This week, numerous well-known and obscure projects chose the same period to launch their tokens and airdrop events. This wave of airdrops made a comeback but wasn’t enough to revive the sluggish crypto market, which remains downcast due to negative crypto news.
Mt. Gox to Start BTC and BCH Repayments in July 2024
On June 24, 2024, Bloomberg reported that Mt. Gox plans to start paying back its debts in Bitcoin and Bitcoin Cash in early July.
Mt. Gox To Distribute Bitcoin, Bitcoin Cash Repayments Starting Beginning Of July 2024: Notice pic.twitter.com/8PXJiiLFQF
— Tree News (@News_Of_Alpha) June 24, 2024
This move wasn’t a big surprise, as signs appeared back in May when Mt. Gox moved all its $9.6 billion worth of Bitcoin to a new wallet, part of its plan to redistribute assets, according to its former CEO.
In September 2023, Mt. Gox’s trustee announced creditors would receive 142,000 Bitcoin, 143,000 Bitcoin Cash, and 69 billion Japanese yen ($510 million) by October 2024. Some Japanese Yen was already repaid on April 23, and the next repayment will be in BTC and BCH. Mt. Gox sped up audits and transfers, so users may get their assets back by early July instead of October.
This news dealt a significant blow to the market, with BTC trading around $60,800 at the time and showing no signs of recovery. Analysts predict it might drop to $50,000.
More detail: Mt. Gox to Repay $9b Bitcoin in the Beginning of July
The German government has emerged as a new whale in the crypto market, with its wallet making its first BTC move on June 19. Germany seized 50,000 BTC from the illegal movie streaming site Movie2k back in February this year.
By June 28, the wallet had transferred approximately 2,350 BTC to various centralized exchanges (CEX) through multiple small orders, indicating a gradual sell-off rather than a sudden dump.
Despite these transactions, the wallet still holds 45,609 BTC, valued at $2.8 billion, keeping the community on edge, uncertain about when a potential large-scale sell-off might occur.
On June 27, the US government transferred an additional 3,940 BTC to Coinbase. Data from Arkham reveals that the US still holds 213,564 BTC, worth over $13 billion, along with significant amounts of major altcoins such as ETH, WBTC, USDT, and BNB, with a total value exceeding $450 million.
Q2 2024 also saw significant fluctuations in the flows of US Bitcoin spot ETFs. Continuous outflows in late April drove BTC prices down to $56,000, followed by a record-breaking 19 days of inflows in May. However, outflows resumed in June, compounding the selling pressure in the market.
Read more: Bitcoin Price Stable Despite Massive BTC Transferred to Exchanges
SEC Chairman Gensler Says Ethereum ETF Process “On Track”
A positive highlight came from SEC Chairman Gary Gensler, who updated on the status of Ethereum spot ETF proposals. While he did not provide a specific timeline, he assured us that the process is “on track.” Bloomberg analysts predict that the SEC may approve these ETFs before the US Independence Day on July 4.
Jump Crypto President Kanav Kariya Resigns Amid CFTC Investigation and Bad Crypto News
On June 24, Kanav Kariya, President of Jump Crypto, resigned following a CFTC investigation into the fund’s activities. The CFTC is examining Jump Crypto’s trading and investment practices, raising questions about the fund’s transparency.
SEC Ends Ethereum Investigation but Sues Consensys
In late April, Consensys filed a lawsuit against the SEC after receiving a warning letter from the commission. The lawsuit revealed that the SEC had been investigating Ethereum since March 2023, considering it a security and intending to penalize MetaMask for offering services related to securities. During this period, reports also surfaced that the SEC was intensifying its scrutiny of Ethereum and major projects within its ecosystem, such as Uniswap.
However, in May, the SEC reversed its stance by accepting an Ethereum ETF, implicitly acknowledging that ETH is not a security. Many believe this shift was influenced by the Biden administration.
On June 19, Consensys confirmed that the SEC had concluded its investigation into Ethereum, dropping any claims that ETH is a security. Although the outcome had been anticipated, this news bolstered investor confidence in the market.
Despite this, on June 28, the SEC filed a lawsuit against Consensys and its subsidiary, MetaMask, accusing them of being unlicensed securities brokers. This lawsuit also implicates the staking services of two major DeFi projects, Lido and Rocket Pool.
VanEck Files for Solana Spot ETF
On June 27, asset management firm VanEck filed with the SEC to establish a Solana (SOL) spot ETF, which would directly hold SOL tokens rather than futures contracts. This ETF would be listed on the Cboe BZX Exchange. However, its legal status remains uncertain due to past allegations of SOL being a security.
21Shares Submits Application for Solana Spot ETF
Following VanEck, 21Shares filed for a Solana spot ETF named “21Shares Core Solana ETF.” The firm already manages a Solana staking ETP with over $846 million in assets and a Bitcoin spot ETF on the Cboe BZX Exchange.
Read more: Solana (SOL) Could Hit $1000 per SOL If ETFs Are Approved
Coinbase Sues SEC and FDIC for Alleged Crypto Crackdown
Coinbase has filed a lawsuit against the SEC and FDIC, accusing them of failing to comply with Freedom of Information Act (FOIA) requests and making decisions detrimental to the crypto industry. This follows Coinbase’s previous lawsuit against the SEC in April 2023, demanding clear regulatory guidelines for digital assets.
US Court Allows SEC Lawsuit Against Binance to Proceed
A US court has permitted the SEC’s lawsuit against Binance to move forward, despite Binance settling with the US Department of Justice and CFTC. The court ruled that the SEC’s allegations, including unregistered securities offerings through BNB token sales, warranted further examination.
IRS Updates Crypto Broker Tax Guidelines, Excludes DeFi
The IRS has released updated tax guidelines for crypto brokers, clearly categorizing centralized exchanges (CEX) and custodial services. However, it has not provided classifications for DeFi protocols and non-custodial applications.
A Thrilling Week for Airdrop Announcements
- ZKsync Announces Second Airdrop
ZKsync has announced its second airdrop, distributing 1.91% of the total ZK token supply. This round primarily targets ecosystem developers, including Protocol Guild members, contributors to external projects, or those nominated by a project within the ZKsync ecosystem. The deadline to claim the airdrop is January 3, 2025.
- Blast Schedules Airdrop for Ethereum Layer-2 Users
The Ethereum layer-2 platform, Blast, has confirmed its token airdrop for the community at 9:00 PM on May 26. In the first airdrop on June 26, Blast will distribute 17 billion BLAST tokens (17% of the total supply) to users with Blast Points and Blast Golds. These points are airdrop rewards for dApps on the network. Users must log into the Blast Dashboard on the project’s website at least once to take the snapshot, as announced a week earlier.
- Zeta Markets Launches Native Token Airdrop on Solana
Zeta Markets on Solana has launched its native token and opened the airdrop portal to distribute 100 million ZEX tokens, equivalent to 10% of the total supply. This airdrop aims to reward early users and encourage long-term participation in the protocol.
