SpaceX Bitcoin Sale, SEC Ether Approval & Key Updates in StealthEX x CryptoDaily Digest

August 25, 2023

Crypto World

Maciej Zerelik

Today is Friday, marking the end of the week. On this occasion, in collaboration with CryptoDaily, we’ve prepared a brief article for you highlighting the most intriguing crypto news from the past week. What happened in the crypto sector? What were the implications? Find out in the following news digest.

SpaceX Cashes in on Bitcoin: Sells $373M Worth Acquired in 2021-2022

In a surprising financial move, SpaceX announced the sale of Bitcoin worth $373 million, which the company had acquired over 2021-2022. Given the growing interest in cryptocurrency among tech giants, this decision marks a significant shift in the company’s investment strategy.

SpaceX, primarily known for its ambitious space exploration goals, has diversified its investment portfolio by delving into the cryptocurrency market during the past two years. The acquisition was seen as a strategic move to hedge against traditional market volatility and align with the forward-thinking vision of its CEO, Elon Musk.

Musk, a vocal advocate for cryptocurrencies, especially Bitcoin and Dogecoin, has often influenced crypto market dynamics with his tweets and comments. However, the reason behind SpaceX’s recent sale remains undisclosed, leading to speculations. Some analysts believe it might be to fund upcoming space missions, while others see it as a strategic financial move given the current market conditions.

Regardless of the motive, this sale underscores the fluid nature of corporate investments in cryptocurrencies. As the crypto market continues to evolve, it will be interesting to see how other tech giants respond and whether SpaceX will reinvest in Bitcoin or other digital assets in the future.

SEC Approves Ether Futures ETFs in a Major Boost for Crypto

The United States Securities Commission (SEC) has given the go-ahead for the first exchange-traded funds (ETFs) based on Ether (ETH) futures, marking a significant milestone for the cryptocurrency sector. Several companies, including Bitwise, Roundhill, ProShares, and Volatility Shares, have submitted applications to the SEC to launch these ETFs.

This decision by the SEC is seen as a major win for the crypto community, especially after the regulator’s previous hesitations regarding cryptocurrency-based ETFs. In 2021, the SEC began allowing trading in a fund linked to Bitcoin futures contracts on the Chicago Mercantile Exchange. This move fueled speculations that an Ether futures product might soon receive approval.

Despite the positive stance on Ether, the SEC continues to resist Bitcoin-based ETFs. The regulator has raised concerns about potential price manipulation, insufficient liquidity, and the overall volatility of Bitcoin. Notably, Grayscale Investments has contested the SEC’s denial of its proposal to transform its Bitcoin trust, with a panel of U.S. federal appellate court judges set to rule on the issue.

Sei Faces Challenges with Token Airdrop Launch

Trading-focused blockchain Sei encountered hitches during its recent SEI token launch, leading to widespread discontent among the crypto community. Despite a strong market debut, with the SEI token achieving a market capitalization of over $400 million on its first trading day, the anticipated airdrop of SEI tokens to early adopters was marred by delays and confusion.

Many users expressed their frustrations on social media platforms, citing issues such as difficulties in claiming tokens and ambiguities regarding eligibility criteria. Sei Labs had aimed to entice users from platforms like Ethereum, Solana, and Binance Smart Chain by offering SEI tokens as incentives for asset “bridging.”

The surge in SEI trading activity, which saw a volume of $1.6 billion within 24 hours, was accompanied by listings on major exchanges like Coinbase, Binance, and Kraken. However, the airdrop process was criticized for not aligning with initial announcements, causing delays and preventing some users from claiming their tokens.

Sei Labs sought to address the concerns, stating that airdrop rewards would be available after an “initial warmup period,” but did not specify a timeline. The Sei Foundation also clarified that the airdrop was not directly linked to the mainnet launch and would follow the Foundation’s schedule.

Ethereum Introduces Revenue Sharing with EIP-6968

Ethereum developers have proposed an Ethereum Improvement Proposal (EIP) known as EIP-6968, aiming to enable decentralized application (dApp) creators to earn a share of transaction fees generated on Layer 2 (L2) solutions. The proposal introduces a new token type, “Contract Secured Revenue” (CSR), allowing developers to claim some transaction fees when users engage with their smart contracts.

Kevin Owocki, a proposal co-author, sees this as an opportunity for projects to collaborate, form an L2 around shared concepts, and distribute sequencer fee revenue based on usage. Layer 2 solutions, which operate off the main Ethereum blockchain (Layer 1), enhance Ethereum’s scalability by reducing congestion and transaction costs.

The EIP-6968 proposal allows smart contract developers to access lucrative revenue streams. By introducing CSR, Layer 2 can encourage developers to design and launch their dApps on these networks, promoting innovation and community expansion. The more a developer’s smart contracts are utilized, the higher the potential transaction fees they can earn, accelerating Ethereum’s overall growth.

EIP-6968, seen as an evolution from app-chains, aims to establish “ecosystem-chains” hosting multiple decentralized applications. It’s a modified version of EIP-1559, which introduced Ethereum’s burn mechanism in August 2021.

Binance Discontinues Crypto Cards in Latin America and the Middle East

Binance, a leading cryptocurrency exchange, has decided to withdraw its crypto payment credit card from Latin America and the Middle East. The company announced that the service will cease being available from August 25 and terminate entirely in both regions by September 1. The card allowed users to make purchases using their cryptocurrency assets, similar to other crypto payment cards.

The announcement was made through something other than conventional channels. Instead, a user’s query on Twitter prompted Binance’s response, which included the card’s termination notice. Binance’s Customer Support tweeted, “The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets.”

Binance highlighted that only a small fraction (1%) of its user base would be affected by this decision. They also mentioned that Binance Pay, recently introduced in Brazil, remains an option for shopping and crypto transactions.

This move comes amid a series of regulatory challenges faced by Binance, especially in the U.S. and Europe, affecting its payment options.

SBF Denies New Fraud Charges, Laments Over Jail Conditions

Sam Bankman-Fried, the founder of FTX, has pleaded not guilty to seven new charges related to fraud and conspiracy in a Manhattan federal court. These charges, announced on August 14, allege that Bankman-Fried misused over $100 million of stolen customer funds to make donations to electoral candidates and politicians. Following these allegations, the U.S. Department of Justice accused the former CEO of attempting to influence witnesses and obstruct a fair trial, leading to the revocation of his bail on August 11. Since then, he has been detained at the Metropolitan Detention Centre in Brooklyn.

During his court appearance, Bankman-Fried’s legal team raised concerns about his treatment in jail. They reported that he had not been provided with a vegan diet as requested and was facing shortages of his ADHD medication, Adderall, and his depression medication, Emsam. Judge Sarah Netburn assured the defense that she would address these concerns with the U.S. Justice Department’s Bureau of Prisons.

Bankman-Fried’s trial is scheduled for October. In preparation, he was granted a short release from prison on August 22 to meet with his lawyers in a supervised setting.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.

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