Snapshot Web3

January 9, 2024

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Regulatory and Legal News

Gary Gensler issues warning on crypto ahead of potential spot Bitcoin ETF approval

United States Securities and Exchange Commission (SEC) Chair Gary Gensler issued a warning on cryptocurrency investments, emphasizing their exceptional risk and volatility. Although he didn't specifically mention a spot Bitcoin ETF, his remarks come as many await the SEC's decision on spot Bitcoin exchange-traded fund applications. Gensler highlighted concerns about non-compliance with federal securities laws by some asset managers offering crypto investment vehicles and warned of fraud in the crypto space, including bogus coin offerings, Ponzi schemes, and theft. This warning follows the filing of amended S-1 applications by several spot Bitcoin ETF issuers, marking one of the final steps toward potential approval by the SEC.

Thai digital money giveaway in question after report to government

The Thai government's plan to distribute digital baht to citizens over 16 as an economic stimulus is facing uncertainties after an unpublished report from the Office of the Council of State. The report, as per The Nation, suggested a negative stance, stating that if the government believed such a measure was necessary, it should have enacted it by decree instead of proposing a bill for borrowing the required funds. However, Deputy Finance Minister Julapun Amornvivat claimed that the council concluded the plan was legal and could proceed as expected on May 1. The plan has faced opposition, with some considering it an election ploy, while supporters anticipate economic growth. The report will not be made public.

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Innovation and Launches

Japanese e-commerce giant Mercari to allow Bitcoin payments from June

Japanese e-commerce giant Mercari will enable users to make purchases on its flea market app using Bitcoin starting in June. The integration will be facilitated through Mercari's crypto exchange subsidiary, Melcoin. Items will be priced in Japanese yen, and users can choose to pay in Bitcoin, with the platform converting the BTC to local fiat currency for vendors and sellers in real time. Mercari has embraced cryptocurrency on its platform in recent years, introducing services like Mercari Bitcoin for trading BTC and allowing users to swap loyalty points for cryptocurrencies. Japan is known for its crypto-friendly regulations, fostering adoption through platforms like Mercari and Rakuten.

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Scams and Hacks

X offers 80% price cut for gold check accounts amid surge in crypto scams

X (formerly Twitter) has reduced the price of its gold checkmarks, used for verification on the platform, from $1,000 to $200 monthly for a "basic" plan. This decision followed a report from cybersecurity firm CloudSEK indicating that threat actors targeted X accounts with gold check verification for malicious campaigns, including job and crypto scams. Scammers reportedly took over inactive accounts, converted them to gold accounts, and exploited the verification system to push fraudulent activities. The price cut may be an attempt to attract more paid subscribers, as the platform faces challenges related to scams and misuse of verified accounts.

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Funding, Acquisitions and Partnerships

Crypto miner CleanSpark mulls buying 160K Bitcoin miners by 2025

CleanSpark, a U.S.-based Bitcoin miner, has entered a strategic agreement to potentially purchase 160,000 Bitcoin miners by the end of 2024. The company has already bought 60,000 Bitmain S21 units at $16.10 per terahash for $193.2 million, with delivery expected between April and June 2024. CleanSpark may exercise a strategic call option to purchase an additional 100,000 machines for $16 per terahash before the end of 2024. If all miners are installed, the company anticipates its hash rate to reach 50 exahashes per second, a 400% increase from its current 10 EH/s. This move is seen as a hedge against potential rising machine prices in future bull markets.

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Price Action

Standard Chartered tips $200K Bitcoin by late 2025 if ETFs approved

Standard Chartered predicts that Bitcoin (BTC) could reach nearly $200,000 by late 2025 if spot Bitcoin exchange-traded funds (ETFs) are approved and successful in the United States. The forecast is based on the assumption that between 437,000 and 1.32 million Bitcoin will be held in U.S.-listed spot Bitcoin ETFs by the end of 2024, translating to an estimated $50-100 billion in inflows. The bank sees ETF-related inflows as a potential "watershed moment" for normalizing Bitcoin participation, and if the anticipated inflows materialize, they believe an end-2025 price of around $200,000 is possible. However, some industry analysts express caution, with Bloomberg Intelligence's Mike McGlone warning of potential risks and the need to avoid becoming overly bullish on Bitcoin amid market dynamics.

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Interesting Reads

Solana now boasts more than 2,500 monthly active developers

The Solana ecosystem reports more than 2,500 monthly active developers, according to data from the Solana Foundation. The figure represents a consistent developer base and indicates a healthy ecosystem, showcasing its ability to attract and retain talent. However, data from Electric Capital’s Developer Report as of Oct. 1, 2023, shows a decline in Solana's developer count from an all-time high of 2,634 on Dec. 22, 2022. Despite this, Solana's developer retention has increased by 50% over the last three months. The discrepancy in data highlights the challenges in tracking and measuring developer activity in blockchain ecosystems.

What 3 things should Web3 founders think about in 2024?

Web3 founders in 2024 should prioritize interoperability for greater adoption, emphasizing thoughtful tokenomics and sustainability. User-centric design, focusing on user experience and accessibility, is crucial for broader adoption, along with fostering interoperability standards. Additionally, founders must concentrate on users, user-generated content, and improved account abstraction solutions. Embracing the founder mentality, executing swiftly, networking strategically, and solving priority consumer pain points are key to success in the dynamic Web3 industry. Building net new experiences and applications that leverage blockchain technology's capabilities while maintaining mental fortitude and clarity on business goals are essential for sustained growth.

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Miscellaneous

Bitcoin to the moon: Spaceship carries physical BTC wallet on mission

The physical Bitcoin is also a crypto wallet with a public vanity address, allowing people to witness the redemption of the 1 BTC it contains in the future.

Curve Finance debt will cause 'one more stress test' in February — Analyst

X user DeFi Made Here claimed that Curve still contains a “systemic risk” that could compromise its entire ecosystem.

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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.