Top Headlines
▌Tether Holds 25% Stake in Bitdeer, Becomes Second Largest Shareholder
According to a document disclosed by the U.S. Securities and Exchange Commission, UST issuer 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., which is reportedly registered under the name of Wu Jihan.
▌Telegram CEO to Launch Telegram Stars, Supporting Mini Programs to Accept Digital Service Payments
Telegram CEO Du Rove announced on the Telegram channel that they will launch Telegram Stars, a way to pay for digital services through mini programs. Mini programs can accept payments for digital services and can be purchased in-app on Android and iOS, with programs like Notcoin being usable without installation. Developers can extract Stars using TON through Fragment and can further promote applications on Telegram using Stars under favorable conditions. When users purchase Stars from Apple and Google, a 30% service fee will be deducted, but Telegram will subsidize ads purchased using Telegram Stars.
Market Updates
As of the time of writing, according to Coingecko data:
BTC recent trading price is $70,772.40, with a 0.5% intraday change;
ETH recent trading price is $3,811.99, with a 1.5% intraday change;
BNB recent trading price is $709.72, with a 0.4% intraday change;
SOL recent trading price is $170.55, with a 1.9% intraday change;
DOGE recent trading price is $0.1602, with a 2.0% intraday change;
XPR recent trading price is $0.5217, with a 0.9% intraday change.
Policy Updates
▌Hong Kong Police Enhance Crackdown on Illegal Betting Promotions, Focus on Virtual Currency Bets
With the European national cup approaching, Hong Kong police are stepping up efforts to combat illegal online betting, noting an increase in websites accepting virtual currency bets. The police point out that the anonymity and convenience of virtual currencies increase the risk of illegal gambling, but both cryptocurrencies and stored value payment tools are under surveillance. The police will combat related crimes using money laundering charges and cooperate with mainland China and Macau. To this end, the police will conduct public outreach in various districts, including distributing flyers in bars.
Blockchain Applications
▌zkSync: Begins v24 Version Upgrade, Funds to Be Moved to New Bridging Contract
According to an announcement on the zkSync developer account on X platform, the v24 version upgrade has begun, with a new L1SharedBridge being a new L1 contract. Therefore, funds on zkSync Era will be migrated from the old contract to the new contract, ensuring the safety of users’ funds.
▌LayerZero CEO: Witch Audit Work Not Yet Complete
LayerZero CEO Bryan Pellegrino posted on X platform, stating: “To those inquiring when the witch (audit) work will be completed,” with an accompanying image that says “Work is not yet done.”
▌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, increasing 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 the fields of decentralized finance (DeFi) and other Web3 applications.
Cryptocurrency
▌Kraken Plans to Raise Over $100 Million in Funding Before IPO
According to Bloomberg, cryptocurrency exchange Kraken is in negotiations for pre-IPO financing. Kraken is seeking to raise over $100 million in funding, with the completion expected by the end of this year. Rumors of Kraken’s listing have been circulating for the past few years. The company has been busy 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 this financing but stated, “We have been exploring strategic paths to achieve Kraken’s mission: to accelerate the global adoption of cryptocurrencies. We remain focused on investing in this goal.”
▌Analysis: Power Contracts and Lower Valuations Could Be Catalysts for Crypto Mining Stock Consolidation
On Thursday, Bitcoin mining stocks outperformed other cryptocurrency-related stocks, with multiple industry acquisition offers sparking interest in who could be the next target. Recently, one of the largest miners, Riot Platforms (RIOT), began a hostile takeover of its counterpart Bitfarms (BITF), while artificial intelligence company CoreWeave proposed acquiring another large mining company, CoreScientific (CORZ).
While Bitfarms and CoreScientific rejected the acquisition offers, these attempts remind investors that the industry may be ready for consolidation. B. Riley analyst Lucas Pipes suggests that power contracts and lower valuations could be catalysts for initiating a phase of consolidation in the mining stocks. In a report, he wrote, “We believe the optimistic outlook for the power market may catalyze an increase in merger and acquisition activity this year, especially in cases where there are still significant valuation differences.”
▌MicroStrategy Faces Highest Institutional Net Short Position, Strongest Bearish Sentiment
MicroStrategy (MSTR) faces a net short position of approximately $6.941 billion, representing 23.14% of its market value, indicating strong bearish sentiment or widespread hedging demand. This high ratio could lead to increased market volatility, potentially triggering a short squeeze.
In contrast, Coinbase (COIN), with a market value of approximately $62 billion, has a net short position of $1.129 billion, representing 1.77% of its market value, showing relatively mild bearish sentiment. Meanwhile, Marathon Digital Holdings (MARA), with a market value of around $6 billion, has a net short position of $101 million, representing 1.68% of its market value.
These net short positions may be part of strategic hedging, such as Kerrisdale Capital simultaneously shorting MSTR and longing Bitcoin.
Fintel data highlights the highest net short position facing 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 has submitted objections to the court against the restructuring plan proposed by the bankruptcy management of FTX. Creditors point out that the plan does not pass the best interest test, contains clauses that are not in line with the interests of the estate, and overlooks property rights issues.
Creditors argue that cash payments would result in customers needing to pay taxes on the received cash, adding to their burden. They suggest using physical payments to avoid tax issues.
In addition, creditors are requesting FTX to update the disclosure statement for the Internal Revenue Service (IRS) settlement. Under the settlement plan, the IRS will receive $200 million in priority claims within 60 days of approval, with an additional $685 million in subordinated priority claims to be 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.
▌US Prosecutes Three Individuals in Evolved Apes NFT Scam, Involving $3 Million
The U.S. Southern District Attorney’s Office has charged Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan in connection with the 2021 Evolved Apes NFT scam. The project promised to develop a video game, but after fundraising ended, the anonymous developer Evil Ape disappeared, transferring 798 Ethereum (approximately $3 million). This case is considered part of a “rug pull” scam, where developers raise funds through the sale of NFTs or tokens, then suddenly shut down the project and disappear. Since 2011, similar scams have led to losses exceeding $14.5 billion.
▌Total Value Locked in DeFi Protocols Currently at $109.9 Billion
According to DefiLlama data, the total value locked (TVL) in DeFi protocols is currently at $109.9 billion. Among the top protocols: Lido has the highest TVL at $36.6 billion, up 1.27% in the past 24 hours; EigenLayer ranks second at $20.1 billion, up 1.88% in the past 24 hours; AAVE ranks third at $13.2 billion, up 0.71% in the past 24 hours.
Important Economic Updates
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What is Liquidity Staking?
Liquidity staking allows stakers to maintain the liquidity of their staked tokens by using alternative tokens, enabling them to earn additional income through DeFi protocols. Liquidity staking enables cryptocurrency holders to participate in staking without relinquishing control over their holdings. This changes the way users engage in staking. Projects like Lido have introduced liquidity staking, tokenizing staked assets in the form of tokens and derivatives.
