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Fairshake Spending $25 Million on Pro-Crypto Congressional Candidates

Digital asset-focused super PAC Fairshake is committing $25 million to support 18 pro-crypto candidates—nine Republicans and nine Democrats—vying for seats in the U.S. House of Representatives. The initiative spans multiple states, including Alaska, California, and New York, with approximately $1 million allocated to each candidate’s campaign.

Fairshake announced this significant investment in a statement on Thursday, highlighting its dedication to bipartisan support for leaders committed to responsible crypto regulation. “We will continue to deploy our resources in support of leaders on both sides of the aisle and in both houses who are committed to getting things done and working with the industry to pass responsible regulation,” the statement read.

The candidates benefiting from this funding include Republicans Zach Nunn, David Valadao, and Juan Ciscomani, and Democrats Nikki Budzinski and Tom Suozzi. The complete list of Fairshake-backed candidates features:

Democrats:

  • Don Davis (NC-01)
  • Yadira Caraveo (CO-08)
  • Steven Horsford (NV-04)
  • Mary Peltola (AK-AL)
  • Pat Ryan (NY-18)
  • Nikki Budzinski (IL-13)
  • Tom Suozzi (NY-03)
  • Angie Craig (MN-02)
  • Eric Sorensen (IL-17)

Republicans:

  • David Valadao (CA-22)
  • Mike Garcia (CA-27)
  • Juan Ciscomani (AZ-06)
  • Lori Chavez-DeRemer (OR-05)
  • Zach Nunn (IA-03)
  • Michelle Steel (CA-45)
  • Young Kim (CA-40)
  • Monica De La Cruz (TX-15)
  • Bryan Steil (WI-01)

This $25 million expenditure marks the first tranche of funds Fairshake plans to invest in pro-crypto candidates ahead of the 2024 U.S. elections. As of August 6, the super PAC has amassed an impressive $203 million for the upcoming election cycle, according to OpenSecrets, a campaign finance watchdog.

Fairshake’s financial influence is already evident. Earlier this summer, 33 out of 35 Fairshake-backed candidates triumphed in their respective House and Senate primary races, as reported by CNBC. The super PAC’s strategic investment aims to bolster candidates who support the burgeoning digital asset industry and advocate for prudent regulatory measures.

Source : Pro-Crypto Super PAC Fairshake Plans to Spend $25 Million on These Congressional Candidates

Bitcoin’s Death Cross and Bank of Japan’s Rate Shift: What’s Ahead?

Bitcoin is at a critical juncture, facing a potential “death cross,” a technical signal that could spell trouble for the cryptocurrency’s price trajectory. A death cross occurs when a short-term moving average falls below a long-term moving average, often indicating bearish market conditions. Currently, Bitcoin’s short-term moving average is dangerously close to crossing below its long-term counterpart, which has traders and investors on edge.

Adding to the complexity is the recent shift in global monetary policy, specifically the Bank of Japan’s decision to ease concerns over interest rates. Traditionally, lower interest rates can boost asset prices by making borrowing cheaper, which might help offset some of the bearish pressure on Bitcoin. However, the impact of this monetary easing on cryptocurrencies remains uncertain.

The convergence of these factors has created a volatile environment for Bitcoin. On one hand, the death cross could signal a prolonged downturn, trapping bearish traders who have bet on further declines. On the other hand, the Bank of Japan’s rate adjustments might provide some unexpected relief by injecting liquidity into the financial system, potentially benefiting Bitcoin.

For now, Bitcoin investors must navigate a landscape fraught with both technical indicators and macroeconomic shifts. While the death cross is a concerning sign, the broader economic environment, influenced by global central banks, will play a crucial role in determining Bitcoin’s short-term fate. As always, investors should stay informed and cautious, balancing technical signals with broader market developments to make well-informed decisions.

This situation underscores the intricate interplay between technical analysis and global economic policy, highlighting the need for a nuanced approach to cryptocurrency investing in these unpredictable times.

Source: Bitcoin’s Impending ‘Death Cross’ May Trap Bears as Bank of Japan Eases Rate Concerns

Binance Takes Legal Action Against India’s $86 Million Tax Notice

Binance, one of the world’s largest cryptocurrency exchanges, has recently contested a hefty $86 million tax show-cause notice issued by Indian authorities. This development marks a significant escalation in the ongoing legal and regulatory challenges Binance faces in India.

The tax notice, reportedly issued by the Indian Income Tax Department, alleges that Binance has evaded taxes related to cryptocurrency transactions. In response, Binance has challenged the notice, arguing that it is not liable for the purported tax obligations and that the claims are based on incorrect interpretations of tax laws and regulations. The exchange’s legal team contends that the notice fails to account for the complexities of cryptocurrency transactions and their treatment under Indian tax law.

This move by Binance is part of a broader struggle between the cryptocurrency industry and regulatory bodies across various jurisdictions. In India, the regulatory environment for cryptocurrencies has been particularly stringent, with the government and financial authorities scrutinizing crypto businesses more closely. The outcome of this dispute could have significant implications for Binance and the wider cryptocurrency market in India.

Binance’s challenge to the tax notice highlights the increasing tension between global crypto exchanges and national regulators. As the legal battle unfolds, industry stakeholders and regulators alike will be closely watched. The case underscores the need for clearer regulatory frameworks to address the unique nature of digital assets and to facilitate more effective compliance and enforcement.

Overall, Binance’s decision to contest the tax notice reflects its commitment to defending its operations and clarifying the regulatory landscape for cryptocurrencies in India. As the situation develops, it will be important for both parties to navigate these complex issues with transparency and adherence to legal standards.

Source: Binance Has Challenged India’s $86M Tax Showcause Notice: Source

UK Proposing Property Category for Crypto Assets, SEC Facing Lawsuit Over NFTs

The Law Commission of England and Wales has recommended that the UK government classify all crypto assets as a new form of personal property, addressing current legal gaps. Meanwhile, the SEC is being sued over the regulatory status of NFTs.

On July 30, the Law Commission of England and Wales published its final report urging the UK government to create a distinct category for crypto assets. The report emphasized the current inadequacies in legal categorization and its implications for crypto assets. As an independent body focused on law reforms, the commission highlighted the need for legal “flexibility” to recognize and protect digital assets as a unique form of personal property.

“The recognition of a distinct category of personal property” is necessary, according to the commission, to properly address and safeguard the interests associated with digital assets.

In a related legal development, FTX class action lawyers have moved to block Sullivan & Cromwell’s (S&C) dismissal motion. On July 29, these lawyers submitted a motion alleging that S&C exceeded standard legal practices by facilitating the fraudulent activities of the now-defunct cryptocurrency exchange, FTX. Court documents state that S&C lawyers created “misleading strategies that furthered FTX’s misconduct.” The lawsuit seeks damages for aiding and abetting fraud, fiduciary breaches, and civil conspiracy.

Additionally, on August 2, two U.S. Senators introduced a bill aimed at expanding the Secret Service’s powers to combat crypto-related criminal activity. The “Combatting Money Laundering in Cyber Crime Act of 2024” was introduced by Nevada-based Catherine Cortez Masto and Iowa-based Charles Grassley. If passed, the bill would allow the Secret Service to investigate crypto transactions by unlicensed money-transmitting businesses and potential fraud against U.S. financial institutions.

In another significant legal case, two artists filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) on July 29. The lawsuit seeks clarity on whether NFTs fall under the SEC’s regulatory authority. The plaintiffs’ attorneys are questioning the SEC on the necessity of registering NFT art before sales to the public and whether public disclosures regarding “risks” are required. This lawsuit aims to determine the exact regulatory requirements for NFT creators and sellers.

These developments highlight the ongoing legal challenges and regulatory uncertainties in the rapidly evolving landscape of digital assets and cryptocurrencies

Source: UK Proposing Property Category for Crypto Assets, SEC Facing Lawsuit Over NFTs

Is a Black Swan Looming as Bitcoin Dips Below $50,000?

In a significant market downturn, Bitcoin plummeted below $50,000, marking its lowest point in several months amidst a broader global stock market crash. From August 4 to 5, Ethereum also took a steep dive to $2,200, with other top cryptocurrencies experiencing similar declines.

The crypto market’s sharp drop led to over $1 billion in liquidations of future contracts in just one day, primarily affecting long positions. The current market crash is linked to a variety of factors including a strong correlation with the traditional stock markets, which have been declining due to geopolitical tensions and recent policy changes.

Recent economic decisions have intensified market instability. The Bank of Japan’s abrupt policy shift and the U.S. Federal Reserve’s refusal to lower interest rates have contributed to the uncertainty. Additionally, the market dynamics were influenced by significant actions taken by market players such as Jump Crypto. According to on-chain analysts, Jump Crypto’s recent large-scale Ethereum transactions have been a key driver in the cryptocurrency’s sharp decline.

Data from Spot On Chain indicate that substantial amounts of Ethereum were moved from wallets associated with Jump Trading to exchanges starting from late July, around the time of the Ethereum ETF’s launch in the U.S. On August 4, another 17,576 ETH worth $46.78 million were transferred from Jump Trading, totaling over 104,000 ETH moved.

This tumultuous period has reignited discussions about potential “black swan” events—unexpected developments with drastic market impacts. Such scenarios are not new to the cryptocurrency sector, which has faced similar events in the past with significant consequences. As the industry navigates these challenging times, experts like Peter Schiff from Euro Pacific Capital predict further declines coinciding with the U.S. market’s opening, while analysts like DeFi Mochi attribute Ethereum’s drop to extensive sell-offs by key investment funds. As market participants brace for potential further upheavals, the focus is on strategic responses to these high-impact market shifts.

Source: Bitcoin falls below $50,000: Is a black swan coming to the crypto market?

 Crypto Whales Positioning for Next Altcoin Rally as DeFi Rebounds

Crypto whales are gearing up for the next “altcoin season,” while DeFi loans are experiencing a resurgence, reaching levels last seen in 2022. 

In this week’s edition of Finance Redefined, we delve into significant developments shaping the decentralized finance (DeFi) landscape. Large crypto holders, or whales, are reportedly preparing for a potential altcoin rally by establishing “strong buy walls” for future altcoin demand.

CryptoQuant founder Ki Young Ju has noted that whales are anticipating the next altcoin rally. His analysis focuses on the one-year cumulative buy/sell quote volume difference for altcoins, a metric that tracks the disparity between buy and sell limit orders over a year. Ju explained, “Whales are preparing for the next altcoin rally,” highlighting that the rising level of this metric indicates an increasing number of buy-limit orders among large investors and institutions, signifying strong future demand for altcoins.

In tandem, the DeFi space is witnessing a revival, with active DeFi loans rising above $13.3 billion, a level not seen since early 2022. According to Token Terminal, “DeFi is waking up again,” as key metrics such as active loans and total value locked (TVL) are on the rise since their recent lows in 2023.

Meanwhile, decentralized finance protocol Morpho Labs has secured $50 million in funding led by Ribbit Capital to support its new Morpho Blue, a permissionless lending protocol. This round included participation from a16z Crypto, Coinbase Ventures, Variant, Pantera Capital, and Kraken Ventures. Morpho Labs had previously raised $23.6 million across multiple funding rounds.

However, not all news is positive. The Terra blockchain announced a temporary halt in operations due to a suspected exploit, resulting in the theft of millions in various cryptocurrencies. Terra aims to apply an emergency patch to resolve the issue.

Additionally, centralized finance (CeFi) entities remain the largest target for cryptocurrency hackers in 2024, with over 70% of hacked funds lost to CeFi, according to Deddy Lavid, CEO of Web3 security firm Cyvers.

As the majority of the top 100 cryptocurrencies by market cap ended the week in the red, the crypto market continues to navigate through volatility, awaiting clearer signals for the next bull run.

Source: Crypto Whales Positioning for Next Altcoin Rally as DeFi Rebounds  

Bitcoin Dips to $53K and Ether Turns Negative for 2024 as Market Panic Sets In

In a startling turn of events, Bitcoin’s price has plunged to $53,000, and Ether has turned negative for the year 2024. This sharp decline has triggered widespread panic among investors and sent shockwaves through the cryptocurrency market.

Bitcoin’s recent tumble marks a significant drop from its recent highs, causing considerable alarm among traders and investors. The sudden decrease in Bitcoin’s value has been compounded by Ether’s drastic fall, which has erased gains made earlier in the year and left it in the red for 2024.

The current market situation has resulted in a climate of fear and uncertainty, with many investors scrambling to reassess their positions. The drop in Bitcoin’s price and Ether’s negative performance highlight the volatility of the crypto market and the challenges faced by traders in navigating these turbulent conditions.

The drop in Bitcoin and Ether’s values has led to a broader market correction, affecting other cryptocurrencies and financial assets. This period of instability has raised concerns about the future direction of the crypto market and whether these assets can recover their lost ground.

As the market grapples with these developments, investors are advised to stay informed and consider the risks associated with trading cryptocurrencies. The current situation serves as a reminder of the unpredictable nature of the crypto market and the importance of prudent risk management.

In conclusion, the recent sharp declines in Bitcoin and Ether underscore the volatility and risks inherent in cryptocurrency trading. As the market continues to navigate through this challenging period, investors will be closely watching for any signs of stabilization and potential recovery.

Source: Bitcoin Tumbles to $53K, Ether Turns Negative for 2024 as Panic Grips Markets

Kujira Proposing DAO to Tackle Liquidity and Security Issues

Facing liquidity challenges and security exploits, Kujira plans to establish an Operational DAO to stabilize its ecosystem.

Kujira, a decentralized finance (DeFi) platform, has encountered significant obstacles after deploying operational funds to improve liquidity and activity. This move resulted in “exploits, socially engineered attacks, and fallouts within the ecosystem,” leading to rapid sell-offs and market destabilization.

In an official X post, the Kujira team announced plans to propose a decentralized autonomous organization (DAO) called the Kujira Operational DAO to address these issues.

The team acknowledged the difficulties, stating they had “worked hard” to maintain stability, but the rate of selling made it impossible. They said, “Although this was by design by a select few, we of course take full responsibility for the position getting to this point, and we are truly sorry that it’s affected price.”

Despite speculations from certain influencers on X, the team denied that the situation was a “rug pull.” The public statement received mixed reactions from the community, with Blockchain Ecologist calling the decision “extremely irresponsible management.”

Countering claims that the entire treasury is at risk, the team clarified that 14 million native KUJI tokens remain “safe and sound in the treasury.” The proposed Kujira Operational DAO would take ownership of the Kujira Treasury and core protocols, with an initial mandate to safely reduce debt. “We will do this with Fuzion’s Bonds product, allowing us to offer the community discounted $KUJI, with a range of maturities and vesting schedules to minimize long-term price impact,” they explained.

Additionally, the team suggested migrating the Community Pool to the Operational DAO to allow “a longer and more considered voting period for grant requests, as opposed to the regular 48 hours.” Over time, the Foundation staking positions will also be transferred to the DAO, providing a sustainable source of revenue.

According to the Kujira X announcement, the team plans to deliver the roadmap for “BOW v2, USK v2, GHOST v2 and Perps” in the coming months, aiming to restore stability and trust in the platform.

SOURCE: Kujira proposes DAO to tackle liquidity, security issues

“Meme Coin POPCAT Plummets 16% Overnight, Exits Top 100 Cryptocurrencies”

In the last 24 hours, the crypto market has seen a significant downturn, with meme coins like Solana-based Popcat (POPCAT) experiencing notable declines. Currently, POPCAT is trading at $0.62, marking a 16.24% decrease.

Amidst a broader market slump, many meme coin prices have fallen by double digits. Notably, POPCAT has not only suffered from price depreciation but has also dropped out of the top 100 cryptocurrencies by market cap. As reported by CoinGecko, the market cap for POPCAT has decreased from nearly $1 billion to $601.65 million, placing it at 102nd in market value rankings.

This decline in POPCAT’s market standing is partly attributed to external economic factors. The Federal Open Market Committee’s decision to maintain interest rates, coupled with escalating tensions in the Middle East, has impacted the broader crypto market, including POPCAT. Furthermore, a significant drop in Open Interest—from $70 million on July 27 to $44.92 million—indicates a decreasing market engagement with POPCAT.

The decrease in Open Interest suggests that more investors are closing their positions rather than opening new ones, potentially exacerbating the drop in POPCAT’s price. The sentiment surrounding POPCAT has also shifted drastically. While there was a bullish optimism just a few days ago, on-chain data currently shows a return to negative sentiment. This negative perception is measured through the Weighted Sentiment, which assesses market views based on social volume and now indicates that negative comments surpass positive ones.

Future Predictions for POPCAT

Looking ahead, the indicators suggest that the downward trend may persist. The Relative Strength Index (RSI) on the daily chart has fallen below the neutral threshold, signaling a bearish momentum. This metric reflects the velocity and magnitude of price movements, and its current decline suggests that the downtrend may continue, potentially pushing POPCAT’s price below $0.60 to a target of $0.51. However, market dynamics could shift if the token becomes oversold, potentially causing a bounce back to around $0.70. Traders should remain vigilant, as any increase in buying pressure could alter the current scenario significantly.

Source: Meme Coin POPCAT Price Drops 16% in 24 Hours, Falls from Top 100

DeFi Seeing Revival as Active Loans Return to 2022 Levels

Decentralized finance (DeFi) is showing a strong resurgence, with critical metrics such as active loans and total value locked (TVL) recovering significantly from their 2023 lows. This indicates renewed interest and participation in the DeFi sector.

On July 31, crypto market analytics platform Token Terminal highlighted this recovery, stating, “DeFi is waking up again.” The platform supported this claim with charts and data, revealing that active loans have returned to early 2022 levels, now standing at approximately $13.3 billion.

DeFi lending, which allows investors to lend their crypto holdings to borrowers and earn interest, is a vital indicator of DeFi activity and overall market health. During the 2021 crypto bull run, DeFi active loans peaked at $22.2 billion. However, this figure dropped dramatically, hitting around $3.1 billion by January 2023.

Since then, there has been a substantial rebound in DeFi lending. Token Terminal noted that the rise in active loans could signal increasing leverage, often seen as a precursor to a bull market.

DeFi’s TVL also saw a significant downturn in 2023, falling 80% from a peak of $180 billion in November 2021 to about $37 billion by October 2023. However, the sector has since bounced back by approximately 160%, with TVL currently around $96.5 billion, according to DefiLlama. In the first half of 2024, DeFi TVL doubled from $54 billion to reach a peak of $109 billion in June.

In a July 30 post, Humble Farmer Academy founder Taiki Maeda commented on the upcoming “DeFi renaissance” after more than four years of underperformance. He pointed out DeFi lending platform Aave as particularly promising, noting the surge in its native stablecoin GHO and the Aave DAO’s efforts to reduce costs and introduce new revenue drivers.

Despite these positive trends, CoinGecko reports that most DeFi-related tokens are still experiencing bear market lows. The market capitalization share for this category of crypto assets is just 3.4%. Notably, tokens from platforms like Aave, Curve DAO (CRV), and Uniswap (UNI) remain more than 80% below their all-time highs, even though the broader crypto market is down only 22% from its 2021 peak.

Source: DeFi Seeing Revival as Active Loans Return to 2022 Levels