BRC-20 Token Boom: Bitcoin's Unexpected Market Cap Surge Shakes Up Crypto Space
The demand for "Bitcoin Request for Comment" (BRC-20) tokens, built using Ordinals and stored on the Bitcoin base chain, has surged dramatically, with their market value increasing by several hundred percent.
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> Currently, the combined market capitalization of over 8,800 BRC-20 tokens stands at $137 million – a remarkable 682% increase from $17.5 million just a week ago, as per data monitored by Ordinals-builder Ordspace.
> The BRC-20 token standard was developed in early March by an anonymous on-chain analyst named Domo.
> The goal was to enable the issuance and transfer of fungible tokens on the Bitcoin blockchain.
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> This innovative approach came shortly after the launch of the Ordinals Protocol, which permits users to embed digital art references within small transactions on the Bitcoin blockchain. Continue here.
Dubai Regulators Warn OPNX Founders: Crypto Compliance in the Spotlight
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Dubai's Virtual Assets Regulatory Authority (VARA) has issued a formal warning to the co-founders of the defunct crypto hedge fund Three Arrows Capital for launching and promoting their new digital asset exchange, OPNX, without obtaining the necessary local license.
> The warning was addressed to Su Zhu, Kyle Davies, and two other co-founders of OPNX, as well as its CEO, on April 18, as disclosed by a statement from the regulator.
> VARA announced it would continue to examine OPNX's activities to determine if additional remedial action is necessary.
> This move against OPNX signals Dubai's regulatory authorities are taking a more rigorous stance on cryptocurrency-related activities, even as the emirate seeks to establish itself as a center for the industry. Details here.
Celsius' Controversial Consolidation: Crypto Lender's UK and US Entity Merge Under Fire
Crypto lending platform Celsius is seeking to consolidate its UK and US entities amid allegations that the distinction between the two was a "sham."
> The embattled crypto company is the latest to be accused of poor record-keeping within its corporate structure, resulting in a legal battle between its customers and Series B investors.
> In 2021, Celsius Network Limited, which had been warned by the UK's Financial Conduct Authority to halt operations, established a Limited Liability Company in Delaware and attempted to transfer assets through multiple financial transactions.
> According to a May 1 filing by Celsius, "The migration resulted in intercompany chaos," and the lack of internal records makes it difficult, if not impossible, to separate each entity's affairs. Continue reading.
Grayscale's Take on Interest Rate Hike's Impact on Crypto Prices
As the price of bitcoin experiences fluctuations ahead of the US Federal Reserve's upcoming interest rate decision on Wednesday, Grayscale suggested on Monday that crypto prices could still benefit from a rate increase, provided that the outcome aligns with market expectations.
> Bitcoin's price dropped 4.3% on Monday and is currently trading around $27,990, according to TradingView data.
> However, it recovered from the day's lows after MicroStrategy reported its results and reaffirmed its strong conviction in its bitcoin strategy.
> Despite falling approximately 1.8% over the past month, the world's largest cryptocurrency by market capitalization is still up 69% year-to-date.
> The US central bank is expected to raise rates by 25 basis points, as indicated by CME's FedWatch tool. Details here.
PEPE Token Soars to $502M Market Cap: Meme Coin Phenomenon Continues
The PEPE token, inspired by the "Pepe the Frog" meme, has soared to a $502 million market cap after a staggering 2,100% increase since its launch last month.
> Data from Ethereum block explorer Etherscan reveals that PEPE has around 75,000 holders, with some wallets holding over $5 million worth of tokens, not including centralized exchanges.
> Over the weekend, the PEPE token experienced a 350% surge, and BitMEX, a derivatives exchange, announced on Tuesday that it would list perpetual swaps for the token.
> This move will enable traders to leverage the volatile asset up to 50 times. As the hype around the meme token grows, some early investors have started cashing out. Full report here.
Coinbase Shareholder Files Derivative Complaint Against Executives and Board Members
A Coinbase shareholder, Adam Grabski, has lodged a stockholder derivative complaint against some of the company's executives and board members, alleging that they profited from inside information during the company's public listing.
> CEO Brian Armstrong and prominent venture capitalists are among those named as defendants.
> A stockholder derivative complaint is a lawsuit brought against a company on behalf of its shareholders.
> Grabski purchased Coinbase shares on the first day of the crypto exchange's public listing and filed the suit in the Delaware Court of Chancery on May 1.
> The complaint, posted in a redacted version by the court, claims that the defendants sold $2.9 billion worth of Coinbase shares made available to the public via a direct listing of the company's stock on the Nasdaq exchange on April 14, 2021, and during the subsequent week. Details here.
Coinbase Launches International Derivatives Exchange Outside US Amid Regulatory Tensions
Coinbase Global Inc. is diversifying its business by launching an international derivatives exchange for institutional crypto traders outside the United States.
> The Coinbase International Exchange will list Bitcoin and Ether perpetual futures starting this week, after receiving a license from the Bermuda Monetary Authority last month.
> The San Francisco-based company is entering a market largely occupied by offshore players such as Binance and the now-collapsed FTX.
> Coinbase is grappling with legal uncertainty in the US, as it received a Wells Notice from the Securities and Exchange Commission in March, indicating potential legal action.
> A company spokesperson told Bloomberg, "Coinbase continues to await approval to be able to offer futures directly to our customers in the US." More here.
Massive Dark Web Drug Bust Nets $53 Million in Crypto
In a joint effort named Operation SpecTor, US and international law enforcement agencies have made 288 arrests and confiscated over $53 million in cash and cryptocurrencies, marking an "unprecedented" crackdown on dark-web drug activities.
> Attorney General Merrick Garland announced the news during a press conference on Tuesday, emphasizing the Justice Department's focus on combating illicit cryptocurrency transactions and online criminal marketplaces.
> Operation SpecTor, which alludes to the dark-web browsing protocol, led to the seizure of dozens of firearms, more than 850 kilograms of drugs, and the closure of the Monopoly Market, a dark-web marketplace.
> The operation was initiated in October 2021 and coordinated with Europol. Continue here.
Bitcoin and Ether Surge Amid US Financial System Concerns
Bitcoin experienced a surge on Tuesday, as concerns about the stability of the US financial system fueled a boost in cryptocurrency prices.
> The market's leading digital asset, Bitcoin, saw an increase of up to 4.4%, reaching $28,892 during New York trading hours. Ether, the second-largest token, also experienced growth, rising by 3.7%.
> This positive shift in crypto values comes amid a decline in US equities, led by regional banks in the wake of First Republic Bank's collapse and subsequent sale.
> This situation has sparked calls for the Federal Reserve to hold off on further interest rate hikes in an effort to protect the economy from any lingering effects.
