Good Morning Crypto Enthusiasts!

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

1. US Solana ETFs: The approval of Solana ETFs in the U.S. remains uncertain despite some optimism from VanEck’s Head of Digital Assets Research, Matthew Sigel.

2. CZ and Binance Face New Lawsuit: Binance and its former CEO, Changpeng Zhao (CZ), are facing a new class action lawsuit accusing them of facilitating the laundering of stolen cryptocurrency.

3.  📈Technical Analysis Masterclass - Bitcoin is at a critical point, with potential for either a breakout or further decline. Watch UseTheBitcoin’s latest video “Bitcoin: Will It Skyrocket or Crash the Market Again?” to know your next move or join our Official Telegram Channel for more alpha!

4. Base Hits 4M Active Addresses: Coinbase’s layer-2 network, Base, has surpassed 4 million active addresses, fueled by its "Onchain Summer" campaign.

5. 💡Feature of the Day - $21M Crypto Fraud Busted: Roman Ziemian, co-founder of the alleged crypto fraud scheme FutureNet, has been arrested in Montenegro while living under a false identity.

    
   All this and more in today’s headlines!

📰 News Highlights:

US Solana ETFs [Source][Source][Source][Source]

Analysts are skeptical about the approval of Solana ETFs in the United States, despite some optimism from VanEck’s Head of Digital Assets Research, Matthew Sigel.

Sigel asserts that Solana could still qualify for an ETF based on its classification as a commodity, akin to Bitcoin and Ether.

He draws parallels with a 2018 court case involving the fraudulent crypto company My Big Coin, where the court recognized the token as a commodity, setting a potential precedent for Solana.

However, other experts are less hopeful. Bloomberg ETF analyst Eric Balchunas expressed doubt, especially after the Cboe removed its 19b-4 filings for Solana ETFs, suggesting the U.S. Securities and Exchange Commission (SEC) might have rejected them.

Balchunas believes there's little chance of approval under the current administration, a sentiment echoed by ETFStore President Nate Geraci, who argues that Solana's classification as a commodity is crucial for its ETF prospects.

CZ and Binance Face New Lawsuit [Source][Source]

Binance and its former CEO, Changpeng Zhao (CZ), are facing a new class action lawsuit, accusing them of facilitating the laundering of stolen cryptocurrency.

Filed on August 16 in Seattle, the lawsuit alleges that three crypto investors were unable to recover their stolen assets because Binance allowed the thieves to use its platform to obscure the origins of the funds.

The plaintiffs argue that Binance’s actions violated the Racketeer Influenced and Corrupt Organizations (RICO) Act.

Bill Hughes, senior counsel at Consensys, noted that the lawsuit could put the "efficacy of blockchain analytics" on trial, raising questions about the reliability of on-chain asset recovery.

📈Technical Analysis Masterclass:

Bitcoin: Will It Skyrocket or Crash the Market Again?

Trade Rationale

• New Support Levels: Bitcoin is establishing new support levels following yesterday's dip, hinting that buyers may be stepping in to prevent further losses.

• Resilience: The market's attempt to stabilize could be a foundation for a potential rebound.

Concerns and Observations

• Weakness on 15-Minute Chart: Zooming out to the 15-minute timeframe reveals Bitcoin's failure to maintain its upward trajectory, as it reverted to previous levels—an indication of market weakness.

• Bearish Control: The initial bounce lost momentum, suggesting that bears may still dominate the market.

Strategy and Caution

• Conservative Take-Profits: Given the uncertainty, it's safer to set take-profit levels at more conservative, realistic points.

• Small Position Entry: For risk-takers, entering Bitcoin now with a small position allows flexibility, keeping risk low until there's stronger confirmation of the next move.

Daily Timeframe Insights

• Critical Juncture: On the daily chart, Bitcoin is nearing the tip of a triangle pattern, with the price tightly coiled.

• Imminent Move: This compression suggests a significant move is coming. The key question is whether Bitcoin will break out to the upside, confirming a bullish reversal, or continue its downward trend.

Base Hits 4M Active Addresses [Source][Source]

Coinbase’s layer-2 network, Base, has reached a significant milestone with over 4 million active addresses, driven by its ongoing "Onchain Summer" campaign. Launched in June, the campaign incentivizes developers to build on the Base network, offering 600 ETH (approximately $2 million) in rewards.

The event aims to "unleash onchain creativity" and has successfully attracted a large number of participants, marking a high point in the network's growth.

Base’s collaboration with AtariX, the Web3 arm of video game developer Atari, has been a highlight of the campaign. AtariX introduced an onchain version of its classic arcade game, Asteroids, requiring players to mint an NFT pass to participate.

However, controversy arose when Stackr Labs CEO Kautuk Kundan claimed to have hacked the game's leaderboard, casting doubt on its onchain credentials.

💡 Feature of the Day: 

$21M Crypto Fraud Busted [Source][Source]

Roman Ziemian, co-founder of the alleged crypto fraud scheme FutureNet, has been arrested in Montenegro, where he was living under a false identity.

Authorities detained Ziemian in the capital city of Podgorica following an arrest warrant issued by South Korea and his native Poland.

He is accused of fraud, money laundering, and theft, with the scheme reportedly stealing around $21 million from investors. Ziemian now faces the possibility of life imprisonment in South Korea.

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😂 Crypto Meme of the Day: 

And that’s it for this today.

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See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com