Bitcoin’s price dropped to $25,500 after the SEC announced a lawsuit against Binance and Changpeng Zhao, a move which also has BTC bulls wondering if the bottom is truly in.
Bitcoin’s price declined 5% in one hour on June 5 after the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance on allegations of violating federal securities laws. Even though the $25,500 support held for Bitcoin, investors are still digesting the potential impacts of the regulatory action, which also involves Binance CEO Changpeng “CZ” Zhao.According to digital asset investment firm Arca CEO Jeff Dorman, the direct impact of an eventual shutdown of Binance operations in the U.S. is irrelevant. Furthermore, non-criminal charges from the past should not destabilize Binance’s present international structures. Still, Arca’s CEO expects negative market sentiment to prevail as the crypto community cheers for CZ and Binance.My 2 sats on SEC vs Binance Mostly irrelevant since no one operates in the US anymore and a bunch of non-criminal charges for past wrongdoings don’t really matter. I see 2 actual negatives from this: ⬇️— Jeff Dorman, CFA (@jdorman81) June 5, 2023

Binance is not the only pressing concernEven if the SEC charges against Binance have little to no impact in the medium term, there’s additional uncertainty coming from Digital Currency Group (DCG) and its subsidiary Genesis Capital, which filed for Chapter 11 bankruptcy on Jan. 19.looks like a dcg portco-manages ~3b of silbert’s personal holdings-lent genesis 1b-pulled 1b coincident w/ 3ac default / dcg note-has ~ no clients other than barryits v clear nobody else reads these filings carefullythe stonewalling makes sense!https://t.co/7NgFnUkmp1— Data Finnovation (@DataFinnovation) June 4, 2023

According to Jon Reiter, CEO of Data Finnovation and ChainArgos, DCG CEO Barry Silbert pulled $1 billion out of his personal holdings just as cryptocurrency hedge fund Three Arrows Capital defaulted. While this could have been a coincidence, it certainly draws even more attention to the intercompany loans and deals inside DCG.Traders now question whether Bitcoin (BTC) will test the $25,000 resistance, a level unseen since March 17. Considering that the U.S. debt ceiling crisis has been averted, the odds for a surprise Bitcoin price rally seem even more unlikely in the short term.Investors should be especially attentive if Bitcoin futures contract premiums flip negative or if increased costs for hedging using BTC options occur.Bitcoin derivatives markets show a mixed reactionBitcoin quarterly futures are popular among whales and arbitrage desks. However, these fixed-month contracts typically trade at a slight premium to spot markets, indicating that sellers are asking for more money to delay settlement.As a result, BTC futures contracts in healthy markets should trade at a 5 to 10% annualized premium — a situation known as contango, which is not unique to crypto markets.Bitcoin 2-month futures annualized premium. Source: LaevitasBitcoin traders have been rather cautious since June 1, as the futures premium remained below 4%. On the other hand, the indicator stood at 3.5% after the SEC charges against Binance came to light on June 5.Traders should also analyze options markets to understand whether the recent correction has caused investors to become more optimistic. The 25% delta skew is a telling sign of when arbitrage desks and market makers overcharge for upside or downside protection.In short, if traders anticipate a Bitcoin price drop, the skew metric will rise above 7%, and phases of excitement tend to have a negative 7% skew.Related: Fines and regulation, The ever-growing landscape of crypto complianceBitcoin 30-day options 25% delta skew. Source: LaevitasAs displayed above, according to the BTC options 25% delta skew, traders suddenly flipped bearish, as the indicator spiked to 11% on June 5. This level was the highest in three months and signals discomfort from professional traders.The bear trend continues while FUD prevailsIn essence, Bitcoin options and futures markets suggest that the bear trend that started after the failed $31,000 test on April 14 continues, although there has been no significant fallout in the overall market structure. Yet, it might be too early to interpret the potential consequences of the SEC’s actions, and court rulings take months — if not years — to settle.Consequently, those betting on a Bitcoin bull run should adjust their expectations because investors hate uncertainty. Until there is more clarity on the DCG-Genesis situation and Binance’s operational capability amid the tougher U.S. regulatory environment, there is less incentive for long-term buyers to step in and defend the all-important $25,000 support.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Binance betrayed our interests with its decision to delist privacy coins. In the long run, it may mean that users leave Binance in the dust.
Binance announced in May that it would delist so-called “privacy coins” such as Monero (XMR), Zcash (ZEC) and others in several countries, including France, Italy, Spain and Poland. The decision underscored the reality that some companies might step over their own feet to ban privacy tech — even where it is legal — out of a combination of risk aversion and compliance confusion.Some Monero users have long advocated for keeping their tokens off exchanges, emphasizing that on-exchange transactions undermine user privacy by requiring personal identification data. And yet listing privacy coins on exchanges has its merits: It facilitates new user adoption, bolsters liquidity and contributes to price momentum.European Union regulators recently enacted two significant crypto legal frameworks: Markets in Crypto-Assets rules and a Travel Rule. These mandates necessitate the collection of user data and identification information for withdrawal recipients. While these regulations might seem burdensome, privacy coin users and exchanges listing privacy coins can, in fact, comply.Related: Are we still mad at MetaMask and ConsenSys for snooping on us?Take Zcash, for instance. It offers a transparent send function and an option to privately share view keys in shielded transactions. Monero provides a similar view key feature. Discussions are underway among EU officials about a potential ban on privacy coins, but this is still in the early stages.Binance’s overreaction is not a result of any clear regulatory mandate, and its actions also seem internally inconsistent. It delisted Secret’s SCRT governance token, which is not private itself but can be traded for a private coin. In contrast, Litecoin (LTC), which has a privacy feature, has not been delisted.These actions from Binance might be less about European regulators’ demands and more about its unique circumstances. For instance, Binance is currently embroiled in a legal dispute with the Commodity Futures Trading Commission over alleged failures to uphold requisite Anti-Money Laundering measures.Even in countries where privacy coins are banned outright, like the United Arab Emirates, savvy users can acquire them via virtual private networks to access peer-to-peer transfers or decentralized exchanges. Platforms like Sideshift.ai for Zcash and Bisq for Monero serve as gateways to these privacy coins. While such methods ensure privacy coins’ survival during prolonged periods of bans, they may slow the adoption among a broader user base who need crypto privacy tools for financial security and the exercise of their human rights.The crypto industry should avoid creating its version of “Operation Choke Point,” a practice where the U.S. government discourages banks from doing business with crypto clients due to regulatory pressures. Crypto exchanges should refrain from banning privacy coins when there’s no legal obligation to do so, lest they create their own chokepoint.Regulated exchanges manage to comply with U.S. Anti-Money Laundering laws — including Kraken, which lists Monero, as well as Gemini, which not only lists Zcash but allows customers to engage in shielded transactions on the platform.Privacy tools in crypto are just that— tools. They are used by both everyday users and, in some cases, bad actors. But this doesn’t mean the tools themselves are inherently bad. Just like cash or the internet, these tools can be used for both legal and illegal activities. It’s important to differentiate between the tool and how it is used.Related: Infura is to blame for MetaMask’s violation of the crypto spiritThe crypto industry is still in its early stages, and it’s crucial to establish a balanced regulatory environment that respects users’ privacy while also deterring and punishing illegal activities. Overly restrictive regulations could stifle innovation and discourage new users from joining the crypto space. On the other hand, a complete lack of regulation could make the crypto space a haven for illegal activities.Privacy is a fundamental human right and an essential aspect of the crypto ecosystem. Regulatory bodies and crypto organizations should work together to create a regulatory environment that respects and protects user privacy while also ensuring compliance with laws and regulations. This will ensure the long-term sustainability and growth of the crypto industry.Binance should retract its misguided delisting of privacy coins, take a better view of its actual compliance requirements in EU countries, and, even more than that, get active in advocating against the EU’s consideration of a future privacy ban. Privacy will become increasingly important in crypto, and Binance and other exchanges will be left behind if they don’t take privacy coins and privacy tools seriously.J.W. Verret is an associate professor at George Mason University’s Antonin Scalia Law School. He is a practicing crypto forensic accountant and also practices securities law at Lawrence Law LLC. He is a member of the Financial Accounting Standards Board’s Advisory Council and a former member of the SEC Investor Advisory Committee. He also leads the Crypto Freedom Lab, a think tank fighting for policy change to preserve freedom and privacy for crypto developers and users.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The world’s largest cryptocurrency exchange has been hit with an SEC suit that many saw coming, but the details will be studied closely.
The announcement of the United States Securities and Exchange Commission (SEC) suit against Binance, Binance.US and Binance CEO Changpeng Zhao (CZ) may have surprised the crypto community, but the SEC’s focus on the exchange was well known. The suit’s contents were met with a variety of reactions.CZ claimed in a tweet on the morning of June 5, “Media gets the info before we do,” and the company had not seen the SEC complaint then. Evidence of scrambling behind the scenes may be seen in the two statements Binance issued in response to the suit. The exchange called the suit “disappointing” in a blog post and emphasized the SEC’s failure to provide clarity and guidance, as well as its impact on financial innovation. A later statement distributed by email addressed legal issues more closely, claiming there was a lack of due process and promising a vigorous defense.No one who was paying attention should have been taken unawares by the SEC’s complaint, Cory Klippsten, CEO of financial firm Swan Bitcoin, said of the allegations. He claimed in a statement to Cointelegraph:“These practices of Binance have essentially been open secrets, so no one who operates in the space will be surprised by any of the charges.”Some of the details will still raise eyebrows. The most quotable passage in the suit undoubtedly came from the unnamed Binance chief compliance officer in 2018, who said in a message to another company officer: “We are operating as a fking unlicensed securities exchange in the USA bro.” More light was shed on Brian Brooks’ brief tenure as CEO of Binance.US. Brooks, former U.S. comptroller of the currency and CEO of Binance.US for three months in 2021, is memorably quoted in the suit (as “CEO B” of BAM Trading). According to the SEC, Brooks said in testimony: “[W]hat became clear to me at a certain point was CZ was the CEO of BAM Trading, not me. […] I realized, huh, I’m not actually the one running this company, and the mission that I believe I signed up for isn’t the mission. And as soon as I realized that, I left.” The SEC has repeatedly claimed that nearly all cryptocurrencies are securities, so the list of 10 tokens may also be illuminating. There are familiar claims, such as that Filecoin (FIL) is a security. Algorand (ALGO) has also been singled out before. For Solana (SOL), Cardano (ADA) and Polygon (MATIC), the Binance suit may be a warning shot, however. And guess which tokens are illegal securities offerings. Spoiler alert it includes Solana and Cardano. pic.twitter.com/wMdICfIE3j— Stephen Diehl (@smdiehl) June 5, 2023

There were already signs that a shakeup was underway at the exchange. Nearly simultaneously with the news of the SEC’s complaint, Bloomberg reported Richard Teng may be favored to replace CZ as the exchange’s next CEO. The news service cited “persons with direct knowledge.” Related: Binance readies checkbook for potential fines from US regulators: ReportTeng was appointed to head all regional markets outside the U.S. on May 29. He joined Binance Singapore in August 2021, coming from the Financial Services Regulatory Authority at Abu Dhabi Global Market, where he was CEO, and “quickly rose through the ranks.”Magazine: Crypto Wendy on trashing the SEC, sexism, and how underdogs can win: Hall of Flame

Various factors, including the debt ceiling, affect the crypto and economic sectors. Cryptocurrencies like Bitcoin have faced various challenges and support since their launch, affecting market values. However, tracking such news can be challenging since there is a large data set, but this can be done using the Avorak platform. The project is highly reliable […]

Despite displaying an admirable measure of strength year-to-date, Bitcoin has not been off to a good start this month, with the top cryptocurrency losing momentum due to recent market dynamics.

Bitcoin and several altcoins took a beating on reports that the SEC filed a suit against Binance in U.S. district court.
Bitcoin and altcoins witnessed a sharp sell-off on the news that the United States Securities and Exchange Commission (SEC) filed a suit against Binance in U.S. district court for unregistered securities operations.This lawsuit could delay the recovery in Bitcoin (BTC) and most major altcoins, as traders could prefer to remain on the sidelines for a few days until some clarity emerges. Another upcoming event that could keep the investors at bay is the Federal Reserve’s meeting on June 14.Daily cryptocurrency market performance. Source: Coin360Although the short-term picture is uncertain, Glassnode data shows that the largest cohort of Bitcoin whales, owning at least 10,000 Bitcoin, has been on an accumulation spree for the past few days. On the other hand, all the other major cohorts have been in a distribution phase.What are the important support levels that could start a recovery in Bitcoin and the major altcoins? Let’s study the charts to find out.S&P 500 Index price analysisThe S&P 500 Index (SPX) broke and closed above the overhead resistance of 4,200 on May 26, completing the bullish ascending triangle pattern.SPX daily chart. Source: TradingViewThe bears tried to trap the aggressive bulls on May 30 and May 31, but the bulls aggressively purchased the dip to the 20-day exponential moving average (EMA) at 4,183. The up move resumed on June 1, and the bulls built upon it on June 2.There is minor resistance at 4,325, where the bears will try to stall the rally. On the way down, if bulls do not allow the price to slide below 4,200, it will enhance the prospects of an up move to the 4,500 to 4,600 zone.Contrary to this assumption, if the price turns down and breaks below the 50-day simple moving average (SMA) at 4,128, it will suggest that the recent breakout may have been a bull trap. The index may then dive to the uptrend line.U.S. Dollar Index price analysisThe U.S. Dollar Index (DXY) rebounded off the 20-day EMA (103) on June 2, indicating that the sentiment has turned positive and bulls are buying the dips.DXY daily chart. Source: TradingViewThe bulls will try to push the price above the immediate resistance at 104.70. If they succeed, the index could reach the overhead level of 106. This is an important level to watch for because a break above it could start a new up move.If the price turns down from 106 and breaks below the 20-day EMA, it will suggest that the index may extend its stay inside the range for a few more days. The bears will have to pull the price below 100.82 to complete the bearish head-and-shoulders pattern.Bitcoin price analysisBitcoin has been trading inside the descending channel pattern for the past several days. The bulls pushed Bitcoin above the 20-day EMA ($27,083) on June 4, but the long wick on the candlestick shows that the bears sold the rally.BTC/USDT daily chart. Source: TradingViewThe price turned down on June 5 and plummeted below the immediate support at $26,500. The selling picked up momentum, and the BTC/USDT pair dropped into the crucial support zone between $25,800 and $25,250. Buyers are expected to guard this zone with all their might because a break below it may result in long liquidation. The pair could then descend toward $20,000.The first of strength will be a break and close above the descending channel. That could indicate the end of the corrective phase. The pair may then soar to $31,000.Ether price analysisEther (ETH) broke above the falling wedge pattern on May 28 and successfully held the retest on June 1, but the bulls failed to start a new up move.ETH/USDT daily chart. Source: TradingViewThis gave an opportunity to the bears to make a comeback. Sellers tugged the price below the moving averages on June 5, which accelerated the selling. The ETH/USDT pair tumbled below the resistance line of the wedge pattern. If this level fails to hold, the next stop could be $1,740 and then the support line.This negative view will invalidate in the near term if the price turns up and breaks above $1,928. The pair could then surge to $2,000 and eventually to $2,200, where the bears may again mount a strong defense.BNB price analysisBNB’s (BNB) narrow range trading resolved to the downside on June 5. The sharp selling pulled the price below $300 and the next support at $280.BNB/USDT daily chart. Source: TradingViewThe BNB/USDT pair could drop to $265, which is an important level to keep an eye on. If the price turns up from $265 and rises above $280, it will indicate strong buying at lower levels. The pair may then rise to the 20-day EMA ($306), where the bulls are likely to encounter aggressive selling by the bears.On the downside, a break and close below the $265 support could start a new downtrend. The pair may plunge to $240 and then to $220.XRP price analysisXRP (XRP) has been oscillating inside a large range between $0.56 and $0.30 for the past several months. Generally, in such a well-defined range, traders buy at the support and sell close to the overhead resistance.XRP/USDT daily chart. Source: TradingViewThe XRP/USDT pair turned down from the overhead resistance on June 4, indicating profit-booking by the bulls and short positions by the aggressive bears. If the price turns up from the 20-day EMA ($0.49), it will suggest that the sentiment has turned positive and traders are buying on dips. The bulls will then make one more attempt to clear the overhead hurdle.Alternatively, if the price dips below the moving averages, it will suggest that the pair may remain stuck inside the range for a while longer.Cardano price analysis The long wick on Cardano’s (ADA) June 4 candlestick shows that the bears successfully halted the relief rally at the 50-day SMA ($0.38).ADA/USDT daily chart. Source: TradingViewThe ADA/USDT pair turned down sharply on June 5 and plummeted below the uptrend line of the ascending channel pattern. This move invalidated the bullish setup, and the pair may next descend toward the critical support at $0.30.If bulls want to prevent the downward move, they will have to quickly push the price back into the channel. Such a move will suggest that the pair has rejected the lower levels. The upside momentum could pick up on a break above $0.39.Related: Bitcoin price will get ‘another test’ of 200-week trend line — analystDogecoin price analysisThe bulls repeatedly failed to push Dogecoin (DOGE) above the 20-day EMA ($0.07) in the past few days, indicating that the bears are fiercely guarding the level.DOGE/USDT daily chart. Source: TradingViewThe selling picked up momentum on June 5, and the bears yanked the price below the immediate support at $0.07. That may have hit the stops of several traders, opening the gates for a further fall to $0.06. This level may attract strong buying by the bulls.On the upside, the $0.07 level may now act as a strong resistance during relief rallies. The bulls will have to propel and sustain the price above the breakdown level of $0.07 to signal the start of a potential recovery.Solana price analysisSolana (SOL) broke above the 50-day SMA ($21.54) on June 4, but the bulls could not sustain the positive momentum. This indicates that demand dries up at higher levels.SOL/USDT daily chart. Source: TradingViewThe bears sensed an opportunity and pulled the price below the moving averages. That may have trapped the aggressive bulls, resulting in a sharp drop to the strong support at $18.70. This is an important level to keep an eye on because a break and close below it will open the doors for a potential drop to $15.28.If the SOL/USDT pair rebounds off $18.70, the bulls will again try to clear the overhead hurdle at the moving averages. A break and close above $22.30 may tilt the advantage in favor of the bears.Polygon price analysisThe bulls have been trying to push Polygon (MATIC) above the 20-day EMA ($0.89) for the past few days, but the bears held their ground.MATIC/USDT daily chart. Source: TradingViewThe selling intensified on June 5, and the bears pulled the price to the vital support at $0.82. Buyers are expected to defend this level aggressively. A strong bounce off this support will suggest that the pair may remain stuck between $0.82 and $0.94 for some more time.Contrarily, if the support at $0.82 crumbles, the MATIC/USDT pair could start a decline toward the next major support at $0.69. The bulls will have to push and sustain the price above the moving averages to signal the start of a sustained recovery.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

There is no shortage of regulatory efforts to mitigate the negative impacts of artificial intelligence.
The lively discussion around artificial intelligence (AI) continues. Last week, dozens of AI experts — including the CEOs of OpenAI, Google DeepMind and Anthropic — signed an open statement with a single sentence: “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.”Despite the ominous statement, there is no shortage of regulatory efforts to mitigate the negative impacts of AI. In China, the “improvement of governance” in digital data and AI is being discussed by President Xi Jinping and prominent members of the Communist party. The Australian government has announced a sudden eight-week consultation that will seek to understand whether any “high-risk” AI tools should be banned.Italian Senator Marco Lombardo found a creative way to join the discussion by performing a speech entirely composed by OpenAI’s ChatGPT-4. He also trained the chatbot with the draft law of the Italian-Swiss agreement on cross-border workers, which was the topic of the meeting, along with other recent developments on the subject.In Japan, the government’s AI strategy council blows the whistle on the lack of laws protecting copyright from AI. The Personal Information Protection Commission has demanded OpenAI minimize the sensitive data it collects for machine learning purposes. Previously, local politicians voiced support for AI, with Chief Cabinet Secretary Hirokazu Matsuno even saying Japan would consider incorporating AI technology into government systems.CNHC stablecoin issuer detained by Chinese policeEmployees of Trust Reserve — the issuer of the Chinese yuan-pegged stablecoin CNH Coin (CNHC) — have been detained by Chinese police. The company’s office in Pudong, Shanghai, was empty as of May 31. The door was sealed on May 29, with a notice saying, “Judicial seizure, strictly no vandalism.” In March, Trust Reserve secured $10 million in funding in a round led by KuCoin Ventures, the venture capital arm of the major cryptocurrency exchange. Continue reading Binance to delist privacy tokens in France, Italy, Spain and PolandStarting from June 26, privacy tokens, such as Monero (XMR) and Zcash (ZEC), will no longer be available for trading for Binance customers in France, Italy, Poland and Spain. The new restrictions affect a total of 12 coins: Decred (DCR), Dash (DASH), ZEC, Horizen (ZEN), PIVX (PIVX), Navcoin (NAV), Secret (SCRT), Verge (XVG), Firo (FIRO), Beam (BEAM), XMR and MobileCoin (MOB). The move comes as part of ongoing compliance processes within the company. “While we aim to support as many quality projects as possible, we are required to follow local laws and regulations regarding the trading of privacy coins to ensure we can continue to serve as many users as we can,” a Binance representative told Cointelegraph. Continue readingEU officials sign MiCA into lawSweden’s minister for rural affairs, Peter Kullgren, and European Parliament President Roberta Metsola signed the long-anticipated Markets in Crypto-Assets (MiCA) cryptocurrency regulatory framework into law roughly three years after the European Commission introduced the measure. The framework is expected to come into effect following publication in the Official Journal of the European Union, with many of MiCA’s regulations on crypto firms likely starting sometime in 2024.Continue readingUS lawmakers aim to limit the SEC’s power with a new bill Lawmakers in the United States House Financial Services Committee and House Agriculture Committee have released a draft discussion offering certain crypto assets a pathway to being labeled digital commodities. The draft bill would prohibit the U.S. Securities and Exchange Commission (SEC) from denying digital asset trading platforms from registering as a regulated alternative trading system, allowing such firms to offer “digital commodities and payment stablecoins.”Specifically, the proposed legislation cracks down on the SEC’s approach, which many in the crypto space have criticized. The framework under the bill would allow certain digital assets to qualify as digital commodities if they are “functional and considered decentralized,” and would require the SEC to provide a “detailed analysis” of any objections to a classification of a firm as decentralized.Continue reading

“We only support blue chip NFTs to reduce the risks,” said Paraspace developers.
According to a recent report published by nonfungible token (NFT) money market protocol Paraspace and multichain wallet BitKeep, the current amount of NFT borrowing and lending, or NFTFi loans, has surpassed $430 million across 43,521 borrowers. The highest proportion of collateral comprised the most popular NFT collections, such as Wrapped CryptoPunks, Bored Ape Yacht Club and Mutant Ape Yacht Club.Researchers at Paraspace and BitKeep said that NFTFi added $25 million in outstanding loans from January to March. Also contributing was the introduction of a digital collectible lending protocol by NFT marketplace Blur, which surpassed $16 million in loans one day after its launch, led by Taiwanese celebrity Machi Big Brother. Yet, the real impetus was the invention of Bitcoin Ordinals, which boosted total NFT market transaction volume to $1.5 billion in March but shrunk to $330 million in May. Despite the growth, however, Paraspace and BitKeep researchers warned that liquidity concerns remain a constant theme in the sector:“The lack of liquidity in NFT trading is mainly caused by limited user numbers, difficulties in pricing, and high NFT prices. We thus observe two extreme scenarios where the TOP 10 NFTs maintain a certain level of liquidity with little fluctuation between projects, while other NFTs are sold at discounts.”In a statement to Cointelegraph, Paraspace NFT developers explained that despite accumulating NFT loans of over $280 million, the protocol had just 16 NFT liquidations with no bad debt since it began operations last year. Developers say the protocol owes its success to rules allowing only the most-established and highly liquid, or blue chip NFTs, to be pledged as collateral. The entry threshold for blue chip NFTs is often very high, with an average price range between $11,000 to $120,000.“Typically, users can only borrow ETH against a single NFT. For us, users can use a basket of NFTs + ERC20 (3 BAYC + 1 AZUKI + 2 BTC) to borrow collection assets (say 10 ETH + 10 USDT + 100 APE). This gives our platform an opportunity to aggregate liquidity into one place and thus increase the capital efficiency for liquidity.”Nevertheless, developers at both Paraspace and BitKeep cautioned that the NFTs are a new market “lacking historical data and universally recognized valuation analysis methods, resulting in pricing difficulties.” As a result, different perceptions of rarity based on subjective views have led to large price variances even within the same NFT series. On the market’s future outlook, developers commented:“High-quality NFTs often have strong community consensus, team background, and distinctive artistic styles. However, the barriers for ordinary users to participate in blue-chip or popular NFTs are increasing. Nowadays, some solutions have emerged, such as NFT fractionalization, NFT staking, and the rise of NFT liquidity platforms.”Over the past two days, @ParaSpace_NFT welcomed back 90 supporters who rediscovered the magic. Additionally, we witnessed an increase in TVL of $5.2M.Thank you all for your continued support and trust. Together, we're building something incredible.For more info:… pic.twitter.com/bxlMuibuST— ParaSpace (@ParaSpace_NFT) May 24, 2023

Magazine: Web3 Gamer: GTA 6 crypto rumors, Dr Who/Sandbox, Thai tourist NFTs review

El Salvador’s plans to build a billion dollar renewable energy precinct has found a first round investor in stablecoin issuer Tether.
Stablecoin issuer Tether (USDT) has announced that it will be partnering with Bitcoin-friendly nation El Salvador to invest in a planned $1 billion dollar renewable energy initiative.The Central American country continues efforts to drive Bitcoin adoption after becoming the first nation to make BTC legal tender some three years ago. The latest is a renewable power generation precinct in Metapán, which aims to harness solar and wind energy which will power and be monetized by Bitcoin mining operations.Tether is among investors in a first round capital raise to develop Volcano Energy, a soon to be developed 241 MW renewable energy park. The site is located in Metapán and will comprise 169 MW of photovoltaic solar energy and 72 MW of wind. Related: What it’s actually like to use Bitcoin in El SalvadorThe energy produced will power Bitcoin mining farms in El Salvador with Tether estimating the park’s computation power surpassing 1.3 EH/s. This output would put the cumulative Bitcoin mining hashrate from Volcano Energy in the top 20 pools operating globally. Tether chief technology officer Paolo Ardoino said the investment marks the stablecoin issuers intent to drive investment in renewable energy production as well as mining infrastructure. Volcano Energy CEO Josue Lopez said that the park envisions being a benchmark for Bitcoin mining powered by renewable resources, as the sector continues to innovate in a competitive and expansive environment:“Currently, more than 52% of Bitcoin mining is being done sustainably. We believe this percentage will significantly increase in the coming years through important investments like ours.”Tether did not disclose the amount of the investment in correspondence Cointelegraph. Bitcoin proponent and broadcaster Max Keiser is keenly involved in El Salvador’s adoption efforts, acting as an advisor to president Nayib Bukele as well as the chairman of Volcano Energy.Saifedean Ammous, economist and author of The Bitcoin Standard is another Bitcoin advocate who’s now involved in El Salvador’s governance, after joining as economic adviser to its National Bitcoin Office.The proliferation of Bitcoin and the ability to use the preeminent cryptocurrency widely in El Salvador paints a more interesting picture, as Cointelegraph’s Joe Hall explored earlier in 2022 during a visit to the Central America country. Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

Researchers in Germany found that the launch of ChatGPT had a significant impact on AI-related cryptocurrencies, despite an overall bear market.
A recent study conducted by researchers at the Blockchain Research Lab in Hamburg, Germany indicates that OpenAI’s launch of ChatGPT represented a rising tide scenario for cryptocurrency assets related to artificial intelligence (AI). Launched in November of 2022, ChatGPT quickly became one of the fastest-growing web platforms in history, eclipsing 1 million daily users in just five days and reaching the 100 million monthly users mark by January 2023. As of June 2023, it’s difficult to tell exactly how many monthly users the app now serves — OpenAI hasn’t disclosed any official user statistics — but some reports suggest that number may be as high as 1 billion. The app’s popularity apparently had a follow-on effect for all things AI, with cryptocurrency being no exception. According to the researchers:“The ChatGPT launch had a significant impact on the performance of AI-related crypto-assets, despite the overall cryptocurrency market being in a bearish state and risk-averse investor appetites. Using synthetic difference-in-differences, we found average price increases of at least 10.7% (35.5%) in the one-month (two-month) period following the launch.” The performance of AI and non-AI cryptocurrencies. Source: Saggu and Ante, 2023: “The influence of ChatGPT on artificial intelligence related crypto assets: Evidence from a synthetic control analysis”While 10.7% and 35.5% represented the floor for price increases over one- and two-month periods, the ceiling rose to 15.6% and 41.3%, respectively.The research cites media and marketing hype and public sentiment as factors in the rise, concluding that “investors perceived AI-related crypto assets as possessing heightened potential or value after the launch.”Per the study, these factors may have contributed to institutional investors shifting funding toward big-tech AI projects. The researchers suggest this shift may have resulted in retail investors following suit and investing in cryptocurrencies both directly and indirectly related to the AI space. The researchers also speculate that ChatGPT’s capabilities as an educational tool may have “fostered information diffusion effects within the cryptocurrency market by equipping retail investors with the capacity to distill complex and technical concepts, thus facilitating more informed investment decisions”Related: Elliptic integrates ChatGPT to bolster crypto risk detectionCryptocurrency assets unrelated to AI continued a sideways trend during the same period, capping off a slump that began in the second quarter of 2022. Sentiment remains low as of June 2023, with Google searches for “crypto” having plummeted to their lowest level since 2020.