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CNA Weekly Roundup 12.01.24
Bitcoin Spot ETF approved…finally
What. A. Week. We knew the news was coming this week and whilst we were extremely confident of the outcome, the way it came about was unorthodox.
On Wednesday, the SEC tweeted from their official Twitter account that they approved the spot Bitcoin ETFs, only deleting the tweet shortly after and claiming the account was compromised and no decision had been made. The FBI are now looking into the matter but something smells off here.
Anyway, 24 hours later we got the news we had all been waiting for over 10 years – actual approval.
This news is so significant for Bitcoin, some would say one of its biggest days in its 15-year history.
The approval of these ETFs by the SEC signifies that Bitcoin will now be accessible via the US stock markets, enhancing the availability of Bitcoin, especially for institutions seeking a regulated channel for investment and without custody and security concerns. This will likely bring billions (if not trillions) of dollars into the asset in the coming years, which is expected to drive the price north. In fact, trading volume surpassed US $1.6B within minutes of launching!
If you currently own Bitcoin, the implications for you are that this will likely lead to a price change (ideally upwards), nothing else.
Will this mean we see an ATH for Bitcoin this year? Not sure yet, but compounded with the halving in a few months time, it makes 2024 an exciting one!
Logan Paul to refund CryptoZoo Investors, one year after promising refunds
Logan Paul, the popular YouTuber and social media influencer, is set to refund investors of his CryptoZoo NFT game, a year after its failed release.
CryptoZoo, a play-to-earn game featuring exotic animal NFTs, was announced in August 2021 but was never released.
The refund program, funded by Paul’s personal commitment of USD $2.3 million (surely a drop in the ocean for him!), will buy back Base Eggs and Base Animals at their original purchase price for disappointed players.
Over USD $6.7 million worth of Base Eggs has been traded on OpenSea. The buy-back initiative, accessible at “EGGNFTBUYBACK.COM,” allows claims until Feb. 8, offering 0.1 ETH (approx. USD $224) per eligible NFT. Notably, hybrid animal NFTs and CryptoZoo (ZOO) token holders are excluded from compensation. Participants must also waive any claims against Paul and related personnel. Convenient.
Whilst he would have been hoping this would be a positive PR move, some people aren’t buying it, including Youtuber Coffezilla claiming it a ‘massive con’.
In a related move, Paul filed a cross-claim lawsuit against CryptoZoo developers Eduardo Ibanez and Jake Greenbaum, blaming them for derailing the project. Paul clarified that he never profited from the project and cited financial constraints and regulatory hurdles for CryptoZoo’s cancellation, almost a year after announcing its recovery plan.
Ripple plans to purchase $250m worth of equity
According to Reuters, Blockchain payment provider Ripple plans to buy back USD $285 million in employee and investor equity, valuing the company at US $11.3 billion. The move follows a calming of the U.S. regulatory lawsuit uncertainty from 2023.
Investors can sell only up to 6% of their holdings.
Ripple’s business is now 95% international, with no plans for a U.S. public listing amid the ongoing SEC case. A recent judge’s ruling exempted XRP coin transactions on open crypto exchanges from SEC oversight.
CEO Brad Garlinghouse noted that despite the SEC challenge, 95% of Ripple’s customers are non-U.S. financial institutions. With USD $1 billion in cash and over USD $25 billion in digital assets, Ripple emphasises financial strength, opting not to go public in the U.S. due to legal uncertainties. This decision aligns with Ripple’s focus on supporting current stakeholders.
Despite XRP’s recent 7.3% dip in the last 30 days, it has surged 63% year-to-date. Its lack of price action has made a lot of investors of XRP become increasingly impatient.
Author
Investified
Investified is an online education, research and community app designed to take everyday time-poor Australians from confused to confident with their crypto investing.
