⚖ The verdict is in: 25 years in prison for Sam Bankman-Fried
⚖ The verdict is in: 25 years in prison for Sam Bankman-Fried
Welcome to the Daily Tribune, Friday, March 29, 2024 ☕️
Hello Cointribe! 🚀
Today is Friday, March 29, 2024, and like every day from Tuesday to Saturday, we summarize the news of the past 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Cloudy ☁️
24-hour crypto summary ! ⏱️
🚨Sam Bankman-Fried sentenced to 25 years in prison
Sam Bankman-Fried, former CEO of FTX, has been sentenced to 25 years in prison, ending the tumultuous episode of the downfall of FTX, one of the most prominent cryptocurrency exchange platforms. This punishment is the result of massive fraud that led to losses exceeding $10 billion for clients and investors affected by the platform's collapse. The severity of this sentence reflects the magnitude of the wrongdoing attributed to Bankman-Fried, highlighting fraudulent practices and complex manipulation that led to one of the biggest financial debacles in the cryptocurrency sector.
In addition to Bankman-Fried's specific case, this judgment is seen as a warning to the entire financial industry, especially the cryptocurrency sector, demonstrating the intention of the US justice system to vigorously prosecute offenses of this nature. However, the judgment is not yet final, as Bankman-Fried's defense plans to appeal, arguing that the sentence is disproportionate given the non-violent nature of the offense. This trial will undoubtedly set a significant precedent in the regulation and judicial treatment of financial crimes in the cryptocurrency space.
🔥 Surge in Ethereum fees due to BlobScriptions
The introduction of "BlobScriptions" on Ethereum has led to a surge in transaction fees, raising questions about hopes for more affordable data storage costs after the Dencun update. This protocol, developed by Middlemarch, allows users to embed multimedia content directly into Ethereum \"blobs,\" intended to facilitate and save on transactions. The enthusiasm for this new feature has been such that blobs, previously available for free, have become a scarce resource, pushing costs to unprecedented levels. In fact, over 4500 BlobScriptions have been created, using up to 41% of new blobs generated in a single day, illustrating the extent of adoption by the community.
The direct consequence of this massive adoption has been a steep rise in blob fees, which have skyrocketed from a few gweis to over 500 gweis (about $18) in a very short time. This sudden increase raises concerns about the long-term effects on the Ethereum ecosystem, particularly regarding the ability to maintain economical and accessible transactions on the blockchain. Despite a relative stabilization of fees, this situation has highlighted unexpected challenges for Ethereum, prompting developers and users to reflect on the balance between innovation and cost, while questioning the future of economical transactions on this blockchain.
📈 Coinbase on track to surpass Binance?
Coinbase had an exceptional year in 2023, with remarkable stock performance and a spectacular increase in trading volumes, reaching almost six billion dollars in March. This rise is particularly noteworthy after the challenges of 2022, including regulatory confrontations with the SEC and technical issues. Speculations are circulating about possible government support for Coinbase as part of a strategy to counterbalance Binance's influence on the cryptocurrency market. These impressive performances coincide with a period of recovery for the cryptocurrency market in general, as illustrated by the steady growth of Coinbase's stock.
In detail, Coinbase has demonstrated resilience and the ability to capitalize on favorable market conditions, resulting in an increase of over 10% in stock price in 24 hours, 44% in February, and 346% over the past year. This positive trend reflects renewed investor confidence in the platform and the cryptocurrency market as a whole. Coinbase has also benefited from the rise of bitcoin and other cryptocurrencies by providing essential services such as cryptocurrency custody, which has contributed to its financial growth and positioning as a potential leader in the international cryptocurrency exchange market.
💸 Bitcoin: Investors taking profits
In the bitcoin market, significant profit-taking activity has been observed, coinciding with a price increase of bitcoin beyond $70,000. According to Glassnode data, a significant amount of bitcoins, purchased at an average cost higher than $61,200, has been sold, allowing holders to realize significant profits. This phenomenon was particularly evident when the price of bitcoin reached a historical high of $73,200, with over $2.6 billion in profits recorded through on-chain transactions in a single day. Both long-term holders, including those who liquidated their positions in the GBTC Trust, and short-term holders actively participated in this profit-taking activity, taking advantage of the market rally to secure their gains.
The trend of profit-taking reflects a common strategy among investors, signaling a moment of increased value realization among bitcoin holders. Analysis shows that long-term holders have played a predominant role in this dynamic, suggesting a inclination to capitalize on favorable market conditions. At the same time, active participation by short-term holders indicates responsiveness to market sentiment and a willingness to profit from price fluctuations. This profit-taking activity by a cross-section of investors highlights the varied behaviors within the bitcoin community in response to price movements, underscoring the complexity and diversity of investment strategies in the cryptocurrency space.
Cryptocurrency of the day: Qtum (QTUM)
Qtum represents an innovative fusion of the strengths of Bitcoin and Ethereum, offering a blockchain platform that combines Bitcoin's immutable transaction model with Ethereum's smart contract and dApp capabilities. This unique hybrid introduces an ecosystem conducive to the development of secure and interoperable decentralized applications (dApps), thereby promoting wider adoption of blockchain technology in various sectors. The main value proposition of Qtum lies in its ability to provide a more scalable and secure solution for smart contracts, making the blockchain accessible to industries such as finance, IoT, and beyond.
The native cryptocurrency of Qtum, also named QTUM, serves as fuel for executing smart contracts and conducting transactions within its network. Initially distributed through an initial coin offering (ICO), QTUM has attracted attention for its pragmatic approach to solving interoperability and scalability issues. For holders, QTUM not only offers an investment opportunity in a promising blockchain platform but also provides a practical means of engaging and participating in the development of decentralized applications. The use of QTUM encompasses payment of transaction fees, participation in network governance, and incentives for securing the blockchain through staking.
Recent Performance
Current price: Approximately $4.89 (~€4.47)
Percentage increase/decrease: About 5.11% in 1 day
Market capitalization: Approximately $510,156,093 (~€465,522,385)
Rank on CoinMarketCap: #165
Understanding "Max Pain Price" in the Bitcoin options market
We discussed the "max pain price" in yesterday's newsletter. Here's an explanation in case you missed it.
The "max pain price" is a key concept in the options market, particularly in the realm of cryptocurrencies like Bitcoin. It represents the exercise price at which the sum of financial losses for holders of call options and put options is maximized at the expiration date of the contracts. In other words, it is the price level at which investors who speculated on the future direction of the Bitcoin price through options suffer the greatest financial losses. This phenomenon occurs because option holders end up with contracts that are worth much less than expected or are completely worthless at expiration.
The interest around the "max pain price" stems from its potential impact on market prices. Some traders believe that the price of Bitcoin could be manipulated or naturally gravitate towards the "max pain price" as options expiration approaches, as option sellers (often institutions or traders with large portfolios) may seek to minimize their payments or losses.
Although the concept of "max pain price" offers a fascinating perspective on market dynamics, it does not guarantee price movements and should not be used in isolation to make investment decisions. Cryptocurrency markets are influenced by a multitude of factors, and prices can be affected by much more than just options expirations.
