The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Tuesday! Here's what you need to know today in crypto: |
- BRC-20 tokens skyrocket.
- Celsius seeks to mingle its U.K. and U.S. entities.
- Justin Sun is going to reverse a $56 million Binance transfer after the exchange's CEO warned against a potential SUI token grab.
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CoinDesk Market Index (CMI): 1,234 −1.5%
Bitcoin (BTC): $28,061 −1.7%
Ether (ETC): $1,833 −0.8%
S&P 500 futures: 4,182.00 −0.1%
FTSE 100: 7,874.86 +0.1%
Treasury Yield 10 Years: 3.57% +0.1
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Interest in "Bitcoin Request for Comment" or BRC-20 tokens built with Ordinals and stored on the Bitcoin base chain has skyrocketed, lifting their market value by several hundred percent. As of writing, the combined market cap of more than 8,800 BRC-20 tokens was $137 million, a staggering 682% rise from $17.5 million seen a week ago, according to data tracked by Ordspace. A pseudonymous on-chain analyst named Domo created the BRC-20 token standard in early March to facilitate the issue and transfer of fungible tokens on the Bitcoin blockchain. The experimental invention came weeks after Ordinals Protocol went live, allowing users to inscribe digital art references into small transactions on the Bitcoin blockchain.The BRC-20 standard sounds like the popular ERC-20 standard, but the two are different, with the former lacking the ability to interact with smart contracts. |
Crypto lender Celsius is seeking to mingle its U.K. and U.S. entities as court filings allege the distinction between the two was a "sham." The bankrupt crypto firm is the latest to face allegations of poor record-keeping in its corporate structure, in a court fight which is pitting its customers against Series B investors. In 2021, the firm – whose Celsius Network Limited arm had been warned to cease U.K. operations by that country's Financial Conduct Authority (FCA) – set up a limited liability company (LLC) in Delaware and sought to transfer assets through a series of financial transactions. Tron founder Justin Sun on Monday said that he has arranged a full refund of a $56 million transfer to exchange platform Binance after a warning from the latter's CEO against a potential token grab of the new SUI token. After the substantial transfer made in trueUSD (TUSD) got flagged by Whale Alert early Monday, Binance CEO Changpeng Zhao took to Twitter to say his platform has warned Sun it will take action if he used any of the funds to buy up large amounts of SUI tokens from Binance's Launchpool. "Binance LaunchPool are meant as air drops for our retail users, not just for a few whales," Zhao said. The SUI token drop, the native token of layer1 blockchain Sui, is set to take place once the mainnet goes live on May 3. On Sunday, Binance announced the SUI token will be available via its Launchpool, which allows users to stake their crypto assets to provide funds into a liquidity pool and get rewards in return. |
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Market Insight: Bitcoin's Decline Becomes Eventful
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Bitcoin's decline on Monday is in contrast to the asset's lack of movement over the past six weeks. Bitcoin recently fell nearly 4% over the past 24 hours to trade just above $28,000, but spent a good portion of the day below that level. The decline follows lower prices in two of the last three trading days. But prior to these drops, starting in mid March, BTC price fluctuations have been more uneventful. Indeed, BTC is nearly unchanged since March 20 when it was changing hands at $28,270. The weekly Relative Strength (RSI) Index for BTC actually declined by 8% over the same period, giving birth to competing interpretations of that development. The first is that momentum is diverging from price, a traditionally bearish event for prices. |
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| - The chart shows the net inflow of ether into centralized exchanges going back to November.
- On Monday, exchanges registered a net inflow of more than 285,000 ETH, the biggest single-day tally since Dec. 9.
- Exchange inflows are often equated with investor intention to sell or use coins as a margin in derivatives trading.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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BRC-20 Tokens Skyrocket