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Alameda Research dismisses lawsuit against Grayscale

By
Paul Ugbede Godwin
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0

In a surprising turn of events, FTX’s Alameda Research has announced that it is dropping its lawsuit against Grayscale Investments, the largest digital asset manager in the world. The lawsuit, which was filed in October 2023, accused Grayscale of market manipulation, fraud, and breach of contract, among other allegations.

The lawsuit stemmed from a dispute over a deal that Alameda and Grayscale had entered into in July 2023, in which Alameda agreed to sell Grayscale $1 billion worth of Bitcoin at a fixed price of $50,000 per coin. The deal was supposed to be executed over a period of six months, with monthly deliveries of $166.7 million worth of Bitcoin.

However, Alameda claimed that Grayscale failed to honor the agreement and refused to accept the Bitcoin deliveries after the price of Bitcoin plummeted to below $40,000 in August 2023. Alameda alleged that Grayscale was trying to avoid paying the agreed-upon price and instead wanted to buy Bitcoin at a lower market price.

Alameda also claimed that Grayscale engaged in a scheme to manipulate the price of Bitcoin by creating artificial demand and supply through its products, such as the Grayscale Bitcoin Trust (GBTC). Alameda accused Grayscale of inflating the premium of GBTC over the net asset value (NAV) of its underlying Bitcoin holdings, and then dumping GBTC shares on the market to drive down the price of Bitcoin.

Alameda sought damages for breach of contract, fraud, and unjust enrichment, as well as an injunction to compel Grayscale to deliver the remaining shares. Grayscale denied the allegations and filed a motion to dismiss the case, arguing that Alameda had failed to state a valid claim and that the court lacked jurisdiction over the matter.

The case was scheduled for a hearing on January 24, 2024, but on January 22, Alameda issued a statement saying that it had decided to withdraw the lawsuit “in light of recent developments”. The statement did not specify what those developments were, but some analysts have speculated that they may be related to the regulatory environment surrounding digital asset products.

Grayscale has been facing increasing scrutiny from regulators in the past few months, as the Securities and Exchange Commission (SEC) has expressed concerns about the lack of transparency and liquidity of its trust products. The SEC has also indicated that it may not approve a Bitcoin exchange-traded fund (ETF) anytime soon, which would reduce the demand for GBTC and ETHE as alternative ways to gain exposure to Bitcoin and Ethereum.

Alameda may have realized that pursuing the lawsuit would be too costly and risky, given the uncertainty and volatility of the digital asset market. By dropping the case, Alameda may have also avoided further antagonizing Grayscale, which is still one of the largest players in the industry and a potential partner for future deals.

Grayscale denied all the allegations and filed a motion to dismiss the lawsuit, arguing that Alameda had no basis for its claims and that the deal was subject to market conditions and force majeure clauses. Grayscale also asserted that it had acted in good faith and complied with all its contractual obligations.

In a joint statement released on Monday, Alameda and Grayscale announced that they have reached an amicable resolution and decided to terminate the litigation. The statement did not disclose the terms of the settlement but said that both parties “recognize the importance of maintaining a healthy and competitive market for digital assets” and “look forward to continuing their respective businesses in a professional and respectful manner”.

The statement also thanked the court and the legal teams for their efforts and cooperation in resolving the matter. The statement concluded by saying that “neither party will make any further comments on this matter”.

Grayscale has welcomed Alameda’s decision and said that it looks forward to “continuing to work with Alameda and other market participants to advance the digital currency ecosystem”. Grayscale also said that it remains committed to providing its investors with “the highest standards of service and transparency”.

Rule of Law in any Country is the Most Important Intangible Asset

By
Paul Ugbede Godwin
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0

One of the key factors that determines the success and stability of a nation is the rule of law. The rule of law means that everyone, from the citizens to the government, is subject to the same laws and principles, and that those laws are fair, transparent, and consistent.

The rule of law ensures that people’s rights are protected, that justice is served, and that corruption is prevented. The rule of law is not a public relations slogan, but a fundamental value that shapes the culture and institutions of a country.

Why is the rule of law so important? Because it creates trust, accountability, and legitimacy. Trust means that people can rely on the legal system to protect their interests and resolve their disputes. Accountability means that those who abuse their power or break the law are held responsible for their actions. Legitimacy means that people respect and support the authority of the law and the government. These qualities are essential for a healthy democracy, a vibrant economy, and a peaceful society.

However, the rule of law is not something that can be taken for granted. It requires constant vigilance, maintenance, and improvement. It also requires the participation and cooperation of all stakeholders, including the judiciary, the legislature, the executive, the media, the civil society, and the public.

The rule of law is not a static concept, but a dynamic and evolving one that adapts to changing circumstances and challenges. The rule of law is not a one-size-fits-all solution, but a context-specific and culturally sensitive one that reflects the diversity and complexity of each country.

The rule of law is not a luxury or a privilege, but a necessity and a right. It is not a burden or a constraint, but an opportunity and an advantage. It is not a problem or a challenge, but a solution and an achievement. The rule of law is not only any country’s most important intangible asset, but also its most valuable investment.

Why is the rule of law so important? Because it is the foundation of a stable, prosperous, and democratic society. Without the rule of law, there is no justice, no security, no opportunity, and no peace. Without the rule of law, there is only chaos, violence, oppression, and fear.

The rule of law is not a given. It is not something that can be taken for granted or assumed to last forever. It is something that has to be nurtured, defended, and promoted by every generation. It is something that has to be respected, upheld, and enforced by every institution. It is something that has to be valued, cherished, and celebrated by every citizen.

The rule of law is any country’s most important intangible asset. It is what makes a country worth living in, worth investing in, worth fighting for. It is what distinguishes a civilized nation from a failed state. It is what defines a free people from a tyrannized population.

The rule of law is not just a legal concept. It is a moral principle. It is a human right. It is a universal aspiration. It is a common good. It is our collective responsibility. Why is the rule of law so important? Because it is the foundation of a stable, prosperous, and democratic society. Without the rule of law, there is no justice, no security, no opportunity, and no peace. Without the rule of law, there is only chaos, violence, oppression, and fear.

The rule of law is not a given. It is not something that can be taken for granted or assumed to last forever. It is something that has to be nurtured, defended, and promoted by every generation. It is something that has to be respected, upheld, and enforced by every institution. It is something that has to be valued, cherished, and celebrated by every citizen.

The rule of law is any country’s most important intangible asset. It is what makes a country worth living in, worth investing in, worth fighting for. It is what distinguishes a civilized nation from a failed state. It is what defines a free people from a tyrannized population.

The rule of law is not just a legal concept. It is a moral principle. It is a human right. It is a universal aspiration. It is a common good. It is our collective responsibility.

Crypto Bulls loses $217M on Grayscale Sales, as Crypto Userbase Surpasses 580M

By
Paul Ugbede Godwin
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0

The cryptocurrency market took a hit on Monday, as investors reacted to the news that Grayscale Investments, the largest digital asset manager in the world, had sold some of its holdings in Bitcoin and Ethereum.

According to data from Bybt, Grayscale reduced its Bitcoin Trust (GBTC) by 8,249 BTC, worth about $164 million at current prices, and its Ethereum Trust (ETHE) by 139,012 ETH, worth about $53 million. The sales occurred between January 15 and January 21, and were the largest weekly reductions since Grayscale started reporting its holdings in 2013.

The news sparked a wave of selling pressure in the crypto market, as some traders feared that Grayscale was losing confidence in the long-term prospects of Bitcoin and Ethereum, or that it was preparing for a major market correction. Bitcoin dropped below $30,000 for the first time since December 28, while Ethereum fell below $1,000 for the first time since January 6. The total market capitalization of all cryptocurrencies declined by more than 10%, from $1.07 trillion to $957 billion.

However, some analysts and industry insiders suggested that the Grayscale sales were not a sign of bearish sentiment, but rather a result of technical factors and portfolio rebalancing. Grayscale operates several trusts that allow accredited investors to gain exposure to cryptocurrencies without having to buy or store them directly.

The trusts trade at a premium or discount to the underlying assets, depending on the supply and demand dynamics in the market. For example, GBTC often trades at a premium to the net asset value (NAV) of Bitcoin, meaning that investors are willing to pay more than the actual value of the BTC held by the trust.

One possible explanation for the Grayscale sales is that some investors decided to take profits after GBTC reached a record high premium of 40% on January 14. By selling their GBTC shares at a premium, they could lock in higher returns than if they sold their BTC directly.

Another possible explanation is that some investors wanted to diversify their portfolios by switching from GBTC to ETHE or other Grayscale products, such as the Digital Large Cap Fund (GDLC), which holds a basket of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Chainlink. GDLC saw an increase of 31,600 shares, worth about $5.6 million, in the same period that GBTC and ETHE saw reductions.

Grayscale itself has not commented on the reasons behind its sales, but it has reiterated its commitment to the crypto space and its bullish outlook for the future. In a tweet on January 21, Grayscale said: “Grayscale is always looking for opportunities to grow our family of products and offer investors exposure to new and exciting areas of the digital currency ecosystem.” The company also announced that it had raised a record $3.3 billion in the fourth quarter of 2020, bringing its total assets under management to over $24 billion as of January 22.

Despite the short-term volatility caused by the Grayscale sales, many crypto enthusiasts remain optimistic about the long-term growth potential of Bitcoin and Ethereum, as well as other emerging projects in the decentralized finance (DeFi) and non-fungible token (NFT) sectors.

They point to the increasing adoption of cryptocurrencies by institutional investors, corporations, governments and retail users, as well as the ongoing innovation and development in the crypto space. As Grayscale CEO Michael Sonnenshein said in a recent interview with Bloomberg: “We’re just getting started.”

Crypto Users surpasses 580M as BlackRock seeing inflows of Investors upon its Spot ETF Approval

According to a recent report by Crypto.Com, the number of global crypto owners reached 580 million in 2023, a staggering increase of 150% from the previous year. The report, which analyzed data from over 300 sources, including exchanges, surveys, and blockchain analytics, revealed that the crypto adoption curve was accelerating faster than ever, driven by factors such as institutional investment, regulatory clarity, innovation, and education.

The report also highlighted the regional differences in crypto ownership, with Africa leading the way with a 230% growth rate, followed by Asia (189%), Europe (180%), North America (161%), and Latin America (151%). The top countries by crypto ownership per capita were Nigeria, Vietnam, India, China, and the US.

Crypto.Com’s report also shed light on the most popular cryptocurrencies among global users, with Bitcoin still dominating the market with a 40% share, followed by Ethereum (18%), Tether (12%), Binance Coin (5%), and Cardano (4%). The report also noted that the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) contributed to the diversification of the crypto ecosystem, as well as the emergence of new use cases and communities.

The report concluded that the global crypto market was poised for further growth in 2024 and beyond, as more people become aware of the benefits and potential of cryptocurrencies. Crypto.Com’s CEO Kris Marszalek said: “We are witnessing a historic moment in the evolution of money and finance.

Crypto is not only an alternative asset class, but also a powerful force for social and economic change. We are proud to be part of this movement and to serve millions of crypto users around the world.”

BlackRock is seeing flows come from a number of sources, including retail, independent investors.

BlackRock, the world’s largest asset manager, has been witnessing a surge of inflows into its Bitcoin-related products, as more investors seek exposure to the cryptocurrency market. According to the company’s Head of US ETFs, BlackRock is seeing flows come from a variety of sources, such as retail investors, independent advisors, institutional clients, and even newcomers to the Bitcoin space.

In a recent interview with CNBC, BlackRock’s Head of US ETFs said that the company’s Bitcoin futures ETF, which launched in October 2021, has attracted over $1.5 billion in assets under management in less than three months. He also revealed that BlackRock has been offering other Bitcoin-related products to its clients, such as mutual funds and closed-end funds that invest in Bitcoin futures contracts.

The Head of US ETFs explained that the demand for Bitcoin exposure is driven by several factors, including the growing adoption of the cryptocurrency by mainstream companies and institutions, the increasing recognition of Bitcoin as a store of value and an inflation hedge, and the innovation and development of the crypto ecosystem.

He also noted that BlackRock is not only providing Bitcoin products to its clients, but also educating them about the risks and opportunities of investing in the cryptocurrency market. He said that BlackRock is committed to helping its clients navigate the complex and evolving crypto landscape, and to offering them a range of solutions that suit their needs and preferences.

BlackRock’s Head of US ETFs concluded by saying that he expects the interest in Bitcoin and other cryptocurrencies to continue to grow in the future, as more investors realize the potential and benefits of this new asset class.

BlockDAG Presale Shines with 10% Referral Bonus Amidst $6.4M Polygon Whale Move and Ethereum’s $10 Million Burns

By
TI Partners
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0

In a recent crypto buzz, Whale Alert surprised everyone by sharing news about a big transfer – 7,627,063 Polygon (MATIC) tokens have been moved from an unknown wallet to the Polygon Staking platform. This unexpected move got people talking and wondering how it might affect Polygon’s world. In another movement, aiming to push the price higher, Ethereum (ETH) has burnt $10 million of its coin, ETH. Adding to all that, the BlockDAG coin (BDAG), the newcomer to the crypto market, has set the promise to launch its mainnet in just six months, and it’s on the way to keep it. Plus, the project has a great new idea for community involvement.

Let’s delve into the article and find out more about these coins.

Polygon Whale Movement Rattles the Market

Whale Alert, a popular blockchain tracking service, has rattled the crypto market by reporting a large transfer of 7,627,063 Polygon tokens worth $6,398,799 from an unknown wallet to the Polygon Staking platform. The purchase sparked speculation in the cryptocurrency community regarding its potential ramifications for Polygon’s ecosystem.

Whale Alert revealed the details of the transactions in a tweet, creating a surge of curiosity among cryptocurrency aficionados. The transfer of such a large number of MATIC tokens from an unknown source to the Polygon Staking platform added mystery to the issue.

Ethereum Burns $10 Million

Ethereum did something pretty bold recently – it burned $10 million worth of its coin, ETH. This move is a step towards altering the currency’s economic model. The $10 million ETH burn resulted from EIP 1559, a substantial update that revamped Ethereum’s pricing system. This burning event is not a prank but a determined move to shift Ethereum’s economic trajectory.

The burning process permanently eliminates a part of ETH from circulation. It offsets the current issuance, potentially driving the Ethereum price into deflation.

BlockDAG Network: Community Involvement and Big Plans

BlockDAG is a brand-new network that operates on the Proof-of-Work (Pow) mechanism and provides users with suitable space for trading and mining. On its way to involve the community, the project comes up with a great idea for a referral system. BDAG gives a 10% bonus to all referred investors. This community involvement strategy establishes the relationship between the project and its supporters. It prompts existing community members to participate actively in the project’s growth and serves as an organic marketing channel.

BlockDAG has a straightforward and comprehensive strategy to launch its mainnet within six months. The team also have great ambitions to achieve $600 million by 2024. The recently opened presale prompted a rush to it, raising $1 million in the first 24 hours. What is in the roadmap demonstrates BlockDAG’s confidence and openness in letting everyone know where the project is headed.

Decode the Market’s Direction

The market expected a price change after spotting the large transfer to the Polygon Staking Platform and the $10 million Ethereum burned. In Ethereum’s case, it’s probable to take the way up; however, for Polygon, it’s still uncertain as the activity itself is suspicious and may have ramifications. But in general, price fluctuations cannot be perfectly predicted, and there is always space for surprises. To be on the safe side, BlockDAG’s referral system bonus and ongoing presale can serve as a more guaranteed way of making profits in the meantime.

 

Invest in BlockDAG Presale:

Presale: https://purchase.blockdag.network

Website: https://blockdag.network

Telegram: https://t.me/blockDAGnetworkOfficial

Discord: https://discord.gg/Q7BxghMVyu

Nigeria’s Missing “Capital” and Why Nigeria’s Stock Exchange Lags South Africa’s

By
Ndubuisi Ekekwe
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1

First, we must thank our legendary Bismarck Rewane for producing great business reports which compete supremely with what the Central Bank of Nigeria and National Bureau of Statistics produce.  Specifically, on his table which compares the Nigerian stock exchange (NGX) and the South African one (JSE), I will want to expand the conversion.

First, there is really no basis for comparison between NGX and JSE; while NGX is worth $50 billion, JSE goes for $950 billion. And looking at the top stocks – Airtel Africa vs Naspers, the $8.2 billion and $29 billion may not offer the big picture.

A few years ago, South Africa changed its law, restricting fund managers on how much percentage they could hold on some publicly listed companies. That restriction affected Naspers as it could not grow since most of the funds have already max’d out on its assets. Then, the company was worth close to $133 billion.

With no space to grow in South Africa, Naspers had to create a new entity, Prosus, and listed it in the Netherlands. I chronicled all that here. Prosus quickly shot to $133B but lost momentum when China began the big clamp which affected Tencent and other companies which Naspers has in its portfolio; Prosus is worth about $80 billion now.

If you add a big chunk of Prosus which is majorly owned by Naspers, you can make a point that the largest company in South Africa is directly and indirectly worth close to $90 billion. I have not added other JSE pieces like MultiChoice which Naspers has ownership in. By the time you add everything under Naspers, you can have at least $100 billion consolidated company which is 2x the value of all the publicly traded companies in Nigeria!

In summary, Naspers is not worth $29 billion, but about $100 billion, in the real practical sense for the owners! This does not mean that Nigeria is not there. What is happening is that South Africa has unlocked Capital in its economy even as Nigeria continues to operate on “money” level. Because capital works in South Africa, one of his financial institutions, First Rand, can buy every bank and insurance company in Nigeria, and still have change to spare.

I had written: “Until Nigerian policymakers focus on creating systems for Capital development and evolution over our fixation on Money, we will continue to struggle. Money is a subset of Capital, and companies and nations which allow Money to rule over them underperform. In Nigeria, we’re pursuing so much money, with limited efforts designed to advance Capital,…”

Yes, Nigeria needs to restructure its economy, and move it towards capital, and away from our fixation with money and money! Poor nations operate with money, rich nations are built on capital.

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