On October 24th, major cryptocurrency exchanges experienced a noteworthy net outflow of funds, coinciding with Bitcoin (BTC) briefly reaching the $35,000 mark for the first time in a year.
This exodus of funds from exchanges is viewed as a positive sign in the crypto space, indicating that traders are transferring their assets to secure storage, anticipating an uptick in prices.
According to data shared by crypto analytics firm CoinGlass, the largest outflow was witnessed on Binance, with more than $500 million leaving the platform over the past 24 hours.
Following this, crypto.com recorded $49.4 million in outflows, and OKX saw $31 million departing its exchange. Most other exchanges reported outflows of less than $20 million.
Concerns reminiscent of a “bank run” surfaced after the collapse of FTX in November 2022, with investors fearing a similar scenario.
However, the recent outflows appear to be more aligned with trader sentiment rather than panic-induced withdrawals during the peak of the bear market.
Data from Glassnode corroborates this trend, showing that Bitcoin outflows from exchanges have increased in tandem with the surge in BTC’s price.
This price surge also resulted in the liquidation of approximately $400 million worth of short positions, with 94,755 traders witnessing their derivative positions being liquidated within the last 24 hours. The largest single liquidation order took place on Binance, amounting to $9.98 million.
READ MORE;Ripple’s Legal Victory: Slim Odds for SEC’s Appeal in Ongoing Lawsuit
On-chain analysts drew attention to the market value to realized value (MVRV) ratio, a key metric comparing an asset’s market value to its realized value.
It is calculated by dividing a cryptocurrency’s market capitalization by its realized capitalization, which is based on the average price at which each coin or token was last moved on-chain.
The current MVRV ratio stands at 1.47, just shy of the 1.5 threshold that historically heralds the beginning of a bull market.
The crypto market as a whole has seen a remarkable 7.3% increase in its total market capitalization over the last 24 hours, reaching $1.25 trillion, its highest valuation since April.
This surge is believed to be fueled by speculation surrounding the imminent launch of a spot Bitcoin exchange-traded fund (ETF), further amplifying the bullish sentiment in the crypto ecosystem.
With the MVRV ratio inching closer to 1.5, many enthusiasts are optimistic about Bitcoin’s potential to reach $40,000 in the coming days.
Other Stories:
Ripple’s Legal Victory: Slim Odds for SEC’s Appeal in Ongoing Lawsuit
Fight Me: Triumphia Origins NFTs mint out in under 2 minutes ahead of the Fight Me game launch
Uniswap Founder Burns 99% of HAY Token Supply, Shaking Crypto Markets
Worldcoin, the cryptocurrency project known for its innovative use of eye-scanning technology, is making significant changes to its payment system for Orb Operators.
These operators, responsible for scanning people’s irises in exchange for Worldcoin (WLD) tokens, will no longer be compensated in USD Coin (USDC) starting next month, according to an announcement made on October 22.
This shift will impact most regions where the project operates.
Worldcoin views this transition as a crucial phase in its development, following its official launch on July 24.
A pilot program initiated by the Worldcoin Foundation on October 10 already began granting selected operators payment in WLD tokens, and it aims to complete this transition process by November 2023.
Notably, Worldcoin tokens are currently unavailable to individuals and companies residing in the United States and certain other restricted territories.
Data from Worldcoin’s official Dune Analytics dashboard reveals that the supply of WLD tokens has increased from approximately 100 million at launch to around 134 million at the time of this announcement.
READ MORE: Bitcoin Rockets to $30,000 Amidst Strong Market Sentiment
Out of the 134 million WLD tokens issued, 100 million were allocated as loans to market makers, while the remaining 34 million were distributed to Orb operators and new users through free user grants.
Five market-making entities received the initial 100 million WLD loans, originally set to expire on October 24, 2023.
However, Worldcoin has decided to extend the loan expiration date to December 15, reducing the amount to 75 million WLD.
The announcement states that market makers will either return or purchase the remaining 25 million WLD tokens as part of the agreement.
Worldcoin’s native WLD token experienced a rollercoaster ride in its price since its launch.
After reaching an all-time high of $2.65 on July 27, it witnessed a 63% drop, hitting as low as $0.97 on September 13.
As of now, the token is trading at $1.64, marking a slight recovery in recent weeks, as per TradingView data.
These developments mark a significant evolution in Worldcoin’s strategy as it continues to develop its cryptocurrency ecosystem.
Other Stories:
Ripple Scores Legal Victory, But LBRY’s Closure Raises Questions About SEC’s Approach
Former FTX CEO Sam Bankman-Fried Faces Legal Scrutiny Over Alleged $8 Billion Financial Discrepancy
Binance Expands Euro Services with New Fiat Partners Post-PaySafe Departure
According to lawyer Bill Morgan, closely following the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC), the chances of the SEC winning its appeal are incredibly slim.
Morgan took to social media, specifically X (formerly Twitter), to express his opinion on the matter. He emphasized that there is no glaringly apparent error in the case that would support an appeal, except for one point that favors Ripple.
In particular, he pointed out that the sales of XRP, Ripple’s cryptocurrency, do not meet at least two key criteria of the Howey test, a legal standard used to determine whether an asset qualifies as a security.
Morgan generously assigned a mere 3% likelihood of success for the SEC’s appeal against Ripple.
Morgan’s assessment came in response to data shared by prominent attorney Jeremy Hogan, who presented statistics on the success rates of appeals in various types of lawsuits.
According to this data, the SEC faces a meager 14.2% chance of prevailing in its appeal against Ripple.
READ MORE: Ripple Scores Legal Victory, But LBRY’s Closure Raises Questions About SEC’s Approach
This lawsuit between the SEC and Ripple has spanned three years, with a recent ruling by a judge declaring that the sale of XRP on cryptocurrency exchanges does not violate securities laws.
This ruling was a significant victory for Ripple, which had suffered substantial setbacks as major crypto exchanges delisted XRP during the lawsuit.
The SEC attempted to appeal this judgment but was unsuccessful, with Judge Analisa Torres ruling that the regulator had failed to demonstrate controlling questions of law or substantial grounds for differences of opinion.
In a surprising turn of events, the SEC decided to dismiss all charges against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen.
Ripple’s chief legal officer, Stuart Alderoty, characterized this move by the SEC as a “surrender,” while Ripple itself referred to it as a “stunning capitulation.”
Morgan also highlighted that the SEC has now dismissed the remainder of the case, meaning there will be no trial in the coming year.
He predicted that a final judgment would likely be issued sometime next year, bringing an end to this protracted legal battle between Ripple and the SEC.
Other Stories:
Former FTX CEO Sam Bankman-Fried Faces Legal Scrutiny Over Alleged $8 Billion Financial Discrepancy
Bitcoin Rockets to $30,000 Amidst Strong Market Sentiment
Binance Expands Euro Services with New Fiat Partners Post-PaySafe Departure
Hong Kong, Hong Kong, October 24th, 2023, Chainwire
Fulcrom Finance, the largest perpetual trading protocol on the Cronos blockchain, incubated by Cronos Labs, announced a major multi-chain upgrade, expanding its platform to the zkSync Era layer-2 protocol. In less than a week following the launch, Fulcrom Finance grew to become one of the top decentralized applications on zkSync Era in terms of total value locked.
Fulcrom Finance has emerged as the leading perpetual exchange on Cronos for pro traders since its initial launch in Feb. 2023, with its focus on low slippage, minimal fees and 75x leverage. It has been hugely successful, accruing a total trading volume of more than $500 million.
To accelerate its growth and support its existing community of stakers, Fulcrom announced its expansion to zkSync Era on Oct. 5. Rather than launch a separate protocol, Fulcrom bridged 2.4 billion $FUL tokens from Cronos to zkSync Era to support its presence there – a move that will benefit users on both chains. zkSync Era is a layer-2 protocol that scales Ethereum with cutting-edge zero-knowledge technology to preserve its foundational values of freedom, self-sovereignty, and decentralization. It aims to achieve hyper-scalability, security, UX, and community ownership, and has been backed by more than 200 projects.
Fulcrom’s decision to collaborate with zkSync Era is the vision of a multi-chain future which is shared by Cronos and Fulcrom. The move will help to reshape the derivatives trading landscape by creating unprecedented opportunities for traders. By launching on zkSync Era, Fulcrom will accelerate value accrual for $FUL token holders. As it grows its user base beyond Cronos, $FUL stakers on both blockchains will benefit from the influx of trading activity.
The integration with zkSync Era has hit the ground running, as Fulcrom rose rapidly to become one of the top dApps on the platform in TVL (with more than $750K assets under management) within just five days of its launch. The launch has increased Fulcrom’s trading volume on both platforms to over $500 million, while there has been a 36% increase in the number of unique active wallets interacting with the protocol in the last 30 days. One of the key reasons for Fulcrom’s flying start is its partnership with Syncswap, the top DEX on zkSync Era, enabling it to access the liquidity of that platform.
To celebrate its launch on zkSync Era, Fulcrom has announced the creation of a $100k rewards pool that will be distributed to traders between now and Jan. 5 2024, based on their trading volume.
“Fulcrom Finance shares the same foundational values of freedom, self-sovereignty and decentralization with zkSync Era, and is committed to leveraging ZK-proofs to increase user privacy and enhance speed and scalability. By bridging a significant portion of $FUL tokens, Fulcrom will grow its trading volume and significantly increase the rewards generated by token holders on both Cronos and zkSync Era,” said Martin Alastair, Product Lead at Fulcrom Finance.
In recent weeks, Fulcrom’s platform has matured to attain parity with the industry’s leading DeFi protocols. Today’s announcement comes hot on the heels of last month’s launch of TradeSquare, a new social trading feature that allows users to discover the top traders on its platform and follow their trades.
About Fulcrom Finance
Fulcrom Finance is a decentralized perpetual exchange on Cronos and zkSync Era that allows users to trade leveraged positions with up to 75x leverage, low fees, and zero price impact, whilst having the peace of mind that all trades and collateral are stored transparently on-chain.
Fulcrom Finance is incubated by Cronos Labs – the Web3 startup accelerator that helps builders to create user-friendly applications on the Cronos blockchain and to drive mainstream adoption of Web3.
About Cronos
Cronos (cronos.org) is the leading Ethereum-compatible layer 1 blockchain network built on the Cosmos SDK, supported by Crypto.com and more than 500 app developers and partners. Today, the #CROfam ecosystem represents an addressable user base of more than 80 million people worldwide. Our mission is to make it easy and safe for the next billion crypto users to adopt Web3, with a focus on decentralized applications in the DeFi, NFTs and GameFi verticals.
Shortly after launch in 2021, Cronos achieved a top 10 position amongst all chains by TVL. It is home to more than 1 million users and 500+ dApps.
Transaction fees are paid in Cronos ($CRO), a blue chip cryptocurrency.
The Cronos ecosystem is supported by Cronos Labs, the start-up accelerator of Cronos chain.
Contact
Avishay Litani
MarketAcross
[email protected]
Birkirkara, Malta, October 24th, 2023, Chainwire
UTIX, the blockchain-based e-ticketing platform that provides event organizers across the globe with the ability to sell online tickets, has announced its native $UTIX cryptocurrency reward token will be available to buy and sell on the BitMart exchange from October 31.
The UTIX platform is a software-as-a-service offering that provides comprehensive and highly customizable e-ticketing solutions to event organizers. It’s built atop of the Ethereum blockchain network, which enables it to utilize smart contracts to monitor and control the sale of tickets via its e-ticketing ecosystem. UTIX generates revenue by charging small fees on each ticket sold, meaning its platform is completely free for event organizers to use.
The main purpose of the $UTX ERC-20 loyalty token is to reward consumers for their continuous use of the UTIX platform and encourage them to come back again and again. By earning $UTX every time they purchase e-tickets via UTIX, users can obtain discounts on future events listed on the platform. In this way, $UTX loyalty rewards give event organizers a compelling incentive that entices users to purchase tickets for their events. UTIX has also registered its Whitepaper with the MFSA (Malta Financial Services Authority) and became one of only 3 digital assets in the world with this level of regulation.
With the UTIX platform, event organizers have a seamless way to implement smart contracts that control numerous variables pertaining to each ticket sold. In addition to its ease of use, the UTIX platform allows sellers to control the secondary market price for e-ticket sales, preventing touts from buying up multiple tickets and passing them on at a huge markup. And because it leverages blockchain’s immutability, UTIX helps to combat fraud by minimizing the possibility of counterfeit tickets being sold.
Most importantly, the capabilities of UTIX are wrapped around a simple user interface, meaning that neither the event organizers nor end users will be aware they’re interacting with a blockchain platform. In this way, it provides all of the benefits of a blockchain-based ticketing platform, without any of the complexity.
The listing of $UTX on BitMart is a big milestone that increases the token’s utility, enabling users to cash in on their loyalty rewards, in addition to using them for discounted tickets. The event is also expected to garner more publicity for the UTIX platform.
“We’re thrilled to announce the first listing of our $UTX token, which holds the distinction of being the world’s first MFSA-regulated digital asset. As we scale UTIX to become the dominant platform in the broken e-ticketing market, the listing will increase exposure to the project and $UTIX’s novel utility. BitMart’s massive user base will bring more liquidity to the market and greater value to our community,” said Max Mayhew, Managing Director of UTIX.
BitMart is a leading global digital asset trading platform that counts more than 2 million users worldwide. Ranked as one of the world’s top cryptocurrency exchanges in both user count and trading volume, it will add support for $UTX/$USDT and $UTX/$BTC trading pairs on Oct. 31, providing greater exposure to the UTIX ecosystem.
“BitMart is proud to become the first major global cryptocurrency exchange to list the $UTX loyalty rewards token. UTIX’s mission to bring new efficiencies to the online ticketing industry is a transformative one that showcases yet another promising use case for blockchain. With $UTIX now available to trade on our platform, it’s a project that’s rapidly approaching maturity,” said a BitMart representative in a statement.
About UTIX
UTIX is a blockchain-based online e-ticketing platform that enables event organizers across the world to sell online tickets with minimal hassle and greater control. Powered by Ethereum, UTIX aims to eliminate the efficiencies associated with legacy e-ticketing platforms through the use of smart contracts.
Users and event organizers will be unaware they are using the blockchain, yet by harnessing its unique capabilities, UTIX allows full control of event-specific variables that would otherwise be impossible. In addition to eliminating the threat of counterfeits, UTIX provides a way to set the secondary market price for e-tickets, permanently solving the problem of ticket touts who routinely try to sell tickets at a massive markup.
Contact
Avishay Litani
[email protected]
A Web2 gaming studio entering Web3 is always an event. But the launch of Triumphia Origins, an NFT collection associated with the game Fight Me by Nekki was even more special, as the studio boasts a billion game downloads. It’s no surprise that the collection sold out in two minutes.
Triumphia Origins: your golden ticket to the Fight Me game by Nekki on Polygon
Nekki is the game publisher behind such action and strategy hits as Shadow Fight, Vector, and 11×11. The studio, which is partnered with Polygon and MetaMask, is now building its first Web3 game, Fight Me.
Watch the impressive cinematic trailer
The first part of the project to go live is the Triumphia Origins NFTs, a collection of 10,000 fighter characters named after Triumphia – the city where the events of Fight Me unfold.
All Triumphia Origins holders are entitled to a variety of privileges:
- a whitelist spot on the main Fight Me mint, planned for November 2023 on Magic Eden;
- early access to the Fight Me game (Q1 2024);
- member-only contests and VIP activities on Discord, and more.
What happened during the Triumphia Origins mint on Magic Eden?
Triumphia Origins held a free mint on Magic Eden on October 13. It started at 5 pm UTC with two hour-long rounds for the Discord OGs – a logical step, considering how much Nekki values its community. The next round was first come, first served – and saw 6,000 Triumphia NFTs minted in
less than two minutes. As a result, the mint never got to the public round.
Such a level of interest is not surprising, given the large following of Fight Me. In just a few short months, Nekki built one of the most passionate and active Discord communities in all of GameFi.
The server hosts regular tournaments between the two leading fighter squads, as well as frequent contests. The recent contest where users were asked to share their personal achievements garnered thousands of submissions.
About Nekki and Fight Me
Nekki is a Cyprus-based game publisher known for its high-quality action and strategy franchises, including Shadow Fight – one of the industry’s biggest fighting franchises. Overall, Nekki’s games have been downloaded over a billion times – and all of this growth has been organic. Among the studio’s other achievements:
- Over 12 million followers across all franchises’ social accounts;
- Never had to raise funds from outside investors.
- Released successful mobile, browser, and social games;
- 300+ professionals working for the studio;
- Built the popular animation tool Cascadeur, used by 100,000 animators and developers.
The company’s first Web3 title, Fight Me, is a Polygon-based browser game that combines Play-to-Own and Compete-to-Earn elements.
In Fight Me, players will be able to collect fighters, form fight clubs, helping their squads win titles in tournaments. Along the way, they will unlock weapons, skills, and random power-ups. Users can then sell their upgraded fighters in the secondary market.
Fight Me’s relaxed gameplay, no-download browser format, and fiat-friendly economics will also appeal to Web2 games – an audience that already knows and loves Nekki’s products.
The main Fight Me NFT mint is scheduled for November 2023 – with whitelist spots reserved for all the Triumphia Origins holders, like we noted above. Follow Fight Me on X and Discord for updates.
Uniswap’s founder, Hayden Adams, made a surprising move on October 20 by burning a staggering 99% of the HayCoin (HAY) supply, as announced on X (formerly Twitter).
This drastic measure was taken in response to growing concerns about excessive price speculation surrounding the token in recent days, which had seen its value skyrocket.
Adams initially deployed the HAY token for testing purposes five years ago, well before the launch of the decentralized Uniswap protocol.
At that time, he had created a small test liquidity pool with only a minuscule fraction of the total HAY supply, retaining over 99.9% of the tokens in his wallet.
However, in a surprising turn of events, HAY had recently been trading at astronomical six-figure prices, largely resembling the behavior of meme coins.
Adams expressed his astonishment, stating, “Over the years, a few people have noticed it and bought it as a joke or for the novelty of it.
I was extremely surprised to see people buying and selling significant dollar amounts this past week, treating it like a memecoin. Crypto can be weird sometimes.”
READ MORE: Prosecutors Seek to Disqualify ‘Effective Altruism’ as Defense in Sam Bankman-Fried’s Fraud Trial
According to Adams’ post, he burned approximately $650 billion worth of HAY tokens, branding the price speculation as “silly.”
He expressed his discomfort with owning almost the entire supply of a token that had become the subject of memes and speculation, which ultimately led him to burn the entire amount in his wallet.
Token burning is a process that permanently removes tokens from circulation, but it can also have inflationary effects on their price by reducing the available supply.
At the time of writing, the HAY token was trading at $2,392,640, reflecting a remarkable surge of over 235% in the past 24 hours, according to CoinGecko.
However, Hayden Adams’ decision to burn the tokens did raise some eyebrows on X. In addition to its impact on the HAY price, some users pointed out the potential tax implications of such a move.
One user speculated, “Assuming a cost basis of $0, a ~$650 billion disposal gives rise to ~$128 billion long-term capital gains liability.”
Others suggested that Adams could have sold the tokens before burning them and donated the profits to a charitable cause.
In conclusion, Hayden Adams’ decision to burn 99% of the HAY token supply was driven by concerns about price speculation, making a significant impact on the cryptocurrency market and prompting discussions about the tax implications of such actions.
Other Stories:
Coinbase’s Chief Legal Officer Urges Cryptosphere to Oppose Proposed U.S. Tax Regulations
Prosecutors Seek to Disqualify ‘Effective Altruism’ as Defense in Sam Bankman-Fried’s Fraud Trial
Ripple Fuels Speculation of Potential IPO Amidst Legal Battles
Cryptocurrency advocate and lawyer John Deaton has voiced his criticism of the Lightning Network, asserting that it falls short in comparison to the “Spend The Bits” protocol operating on the XRP Ledger (XRPL).
The Lightning Network represents a layer-2 scaling solution for Bitcoin, intended to enhance the scalability and efficiency of Bitcoin transactions through the facilitation of off-chain peer-to-peer transactions.
In a recent tweet on October 21, Deaton disclosed that he is not only an angel investor in Spend the Bits but also serves as its chief legal officer.
His earlier endorsements of Spend The Bits as a viable alternative to Lightning on the Bitcoin blockchain underscored its growing reputation.
Deaton has previously lauded the protocol, describing it as a more secure means of utilizing Bitcoin compared to the Lightning Network.
Deaton’s timely disclosure coincided with an important revelation on WhaleWire, an online crypto investigation platform.
READ MORE: Coinbase’s Chief Legal Officer Urges Cryptosphere to Oppose Proposed U.S. Tax Regulations
This tweet raised concerns about a newfound security vulnerability within the Lightning Network, leading one developer to withdraw from the project.
The developer alleged that the Lightning Network’s code contained deliberate vulnerabilities, potentially affording attackers complete control over the network.
The fact that significant supporters of the Lightning Network also have ties to Tether, Bitfinex, and BlockStream has cast doubt on the network’s security and reliability.
As of the time of this writing, the Lightning Network boasts a network capacity of 5,338 BTC, as reported by 1ML.
However, this figure has prompted skepticism regarding the network’s durability and long-term prospects. Over the past three months, the payment protocol has witnessed a notable 15% reduction in capacity.
In summary, Deaton’s criticism of the Lightning Network in favor of the “Spend The Bits” protocol on the XRP Ledger reflects growing concerns about the security and trustworthiness of the former.
Recent disclosures regarding security vulnerabilities and capacity reductions have further fueled the debate surrounding the Lightning Network’s effectiveness as a scaling solution for Bitcoin.
Other Stories:
Ripple Fuels Speculation of Potential IPO Amidst Legal Battles
Prosecutors Seek to Disqualify ‘Effective Altruism’ as Defense in Sam Bankman-Fried’s Fraud Trial
Binance Expands Euro Services with New Fiat Partners Post-PaySafe Departure
FTX users have fallen victim to a withdrawal scam that has raised concerns within the community.
Sunil, a prominent advocate for FTX creditors, sounded the alarm on Twitter, cautioning FTX account holders to be wary of a phishing scam and advising them against clicking on suspicious links.
This incident sheds light on the ever-evolving tactics employed by online scammers to exploit unsuspecting victims.
Reports from FTX users have revealed that they received deceptive emails supposedly originating from FTX Trading, West Realm Shires Services, and FTX EU.
These fraudulent emails falsely promise FTX creditors an exclusive opportunity for immediate asset withdrawals, circumventing waiting periods and legal proceedings. One such email read:
“We are excited to offer the valued priority clients of FTX Trading Ltd., West Realm Shires Services Inc., and FTX EU Ltd., a special opportunity starting today, Oct. 20, 2023.
As a priority client, you can now undergo the withdrawal process for your assets on the FTX platform and deposit them directly into your wallet, eliminating any waiting period and court outcomes.”
These deceptive emails specifically target users who are eager to withdraw their assets amidst the ongoing legal disputes involving Sam Bankman-Fried, the former CEO of the exchange.
]This timing plays into the hands of scammers looking to capitalize on the uncertainty and impatience of FTX users involved in these disputes.
Notably, this scam emerged shortly after FTX creditors achieved a significant milestone by announcing the resolution of customer property disputes.
Pending approval from a bankruptcy court, the revised plan holds the promise of substantial relief for FTX’s global customer base.
According to the proposed plan, customers would be entitled to receive over 90% of the distributable value, potentially offering a much-needed reprieve for those affected by the exchange’s troubles.
In conclusion, FTX users are currently facing a withdrawal scam that preys on their eagerness to access their assets amidst ongoing legal complications.
It is essential for FTX account holders to exercise caution, avoid clicking on suspicious links, and verify the authenticity of any communication they receive from the exchange to protect themselves from falling victim to these malicious schemes.
Other Stories:
Binance Expands Euro Services with New Fiat Partners Post-PaySafe Departure
Prosecutors Seek to Disqualify ‘Effective Altruism’ as Defense in Sam Bankman-Fried’s Fraud Trial
Ripple Fuels Speculation of Potential IPO Amidst Legal Battles
Ripple recently celebrated a significant legal victory in its ongoing battle with the U.S. Securities and Exchange Commission (SEC).
On October 19th, the SEC announced its intention to dismiss all claims against Ripple CEO Brad Garlinghouse and Executive Chair Chris Larsen.
This development marked a crucial moment in the civil case initiated by the SEC in late 2020, offering a glimmer of hope for Ripple.
However, the cryptocurrency community’s elation over this news was tempered by another announcement on the same day. LBRY, a prominent blockchain file-sharing and payment network, revealed that it was shutting down its operations.
LBRY cited mounting debts, owed to the SEC, its legal team, and a private creditor, amounting to several million dollars.
LBRY’s creators are renowned for their work on Odysee, an open-source video-sharing platform aimed at providing a decentralized alternative to mainstream platforms like YouTube.
LBRY had been embroiled in its legal dispute with the SEC, which filed a lawsuit against the platform in March 2021 for alleged securities law violations, mirroring its action against Ripple.
Despite the SEC reducing LBRY’s initial $22 million penalty to around $111,000, the company chose not to pursue further legal action.
READ MORE: Binance.US Shifts Withdrawal Options, Encourages Users to Convert USD to Crypto
The crypto community reacted with mixed emotions. While celebrating Ripple’s victory, many expressed concern about the regulatory overreach and its consequences for smaller players in the industry.
Notably, XRP, Ripple’s cryptocurrency, boasts a market capitalization of $27 billion, while LBRY credits were valued at only $5.5 million at the time.
Critics argued that the stark contrast in resources between Ripple and LBRY underscored how well-funded entities can leverage their financial strength in legal battles against regulatory bodies.
Some questioned the SEC’s priorities, criticizing it for targeting a small American company like LBRY while failing to prevent major issues in the cryptocurrency space.
Pro-XRP lawyer John Deaton condemned the SEC’s actions against LBRY, citing the agency’s inability to secure a substantial penalty despite the considerable resources expended.
He labeled the SEC as a “broken, failed, and inept agency.”
Despite Ripple’s legal win, industry observers anticipate that the legal battle with the SEC is far from over.
The penalty phase of the litigation remains contentious, with lawyers predicting a protracted struggle over the appropriate penalties for Ripple’s institutional sales of XRP.
The SEC has signaled its intent to pursue this aspect further, and discussions between the two parties are set to continue until November 9, 2023.
Other Stories:
Explosive Growth in Ethereum Liquid Staking Derivatives Finance (LSDFi) Ecosystem
Coinbase’s Chief Legal Officer Urges Cryptosphere to Oppose Proposed U.S. Tax Regulations
Ripple Fuels Speculation of Potential IPO Amidst Legal Battles