Getting a token from inception to market is no mean feat and more often takes years of planning and commitment. Achieving fair price discovery and stability requires just as much commitment and energy. Generally speaking, market makers categorize the token pricing journey into four main phases: pre-generation construction, primary listing, price discovery and expansion, and […]
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Billionaire Peter Thiel Remains a Bitcoin Holder but Questions Its Future Value
According to American entrepreneur, venture capitalist, and political activist Peter Thiel, he still holds bitcoin (BTC) but is uncertain about the future value of the cryptocurrency. Peter Thiel Talks Bitcoin: A Holder With Cautious Optimism Peter Thiel, the renowned billionaire and co-founder of Paypal, Palantir Technologies, and Founders Fund, shared his thoughts on bitcoin (BTC) […]
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Solana ETF Approval Could Skyrocket SOL’s Value 9x Higher, Report Finds
Leading asset manager and Bitcoin Exchange Traded Fund (ETF) issuer VanEck has officially filed a Spot Solana ETF with the US Securities and Exchange Commission (SEC), fueling bold growth predictions for the Solana ecosystem.
Market-making firm GSR Markets recently released a report shedding light on the potential impact of a Solana ETF and highlighting the platform’s emergence as part of the “Big Three” in the crypto space.
Speculation Of A Solana ETF Approval
GSR’s report highlights Solana’s rapid rise within the cryptocurrency industry, positioning it as a major player alongside Bitcoin and Ethereum.
With the Bitcoin ETF market already approved and Ethereum about to launch a spot ETF in the US, GSR predicts that it’s only a matter of time before Solana follows suit, potentially making the biggest impact.
GSR’s analysis highlights three key technological advancements that set Solana apart from its competitors. Firstly, Solana’s proof-of-history enables validators to produce blocks efficiently, resulting in remarkable speed and scalability advantages.
Second, Solana’s parallel transaction processing enables increased throughput and takes advantage of improvements in computing speed.
Finally, the company said Solana’s architecture positions it to solve the “blockchain trilemma” by achieving global state synchronization at “unprecedented speeds” as hardware and bandwidth costs decline.
In addition, GSR’s report addresses the likelihood of Solana securing a spot digital asset ETF. While the current regulatory framework requires a federally regulated futures market and a futures-based ETF before a spot product can be considered, GSR believes that the potential for change shouldn’t be underestimated.
The company also claims bipartisan support for the crypto industry, and shifting attitudes among lawmakers indicate a more favorable environment for digital assets.
A Trump administration and a liberal SEC commissioner could further pave the way for the launch of spot digital asset ETFs, creating opportunities for Solana and other cryptocurrencies, the report said.
Projected Impact On SOL’s Price
GSR emphasizes the importance of decentralization and potential demand in determining the next spot digital asset ETF.
Factors such as permissionless participation, developmental control, token allocation, and stake characteristics contribute to a blockchain’s level of decentralization.
Meanwhile, as indicated by metrics like market cap, potential demand serves as a crucial factor for issuers when assessing future inflows. GSR combines decentralization and demand scores to create an ETF Possibility score, which highlights Ethereum and Solana as leading contenders for the next spot in digital asset ETF.
Drawing parallels to the effect of spot Bitcoin ETFs on Bitcoin’s price, GSR estimates the potential impact of a Solana ETF on SOL. Adjusting for Solana’s smaller market cap relative to Bitcoin, GSR predicts a 1.4x to 8.9x increase in SOL’s price under different scenarios.
However, the report acknowledges that the impact could be even higher, considering SOL’s active usage in staking and decentralized applications. In the event of a spot ETF approval, GSR suggests that the potential upside for SOL presents a significant opportunity in the market.
As investor excitement over the development became apparent, SOL’s price reached a weekly high of 1 on Thursday, but in the past few hours, SOL has dropped nearly 4% to a current trading price of 3.
Featured image from DALL-E, chart from TradingView.com
Top 10 TON Chain Coins Reach $20 Billion in Combined Value
Over the past month, toncoin (TON) has appreciated by 18.4% against the U.S. dollar, achieving a new all-time high last week. Current data indicates that the top ten TON chain coins, including TON, have a combined value of more than billion. Gaming and Meme Tokens Drive TON’s Market Growth to Billion The Open […]
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From Cheers To Tears: Beercoin (BEER) Dries Up, Loses 70% Of Its Value
Beercoin, the effervescent Solana-based meme coin that promised a taste of financial freedom, is experiencing a hangover of epic proportions. After a meteoric rise in price earlier this month, Beercoin has come crashing down, plummeting by nearly 70% in a matter of days. This dramatic decline reflects a confluence of factors, including a broader crypto market correction, a hawkish Federal Reserve stance, and a concerning trend of insider selling.
Fed Tightens The Taps
The Federal Reserve’s recent decision to adopt a more hawkish monetary policy, prioritizing inflation control over economic stimulus, has cast a dark cloud over the entire cryptocurrency market. Bitcoin, the bellwether of the industry, dipped below ,000 this week, dragging most altcoins down with it.
This shift in central bank policy is particularly detrimental to highly speculative assets like meme coins, which thrive on easy money and investor exuberance. Meme coins, often lacking real-world utility or established fundamentals, are seen as the first to be dumped when risk aversion creeps into the market.
Whales Jump Ship
Adding fuel to the fire of Beercoin’s descent is a troubling trend of insider selling. Onchain analysis by LookOnChain revealed that several individuals with significant holdings, likely early investors who acquired Beercoin at a discount during pre-sales, have recently cashed out in large quantities.
Another wallet related to the #beercoin team sold 5.43B $BEER for .13M!
Although it has been transferred many times, we traced that the wallet received $BEER directly from the #beercoin team wallet “7yfvQX…o9v394” and “8VY4LF…fDd5G2”.https://t.co/vElDToYi5C pic.twitter.com/oYp41d3Naz
— Lookonchain (@lookonchain) June 16, 2024
This mass exodus by insiders, who presumably possess a deeper understanding of Beercoin’s potential or limitations, raises serious red flags for retail investors. Their actions can be interpreted as a loss of confidence in the project, potentially signaling that Beercoin may not be the golden ticket to riches it was initially touted to be.
Technical Indicators: Frothy Future
Technical analysis, the study of price charts and historical data to predict future market movements, paints a similarly grim picture for Beercoin. The token has not only fallen below a key support level, but it also continues to trade beneath crucial moving averages, technical indicators used to gauge momentum and identify potential trend reversals.
BEER Price Prediction
Meanwhile, the current BEER price prediction suggests a significant upward trajectory, anticipating a 220% increase to .0₁₀5119 by July 18, 2024. Despite this optimistic forecast, technical indicators show a bearish sentiment, indicating potential caution among investors.
The Fear & Greed Index is at 74, which denotes high levels of greed in the market, suggesting that the current bullish outlook may be driven by overenthusiastic sentiment rather than solid fundamentals.
Over the past 30 days, BEER has experienced an unusual trend, recording 100% green days with zero price volatility, an anomaly in typical market behavior. This consistent upward movement without any fluctuations may indicate a highly manipulated or illiquid market.
Featured image from Health | HowStuffWorks, chart from TradingView
Fidelity’s Director of Global Macro Sees Bitcoin as ‘Exponential Gold’ on Store of Value Team
Fidelity Investments’ Director of Global Macro sees bitcoin as “exponential gold” and “an aspiring player on the store of value team.” According to his analysis, bitcoin’s price is “driven primarily by the growth in its network, which is in turn driven by bitcoin’s unique scarcity feature, as well as the monetary and fiscal policy cycle, […]
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Holograph Compromised: HLG Value Plummets as Hacker Illegally Mints 1 Billion Tokens
On June 13, an unidentified hacker minted one billion HLG tokens by exploiting vulnerabilities in the Holograph operator smart contract. The Holograph team has patched the initial exploit and is collaborating with exchange partners to freeze the affected accounts. A decentralized finance researcher suspects a rogue developer orchestrated the attack. Holograph Contemplates Engaging Law Enforcement […]
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Mad Money’s Jim Cramer Endorses Ether as ‘Great Store of Value’ Amid US Dollar Concerns
Jim Cramer, the host of CNBC’s Mad Money show, has endorsed ethereum and spot ether exchange-traded funds (ETFs), highlighting the cryptocurrency as a “great store of value” amid concerns over the U.S. dollar due to federal budget deficits. “I have ether because it’s a great store of value,” he affirmed. Jim Cramer on Ethereum and […]
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Value Locked in Defi Nears $100B Range Again After $11.89B Increase in 35 Days
Over the past 35 days, the total value locked in decentralized finance (defi) protocols has expanded by .89 billion, recovering from a low of just over billion on April 13. Although it has not yet reached the 0 billion mark, the value locked in defi is approaching that milestone after hovering just below it. […]
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Dolce & Gabbana Sued Over $6,000 NFTs Losing 97% Value
Dolce & Gabbana USA Inc. faces a lawsuit from a customer who claims the non-fungible tokens (NFTs) he bought for ,000, which included metaverse outfits, lost 97% of their value due to delivery failures by the luxury fashion house. The complaint, filed in Manhattan federal court, alleges the NFTs were promoted with various digital, physical, […]
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