Crypto Scoop: BTC Soars to $52,800 and ETH Hits $3,000

This week, amid price gains of top cryptocurrencies, we see regulatory shifts across the world. In this edition of the Crypto Scoop, we review the following:

• Price moves and predictions for top cryptocurrencies
• Circle’s operations on Tron
• Stellar’s recent launch of smart contracts
• Global cryptocurrency regulatory shifts
• Former Terra founder’s extradition to the US

Price Moves and Predictions For Top Cryptocurrencies

On February 20, Bitcoin's price soared to an impressive $52,800, marking a new high for 2024. Simultaneously, Ethereum shattered a 22-month record by crossing the $3,000 threshold amid optimistic market speculations. 

Renowned financial educator and "Rich Dad Poor Dad" author Robert Kiyosaki anticipates Bitcoin's price will soar to $100,000 by June 2024. Kiyosaki, who recently increased his Bitcoin holdings, attributes this projection to the approval of spot Bitcoin exchange-traded funds (ETFs) and the forthcoming Bitcoin halving. President of the ETF Store, Nate Geraci, emphasises the significance of 2024 for Bitcoin ETFs, noting that BlackRock IBIT and Fidelity FBTC were among the top 8 in ETF inflows. This accomplishment stands out in the diverse ETF landscape, indicating growing institutional interest in Bitcoin. Crystal Intelligence CEO Navin Gupta also anticipates a crypto boom with the adoption of Bitcoin ETFs, emphasising their potential to foster institutional trust and crypto-friendly regulations.

Brad Garlinghouse, CEO of Ripple Labs, expressed openness to a spot exchange-traded fund (ETF) for XRP. He believes that the launch of multiple ETFs for different tokens is inevitable. Drawing parallels with the early stock market days, Garlinghouse emphasises the need for investors to diversify their portfolios, predicting the launch of various funds in the crypto ETF space. 

Meanwhile, MicroStrategy's executive chair, Michael Saylor, declares an unwavering commitment to Bitcoin, asserting that the cryptocurrency is superior to gold and real estate. Despite MicroStrategy's substantial unrealised profit of nearly $4 billion, Saylor expresses no intention to sell Bitcoin, deeming it the ultimate exit strategy. He said, “Bitcoin is technically superior to those asset classes. And that being the case, there’s just no reason to sell the winner to buy the losers.” 

Circle Halts USDC Support on TRON Network While Tether Responds to Allegations

Circle, the company behind the second-largest stablecoin, has announced the cessation of USDC minting on the TRON network, citing concerns related to its risk management framework. While new USDC minting on TRON stops immediately, support for the stablecoin will persist until February 2025, giving users a one-year window to transition their tokens to other networks or convert them to regular USD.

Tether refrained from confirming or denying its continued support for TRON, emphasising that Tether tokens exist on multiple blockchains and decisions are based on safety and compliance. Tether asserts the ability to freeze transactions on supported blockchains to meet compliance obligations while actively monitoring safety standards for its customer’s protection. 

However, tensions escalated between the stablecoin issuers as Caroline Hill, Senior Director of Global Policy and Regulatory Strategy at Circle, accused Tether of involvement in terror financing during a House Financial Services Committee hearing. Tether's CEO, Paolo Ardoino, denounced the allegations as a "shocking act of desperation," claiming that Tether actively collaborates with law enforcement agencies to combat illicit activities.

In providing clarification on the accusation, JPMorgan analysts asserted that American regulatory bodies, particularly the Office of Foreign Assets Control (OFAC), have substantial control over Tether's offshore usage. The analysts cited the OFAC's sanctions on Tornado Cash as an example, noting that Tether complies with Treasury OFAC sanctions and collaborates with law enforcement across jurisdictions.

Stellar Enters New Era with Smart Contracts Launch Following Successful Protocol Upgrade

In a significant milestone for the Stellar network, the Stellar Development Foundation (SDF) has officially introduced smart contracts after 16 months of testing on the testnet. This deployment, facilitated by the successful implementation of the "Protocol 20" upgrade, marks the initiation of a transformative phase for the Stellar tech stack.

On February 20, the SDF announced the completion of the upgrade by Stellar network validators, paving the way for the phased rollout of the smart contract platform named Soroban. The foundation envisions that the introduction of smart contracts will usher in a new era, enhancing the capabilities and functionalities of the Stellar network.

Stellar's smart contracts are designed to offer a more user-friendly experience for developers utilising Rust and WebAssembly languages. This strategic move aligns with the foundation's commitment to fostering accessibility and ease of use within its ecosystem, attracting a broader developer community.

Global Cryptocurrency Landscape Faces Dynamic Shifts

In a surprising turn, Bitcoin seems to be taking a backseat in the African crypto adoption scene, with U.S. dollar-backed stablecoins, particularly USDT, gaining prominence. Notable figures, including crypto advocate Russell Okung, highlighted this shift, pointing out a growing preference for stablecoins over Bitcoin among African users. Financially cautious individuals in African regions are finding comfort in the stability of the USD, even in synthetic forms, and this was also observed in Lebanon and Argentina as well.

While Africa witnesses a shift in crypto preferences, South Africa is making strides to integrate digital payments and crypto into its financial infrastructure. The 2024 budget outlines plans to enhance digital payment access in townships and rural areas, promoting financial inclusivity through collaborations between public and private sectors.

On the global stage, the United Kingdom is gearing up to introduce regulations for stablecoins and crypto-staking services within the next six months. Economic Secretary to the Treasury, Bim Afolami, expressed the government's commitment to expedite the legislative process during an industry event in London as it responds to mounting pressure.

However, the crypto landscape in Nigeria is facing challenges as a presidential adviser called for a ban on platforms like Binance and KuCoin. Bayo Onanuga accused these platforms of manipulating the national currency, urging swift action from regulatory bodies. Binance responded by setting a price cap on Tether tokens on its peer-to-peer platform, aiming to align with local regulations and maintain compliance.

Former Terraform Labs CEO to Face US Extradition Amid Terra Collapse Charges

In a significant development, Kwon Do-hyung, the former CEO of Terraform Labs, is set to be extradited to the United States, as ruled by Montenegro's Podgorica High Court. Kwon, who has been in custody since his arrest in March 2023 for using falsified travel documents, is facing charges linked to the collapse of Terraform Labs and its cryptocurrency projects in May 2022. Despite an appeal by Kwon's legal team to redirect the extradition to South Korea, the court's decision on February 21 paved the way for his trial in the United States.

The U.S. Department of Justice has levied eight criminal charges against Kwon, and the U.S. Securities and Exchange Commission (SEC) has a civil case against both him and Terra. The trial is scheduled for March 25, marking a crucial juncture in the legal proceedings surrounding the collapse of Terraform Labs.

This extradition decision sets the stage for Kwon to face the allegations in an American courtroom, shedding light on the complexities and legal consequences surrounding the collapse of Terraform Labs.