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Between groundbreaking announcements, technological advances, and regulatory turbulence, the crypto ecosystem continues to prove itself to be both a territory of limitless innovation and a battleground for regulatory and economic conflicts. Here’s a roundup of the most notable news from the past week around Bitcoin, Ethereum, Binance, Solana, and Ripple.
Ripple under surveillance: SEC ready to challenge its victory
Ripple, which recently won a partial victory against the SEC, could see this decision overturned. While Judge Analisa Torres ruled in Ripple’s favor, including exempting secondary transactions from being classified as securities, this victory is far from final. According to Dennis Kelleher, CEO of Better Markets, the SEC has a 90% chance of succeeding on appeal, which could not only reverse Ripple’s legal gains but also disrupt crypto regulation in the United States. Kelleher claims that Judge Torres has overturned decades of case law, an argument that could carry significant weight in the upcoming hearings. The potential appeal could prolong legal uncertainty for Ripple and the entire crypto industry, jeopardizing the stability of its business model and posing risks to crypto regulation in the United States.
Bitcoin: FBI throws oil on the fire
The FBI has caused confusion by responding to a Freedom of Information Act (FOIA) request regarding Satoshi Nakamoto, the creator of Bitcoin. While the agency has neither confirmed nor denied the existence of documents on Nakamoto, it has suggested that Satoshi could be one or more individuals, rekindling speculation about his identity. This ambiguous statement has left the crypto community in limbo, especially since some theories implicate agencies like the CIA. This lingering mystery continues to fuel the legend surrounding Bitcoin and its creator, maintaining the mythical aura surrounding the first cryptocurrency.
BlackRock’s Ethereum ETF Nears $1 Billion
Launched on July 23, 2024, BlackRock’s iShares Ethereum Trust (ETHA) is on track to surpass the $1 billion mark in inflows, already reaching $901 million. This rapid success positions BlackRock as the leading Ethereum ETF manager, surpassing giants like Fidelity, Bitwise, and Grayscale. ETHA has attracted investors by offering direct exposure to ether through traditional brokerage accounts, simplifying access to the cryptocurrency while avoiding the usual tax complexities. Despite this success, the price of ether has not followed the same trajectory, hovering between $2,800 and $3,400, partly due to institutional selloffs. Nevertheless, ether trading volume is showing renewed interest, suggesting a possible recovery in the medium term.
Bitcoin challenges IMF on carbon emissions
The International Monetary Fund (IMF) recently released a damning report on the environmental impact of bitcoin, accusing mining of the cryptocurrency of contributing significantly to global carbon emissions. In response to these accusations, bitcoin advocate Daniel Batten strongly disputed the IMF’s findings. Batten criticizes the report for relying on outdated data and inappropriate comparisons, which simplistically equate bitcoin’s carbon footprint with that of artificial intelligence data centers. He argues that bitcoin mining, far from adding to carbon emissions, could actually play a decarbonizing role by using renewable energy sources and harnessing surplus energy that would otherwise be wasted. He suggests that the activity could even spur innovation in the energy sector.
Solana under fire from critics
Solana, often referred to as the “Ethereum killer,” is at the center of a growing controversy. Accused of hosting a disguised Ponzi scheme, the network is being criticized for its alleged manipulation of decentralization. Around 85% of transactions on Solana are voting transactions, favoring the most powerful validators over new entrants, creating an environment where “the rich get richer.” This dynamic has given rise to allegations of a pyramid scheme, where new validators must continually inject funds to maintain the system, which primarily benefits established validators. At the same time, Solana is facing serious technical issues, with transaction failure rates reaching 83% on some protocols, costing users thousands of dollars.
Gold and silver on the rise: cryptos on the decline?
As financial markets decline, precious metals, especially gold and silver, are surging, attracting investors seeking safety. Gold climbed to $2,496.30 and silver to $28.525, buoyed by positive economic indicators in the United States and geopolitical tensions. Conversely, the cryptocurrency market is experiencing a sharp decline, with giants like Bitcoin and Ethereum falling 25%. This is prompting investors to turn to gold and silver, considered safe havens in the face of increasing volatility in digital assets. The stability and security offered by precious metals currently seem more attractive than the uncertain promises of cryptocurrencies, reinforcing their status as safe havens in times of economic uncertainty.
That’s the main takeaway from this week. But if you’d like to receive a more detailed summary and in-depth analysis directly in your inbox, feel free to subscribe to our weekly newsletter.
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A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.
