Welcome to this Wednesday's edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:
- Sam Bankman-Fried’s trial begins
- Ethereum Futures ETF off to a slow start
- Binance hit with class-action lawsuit
- Institutions favor Solana as the go-to Altcoin
Before we dive into the topics of the day, let's briefly examine the current state of the crypto market.
Sam Bankman-Friend’s trial begins in New York
The trial of Sam Bankman-Fried, the former CEO of FTX, has kicked off in New York, with the expectation that the proceedings will last around six weeks. The day began with the challenging task of jury selection, which Judge Kaplan hopes to complete by the end of Tuesday. Bankman-Fried faces multiple fraud charges and has pleaded not guilty. Notably, no plea deal was ever offered to him.
In a morning filled with potential jurors trying to evade involvement in what's been termed "one of the biggest financial frauds in American history," Judge Kaplan outlined that Bankman-Fried is accused of defrauding FTX customers and misleading lenders to Alameda Research, FTX's former affiliated company.
Adding to the drama, Bankman-Fried, who has been in detention since August, had his $250 million bond revoked. The prosecution alleged he attempted to leak sensitive information to discredit a witness. Despite the trial being in session, both parties continue to dispute over witness testimonies and discovery materials.
As both sides brace for what promises to be a high-stakes legal battle, all eyes will be on the Manhattan courthouse for the latest developments in this landmark case.
Ethereum Futures ETF off to a slow start
Ethereum futures ETFs had a slow start, attracting less than $2 million on the first day, in contrast to Bitcoin's ProShares BITO, which did $200 million in 15 minutes during its launch. Analysts cite this as evidence of low demand for Ethereum exposure. Leading the pack were ProShares's EETH and VanEck's EFUT, with volumes of around $850,000 and $500,000 respectively. The sluggish start could indicate future price trends and potentially shift demand away from the spot market.
Binance hit with class-action lawsuit
Binance and its CEO, Changpeng Zhao, are facing a class-action lawsuit that accuses them of engaging in unfair competition and violating laws set by the Security Exchange Commission (SEC). The lawsuit, led by plaintiff Nir Lahav, claims that Binance intentionally harmed competing trading platforms operated by FTX entities in order to monopolize the cryptocurrency market.
The lawsuit, which was filed in the US Northern District Court of California, highlights a series of actions initiated by Zhao through a social media post on November 6th of last year.
Institutions favor Solana as the go-to Altcoin
Institutions have shown a strong preference for Solana, as stated in CoinShares' recent crypto fund report, even during periods of stagnation in the wider cryptocurrency market. James Butterfill, CoinShares' head of research, highlighted that there was minimal activity in the altcoin space, with one notable exception: Solana.
Solana has experienced a successful year so far, with 27 weeks of inflows compared to only four weeks of outflows. This trend continued in the past seven days, as institutions acquired $5 million worth of Solana. Butterfill noted that this consistent demand has solidified Solana's position as the "most favored altcoin of the year."
Other breaking news
- Wemade partners up with Chainlink Labs
- Dirham stablecoin DRAM hits Uniswap
- Circle and Noble bring USDC to Cosmos
- BTC drops below $28K on profit-taking
Wrapping up today's issue, the legal drama around Sam Bankman-Fried kicks off as both sides prepare for an intense battle, while Binance faces legal challenges of its own. Meanwhile, Ethereum futures ETFs launch to a lukewarm reception, contrasting sharply with institutions' growing affinity for Solana. Stay tuned as we continue to provide you with crucial updates and in-depth analyses on these evolving stories.