🔴Bitcoin ETF is Overhyped? | This Week in Crypto – Dec 18, 2023

A Ledger library has been compromised, Solana’s phone could pay for itself and influential tech leaders stand behind a new venture. These stories and more, this week in crypto.

Ledger Wallets Compromised

Leading hardware wallet provider, Ledger had its connector library compromised with malicious code. The library is used by various decentralized apps like SushiSwap and Revoke.cash. Although a wallet drainer was added, stealing assets required user action and Ledger addressed the issue promptly. Users are cautioned to halt any transaction immediately if their Ledger device and screen display differ.

Solana Phone Sales Surge

Solana’s smartphone experienced a surge in sales due to the airdrop of the Solana-based meme coin BONK. BONK’s 1000% price hike raises the airdrop’s value for Solana phone users to $877, making it a phone that pays for itself. Co-founder Raj Gokal posted on X that the phone saw a 10x surge in sales, and he expects the phones to sell-out before the new year.

BlackRock’s New Bitcoin ETF Model

BlackRock has revamped its bitcoin ETF filing, changing how Wall Street banks would interact with bitcoin. The new model submitted to the SEC facilitates bank participation without direct bitcoin holdings, using a cash-based redemption instead. The agency has been hesitant to approve a spot bitcoin ETF due to risks of market manipulation, and while many issuers would prefer in-kind redemption, they may just have to settle for the cash redemption model in order to gain approval.

JPMorgan: ETF Optimism is Overhyped

While many investors have rejoiced at Bitcoin’s recent upswing, JPMorgan says the ETF optimism is overhyped. The bank’s analysts say that Bitcoin is already overbought and they believe the importance of US Bitcoin ETF approvals – one of the biggest drivers of Bitcoin’s recent performance, is misplaced. The report says Ether could outperform Bitcoin in 2024 due to its upcoming upgrades.

Tether and Dai Marked as “High Risk”

Credit rating firm S&P Global assessed eight leading stablecoins’ risk, giving Tether and Dai low marks on a new 1 to 5 scale. Unlike their usual ratings, this scale focuses on similar qualities and drawbacks. Tether and Dai received “constrained” 4 scores, while TrueUSD got a “weak” 5. Confidence in stablecoins surged but faltered after last year’s TerraUSD collapse.

Bitcoin NFTs Blacklisted

Bitcoin mining pool Ocean’s decision to blacklist BRC20 token transactions and NFT-related Ordinal inscriptions has sparked quite the ethical debate.  Luke Dashjr, Ocean’s operator, defended the action referring to anti-spam measures introduced in Bitcoin Core 0.90, released in 2014. The congestion on the Bitcoin Network attributed to Ordinals and BRC20 tokens has led to strong reactions on both censorship and economic aspects in 2023.

Sotheby’s Sells its First Bitcoin NFTs

Sotheby’s debut sale of Bitcoin blockchain Ordinal inscriptions raked in $450,000, surpassing estimates fivefold, highlighting there is a huge interest in Bitcoin NFTs. The auction featured three images, with an avocado selling for over $100,000 and a Super Mario-inspired design fetching more than $240,000. Sotheby’s plans to continue these sales.

”Network States” Funded by Tech Billionaires

The Balaji Fund, led by tech figure Balaji Srinivasan, aims to build “Network States” through startups focused on societies to create alternative online communities. The venture is backed by influential tech leaders like Coinbase’s Brian Armstrong, AngelList’s Naval Ravikant, and former Coinbase board member Fred Wilson, highlighting the strong ties to the cryptocurrency sector within the group.

That’s what’s happened this week in crypto, see you next week.