Here's a weekly recap from Metaverse.SG and the most notable crypto events this week were:
Solana Faces Setback: Lessons Learned
ERC-404's Rise and Current Challenges
Spot Bitcoin ETFs Hit $10 Billion Milestone
GOP Senators Criticize SEC's
Let’s dive headfirst into the main crypto news of this week!
Solana Faces Setback
The Incident and Suspicions
Solana faced a setback on Tuesday. It stopped working for almost five hours due to a major mistake. Matthew Sigel, an expert in digital money, suggested someone might have caused this mistake on purpose.
Recovery and Resilience
Thankfully, people fixed the problem, and Solana started working again. But now, they need to find ways to prevent this from happening again. Even though Solana had this problem, its money stayed strong, which is good news.
ERC-404's Rise and Current Challenges
Initial Excitement and Promises
Last week, everyone was talking about the new ERC-404 standard that took over the broadcast network. ERC-404 is a new experimental way of making tokens on the Ethereum blockchain. It tries to mix together two different kinds of tokens: ERC-20 tokens, which are like regular tokens, and ERC-721 tokens, which are special tokens called NFTs. One cool thing about ERC-404 is that it lets you trade NFTs on Uniswap by using the token as a kind of promise. The most exciting thing about ERC-404 was the Pandora project. At its best, it was worth $60! But, as with anything new, ERC-404 also faced some problems right away.
Current Struggles Amid Rising Ethereum Fees
However, recent developments have cast a shadow on ERC-404's trajectory. Ethereum's escalating fees have posed significant hurdles, hindering the platform's functionality. The surge in popularity of tokens like Pandora has further exacerbated the fee issue.
Pop Punk, an anonymous gas auditor, has voiced frustration over the soaring costs associated with ERC-404, igniting discussions about alternative platforms like DN404. Meanwhile, tokens associated with ERC-404, such as Pandora and DeFrogs, have witnessed substantial value declines, highlighting the challenges faced by the ecosystem.
Uncertain Future for ERC-404 and Its Projects
With these challenges mounting, the future of ERC-404 and projects like Pandora remains uncertain. The community is left wondering about the next steps amidst the evolving landscape of digital trading platforms.
Spot Bitcoin ETFs Reach $10 Billion AUM Milestone
Rapid Growth and Impressive Performance
In just 20 trading sessions, newly launched spot Bitcoin exchange-traded funds (ETFs) have achieved an outstanding milestone, accumulating $10 billion in assets under management (AUM).
Leading Funds and Market Dynamics
BlackRock’s iShares Bitcoin Trust leads the pack with $4 billion in Bitcoin holdings, closely followed by Fidelity’s Wise Origin Bitcoin Fund managing over $3.4 billion. Additionally, the ARK 21Shares Bitcoin ETF has also surpassed the billion-dollar mark.
Challenges and Contrasts with GBTC
Despite this success, Grayscale Bitcoin Trust (GBTC) experienced significant outflows of $6.3 billion over the past month, indicating shifting investor preferences.
Consolidation and Bullish Outlook
Bitcoin's consolidation above key support levels, coupled with ARK Invest's bullish outlook, suggests the cryptocurrency's resilience and potential for further growth as a risk-off asset in changing macroeconomic conditions.
GOP Senators Criticize SEC's Handling of 'DEBT Box' Crypto Case
Republican senators recently voiced strong criticism against the Securities and Exchange Commission (SEC) regarding its actions in the 'DEBT Box' crypto case.
Concerns Over False Information and Unprofessional Conduct
In this case, the SEC accused cryptocurrency company DEBT Box of orchestrating a fraudulent securities offering valued at a minimum of $49 million. Initially, the SEC successfully obtained a restraining order, effectively freezing DEBT Box's assets. However, the judge overseeing the case later reversed this decision, citing concerns about the SEC's conduct.
Doubts Raised about Credibility of SEC Enforcement Actions
The senators highlighted these concerns, labeling the SEC's actions as ‘unethical’ and "unprofessional." They pointed out instances of false information presented by the SEC and its failure to rectify inaccuracies. This has led the senators to raise doubts about the credibility of other SEC enforcement actions, potentially undermining public trust in the commission's ability to safeguard investors.
Call for Transparency and Accountability
In a letter addressed to SEC Chair Gary Gensler. They talked about how important it is for people to trust the SEC and think they are doing a good job. They asked for the SEC to be more open and honest about what they do when enforcing rules.