A Guilty Verdict ⏳ The Final Countdown
Mango markets exploiter guilty of $110 million fraud. Bitcoin halving arrives, tonight. Bitcoin hodlers move $1.7B into accumulation wallets. Wright gives up Bitcoin fight. Jamie Dimon don't dig BTC.
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Crypto goes in red after news broke of Israeli missile strikes on Iran.
Bitcoin falling below $60k and Ether dropping below $2,900.
Investors are fleeing risky assets fearing a wider conflict?
Then comes the rebound.
Bitcoin above $64K.
Ethereum back over $3K.
We know why
What will Bitcoin do this halving? The setup ain't all that good.
Historically, Bitcoin halvings have been followed by price increases, but this time may be different.
Bitcoin halving is expected to cause a sell-off due to poor macroeconomic backdrop, recent gains, and selling by Bitcoin miners.
What happened to the Mango Markets dude?
Mango Markets exploiter Avraham "Avi" Eisenberg is facing up to 20 years behind bars after a jury found him guilty of exploiting DeFi platform Mango Markets for $110 million.
Eisenberg's defense argued
He used a "legal trading strategy" within the existing code of Mango Markets.
"Code is law" - anything allowed by the platform's code is permissible.
Prosecutors argued
Eisenberg manipulated the market and stole $115 million worth of crypto.
His actions, like fleeing to Israel, suggest he knew it was wrong.
"Code is law" doesn't absolve him of existing laws like fraud and manipulation.
After a two-week trial, they convicted Eisenberg of wire fraud, commodities fraud, and manipulation.
A little flash back
In October 2022, Eisenberg, a crypto trader, allegedly manipulated the price of Mango Markets' token, MNGO, to inflate its value. Then, he used this super-sized MNGO as collateral to borrow a massive amount of crypto from Mango Markets with, according to prosecutors, no intention of paying it back.
Eisenberg did return $67 million to Mango Markets, and the platform's community even voted to let him keep $47 million.
What's next? Sentencing is set for July 29th. Eisenberg could be spending a long time in prison.
This verdict is a big deal for DeFi
Legal Precedent for DeFi Exploits: It suggests that manipulating DeFi protocols for personal gain, even if through vulnerabilities in the code, can be considered fraud and market manipulation. This could lead to more criminal charges against similar activities in the future.
Increased Scrutiny for DeFi Platforms: Regulators and law enforcement might pay closer attention to DeFi platforms. This could lead to increased scrutiny of DeFi protocols and their code for vulnerabilities. Platforms might also face pressure to implement stricter security measures.
Block That Quote 🎙️
JP Morgan CEO Jamie Dimon
"If you mean crypto like Bitcoin, I've always said it's a fraud. It's a public decentralised Ponzi scheme."
Don't call it a comeback. Dimon is back with his greatest hits, Bitcoin hate in a recent interview.
This isn't exactly new territory for Dimon, who's known for his skepticism towards Bitcoin. But hey, consistency is key, right?
But then, for some, the complaint is too much centralisation.
Bitcoin is moving towards centralised paradox - Kadan Stadelmann, the CTO of Komodo.
Bitcoin's supposed freedom from control might be a fading dream, according to Stadelmann. Here's why …
A small number of mining pools control a huge chunk of Bitcoin's processing power.
Mining pools complying with government regulations raise questions about true decentralisation.
Major institutions like BlackRock investing in Bitcoin mining adds another layer of centralisation.
Bitcoin Halving Impact on Miners, Big And Small
The Bitcoin halving is almost here, and its gonna have an impact.
1. Miners, big and small
Miners get less Bitcoin for their work, forcing everyone to tighten their belts.
Big miners have the efficient rigs and financial backing to weather the storm.
Small miners' less powerful machines and higher costs could make mining unprofitable.
Well-funded miners might go shopping for struggling competitors.
2. Mining stocks
Mining stocks have been down due to uncertainty about profitability after the halving reduces block rewards. Mining stocks might outperform Bitcoin after the dust settles, as investors assess company fundamentals.
3. Regulation
Halving might not directly change regulations, but it could put crypto back in regulators' sights.
Here's why
Increased Scrutiny: The halving could trigger higher volatility and media attention, potentially prompting regulators to consider action.
Energy Consumption: Less efficient miners may be squeezed out, leading to concerns about the environmental impact of Bitcoin mining.
4. Of course, the price
Historically, halvings have been followed by price increases, though it might take time.
But JPMorgan and Goldman Sachs doesn't have much hope about the hike this time.
In the Numbers 🔢
$1.7 billion
Bitcoin dips? no problem for long-term holders
In fact, they went on a buying spree, adding $1.7 billion worth of Bitcoin to their stashes.
This fire sale saw 27,700 Bitcoin move into long-term storage wallets, the highest amount ever recorded in a single day.
These "accumulation addresses" hold Bitcoin for the long haul, with no recent withdrawals and balances over 10 BTC.
Craig Gives Up?
Craig Wright, the self-proclaimed inventor of Bitcoin, appears to be throwing in the towel.
He's withdrawn his lawsuit against Bitcoin developers after a UK court ruled he's not Satoshi Nakamoto.
This follows a March court decision denying Wright's claim to be Satoshi and the Bitcoin white paper author.
Bitcoin developers can now work on the network without fear of Wright's lawsuits.
The Surfer 🏄
Bettors are slashing their odds of a new Bitcoin price record this month due to the upcoming halving. Chance of Bitcoin exceeding $73,700 by April's end is now just 14%, down a whopping 66% since April 8th.
BitMEX has increased the leverage on its bitcoin perpetual swap from 100x to 250x ahead of the halving event. The increased leverage aims to allow traders to profit from the volatility surrounding the halving.
DeFi TVL reached $100 billion in the first quarter of 2024. Ethereum liquid restaking played a significant role in driving this growth. Protocols like Lido and EigenLayer contributed to the resurgence of DeFi TVL.
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