Weekly: Telegram Held $400 Million in Cryptocurrencies, CZ Banned from Managing Binance, and 96% of NFT Collections Deemed “Dead”

Bitcoin experienced significant price fluctuations this week, starting at around $58,000 on September 2, 2024, and dropping to $52,500 by Saturday before recovering to $54,210. The volatility has been attributed to various factors, including a decline in the number of active Bitcoin addresses and short-term holders experiencing unrealized losses.

Bitcoin Price Movement and Market Analysis

At the start of the week, Bitcoin traded near $58,000 but saw a decline below $56,000 within two days. By Friday, it further dropped to $53,600 and hit a low of $52,500 on Saturday. As of the latest update, Bitcoin is trading around $54,210.

Expert Predictions and Network Activity

Howard Lutnick, CEO of Cantor Fitzgerald, predicts that in five years, US banks will hold Bitcoin alongside the dollar, facilitated by the launch of cryptocurrency ETFs in the US. However, CryptoQuant analysts note that the number of active Bitcoin wallets has reached its lowest point in 2024, potentially impacting the asset’s price negatively.

Volatility Risks and Whale Movements

Glassnode’s report highlights that the high unrealized losses among short-term Bitcoin holders could lead to increased market volatility. Additionally, a long-dormant Bitcoin whale moved 35 BTC ($1.99 million at the time) after more than a decade of inactivity.

Bitcoin Mining and Revenue

Bitcoin miners recorded their lowest monthly revenue since September 2023, with only 13,843 BTC mined in August 2024. JPMorgan reports that mining profitability hit a record low, with average earnings falling to $43,600 per EH/s. Marathon Digital mined 673 BTC in August, down 3% from July, reaching a hash rate of 35.2 EH/s.

Telegram and NFT Collections

Financial documents reveal that Telegram held approximately $400 million in cryptocurrencies in 2023 and sold Toncoin valued at over $244 million in 2024. Furthermore, 96% of over 5000 NFT collections analyzed by NFT Evening were found to be “dead,” having no trading volume or activity on social media.

Regulatory Challenges and Legal Issues

Binance’s former CEO, Changpeng Zhao (CZ), has been permanently banned from managing the company, though he retains significant influence as the majority shareholder. Uniswap Labs agreed to pay a $175,000 fine to the CFTC for trading derivative digital assets without a license.

Crypto and Politics

Notable figures in the crypto industry, including Ripple co-founder Chris Larsen and PayPal CEO Dan Schulman, have endorsed Kamala Harris for the US presidential race. Meanwhile, Donald Trump has pledged to support “future industries” like cryptocurrencies and AI, aiming to reduce regulatory burdens and stabilize energy supplies.

Security Incidents and Hacks

The crypto sector faced significant security challenges in August 2024, with losses from hacks amounting to $313.86 million. A hacker transferred over $6.5 million in stolen Ethereum to Tornado Cash, and the DeFi protocol Penpie lost more than $27 million in a separate attack.

Additional Developments

In other news, the SEC warned FTX against making creditor payments in cryptocurrencies, and the founder of Telegram, Pavel Durov, addressed the community after his arrest. Chainalysis released a report on how Russia is using cryptocurrencies to circumvent sanctions, while former Mt. Gox CEO Mark Karpelès announced the launch of a new crypto exchange, EllipX.
The crypto landscape continues to evolve rapidly, with significant movements in prices, regulatory developments, and security challenges. Keeping abreast of these changes is crucial for investors and industry participants.