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- El Salvador’s Bitcoin investment hits profits 📈🪙
El Salvador’s Bitcoin investment hits profits 📈🪙
PLUS: Crypto lender Celsius to unstake $470M in Ethereum ahead of repayments. Japanese Firms Collect Crypto Donations for Earthquake Victims.
Manan Vora
January 05, 2024
Snapshot Web3
January 5, 2024
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Regulatory and Legal News
El Salvador's Bitcoin investment has increased by almost 3%, according to President Nayib Bukele. The country has no intention of selling and is focused on a long-term strategy. Despite facing losses during the bear market, the current Bitcoin market price allows El Salvador to recover 100% of its initial investment and make a profit of $3,620,277.13 USD. El Salvador is significant in the crypto space as the first country to adopt Bitcoin as legal tender.
The article proposes five key reforms for Congress in 2024 concerning cryptocurrency. First, it suggests explicitly stating that the Federal Reserve lacks the authority to launch a central bank digital currency (CBDC). Second, it advocates for increased oversight on the Federal Reserve's activities to ensure transparent cost recovery. Third, the article recommends clarifying the term "legal tender" to prevent confusion. Fourth, it proposes safeguarding the use of self-hosted wallets to protect privacy and innovation. Lastly, it calls for removing exceptions from the Right to Financial Privacy Act, ensuring financial privacy by requiring law enforcement to obtain warrants for Americans' financial records.
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NFT, Gaming and Metaverse
Social media influencer Logan Paul has committed over $2.3 million to personally buy back Base Eggs and Base Animals NFTs from victims of the failed NFT project CryptoZoo, which he launched and endorsed. Paul acknowledged the project's derailment by bad actors who sabotaged the game and betrayed the team, resulting in financial losses for investors. The buy-back program aims to reimburse those who intended to participate in CryptoZoo, which faced scrutiny for its business model and unfulfilled promises.
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Scams and Hacks
An investigation by The Guardian reveals deceptive practices in the HyperVerse crypto project, allegedly causing a $1.3 billion loss for investors. The legitimacy of HyperVerse's CEO, Steven Reece Lewis, is questioned as his claimed qualifications have no basis, and regulatory concerns arise as the Australian Securities and Investments Commission (ASIC) has not taken action despite warnings from overseas regulators. HyperVerse attracted investors with promises of substantial returns and endorsements from celebrities like Chuck Norris. The project is accused of capitalizing on false claims and celebrity endorsements to defraud investors.
Polychain Capital, a crypto venture capital firm, has confirmed that the X account of its founder and CEO, Olaf Carlson-Wee, has been hacked. The hacker posted phishing links, pretending to offer an airdrop. Polychain warned X users to avoid interacting with Carlson-Wee’s account and advised caution. Phishing scams, which trick users into signing malicious transactions, have been a recurring issue in the crypto space. Similar incidents, such as the compromise of Ethereum co-founder Vitalik Buterin's X account in September 2023, have taken place, highlighting the need for user vigilance in the crypto community.
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Funding and Acquisitions
Perplexity AI, a San Francisco-based startup specializing in AI-powered search engines, has raised $73.6 million in a Series B funding round led by Institutional Venture Partners (IVP), boosting its valuation to $520 million. The company, founded less than two years ago, focuses on delivering direct answers to queries using natural language processing and has attracted 10 million monthly active users. Perplexity AI integrates its search index with AI models like Claude 2 and GPT-4. Although not yet profitable, the company generates revenue through its $20 per month Pro offering. CEO Aravind Srinivas sees Perplexity AI as a next-generation tool redefining online information access.
Crypto lending platform Celsius is unstaking $470 million worth of Ethereum (ETH) as it prepares for distributions to creditors amid its Chapter 11 bankruptcy filing. The move aims to ensure ample liquidity for asset distributions and offset certain costs incurred during the restructuring process. Almost a third of the ETH in the pending withdrawal queue belongs to Celsius, totaling 206,300 ETH valued at around $468.5 million. The funds will be used to unlock ETH and facilitate timely distributions to creditors. While some express concerns about potential market impact, others view it as a positive development for Ethereum.
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Interesting Reads
The number of "buy the dip" mentions on social media reached its highest level in 22 months, according to data from Santiment. The phrase was mentioned 323 times, the most since March 25, 2022. This surge in social media mentions indicates high trader optimism for a quick market recovery. Google Trends data shows an increasing interest in the term "buy the dip" since the end of November 2023, with X (formerly Twitter) users particularly optimistic about prices recovering quickly. However, such surges in buy-the-dip calls have historically presented opportunities for patient traders but have also marked deeper corrections in the market.
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Miscellaneous
Some of Japan’s biggest crypto firms are building donation platforms to help victims of the Noto Peninsula earthquake. Per the Japanese news outlet CoinPost, crypto donors have already given “tens of millions of yen” worth of tokens to charities aiding earthquake victims.
According to Bloomberg ETF analyst James Seyffart, the U.S. securities regulator implicitly accepted Ether as a commodity when it green-lit Ethereum futures ETFs.
The president of Ace Exchange said none of the firm’s employees had been arrested following Taiwanese police conducting raids as part of a fraud investigation.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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