Ethereum Name Service proposes layer 2 migration, Mt. Gox transfers $9 billion bitcoin, Sphere introduces Telegram bank-to-wallet, ChatGPT memecoin soars.
Ethereum Name Service Proposes Layer 2 Migration

Ethereum Name Service Proposes Layer 2 Migration

May 29, 2024
| Issue

GM! If you just woke up to the red charts, here's a quick update: Mt. Gox has moved 140k Bitcoin to a new wallet, and there's some legal fuss surrounding a pro-crypto US presidential candidate. Short-term market reaction? Prices dipped, but the overall sentiment remains bullish, as you will see in the newsletter.

Currently, three main narratives are dominating: a migration/creation spree toward Layer 2 solutions, ETFs soaking up everyone's coins (so even if Mt. Gox sells, it might not be a big issue), and memecoins are going to the moon alongside GME trending once again.

Ethereum Name Service Proposes Layer 2 Migration

ENS Labs has proposed ENSv2, an upgrade to the Ethereum Name Service, aiming to enhance scalability and reduce gas fees by migrating core functionalities to a Layer 2 (L2) network. This migration will decrease transaction costs for users and introduce a new hierarchical registry system for more effective .eth domain management, including subdomains and resolver configurations.

Although the specific Layer 2 crypto network has yet to be chosen, the project is leaning toward using technology from the chain-development kit ZK Stack, which is behind the L2 zkSync. The proposal is motivated by the release of Ethereum Improvement Proposal (EIP) 4844, which has reduced costs and increased scalability for L2 blockchains. The price of ENS has grown by 55.76% in the last month.

Mt. Gox Transfers $9B Bitcoin as Part of Repayment Plans

Wallets associated with the defunct Bitcoin exchange Mt. Gox transferred over 140,000 BTC, valued at approximately $9 billion, to a new address. Mt. Gox, which closed in 2014 after getting hacked for hundreds of thousands of bitcoins, has left creditors waiting for repayments, raising concerns about potential selling pressure on BTC markets. Rehabilitation trustee Nobuaki Kobayashi confirmed that no Bitcoin or Bitcoin Cash had been sold and that assets were securely managed.

The transactions, including a series of thirteen transfers ranging from small test amounts to billions of dollars, mark the first movement of these assets in over five years. The consolidation of Mt. Gox's coins into a single wallet is part of a planned distribution to creditors by October 31, 2024. Despite assurances that most of the Bitcoin will likely be held rather than sold, market sentiment turned bearish, causing bitcoin's price to drop by 4.44% from a Monday high of $70,601 to as low as $67,467.

Sphere Introduces Bank-to-Wallet Telegram Extension

Sphere Labs, a blockchain developer specializing in stablecoin services for businesses, has announced a new fiat on-ramp and off-ramp feature within Telegram, allowing users to transfer bank funds directly to their wallets and vice versa for an initial fee of 0.1% per transaction. This service, launching for early users this week with a full launch later in 2024, requires a USD or euro-denominated bank account and is available to users in non-sanctioned countries.

Telegram, a key hub for crypto innovation, integrates various blockchain applications and boasts an extensive user base with 800 million monthly active users and over 15 billion daily messages. Telegram-related cryptocurrency has performed exceptionally well this year, with TON having a year-to-date performance of 180% and NOT reaching a market capitalization of over $900 million.

ChatGPT-Created Memecoin Reaches $638M Market Cap

A memecoin named Turbo, created using the OpenAI chatbot ChatGPT with an initial budget of $69, reached a valuation of $638 million over a year. On May 28, Turbo's price hit an all-time high of $0.009302, increasing its market capitalization parabolically. Over the past three months, Turbo's valuation skyrocketed by 2,262%, reflecting a substantial rise from its $27 million valuation.

Digital artist Rhett Mankind, the creator, attributes the token's success to its decentralized nature, with the community driving its development. He documented Turbo's creation and development journey on social media, emphasizing the token's rapid rise in popularity despite its origins as a "joke" project. According to CoinGlass, memecoins currently dominate open interest in the crypto leverage market.

Data of the day

According to data from CoinShares, digital asset investment products saw inflows of US$1.05 billion last week, pushing year-to-date inflows to a record high of US$14.9 billion. The majority of these inflows went into Bitcoin ETPs, while Ethereum also saw significant inflows of US$36 million, the highest since March.

Exchange-traded products globally now hold over 1 million Bitcoins, with 855,619 BTC accumulated by 11 ETFs in the United States since mid-January and an additional 21 products in other countries, totaling 1,002,343 BTC, equivalent to 5.08% of the current circulating supply.


More breaking news

  • Bitcoin mining giant Riot Platforms Inc. plans to acquire rival Bitfarms Ltd. for $950 million in cash and stock, following the consolidation trend in the mining sector driven by the recent Bitcoin halving. Both companies' stocks rose following the announcement.
  • Two researchers helped a man recover the password to his cryptocurrency wallet containing 43.6 BTC, worth nearly $2.96 million, by exploiting a long-fixed vulnerability in the RoboForm password generator that linked the password to the specific date and time it was created.
  • Former FTX executive Ryan Salame was sentenced to 90 months in prison for his involvement in unlawful political contributions and operating an unlicensed money-transmitting business, along with three years of supervised release, $6 million in forfeiture, and over $5 million in restitution.
  • Medical device maker Semler Scientific announced plans to use Bitcoin as its primary treasury reserve asset by purchasing 581 BTC for $40 million, causing its shares to rise by as much as 32%.
  • London's first Bitcoin exchange-traded products (ETPs) have begun trading on the London Stock Exchange following approval from the UK's Financial Conduct Authority, with WisdomTree and 21Shares listing their Bitcoin ETPs, offering professional investors regulated exposure to Bitcoin.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.