In a significant expansion of its cryptocurrency offerings, Vaneck has announced the filing of the first U.S. exchange-traded fund (ETF) focused on Solana. This move marks a strategic enhancement of Vaneck’s digital asset products, according to Matthew Sigel, head of digital asset research. Vaneck’s New ETF to Offer Direct Exposure to Solana’s SOL Token Vaneck‘s […]
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FTX Seeks Customer Consensus: Multi-Billion Dollar Compensation Plan Goes To Vote
FTX, the failed crypto exchange, will seek customer approval for its Chapter 11 plan to compensate victims and resolve government penalties stemming from the platform’s fraudulent collapse in November 2022.
The decision by Judge John Dorsey marks a significant step forward in the two-year-long bankruptcy proceedings, as voting by creditors plays a pivotal role in restructuring efforts. While FTX’s plan has gained support from key customer committees, a vocal group remains opposed and demands substantial revisions.
FTX Offers Customers 119% Asset Recovery
According to Bloomberg, under the proposed plan, most FTX customers are expected to recover 119% of their assets as of the day the company filed for Chapter 11 in November 2022. Other creditors may receive up to 143% of their owed amounts.
FTX’s legal team maintains that bankruptcy law necessitates valuing claims based on their value at the time of filing, despite subsequent increases in cryptocurrency prices.
FTX’s decision to solicit votes from its customer base stems from the desire to obtain feedback from previously uninvolved parties regarding the repayment plan.
Additionally, the company is still negotiating with federal authorities and exploring options to utilize government claims against FTX to compensate affected customers.
Notably, FTX has already settled a billion tax claim from the US Internal Revenue Service. Under the settlement terms, the firm will pay the IRS 0 million within 60 days of implementing the proposed restructuring plan.
The settlement allows FTX to pay a fraction of the amount claimed by the IRS, clearing the way for the exchange to distribute significant customer recoveries.
The IRS will also receive a lower priority claim of 5 million, which will be paid on a subordinated basis to customers and other creditors, depending on the availability of funds. These details were outlined in a filing made by FTX in the US Bankruptcy Court for the District of Delaware.
SBF’s Fraud Conviction Shadows Bankruptcy Proceedings
FTX is currently monetizing its assets, as the platform reportedly lacked segregated digital assets directly connected to claims against the exchange. Instead, FTX possesses a collection of assets acquired using stolen customer funds, representing a complex challenge in the compensation process.
Customers have until August 16 to vote on the Chapter 11 plan. Judge Dorsey will then review and potentially approve the plan on October 7, considering the outcome of the customer vote.
FTX filed for bankruptcy after its founder, Sam Bankman-Fried (SBF), shut down the crypto trading platform in 2022 and relinquished control to bankruptcy professionals. Bankman-Fried subsequently faced a 25-year fraud conviction, which he recently announced he would appeal.
As of this writing, the exchange’s native token FTT is trading at .43, up 2% in the past 24 hours and just 27% year-to-date.
Featured image from DALL-E, chart from TradingView.com
Utah Senator Seeks to Abolish Federal Reserve
Republican Senator Mike Lee from Utah has introduced legislation to abolish the U.S. central bank and its Board of Governors. Lee contends that the U.S. Federal Reserve has “repeatedly failed” the American public and argues for its dissolution. Federal Reserve Targeted for Abolition by Senator Mike Lee Following the lead of House Representative Thomas Massie […]
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Can DEX Boom Save Cardano? ADA Seeks Recovery As Trading Activity Surges
Cardano (ADA), the smart contract platform, has been facing a rough patch recently. While the broader DeFi sector has seen an uptick in DEX volumes, Cardano’s Total Value Locked (TVL) has plummeted, raising concerns about the health of its ecosystem.
DeFi Activity And NFT Market Slump
Despite the surge in DEX volumes across the crypto landscape, Cardano’s TVL has witnessed a significant decline, dropping from 0 million to 0 million, according to data from Artemis, a leading blockchain data provider. This suggests a lack of interest in dApps built on the Cardano network, potentially hindering its long-term growth prospects.
The NFT space on Cardano has also taken a hit. Popular NFT collections have seen a dramatic decrease in floor price and overall trading volume over the past month. This waning interest in Cardano NFTs could further dampen investor sentiment and negatively impact the price of ADA.
Cardano: Technical Indicators Flash Warning Signs
The technical outlook for ADA is currently bearish. The price has been trending downwards over the past few weeks, forming multiple lower lows and lower highs. Additionally, key technical indicators like the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) are pointing towards declining bullish momentum and money flow into ADA.
Beyond the immediate price and DeFi woes, other factors raise concerns about Cardano’s future. The velocity of ADA, indicating the frequency of token exchange, has fallen significantly, suggesting decreased trading activity. Additionally, the MVRV ratio, a measure of profitability for token holders, has also dropped, implying that most ADA addresses are currently underwater.
Cardano Price Forecast
While Cardano remains a prominent player in the blockchain space, the recent developments highlight the challenges it faces. The combination of declining price, waning DeFi and NFT activity, and negative on-chain metrics suggests a potential for further downside in the short term.
Cardano is expected to experience a modest increase in price, reaching .47 by June 30, 2024, indicating a predicted rise of nearly 5%. However, it’s important to consider various technical indicators and market sentiment to assess the potential movement of the asset.
The crypto’s bearish sentiment may be influenced by factors such as market trends, news events, or technical analysis patterns. Additionally, the Fear & Greed Index stands at 73, indicating a state of Greed among market participants. This suggests that investors may be more inclined to take risks or engage in speculative behavior, which could potentially impact Cardano’s price movement.
It’s noteworthy that ADA has experienced significant price fluctuations in the past. Its highest price of .10 was reached on September 2, 2021, marking its all-time high, while its lowest price of .017 was recorded on October 1, 2017, representing its all-time low. These historical price points highlight the volatility and potential for significant price swings within the Cardano market.
Featured image from ReddSparks Crypto Blog, chart from TradingView
Coinbase Seeks Immediate Appellate Review in SEC Lawsuit, Citing Recent Legislation
As Coinbase seeks an interlocutory appeal in its legal dispute with the U.S. Securities and Exchange Commission (SEC), recent legislative developments have highlighted a growing discord between U.S. Congress and the SEC over digital asset regulation. This past week, legislators passed comprehensive digital asset legislation aimed at curbing the SEC’s expansive jurisdiction claims. As Coinbase […]
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Post-Ethereum ETF Analysis: ETH Price Seeks Bottom As Bulls Eye $5,000 Target
The recent approval of the Ethereum ETF applications by the US Securities and Exchange Commission (SEC) on Thursday has sparked speculation on the next price movements for the market’s second-largest cryptocurrency as the trading launch date approaches.
However, significant transfers of Ethereum (ETH) to cryptocurrency exchanges have raised concerns about profit-taking, portfolio rebalancing, and potential market speculation.
Sell-Off Amidst Ethereum ETF Greenlight?
According to crypto analyst Ali Martinez, these developments coincide with Ethereum founder Jeffrey Wilke transferring 10,000 ETH, valued at approximately .38 million, to the cryptocurrency exchange Kraken.
Furthermore, the surge in Ethereum balances on cryptocurrency exchanges indicates a notable increase in tokens available for sale.
The chart below shows that more than 242,000 ETH have been transferred to cryptocurrency exchange wallets over the past two weeks, signaling increased trading activity that can contribute to price volatility.
This trend, coupled with Wilke’s transfer, suggests the possibility of a sell-off or an increase in profit-taking among market participants.
While industry experts like Anthony Pompliano view the Ethereum ETF approval as a positive sign for the entire industry, traders are advised to exercise caution. For Martinez, the growing number of ETH deposits to exchange wallets implies a potential market reaction characterized by profit-taking or selling pressure.
Additionally, the analyst notes that the Tom DeMark (TD) Sequential indicator has presented a sell signal on Ethereum’s daily chart, indicating the potential for a retracement or a new downward countdown phase before the upward trend resumes.
Ethereum’s Price Outlook In Focus
Diving into the price analysis, considering the IOMAP (Input-Output Model and Profitability) data, Martinez highlights that Ethereum has a strong demand zone between ,820 and ,700, where over 1.81 million addresses bought approximately 1.66 million ETH.
This range could provide support amid increasing selling pressure. However, if this zone fails to hold, the next key area of support lies between ,580 and ,462, where 3.13 million addresses acquired over 1.50 million ETH.
On the upside, Ethereum’s most significant resistance barrier is between ,940 and ,054, with over 1.16 million addresses purchasing around 574,660 ETH.
Martinez suggests that a daily candlestick close above ,170 would invalidate the bearish outlook and potentially trigger a new upward countdown phase, with a target towards ,000.
As of this writing, ETH’s price is ,719, reflecting a 2.5% retracement over the past 24 hours. However, according to the analyst’s assessment, Ethereum remains within a crucial demand zone.
As the market approaches the launch and commencement of trading for all eight spot Ethereum ETF applications by the world’s largest asset managers, the exact impact on price action is yet to be fully realized.
Featured image from Shutterstock, chart from TradingView.com
Ripple Seeks Court Approval to Seal Sensitive Documents in SEC Lawsuit
Ripple Labs has filed a motion to seal remedy documents in its ongoing litigation with the U.S. Securities and Exchange Commission (SEC). Ripple argues that these documents contain sensitive information, including proprietary business strategies, financial data, and internal communications. Public access to this information could give competitors an unfair advantage and damage Ripple’s market position. […]
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Canada’s Tax Agency Targets $40M in Uncollected Crypto Taxes as Trudeau Seeks Major Capital Gains Hike
Based on a report by the National Post, Canada’s Revenue Agency (CRA) is actively searching for uncollected taxes on cryptocurrencies. The agency estimates that there is nearly million in undeclared taxes related to digital currencies. Concurrently, Prime Minister Justin Trudeau is proposing an increase in capital gains taxes from 50% to 66% for any […]
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Australian Tax Office Seeks Personal, Transaction Details from 1.2 Million Cryptocurrency Users
The Australian Tax Office reportedly has requested that cryptocurrency exchanges share both personal and transaction details of as many as 1.2 million cryptocurrency users. The revenue collector recognized that some users are fulfilling their tax obligations unknowingly, but maintained that others are intentionally avoiding payment. Australian Tax Office Targets 1.2 Million Cryptocurrency Users The Australian […]
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SEC Seeks $5.3 Billion in Final Judgment Against Do Kwon and Terraform Labs
The U.S. Securities and Exchange Commission (SEC) has asked the court to order Terraform Labs and Do Kwon to pay around .3 billion as part of the final judgment against the two defendants. This sum includes ,192,147,847 in disgorgement and 5,748,909 in prejudgment interest. SEC Seeks Final Judgment Against Terraform Labs and Do Kwon The […]
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