Kategorie: Crypto Markets

• Nasdaq has filed a 19b-4 form for the proposed Canary Litecoin ETF.
• The SEC recently asked Canary Capital to amend the S-1 form of the proposed Litecoin ETF.
• The initial filing for the Canary Litecoin ETF was made in October 2024.

Nasdaq has taken a pivotal step by filing a 19b-4 form for the proposed ‘Canary Litecoin ETF,’ signaling the start of the US Securities and Exchange Commission (SEC) review process.

This filing comes just after Canary Capital amended its S-1 form, completing the necessary duo of documents required for the SEC’s consideration.

The 19b-4 form, submitted on Wednesday, outlines that US Bancorp Fund Services, LLC will act as the administrator for the ETF, with US Bank N.A. tasked with managing the fund’s cash assets. The custody of the actual Litecoin for the ETF will be handled by Coinbase Custody Trust Company LLC.

Canary Litecoin ETF is part of the growing list of proposed crypto ETFs

This move by Nasdaq and Canary Capital is part of a broader trend where multiple firms are pushing for spot ETFs based on various cryptocurrencies, including Solana and XRP, amidst speculation that the incoming Trump administration could be more favourable towards crypto regulations.

The SEC has previously given the green light to Bitcoin ETFs in January 2024 and Ethereum ETFs later that year, paving the way for other crypto-based financial products.

Bloomberg Senior ETF Analyst Eric Balchunas has expressed optimism about the Litecoin ETF’s prospects, stating on X that feedback from the SEC on the S-1 form bodes well for approval. However, he also noted that the imminent change in SEC leadership could introduce significant variables.

Gary Gensler’s tenure as SEC Chair concluded on Monday, and President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner known for his crypto-friendly views, to take over. The confirmation hearing for Atkins might occur in March, potentially influencing the regulatory climate for cryptocurrencies.

Canary Capital’s initial filing for the Litecoin ETF occurred in October 2024, marking the beginning of this regulatory journey.

With the 19b-4 and S-1 forms now in place, the focus shifts to the SEC, where the process will unfold over the coming months. This filing is a critical milestone in potentially bringing Litecoin to mainstream investors through a regulated financial product, highlighting the growing intersection between traditional finance and the digital asset space.

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• Coinbase has introduced USDC loans with Bitcoin as collateral.
• The loans are available for US customers.
• The loans have no fixed repayment and they auto-adjust based on the activities on Base.

In a move to expand its decentralized finance (DeFi) offerings, Coinbase has introduced a novel service allowing its US customers (excluding those in New York) to borrow USD Coin (USDC) by leveraging their Bitcoin (BTC) as collateral.

This innovative feature, announced in a recent update, aims to provide users with quick and flexible access to funds without the necessity of selling their Bitcoin.

The process leverages Coinbase’s cbBTC stablecoin

Users pledge their Bitcoin (BTC), which is then converted into cbBTC, a wrapped version of Bitcoin specifically designed by Coinbase for use in DeFi applications. This conversion enables Bitcoin, which typically operates outside the DeFi ecosystem due to its technical framework, to interact seamlessly with DeFi protocols.

The cbBTC is subsequently sent to Morpho, a DeFi lending protocol built on Coinbase’s Base blockchain. In return, borrowers receive USDC, a stablecoin pegged to the US dollar, which they can utilize for various purposes such as covering expenses, international transfers, or conversion into US dollars.

The interest rates on these loans are dynamically adjusted based on market activities on the Base blockchain, reflecting Coinbase’s commitment to aligning DeFi with user needs.

Notably, this loan service comes at a time when the crypto lending sector has been under scrutiny following the high-profile bankruptcies of entities like Celsius and BlockFi in 2022, which significantly dented trust in crypto lending.

By integrating with Morpho, Coinbase is stepping in as a middleman to potentially restore some confidence, offering a transparent, smart contract-based lending experience.

No fixed repayment timelines

What sets this service apart is the absence of fixed repayment schedules. Borrowers have the liberty to repay the loan at their own pace, as long as the value of the Bitcoin collateral remains above a certain threshold relative to the loan amount.

However, should Bitcoin’s value plummet, the system is designed to automatically liquidate enough collateral to cover the loan, safeguarding the protocol’s integrity.

The advantages of such crypto-backed loans are manifold. For one, they allow users to bypass immediate capital gains taxes by borrowing against their assets rather than selling them. Moreover, these loans operate on blockchain technology, ensuring transparency and efficiency through automated processes.

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• Crypto-friendly trading platform eToro files for US IPO.
• eToro is eyeing the IPO at a valuation of $5 billion.

eToro, a crypto-friendly trading platform and social investment network, has reportedly filed for public listing in the United States.

The Financial Times reported on Jan. 16 that eToro had submitted an application for an initial public offering with the US Securities and Exchange Commission. The company’s quest for an IPO in the US comes with the SEC filing likely opening up eToro’s public trading in New York, the FT reported.

eToro is eyeing the IPO at the valuation of $5 billion, with the trading platform likely to be listed as soon as Q2 of 2025.

While eToro’s largest footprint remains in the United Kingdom, the company wants to tap into the vast potential that’s the US market. The company raised $250 million in a funding round in 2023, with its valuation at $3.5 billion. Ahead of the key milestone, eToro is working with global banks such as Goldman Sachs, UBS and Jefferies as it eyes over $5 billion in the IPO.

eToro, founded in 2007, had increased its business model to include crypto. However, in September 2024, it ceased nearly all of its crypto offerings amid the negative pressure from the SEC.

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• iDEGEN has shifted from a dynamic presale model to a more predictable pricing model.
• The iDEGEN presale is scheduled to end on February 26, with listing expected on February 27.
• Franklin Templeton has noted the significant role AI agents could play within the crypto ecosystem.

In an exciting development for the cryptocurrency community, iDEGEN, the innovative AI-powered meme coin that has become a sensation in the crypto space, has entered its final presale stages with a listing on exchanges set for February 27th, 2025.

This move coincides with Franklin Templeton’s report highlighting the significant role AI agents could play within the crypto ecosystem.

With over $16.7 million raised through a dynamic pricing model, iDEGEN has captured the imagination of investors and meme enthusiasts alike.

iDEGEN presale shifts to a predictable pricing model

iDEGEN stands out in the crowded field of cryptocurrency projects due to its unique proposition: an AI that learns from and interacts with its community without any human moderation. Born with no knowledge or preconceptions, iDEGEN’s evolution is entirely dictated by the tweets it receives on X (formerly Twitter), where it learns, adapts, and then posts hourly.

This approach has not only garnered significant community engagement but also led to impressive presale statistics, with 1,424 million tokens sold to 19,569 holders, achieving returns of 8,991% and garnering 1.44 million impressions.

Adding to the appeal of the community-driven AI growth, iDEGEN’s presale previously employed a dynamic auction system that reflected market demand in real time, adjusting the token’s price every five minutes depending on the number of purchases made.

However, as the presale comes to an end, the pricing model has been refined into a more predictable model. The token price will now increase by 10% in each presale stage through 15 stages, with the final presale price set at $0.038. Currently, at $0.01, the price is set to jump to $0.011 in the next stage.

 

The pricing models employed by iDEGEN and the community involvement have made iDEGEN not just a token but a living experiment in decentralized AI development.

As iDEGEN prepares for its exchange listing on February 27, the project is not just a testament to the power of community-driven cryptocurrencies but also aligns with broader trends in the crypto space.

Franklin Templeton’s report shows AI could revolutionize crypto

Franklin Templeton’s report draws attention to the broader implications of AI in the crypto ecosystem. According to the report, AI agents are set to reshape industries by integrating with blockchain technologies, enabling new forms of economic interaction and content creation.

The report also highlights the growth potential, as seen in the active development communities and the enthusiasm surrounding projects like Truth Terminal, Virtuals, and ai16z, which Franklin Templeton says show similar patterns of AI integration with blockchain, potentially paving the way for what iDEGEN is attempting to achieve.

The convergence of AI with cryptocurrency, as exemplified by iDEGEN, suggests a future where digital assets could become more autonomous, interactive, and potentially more valuable due to their ability to engage directly with their community. This could lead to novel uses for tokens, beyond mere speculation, into areas like automated marketing, real-time data analysis, and personalized content creation.

With iDEGEN’s presale nearing its end and its impending listing on major exchanges, it’s clear that the project is at the forefront of this AI-crypto fusion, potentially setting a precedent for how AI can be utilized in the decentralized world of blockchain.

As we move into 2025, the implications of such projects will likely be a topic of intense discussion and development within the crypto community.

However, according to the Franklin Templeton report, there are potential challenges ahead, including functionality, market volatility, and regulatory issues which crypto AI projects will have to navigate.

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• BitMEX fined $100M for AML violations following a guilty plea in 2022.
• The US court also ordered a two-year probation for the exchange.

The operator of BitMEX cryptocurrency exchange, HDR Global Trading Limited, has been ordered to pay a $100 million fine following BitMEX’s guilty plea in 2022 for violating the US Bank Secrecy Act.

Besides the fine, the sentence handed down on January 15, 2025, by Judge John Koeltl of the US District Court for the Southern District of New York, also included two years of unsupervised probation for the exchange.

The charges stem from BitMEX’s operation without a meaningful Anti-Money Laundering (AML) program.

In 2020, the CFTC charged BitMEX owners with illegally operating a cryptocurrency derivatives trading Platform and anti-money laundering violations. BitMEX introduced AML checks on the platform and pleaded guilty to the charges in 2022.

However, in early 2023, BitMEX was hit with a new lawsuit filed by BMA LLC, claiming that BitMEX had been illegally offering services to users in the US through ABS Global, which is wholly controlled and operated by HDR, despite being unregistered as a money-transmitting company.

While the court recognized this violation during the hearing, all other counts against the exchange were dismissed at the request of the US government.

In a statement to its users after the court issued the sentence, BitMEX expressed disappointment over the additional financial penalty. However, the company noted that the fine was significantly lower than what the Department of Justice had been seeking over the past three years.

The sentencing marks another chapter in the regulatory crackdown on cryptocurrency platforms. It highlights the importance of compliance with US banking laws, especially concerning anti-money laundering practices.

This case serves as a reminder to other crypto entities about the legal risks of non-compliance.

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