Good morning, Ambulls! Or is it Ambears today? 🐂 🐻

The market may be unpredictable, but your resilience, ability to adapt, and overall strategy are your greatest assets 💪 

Speaking of adapting, this week has witnessed quite a sharp correction in the crypto markets. (Devs, can you please do something?) 🙄 

To navigate these choppy waters, we’re hosting a vote on rebalancing the W3OF portfolio next week. Keep the ideas coming in on the #web3-on-fire Discord 👈️ 

Today, we’re also discussing:

• 🔥 Why the market is taking a dive? A closer look

• ✉️ Circle (USDC) becomes the first licensed coin provider under new EU regulations

• 🎙️ The latest W3OF Podcast: challenges and innovations in blockhain infrastructure and GPU lending

• 🥷 Behind Bars & Watching Charts: Jailed Mango hacker sues Waves founder for $14M

• 🦊 SEC sues Metamask for staking offers

Let’s get down to it!

Why is the market taking a dive? A closer look

If you’ve been watching the charts, you might have noticed that the market just took a nosedive, shedding a good ~20% chunk.

Let’s break down the possible reasons behind this market meltdown 👇️ 

➡️ FTX plans $16 billion cash repayment in coming months

First up, FTX is gearing up to shell out a massive $16 billion to their former defrauded customers 💵 

Normally, you’d think getting some money back would be a good thing, right? But here’s the kicker: to pay back that amount, FTX is gonna need to liquidate a ton of assets, and we’re talking a lot of crypto here.

When they start dumping all that onto the market, it’s like opening the floodgates: prices take a hit, and before you know it, everyone's feeling the pinch.

• The repayments are part of FTX’s ongoing efforts to make their customers whole again after the whole FTX drama last year.

• This means we can expect a steady stream of sell-offs as they convert crypto to cash. While this is great news for those getting their money back, it's causing some serious concern for the traders.

➡️ The eternal MtGox FUD

Ah, MtGox. If you’ve been in crypto for a hot minute, you’ve probably heard this name thrown around during every cycle like an old, worn-out rag 🙄 

• This time, MtGox is back in the spotlight because they’re moving a hefty 47,229 BTC.

• With a payout worth around $9 billion looming, the crypto community’s feeling the jitters.

The FUD around these coins hitting the market has everyone on edge. And it repeats year after year - like it’s a haunted house and MtGox is a poltergeist who refuses to leave 👻 

And this latest move? It’s no different. Investors are bracing themselves for the supposed wave of selling pressure, adding to the overall market dump.

➡️ German government dumps wads of BTC

Lastly, let’s jet over to Germany, where the government has been offloading its Bitcoin stash.

The German government has been quietly selling off chunks of BTC, and they’re not exactly being subtle about it 🤷 

• Just recently, they moved a significant amount of Bitcoin to exchanges, causing even more downward pressure on prices.

• The government’s sales are part of their strategy to liquidate seized assets. However, this has stirred up quite a debate.

A German MP even called out the government, arguing that their selling spree is reckless and contributing to market instability 👇️ 

So, for now, fear is king on the market.

It’s a rough ride, but hang tight. Crypto’s always been a rollercoaster, and this is just another twist in the journey.

Circle (USDC) becomes the first licensed coin provider under new EU regulations

Circle, the issuer of USDC, just scored a major win by becoming the first licensed stablecoin provider under the EU's new regulations.

Let's break down what this means for the crypto world and why it's a big deal 👇️ 

A landmark achievement?

• Circle is now the first to receive a license under the European Union's new Markets in Crypto-Assets (MiCA) framework 🤓 

• This regulatory framework aims to “provide clear guidelines and ensure the stability and security of the crypto market in Europe” 🙄 

• USDC, a leading stablecoin, now has the EU's stamp of approval, which could be a big thumbs up for both the company and the industry 🤔 

Some sources praised this as strengthening Circle's position in the market and setting a precedent for other stablecoin issuers who want to operate within the EU.

Now, let’s talk about the elephant in the room: regulations.

For a long time, the crypto market has been like the Wild West, with rules and regulations varying from one region, project, city, or authority to another. MiCA aims to change that by providing a unified set of rules for all EU member states.

This means a more predictable environment for companies looking to continue working in the crypto space.

Of course, for maxxis the regulations feel like that uninvited guest who shows up at the party and insists on taking control of the music 🥱 

But here’s the thing - whether we like it or not, they’re coming. So some decide to rather make peace with it and find a way to dance to their tune, and it’s natural.

W3OF Podcast: Challenges and innovations in blockchain infrastructure and GPU lending

Episode 22 of the Web3 on Fire Podcast 🎙 is here and host Rob Edwards is joined by Prashant Maurya from Spheron - a pioneer in the GPU lending space and decentralized infrastructure innovation.

Follow Prashant’s journey from a call center to leading a tech revolution in crypto 🏃🏽:

Behind Bars & Watching Charts: Jailed Mango hacker sues Waves founder for $14M

If you thought the world of crypto couldn’t get any more dramatic 🫠 

This latest twist is straight out of a movie plot. Avi Eisenberg, the infamous Mango Markets hacker, is making headlines from behind bars by suing Sasha Ivanov, the founder of Waves, for $14 million 💰️ 

The backstory: Mango Markets exploit

• Avi Eisenberg made a name for himself in the crypto world last year, but not in a good way.

• He was behind one of the most notorious hacks, targeting Mango Markets and causing a massive drama 🥷 

• This hack was so high-profile that it landed Eisenberg in jail, where he's currently serving time.

• But it seems like Avi isn't the type to just sit quietly – he’s decided to take legal action while he's still watching the crypto market from his cell.

The lawsuit: Eisenberg vs. Ivanov

Eisenberg has filed a lawsuit against Sasha Ivanov, accusing the Waves founder of a series of fraudulent activities 🤨 

The claim? Just a mere $14 million. Eisenberg alleges that Ivanov’s actions led to significant financial losses, and he’s not holding back in his pursuit of justice - even from behind bars.

The lawsuit details are juicy. Eisenberg claims that Ivanov was involved in deceptive practices that manipulated the market, causing him and others to suffer substantial losses.

It’s a classic case of he-said-she-said, but with millions of dollars and high-profile crypto figures involved, it’s definitely got everyone’s attention 💰️ 

SEC sues Metamask for staking offers

The SEC has just taken aim at Metamask, one of the most popular crypto wallets, over its staking services (sadly, having horrible UI/UX isn’t officially a crime yet) 😢 

Let’s dive into the details and see what’s going down.

Metamask in the crosshairs

• Metamask is now facing serious scrutiny from the SEC.

• The regulatory body is suing Metamask, claiming that its staking offers are in violation of federal securities laws.

• The SEC argues that Metamask's staking services should be registered as securities and comply with the relevant regulations.

The allegations

The SEC’s complaint centers around the idea that by offering staking services, Metamask is essentially offering unregistered securities 🤨 

Staking, a process where users lock up their crypto assets to support blockchain operations and earn rewards, has become a popular feature in most wallets and platforms 🪙 

However, the SEC contends these services should be subject to regulatory oversight as traditional financial products.

Metamask, on the other hand, maintains that its staking services are a part of the decentralized ecosystem and do not fall under the SEC’s jurisdiction.

This clash highlights the ongoing tension between crypto services and regulatory bodies trying to apply traditional frameworks to the digital frontier.

What this means for users

For Metamask users, this lawsuit could have significant implications.

If the SEC prevails, Metamask might be forced to halt its staking services or comply with stringent regulations, potentially changing the way users interact with the platform 🔒️ 

The bigger picture

This lawsuit is part of a larger pattern of increased regulatory scrutiny in the crypto world.

As the SEC and other regulatory bodies ramp up their efforts, the crypto industry must adapt and find ways to navigate the maze 🌍️ 

Ultimately, this underscores a growing pain in the evolution of digital assets. The road ahead will be rocky, but one thing’s for sure: the crypto community thrives on resilience and innovation

Other worthy reads

Some extra headlines from this week:

Bittensor hack has gathered a lot of attention from the community recently:

Wierd stats from Polkadot, despite spending incredible amounts the chain remains invisible:

MEMES

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

Brought to you by Ambire: The Only Web3 Wallet That You’ll Need