Hodler’s Digest: Key Crypto Insights from August 17-23 – Cointelegraph Magazine

Top Stories of The Week

Coinbase Predicts Trillion-Dollar Stablecoin Era by 2028

According to a recent report from crypto exchange Coinbase, the total market for US dollar-pegged stablecoins is projected to balloon to $1.2 trillion by 2028. This growth is expected to be driven largely by more comprehensive cryptocurrency regulations emerging in the United States.

Coinbase estimates that to meet the surging demand from stablecoin issuers, the US Treasury would need to issue approximately $5.3 billion per week over the next three years. These issuers often back their digital fiat tokens with short-term US Treasury bills as collateral.

Interestingly, Coinbase noted that this issuance schedule would lead to only a minor and temporary dip in three-month Treasury yields—estimated to be about 4.5 basis points. This finding contradicts the widespread belief that a spike in stablecoin demand would substantially decrease the interest rates on US government debt. The report concluded:

“We believe that this forecast does not necessitate unrealistically large or permanent rate disturbances. Instead, it relies on gradual, policy-enabled adoption compounding over time.”

Kanye West YZY Sniper Wallet Linked to $21M LIBRA Extraction Scheme: Analysts

An on-chain investigation conducted by pseudonymous analyst Dethective has uncovered that a wallet associated with the Kanye West-themed token YZY is linked to a network of wallets responsible for an extraction scheme involving LIBRA tokens, suggesting the operator profited tens of millions of dollars through insider knowledge.

Dethective revealed in a series of X posts that a YZY sniper wallet managed to purchase $250,000 worth of tokens at just $0.20—significantly less than the price most traders paid. Within minutes, this wallet secured over $1 million in profits, which were subsequently funneled into a treasury wallet.

The same treasury wallet had previously received substantial funds from wallets associated with LIBRA’s launch six months ago. Two “Libra sniper” wallets collectively extracted around $21 million. Ultimately, nearly $23 million was looted in total from both YZY and LIBRA token launches, with funds later moved to platforms like Kamino or Binance.

“This strongly indicates that the individual has inside information,” Dethective stated. “The evidence is that they exclusively targeted $YZY and $LIBRA, and came prepared with significant capital.”

Bitcoin’s Four-Year Cycle May Not Be Dead After All: Glassnode

Despite some bullish market predictions that increased institutional interest would disrupt Bitcoin’s traditional four-year halving cycle, on-chain analytics firm Glassnode asserts that Bitcoin’s recent price movements still reflect its historical patterns.

In a market report released on Wednesday, Glassnode stated:

“From a cyclical point of view, Bitcoin’s price behavior resonates with prior cycles.”

The firm noted several signs indicating that Bitcoin may be further into this cycle than many believe. For instance, profit-taking among long-term holders—those holding Bitcoin for over 155 days—is now comparable to past euphoric phases, reinforcing the impression that the market may be nearing a peak.

Furthermore, Glassnode points out signs of waning demand, noting that capital inflows into Bitcoin are demonstrating fatigue. Over the past four trading days, spot Bitcoin ETFs have experienced outflows totaling around $975 million, according to Farside Investors.

Harvard Economist Admits He Was Wrong About Bitcoin Crashing to $100

Harvard economist Kenneth Rogoff has come to terms with the fact that his previous prediction—that Bitcoin would likely crash to $100 before reaching $100,000—was misguided. He recently expressed this change of heart on social media, stating,

“Almost a decade ago, I claimed that Bitcoin was more likely to be valued at $100 than 100K. What was I missing?”

Despite acknowledging that many dynamics have changed over the past seven years, it seems Rogoff has yet to fully embrace Bitcoin. As a former chief economist of the International Monetary Fund and author of the book Our Dollar, Your Problem, he remains cautious about what the future holds for cryptocurrencies.

Philippine Bill Charts Path to Strategic Reserve with 10,000 Bitcoin

The Congress of the Philippines is mulling a proposal that would allow the country’s central bank to establish a strategic reserve of 10,000 Bitcoin, potentially making it one of the first nations in Southeast Asia to adopt Bitcoin as a strategic asset.

Proposed by Camarines Sur Representative Migz Villafuerte, the “Strategic Bitcoin Reserve Act” aims to require the Banko Sentral ng Pilipinas (BSP) to purchase 2,000 Bitcoin annually over a five-year period. This would effectively total 10,000 Bitcoin, valued at approximately $1.1 billion at current market prices.

According to the bill, these assets would be locked in a trust for a minimum of 20 years, meaning they could not be sold, swapped, or otherwise disposed of unless to retire government debt.

Winners and Losers

As the week concludes, Bitcoin (BTC) is trading at $116,967, while Ether (ETH) stands at $4,873, and XRP is priced at $3.09. The overall market capitalization is estimated at $4.05 trillion, as per CoinMarketCap.

Among the top 100 cryptocurrencies, the leading altcoin gainers of the week include OKB (OKB) at 114.67%, Morpho (MORPHO) at 41.07%, and Chainlink (LINK) at 25.75%.

Conversely, the top losers for this week are Pump.fun (PUMP) down 7.17%, Four (FORM) down 5.90%, and Hyperliquid (HYPE) down 5.14%.

For detailed insights on crypto prices, don’t forget to check out Cointelegraph’s comprehensive market analysis.

Most Memorable Quotations

“From the SEC’s perspective, we will plow forward with the idea that just the token itself is not necessarily the security, and probably not. There are very few, in my mind, tokens that are securities, but it depends on the package around it and how that’s being sold.”

Paul Atkins, Chair of the US Securities and Exchange Commission.

“Retail traders have done a complete 180 after Bitcoin failed to rally and dipped below $113,000.”

Santiment analysts.

“This is not a sign of strength for $BTC. The downward pressure is palpable, but bulls are attempting to regain their footing.”

Keith Alan, Co-founder of Material Indicators.

“I tentatively predict we’ll see a million-dollar Bitcoin by 2030.”

Brian Armstrong, CEO of Coinbase.

“If we fail to establish the right market structure and revert to a more hostile regulatory environment, I sincerely believe we could fall behind the EU, APAC, or perhaps even the Middle East.”

Stuart Alderoty, Chief Legal Officer at Ripple.

“The way we acquire Bitcoin is to do so without impacting its price.”

Shirish Jajodia, Corporate Treasurer and Head of Investor Relations at Strategy.

Top Prediction of The Week

ETH ‘God Candle’ Emerges Amid Fed Rate Cut Hopes: Is $6K Ether Next?

Ether demonstrated significant strength following the Wall Street open on Friday, rising an impressive 13% to $4,788 after Federal Reserve Chair Jerome Powell made a speech at Jackson Hole.

In a matter of minutes, ETH’s price surged from $4,200, regaining the $4,600 level that had suppressed its price over the previous week, according to data sourced from Cointelegraph Markets Pro and TradingView.

On the same day, ETH achieved a new all-time high exceeding $4,867 on Coinbase, marking the first time this milestone had been reached since November 2021.

This bullish performance can be attributed to Powell’s comments during the Jackson Hole conference, where he indicated the possibility of an interest rate cut in September, a dovish stance that has significantly boosted market confidence.

According to the CME Group’s Fedwatch tool, the likelihood of a rate cut for the September 17 FOMC meeting has surged to 91.5%, up from 75% just a day prior.

Top FUD of The Week

Interpol Coordinates Crackdown on Illegal Angola-Based Crypto Miners

In a major announcement, the International Criminal Police Organization, or Interpol, detailed that over a thousand arrests have been made, along with the seizure of approximately $100 million, as part of a crackdown targeting illegal cryptocurrency miners and fraudsters.

On Friday, Interpol revealed that they had collaborated with Angolan authorities to dismantle 25 crypto mining operations that were being illegally run by 60 Chinese nationals.

As part of the operation, equipment valued at over $37 million was seized, with plans for the Angolan government to distribute this equipment to “vulnerable areas.”

Coinbase Tightens Workforce Security After North Korean Remote-Worker Threats

Coinbase, currently the world’s third-largest cryptocurrency exchange by volume, has reported a wave of threats from North Korean hackers who are seeking remote employment with the platform.

It appears that North Korean IT workers are increasingly exploiting Coinbase’s remote worker policy to gain access to sensitive systems within the company.

In light of these threats, Coinbase CEO Brian Armstrong is reevaluating the exchange’s internal security measures. This includes mandating that all employees undergo in-person training in the United States, while those with access to sensitive systems will be required to hold US citizenship and undergo fingerprinting.

“DPRK is very interested in stealing crypto,” Armstrong stated during a recent episode of the Cheeky Pint podcast. “We can collaborate with law enforcement to counteract these threats, but it feels as though there are hundreds of new graduates from certain schools each quarter, and that’s their primary focus.”

Taiwan Charges Suspects in Record $72M Crypto Laundering Scheme

In a significant legal development, Taiwanese prosecutors have reportedly indicted 14 individuals in the country’s largest known cryptocurrency money laundering case, which involved more than 1,500 victims and over $70 million in illicit funds.

The Shilin District Prosecutor’s Office has brought charges related to fraud, money laundering, and organized crime, seeking the confiscation of 1.275 billion New Taiwan dollars (approximately $39.8 million) obtained from victims through fraudulent means.

The prosecutors have also requested the confiscation of additional assets, including 640,000 USDT, undisclosed Bitcoin and Tron holdings, over $1.8 million in cash, and two luxury vehicles. They reportedly seized bank deposits totaling $3.13 million, with plans for recovering the remaining proceeds in the future.

The group is accused of laundering $71.9 million collected from unsuspecting victims in cash, which was then converted into foreign currency and transferred overseas for the purchase of USDT through the Taiwanese cryptocurrency exchange BiXiang Technology.

Top Magazine Stories of The Week

Can Privacy Survive in US Crypto Policy After Roman Storm’s Conviction?

Roman Storm’s recent conviction in connection with Tornado Cash highlights ongoing tensions between privacy and security, reflecting challenges that legal experts note are reminiscent of earlier battles over encryption.

Stablecoins in Japan and China, India Mulls Crypto Tax Changes: Asia Express

Key Asian economies are accelerating their stablecoin initiatives, while India is considering revising its strict crypto tax policies among various developments within the region.

Bitcoin’s Long-Term Security Budget Problem: Impending Crisis or FUD?

The declining block reward subsidy poses a genuine challenge for Bitcoin’s security budget. However, experts suggest there are viable solutions that could address this issue effectively.