Blockchain News October 14, 2023 early reference

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Keywords: ARK Invest's valuation of every bitcoin in 2030, BlockFi CEO Zac Prince testifies at SBF trial Alameda and FTX are the culprits behind BlockFi's collapse, ProShares will launch a short Ethereum Futures ETF (Short ETH Strategy ETF) next week, Ethereum blockchain network fee income falls to its lowest level since April 2020, Invesco Galaxy has now updated its spot bitcoin ETF prospectus, Consensys announces acquisition of Special Mechanism Group (SMG), spot bitcoin ETF approval probability increased to 90% by January 10, SEC does not intend to appeal the grayscale ruling, Gauntlet launches proposal to deprecate the MAI/MIMATIC trading pair in the Aave community, BlockFi CEO Zac Prince continues to testify in the criminal trial of former FTX CEO SBF, and the market is too bullish on ETFs in the short term

1 . According to Golden Finance, ARK Invest CEO Cathie Wood said in a guest appearance on Natalie Brunell's podcast "Coin Stories" that ARK Invest's valuation of each bitcoin in 2030 is: $258,500 in a pessimistic scenario, $682,800 in a basic scenario, and $1.48 million in an optimistic scenario. Golden Finance previously reported that in May 2021, Wood first predicted that bitcoin would reach $500,000 by 2026 in an interview with Bloomberg. In early 2022, she raised her forecast to $1 million by 2030.

2 . BlockFi CEO Zac Prince testified at the SBF trial that Alameda and FTX were responsible for BlockFi's collapse and said he would never have issued a loan if he knew there was false information on Alameda's balance sheet. Prince told prosecutors that BlockFi's total assets on the FTX exchange were $1.1 billion. BlockFi recovered part of the loan, but $650 million is still outstanding.

3 . The Block Pro reported that SEC Chairman Gary Gensler declined to comment on a possible grayscale appeal at a press conference that day, as the appeal deadline approached. According to an August blog post by Winston & Strawn LLP, if the SEC does not appeal in the next few hours, the court is expected to authorize how to enforce its decision in the coming days, which may include telling the SEC to approve Grayscale's application or revisit the application, however, if the SEC files an appeal before midnight, it could lead to a full hearing, meaning that all three judges involved in the preliminary ruling will go on a retrial.

4 . Golden Finance reported that smart contract audit platform BlockSec posted on the X platform that the decentralized lending protocol WiseLending was attacked (white hat hacker c0ffeebabe.eth implemented preemptive transactions) and the pool of funds has been depleted.

5 Golden Finance reported that data released by Santiment showed that Curve witnessed another big increase in holdings of 1 million to 10 million CRV token whale addresses. In just 24 hours, CRV tokens held by these addresses increased by 9.5% to a value of $9.5 million. A large portion of this comes from dormant wallets, which have been at their most active since July.

6 . Golden Finance reported that Bloomberg analyst James Seyffart said on the X platform that ProShares will launch a short Ethereum futures ETF (Short ETH Strategy ETF) next week, which will begin trading on October 16 Eastern Time and the stock code is SETH. The SEC accelerated the approval of all long-term/traditional Ethereum futures ETFs, but set this ETF to take effect on the normal/expected date, a filing filed with other ETFs in August, analysts said.

7 . According to IntoTheBlock, the Ethereum blockchain's network fee revenue fell to its lowest level since April 2020, down 90% from its May high. The data shows that in the past 30 days, the supply of ETH tokens has increased by 33,500 ETH, worth about $52 million, due to low blockchain activity. Lucas Outumuro, head of research at IntoTheBlock, said the falling fees are testing ETH's 'ultra-sound money' theory and that network fee revenues are likely to remain low as speculative activity dries up and users continue to migrate to L2.

8 Bloomberg Senior ETF analyst Eric Balchunas tweeted that Invesco Galaxy has now updated its spot bitcoin ETF prospectus following ARK Invest's response to SEC comments. Other applicants are expected to update soon.

9 Bitwise CIO Matt Hougan said in an interview that demand for spot crypto ETFs will be 100 times higher than futures ETFs. According to Hougan, spot gold-backed ETFs manage about $100 billion in assets. Gold futures ETFs are effectively zero because the only ETFs that exist are closed due to lack of interest, so what investors want is spot Bitcoin and spot Ethereum ETFs, and they will use futures-based ETFs as a transition until they own these spot products.

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Consensys announced the acquisition of Special Mechanism Group (SMG), an institutional design firm known for focusing on blockchain microstructure research. Financial details of the transaction were not publicly disclosed. SMG will become a division of Consensys and will continue to operate under the SMG name, providing state-of-the-art mechanism design for Web3 users, builders and enterprises. Consensys said the addition of SMG represents a key step in Consensys' overall strategy to enhance its ability to deliver cutting-edge solutions to users and developers and make web3 accessible to all.

11. Bloomberg senior analysts Eric Balchunas and James Seyffart raised the probability of spot Bitcoin ETFs being approved by January 10 to 90%, Golden Finance reported.

12. According to Reuters, the SEC does not intend to appeal the Grayscale ruling, which is in line with the predictions of many industry insiders about the situation, and this decision will increase the possibility that the Grayscale Bitcoin Trust (GBTC) will be converted into a more investor-friendly ETF. It is reported that the SEC must decide whether to challenge the court's ruling by 12:00 p.m. ET on Friday. Reuters said the SEC will let that deadline come naturally without appealing. It's unclear how the SEC will handle Grayscale's application, and the agency still has the authority to reject it on grounds other than the grounds the court rejected.

13. Golden Finance reported that Gauntlet launched a proposal to deprecate the MAI/MIMATIC trading pair in the Aave community. Given that the MAI/MIMATIC price has fallen to about $0.72 in the last 24 hours and has not been able to revert the peg in the past few months, Gauntlet recommends starting to deprecate MAI/MIMATIC, with the goal of achieving this by reducing loan terms and raising borrowing rates to incentivize repayments, the proposal said. Currently, MAI/MIMATIC is frozen and LTV is set to 0.

14. Golden Finance reported that the New York Times reported on October 13 that U.S. government officials are closely monitoring certain cryptocurrency mining businesses linked to China due to national security concerns. One of the locations that authorities are reportedly monitoring is a crypto-mining operation in Wyoming near Microsoft's data centers, which support parts of the Pentagon's operations. In a report on the operation, Microsoft said: "Microsoft has no direct indication that this entity engaged in malicious activity. However, pending further evidence, we warn that industrial-grade crypto-mining, as well as the presence of an unknown number of Chinese citizens near Microsoft data centers and one of the three strategic missile bases in the United States, may pose a significant threat. ”

15. Golden Finance reported that in response to the question raised by X platform (formerly Twitter) netizens about "the deadline for the SEC to propose new reasons for rejection of the GBTC switch", Bloomberg analyst James Seyffart replied: "This is likely to be seen in the next week (or two weeks)." ”

On October 13, BlockFi CEO Zac Prince continued to testify at the criminal trial of former FTX CEO SBF. At one point, Prince said, BlockFi lent a total of $5 billion to $10 billion to its customers. Alameda Research initially borrowed $10 million in early 2021, but that amount eventually increased to $50 million in May 2021 and $1.1 billion in May 2022. The BlockFi executive noted that the company was also affected by other industry events, including the collapse of Luna and TerraUSD (which subsequently defaulted on loans to BlockFi by Three Arrows Capital) and the bankruptcy of Celsius and Voyager. Prince said that at one point, BlockFi tried to get FTX to buy it, according to mid-2022 reports. Although the acquisition didn't happen, Prince acknowledged that the arrangement with FTX influenced BlockFi's decision to lend the money to Alameda as a "data point." He doesn't admit that BlockFi lent Alameda solely because of this arrangement. Prince said that if he knew that FTX had lent Alameda billions of dollars, BlockFi would not have lent Alameda because it was "already insolvent." If he knew that Alameda was using funds belonging to FTX customers, BlockFi wouldn't have borrowed money because it wasn't appropriate.

17. Golden Finance reported, Bloomberg crypto analyst Jamie Coutts CMT commented on macro investor and Real Vision CEO Raoul Pal's tweet, agreeing with Raoul Pal, the market is too bullish on ETFs in the short term. They do establish an investment gateway for the cryptocurrency economy, but I think the integration of stablecoins has more to do for developing adoption and utility. Raoul Pal, a macro investor and CEO of Real Vision, said on social media that BTC and ETH ETFs are not a panacea for massive inflows when talking about mental models (see previous tweets on artificial intelligence). The way they are considered is that they are trade agreements between the crypto economy and the Tradfi economy that allow new FDI (foreign direct investment) into the crypto economy. Foreign direct investment will pour into the cryptocurrency economy only when investors are convinced that the return on investment will increase.

Source: Golden Finance