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PLUS: CZ Gets 4
Todayās edition is brought to you by RAREMINTS
GM to all 64,612 of you. Crypto Nutshell #312 keepinā it calm... š§ š„
Weāre the crypto newsletter thatās more intriguing than a billionaire vigilante protecting Gotham City from crime... š¦š
What weāve cooked up for you todayā¦
šØāāļø CZ sentenced
š¦ How an ETF works
š¤ Is Bitcoin still profitable?
š° And moreā¦
MARKET WATCH āļø
Prices as at 7:05am
Only the top 20 coins measured by market cap feature in this section
CZ SENTENCED šØāāļø
BREAKING: Ex-Binance CEO Changpeng Zhao sentenced to 4 months in prison
The former CEO of cryptocurrency exchange Binance has been sentenced to 4 months in prison.
Back in November, Changpeng Zhao (CZ) pleaded guilty to one count of failing to take required anti-money-laundering (AML) measures.
As a result, CZ stepped down as Binance CEO and Binance agreed to pay $4.3 billion to settle related allegations.
Funds are SAFU
Prosecutors were seeking a three-year prison sentence - more than twice the guideline range for the crime.
Before being sentenced, CZ apologised for his actions:
āI failed hereā¦ I deeply regret my failure, and I am sorry.ā
The prosecution added:
āIncarceration is necessary to reflect the seriousness of the offenseā¦ A probationary sentence here will incentivize others to break the law and to do it in the largest scale possible.ā
If youāve ever done the rounds on Crypto Twitter, youāve definitely seen this pic of CZ posted beforeā¦
Binance receives a $4 billion fine.
And CZ gets sentenced to 4 months in prison.
You canāt make this stuff upā¦.
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SOME PERSPECTIVE š¦
Bitcoin & the wider crypto market has been ugly over the last month.
Many are pointing the blame at the Bitcoin ETFs, which after a rocket ship-like start, have begun having zero flow days.
Are the ETFs over?
In his latest interview, James Seyffart addressed these common criticisms surrounding the Bitcoin ETFs as of late.
But first, he reiterated just how successful theyāve already been.
Speaking about BlackRock, this is what he had to say:
āA 72 day inflow streak is one of the top 10 streaks weāve ever seen for an ETF. And it is the record for a launch, weāve never seen an ETF launch and then continually take in money every single day.ā
But then James was asked:
Whats up with these zero flow days?
Well as it turns out, zero flow days are completely normal for an ETF.
āMost ETFs donāt see a flow every day in or out. For the most part itās going to be zeroā¦ Itās standard normal procedure for an ETF just not to have flows on a given day. There is going to be days and weeks where these things see meaningful outflows.ā
James explains that the way ETFs work are actually quite complex.
But put simply:
If demand outstrips the current supply of shares, new shares will be created (net inflows).
And If demand is lower than the current supply of shares, then shares will be destroyed (net outflows).
BlackRock has now had 5 zero flow days in a row
Over the long-run, these ETFs will continue to grind higher and higher.
Then James was asked about the upcoming approval/denial of the Ethereum ETFs in May.
And according to James itās not happening this year:
āItās not happening, weāre not seeing any movement, itās very unlikely to happen. Our official stats are at 25%, weāre going to have to lower that in the near future because we arenāt seeing any movement whatsoever.ā
Make no mistake, Seyffart still expects them to be approved eventually.
āI think 2025 is more likely, but we need to see what the SEC denies it onā
The current consensus is that the SEC will approve the Ethereum ETFs eventually.
But itās not looking like itāll happen this yearā¦
Although harsh dips in the crypto market arenāt nice, always zoom out & remember the fundamentals.
Crypto has far too many macro tailwinds to not be ridiculously bullish in the long-term.
IS BITCOIN STILL PROFITABLE? š¤
Today weāll be taking a look at the Adjusted Spent Output Profit Ratio (aSOPR).
Although this metric may sound a little confusing, really itās quite simple.
It tracks the sale of every coin and determines whether it was in profit or not.
This is done by comparing the fiat value of a coin when it is first purchased to the fiat value when it is sold.
aSOPR >1: on average, coins are being sold at a profit š
aSOPR < 1: on average, coins are being sold at a loss š»
aSOPR = 1: on average, coins are being sold at breakeven š
But the neat thing about aSOPR is that coin volume is not considered in the calculation.
This means that whales canāt heavily skew this data by locking in huge profits or losses. Think coins being sold from 2013, etc.
All weāre looking at here is if the transaction was in profit or loss. A simple yes or no.
Today, aSOPR is at 1.024 (It has fallen recently due to Bitcoin recent price action.)
But what does this number mean? š¤·āāļø
Well, it indicates that on average, Bitcoiners are still realising profits.
aSOPR above 1.0 is a tell tale indicator of a bull market. (this metric flashes blue when aSOPR is above 1.0)
Profits are being realised on chain and demand is sufficient in absorbing these sales.
And although short-term sentiment has turned bearish.
As long as this metric remains above 1.0ā¦
Weāre all good. š¤
CRACKING CRYPTO š„
Hong Kong's Bitcoin and Ethereum ETFs launch with lower than expected trading volumes. ChinaAMC leads as Hong Kong's first spot Bitcoin and Ethereum exchange-traded funds (ETFs) see lukewarm start.
Patrick McHenry accuses Gary Gensler of misleading US lawmakers over Ether. Patrick McHenry claimed SEC Chair Gary Gensler intentionally misled Congress in a 2023 hearing.
BlackRock's BUIDL Becomes Largest Tokenized Treasury Fund Hitting $375M. BlackRock's first tokenized offering, created with Securitize, has captured almost 30% of the $1.3 billion tokenized Treasury market in just six weeks.
What could drive BTC price with halving complete, ETF demand stalled. Upcoming macroeconomic clarity, or a lack thereof, is likely to be a key contributor to bitcoinās next price movement.
WHAT WEāRE READING š
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CAN YOU CRACK THIS NUT? āļø
Select your answer below and youāll be redirected to the results page. (answer explanation can be found after āMeme Cornerā)
Which of the following coins/tokens was released first? |
MEME CORNER š
Because what would the crypto world be without its share of memes?
Trivia Answer: C) XRP š„³
XRP launched in June 2012
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