Top News
▌ Tether Holds 25% Stake in Bitdeer, Second Largest Shareholder
According to a document disclosed by the U.S. Securities and Exchange Commission, UST issuer Tether currently holds a 25% stake in the Bitcoin mining company Bitdeer. This makes the company behind Tether (USDT) the second largest shareholder of BTC mining shares, second only to Victory Courage Ltd., reportedly registered under the name of Wu Jihan.
▌ Telegram CEO: Introducing Telegram Stars to Support Mini Programs Accepting Digital Service Payments
Telegram CEO Du Rove announced on the Telegram channel that Telegram Stars will be launched, a way to pay for digital services through mini programs. Mini programs can use it to accept payments for digital services and make in-app purchases on Android and iOS, where mini programs like Notcoin can be used without installation. Developers can use TON to extract Stars through Fragment and can further promote their applications on Telegram using Stars under favorable conditions. When users purchase Stars from Apple and Google, a 30% fee will be deducted, but Telegram will subsidize ads purchased using Telegram Stars.
Market
As of the time of writing, according to Coingecko data:
BTC recent trading price is $70,772.40, with a 0.5% change in the last 24 hours;
ETH recent trading price is $3,811.99, with a 1.5% change in the last 24 hours;
BNB recent trading price is $709.72, with a 0.4% change in the last 24 hours;
SOL recent trading price is $170.55, with a 1.9% change in the last 24 hours;
DOGE recent trading price is $0.1602, with a 2.0% change in the last 24 hours;
XPR recent trading price is $0.5217, with a 0.9% change in the last 24 hours.
Policy
▌ Hong Kong Police Intensify Anti-Illegal Gambling Promotion, Focus on Virtual Currency Betting
With the start of the European national cup approaching, Hong Kong police are stepping up efforts to crack down on illegal online gambling, noting an increasing number of websites accepting virtual currency bets. The police point out that the anonymity and convenience of virtual currencies increase the risks of illegal gambling, but both cryptocurrencies and stored value payment tools are under surveillance. The police will combat related crimes through money laundering charges and cooperation with mainland China and Macau. To this end, the police will conduct promotions in various districts, including distributing flyers in bars.
Police data shows that last year, there were over 790 operations against illegal gambling, resulting in the arrest of approximately 6,100 individuals. In the first three months of this year, the police investigated 99 related cases, a decrease of nearly 30% compared to the same period last year. The police also note that the average age of first-time gamblers has dropped to around 18 years old, and the widespread use of the internet has made it easier for young people to access illegal gambling.
▌ New York Attorney General Files $1 Billion Cryptocurrency Fraud Lawsuit Against NovaTech
New York Attorney General Letitia James has filed a lawsuit against the cryptocurrency company NovaTech and its founders Cynthia and Eddy Petion, accusing them of involvement in a $1 billion fraud. The lawsuit alleges that over 11,000 New York residents lost tens of millions of dollars by investing in NovaTech. NovaTech is accused of being a Ponzi scheme and falsely reporting its licenses and registration status. The company collapsed in May 2023.
The Petion couple’s previous venture, AWS Mining, is also accused of being a Ponzi scheme. James seeks to recover illicit proceeds and prohibit them from conducting business in New York. Currently, the NovaTech website is still operational, claiming that company funds were lost in a data breach and are being recovered.
Blockchain Applications
▌ zkSync: Initiates v24 Upgrade, Funds Will Be Transferred to New Bridge Contract
According to an announcement by the zkSync developer account on X platform, the v24 upgrade has begun, with a new L1SharedBridge being a new L1 contract. Therefore, funds on zkSync Era will be migrated from the old contract to the new contract, ensuring the security of user funds.
▌ LayerZero CEO: Witch Hunt Not Yet Complete
LayerZero CEO Bryan Pellegrino posted on X platform, addressing those inquiring about the status of the witch hunt affairs, accompanied by an image saying “The work is not yet done.”
▌ Alchemy Launches Rollup Tool to Help Developers Create Custom Layer2
Web3 infrastructure company Alchemy has launched a new Rollup tool to help developers create their own blockchain. This tool allows developers to easily build and deploy custom Layer 2 chains, improving development efficiency and simplifying the application of blockchain technology. Alchemy states that the release of this tool will drive the widespread adoption of blockchain technology, especially in decentralized finance (DeFi) and other Web3 fields.
Cryptocurrency
▌ Kraken Plans to Raise Over $1 Billion in Funding Before IPO
According to Bloomberg, cryptocurrency exchange Kraken is in negotiations for pre-IPO financing. Kraken is seeking to raise over $1 billion in funding, expected to be completed by the end of this year. Rumors about Kraken going public have been circulating for the past few years. The company has been busy dealing with charges brought by the U.S. Securities and Exchange Commission (SEC) last year, accusing it of operating an unregistered platform and mishandling customer funds. A spokesperson declined to comment on the financing but stated, “We have been exploring strategic paths to achieve Kraken’s mission: accelerating the global adoption of cryptocurrencies. We remain focused on investing in this goal.”
▌ Analysis: Power Contracts and Lower Valuations Could Catalyze Crypto Mining Stock Consolidation
On Thursday, Bitcoin mining stocks outperformed other cryptocurrency-related stocks, with several industry acquisition offers sparking market attention on who might be the next target. Recently, one of the largest miners, Riot Platforms (RIOT), initiated a hostile takeover of its counterpart Bitfarms (BITF), while artificial intelligence company CoreWeave proposed acquiring another large mining company, CoreScientific (CORZ).
Although both Bitfarms and CoreScientific rejected the acquisition offers, these attempts remind investors that the industry may be ready for consolidation. B. Riley analyst Lucas Pipes stated that power contracts and lower valuations could become catalysts for initiating the consolidation phase of mining stocks. In a report, he wrote, “We believe the optimistic outlook for the power market may catalyze an increase in M&A activity this year, especially when significant disparities in valuations still exist.”
▌ MicroStrategy Faces Highest Institutional Net Short Position, Strongest Bearish Sentiment
MicroStrategy (MSTR) faces a net short position of approximately $6.941 billion, accounting for 23.14% of its market value, indicating strong market bearish sentiment or widespread hedging demand. This high ratio could lead to increased market volatility and may even trigger a short squeeze.
In comparison, Coinbase (COIN) with a market value of around $62 billion has a net short position of $1.129 billion, accounting for 1.77% of its market value, showing relatively moderate bearish sentiment. Meanwhile, Marathon Digital Holdings (MARA) with a market value of around $6 billion has a net short position of $101 million, accounting for 1.68% of its market value.
These net short positions may be part of strategic hedging, such as Kerrisdale Capital simultaneously shorting MSTR and longing Bitcoin.
Fintel’s data highlights the highest net short position faced by MicroStrategy among the three companies.
▌ FTX Creditors Oppose Restructuring Plan, Citing Cash Payments Will Lead to Tax Issues
A group of FTX creditors led by Sunil Kavuri has filed objections to the restructuring plan proposed by the FTX bankruptcy trustees. Creditors point out that the plan does not pass the best interests test and includes clauses that are not in line with the interests of the estate, disregarding property rights issues.
Creditors argue that cash payments will require customers to pay taxes on the received cash, adding to their burden. They suggest adopting physical payments to avoid tax issues.
Additionally, creditors request an update from FTX on the settlement disclosure statement regarding the Internal Revenue Service (IRS). Under the settlement plan, the IRS will receive $200 million in priority claims within 60 days of approval, with an additional $685 million in subordinated priority claims to be paid after full customer repayment.
FTX’s restructuring plan includes compensating creditors with claims below $50,000 at 118%, while other non-governmental creditors will receive full claims and up to 9% interest compensation.
▌ U.S. Prosecutes Three Individuals in Evolved Apes NFT Scam Case, Involving $3 Million
The U.S. Attorney’s Office for the Southern District of New York has filed charges against Mohamed-Amin Atcha, Mohamed Rilaz Waleedh, and Daood Hassan for their involvement in the 2021 Evolved Apes NFT scam. The project promised to develop a video game, but after fundraising, the anonymous developer Evil Ape disappeared, transferring 798 Ether (approximately $3 million). This case is considered part of a “rug pull” scam, where developers raise funds by selling NFTs or tokens and then abruptly shut down the project and disappear. According to statistics, similar scams have resulted in over $14.5 billion in losses since 2011.
▌ Total Value Locked (TVL) in All DeFi Protocols Currently Stands at $109.9 Billion
According to DefiLlama data, the total value locked (TVL) in all DeFi protocols is currently at $109.9 billion, with Lido having the highest TVL at $36.6 billion, up by 1.27% in the last 24 hours; EigenLayer ranking second at $20.1 billion, up by 1.88% in the last 24 hours; and AAVE ranking third at $13.2 billion, up by 0.71% in the last 24 hours.
Key Economic Developments
▌ Federal Reserve to Release Annual Bank Stress Test Results on June 27
The Federal Reserve is set to release its annual bank stress test results on June 26 at 4:30 p.m. ET, covering 32 banks with assets of $100 billion or more. The Federal Reserve stated in a Thursday announcement that the assumed scenario includes a severe global economic downturn and pressures on commercial and residential real estate markets. The F
