Sam Bankman-Fried found guilty on all counts, bitcoin bull Cathie Wood raises deflation concerns, and a global investment manager says there is a digital asset that could see a 100x return. Which one? Stick around. These stories and more, this week in crypto.
SBF Found Guilty on All Counts
Former FTX CEO Sam Bankman-Fried was found guilty on all seven charges brought against him; including wire fraud, securities fraud, and money laundering, in one of the largest financial fraud cases in history. A Manhattan federal court jury convicted him in just five hours on charges that he stole $8 billion from the exchange’s users. SBF now awaits sentencing and faces up to 110 years in prison.
Record Weekly Inflow into Crypto
Digital asset investment products, like Bitcoin futures ETFs have seen the largest weekly inflows since July 2022. The funds brought in $326 million as expectations rose that the US Securities and Exchange Commission is poised to approve a spot Bitcoin exchange traded fund. The largest inflows this week came from Canada, Germany and Switzerland, with the US accounting for 12% of those inflows.
PayPal Receives SEC Subpoena
The US Securities and Exchange Commission has issued a subpoena to PayPal in regards to its dollar-pegged stablecoin, PYUSD. PayPal launched the stablecoin in August and it is fully backed by US dollar deposits, short-term Treasuries and similar cash equivalents. The coin currently has a market capitalization of around $150 million.
Plans for X Revealed
Elon Musk revealed his plans to transform his social media platform, X into a comprehensive financial hub. Musk aims to introduce new financial services next year, envisioning a platform that encompasses every aspect of users’ financial lives, including money and securities. Musk didn’t specify the involvement of blockchain, but said that with X, you won’t need a bank account.
Hong Kong’s Crypto Vision in Progress
Visa, HSBC, and Hang Seng Bank achieved a milestone with their Digital Hong Kong Dollar pilot program, delivering faster payments, enhanced risk management, and improved transaction transparency. Hong Kong’s Financial Secretary said that the recent JPEX scandal, that involved 2500 citizens being defrauded of $165 million will not hurt the city’s long term crypto vision.
Argentina Utilizes Energy to Mine Bitcoin
Argentina is considering the idea of merging bitcoin and energy management aligning with an emerging global trend. Sergio Massa, Argentine presidential candidate, proposes utilizing the abundant natural gas in Vaca Muerta to fuel bitcoin mining machines. The plan seeks to repurpose excess gas which is currently wasted, into electricity to power bitcoin mining operations.
Cathie Wood: Bitcoin is the New Hedge
Ark Invest head Cathie Wood believes deflation could be a bigger threat than inflation but that Bitcoin can serve as a hedge against both. When asked about her choice for the next 10 years—gold, cash, or Bitcoin—Wood firmly chooses Bitcoin, saying gold already has its demand, while Bitcoin is new and digital, saying that younger generations would prefer to hold Bitcoin than gold.
VanEck Predicts 10,600% Solana Price Increase by 2030
Solana’s native SOL token surged over 30%, as it gained attention from large asset management firms. Global investment manager VanEck presented various price scenarios, from a conservative $9 to a bold $3,200, implying a potential 10,600% price increase by 2030. The report explores the possibility of Solana accommodating applications with over 100 million users in the next few years.
That’s what’s happened this week in crypto, see you next week.