The SEC alleges that Prager Metis, an accounting firm engaged by bankrupt crypto exchange FTX in 2021, committed hundreds of violations related to auditor independence.
The United States Securities and Exchange Commission (SEC) has commenced legal proceedings against an accounting firm that had provided services to cryptocurrency exchange FTX prior to its bankruptcy declaration.
According to a September 29 statement, the SEC alleged that Prager Metis provided auditing services to its clients without maintaining the necessary independence, as it allegedly continued to offer accounting services. This practice is prohibited under the auditor independence framework.
To prevent conflicts of interest, accounting and audit tasks must be kept clearly separate. However, the SEC claims that these activities spanned over a period of approximately three years:
“As alleged in our complaint, over a period of nearly three years, Prager’s audits, reviews, and exams fell short of these fundamental principles. Our complaint is an important reminder that auditor independence is crucial to investor protection.”
While the statement doesn't explicitly mention FTX or any other clients, it does emphasize that there were allegedly "hundreds" of auditor independence violations throughout the three-year period.
Furthermore, a previous court filing pointed out that the FTX Group engaged Metis to audit FTX US and FTX at some point in 2021. Subsequently, FTX declared bankruptcy in November 2022.
The filing alleged that since former FTX CEO Sam Bankman-Fried publicly announced previous FTX audit results, Metis should have recognized that its work would be used by FTX to bolster public trust.
Concerns were previously reported about the material presented in FTX audit reports.
On Jan. 25, current FTX CEO John Ray told a bankruptcy court that he had “substantial concerns as to the information presented in these audited financial statements.”
Furthermore, Senators Elizabeth Warren and Ron Wyden raised concerns about Prager Metis' impartiality. They argued that it functioned as an advocate for the crypto industry.
Meanwhile, a law firm that provided services to FTX has come under scrutiny in recent times.
In a Sept. 21 court filing, plaintiffs allege that Fenwick & West should be held partially liable for FTX's collapse because it reportedly exceeded the norm when it came to its service offerings to the exchange.
However, Fenwick & West asserts that it cannot be held accountable for a client's misconduct as long as its actions remain within the bounds of the client's representation.
Ether futures ETFs to debut in the United States, Sam Bankman-Fried’s trial to begin and 3AC co-founder Su Zhu arrested.
Top Stories This Week
Ethereum futures ETFs to start trading next week
Investment firm Valkyrie will start offering exposure to Ether futures in the coming days. On Sept. 28, the firm told Cointelegraph that its Bitcoin Strategy ETF will allow investors access to Ether and Bitcoin futures under one wrapper, making it one of the first firms to do so amid several pending applications with the U.S. Securities and Exchange Commission. Starting Oct. 3, the funds name will be updated to the Valkyrie Bitcoin and Ether Strategy ETF. Asset manager VanEck also disclosed its upcoming Ethereum Strategy ETF, which will be listed on the Chicago Board Options Exchange in the coming days. Analysts suggested that a potential U.S. government shutdown might have accelerated the launch of Ether futures ETFs.
SBF trial dates revealed: FTX founder to stand trial over 6 weeks
Former FTX CEO Sam SBF Bankman-Fried will spend at least 21 days in court as part of his criminal trial, which will begin in earnest on Oct. 4 and last until Nov. 9, according to a newly released trial calendar posted to the public court docket. The first official date of the Bankman-Fried trial is Oct. 4, where the participants will begin discussing seven fraud charges laid against SBF. There are two substantive charges where the prosecution must convince a jury that Bankman-Fried committed the crime. Five other conspiracy charges involve the prosecution convincing a jury that Bankman-Fried planned to commit the crimes. The former FTX CEO has been serving pre-trial detention at the Brooklyn Metropolitan Detention Center since Aug. 11. If considered guilty of fraud, Bankman-Fried is likely to spend the rest of his life in prison, legal specialists explained to Cointelegraph.
3ACs Su Zhu arrested in Singapore
Co-founder of Three Arrows Capital (3AC) Su Zhu was detained at Changi Airport in Singapore while trying to leave. Teneo, the joint liquidator of the now-bankrupt hedge fund, told Cointelegraph that Zhus arrest followed a committal order from the Singapore Courts, which is a directive used to imprison someone for contempt of court. On Sept. 25, Teneo secured this committal order, alleging that Zhu didnt comply with a court order. His arrest is part of an ongoing investigation to retrieve funds for 3ACs creditors. The $10 billion hedge fund crashed in 2022 due to the collapse of the Terra ecosystem. A similar committal order was granted against Kyle Davies, also co-founder of 3AC. His whereabouts remain unknown.
Binance urges users to convert euros to USDT after Paysafe debank
Binance has warned its European users to convert their euro (EUR) balances to Tether by Oct. 31 due to the loss of support from its banking partner, Paysafe. Paysafe ceased processing EUR deposits for Binance users on Sept. 25. While EUR withdrawals to bank accounts remain available, Paysafe users wont be able to engage in EUR spot trading. Binances token swap feature, Binance Convert, will also restrict EUR transactions. Paysafe previously facilitated fiat deposits and withdrawals for Binance users in Europe, including via bank transfer in the European Unions Single Euro Payments Area. The move is the latest to add to Binances regulatory and debanking woes in the West.
SEC delays spot Bitcoin ETF decision for BlackRock, Invesco and Bitwise
The U.S. Securities and Exchange Commission has again postponed its decision on several spot Bitcoin ETF applications, including those from BlackRock, Invesco, Bitwise and Valkyrie, ahead of a potential government shutdown. Bloomberg ETF analyst James Seyffart anticipates similar delays for Fidelity, VanEck, and WisdomTree. These delays came two weeks before the applicants expected second deadline. Seyffart links the premature delays to an anticipated U.S. government shutdown on Oct. 1, which would impact financial regulators and federal agencies.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $26,895, Ether (ETH) at $1,667 and XRP at $0.53. The total market cap is at $1.07 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Compound (COMP) at 23.71%, Chainlink (LINK) at 15.12% and THORchain (RUNE) at 14.51%.
The top three altcoin losers of the week are Immutable (IMX) at -9.80%, UNUS SED LEO (LEO) at -5.38% and XDC Network (XDC) at -4.61%.
The symbiosis between street art and Bitcoin is a powerful one. By working together, these two movements help to create a more just and equitable world.
Street, pseudonymous co-founder of the Street Cyer artist collective
Prediction of the Week
Bitcoin shorts keep burning as BTC price seeks to hold $27K
Bitcoin (BTC) bounced around $27,000 on Sept. 29 as a challenge to month-to-date highs dragged BTC price action upward. Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency attempting to hold gains after a classic short squeeze.
The day prior offered a trip past the $27,000 mark, with Bitcoin bulls unable to seal a fresh peak for September. Topping out at $27,300 on Bitstamp, BTC price strength returned to consolidate, still up 4% versus the weeks low at the time of writing.
Analyzing the situation on low timeframes (LTFs), popular pseudonymous trader Skew said that the upside had come courtesy of derivatives markets, with spot traders selling at the highs. LTF stuff but pretty clear spot absorption around the high so $27.2K is an important price area to clear for spot buyers, he explained on X (formerly Twitter).
Skew subsequently noted that $27,200 remained a rejection point on the day, ahead of the Wall Street open. Going into next week, he added, the market was likely to hunt both sides of the book.
FUD of the Week
Ben BitBoy Armstrong arrested on livestream over Lambo dispute
Crypto influencer Ben Armstrong, formerly known as BitBoy, was arrested on Sept. 25 while livestreaming outside a former business associates house, claiming the associate had his Lamborghini. He was charged with loitering/prowling and simple assault by placing another in fear and was held for over eight hours before being released on a $2,600 bond and $40 in fees. In Georgia, the misdemeanor charges of loitering and prowling could result in a fine of up to $1,000, up to one year in jail, or both.
An investigation by Cointelegraph revealed that several cryptocurrency platforms, reporting significant daily trades on CoinMarketCap, may have provided misleading information about their crypto licenses. Bitspay, for instance, which has a daily trading volume of $1.4 billion on CoinMarketCap and ranks as the fourth-largest crypto exchange, claimed to be licensed in Estonia. However, after inquiries by Cointelegraph, Bitspay quickly removed the potentially false license data and no longer provides details about its registration or licensing.
Huobi Global hacked for $7.9M: Report
Huobi Globals HTX crypto exchange was hacked on Sept. 24, according to a report from blockchain analytics platform CyVers. A total of $7.9 million of crypto has been drained in the attack. A known Huobi hot wallet posted a message to the attacker in Chinese. According to the message, the exchange knows the identity of the attacker and has offered to let them keep 5% of the drained funds as a white-hat bonus, but only if the attacker returns the remaining 95%. Binance CEO Changpeng CZ Zhao offered the help of the exchanges security team in investigating the attack.
Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
From solving Mt. Gox to tracing crypto used by child abuse syndicates in Korea, Chainalysis has a long but sometimes controversial history.
US govt messed up my $250K Bitcoin price prediction: Tim Draper, Hall of Flame
Tim Drapers first big Bitcoin prediction came off without a hitch, but he says the current administration is making his second one look bad.
China dev fined 3 yrs salary for VPN use, 10M e-CNY airdrop: Asia Express
Chinese national fined three years’ salary for using VPN for remote work, Hangzhou airdrops 10M digital yuan, JPEX alleged Ponzi nears $200M, and more.
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Brazil is launching its new national identity program powered by blockchain technology. Rio de Janeiro, Goiás, and Paraná will be the first states to issue identification documents on-chain.
Over 214 million Brazilians will soon be using blockchain technology for digital identity, the government recently announced.
Rio de Janeiro, Goiás, and Paraná will be the first states to issue identification documents on-chain through a private blockchain developed by Serpro, Brazil’s national data processing service. The entire country should be able to issue identity documents through blockchain technology by November 6, reads a decree on Sept. 25.
According to Alexandre Amorim, president of Serpro, the immutability and decentralization of blockchain made it an ideal technology for the country’s digital identification project:
"Blockchain technology plays a critical role in protecting personal data and preventing fraud, offering a more secure digital experience for Brazilian citizens. Utilizing the b-Cadastros blockchain platform significantly enhances the security and reliability of the National Identity Card project."
According to the local government, the national ID project is crucial in targeting organized crime and allowing government sectors to work together, offering a simpler way to access services, and streamlining administrative records. A similar initiative was disclosed by the city of Buenos Aires, Argentina, allowing residents to access identity documents via a digital wallet.
Over the past few years, Brazil has been working to unify identity issuance across its almost 30 states. The newly adopted technology will allow a more secure data exchange between the Federal Revenue and government departments, said the announcement.
Emissão da Carteira de Identidade Nacional (CIN) conta agora com a segurança do Blockchain. Saiba o que muda no documento e confira todos os detalhes que tornam a nova carteira de identidade dos brasileiros mais segura do que nunca!https://t.co/G2MigNkG1J
Another significant development in the country is an upcoming central bank digital currency (CBDC). The government released more information about the project in August, rebranding the digital currency to Drex.
According to previous reports, the central bank plans to expand business access to capital through a tokenization system associated with the Drex. The Drex code was discovered to allow a central authority to freeze funds or reduce balances, according to a local developer.
Will Bitcoin ETFs attract more regulatory attention to the crypto industry? We can only hope, because many questions need to be answered.
Aside from liquidity, what do institutions bring to crypto? What precisely is their value added? This is an instructive question to ponder, because there is little consensus on what deeper institutional participation means for an industry that is riven with contradictions.
The long-running wait for Bitcoin ETF approval, giving pensions and funds exposure to BTC, may well prove to be a positive catalyst for industry growth. But in focusing on price action, observers are missing out on the real benefit of broadscale institutional adoption. The greatest benefit of deepening institutional adoption may be the regulatory certainty it ushers in.
Tax and Compliance
There are a number of areas where institutional involvement is forcing regulators to give straight answers. Chief among these are taxation and compliance. What trades can a business legally make, how should they be disclosed on its balance sheet, and what steps must it take to report these activities?
Determining what constitutes a taxable event in crypto depends on your dominion. While U.S. traders are required to calculate profit and loss (PnL) on every trade on a decentralized exchange (DEX), perps position, and on-chain event, other countries take a less rigorous approach, while a few don’t bother to tax it at all.
#Bitcoin ETFs will be Delayed until the Final Deadline
The SEC is trying to show that they are not interested and attempting to push the dates until the final deadline, even though both the SEC and BlackRock know the inevitable outcome.
Regardless of where you reside, determining your obligations when buying, selling, and storing digital assets can be a headache. But it could be worse: imagine how much more is at stake for businesses, whose public accounts must be scrutinized, and which typically require permission to even list Bitcoin (BTC) on their balance sheet.
There are good reasons why a higher bar is set for enterprises in terms of compliance, disclosure, reporting, and taxation compared to consumers. It’s a primary reason why it’s taken so long for serious institutional adoption to manifest. But as the trickle of financial firms gaining a foothold in the space turns into a flow, the retinue of lawyers and lobbyists in tow has begun to yield dividends. When BlackRock starts beating the drum for a Bitcoin ETF, even the Securities and Exchange Commission (SEC) has to sit up and take notice.
Grayscale’s favorable court ruling against the SEC on Aug. 29 has shown the power institutions can muster in forcing regulators to renegotiate. The precedent this appeals decision sets will further increase the confidence of institutions in their ability to reframe legislation in their favor.
Seeking regulatory clarity
For those who already have skin in the game — sole traders, trading firms, family funds, venture capitalists — greater institutional involvement can only be a good thing. When the largest institutions decide they want in, it forces regulators to play ball. Not every provision that’s consequently pushed through the statute books will aid the industry — some will be asinine — but collectively they provide something that’s been missing for years: clarity.
Is Bitcoin a security? What about Ether (ETH) or Solana (SOL)? The answer, at present, depends on who you ask. Some agencies seem intent on declaring everything bar Bitcoin a security; others take a more measured approach, focusing their enforcement efforts on the most egregious token sales and shills.
Institutions can’t trade assets that lie in regulatory no man’s land: they need black and white, not shades of gray. Their increasing participation in the market is bound to provide clearer answers in terms of crypto classification, which will benefit the entire industry.
In addition, greater institutional involvement is legitimizing digital assets by making them less exotic to those tasked with regulating them. Crypto opponents can’t justifiably claim the industry to be a hotbed of money laundering and wash trading when its most active participants include the world’s leading trading firms.
Signs of institutional adoption
Today, businesses and governments are pressing ahead with blockchain-based initiatives such as CBDC pilots. In Asia alone, Hong Kong and the Bank of Japan are exploring programs involving digital currencies.
Meanwhile, banks from the U.S. to Europe are introducing crypto custody and trading services for their clients. And in August, Europe’s first spot Bitcoin ETF listed in Amsterdam, proving that institutional willpower eventually gets things done.
Regulators and institutional players are still catching up in terms of expertise to those who helped build the industry from the ground up in its early days through hands-on participation. No one has complete mastery. But as a rising tide lifts all ships, greater institutional involvement will bring benefit to all players, from the humblest yield farmer to the richest whale. Rather than assume any one group has it all figured out, an open and collaborative dialogue is most likely to lead to positive outcomes. Regulators, institutions and early adopters each offer unique insights.
You don’t have to thank them, but big institutions are a net positive for the industry. Bigger players produce better rules — and better outcomes for everyone.
Gracy Chen is the managing director of the crypto derivatives exchange Bitget, where she oversees market expansion, business strategy, and corporate development. Before joining Bitget, she held executive positions at the Fortune 500 unicorn company Accumulus and venture-backed VR startups XRSPACE and ReigVR. She was also an early investor in BitKeep, Asia's leading decentralized wallet. She was honored in 2015 as a Global Shaper by the World Economic Forum. She graduated from the National University of Singapore and is currently pursuing an MBA degree at the Massachusetts Institute of Technology.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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The Protocol Guild, a team of over 150 Ethereum core developers, will be the beneficiary. VanEck argues that asset managers should give back some Ether ETF proceeds to the community.
Global asset manager VanEck will donate 10% of all profits from its upcoming Ether futures exchange-traded fund (ETF) to Ethereum core developers for ten years, the company announced on X (formerly Twitter) on Sept. 29.
The beneficiary will be The Protocol Guild, a group of over 150 developers maintaining Ethereum’s core technology. According to VanEck, it’s only fair for asset managers to return part of their proceeds to the community building the crypto protocol. It stated:
“If TradFi stands to gain from the efforts of Ethereum’s core contributors, it makes sense that we also give back to their work. We urge other asset managers/ETF issuers to consider also giving back in the same way."
With this move, VanEck joins other crypto-native communities supporting the Ethereum network, including Lido Finance, Uniswap, Arbitrum, Optimism, ENS Domains, MolochDAO, and Nouns DAO.
According to a public dashboard tracking donations sent to the Guild’s mainnet, 4,846 contributions have generated over $12 million in donations. Funds are then distributed among its members according to a weighted ratio based on their contribution periods.
The network core developers are reportedly working on Ethereum Improvement Proposal EIP-4844 (Proto-Danksharding). The upgrade will introduce a new kind of transaction type to Ethereum, promising to reduce transaction fees for layer-2 protocols.
VanEck disclosed its upcoming Ethereum Strategy ETF (EFUT) on Sept. 28, saying it will invest in ether futures contracts. The fund will be actively managed by Greg Krenzer, head of active trading at VanEck, and is expected to be listed on the Chicago Board Options Exchange in the coming days.
Other traditional investment firms set to offer exposure to Ether futures include Valkyrie, and Bitwise, while the line for a spot Ether ETF keeps growing with Invesco Galaxy, ARK 21Shares, and VanEck waiting for regulatory approval. The United States Securities and Exchange Commission (SEC) recently delayed a decision on whether to approve a spot Ether product until December.
As the country is considered for EU membership, the digital lari is seen as providing interoperability with a digital euro while preserving monetary freedom.
The National Bank of Georgia (NBG) has announced that it will advance its research on a digital lari central bank digital currency (CBDC) in a limited-access live pilot environment. Nine companies, including Ripple Labs, will take part in the project, and one of them will be selected to move forward to the next stage of testing.
In a paper released in February, the NBG stated that it was considering a two-tier design for its CBDC, with wallets provided by a third party. It would be programmable and support asset tokenization.
In an interview in June, NBG’s head of fintech, Varlam Ebanoidze, said that use cases for a digital lari, or GEL, include the provision of agricultural insurance and automation of real estate transactions. He added:
“We are thinking about integration into the European Union and we want to be interoperable with the digital euro, but have monetary freedom.”
The NBG announced that it was considering issuing a CBDC in May 2021, without providing a timeline for it. The NBG announced in January that it was soliciting expressions of interest from fintech firms to participate in a limited live pilot.
The NBG announced on Sept. 8 that it would participate as an observer in the Bank of International Settlements’ (BIS) Project mBridge — which involves China, Hong Kong, Thailand and the United Arab Emirates — joining about 10 other observer countries. It said it would also “leverage knowledge and expertise” from the BIS’s Project Aurum.
NBG (NATIONAL BANK OF GEORGIA) has shortlisted 9 companies that have demonstrated sufficient technology potential, maturity, capacity, relevant experience, and desire to join our on-field exploration:
In addition to Ripple, the pilot’s participants include Augentic, Bitt, Broxus Holdings, Currency Network, DCM, eCurrency Mint, FARI Solutions and Sovereign Wallet. Ripple is known to be involved in CBDC projects around the world, active in countries such as Colombia, Montenegro, Hong Kong, Bhutan and Palau.
Per a post from Polygon Labs on the X platform (formerlly Twitter) announcing the partnership:
“The same infrastructure used to power @YouTube and @gmail is now helping to secure the fast, low-cost, Ethereum-for-all Polygon protocol.”
Validators on the Polygon network help secure the network by operating nodes, staking MATIC (MATIC), and participating in proof-of-stake consensus mechanics.
The Google Cloud Singapore account confirmed on X that Google Cloud was “now serving as a validator on the Polygon PoS network,” adding that it would be “contributing to the network’s collective security, governance, and decentralization alongside 100+ other validators.”
Source:Polygon Staking
While many of Polygon’s validators are anonymous, Google Cloud joins Germany’s Deutsche Telekom, one of Europe’s largest telecommunications firms, on the network.
For its part, Google Cloud describes its relationship with Polygon Labs as “an ongoing strategic collaboration.” Alongside the announcement that it would be joining the network as a validator, Google Cloud Asia Pacific also released a YouTube video titled “Polygon Labs is solving for a Web3 future for all.”
Polygon Labs recently launched its “Polygon 2.0” initiative to update the Polygon network. As Cointelegraph reported, “Phase 0,” the current phase, features three Polygon Improvement Proposals, PIPs 17-19.
PIP 17 involves transitioning from MATIC to the new token POL, while PIPs 18 and 19 address supporting endeavors such as the technical description of POL and updating gas tokens. According to Polygon, these changes are slated to begin taking place in Q4 2023.
Bloomberg analyst Eric Balchunas speculated the SEC may have applied pressure on Valkyrie to halt purchases of ETH futures contracts until the ETF was officially approved.
Asset management firm Valkyrie has said it will hold out for the United States Securities and Exchange Commission (SEC) to approve an exchange-traded fund, or ETF, with exposure to Ether (ETH) futures rather than making purchases in advance.
In a Sept. 29 filing with the SEC, Valkyrie said it will not make certain purchases “until the effectiveness of an amendment” reflecting ETH futures contracts as the ETF’s principal investment strategy. The firm told Cointelegraph on Sept. 28 that it planned to allow investors exposure to Ether and Bitcoin (BTC) under a combined Bitcoin and Ether Strategy ETF, with purchases planned ahead of a launch the first week of October.
‘[T]he Fund will unwind any existing positions in ether futures contracts,” said the SEC filing.
The plot thickens, Valkyrie just put out 497 that they are in fact not going to buy Ether futures until they are live (prob Tue) and are going to sell the Eth futures they bought (in an effort to jump line a bit). SEC must have threatened them to cut it out. Damn. https://t.co/yDkggCw3d1pic.twitter.com/cKaV7k7AJs
Cointelegraph reached out to Valkyrie but did not receive a response at the time of publication. It’s unclear what may have led the firm to the change in position in less than 24 hours. Valkyrie filed with the SEC for listing an Ether futures ETF on the Nasdaq Stock Market in August, but the regulator has not reached a decision on a proposed rule change allowing the investment vehicle.
Several ETFs offering exposure to Ether futures are expected to begin trading the first week of October, including ones from VanEck, Bitwise and ProShares. However, on Sept. 28 the SEC delayed its decision on a proposal for a spot BTC ETF from Valkyrie, as well as proposals from BlackRock, Invesco and Bitwise.
The delays came weeks ahead of scheduled ETF deadlines for the SEC, with many suggesting the regulator was acting in response to a potential shutdown of the U.S. government. Members of Congress have until Sept. 30 to present a bill funding the government into the next fiscal year for U.S. President Joe Biden to sign into law.
Ether’s price is up today as traders weigh the possibility of an Ethereum futures ETF launching and a weaker than anticipated inflation print.
Ethereum’s native token, Ether (ETH), is up today as traders assess a slew of positive updates from cryptocurrency and macro markets.
Ethereum future ETF euphoria behind ETH rise
On Sep. 29, Ether's price rose nearly 2.5% to $1,688, its highest level in a month.
ETH/USD daily price chart. Source: TradingView
The intraday gains came as a part of a broader upside move that started the previous day when asset manager Valkyrie gained regulatory approval to add Ethereum futures exposure to its existing Bitcoin Strategy ETF (BTF).
The news appeared alongside claims that the U.S. Securities and Exchange Commission (SEC) may approve "a bunch of Ethereum futures ETFs" for launch next week. That includes fifteen ETH futures ETFs from nine issuers awaiting approval.
Latest U.S. PCE report boost risk appetite
Ethereum got an additional boost from the latest U.S. core personal consumption expenditures (PCE) data, also known as the Federal Reserve's preferred inflation gauge.
Notably, the PCE rose 0.1% in August, lower than the market's expectations of 0.2%. That helped take some air off from an otherwise rising U.S. bond yields, helping non-yielding assets like stocks and cryptocurrencies rise.
US 10-year Treasury note yield vs. Nasdaq 100 vs. ETH/USD daily performance chart. Source: TradingView
A cooling inflation indicates that Fed may keep its interest rates unchanged at the current 525-550 basis points (bps) range. CME's Fed futures rate data shows a 87.5% possibility of a rate pause in the next Federal Open Market Committee's (FOMC) meeting on Nov. 1.
Ethereum's price gains on Sep. 29 also coincides with short liquidations worth $7.88 million across Ether-tied derivatives. In comparison, only $1.7 million worth of long positions were liquidated on the same day.
ETH total liquidations chart. Source: CoinGlass
Short sellers liquidated their positions by buying the underlying asset. Therefore, the combination of new buyers and short liquidations pushed up the Ether price.
Ethereum price technical analysis
The Sep. 29 upside move in the Ethereum market has pushed the Ether price above its 50-day exponential moving average (50-day EMA; the red wave) near $1,770.
ETH/USD daily price chart. Source: TradingView
Flipping the 50-day EMA from resistance to support enables the ETH price to eye $1,740 in October 2023 as its next upside target. This level coincides with two key resistances: the 200-day EMA (the blue wave) and the 0.382 Fib line.
However, breaking below the 50-day EMA support raises Ether's risks of falling toward the 0.5 Fib line near $1,610 in October, down about 3.75% from current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Ripple’s CEO Brad Garlinghouse shared the news on X, saying it will remain an investor in Fortress Trust.
Within 20 days of announcing the acquisition of Fortress Trust to allegedly expand its pool of licenses in the United States, financial technology firm Ripple is pulling out of the deal.
Ripple’s CEO Brad Garlinghouse made the announcement on X (formerly Twitter) on Sept. 28, saying that “we’ve since made the decision not to move forward with an outright acquisition,” although Ripple will remain a shareholder in Fortress Trust’s parent company Fortress Blockchain Technologies.
Ripple first announced the acquisition on Sept. 8, surprising even company insiders with the news, Cointelegraph has learned. At the time, Ripple revealed plans to invest in other companies in the Fortress' group, including an affiliated firm, FortressPay.
A few days later, Fortress Trust acknowledged that the acquisition was rushed by a security incident involving a third-party analytics vendor. In an interview with Fortune, Fortress CEO Scott Purcell said the company lost $12 million to $15 million in the attack. A majority of the funds were Bitcoin (BTC), along with small amounts of USD Coin (USDC) and Tether (USDT). Ripple, an investor in Fortress since its seed round in 2022, had to step in to make customers whole.
A few weeks ago, we signed a letter of intent to acquire Fortress Trust – we’ve since made the decision not to move forward with an outright acquisition, though Ripple will remain an investor in @Fortress_io.
In comments to Cointelegraph, Purcell said the merging cancelation “is not a big deal". According to him, the plan change is unrelated to the security incident. "They are an investor in Fortress and a great partner, nothing changes there," he noted.
Cointelegraph reached out to Ripple, but the company declined to comment beyond its CEO's post.
As Ripple continues its high-profile legal battle with the United States Securities and Exchange Commission, the deal failure could benefit other companies linked to Fortress.
Swan Bitcoin, for example, is working on a joint venture with BitGo to create a Bitcoin-only trust company in the U.S., which is pending regulatory approval. Fortress Trust provides custody of records for Swan. As the deal collapsed, Swan will no longer be involved in Ripple's business in the country.
The first documents to be available on-chain in Buenos Aires include birth and marriage certificates, along with proof of income and academic verification.
Buenos Aires, the capital of Argentina, is making a major move toward integrating its bureaucracy with blockchain technology. Starting in October, the city's 15 million residents can access identity documents via a digital wallet, according to an announcement on Sept. 28.
The first documents to be available on-chain include birth and marriage certificates, along with proof of income and academic verification. The announcement notes that health data and payment management will be integrated in the future, and that a roadmap for rolling out the blockchain-based solution across the country will be defined by the end of 2023.
Behind the project infrastructure is QuarkID, a digital identity protocol built by Web3 firm Extrimian. QuarkID wallets are powered by zkSync Era, an Ethereum scaling protocol using zero-knowledge rollups (ZK-rollups). The technology allows one party to prove to another that a statement is true, without revealing any specific information about the statement itself.
¡Hola Buenos Aires! Welcome to the ZK Nation
Buenos Aires is teaming up with @Quark_ID to issue digital identification services to millions of citizens in the city, with zkSync Era serving as the anchor blockchain for the program.
“This is a monumental step towards a safer and more efficient future for government services in Latin America,” said Guillermo Villanueva, CEO of Extrimian.
Data stored within the wallets will be self-sovereign, enabling citizens to manage the delivery of their credentials when interacting with government, businesses, and other individuals. zkSync Era will act as the settlement layer for QuarkID, ensuring that each citizen holds the correct credentials.
The Argentine government and the City of Buenos Aires envision their digital identity framework to be a public good. According to Diego Fernandez, Buenos Aires’ secretary of innovation:
“With this development, Buenos Aires becomes the first city in Latin America, and one of the first in the world, to integrate and promote this new technology and set the standard for how other countries in the region should use blockchain technology for the benefit of their people.”
Argentine officials are investigating a similar initiative in the country, the digital ID project Worldcoin. In August, local authorities disclosed a probe over privacy concerns related to Worldcoin collection, storage and use of customer data.
Worldcoin is also under scrutiny in Europe and Africa since its global launch in July. Founded by Sam Altman, co-founder of OpenAI, the project collects retinal scans to verify users.
During that performance, highs of $26,823 appeared on Bitstamp as the result of 2% daily gains before Bitcoin retraced all of its progress.
A slower grind higher then took hold, with bulls edging closer to $27,000 at the time of writing.
Bitcoin appeared to react well to the latest U.S. macroeconomic data prints.
GDP for Q2 grew by 1.7% year on year — below the projected 2.0% — while Personal Consumption Expenditures (PCE) index data for August came in in line with expectations.
“Bring on the volatility,” Keith Alan, co-founder of monitoring resource Material Indicators, told X subscribers beforehand.
Data from the Binance BTC/USD order book uploaded by Alan showed little by way of resistance standing in the way of spot price under the $27,000 mark.
The macro data constituted just the prelude to the day’s main event, meanwhile, with Jerome Powell, Chair of the Federal Reserve, due to comment later on.
Powell, whose recent words failed to deliver noticeable volatility to crypto markets, was due to speak at the Fed’s “Conversation with the Chair: A Teacher Town Hall Meeting" event in Washington, D.C. at 4pm Eastern time.
BTC price not out of the woods
Commenting on the state of play on Bitcoin markets, popular trader and analyst Daan Crypto Trades was more optimistic around the strength of the day’s move compared to Sep. 27.
“Back to yesterday's highs but with considerably less Open Interest,” he noted.
“No doubt there's longs chasing here but it's less frothy than it was yesterday. Would still like to see longs chill out to not get a full retrace later on.”
BTC/USD chart with open interest data. Source: Daan Crypto Trades/X
An accompanying chart tracked open interest as BTC/USD headed higher.
Fellow trader and analyst Rekt Capital meanwhile flagged key resistance trend lines now in play, with Bitcoin required to overcome them to effect a more substantial trend change.
Elsewhere in the day’s analysis, Rekt Capital acknowledged that $29,000 could make a reappearance and still form part of a broader comedown for Bitcoin.
“It's important to remember that Bitcoin could technically rally to even as high as ~$29,000 to form a new Lower High (Phase A-B),” he explained alongside a chart.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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British politicians went to the metaverse to discuss the benefits and potential challenges that Web3 technology brings.
In this week’s newsletter, check out Glassnode data that shows nonfungible token (NFT) protocol Bitcoin Ordinals may not be clogging the network. Read about British politicians using the metaverse to discuss opportunities and challenges in Web3, and find out why Rolling Stone says NFTs are “finally totally worthless.” And don’t forget this week’s Nifty News, featuring world-renowned artist Takashi Murakami saying he might not release any more NFTs.
U.K. politicians don metaverse avatars as they share Web3 roadmap
Politicians in the United Kingdom gathered in the metaverse on Sept. 20 to set out a vision for the country’s Web3 and blockchain industry. The gathering included eight British Lords, politicians and global leaders speaking about both the opportunities and challenges that the growth of Web3 technology could bring.
According to Natalie Elphicke, a member of parliament who appeared with a unique avatar in the metaverse, Web3 “reimagines the very fabric of the internet,” representing a paradigm shift.
Bitcoin Ordinals haven’t wrestled blockspace from money TXs: Glassnode
Data from on-chain analytics firm Glassnode shows that despite concerns the NFT-like Bitcoin Ordinals protocol is clogging the Bitcoin network, there’s little evidence to prove it. According to Glassnode, inscription users tend to set low fee rates, showing they are more willing to wait longer for confirmation.
“Inscriptions appear to be buying and consuming the cheapest available blockspace, and are readily displaced by more urgent monetary transfers,” the firm explained in its on-chain report.
NFTs are “totally worthless” says mainstream media, community responds
Media outlet Rolling Stone has declared that NFTs are “finally totally worthless” in a recent report. The firm cited the findings of a DappGambl study on the NFT landscape. According to the data, up to 95% of NFTs owned by over 23 million users have no value at all.
Members of the community responded to the report, with some showing previous articles from the media outlet that promoted the Bored Ape Yacht Club collection. The community member highlighted the drastic shift in the media narrative regarding NFTs.
Nifty News: Murakami to step back from NFTs, Dan Harmon’s NFT show debut and more
Japanese artist Takashi Murakami has recently said he might not release any more NFTs after entering the market in 2021. The artist said in an interview with The Guardian that maybe he is “done releasing NFTs.” Murakami’s NFT collection Murakami.Flowers generated over $40 million in secondary trading volume, according to data from NFT marketplace OpenSea.
Meanwhile, NFT artist Danny Casale recently won a multimillion-dollar contract dispute with a Web3 art curator called DigiArt. DigiArt sued Casale in March 2023 for allegedly breaching their contract after launching his own NFT project. However, a judge has taken the artist’s side as there was no contract start date specified.
Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.
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According to Foundry's data pool, Texas accounts for 28.5% of all Bitcoin hash rate in the United States.
The U.S. state of Texas accounts for over 28% of all Bitcoin (BTC) hashing power in the United States, according to the latest Hashrate Map by crypto mining service provider Foundry USA.
The newly updated map shows Texas with 28.5% of all Bitcoin hash rate in the country, followed by the states of Georgia claiming 9.64% hash rate, New York with 8.75%, and New Hampshire accounting for 5.33%. Bitcoin's hash rate represents how fast a mining machine operates when trying to calculate a valid block hash.
A snapshot of Foundry's pool in December 2021 shows a different picture. At the time, Texas controlled 8.43% of the country's hash rate, Georgia had 34.17%. Meanwhile, Kentucky stood at 12.40% and New York held 9.53% of the U.S. hash rate. Compared to 2021, more U.S. states are mining Bitcoin this year.
Overall, by July 2023, the Bitcoin global hash rate had reached 400 EH/s, nearly twice as high as at the end of 2021, when it stood at 174 EH/s, said Foundry.
Hashrate Map in July 2023. Source: Foundry USA
The data was pulled between July 21-27, 2023, when Texas faced power curtailment. According to the report, the data captured during curtailments means that the Texas hash rate may be "higher than what’s reported on the map."
During power curtailment, Bitcoin miners lower their production to balance energy supply and demand in the grid. Essentially, it is a way to balance energy consumption during peak times. In Texas, a program grants large energy consumers, such as Bitcoin miners, incentives for being flexible with energy use.
One of the Bitcoin miners participating in Texas' curtailment program is Riot Platforms. In August, the company mined fewer Bitcoin than in July but received over $31 million in power credits from the state.
Texas has been evolving as a hub for crypto mining thanks to its cheaper energy and welcoming regulatory framework. The state's electricity prices are below the U.S. average, according to data from the Energy Information Administration.
As of January 2023, Texas's average residential electricity tariff was $0.14 per kilowatt-hour (kWh), an 8.3% discount compared to the national average of $0.15 per kWh. The costs are even lower for large consumers like crypto miners.
Bitcoin, and even some altcoins are holding steady even as the US dollar index steamrolls to a near 1-year high.
Bitcoin (BTC) managed to stay above the $26,000 level even as the S&P 500 tumbled to a three-month low and the US dollar index (DXY) rose to a new year-to-date high. This is a mildly positive sign as it shows a lack of aggressive selling at lower levels.
Bitcoin remains stuck inside a range and the directionless price action has kept the traders on the sidelines. Bitcoin’s daily spot exchange transactions topped 600,000 in March but dwindled down to 8,000-15,000 last week, according to new research from on-chain analytics platform CryptoQuant. Low liquidity could lead to volatile moves in either direction, hence traders should be careful and wait for confirmations rather than taking positions on every intraday breakout.
The near-term price action remains uncertain but that has not deterred the long-term bulls from adding Bitcoin to their portfolio. MicroStrategy co-founder and executive chairman Michael Saylor announced on X (formerly Twitter) that the firm had acquired 5,445 Bitcoin at an average price of $27,053 per Bitcoin.
Could Bitcoin and select altcoins start a short-term up-move? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin is witnessing a tough battle between the bulls and the bears near the 20-day exponential moving average ($26,436). The bulls pushed the price above the 20-day EMA on Sep. 27 but could not clear the 50-day simple moving average ($26,757).
This indicates that the bears have not given up and are selling the rallies to the 50-day SMA. The bears will have to pull the price below $25,990 to clear the path for a potential fall to $24,800. This level is likely to attract solid buying by the bulls.
On the upside, the first sign of strength will be a break and close above the 50-day SMA. The BTC/USDT pair may then rise to $27,500 and subsequently to the overhead resistance at $28,143. The bears are expected to defend this level with all their might.
Ether price analysis
Ether (ETH) is trying to start a recovery. The price rose above the 20-day EMA ($1,614) on Sep. 27 but the bulls could not hold on to the intraday rally. This shows that the higher levels continue to attract sellers.
The bullish divergence on the relative strength index (RSI) favors the buyers. If they retain the price above the 20-day EMA, the ETH/USDT pair could first rise to the 50-day SMA ($1,668) and thereafter attempt a rally to the overhead resistance at $1,746.
Contrary to this assumption, if the price remains below the 20-day EMA, it will suggest that the bears are in command. The sellers will then try to yank the price below the important support at $1,531. If that happens, the pair may crash to $1,368.
BNB price analysis
BNB (BNB) remains below the breakdown level of $220 but a positive sign is that the bulls have not allowed the price to slip below $203.
The 20-day EMA ($213) is flattening out and the RSI is just below the midpoint, indicating a balance between supply and demand. This equilibrium will tilt in favor of the bulls if they kick the price above $220. The BNB/USDT pair could then ascend to $235.
On the contrary, if the price continues lower and breaks below $203, it will signal that the bears have asserted their supremacy. The pair may then start the next leg of the downtrend to the strong support at $183.
XRP price analysis
Buyers tried to thrust XRP (XRP) above the 20-day EMA ($0.50) on Sep. 25 but the bears held their ground.
The price action of the past few days has formed a symmetrical triangle pattern, indicating indecision between the bulls and the bears.
Sellers will try to gain the upper hand by dragging the price below the uptrend line. If they are successful, the XRP/USDT pair may descend to $0.46 and then to $0.41.
Contrarily, if the price turns up and breaks above the resistance line, it will indicate that bulls are trying to seize control. The pair may then climb to the overhead resistance at $0.56.
Cardano price analysis
Cardano (ADA) bounced off the vital support at $0.24 on Sep. 25 but the bulls are struggling to push the price above the 20-day EMA. This may result in more selling.
The $0.24 level is likely to witness a tough battle between the bulls and the bears. If the $0.24 support gives way, the ADA/USDT pair will complete a bearish descending triangle pattern. The pair may then start a downward move to $0.22 and subsequently to the pattern target of $0.19.
Contrary to this assumption, if the price turns up and breaks above the downtrend line, it will invalidate the bearish setup. The pair may then start an up-move to $0.29.
Dogecoin price analysis
The bears pulled Dogecoin (DOGE) below the $0.06 support on Sep. 26 but the long tail on the candlestick shows buying at lower levels.
However, the gradually downsloping 20-day EMA ($0.06) and the RSI in the negative territory indicate that bears remain in command. Sellers will make another attempt to sink and sustain the price below $0.06. If they can pull it off, the DOGE/USDT pair may plummet to the next significant support at $0.055.
Alternatively, if the price turns up from the current level and rises above the 20-day EMA, it will signal that the bulls are on a comeback. The pair could first rally to $0.07 and thereafter dash toward $0.08.
Solana price analysis
The failure of the bulls to propel Solana (SOL) above the 20-day EMA ($19.42) in the past few days shows that the bears are aggressively protecting the level.
The price has turned down from the 20-day EMA and the bears will try to build upon their advantage by pulling the SOL/USDT pair below the nearest support at $18.50. If this level cracks, the selling could pick up and the next stop is likely to be $17.33.
On the contrary, if the price bounces off $18.50, it will suggest buying on dips. The bulls will then again try to shove the price above the moving averages. If they do that, the pair may jump to $22.30.
Toncoin (TON) has dropped to the 20-day EMA ($2.11) which is an important level to keep an eye on. In an uptrend, buyers generally buy the dips to the 20-day EMA.
Here too, the bulls purchased the fall to the 20-day EMA on Sep. 27 but the long wick on the candlestick shows that the bears are selling at higher levels. If buyers maintain the price above the 20-day EMA, the TON/USDT pair will attempt a rally to the 61.8% Fibonacci retracement level of $2.40.
Meanwhile, sellers are likely to have other plans. They will try to yank the price below $2.07 and extend the correction to the next major support at the 50-day SMA ($1.76).
Polkadot price analysis
Polkadot (DOT) has remained stuck below the 20-day EMA ($4.10) for the past several days, suggesting that the bears are fiercely defending the level.
The RSI is showing signs of forming a bullish divergence but the buyers will have to clear the overhead hurdle at $4.22 to reduce the selling pressure. If that does not happen, the risk of a further fall remains.
If the DOT/USDT pair continues lower and skids below the immediate support at $3.91, it will indicate the start of the next leg of the downtrend. The next support on the downside is at $3.58.
Polygon price analysis
Polygon (MATIC) bounced off the critical support at $0.51 on Sep 25 but the bulls could not push the price above the 20-day EMA ($0.53).
This suggests that the sentiment remains negative and traders are selling on rallies. The bears will try to sink the price below the Sep. 11 intraday low of $0.49. A collapse of this support will indicate the resumption of the downtrend.
A minor ray of hope for the bulls is that the RSI is forming a bullish divergence. Buyers will have to drive and sustain the price above the 20-day EMA to signal the start of a sustained recovery. The MATIC/USDT pair could then rally to the 50-day SMA ($0.56).
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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