Ethereum
The biggest crypto news of the past week
11:00 a.m. ▪ 7 min reading ▪ by Luc Jose A.
Amid groundbreaking announcements, technological advancements and regulatory turbulence, the crypto ecosystem continues to prove that it is both a territory of limitless innovation and a field of regulatory and economic battles. Here is a recap of the most notable news from the past week regarding Bitcoin, Ethereum, Binance, Solana, etc.
MicroStrategy perseveres despite everything!
MicroStrategy has continued to increase its Bitcoin holdings, reaching an impressive total of 214,400 BTC with a recent acquisition of 122 Bitcoins for $7.8 million. Despite a net loss of $53 million in the first quarter of 2024 and a 5.5% year-over-year revenue decline, the company maintains its massive crypto investment strategy. These market movements occurred against a backdrop of increased volatility, affecting the value of the company’s digital assets.
This bold strategy, although risky given the volatility of the crypto market, is a bet on the long-term profitability of Bitcoin. However, this approach led to significant financial losses and prevented MicroStrategy from joining the S&P 500, dealing a blow to the company’s attractiveness to investors. The future of this strategy remains uncertain, but it demonstrates a strong commitment to the potential of Bitcoin.
Light sentence for Changpeng Zhao despite heavy charges
Changpeng Zhao, the founder of Binance, was sentenced to just four months in prison and fined $50 million for fraud and compliance violations. This sentence is significantly more lenient than the three years requested by prosecutors and is seen, by some, as a sign of leniency that downplays the seriousness of the offenses and thus sets a worrying precedent for the industry.
Furthermore, this case highlights the challenges regulators face in an ever-changing industry and highlights the need to strike a balance between promoting innovation and protecting investors. Zhao’s case also illustrates the tension between strict regulation and the potential to push key players into more permissive jurisdictions.
Treasury targets crypto fraudsters in France
In France, the gap between the actual use of cryptocurrencies and tax declaration is alarming. According to figures from the European Central Bank, around 5 million French people are crypto users, but only 150,000 tax declarations have been recorded.. This discovery prompted the Treasury to take drastic measures to combat tax fraud, partly inspired by the massive fraud already observed in other schemes such as MaPrimeRénov, where 400 million euros were embezzled.
To combat this scourge, the Treasury has decided to deploy artificial intelligence for more effective and targeted surveillance. A new anti-fraud legislative framework, including a section specific to cryptocurrencies, is in preparation. Artificial intelligence will be used to analyze blockchains and detect suspicious activity in real time, modeling fraud patterns to better track and untangle the most complex money laundering circuits. This technological approach promises constant vigilance and increased capacity to respond to fraudulent schemes.
BNP Paribas invests in Bitcoin
May 1, 2024 marks a contradictory event in the world of Bitcoin ETFs, with record outflows of $563.7 million in a single day. Despite this tumultuous context, BNP Paribas, Europe’s second largest bank, has taken a significant step towards Bitcoin adoption by investing around $40,000 in BlackRock’s IBIT ETF. Although modest, this investment is symbolic of the growing acceptance of Bitcoin by traditional European financial institutions.
This move by BNP Paribas could mark the start of broader institutional acceptance of Bitcoin as a viable asset class. Until now, this adoption has mainly been driven by US asset managers and regional banks. BNP’s commitment could encourage other major banks and asset managers to invest in Bitcoin, thereby accelerating its mainstream acceptance and increasing flows into ETFs and other regulated vehicles.
RippleX revolutionizes XRP with a new feature
RippleX recently launched an innovative feature, the XLS-68d specification, which aims to simplify and democratize transactions on the XRP Ledger (XRPL). This new specification allows platforms to manage fees and account reserves for their users, significantly reducing the complexity and financial barriers associated with using XRP. Users will benefit from so-called “sponsored transactions,” where they can include sponsor signatures in their transactions while maintaining full control of their accounts.
This advancement is seen as a major step towards mass adoption of XRP, as it allows platforms to cover transaction costs for their users, making XRP accessible to a wider audience.
SEC Controversy: Accusations of Lying on Ethereum
Gary Gensler, Chairman of the SEC, is accused of misleading the US Congress by classifying Ethereum as an unregistered security. These revelations, from internal SEC documents exposed during a lawsuit with the company Consensys, show that the agency considered ETH as a security for more than a year. These actions contradict public statements by Gensler, who refused to clarify the SEC’s position on Ethereum during a hearing, avoiding direct questions on the subject.
Patrick McHenry, chairman of the House Financial Services Committee, has openly criticized Gensler for what he sees as deception of Congress. This situation highlights the challenges and contradictions of SEC regulation of cryptos. The outcome of these regulatory debates could have significant implications for the legal status of Ethereum and other cryptocurrencies in the United States.
PayPal expands its crypto offerings with MoonPay
PayPal has significantly expanded its crypto offerings through a strategic partnership with MoonPay. This collaboration allows PayPal to offer more than 100 different digital assets to its users, thus simplifying the purchase of cryptocurrencies just like a regular online purchase. Likewise, this partnership improves the compatibility of crypto transactions with traditional banking systems and reduces transaction failures, thereby providing a smooth and secure user experience.
In conclusion, this integration guarantees better protection of the personal data of customers, who no longer need to provide their information separately to MoonPay for transactions. With the addition of popular cryptos such as Solana, Tether and Dogecoin, PayPal expands the possibilities of its users in terms of investment and daily use of cryptos.
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Luc José A.
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 took the 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, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.