Hodler’s Digest, May 5-11 – Cointelegraph Magazine

This week's main news

SEC files final response in Ripple XRP case

The US Securities and Exchange Commission has filed briefs challenging the penalties in legal battles challenging Ripple's position. Following Judge Torres' ruling that XRP is not safe for programmatic sales, the SEC is seeking significant fines against Ripple. Ripple has argued that any fines should not exceed $10 million, citing the absence of fraudulent intent. On the other hand, the agency Ripple misinterpreted the court order and underestimated the liability. Both parties are awaiting a final decision. Ripple's chief legal officer, Stewart Alderotti, criticized the SEC, arguing that it has tarnished its reputation.

Grayscale Releases Ether Futures ETF App

Grayscale withdrew its 19b-4 filing for Ether Futures exchange-traded fund three weeks before the U.S. Securities and Exchange Commission was scheduled to rule on it. On May 7, the cryptocurrency asset manager filed a withdrawal notice for the Grayscale Ethereum Futures Trust with the SEC, which was scheduled to make a decision on May 30, traders quickly shorted Ether after the announcement. Analysts believe the futures ETF application was a “Trojan horse” for the agency to approve the Ether ETF proposal. As May 23 approaches, analysts are increasingly skeptical about the SEC's approval of the spot ether ETF.

Satoshi's era of dormant Bitcoin addresses will be resurrected after 10 years

A dormant Bitcoin address containing 687 BTC ($43.9 million) has been reawakened 10 years after Satoshi Nakamoto was active. On May 6, he transferred his holdings to two separate wallets, sparking curiosity among the crypto community. While speculation often links these wallets to Satoshi himself, experts believe they were probably owned by early miners or buyers. Specifically, 1.75 million Bitcoin wallets have been inactive for more than a decade, holding roughly $121 billion worth of BTC at current prices.

FTX proposes ‘billions in compensation', but not everyone is happy

FTX has proposed a new plan to compensate creditors affected by the 2022 collapse, offering to pay all claims and additional compensation for the time value of the investment. The plan, which requires approval from the U.S. Bankruptcy Court in Delaware, offers a 118% recovery for claims under $50,000, covering 98% of creditors. However, the compensation is based on the value of the assets at the time of the FTX bankruptcy in November 2022, although since then the value of Bitcoin has increased significantly by 280%, not the current value. The proposal has upset some investors, who argue that they should be paid at the current market price.

Nigerian authorities have proposed a secret crypto settlement, Binance CEO says.

Binance has reportedly been pressured by Nigerian authorities into complying with the $3-million deal. Nigerian authorities have requested crypto payments to resolve issues related to Binance's compliance with Nigeria's crypto regulations. The exchange is said to have rejected the request for payment through its local legal representation and is continuing the rectification negotiations. Relations between the exchange and local authorities have worsened recently, with the arrest of Binance executives.

Winners and losers

At the end of the week, Bitcoin (BTC) at $60,848, Ether (ETH) at $2,932 and XRP (XRP) at $0.49. According to CoinMarketCap, the total market cap is $2.26 trillion.

Among the largest 100 cryptocurrencies, the top three altcoin gainers for the week were Akash Network (AKT) at 38.34%, Render (RNDR) at 36.04% and Toncoin (TON) at 23.60%.

The top three altcoin losers of the week are Core (CORE) at -19.24%, Wormhole (W) at -17.98% and Lido DAO (LDO) at -15.87%.

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

The most memorable quotes

“Crypto is a small part of our overall markets. But it's a disproportionate piece of the fraud and the fraud and the problems in our markets.

US Securities and Exchange Commission Chairman Gary Gensler

“Digital assets have emerged as a big issue in the upcoming election.”

Christine Smith, CEO of the Blockchain Association

“Twenty years ago, you would have asked me what the central bank's business model was. [was] I would have said no whether it would disappear or not. I'm not sure now.”

Joachim Nagel, president of the Bundesbank and member of the European Central Bank

“It's more of the same from the SEC – not faithfully enforcing the law and trying to pull the wool over the judge's eyes.”

By Ripple Chief Legal Officer Stuart Alderotti

“We are pleased to be able to file a Chapter 11 plan that contemplates the recovery of 100% of the bankruptcy claim amount and interest to non-state creditors.”

John Jay Ray III, Chairman and Chief Executive Officer of FTX

” of [digital] The property industry needs to coordinate and adapt to the rules, not the other way around.

John Reed Stark, former US SEC official

Forecast of the week

Bitcoin Price To ‘Hold' $265K Level As Boring Consolidation Ends – Analysts

According to Ki Yang-ju, founder and CEO of cryptoquant and market analytics firm CryptoQuant, Bitcoin's price could continue to rise and triple its market capitalization, pushing the price above $260,000.

“The fundamentals of the Bitcoin network can support three times the current level of market value compared to the previous cyclical peak,” Yang Ju explained on May 8 at X.

Young Ju was referring to a chart that compares the price of BTC and its corresponding hash rate to the market capitalization ratio, showing the crypto's continued volatility and the resilience of the Bitcoin network.

The chart shows that Bitcoin's hash rate-to-market cap ratio has increased significantly by 2024, indicating a possible increase in market activity and investor interest.

FUD of the week

Trader lost 7-figure sum due to 0L Network hard fork

An anonymous trader known as NN lost more than $1 million in rentprepto due to an unauthorized fork of the 0L network. According to a report posted on X on May 8, the trader said that the team behind the network has decided to implement a hard fork to resolve the “rogue core” member. This move wiped out 4% of the total supply and wiped out many wallets, including traders like NN, who bought 147 million Libra tokens in February 2023, valued at $1.47 million at the time.

Former Digitex Futures Exchange CEO Pleads Guilty to Violating Bank Secrecy Act

Digitex Futures Exchange founder and former CEO Adam Todd has pleaded guilty in federal court to failing to establish an anti-money laundering (AML) program at the firm. The United States Attorney's Office for the Southern District of Florida On May 7, Todd admitted that he “willfully” believed the transactions to violate the Bank Secrecy Act. Todd, who was charged in February, operated an unregistered futures platform for US clients between 2018 and 2022 without implementing AML and Know Your Customer (KYC) programs. He faces up to five years in prison and a $250,000 fine.

Ethereum L2 Eclipse CEO steps down amid sexual misconduct claims

Neil Somani, founder and CEO of Ethereum layer-2 blockchain Eclipse, has announced that he is “temporarily stepping down” from the company's public-facing role in the wake of allegations of sexual misconduct. In a May 9 post on X, he denied the allegations, insisting they were false, saying, “I have never sexually assaulted any woman.” Somani explained that he will manage the responsibilities of the leadership of Eclipse, he will work to clear his name.

The best magazine sections of the week

What do crypto market makers do? Liquidity or fraud

Market makers face difficult ethical choices in a world where they are often accused of rigging the markets.

‘Sic AI's on Each Other' to Solve the Artificial Intelligence Threat: Author David Brin

David Brin, author of Uplift and Postman, has devised a clever plan to protect IIS from fraud. But can we lift it?

Buy altcoins now, but sell before mid-2025: Charles Edwards, X Flame Hall

Charles Edwards' altcoin analysis says the beginning of this cycle “played out like textbooks,” but traders need an altcoin exit strategy.

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Editorial staff

Cointelegraph magazine writers and reporters contributed to this article.