From a Bitcoin inscriptions flagged as cyber risk to HTX experiencing a massive fund outflow, here is a 2-minute breakdown of everything important that happened in crypto today.
After soaring to new yearly highs last week, the crypto market cooled off a bit over the weekend. Some volatility is to be expected in this fast-moving space. But the long-term trajectory still trends upwards.
Speaking of the latest market movements, let's dive into some of the top crypto news stories making waves today. In brief:
- VanEck goes for 'HODL' with spot Bitcoin ETF filing. 📈
- HTX sees massive outflows post-hack. Can they rebuild trust? 💸
- Tether freezes sanctioned wallets, riles decentralization purists. 🥶
- Inscriptions deemed a cyber risk. 🤔
- Authorities aim to cut off crypto funding for a certain nation-state's weapons program. 💣
- Pudgy Penguins announces open web3 game with mass appeal. 🐧
Let's explore each of those stories in more detail!
VanEck Goes for ‘HODL’ 📈
Asset manager VanEck just amended its spot Bitcoin ETF filing with the ticker $HODL.
The ticker choice is garnering attention. Some say it may resonate with crypto natives more than traditional investors.
One called it an "unconventional approach" compared to the "boring Boomer-y" options of competitors. VanEck themselves tweeted a hype video proclaiming "HODLers rejoice!" They sure know their audience.
Several heavy hitters like BlackRock and Fidelity are also vying for spot Bitcoin ETF approval from the SEC.
While the SEC hasn't yet greenlit any filings, it's reportedly engaging with applicants on technical specifics. VanEck is hopeful its ETF will get the regulatory nod in January.
Will other asset managers follow VanEck’s unique approach? Read more!
And that brings us to our Word of the Day…
It’s ‘HODL’!
So what is HODL?
HODL means holding onto your coins or tokens long-term rather than selling them. It originated from a misspelling of "hold" in a popular 2013 Bitcoin forum post.
The mindset behind HODLing is that despite any volatility or bear markets, cryptocurrency prices will ultimately increase substantially in the future. So believers aim to resist panic selling through ups and downs.
Instead of actively trading crypto trying to time the markets, diehard HODLers accumulate positions and keep adding through dips with a multi-year investing horizon.
While HODL became kind of meme, it represents genuine faith in the long-term trajectory of crypto assets. By tuning out fear and sticking to their strategy, HODLers hope to reap major rewards years down the road.
But does it really work in a market as volatile as crypto? Read more!
Now back to our daily stories!
HTX in Danger? 💸
Justin Sun's crypto empire is on shaky ground lately. His exchange HTX has seen over $250 million in net outflows since resuming operations post-hack.
This comes after two other Sun-tied platforms, Poloniex and HECO Bridge, got hacked in November to the tune of around $200 million.
HTX itself lost $30 million from its hot wallet in a September breach. Despite pledging to reimburse users fully, trust remains fragile.
Can he fulfill his promise of fully reimbursing his users? HTX’s reserve revealed a different picture… Read the full story!
Tether Freezes Wallets 🥶
Tether is getting all buddy-buddy with regulators these days. They recently introduced a new policy to freeze the wallets of people on the government's sanctioned persons list.
Tether bills it as a voluntary move to enhance cooperation with law enforcement. They've already frozen wallets previously added to the list, despite past reluctance to do so proactively. Growth!
This includes freezing some Tornado Cash addresses. Tornado allegedly helped money launderers wash over $7 billion in crypto since 2019 according to OFAC. So far Tether has iced 41 wallets, including some linked to the massive $625M Ronin hack believed to be done by North Korean hackers.
The move contradicts Tether's previous commitment to censorship-resistance.
Is Tether's cooperation the start of a slippery slope? Will other stablecoin issuers follow Tether’s footsteps and move away from the ethos of decentralization? Or this corporation with regulators is beneficial for crypto in the long run? Read more!
Bitcoin Inscriptions Are Cyber Risk 🤔
Bitcoin's inscriptions have been labeled a cybersecurity vulnerability by the US government's National Vulnerability Database (NVD).
The database warned that the inscriptions exploit a bug to cram non-transaction data into Bitcoin's blockchain..
On Twitter, Bitcoin Core dev Luke Dashjr claimed inscriptions spam Bitcoin through the bug. He's working to fix it in upcoming upgrades.
Dashjr confirmed new Ordinals and BRC-20 projects would no longer be possible if the vulnerability is patched. This could severely restrict inscription-based protocols.
What's a bug to one party is a feature to another.
Can Bitcoin plug security holes without hindering creativity? Or will bolting down the base chain shatter promising but parasitic experiments above? Is this halt going to affect the already existing ordinal projects? Read the full story!
The Crypto Crime 💣
You may have heard whispers that a certain reclusive nation-state has a thing for crypto. And not in a good way.
Reports suggest they've been getting their grabby little hands on hundreds of millions in digital loot to fund...certain hobbies. Of the weapons variety. Not exactly a wholesome use of crypto.
Now the authorities in the US, Japan and South Korea want to put a stop to it. But can they shut down the crypto crimes without harming everyday users?
Blanket bans on mixers and privacy tools often go sideways. Legit users get caught in the crossfire as regulators play whack-a-mole with exploits.
Some critics say governments should focus more on beefing up security and less on control. The crypto community itself could potentially self-police better.
But others argue drastic action is needed to cut the head off the beast. There's no time for half-measures with global dangers potentially lurking.
No easy answers to this one. But is restricting mixers and privacy coins the solution? Sadly, most authorities think so! Read the full story!
Web3 Game Pudgy World 🐧
Popular NFT project Pudgy Penguins has revealed a trailer for its upcoming web3 game, Pudgy World. The 3D browser-based experience is set to launch in alpha in 2024.
Pudgy Penguins made waves this year, securing funding, going viral, and distributing plush toys at major retailers.
In Pudgy World, NFT holders can adopt a 3D character resembling their collectibles. The game will let users explore, customize avatars, and embark on story-driven quests.
CEO Luca Netz said the alpha enables Pudgy Penguin owners to engage without blockchain knowledge. Opening web3 gaming to the masses.
Can Pudgy World evolve beyond a short-term collectibles cash grab? Considering how big the project is probably going to be, will Web3 Gaming finally be able to secure its place among the gaming giants? Read the full story!
And that wraps up today's top crypto news stories. We'll be back tomorrow with the latest headlines making moves in crypto. Stay tuned!
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