Good Morning Crypto Enthusiasts!

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

1. Sen. Lummis’ Bitcoin Reserve Plan: Economist George Selgin critiques Senator Cynthia Lummis’ proposed legislation to build a government Bitcoin reserve of 1 million BTC within five years, highlighting potential destabilization of commercial banks and questioning the necessity of holding such reserves.

2. Neiro Memecoin Rug Pull: The developer of the Solana-based memecoin Neiro appears to have executed a rug pull, profiting $2.85 million from an initial $550 investment by selling 68 million Neiro tokens.

3.  📈Technical Analysis Masterclass - The recent events surrounding the 2024 Bitcoin Nashville Conference have stirred the market! Watch UseTheBitcoin’s latest Youtube video “Something Weird Happened After the Bitcoin Conference” to check for opportunities beyond the hype or join our Official Telegram Channel for more alpha!

4. BlackRock's Crypto ETF Investors Targeted: BlackRock has warned about an increase in scams targeting investors in its iShares Bitcoin and Ether ETFs.

5. Artists Sue SEC Over NFTs: Artists Brian Frye and Jonathon Mann have sued the SEC for clarity on whether NFTs fall under its authority. They argue that NFTs, like concert tickets, should not be classified as securities.

6. 💡Feature of the Day - US Moves Silk Road Bitcoin: The U.S. government has moved over $2 billion worth of Bitcoin seized from the Silk Road marketplace to an unidentified wallet. This move follows former President Trump's pledge to create a national "strategic Bitcoin stockpile."

   
   All this and more in today’s headlines!

📰 News Highlights:

Senator Lummis’ Bitcoin Reserve Plan [Source][Source][Source]

Senator Cynthia Lummis (R-WY) has proposed legislation to build a government Bitcoin reserve of 1 million BTC within the next five years.

However, George Selgin, director emeritus at the Cato Institute, argues that the plan is less ambitious than it seems. Lummis suggested funding the purchase with "excess reserves" from the Federal Reserve banks, but Selgin reveals that the plan involves the U.S. Treasury purchasing the Bitcoin, partly funded by revaluing the gold in Fort Knox.

This revaluation would allow the Treasury to issue new gold certificates to the Federal Reserve, crediting the Treasury General Account with an extra $347 billion.

Selgin notes that while the alternative plan is feasible, it could destabilize commercial banks. The funds moved from the Treasury General Account to commercial bank reserves would earn interest from the Federal Reserve, which typically relies on yield-bearing instruments like Treasury bills.

However, under Lummis' plan, the Fed would only hold non-interest-bearing gold certificates, potentially impacting its revenue generation. Selgin also questions the necessity of the Treasury holding gold or Bitcoin, suggesting that selling the gold to pay down debt might be more beneficial.

Neiro Memecoin Rug Pull [Source][Source]

The developer of the Solana-based memecoin Neiro has profited $2.85 million in what appears to be a rug pull. According to Lookonchain, the developer made a 5,169x return on an initial $550 investment by selling 68 million Neiro tokens for 15,511 SOL ($2.85 million) through multiple wallets.

The developer also sent 10 million Neiro to a dead wallet, leaving 19.5 million Neiro with an unrealized profit of $1.8 million. This move has raised concerns about a potential exit scam, a common occurrence in the memecoin sector.

Popular memecoin trader Zack Ventura suggests that the memecoin market may be entering the next phase of a bull cycle, despite the controversies.

However, the reputation of the memecoin market is often tarnished by celebrity-backed tokens that perform poorly shortly after their launch. High-profile examples include tokens like JENNER, DAVIDO, and RICH, which fell significantly within their first week.

 📈Technical Analysis Masterclass:

Something Weird Happened After the Bitcoin Conference

In a surprising turn of events, former President Donald Trump made headlines at the latest Bitcoin Conference in Nashville. On July 25-27, Trump boldly announced that, if re-elected, he would implement a policy to retain all Bitcoin held by the US government.

His declaration, "We should not sell our Bitcoin," sparked widespread excitement and optimism in the crypto community, leading to a significant market surge.

The Aftermath: A Mysterious Transfer

• Unexpected Move: Shortly after Trump's statement, the US government transferred $20.2 billion worth of Bitcoin to an unknown address.

• Speculation: This move raised eyebrows and fueled speculation about the current administration's intentions. Is someone within the government countering Trump's proposed policy to hold onto Bitcoin?

Market Impact

• Initial Surge: Trump's attendance at the conference created a bullish sentiment, pushing Bitcoin prices to around $70,000.

• Sell-Off: Days after the event, a massive sell-off ensued, causing significant losses and liquidations for many traders.

Government Holdings: The Bigger Picture

• Substantial Holdings: Despite the mysterious transfer, the US government still holds a substantial amount of Bitcoin—213,000 BTC, valued at over $14 billion.

• Comparison: This dwarfs the $2 billion transferred to the unknown address, suggesting that the government's overall position in Bitcoin remains strong.

Trading Wisdom: Timing Is Key

• Avoid Hype: This rollercoaster in Bitcoin prices serves as a crucial lesson. Avoid buying Bitcoin during soaring highs driven by hype and speculation.

• Capitalize on Dips: Instead, capitalize on market dips and post-panic opportunities. Patience and strategic timing can prevent FOMO (fear of missing out) and enable better entry points into the market.

BlackRock's Crypto ETF Investors Targeted [Source][Source][Source]

BlackRock has issued a warning about a rise in crypto scams targeting investors in its iShares Bitcoin and Ether exchange-traded funds (ETFs).

The asset management giant cautioned against social media impersonators posing as BlackRock representatives, urging investors to avoid interactions with individuals or businesses offering training or investments via platforms like WhatsApp or Telegram.

The warning comes as BlackRock's iShares Bitcoin Trust (IBIT) has amassed $19.7 billion in Bitcoin since its launch in January, making it the leader among U.S.-approved spot Bitcoin ETF providers.

BlackRock CEO Larry Fink recently described Bitcoin as "digital gold" and a legitimate financial instrument, signaling a positive shift in the firm's stance on the cryptocurrency.

Artists Sue SEC Over NFTs [Source][Source][Source]

Artists Brian Frye and Jonathon Mann have sued the U.S. Securities and Exchange Commission (SEC) for clarity on whether nonfungible tokens (NFTs) fall under the commission's authority.

Their attorneys argue that NFTs, much like Taylor Swift concert tickets, should not be classified as securities. The lawsuit seeks to determine if artists need to register their NFT art before selling it and whether they must disclose the risks of buying such art.

Frye and Mann's lawyers claim that the SEC's current stance on NFTs threatens the livelihoods of artists experimenting with this new technology. They argue that it would be absurd for the SEC to treat Swift's concert tickets or collectibles as securities, and the same logic should apply to NFTs.

The lawsuit requests declaratory and injunctive relief to prevent the SEC from taking enforcement actions against NFT projects like those launched by Frye and Mann.

💡 Feature of the Day: 

US Moves Silk Road Bitcoin [Source][Source][Source]

The U.S. government has moved over $2 billion worth of Bitcoin seized from the Silk Road marketplace to an unidentified wallet.

This move follows former President Donald Trump's pledge to create a national "strategic Bitcoin stockpile" if re-elected, stating that the government would no longer sell seized Bitcoin.

Crypto community members expressed their frustration over the timing of the transfer, with Galaxy Digital boss Mike Novogratz calling it "tone deaf."

However, venture capitalist Adam Cochran reminded users that the U.S. Marshals Service awarded Coinbase Prime a contract to manage and dispose of large-cap cryptocurrency assets, suggesting that the transfer may not indicate an intent to sell.

😂 Crypto Meme of the Day: 

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com