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- 🔥 ETH and BTC are NOT securities - confirmed by court!
🔥 ETH and BTC are NOT securities - confirmed by court!
Also: Are Shitcoin ETFs really the solution?
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Today we’re talking about:
🪙 ETH and BTC are NOT securities - confirmed by court!
🧠 How Vitalik backed project outsmarted Inferno Drainer scammers
💩 Shitcoin ETFs: are they really the solution?
🍊 Trump’s crypto play: going all in for votes
LFG!
ETH and BTC are NOT securities - Confirmed by court!
A recent court decision has officially confirmed that both Bitcoin and Ethereum are commodities, not securities 🔒️
This is a huge deal because it means they won't be subject to the same strict regulations that securities face.
Essentially, it gives crypto a bit more freedom to do their thing without the heavy hand of the SEC coming down on them 🔨
Illinois Court Affirms Bitcoin And Ether As Commodities, CFTC Chair Highlights Decision
An Illinois court affirmed Bitcoin and Ether as commodities under the Commodity Exchange Act, aligning with the CFTC's stance and contrasting SEC Chair Gary Gensler's view of many cryptos as… x.com/i/web/status/1…
— CRUXX | Crypto News App (@Coin_CRUXX)
6:21 AM • Jul 11, 2024
If BTC and ETH were classified as securities, it would mean more red tape, more regulations, and more hoops to jump through for companies and investors wanting to get involved.
By being classified as commodities, they're more like gold or oil, which means they can be traded more freely.
This all came about because of a legal case that’s been brewing for a while. The court's decision was based on the fact that both Bitcoin and Ethereum are decentralized enough to not fall under the category of securities.
They don't have a central company or organization controlling them, which is a key factor in this ruling.
The ruling stems from the idea that Bitcoin and Ethereum's decentralized networks and the way they are mined and managed by a community of users mean they don’t meet the criteria of securities, which typically involve profit expectations from the efforts of others (like a company or a centralized entity) 🧠
ETH ETFs are nearly there
In the meantime, the community is waiting for the ETH ETFs to finally hit the market (and pump everyone’s bags) 🥶
According to the latest updates, the ETFs are nearing the finish line.
Bitwise’s Chief Compliance Officer has mentioned that they are working diligently with regulators to ensure that these ETFs “meet all necessary standards”.
⌛ Ethereum ETFs might be coming soon. Bitwise CCO Katherine Dowling says "fewer and fewer" issues are popping up in S-1 filings, signaling a potential green light from the SEC.
#EthereumETFs#ETH
— Cryptonews.com (@cryptonews)
3:55 PM • Jul 10, 2024
The process has been long and detailed, but they are optimistic about the approval coming soon. This would mark a significant milestone for ETH as well as the traditional financial market 💹
The war on crypto might not be completely over, but these are first good steps in a while, and it’s good to see! 🪖
How Vitalik-backed project outsmarted Inferno Drainer scammers
Vitalik Buterin, the brain behind Ethereum, backed a project called Railgun that just outsmarted one of the most notorious scamming groups, Inferno Drainer.
Let’s break down how it all went down 🤔
So, what’s Railgun? It’s a privacy-focused protocol that allows for private transactions on the Ethereum blockchain.
One can use Railgun to send and receive ETH and other tokens without revealing your transaction details to the world.
It’s all about keeping your crypto moves under wraps. Obviously, scammers would like their moves to stay under wraps as well 🙄
The Inferno Drainer scam
Inferno Drainer is a notorious group known for their sophisticated scams. They’ve been draining wallets and siphoning off funds from unsuspecting crypto users for a while now.
These scammers are slick, using fake websites, phishing attacks, and other tricks to get their hands on your crypto.
Recently, they attempted to launder more than $530,000 worth of ETH through the Railgun privacy protocol 💸
Inferno Drainer: Unmasking the Multi Million Dollar Phishing Scam
As a cybersecurity enthusiast and researcher, I've had the opportunity to dive into one of the most significant phishing operations of Web3 :
Inferno Drainer.This wallet drainer, responsible for stealing… x.com/i/web/status/1…
— 0xSaiyangod | Doom Bot (@w3bsecops)
2:04 AM • Jul 3, 2024
Here’s where it gets interesting, Railgun’s team has apparently been working tirelessly to enhance the protocol’s security features.
They’ve developed tools that can detect these scammers 👇️
Wallet-draining group Inferno Drainer was foiled in its attempt to launder more than $530,000 worth of $ETH through the Ethereum privacy protocol @RAILGUN_Project.
— Cointelegraph (@Cointelegraph)
5:30 AM • Jul 11, 2024
It’s probably not the biggest win in crypto cybersec ever but it’s a step in the right direction.
Shitcoin ETFs: Are they really the solution?
There’s so much talk about “potential $[insert shitcoin ticker] ETFs” and we need to chat about it.
ETFs are pretty cool tools for traditional investors. They make it easy to buy and sell assets without needing to own the actual thing.
But, here's the kicker: applying this to highly speculative assets like shitcoins might not be the best move 🤷
ETFs for everyone?
I care so little about this eth etf lol
Every shitcoin will get an etf
The narrative hasn't changed since last Nov
There will be a battle for a yield bearing etf, once we get confirmation the big boys are willing to fight it, eth will shine
Non yield bearing is boring
— loomdart - Holy War Arc (@loomdart)
5:28 AM • Jul 6, 2024
ETFs are like the Swiss Army knives of traditional finance. They let you invest in a basket of assets without having to buy each one individually 💵
This makes them super handy for diversifying your portfolio and managing risk. Think of it as spreading your bets across the board to avoid putting all your eggs in one basket 🥚
The next crypto ETFs will be $LINK, $BCH and $LTC and in this thread I will prove it.
— Assblaster (@0xAssblaster)
8:45 AM • May 24, 2024
In the traditional finance world, ETFs are used for things like tracking stock indices, commodities, or bonds. They provide stability and predictable returns. But in the wild west of crypto, where volatility is the name of the game, ETFs might not offer the same benefits.
Sure, they can bring more people into the crypto space by lowering the entry barrier, but they also come with management fees and a level of centralization that doesn't sit well with the DeFi ethos.
SHIB ETFs
#ShibaInu Team Touts Imminent Introduction of SHIB ETFs.
— TheCryptoBasic (@thecryptobasic)
6:54 AM • Jul 12, 2024
On one hand, an ETF for SHIB could boost its demand and liquidity by making it more accessible to traditional investors.
More people can jump on the bandwagon without diving into the complexities of crypto exchanges. It sounds like a win, right? But hold up 🤔
Volatility: Memecoins like SHIB are notorious for their price swings, often influenced by social media trends and celebrity endorsements. This unpredictability makes them risky for the structured nature of ETFs, which aim to provide a stable investment vehicle.
Lack of Fundamental Value: Unlike stocks or traditional assets tracked by ETFs, memecoins often lack a solid underlying value or utility. Their prices are driven more by speculation than by actual use cases, which can lead to significant investment risks.
Market Manipulation: Memecoins are more susceptible to market manipulation due to their lower liquidity and concentrated holdings. A few large trades can drastically impact prices, making them less reliable for the stability ETFs are known for.
Investor Expectations: Traditional investors might not fully understand the speculative nature of memecoins. An ETF might give a false sense of security and legitimacy to assets that are inherently risky, potentially leading to significant financial losses for unsuspecting investors and a huge reputation hit for crypto.
Running out of steam?
Memecoin founders are always hunting for the next big thing to keep their coins relevant. First, it was Layer-3 networks, now it's going to be ETFs.
Next year, who knows what it'll be? But at some point, they might run out of new tricks to keep the hype going.
When that happens, the bubble might just pop.
Trump’s crypto play: Going all in for votes
Trump is continuing to push a pro crypto stance to win some votes ahead of the elections.
Here’s what he’s up to:
Bitcoin conference appearance
Trump has decided to speak at a Bitcoin conference later this month and the community considers this a massive signal 💥
Former U.S. President Donald #Trump is set to headline as a keynote speaker at the #Bitcoin 2024 conference in Nashville, Tennessee, from July 25 to 27.
— CryptoTvplus (@Cryptotvplus)
2:05 PM • Jul 11, 2024
The conference is a big deal, attracting enthusiasts and major players from all over. By making an appearance, Trump is directly engaging with the community and showing he’s serious about supporting BTC and crypto in general.
Opposing Central Bank Digital Currencies (CBDCs)
One of Trump’s major talking points is his opposition to CBDCs 🪙
He believes that these digital currencies, controlled by central banks, could lead to increased government surveillance and control over personal finances 👇️
Donald Trump announces plans to ban CBDCs when he becomes president of the United States
— CryptoSavingExpert ® (@CryptoSavingExp)
11:35 AM • Jan 18, 2024
This stance is a big hit with the crypto community, which values privacy and decentralization above all else.
Backing crypto mining
Trump’s support for crypto mining 👷 ⛏️ is another big move.
Crypto mining is crucial for the BTC as well as some other networks, and Trump has pledged to protect it from regulatory crackdowns 📉
Trump Advocates for Bitcoin to be ‘Produced in the USA’ Following a Meeting with Mining Industry Leaders
Donald Trump reaffirmed his support for the Bitcoin mining industry after meeting with executives from American crypto mining companies.
On 11 June, he posted on Truth… x.com/i/web/status/1…
— Imperial Wealth Crypto (@crypto_iw)
12:54 AM • Jun 13, 2024
This promise aims to win over miners and investors who have been concerned about potential restrictions and the impact on their operations.
Eyeing BTC as a strategic reserve asset
There’s even talk about Trump considering Bitcoin as a strategic reserve asset for the U.S., similar to gold.
This idea suggests that he sees a long-term future for Bitcoin in the global financial system. It’s a bold move that positions Bitcoin not just as an investment but as a critical part of national financial strategy.
By positioning himself as a crypto ally, he’s likely to attract voters who feel the government has been too tough on digital assets.
This could seriously impact the upcoming election, drawing in tech-savvy and libertarian-leaning people.
Whether this will work out for him in the end remains to be seen, but it’s definitely stirring the political discussion in the crypto community.
Other worthy reads
Additional headlines from this week (@0xSalazar):
🚨 Some Major news from yesterday
- $Pendle $ETHFI Cega, Pendle, and Etherfi introduce Pendle Etherfi YT Tiger
- Rome raises $9M to use Solana as an auxiliary network to power ETH L2s
- $API3 API3 has launched their OEV Network on Arbitrum Orbit, enhancing real-world data… x.com/i/web/status/1…
— 🐍Salazar.eth 🦇🔊 (@0xSalazar)
10:41 AM • Jul 10, 2024
Goldman Sachs launching three Tokenization projects by EOY:
GOLDMAN SACHS TO LAUNCH THREE TOKENIZATION PROJECTS BY END OF YEAR, SAYS DIGITAL ASSETS CHIEF
As its peers in traditional finance push deeper into crypto—including BlackRock’s Bitcoin ETF and Fidelity’s trading platform—Goldman Sachs is preparing to make a move of its own. This… x.com/i/web/status/1…
— *Walter Bloomberg (@DeItaone)
2:10 PM • Jul 10, 2024
ARB showing very poor results this cycle:
Despite being one of the leading Ethereum L2s, Arbitrum's price performance has been weak, with an impressive 97% of its holders currently at a loss.
— IntoTheBlock (@intotheblock)
8:54 AM • Jul 9, 2024
MEMES
I should’ve sold everything the moment this picture dropped
— MinisterOfNFTs 🔮 (@MinisterOfNFTs)
5:29 PM • Jul 5, 2024
That's all for now, frens.
We'll meet again in a week! And remember, the market conditions are temporary, but our commitment to building a better Web3 is here to stay. Thanks for joining us, and we look forward to seeing you back next week. Cheers!
Yours, The 🔥 Team
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