Weekly Crypto Recap: MicroStrategy Resists, Binance Shaken, Bercy Counters!

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Luc Jose A.

Between groundbreaking announcements, technological developments, and regulatory turbulence, the crypto ecosystem continues to prove itself to be a land of limitless innovation and a field of regulatory and economic battlegrounds. Here’s a roundup of the most notable news from the past week on Bitcoin, Ethereum, Binance and Solana, etc.

Despite everything, MicroStrategy persists!

MicroStrategy has continued to strengthen its Bitcoin portfolio, reaching an impressive total of 214,400 BTC with the recent acquisition of 122 Bitcoins for $7.8 million. Despite a net loss of $53 million in the first quarter of 2024 and a 5.5% decline in revenue from the previous year, the company is maintaining its strategy of massive investments in cryptocurrencies. These market movements have taken place against a backdrop of increased volatility affecting the value of the company’s digital assets.

This bold strategy, although risky given the volatility of the crypto market, is a bet on the long-term profitability of Bitcoin. However, this approach led to significant financial losses and prevented MicroStrategy from entering the S&P 500 index, a major blow to the company’s attractiveness to investors. The future of this strategy remains uncertain, but it shows a firm commitment to Bitcoin’s potential.

Light sentence for Changpeng Zhao despite serious charges

Changpeng Zhao, the founder of Binance, was sentenced to just four months in prison and fined $50 million for fraud and non-compliance charges. The sentence is significantly lighter than the three years sought by prosecutors and is seen by some as a sign of leniency that downplays the seriousness of the crimes, setting a worrying precedent for the industry.

This case further highlights the challenges that regulators face in an ever-changing industry and highlights the need for a balance between fostering innovation and protecting investors. Zhao’s case also illustrates the tension between strict regulation and the potential to push key players into more permissive jurisdictions.

Bercy is arming itself against cryptocurrency scammers in France

In France, the gap between the actual use of cryptocurrencies and their tax declaration is alarming. According to data from the European Central Bank, about 5 million French people are cryptocurrency users, but only 150,000 tax returns have been recorded. This discovery prompted Bercy to take drastic measures to combat tax fraud, partly inspired by the massive frauds already observed in other schemes, such as MaPrimeRénov, where 400 million euros were embezzled.

To combat this scourge, Bercy decided to deploy artificial intelligence for more efficient and targeted surveillance. A new legislative framework is being prepared to combat fraud, including a section dedicated to cryptocurrencies. Artificial intelligence will be used to analyze blockchains and detect suspicious activity in real time, modeling fraud patterns to better track and unravel the most complex money laundering schemes. This technological approach promises constant vigilance and increased responsiveness to fraudulent schemes.

BNP Paribas invests in Bitcoin

May 1, 2024 marks a controversial event in the world of Bitcoin ETFs, with record outflows of $563.7 million in a single day. Despite this tumultuous context, BNP Paribas, Europe’s second largest bank, has taken a significant step towards bitcoin adoption by investing around $40,000 in BlackRock’s IBIT ETF. This investment, albeit modest, is symbolic of the growing acceptance of Bitcoin by mainstream European financial institutions.

This BNP Paribas initiative could mark the beginning of wider institutional acceptance of Bitcoin as a viable asset class. Until now, this adoption has been driven primarily by US asset managers and regional banks. BNP’s commitment could attract other big banks and asset managers to invest in bitcoin, accelerating its mainstream acceptance and boosting inflows into ETFs and other regulated instruments.

RippleX is revolutionizing XRP with a new feature

RippleX recently launched an innovative feature, the XLS-68d specification, which aims to simplify and democratize transactions on the XRP Ledger (XRPL). This new specification allows platforms to manage fees and account reserves for their users, greatly reducing the complexity and financial barriers associated with using XRP. Users will benefit from so-called “sponsored transactions” where they can include sponsor signatures in their transactions while retaining full control over their accounts.

This advancement is considered a significant step towards the mass adoption of XRP, as it allows platforms to cover the transaction costs of their users and make XRP available to a wider audience.

SEC Controversy: Allegations of Lying on Ethereum

Gary Gensler, the chairman of the SEC, is accused of lying to the US Congress about the classification of Ethereum as an unregistered security. These revelations from internal SEC documents exposed during the Consensys lawsuit show that the agency has treated ETH as a security for more than a year. These actions contradict the public statements of Gensler, who declined to clarify the SEC’s position on Ethereum during the hearing and avoided direct questions on the subject.

Patrick McHenry, chairman of the House Financial Services Committee, has been outspoken in his criticism of Gensler for what he sees as lying to Congress. This situation highlights the challenges and contradictions in the SEC’s regulation of cryptocurrencies. The outcome of these regulatory debates could have significant implications for the legal status of Ethereum and other cryptocurrencies in the United States.

PayPal expands its cryptocurrency offering with MoonPay

PayPal has significantly expanded its cryptocurrency offering through a strategic partnership with MoonPay. This collaboration allows PayPal to offer more than 100 different digital assets to its users, making buying cryptocurrency as easy as buying online. Likewise, this partnership improves the compatibility of crypto transactions with traditional banking systems and reduces transaction failures, enabling a smooth and secure user experience.

Finally, this integration guarantees better protection of personal data of customers, who no longer need to provide their information to MoonPay separately in order to conduct transactions. With the addition of popular cryptocurrencies such as Solana, Tether, and Dogecoin, PayPal is expanding the options for its users when it comes to investing and using cryptocurrencies on a daily basis.

That’s the main thing to remember this week. However, if you want a more detailed recap and in-depth analysis delivered straight to your inbox, be sure to subscribe to our weekly newsletter.

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Luc Jose A. avatar

Luc Jose A.

A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.


The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

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