Good Morning Crypto Enthusiasts!

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

1. Pepe Hits All-Time High: Pepe (PEPE) memecoin hit an all-time high following Keith Gill's return to social media, causing a 34% price surge. Trading volume spiked by 245% to $1.56 billion, with PEPE's market capitalization reaching $4.31 billion, making it the 23rd-largest cryptocurrency. This rally also boosted other memecoins and related stocks like GameStop and AMC.

2. Coinbase Down: On May 14, Coinbase experienced a "system-wide outage," displaying a "503 Service Temporarily Unavailable" error. Coinbase reassured users that funds were safe while resolving the issue.

3. CertiK Discovers Wormhole Bridge Security Flaw: CertiK identified a significant security flaw in the Wormhole bridge on the Aptos network, potentially preventing $5 million in losses.

4. 📈Technical Analysis Masterclass - Both TON and FLOKI are near their resistance levels, indicating potential declines. Watch UseTheBitcoin’s latest Youtube Video “There is a sign of weakness for TON AND FLOKI” for a more in-depth look!

5. 💡Feature of the Day - CFTC $1.8M Settlement Against FalconX: The CFTC settled charges with Falcon Labs, owned by FalconX, for $1.8 million for failing to register as a futures commission merchant and facilitating access to digital asset exchanges. The settlement includes $1.2 million in disgorgement and $600,000 in penalties.

   
   All this and more in today’s headlines!

📰 News Highlights:

🚀 Pepe Hits All-Time High [Source][Source][Source]

The world of memecoins witnessed a significant surge, led by Pepe (PEPE), which hit an all-time high following the return of a famous trader. On May 12, Keith Gill, known for his role in the 2021 GameStop stock frenzy, posted on his "Roaring Kitty" X account for the first time in nearly three years. This activity ignited a rally among memecoins, with PEPE prices soaring 34% over 24 hours to reach a new high of $0.00001119 on Binance.

A substantial increase seen in PEPE’s trading volume, which spiked by 245% to $1.56 billion. This surge propelled PEPE’s market capitalization to $4.31 billion, surpassing Ethereum Classic and ranking it as the 23rd-largest cryptocurrency.

The post by Gill, which depicted a man focusing intensely, was interpreted by X and Reddit users as a signal for "locking in," reminiscent of his strategic moves during the GameStop mania.

Alongside PEPE, other memecoins experienced significant gains. Solana-based GameStop memecoin surged over 550%, while the AMC token skyrocketed by 1,200%. Larger memecoins, Dogecoin and Shiba Inu, also saw increases of 5% and 7%, respectively. This revival in memecoin activity also influenced related stocks, with GameStop (GME) shares climbing 44% in pre-market trading and AMC Entertainment Holdings rising 25% after the market opened.

⚠️ Coinbase Down [Source][Source][Source]

On May 14, users of the United States-based crypto exchange Coinbase were met with frustration as a “system-wide outage” rendered the platform inaccessible. The outage, which began at 4:15 am UTC, affected both desktop and mobile users, displaying a “503 Service Temporarily Unavailable” error message when attempting to visit the website.

Coinbase promptly acknowledged the issue on its official status page and via its support account on X, reassuring users that their funds were safe while they worked on a solution.

This incident follows a similar occurrence on February 28, when a rapid increase in trading activity during a Bitcoin flash crash caused temporary outages across multiple exchanges.

While such outages are a source of frustration for traders, some within the crypto community on X interpreted it as a bullish sign.

🔍 CertiK Discovers Wormhole Bridge Security Flaw [Source]

Blockchain security platform CertiK recently identified and helped patch a significant security flaw in the Wormhole bridge on the Aptos network, which could have led to $5 million in losses.

The flaw, which involved an incorrect implementation of the ‘public(friend)’ and ‘entry’ modifiers in the MOVE programming language, was reported and resolved before any exploit could occur.

CertiK’s investigation revealed that the bug allowed unauthorized parties to call functions that could create fake transactions, potentially leading to the unauthorized minting or unlocking of tokens. The flaw was reported to the Wormhole team on December 5, 2023, who quickly developed and implemented a patch within three hours.

The patch not only corrected the ‘entry’ modifier but also imposed stricter limits on the governor rate to $1 million, thereby reducing the potential impact of future vulnerabilities.

📈 Technical Analysis Masterclass:

📉 There is a sign of weakness for TON AND FLOKI

Both TON and FLOKI are near their resistance levels, indicating potential declines. Watch TON’s for bounce backs at $5.72 to $6.40; consider shorting at $7.03 to $7.50. Look for FLOKI’s bounce backs at $0.00016 to $0.00017; consider shorting at $0.00018 to $0.00020.

TON (The Open Network):

• Current Status: Near resistance levels.

• Price Movement Prediction: A potential decline as prices approach resistance, with profit-taking likely.

• Bounce Back Levels: Prices might bounce back at Fibonacci golden levels around $5.72 to $6.40.

• Technical Indicators: Both the 20MA and 50MA suggest a short-term pullback.

• Investment Strategy:

  • Investing: Mark positions at the Fibonacci levels ($5.72 to $6.40).

  • Futures Trading: Potential for shorting at $7.03 to $7.50.

FLOKI (Floki Inu):

• Current Status: At resistance levels.

• Price Movement Prediction: Monitor closely for a decline, with a potential for profit-taking.

• Bounce Back Levels: Best areas to catch a bounce back are $0.00016 to $0.00017.

• Technical Indicators: Currently at the 50MA level.

• Investment Strategy:

  • Shorting: Position at $0.00018 to $0.00020.

Stay vigilant and monitor these levels for optimal trading opportunities. Watch UseTheBitcoin’s latest Youtube Video “There is a sign of weakness for TON AND FLOKI” for a more in-depth understanding!

💡 Feature of the Day: 

💼 CFTC $1.8M Settlement Against FalconX [Source][Source]

The Commodity Futures Trading Commission (CFTC) announced on May 13 that it had settled charges against cryptocurrency brokerage firm Falcon Labs, owned by FalconX, for $1.8 million.

The firm was penalized for failing to register as a futures commission merchant and improperly facilitating access to digital asset exchanges.

The settlement includes $1.2 million in disgorgement and $600,000 in civil monetary penalties, with FalconX ceasing services to U.S. residents.

CFTC Enforcement Director Ian McGinley emphasized the importance of regulatory compliance to maintain market integrity.

😂 Crypto Meme of the Day: 

And that’s it for this today. See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com