Hodler's Digest

Pudgy Penguins gets a character in Pixelverse’s mini-game, the influence of ETFs on ETH price, and Craig Wright admits he’s not Satoshi.

The face of the popular non-fungible token (NFT) collection Pudgy Penguins will be integrated as a character on Pixelverses mini-game on Telegram. On July 16, Pixelverse announced that it would introduce the Pudgy Penguins character Pudgy into the game, joining other crypto favorites such as Doge from the Dogecoin memecoin and Mew, a character that represents a Solana memecoin. The integration allows players to play the character in the Pixelverse game. A standalone Pudgy Penguins mobile game is slated for release sometime in 2025. While the NFT market is down, some experts argued that the space is experiencing a correction cycle.

Craig Wright issued a legal disclaimer on the home page of his website on July 16, emphatically stating that he is not the pseudonymous creator of Bitcoin, Satoshi Nakamoto. The disclaimer cited the recent ruling from the United Kingdoms High Court of Justice and directed website traffic to the summary of the findings presented by the Crypto Open Patent Alliance. The disclaimer admits that Wright was not the author of the Bitcoin white paper and concedes that the computer scientist does not hold a copyright to the technology outlined in the white paper.

United States spot Ether exchange-traded funds (ETFs) will have a rough start but could have a bigger impact on the assets price than Bitcoin ETFs did for BTC, according to Bitwise chief investment officer Matt Hougan. According to Hougan, one reason Ether ETFs will have a bigger impact on the assets price is that Ethers inflation rate effectively amounts to zero, given the widespread usage of Ethereum-based applications compared to the small amount of ETH created daily.

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VanEck and 21Shares submit updated Ether ETF filings, Goldman Sachs to launch tokenization products, and Messi promotes memecoin.

Asset managers VanEck and 21Shares amended their S-1 forms for their prospective Ether exchange-traded funds (ETFs) with the US Securities and Exchange Commission on July 8. While a specific launch date was not given in either of the amended filings, experts suggested a July launch window for the Ethereum ETFs.

Soccer sensation Lionel Messi made waves this week by promoting WaterCoin on his Instagram stories. The Solana-based memecoin claims to be a charity project focusing on water conservation and water-related issues, with purported plans to become a full-fledged ecological coin in the future. Note that investing in memecoins can carry substantial risk; always do your own research before making any investment.

The average Bitcoin transfer fee dropped to 2020 lows on July 7, when the metric hit $38.69. This quantitative measurement is determined by dividing miner profits by the total transactions successfully posted to the blockchain. According to recent data from CryptoQuant, the Bitcoin hashrate drawdown also reached December 2022 levels in July, suggesting that mining operations are capitulating.

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Roaring Kitty fraud lawsuit voluntarily dropped, Ethereum Foundation email server hacked, and Circle becomes first MiCA-compliant stablecoin issuer.

A lawsuit against GameStop trader Roaring Kitty, aka Keith Gill, was voluntarily dropped after three days. The lawsuit, brought by Martin Radev, accused the meme trader of securities fraud for his alleged role in manipulating the price of GameStops stock. However, Radevs lawsuit was dropped without prejudice, meaning he can file the lawsuit against Gill again in the future.

Bitcoins recent drop below the $60K mark is prompting many investors to buy the dip, as talk of taking advantage of the price swing has risen sharply on social media over the last several days. According to research firm Santiment, the frequency with which the term has been mentioned on the internet has doubled during Bitcoins downward price movement.

On July 2, the Ethereum Foundation revealed that its email server was hacked in late June. The malicious actor sent out 35,794 emails to subscribers claiming that the Ethereum Foundation and the Lido decentralized autonomous organization were promoting a 6.8% yield on ETH, stETH and wETH. Following the malicious links all the way to the end would have drained funds from users. Thankfully, the Ethereum Foundation was able to plug the security vulnerability that led to the email breach and informed other organizations of the malicious activity. According to the foundation, no funds were lost as a result of the exploit. However, the emails of 81 individuals may have been exposed during the security breach.

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VanEck seeks approval for Solana ETF, ETH supply rises 73 days in a row, and Satoshi-era wallet moves Bitcoin.

VanEck has filed for a Solana (SOL) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission, marking the first such filing on Wall Street. The VanEck Solana Trust aims to reflect the performance of the SOL token, excluding operational expenses. If approved, the ETF will be listed on the Cboe BZX Exchange. VanEcks head of digital assets research, Matthew Sigel, cited Solanas decentralized nature in a social media post, comparing SOL to other digital commodities like Bitcoin and Ether.

Ethers supply has been increasing for 73 days in a row, with over 112,000 ETH added since mid-April. This is the longest inflationary streak since the Merge in 2022. The recent Dencun upgrade, which aimed to reduce transaction costs on Ethereums layer-2 networks, also significantly reduced the amount of ETH burned on the mainnet. Despite this inflationary period, Ethers overall supply has decreased by 345,000 ETH since the Merge.

A Bitcoin wallet from the Satoshi era, dormant since 2010, has transferred 50 BTC to Binance. The wallet, linked to a miner who earned the Bitcoin as a reward when BTC was worth $0.05, has now seen its value rise to millions. The movement of crypto to centralized exchanges is often seen as a bearish sign, as most of the time, the use of centralized exchanges is linked with selling assets.

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The U.S. Securities and Exchange Commission has dropped its case against Ether. However, in another crypto case, the regulator still demands billions in penalties from Ripple.

The U.S. Securities and Exchange Commission is dropping its investigation into whether Ether is a security, Ethereum developer Consensys disclosed on June 19. The investigation focused on whether Ethereums 2014 initial coin offering constituted an unregistered securities offering. Consensys said the SECs decision came after it sent a letter to the agency on June 7 asking if it would end its investigation into Ether (ETH), as the regulator approved exchange-traded funds in May premised on ETH being a commodity.

Crypto exchange Kraken has recovered missing funds from CertiK following a high-profile bug bounty exploit fiasco. Kraken confirmed the return of digital assets worth nearly $3 million on June 20, putting an end to the Kraken-CertiK saga. The exchange claimed that a security researcher maliciously withdrew from its treasury after discovering and sharing an existing bug. Shortly after, blockchain security firm CertiK publicly identified itself as the security researcher, saying it had informed Kraken of an exploit that allowed it to remove millions of dollars from the exchanges accounts. CertiK also claimed to have been threatened by the exchanges team.

The U.S. Securities and Exchange Commission (SEC) rejected Ripples request for a lower penalty amid its legal battle with the regulatory agency, arguing that Ripples proposed $10 million penalty is insufficient compared to the $876.3 million sought. Ripple had cited the SECs settlement with Terraform Labs as a benchmark, but the agency believes the circumstances are not comparable, as Terraform agreed to additional measures like leadership changes and investor repayments. The SECs proposed penalties for Ripple total nearly $2 billion, which includes $198.2 million in prejudgment interest, $876.3 million in civil penalty and another $876.3 million in disgorgement.

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Elon Musk threatens to ban Apple devices if they integrate with ChatGPT, Greenpeace calls for a shift in Bitcoin’s consensus mechanism, and more.

Elon Musk has threatened to ban Apple devices within his companies if Apple integrates OpenAIs ChatGPT into its operating systems at a deep level. He views such an integration as a significant security concern. This issue arose as Apple disclosed during the Worldwide Developers Conference that its upcoming software update will include new AI features, notably allowing Siri to utilize ChatGPT to answer user queries. Musk criticized Apple for potentially compromising user privacy and not developing their own AI solutions.

Greenpeace has been actively campaigning to change Bitcoins proof-of-work consensus model to a more environmentally friendly proof-of-stake model. Their campaign, Change the Code, Not the Climate, argues that Bitcoins current energy consumption, largely fueled by non-renewable sources, significantly contributes to environmental degradation. The campaign has drawn attention by urging popular figures in the crypto space to support a shift to more energy-efficient blockchain operations.

Terraform Labs has agreed to pay the United States Securities and Exchange Commission roughly $4.47 billion as part of its settlement with the securities regulator. The agency, however, has to queue up behind secured creditors to receive a payment, if any. In January, when the firm filed for bankruptcy, Terraform had assets worth $430.1 million against liabilities worth $450.9 million. The settlement received court approval on June 13.

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GameStop trader Roaring Kitty sees his GME stake rise to $1 billion, Bitcoin open interest spikes and new U.S. laws target digital assets.

Keith Gill, also known by his internet nicknames Roaring Kitty and DeepFuckingValue, could soon emerge as a billionaire due to his investments in GameStop (GME) shares. The trader, known for the GameStop short squeeze in 2021, has seen his holdings rise in value after he announced a new $180 million investment in GME shares. The announcement led to a significant increase in GameStops stock price, boosting its market capitalization and ranking it among the top 400 public companies in the U.S. Meanwhile, Gill faces scrutiny and a potential investigation for market manipulation.

Bitcoins open interest increased by $2.02 billion over three days, totaling $36.92 billion on June 6. The spike has led traders to speculate about a potential whipsaw effect a sudden reversal in price direction due to the high volume of leveraged positions. Experts suggest that while this might lead to short-term price corrections, it also shows increased speculative activity that could influence Bitcoins price volatility.

A new U.S. law grants the president significant powers to block access to digital assets, specifically targeting foreign entities linked to terrorism. The law, called the Terrorism Financing Prevention Act, defines digital assets broadly, encompassing any digital representation of value cryptographically recorded on distributed ledgers. Critics argue that the laws expansive scope could push users toward Know Your Customer-compliant, permissioned blockchains, effectively controlling the digital asset landscape.

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Analysts predict ETH ETF’s launch for June, Bitcoin dips as Mt. Gox wallets move, and Binance France changes ownership.

United States spot Ether exchange-traded funds (ETFs) could potentially launch by late June, following recent positive developments in the approval process. BlackRock updated its necessary Form S-1 filing for the iShares Ethereum Trust (ETHA) with the U.S. Securities and Exchange Commission (SEC) on May 29, a week after the SEC approved its 19b-4 filing. According to Bloomberg ETF analyst Eric Balchunas, these are good signs that indicate other applications might soon follow. According to Balchunas, a late June launch is possible, but an approval around July 4 is more likely.

Binance France has undergone a complete ownership change, now fully owned by new shareholders, following a warning from Frances Financial Markets Authority. The move was intended to remove former Binance CEO Changpeng Zhao from the companys control due to issues with U.S. regulatory bodies, including the Justice Department and the Financial Crimes Enforcement Network. Zhao pleaded guilty to U.S. charges in November and was sentenced to four months in prison.

A memecoin called Turbo, created using the OpenAI chatbot ChatGPT with an initial investment of $69, reached a market capitalization of $638 million a year after its launch. The coins price peaked at $0.009302 on May 28, setting a new all-time high and bringing its valuation up significantly from $27 million three months earlier a 2,262% increase. At its peak, the memecoin has risen by 13,192.3% from September 2023. The tokens creator, digital artist Rhett Mankind, claims it exploded in popularity due to his lack of involvement in its management.

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U.S. SEC approves spot Ether ETFs, FIT21 crypto bill goes to the Senate, and Sam Bankman-Fried held in Oklahoma.

The U.S. Securities and Exchange Commission (SEC) has given the regulatory green light to spot Ether exchange-traded funds (ETFs) in the United States on May 23. The approval reaches filings from major firms such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. Issuers must still obtain SEC approval for their S-1 registration statements before the ETFs can officially begin trading. The SEC had previously asked applicants to expedite filings on May 20, with the removal of staking being the most notable amendment seen. The approval was considered an implicit recognition from the SEC that Ether is not a security, according to industry pundits.

The Financial Innovation and Technology for the 21st Century Act (FIT21) passed the U.S. House of Representatives on May 22. The bill now heads to the Senate, where its future is uncertain, facing opposition from Senator Elizabeth Warren. FIT21 proposes giving the Commodity Futures Trading Commission (CFTC) primary control over cryptocurrencies, which the industry views as a more lenient regulator compared to the Securities and Exchange Commission (SEC). The SEC would still regulate cryptocurrencies that arent sufficiently decentralized, but FIT21 introduces a mechanism for cryptocurrencies classified as securities to be sold as commodities. The Biden administration and the SECs Chair, Gary Gensler, have both issued statements opposing the regulation.

Former FTX CEO Sam SBF Bankman-Fried is no longer incarcerated in New York or California, where his parents own a home according to prison records, hes in Oklahoma. As of May 23, inmate records for the Federal Bureau of Prisons showed that Bankman-Fried was being held at the Federal Transfer Center in Oklahoma City. The facility confines inmates on a short-term basis for transfers within the prison system. The transfer appeared to have happened despite Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York recommending SBF stay at the Metropolitan Detention Center, Brooklyn.

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Trader makes millions after PEPE price soars, a new gas model for Ethereum, and Tornado Cash developer convicted.

A savvy trader made $46 million in profit, which is an eye-watering 15,718-fold return on his initial $3,000 investment. The unknown wallet bought 4.9 trillion PEPE for $3,000 on April 15, which is currently worth over $56 million. The trader sold 1.41 trillion PEPE for $7.4 million and is currently sitting on 3.5 trillion PEPE, worth $38.9 million, according to a May 15 X post from Lookonchain. PEPEs market capitalization was around $4.5 billion on May 15, making it the third-largest memecoin behind Dogecoin (DOGE) and Shiba Inu (SHIB).

Ethereum co-founder Vitalik Buterin has proposed Ethereum improvement protocol, EIP-7706, which introduces a new gas model for transaction call data. This new fee would be separate from the existing gas fees for transaction execution and data storage. The proposal aims to reduce costs for transactions that are data-heavy but not computationally intensive by setting separate charges for call data, distinct from the costs of executing contract code or storing data in blobs. If the proposal is accepted, the Ethereum network will be responsible for setting the call data costs independently of other costs.

Alexey Pertsev, the developer of the cryptocurrency mixing protocol Tornado Cash, has been found guilty of money laundering, raising potentially severe implications for open-source code developers. The developer was sentenced to five years and four months in prison for allegedly laundering $1.2 billion worth of illicit assets on the platform. The sentencing came despite Tornado Cash being a noncustodial crypto mixing protocol meaning that the funds that go through the protocol are never held or controlled by it.

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