Hello Crypto Enthusiasts!

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

1. Matter Labs Enrages Crypto Industry: Matter Labs, the developer behind zkSync, has filed trademark applications in nine countries to claim "zero-knowledge" (ZK) technology as its exclusive intellectual property. This move has sparked outrage within the crypto community, with industry leaders like StarkWare CEO Eli Ben-Sasson and Turing Award winner Shafi Goldwasser criticizing it. They argue that ZK technology is a fundamental public good and should remain open.

2. TRUMP Token Recovers: The MAGA (TRUMP) token rebounded after a 16% drop following Donald Trump's guilty verdict on 34 felony counts. Despite the charges, Trump maintains his innocence, calling the trial a political attack.

3. 📈Technical Analysis Masterclass - Crypto after the halving shows to be stagnant and somewhat pessimistic. Know what you should do now with the current market dynamics by watching UseTheBitcoin’s latest Youtube video “When in Doubt, Zoom Out!” or join our Discord channel for more alpha!

4. Nansen Flags DBS Bank a Whale: Nansen identified a crypto wallet holding over 170,000 Ether ($650 million) as belonging to Singapore's DBS Bank. However, DBS denies owning the wallet. The bank's refusal to comment on whether its digital exchange or custody solutions hold the private keys to the wallet has led to speculation.

5. 💡Feature of the Day - Alex Labs Post-Exploit Recovery Plan: Alex Labs, a Bitcoin layer-2 developer, has announced a recovery plan following a recent security breach. The plan includes reopening pools, migrating its native token, and implementing enhanced security measures.

   
   All this and more in today’s headlines!

📰 News Highlights:

Matter Labs Enrages Crypto Industry [Source][Source][Source]

Matter Labs, the developer behind zkSync, has sparked controversy by filing trademark applications in nine countries to claim "zero-knowledge" (ZK) technology as its exclusive intellectual property.

This move has been met with outrage from the crypto community, likened to a "baker trying to impose a blanket patent on bread" by StarkWare CEO Eli Ben-Sasson. Zero-knowledge cryptographic protocols enable a prover to convince a verifier of a claim's truth without revealing any details about the claim itself, making this technology a fundamental public good in the crypto space.

Industry leaders, including Polygon co-founders Sandeep Nailwal and Brendan Farmer, and Turing Award winner Shafi Goldwasser, have publicly denounced Matter Labs' actions.

Matter Labs CEO Alex Gluchowski defended the trademark filings as defensive measures to prevent misuse of their brand, but critics remain unconvinced.

TRUMP Token Recovers [Source][Source][Source][Source]

The largest meme coin associated with Donald Trump, the MAGA (TRUMP) token, has rebounded after a sharp 16% drop following his guilty verdict on 34 felony counts for falsifying business records. The charges relate to Trump's alleged concealment of a hush money payment to adult film star Stormy Daniels.

Despite the conviction, Trump maintains his innocence, decrying the trial as a political attack by the Biden administration. The token's market cap, which plummeted by $130 million within minutes of the verdict, has since recovered, with its price nearly reaching its 24-hour peak.

Trump has been making efforts to court the cryptocurrency industry, promising to support the right of Americans to self-custody digital assets and hosting events with NFT enthusiasts.

📈Technical Analysis Masterclass:

When in Doubt, Zoom Out!

Ray from usethebitcoin.com offers a technical analysis of Bitcoin following the most recent halving event in April 2024. Despite the immediate market reaction, which appears stagnant and somewhat pessimistic, Ray highlights historical context suggesting significant potential for future gains.

• Halving Events and Market Impact:

  • Historical Context: Previous Bitcoin halving events have shown a pattern where the market initially reacts with stagnation.

  • RSI Analysis: The Relative Strength Index (RSI) typically hits oversold levels post-halving, often preceding bullish trends.

  • Current RSI: Post-April 2024 halving, the RSI is not near oversold levels, indicating potential for substantial upward movement.

• Broader Acceptance and Integration:

  • Financial Ecosystem: Approval of Bitcoin ETFs and adoption by major financial institutions are positive indicators for Bitcoin's future.

  • Global Adoption: The increasing acceptance of Bitcoin as a payment method underscores its growing legitimacy and potential for widespread use.

• Long-Term Perspective:

  • Historical Data: The real effects of a halving on Bitcoin's value can take a year or more to materialize fully.

  • Patience and Perspective: Investors are advised to "zoom out" and focus on long-term trends rather than short-term market movements.

It is important to look at the bigger picture and maintaining patience. Historical trends and growing institutional acceptance suggest a positive outlook for Bitcoin despite current market stagnation. For a deeper dive, watch UseTheBitcoin’s latest Youtube video “When in Doubt, Zoom Out!”

Nansen Flags DBS Bank a Whale [Source][Source]

A crypto wallet identified by Nansen as belonging to Singapore’s DBS Bank holds over 170,000 Ether, valued at nearly $650 million. This wallet has reportedly earned a $200 million profit from holding Ether.

However, DBS Bank denies owning the wallet, stating it does not have this position on its books. The bank declined to comment on whether its digital exchange or custody solutions hold the private keys to the wallet, leading to speculation that the assets might be held on behalf of investors.

Nansen's analysis, based on information from a reliable source, suggests that DBS owns the wallet’s private key, likely as part of its custody solution. This aligns with the bank's 2020 launch of a crypto trading and custody service, which included major cryptocurrencies like Bitcoin and Ether.

💡 Feature of the Day: 

Alex Labs Post-Exploit Recovery Plan [Source][Source]

Alex Labs, a Bitcoin layer-2 developer, has unveiled a comprehensive recovery plan following a recent security breach. The roadmap aims to rebuild community trust and resume operations with enhanced security measures.

Key initiatives include reopening pools and migrating its native token and automated market maker (AMM). During a recent community session on X Spaces, the team discussed the recovery process and governance votes, emphasizing their commitment to security and transparency.

The Alex Labs Foundation is conducting two governance votes: the Treasury Grant Program (TGP) to manage recovered community assets, and the reopening of unaffected pools.

The TGP vote will decide the best use of these assets, with some options carrying inherent risks due to their synthetic nature. The foundation is balancing the desire to reopen pools quickly with the need to ensure security and stability.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com