Crypto & Blockchain Daily Brief Wednesday, February 14, 2024

Peter Schiff, a prominent gold bug and Bitcoin critic, has called the recent surge in the price of Bitcoin a "pump and dump" scheme. Schiff took to Twitter to express his skepticism about the cryptocurrency, stating that the recent rally was driven by market manipulation and not organic demand. Schiff's comments come as Bitcoin saw a significant increase in value, reaching its highest level since January 2018. The cryptocurrency surged above $13,000, sparking excitement among investors and prompting speculation about a potential bull market. However, Schiff argues that the rally is not sustainable and predicts that Bitcoin will eventually crash. He believes that the recent surge is the result of market manipulation by "whales" who are looking to pump up the price before dumping their holdings on unsuspecting investors. Schiff's criticism of Bitcoin is not new. He has long been a vocal critic of the cryptocurrency, often comparing it to a speculative bubble. He believes that Bitcoin has no intrinsic value and is only valuable because people believe it is. In his view, Bitcoin is a speculative asset that will eventually collapse, leaving investors with significant losses. Despite Schiff's skepticism, Bitcoin has been steadily gaining mainstream acceptance and adoption. Major companies like PayPal and Square have begun offering Bitcoin services, and institutional investors have started to allocate funds to the cryptocurrency. Additionally, several countries are considering or have already implemented regulations to support the development of the cryptocurrency industry. While Bitcoin's price has been volatile, with significant ups and downs, it has also proven to be a resilient asset. It has survived multiple crashes and bounced back stronger each time. Whether Schiff's predictions will come true remains to be seen, but for now, Bitcoin continues to gain momentum and attract more attention from investors and institutions alike.

Solana's total value locked (TVL) has surpassed $1.8 billion for the first time since 2022. Solana is a high-performance blockchain platform that aims to provide fast, secure, and scalable solutions for decentralized applications (dApps). TVL is a metric that measures the total amount of assets locked in a particular blockchain ecosystem. The surge in Solana's TVL can be attributed to several factors. One of the main reasons is the increasing popularity of decentralized finance (DeFi) applications built on the Solana network. DeFi allows users to access traditional financial services such as lending, borrowing, and trading without the need for intermediaries like banks. These applications have gained significant traction as they offer users higher yields and lower fees compared to traditional financial institutions. Another factor contributing to Solana's TVL growth is the network's scalability and low transaction fees. Solana's unique architecture allows it to handle a high volume of transactions per second, making it an attractive choice for developers and users alike. Additionally, the low transaction fees on the Solana network make it more cost-effective for users to interact with dApps. The growth in Solana's TVL is a positive sign for the ecosystem as it indicates increased adoption and usage of the network. It also reflects the confidence that users have in the platform's technology and its ability to deliver on its promises. As Solana continues to gain traction, it is expected that the TVL will continue to increase. The platform's strong performance and growing ecosystem make it an attractive choice for developers and users looking for a scalable and efficient blockchain solution. With its recent milestone, Solana is well-positioned to compete with other leading blockchain platforms and further establish itself as a key player in the decentralized finance space.

Franklin Templeton, a major asset management firm with over $1.4 trillion in assets under management, has filed for an Ethereum exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). This move further demonstrates Wall Street's increasing interest in cryptocurrencies. The filing comes after the recent approval of the first Bitcoin ETF in the United States. The approval of more cryptocurrency ETFs could provide retail investors with easier access to the digital asset market. Franklin Templeton's ETF, called the Franklin Exponential Data ETF, aims to provide exposure to Ethereum by investing in Ether (ETH) futures contracts and other financial instruments. The fund will track the performance of the CME CF Ether Reference Rate, which is an index that reflects the real-time price of ETH. The ETF will allow investors to gain exposure to Ethereum without directly owning the cryptocurrency. It will give them the opportunity to benefit from potential price increases in ETH without the need to set up a digital wallet or manage the security of their holdings. The filing also indicates that the ETF may invest in other cryptocurrencies, digital assets, or companies related to the cryptocurrency ecosystem. This suggests that Franklin Templeton may expand its exposure beyond Ethereum in the future. If approved by the SEC, the Franklin Exponential Data ETF would join a growing list of cryptocurrency ETFs in the market. The approval of more ETFs could attract institutional and retail investors, potentially boosting liquidity and adoption in the cryptocurrency market. Overall, Franklin Templeton's filing for an Ethereum ETF highlights the increasing interest and acceptance of cryptocurrencies by traditional financial institutions. As more institutions enter the market, it could further legitimize and solidify the position of cryptocurrencies as a viable asset class.

Ripple, the blockchain payments firm, is reportedly in talks to acquire a New York-based cryptocurrency trust company in order to expand its options in the US. The company is said to be in discussions with a number of trust companies, with the aim of acquiring one that already has a BitLicense, a license issued by the New York State Department of Financial Services to companies that operate in the cryptocurrency space. This would enable Ripple to offer a wider range of services to its US customers. The acquisition would also give Ripple a foothold in New York, which is known for its strict regulatory environment. The move comes as Ripple faces increasing scrutiny from regulators in the US, with the SEC recently filing a lawsuit against the company alleging that it conducted an unregistered securities offering through the sale of XRP tokens. Ripple has denied the allegations and is currently fighting the lawsuit. The acquisition of a trust company could help Ripple to navigate the regulatory landscape more effectively and expand its offerings in the US. It could also help the company to build relationships with traditional financial institutions, which are required to work with regulated custodians when holding cryptocurrency assets on behalf of their clients. Overall, the acquisition of a trust company would likely be a strategic move for Ripple as it seeks to strengthen its position in the US market and navigate the evolving regulatory environment.

The sentencing for Binance founder Changpeng Zhao (CZ) has been rescheduled for April 30th, 2023. CZ was previously scheduled to be sentenced on April 20th, 2023, but the date was pushed back due to a delay in the trial process. CZ was charged with multiple counts of conspiracy to commit securities fraud, wire fraud, and money laundering. The charges stem from his alleged involvement in a scheme to manipulate the price of a digital asset listed on the Binance exchange. According to the indictment, CZ and several other individuals conspired to artificially inflate the price of the digital asset by engaging in wash trading and other manipulative tactics. The indictment alleges that CZ personally profited from the scheme by selling large amounts of the digital asset at inflated prices. CZ has denied the charges and maintains his innocence. In a statement released after his arrest, CZ said, "I have always acted with integrity and in the best interests of our users. I am confident that I will be exonerated of these charges." The trial has been closely watched by the cryptocurrency community, as CZ is one of the most prominent figures in the industry. Binance is one of the largest cryptocurrency exchanges in the world, and CZ has been a vocal advocate for the adoption of blockchain technology. If convicted, CZ could face significant fines and potentially a lengthy prison sentence. However, it is worth noting that the outcome of the trial is uncertain, and CZ is innocent until proven guilty. The rescheduled sentencing date gives CZ and his legal team additional time to prepare their defense and gather evidence. It also allows for any further delays that may occur in the trial process.