Did El Salvador get it right? ⤴️
Did El Salvador get it right? ⤴️
Bitcoin bet playing out well for the risk takers. Jim Cramer turns bullish on Bitcoin. Cathie Wood dumps 700K GBTC shares in 1 month. SBF trading mackerel in prison. Hacker offered $4.6M for $46M loot
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El Salvador's President, Nayib Bukele’s "let's go Bitcoin” march has drawn criticism, from almost everyone. But, are things changing now?
Performance Analysis: Tracking Bukele's Bitcoin Investment
As per NayibTracker website—tracking president’s tweets to record how much Bitcoin he’s bought - Bukele is down nearly 7% on his investment of 3,126 BTC.
*Discrepancies for right government data and the dollar cost averaging
Market Context: BTC Prices and Purchase Points
All of Bukele's Bitcoin acquisitions occurred below the cryptocurrency's all-time high of $69,044 in November 2021.
The costliest batch, consisting of 420 coins, was purchased at $60,345 per coin.
Despite these strategic entries, the president has yet to see a profit on his investment.
Economic Landscape: Beyond Bitcoin
Despite the challenges in the crypto market, El Salvador's economic outlook has seen positive developments.
The country, once on the brink of defaulting on substantial national debts, has witnessed favorable returns on its bonds, attracting investor interest.
Bukele's Vision: From Surfing to Tech Hub
Before Bukele assumed the presidency, El Salvador was primarily known for surfing, a history of civil war, and rampant gang violence.
Under Bukele's leadership, efforts have been made to transform the nation into a tech hub, actively seeking foreign, including Chinese, investment.
Security and Social Impact: Decreasing Crime Rates
Bukele's strict measures against notorious gang activity have led to a significant reduction in the nation's murder rate.
This improved security landscape aims to attract a vibrant expat community and discourage Salvadorans from migrating north to the United States.
Citizen Sentiment: Navigating the Bitcoin Conundrum
While Salvadorans appreciate the enhanced security, the adoption of Bitcoin has been a divisive issue. If Bukele's Bitcoin bet eventually turns profitable, he may need to navigate the challenge of convincing citizens to embrace cryptocurrency, a potential "orange pill" moment for the nation.
MicroStrategy Stock Hits Nearly Two-Year High
MicroStrategy (NASDAQ:MSTR), a Bitcoin-centric enterprise, experienced a significant surge on Black Friday as its shares closed above $500, reaching a level not seen since December 2021.
The company, with a market cap of $7.33 billion, has adopted a successful long-term strategy of holding Bitcoin as a hedge against inflation.
Despite starting the year with a quarterly loss, MicroStrategy's stock doubled within a month.
The company, under the leadership of founder and chairman Michael Saylor, has become one of the largest institutional holders of Bitcoin. Saylor initiated Bitcoin purchases in August 2020, and this move has proven fruitful.
Coinbase Stock hits 18-Month High
Coinbase's stock (COIN) is experiencing a surge, reaching its highest price since before the Terra crash in May 2022.
Currently trading at $115.75 per share, it's up nearly 6% in the past day and has risen over 41% in the last month.
This surge follows the bear market triggered by Terra's collapse.
Coinbase's renewed attention may be linked to its selection by major Wall Street firms like BlackRock and Fidelity as a custodian or surveillance-sharing partner for potential Bitcoin exchange-traded funds (ETFs).
As Bitcoin and Ethereum prices also rebound, Coinbase's stock is gaining momentum.
TTD Blockquote 🔊
Jim Cramer, Mad Money
“Look, if you like Bitcoin, buy Bitcoin. That has always been my view. And for a while, I liked it, and I decided that money had been made, but I was premature.”
As Bitcoin continues to pump, CNBC host Jim Cramer has changed his tune about crypto once again.
Some Bitcoiners joke that BTC is now doomed.
Inverse Cramer anyone?
TTD Numbers 🔢
700k
The number of Grayscale Bitcoin Trust (GBTC) shares Cathie Wood’s ARK Invest has sold over the past month.
The ARK Next Generation Internet ETF (ARKW) sold 36,168 GBTC shares on Nov. 22, offloading a total of 697,768 GBTC since Oct. 23, according to ARK’s daily trading data.
ARK started selling Grayscale Bitcoin Trust shares on Oct. 23, 2023, as Bitcoin was heading toward $34,000.
Before that, ARK’s previous reported GBTC transaction was in November 2022, when the firm sold 450,272 GBTC shares.
ARKW offloaded roughly $1 million in GBTC as Grayscale’s trust traded around $30 on Nov. 22, closing at $30.50.
ARK’s Next Generation Internet ETF (ARKW) still holds $131.8 million worth of GBTC, or more than 4.3 million GBTC shares.
As of Nov. 24, Grayscale Bitcoin Trust accounts for 9.2% of ARKW’s portfolio, ranked third after Coinbase and Roku, according to the official ARKW data.
Where’s ETF? 🚨
A significant number of Grayscale Bitcoin Trust (GBTC) shares have been bought in the secondary market this year at a deep discount to net asset value (NAV) in anticipation the trust’s conversion to an exchange-traded fund (ETF) will be approved by the US Securities and Exchange Commission (SEC), JPMorgan (JPM) said in a research report Thursday 👇
TTD Fishy 🐡
Former FTX CEO Sam Bankman-Fried, recently convicted on fraud and money laundering charges, has transitioned from crypto trading to an unexpected commodity: fish.
Mackerel Emerges as Prime Prison Currency
SBF reportedly engaged in trades involving packets of Mackerel, commonly known as "macks," at the Metropolitan Detention Center (MDC).
Mackerel has surged in popularity as the primary trading commodity in US prisons since the prohibition of tobacco products.
The commissary at MDC sells these fish packets for $1.30 each.
A Peculiar Marketplace Inside Brooklyn's Cells
Sharing a cell with former Honduran President Juan Hernández and a former senior Mexican police officer, Bankman-Fried navigates this unconventional marketplace.
The WSJ report sheds light on the hierarchy of prison currencies, with postage stamps and soup packets trailing behind mackerel in terms of value.
Controversy and Confirmation from Behind Bars
While social media pundits questioned the authenticity of the reports, Martin Shkreli, also known as "pharma bro," who spent over four years in federal prison, confirmed the prevalence of macks as a staple currency.
Bankman-Fried, a vegan, chose not to consume mackerel, making them a more convenient commodity for trading.
TTD Hacker 🔶
KyberSwap, a decentralized exchange protocol, suffered an attack resulting in the loss of $47 million.
The exploit targeted KyberSwap’s Elastic pools, impacting funds across various blockchains, including Arbitrum, Optimism, Ethereum, Polygon, and Base.
Hacker's Message and KyberSwap's Response
Before executing the exploit, the attacker left a message on the blockchain indicating an interest in negotiations with KyberSwap's team.
"Dear Kyberswap Developers, Employees, DAO members, and LPs, negotiations will start in a few hours when I am fully rested. Thank you."
KyberSwap responded by proposing a deal.
In an on-chain message, the team offered a 10% bounty reward to the hacker, amounting to approximately $4.7 million.
The condition was that the hacker returns the remaining 90% to a specified address by 6 am UTC on November 25.
Ultimatum to the Attacker
KyberSwap's co-founder, Victor Tran, issued an ultimatum in the message, stating that the hacker must either return the funds or "stay on the run."
The implied white hat bounty is part of KyberSwap's efforts to mitigate the consequences of the incident and restore liquidity providers to their original state.
Vulnerability Details and Analysis
Security firm Beosin explained that the vulnerability leading to the attack was related to an issue with the tick interval boundaries on Kyber's liquidity pools.
Ambient exchange founder Doug Colkitt explained the KyberSwap attacker relied on a “complex and carefully engineered smart contract exploit” to carry out the attack.
This flaw allowed the hacker to artificially double the liquidity, subsequently draining the funds.
TTD Surfer 🏄
The Austrian subsidiary of European lender Raiffeisen Bank is preparing to launch Bitcoin trading in early 2024.
South Korea is set to experiment with central bank digital currencies (CBDCs), involving 100,000 of its citizens in the pilot project.
Interactive Brokers Hong Kong has been approved for virtual asset trading by retail clients in Hong Kong, its regional managing director announced.
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