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Coincheck’s Nasdaq Listing Plans, FTX’s 118% Creditor Refunds, and Latest Crypto News

Fernanda T
Latest News
May 08 2024 3:15PM

Coincheck prepares Nasdaq listing via SPAC, following in Coinbase’s footsteps

Coincheck is on track to become the second cryptocurrency exchange to be publicly listed in the US, joining Coinbase Global (NASDAQ:COIN). The company plans to finalize its listing on Nasdaq in the second or third quarter of this year through a merger with SPAC Thunder Bridge Capital Partners IV. After the merger, it will be renamed Coincheck Group NV and listed under the symbol CNCK. This move, using a SPAC for listing, bypasses the traditional initial public offering process, although this method has faced weak performance in the market recently.

FTX claims exceed expectations with a 118% recovery rate

FTX, the cryptocurrency exchange that collapsed in November 2022, has billion-dollar surpluses thanks to significant cryptocurrency appreciation, including the sale of diversified assets. This enables full refunds with interest to creditors — a rare feat in US bankruptcies. With $14.5 to $16.3 billion available for the settlement of $11 billion in debt, creditors can expect a remarkable recovery, unlike shareholders, who are likely to be excluded due to priority debts with regulators and the IRS. FTX announced plans to reimburse 98% of its creditors with at least 118% of the value of their claims, according to its reorganization plan. Creditors with claims up to $50,000 could receive 118% compensation, subject to court approval.

The recovery plan disclosed by FTX has led to a significant increase in creditors’ claims. Expectations now range between 101% and 112%, surpassing initial predictions. Investors like Thomas Braziel have noted a significant increase in high-value claimants. The plan appears to have broad acceptance among creditors, despite opposition.

Sunil Kavuri, representing major creditors, criticized the reorganization plan and the maintenance of payment in cryptocurrencies, claiming that FTX owes much more to its customers than is being proposed, and pointing to past mismanagement.

HTX and Astar Network drive blockchain innovation with the TGE Catalyst Grant

HTX, a prominent digital asset exchange, joins forces with Astar Network (COIN: ASTRUSD) to launch the TGE Catalyst Grant, supporting projects in Astar’s zkEVM ecosystem. The TGE Catalyst Grant program offers a comprehensive support package, including financial assistance, strategic collaboration with thought leaders, and marketing campaigns, aiming to ensure the success of token launches and promote innovation in the blockchain ecosystem.

BitMEX introduces options trading to expand reach in crypto assets

BitMEX, known for 100x leverage perpetual swaps (recently extended to 250x), now offers options trading in partnership with PowerTrade. CEO Stephan Lutz aims to capture $500 million in trading volume within three months, targeting competitors like Deribit.

Chainalysis establishes regional headquarters in Dubai to drive cryptography innovation

Chainalysis, a blockchain analysis company, has relocated its regional headquarters to Dubai, strengthening collaboration with the local government. On May 8, the company inaugurated its new headquarters, which will serve Southern Europe, the Middle East, Central Asia, and Africa. This move includes partnerships with the UAE government to develop innovative cryptography regulations and a center of excellence to empower government officials in blockchain technology.

Bitpanda expands partnership with Austrian bank and opens office in Dubai

Cryptocurrency exchange Bitpanda has expanded its collaboration with the Vienna branch of Austrian bank Raiffeisen, offering crypto services in 55 branches across Austria. Additionally, the company announced the opening of a new office in Dubai, marking its first expansion outside of Europe.

Analyst predicts BTC price pullback to $60,000 based on trading volume patterns

At the time of writing, Bitcoin (COIN:BTCUSD) is trading at approximately $62,575, representing a 0.38% increase in the last 24 hours. Fernando Pereira, an analyst at Bitget, noted significant changes in Bitcoin trading volume in recent days, suggesting a negative trend for the digital asset. “It is important to note the movement in Bitcoin trading volume in recent days. We had decreasing volume on the high and increasing volume on the low, which shows that investors took profit in this nearly 10% weekend rally. The price will probably pull back to $60,000 again,” Pereira highlighted.

Argentina turns stranded gas into Bitcoin to boost sustainable energy

In Argentina, state-owned energy subsidiary YPF Luz, in partnership with Genesis Digital Assets (GDA), launched a gas-powered Bitcoin mining facility, using 1,200 machines to monetize wasted natural gas. This comes as the country embraces Bitcoin (COIN:BTCUSD), with President Javier Milei elected in 2023. The initiative not only offsets costs for YPF Luz but also reduces carbon emissions and signals Argentine leadership in sustainable adoption of Bitcoin mining.

Recent flows of Bitcoin ETFs in sight

On May 7, Bitcoin ETFs in the United States recorded outflows of $15.7 million, with the Grayscale ETF (AMEX:GBTC) leading this negative trend by accounting for outflows of $28.6 million. This movement increased total outflows from GBTC to over $17.48 billion since the start of Bitcoin ETFs in January. Meanwhile, other ETFs like Invesco Galaxy Bitcoin (AMEX:BTCO) and Fidelity Wise Origin (AMEX:FBTC) saw modest inflows. Total inflows into Bitcoin ETFs in the US still represent an impressive figure of $11.76 billion.

Susquehanna expands Bitcoin investments

According to an SEC filing, Susquehanna (USOTC:SQCF) increased its Bitcoin (COIN: BTCUSD) investments by allocating $1.3 billion across various ETFs, with a focus on the Grayscale Bitcoin Trust (AMEX:GBTC), which comprises $1.1 billion of the total. The company also invested in other Bitcoin ETFs in the US, as evidenced in the 13F report. In addition to GBTC, Susquehanna diversified its bets with investments in Bitcoin futures and options strategies, aiming to optimize returns through a diversified and strategic portfolio.

Grayscale withdraws Ethereum ETF proposal amid regulatory complexities

Grayscale Investments has withdrawn its proposal for an Ethereum ETF based on physical assets with the US Securities and Exchange Commission (SEC). Specifically, NYSE Arca canceled on May 7 a filing made on May 3 seeking approval to list and trade shares of Grayscale’s Ethereum Futures Trust ETF. The decision comes at a time of regulatory uncertainty in the US regarding crypto-focused ETFs. Meanwhile, Grayscale has abandoned its Ethereum Futures Trust (ETH) ETF, originally submitted last September, seeking greater integration and acceptance of Ethereum in the US regulatory framework.

Tether leads stablecoin growth with record profit, expansion into Eastern Europe, and 5.6 million active addresses

The market capitalization of stablecoins has grown considerably, with Tether (COIN:USDTUSD) dominating 70% of the market. Tether’s quarterly report reveals a record profit of $4.52 billion, primarily driven by holdings in US Treasuries, resulting in $1 billion in net operating income. Additionally, there has been an increase to 5.6 million active Tether addresses. Furthermore, Tether is increasing its investments in the Georgian-based crypto payment platform to boost cryptocurrency adoption in Eastern Europe. With over 600 locations in Georgia and plans to launch e-wallet and card solutions, aims to establish over 500,000 crypto payment points in the region.

SEC targets Ripple’s proposed stablecoin in recent lawsuit

The US SEC has escalated its offensive against Ripple (COIN:XRPUSD), targeting the stablecoin proposed by the company in its latest lawsuit. The regulator described the stablecoin as an “unregistered cryptographic asset” and argued that this is evidence that Ripple will persist in unregulated activities without a permanent injunction. In April, Ripple announced plans to launch the coin but has since kept details under wraps. The SEC also seeks a substantial penalty of nearly $2 billion to deter similar practices, contrasting sharply with Ripple’s proposed penalty of $10 million.

Public blockchain challenges for massive transactions

During the BIS Innovation Summit, Umar Farooq, CEO of JPMorgan’s (NYSE:JPM) Onyx platform, expressed concerns about the suitability of public blockchains for large transactions. He emphasized the lack of accountability of validators in case of a significant transaction failure. Farooq advocated for a unified and accountable system, contrasting with the current model of public blockchains. Despite this, traditional financial institutions’ preference for public blockchains is growing, driven by initiatives like BlackRock’s BUIDL fund.

The future of smart contracts with AI, according to Emin Gün Sirer

Emin Gün Sirer, founder of Ava Labs and creator of the Avalanche blockchain, highlighted the complexities of smart contract programming during the Cornell Blockchain Conference in New York. Sirer discussed how intent is difficult to capture in coding and how artificial intelligence could revolutionize this process. He proposed a future where smart contracts could be drafted in natural language, allowing even lawyers, rather than coders, to master this task. Sirer also envisioned a scenario where anyone could create smart contracts in their native language, simplifying complex transactions as easily as writing a check.

Trader loses over a million dollars in cryptocurrencies after controversial hard fork

An investor, under the pseudonym NN, reported a loss of over a million dollars in cryptocurrencies due to an unauthorized hard fork on the 0L network. The fork, triggered to fix a bug exploited by a “dishonest” core member, resulted in the burning of 4% of the total supply and affected the wallets of several holders, including NN, who had acquired 147 million Libra tokens in February 2023. The 0L team had known about the bug for years but only acted recently, harming many legitimate token holders.

Solana poised to surpass Ethereum in transaction fees, says Blockworks analyst

The Solana network (COIN: SOLUSD) is poised to surpass Ethereum (COIN:ETHUSD) in transaction fees, according to Dan Smith, a Blockworks analyst. In a recent post, Smith predicts that Solana could overtake Ethereum in fees and Maximum Extractable Value (MEV) later this week, reflecting a significant increase in network competitiveness. This development could bolster Solana’s status as a potential alternative to Ethereum. However, in terms of total value locked (TVL), Solana holds only a fraction compared to Ethereum.

Injective announces expansion with new layer 3 network in Ethereum ecosystem

The Injective blockchain plans a significant expansion by launching a layer 3 network within the Ethereum ecosystem. Using Arbitrum’s technology, Injective’s “inEVM” will be compatible with the Ethereum Virtual Machine and interconnect Ethereum, Cosmos, and Solana networks. This integration offers developers the ability to create customized chains while facilitating interoperability between multiple ecosystems, potentially revitalizing the value of the INJ token (COIN:INJUSD), which depreciated nearly 30% in 2024.

Arbelos Markets raises $28 million in seed and debt financing round

Arbelos Markets, a cryptocurrency liquidity provider, secured $28 million in seed and debt financing round, led by Dragonfly Capital. The company plans to enhance trading infrastructure, hire more personnel, and diversify products. Founded in 2023 by Joshua Lim and Shiliang Tang, Arbelos aims to lead the market with its Transparency Engine. Increased institutional interest boosts its relevance, especially in crypto derivatives.

Sophon raises $60 million with ETH node sale

Sophon, a layer 2 network built with Matter Labs’ ZK Stack, raised $60 million by selling 121,000 nodes, priced between 0.0813 and 2.0556 ETH. Investors include Maven 11, Paper Ventures, and SevenX Ventures. Sophon received a total of 20,800 wETH as payment for the nodes sold. Sophon reserves 20% of its token supply for node holders. The node sale, with 45 million private investors and 15 million retail, is an emerging form of financing.

Founders Fund leads $13.2 million funding for Lagrange Labs

Peter Thiel’s Founders Fund led a $13.2 million funding round for Lagrange Labs, a cryptography startup based on the Ethereum platform’s EigenLayer. Specializing in zero-knowledge proofs (ZK), Lagrange developed a ZK “coprover” to enable off-chain intensive calculations, providing a scalable and secure solution. In addition to the Founders Fund, investors such as Archetype Ventures and Kraken also participated in the initial round.