FTX creditors say Sullivan & Cromwell (S&C), the law firm overseeing FTX’s bankruptcy case, financially benefitted from the crimes committed by FTX, and they are suing for damages. In their filing, they allege various charges, including civil conspiracy, aiding and abetting fraud, and aiding and abetting fiduciary breaches. 

The class action says that S&C was FTX’s counsel in up to 20 transactions, including FTX’s acquisition of LedgerX and its bid for Voyager Digital assets. It also says Sam Bankman-Fried, the former CEO of FTX, regularly used S&C offices in New York. 

According to the complaint, “While customers of FTX, Class Members, lost everything, S&C was able to gain millions from the FTX fraud. S&C served as primary legal counsel to FTX for the 16 months preceding FTX’s collapse, during which time S&C billed around $8.5 million in fees.” 

The lawsuit notes Ryne Miller, FTX’s General Counsel in 2021, was key to S&C’s role as FTX’s outside counsel. He previously worked at S&C. According to the lawsuit, Miller knew that FTX could funnel customer funds to Alameda and told this to other people at S&C.

This is not the first time the issue of a possible conflict of interest has been raised. In January 2023, creditors objected to S&C’s involvement in FTX’s bankruptcy, but the judge approved it. Some U.S. senators also wrote to the judge calling for an independent examiner, but the request was denied. 


They allege S&C benefitted from FTX’s fraud.  


FTX Creditors File Class Action Against Bankruptcy Law Firm

Fintech bank Revolut has plans to distribute meme coin BONK in a “learn and earn campaign” worth $1.2 million. BONK’s governing council is yet to approve the plan, but is expected to pass, already obtaining seven votes out of 12. 

Launched by Solana blockchain, BONK has become Solana's biggest meme coin and made waves when its price increased by 14,000% at its peak. Although it has fallen 60% since then, it is still one of the largest meme coins by trading volume. 

If Revolut’s plan is approved, the campaign will be in two stages: BONK’s launch on Revolut, and then the “Learn and Earn Campaign”. A [statement](https://app.realms.today/dao/Bonk/proposal/ENJnKG8eDpVdFK69D6HrDxgpB68EvrghEZaPfPixhvq2) by BonkDAO says the objective of the plan is to increase BONK’s user base to 500,000. 

BONK’s price increased by 7% after it reports it could soon be on Revolut’s trading platform.



It will be part of a “learn and earn campaign”.


Revolut to Distribute $1.2 Million in BONK

The Starknet Foundation has [announced](https://www.starknet.io/en/content/starknet-provisions-program) its plans to distribute STRK, its native token, to nearly 1.3 million eligible wallets. More than 700 million STRK will be given out. 

Starknet is an Ethereum Layer-2 network that uses a ZK-Rollup solution for scaling decentralized applications. According to the Starknet Foundation, the token will help decentralize and govern the network. STRK will be used for transaction fees, staking, and participation in governance votes. 


**Who Are Eligible?**

STRK will be available to people and groups who contributed to Starknet, such as Starknet users, developers, and community contributors. StarkEx users, Ethereum protocol contributors, and stakers, as well as select non-crypto open-source project developers, are also eligible to receive the token.

![Starknet Provisions Allocation](https://resources.cryptoflash.report/provisions_allocations_pie_final_8d02b85e6b.jpeg)

STRK will be available starting February 20 and may be claimed up to four months after distribution starts. Unclaimed tokens will be absorbed back into the pool and distributed in the future.




Almost 1.3 million wallets will get tokens.


Starknet Foundation’s Plan to Distribute STRK Token

According to a [report](https://koreatimes.co.kr/www/nation/2024/02/816_368640.html?utm_source=fl) by The Korea Times, South Korea’s Financial Intelligence Unit (KoFIU) announced it will expel cryptocurrency platforms deemed "unfit" starting this year. In addition, new businesses planning to enter the crypto market will also have to undergo stricter screenings.

The government agency said it is considering a preemptive trading suspension system, similar to those implemented in countries like Germany and Finland. Under this rule, transactions can be frozen even in the pre-investigation phase to prevent a crime from being committed. 

Since 2021, the KoFIU has been tasked with granting licenses to virtual asset service providers in South Korea. These licenses are set to expire in 2024, so companies seeking renewal will have to be assessed on their policies like safeguards against money laundering and consumer protection measures before being issued new licenses. 

The stricter regulation of cryptocurrency exchanges is to prepare for South Korea’s first protection law on virtual assets, which is scheduled to take effect in July.

According to KoFIU Commissioner Rhee Yun-su, “In preparation for the enactment of the virtual asset consumer protection act from the latter half this year and the large-scale renewal registrations, KoFIU will agilely push forward with the necessary institutional improvements to ensure the seamless operation of the currency industry.”

KoFIU said these plans were made after consulting with members of the cryptocurrency industry and other experts. 

The South Korean Financial Intelligence Unit announced it on Monday. 


The Korea Times: South Korea to Remove ‘Unfit’ Crypto Exchanges 

The price of Bitcoin reached $50,000 for the first time in two years. It is up 3.89% over the past 24 hours and is trading at $50,013 as of Tuesday, 7:04 A.M. Hong Kong time. Bitcoin has risen 16.3% so far this year.

Analysts have attributed Bitcoin’s strong performance to the increased inflow into BTC spot ETFs in the past week. Outflows from the Grayscale Bitcoin Trust also continued to slow down.

Other forces influencing Bitcoin’s price are expectations of interest rate cuts later this year and the next bitcoin halving, set to occur in April. The price of Bitcoin historically rises during this period. 



It’s the first time to reach this mark in more than two years. 


Bitcoin Hits $50K 

The United Nations (U.N.) is investigating North Korea for its role in cyberattacks against cryptocurrency firms over the past six years. The stolen funds, amounting to $3 billion, are allegedly used to fund North Korea’s weapons of mass destruction (WMD) program. 

According to a report by [Reuters](https://www.reuters.com/technology/cybersecurity/un-experts-investigate-58-cyberattacks-worth-3-bln-by-north-korea-2024-02-08/), an unpublished U.N. document states, “the panel is investigating 58 suspected DPRK cyberattacks on cryptocurrency-related companies between 2017 and 2023, valued at approximately $3 billion, which reportedly help fund DPRK’s WMD development.”

North Korea’s formal name is the Democratic People’s Republic of Korea (DPRK). 

The U.N’s Security Council has banned North Korea from conducting nuclear tests and ballistic missile launches. The country has been under U.N. sanctions since 2006 in an attempt to cut off funding for its WMD program. 



Allegedly, the stolen funds are for weapons of mass destruction.


UN Investigates North Korean Crypto Hackers

On Friday, Bitcoin went up by 5% to reach one-month highs. By Sunday, it surged to $48,439 as of 8:14 P.M. Hong Kong time. 

In January, Bitcoin reached $49,000, its highest price in two years. Since then, the price fluctuated, influenced by the Securities and Exchange Commission's approval of ETFs. 

Industry analysts attribute Bitcoin’s price surge to a slowdown in ETF outflows and increased buying activity ahead of April's halving event.

The "halving" event in Bitcoin refers to a pre-programmed event built into the Bitcoin protocol that occurs approximately every four years or after every 210,000 blocks are mined. During this event, the reward that miners receive for validating transactions and adding them to the blockchain is cut in half.

Historically, Bitcoin prices tend to surge following halving events. In 2020, the most recent halving, the price went from $8,570 to $18,040.



Bitcoin’s Big Rally

On Wednesday, the Department of Justice filed charges against Robert Powell, Carter Rohn, and Emily Hernandez, accusing them of running a phone hacking scheme that targeted victims between March 2021 and April 2023. 

In an 18-page indictment presented in a Washington, D.C. court, prosecutors leveled charges of conspiracy to commit wire fraud and identity theft against these three individuals. Notably, they are accused of obtaining $400 million from an undisclosed company on  November 11, 2022. 

Although the report does not specify the company, Bloomberg says that the company was FTX. FTX was hacked just hours after it filed for bankruptcy.

According to the indictment, Powell, Rohn, and Hernandez gathered the personal information of approximately 50 individuals. They employed this data to persuade mobile phone service providers to transfer the victims' phone numbers to a decoy device under their control. They were then able to intercept text messages, including multi-factor authentication codes, which granted them access to the victims' financial accounts and cryptocurrency wallets.

Using this SIM swapping operation, Powell, Rohn, and Hernandez allegedly managed to infiltrate the crypto exchange by exploiting an AT&T employee and transferring hundreds of millions of dollars worth of cryptocurrency out of the exchange.

Bloomberg reports three individuals have been charged. 


Have the FTX Hackers Been Caught? 

In a recent statement to Bloomberg, Souad Benkredda, a board member of DZ Bank, announced plans to offer retail cryptocurrency trading later this year. DZ Bank is the second-largest bank in Germany based on its assets.

DZ Bank will grant clients of the community banks access to different cryptocurrencies. It is worth noting that this service will not include advisory services. While the decision to incorporate this crypto offering will be up to the individual cooperative banks, collectively, these banks cater to approximately 30 million retail clients.

Last year, DZ Bank introduced its institutional digital asset custody solution, initially concentrating on tokenized securities, operating within the framework of Germany's eWpG regulation. 

DZ Bank collaborated with the Swiss custody technology company, Metaco, for its digital asset custody solution. Despite initial expectations that DZ Bank would be working alongside DWP Bank for their retail cryptocurrency offering, the identity of DZ Bank's crypto trading partner remains undisclosed. 



DZ Bank is Germany’s second-largest bank.


Bloomberg: German Bank DZ to Start Crypto Trading

On Thursday, JPMorgan analysts released a market strategy note suggesting that the profit-taking on Grayscale's bitcoin ETF (GBTC) had probably come to an end. It said, "The majority of the downward pressure on bitcoin stemming from this source is likely behind us."

Bitcoin mostly traded below $40,000 throughout the week.

JPMorgan had previously estimated that around $3 billion would exit GBTC as investors sought to profit from the ETF's trading below the actual value of bitcoin. 

The study also suggests that approximately $1.3 billion has shifted from GBTC to other spot bitcoin ETFs with lower fees. Analysts argue that this trend of funds moving away from GBTC to competing ETFs is likely to persist if Grayscale does not reduce its fee, currently set at 1.5%, which is considerably higher than the 0.25% charged by rival offerings from Blackrock and Fidelity.

"There appear to be two emerging competitors to Grayscale's bitcoin ETF: Blackrock and Fidelity, which have so far attracted $1.9 billion and $1.8 billion of inflows respectively. They both have much lower fees of only 25 basis points (without waivers) vs 150 basis points for GBTC."

The recent launch of spot bitcoin ETFs in the United States is an emerging influence on bitcoin prices, aligning it more closely with traditional markets like equities. JP Morgan analysts believe that the introduction of spot bitcoin ETFs would make it easier to predict bitcoin behavior. 

"While, at face value, the introduction of spot bitcoin ETFs implies more fragmentation, in practice, it would increase market depth and liquidity if the experience of ETFs in traditional asset classes such as equities is a guide,"


The report anticipates a reduction in selling pressure on bitcoin.


JP Morgan: Grayscale's GBTC Profit-Taking Likely Over

KT Corporation, one of the biggest telecommunications firms in South Korea, [announced](https://web.mincl.kt.co.kr/mobileview/feed/feedDetail?feedId=24012400010718) it will shut the NFT platform MINCL on March 4. According to its statement, the closure was due to changes in business conditions.

The announcement also advised holders of KT Wiz Rookie Pack NFTs, which are digital collectible baseball cards, to transfer their assets to external e-wallets.

MINCL, introduced in April 2022, played a pivotal role in offering NFT minting, trading, and wallet services, catering to both retail and institutional users.


The company said it was because of “shifting business conditions.” 


South Korea’s KT Corporation Shuts Down NFT Platform

Over the past year, Meta has submitted five trademark applications related to cryptocurrency and blockchain. These involve a range of services related to the trading, exchange, payments, transfers, wallets, and associated hardware and software infrastructure for crypto and blockchain assets.

A Notice of Allowance (NOA) has been issued to Meta for the filings, which signifies that the application meets the registration requirements. Meta is required to either submit a statement confirming its intent to use the trademark or request an extension to file the statement within six months.

Meta’s applications have not escaped the attention of some U.S. lawmakers. Congresswoman Maxine Waters (D-CA) [wrote](https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=411148) to Meta founder and CEO Mark Zuckerberg and operating chief Javier Olivan, stating, “With its initial filings on March 18, 2022, Meta’s application submissions as of January 22 appear to represent a continued intention to expand the company’s involvement in the digital assets ecosystem.” 

Waters pointed out that despite Meta's assurance to the Democratic Financial Services Committee staff on October 12, 2023, that they were not actively working on digital assets, their recent trademark applications suggest otherwise.

Notably, this is not the first time Meta flirted with the idea of digital assets. In 2019, plans for the payments crypto stablecoin Diem were abandoned due to legislative pressure. In January 2022, they sold Diem for $200 million to the now-defunct Silvergate Bank. Additionally, Meta's previous plan to release a digital wallet called Novi by 2020 also has no new updates.


Congresswoman Maxine Waters is curious too.


Does Meta Still Have Crypto Plans?

The crypto exchange FTX, which filed for bankruptcy in October 2023, has sold its entire stake in the Grayscale Bitcoin Trust (GBTC), the largest and oldest bitcoin exchange-traded fund (ETF) in the U.S. market. The sale, which amounted to about $1 billion, explains part of the massive outflows from the fund since it was converted into an ETF earlier this month.

**FTX’s GBTC Arbitrage Strategy**

FTX, like other large crypto trading entities, had previously capitalized on the price difference between Grayscale trust shares and the net asset value (NAV) of the underlying bitcoin. This strategy, known as GBTC arbitrage, involved buying GBTC shares at a discount, locking them up for six months, and then selling them at a premium when they became liquid.

As of Oct. 25, 2023, FTX held 22.3 million GBTC shares, valued at $597 million, according to a Nov. 3 filing. On Jan. 11, 2024, the day Grayscale’s Bitcoin ETF commenced trading on NYSE Arca, the value of FTX’s holdings rose to approximately $900 million.

**FTX’s GBTC Liquidation**

According to data reviewed by CoinDesk, FTX’s bankruptcy estate sold 22 million GBTC shares, reducing its stake to zero. The sale of its shares was valued at nearly $1 billion, accounting for half of the $2 billion in outflows from the fund since it was converted into an ETF.

The liquidation of FTX’s GBTC holdings was assisted by Marex Capital Markets Inc. and Galaxy Digital, which declined to comment on the matter. In a related development, Alameda Research, a trading firm associated with FTX, voluntarily withdrew a lawsuit that alleged Grayscale charged exorbitant fees.

**GBTC’s ETF Conversion and Competition**

The conversion of GBTC to an ETF came as the U.S. Securities and Exchange Commission (SEC) greenlit the trading of several spot bitcoin ETFs on Jan. 11, following prolonged delays. The Grayscale fund, which had been operating for a decade as a closed-end fund, amassed nearly $30 billion in assets before its conversion.

Simultaneously, the SEC approved 10 new bitcoin ETFs, issued by major players like BlackRock and Fidelity. These funds, which offer lower fees and better tracking of bitcoin’s price, have seen inflows of over $1.5 billion in the first week of trading, while GBTC has experienced substantial withdrawals.

**Bitcoin’s Price Reaction**

Bitcoin’s (BTC) price has experienced a notable decline since the approval of these ETFs, contrasting with the earlier optimism surrounding the SEC’s decision. Bitcoin ETFs were anticipated to offer an easier investment avenue for the general public, leading to optimistic predictions about bitcoin’s price.

However, some analysts have pointed out that the ETFs may have a negative impact on bitcoin’s price in the short term, as they divert demand away from the spot market and create selling pressure from existing GBTC holders. In theory, now that FTX is done selling its substantial holdings, the selling pressure could ease since a bankruptcy estate liquidating holdings is a relatively unique event.

Sources:

[Markets Insider](https://www.msn.com/en-us/money/markets/ftx-selling-1-billion-of-grayscales-bitcoin-etf-has-spurred-major-outflows-from-the-fund-since-sec-approval-report-says/ar-BB1h5HdO)
[Markets Insider](https://www.msn.com/en-us/money/markets/ftx-selling-1-billion-of-grayscales-bitcoin-etf-has-spurred-major-outflows-from-the-fund-since-sec-approval-report-says/ar-BB1h5HdO)
[CoinDesk](https://www.msn.com/en-us/money/markets/bitcoin-bulls-buoyed-by-report-of-ftxs-1b-gbtc-sale/ar-BB1h5DXG)
[CoinDesk](https://www.coindesk.com/business/2024/01/22/ftx-sold-about-1b-of-grayscales-bitcoin-etf-explaining-much-of-outflow-sources/)
[Cryptonews](https://cryptonews.com/news/just-in-ftxs-bankruptcy-estate-sold-22-million-gbtc-shares-leading-to-1-billion-gbtc-outflow.htm)




The bankrupt crypto exchange FTX liquidated its $1 billion stake in Grayscale’s Bitcoin Trust (GBTC), the oldest and largest U.S. bitcoin ETF. This explains half of the fund’s outflows since it became an ETF this month.

FTX’s Bankruptcy Estate Sold $1 Billion of Grayscale’s Bitcoin ETF

On X, analyst and DecenTrader founder Filbfilb, noted bitcoin prices follow a pattern that signals it could go lower in the days to come. 

<blockquote className="twitter-tweet">3 Day red with a break below 50 DMA. There are a few examples of this happening in the past.<a href="https://t.co/8Hq7lyQEwk">https://t.co/8Hq7lyQEwk</a>— filbfilb (@filbfilb) <a href="https://twitter.com/filbfilb/status/1748144057010851858?ref_src=twsrc%5Etfw">January 19, 2024</a></blockquote> 

According to him, three-day chart crosses below the daily 50-period simple moving average (DMA) tend to result in a downward trend. Previously, Filbfilb accurately estimated bitcoin reaching $48,000 around the time of spot bitcoin exchange-traded funds were approved by the U.S. Securities and Exchange Commission. 

On Jan. 19, BTC price action fell to $40,600. The price of bitcoin price has since rebounded and is at $41,644 as of Jan. 21, 12:30 PM Hong Kong time.

He correctly predicted bitcoin topping at $48K.


DecenTrader Founder Notes Bearish Signal

On Thursday, the Securities and Exchange Commission (SEC) announced the deadline regarding Fidelity's spot Ethereum exchange-traded fund (ETF) proposal has been extended to March 5.

It [said](https://www.sec.gov/files/rules/sro/cboebzx/2024/34-99390.pdf), "The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein."

Fidelity submitted its application for the Fidelity Ethereum Fund in November. In their proposal, they referenced a court ruling from the previous year, in which judges had pointed out the SEC's lack of a clear rationale for rejecting spot cryptocurrency ETFs while permitting futures-based products.

A month after futures ETFs went live, Fidelity joined BlackRock in trying to launch a spot Ethereum ETF.

SEC Postpones Decision on Fidelity's Spot Ethereum ETF Proposal

On Friday, bitcoin experienced a decline as a selling trend persisted following the launch of spot Bitcoin exchange-traded funds (ETF). Some have taken this as evidence that ETFs are going through a "sell the news" phenomenon.


**What does ‘Buy the Rumor, Sell the News’ Mean?**


The phrase "Buy the rumor, sell the news" is a commonly used expression in trading. In this trading context, it signifies that when favorable news is anticipated in the future, the price often rises in anticipation of the event but may not necessarily continue to rise after it occurs.

Market prices tend to adjust in anticipation of upcoming events, or "the rumor." By the time the event actually transpires, most individuals who intend to own the stock or currency have already made their purchases. Consequently, when the event unfolds, there are fewer buyers left to drive the price higher. This situation prompts some to sell and capitalize on their profits.

Similarly, if positive news is released and a stock or other asset experiences a drop in price, traders will often remark that "the information was already priced in." This means that the price had already increased before the news was officially announced, indicating that the asset's value had already accounted for the positive impact of that news.

Investors employing this approach typically target underpriced markets when indications suggest an asset could generate increased future cash flows.

Meanwhile, ETF issuers expanded their cryptocurrency reserves by an additional 10,667 Bitcoin (BTC) on the fifth day of trading, amidst rising trading volumes. According to data gathered by [CC15Capital](https://twitter.com/Capital15C/status/1748122024550031386?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1748122633260933246%7Ctwgr%5E409b747bc66184f7c6044e3a4ca1cd18529d533e%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fspot-bitcoin-etfs-scoop-up-10000-btc-day-5-trading), ETFs collectively acquired a net sum of $440 million worth of bitcoin on January 17. BlackRock's ETF accounted for the majority of these acquisitions, with 8,700 BTC valued at nearly $358 million.


Some insist that bitcoin prices are going through a "sell the news" phenomenon.


What Does ‘Buy the Rumor, Sell the News’ Mean?

The Commodity Futures Trading Commission (CFTC) charged digital asset platform Debiex with fraud, alleging that it took $2.3 million from investors. Also charged was Zhāng Chéng Yáng because Debiex used his digital asset wallet to misappropriate at least one customer’s funds, suggesting he was a “money mule”. 

According to the complaint, unidentified officers of Debiex initiated friendly or romantic relationships with potential customers and solicited them to open and fund trading accounts. This romantic scam is commonly known as “pig butchering.”

However, the customer funds were traded and Debiex websites only mimicked the features of a legitimate live trading platform. 

The complaint also alleges that Debeix targeted Asian Americans and contacted customers through social media platforms.

A [statement](https://www.cftc.gov/PressRoom/PressReleases/8850-24) by CFTC on Friday said, “From approximately March 2022 through the present, it’s alleged Debiex accepted and misappropriated approximately $2.3 million from approximately five customers as part of this scheme.”

According to CFTC Director of Enforcement Ian McGinley, "This case is an example of the Division of Enforcement’s core mission—bringing justice for victims, rooting out misconduct, and holding accountable those who violate the anti-fraud provisions of the CEA."


It is a common tactic among romance scammers. 

CFTC Charges Digital Asset Platform Debiex for ‘Pig Butchering’ Scam

HashKey Group, the operator of one of Hong Kong's two licensed cryptocurrency exchanges, recently completed a successful funding round, raising almost $100 million. This achievement has propelled the company into the realm of "unicorns," with a valuation of about $1.2 billion.

According to HashKey, the funds will be directed towards the development of a web3 ecosystem and the creation of licensed products within the Hong Kong market. 

On Tuesday, the company announced that both existing and new investors had participated in the funding. Bloomberg reports that OKX Ventures, the investment division associated with the OKX digital-asset exchange, is one of the primary contributors in this funding round.

It says that its valuation is now over $1 billion.

HashKey: We're a Unicorn Now


On Tuesday, Binance Thailand officially opened its cryptocurrency exchange. Known as Gulf Binance, it is a collaborative effort between Binance and Gulf Innova and will both be an exchange and brokerage platform. Its primary function is to enable users to trade digital assets with local currency pairings. 

Gulf Binance secured a license to operate from Thailand's finance ministry in May 2023 and has since received approval to provide digital asset exchange services. This move adds Gulf Binance to the growing list of crypto exchanges entering the Southeast Asian market, joining established players like Coinbase, Zipmex, and Gemini.


It is a joint venture between Binance and Gulf Innova. 

Binance Thailand Unveils a Cryptocurrency Exchange for Trading

According to data from The Block, Tether’s share of stablecoin supply grew to 71% in 2023. Tether is the issuer of the USDT stablecoin and already has a significant presence in the industry. 

It previously held a 50% share of the global stablecoin market share. It currently has 95 billion stablecoins in circulation, Tether’s primary competitor, Circle's USD Coin (USDC), comes second with 27 billion tokens in circulation, down from its starting 2023 total of over 48 billion.

Paolo Ardoino, Tether’s new CEO, has been working towards a better relationship with law enforcement and regulatory authorities. It was reported that Tether [froze]((https://www.cryptoflash.report/articles/tether-freezes-41-crypto-wallets-in-proactive-move)) USDT holdings in wallets that were subject to sanctions by the U.S. Office of Foreign Asset Controls and brought in law enforcement agencies into the platform. 


It experienced significant growth in 2023. 


The Block: Tether Now Has Over 70% of Stablecoin Supply

PYTH network aims to connect the blockchain to the information in the real world.  A blockchain is a protocol and as such, it does not have access to data unless it is provided.  

PYTH Network is described as a decentralized oracle protocol that aims to provide reliable and secure access to financial market data [on-chain](https://pyth.network/blog/what-is-the-pyth-network)   It is the largest first-party oracle network for publishing financial market data on-chain, sourcing its data from over 90 first-party data providers, including some of the biggest exchanges and market makers. The network offers real-time price feeds for cryptocurrencies, equities, foreign exchange pairs, ETFs, and commodities to smart contract developers on more than 40 blockchains.

The native token of PYTH network is the PYTH token.  According to [token insight](https://tokeninsight.com/en/news/oracle-network-pyth-announces-pyth-tokenomics),  PYTH has a maximum supply of 10,000,000,000 tokens, with an initial circulating supply of 1,500,000,000 tokens 2. 85% of the PYTH tokens are initially locked and will unlock 6, 18, 30, and 42 months after the initial token launch 2. The PYTH token is used to incentivize data providers to publish accurate and timely data on the network 2.

PYTH Network is touted as a game-changer in the world of decentralized finance (DeFi) as it provides a reliable and secure way to access financial market data on-chain. With its real-time price feeds for various asset classes, PYTH Network is a valuable resource for smart contract developers on more than 40 blockchains.

**What makes PYTH unique?**

PYTH Network is unique in that it is a first-party oracle network that sources its data directly from over 90 first-party data providers. This is in contrast to other oracle protocols that rely on third-party data providers or crowdsourcing to obtain their data. By sourcing its data directly from first-party data providers, PYTH Network can provide more reliable and secure access to financial market data on-chain.

The PYTH network is in the same general category as Chainlink, which is regarded as the leading network that uses oracles.  The market capitalization of chainlink reached a high of USD22B on May 10, 2021, and has approximately USD7B market cap as of the writing of this article in January of 2024.  

In comparison, PYTH has a market capitalization of approximately USD500M as of the writing of this article.    The highest market capitalization of PYTH was approximately USD800M in November of 2023.  



The basics of PYTH network and its native token, PYTH.  

The basics of PYTH - A Decentralized Oracle Protocol for Real-Time Financial Market Data

BlackRock unveiled its inaugural video advertisement for the recently introduced iShares Bitcoin Trust ETF (IBIT) on January 11. The video is almost two minutes long, featuring a BlackRock executive who discusses Bitcoin's value proposition and explains how investors can gain exposure to the newly launched ETF. 

<blockquote className="twitter-tweet">Amazing ads from Blackrock on <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$IBIT</a>, the Blackrock Bitcoin Spot ETF. Definitely a new market of investors is reached through <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$IBIT</a> <a href="https://t.co/HxUZqE65kv">pic.twitter.com/HxUZqE65kv</a>— Alessandro Ottaviani (@AlexOttaBTC) <a href="https://twitter.com/AlexOttaBTC/status/1746561804615000253?ref_src=twsrc%5Etfw">January 14, 2024</a></blockquote> 

Bloomberg senior ETF analyst Eric Balchunas [observed](https://twitter.com/EricBalchunas/status/1746624788326388168) BlackRock's ad is targeting "rich boomers".

BlackRock's ad follows Grayscale's ETF video, which was released two days earlier. 

<blockquote className="twitter-tweet">There are a lot of crypto assets, but only one <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a>. There are a lot of spot Bitcoin ETFs, but only one <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GBTC</a>. Learn more: <a href="https://t.co/RSHmZE6JJ2">https://t.co/RSHmZE6JJ2</a> <a href="https://t.co/P7aBKPLTL3">pic.twitter.com/P7aBKPLTL3</a>— Grayscale (@Grayscale) <a href="https://twitter.com/Grayscale/status/1745486230304043337?ref_src=twsrc%5Etfw">January 11, 2024</a></blockquote> 

The competition for Bitcoin ETF marketing has intensified, beginning with Bitwise's initial advertisement on December 18. Shortly afterward, ETF providers Hashdex and VanEck followed suit with their own ad releases.

Valkyrie Bitcoin Fund, denoted by the ticker BRRR, garnered attention for its recent advertising presence on the Nasdaq billboard in New York City's Times Square, seen just last week.

BlackRock, Grayscale Drop ETF Ads

You may have heard about the bitcoin halving but have no idea?  It is one of the main reasons why bitcoin constantly becomes more and more scarce.  It is basically a slowdown in the new bitcoin that is released (or ‘mined’) out of the maximum 21 million bitcoins that can ever exist. 

Bitcoin halving is a process that occurs every 210,000 blocks on the blockchain, which is approximately every four years. During this event, the reward for mining new bitcoin is reduced by [50%](https://www.investopedia.com/bitcoin-halving-4843769) . This mechanism is designed to control the supply and maintain the scarcity of bitcoin, which has a fixed limit of [21 million](https://www.investopedia.com/bitcoin-halving-4843769) . The next halving is expected to occur in early-to-mid 2024, when the block reward will fall to [3.125]( https://www.investopedia.com/bitcoin-halving-4843769) .
The halving affects the price of bitcoin by changing the rate of inflation and the balance of supply and [demand]( https://www.investopedia.com/bitcoin-halving-4843769) . By reducing the rate at which new coins are created, halving lowers the available amount of new supply, which can increase the value of bitcoin through [scarcity](https://coingape.com/glossary/bitcoin-halving/) .

To learn more about Bitcoin halving, check out the following resources:

•	[Investopedia](https://www.investopedia.com/bitcoin-halving-4843769)
•	[Forbes Advisor](https://www.forbes.com/advisor/investing/cryptocurrency/bitcoin-halving/)
•	[Bitcoin Magazine](https://bitcoinmagazine.com/guides/what-is-the-halvening)
•	[CoinGape](https://coingape.com/glossary/bitcoin-halving/)
•	[Coinbase](https://www.coinbase.com/learn/crypto-basics/what-is-a-bitcoin-halving)


A brief and basic description of the bitcoin halving as well as some useful resources.

What in the world is the "Bitcoin Halving"?

The inaugural US ETFs directly holding Bitcoin have made a robust entrance, marking a historic first day of trading for these long-awaited investment vehicles. By 1 p.m. in New York on Thursday, over $3.5 billion worth of shares had exchanged hands among the 11 US spot Bitcoin exchange-traded funds. 

Notably, some reports indicate that the Grayscale Bitcoin Trust, which transitioned into an ETF, boasted approximately $1.7 billion in trading volume. BlackRock's iShares Bitcoin Trust (IBIT) witnessed more than $880 million in trading activity.

In three hours, Grayscale Bitcoin Trust managed to secure the position of the third-most actively traded ETF debut in history. It's important to acknowledge that this product has been in its trust format since 2013, granting it a considerable head start with nearly $27 billion in assets.

It's worth noting that trading volume does not necessarily indicate buying or selling or the flow of investor capital into these funds. Due to the settlement process employed by these funds, the net inflow or outflow of funds may not be ascertainable until at least Friday.

Comparatively, when the initial Bitcoin futures fund commenced trading in 2021, it witnessed a turnover of nearly $1 billion on its entire first day. At the time, the debut of the futures fund stood as the second-most heavily traded fund in history.

It was the first day of ETF trading ever. 

Bitcoin ETF Trades Reach $3.5 Billion

The U.S. Securities and Exchange Commission (SEC) granted official approval for the first regulated spot Bitcoin exchange-traded funds (ETFs) in the United States on January 10th. 

The SEC approved applications from various entities, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton. This approval involved rule changes that permit the listing and trading of spot Bitcoin ETFs on their respective exchanges.

This groundbreaking approval marks the introduction of the first regulated exchange-traded product in the United States that provides investors with direct exposure to the price of Bitcoin, eliminating the need for them to purchase Bitcoin itself or manage self-custody. Investors can acquire shares in ETFs that hold Bitcoin as their underlying asset.

The SEC rejected all spot Bitcoin ETF applications since 2013, citing concerns regarding potential market manipulation and fraudulent activities. However, the SEC's stance had to be reevaluated following a court ruling in August 2023, which overturned the SEC's denial of Grayscale's application to transform its Grayscale Bitcoin Trust into a spot Bitcoin ETF.

Alex Thorn, the Head of Digital at Galaxy Research, estimated that spot Bitcoin ETF inflows could reach a staggering $14 billion within the first year. Furthermore, global fund manager VanEck anticipates approximately $2.4 billion in investments flowing into spot Bitcoin products during the first quarter of 2024.

