FBI's Crypto Sting Operation, Stripe Embraces USDC Payments, and Vitalik Buterin Speculated for Nobel Prize
A quick and digestible recap of yesterday’s crypto news.
TL;DR: Market Insight in Seconds
FBI: Launches fake crypto to trap fraudsters.
Gensler: Skeptical about cryptocurrencies as a means of payment.
Stripe: Enables businesses to accept USDC payments.
Vitalik Buterin: Speculated as a potential future Nobel Prize winner in Economics.
VanEck: Launches a $30M fund focused on crypto, fintech, and AI startups.
Google: Integrates Ethereum ENS addresses into Google Search.
Solana: Reaches a record number of active addresses, but most are empty.
Bitcoin Price: Dips to $60,200 but rebounds to $60,900 with $28 billion trading volume.
Price Update
Bitcoin Steadies Around $61,000 Amid Market Volatility
Bitcoin remains flat around $61,000 as traditional markets experience swings, keeping the cryptocurrency from finding a clear direction. After dipping to $60,200, Bitcoin has rebounded to $60,900 with a trading volume of $28 billion. Despite being up 40% year-to-date, Bitcoin's performance is being overshadowed by gold, which continues to outperform when adjusted for risk.
Regulatory Updates
FBI Launches Fake Crypto to Catch Fraudsters
In a novel sting operation, the FBI created a fake cryptocurrency called NexFundAI to identify fraudulent market makers accused of market manipulation through practices like wash trading and pump-and-dump schemes. Companies involved include ZM Quant, CLS Global, and MyTrade, accused of artificially inflating token activity to deceive investors. The operation led to arrests in the UK, Portugal, and Texas, involving 18 individuals and entities, and the seizure of $25 million in cryptocurrencies. This sophisticated approach highlights how authorities are adapting to combat fraud in the crypto space.
Gensler Doubtful About Cryptocurrencies as Payment Method
SEC Chairman Gary Gensler expressed skepticism about the widespread use of Bitcoin and other cryptocurrencies as a means of payment, considering them more as stores of value rather than transactional currencies.
Crypto.com Sues SEC After Receiving Wells Notice
Crypto.com has filed a lawsuit against the SEC following the receipt of a Wells Notice, a formal warning of potential enforcement action. This legal battle highlights the ongoing regulatory tensions in the crypto industry as companies push back against the SEC's stringent stance.
Market Trends
Stripe Enables Businesses to Accept USDC Payments
Payment giant Stripe has reintroduced cryptocurrency support by allowing businesses to accept payments in USDC across Ethereum, Solana, and Polygon networks. This move comes after Stripe halted Bitcoin payments in 2018 due to volatility and high fees, signaling a renewed interest in digital assets.
VanEck Launches $30M Fund for Crypto, Fintech, and AI Startups
VanEck has launched a $30 million venture capital fund focused on startups in the crypto, fintech, and AI sectors. Known for its ETFs, the asset manager is now exploring funding innovations in the blockchain space.
New Developments
Google Integrates Ethereum ENS Addresses into Search
Google is deepening its involvement in the crypto space by integrating Ethereum ENS addresses into Google Search. Users can now search for Ethereum ENS addresses directly and check associated balances, enhancing accessibility and user experience.
Vitalik Buterin Speculated as Future Nobel Prize Winner in Economics
Economists Tyler Cowen and Alex Tabarrok have mentioned Ethereum co-founder Vitalik Buterin as a potential candidate for the 2024 Nobel Prize in Economics during an episode of the "Marginal Revolution" podcast.
Don't Miss Anything
Solana Hits Record Active Addresses, But Majority Are Empty
The number of monthly active addresses on Solana has reached a new high of over 100 million. However, the majority of these wallets hold zero balance, raising questions about the legitimacy of this growth.
DApp Usage Soars in Q3
According to DappRadar's Q3 report, decentralized applications saw a 70% increase in daily unique active wallets, reaching 17.2 million. This surge indicates growing adoption and usage of decentralized platforms.
Former FTX Digital Markets Executive Seeks Incarceration Delay
Ryan Salame, former co-CEO of FTX Digital Markets, has requested to postpone his incarceration date from October 11 to December 7, 2024, citing ongoing medical treatments.
From the FBI's innovative sting operation to Stripe's re-entry into crypto payments, the industry is witnessing significant developments that could reshape the future of digital assets. Regulatory challenges continue as major players like Crypto.com push back against the SEC, while industry leaders like Vitalik Buterin gain recognition in economic circles. As the market evolves amidst volatility, staying informed is crucial for investors and participants. Stay tuned for tomorrow’s newsletter to get the latest insights and updates in the market.
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