Crypto Scoop: Stakeholders Share Price Predictions Amid Price Gains

This week, amid price gains, we recorded crypto adoption growth, NFT initiative and much more. In this edition of the Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• Wikipedia Co-founder Bitcoin debate
• Crypto hack of Legder Connect Library
• Crypto growth in Nigeria and El Salvador
• FIFA’s NFT Launch

Price Moves of Top Cryptocurrencies

Cryptocurrency markets witnessed a historic surge as Bitcoin soared to $44,000 and Ethereum to $2,300. Binance Research reported a remarkable 110% year-to-date increase in the total cryptocurrency market capitalisation, adding over $870 billion in capital, with Q4 alone contributing a significant 55% surge. Crypto slate reports that Bitcoin is now 77% less sensitive to liquidations than in 202, signalling market maturity. 

Goldman Sachs is gearing up for a substantial increase in trading blockchain-based assets within the next one to two years, marking a pivotal evolution in digital asset markets. Matthew McDermott, the bank's global head of digital assets anticipating the future, predicts blockchain-based trading volumes will rise in 1-2 years, with major market development expected in 3-5 years. 

In agreement with Goldman Sachs, Bitwise believes that crypto is on the verge of entering its "mainstream era" in 2024. They outlined ten predictions for the upcoming year, including Bitcoin hitting an all-time high above $80,000, potential spot Bitcoin ETF approvals, and Taylor Swift launching NFTs.

Cardano's ADA has experienced an impressive surge, appreciating over 120% since October 20. As it reaches new all-time highs in December, Cardano's DeFi ecosystem is thriving. The total value locked (TVL) in Cardano surpassed $370 million, marking a remarkable 520% growth since the beginning of the year. This growth is attributed to increased decentralised exchange (DEX) activities, network developments, and growing investor confidence, placing Cardano in the top 10 TVL records for the first time in 21 months.

In a bold move on December 14, the former CEO of BitMEX, Arthur Hayes, asserted that investors have "no excuse" to short crypto. Through a post on Twitter, Hayes repeated his $1-million Bitcoin price bet, emphasising the ongoing potential for a substantial Bitcoin surge by 2024, labelling it a "great pivot" in market dynamics.

Howard Lutnick, CEO of Wall Street firm Cantor Fitzgerald, expressed his admiration for the Tether (USDT) stablecoin issuer, describing himself as a "big fan" of the company.

Wikipedia Co-founder Mocks Bitcoin, Ignites Crypto Community Backlash

In a surprising turn of events, Wikipedia co-founder Jimmy Wales stirred up a storm on X (formerly Twitter) by taking a sarcastic jab at Bitcoin on December 11. Wales bragged about never losing money due to a forgotten bank password, contrasting it with the plight of Bitcoin users who have lost funds due to misplaced wallet passwords. 

The crypto community swiftly fired back, reminding Wales of Wikipedia's reliance on donations for its operations and highlighting the limited access to banking services for a substantial portion of the global population.  Alex Gladstein, chief strategy officer at the Human Rights Foundation group, reminded Wales that banks work decently in countries with the rule of law and strong currencies. He noted that only about a billion people out of the world’s population of eight billion have access to banking services.

Meanwhile, in another twist, Galaxy Digital founder and CEO Mike Novogratz publicly admitted that he was "dead wrong" in his past perception of XRP and Ripple. Novogratz now acknowledges Ripple as an institution and recognises the XRP army as a "real" organisation genuinely invested in the coin's ecosystem. 

Crypto Hacker Hacks Ledger Connect Library and Steals $484,000

In a daring move, a hacker infiltrated Ledger's connector library, snatching nearly $484,000 in assets, as reported by Lookonchain. While Ledger is yet to confirm the figures, the breach's potential impact is substantial. The breach affected multiple DApps, including Zapper, SushiSwap, Phantom, Balancer, and Revoke.cash, raising concerns about similar vulnerabilities in programs like LedgerHQ/connect-kit.

Caught in the crossfire, MetaMask swiftly acted, deploying a fix for its platform. Users on the latest version were assured of secure transactions, while others were urged to refresh site data promptly.

In a proactive move, Tether froze the hacker's address to halt unauthorised transactions and protect affected users' assets.

Crypto Adoption Booms in Nigeria, Latin America and El Salvador

Coin Journal's analysis reveals a crypto surge in Nigeria, with 47% actively engaged in the crypto space. Seen as an alternative to traditional finance, crypto ownership in the country has grown by 15% from 2020 to 2023, showcasing a significant shift in financial preferences.

A report from Circle highlights that more than half of consumers in Latin America have engaged in transactions involving crypto assets, contributing to a staggering $7 trillion in global stablecoin settlements last year. This is about half the $14 trillion settled by financial powerhouses Visa and Mastercard.

El Salvador's bitcoin bonds, known as the "Volcano Bond," have received regulatory approval for an early 2024 issuance in a groundbreaking move. The bonds are set to be offered on Bitfinex Securities, marking a significant step for the country's crypto-focused initiatives. President Nayib Bukele confirmed the approval on X (formerly Twitter), anticipating the issuance in Q1 2024.

Simultaneously, El Salvador's National Bitcoin Office is experiencing high demand for its "Freedom Visa" program, a citizenship-by-donation initiative in partnership with Tether. Launched on Dec. 7, the program, requiring a $1 million Bitcoin or Tether donation, has already received "many dozens of applications" and is expected to sell out before the year-end, showcasing strong interest in the intersection of crypto and citizenship.

Google Updates Its Policies And FIFA Announces An NFT

In an exhilarating move for soccer and crypto enthusiasts alike, FIFA is set to launch a groundbreaking series of NFT collectables in collaboration with crypto startup Modex. The release will coincide with the FIFA Club World Cup Saudi Arabia 2023, marking the first set of collectables under Modex's strategic management of FIFA's digital collectables platform, FIFA+ Collect.

FIFA+ Collect will introduce 1,000 NFTs centred around the FIFA Club World Cup, with the initial 100 dropping on Algorand and hitting the market on December 15. These rare collectables hold a special allure, offering lucky owners the chance to secure tickets for the 2026 FIFA World Cup Final – a once-in-a-lifetime opportunity for passionate football fans.

In another significant development, Google is set to revamp its cryptocurrency-related advertising policy on January 29, 2024. The update will greenlight ads for U.S.-based crypto trusts, aligning with the anticipated approval of spot Bitcoin ETFs in the same month. This policy shift opens the door for advertisers offering "Cryptocurrency Coin Trust targeting the United States," including those dealing with ETFs.

FTX Faces $24 Billion Tax Dilemma: Setback for Crypto Victims' Recovery

In a courtroom clash with the IRS, FTX, the now bankrupt crypto exchange, contends with a proposed $24 billion tax bill that threatens to absorb any "meaningful recovery" intended for victims. The U.S. tax authority has been on the pursuit since May, initially claiming $44 billion across 45 separate claims but later revising it down to $24 billion. 

FTX, now bankrupt, argues that the IRS claims lack merit and could hinder compensation for affected users. As legal battles unfold, the fate of the exchange and the restitution meant for users hangs in the balance. The judgement from the courtroom showdown on December 12 promises to be pivotal in this high-stakes financial drama.