🔮 A Break From ETFs, Going Full Circle, New Solana Phone, Goodbye Petro

Token Specific News

Better Call SOL

Solana Mobile is gearing up to launch a second smartphone at a more affordable price point, according to an insider. The upcoming device will share fundamental features with its predecessor, Saga, which gained unexpected popularity due to its connection with the meme coin BONK. While the original phone, equipped with a crypto wallet and an Android-based "dApp store," initially priced at $1000, it faced pricing adjustments amid sales challenges. Despite the struggles, Saga's value has surged, with recent bids reaching $3,200 on eBay. The new smartphone aims to maintain essential features while offering a lower cost option for consumers.

Washed Out From Wash Trading

Wash trading, prevalent in the NFT market, gained momentum with the launch of LooksRare in early 2022, challenging OpenSea's dominance. New NFT platforms, like X2Y2, followed suit, enticing users with token incentives. Users earned tokens through various platform activities, fueling a surge in wash trading—non-genuine trades for reward earnings. Although LooksRare and X2Y2 couldn't match OpenSea's organic volume, they contributed significantly to wash trading, peaking at over 80%. Over time, marketplaces implemented stricter reward restrictions to deter wash trading, leading to a decline. The final blow came when platforms, like LooksRare and X2Y2, ceased trading rewards support in 2023, causing wash trading on Ethereum to drop below 2%, reaching levels not seen since before the wash trading trend began.

Source: The Block

Solana Meme Coins Surge and Plummet Following SEC's Approval of Bitcoin ETF

Following the historic approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC) in the United States, Solana enthusiasts swiftly created meme coins tied to ETF themes. The ETF token on the Solana-based Raydium platform saw an astonishing 30,800% spike to a valuation exceeding two cents, accumulating $775,000 in trading volume within hours. However, the euphoria was short-lived as the meme coin experienced significant fluctuations, shedding much of its gains and currently holding a market capitalization of around $93,000. This trend of creating meme coins around breaking news, exemplified by the recent BTCETF token, highlights the volatile nature and high risks associated with such coins. See similar: Jupiter Finally Sets a Date for JUP Airdrop, Teases Meme Coin Drop on Solana

Gas, Gas, Gas: Vitalik Buterin Proposes 33% Increase in Ethereum's Gas Limit to Ease Transaction Congestion

Vitalik Buterin, co-founder of Ethereum, has suggested a 33% increase in Ethereum's gas limit to address transaction congestion and potentially reduce fees. During an Ask Me Anything session on Reddit featuring the Ethereum Foundation Research group, Buterin noted that the gas limit hasn't been raised in three years, marking the longest period in the protocol's history. The proposed update, which wouldn't require a fork, relies on validators adjusting their nodes, albeit with increased operational costs.

PayPal Meets PayPool

PayPal is collaborating with crypto solutions provider Trident Digital to enhance liquidity and utilization of its PYUSD stablecoin in DeFi. Trident establishes a liquidity pool on Curve Finance, offering over $132,000 in incentives to liquidity providers for PYUSD on Curve. Trident proposes integration with Aave, a lending protocol, for users to lend and borrow against PYUSD, receiving overwhelming support in a preliminary vote by Aave token holders. These efforts result in a notable 33% increase in PYUSD's circulating supply to over 294 million in the past month, accompanied by rising trading volumes.

Source: Dune

Chainlink Integrates Circle's Cross-Chain Transfer Protocol for Seamless USDC Transfers

Chainlink's Cross-Chain Interoperability Protocol has successfully integrated Circle's Cross-Chain Transfer Protocol (CCTP), facilitating effortless USDC transfers across various blockchain networks. The collaboration aims to enhance the adoption of stablecoins in diverse cross-chain use cases, such as payments and DeFi interactions. The integrated chains include Ethereum, Arbitrum, Optimism, Avalanche, and Base mainnets, with plans to expand to additional chains in the near future.

Regulation

Genesis Global Trading Settles for $8 Million Over Violations, Surrenders BitLicense in New York

Genesis Global Trading, a subsidiary of Digital Currency Group, will pay $8 million to the state of New York following allegations of rule violations related to vulnerabilities to illicit activity and cybersecurity threats. The settlement with the New York State Department of Financial Services requires Genesis Global Trading to cease operations in the state and surrender its BitLicense. The regulatory action cited the company's failure to maintain a functional compliance program, exposing both the company and its customers to potential threats. Multiple violations, including deficiencies in anti-money laundering compliance, suspicious activity reports, and cybersecurity, were identified after routine examinations and an enforcement investigation. In addition, Digital Currency Group is reportedly planning to file a motion to dismiss a lawsuit with the New York Attorney General's office related to allegations of defrauding New York investors of over $1 billion.

Venezuela to Terminate Petro Cryptocurrency after Five Years of Controversy

Venezuela is set to discontinue its Petro cryptocurrency on Monday, more than five years since its launch in February 2018, as reported by messages on the Patria Platform—the sole trading platform for Petro. President Nicolas Maduro introduced Petro (PTR) to bolster the bolívar, Venezuela's currency, amidst economic turmoil intensified by U.S. sanctions. The token, backed by the country's substantial oil reserves, faced controversy from the start. The opposition-controlled congress deemed borrowing against oil reserves illegal, and in 2019, U.S. authorities sanctioned a Russian bank for financing Petro.

Hope for Ethereum Spot ETF Dampened as SEC Chair Gensler Signals Caution

Following SEC's approval of 10 spot Bitcoin ETFs, the Ethereum community's optimism for a spot ETH ETF is tempered by SEC Chair Gary Gensler's cautious remarks. Gensler, in a CNBC interview, specified the actions as pertaining to Bitcoin, considering it a non-security commodity. While avoiding direct comments on an Ethereum ETF, Gensler's language implies a distinction between Bitcoin as a commodity and other cryptocurrencies, potentially including Ethereum, as securities. Despite Gensler's consistent view of Bitcoin as a commodity, Ethereum's official status remains undeclared. Past legal filings suggest SEC oversight of Ethereum transactions. The approval of an Ethereum futures ETF and evolving legal circumstances may influence the SEC's position on a spot Ethereum ETF. However, Gensler's cautious approach raises uncertainties about Ethereum's regulatory journey.

Circle Goes Traditional

Circle, the issuer of the USDC stablecoin, has revealed plans for an initial public offering (IPO), proceeding despite market challenges. The IPO is expected post-SEC review, contingent on market conditions, potentially occurring in H1 2024. This move follows a challenging market period due to high interest rates and volatility. In addition to the IPO plans, Circle's report underscores the increasing role of USDC in facilitating remittances and addressing trade finance gaps in the Asia-Pacific region. According to Circle, the region represents 29% of global digital currency value received, with remittance transfers being a significant component. Circle's partnership with Coins.ph aims to capture a share of this business, estimated at around $36 billion annually. Furthermore, USDC is reported to assist in closing the region's $510 billion trade finance gap, particularly aiding emerging markets with capital outflow restrictions

Other Domestic Regulation Updates

• Ordinalized Again: Gensler's Bitcoin ETF Retreat Immortalized As Inscription
• Sen. Elizabeth Warren returned to the well-worn regulatory warpath in the wake of the SEC's action, declaring the decision "wrong on the law."
• SEC and Ripple ‘at an impasse’ as legal drama moves closer to an end
• Circle, the issuer of the USDC stablecoin, is looking to go public

Other International Regulation Updates

• Bitcoin ETF approvals may have bigger impact on Asia, says Animoca co-founder Yat Siu

• Bitcoin ETF approvals may have bigger impact on Asia, says Animoca co-founder Yat Siu
• United Nations identifies USDT as prominent choice for fraud in SEA: FT
•  Do Kwon is appealing his extradition to the U.S. again

Pain & Gain

Pain

• Someone attempted to steal $15 billion using XRP Ledger
• Hackers Steal Over $4 Million in Fake Airdrops and Other Scams on Solana
• GameStop is ditching its NFT marketplace, just three years after first hinting at its interest in the sector

Gain

• Speculation over potential Ethereum ETF approval in May sends ether price surging
• Hong Kong’s HashKey secures $100 million in Series A round at $1.2 billion valuation
• HashKey Group, which operates the Hong Kong-based crypto exchange, has “nearly” met its $100 million fundraising target
• Solana Game 'Nyan Heroes' Hits Epic Store Ahead of Airdrop
• CoinShares exercises option to acquire Valkyrie Funds following spot bitcoin ETF approval
• Ripple commits to buying back $285M worth of shares