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English High Court Recognizes Tether as a Property

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An English high court made history by becoming the first court in the UK to classify a cryptocurrency as a property at full trial.

Crypto’s status as a property has been confirmed in a recent ruling in the English High Court. On Thursday, the presiding judge, Richard Farnhill, ruled that Tether’s stablecoin USDT could be classified as a property in a fraud case.

Judge Farnhill stated that USDT attracted property rights under English law because it possesses certain property characteristics, which include traceability and usage as a trust property. It is worth noting that this was the first-ever ruling in the United Kingdom in which cryptocurrencies were classified as property at full trial.

Notably, the usage of cryptocurrencies has gone broader over time. A court in the United Arab Emirates categorized cryptocurrencies as a means of salary payment in August. There was also an earlier report where a Texas financial organization offered employee payment in Bitcoin.

Case Etymology

The Thursday case was a lawsuit filed by plaintiff Fabrizio D’Aloia. The claimant stated that an unidentified defendant scammed him and made off with his cryptocurrencies. According to the filing, the funds were denominated in USDT and Circle’s USDC and worth £2.5 million ($3.3 million).

D’Aloia filed the lawsuit against seven defendants, which included two unknown persons, Binance, Gate Technology Corp., Polo Digital Assets, AUX Cayes, and Bitkub. An earlier court sitting had nullified charges against the largest crypto exchange, Binance, with the September 12 hearing focused on Thai-based trading platform Bitkub.

According to the lawsuit, D’Aloia stated that the unidentified defendant moved his stolen funds through several networks and crypto-mixing platforms before another defendant withdrew the money through Gate.io and Bitkub. D’Aloia further claimed that 46,291 USDT from the 400,000 USDT Bitkub received in February 2022 was a part of his stolen crypto.

However, Farnhill stated that although USDT could be traced, D’Aloia doesn’t have sufficient evidence to prove that his USDT was part of the funds Bitkub received at its address on the said date. He ruled that the plaintiff couldn’t seek a refund from the Thai-based exchange as it didn’t enrich itself from his funds.

UK Introduces Crypto Property Bill

The ruling came a day after the UK Labour government introduced a bill to the Parliament to classify digital assets as property. The law would require the judicial system to treat digital assets as property during cases of ownership disputes or fraud.

According to the filing, certain cryptocurrencies, non-fungible tokens (NFTs), and real-world assets (RWA) would be seen as “things.” Minister of Justice Heidi Alexander noted that some digital assets may not fall into any category of things under the current law (“thing under possession” and “thing under action.”) However, the law would treat them with property rights.

IOHK Releases Key Updates, as Cardano Hits 96M Transactions

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Input Output, the technology company behind the Cardano blockchain, has shared its latest weekly development report, highlighting significant progress in various areas of the ecosystem. 

The report, revealed today, spotlights scaling initiatives, governance updates, ongoing efforts in Project Catalyst, and educational programs. 

According to the report, 1,373 projects are currently building on Cardano’s network. Also, the ecosystem boasts about 1.33 million delegated wallets. In addition, Cardano now supports 10.36 million native tokens, with 165,546 token policies ensuring governance and control over assets. 

The number of Plutus scripts deployed has reached 84,783, marking increasing adoption of smart contracts within the ecosystem. Notably, transaction volume has surged to 96.38 million.

Cardano Weekly Development Report IOHK
Cardano Weekly Development Report | IOHK

Mithril Network Decentralization

The report also covered significant developments in scaling efforts, particularly in the decentralization of the Mithril network’s signature orchestration. The Mithril team implemented a buffer store to manage signatures awaiting processing, while also refining the state machine of the signer. 

These updates seek to optimize Cardano’s transaction processing capabilities. The performance and tracing team contributed by releasing benchmarks for node v.9.1.1 and addressing UTXO-HD RAM usage issues.

Governance and Voltaire Development

Governance remains a key focus for Cardano, with the report detailing ongoing developments under the Voltaire phase. Intersect MBO, which includes Input Output, oversees this governance framework. 

Applications for committee and board seats are now open, giving the community a voice in shaping the future of Cardano. These positions are open until September 27, with only paid members eligible to participate. 

Catalyst and Educational Initiatives

In Project Catalyst, onboarding of Fund12 winners is nearly complete, while Fund13 categories were introduced during town hall 174. Catalyst supports innovation through community-proposed projects, furthering Cardano’s growth. 

On the education front, Input Output is preparing for upcoming Cardano Days events in Wyoming and Spain, while also updating content for the Mastering Cardano book. These educational initiatives highlight Cardano’s commitment to community engagement and knowledge-sharing.

Legal Experts React as SEC Regrets Confusion Over Its Crypto Asset Security Claim

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The U.S. SEC expresses regret for any confusion it may have created through the use of its invented term, “crypto asset securities.” 

In an interesting development, Coinbase’s Chief Legal Officer (CLO) Paul Grewal called the public’s attention to the SEC’s recent efforts to backtrack on its claim that crypto assets themselves constitute securities. 

SEC Regrets Confusion Over Its Crypto Asset Security Definition 

Per Grewal, the SEC made this move in footnote six of the amended complaint in the Binance lawsuit.

Footnote 6 in SEC Ammended Complaint
Footnote 6 in SEC Ammended Complaint

Notably, the SEC said it regrets any confusion it may have invited by repeatedly using the term “crypto asset securities.” 

According to the SEC, the term does not imply that the crypto assets are inherently securities themselves. Instead, it uses the term as a shorthand for the expectations, set of contracts, and understanding surrounding the sale and distribution of the token. 

Interestingly, the SEC vowed never to use the term in the proposed amended complaint (PAC) to avoid further confusion. 

SEC Backtracks 

Last year, the SEC labeled ten crypto assets, including Solana (SOL) and Cardano (ADA), as securities in its lawsuit against Binance. A year later, the regulator requested that it wished to amend its complaint, eliminating the need for the court to issue a verdict characterizing the tokens as securities.

The SEC officially filed the amended motion yesterday, expressing regrets for the confusion its use of the term crypto asset securities has created in the lawsuit. 

Notably, Binance is required to file a response to the SEC’s motion for amendment by October 11, 2024. The world’s largest exchange is expected to either consent or oppose the SEC’s request. 

Legal Experts React 

Expectedly, top legal experts reacted to the SEC’s backtracking and admission of its wrong usage of crypto asset securities. 

Grewal, who called the public’s attention to the development, criticized the SEC, questioning how Ethereum (ETH) transactions were no longer classified as securities while the ten tokens at issue in the Binance lawsuit remain under scrutiny. He asserted that the SEC might reveal this sudden change only when it takes legal action against an entity. 

The Coinbase CLO added that the SEC has a long history of treating tokens as securities, questioning why the regulator chose to mislead the court with its recent filing. Interestingly, Grewal mentioned Ripple’s CLO Stuart Alderoty in the X thread, humorously stating that the SEC’s admission of wrongdoing would leave him perplexed. 

Reacting, Alderoty noted that the SEC admitted two things in the Binance lawsuit. First, the agency acknowledged that crypto asset security is a made-up term. Second, it requires a bundle of contracts, understandings, and expectations to prove that a crypto asset security is an investment contract. 

He added that it is about time the SEC admitted that the agency has become a twisted “pretzel of contradictions.”  

Furthermore, prominent legal expert James Murphy (a.k.a. MetaLawMan) expressed outrage about the SEC’s recent admission. 

The pro-XRP lawyer criticized the SEC’s “make it up as you go along enforcement strategy,” suggesting that the approach has harmed U.S. investors, damaged the country’s reputation for innovation, and harmed American companies. 

MicroStrategy Expands Bitcoin Portfolio by 18,300 BTC, Funded by $1.11 Billion Stock Sale

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Business intelligence firm MicroStrategy, renowned for its Bitcoin holdings, has once again expanded its cryptocurrency portfolio by purchasing an additional 18,300 BTC tokens.

MicroStrategy Chairman Michael Saylor disclosed the latest acquisition in a post on X a few hours ago. As highlighted in the associated SEC filing, the acquisition took place between August 6 and September 12.

Buying at an average price of $60,408 per BTC, MicroStrategy injected fresh capital of $1.11 billion into the Bitcoin market. This move comes just weeks after the firm disclosed its intention to raise $2 billion from its shares, part of which would go toward Bitcoin purchases.

Indeed, as the SEC filing shows, MicroStrategy’s recent Bitcoin acquisition was funded by the proceeds from a stock sale, which was facilitated by an agreement in August to offer up to $2 billion of its shares through sales agents.

As of September 12, the company had sold a total of 8,048,449 shares, generating $1.11 billion in revenue, which was used to purchase the additional 18,300 BTC.

MicroStrategy Now Holds $14 Billion in Bitcoin

Following this latest buying spree, MicroStrategy commands a Bitcoin war chest of 244,800 BTC tokens with a current value of around $14 billion. Notably, the company’s entire Bitcoin holdings were acquired at an average price of $38,585 per coin, with a total investment of around $9.45 billion.

This latest Bitcoin purchase continues MicroStrategy’s aggressive Bitcoin acquisition strategy. In August, the company acquired $11.4 million in Bitcoin, and in June, it purchased $786 million worth. In fact, the firm has bought Bitcoin nearly every month since September 2020.

It’s worth mentioning that MicroStrategy is currently at a loss on all recent Bitcoin acquisitions from March, as the current value of BTC is below its acquisition price. Interestingly, the ongoing losses have not deterred the firm from adding more tokens.

MicroStrategy in loss
MicroStrategy in loss

Michael Saylor noted that this latest purchase has contributed to the company’s strong Bitcoin performance, with a quarterly yield of 4.4% and a year-to-date yield of 17.0%.

Furthermore, MicroStrategy’s share price has seen a slight uptick amid the significant Bitcoin purchase announcement. It has risen by 1.25% over the past day to trade at $132, as reported by TradingView.

Bloomberg Strategist Expects Bitcoin to Drop Against Gold Amid Shift from Risk Assets

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Bitcoin may be experiencing a decline against more stable assets such as gold as investors shift appetite from risk assets amid economic uncertainties.

Bloomberg’s senior commodity strategist, Mike McGlone, recently suggested that Bitcoin could experience a decline in its valuation compared to gold, a traditional safe-haven asset. 

This analysis from the market technician comes at a time when investors seem to be shifting away from high-risk assets in favor of more stable options, as the risk of economic tensions worsens.

Bitcoin’s Peak and Its Reversion Against Gold

According to McGlone, the Bitcoin/Gold ratio recently reached its peak in March 2024. This surge was fueled by investor enthusiasm over the introduction of Bitcoin exchange-traded funds (ETFs) and favorable market conditions. 

Bitcoin|Gold Chart Bloomberg
Bitcoin|Gold Chart | Bloomberg Intelligence

For context, within this period, Bitcoin spiked 184% from $25,927 in September 2023 to its all-time high of $73,794 in March 2024. The rally mirrored broader risk-on sentiment in the financial markets, with Bitcoin vastly outperforming gold during this period.

However, the tide is turning. Bitcoin has begun to lose momentum, steadily retreating against gold. Interestingly, BTC has slumped 34% from its peak against gold in March, now trading for 22.42 ounces. Currently, the ratio has already fallen below key levels.

BTCAUXT 1M Chart
BTCAUXT 1M Chart

Notably, McGlone believes this decline could continue, with Bitcoin possibly reverting to a historical low of 15x compared to gold. This sentiment aligns with projections of a BTC drop to $31,500.

McGlone attributed this reversal to several factors, including the tapering of speculative behavior in financial markets. 

As central banks tighten monetary policy and liquidity drains from the market, risk assets like Bitcoin are losing favor. Gold, which traditionally performs well in periods of economic uncertainty, may become a more attractive option for investors seeking stability.

A Broader Look: Bitcoin v S&P 500

In a separate analysis, McGlone discussed Bitcoin’s performance against the S&P 500. The Bitcoin/S&P 500 ratio, which peaked at 21x in 2021, has steadily declined to 10x as of September 2024. 

Again, this decline is a reflection of the broader market situation where high-beta, high-risk assets like cryptocurrencies and tech stocks have suffered as liquidity fades.

McGlone indicated that the ratio could fall even further, possibly reaching 7x, a level last seen in 2017 during the launch of Bitcoin futures. This would mark a significant shift in investor sentiment. 

As risk appetite wanes, traditional stocks and even Bitcoin, which once outpaced the broader market, are losing their appeal. Investors seem to be rotating away from speculative assets in search of safer investments.

In parallel, the S&P 500’s performance relative to gold is also declining. The S&P 500/Gold ratio could revert to 2x, McGlone predicts. Currently, Bitcoin now trades for $58,035, down 1.49% this month but still up 9% against gold this year.

BitBoy Insists Cardano is “Dead” With No Institutional Interest as Grayscale Revives XRP Trust

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Grayscale’s recent decision to welcome back an XRP Trust continues to attract mixed reactions, with commentators like Ben Armstrong, aka BitBoy, seeing an avenue to lash Cardano (ADA).

Reacting to Grayscale’s announcement, Armstrong reiterated his long-standing belief that XRP has institutional interests, whereas Cardano (ADA) “simply does not.”  He views Grayscale’s reopening of the XRP Trust for daily subscriptions to accredited individual and institutional investors as confirmation of this belief.

Moreover, Armstrong noted that this marks the beginning of significant developments for XRP and expressed confidence that the XRP Army will ultimately prevail.

“Cardano is ‘Dead’ With No Institutional Interest”

Notably, BitBoy’s commentary builds on a previous claim where he cast doubt on ADA’s long-term price potential. In July, Armstrong reaffirmed that ADA is a “dead” crypto asset unattractive to venture capitalists. 

He argued that ADA’s lack of institutional interest spells its demise as a legitimate investment. However, he acknowledged that ADA may still yield returns during this bull run, albeit smaller compared to other assets.

BitBoy reiterated this view after Cardano’s founder, Charles Hoskinson, declined to engage in a discussion with him, citing BitBoy’s history of criticism toward ADA.

Interestingly, in April, Grayscale liquidated its Cardano holdings in its Digital Large Cap Fund to reinvest the proceeds into XRP. This move further solidified BitBoy’s belief that institutional investors are losing interest in ADA.

As Grayscale reinstates its XRP Trust without a comparable move for Cardano, Armstrong sees it as further validation of his perspective.

Cardano Army Fires Back

However, ADA enthusiasts continue to challenge his claims. Hoskinson previously responded to BitBoy’s “ADA is dead to institutions” statement by emphasizing that cryptocurrencies were originally designed to replace traditional institutions, not cater to them.

Others argue that Cardano never relied on venture capital funding and instead focused on serving its community rather than institutional interests.

Some have even dismissed BitBoy, saying he has lost credibility in the crypto scene and that his opinion should be discarded.

Kraken Files for Jury Trial, Argues Cardano Is Not a Security in Case Against SEC

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Kraken took a stand against the SEC on Thursday, stating that the regulator’s claims that it offered unregistered securities were false.

Another exchange has taken a giant leap in a legal battle against the US Securities and Exchange Commission (SEC). This time, California-based Kraken has demanded a jury trial for allegations leveled against it by the US top regulator.

In a Thursday filing, Kraken denied the SEC’s accusations that it offered unregistered securities to US investors. The battle began in November 2023, when the SEC leveled those claims against the exchange.

Kraken asserted that the crypto assets the SEC classified as securities were not. Tokens like Cardano’s ADA, SOL, ALGO, MATIC, NEAR, FIL, MANA, FLOW, ICP, OMG, and ATOM were classified as securities by the Wall Street regulator.

According to the filing, Kraken stated that the SEC has not clarified why it categorized the assets as securities. The US-based platform insisted that the cryptocurrencies in question have not been proven to fail the Howkey test, a ruling widely used to determine which asset was a security.

Kraken Cites Regulatory Overreach

Per the Thursday filing, Kraken noted it had met a series of stumbling blocks in its effort to amicably resolve the allegations with the SEC; hence, the jury request. The exchange stated that the regulator has insisted on implementing unclear guidelines on its operation, citing a regulatory overreach.

Furthermore, Kraken stated that the SEC has yet to single out a part of its operations that was in line with the 2023 lawsuit. The exchange insisted on a lack of clarity as to which of its activities constituted offering investment contracts.

The US-based trading platform noted it doesn’t offer bonds or stocks, which are financial securities. However, it gives users a platform that allows them to buy digital assets, which are not classified as securities. Kraken saw its last effort to dismiss the SEC lawsuit rejected by the court.

Kraken Makes the Most of SEC’s Amended Filing

Kraken asserted that some of the terms used in the lawsuit were ambiguous and needed clarity on them. Among the words mentioned were “crypto asset securities,” “Kraken-Traded Securities,” “proprietary assets,” and “investors.”

The “crypto asset securities” term was one of the details the SEC filed to correct in its Thursday application. According to the regulator, the term did not imply that crypto assets are securities in themselves.

Kraken opted for a legal ruling, like Ripple, in contrast to eToro’s disposition. The Crypto Basic reported that the Israel-based exchange agreed to take on a new operational term in its settlement with the SEC. The firm would offer only Bitcoin, Ethereum, and Bitcoin Cash to US users and pay a fine of $1.5 million.

TRON Meme Market Surge 17% as Justin Sun Predicts $1B Milestone

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The market cap of TRON’s meme coins has climbed to $594 million, marking a 17.3% rise within just 24 hours. 

Notably, this growth follows a recent announcement by TRON founder Justin Sun, who hinted that the market might continue its upward trajectory. TRON community members are closely watching for signs of further growth following Sun’s comments, which suggest that TRON’s meme market could reach $1 billion. 

The idea has been met with enthusiasm, and many community members are now speculating on which meme coins will be responsible for driving this surge.

In an earlier statement, Sun shared that community-driven efforts are the backbone of meme coin success. According to him, strong, loyal communities behind meme coins play a critical role in fostering their growth and value.

He also pointed out that these projects offer fairness and decentralization, creating opportunities for wider participation in cryptocurrency gains.

This positive sentiment is mirrored by notable whale activity on the platform. For instance, Lookonchain data indicates that a whale recently withdrew over 13 million TRX from Binance and used it to purchase 3.52 million SUNDOG tokens in a single transaction.

This move has further heightened attention on TRON’s meme coins, with open interest in SUNDOG increasing by 50%, according to on-chain analytics firm Coinglass.

Investors Show Increased Interest

Further, investor interest in TRON-based meme coins has increased significantly, with key tokens experiencing substantial gains. In the past week alone, TRON Bull recorded a 117.8% jump, with SUNDOG following closely behind with a 58.7% increase.

Additionally, MUNCAT and SUNCAT also showed strong performance, rising by 65.6% and 33.6%, respectively. These figures indicate that confidence in TRON’s meme coin ecosystem is growing rapidly, attracting both retail investors and major players.

SunPump, a platform dedicated to launching meme coins on TRON, has been instrumental in driving this surge. Per a late August report, since its launch on August 9, SunPump had generated over $1.2 million in revenue.

The platform’s impact has been widely felt, especially with a peak of $2.76 million in daily revenue recorded on August 20. The influx of new meme coins on TRON, supported by SunPump, has further fueled market activity.

Dogecoin Surpasses $0.10 as Elon Musk Eyes “Dogefather” Title

Dogecoin, after a prolonged wedge breakout, is testing the 50-day exponential moving average (EMA), signaling significant upside potential.

Following a bullish reversal within a falling wedge pattern, Dogecoin has broken through a resistance trendline that had persisted for five months. This trendline had driven Dogecoin’s decline from its 52-week high of $0.22899 to a recent low of $0.08049 as of August 5.

DOGE Breakout Roll Exceeds $0.10

On the daily chart, Dogecoin’s recovery has pushed it above the key $0.10 psychological level and breached the overhead trendline. Currently trading at $0.10510, the coin has gained 2.35% intraday, forming a new bullish engulfing candle. Over the past 39 days, DOGE’s price has surged by 30.62%, indicating a robust bullish cycle.Dogecoin price Chart

Dogecoin Price ChartThe rising bullish momentum in Dogecoin is reflected by a positive crossover between the MACD and signal lines, with increasing positive histograms. However, the key daily EMAs (50, 100, and 200) are currently aligned bearishly, with the 100-day (green) and 200-day (blue) EMAs recently crossing negatively.

Dogecoin’s recovery rally is testing the 50-day EMA (yellow), which is acting as dynamic resistance. A bullish breakout above this average could signal a new buying opportunity for traders.

If the upward trend continues, Dogecoin could target resistance levels at $0.1130, $0.1402, and $0.1739. Conversely, if it struggles to maintain its position above the $0.10 psychological mark, potential support levels are at $0.09783 and $0.09253.

Elon Musks Seeks The Title “Dogefather”

In a recent appearance on the All In Podcast, tech billionaire Elon Musk reignited enthusiasm for Dogecoin by recreating a classic scene from The Godfather with a crypto twist.

Adopting the role of the “Dogefather,” Musk donned a tuxedo and channeled Don Vito Corleone’s iconic tone, even declaring, “Call me the Dogefather.” His charismatic portrayal has significantly heightened bullish sentiment in the crypto community, fueling a surge in Dogecoin demand.

What’s Next For Solana as FTX Unstakes $1B SOL

As Solana approaches a comeback, potentially surpassing $137, a black swan event signals a massive influx of supply, which could lead to a significant crash.

Solana has established a strong bullish foundation above the $125 support zone, resulting in several reversals. Since March 2024, the SOL price has rebounded nearly seven times from this demand zone, marking it as an ideal “BUY” area.

However, with the recent reversal from the $125 mark, resistance at the 23.60% Fibonacci level remains. Will the bullish momentum be sustained and extended further?

Solana Recovery Hits Local Ceiling

In the daily chart, Solana exhibits a potential rounding bottom reversal from the $125 zone as the market recovers. Long-tail candles are fueling the bullish momentum, and the SOL price has surged by 11.32% over the past week, rising from a low of $120.51.

Solana Price Chart
Solana Price Chart

However, the recovery rally in Solana finds a massive hurdle, keeping the growth under check at $137. The 23.60% Fibonacci level acts as the neckline of the short-term V-shaped reversal. 

Further, the sideways-moving 200-day EMA(blue) above the neckline is ready to act as the second line of bearish attack. Meanwhile, the threat of a death cross looms over Solana with the declining 50-day EMA(yellow). 

The momentum indicator, MACD, shows a positive crossover in the average lines, reflecting a boost in bullishness. Further, the rising positive histograms support the breakout chances. 

Huge Incoming Supply Warns Solana Crash

Notably, the bankrupt FTX and Alameda group is unloading over $1 billion worth of Solana. Over the past three months, the firm has unstaked 530,000 SOL, valued at approximately $71 million, and redistributed it across multiple addresses.

The transfer activity averages 176,700 SOL per month, valued at $23.5 million, including a recent redemption of 177,693 SOL worth $23.75 million. Despite this substantial release of potential supply, FTX and Alameda still hold 7.06 million SOL, worth $945.7 million, in staked assets.

This unstaking coincides with a recent transfer of 231.4 BTC, valued at $13.5 million, from an FTX/Alameda-linked wallet, with 200 BTC being sent directly to a Coinbase wallet.

Furthermore, with FTX making news again, it is worth noting the Manhattan federal court has scheduled a hearing date for the Former FTX Exec Caroline Ellison. 

Will Solana Hold Dominion Over $125?

The $125 level serves as a crucial multi-point support zone for Solana. A bearish close below this level could trigger a market panic sell-off. Coupled with the substantial supply held by the FTX and Alameda group, there are concerns that bearish pressure could intensify soon.

However, as long as the group does not release its holdings, Solana’s uptrend is expected to persist. A potential breakout above $137 could occur this weekend, with targets set at $150 and $160 if the price exceeds $138.

On the downside, if support at $125 fails, the next support levels are $117, $110, and the psychological mark of $100.