Good Morning Crypto Enthusiasts!

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

Hey there! We've got some exciting updates to share about the ongoing Binance and CZ vs CFTC saga. Brace yourself, because this time the fines have nearly reached a whopping $3 billion!

On another note, it seems like there might be some delays with the Ether ETFs, so keep an eye out for more news on that in the next 24 hours.

Unfortunately, it's been another eventful day in the world of hacks. This time, the Web3 game Aurory fell victim, with a staggering $830k drained from the team's wallets.

All this and more in today’s headlines!

📰 News Highlights:

⌛ SEC Delays Ethereum ETFs Decision (Link)(Link)(Link)(Link)(Link)(Link)

The U.S. Securities and Exchange Commission (SEC) defers its decision on several Ethereum exchange-traded funds (ETFs) to May 2024.

Regulatory filings reveal the postponement for ETFs, including Hashdex Nasdaq Ethereum ETF and Grayscale Ethereum Futures ETF, citing the need for additional public input. Despite approving Ethereum futures ETFs in the past, the SEC has yet to greenlight a spot or mixed-type product.

The delay sets the stage for a crucial decision on 13 spot Bitcoin ETFs, with analysts estimating a 90% approval likelihood by January 10. Institutional access to Bitcoin remains a focal point, driving optimism in the market.

🎮 Aurory's $830K Exploit (Link) (Link) (Link)

Aurory, a Pokémon-like game, faces an $830,000 exploit, prompting developers to disable its SyncSpace blockchain bridge connecting Solana and Ethereum scaling network Arbitrum.

The exploit, described as a race condition attack on the off-chain marketplace, allowed an attacker to withdraw around 600,000 AURY tokens. 

• Aurory's SyncSpace bridge was hacked, and 600k AURY tokens were stolen.

• User funds and NFTs are safe, but the $AURY price plummets.

• SyncSpace is offline for maintenance, investigation is ongoing.

Despite the 80% liquidity dip on Camelot decentralized exchange and a 17% drop in AURY's price, the Aurory team assures users that no funds or NFTs were stolen. The incident highlights the challenges of securing gaming ecosystems in the crypto space and the ongoing efforts to address vulnerabilities.

🔒 Binance Settles with CFTC (Link)(Link)(Link)(Link)(Link)

In a landmark resolution, Binance and its former CEO, Changpeng "CZ" Zhao, have agreed to pay a staggering $2.7 billion and $150 million, respectively, to settle an enforcement action by the Commodity Futures Trading Commission (CFTC). 

The U.S. District Court for the Northern District of Illinois approved the settlement, concluding the CFTC's action initiated in November.

The court found Binance and CZ in violation of the Commodity Exchange Act, imposing a $150 million penalty on CZ and ordering Binance to disgorge $1.35 billion of ill-gotten transaction fees, with an additional $1.35 billion penalty to the CFTC

This resolution follows CZ's earlier agreement to step down as Binance CEO and his guilty plea to civil and criminal charges related to Anti-Money Laundering laws. As part of the settlement, both Binance and CZ commit to strengthening Know Your Customer measures and implementing robust corporate governance structures.

🚀 OKX NFT Marketplace Surpasses Competitors (Link) (Link) (Link)

OKX NFT Marketplace achieved a remarkable daily trading volume of $50 million on December 18, surpassing rivals like OpenSea, Blur, and Magic Eden. The platform's success is attributed to the introduction of Bitcoin Ordinals trading.

Despite a subsequent drop to $35 million, OKX NFT Marketplace maintains a lead over competitors with a combined 24-hour trading volume of around $41 million. 

The broader NFT space witnesses renewed vigor, with Bitcoin NFTs outperforming Ethereum and Solana in weekly trading volume.

The surge reflects a broader resurgence in the NFT market, with November's collective volume nearing $1 billion, signaling increased user engagement and higher-value transactions.

💡 Feature of the Day:

💸 Crypto's Political Power (Link) (Link) (Link) (Link)

Coinbase, Kraken, Ripple, and Andreessen Horowitz headline a group of crypto heavyweights that have collectively raised and donated $78 million to support "pro-innovation" political candidates in 2024. In a strategic move, these entities seek to influence elections and advocate for policies conducive to the crypto industry's growth. 

Coinbase emphasizes the critical role of elections in shaping regulations and highlights the need for fair and responsible crypto rules. The political action committee, Fairshake, spearheads this initiative, focusing on supporting candidates aligned with the industry's goals.

As crypto lobbying gains momentum, Coinbase's active involvement underscores the industry's commitment to influencing regulatory landscapes in the face of impending legislative challenges in 2024.

🔍 Industry Insights: 

Survey: 4 in 5 Institutional Investors Agree Crypto Has Important Role in Global Financial Industry (Link)

Remember when your uncle scoffed at Bitcoin? Well, get ready for him to ask you for investing tips because Wall Street is officially hooked on crypto. A new survey by Sygnum, a digital asset bank, reveals a dramatic shift in the institutional world, with 80% of investors now believing crypto will reshape the global financial landscape.

Gone are the days of eye rolls and "tulip mania" jokes. Crypto has gone from a fringe fad to a trusted gateway to the future, as Sygnum's report, "Future Finance 23," aptly puts it. Here's what the survey tells us:

• Bitcoin, Ethereum, and Solana are the hottest properties: 87% of investors hold these Layer 1 tokens, proving the big guns are betting big on blockchain fundamentals.

• More crypto in the vault: 57% plan to pump up their crypto holdings, showing an insatiable appetite for digital assets.

• Why the love? Gaining exposure to the crypto boom and diversifying portfolios are the top motives, but 37% even see crypto as a better bet than traditional investments.

• Direct ownership is king: Investors prefer holding tokens themselves, indicating a deep trust in the underlying technology. This might change as new financial products emerge, but for now, it's all about holding the keys.

As Sygnum's research manager Lucas Schweiger puts it, "crypto has gone from skeptics to evangelists" among institutional investors. This isn't just a fad; it's a fundamental shift in the financial world.

And don't forget the regulatory angle. Over 85% of crypto investors see regulation as key to building trust. This bodes well for Sygnum, which built its business on being fully regulated from day one.

Key points:

• Institutional investors are overwhelmingly bullish on crypto.

• Bitcoin, Ethereum, and Solana are top picks.

• Investors plan to increase their crypto holdings.

• Direct token ownership is preferred.

• Regulation is seen as crucial for building trust.

So, the next time someone scoffs at crypto, show them this survey. The future of finance is digital, and Wall Street is already dancing to the beat.

Today’s Sponsor:

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🔍 Technical Analysis:

Yesterday, Bitcoin was noted to be within a range of $40K to $43.6K, and currently, it stands at $43,143. The expectation is that Bitcoin will likely continue ranging until the anticipated decision on the BTC ETF around January 8-11, 2024. There might be unpredictable price movements or a pump-and-dump scenario within the range leading up to the ETF decision.

If a dip occurs before the decision, there could be a potential upside during the ETF announcement. Given the lack of a clear lower time frame trend for BTC, adopting a cautious approach and staying on the sidelines is considered a prudent strategy.

As for Ethereum (ETH), it currently lacks a distinct trend and seems to be closely mirroring Bitcoin's movements.

The ETHBTC pair indicates sideways or downward movement, placing the fate of the trend in the hands of Bitcoin. While potential scenarios are outlined on the chart, there isn't any actionable insight at the moment. Patience is emphasized as a key strategy during these uncertain times.

😂 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 for Wednesday’s edition!

Jonathan Gibson
UseTheBitcoin.com