Article Headline: Trump-themed Meme Coins Plummet, TRUMP Drops Nearly 25%
Article:
Former US President Donald Trump’s themed meme coin has experienced a significant drop in price following his conviction on 34 counts in the “hush money” case. The MAGA coin (code TRUMP), the largest Trump-themed meme coin by market value, plummeted from $15 before the conviction to $11.27, a decrease of nearly 25%. Other related coins such as MAGA Hat (code MAGA), Super Trump (code STRUMP), and MAGA VP (code MVP) also experienced declines ranging from 16% to 22%.
Simultaneously, stocks of Trump media and tech group (DJT) on the NASDAQ fell by 9% in after-hours trading. On the other hand, meme coin Jeo Boden (code BODEN), associated with current President Joe Biden, saw a 12% increase in price within an hour. The market fluctuations are significant, so risk management is advised.
Following the conviction, Trump denied all charges and claimed that the trial was “manipulated.” This is the first time in US history that a president has been convicted on serious charges.
In the “hush money” case, a jury in New York convicted Trump on all 34 counts of falsifying business records. The New York State prosecutor accused Trump of paying $130,000 in “hush money” to adult film star Stormy Daniels (real name Stephanie Clifford) through his attorney Michael Cohen to prevent her from disclosing a 2006 affair with Trump during his 2016 presidential campaign. Trump later falsified business records to disguise the payments as legal fees, in violation of New York State and federal election laws. According to previous reports, the jury had to reach a unanimous decision in this case.
Trump denied all charges following the conviction, claiming that the trial was “manipulated.” This is the first time in US history that a president has been convicted on serious charges.
Market Updates:
As of the time of writing, according to Coingecko data:
BTC recent trading price is $68,349.10, with a 1.2% change in the past 24 hours.
ETH recent trading price is $3,748.09, with a -0.4% change in the past 24 hours.
BNB recent trading price is $594.83, with a -0.0% change in the past 24 hours.
SOL recent trading price is $167.00, with a -0.7% change in the past 24 hours.
DOGE recent trading price is $0.1595, with a -2.5% change in the past 24 hours.
XPR recent trading price is $0.5189, with a -0.8% change in the past 24 hours.
Policy:
US Senators Cynthia Lummis and Patrick McHenry urge President Biden not to veto the bill overturning SEC Announcement SAB 121. On Thursday, Senators Cynthia Lummis and Patrick McHenry, along with other legislators, wrote a letter to President Biden, urging him not to veto legislation that would overturn SEC staff accounting announcement SAB 121. The announcement requires companies holding cryptocurrencies on behalf of customers to record them as liabilities on their balance sheets, sparking widespread controversy within the crypto industry. The legislators noted in the letter that the measure has been passed by both the House of Representatives and the Senate with broad bipartisan support. The bill passed the House by a vote of 228 to 182, including support from 21 Democrats. In the Senate, it passed by a vote of 60 to 38, including support from several Democrats, including Senate Majority Leader Chuck Schumer. The letter stated, “Given the overwhelming bipartisan votes in favor of the measure, we urge you to sign H.J. Res. 109 into law or work with the SEC to rescind the staff guidance.”
Former Deutsche Bank executive sentenced to 41 months in prison for cryptocurrency fraud. Former Deutsche Bank executive Rashawn Russell was sentenced to 41 months in prison on May 31 in the Eastern District of New York federal court in Brooklyn. He pleaded guilty to charges of cryptocurrency fraud and attempted bank card fraud last September. According to the US Department of Justice, Russell operated the fraudulent R3 Crypto Fund between November 2020 and August 2022, promising cryptocurrency investments and high returns but actually using investors’ funds for personal expenses or to repay other investors. Additionally, from September 2021 to June 2023, Russell used at least 43 identities to obtain 97 bank cards with the intent to engage in fraudulent transactions. In addition to the prison sentence, he was ordered to pay $1.5 million in restitution to the victims. Russell’s case is just one example of many cryptocurrency fraud cases in recent months.
CFTC Commissioner: Implementation of FIT21 Act may take a long time. CFTC Commissioner Summer Mersinger stated at the 2024 Consensus conference that the implementation of the 21st Century Financial Innovation and Technology (FIT21) Act may require several months or even years of coordination involving multiple US regulatory agencies. The bill, which has passed in the House of Representatives, is facing challenges in the Senate and aims to clarify the regulatory responsibilities of the SEC and CFTC in relation to digital assets. SEC Commissioner Hester Pierce noted that congressional interest in cryptocurrency legislation stems from dissatisfaction with the SEC’s regulatory approach. The Biden administration has expressed concerns about potential regulatory gaps that the bill could create.
Opinion: Current US regulatory agencies cannot effectively regulate cryptocurrencies. Attorney and strategic advisor Alexandra Damsker highlighted in “Understanding DeFi” that current regulatory agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) cannot effectively regulate cryptocurrencies due to the changing nature of tokens. Damsker explained that the existing regulatory framework assumes that regulated projects are static, while tokens are dynamic and can have multiple functions simultaneously, even among different holders or within the same holder’s possession. This dynamic nature makes it challenging for any existing regulatory system to fully apply. Damsker further suggested that attempting to fit tokens into traditional regulatory frameworks can only provide limited protection and potentially restrict innovation. Therefore, she called for the design of new regulatory approaches tailored to tokens and their dynamic characteristics to better adapt to the rapidly evolving technological landscape.
US SEC requests initial S-1 draft filing from spot Ethereum ETF issuers by Friday. According to sources, the US SEC has requested spot Ethereum ETF issuers to submit their initial S-1 draft filings by Friday. The SEC will then provide initial comments, and further revisions are expected before the S-1 filings are ready. BlackRock and VanEck have already submitted modified S-1 filings, while other issuers are still pending submission.
Blockchain Applications:
Franklin Templeton CEO: Blockchain technology will be transformative. Franklin Templeton President and CEO Jenny Johnson stated during a discussion at Consensus 2024 that blockchain technology will be transformative, highlighting the company’s active research and application of the technology. She emphasized the efficiency and potential cost reduction of tokenization in lowering operational costs. Additionally, Franklin Templeton is one of the first firms approved to trade Bitcoin exchange-traded funds (ETFs) and is also awaiting approval to launch an Ether ETF.
Aptos integrates Chainlink’s CCIP and data feeds to facilitate decentralized application development. Aptos (APT) announced on Thursday that it is integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and data feeds from real-world providers as part of its inclusion in Chainlink’s SCALE program. The expansion aims to assist developers on Aptos in building decentralized applications (dApps) on the network.
BIS launches Project Agorá to explore tokenized cross-border payments. The Bank for International Settlements (BIS) Innovation Hub has launched Project Agorá in collaboration with seven central banks to transform cross-border payments using tokenization. The project utilizes wholesale central bank digital currencies (wCBDCs) and tokenized deposits to execute payments on a unified ledger, simplifying compliance processes. Tokenization enables atomic settlement, where payments are simultaneously reflected in the balances of all banks, and streamlines know your customer (KYC) and anti-money laundering (AML) procedures. BIS is also experimenting with shared protocols in Project Mandala, providing “proof of compliance” and suggesting the use of artificial intelligence (AI) to establish AML monitoring models. BIS emphasizes that the next generation of correspondent banking should be inclusive, accessible, and able to capture network effects.
Cryptocurrencies:
Grayscale submits revised S-3 registration statement for spot Ethereum ETF. Following BlackRock’s submission of a revised S-1 statement for a spot Ethereum ETF, Grayscale submitted a revised S-3 registration statement on Thursday. More revised registration statements are expected to follow. Grayscale discusses the regulatory treatment of Ether in its latest filing.
US presidential candidate Kennedy expresses support for cryptocurrencies, purchases 21 Bitcoins. US presidential candidate Robert F. Kennedy Jr. expressed his views on Trump’s guilty conviction and cryptocurrencies during the Consensus 2024 conference in Austin, Texas. Kennedy stated that he would focus on economic and health issues and would not involve himself in the legal disputes of Trump or Biden. He appreciated Trump’s new stance on supporting cryptocurrencies, believing it contributes to freedom and transparency. He expressed hope that President Biden would adopt a similar position.
Kennedy pointed out that the key issue in US cryptocurrency regulation is transaction freedom and transparent currency. He pledged to protect consumers from fraud while ensuring that the US maintains its leadership in blockchain technology. He revealed that he purchased 21 Bitcoins during his campaign and three coins for each of his children. Kennedy also expressed a vision of using cryptocurrencies as a medium of exchange and advocated for no capital gains tax on them. His campaign goal is to enable people to freely use cryptocurrencies for everyday transactions.
BlackRock and Fidelity currently hold a total of 451,338 BTC for their spot Bitcoin ETFs. BlackRock and Fidelity currently hold a total of 451,338 BTC, worth $30.9 billion, for their spot Bitcoin ETFs. These ETFs hold 236,938 more BTC than MicroStrategy.
US Senator Elizabeth Warren inquires about progress in combating cryptocurrency’s connection to fentanyl by drug enforcement agencies. US Senator Elizabeth Warren has requested an update from the Biden administration on the latest progress in restricting the use of cryptocurrencies in fentanyl trafficking. She wrote a letter to the White House Office of National Drug Control Policy and the Drug Enforcement Administration (DEA) along with Senator Bill Cassidy, seeking an update on the “efforts to combat the use of cryptocurrency to develop illicit business and money laundering by drug traffickers.” The letter noted that cryptocurrencies have played an increasingly significant role in the global fentanyl trade over the past decade, facilitating the production, trafficking, and laundering of proceeds for drug cartels. The US Treasury and federal law enforcement agencies have been investigating networks and individuals involved in the trafficking of precursor chemicals for fentanyl. Warren proposed the need for legislation to shut down the use of digital assets in this global drug trade.
SBF returns to US New York prison he left a week ago. Sam Bankman-Fried, co-founder of cryptocurrency exchange FTX, has returned to the US New York prison he left a week ago.
Important Economic Developments:
Probability of the US Fed maintaining interest rates in June is 98.9%. According to CME’s “FedWatch,” the probability of the US Federal Reserve maintaining interest rates in June is 98.9%, while the probability of a 25 basis point rate hike is 1.1%. The probability of the Fed keeping interest rates unchanged until August is 86.8%, with a 12.3% probability of a cumulative 25 basis point rate cut and a 1.0% probability of a cumulative 25 basis point rate hike.
US Fed’s Bullard: Inflation will decline very slowly. US Federal Reserve’s Bullard stated that the outlook is for inflation to decline very slowly, and the Fed needs to maintain a restrictive stance. He does not think there is an urgency to adjust monetary policy. He does not believe a rate cut is needed to achieve the 2% target. The economy continues to grow, but at a slower pace. He expects inflation to reach the target without a significant increase in the unemployment rate. If a rate cut in September is appropriate, we will do it; it is not a political decision.
US stock market’s three major indices collectively decline. The three major US stock indices collectively declined, with the Dow falling by 0.86%, the Nasdaq by 1.08%, and the S&P 500 by 0.6%. Most popular tech stocks experienced declines, with Nvidia and Microsoft dropping over 3% and Google falling over 2%.
US Fed’s Williams: Uncertain about when rate cut will happen, depends on data. US Federal Reserve’s Williams stated that he is uncertain about when a rate cut will happen, as it depends on data performance. He does not feel a sense of urgency in adjusting monetary policy. He believes a rate cut is not needed for inflation to reach 2%. He expects the inflation rate to reach 2% by early 2026. Furthermore, he indicated that a rate hike is not his baseline expectation.
Additionally, US Fed’s Williams stated that there is ample evidence that monetary policy is restrictive. He expects the PCE inflation rate to decline to 2.5% in 2024 and be close to 2% in 2025. He expects US inflation to slow down in the second half of 2024. He forecasts GDP growth of 2%-2.5% in 2024 and unemployment rate at around 4%. The recent data does not indicate a halt in the declining trend of inflation.
Gold Encyclopedia:
What is ERC-404?
ERC-404 is an experimental token standard that combines elements of the ERC-20 and ERC-721 token standards to create tokens with both fungible and non-fungible properties. The ERC-404 token standard is named after the famous web error code “Error 404,” allowing NFTs to be subdivided within the constraints of the Ethereum network. This is achieved by linking NFTs to fungible tokens through fractional division.
