Top stories this week
Hyperbitcoinization is coming, says Bitcoin OG, as the number of “wholecoiners” has hit 1 million
Bitcoin crossed a significant threshold this month – there are over 1 million addresses holding at least 1 BTC. Glassnode data shows an escalating pattern in the number of so-called Bitcoin “wholecoiners.” If the trend continues, Bitcoin’s price surge could soon make buying it not just a luxury but something potentially entirely unattainable, according to Adam Back, co-founder and CEO of bitcoin company Blockstream. This hyperbitcoinization refers to the moment when Bitcoin’s benefits for financial transactions will eventually see established financial institutions being replaced by a government-run system and Bitcoin becoming the world’s default value system.
FTX is seeking a $244 million recovery from the “grossly inflated” Embed acquisition deal
FTX leadership wants to recover more than $240 million from insiders and executives who benefited from FTX’s “grossly inflated” September acquisition of stock-clearing platform Embed. According to court documents, after a brief meeting with its then-CEO Michael Giles, Embed’s Chief Technology Officer Laurence Beal was stunned that FTX paid so much for the company. Beal used a cowboy emoji to describe FTX’s due diligence process. Lawyers accused FTX insiders of disproportionate payouts to Embed shareholders, including $55 million to the CEO.
Robert F. Kennedy Jr. accepts campaign donations in Bitcoin
Robert F. Kennedy Jr. will become the first presidential candidate in United States history to accept campaign contributions in bitcoin, he announced in his first appearance as a presidential candidate at the 2023 Bitcoin Conference. He praised the cryptocurrency as a “symbol of democracy and freedom” during the event. By attending the Bitcoin event, RFK Jr. is not only targeting voters, but is also a potential million-dollar fundraiser. The Democratic nominee is incumbent President Joe Biden.
Voyager bankruptcy plan approved, customers can recover 35.7% of claims initially
Voyager’s bankruptcy plan was approved on May 17 and its customers could now expect to initially receive 35.72% of their receivables after 30 days, either in crypto via the Voyager app or in cash. According to Voyager, as of May 8, $1.33 billion in assets were available for collection, of which $629.8 million was available for first collection on claims of 1 $.8 billion. Should FTX/Alameda Research’s claim for preferential recovery be unsuccessful, creditors’ initial recovery could increase. Voyager is withholding $445 million for that claim. Voyager may also be able to recover funds from bankrupt crypto hedge fund Three Arrows Capital.
Coin Cafe has been ordered to pay back $4.3 million in fees that “wiped out” investors’ bitcoin accounts
Cryptocurrency trading platform Coin Cafe has been ordered to repay $4.3 million to its users after allegedly charging “exorbitant and undisclosed fees” for storing bitcoin on the platform – resulting in some accounts going dead have been released from their accounts. One New York investor was hit with more than $10,000 in fees in a single month, while another investor was hit with $51,000 in fees over a 13-month period, the New York Attorney General’s office said with.
Winner and Loser
Bitcoin at the end of the week (BTC) is at $26,889ether (ETH) at $1,813 And XRP at $0.46. The total market capitalization is at $1.13 Trillions, according to CoinMarketCap.
Among the top 100 cryptocurrencies, the top three altcoin gainers of the week are Render Token (RNDR) at 29%, Conflux (CFX) at 20.52%, and SingularityNET (AGIX) at 19.94%.
The top three altcoin losers of the week are Pepe (PEPE) at -11.58%, Klaytn (KLAY) at -5.75%, and Bitcoin SV (BSV) at 5.38%.
For more information on crypto prices, see Cointelegraph’s Market Analysis.
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Most Memorable Quotes
“What makes bitcoin ordinals interesting, unlike any other platform, is that they are built on the most secure blockchain in the world.”
David Tse, Professor at Stanford University
“We are seeing another wave of bitcoin interest driven largely by corporate and institutional adoption.”
Alex LeishmanRiver’s CEO
“You create a [virtual] World where you see new experiences, new content, new ideas, and the sum of these is always more positive than negative.”
Sebastien BorgetCo-founder of The Sandbox
“When the public puts money into a common venture and expects profits based on the efforts of others, that’s a security.”
Gary GenslerChairman of the US Securities and Exchange Commission
“For this [BRC-20] To truly achieve the level of integrity that bitcoin offers, there needs to be a hard fork that allows verification and validation of these things and has the integrity of bitcoin.”
Eli Ben SassonCo-founder of StarkWare
“Whether it’s bitcoin or a digital currency, no one could tell what problem it’s actually solving. […] With Venmo, I can now send $5 to everyone in this room. […] So what can a central bank digital currency do that Venmo cannot?”
Neel KashkariPresident of the Minneapolis Federal Reserve Bank
forecast of the week
Bitcoin price risk? Analyst Warns: US Debt Deal Will Trigger $1 Trillion in Liquidity Shortages
Bitcoin faces potential losses through Q3 2023 as US lawmakers are likely to agree on a debt ceiling hike.
Raising the debt ceiling means the U.S. Treasury could issue new bonds to raise cash to meet its previous obligations, thereby draining liquidity from riskier assets like bitcoin. Such macroeconomic hurdles could prevent Bitcoin from reclaiming its yearly highs above $30,000 in the coming months, pseudonymous independent market analyst Income Sharks said.
“We’re most likely to fluctuate between 20,000 and 30,000 and even get an off-season,” the analyst noted, adding that “no new money is coming in; it’s all spinning. […] Unless we get a new narrative or stocks find a way to recover, it’s more likely that the 2024 US election will be the next big catalyst.”
FUD of the week
SEC Warns Filecoin “Meets the Definition of a Security” – Grayscale
The U.S. Securities and Exchange Commission (SEC) has asked Grayscale Investments to withdraw its Filecoin Trust application, warning that the underlying asset, Filecoin (FIL), could be considered a security. Grayscale first filed a Form 10 application with the regulator to launch an updated Filecoin Trust product in April. This week, the company received a letter from the SEC warning that FIL “meets the definition of a security” under federal law and asked the company to withdraw its filing.
“Trusted” Marketplace Selling Fake Trezor Wallets and Stealing Crypto – Kaspersky
Cybersecurity firm Kaspersky has reported an issue with fake hardware wallets posing as major wallet company Trezor. According to the Kaspersky team, the attackers managed to access users’ crypto assets by replacing the inner firmware. The fake Trezor wallet allowed scammers to steal bitcoin via a swapped microcontroller, allowing attackers to take control of the user’s private keys. The fake wallet, which resembled a real Trezor Model T wallet, offered a standard set of wallet features.
The “Inferno Drainer” scam as a service has stolen $5.9 million since March
A new scam-as-a-service dubbed “Inferno Drainer” has reportedly stolen nearly $6 million from unsuspecting crypto users, according to Web3 fraud detection company Scam Sniffer. Inferno Drainer advertises that it provides scammers with out-of-the-box code that allows them to steal cryptocurrencies in exchange for a 20% share of the scammer’s cryptocurrency “loot”. The identified address was linked to over 689 phishing websites created since March 27 and had poached millions of victims across various networks including Ethereum, Arbitrum, Polygon and BNB Chain.
Best Cointelegraph Features
Ordinals Made Bitcoin a Worse Version of Ethereum: Can We Fix It?
With the flood of NFTs and memecoins, Bitcoin has suddenly become an inferior version of Ethereum. There are conflicting ideas about how to fix the problem.
Earn 500% from ChatGPT Stock Picks? Bard Leaning Left, $100M AI Memecoin: AI Eye
The man who used ChatGPT to create a $100M meme coin, AI stock tips with a 500% return and why AIs are left-leaning.
“Moral Responsibility”: Can Blockchain Really Boost Trust in AI?
Decentralized ledger technology is probably everything that AI is not: transparent, traceable, trustworthy and free of manipulation. Could it make up for the opacity of AI’s black-box solutions?
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Cointelegraph Magazine writers and reporters contributed to this article.
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