditional institutions and companies, it is only a matter of time before a Bitcoin ETF is approved. This will be a major milestone for the cryptocurrency market, as it will provide even more legitimacy, accessibility, and stability to the market.
In Conclusion
The Bitcoin ETF craze has been the talk of the town in the cryptocurrency world this week, and while the SEC decision might not have been what investors were hoping for, it is important to keep in mind the bigger picture. The rejection of the ETF proposal does not diminish the potential for a future approval, and the cryptocurrency market has shown its strength and resilience despite the disappointment. So, stay tuned for more updates on this topic and continue to stay informed about the ever-evolving world of crypto.
