Top News
▌Tether Holds 25% Stake in Bitdeer, Second Largest Shareholder
According to a document disclosed by the U.S. Securities and Exchange Commission, the issuer of UST, Tether, currently holds a 25% stake in the Bitcoin mining company Bitdeer. This makes the company behind Tether (USDT) the second largest shareholder of BTC mining machines, second only to Victory Courage Ltd., reportedly registered under the name of Wu Jihan.
▌Telegram CEO to Launch Telegram Stars, Supports Mini Programs for Digital Service Payments
Telegram CEO Du Rove announced on the Telegram channel the launch of Telegram Stars, a way to pay for digital services through mini-programs. Mini-programs can accept payments for digital services and can be purchased within apps on Android and iOS, with programs like Notcoin requiring no installation. Developers can extract Stars using TON through Fragment and use Stars to further promote apps on Telegram under favorable conditions. When users purchase Stars from Apple and Google, a 30% fee is deducted, but Telegram will subsidize ads purchased using Telegram Stars.
Market
As of the time of writing, according to Coingecko data:
BTC recent trading price is $70,772.40, with a 0.5% daily change;
ETH recent trading price is $3,811.99, with a 1.5% daily change;
BNB recent trading price is $709.72, with a 0.4% daily change;
SOL recent trading price is $170.55, with a 1.9% daily change;
DOGE recent trading price is $0.1602, with a 2.0% daily change;
XPR recent trading price is $0.5217, with a 0.9% daily change.
Policy
▌Hong Kong Police Strengthen Anti-Illegal Gambling Promotion, Focus on Virtual Currency Betting
With the European national cup approaching, Hong Kong police are stepping up efforts to crack down on illegal online gambling, noting an increase in websites accepting virtual currency bets. Police point out that the anonymity and convenience of virtual currencies increase the risks of illegal gambling, but both cryptocurrencies and stored value payment tools are within the monitoring scope. The police will combat related crimes under the charge of “money laundering” and cooperate with mainland China and Macau. To this end, police will conduct promotions in various districts, including distributing flyers in bars.
Police data shows that last year, over 790 operations were conducted to combat illegal gambling, resulting in the arrest of approximately 6,100 individuals. In the first three months of this year, the police have investigated 99 related cases, a decrease of nearly 30% compared to the same period last year. The police also note that the average age of first-time gamblers has dropped to around 18, with internet access making it easier for young people to engage in illegal gambling.
▌New York Attorney General Sues NovaTech, Accusing $1 Billion Cryptocurrency Fraud
New York Attorney General Letitia James has filed a lawsuit against the cryptocurrency company NovaTech and its founders Cynthia and Eddy Petion, accusing them of involvement in a $1 billion fraud scheme. The lawsuit alleges that over 11,000 New York residents lost millions of dollars by investing in NovaTech. NovaTech is accused of being a Ponzi scheme and misrepresenting its licenses and registration status. The company collapsed in May 2023.
The couple previously founded AWS Mining, which was also accused of being a Ponzi scheme. James seeks to recover illegal proceeds and prohibit them from operating in New York State. Currently, the NovaTech website is still operational, claiming that the company’s funds were lost in a data breach and are in the process of recovery.
Blockchain Applications
▌zkSync: Initiates v24 Upgrade, Funds to Migrate to New Bridging Contract
According to the zkSync developer account on X platform, the v24 upgrade has begun, with the new L1SharedBridge being a new L1 contract. Funds from the old contract on zkSync Era will be migrated to the new contract, ensuring the security of user funds.
▌LayerZero CEO: Witch Hunt Work Not Yet Complete
LayerZero CEO Bryan Pellegrino posted on X platform, stating: “To those asking when the witch (review) affairs will end,” accompanied by an image saying, “Work is not yet finished.”
▌Alchemy Launches Rollup Tool to Help Developers Create Custom Layer2
Web3 infrastructure company Alchemy has launched a new Rollup tool aimed at helping developers create their own blockchain. This tool enables developers to easily build and deploy custom Layer 2 chains, enhancing development efficiency and simplifying the application of blockchain technology. Alchemy states that the release of this tool will drive widespread adoption of blockchain technology, especially in decentralized finance (DeFi) and other Web3 areas.
Cryptocurrency
▌Kraken Plans to Raise Over $1 Billion in Funding Before IPO
According to Bloomberg, sources familiar with the company’s plans state that the cryptocurrency exchange Kraken is in negotiations for pre-IPO financing. Kraken is seeking to raise over $1 billion in funding, with the completion expected by the end of this year. Rumors about Kraken’s listing have been circulating in recent years. The company has been dealing with charges brought by the U.S. Securities and Exchange Commission (SEC) last year, alleging that it operated an unregistered platform and mishandled client funds. A spokesperson declined to comment on the financing but stated, “We have been exploring strategic paths to achieve Kraken’s mission: accelerating the global adoption of cryptocurrencies. We remain fully focused on investing in this goal.”
▌Analysis: Power Contracts and Lower Valuations May Catalyze Consolidation in Crypto Mining Stocks
On Thursday, Bitcoin mining stocks outperformed other cryptocurrency-related stocks, with multiple industry takeover bids drawing attention to who might be the next target. Recently, one of the largest miners, Riot Platforms (RIOT), launched a hostile takeover bid for its peer Bitfarms (BITF), while the artificial intelligence company CoreWeave proposed to acquire another large mining company, CoreScientific (CORZ).
Although Bitfarms and CoreScientific rejected the takeover bids, these attempts remind investors that the industry may be ready for consolidation. B. Riley analyst Lucas Pipes suggests that power contracts and lower valuations may serve as a catalyst for initiating the consolidation phase in mining stocks. In a report, he wrote, “We believe the optimistic outlook in the power market could catalyze an increase in M&A activity this year, especially when there are still significant discrepancies in valuations.”
▌MicroStrategy Faces Highest Institutional Short Position, Strongest Bearish Sentiment
MicroStrategy (MSTR) faces a net short position of approximately $6.941 billion, accounting for 23.14% of its market value, indicating strong market bearish sentiment or widespread hedging demand. This high ratio could lead to increased market volatility and may even trigger a short squeeze.
In contrast, Coinbase (COIN) with a market value of approximately $62 billion has a net short position of $1.129 billion, accounting for 1.77% of its market value, reflecting relatively mild bearish sentiment. Marathon Digital Holdings (MARA) with a market value of around $6 billion has a net short position of $101 million, accounting for 1.68% of its market value.
These net short positions may be part of a strategic hedge, such as Kerrisdale Capital simultaneously shorting MSTR and longing Bitcoin.
Fintel’s data highlights the highest net short position faced by MicroStrategy among the three companies.
▌FTX Creditors Oppose Restructuring Plan, Citing Tax Issues with Cash Payments
A group of FTX creditors led by Sunil Kavuri filed opposition to the restructuring plan proposed by FTX’s bankruptcy administrators. Creditors argue that the plan does not pass the best interest test, includes clauses that are not in line with estate interests, and overlooks property rights issues.
Creditors argue that cash payments will require customers to pay taxes on the received cash, increasing the burden. They suggest adopting physical payments to avoid tax issues.
Additionally, creditors request FTX to update the settlement disclosure statement for the Internal Revenue Service (IRS). Under the settlement plan, the IRS will receive a $200 million priority claim within 60 days of approval, with an additional $685 million secondary priority claim paid after full customer repayment.
FTX’s restructuring plan includes compensating creditors with claims lower than $50,000 at 118%, while other non-government creditors will receive full claims and up to 9% interest compensation.
▌U.S. Prosecutes Three Individuals in Evolved Apes NFT Fraud Case, Involving $3 Million
The U.S. Attorney’s Office for the Southern District of New York has filed charges against Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan for their involvement in the 2021 Evolved Apes NFT fraud case. The project promised to develop a video game, but after the fundraising ended, the anonymous developer Evil Ape disappeared, transferring 798 Ether (approximately $3 million). This case is seen as part of a “rug pull” scam, where developers raise funds by selling NFTs or tokens, then abruptly shut down the project and disappear. According to statistics, similar scams have led to losses exceeding $14.5 billion since 2011.
▌Total Value Locked in DeFi Protocols Currently at $109.9 Billion
According to DefiLlama data, the total value locked (TVL) in DeFi protocols worldwide is currently at $109.9 billion, with Lido having the highest TVL at $36.6 billion, up 1.27% in the past 24 hours; EigenLayer ranking second at $20.1 billion, up 1.88% in the past 24 hours; and AAVE ranking third at $13.2 billion, up 0.71% in the past 24 hours.
Key Economic Developments
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What is Liquidity Staking?
Liquidity staking allows stakers to maintain liquidity of their staked tokens by using alternative tokens, enabling them to earn additional returns through DeFi protocols. Liquidity staking allows cryptocurrency holders to participate in staking without giving up control of their holdings. This changes the way users stake their assets. Projects like Lido have introduced liquidity staking, tokenizing staked assets in the form of tokens and derivatives.
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