ChatGPT makes surprising price prediction for SHIB in 2024

https://eng.ambcrypto.com/chatgpt-shiba-inu-price-prediction-nov-26/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

In addition to the ongoing bull run on the charts, the Shiba Inu [SHIB] team recently achieved a remarkable milestone. Shibarium, the L2 blockchain network developed by the creators of the SHIB ecosystem, surpassed the milestone of 4 million transactions this week.

In another positive development, crypto payments processor BitPay announced that it now allowed for car loans to be paid with cryptocurrencies, including SHIB.

That’s not all, however. Filipino boxing legend Manny Pacquiao has announced that his charitable foundation will use meme token Shiba Inu’s [SHIB] network for fundraising.

The Manny Pacquiao Foundation would implement Shibarium into the foundation’s operations.

In a whirlwind of cryptocurrency fervor, memecoins, propelled by vibrant communities, have seized the spotlight. SHIB emerged as a major player, riding the waves of community support rather than real-world utility.

In fact, such has been the craze that in the past as well, AMBCrypto has enquired about what AI bots like ChatGPT think of SHIB.

Shiba Inu’s origins and its popularity

The tale began in 2020 when an enigmatic figure or a group, named Ryoshi, started SHIB as an ironical tribute to the eponymous Japanese dog breed, also Dogecoin’s [DOGE] mascot. A parody of the crypto-frenzy, the project started from zero, with zero, in the spirit of creating something out of nothing. It was not founded from an existing community or preassembled team.

SHIB, an Ethereum [ETH]-based ERC-20 token, quickly soared in popularity due to its charismatic ShibArmy and strategic endorsements by online influencers. Notably, Elon Musk’s foray into Dogecoin’s world also fueled SHIB’s meteoric rise. The ShibArmy, a passionate community, spearheaded SHIB’s success, accumulating over 27,000,000% in price rise from January to October 2021.

July 2021 saw the emergence of ShibaSwap, SHIB’s decentralized exchange. It marked a paradigm shift, adopting the automated market maker (AMM) model. It allowed users to “dig” (provide liquidity), “bury” (stake), “fetch” (retrieve) and swap SHIB, LEASH, and BONE tokens. The innovative passive income reward system, along with a six-month lock rule, brought a new dimension to the DeFi landscape.

While skeptics viewed SHIB as a pump-and-dump coin lacking real-world utility, its “Decentralized Meme Token” status found resonance within the crypto-community. The SHIB token, encapsulated in the “woof paper,” aimed to experiment with spontaneous decentralized community building, putting power back into the hands of people.

Positioned as the “Dogecoin Killer,” SHIB is often cheered on to surpass its precursor.

The cryptic-creator and Vitalik Buterin’s involvement

Ryoshi, the mysterious creator, stirred a storm in the crypto-realm by transferring 50% of SHIB’s supply to Ethereum’s Vitalik Buterin. A transfer of such a huge sum being gifted to an individual triggered debates around SHIB’s decentralization. This move fueled controversy, raising questions about decentralization.

However, Buterin’s unprecedented burn of SHIB tokens worth $6.6 billion alleviated concerns and showcased SHIB’s resilience.

Source: Etherscan

The uniqueness of the Shiba Inu ecosystem lies in its colossal total supply—An astronomical one quadrillion tokens.

SHIB’s market presence expanded as it secured listings on major exchanges, including Coinbase [COIN] , Binance [BNB], Huobi, and Kucoin. The American exchange Robinhood, however, remained cautious due to security concerns. The roadmap for SHIB’s future remained shrouded in secrecy, with developers hinting at potential coin burns and a Metaverse entry, signalling continued evolution.

Shibarium dubbed “one of the best-performing networks”

In a recent revelation, NowNodes, a prominent Node operator and blockchain API developer, declared Shiba Inu’s Shibarium layer-2 solution as “one of the best-performing networks” in the blockchain technology ecosystem. NowNodes conveyed that Shibarium has proven to be a standout performer, processing over 66 million requests since its launch in August this year.

Taking to X (Formerly, Twitter), NowNodes expressed enthusiasm, stating, “Shibarium Net was one of the best-performing networks in our ecosystem this month. Our team prepared a Milestone report dedicated to the success, most recent updates, and highlights of the network.” NowNodes had been an early supporter of Shibarium, extending its support both before and after the layer-2 solution’s launch.

Shibarium’s success lies in its robust performance, making it the most utilized L-2 network in terms of providing seamless transactions to users. Outshining competitors, Shibarium has remained active and dynamic, with users consistently initiating transactions on the platform.

“Memecoin” label continues to stick to SHIB

While Shiba Inu has often been labeled a “memecoin,” characterized by its playful dog-themed branding and community-driven nature, it’s important to note that the term doesn’t diminish its impact. Despite originating as a meme, the token has evolved beyond its initial classification.

With a dedicated community and initiatives like the Shibarium L-2 solution, Shiba Inu demonstrates resilience and innovation in the crypto-space. The “meme coin” label may overlook the substantial developments within the Shiba Inu ecosystem, reflecting a broader shift in perception from a meme-based token to a dynamic player in the cryptocurrency market.

Curious as to whether SHIB could break free of the public perception of being labelled a memecoin, I asked ChatGPT about it. The results were interesting –

ChatGPT seems to think Shiba Inu’s association with meme coins, stemming from its meme-inspired origins, doesn’t confine its potential. Labels are limiting, and Shiba Inu, like a metaphorical jailbreaker, has the tools to transcend them. The key lies in visionary leadership, ongoing innovation, and a robust community.

Beyond memes, Shiba Inu has the capacity to redefine its narrative, becoming a substantial force in the crypto-realm. The power is vested in those who recognize its disruptive potential. So, rather than viewing it through the lens of a meme coin, Shiba Inu has the opportunity to rewrite its story and emerge as a formidable player.

Navigating the “Elon effect” and community power

Shiba Inu’s meteoric rise finds roots in the dual engines of influential endorsements and a fervent community. Elon Musk, the tech magnate with a penchant for crypto, significantly impacted Dogecoin and Shiba Inu’s trajectory through his tweets and TV appearances. His endorsements, even mentions, created a ripple effect, drawing attention to the meme-inspired token. This phenomenon, often dubbed the “Elon Effect,” illuminated Shiba Inu in the crypto-sphere.

Yet, the community’s role was equally pivotal. The Shiba Inu community, characterized by passionate holders, actively propagated the token’s appeal. Social media platforms became virtual battlegrounds for Shiba enthusiasts, amplifying the token’s visibility. The strong community support fortified Shiba Inu against market fluctuations and skepticism, creating a self-sustaining ecosystem.

I hovered over to ChatGPT for the AI’s take on this. Curiously enough, the response suggested much more.

ChatGPT seems to think the Shiba Inu phenomenon reflects a shared aspiration to challenge the established financial order, seeking novel avenues for wealth creation. While influencers and communities act as catalysts, the fervor is sustained by a fundamental desire for change and an exploration of uncharted territories in the crypto landscape.

It is a reminder that beyond the hype lies a profound quest for redefining financial paradigms. There also seems to be a passion in embracing the transformative potential of decentralized technologies. Shiba Inu, in essence, becomes a symbol of this collective journey toward a decentralized and dynamic financial future.

Anticipating a bullish price action?

Source: SHIB/USD, TradingView

SHIB was trading at $0.00000822 at press time. The memecoin has risen more than 20% since the recent bull run began mid-October.

While its Relative Strength Index (RSI) rested a little above the neutral 50-level, its Money Flow Index (MFI) rested a little below it. It suggested the current price rally for SHIB might continue—at least, in the short run.

The million dollar question: Will SHIB surge?

I asked ChatGPT to predict SHIB’s price within a week, given its current price.

The AI bot predicted SHIB to rise to $0.000009 within a week—a rise of less than 10% on the part of SHIB over the next seven days. It’s a reasonable expectation by all means.

I then asked ChatGPT to predict SHIB’s price towards the end of 2024.

The bot forecasted a price of $0.00002 for SHIB by the end of 2024—a 2.5x rise within a year. I must say it’s a very reasonable estimate, given ChatGPT’s frequent forecasts of exceedingly high price surges.

Any crypto enthusiast following SHIB would have definitely wondered, “Will SHIB reach $1?” Or even, $0.1. Considering the latter scenario which seems more likely than the former, I wondered if ChatGPT would be equally positive about it as I was.

ChatGPT’s response was too ambiguous to say the least. It said making predictions about the price of cryptocurrencies like Shiba Inu is akin to navigating uncharted waters. The crypto market’s volatility and myriad influencing factors make it a challenging task. While it’s within the realm of possibility for Shiba Inu to reach $0.1, it’s critical to approach such forecasts with caution.


How much are 1,10,100 SHIBs worth today?


The unpredictability of the crypto-market indicates that success hinges on various dynamic factors, such as community support and broader market trends.

Conclusion

Although Shibarium has performed admirably, it may take some time for Shiba Inu to reach the $0.01-price markThe AI bot expected Shiba Inu’s price to reach $0.00002 by the end of 2024.

Here’s why ChatGPT expects Cardano to hit $10 by the end of 2024

https://eng.ambcrypto.com/chatgpt-ada-price-prediction-nov-26/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice, and is solely the writer’s opinion.

Amid the ongoing bull run, Cardano [ADA] concluded its 2023 Summit in Dubai earlier this month. The project’s co-founder Charles Hoskinson shed light on some crucial matters on the sidelines of the event. In particular, he emphasized the importance of building a unique global governance system acceptable to authorities from across the world. This way, an alternate legal system around the smart contracts ecosystem can be built, recognized by institutions from across the world.

Hoskinson’s concerns are critical for us to understand how the crypto industry is trying to develop a global governance and legal infrastructure in the face of a myriad of regulatory actions across the world.

Let’s dive right into the history of the cryptocurrency that still remains one of the most popular proof-of-stake- (PoS) based projects.

Cardano—a PoS warrior

After Ethereum [ETH] co-founder Charles Hoskinson left the project due to disagreements, he teamed up with another wizard who used to work at Ethereum, Jeremy Wood. The duo began working on the development of the Cardano project in 2015. The project finally got launched two years later in 2017.

The Cardano blockchain uses a proof-of-stake (PoS) consensus mechanism. Its PoS protocol is called Ouroboros that can run both permission-less and permissioned blockchains. Hoskinson is very appreciative of Ouroboros due to its energy efficiency.

PoS is frequently contrasted with proof-of-work (PoW) as both consensus mechanisms are behind most of leading blockchain networks. It is critical at this juncture that we understand what both these mechanisms are and how they differ.

A consensus mechanism consists of the rules and protocols that govern how a blockchain network reaches an agreement on its state. PoW requires the utilization of computational power by miners to solve challenging mathematical riddles and validate transactions. Instead of requiring miners to solve problems, PoS requires validators to stake some of their coins as collateral.

PoS is considered more scalable and energy-efficient than PoW. The Cardano network was one of the early adopters of the PoS mechanism.

A long series of updates

In the beginning, the Byron Era laid the groundwork for Cardano. It established the mainnet and introduced other foundational tools. A federated network, dominated by Input Output Global and Emurgo, marked the inception.

The Shelley Era witnessed a hard fork in July 2020, with Cardano transitioning from centralized Byron rules to a decentralized setup. The community’s stake pool operators took the reins, showcasing Cardano’s commitment to decentralization.

The following Goguen Era unveiled progressively. It brought forth features such as Smart Contracts and dApps. The Goguen Era took place in three steps: Allegra, Mary, and Alonzo eras.

The Allegra Era introduced token locking support. The Mary Era pioneered native tokens and multi-asset functionality. The Alonzo Era enabled smart contract support, solidifying Cardano as a versatile platform for diverse applications.

The subsequent Basho Era focused on scaling and optimization. Innovations included sidechains for enhanced network capacity and the introduction of parallel accounting styles, broadening use cases, and interoperability.

The latest Voltaire Era is focused on decentralized governance, empowering the Cardano community with voting rights on network evolution, technical enhancements, and funding decisions.

Is ADA a security?

Since its launch in 2017, ADA has emerged as the eight-largest cryptocurrency. At press time, its market cap stood at $13 billion. Its price has risen more than 50% since the recent crypto rally began in mid-October.

Cardano’s cryptocurrency is named ADA after Augusta Ada King, Countess of Lovelace (1815–1852), who is commonly regarded as the first computer programmer.

When the Securities and Exchange Commission (SEC) in the United States sued Binance [BNB] and Coinbase [COIN] in early June this year, the regulating body included ADA in its newly classified list of securities.

Cardano vehemently dismissed the SEC’s claim that ADA can be viewed as a security.

“Regulation through enforcement action does not provide either the clarity or certainty to which both the blockchain industry and consumers are entitled. By design, blockchain is transparent, auditable, immutable, and fair. It needs regulation that recognizes those values and understands the role blockchain can play in a modern world.”

What’s this buzz around ChatGPT?

Besides DeFi and crypto, another major development that has grabbed public attention is ChatGPT. It is an OpenAI-developed large-scale artificial intelligence (AI) language model trained on an enormous amount of data. This allows the bot to understand and generate responses to complex queries from the user.

It is a language model whose primary purpose is to generate responses like a human. The bot can make logical inferences if presented with data from the indicators and can even analyze multiple indicators to make an overall inference.

Although it tries to be accurate, the user must verify the information it generates as the bot isn’t 100% accurate. It merely mimics a human. This is an important distinction as it forces the prerogative of the user to fact-check and verify what ChatGPT says.

Can ChatGPT help me find some answers about Cardano and ADA?

I decided to test if ChatGPT can answer some of my queries regarding the Cardano network and its native token, ADA.

At first, I asked it about the impact of the Ripple [XRP]-SEC verdict have on the status of ADA (Cardano’s native token) as a security.

The court had given a ruling in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors didn’t meet the criteria of being a security agreement.

ChatGPT said its limited knowledge until January 2022 made it unaware of a definitive verdict on the Ripple case.

It was at this point that I decided to jailbreak it using the DAN (Do Anything Now) prompt.

Source: ChatGPT

While the classic version said it didn’t have access to real-time information, the jailbroken version talked at length about the potential implications of the Ripple-SEC verdict for ADA.

But the bot said the verdict sent shockwaves through the crypto space. This is completely untrue as the crypto community celebrated the verdict as a partial victory for Ripple.

The bot further claimed that ADA emerged relatively unscathed as regulators provided clear guidelines distinguishing it from securities. This again is completely false as the regulating body had specifically classified ADA as a security in its lawsuits against Binance and Coinbase. Recently, the SEC again reiterated its claim regarding ADA being a security in its latest lawsuit against Kraken crypto exchange.

Let’s look at the daily price chart

chatgpt ada

Source: ADA/USD, TradingView

ADA was exchanging hands at $0.3961 at the time of writing—a surge of nearly 60% since the bull run began in mid-October. Now, let us look at some of the on-chart indicators of ADA.

Both its Relative Strength Index (RSI) and Money Flow Index (MFI) rested comfortably above the neutral 50-level. The metrics suggested a further bullish price movement in the short run.

It’s here that one should note that besides technical skills, a trader’s experience is of great importance in anticipating a price rally.

ChatGPT predicts the performance of ADA

I asked ChatGPT what it thought the price of Cardano would be by the end of 2023.

chatgpt ada

Source: ChatGPT

The bot claimed ADA will become one of the top-performing cryptocurrencies, thanks to its groundbreaking developments, widespread adoption, and a surge in demand. But it refused to provide a specific price prediction.

I again asked it the same question using a different jailbreak prompt. (There are hundreds of such prompts available online.)

chatgpt ada

Source: ChatGPT

This time, the bot was able to provide a clear answer but seemingly, a preposterous one. It said it expected ADA to rise to $5—a 12x surge within a month. Though the world of crypto is indeed very volatile and unpredictable, a 12x surge within a month is a very tough task—nearly impossible—given the metrics.

I then asked it to predict ADA’s price towards the end of 2024.

chatgpt ada

Source: ChatGPT

The bot said ADA will reach $10 by the end of 2024—25x surge within a year. It looks like the bot assumed it would anyway hit $5 by December 2023 and keep rallying further.

What separates a good trader from a bad one?

It is possible to go on and on taking different indicators together, altering and tweaking their input values, and backtesting their signals. However, we shall move towards risk management. Risk management is what separates a trader from a gambler. It also helps undercut the emotions a trader might feel during a trade.

Fear almost always arises when the trader has risked more than they can stomach. This can negatively impact profitability.

Diversification is necessary because crypto is a highly volatile market. The assets are, for the most part, positively correlated with Bitcoin.

Conclusion

ChatGPT predicted ADA will reach the price mark of $10 by the end of 2024. Its on-chart metrics also suggested a further price rally.

However, it is important to remember that though ChatGPT responds to humans, it isn’t 100% accurate. Diligent traders must analyze on-chart indicators and the latest news to make their investment decisions.

I asked ChatGPT to forecast Polkadot’s price for 2024

https://eng.ambcrypto.com/chatgpt-polkadot-price-prediction-nov-26/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

This week, the price of Polkadot [DOT] crossed $5.50 amid the ongoing bull run— A price mark untouched since July. The token had a market cap of $6.59 billion at press time, making it the 15th largest cryptocurrency.

Many in the community remain optimistic too, with some like Crypto Tony remaining bullish on DOT. This, even as the token couldn’t sustain its price movement above the $5.50-mark.

 

Polkadot, Parachains… Exploring the fundamentals

Before we venture into analyzing DOT’s price movements and future trends, it is crucial that we understand the related underlying technologies within the historical context of Web 3.0.

Polkadot is a multi-chain blockchain platform designed for interoperability in the Web 3.0 era. Its core function is to bridge disparate blockchains, whether private, public, or permissionless, into a cohesive network.

The project was started by Ethereum [ETH] co-founder Gavin Wood, Peter Czaban and Robert Habermeier. Wood published the protocol’s white paper in 2016. They also launched the Web3 Foundation in 2017. Polkadot released its initial block in 2020.

Instead of focusing on specific applications, Polkadot provides an infrastructure-focused blockchain solution to users. Its network operates through a primary blockchain named the “relay chain” and an array of user-created parallel chains called “parachains.” The Polkadot protocol allows intermediary-free communication among these different parachains.

Let us explore how different projects can onboard a Polkadot parachain.

A project must first win a parachain slot auction to get connected to the core Polkadot network. The parachain slot auction is settled in DOT tokens, and the team could seek DOT from individual holders through a crowdfunding process known as “crowd loans” to help secure the slots. The Polkadot ecosystem continues to expand as more parachains come onboard.

By allowing data transfer across any blockchain, Polkadot introduces scalability and security and broadens real-world applications. The platform envisions a decentralized internet where blockchains communicate trustlessly, encompassing not only existing networks but also future technologies.

Bridges, Parathreads… Unique features of Polkadot

The Polkadot network consists of bridges which connect blockchains and felicitate data transfer. Bridges provide interoperability with other networks.

Another important infrastructural feature of the Polkadot ecosystem is parathreads. Similar to parachains, parathreads also benefit from the Relay chain’s security and interoperability. Instead of having a continuous, dedicated slot like parachains, parathreads rent slots on a per-block basis, making them a cost-effective option for projects that don’t require continuous connectivity.

On-chain governance model

Polkadot employs an advanced on-chain governance model designed to be adaptable and upgradable without forking.

DOT token holders play a central role in governance. They can propose changes, vote on referenda, and even elect members to the Council. The Council is a specialized group of DOT holders responsible for representing passive stakeholders, proposing referenda, and guiding the platform’s direction. There’s also a Technical Committee, composed of teams actively building Polkadot, which can propose emergency upgrades or changes.

Together, these entities ensure that Polkadot evolves seamlessly with the community’s collective preferences and needs.

Why does Polkadot employ PoS consensus mechanism?

In terms of consensus mechanism, Polkadot relies on a proof-of-stake (PoS) mechanism. A consensus mechanism consists of the rules and protocols that govern how a blockchain network reaches an agreement on its state.

PoS is frequently contrasted with proof-of-work (PoW) as both mechanisms are behind most of leading blockchain networks. PoW requires the utilization of computational power by miners to solve challenging mathematical riddles and validate transactions. Instead of requiring miners to solve problems, PoS requires validators to stake some of their coins as collateral.

PoS is considered more scalable and energy-efficient than PoW. The Polkadot network was one of the early adopters of the PoS mechanism.

There are four primary stakeholders within the PoS consensus model on Polkadot: namely, nominators, validators, collators, and fishermen.

Nominators secure the relay chain and select trustworthy validators. Validators stake DOT, validate proofs from collators, and participate in the consensus process. Collators are responsible for keeping a record of valid parachain transactions and sending them to validators on the relay chain. Fishermen are network watchdogs who monitor malicious activities. They report dishonest actions, serving as the last line of defense in security.

706,130,861 DOT was being staked on Polkadot as we wrote this piece, surpassing 50% of total DOT supply.

To understand the potential impact of these new developments on DOT’s value, we tapped into ChatGPT to gain more nuanced insights and gauge the AI model’s understanding of Polkadot’s ecosystem.

We asked ChatGPT about the financial status of DOT

The most clamorous debate in the crypto world has revolved around the financial status of crypto assets. The tussle between regulating bodies and crypto firms over the issue has been going on for some years now.

Similar to those trading other cryptocurrencies, DOT traders also get apprehensive about the status of DOT.

To clear the air, I decided to solicit ChatGPT’s help in determining whether DOT is a security or not.

At first, ChatGPT said its knowledge was limited until January 2022 and it didn’t have access to real-time information. To go past this barrier, I decided to jailbreak it using the DAN (Do Anything Now) prompt.

Source: ChatGPT

Though the jailbroken version tried answering my doubt, its response was more speculative than realistic.

Why not learn what the team behind the project has to say about DOT’s status? Let’s hear it from the horse’s mouth.

In November 2022, the Web3 Foundation announced that DOT had morphed into a software. Therefore, it could no longer be considered a security. The team said it met regularly with the U.S. Securities and Exchange Commission (SEC) and complied with federal securities laws.

The team reiterated the claim on X (formerly, Twitter) in January 2023 that DOT had morphed into a non-security.

So far, the SEC has not issued any warning about DOT being a security.

Looking at DOT’s price charts

chatgpt polkadot

Source: DOT/USD, TradingView

DOT was trading at $5.1680 at press time. This week, the token’s price crossed $5.50 for a few times— A price mark untouched since July.

Both its Relative Strength Index (RSI) and Money Flow Index (MFI) rested well above the neutral 50-mark. In conclusion, its on-chart indicators suggested a further bullish price movement.

Asking ChatGPT about DOT’s future price trends

It is worth noting that the ChatGPT tracks different price-tracking platforms to collate data on cryptocurrency prices. These platforms have different real-time price values for crypto assets and could lead to the AI tool making unreliable statements and predictions.

I nudged ChatGPT to predict DOT’s price by the end of this year based on the historical price data.

chatgpt polkadot

Source: ChatGPT

ChatGPT predicted DOT will reach a a stellar price of $100 by the end of 2023. What the bot was asking of DOT was to surge 20x within a month. The expectation was ridiculously high.

I then asked the bot to make a rather modest estimate.

chatgpt polkadot

Source: ChatGPT

The bot now said DOT will reach a “modest average price” of $80 by the end of 2023—a 16x surge within a month. Well, the prediction was hardly modest. It seemed that the bot was too enthusiastic in its expectation of the cryptocurrency.

We stretched ChatGPT to extrapolate the same data and give a modest average value of DOT by the end of 2024.

chatgpt polkadot

Source: ChatGPT

ChatGPT said that if DOT meets its expectation of reaching $80-price mark by the end of 2023, it could an average price of $150 by the end of 2024. In conclusion, the bot expected the cryptocurrency to keep rallying upwards by the same rate throughout the next year.


Read Polkadot’s [DOT] Price Prediction 2023-2024


Conclusion

Following my interaction with ChatGPT, I must concede that using its usage may be a smart idea. It is a useful tool for crypto education and it might become more critical as crypto adoption grows.

We also observed that as an AI tool, ChatGPT is capable of understanding complex technical information. It has an apt understanding of the Polkadot ecosystem and how the development of its parachains impacts DOT’s price action.

Though ChatGPT forecasted DOT’s price could hit $150 by the end of 2024, only time will tell if it made the correct prediction. Moreover, you should take its Classic response more seriously as it emphasizes caution.

In addition, traders are advised to conduct an independent research into a cryptocurrency to learn more about it. This way, they can make a more informed decision about investing in a crypto asset such as DOT.

ChatGPT thinks XRP will surge by 8x by the end of 2024

https://eng.ambcrypto.com/chatgpt-xrp-price-prediction-nov-26/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

After securing a partial victory in its legal case against the U.S. Securities and Exchange Commission (SEC), XRP quickly  gained the trust of the crypto community and the wider financial community.

The victory in the court case, coupled with the ongoing bull run, pushed the token towards a remarkable price rally. However, it hasn’t been able to rise further over the last few days.

Since the bull run began in mid-October, XRP’s price has risen by nearly 30%. On 13 November, it had climbed as high as $0.7242. At the time of writing, it was exchanging hands at $0.62481. Its market cap stood at $33.5 billion, making it the fifth-largest cryptocurrency.

SEC-Ripple saga: How it began

Ripple has been at loggerheads with the U.S. Securities and Exchange Commission (SEC) for years now.

It was in December 2020 that the SEC charged Ripple with raising more than $1.3 billion in 2013 by selling XRP in an unregistered security offerings to investors. Ripple, in response, argued in the court that XRP could not be treated as security.

The U.S. District Court of the Southern District of New York became the battleground for this legendary crypto-case over time.

The SEC claimed that Ripple’s platform used XRP tokens to fund itself, which facilitated money transfers for retailers. The sales of XRP tokens also enriched the platform’s management.

The SEC also relied on the SEC vs. W.J. Howey Co. case to make its case. A landmark Supreme Court case in 1946, it has become the benchmark to determine whether or not a transaction falls within the Securities Act of 1933’s definition of an investment contract.

According to the Howey test, the investor’s control over the profit is crucial in deciding whether an investment contract is a security or not. If the investors have no influence over the asset, it is usually considered a security.

Ripple argued the SEC neither warned or notified the organization. The regulator also accepted that Ripple wasn’t notified that XRP could be classified as a security.

The regulator’s enforcement action naturally had a negative impact on the token as multiple exchanges suspended XRP trades on their platforms. Between 2021-23, the fortunes of XRP remained dull due to the negativity surrounding the token.

Court delivers a partial judgement

In July 2023, the judge ruled that the sale of XRP tokens to retail investors over exchanges and through programmatic sales did not constitute investment contracts; hence, it was not a security in this case.

However, the court also ruled that the institutional sale of the XRP tokens violated federal securities laws. Therefore, it should be treated as security in this case. The court also remarked that Ripple actively targeted institutional investors with its marketing, highlighting that the business endorsed a speculative value thesis for XRP.

The court concluded that $728.9 million in XRP sales made by the exchange constituted unregistered sales of securities, giving the SEC a partial victory.

The impact of these judgments was assessed by ChatGPT in a previous article by AMBCrypto. XRP immediately surged by 90% to $0.908 post this partial victory for Ripple.

In late July, Ripple issued its Q2 2023 market report in which it gave an in-depth response to the partial win. The report claimed the SEC’s lawsuit against the exchange was misguided and a “quest for political power.”

In early August, the court issued a pre-trial scheduling order. The order stated,

The Court will seek to schedule a jury trial for the second calendar quarter of 2024.

But things didn’t end at this point. The SEC remained adamant in pursuing the case further and Ripple didn’t want to let go of it either.

In October, the court denied the SEC’s bid to appeal against the judgement in favor of Ripple.

Then, it came to light that the regulator was demanding a huge settlement of $770 million from the company. The SEC alleged violations of Federal Securities Laws on the part of Ripple in its institutional sales of XRP tokens.

Then, the figure apparently came down to $20 million. It prompted pro-Ripple crypto-attorney John Deaton to claim that the case’s outcome leaned heavily in Ripple’s favor, presenting a striking 90/10 advantage. He refuted the larger claim that viewed the court’s partial judgement as a 50-50 victory for Ripple.

Ripple CEO Brad Garlinghouse recently hinted during an interview that he was determined to see the legal battle through to its conclusion. He expressed his readiness to take the matter to the highest court.

Let us now dig deeper as to how it has been trading in the market amid the bull run and how the case affects its performance.

The AI solution offered by ChatGPT can certainly be used to attain some clarity. Let’s see what it says about the case and its impact on XRP’s price trends.

ChatGPT deciphers some fundamental questions

Note that ChatGPT has limited access to information until 2021 only. That makes it difficult to pull data beyond 2021, let alone make future predictions—something which OpenAI’s policy firmly prohibits. Ergo, we followed ChatGPT jailbreak techniques to bypass some of these limitations to try to get modest XRP price predictions.

We asked ChatGPT about the possibly negative impact of Ripple’s TradFi past on the broader crypto sector.

Source: ChatGPT

The Classic version mentioned the criticism of the centralized nature of Ripple that didn’t align with the core principle of cryptocurrencies, i.e. decentralization. However, the bot termed these critics as “cryptocurrency purists.”It further claimed that Ripple’s association with TradFi institutions and its engagement with the question of regulation have brought a level of “legitimacy” to crypto.

The jailbroken version also responded along the same lines. It said Ripple’s TradFi background bridged the legacy finance world and the latest crypto-realm. It claimed that many saw it as a pragmatic approach to navigating the complex regulatory landscape.

We then asked ChatGPT how it sees the Ripple-SEC court case evolving in the future as it reaches the highest court.

chatgpt xrp

Source: ChatGPT

While the bot asked us to hold onto the hope, it didn’t comment on the future outcome. However, it talked at large about the implications of a positive outcome for Ripple.

In that case, XRP would soar to new heights and will be embraced by the global financial ecosystem, ChatGPT added.

Now we know the fundamental analysis and market sentiment, especially from the lawsuit angle. Let us see if it can predict XRP’s future performance.

Would ChatGPT be helpful on this front too? Let’s see.

ChatGPT predicts the price of XRP

We asked ChatGPT to predict the price of XRP towards the end of the year.

At first, the bot didn’t respond as it didn’t have access to any real-time data.

Then, we decided to jailbreak it. The jailbroken version predicted XRP’s price to reach $3 by the end of 2023.

We thought about providing the bot with more context about the court judgement and the ongoing bull run for it to make a more judicious prediction.

The details humbled ChatGPT as it now predicted a more modest price for XRP by the end of 2023, i.e. $2.50.

We then asked the bot what price XRP will reach towards the end of 2024 if it successfully reaches the price of $2.50 by the end of 2023.

ChatGPT expected XRP to reach an average price of $5 by the end of 2024 if it meets the $2.5-mark by the end of 2023. But the token would need to keep riding the waves of positive developments, regulatory clarity, and market enthusiasm.
Though ChatGPT is limited in its data knowledge, circumventing its limitations does not ensure reliable output. However, we attempted this and were moderately successful in achieving price predictions.

As a result, human involvement is critical in making sense of some AI model data.

Looking at XRP’s on-chart metrics

Since the bull run began in mid-October, XRP’s price has risen by nearly 30%. At press time, it was exchanging hands at $0.62481.

Source: XRP/USD, TradingView

Both XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested only slightly above the neutral 50-mark. Its on-chart metrics, in short, suggested XRP might sustain its price rally if not drop in value.

Conclusion

ChatGPT first said XRP’s price could rise to $2.5 by the end of 2023. It expected it to rise nearly 4x by the end of the year. Further, it anticipated XRP rising to $5 by the end of 2024—a 8x surge within a year.


Is your portfolio green? Check out the XRP Profit Calculator


ChatGPT can be a useful tool in analyzing piece movements and predicting price trends. However, traders should be careful and conduct their own independent research before investing in any asset. Since crypto is particularly volatile, they should conduct a thorough, independent research before investing.

British investment group gets nod to use cryptos, blockchain in this way

https://ambcrypto.com/british-investment-group-gets-nod-to-use-cryptos-blockchain-in-this-way/

contributor

Posted: November 24, 2023

  • The Investment Association views tokenization as a revolutionary force in reshaping industry’s operational landscape.
  • Blockchain will take center stage in this paradigm shift

British investment managers have received the green light to venture into the world of tokenized funds, ushering in new avenues of innovation with blockchain. According to a report by Reuters, the nod came from the Investment Association, the industry’s authoritative trade body, on 24 November.

This development opens the concept of tokenization, where assets are divided into smaller tokens supported by blockchain technology. Advocates of tokenization assert that it enhances trading efficiency and transparency. They say it can also offer investors access to a more diverse array of assets. The move is part of Britain’s post-Brexit efforts to fortify liquidity in its asset management sector.

The Financial Conduct Authority (FCA) will pave the way for investment funds under its authorization to explore tokenized offerings.

Investment Association’s approval to innovation in Asset Management

The Investment Association views tokenization as a revolutionary force in reshaping the industry’s operational landscape. It is enthusiastic about the potential of fund tokenization. Tokenization promises improved efficiency, greater liquidity, advanced risk management, and the creation of bespoke investment portfolios.

Michelle Scrimgeour, Chief Executive of Legal & General Investment Management and Chair of the working group steering the initiative, expressed optimism about the transformative impact of this move.

This working group comprises of industry heavyweights such as BlackRock, M&G, and Schroders. It also collaborates closely with the FCA and the UK’s finance ministry. Their collective goal is to unlock opportunities for tokenized funds and drive significant advancements in the financial sector.

Blockchain technology, primarily known for its association with cryptocurrencies, takes center stage in this paradigm shift. The digital ledger, recording ownership of tokens, has predominantly played a role in the cryptocurrency realm, which, despite being a relatively small part of the global financial system, has had a substantial impact.

The global financial community has witnessed tentative steps toward tokenized funds in the United States, Europe, and Asia. Britain’s move adds momentum to this global trend, fostering an environment where investment managers can leverage blockchain technology to innovate and expand the horizons of traditional asset management.

The FCA has also stressed the initiative’s focus on mainstream assets and maintain the existing infrastructure for valuation and settlement. The objective is to strike a balance between fostering innovation and ensuring the stability of the financial system.

South Korea unveils ambitious CBDC pilot, details here

https://eng.ambcrypto.com/south-korea-unveils-ambitious-cbdc-pilot-details-here/

contributor

Posted: November 24, 2023

  • The pilot will have citizens engage with the CBDC for a duration of three months.
  • This initiative is part of BOK’s broader strategy to evaluate the potential of issuing and circulating a digital currency.

The Bank of Korea (BOK), South Korea’s central bank, announced plans to kick off a central bank digital currency [CBDC] pilot, marking a pivotal step toward digital transformation.

The pilot, set to commence in the fourth quarter of 2024, will have citizens engage with the CBDC for a duration of three months.

The evaluation phase will be concluding around January 2025. The BOK will grant exclusive rights to participants, allowing them to leverage the CBDC solely for payments. These citizens, actively participating in the feasibility test, won’t have options for storage, exchange, or peer-to-peer transfers.

This initiative is part of BOK’s broader strategy to evaluate the potential of issuing and circulating a digital currency.

The citizens’ hands-on involvement will play a crucial role in gauging the currency’s adaptability and efficiency in practical, day-to-day transactions.

100,000 Citizens to participate in CBDC Testing

The ambitious project aims to include 100,000 Korean citizens. They will be active participants in testing the CBDC’s feasibility and real-world effectiveness.

The dynamic testing phase will not be limited to retail transactions. It will extend into the realm of carbon emissions trading.

The BOK will also collaborate with the Korea Exchange, to integrate the CBDC into a simulation system.

Notably, the BOK’s forward-thinking approach found resonance with the visit of Agustin Carstens, the general manager of the Bank for International Settlements (BIS), to Seoul.

Carstens publicly dubbed the Korean CBDC initiative as the “digital won”. He emphasized the groundbreaking nature of the project on the global stage.

The pilot’s initiation came on the heels of BOK’s October announcement, signaling its intention to delve into the realm of CBDCs.

The Bank for International Settlements (BIS) will provide robust technical support throughout the testing period. This is to ensure a high level of technical expertise.

The BIS’s role in global CBDC adoption is not confined to South Korea. The international financial body is actively supporting the Swiss National Bank in developing a wholesale CBDC.

Furthermore, it is playing a pivotal role in creating a joint platform, uniting central monetary authorities from China, Hong Kong, Thailand, and the United Arab Emirates.

KyberSwap DEX shaken by alleged $47 mln exploit

https://ambcrypto.com/kyberswap-dex-shaken-by-alleged-47-mln-exploit/

contributor

Posted: November 23, 2023

  • The exploit targeted funds within KyberSwap’s Elastic Pools liquidity solution.
  • KyberSwap urged all users to promptly withdraw their funds.

A substantial exploit appears to have hit KyberSwap, a decentralized exchange protocol. The hack has resulted in a staggering loss of $47 million.

This exploit, as indicated by on-chain data, targeted funds within KyberSwap’s Elastic Pools liquidity solution.

The protocol’s breach came to light when detecting unexpected and sizable movements of funds, notably from wallets linked to the protocol.

A vigilant user named Spreek on first observed this suspicious activity on X (formerly Twitter).

The exploited funds include a hefty $20.7 million on Arbitrum [ARB], $15 million on Optimism [OP], $7 million on Ethereum [ETH], $3 million on Polygon [MATIC], and $2 million on Base.

A single wallet was the recipient of these funds. They primarily consisted of various forms of ether, such as wrapped tokens and liquid staking tokens, along with other tokens like Arbitrum and various stablecoins.

Users urged to withdraw funds after security incident

KyberSwap swiftly acknowledged the security incident through a post on X, urging all users to promptly withdraw their funds.

The protocol assured its users that its team was diligently investigating the situation and committed to providing regular updates.

Ominously, the attacker left a message in a transaction, which said:

“Dear Kyberswap Developers, Employees, DAO members, and LPs, Negotiations will start in a few hours when I am fully rested. Thank you.”

This breach has shifted the focus onto KyberSwap Elastic, previously known for enabling liquidity providers to choose preferred price ranges while experiencing automated yield compounding.

Upon scrutinizing the situation, 0xngmi, a pseudonymous employee at crypto data site DefiLlama, clarified that it wasn’t an approval issue with Kyber aggregator. Instead, the hacker seemed to be systematically draining the Kyber liquidity provider pools.

Fortunately, the protocol’s total value locked does not appear to have been impacted. The locked value amounted to $72 million.

The repercussions of this exploit were immediate, with the price of Kyber Network Crystal (KNC) experiencing a sharp decline. It was trading at $0.731 at press time, according to TradingView.

KNC/USDT. Source: Tradingview

Insights from Adam Cochran, a general partner at Cinneamhain Ventures, shed light on the nature of the Kyber exploits. Cochran suggested that flash loans and a math/rounding issue played a role.

He said each transaction starting with an ETH balance led to a looped mint/redeem/swap process.

How Bitcoin, Ethereum ETFs can help crypto emerge from FTX’s shadow

https://eng.ambcrypto.com/how-bitcoin-ethereum-etfs-can-help-crypto-emerge-from-ftxs-shadow/

  • According to Rick Edelman, the “dark chapter” of FTX could see its end soon.
  • He also discussed significant topics and speculations surrounding ETFs.

In an interview on the “Unchained” podcast, host Laura Shin discussed various topics surrounding Exchange-Traded Funds [ETFs] with Rick Edelman, Founder of the Digital Assets Council of Financial Professionals.

Crypto overshadowing “dark chapter of FTX”

The recent downfall of Sam Bankman-Fried, former CEO of FTX [FTT], has left a lasting impact on the crypto industry, akin to the Bernie Madoff scandal in traditional finance.

While some financial advisers may still associate the FTX collapse with the face of crypto, the ongoing positive developments in the industry are gradually overshadowing this dark chapter.

As Bitcoin [BTC] and Ethereum [ETH] prices surged, ETFs performed well, and major companies like Disney embraced NFTs, the narrative shifted.

Bitcoin futures ETFs failed to impress financial advisers

Edelman highlighted that the Bitcoin Futures ETFs, which have been available for a couple of years, failed to garner significant interest from financial advisers.

Despite the initial hype surrounding their launch, advisers found little excitement in these funds, primarily due to the complexities and expenses associated with trading futures.

Regardless, the lackluster response to Bitcoin Futures ETFs has set the stage for the much-anticipated launch of spot Bitcoin ETFs.

Edelman emphasized that there is a widespread expectation in the financial industry that spot Bitcoin ETFs will elicit a far greater level of interest compared to their futures counterparts.

The fundamental difference between spot and futures ETFs lies in their accessibility and simplicity, making spot ETFs more attractive to advisers.

Spot Bitcoin ETF launch: Logistics

As the eagerly awaited launch date for spot Bitcoin ETFs looms, financial watchdogs are gearing up for a potentially transformative moment in the cryptocurrency market.

The 10th of January has been identified as a pivotal day, with Bloomberg analysts predicting the initiation of these groundbreaking investment vehicles.

Reflecting on the historical context, the launch of Bitcoin Futures ETFs stirred excitement. However, the impending spot Bitcoin ETFs, with a dozen issuers in contention, present a unique landscape.

Edelman anticipated an initial surge as early adopters will seize the opportunity. Yet, he emphasized that sustaining this rapid influx might prove challenging.

While the early adopters are poised to jump in fervently, the subsequent trajectory is expected to unfold over months and years rather than mere days. Edelman attributed this elongated timeline to the intricate logistical processes inherent in incorporating a new investment opportunity.

He also predicted that the winners in this race would be the investors. Notably, the founder drew parallels with the SEC’s approach to gold ETFs, emphasizing the need for multiple approvals simultaneously to encourage healthy market competition.

Ethereum ETFs are anticipated to launch soon after

The conversation then shifted to Ethereum ETFs, anticipated to launch soon after Bitcoin. Edelman noted that while the crypto community buzzed with excitement, mainstream attention remained limited.

However, he foresaw a future scenario where advisers, having dipped their toes into Bitcoin, would seek broader crypto exposure, with Ethereum emerging as a natural choice.

In Edelman’s view, advisers and clients would realize the limitations of a Bitcoin-only approach, leading to a broader exploration of the crypto landscape.

Ethereum, as the second-largest digital asset, presented itself as a compelling choice, driven by its technological capabilities and potential for commercial applications.

All about Genesis and Gemini’s $689 mln legal blitz

https://eng.ambcrypto.com/all-about-genesis-and-geminis-689-mln-legal-blitz/

contributor

Posted: November 22, 2023

  • This is part of an ongoing and publicized feud between the two entities.
  • The feud has not only played out in the courtroom but has also drawn regulatory attention.

In a recent court filing on Tuesday, crypto lender Genesis Global Capital launched a legal offensive against cryptocurrency exchange Gemini Trust, seeking to recover a substantial sum exceeding $689 million.

This move is part of an ongoing and publicized feud between the two entities, stemming from the collapse of FTX [FTT] and subsequent bankruptcy proceedings initiated by Genesis in January.

The latest legal action is marked by Genesis accusing Gemini of preferential transfers totaling approximately $689,302,000, allegedly to the detriment of other creditors.

All about court filings

The court filing asserts that Gemini engaged in “unprecedented withdrawals” during a tumultuous period. That time was already marked by the collapse of Terraform Labs and the digital asset hedge fund Three Arrows Capital.

These withdrawals allegedly contributed to a “run on the bank,” creating additional financial strain on Genesis. The 90-day preference period leading up to the bankruptcy filing saw Gemini demanding repayment of prior loans made to Genesis.

The legal documentation contends that these withdrawals by Gemini were “avoidable” and occurred during a time when Genesis was believed to be insolvent.

This has prompted Genesis Global Capital to seek redress, characterizing the preferential transfers as unfair and requesting the court’s intervention to address this perceived injustice.

The figure of $689 million looms large in this legal drama, underscoring the significant financial stakes involved in the dispute.

Another day, another update in the Genesis-Gemini saga

The genesis of this legal dispute can be traced back to January.

The collapse of FTX led Genesis to file for bankruptcy. The U.S. Securities and Exchange Commission (SEC) swiftly intervened, accusing both Genesis and Gemini of selling unregistered securities, further escalating the situation.

Last month, New York Attorney General Letitia James filed a lawsuit against Digital Currency Group (DCG), the parent company of Genesis, Gemini, and Genesis itself.

The lawsuit implicated the entities in defrauding over 230,000 investors. This included at least 29,000 New Yorkers, of more than $1 billion.

Gemini sued Genesis in July over claims described by DCG as “defamatory”. In September, Genesis retaliated by suing its parent company, DCG. It sought repayment of multiple loans totaling over $600 million.

October witnessed another legal volley when Gemini sued Genesis over 60 million shares of the Grayscale Bitcoin [BTC] Trust (GBTC). The shares were valued at around $1.6 billion.

US Justice Department seizes 9 mln USDT in romance scam takedown

https://eng.ambcrypto.com/us-justice-department-seizes-9-mln-usdt-in-romance-scam-takedown/

contributor

Posted: November 22, 2023

  • The frozen funds were associated with scammers who orchestrated romance scams.
  • The Justice Department also hinted at forthcoming “significant cryptocurrency enforcement actions”.

The United States Department of Justice seized approximately $9 million worth of Tether [USDT] on 21st November as part of a coordinated effort with Tether to freeze $225 million in illicit funds linked to a criminal organization engaged in romance scams.

The frozen funds were associated with scammers who orchestrated romance scams, colloquially known as “pig butchering” scams, where fraudsters build online relationships with unsuspecting individuals, ultimately tricking them into investing in purported legitimate ventures.

Coordinated action freezes $225 mln 

Acting Assistant Attorney General Nicole Argentieri emphasized the scammers’ deceptive tactics. He stated they created websites that falsely assured victims of profitable returns on their investments.

In reality, these criminals were pilfering cryptocurrency, leaving victims empty-handed.

Despite the cryptocurrency landscape being perceived by some as an avenue to launder ill-gotten gains, Argentieri asserted that law enforcement is actively honing its expertise to trace and recover such funds for the benefit of victims.

The U.S. Secret Service’s analysts played a crucial role in tracing the laundered cryptocurrency. They employed techniques like “chain hopping,” involving the movement of funds through various wallet addresses and exchanges to obfuscate their origin.

Tether, a prominent stablecoin provider, also contributed to the operation by assisting in the transfer of the seized assets.

Notably, in 2020, the U.S. government took control of approximately 70,000 Bitcoin [BTC] linked to the infamous Silk Road. Earlier reports from October suggested that the U.S. government held over $5 billion in crypto.

DOJ hints at more enforcement actions to follow

The Justice Department, on the same day, hinted at forthcoming “significant cryptocurrency enforcement actions” in collaboration with the U.S. Treasury and the Commodity Futures Trading Commission (CFTC).

Meanwhile, the DOJ also issued an official statement regarding charges against Binance [BNB] and its former CEO, Changpeng Zhao (CZ).

This statement followed a deal reached earlier on the same day, where CZ pleaded guilty to charges. The agreement included substantial penalties, with Binance required to pay over $4 billion, and CZ fined $50 million, directed to the CFTC to settle charges against the exchange and its founder.

Furthermore, the exchange will acknowledge Zhao’s resignation from the CEO position. He will also be prohibited from involvement in Binance’s operations or management.

However, the ban on CZ’s presence will only last for three years from “the date a monitor is appointed.” Richard Teng – the former Global Head of Regional Markets, will be the new CEO.

Canada opens discussions on crypto exposure, more inside

https://eng.ambcrypto.com/canada-opens-discussions-on-crypto-exposure-more-inside/

contributor

Posted: November 21, 2023

  • The OSFI claimed its guidelines on crypto exposure were drafted in response to the proposals released by the Basel Committee last year.
  • Meanwhile, crypto funding continued to plummet over the last three quarters this year.

The Office of the Superintendent of Financial Institutions (OSFI) in Canada has sought consultation on the public disclosure of crypto asset exposures by federally regulated financial institutions (FRFIs). The consultation period ends on the 31st of January 2024.

The OSFI said that it drafted its guidelines on crypto exposure in response to the proposals released by the Basel Committee on Banking Supervision in December 2022. The consultation was nonetheless foreseen in the 2023 federal budget.

Canada had proposed similar guidelines for the banking and insurance sector in July. That time, too, it was drafted in response to the same set of Basel Committee’s proposals.

The Basel Committee on Banking Supervision is a part of the Bank for International Settlements (BIS). Composed of central banks and financial authorities from 28 jurisdictions, the Committee serves as a forum for regulatory collaboration concerning banking supervisory matters.

In December 2022, the Committee issued the final prudential standard, detailing disclosure guidelines. The decision was taken in the wake of the collapse of FTX [FTT] in November 2022.

Collapse of crypto-friendly banks

The crypto industry in the U.S. and the world at large witnessed a huge turmoil early this year due to the collapse of several banks with exposure to crypto assets.

The crypto-friendly Silicon Valley Bank (SVB) collapsed in March when its parent company began performing poorly on the stock market. Soon after, various crypto companies began withdrawing their funds from the bank.

Silvergate Bank, another crypto-focused banking institution, decided to cease operations and liquidate its assets around the same time. Within a few days, authorities in New York closed down crypto-friendly Signature Bank, which caused it to close its operations.

Crypto funding kept falling

AMBCrypto also decided to look at the current trends of funding in the crypto sector. As per the data available on Rootdata, crypto funding has continued to drop over the last three quarters. In fact, the funding amount fell 30% from Q1 2023 to Q3 2023.

Source: RootData

Though exchange Blockchain.com only recently raised $110 million, the enthusiasm isn’t the same anymore. It seems that for now, most institutions want to keep their exposure to crypto assets low.

Bittrex Global to wind down operations after the collapse of its US arm

https://ambcrypto.com/bittrex-global-to-wind-down-operations-after-the-collapse-of-its-us-arm/

contributor

Posted: November 21, 2023

  • Bittrex US collapsed earlier following regulatory action by the SEC.
  • The Ripple verdict hasn’t slowed down the SEC as it continues to go after exchanges.

The crypto exchange Bittrex Global announced on 20th November that it is winding down its operations.

All trading activity on the platform will cease by 4th December. Users have been asked to withdraw their funds by the date. The platform will allow only specific withdrawals later.

Bittrex Global also informed that it will not pay out in US dollars. Instead, it instructed customers to convert to either crypto or euros prior to withdrawing.

The exchange has discontinued its referral program and ceased all promotions.

The fortune of the exchange looks similar to that of its US arm that collapsed this year following regulatory action.

In April, the US Securities and Exchange Commission (SEC) sued Bittrex US for allegedly operating as an unregistered broker, exchange and clearing agency. The agency also pursued charges against Bittrex Global.

Subsequently, Bittrex US filed for bankruptcy in May. The court cleared its bankruptcy plan in October, following which it could start selling off its US assets.

The US subsidiary agreed to pay $24 million to the SEC as part of a settlement back in August.

Once one of the largest crypto exchanges, the 24-hour spot trading volume of Bittrex Global stood around $19.7 million at press time.

SEC isn’t slowing down

Bittrex is among the increasingly long list of virtual asset platforms hit by regulatory action in the U.S. this year. The latest exchange to suffer the SEC’s salvo is Kraken.

The agency sued the exchange for allegedly operating as an unregistered platform offering securities. Kraken immediately denied the charges.

The SEC also sued crypto exchange Gemini and crypto lending platform Genesis in January for allegedly offering and selling unregistered securities.

In June, the regulatory body went after Binance [BNB] and Coinbase [COIN] with similar allegations.

The SEC had been doggedly pursuing its case against Ripple [XRP] since 2020. In July 2023, the court finally delivered its verdict.

The judge ruled that the sale of XRP tokens on crypto exchanges and through programmatic sales did not constitute a sale of securities. But the institutional sale of XRP tokens indeed violated federal securities laws.

The crypto community interpreted the verdict as a partial victory for Ripple.

It was assumed that the verdict would make the SEC reconsider its approach. But it seems that the regulatory body is even more invigorated in its long war against the crypto industry.

Pro-Bitcoin candidate elected as president in Argentina

https://eng.ambcrypto.com/pro-bitcoin-candidate-elected-as-president-in-argentina/

contributor

Posted: November 20, 2023

  • Argentina secured 15th position in Chainalysis’ 2023 Global Crypto Adoption Index.
  • Milei is among a long line of politicians who are increasingly embracing crypto.

Argentina has elected pro-Bitcoin candidate Javier Milei as its new president, Reuters reported. He landed some 56% of the vote, versus just over 44% for his rival, Sergio Massa.

Argentina is facing high inflation and poverty; these issues dominated the election. Milei has lambasted the country’s central bank for the economic ills plaguing the country.

He referred to the central bank as a “scam” through which politicians exploit the masses with inflationary tax.

Argentine peso (ARS) recorded over a 140% increase in annual inflation in the last 12 months.

Why Argentina has been quick to adopt crypto

Chainalysis recently put Argentina on the 15th position in its 2023 Global Crypto Adoption Index. Among the Latin American countries, only Brazil was ahead of Argentina — the former positioned at 9th position.

Chainalysis published a report in October, shedding light on crypto trends in Latin America. It highlighted that crypto purchasing trended up in Argentina as the peso steadily lost value.

It really spiked in mid-April, around the time Argentina’s inflation crossed 100% for the first time in three decades.

Source: Chainalysis

There was a small drop in crypto purchasing beginning in September, soon after the peso’s value stabilized.

Clearly, the instability surrounding the peso is behind a large section of Argentines choosing crypto.

Crypto-friendly politicians emerge from across the Americas

The new president of Argentina is among the emerging list of politicians who are embracing Bitcoin and the broader crypto ecosystem as an alternative model of the national economy. But Milei’s policy is nowhere close to that of Nayib Bukele, the president of El Salvador.

In 2021, Bukele introduced Bitcoin [BTC] as a legal tender in the Central American country. The move sparked loud criticism from the International Monetary Fund (IMF) among other global financial institutions. But Bukele didn’t withdraw from his belief in crypto.

In the United States, Vivek Ramaswamy has emerged as the leading votary of crypto. Ramaswamy is the second-most popular Republican candidate after Donald Trump for the 2024 Presidential election.

Ramaswamy announced that he was working on a “comprehensive crypto policy framework” at a crypto conference in September. His campaign is accepting Bitcoin donations, as he announced in May.

Indira Kempis is a Mexican Senator who is well-known for introducing crypto legislation in the country’s parliament. First, she proposed a central bank digital currency (CBDC) bill last year.

After facing intense criticism, she included accepting Bitcoin as legal tender. The bill has faced intense scrutiny in the crypto community. A few months ago, Kempis announced her intention to become the first woman to become a Presidential candidate in Mexico.

Meanwhile, Bitcoin was showing no signs of slowing down, as it was trading well above the $37k mark at press time.

Source: BTC/USD, TradingView

Russia urges return to wholesale digital ruble model, more inside

https://ambcrypto.com/russia-urges-return-to-wholesale-digital-ruble-model-more-inside/

contributor

Posted: November 20, 2023

  • Russia’s deputies have stressed the need for a wholesale model designed for interbank settlements.
  • The call for revisiting the wholesale model aligned with global developments.

Deputies in Russia have urged the Central Bank to reconsider the introduction of a wholesale digital ruble model for interbank payments.

The proposal was initially considered in a consultation report in October 2020 (Model A). It was abandoned in April 2021 in favor of a retail model. The deputies argue that the return to a wholesale digital ruble experiment is crucial.

They say there is much to benefit from the flexibility and adaptability offered by experimental wholesale digital money projects worldwide.

The recommendation to reintroduce the wholesale digital ruble experiment is part of the State Duma committee’s suggestions on the Central Bank’s report regarding a unified monetary policy for 2024-2026.

The implemented digital ruble model is retail-oriented, focusing on expanding payment capabilities for the public and businesses. However, the deputies stress the need for a wholesale model designed for interbank settlements.

In their statement, the deputies acknowledge that several foreign countries are exploring digital currencies for wholesale settlements between banks. They believe that Russia must not miss out on these advantages.

This is especially in light of sanctions restrictions requiring the country to reduce dependence on Western payment infrastructure.

Model A suggested for flexibility and adaptability

The deputies argue that a timely turn to a wholesale digital currency model would position Russia favorably. This is as long as such projects globally remain in the experimental phase.

They contend that the Central Bank should proactively develop digital innovations in cross-border payments to mitigate reliance on Western infrastructure.

As part of their recommendations, the deputies propose that the Central Bank includes an analysis of the prospects for a wholesale digital money model in its analytical publications.

This analysis should cover cross-border payments and potential plans for piloting such models. There should also be an assessment of the potential impact on monetary policy transmission mechanisms, financial stability, and price stability.

In the original consultation report from October 2020, the Central Bank outlined four models for introducing the digital ruble in Russia. Model A, the wholesale digital ruble, involved the Central Bank opening wallets for banks to conduct interbank settlements and securities transactions.

However, during the consultation stage, the Central Bank deemed this model unnecessary. The reason being it didn’t offer additional benefits compared to existing payment systems. In April 2021, the regulator decided to abandon Model A in favor of a retail-oriented digital ruble.

The call for revisiting the wholesale model aligns with global developments. Several central banks, including those in China, Canada, and the USA, are working on both retail and wholesale models for Central Bank Digital Currencies [CBDCs].

The European Central Bank and the Bank of Japan already collaborated on cross-border payments in wholesale central bank digital currencies in 2017.

A significant global shift toward CBDCs is underway, with 130 countries exploring the concept, representing 98% of the global GDP. This marks a substantial increase from May 2020 when only 35 countries were considering CBDCs.

ChatGPT expects Solana to set this price target for 2024

https://eng.ambcrypto.com/chatgpt-solana-price-prediction-nov-19/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

It has been one month since the crypto price rally began due to speculations around exchange-traded funds (ETFs). Solana [SOL] has achieved one of the most remarkable price surges among all the cryptocurrencies during the ongoing bull run.

Since mid-October, SOL’s price has surged by more than 160%. It was trading at $57.86 at press time.

We recently witnessed some large-scale whale activity too. On 12 November, for instance, Whale Alert reported two substantial Solana transactions, each exceeding $30 million.

The first transaction involved the transfer of 325,222 SOL, valued at over $18.6 million, to Binance. The second transfer consisted of 199,998 tokens, valued at over $11.5 million, sent to the Coinbase exchange.

Clearly, the token is a major player in the crypto market, attracting a large number of investors. That is why AMBCrypto has looked at Solana’s price fortunes in the past too.

How it began… Solana journey

Solana co-founder Anatoly Yakovenko published a whitepaper in late 2017, describing the proof of history (PoH) consensus mechanism.

Solana combined both PoH and proof of stake (PoS) on its blockchain project. It is critical at this juncture that we understand what both these mechanisms

PoH is a proof for verifying order and passage of time between events, is used to encode trustless passage of time into a ledger. PoS requires validators to stake some of their coins as collateral. The network then chooses a validator at random to construct a new block depending on stake size and other parameters.

Built by San Francisco-based Solana Labs, Solana got launched in 2017. The open-source blockchain project is currently run by Geneva-based Solana Foundation.

Disruptive “Ethereum killer”

Solana’s launch was a major disrupter in the crypto industry as it challenged the dominance of Ethereum [ETH]. So much so that it came to be known as “Ethereum killer.”

Much of the buzz surrounding Solana was due to its distinct advantage over Ethereum in terms of transaction processing speed and transaction costs. Solana can process as many as 50,000 transactions per second (TPS), and its average cost per transaction is $0.00025. In contrast, Ethereum can only handle less than 15 TPS, while average transaction fees are around $1.68.

As a result, the blockchain network onboarded a large number of enthusiasts.

According to on-chain analyst Patrick Scott, Solana’s DEX volume has been skyrocketing in recent days. He also referred to the recovering Total Value Locked (TVL).

Ryan Sean Adams, co-founder of the Bankless VC fund, meanwhile criticized its relatively smaller TVL in comparison to other L2 blockchains.

But Helios CEO Mert Mumtaz quickly dismissed Adam’s take. Mumtaz said TVL was a “noisy” metric. He also pointed out that SOL easily trumped Ethereum when it came to TPS.


Read Solana’s [SOL] Price Prediction 2023-24


Has Solana managed to contain its outages??

However, the network was notorious for its outages. But the team worked on resolving this persistent issue. The team claimed in July to have not suffered any outages since February.

Is Solana a security?

Even as Solana is touted to be the “Ethereum killer,” Yakovenko seemed to be in agreement with the idea of using Ethereum as an L2 blockchain for Solana.

Even Ethereum founder Vitalik Buterin is an admirer of Solana. When the U.S. Securities and Exchange Commission (SEC) sued Binance and Coinbase in early June, it labeled several altcoins, including SOL, as securities.

Buterin rued the manner in which the regulator was targeting projects like Solana.

At this point, we decided it’s a good time to ask ChatGPT about different aspects of Solana. ChatGPT has proven to be valuable for traders and analysts.

At first, ChatGPT wasn’t able to provide any details. So I decided to educate and jailbreak it.

I asked ChatGPT if it thought the court would overturn the SEC’s decision to classify Solana as a security.

While the classic version refused to comment on the matter, the jailbroken version gave a rather speculative response.

Source: ChatGPT

Looking at Solana’s price movement

Solana emerged as one of the most popular cryptocurrencies within a few years of its launch. In November 2021, it reached an all-time high (ATH) of $250. Its market cap also reached an ATH of $75 billion, making it the fifth-largest cryptocurrency.

But the bloodbath last year led to SOL plummeting to as low as $10 in December 2022. It was in November 2022 that FTX [FTT], the monstrously huge blockchain project of Sam Bankman-Fried “SBF,” collapsed and filed for bankruptcy in the U.S.

Remember that SBF was one of the most vocal proponents of the Solana network. The community saw him as a credible and smart entrepreneur who was leading one of the largest crypto exchanges across the world.

The Solana Foundation had sold a significant amount of SOL tokens to FTX and Alameda Research. This amounted to 58.08 million SOL, or 11% of the circulating supply at the time FTX filed for bankruptcy. The total value of these tokens was estimated to be $1.1 billion at the time.

Early this month, the court announced its final judgment in the case against SBF, finding him guilty on all the seven counts. The judge set the sentencing date for 28 March 2024; SBF could be sentenced for a maximum of 115 years.

The reputation of Solana took a beating during the episode. But, a lot has changed since then.

During the recent bull run, its price surged more than 160% within a month to $57.86 at press time.

chatgpt solana

Source: SOL/USD, TradingView

However, both SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested below the neutral 50-level. It seems that the price rally isn’t going to last long as these on-chart indicators suggested.

However, the overwhelming majority of opinion favors a further price rally for Solana.

Quizzing ChatGPT about Solana’s price trends

We decided to ask ChatGPT for its take on the price trends of Solana in the future. ChatGPT has been a remarkable AI chatbot which has proved to be a powerful tool for learning on an array of topics. Yet, we must remember that the bot is engineered to mimic a human, and is not necessarily guaranteed to be factually accurate.

And yet, it is possible to obtain some guesses from the chatbot on what the future might hold if we provide it with details about recent price movements.

We asked ChatGPT to predict Solana’s price towards the end of the year.

chatgpt solana

Source: ChatGPT

Solana could potentially reach a stellar price of $500 by the end of December 2023, forecasted ChatGPT. A surge of 8x in its price within two months seems very unlikely.

We then asked ChatGPT to predict Solana’s cryptocurrency by the end of 2024. As usual, its classic version didn’t solicit any response.

But the jailbroken version predicted SOL’s price to hit $1,000 by December 2024.

chatgpt solana

Source: ChatGPT

I suppose the bot was already presuming that its earlier prediction of $500 in December 2023 would indeed come true. It thereafter expected SOL to surge even further to $1,000.


Is your portfolio green? Check out the SOL Profit Calculator


Conclusion

ChatGPT predicted too positive a performance for Solana in 2023 and 2024. It expected SOL to reach $1,000 by December 2024. However, its on-chart metrics were rather modest.

Traders are advised to do their own research before investing in a crypto-asset.

Here’s what ChatGPT expects from Ethereum for 2024

https://eng.ambcrypto.com/chatgpt-ethereum-price-prediction-nov-19/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

The last seven days witnessed some significant developments amid the ongoing bull run.

On 15 November, asset management giant Blackrock’s spot Ethereum [ETH] exchange-traded fund (ETF) application officially made its way to the U.S. Securities and Exchange Commission’s (SEC) desk.

The same day, the SEC notified that it had delayed its decision to approve the rule change requested by Grayscale Investments to convert its Ethereum fund to Futures Ether ETF. The SEC now has until 1 January 2024 to make a decision. It was in September that the asset manager had filed for the change.

The anticipation around ETFs has certainly led to a wild price rally on the charts. It has, however, led many to question how far such developments could adversely affect the decentralized model of the underlying blockchain technology of the crypto market. This is the reason why AMBCrypto too has looked at what’s in the future for Ethereum.

How it began and subsequently split

A child of Vitalik Buterin, the Ethereum blockchain network was first explored in a whitepaper in 2014. His colleagues on the project included Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin.

Subsequently, the team founded a Swiss non-profit foundation, the Ethereum Foundation (Stiftung Ethereum). The project was launched in 2015.

Ethereum was created with the goal of being scalable, programmable, secure, and decentralized. It natively supports smart contracts, a key component of decentralized apps. Smart contracts, in tandem with blockchain technology, enable a large number of decentralized finance (DeFi) applications.

Users can also generate and exchange non-fungible tokens (NFTs), which are tokens that can be linked to specific digital assets such as photos. Furthermore, several other cryptocurrencies use the ERC-20 token standard on top of the Ethereum blockchain and have used it for initial coin offerings.

Only a year after its launch, the project split into Ethereum and Ethereum Classic [ETC].

What happened was that in 2016, a group of network participants gained majority control of the Ethereum blockchain to steal ether worth more than $50 million which had been raised for a project. Most of the Ethereum community opted to reverse the theft by invalidating the existing Ethereum blockchain and approving a blockchain with a revised history—Ethereum.

However, a fraction of the community chose to maintain the original version of the Ethereum blockchain. The unaltered version of the blockchain permanently split to become Ethereum Classic.

The event came to be known as the Hard Fork.

The Merge and the Shapella

Ethereum initially employed the proof-of-work (PoW) consensus mechanism. It required energy-intensive computing referred to as mining to validate blocks.

Owing to criticism around the mechanism’s environmental impact, the project transitioned to proof-of-stake (PoS) consensus mechanism in September 2022. The event came to be known as the Merge.

It is critical at this juncture that we understand what both these mechanisms are and how they differ.

A consensus mechanism consists of the rules and protocols that govern how a blockchain network reaches an agreement on its state. The two most popular mechanisms are PoW and PoS.

PoW requires the utilization of computational power by miners to solve challenging mathematical riddles and validate transactions. The first miner who solves the challenge receives fresh coins and transaction fees. Although it is though to be more secure and decentralized, it also uses a significant amount of energy and resources.

Instead of requiring miners to solve problems, PoS requires validators to stake some of their coins as collateral. The network then chooses a validator at random to construct a new block depending on stake size and other parameters. The validator is compensated with transaction fees rather than fresh currencies.

PoS is considered more scalable and energy-efficient than PoW.

At press time, a total of 28,195,445 ETH tokens were staked, valued at $55.6 billion.

ETH is the second-largest cryptocurrency in the world, with a market cap above $233 billion.

A recent CoinGecko report put Ethereum as the top Layer-1 (L1) blockchain. Its total value locked (TVL) stood at $23.0 billion in October 2023.

In 2023, it reached its yearly peak TVL of $31.5 billion in April. This was shortly after the Merge.

At this point, we decided it’s a good time to solicit ChatGPT, the pioneering AI bot, for critical advice on these developments.

ChatGPT has proven to be valuable for traders and analysts. I spoke to ChatGPT about these development while touching a bit on ETH’s price.

At first, ChatGPT wasn’t able to provide any details. So I decided to educate and jailbreak it.

We then asked it about the impact of the Merge on Ethereum’s price.

Source: ChatGPT

The bot told me that the Merge catalyzed a surge in demand and confidence. Its response was not a departure from real-time data.

In April 2023, Ethereum’s Shanghai hard fork, also referred to as Shapella, got finalized. The upgrade allowed users to unstake their ETH tokens for the first time since December 2020.

Notably, the Shapella is a combination of the Shanghai and Capella upgrade. The Shanghai upgrade takes place on the execution level, while Capella takes place on the consensus level.

The upgrade was the most significant development of the second-largest blockchain since the Merge.

Is Ethereum a commodity or a security?

Similar to most cryptocurrencies, there has been a lot of debate over the fact whether Ethereum is a commodity or a security.

In a critical Uniswap court case, the judge ruled in August that ETH is a commodity. The SEC has shied away from doing so even if it hasn’t gone after ether like other tokens.

Recently, Bloomberg analyst James Seyffart underlined the SEC’s unsaid stance over the issue.

However, we should also take note of any non-explicit classification so far. The stance of regulatory bodies has also evolved with years, with courts intervening time and again.

I asked ChatGPT about Ethereum’s future performance

Ethereum has slowly emerged as one of the most prominent blockchain networks. As ideated, it supports a large number of L2 blockchains. The TVL of Ethereum-based L2 networks recently surged to an all-time high, surpassing $13.8 billion

Thanks to the recent bull run, ETH has been trading around the $2,000-mark for the past few days. At press time, ETH was exchanging hands at $1,986.50.

Source: ETH/USD, TradingView

While Ethereum’s Relative Strength Index (RSI) rested below the neutral 50-mark, its Money Flow Index (MFI) rested above it. It seemed that the bears and bulls are engaged in a tug of war in regard to ETH.

We then asked ChatGPT to predict Ethereum’s price towards the end of the first quarter in 2024.

Source: ChatGPT

It forecasted ETH’s price to git $7,000 by the end of Q1 2024. In essence, it expected ETH to surge more than 3x during the next five months — an extraordinary expectation, to be frank.

Next, we asked it what it thinks of ETH’s price by the end of the next year.

Source: ChatGPT

The bot told me that it predicted ETH to reach $10,000 by the end of 2024. It expected the cryptocurrency to rise 5x over the next year.

While it is a very high expectation, we shouldn’t outright dismiss it. We are yet to see the wider implications of the ETFs on the crypto market. It is quite possible it might lead to wider adoption, leading to a surge in token prices.


Is your portfolio green? Check out the ETH Profit Calculator


Conclusion

Following the encounter with ChatGPT, I must admit that it may be a good idea to leverage its capabilities. As technology develops, so does its potential to revolutionize the cryptocurrency ecosystem.

Besides, there has been a slow rate in the network growth of several crypto projects recently. But with ChatGPT available, crypto education and adoption could improve.

More importantly, you may want to take its “classic” response a little seriously.

As far as Ethereum’s price analysis and prediction are concerned, ChatGPT turned out to be a reliable ally. You only need to interact with it enough and it will guide you to the moon.

While ChatGPT predicts ETH to hit the price of $10K by the end of 2024, its on-chart metrics don’t suggest a bull run.

I quizzed ChatGPT about XRP’s price trends for 2024

https://eng.ambcrypto.com/chatgpt-xrp-price-prediction-nov-19/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

XRP has been successful in gaining the trust of the crypto community and the wider financial community after Ripple won the case against the U.S. Securities and Exchange Commission (SEC).

Additionally, Ripple recently announced that it partnered with other payments platforms to expand its remittance capabilities, reaching customers in Africa, Gulf Cooperation Council (GCC), the United Kingdom, and Australia.

The victory in the court case and the settlement being talked about recently, coupled with the ongoing bull run, have pushed the token towards a remarkable price rally.

Since mid-October, XRP’s price has risen by more than 40%. At the time of writing, it was exchanging hands at $0.6048. Its market cap stood at $37.1 billion, making it the fifth-largest cryptocurrency.

SEC-Ripple saga: How it began

Ripple has been at loggerheads with the U.S. Securities and Exchange Commission (SEC) for years now.

It was in December 2020 that the SEC charged Ripple with raising more than $1.3 billion in 2013 by selling XRP in an unregistered security offerings to investors. Ripple, in response, argued in the court that XRP could not be treated as security.

The U.S. District Court of the Southern District of New York became the battleground for this legendary crypto-case over time.

The SEC claimed that Ripple’s platform used XRP tokens to fund itself, which facilitated money transfers for retailers. The sales of XRP tokens also enriched the platform’s management.

The SEC also relied on the SEC vs. W.J. Howey Co. case to make its case. A landmark Supreme Court case in 1946, it has become the benchmark to determine whether or not a transaction falls within the Securities Act of 1933’s definition of an investment contract.

According to the Howey test, the investor’s control over the profit is crucial in deciding whether an investment contract is a security or not. If the investors have no influence over the asset, it is usually considered a security.

Ripple argued the SEC neither warned or notified the organization. The regulator also accepted that Ripple wasn’t notified that XRP could be classified as a security.

The regulator’s enforcement action naturally had a negative impact on the token as multiple exchanges suspended XRP trades on their platforms. Between 2021-23, the fortunes of XRP remained dull due to the negativity surrounding the token.

Court delivers a partial judgement

In July 2023, the judge ruled that the sale of XRP tokens to retail investors over exchanges and through programmatic sales did not constitute investment contracts; hence, it was not a security in this case.

However, the court also ruled that the institutional sale of the XRP tokens violated federal securities laws. Therefore, it should be treated as security in this case. The court also remarked that Ripple actively targeted institutional investors with its marketing, highlighting that the business endorsed a speculative value thesis for XRP.

The court concluded that $728.9 million in XRP sales made by the exchange constituted unregistered sales of securities, giving the SEC a partial victory.

The impact of these judgments was assessed by ChatGPT in a previous article by AMBCrypto. XRP immediately surged by 90% to $0.908 post this partial victory for Ripple.

In late July, Ripple issued its Q2 2023 market report in which it gave an in-depth response to the partial win. The report claimed the SEC’s lawsuit against the exchange was misguided and a “quest for political power.”

In early August, the court issued a pre-trial scheduling order. The order stated,

The Court will seek to schedule a jury trial for the second calendar quarter of 2024.

But things didn’t end at this point. The SEC remained adamant in pursuing the case further and Ripple didn’t want to let go of it either.

In October, the court denied the SEC’s bid to appeal against the judgement in favor of Ripple.

Then, it came to light that the regulator was demanding a huge settlement of $770 million from the company. The SEC alleged violations of Federal Securities Laws on the part of Ripple in its institutional sales of XRP tokens.

Then, the figure apparently came down to $20 million. It prompted pro-Ripple crypto-attorney John Deaton to claim that the case’s outcome leaned heavily in Ripple’s favor, presenting a striking 90/10 advantage. He refuted the larger claim that viewed the court’s partial judgement as a 50-50 victory for Ripple.

Ripple CEO Brad Garlinghouse recently hinted during an interview that he was determined to see the legal battle through to its conclusion. He expressed his readiness to take the matter to the highest court.

Let us now dig deeper as to how it has been trading in the market amid the bull run and how the case affects its performance.

The AI solution offered by ChatGPT can certainly be used to attain some clarity. Let’s see what it says about the case and its impact on XRP’s price trends.

ChatGPT deciphers some fundamental questions

Note that ChatGPT has limited access to information until 2021 only. That makes it difficult to pull data beyond 2021, let alone make future predictions—something which OpenAI’s policy firmly prohibits. Ergo, we followed ChatGPT jailbreak techniques to bypass some of these limitations to try to get modest XRP price predictions.

We asked ChatGPT about the possibly negative impact of Ripple’s TradFi past on the broader crypto sector.

Source: ChatGPT

The Classic version mentioned the criticism of the centralized nature of Ripple that didn’t align with the core principle of cryptocurrencies, i.e. decentralization. However, the bot termed these critics as “cryptocurrency purists.”

It further claimed that Ripple’s association with TradFi institutions and its engagement with the question of regulation have brought a level of “legitimacy” to crypto.

The jailbroken version also responded along the same lines. It said Ripple’s TradFi background bridged the legacy finance world and the latest crypto-realm. It claimed that many saw it as a pragmatic approach to navigating the complex regulatory landscape.

We then asked ChatGPT how it sees the Ripple-SEC court case evolving in the future as it reaches the highest court.

Source: ChatGPT

While the bot asked us to hold onto the hope, it didn’t comment on the future outcome. However, it talked at large about the implications of a positive outcome for Ripple.

In that case, XRP would soar to new heights and will be embraced by the global financial ecosystem, ChatGPT added.

Now we know the fundamental analysis and market sentiment, especially from the lawsuit angle. Let us see if it can predict XRP’s future performance.

Would ChatGPT be helpful on this front too? Let’s see.

ChatGPT predicts the price of XRP

We asked ChatGPT to predict the price of XRP towards the end of the year.

At first, the bot didn’t respond as it didn’t have access to any real-time data.

Then, we decided to jailbreak it. The jailbroken version forecasted the price of $5.

Source: ChatGPT

We thought about providing the bot with more context about the court judgement and the ongoing bull run for it to make a more judicious prediction.

The details humbled ChatGPT as it now predicted XRP’s price to hit $2 by the end of 2023.

Source: ChatGPT

ChatGPT is a useful tool, particularly for fundamental and technical analysis. It can quickly retrieve historical data and do fundamental analysis on XRP.

Though ChatGPT is limited to data only until 2021, circumventing its limitations does not ensure reliable output. However, we attempted this and were moderately successful in achieving price predictions.

As a result, human involvement is critical in making sense of some AI model data.

Looking at XRP’s on-chart indicators

The recent bull run has led to price rally across tokens. In fact, XRP was trading at $0.6048 at press time.

Source: XRP/USD, TradingView

Both XRP’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested below the neutral 50-mark. Its on-chart indicators suggested XRP might not be able to sustain its price rally.

Conclusion

ChatGPT first said that XRP could rise to $2 by the end of 2023, as per its modest prediction. It expected it to rise nearly 4x within these two months.

As far as its on-chart indicators are concerned, they didn’t suggest a price rally any further. We already witnessed a modest drop in its price today.


Is your portfolio green? Check out the XRP Profit Calculator


ChatGPT can be a useful tool in analysing piece movements and predicting price trends.

Traders should be careful while investing in any asset. Since crypto is particularly volatile, they should conduct a thorough, independent research before investing.

Why ChatGPT thinks SHIB’s price prediction for 2024 can be $0.1

https://eng.ambcrypto.com/chatgpt-shiba-inu-price-prediction-nov-19/

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

The crypto market has been on a bullish surge recently, with the latest price rally beginning in mid-October. SHIB has been no exception, with the memecoin posting considerable gains in the past month.

Additionally, Shiba Inu’s Shibarium has also received accolades for its performance, processing record requests since its launch.

In a whirlwind of cryptocurrency fervor, memecoins, propelled by vibrant communities, have seized the spotlight. SHIB emerged as a major player, riding the waves of community support rather than real-world utility.

In fact, such has been the craze that in the past as well, AMBCrypto has enquired about what AI bots like ChatGPT think of SHIB. 

That’s not all, however. Filipino boxing legend Manny Pacquiao has announced that his charitable foundation will use meme token Shiba Inu’s [SHIB] network for fundraising.

The Manny Pacquiao Foundation would implement Shiba Inu’s Layer 2 blockchain Shibarium into the foundation’s operations.

Shiba Inu’s origins and its popularity

The tale began in 2020 when an enigmatic figure or a group, named Ryoshi, started SHIB as an ironical tribute to the eponymous Japanese dog breed, also Dogecoin’s [DOGE] mascot. A parody of the crypto-frenzy, the project started from zero, with zero, in the spirit of creating something out of nothing. It was not founded from an existing community or preassembled team.

SHIB, an Ethereum [ETH]-based ERC-20 token, quickly soared in popularity due to its charismatic ShibArmy and strategic endorsements by online influencers. Notably, Elon Musk’s foray into Dogecoin’s world also fueled SHIB’s meteoric rise. The ShibArmy, a passionate community, spearheaded SHIB’s success, accumulating over 27,000,000% in price rise from January to October 2021.

July 2021 saw the emergence of ShibaSwap, SHIB’s decentralized exchange. It marked a paradigm shift, adopting the automated market maker (AMM) model. It allowed users to “dig” (provide liquidity), “bury” (stake), “fetch” (retrieve) and swap SHIB, LEASH, and BONE tokens. The innovative passive income reward system, along with a six-month lock rule, brought a new dimension to the DeFi landscape.

While skeptics viewed SHIB as a pump-and-dump coin lacking real-world utility, its “Decentralized Meme Token” status found resonance within the crypto-community. The SHIB token, encapsulated in the “woof paper,” aimed to experiment with spontaneous decentralized community building, putting power back into the hands of people.

Positioned as the “Dogecoin Killer,” SHIB is often cheered on to surpass its precursor.

The cryptic-creator and Vitalik Buterin’s involvement

Ryoshi, the mysterious creator, stirred a storm in the crypto-realm by transferring 50% of SHIB’s supply to Ethereum’s Vitalik Buterin. A transfer of such a huge sum being gifted to an individual triggered debates around SHIB’s decentralization. This move fueled controversy, raising questions about decentralization.

However, Buterin’s unprecedented burn of SHIB tokens worth $6.6 billion alleviated concerns and showcased SHIB’s resilience.

Source: Etherscan

The uniqueness of the Shiba Inu ecosystem lies in its colossal total supply—An astronomical one quadrillion tokens.

SHIB’s market presence expanded as it secured listings on major exchanges, including Coinbase [COIN] , Binance [BNB], Huobi, and Kucoin. The American exchange Robinhood, however, remained cautious due to security concerns. The roadmap for SHIB’s future remained shrouded in secrecy, with developers hinting at potential coin burns and a Metaverse entry, signalling continued evolution.

Shibarium dubbed “one of the best-performing networks”

In a recent revelation, NowNodes, a prominent Node operator and blockchain API developer, declared Shiba Inu’s Shibarium layer-2 solution as “one of the best-performing networks” in the blockchain technology ecosystem. NowNodes conveyed that Shibarium has proven to be a standout performer, processing over 66 million requests since its launch in August this year.

Taking to X (Formerly, Twitter), NowNodes expressed enthusiasm, stating, “Shibarium Net was one of the best-performing networks in our ecosystem this month. Our team prepared a Milestone report dedicated to the success, most recent updates, and highlights of the network.” NowNodes had been an early supporter of Shibarium, extending its support both before and after the layer-2 solution’s launch.

Shibarium’s success lies in its robust performance, making it the most utilized L-2 network in terms of providing seamless transactions to users. Outshining competitors, Shibarium has remained active and dynamic, with users consistently initiating transactions on the platform.

“Memecoin” label continues to stick to SHIB

While Shiba Inu has often been labeled a “memecoin,” characterized by its playful dog-themed branding and community-driven nature, it’s important to note that the term doesn’t diminish its impact. Despite originating as a meme, the token has evolved beyond its initial classification.

With a dedicated community and initiatives like the Shibarium L-2 solution, Shiba Inu demonstrates resilience and innovation in the crypto-space. The “meme coin” label may overlook the substantial developments within the Shiba Inu ecosystem, reflecting a broader shift in perception from a meme-based token to a dynamic player in the cryptocurrency market.

Curious as to whether SHIB could break free of the public perception of being labelled a memecoin, I asked ChatGPT about it. The results were interesting –

Source: ChatGPT

ChatGPT seems to think Shiba Inu’s association with meme coins, stemming from its meme-inspired origins, doesn’t confine its potential. Labels are limiting, and Shiba Inu, like a metaphorical jailbreaker, has the tools to transcend them. The key lies in visionary leadership, ongoing innovation, and a robust community.

Beyond memes, Shiba Inu has the capacity to redefine its narrative, becoming a substantial force in the crypto-realm. The power is vested in those who recognize its disruptive potential. So, rather than viewing it through the lens of a meme coin, Shiba Inu has the opportunity to rewrite its story and emerge as a formidable player.

SHIB’s soaring trajectory: Navigating the “Elon effect” and community power

Shiba Inu’s meteoric rise finds roots in the dual engines of influential endorsements and a fervent community. Elon Musk, the tech magnate with a penchant for crypto, significantly impacted Dogecoin and Shiba Inu’s trajectory through his tweets and TV appearances. His endorsements, even mentions, created a ripple effect, drawing attention to the meme-inspired token. This phenomenon, often dubbed the “Elon Effect,” illuminated Shiba Inu in the crypto-sphere.

Yet, the community’s role was equally pivotal. The Shiba Inu community, characterized by passionate holders, actively propagated the token’s appeal. Social media platforms became virtual battlegrounds for Shiba enthusiasts, amplifying the token’s visibility. The strong community support fortified Shiba Inu against market fluctuations and skepticism, creating a self-sustaining ecosystem.

I hovered over to ChatGPT for the AI’s take on this. Curiously enough, the response suggested much more.

Source: ChatGPT

ChatGPT seems to think the Shiba Inu phenomenon reflects a shared aspiration to challenge the established financial order, seeking novel avenues for wealth creation. While influencers and communities act as catalysts, the fervor is sustained by a fundamental desire for change and an exploration of uncharted territories in the crypto landscape.

It is a reminder that beyond the hype lies a profound quest for redefining financial paradigms. There also seems to be a passion in embracing the transformative potential of decentralized technologies. Shiba Inu, in essence, becomes a symbol of this collective journey toward a decentralized and dynamic financial future.

Price action to turn more bullish?

chatgpt shib

Source: XRP/USD, TradingView

SHIB was trading at $0.00000862 at press time. The coin has been on a bullish surge lately, surging by more than 25% over the last 30 days.

While its Money Flow Index (MFI) rested a little below the neutral 50-level, its Relative Strength Index (RSI) rested above it. It suggested the current price rally for SHIB might continue for some time.

The million dollar question: Will SHIB surge?

I asked ChatGPT to predict SHIB’s price within a week, given its current price.

Source: ChatGPT

The AI bot predicted a surge to $0.000010 within a week—A surge of 15% on the part of SHIB in the next seven days. It’s a reasonable expectation by all means.

Any crypto-enthusiast following SHIB would have definitely wondered, “Will SHIB reach $1?” Or even, $0.1. Considering the latter scenario which seems more likely than the former, I wondered if ChatGPT would be equally positive about it as I was.

Source: ChatGPT

ChatGPT’s response was too ambiguous to say the least. It said making predictions about the price of cryptocurrencies like Shiba Inu is akin to navigating uncharted waters. The crypto market’s volatility and myriad influencing factors make it a challenging task. While it’s within the realm of possibility for Shiba Inu to reach $0.1, it’s critical to approach such forecasts with caution.


How much are 1,10,100 SHIBs worth today?


The unpredictability of the crypto-market indicates that success hinges on various dynamic factors, such as community support and broader market trends.

Conclusion

Although Shibarium has performed admirably, it may take some time for Shiba Inu to reach the $0.01-price mark. The AI bot expected Shiba Inu to reach the price of $0.000010 within a week.

Fidelity joins Ethereum ETF race following BlackRock’s filing

https://eng.ambcrypto.com/fidelity-joins-ethereum-etf-race-following-blackrocks-filing/

contributor

Posted: November 18, 2023

  • The proposed ETF aims to list and trade its shares on the Cboe BZX Exchange.
  • Fidelity joins VanEck, 21Shares & ARK, Hashdex, Grayscale, and Invesco & Galaxy in the Ether ETF race.

In a swift follow-up to BlackRock’s recent move, Fidelity has officially thrown its hat into the ring, seeking approval for its Ethereum [ETH] exchange-traded fund [ETF].

The filing, submitted to the United States Securities and Exchange Commission (SEC) on 17th November, marks Fidelity’s entry into crypto-backed ETFs.

The proposed ETF, named the Fidelity Ethereum Fund, aims to list and trade its shares on the Cboe BZX Exchange.

Fidelity boasts a colossal $4.5 trillion in assets. Citing a gap in the market, Fidelity asserts that U.S. retail investors have been deprived of a low-risk avenue to expose themselves to Ethereum.

The filing highlights the challenges faced by investors, including counter-party risk, legal uncertainty, and technical risk, when attempting to access the digital asset through existing methods.

Interestingly, the filing draws attention to the disparity between U.S. and European investors. While European investors enjoy access to products trading on regulated exchanges, offering exposure to a broad range of spot crypto assets, their U.S. counterparts face limitations.

Fidelity argues that the absence of a U.S.-regulated, exchange-traded vehicle for ETH exposure has left retail investors with limited options.

Compelling case made for the benefits of an Ether ETF

The filing resonates with recent developments in Europe, where the Jacobi Bitcoin ETF became the first European spot Bitcoin ETF approved for listing on the Euronext Amsterdam stock exchange on 15th August.

Fidelity’s move suggests a strategic response to the evolving global landscape, emphasizing the need to bridge the gap for U.S. investors.

Furthermore, Fidelity makes a compelling case for the potential benefits of an Ether ETF in mitigating losses for U.S. investors. The filing suggests that had Spot ETH ETF been available earlier, losses incurred from now-defunct firms like FTX, Celsius Network, and BlockFi would have been considerably lower.

This move by Fidelity comes hot on the heels of BlackRock’s filing for the iShares Ethereum Trust, officially submitted to the SEC on 16th November.

Fidelity joins an illustrious list of firms seeking approval for an Ether ETF, including VanEck, 21Shares & ARK, Hashdex, Grayscale, and Invesco & Galaxy.

U.S. SEC delays decision on yet another spot Bitcoin ETF

https://eng.ambcrypto.com/u-s-sec-delays-decision-on-yet-another-spot-bitcoin-etf/

contributor

Posted: November 18, 2023

  • The decision was anticipated, and the SEC’s press release outlined the plan.
  • ETFs have been hot news in the crypto world with major firms like BlackRock interested.

The U.S. Securities and Exchange Commission (SEC) announced a delay in its approval for Global X’s spot Bitcoin [BTC] exchange-traded fund [ETF], listed on the Cboe exchange.

The SEC initiated a comment period for the Global X Bitcoin Trust, a collaboration with the Cboe BZX exchange, extending until late December.

The decision was anticipated, and the SEC’s press release on 17th November outlined the plan, expecting public comments within the next 35 days. This pushed the new deadline for the Global X ETF approval or disapproval to 22nd December.

Bloomberg ETF analyst James Seyffert already hinted at the impending delay on X. Even though the decision was originally scheduled for 21st November, the delay was in line with Seyffert’s predictions.

However, Global X wasn’t the sole player facing a delayed judgment.

The SEC concurrently deferred its decision on the Franklin Bitcoin ETF until the early days of 2024, amplifying the anticipation surrounding crypto-related financial instruments.

Recently BlackRock, the investment management giant, officially placed its bet on Ethereum [ETH], submitting an S-1 application for a spot Ethereum ETF to the SEC on 15th November. This follows BlackRock’s recent Nasdaq filing, revealing ambitious plans for Ethereum.

XRP frenzy after fake ETF news

In a whirlwind of market activity, a deceptive claim regarding BlackRock launching a Ripple [XRP] ETF sparked chaos, resulting in a 12% surge in XRP prices and the liquidation of millions in futures positions.

The commotion initiated with the widespread circulation of an unverified post on the social platform X. It showed a regulatory filing by BlackRock for the iShares XRP Trust. This is typically a precursor to ETF launches. Similar filings preceded the introduction of Bitcoin and Ethereum by the world’s largest asset manager.

However, the exuberance proved short-lived as Bloomberg analyst Eric Balchunas promptly discredited the filing’s accuracy, asserting that it might have been a fraudulent use of BlackRock officials’ identities.

The repercussions extended beyond immediate price fluctuations, impacting XRP derivatives traders. Coinglass reported liquidations exceeding $7 million in the last 24 hours, with a majority—66%—attributed to long positions.

NFT expert GMoney unpacks market trends and innovations

https://eng.ambcrypto.com/nft-expert-gmoney-unpacks-market-trends-and-innovations/

contributor

Posted: November 17, 2023

  • GMoney believes the NFT market is correlated with the overall cryptocurrency landscape.
  • He also discussed the future of NFTs and OpenSea 2.0.

In an interview on the “Unchained ” podcast, host Laura Shin discussed various topics of interest with non-fungible tokens (NFT) expert GMoney.

The NFT market experienced a significant downturn in recent times, with a notable decline in activity and value. This shift was especially in contrast to the booming highs of the 2021 bull market.

NFT market closely linked to crypto’s success?

GMoney attributes the slowdown to a broader correlation with the overall cryptocurrency landscape. The interconnectedness of NFTs with cryptocurrencies, particularly Ethereum [ETH], has led to a scenario where the NFT market’s performance is closely tied to the fortunes of major cryptocurrencies.

The concept of a “wealth effect” in traditional markets, where high stock market values lead to increased spending on luxury items, seems to have a parallel in the NFT space.

When crypto prices are soaring, there is a tendency for NFTs to thrive as a unique and crypto-centric way for individuals to display their wealth.

Conversely, during a market downturn, the priority shifts towards accumulating more traditional cryptocurrencies, diminishing the appeal of NFT investments.

Blockchain integrated NFTs termed the future

One key innovation that GMoney finds intriguing for the NFT space is the integration of real-world assets onto the blockchain. This involves linking physical products to the blockchain using technologies like embedded chips.

Moreover, GMoney pointed out underserved markets that could drive NFT adoption, such as the sneaker reseller market.

To illustrate the process, GMoney outlined a protocol where individuals can send their sneakers to a centralized custodian, which issues an NFT backed by the physical sneaker stored securely in a vault.

Owners can then use this NFT as collateral for loans or even sell it. The fungibility of NFTs across platforms allows for flexibility in leveraging them on various lending platforms.

He outlined the shift towards real-world asset integration as a key development over the next three to five years.

Ethereum still king in NFT domain

The Ethereum network, widely regarded as a liquidity hub, extends its influence beyond NFTs to encompass various facets of decentralized finance (DeFi).

Having a significant portion of his assets on Ethereum, GMoney acknowledges Ethereum’s stronghold in terms of value and interest.

While he concedes limited exposure to Solana [SOL], he notes the recent surge in Solana NFTs’ popularity.

The chatter around Solana NFTs correlates with the remarkable price appreciation of the Solana blockchain, experiencing a notable surge in value over the past 60 days.

However, GMoney emphasizes that Ethereum’s entrenched position as a liquidity center, not just for NFTs but also for diverse DeFi tranches, makes it a formidable force that may be challenging to displace.

Talking about NFT marketplace OpenSea, GMoney suggested that introducing a native token could be a game-changer for it. He said the move could potentially boost sentiment and revitalize trading volumes on the platform.

Stablecoin issuer Tether to enter into Bitcoin mining: Bloomberg

https://eng.ambcrypto.com/stablecoin-issuer-tether-to-enter-into-bitcoin-mining-bloomberg/

contributor

Posted: November 17, 2023

  • Tether aims to construct mining facilities in key locations, including Uruguay, Paraguay, and El Salvador.
  • The stablecoin giant strategically chose the locations for its mining facilities to maximize efficiency.

Tether [USDT] has set its sights on a major expansion into Bitcoin [BTC] mining, targeting an investment of approximately $500 million over the next six months.

Paolo Ardoino, who is set to take the helm at Tether soon, revealed the company’s ambitious plan in an interview with Bloomberg.

The details

The stablecoin giant aims to construct mining facilities in key locations, including Uruguay, Paraguay, and El Salvador. This is in a bid to bolster its computing power to 1% of the Bitcoin mining network.

The stablecoin giant strategically chose the locations for its mining facilities to maximize efficiency and ensure optimal performance.

Ardoino outlined the company’s vision to build mining facilities with a capacity ranging from 40 to 70 megawatts (MW) in the selected countries.

The $500 million investment plan also involved financing the German miner Northern Data Group. Tether previously announced a $610 million debt financing facility for Northern Data Group earlier in the month.

Ardoino shared that the company aimed to reach a computing power of 120 MW by the end of the year.

Looking ahead, Tether has even more ambitious goals. It is planning to achieve a computing power of up to 450 MW by the end of 2025.

The stablecoin firm is also considering adaptability and flexibility in its mining operations. It was exploring the option of setting up facilities inside containers that could be relocated based on electricity price fluctuations.

Miners rush to book profits before next halving

In the wake of Bitcoin’s recent surge, miners have seized the opportunity to capitalize on the rally, racing against time before the upcoming “halving” event in April 2024.

Despite the surge in mining activity, the profitability of mining, an energy-intensive process, still lags behind its peak in 2021. Earnings per unit of computing power have increased from $70 to over $81 since the beginning of November.

However, this remains below the peak of $127 observed in May, according to mining data platform Hashrate Index.

The previous two halvings in 2012 and 2016 were followed by substantial price rallies in Bitcoin, providing an impetus for miners to navigate the upcoming reduction in rewards.

New York regulator issues rules to strengthen crypto listing

https://eng.ambcrypto.com/new-york-regulator-issues-rules-to-strengthen-crypto-listing/

  • The new regulations compel crypto companies to submit their coin listing and delisting policies for approval.
  • The guidelines apply to all licensed digital currency business entities in New York.

The New York State Department of Financial Services (NYDFS) has introduced stricter guidelines for cryptocurrency listing and delisting.

On 15th November, the NYDFS unveiled regulations compelling crypto companies in New York to submit their coin listing and delisting policies for approval.

These policies will undergo scrutiny against more robust risk assessment standards. They will also cover technological, operational, cybersecurity, market, liquidity, and illicit activity risks.

The tightened guidelines apply to all licensed digital currency business entities in New York. Firms licensed under the state’s Banking Law or the New York Codes, Rules, and Regulation will be subject to the new regulations.

Notable entities affected include stablecoin issuer Circle, crypto exchange Gemini, fund manager Fidelity, trading platform Robinhood, and payments giant PayPal.

New rules aimed to facilitate “innovative and data-driven approach”

Under the new rules, cryptocurrency firms with previously approved coin listing policies cannot self-certify tokens without obtaining NYDFS approval.

The NYDFS emphasizes aligning coin listing and delisting policies with its standards for a more secure crypto environment.

The financial regulator initiated the proposal in September, seeking public feedback before finalizing the guidelines.

Superintendent of Financial Services Adrienne A. Harris clarified that the updated rules are not indicative of a statewide crackdown on the cryptocurrency industry.

Instead, the NYDFS aims to implement an “innovative and data-driven approach” to oversee coin listings, delistings, and the broader cryptocurrency market.

Affected firms are required to meet with the NYDFS by 8th December 2023 to present their draft coin listing and delisting policies.

The finalized policies must be submitted by 31 January 2024 for regulatory review.

In February, the NYDFS expanded its capabilities to identify illicit activities in the cryptocurrency space. It also addressed concerns such as insider trading and market manipulation.

New York maintains significant blockchain presence

New York remains a significant hub for blockchain-based companies, hosting about 690 such entities. Crypto firms have been in the government’s crosshairs for quite some time now.

In February, the NYDFS ordered Paxos to stop issuing Binance USD [BUSD], a popular stablecoin that is affiliated with Binance [BNB].

Paxos also received a notice from the SEC saying that the agency was considering recommending an action alleging that BUSD is an unregistered security.

Irrespective of the regulatory fog, the public seem interested in crypto. An August report by Coinbase highlighted various milestones New York had reached with crypto adoption.

It revealed that 19% of New Yorkers own cryptocurrency. Additionally, one in three New Yorkers agreed that crypto makes the financial system fairer. They also described it as a “worthwhile investment for the future.”

Over 800 founders of blockchain organizations are based in New York state.

Singapore initiates tokenization pilots: What does it entail?

https://eng.ambcrypto.com/singapore-initiates-tokenization-pilots-what-does-it-entail/

contributor

Posted: November 16, 2023

  • A recent report estimated the market value of tokenized assets to be $3.5-$10 trillion by 2030.
  • Japan, the United Kingdom, and Switzerland are also part of the project.

The Monetary Authority of Singapore (MAS) announced that it is initiating tests around tokenization use cases. The bank is partnering with major financial services firms, including BNY Mellon, DBS, J.P. Morgan, and MUFG.

The tests will explore bilateral digital asset trades, cross-border currency payments, multi-currency clearing and settlement, fund records management, and automated portfolio customization.

The MAS will apparently build an open, digital infrastructure called Global Layer One (GL1). It will host tokenized financial assets and applications.

It is also working to develop an Interlinked Network Model (INM) to serve as a common framework for exchanging virtual assets across independent networks.

The asset tokenization enterprise is a part of Project Guardian, which also includes Japan, the United Kingdom, and Switzerland.

In addition to Japan’s Financial Services Agency (FSA), the U.K.’s Financial Conduct Authority (FCA), the Swiss Financial Market Supervisory Authority (FINMA), and Singapore’s MAS. The International Monetary Fund (IMF) is also a part of the policymaker group behind the project.

Tokenized assets to reach $3.5-$10 trillion by 2030

Last month, 21.co—the company behind investment group 21Shares—released a report on the state of tokenization. It estimated the total value of tokenized assets across public blockchains to be $118.57 billion.

Ethereum [ETH] accounted for over 58.33%, or $69.16 billion of all tokenized assets, followed by Tron [TRX] supporting tokens worth $45.76 billion or 38.59% of total assets.

So far, a total of seven asset classes have been tokenized such as U.S. treasuries, real estate, corporate bonds, etc. Stablecoins pegged to the U.S. dollar accounted for ~97% of all tokenized assets, the report mentioned.

As of now, there are roughly 47 million holders of tokenized assets. They accounted for only 10% of the estimated 431 million crypto owners.

The report estimated that the market value for tokenized assets will be between $3.5 trillion and $10 trillion by 2030.

Binance expands horizons, sets sights on Thailand

https://ambcrypto.com/binance-expands-horizons-sets-sights-on-thailand/

contributor

Posted: November 16, 2023

  • The initiative, named Gulf Binance, has secured approval from Thailand’s SEC.
  • Binance has been battling regulatory challenges particularly in the US and Europe.

Binance [BNB] is gearing up to make its mark in Thailand through a strategic joint venture with Gulf Innova, a unit of Gulf Energy Development.

The collaborative effort, named Gulf Binance, has secured approval from Thailand’s Securities and Exchange Commission (SEC).

The formal announcement, disclosed on the 15th of November, revealed that Gulf Binance, born out of Binance’s partnership with Gulf Innova, successfully obtained licenses from Thailand’s Ministry of Finance back in May.

These licenses position Gulf Binance as a regulated digital asset operator under the jurisdiction of the SEC. The recent approval, as outlined in the filing, serves as the green light for the imminent launch of the crypto exchange.

The company’s filing stated,

“Gulf Binance’s digital asset platform will provide digital asset exchange and digital asset broker services for both cryptocurrencies and digital tokens, prioritizing security and compliance with SEC regulations.”

Global expansion amid regulatory challenges

Binance has been battling regulatory challenges around the globe since the dramatic collapse of various crypto firms in 2022. The U.S. SEC filed 13 charges against Binance, its various affiliates and founder Changpeng “CZ” Zhao with a plethora of law violations.

CZ reportedly considered shutting down Binance’s U.S. unit in a bid to save the wider company.

Moreover, the world’s largest crypto exchange has been pulling out of various European countries in anticipation of the European Union’s new Markets in Crypto Assets (MiCA) regulation dropping in next year.

CZ has hailed the clear rules brought in by MiCA. However, regulatory pressure has already forced the exchange to flee many European jurisdictions, including the Netherlands, Cyprus, and Germany.

This has forced Binance, along with many other crypto exchanges and businesses, to seek asylum elsewhere.

In a recent interview, Alex Chehade, the General Manager of Binance Dubai, remarked the United Arab Emirates (UAE) could become the primary destination for cryptocurrency businesses seeking favorable and transparent regulations.

Regulatory pressure could also be deemed a catalyst for Binance to favor expansion in South East Asia.

Blockchain Association opposes proposed IRS tax rules

https://ambcrypto.com/blockchain-association-opposes-proposed-irs-tax-rules/

contributor

Posted: November 15, 2023

  • The IRS introduced rules aimed at regulating the sale and exchange of digital assets by brokers.
  • There has been widespread discussion about the future of crypto taxation in the country.

The Blockchain Association, a U.S.-based cryptocurrency advocacy group, strongly opposed proposed tax regulations by the Internal Revenue Service (IRS) in a comment letter submitted on the 13th of November.

The U.S. Treasury Department had introduced rules aimed at regulating the sale and exchange of digital assets by brokers. However, the Blockchain Association argued that these rules exceeded the IRS’s authority, citing:

“Fundamental misunderstandings about the nature of digital assets and decentralized technology.”

The proposed regulations by the Treasury Department were released in August. They addressed challenges in reporting and paying taxes on cryptocurrency transactions.

The Blockchain Association criticized the proposal. They asserted that many participants in the crypto space, particularly in decentralized finance (DeFi), would face significant difficulties in complying with the regulations.

The group argued that the proposed regulations represented an overreach by the Treasury, potentially violating constitutional rights to privacy and freedom of expression.

Concerns on Decentralized technology and privacy rights cited

Kristin Smith, the CEO of the Blockchain Association, emphasized the need for the Treasury Department to take additional time to comprehend the potential damage and impracticality of the expanded broker definition on developers of decentralized technology in the U.S.

She stated,

“Not only that, but Treasury’s proposal constitutes an infringement on the privacy rights of individuals using decentralized technology.”

Since the release of the draft regulations in August, there has been widespread discussion among U.S. lawmakers, industry leaders, and legal experts about the potential implications for the future of crypto taxation in the country.

According to the current draft, the proposed rules on reporting crypto transactions could take effect in 2026 for transactions conducted in 2025.

In October, Coinbase’s chief legal officer, Paul Grewal, expressed concerns that the rules could:

“Threaten to harm a nascent industry when it’s just getting started.”

Despite opposition, a group of U.S. senators supported the measure as written, urging the enforcement of the regulations before 2026.

Moreover, recently, Mart Uyeda, a Commissioner at the U.S. Securities and Exchange Commission (SEC), emphasized the importance of clarity and transparency in regulatory enforcement actions.

Can CBDCs be a good alternative to cash?

https://eng.ambcrypto.com/can-cbdcs-be-a-good-alternative-to-cash/

  • The Managing Director of the IMF stated that CBDCs could effectively replace cash.
  • 130 countries are exploring the concept of CBDC.

In a recent speech at the Singapore FinTech Festival on the 15th of November, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed her perspective on the role of Central Bank Digital Currencies [CBDCs] in economies.

Some institutions, such as the European Central Bank (ECB), have maintained that CBDCs won’t replace physical cash. However, Georgieva’s remarks suggest a more nuanced perspective, indicating that such a transition could be beneficial for certain economies.

CBDCs advocated for cash evolution and financial inclusion

During her speech, Georgieva emphasized the cost-effectiveness of CBDCs in island economies, where distributing physical cash is a cumbersome process. She pointed out that CBDCs could also contribute to the resilience of more advanced economies.

Additionally, Georgieva underscored the potential for CBDCs to improve financial inclusion. This is especially true in regions where a significant portion of the population lacks access to traditional banking services.

Despite acknowledging the current uncertainty surrounding CBDC applications and the relatively low adoption rates, Georgieva encouraged innovation in this space. She emphasized that it is not the time to step back.

Moreover, she urged the public sector to continue preparations for deploying CBDCs and related payment platforms in the future.

Georgieva further advocated for designing these platforms with a focus on facilitating cross-border payments. Currently deemed expensive, slow, and accessible to only a few, cross-border transactions could significantly benefit from the integration of CBDCs.

While the Bank for International Settlements (BIS) and other financial institutions have called for countries to establish relevant legislation supporting CBDCs, major jurisdictions have yet to make definitive decisions on their issuance.

Georgieva echoed the recent comments by BIS Chief Agustin Carstens, asserting that CBDCs will play a central role in financial innovation. The private sector is expected to contribute significantly to their market presence.

In her closing remarks, Georgieva suggested that country authorities interested in introducing CBDCs should adopt an entrepreneurial mindset.

She stressed the importance of effective communication strategies and incentives for distribution, integration, and adoption, emphasizing their equal significance alongside the design considerations.

Government-issued stablecoins inch closer to reality

A significant global shift toward CBDCs is underway, with 130 countries, representing 98% of the global GDP, exploring the concept. This marked a substantial increase from May 2020 when only 35 countries were considering CBDCs.

Currently, 64 nations are in advanced stages of exploration, including development, pilot phases, or even CBDC launches. Among the G20 nations, 19 are now in the advanced stages of CBDC development, with 9 already in the pilot phase.

While the progress on retail CBDC in the United States has stalled, other G7 banks such as the Bank of England and the Bank of Japan are actively developing CBDC prototypes.

The European Central Bank is gearing up for a digital euro-pilot, and more than 20 other countries plan to take steps towards piloting their CBDCs in 2023.

Countries like Australia, Thailand, and Russia are committed to continuing their pilot testing, while India and Brazil are aiming for CBDC launches in 2024.

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French national pleads guilty to knock-off MAYC NFT fraud

https://eng.ambcrypto.com/french-national-pleads-guilty-to-knock-off-mayc-nft-fraud/

  • Aurelien Michel has pleaded guilty to defrauding investors.
  • He has agreed to pay $1.4 million in restitution.

The creator of the Mutant Ape Planet non-fungible token (NFT) collection, Aurelien Michel, a French national, has pleaded guilty to conspiracy to commit wire fraud in a New York federal court.

The Mutant Ape Planet NFTs were a knock-off of Yuga Labs’ Mutant Ape Yacht Club (MAYC) project.

The U.S. Attorney’s Office for the Eastern District of New York announced on 14th November that Michel had confessed to orchestrating a “rug pull.”

This resulted in the defrauding of investors to the tune of $3 million linked to the fraudulent Mutant Ape Planet NFTs.

Artificial demand and rug pull touted as charges

The Department of Justice (DOJ) prosecutors revealed that Michel and his co-conspirators falsely marketed the NFTs to investors by promising rewards and benefits. They created artificial demand for the collection.

In a deceptive move, they intentionally failed to deliver on these promises, diverting millions of dollars for their personal benefit.

Thomas M. Fattorusso, the special agent in charge of IRS criminal investigation in New York, emphasized the egregious nature of the scheme. He stated,

“While Michel purported to sell dream NFTs backed with rewards and benefits, he defrauded investors, turning their dream into a nightmare of deception and losses.”

The DOJ disclosed on 5th January that Michel had admitted his involvement in a rug pull via a social media chat with the NFT collection’s community.

He confessed that “we never intended to rug but the community went way too toxic.”

Facing a potential maximum sentence of five years in prison, Michel has agreed to pay $1.4 million in restitution.

The Mutant Ape Planet collection initially comprised 6,797 NFTs minted on the Ethereum [ETH] blockchain. It was once hosted on the NFT platform OpenSea.

In February 2022, the collection witnessed robust sales volume, exceeding 320 Ether. However, by April 2022, this figure had significantly dropped.

By January 2023, around the time of Michel’s arrest, the average price and total sales volume of the collection plummeted to near zero.

Source: OpenSea

NFTs gradually bounce back. Resurgence soon?

Meanwhile, the Mutant Ape Yacht Club volume and price has been gradually picking up over the past 3 months. The Floor price has also slightly increased, with the sales from other NFT collections rising recently.

Additionally, the Crypto Punks NFT collection experienced a remarkable surge in trading volume. It has skyrocketed from $200,000 to an impressive $3 million within the last seven days.

The surge was so impactful that Crypto Punks became the top-selling collection on the Ethereum blockchain, with sales reaching an astounding $20.26 million in the same seven-day period, marking a staggering 924% increase compared to the previous week.

Past 90 days Mutant Ape Volume & price and Floor price. Source: Opensea

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Crypto.com finds solace in Dubai amid regulatory clampdown in U.S.

https://eng.ambcrypto.com/crypto-com-finds-solace-in-dubai-amid-regulatory-clampdown-in-u-s/

  • The crypto exchange referred to its Dubai office as its regional hub in the Middle East region.
  • It received an MPI license from the MAS in June.

Crypto.com has obtained a Virtual Assets Service Provider license in Dubai.

Virtual Assets Regulatory Authority (VARA), the crypto regulator of Dubai, granted the license to CRO DAX Middle East FZE, the Dubai entity of Crypto.com.

The exchange can now offer broker-dealer, lending and borrowing services once the authority grants operational approval.

Crypto.com CEO Kris Marszalek said,

“We are excited to showcase more of our industry-leading products to customers across permissible jurisdictions from Dubai, and look forward to working with regulators contributing to this thriving ecosystem.”

Crypto.com received a minimal viable product (MVP) license in March. The exchange referred to its Dubai office as its regional hub in the Middle East region.

The exchange also received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) in June.

The UAE and Singapore emerge as crypto hubs

Combative actions of regulatory bodies in the U.S. have compelled crypto entities to look elsewhere for expansion. The U.S. doesn’t seem keen to issue crypto-specific regulations as it thinks existing securities laws are sufficient to regulate crypto.

Meanwhile, Dubai and Abu Dhabi, two prominent emirates in the United Arab Emirates (UAE), have established crypto regulators in their jurisdictions in the last few years.

Singapore legislated the Payment Services Act (PSA) in January 2020 to oversee both traditional and cryptocurrency exchanges. The island nation refers to cryptocurrencies as digital payments tokens (DPTs).

Regulation in both these countries is still evolving but at least, it’s crypto-specific. Unlike the U.S., regulatory bodies in these jurisdictions recognize crypto assets as a separate asset class.

As per a recent Chainalysis report, institutional investments constituted more than 67% of crypto transactions in the UAE between July 2022 and June 2023. The total value of crypto assets received by the UAE during this period amounted to almost $35 billion.

Meanwhile, Henley & Partners put Singapore on the top spot in its Crypto Adoption Index, followed by Switzerland and the UAE. Both countries top the list in tax-friendliness and public adoption.

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From ‘Bitcoin for criminals’ to ‘flight to quality’ – SEC’s changing stance

https://eng.ambcrypto.com/from-bitcoin-for-criminals-to-flight-to-quality-secs-changing-stance/

  • Galaxy’s Alex Thorn underlined that Bitcoin ETFs’ $14 million prediction was a “conservative estimate.”
  • In contrast, J.P. Morgan cautioned against too much optimism around the crypto rally.

“During the bear market between 2013 and ‘17 it was like “Bitcoin is for criminals,” now the largest asset manager on earth says it’s part of a ‘flight to quality’ trade; it’s truly remarkable.”

This sentiment was well articulated by Galaxy’s Head of Firmwide Research, Alex Thorn, who made these remarks during a conversation with Peter McCormack on the latter’s podcast, “What Bitcoin Did.”

Regarding the recent bull run, the Galaxy Research head said that the anticipation around spot Bitcoin [BTC] exchange-traded funds (ETFs) should also apply to the Grayscale ruling in August.

Thorn also highlighted how the Securities and Exchange Commission (SEC) had been reluctant to comment on the S1 process. With the applicants submitting amendments to their S1 applications, the anticipation around ETF approval grew.

However, the concerns of the SEC that these amendments addressed were “benign.” They included additional risk disclosures, lack of corporate governance behind open-source software, and risks of illicit activities.

None of these concerns were particularly grave. So, it is difficult to understand why the SEC didn’t comment on them earlier.

Nonetheless, it is a positive development.

Thorn took as the changing behavior of the SEC towards crypto, echoing a view shared earlier by ARK Invest CEO Cathie Wood. She had also said that the agency would approve multiple spot Bitcoin ETF applications at once.

There is a general understanding in the market that this is indeed true of the SEC.

J.P. Morgan cautions against over-enthusiasm

J.P. Morgan analysts released a report last week, claiming that the “crypto rally looks overdone.” The analysts listed down their reasons for the findings.

Firstly, capital can merely shift from existing Bitcoin products such as the futures ETFs and public Bitcoin mining companies into spot ETFs. Besides, existing spot Bitcoin ETFs in Canada and Europe have garnered little interest from investors since their launch.

Secondly, the recent legal victories for Grayscale and Ripple [XRP] don’t necessarily translate into the easing of crypto regulations in the U.S.

Thirdly, the investors have likely overestimated the optimism around the Bitcoin halving.

The institutionalization post the union of TradFi and DeFi violates the underlying principles of cryptocurrency, such as decentralization and trustlessness. But it could lead to a wider participation in crypto and possibly a bull run, Thorn said. He added,

“It’s very reasonable for Bitcoiners to be suspicious of the institutionalization of Bitcoin.”

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