TheCryptoDesk

TheCryptoDesk

Cryptocurrency

Riding the Crypto Wave: Multicoin Capital’s Remarkable Journey and Industry Growth

Cryptocurrency, Hedge Fund /

In the realm of cryptocurrency investments, Multicoin Capital stands out with its exceptional track record, boasting returns exceeding 9,000% since its inception in 2017. Despite facing significant setbacks in 2022, recent reports indicate a dramatic turnaround for the hedge fund, as revealed in its annual investor letter. According to the letter dated February 16, the Multicoin Capital Master Fund has achieved an astounding return of 9,281% since its establishment. This remarkable surge in performance is largely attributed to the resurgence of the cryptocurrency market, with the fund generating a remarkable 537% return in 2023 alone. Amidst this success, Multicoin Capital is poised to fulfill regulatory requirements by filing a Form ADV, demonstrating its commitment to transparency and compliance with the Securities and Exchange Commission (SEC). Previous filings indicate the firm’s management of over $1.36 billion in assets under regulatory oversight. Executives at Multicoin Capital, including Tushar Jain, Kyle Samani, and Matt Shapiro, highlighted the resilience of the cryptocurrency market in their investor letter. Despite challenges such as the bear market cycle, macro tightening, and fallout from financial fraud incidents, they view these periods as inconsequential for the firm, emphasizing their ability to capitalize on market dynamics and achieve significant outperformance. Multicoin Capital’s success mirrors a broader trend of growth within the crypto industry. Digital asset custodians like Balance in Canada and Korea Digital Asset (KODA) in South Korea have reported significant increases in assets under custody (AUC), reflecting renewed investor confidence amidst market recovery. KODA, established through collaboration between major Korean institutions, witnessed a remarkable expansion in crypto assets under its custody, with values soaring to approximately 8 trillion Korean won ($6 billion) by the end of last year. Analysts at Bernstein Research project further growth in the crypto funds sector, estimating a potential valuation of $500 billion to $650 billion within the next five years, highlighting the industry’s promising prospects. As Multicoin Capital continues to ride the crypto wave, its journey underscores the transformative potential of digital assets and the resilience of innovative investment strategies in navigating volatile markets.

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Market-Update-Background

Dogecoin Surges 50% as Bitcoin Bulls Make a Strong Comeback: Weekly Crypto Recap

Cryptocurrency, Markets /

After a period of consolidation and correction, the cryptocurrency market is showing signs of renewed activity. Most coins are experiencing gains, propelling the total market capitalization close to $2.8 trillion. Bitcoin’s price has notably surged, with a roughly 10% increase over the past week, now hovering around $70,000 and showing stability in recent days. The uptrend began earlier in the week as Bitcoin pushed toward $66,000 on Monday, quickly surpassing that level and reaching $70,000 shortly after. While attempts to breach $72,000 fell short, the leading cryptocurrency still saw significant gains. This positive momentum has spilled over to the broader market, with Ethereum rising more than 6% and Binance Coin (BNB) even outpacing Bitcoin with a 10.6% increase. Among large-cap cryptocurrencies, Dogecoin emerged as the standout performer, skyrocketing by an impressive 50% in the past seven days, surpassing many competitors, including its closest rival, Shiba Inu, which saw an 18% increase. In a quirky turn of events, Dogwifhat, another dog-themed meme coin featuring a dog wearing a hat, saw a remarkable surge of 75%. In other news, this week marked the sentencing of Sam Bankman-Fried to 25 years in jail, a decision met with mixed reactions within the crypto community. While some felt the sentence was insufficient, others acknowledged its severity. As April approaches, anticipation grows around Bitcoin’s halving event, adding to the market’s intrigue. Many are eager to see its impact and whether it will catalyze further price increases, as anticipated.

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Ethena Labs’s Fake ENA token Exploited on Binance Draining $290K: Report

Alt Coins, Binance, Cryptocurrency /

Hours after introducing Ethena (ENA) on Binance Launchpool, a fake ENA token has been exploited for 480 BNB worth $290,000. According to a report by on-chain security firm PeckShield on Friday, the exploited token is the fake version of ENA. “The token shares the same name as the legitimate ones,” the updated post on X (Twitter), read. #PeckShieldAlert $ENA (Ethena Labs) on #BNBChain has been exploited, resulting in a loss of 480 $BNB (worth ~$290K) *Note*: The token shares the same name as the legitimate ones — PeckShieldAlert (@PeckShieldAlert) March 29, 2024 Binance, the world’s largest crypto exchange by market value, added Ethena to its Launchpool, making the synthetic dollar protocol the 50th project to join the platform. The launch enables users to farm the token by staking BNB or FDUSD, the Friday announcement noted. The fake Ethena token exploit, separate from the Ethena Labs initiative, emphasizes robust security measures and due-diligence in token transaction. The news of the exploit spurred confusion among the crypto community on X. PeckShield confirmed users in a separate post that the token is fake and not linked with the legit Ethena. “Clarification: The token mentioned below is not authentic and should not be linked to Ethena in any way.” Clarification: The token mentioned below is not authentic and should not be linked to Ethena in any way. https://t.co/qxxKJfIe6n — PeckShieldAlert (@PeckShieldAlert) March 29, 2024 Ethena Token Airdrop – Highly Anticipated The news of the fake Ethena exploit comes at a time when the community is highly anticipating the token airdrop which the company announced to take place on April 2. The airdrop marks the next phase in its expansion after the success of its USDe synthetic stablecoin. The protocol has planned to airdrop 750 million ENA tokens, which is 5% of its total supply. Further, the airdrop will apply to eligible participants on April 2 and become available on centralized cryptocurrency exchanges (CEXs). The company noted that the size of each user’s drop is determined by the amount of “shards” they accumulated through April 1. Shards are digital units measuring users’ engagement with the protocol. Ethena’s USDe amassed a supply of over $1.38 billion, marking a key milestone, per DefiLlama data.

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Sam Bankman-Fried, Former FTX CEO, Receives 25-Year Prison Sentence

Cryptocurrency, Markets /

In his three decades of legal practice, Judge Kaplan expressed astonishment at witnessing a performance akin to that of Sam Bankman-Fried, also known as SBF, during the sentencing proceedings. SBF, the erstwhile CEO and founder of the now-defunct cryptocurrency exchange FTX, has been handed a sentence of 300 months, equivalent to 25 years, with an initial term of 240 months followed by an additional 60 months consecutively. The sentencing took place at the federal courthouse’s 26th floor in downtown Manhattan, where a jury had recently found the former crypto executive unanimously guilty on all seven criminal charges. Before the sentencing, Judge Lewis A. Kaplan found Bankman-Fried guilty of perjury, noting that he had falsely claimed ignorance regarding Alameda’s use of FTX customer deposits prior to 2022. Additionally, the judge concluded that Bankman-Fried had engaged in witness tampering by communicating with the former FTX general counsel before being taken into custody. Judge Kaplan dismissed the defense’s arguments regarding loss, stating that the defense’s claim of full reimbursement to customers and creditors was misleading, as it only equated loss with the dollar volume in the bankruptcy case. According to updates from Matthew Lee, the founder of the non-profit organization Inner City Press, investors lost $1.7 billion, Alameda lenders lost $1.3 billion, and FTX customers lost a staggering $8 billion. During the court proceedings, Bankman-Fried issued an apology, but state prosecutor Nicolas Roos portrayed FTX as founded on “pervasive criminality.” Similarly, Judge Kaplan characterized the proceedings as a “performance,” acknowledging Bankman-Fried’s refusal to admit guilt while recognizing his persistence and marketing skills. Judge Kaplan agreed with Roos that Bankman-Fried’s narrative was evident, noting his ability to continue promoting his story to the media despite the legal proceedings. The collapse of FTX in early November 2022 followed a CoinDesk report revealing that its sister trading firm, Alameda Research, heavily relied on speculative crypto tokens for its valuation. Concerns over this dubious financial practice, coupled with the close relationship between FTX and Alameda, prompted a surge of customer withdrawals, leading both entities into bankruptcy. This event caused significant upheaval in the already volatile cryptocurrency market, resulting in losses amounting to billions. A month later, the US government filed civil and criminal charges against Bankman-Fried and other top executives for misappropriating over $8 billion in customer deposits, fabricating financial statements, and orchestrating insolvency. Bankman-Fried was subsequently extradited from The Bahamas to the US, tried in October 2023, and convicted in November 2023 on criminal charges, with one charge being dropped in July 2023.

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PancakeSwap’s Latest Proposal Triggers a 21% Surge in CAKE Value Within Hours

Alt Coins, Binance Smart Chain, Cryptocurrency /

The PancakeSwap community is suggesting a reduction in the overall supply cap of its native token, CAKE. A proposal unveiled on December 21st advocates for decreasing the total supply limit of the asset from 750 million to 450 million. This proposal aligns with CAKE’s consistent deflation over the past few months and its intensified focus on advancing towards ultrasound CAKE. The objective is to establish a maximum cap of 450 million for the token, with the current circulating supply hovering around 388 million. The “Kitchen” team, overseeing the PancakeSwap platform, expresses confidence that this lowered cap will be sufficient to capture market share across all chains and sustain the veCAKE model. The rationale behind this adjustment is rooted in several factors. The PancakeSwap community explains that when the platform launched in 2021, the initial token supply aimed to provide ample incentives for bootstrapping the ecosystem. With nearly three years of development, the team now possesses more accurate estimations of the incentives needed to achieve its growth targets. Moreover, the total supply is a crucial metric in understanding the impact of token burns and future emissions. Reducing this number is vital to achieving ultrasound CAKE and signaling PancakeSwap’s departure from a hyperinflationary tokenomics model. PancakeSwap deems the new cap of 450 million CAKE as reasonable, ensuring ample supply for future expansion, such as gaining market share on Ethereum and Ethereum Layer 2s, and pursuing new initiatives like position managers. Following the proposal, CAKE experienced a 21% surge within hours on Thursday, moving from $2.22 to $2.70. The price has since stabilized around $2.52. In a related development, PancakeSwap recently announced the burn of over nine million native CAKE tokens, aimed at reducing the circulating supply. This move destroyed more than $19 million worth of CAKE tokens. As of December 5th, 2023, PancakeSwap successfully burned 0.089% of the total CAKE supply for November 2023, marking the third consecutive month of decreasing CAKE total supply and a cumulative net mint reduction of -712,667 CAKE over September, October, and November 2023.

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Bitcoin’s Portfolio Puzzle: Navigating the Controversy with Bloomberg Insights

Leave a Comment / Bitcoin, Cryptocurrency /

Is Bitcoin a Fitting Puzzle Piece in Your Portfolio? Bloomberg Weighs In Bloomberg recently suggested that while Bitcoin (BTC) may have a role in a diversified portfolio, ordinary investors are wise to approach it with caution. Bitcoin’s Rollercoaster Ride and Questionable Correlations Despite Bitcoin’s impressive performance this year, financial analyst and crypto advisor Aaron Brown expressed reservations about its suitability in an average investor’s portfolio due to its uncertain correlations with traditional asset classes such as stocks, currencies, and gold. Stable Surge Amid Market Turbulence While BTC has surged by 160% since the beginning of the year, recovering from losses incurred in the previous year amid aggressive interest rate hikes by the Federal Reserve, Brown highlighted its peculiar behavior. He pointed out that Bitcoin typically takes around nine months and twenty-one days to double in value since 2014. Despite its historical volatility, Bitcoin’s recent behavior has been surprisingly stable, even in the face of industry scandals, hacks, and regulatory pressure. Potential Attraction vs. Unpredictability Brown acknowledged that Bitcoin has the potential to attract investors due to its appreciation potential, and its reduced volatility might not be a hindrance. However, he cautioned that the unpredictable nature of Bitcoin around fundamental market events makes it a daunting prospect for those who are unwilling or unable to respond to frequent price changes. Skepticism and On-Chain Data Insights The skepticism among average investors is supported by on-chain data, with Glassnode analyst James Check noting a lack of market “mania” at the $44,000 price level compared to three years ago. Bloomberg blockchain analyst Jamie Coutts also indicated that Bitcoin’s illiquid supply levels suggest a higher level of conviction among investors. Evaluating Bitcoin’s Fundamental Value Examining Bitcoin’s fundamental value, Brown raised concerns about its adoption as a transactional currency compared to fiat or stablecoins. He also pointed out inconsistent demand for tools in the crypto economy that Bitcoin provides access to. Regulatory Progress and Portfolio Considerations Despite these reservations, Brown acknowledged Bitcoin’s progress on the regulatory front, with traditional and regulated financial services like options, lending, and custody now available for the asset. Legal and tax-related issues appear to be mostly resolved, and the approval of a Bitcoin spot ETF seems likely in the coming month. Balancing Act: Including Bitcoin in Your Portfolio In conclusion, Brown suggested that even traditionally skeptical investors should consider a small allocation to Bitcoin in their portfolios. While the future of crypto remains uncertain, the potential upside is significant enough that completely ignoring it could result in an unbalanced portfolio.

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Unveiling Crypto Mining: A Comprehensive Guide to Understanding the Digital Gold Rush

Leave a Comment / Basics, Cryptocurrency /

Introduction In the realm of cryptocurrencies, mining is the digital equivalent of striking gold. It’s the process by which new coins are created and transactions are verified on blockchain networks. In this comprehensive guide, we’ll dive into the world of crypto mining, exploring what it is, how it works, and why it has become an integral part of the decentralized landscape. What is Crypto Mining? Crypto mining is the process of validating transactions and adding them to the blockchain using specialized computer hardware. Miners, equipped with powerful machines, compete to solve complex mathematical problems. The first one to solve the problem gets the right to add a new block to the blockchain and is rewarded with newly minted cryptocurrency coins. How Does Crypto Mining Work? Popular Cryptocurrencies Mined Mining Hardware Challenges and Future Trends Conclusion Crypto mining, once the domain of tech enthusiasts, has evolved into a sophisticated industry with a significant impact on the cryptocurrency landscape. Whether you’re fascinated by the technical intricacies of solving cryptographic puzzles or the potential for financial rewards, understanding the basics of crypto mining is key to navigating the digital gold rush. As blockchain technology continues to evolve, so too will the methods by which we mine and secure the decentralized networks that underpin the future of finance. Happy mining!

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Unveiling XRP: A Beginner’s Guide to Ripple’s Digital Currency

Leave a Comment / Alt Coins, Basics, Cryptocurrency, XRP /

Introduction In the ever-evolving landscape of cryptocurrencies, XRP stands out as a unique player, offering solutions that extend beyond simple peer-to-peer transactions. This beginner’s guide aims to demystify XRP, exploring what it is, how it works, and the potential future applications that make it a noteworthy digital asset. What is XRP? XRP is the native digital currency of the Ripple network, a global payment protocol aiming to facilitate fast, secure, and low-cost cross-border transactions. Unlike some other cryptocurrencies, XRP doesn’t rely on mining but rather operates on a consensus algorithm, making it more energy-efficient. How Does XRP Work? Use Cases of XRP The Future of XRP Further Reading For those eager to delve deeper into the world of XRP, here are some recommended links: Conclusion XRP, with its focus on efficient cross-border payments and financial inclusion, represents a unique player in the cryptocurrency space. As Ripple continues to develop and expand its network, XRP’s potential applications could extend to various industries, offering solutions to the challenges of traditional financial systems. Whether you’re a novice or an experienced crypto enthusiast, understanding the basics of XRP can open the door to a world of possibilities in the evolving digital economy.

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Solana: A Beginner’s Guide to the High-Performance Blockchain

Leave a Comment / Alt Coins, Basics, Cryptocurrency, Solana /

Welcome to the world of Solana, a cutting-edge blockchain platform that has gained significant attention for its high throughput and low transaction costs. In this beginner’s guide, we’ll explore the fundamentals of Solana, its unique features, and guide you on how to embark on your journey into this innovative blockchain. Understanding Solana: 1. What is Solana? Solana is a fast and scalable blockchain platform designed for decentralized applications (DApps) and crypto projects. Launched in 2020, Solana distinguishes itself through its high transaction speeds and low fees, making it an attractive choice for developers and users alike. 2. Key Features: How Solana Works: Getting Started with Solana: 1. Solana Wallet: To interact with Solana, you’ll need a wallet. Popular wallets that support Solana include: Recommended Wallets: 2. Buying and Storing SOL: Acquire SOL tokens from cryptocurrency exchanges and store them securely in your chosen wallet. Popular Exchanges: Further Reading: Conclusion: Solana’s high-performance blockchain has captured the attention of developers and users alike, offering a seamless experience for decentralized applications. Armed with the basics, a secure wallet, and some SOL tokens, you’re ready to explore the possibilities that Solana has to offer. Dive into this dynamic ecosystem and witness the future of fast, scalable blockchain technology!

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Ethereum Unveiled: A Beginner’s Guide to the Future of Smart Contracts

Leave a Comment / Alt Coins, Basics, Cryptocurrency, Ethereum /

Welcome to the world of Ethereum, a groundbreaking blockchain platform that goes beyond being just a cryptocurrency. In this beginner’s guide, we’ll explore the basics of Ethereum, delve into its innovative features, and guide you on how to get started with this transformative technology. Understanding Ethereum: 1. What is Ethereum? Ethereum is an open-source blockchain platform that enables the creation and deployment of decentralized applications (DApps). It was proposed by Vitalik Buterin in late 2013 and went live in 2015. Unlike Bitcoin, which primarily focuses on peer-to-peer transactions, Ethereum expands its functionality to support smart contracts. 2. Smart Contracts: One of Ethereum’s key features is its ability to execute smart contracts. These are self-executing contracts with the terms of the agreement directly written into code. Smart contracts automatically enforce and execute the terms when predefined conditions are met, removing the need for intermediaries. How Ethereum Works: Getting Started with Ethereum: 1. Ethereum Wallets: To interact with Ethereum, you need a digital wallet. Wallets come in various forms, such as online wallets, mobile wallets, hardware wallets, and software wallets. Popular choices include: Recommended Wallets: 2. Buying Ethereum: Obtain Ethereum by purchasing it on cryptocurrency exchanges using traditional fiat currency or other cryptocurrencies. Popular Exchanges: Further Reading: Conclusion: Ethereum opens the door to a new era of decentralized applications and smart contracts, revolutionizing the way we interact with digital systems. Armed with the basics, a secure wallet, and some Ether, you’re ready to explore the exciting possibilities that Ethereum has to offer. Dive in and witness the future of blockchain technology! 🌐🚀

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