🚨🚨Crypto Market News You Can’t Miss! (31/12/23) 🚨🚨

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1 Jan 2024

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The crypto space is always evolving and changing, and as we enter the new year, there are some exciting developments and challenges that await us. In this article, we will cover some of the most important and market-moving news that you need to know for 2024, from the SEC’s decision on spot Bitcoin ETFs, to the controversy surrounding Terra and Chai, to the Ethereum roadmap revealed by Vitalik Buterin, to the difficulties faced by Nigerian crypto exchanges. Let’s dive in!

SEC May Notify Approved ETF Issuers by Early Next Week, Ahead Of January 10 Launch

One of the most anticipated events in the crypto industry is the launch of the first spot Bitcoin ETFs in the U.S., which are expected to bring more liquidity, legitimacy, and accessibility to the crypto market. According to a Reuters report, the U.S. Securities and Exchange Commission (SEC) may inform asset managers if their spot Bitcoin ETF applications will be approved by Tuesday or Wednesday next week, before the Jan 10th deadline. This includes Ark Investments, 21Shares, Valkyrie, Bitwise, WisdomTree, Franklin Templeton, BlackRock, VanEck, and Invesco.

These asset managers have submitted updated filings to the SEC, indicating that they will use the CME CF Bitcoin Reference Rate as the benchmark for their ETFs, which is based on data from five regulated crypto exchanges: Coinbase, Bitstamp, itBit, Kraken, and Gemini. This is in line with the SEC’s preference for a regulated and transparent price source for the spot Bitcoin ETFs, as opposed to the unregulated and opaque over-the-counter market.

If approved, these spot Bitcoin ETFs will allow investors to directly buy and sell Bitcoin through a regulated and familiar vehicle, without having to deal with the complexities and risks of custody, security, and compliance. This could potentially attract more institutional and retail investors to the crypto space, and boost the demand and price of Bitcoin.
However, there are also some challenges and uncertainties that may arise from the launch of the spot Bitcoin ETFs, such as the impact on the existing Bitcoin futures ETFs, the potential for market manipulation and volatility, and the regulatory scrutiny and oversight that may follow. Therefore, investors should be cautious and well-informed before making any decisions regarding the spot Bitcoin ETFs.

Source: https://www.reuters.com/business/finance/blackrock-vaneck-among-asset-managers-that-submitted-updated-filings-spot-2023-12-30/

Chai Payments App, Used To Promote Terra Ecosystem, Didn’t Use Crypto: SEC Whistleblower

Another major news that has shaken the crypto world is the ongoing legal battle between the SEC and Terraform Labs, the company behind the Terra blockchain and its native token LUNA. The SEC has accused Terraform Labs and its co-founders, Do Kwon and Daniel Shin, of conducting an unregistered and fraudulent securities offering of LUNA tokens, which raised over $150 million from investors in 2019.

One of the key evidence that the SEC has presented in the case is the allegation that the Chai payments app, which was used to promote the Terra ecosystem and its stablecoins, did not actually use crypto or blockchain technology at all. This contradicts the claims made by Kwon and Shin, who have often touted the Chai payments app as a successful use case of the Terra blockchain and its stablecoins, which are pegged to various fiat currencies and backed by LUNA tokens.

According to a recent summary judgment ruling by U.S. District Court Judge Jed Rakoff, the SEC has obtained testimony from a whistleblower, who was the Chief Product Officer of Chai, that he was told by a former Terraform employee who joined Chai that “there’s no crypto going on within Chai.” The whistleblower also provided an email from a Chai employee, dated May 2020, that states that Chai would “process transaction[s] outside [the] blockchain” and then “write a record on the Terra blockchain in parallel.”

This suggests that the Chai payments app was not actually using the Terra blockchain or its stablecoins for its operations, but rather relying on traditional payment methods and systems, and then retroactively recording the transactions on the Terra blockchain as a form of marketing. This could potentially undermine the credibility and value of the Terra ecosystem and its tokens, and expose the company and its co-founders to legal liability and penalties.
However, Judge Rakoff also noted that there are “genuine disputes of material fact” that prevent him from granting summary judgment to either party on the fraud claims. He pointed out that the whistleblower’s testimony could be less than reliable, as he had tried to extort Kwon and Shin after being fired from Chai, and had changed his story several times, such as whether he had direct knowledge of Chai’s systems or merely heard about it from other employees.

Therefore, the case is still ongoing, and the final outcome is yet to be determined. The Terra community and supporters have expressed their confidence and solidarity with the project and its co-founders, and have argued that the SEC’s allegations are baseless and motivated by ulterior motives. The LUNA token has also shown remarkable resilience and growth, despite the legal challenges and market fluctuations.

Source: https://www.theblock.co/post/269794/chai-payments-app-used-to-promote-terra-ecosystem-didnt-use-crypto-sec-whistleblower

Vitalik Buterin Reveals Ethereum Game Plan For 2024

As the largest and most influential smart contract platform in the crypto space, Ethereum is always at the forefront of innovation and development. In a series of posts on X (formerly Twitter), Ethereum founder Vitalik Buterin shared the roadmap for Ethereum in 2024, outlining the core priorities for the ecosystem while admitting that there are only minor changes compared to last year.

Notably, there were six main components outlined by Buterin - the merge, the surge, the scourge, the verge, the purge, and the splurge.

These are:

The merge: the transition from the current proof-of-work consensus mechanism to the more efficient and secure proof-of-stake consensus mechanism, which will reduce the energy consumption and carbon footprint of Ethereum, as well as increase its scalability and security.
The surge: the improvement and adoption of layer-2 scaling solutions, such as rollups, which will enable Ethereum to handle thousands of transactions per second, while maintaining the security and decentralization of the base layer.
The scourge: the mitigation and prevention of various threats and attacks on the Ethereum network, such as denial-of-service, censorship, spam, phishing, and hacking, which could compromise the integrity and functionality of the system.
The verge: the exploration and integration of new technologies and features that could enhance the capabilities and performance of Ethereum, such as Verkle trees, which are a more compact and efficient way of storing and verifying data on the blockchain, and zero-knowledge proofs, which are a way of proving the validity of a statement without revealing any information about it.
The purge: the simplification and optimization of the Ethereum protocol and codebase, which will reduce the complexity and technical debt of the system, and make it easier for developers and users to interact with and understand the platform.
The splurge: the expansion and diversification of the Ethereum ecosystem and community, which will foster more innovation, collaboration, and inclusion among the various stakeholders and participants in the network, such as developers, users, validators, researchers, educators, artists, and activists.

Buterin also endorsed single-slot finality (SSF) as “the easiest path to resolving a lot of the Ethereum [Proof of Stake] design’s current weaknesses” and praised the progress made on L2 networks and with Verkle tree implementations. He also acknowledged the challenges and trade-offs that come with the development and evolution of Ethereum, and urged the community to be patient and supportive of the project and its vision.

Source: https://cointelegraph.com/news/vitalik-buterin-ethereum-roadmap-2024

Nigerian Exchanges Discouraged By SEC Crypto License Requirements

While the crypto industry is booming in many parts of the world, some regions are facing more hurdles and barriers than others. One such region is Nigeria, where many local crypto exchanges are finding it difficult to be operational in the country due to the Nigerian Securities Exchange Commission’s (SEC) crypto license requirements.
According to Nigerian crypto analyst Rume Ophi, the SEC mandates the cost of the minimum paid-up capital requirement to be $556,620 (N500 million naira), making it prohibitively expensive and unaffordable for most of the local crypto exchanges. Moreover, the SEC also requires the crypto exchanges to have a minimum of three years of operational experience, which excludes many of the newer and emerging platforms.
These requirements are seen by many as unrealistic and unreasonable, and as a way of stifling the growth and innovation of the crypto sector in Nigeria. Ophi argued that the SEC should instead adopt a more flexible and supportive approach, such as providing sandbox environments and incentives for the crypto exchanges, and engaging in dialogue and consultation with the industry stakeholders.

Source: (https://cointelegraph.com/news/nigerian-exchanges-discouraged-by-sec-crypto-license-requirements)

Disclaimer: The information and content provided in this article are for informational and educational purposes only and do not constitute any financial, investment, or legal advice. Trading, buying, or investing in cryptocurrencies involves significant risks and may result in the loss of your capital. You should do your own research and consult a professional before making any decisions. This article is not a suggestion or an endorsement of any cryptocurrency or platform.

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