This Week in Crypto: A Dynamic Landscape

This week has been nothing short of remarkable. Let's delve into the key happenings that have captured the attention of both crypto enthusiasts and the wider financial world:

OnlyFans' Crypto Foray:

• OnlyFans owner Leonid Radvinsky,  made a strategic move by collecting an astonishing $485 million in dividends. What makes this development truly intriguing is the destination of these profits—Ethereum. It signals a shift, where even non-crypto companies are recognizing the potential of blockchain technology.

BRICS' Financial Autonomy:

• Russian Foreign Minister Sergey Lavrov articulated a vision for BRICS (Brazil, Russia, India, China, and South Africa) that focuses on reducing dependence on the US-controlled financial system. This bold stance has ignited discussions about the geopolitical implications of such a move.

Robinhood's Bitcoin Accumulation:

• Robinhood, the trailblazing financial platform, stunned the crypto world by amassing a staggering $3 billion worth of Bitcoin in just three months. What adds intrigue to this is the emergence of an undisclosed Bitcoin address as the third-largest BTC holder, with 118,000 BTC. While it's been linked to Robinhood, the company has yet to confirm or deny ownership.

PayPal's Stablecoin Struggles:

• PayPal, a giant in the financial industry, ventured into the world of stablecoins. However, early indications suggest that its stablecoin is facing sluggish demand among crypto users. Crypto analyst Nansen highlights that smart investors are steering clear. Paxos holds a dominant position with over 90% of PYUSD supply, while Kraken, Gate.io, and Crypto.com jointly hold just over 7%. Surprisingly, there are fewer than ten non-contract or non-exchange holders with balances exceeding $1,000, and the top holder in this category possesses less than $10,000, acquired after selling three memecoins.

JPMorgan's Bitcoin Bottom Call:

• JPMorgan, a financial institution with a significant footprint, believes that the bottom of the Bitcoin market may be in sight. This pronouncement carries weight and could have implications for both institutional and retail investors.

Hashdex's ETF Strategy:

• In the race for a Bitcoin Exchange-Traded Fund (ETF), Hashdex has taken a unique approach. Unlike recent filings, Hashdex is not relying on a surveillance sharing agreement with Coinbase. Instead, it plans to acquire spot Bitcoin directly from physical exchanges within the CME market.

Data Breach Concerns:

• BlockFi and FTX, prominent players in the crypto sector, found themselves dealing with data breach concerns, related to a claims administration platform called Kroll. While both platforms downplayed the incident, it raises questions about data security within the crypto industry.

US Treasury's Crypto Tax Proposals:

• The US Treasury Department introduced a set of proposals aimed at closing the tax gap in crypto transactions. Under these regulations, crypto brokers and exchanges will be required to report crypto sales, including Bitcoin and NFTs, in a manner similar to how traditional brokers handle stocks and bonds. Brokers must provide Form 1099-DA, simplifying tax reporting for taxpayers.

Congressman McHenry's Critique:

• Congressman McHenry expressed strong criticism of the Treasury and IRS rulemaking on digital asset reporting requirements. He contends that the proposal does not align with bipartisan calls for clear and Congress-aligned rules.

Pepecoin Controversy:

• A major controversy emerged as rogue members of the Pepecoin team were implicated in a $16 million multsig withdrawal, highlighting the challenges of trust and security in the crypto sphere.

Professor Damodaran's Shift on Bitcoin:

• Professor Damodaran, a respected figure at NYU's Stern School of Business, made a notable shift in his view on Bitcoin. Once referred to as "millennial gold," he now characterizes it as "the currency that nobody uses," signaling a shift in sentiment regarding Bitcoin's role.

DYdX Founder's Regulatory Caution:

• The founder of DYdX issued a cautionary note to crypto builders, advising them to steer clear of serving US customers for the next 5-10 years due to the mounting regulatory challenges.

Tor Network's Security Upgrade:

• The Tor Network, renowned for its privacy features, implemented a security enhancement inspired by Bitcoin. Instead of pursuing a static target, clients are now engaged in a 'bidding' process using Proof of Work (PoW) to bolster network resilience.

UK Treasury's Cold Call Review:

• The UK Treasury initiated a comprehensive review, exploring the possibility of a complete ban on investment cold calls, which includes cryptocurrencies. This move aims to protect investors from potential fraudulent schemes.

Dropbox's Storage Policy Shift:

• Dropbox, a prominent cloud storage provider, made a significant policy shift by discontinuing its unlimited storage offering. This decision was prompted by the misuse of resources by crypto miners who were pooling or reselling storage meant for business use.

BlackRock CEO's Crypto Perspective:

• Larry Fink, the CEO of BlackRock, expressed his view on crypto, seeing it as a digital alternative to gold. This endorsement underscores the growing acceptance of cryptocurrencies in the traditional financial sector.

Bitcoin Lightning Network in the UK:

• The United Kingdom welcomed Bitcoin Lightning Network payments with the integration of Lolly POS, potentially paving the way for faster and more efficient transactions.

Hong Kong's Tokenization Exploration:

• Hong Kong's monetary authority delved into the exploration of bond tokenization, as evidenced by its report on Project Evergreen, which analyzed recent tokenization activities. This signifies efforts to modernize the financial market.

Uniswap's Triumph Over Coinbase:

• Bitwise researcher Ryan Rasmussen unveiled a surprising revelation: Uniswap outperformed Coinbase in terms of spot trading volumes throughout 2023, signaling the ascendancy of decentralized exchanges.

Binance's Swift Bitcoin Exodus and Collaboration with Authorities:

• Binance sent shockwaves through the crypto world by recording a massive $150 million Bitcoin withdrawal in a mere 60 seconds. Speculations abound, including heightened security measures, strategic investment decisions, or preparations for significant transactions. In a different context, Binance also disclosed its cooperation with authorities, which reportedly contributed to the capture of senior ISIS members in Asia. This underscores the crypto industry's commitment to combating illicit activities.

WazirX's Fiat Withdrawal Pause:

• In India, the crypto exchange WazirX took a significant step by temporarily halting fiat withdrawals, sparking discussions about the regulatory landscape for cryptocurrencies in the country.

These developments illustrate the vibrancy and complexity of the crypto space. As it continues to evolve, it's clear that cryptocurrencies are not just a passing trend, but a transformative force in the world of finance