The Financial Services Agency (FSA) of Japan issued a warning to Lbank Exchange, an overseas cryptocurrency platform, for operating without registration. Lbank, which ranks 56th in trading volume according to Coingecko, has been offering services to Japanese residents despite reportedly having an unknown address and representative. This action follows similar warnings issued by the FSA […]
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Bybit Affiliate Withdraws Hong Kong VASP Application Months After Regulator Issued License Warning
The Singaporean crypto exchange Bybit’s affiliate Spark Fintech Limited, has abandoned its pursuit of an operating license in Hong Kong. The affiliate withdrew its virtual asset trading platform application on May 31, exactly four months after submitting it. The decision followed the Hong Kong regulator’s classification of Bybit as an unlicensed entity, accompanied by threats […]
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Lil Pump-And-Dump: SEC Issues Warning As More Musicians Dump Their Memecoins
The celebrity token frenzy seems to be the hottest topic of the week. The newly launched memecoins have been criticized by crypto community members as the tokens have been launched with massive controversy.
After a week or so of pumping and dumping, the US Securities and Exchange Commission (SEC) issued an Investor Alert. However, the SEC’s warning didn’t stop more musicians from joining the crypto festival of Q2.
SEC Warns About Celebrity Memecoins
On Wednesday, the US SEC released an Investor Alert targeting memecoins. In the warning, the Commission alerted users about pump-and-dump and pre-sale schemes involving meme-based tokens.
The SEC explained that “fraudsters may create a memecoin and then tout it on social media.” After pumping the price and selling to make a profit, investors see most of their money gone as the price rapidly decreases.
The celebrity memecoins launch frenzy became a trend this past week. As a result, many mainstream media figures, influencers, musicians, and athletes have shown “interest” in the crypto space.
In most cases, these celebrities start engaging with the crypto community right before promoting their soon-to-be-launched memecoins. Nonetheless, the recent trend has been particularly controversial since these figures have, for the most part, worked with an alleged serial scammer.
Recently, celebrities and community members accused a man named Sahil Arora of allegedly orchestrating several pump-and-dump scams. Arora seemingly scammed investors and partners in every memecoin launch he’s been involved with.
Australian rapper Iggy Azalea launched MOTHER two days ago and claimed to have created the token to stop Arora from using her image on his scams. Moreover, Rich the Kid and Caitlyn Jenner have come out stating that the alleged scammer lied to them.
Now, more musicians have joined the crypto festival of memecoins while being accused of dumping their fans.
More Musical Acts To Headline Memecoinchella
On Wednesday, crypto sleuth ZachXBT accused famous rapper Lil Pump of participating in a pump-and-dump scam. According to the internet investigator, the rapper shared and quickly deleted a post promoting his memecoin after the token was dumped.
The post stated “lil or big pump” and tagged one of Arora’s accounts. Lil Pump answered the allegations, claiming to never have made a token and accusing Arora of scamming him and his fans. Moreover, he seemingly sent “proof” to the crypto detective to prove his innocence.
In the early hours of Thursday, the rapper claimed to have taken control of his accounts and the memecoin. Moreover, he distanced himself from the alleged serial scammer. However, ZachXBT shared some screenshots of a conversation between Lil Pump’s team and the person managing the memecoin launch.
According to the images, Pump’s team was not aware of Arora’s track record, but as the investigator explained, he “still got partially paid for the scam.” Additionally, his team hid the paid promo tag, which is an X requirement. ZachXBT pointed out that the rapper also did the same in 2022.
Throughout the night, the internet sleuth listed several other artists who joined the crypto scam headlines. The list includes American rapper MoneyBagg Yo, Trippie Redd, and Davido.
Giving A Platform To Scammers
American-Nigerian singer and producer Davido was, alongside Lil Pump, the biggest topic on Wednesday night. The singer promoted his Davido token alongside figures inside the crypto space.
Crypto trader Ansem held an X Space session with the music producer to discuss his project. According to online reports, the singer dumped over half of his DAVIDO holdings while on the X session.
Lookonchain revealed that Davido made over 2,783 SOL, worth around 473,000, after selling 121.8 million DAVIDO tokens. Per the post, the singer received 7.5 SOL as start-up capital, which he used to buy 20.3% of the memecoin’s total supply.
The community wasn’t pleased with the crypto trader’s involvement in the incident. As a result, an important discussion was brought up by several community members. Many pointed out that platforming individuals, celebrity or not, who seemingly have no real interest in the space is predatory and dangerous.
As pointed out by ZachXBT, “leading the spaces provides credibility to them” and gives “celebs the platform to do this to people repeatedly.”
Crypto Analyst Sounds Warning Alarm For Potential 50-60% Crash In Chainlink Price, Here’s Why
Crypto analyst CrediBULL Crypto recently warned that Chainlink (LINK) could experience a 50% to 60% drop in its price. However, based on his explanation, LINK holders may not have cause to worry as such a price drop is part of the crypto token’s growth.
Why Chainlink Will Experience A Price Drop
CrediBULL Crypto explained in an X (formerly Twitter) post that a “50-60% drawdown is normal, natural, and healthy” given that Chainlink has experienced ten months of up only and a 4x rally.” The analyst expects this price drawdown to last about two to three months and suggested that Chainlink could see brief price surges, but that doesn’t invalidate the current bearish trend.
In a video posted on his YouTube channel, CrediBULL Crypto further explained why he is so confident in shorting Chainlink. He alluded to the rise in the crypto token’s open interest and claimed that many levered players entered Chainlink on the pump to a major resistance level. He expects that those investors who opened longs will likely begin to close their positions as soon as Bitcoin experiences a pullback and the crypto market starts bleeding again.
The crypto analyst added that these investors will capitulate at the lows, which will bring Chainlink’s price to the range lows. CrediBULL Crypto claimed that this move will bring LINK back down to .96, about a 30% drop from its current price levels. Based on this, he revealed that he will be looking to short Chainlink around , which is the likely level for rejection.
Same Expectations For Meme Coins
CrediBULL Crypto also expects meme coins to experience a significant price drawdown, given the parabolic rally they have enjoyed since the beginning of the year. Meme coins Dogwifhat (WIF) and Pepe (PEPE) have been the most significant year-to-date (YTD) gainers among the top 50 crypto tokens, with price gains of over 1,400% and 500%, respectively.
The crypto analyst warned that some major meme coins have already seen their tops and will likely experience significant declines. In the YouTube video he posted, he also gave insights into how low Dogecoin, WIF, and Pepe could drop.
For Dogecoin, he predicts that the foremost meme coin could drop to as low as .10. However, CrediBULL Crypto noted that he can’t short Dogecoin yet because he expects a relief pump to .18, the range he is looking to open a short position.
Meanwhile, he predicts that WIF could drop to as low as .6, revealing that he will be looking to short it at .90 because he expects the meme coin to enjoy one last push to the upside before dropping to the downside. CrediBULL also predicts a significant price decline for PEPE. He claims the meme coin could experience a drawdown of as much as 60% since it recently hit a new all-time high (ATH).
French Regulator Renews Warning Against Blacklisted Bybit
The French securities regulator, the Autorité des Marchés Financiers (AMF), has issued a renewed warning against using the digital asset platform Bybit. The AMF reminded French investors that Bybit is an unregistered crypto platform operating illegally in the country. The regulator has advised French investors who use Bybit to take all the necessary precautions to […]
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Why Is This Crypto Pundit Warning XRP Investors To Be At Alert For The Next 3-12 Months
A crypto analyst identified as ‘Egrag Crypto’ has recently taken to X (formerly Twitter) to issue a warning to XRP investors regarding a potential bear market that could trigger a massive correction for the price of XRP.
XRP Holders Prepare For More Declines In 2025
According to Egrag Crypto, XRP is expected to enter a steep bear market stage in 2025. The analyst based his predictions on a technical analysis tool he called the “Gaussian Channel,” revealing three distinct technical phases for XRP, including a Green A, Green B and Green C phase.
He noted that the bearish phase in Green A had already been completed. However, the Green B phase is expected to end by June 2025, and Green C is anticipated to conclude by January 2025. The analyst further emphasized that the aforementioned dates do not represent cycle tops but indicate the beginning of a “deep bear market phase.”
He also revealed that the Gaussian Channel was a technical analysis tool used to visualize price movements of cryptocurrencies around a mean average price. The purpose of the tool is to help identify volatility, risks, and certain support and resistance levels. Additionally, analyzing the historical trends and durations of the green phases provided by the Gaussian Channel provides valuable insights that can be used to interpret future price movements.
Presently, the price of XRP has remained relatively unchanged for the past few months, primarily consolidating around the .5 mark without witnessing any significant momentum. This lackluster performance can be attributed to the ongoing legal challenges the cryptocurrency has faced with the United States Securities and Exchange Commission (SEC) over the past four years.
While Egrag crypto anticipates more bearish sentiment for XRP in the coming year, the crypto analyst also suggests that the next 3 to 12 months could present critical trading opportunities as the market evolves. He cautions XRP holders to remain vigilant and prepared for potential market volatility, which could lead to a “life-changing window.”
Analyst Highlights XRP’s Resilience
In a previous X post, Egrag Crypto maintained an optimistic outlook for the price of XRP. He emphasized the cryptocurrency’s strength and resilience, noting that XRP was indicating strong bullish signals in its price fundamentals.
He revealed that if XRP can maintain a critical position within the “Launching Channel,” a trading pattern identified by partial wicking candles and ascending consolidation, the cryptocurrency could see its value potentially surging to .4.
At the time of writing, the price of XRP is trading at .51, reflecting an increase of 3.51%, over the past 24 hours, according to CoinMarketCap.
Egrag Crypto has advised the broader XRP community to remain “calm and steady,” as the next three to six months could present significant opportunities for investors.
No Ties To OpenAI: Worldcoin Drops 9% As Top Trader Issues Warning
Worldcoin (WLD) has seen its value plummet by nearly 9% in just 24 hours, with the price settling at around .20. This decline aligns with a critical analysis issued by DeFi^2 (@DefiSquared), the current top trader on the crypt exchange Bybit, who has raised concerns about the potential for substantial inflationary pressures and misleading marketing associated with Worldcoin.
Notably, the WLD plunge comes just after OpenAI, the creator of ChatGPT, announced on Monday its plans to unveil a cutting-edge AI model named GPT-4o. This advanced model boasts the ability to engage in lifelike voice conversations and seamlessly interact across text and images. Worldcoin is usually a beneficiary of OpenAI announcements, but this time WLD price plunged.
Why Worldcoin Is Plummeting
In his analysis shared on X, DeFi^2 expounded on the mechanics behind the rapid devaluation of Worldcoin, emphasizing that the token is suffering from significant daily depreciation due to both emissions and strategic sales maneuvers by the Worldcoin Foundation.
Specifically, the token’s value is deteriorating at a rate of 0.6% each day, driven by the emissions related to grant and operator claims. These tokens, as per DeFi^2’s observation of on-chain analytics, are predominantly sold off almost immediately upon issuance, adding to the downward pressure on Worldcoin’s price.
Adding to the supply concerns, the Worldcoin Foundation recently declared its intention to offload 0 million worth of Worldcoin to trading firms. This move will effectively increase the circulating supply by an additional 18%. DeFi^2 criticized this decision, pointing out that the tokens, misleadingly attributed to a “Community” allocation, are being sold at a discount to entities that may not prioritize the broader community’s interests, potentially diluting the value for existing holders.
The most critical issue highlighted by DeFi^2, however, pertains to the near future, when unlocks for venture capital and team-related tokens are set to begin. He forecasts that in just 70 days, the supply of Worldcoin will start to inflate at an alarming rate of 4% per day due to these unlocks combined with ongoing emissions. This scenario could unleash nearly million worth of sell pressure daily, profoundly impacting the token’s market price and stability.
DeFi^2’s analysis did not shy away from addressing the perceived misconceptions surrounding Worldcoin’s affiliation with notable tech personalities and organizations. He clarified that Sam Altman, known for his role with OpenAI, has no active involvement with Worldcoin, which operates as a completely separate entity. This point addresses a common misconception that potentially misled investors about the nature and backing of the token.
Moreover, DeFi^2 drew parallels between Worldcoin’s tokenomics and what he describes as “predatory” economic models that are engineered to disproportionately benefit early investors and insiders at the expense of general retail investors. He noted that similar strategies had been used in the past in the crypto industry, where the manipulation of token supply and market conditions facilitated significant gains for insiders while leaving regular investors exposed to heightened risks and losses.
“Worldcoin realistically might become the greatest transfer of wealth of this entire cycle. Unfortunately, this wealth transfer isn’t in the form of universal basic income as their mission suggests, but instead to the pockets of the team and insiders,” DeFi^2 stated. He added that “the manipulative low float / high FDV design is straight out of the SBF playbook, and directly enriches insiders as they hedge their locked allocations at high valuations pre-unlock via perps / OTC; yet retail somehow sadly still think they’re beating the system trying to push the price up.”
As the crypto community digests DeFi^2’s stark warnings, the immediate reaction has been a surge in trading activity to 6 million (up 104% in the last 24 hours), with investors and speculators likely reassessing their positions in Worldcoin in light of these revelations. At press time, WLD traded at .24.
Tether Counters Deutsche Bank’s Stablecoin Warning, Defends Reserve Transparency
Tether strongly criticized a Deutsche Bank report that raised concerns about the stability of stablecoins, including Tether’s dollar-pegged token, predicting a potential crisis similar to the 2022 collapse of Terrausd, which erased billions from the market. Deutsche Bank analysts, citing a study of 334 historical currency pegs, suggested that most stablecoins will face significant challenges […]
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South Africa’s FIC Unveils Draft Directive for Travel Rule Implementation; Crypto Industry Leader Issues Warning
The South African Financial Intelligence Centre recently issued a draft directive calling crypto-asset service providers to implement the Financial Action Task Force’s (FATF) travel rule. However, key figures in South Africa’s crypto industry say several factors could hinder the implementation of the FATF’s Recommendation 16. CASP Interactions With Unhosted Wallets The South African Financial Intelligence […]
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Snowden Issues ‘Final Warning’ to Bitcoin Developers on Privacy Enhancements
In the wake of the U.S. intensifying its clampdown on privacy-oriented software and Zksnacks closing its coordinated coinjoin service, Edward Snowden, the NSA whistleblower and former contractor, has issued a stern warning to Bitcoin developers. Snowden emphasizes that time is running out for enhancing privacy and insists it must be integrated at the protocol level. […]
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