Huge Burning of 1.6 Billion Shiba Inu in April Fails to Cause Price Rising

Audy Castañeda
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Huge Burning of 1.6 Billion Shiba Inu in April Fails to Cause Price Rising

The total number of Shiba Inu burned in April exceeded 1.6 billion. SHIB maintained the second largest market capitalization.

The volume of Shiba Inu [SHIB] burned in April amounted to billions. However, this substantial burn did not translate into a notable price impact.

Additionally, a significant decrease in the number of active addresses associated with Shiba Inu was observed during the same period.

Billions of Shiba Inu Withdrawn from Circulation

Recent data from @shibburn indicated that in April, more than 1.6 billion Shiba Inu tokens were burned in 204 transactions. Further analysis revealed that a substantial amount of SHIB tokens, over 410 billion, are currently held in null addresses. By contrast, approximately 582 billion tokens remain in circulation.

SHIB burn tracker @shibburn explained the following on X:

“Most of the $SHIB that were burning this month were being sent to the Contract Address. This isn’t due to any big news or anything as many reported… it’s just folks making mistakes, sending their tokens to the CA and losing their investments as a result. Be careful and double-check where you send your tokens so it doesn’t happen to you!”

Recently, the total number of tokens burned was 2.3 million. Despite this significant burn rate, it appears that the reduction in the volume of SHIB tokens in circulation has not noticeably impacted the total volume remaining in circulation.

SHIB Price Trend Fell in April

AMBCrypto analysis of the daily time chart revealed a drop in Shiba Inu price during April from the previous month. The analysis indicated that SHIB began trading in April at around $0.000028, experiencing an initial drop of over 6.8%.

Throughout the month, the price continued its downward trend, causing the short moving average (yellow line) to move from a support level to a resistance level.

This change indicated poor performance for SHIB as it was trading below the yellow line. By the end of April, the price had fallen to approximately $0.0000022, reflecting a drop of over 7%.

Recently, analysis using the price range tool showed that SHIB had lost more than 26% of its value from the beginning of April to the present. Despite significant token burns during the month, the price trend suggests that these burns did not have a substantial impact on the value of SHIB.

Active Addresses Experienced a Significant Decrease

The number of 30-day active addresses saw a notable increase throughout March, with an observed average of around 280,000. However, graph analysis revealed a significant decline in April, with the number falling to approximately 125,000 by the end of the month.

According to the latest data, the number of Shiba Inu active addresses was around 124,000. Similarly, an examination of daily active addresses also indicated a decline, with approximately 4,800 active addresses registered so far.

Despite its lackluster price performance, Shiba Inu has managed to maintain its position as the second largest memecoin. According to data from CoinMarketCap, SHIB’s market capitalization was over $12.4 billion at the time of writing. A look at the rankings revealed that its market capitalization exceeded that of the next seven memecoins combined.

SHIB in May

According to CryptoPredictions, Shiba started in May 2024 at $0.000000001617866 and is predicted to finish the month at $0.000000000354742. During May, the maximum forecasted SHIBA price is $0.000000000455814 and the minimum price is $0.000000000309954.

The SHIBA Price is forecast for today (02.05.2024) to be in the $0.000000000256814 – $0.000000000377668 price range. Shiba is predicted to end today at $0.000000000302134.

By Audy Castaneda

‘East vs West:’ How Hong Kong Bitcoin ETF Can Cover US Losses, Execs Say

Leonardo Perez
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‘East vs West:’ How Hong Kong Bitcoin ETF Can Cover US Losses, Execs Say

The ETF’s debut in Hong Kong generated a record daily trading volume of $12.4 million. $141M Inflows to Hong Kong Bitcoin ETFs Will Decrease US Negative Flows

On the first day of trading, April 30, Hong Kong ETFs reached a total of $12.4 million in trading volume.

First-day performance was reportedly strong in terms of AUM (assets under management), especially for ChinaAMC, which earned over $141 million in AUM.

Reacting to the performance, Bloomberg analyst Eric Balchunas noted that the $12.4 million was significant when translated into US equivalents. Part of his post on X (formerly Twitter) reads as follows:

“In total $12.4 million was traded, A LOT for that market: the equivalent of $1.6 billion in the US. Although the assets are much stronger: China AMC reports $141 million in assets (equivalent to $22 billion in the US) with $121 million in BTC and $20 million in ETH, so ETH took 14%.”

Bitcoin Performance Against Ethereum

Hong Kong saw the debut of six spot Bitcoin [BTC] and Ethereum [ETH] ETFs, the first of their kind in the Asian region. The six products came from ChinaAMC, Bosera, Hashkey and Harvest. However, the first day results show that Bitcoin gained more volume and AUM.

In the case of ChinaAMC, Bitcoin dominated with $121 million in assets (86%) compared to ETH’s $21 million.

In terms of trading volume, Bosera Hashkey Bitcoin ETF recorded HK$12.44 million, while its ETH ETF earned HK$2.48 million during the first day of trading.

For Harvest, BTC ETF spot volume reached HK$17.89 million, while ETH ETF earned HK$4.95 million. Ergo, a similar pattern was recorded across three issuers, BTC had more trading volumes than ETH.

However, ChinaAMC dominated the overall trading volumes on the first day and accounted for over 55% of the total BTC turnover.

After adjusting performance to US BTC spot ETFs, Balchunas stressed that Hong Kong’s debut was a remarkable performance:

“East vs West: The US did $740m in assets and $4.6b in trading. These are far below that but if you adjust for the size of their mkt it is dif story: equiv of $25b+ and $1.6b, respectively. For context, China AMC’s bitcoin ETF is already among Top 20% biggest in that mkt after one day.”

The first-day performance of the Hong Kong Spot Bitcoin ETF pales in comparison to its US counterparts on the same metric. However, Balchunas emphasized that the $141 million inflows from Hong Kong Bitcoin ETFs will help offset current negative flows from the United States.

According to a survey conducted on April 28 by Hong Kong-regulated cryptocurrency exchange OSL, 76.9% of cryptocurrency-savvy respondents in the city plan to invest in the new Bitcoin and Ether ETFs. “This positive investor sentiment strongly points to the growing acceptance and importance of digital assets in the region’s economy, with Hong Kong once again marking its place as a digital asset powerhouse,” commented the CEO and head of OSL Regulatory Affairs, Gary Tiu.

Despite the enthusiasm, Hong Kong cryptocurrency ETFs remain accessible only to the city’s 6.4 million adult residents. Mainland Chinese investors, who number more than 1 billion, cannot access the new ETFs unless they have a residence permit in Hong Kong.

BTC price retested the range low around $60,000 again. More volatility is expected because this week is full of action. Notably, the FOMC meeting and the quarterly US Treasury refund will take center stage in a few hours, offsetting crypto trends for the second half of 2024.

By Leonardo Perez

DeFi Losses Reach $336 Million in the First Quarter of 2024

Audy Castañeda
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DeFi Losses Reach $336 Million in the First Quarter of 2024

In the first quarter of 2024, DeFi platforms lost $336 million due to hacks and fraud, while CeFi platforms reported no losses. The openness and accessibility of DeFi make them vulnerable since their codes are public and vulnerabilities can be easily discovered. Despite a 23.1% decrease in losses compared to last year, security issues in DeFi remain an issue.

DeFi platforms record losses of a whopping $336 million in the first quarter of 2024. Unfortunately, these losses are not due to the market but to crypto hacks and scams.

Meanwhile, centralized platforms (CeFi) remained completely intact. DeFi’s high losses, coupled with the sharp divergence with the CeFi sector, raise questions about security and also make mass adoption more distant.

Compared to 2023, DeFi Losses Are Smaller, Although Still Too High

While decentralized finance (DeFi) represents openness and accessibility, these same characteristics also make it vulnerable to scammers. The underlying codes are freely accessible and allow hackers to easily identify vulnerabilities.

On the contrary, the systems of centralized institutions are more difficult to access, which makes them more secure. According to a recent study by Immunefi, losses suffered from hacks and scams reached a staggering $336 million in the first quarter of 2024.

As security firm CertiK noted in early April, losses caused by criminal activities in all crypto sectors combined reach even more than $500 million. Last year, such DeFi losses amounted to $437,483,543.

Although a decrease of 23.1% can be observed compared to the first quarter of 2023, the damage is still often too high. Meanwhile, the CeFi sector recorded impeccable statistics during this period.

DeFi: Causes and Consequences of Security Deficiencies

The freedom of the DeFi sector allows anyone to interact with protocols and launch new smart contracts without going through strict audits. While this promotes innovation, it also makes it easier to inject malicious code.

Centralized facilities rely on proprietary technologies and regulatory compliance to protect their assets. You will benefit from established security practices, such as regular audits, strict access controls, and comprehensive incident response plans. These measures are often missing in the ever-evolving DeFi landscape. The constant innovation of DeFi is producing new protocols and features that promote innovation in the ecosystem.

However, the need for rapid development and maintaining an initial competitive advantage often puts security considerations on the back burner. CeFi institutions, on the other hand, take a slower and more deliberate approach.

They leverage years of experience and established cybersecurity practices to protect customer assets and maintain system integrity. They invest heavily in security measures and regularly undergo extensive security audits by independent third-party vendors.

If DeFi does not integrate security into every phase of development, the constant battle between hackers and developers will continue, putting user funds and the integrity of the ecosystem at risk. Therefore, the young financial sector must undergo a fundamental change and integrate security in all aspects, from the development of smart contracts to the design of interfaces.

DeFi: Developers Status

Developers should prioritize user protection and invest in audits, bug bounty programs, and robust response plans. While the emergence of a new generation of Web 3.0-native security companies offers hope, their solutions have not yet been tested at scale.

Significant and lasting security improvements may not be feasible in the near future, as inherent trade-offs between decentralization, accessibility, and robust security measures remain. The onus is on the platforms to demonstrate a commitment to security as a fundamental principle of their operations.

By Audy Castaneda

US Department of Justice Charged Investor Roger Ver with Tax Fraud

Leonardo Perez
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US Department of Justice Charged Investor Roger Ver with Tax Fraud

Roger Ver, known as “Bitcoin Jesus”, is accused of $48 million tax fraud. He faces charges of mail fraud, tax evasion and filing false returns. Arrested in Spain, the US requests extradition. He is also being sued by Genesis and CoinFex.

This Tuesday, officials from the United States Department of Justice (DOJ) announced charges against one of the first investors in Bitcoin startups, Roger Ver, popularly known by many as the “Bitcoin Jesus.”

Through a statement published on April 30, the US Department of Justice indicated that authorities in Spain had arrested Roger Ver, alleging various criminal charges in the United States, including mail fraud, tax evasion and filing false tax returns.

Additionally, the US government noted that Roger Ver defrauded the Internal Revenue Service (IRS) of approximately $48 million by failing to report capital gains on his sale of Bitcoins and other assets.

Likewise, according to the indictment filed on February 15, but revealed on Monday, Roger Ver allegedly took control of approximately 70,000 BTC in June 2017, before the now famous bull run, and sold many of them for $240 million.

“As a result of his expatriation, Roger Ver was required under US law to file tax returns reporting capital gains from the constructive sale of his assets worldwide, including Bitcoins, and to report the fair market value of their assets,” the DOJ said.

Despite not being a US citizen during 2017, Roger Ver was still legally required to report to the IRS and pay taxes on certain distributions, which he allegedly failed to do, causing considerable losses to the IRS. Because of this, DOJ officials said they plan to extradite Roger Ver from Spain to the United States for trial.

From “Bitcoin Jesus”, to Being Accused of Fraud: Roger Ver Faces Charges in the United States

Roger Ver obtained citizenship in Saint Kitts and Nevis in 2014, although he shortly after renounced it, in a process known as expatriation. This action subjected him to US tax laws, including reporting capital gains from the sale of his assets around the world, including Bitcoins, and paying an “exit tax” on those gains.

Ver’s legal problems increased after he renounced his US citizenship in 2014, after acquiring citizenship in St. Kitts and Nevis. Consequently, he was required to declare capital gains on his global assets, including 131,000 BTC, valued at about $871 each at the time.

Ver was a strong proponent of Bitcoin Cash. Furthermore, in 2022, Roger Ver was involved in a scandal with the crypto platform CoinFlex, which claimed that he owed them $47 million.

Roger Ver recently expressed in X that “Don’t expect bad people to do good things.” He has been involved in the Bitcoin community since its early days, when he was supposedly giving away BTC for free, earning him the nickname “Bitcoin Jesus.” However, he then went on to promote the Bitcoin Cash (BCH) fork and has since attempted to grow the fork and its crypto community, stating that “BCH is the “true Bitcoin.”

Reactions to Ver’s Arrest

Cryptocurrency investor Dan Held, former Head of Marketing of the popular exchange Kraken, stated in X that Ver “deserves everything he is about to receive”, this, after “almost destroying Bitcoin.”

“Roger Ver attacked my livelihood by trying to get me fired, called others to damage my relationships, and attacked my reputation,” Held expressed in X, adding that “It misaligned expectations around Bitcoin so much that it led to a civil war.”

By Leonardo Perez

Unrealistic demands? Crypto Figure Says Consensys Might ‘Need Prayers’

Audy Castañeda
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Unrealistic demands? Crypto Figure Says Consensys Might ‘Need Prayers’

One crypto figure deemed Consensys’ demands unrealistic amid the discussions.

Ethereum (ETH) has faced some regulatory turmoil amid rumors of a rejection of ETH spot exchange-traded funds (ETFs) in May.

The second-largest cryptocurrency has also been in the spotlight after a key component of its ecosystem, Consensys, sued the US Securities and Exchange Commission (SEC) for “unlawful appropriation of authority” over the asset.

The lawsuit sparked different conversations, including SEC regulatory inconsistencies and speculation about the relationship between the US agency and people close to Ethereum.

Does Consensys Need Prayers?

On April 25, blockchain software company Consensys filed a lawsuit against the US SEC, seeking a court ruling declaring that ETH is not a security. The news opened widespread discussion among members of the crypto community about the implications of the lawsuit. Additionally, it reignited the discussion over ETH Gate, in which Ripple CTO David Schwartz and Cardano founder Charles Hoskinson had a heated exchange over X.

Pseudonymous crypto detective Dr. Huber shared the “Prayer for Relief” section of the lawsuit, stating that the software company “really needs some prayers.” In addition to classifying Ethereum as a non-security, Consensys is praying for the court to declare that any investigation or enforcement by the company into ETH transactions classified as a security would exceed the authority of the SEC.

Similarly, the firm demands that any action against the company based on its operation as a “broker” under the Exchange Act through its MetaMask wallet be outside the SEC’s authority.

Additionally, Consensys is seeking a “permanent injunction prohibiting the SEC and its officers and agents from conducting any investigation or enforcement action” related to the staking trading features of its MetaMask software.

According to the crypto figure, the possibility of a court granting a company and its subsidiaries “a general and permanent free pass for life against SEC Securities investigations” is minimal.

The crypto detective believes that the approval of Consensys’ applications would mean that “no ETH transaction could ever be considered an offering of securities,” which reduces the likelihood of a ruling in favor of the company.

Unclear Regulatory Framework for Cryptocurrencies

The regulator’s classification of Ethereum is one of the issues where clarity is lacking. Under former SEC Chairman Jay Clayton, the second-largest cryptocurrency was not considered a security.

Additionally, in his 2018 speech, former Director of the Division of Corporate Finance Bill Hinman classified Ethereum and Bitcoin as non-securities. However, recent reports allege that the regulator has considered ETH an “unregistered security” for over a year. The SEC has apparently been investigating the status of cryptocurrencies with an “unusual secrecy” since March 2023.

The final classification of digital assets as securities could have significant implications for the cryptocurrency industry. The Consensys lawsuit has highlighted the SEC’s unclear regulatory framework.

The agency’s inconsistency was pointed out by Financial Services Committee Chairman Patrick McHenry. In a statement Tuesday, Chairman McHenry claimed that current SEC Chairman Gary Gensler “knowingly misled Congress.”

According to the statement, Gensler refused to answer questions about the SEC’s classification of ETH, showing an “intentional attempt to misrepresent the Commission’s position.”

Gensler further added that “An adverse ruling would contradict previous SEC guidance and expand the agency’s regulatory oversight. Similarly, I would also question the Commodity Futures Trading Commission’s (CFTC) classification of the asset as a commodity. Ultimately, it would show “yet another example of the arbitrary and capricious nature of the agency’s regulation through the law enforcement approach to digital assets.”

By Audy Castaneda

Bitcoin Price in April: Reasons for Its Drop, and What’s Next

Leonardo Perez
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Bitcoin Price in April: Reasons for Its Drop, and What’s Next

Bitcoin fell to a one-week low of $61,928 in early trading before recovering slightly to $62,387, down about 2%.

Bitcoin and the broader cryptocurrency market faced a slowdown on Monday, driven by anticipation of a major Federal Reserve meeting later this week.

As investors speculated about the implications of the meeting, the possibility of a longer period of higher interest rates created uncertainty, prompting a sell-off.

Upcoming Federal Reserve Interest Rate Announcements

The Federal Reserve is scheduled to announce its interest rate decision on May 1, with a 95.6% probability of keeping rates unchanged. However, speculation surrounding the outcome of the meeting has fueled debate among market participants as higher interest rates are often seen as a headwind for risky assets, including cryptocurrencies.

The United States will also announce the unemployment rate for April on May 3, providing more information about the health of the economy and potentially influencing future decisions by the Federal Reserve.

Bitcoin’s Recent Performance

Bitcoin’s gains in 2024 have slowed from over 70% in mid-March to over 47%, with the cryptocurrency hitting a record high of nearly $74,000. The market is now assessing whether Bitcoin can maintain its momentum, especially in light of the upcoming Federal Reserve announcement.

Various other factors such as market sentiment, geopolitical events, and institutional interest also influence Bitcoin’s performance.

Dramatic Yen Volatility Welcomes FOMC Week

Significant macroeconomic events continue this week with the upcoming interest rate decision by the US Federal Reserve.

While markets are not expecting any surprises from the latest Federal Open Market Committee (FOMC) meeting, recent macroeconomic data has worried risk asset bulls. They fear that lower rates will arrive much later than anticipated at the beginning of the year, as shown in estimates from CME Group’s FedWatch tool.

It’s not just the FOMC; Headlining the week’s macro events is Fed Chair Jerome Powell’s accompanying commentary on May 1, followed by jobless claims and unemployment data on May 2 and 3, respectively.

For Bitcoin and risk assets, however, not everything can be so bad, unless opinions favor a significant worsening of economic circumstances.

Potential Implications for the Crypto Market

A tough stance on interest rates from the Federal Reserve could lead to further declines in the cryptocurrency market, as higher rates may deter investment in riskier assets. On the contrary, a dovish tone could bring relief to some, which could lead to a rally in Bitcoin and altcoins.

Popular crypto analyst Rekt Capital noted on X that Bitcoin has fallen from the $65,500 resistance, indicating that it is now trading in a “no man’s land,” between resistance and a liquidity pool below, which has caused bounces in the past.

Another key observation comes from Bitcoin Power Law model creator Giovanni Santostasi, who predicted a peak for Bitcoin in November 2025 at $218,875, suggesting the potential for a significant rally if conditions align.

Upcoming Opportunities for Bitcoin

Despite the recent recession, Bitcoin could find support near the $62,400 level. Failure to hold this support could lead to further declines, possibly to $61,200 or lower.

On the other hand, a successful rebound from this level could signal a recovery, with the potential to test resistance near $64,000 and eventually reach higher levels around $65,000 or even $66,200.

Crypto influencer Ash Crypto noted that while Bitcoin is consolidating, Ethereum is gaining momentum, indicating that capital may flow from Bitcoin to Ethereum. This change could impact Bitcoin’s performance in the short term, particularly if Ethereum spot ETFs are approved, which could trigger a surge in ETH prices.

By Leonardo Perez

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