Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. SOL Is a Security?: The U.S. Securities and Exchange Commission (SEC) might still consider Solana (SOL) and other cryptocurrencies as securities despite withdrawing a request for a court ruling on their status in its lawsuit against Binance.

2. ZKX Protocol Shuts Down: ZKX Protocol, a social derivatives trading platform on Starknet, ceased operations due to minimal user engagement and financial sustainability issues.

3.  📈Technical Analysis Masterclass - While Bitcoin shows bearish signs in the short term, the long-term outlook remains bullish. Watch UseTheBitcoin’s latest Youtube video “What is happening with Bitcoin? It's down again?!” to know your next move or join our Official Telegram Channel for more alpha!

4. Wemix.fi Suspends Lending: Wemix.fi suspended its lending and borrowing services due to issues with liquidating its USD-pegged stablecoin, WEMIX$.

5. 💡Feature of the Day - Attacker Steals Tokens on Terra: The Terra blockchain suffered a security exploit resulting in the theft of approximately $3 million worth of tokens due to a vulnerability in the IBC hooks module.

   
   All this and more in today’s headlines!

📰 News Highlights:

SOL Is a Security? [Source][Source][Source][Source]

Despite recent legal developments, the U.S. Securities and Exchange Commission (SEC) may still consider Solana (SOL) and other cryptocurrencies as securities. This comes after the SEC retracted its request for a court ruling on the security status of certain tokens in its lawsuit against Binance on July 30.

Jake Chervinsky, Chief Legal Officer at Variant Fund, suggested in a post that the SEC's withdrawal does not imply a change in its stance. Instead, the SEC continues to label these tokens as securities in other legal actions, such as its ongoing case against Coinbase.

Miles Jennings of a16z Crypto and Justin Slaughter of Paradigm echoed Chervinsky’s sentiment, arguing that the SEC’s recent filing has been overinterpreted by some in the crypto community.

Jennings noted that Judge Amy Berman Jackson had set a high bar for proving these tokens are securities under the Howey test, making it impractical for the SEC to pursue this argument in the Binance case.

However, in the Coinbase lawsuit, Judge Katherine Polk Failla appears more sympathetic to the SEC’s position, which could influence the regulatory body’s strategic decisions.

ZKX Protocol Shuts Down [Source][Source]

ZKX Protocol, a social derivatives trading platform on the Starknet network, has ceased operations due to minimal user engagement and financial sustainability issues.

Founder Eduard Jubany Tur announced the shutdown on July 31, citing decreased trading volumes and insufficient daily revenue to cover cloud server costs. Despite delisting all markets and returning user funds, the protocol could not find a viable economic path forward, marking the end of its brief operational period.

The closure follows a strategic funding round in June that raised $7.6 million from investors like Flowdesk, GCR, and DeWhales. Previous backers included Hashkey, Amber Group, Crypto.com, and StarkWare.

However, the launch of ZKX’s native token, ZKE, did not meet expectations, with its value plummeting as major token holders opted to cash out.

 📈Technical Analysis Masterclass /🫨 What’s Buzzing? / 📜 Your Daily Thread:

What is Happening with Bitcoin? It's Down Again?!

Bitcoin's recent downward movement is frustrating, especially after all the news and hype. Here's a concise analysis of the current situation.

Daily Timeframe Analysis

• Head and Shoulders Pattern: Indicates a potential move to the downside.

• Bull Trend Criteria: No series of higher highs, suggesting another possible downward move.

• RSI Levels: Moving downwards, showing fading buying momentum.

• Moving Averages: Not in favorable positions, pointing to a downside.

Short-Term Outlook

• Micro Picture: More signs pointing downwards, potential series of red candles in the next few days or weeks.

Weekly Timeframe Analysis

• Consolidation Above Support: Indicates Bitcoin is conserving energy for the next upward movement.

• Weekly RSI Levels: Far from overbought, indicating room for growth.

Long-Term Outlook

• Bear Pattern in Short-Term: In smaller timeframes, Bitcoin shows a bearish pattern.

• Bullish Sentiment in Long-Term: Larger timeframes indicate a bullish sentiment. Patience is key, as the market needs to break out of its consolidation phase.

Wemix.fi Suspends Lending [Source][Source][Source]

Wemix.fi, the decentralized finance platform for the cryptocurrency Wemix, has suspended its lending and borrowing services due to issues with liquidating its USD-pegged stablecoin, WEMIX$.

The platform announced this on July 30, promising to provide further updates on the resumption of services. The suspension follows the recent sale of shares by former Wemade CEO Jang Hyun-kook, which drove the price of Wemix to a yearly low of $0.94.

The platform's decision to halt services is linked to various challenges, including Jang’s resignation earlier this year and subsequent legal issues tied to a political scandal.

Despite efforts to innovate with the introduction of Wemix Pay and a new governance mechanism, the price of Wemix has continued to decline.

Wemade has faced multiple setbacks since its mainnet launch in May 2022, including accusations of misrepresenting the amount of Wemix in circulation, delisting from major South Korean exchanges, and a significant tax bill.

💡 Feature of the Day: 

Attacker Steals Tokens on Terra [Source][Source][Source][Source]

The Terra blockchain has suffered a security exploit resulting in the theft of tokens due to a vulnerability in the IBC hooks module.

This module, which facilitates cross-chain contract calls and token movements, was exploited by an unknown attacker to drain value from bridged assets, including USDC stablecoin and Astroport tokens. Initial estimates suggest around $3 million worth of tokens were stolen.

Upon discovering the exploit, Terra implemented emergency measures to prevent further theft, coordinating with validators to apply an emergency patch.

This vulnerability had been identified and patched across the Cosmos ecosystem in April, but a subsequent upgrade on Terra in June failed to include the patch, leading to the renewed exposure.

Zaki Manian, co-founder of Sommelier Finance, explained that the lapse in implementing the patch during the June upgrade allowed the attacker to exploit the IBC hooks module.

😂 Crypto Meme of the Day: 

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com