After over three years of inactivity, cryptocurrency wallets linked to the Plus Token Ponzi scheme have moved $2 billion in ETH, potentially impacting the market.
US Ethereum ETFs Posted $49M Inflows As Investors Bought The Dip Amidst Market Chaos
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On Monday, investors poured millions of dollars into U.S.-listed spot Ethereum exchange-traded funds (ETFs), even as the global market crashed due to heightened expectations of further rate hikes by the Bank of Japan, recession fears, and the escalating geopolitical tensions in the Middle East. Rumors of market maker Jump Trading’s liquidating its crypto business further exacerbated Monday’s market rout.
Only a week ago, BTC traded near $70,000 with traders elated about Trump’s likely return to the White House and hopes of making the preeminent crypto a strategic reserve asset. Since then, the Bitcoin price plunged 30% from peak to trough, marking the steepest drop during the current market cycle. Notably, Ethereum’s price fell as much as 20% on Monday, which is its biggest one-day price decline since 2021.
The turbulence caused the widely-used Crypto Fear and Greed Index to flash “fear” — its lowest zone since early July. The index measures market sentiment for Bitcoin and the broader cryptocurrency industry to indicate whether participants are in fear — usually a sign of local bottoms — or greedy, which indicates market tops.
Ether ETF Investors Buy Dip
Even as global markets suffered, spot Ether ETFs logged a daily net inflow of $48.7 million, which is the second-biggest daily inflow since the ETH-based products started trading on July 23 — suggesting significant demand for the second-largest crypto by market value. This means professional ETF investors with long-term strategies were calmly purchasing Ethereum amid a heavy volume day on Monday.
Data compiled by SoSoValue shows that BlackRock’s ETHA led the charge with $47 million in inflows. VanEck and Fidelity’s ETH ETFs followed each drawing in $16 million in fresh capital. Funds from Franklin Templeton and Bitwise also registered net inflows.
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Grayscale’s recently converted Ethereum Trust (ETHE) was the only product to record net outflows on August 5, hemorrhaging $46.84 million, while the firm’s smaller and much cheaper Ethereum Mini Trust (ETH) attracted $7 million in inflows. Ether ETFs from Invesco and 21shares drew in $0 cash for the day. Overall, the 9 newborn spot ETH ETFs traded approximately $715.61 million.
Ethereum has clawed back some losses from Monday’s sell-off. According to CoinGecko data, the Ether price has settled at $2,530, up 10.9% over the last 24 hours, after having seen a low of $2,197.15 yesterday.
COTI V2 Underway, Garbled Circuits Integration and Privacy Breakthroughs: Interview with CEO Shahaf Bar-Geffen
COTI is one of the veteran projects in the cryptocurrency field, and we had the chance to speak to Shahaf Bar-Geffen, the chief executive officer.
The team is on the brink of major developments, with the current priority being on the V2 of the protocol, focusing on delivering a privacy-centric Ethereum layer-two solution.
With bold plans of launching its mainnet by the end of 2024, Bar-Geffen also speaks on the merits behind the decision to go down this path, the fundamental challenges that the industry is facing, and how COTI is planning to tackle them.
COTI’s Main Focus
In our most recent podcast episode, Shahf Bar-Geffen explained more about the recent progress of the project and also shed important clarification regarding its roadmap for the near future.
Starting off, he said that the current focus of the team is the launch of COTI V2 – a privacy-centric Ethereum layer-2 blockchain. But why privacy?
Bar-Geffen identifies the root of the ongoing challenges faced by blockchain-based technology, in general, but also for the Internet itself.
“The best outcome of the Internet, and again, this is not just for blockchain, and the communication networks will be a decentralized network that can keep secrets, that can keep your data private.
So, this is exactly what we are doing with COTI right now. We are doing that on top of an existing network, so we start very strong in terms of liquidity, and we are doing it in a very unique technology that no one has ever employed.”
And right here is where it’s critical to clarify some important points. In light of recent events in which institutions across the globe have been cracking down on anonymity-first solutions, we asked Bar-Geffen how COTI V2 is different.
He explained that the team is working on a feature known as “selective disclosure,” where the core principal is “confidentiality instead of anonymity.” Through that, users can decide whether they want to show their transaction details and to whom exactly. Opposing this to Monero, COTI’s CEO explained that the method is much different.
He explained that transactions can be confidential as long as users want them to be while still allowing regulators to audit them if there are doubts about their nature.
This is fundamentally different than entirely anonymous solutions where bad actors are able to transfer funds and conduct various illicit activities such as money laundering, he said.
What is the Tech Stack that Powers COTI V2?
COTI is the first blockchain-based project to integrate a technology called garbled circuits.
In essence, garbled circuits bring on-chain privacy with a computation speed up to 1,000 times faster than other encryption systems, such as fully holomorphic encryption (FHE), for example.
Bar-Geffen explained that its original purpose and structure “wasn’t very useful to solve blockchain privacy because of performance issues.” But that all changed.
Along came a bunch of researchers from a company called Soda Labs, and we helped them fund practical research to how to actually employ this on blockchian. And they did it.
But that’s not all, Garbled Circuit technology can also handle transactions that affect a private state shared among multiple parties, potentially making it superior to ZK-based solutions.
According to a previous release:
It is also immune to single point of failure weaknesses that have been revealed in TEE solutions. The result is a privacy-protecting solution on-chain that is both scalable and more secure than alternative solutions.”
The Roadmap for the Following Months
Shahaf Bar-Geffen reminded that COTI introduced the concept for the V2 network earlier this year, followed by the garbled circuits on the blockchain.
He explained that the Developer Network also recently became operational and already has more than 400 smart contracts built on it. The network uses a technology called GC EVM (from Garbled Circuits), which is an expansion to EVMs, allowing developers to code in Solidity with a few new parameters.
Essentially, developers are able to write smart contracts in Solidity but determine which data should be confidential.
Moreover, COTI recently finished building the testnet, which should be deployed in the next few months and should pave the way for a mainnet launch later this year.
“That should be quite stable and will lead us to mainnet in Q4 this year. So the idea is to have the mainnet, which is a privacy-centric Ethereum layer-2.”
Enabling easier KYC procedures, focusing on AI-related initiatives, and building DeFi solutions will be some of the other key things of focus in the following months for COTI, the exec added.
To learn more about what else COTI is working on, as well as the ABC growth fund, check out the podcast above.
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What I Learned About Crypto’s Future From Basecamp and FWBFest
In the mountains of Idyllwild, CA, a convergence of technologists, artists, and optimists surrendered themselves to the future. I had the opportunity to spend two recent days at Basecamp, Base’s summer retreat, followed by two more at FWB FEST (Friends With Benefits’ annual gathering), where around 1,000 attendees enjoyed music, art, and ideas while exploring the frontiers of on-chain technology and culture. These experiences provided me with insights about the future of blockchains. Here are my six key takeaways.
Ethereum Open Interest Drops 40% In August – What's Happening?
Several large-cap assets, including Bitcoin and Ethereum, struggled to make a mark in the past week, as the general market suffered a steep downturn in prices. According to various analyses, the market was negatively impacted by some recent macro developments in different countries.
This significant decline has had a widespread effect on the market sentiment, with most investors now treading cautiously. This can be seen with the recent drop in Ethereum open interest, which could hold serious implications for the price of ETH.
Ethereum Open Interest Declines By $6 Billion — Impact On Price?
According to the latest report by blockchain analytics platform CryptoQuant, the Ethereum open interest has fallen by more than 40% (approximately $6 billion) in the month of August. The “open interest” metric refers to an indicator that measures the total number of derivatives positions of a cryptocurrency (ETH, in this case) currently open on all centralized exchanges.
An increase in this indicator’s value implies that investors are opening up new positions in the futures and options market at that given time. It basically indicates that investors are pouring money into ETH derivatives at the time. When the metric falls, on the other hand, it means that derivatives traders are closing their positions or getting liquidated in the market.
As shown in the chart above, the Ethereum open interest has been in a downward trend since the start of August, bottoming out on Monday following the general market downturn. According to data from CryptoQuant, the open interest of ETH stands at around $7.67 billion, as of this writing.
Although it has demonstrated some good signs of recovery in the past day, a low open interest does not look healthy for the Ethereum price — especially if viewed from a historical standpoint. Decreased positions in the derivatives markets could cause a fall in liquidity, which could lead to substantial price fluctuations due to market inefficiency.
At the same time, the falling open interest could dampen volatility in the Ethereum market in the short term, especially as fewer investors are betting on the ETH price. A low volatility suggests that the price of Ethereum might not witness any large movement any time soon.
ETH Price At A Glance
As of this writing, the price of Ethereum continues to hover around the $2,600 mark, reflecting an almost 4% decline in the past 24 hours. According to data from CoinGecko, the altcoin’s value is down by more than 13% in the last seven days.
Hong Kong virtual banks eye Web3 growth despite regulatory hurdles
Despite capturing just 0.3% of retail bank assets, Hong Kong’s virtual banks are exploring opportunities in the Web3 space.
Crypto price prediction: Sui, Bitcoin, Poodlana – CoinJournal
SUI’s bullish momentum has has boosted it to the day’s top gainer among cryptos as Bitcoin struggles to break the crucial zone of $60,000. Meanwhile, Poodlana has meme coin traders at the edge of their chairs with less than 100 hours to go before it hits the public shelves.
SUI is the day’s top gainer
Among the trending cryptocurrencies in the new week is SUI. As at the time of writing, it was the top gainer among cryptocurrencies with its price up by 20.52% in the past 24 hours as indicated by CoinMarketCap. Notably, it has maintained this impressive momentum for days; having risen by 118.82% in the past 7 days.
Bull traders’ optimism has continued to boost the altcoin following Grayscale Investments’ announcement on 7th August. While launching two new investment trusts for Sui (SUI) and Bittensor (TAO) tokens, the firm’s head of product & research, Rayhaneh Sharif-Askary stated, “We are excited to add Bittensor and Sui to our product suite, and believe Bittensor is at the center of the growth of decentralized AI, while Sui is redefining the smart contract blockchain”.
A look at its daily price chart shows SUI above the 50-day EMA and an RSI of 68. Besides, it has risen past the descending channel; aspects that point to a strong bullish trend. In the short term, it will likely be range-bound between 1.1360 and 0.9710 as bulls gather enough momentum to retest June’s high at 1.1785. On the flipside, a pullback past the aforementioned support level may have it drop to 0.8858 before rallying further.
Poodlana’s pre-sale is in its last 100-hour leg
While SUI has been one of the trending cryptos in recent sessions, a greater hype lies in one of the newest projects – Poodlana. Indeed, with all the facts and excitement around it, it may end up being the biggest Solana listing of 2024; possibly even outperfoming Dogecoin.
With less than 100 hours to go before the presale ends, the project has already raised $6.76 million. In addition to the popularity of meme coins, POODL’s status has largely been boosted by its association with luxury. It is named after the Poodle; a dog breed associated with luxury fashion especially in Asia. Besides, it has packaged itself as The Hermes of Crypto.
Notably, Poodlana buyers are optimistic that it will continue on an uptrend once it starts trading an hour after the end of its presale. Granted, those buying at its current price of $0.0499 already have gains locked with the next stage price set for $0.0539. This means that with a modest investment of $150, you get 3,006 tokens. In the next 20 hours, that will equate to 2,782 tokens; a significant difference, right? You can learn more about Poodlana token here.
Bitcoin struggles around $60,000
While the extreme fear experienced a week ago appears to have eased, the hesitance is still pulpable. As such, Bitcoin is struggling to break past the $60,000 zone in this week’s first trade session.
On a daily chart, it continues to trade below the 25 and 50-day EMAs. This substantiates last week’s outlook of a dead cat bounce. In the short term, the range between 57,121 and 61,925 is worth watching.
AI Search Engine Perplexity Teams up With Predictions Market Giant Polymarket – Bitcoin News
On Aug. 12, 2024, the startup behind Perplexity, an AI-driven search engine and chatbot, revealed a new partnership with Polymarket, a blockchain-powered predictions market. With this integration, users searching for events on Perplexity will now find news summaries accompanied by real-time probability forecasts sourced directly from Polymarket. Perplexity and Polymarket Unite The AI-focused search engine […]
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Coinbase opposes SEC proposal to redefine exchanges to include DEXs
Coinbase has submitted a strongly worded comment letter to the US Securities and Exchange Commission (SEC) opposing the agency’s proposal to expand the definition of “exchange” to include decentralized exchanges (DEXs).
The SEC’s proposal, which has reopened for public comment, has drawn significant criticism from Coinbase and other industry players. The exchange’s letter highlighted concerns that the rule could stifle innovation and impose unworkable compliance burdens on DEXs.
Fundamentally flawed
In the letter addressed to SEC Secretary Vanessa A. Countryman, Coinbase Chief Legal Officer Paul Grewal argued that the proposed rule is fundamentally flawed in both its conception and execution.
The letter emphasized that the SEC’s cost-benefit analysis is inadequate, as it fails to account for the unique operational characteristics of DEXs and the potentially severe economic impacts of the proposed regulations on the broader crypto market.
Coinbase’s main contention is that the SEC’s proposed expansion of the exchange definition is aimed primarily at regulating DEXs, which facilitate trading in digital assets without a central intermediary. The company asserts that the rule would impose “anachronistic and impossible-to-satisfy requirements” on DEXs, potentially driving them out of the US market entirely.
The exchange further warned that this could lead to a significant reduction in innovation and competitiveness within the American financial sector, as developers and businesses may be forced to move their operations offshore.
The letter also highlighted the recent Supreme Court ruling in Loper Bright Enterprises v. Raimondo, which overturned the Chevron deference and further questioned the legality of the SEC’s proposed rule.
Coinbase pointed out that the ruling diminishes the likelihood of courts upholding the SEC’s attempt to extend the Exchange Act’s reach to DEXs, especially when the agency itself admits to lacking sufficient information on how DEXs operate.
Moreover, the exchange criticized the SEC for basing its cost estimates on traditional, centralized entities, which the company argued are fundamentally different from decentralized platforms.
It added that DEXs, which operate without a centralized group of persons, cannot comply with existing registration and disclosure requirements, making the SEC’s assumptions about compliance costs both unrealistic and misleading.
Call to withdraw
Coinbase is calling for the SEC to withdraw the proposed rule and to conduct a more thorough and rational assessment of the economic impacts before considering any further regulatory action.
The exchange warned that the rule, as currently proposed, would likely lead to the exit of DEXs from the US market, thereby depriving American users of the benefits of decentralized financial systems, such as enhanced transparency and lower transaction costs.
The letter concluded with a request for the SEC to re-notice the rule, allowing for meaningful stakeholder input after the agency has gathered and assessed the necessary information.
It further stressed that any regulation in this space must be based on a clear and consistent definition of what constitutes a security in the digital asset market, a determination the SEC has yet to make.
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Brazil’s SEC Approves Solana ETF — SOL Price Sets New Record High Against Ether
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The crypto market is experiencing a resurgence as the long-running lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) reached a milestone settlement. On July 7, a New York court ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future securities law violations.
Layer-1 network Solana’s token (SOL) is also riding this wave of optimism and has soared to an all-time high against Ethereum (ETH). Meanwhile, the largest South American country has approved a Solana-based exchange-traded fund (ETF). Is an explosive SOL thunderstorm on the horizon?
SOL “Clear Winner” Against ETH
Solana has also outperformed most other cryptocurrencies in recent days. SOL’s price gained over 14% against Bitcoin (BTC) since the August 5 lows following the brutal crypto market sell-off sparked by US recession fears and Japanese market chaos. In fact, SOL has registered a new lifetime high of 0.06399 against ETH, according to CoinGecko data.
Chart veteran Peter Brandt considers SOL a “clear winner” against ETH — which came inevitably. Brandt thinks ETH is “cumbersome, expensive, flawed, claims to be decentralized when it’s not”, while SOL is “user-friendly” and has a “great foundation”. As such, the classical chartist expects SOL to gain 100% on ETH in the coming months.
Other pundits are also expecting a parabolic SOL breakout in the near term. Popular crypto trader Satoshi Flipper pointed out a bullish pennant on Solana’s four-hour chart, suggesting the token could blast above the psychologically important $200 level next.
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Brazil ETF Approval Further Fuels SOL
The Brazilian Securities and Exchange Commission (CVM) has given its blessing to a spot Solana exchange-traded fund (ETF).
Local news outlet exame revealed that the SOL-based ETF, created by Brazilian asset manager QR Asset and managed by fund administrator Vortx, is in a pre-operational stage, awaiting approval from Brazilian stock exchange B3.
The investment vehicle would follow the CME CF Solana Dollar Reference Rate, created by CF Benchmarks and the Chicago Mercantile Exchange (CME).
Commenting on the development, QR Asset manager and chief investment officer Theodoro Fleury described the firm as a “global pioneer in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets.”
Following the CVM’s approval, Brazil has notably beaten the U.S. to the punch. After the shocking approval of nine U.S.-listed spot Ethereum ETFs last month, asset managers like VanEck and 21Shares have already filed paperwork with the U.S. Securities and Exchange Commission (SEC) with hopes of securing approval to introduce Solana ETFs to Wall Street. However, the world’s largest asset manager, BlackRock, has backed out of the Solana ETF race.