Hodler’s Digest, April 7-13 – Cointelegraph Magazine

This week's main news

The SEC has issued a notice to DeFi protocol Uniswap

The US Securities and Exchange Commission (SEC) issued a notice on April 10 to decentralized exchange (DEX) Uniswap. Wells' announcement is a formal indication from the SEC that it plans to recommend enforcement action. The SEC is investigating Uniswap Labs, the main developer behind Uniswap, starting in 2021. In response to regulatory oversight, the platform has previously delisted several tokens. DEX native token Uniswap (UNI) fell 10% in the hours after the news, hitting a six-week low.

Technical charts suggest that a roaring altseason may be ahead: analysts

Crypto's popular “altseason” may be coming soon, according to market analysts. On April 11, anonymous trader and analyst Rect Capital noted that despite Bitcoin's price whiplash over the past few weeks, the altcoin's market value is “the only constant.” It has been continuously testing the $315 billion level as support for weeks, he said. Historically, altcoin price appreciation has lagged Bitcoin, and charts like altcoin market capitalization and Bitcoin dominance can give traders some indication of when altcoins may enter their own bull season.

BTC halving ‘fire sale fueling crypto assets' – Arthur Hayes

April's bitcoin halving, coupled with a “bag of tricks” from the US Federal Reserve and the Treasury Department, will “fuel a fire sale of crypto assets” and depress the crypto market for weeks, the co-founder of BitMEX said. Arthur Hayes. In an April 8 blog post, Hayes said he believed Bitcoin's rally would “boost prices in the medium term,” but warned that crypto prices “could be negative before and after the live.” Hayes believes that half will come at a time when “dollar liquidity is more cautious than usual” and outlines his theory on how the US Federal Reserve and Treasury policies will affect the markets.

Sam Bankman-Fried asked to remain in prison in Brooklyn to appeal

Former FTX CEO Sam “SBF” Bankman-Fried, who was recently sentenced to 25 years in federal prison, asked the judge to temporarily allow him to stay in the New York City area instead of California. According to the legal team, SBF wanted to remain in the Brooklyn jail “to facilitate access to appellate counsel” as part of an expected appeal against his conviction and sentence. Some legal experts also suggested that the former FTX CEO could spend years in prison based on good behavior.

FTX co-CEO Salameh's sentencing has been postponed until the end of May.

A sentencing hearing for former FTX co-CEO Ryan Salame is set for May 28, according to the indictment filed in the Southern District Court of New York. Salameh was one of four senior FTX executives to be indicted by the United States government along with Sam Bankman-Fried in connection with the cryptocurrency exchange's collapse. Salame pleaded guilty to federal charges related to the FTX offense. In addition, he is accused of campaign finance violations in his failed bid to represent New York's first district in the House of Representatives from his girlfriend, Michelle Bond. Salame is free on $1 million bond.

Winners and losers

At the end of the week, Bitcoin (BTC) at $67,683, Ether (ETH) at $3,273 and XRP at $0.54. According to CoinMarketCap, the total market cap is $2.46 trillion.

Among the top 100 cryptocurrencies, the top three altcoin gainers for the week were NEO (NEO) at 25.93%, TonCoin (TON) at 24.51% and Nervos Network (CKB) at 23.08%.

The top three altcoin losers of the week were Core (CORE) at -38.99%, Wormhole (W) at -38.71% and Uniswap (UNI) at -28.98%.

Be sure to read Cointelegraph's market analysis for more information on crypto prices.

The most memorable quotes

We expect continued inflation and unsustainable budget deficits to contribute to the desire to stockpile assets such as Bitcoin.

Zach Pandl, managing director of research at Grayscale

“The banks will return to a stable coin […] And they will lobby for stable coin legislation and get it done along the way.

Ryan Sean Adams, crypto investor

“There's a lot of maturation to happen. There is a long way to go as a lot of technology is developed on the chain,” he said.

Jan Van Eyck, CEO of Van Eyck

“Today's Wells announcement on Uniswap is disappointing, but not unexpected from the SEC.”

Marvin Amory, Chief Legal Officer at Uniswap

“Bitcoin now has a place at the table with gold, farmland and other alternative assets. Back it up five years ago, and there's no way Bitcoin would even be considered for the first time. It's a huge development.”

Lucas Kiely, Chief Investment Officer at Yild Apps

“The halving narrative is positive for crypto prices. When most market participants agree on a particular outcome, the opposite usually happens.

Arthur Hayes, co-founder of BitMEX

Forecast of the week

Bitcoin derivatives metrics suggest $70K is here to stay

Since March 25, Bitcoin has struggled to maintain its value above $71,000, a trend that some see as a sign of bearish momentum. However, insights from the BTC derivatives market indicate a more stable environment, as the previously widespread optimism has notably subsided.

Currently, Bitcoin has found it challenging to hold the ground above the $70,000 limit. However, some analysts believe that recent US inflation figures – showing unexpected resilience – and the US government's unsustainable fiscal approach create a favorable backdrop for investing in scarce assets.

Bitcoin critics suggest that the S&P 500 index's decline from its March 28 high could signal an impending recession. Given the strong correlation between Bitcoin and the stock market, which was over 80% last month, Bitcoin prices may fall early if stock market issues continue.

Data from the past few weeks shows that options have consistently outperformed call options, with a significant 35% average volume difference. This indicates a low demand for bearish protection, which is an interesting trend considering Bitcoin's multiple tests of the $64,500 support level in early April.

FUD of the week

Ether ETFs will ‘probably be rejected' in May – VanEck CEO

Van Eyck, the investment firm's CEO, said in May that it was unlikely the U.S. Securities and Exchange Commission would approve ether exchange-traded funds (ETFs). In an interview with CNBC, Jan van Eyck said the company's application for the Ethereum ETF will “probably be rejected.” VanEeq is the first to register for a spot ether ETF in the United States alongside Cathy Wood's ARK Invest, both of which are awaiting final decisions on May 23 and May 24.

Mango markets as fake diamond ring scam: Prosecutors

Prosecutors have accused Avraham “Avi” Eisenberg of defrauding Solana's decentralized exchange Mango Market of $110 million, comparing it to a fake diamond ring scam. At the opening of the hearing in Manhattan federal court, Assistant U.S. Attorney Tian Huang labeled Eisenberg's actions on Oct. 11, 2022 as fraud and market manipulation. In contrast, Eisenberg asserts that the marketing strategy is highly profitable and legitimate and involves genuine open market practices. In his defense, Eisenberg put $13 million of his own money at risk, which he could lose entirely if the business failed.

A former Ethereum consultant filed a $9.6 billion lawsuit against the US government

Former Ethereum consultant Steven Neraoff has filed a lawsuit against the US government, claiming false accusations and harassment by federal agents from 2019 to 2023. He is seeking $9.6 billion in damages stemming from the embezzlement case against him, which was dismissed in May 2023. Nerayoff accused some federal agents of knowingly engaging in stalking, intimidation and intimidation with baseless allegations. He will file a lawsuit under the Federal Tort Claims Act for damages to his name and business activities.

The best magazine sections of the week

1 out of 6 new base memecoins are scams, with a 91% vulnerability

Trying to beat the memecoin jackpot on Base? A honey pot or carpet attraction is more likely.

Filecoin staking platform crashed, Matrixport says ‘short ETH': Asia Express

Staking platform Filecoin disappears after Chinese police force, Matrixport bets with ETH, HashKey gets retail license in Hong Kong and more.

Syntex founder Cain Warwick: It's DeFi that's wrong, not the market.

Syntex founder Cain Warwick has a bold plan to make using DeFi exchanges as easy as using them.

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Editorial staff

Cointelegraph magazine writers and reporters contributed to this article.