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What goes up, comes down🚨
Cointelegraph goof-up, Bitcoin's moonshot halted at $30k. High school buds in the courtroom trial. Bitcoin whale with $5 billion BTC stash. Why? US Gov. Tether and Binance froze a bit.
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Crypto had one of them false alarm moments yesterday.
Yes. Bitcoin shop up almost 10% to hit $30k.
Then? Within minutes it was back to where it took the flight from.
And then? Well, it decide to settle somewhere in between.
What just happened there?
Well, a little birdie claimed the SEC nodded 'yes' to BlackRock's Bitcoin ETF.
Cointelegraph, a well-known crypto news outlet, mistakenly announced the SEC's approval of BlackRock’s iShares Bitcoin Trust ETF.
This led to the crypto community buzzing with excitement, and the market reacted swiftly.
Major cryptocurrencies like Ethereum, Solana, and Dogecoin followed Bitcoin's rally.
Grayscale's Milestone: Friday unveiled insights that the SEC would not challenge a court ruling from August which stated that the commission acted "arbitrarily and capriciously" when declining Grayscale's Bitcoin ETF application.
And GBTC? Read here: SEC vs / Grayscale⚔️
Debunking the Rumour: The tweet was deleted, and Cointelegraph issued an apology for spreading inaccurate info.
BlackRock's Statement: The financial giant clarified that its Bitcoin ETF application is still under SEC's review.
Market Reaction: Bitcoin's price swiftly retraced after corrections to the misinformation surfaced.
Even the SEC kinda responded👇🏻
CoinGlass data showed that in just an hour, positions worth $105 million were wiped out, which included $73 million in shorts and $32 million in longs.
Looking at the past day as a whole, about 40,000 traders faced a staggering $180 million liquidation.
Lookonchain pointed out that the false information led some traders to incur losses.
An example highlighted was a large Bitcoin holder who purchased 20.5 wrapped Bitcoin for $600,000 and later sold it for a mere $563,000 after the news was refuted.
Post the Bitcoin rally, multiple altcoins also experienced price hikes.
Solana: Achieved a robust 5% price surge, making it the top gainer among the leading ten cryptocurrencies. Despite this, it's currently valued at $23, a drastic fall from its $259 peak in November 2021. This growth is possibly linked to news that the FTX estate started staking its substantial Solana holdings during the weekend.
Binance (BNB): BNB's value increased almost 3% overnight. This follows the burning of over 2 million BNB tokens, totalling $450 million, by Binance, the world's dominant crypto exchange. Burning crypto translates to its intentional destruction, consequently reducing its circulating supply.
General Market Uplift: The overall cryptocurrency domain witnessed a 2.4% overnight rise, amassing an additional $24.8 billion to the total cryptocurrency market capitalisation.
Was it all a manipulation?
BlackRock, The global fund behemoth, managing $9.5 trillion in assets, filed for a Bitcoin ETF in June.
This move, along with others, caused Bitcoin's price to rally to a 12-month high.
Despite the queue of Bitcoin ETF applications, the SEC has postponed its decision.
Investors keenly await a Bitcoin ETF as it simplifies Bitcoin access without handling storage complexities.
An approved ETF is anticipated to attract significant investments, potentially skyrocketing Bitcoin's price.
Impacts of BlackRock's ETF Approval
Legitimisation: If BlackRock's ETF secures the SEC's nod, it will elevate not just Bitcoin, but the entire crypto industry.
Market Influence: BlackRock's involvement can link Bitcoin with immense wealth, making the world sit up and take notice. Additionally, clear US regulations will likely draw more institutional players to the crypto arena, augmenting market capital and liquidity.
Potential Concerns: Despite the allure of soaring prices, increased TradFi dominance in crypto may unsettle decentralisation purists. They are wary of these entities diluting or completely overshadowing crypto-centric innovations.
The probable emergence of a Bitcoin ETF, coupled with fair regulatory frameworks in regions like the US and EU, signifies that crypto (primarily DeFi) and TradFi can harmoniously coexist, serving different demographics with diverse solutions.
TTD Blockquotes 🎙️
The CEO of BlackRock, Larry Fink.
The recent Bitcoin rally shows 'pent up interest in crypto'
So, yes, the crypto community experienced quite a jolt when a false report claimed that BlackRock received its ETF approval.
Larry Fink shared his views on Fox Business. Surprisingly, he looked at the situation through rose-colored glasses.
To him, the rapid rally following the rumour was not a sign of the market's volatility but rather an indication of the "pent-up interest in crypto."
He opined that the day's activities underscored the global appetite for a Bitcoin spot ETF, especially in the current climate of global unrest.
The Need for Crypto: Larry Fink expressed that he'd been inundated with communications from global clients about the increasing demand and necessity for crypto.
"Some of this rally is way beyond the rumor," Fink said. "I think the rally today is about a flight to quality, with all the issues around the Israeli war now, global terrorism. I think there's more people running into a flight to quality, whether that is in Treasuries, gold or crypto, depending on how you think of it. And I believe crypto will play that type of role, as a flight to quality."
Fink has consistently been championing Bitcoin's potential, often drawing parallels between the cryptocurrency and gold.
He envisions Bitcoin as a form of "digitised gold."
Nishad Singh, the erstwhile engineering director of the crypto exchange FTX, is hoping to avoid a stint behind bars after striking a deal with prosecutors.
During the Oct. 16 criminal trial of Sam “SBF” Bankman-Fried, Singh spilled the beans on his agreement with the US Justice Department.
He had earlier pleaded guilty to fraud charges made public in February. The gravity of the charges could see him incarcerated for a whopping 75 years, given they're linked to defrauding FTX users.
Singh, who once held SBF in high esteem since their high school days, expressed his devastation on discovering the alleged misappropriation of funds by FTX’s higher-ups.
“I asked what the hell the plan was….Sam was not too worried.”
The Meat of the Matter:
Star Power: Singh shed light on FTX’s hefty endorsements, revealing about $1.3 billion splurged on tie-ups with celebs like Tom Brady, Gisele Bündchen, and Steph Curry before the tumultuous crypto market crash in 2022.
The Eye-Watering Sum: Singh revealed his discovery in September 2022 of a staggering $8 billion shortfall in FTX's accounts. Despite this revelation, Singh confessed to green-lighting transactions, fully aware they likely originated from user deposits.
Billions on Loan?: Singh alleged that Gary Wang, the former FTX CTO, had informed him about Alameda Research's colossal $13 billion loan from FTX—a fact that apparently didn't catch Bankman-Fried off-guard.
“Right, that. We are a little short on deliverables.” - SBF
Emotional Turmoil: Reflecting on the Alameda revelations, Singh stated, “People are going to be freaking out.” The news shattered him, lamenting the bitter twist to something he passionately worked on for half a decade.
App Purchases & Political Donations:SBF mooted the idea of pouring $120 million into buying the messaging platform Telegram. Furthermore, Singh claimed Alameda directed him to use FTX user funds specifically for political contributions.
Dark Times: As liquidity troubles surfaced at FTX in November 2022, Singh reportedly battled suicidal thoughts, grappling with the jarring difference between FTX's public persona and its behind-the-curtain dealings.
Solo Decisions: Singh highlighted instances where SBF would single-handedly decide on Alameda's expenditures without consultation, even though he ostensibly held a separate role at FTX. Singh's revelations on Oct. 16 painted SBF as a lavish spender of Alameda's coffers, citing investments in AI startup Anthropic and company K5 Global.
The FTX Saga🚨
Caroline Ellison was expected to shock the trial of Sam Bankman-Fried, but it was the defense team that surprised everyone👇🏻
TTD Numbers 🔢
The US government is now among the biggest Bitcoin holders - sitting on stash of over 200,000 BTC, estimated at $5 billion.
Based on a thorough analysis of public records, crypto company 21.co has deduced that the US government currently retains about 194,188 BTC, which at today's value, is roughly $5.3 billion.
They tracked the BTC flow in US government wallets linked with three mammoth BTC seizures since 2020:
Silk Road's 69,369 BTC in November 2020
Bitfinex Hack's 94,643 BTC in January 2022
James Zhong's 51,326 BTC in March 2022
While most of us have digital wallets, the US government goes old-school. Their Bitcoin is kept offline in super-secure, encrypted hardware wallets - guarded by the Justice Department and the IRS. In 2022, the US government orchestrated two major seizures.
Just because they've got it doesn't mean they own it outright. The US Marshals Service waits for the courts' green light before it can officially claim the seized Bitcoins. When it's time to sell, it's a whole event.
US Interest Rates, here to stay? 📈
Economists are hinting that sky-high US interest rates could stick around for good.
Even though the Federal Reserve hit pause on hiking rates in July, don't expect a sudden nosedive.
They're chilling at 5.5% after 11 hikes since 2020.
With the US national debt at a whopping $33.56 trillion, the Fed might feel the pinch to lower rates because, well, the interest bill is no joke.
Goldman Sachs analysts dropped some wisdom, warning that high rates might mean a slower GDP growth ride.
BlackRock's also singing from the same hymn sheet, predicting elevated rates.
TTD Freeze `🥶
Funds Linked to Terrorism 🚫
Tether, the big stablecoin player, has slapped a freeze on 32 addresses.
Why? They're thought to be connected with terrorist undertakings in Israel and Ukraine.
We're talking about $873,118 in USDT that's been linked to illicit activities in these two countries. And guess who's in cahoots with Tether in this move? Israel’s National Bureau for Counter Terror Financing.
Paolo Ardoino, the new head honcho at Tether since October:
“Contrary to popular belief, cryptocurrency transactions are not anonymous; they are the most traceable and trackable assets."
This isn't Tether's first rodeo. In 2022, they put a freeze on over $360 million in assets and later reissued over $100 million of USDT that was snatched up in interceptions. As of now, they reckon they've frozen about $835 million in USDT – mostly tied to sneaky blockchain and crypto exchange heists.
Binance Puts the Brakes on New UK Sign-Ups🛑🇬🇧
Binance has decided to take a pause.
Starting 5:00 pm on Oct. 16, it's no more new UK users for them.
The UK's Financial Conduct Authority (FCA) decided to set some ground rules for Binance's UK partner, Rebuildingsociety.com Ltd (shortened to REBS).
As of Oct. 10, REBS was given a legal no-go sign for advertising that pushes Binance products and services.
In response, Binance clarified that they're on the hunt for a new buddy that's got the FCA's stamp of approval.
But, until that alliance is formed and their promotions get the green light, they're going to have some limitations in place on their platform for the UK (both on their website and mobile app).
Good news for those already on the Binance UK platform! They get to enjoy the services without any hiccups.
But a tiny catch - any fresh-out-the-oven services or products won't be up for grabs during this 'in-between' phase.
TTD Surfer 🏄
Coinbase Ventures and Haun Ventures are partnering with the University of Arkansas to raise political support for cryptocurrencies.
Starting from October 17th, Uniswap will charge a fee of 0.15% for certain token swaps on its web interface and wallet.
New York City Mayor Eric Adams has unveiled plans for the responsible usage of artificial intelligence (AI) in the local government.
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