Headline: Musk’s Starship Sets Sight on Fourth Test Flight Tomorrow Night
Elon Musk’s space exploration company, SpaceX, has obtained regulatory approval to conduct the fourth test flight of its Starship on June 6. The launch window will open tomorrow night (Thursday) at 20:00 Beijing time and will last for 120 minutes. In this test flight, SpaceX’s main focus will be on demonstrating the capability of the Starship and the Super Heavy rocket to return and be reused, rather than achieving orbit.
US Securities Regulator Investigates GameStop Trading by “Roaring Kitty”
The securities regulator in Massachusetts, United States, is currently investigating the trading activities of GameStop. A spokesperson for the regulator stated that they are specifically looking into the activities of Keith Gill, an investor in GameStop. On June 3, GameStop’s stock surged by 110% in pre-market trading. A Reddit post claimed to show that Keith Gill, also known as “Roaring Kitty,” had built a position worth $181 million in GameStop.
Market Update:
According to Coingecko data at the time of writing:
BTC recent trading price: $70,600.1, with a daily change of +2.6%
ETH recent trading price: $3,814.82, with a daily change of +1.3%
BNB recent trading price: $686.51, with a daily change of +9.6%
SOL recent trading price: $171.81, with a daily change of +4.2%
DOGE recent trading price: $0.1616, with a daily change of +2.1%
XPR recent trading price: $0.526, with a daily change of +1.1%
Policy:
The upcoming House Appropriations Budget may prevent the Securities and Exchange Commission (SEC) from implementing its controversial Staff Accounting Bulletin 121 (SAB 121). FOX Business reporter Eleanor Terrett, who reported on this on June 4, stated that the bill would prohibit the SEC from using funds to implement the rule. Appropriations allow agencies to incur obligations and pay them from the U.S. Treasury for specified purposes.
One policy rider in the budget states that the SEC shall not implement or enforce Accounting Bulletin No. 121, which includes harmful digital asset requirements. It remains unclear if the budget will pass in its current form. The Republican-controlled House of Representatives is likely to pass the appropriations bill in a hearing on June 5. However, negotiations between the Democratic and Independent majority in the Senate and the House’s bill will be needed.
Terrett noted that the Democrats supported an earlier resolution, HJ Res. 109, that had the same objective. This suggests that the Senate may keep the policy rider in the budget. The bill aims to provide $2 billion in funding for the SEC by 2025, instead of the $2.59 billion requested by SEC Chair Gary Gensler.
Ukrainian Police Raid Cryptocurrency Scam Call Center, Arrest 14
The Ukrainian National Police conducted a raid on a network of scam call centers that promised fraudulent cryptocurrency investments. The network targeted victims in Ukraine, Moldova, Kazakhstan, and the European Union. During the operation, the police detained 14 suspects and seized 12 luxury cars, 136 computer devices, 951 SIM cards, and $64,500 in funds. The scammers posed as stock exchange employees and used psychological techniques to persuade victims to invest in cryptocurrencies, transferring the funds to digital wallets and bank accounts controlled by the criminal organization. One of the organizers of the network is linked to a notorious thief called “Khmyelo.”
New Korean Law Requires Interest Payments on Cryptocurrency Deposits
A new law in South Korea will require banks to pay interest on deposits from cryptocurrency exchanges, which could severely impact KBank’s profits. KBank currently has $3.6 billion in deposits from the major cryptocurrency exchange Upbit, accounting for over 20% of its customer balance. Under the new law, if the interest rate is set at 1%, KBank would need to pay approximately 50 billion Korean won ($36 million) in interest, which is equivalent to its current profit. The law will come into effect in July 2024, posing a disadvantageous timing for KBank, which is preparing for an IPO. Upbit is the largest cryptocurrency exchange in South Korea, and other Korean banks do not have significant exposure to cryptocurrency deposits.
Tether CEO Criticizes “Problematic” Requirements in EU MiCA Regulation
Paolo Ardoino, the CEO of Tether, expressed concerns about the “problematic” requirements in the European Union’s Markets in Crypto-Assets (MiCA) regulation. He stated, “These requirements not only make the work of stablecoin issuers extremely complex but also make EU-approved stablecoins extremely fragile and more operationally risky. As with any regulatory framework of this scale, further discussions on technical implementation standards are crucial to making certain provisions clear for the market.”
According to MiCA regulations, to become a regulated stablecoin provider in the EU, issuers must hold an Electronic Money Institution (EMI) license. Ardoino mentioned that Tether has had extensive engagement with its European exchange partners regarding the requirements, including those related to the continuous listing of USDt and other Tether tokens, as well as interpretations of key regulatory provisions.
US SEC Shuts Down Office That Gained Attention from DEBT Box Crypto Lawsuit
The US Securities and Exchange Commission (SEC) announced the closure of its Salt Lake City office, which gained attention for its unsuccessful lawsuit against DEBT Box, a crypto company. The SEC had previously withdrawn its request for dismissal, and the case against DEBT Box was dismissed by a judge. The case resulted in resignations and criticism of the agency, ultimately leading to the closure of the office. The SEC will transfer enforcement jurisdiction to its Denver office.
Blockchain Application:
Sotheby’s to Auction NFT of “Golden Ape” from Bored Ape Yacht Club (BAYC)
Sotheby’s is preparing to auction an NFT of a golden ape created by Yuga Labs, along with other rare digital artworks. This auction will test the endurance of ape-themed assets in the art world. The auction includes an NFT from the Bored Ape Yacht Club (BAYC) and other rare digital artworks.
Cryptocurrency:
FTX Plans to Pay Over $200 Million in Taxes to the IRS, Not $24 Billion
According to legal documents filed on June 3, FTX plans to pay $200 million in priority tax payments and $685 million in subordinated tax claims to the Internal Revenue Service (IRS) in the United States. Priority tax claims, such as taxes owed, are payments that must be made before other debts, while subordinated claims are paid only after fulfilling priority obligations. FTX argued in bankruptcy court that the amount owed is significantly lower than the $24 billion claimed by the IRS. The IRS initially claimed that FTX owed $44 billion in taxes but later reduced the amount to $24 billion. The FTX debtor responsible for managing the company’s bankruptcy believes that the IRS incorrectly included funds misappropriated by Sam Bankman-Fried and other tax liabilities in their calculation. The IRS disagrees with the debtor’s argument and plans to seek substantial tax liability if a settlement cannot be reached. The objection deadline for this case is June 17.Article:
Date of the hearing is set for June 25, 2024.
Ripple CEO predicts the emergence of a spot XRP ETF in 2025.
Brad Garlinghouse, the CEO of Ripple, has expressed his expectation that a spot XRP ETF will emerge in 2025.
Bitwise CIO sees opportunity in Washington’s shifting crypto politics.
Matt Hougan, the Chief Investment Officer of Bitwise, believes that the political shift in Washington, D.C. regarding crypto has been underestimated. He points out that the crypto industry has accumulated significant political power in Washington, and if people were aware of this change, the market would have already reached new highs. Hougan believes that once Wall Street embraces crypto assets, the market will experience a major leap forward.
Bain Capital Crypto is raising its second crypto fund.
Bain Capital Crypto is raising its second cryptocurrency fund, with relevant documents already submitted to the U.S. Securities and Exchange Commission. Bain Capital launched its first $560 million crypto fund in March 2022, and despite experiencing a market downturn, the fund has remained active in investing throughout 2022 and 2023, including participating in Sam Altman’s Worldcoin $115 million funding. The first fund was led by Stefan Cohen and Alex Evans, focusing on early-stage investments and liquid tokens in the decentralized finance (DeFi) and Web3 sectors. Currently, the fund has invested nearly $100 million in multiple projects. Bain Capital Crypto has not commented on the new fund yet, citing compliance issues.
Global Web3 financing in May amounted to $917 million, with Farcaster valued at $1 billion.
According to VC Beat statistics from Caixin, there were a total of 100 financing events in the global Web3 sector in May, which is roughly the same as April. The total financing amount reached $917 million, a decrease of 5.46% compared to the previous month.
In terms of specific sectors, blockchain infrastructure had the highest number of projects and a total funding amount of $498 million in May. However, the total funding amount for this sector decreased by nearly $100 million compared to April. DeFi and CeFi sectors maintained a certain degree of growth in total funding.
In terms of institutional involvement, Animoca Brands, OKX Ventures, and Coinbase Ventures were the top three investment institutions in terms of the number of investments in May. Among them, Animoca Brands made 9 investments, with 4 of them in blockchain infrastructure; OKX Ventures made 5 investments, with 3 in blockchain infrastructure; Coinbase Ventures made 4 investments, all in blockchain infrastructure.
Runestones accounted for 77.1% of all Bitcoin transactions in the past 24 hours.
Leonidas, the developer of Ordinals and founder of Runestone, stated in a social media post that Runestones accounted for 77.1% of all Bitcoin transactions in the past 24 hours.
Report: BTC volatility may increase, long-term holders will face selling pressure.
According to Glassnode’s market report on Tuesday, selling pressure from long-term Bitcoin holders (holding Bitcoin for 3 months to 3 years) is increasing. The report adds: “We can expect that if prices rise, the motivation for this group of people to sell more supply will increase, further increasing their unrealized profits.”
The Glassnode report predicts that after a relatively stable Bitcoin market in the past week, volatility will intensify. The report adds: “The seller risk ratio for long-term and short-term holders has been readjusted, indicating that a new balance point has been found. This suggests that the market is ready to act, and expectations for recent volatility should increase.”
Fidelity: Bitcoin has entered a more mature adoption phase.
Jurrien Timmer, Fidelity’s Global Macro Director, stated that Bitcoin has entered the late stage of the adoption cycle, with reduced volatility. He points out that Bitcoin has become an important component of investment portfolios and recommends allocating 2% of funds to Bitcoin. He predicts that Bitcoin will gradually mature and reduce volatility, which will attract more institutional investors.
Report: Ethereum spot ETF expected to attract $4 billion in capital inflows.
Crypto analytics company K33 Research stated in a report that an Ethereum spot ETF, which allows direct holding of Ether (ETH), is about to be listed in the United States and may attract $4 billion in capital inflows in the first five months. K33 estimates that the inflow of ETH ETF in the first five months will range from $3 billion to $4.8 billion. This estimate is slightly higher than JPMorgan’s prediction of $3 billion for this year.
The report states that based on the current price, this is equivalent to the ETF accumulating 800,000 to 1.26 million ETH, accounting for 0.7% to 1.05% of the total token supply, which may lead to a supply “shock” for ETH assets. K33 analysts predict that with the launch of the Ethereum ETF, after experiencing a downward trend in the ETH/BTC pair for nearly two and a half years, the price of ETH is expected to start outperforming BTC. Vetle Lunde, a senior analyst at K33 Research, said: “This massive absorption of supply should push up the price of ETH.”
Important economic dynamics:
The probability of the Fed maintaining interest rates in June is 99.8%.
According to CME’s “FedWatch,” the probability of the Fed maintaining interest rates in June is 99.8%, while the probability of a 25 basis point rate hike is 0.2%. The probability of the Fed maintaining interest rates until August is 82.3%, the probability of a cumulative 25 basis point rate cut is 17.5%, and the probability of a 25 basis point rate hike is 0.1%.
U.S. stock market’s three major indexes close slightly higher.
The three major U.S. stock indexes closed slightly higher, with the Dow rising 0.35%, the Nasdaq rising 0.17%, and the S&P 500 rising 0.15%. Nvidia rose over 1% and continued to reach new historical highs.
Zimbabwe’s new currency ZiG faces challenges and opportunities.
Zimbabwe Reserve Bank’s (ZRB) new currency, Zimbabwe Gold (ZiG), has performed well in the foreign exchange market but faces difficulties domestically. ZRB has taken new measures to combat black market trading and has called on the public to report illegal traders and businesses that refuse to accept ZiG through its X account. Since the physical launch of ZiG, its exchange rate against the U.S. dollar has risen by 1.9%.
On May 15, the police arrested 224 illegal foreign exchange traders, and the RBZ Financial Intelligence Unit (FIU) froze 90 bank accounts and monitored banking activities to detect illegal transactions. The crackdown has significantly reduced the number of illegal money changers in Harare’s central business district and surrounding areas. However, the shortage of coins continues to plague the central bank, and the RBZ plans to increase the supply of small change.
Starting from June 10, Homelink Financial Services in Zimbabwe will provide ZiG debit card withdrawal services in seven cities, and other financial institutions will join in the future. ZiG is the sixth currency introduced in Zimbabwe in 15 years and is backed by gold and foreign exchange, but its launch has received mixed reactions from the public.
Golden Encyclopedia:
What is liquidity staking?
Liquidity staking allows stakers to maintain the liquidity of their staked tokens by using alternative tokens. They can use these alternative tokens to earn additional yields through DeFi protocols. Liquidity staking enables cryptocurrency holders to participate in staking without giving up control over their holdings. This changes the way users engage in staking. Projects like Lido have introduced liquidity staking, tokenizing staked assets in the form of tokens and derivatives.
