yETH Proposal Draws Mixed Reviews, SEC Summons Justin Sun and Celebrities to Court
Market Update
- Digital asset markets continue their run-up from Ethereum's successful Shapella upgrade midweek, while traditional markets stall. BTC (-1%) is holding the 30k level since breaching it on Monday, while ETH 4.75% (+2.5%) breached $2.1k last evening before dipping right below it at the time of writing. ETHBTC is trading back above the 0.066 level at 0.068 after failing to break down from 0.062. ^SPX 1.11% (-0.4%) and QQQ 1.08% (-0.6%) opened higher before retracing below yesterday's close, correlating inversely with bond markets. The 2Y and 10Y yields are up 3.6% and 2.4% on the day, currently at 4.1% and 3.5%, respectively. Over the past week, INJ has been the second-strongest performer in the top 100, gaining 46%. The finance-focused Layer1 partnered with Eclipse to launch Cascade two weeks ago, their Layer2 testnet for Solana-based apps on Cosmos.
- Yearn.finance's proposed token, yETH, which tracks a basket of Ethereum Liquid Staking Tokens (LSDs), may not be launched yet due to a split within the Yearn.finance governance forum. The poll, which is non-binding, shows that 11 out of 20 voters oppose launching yETH. The token is intended to diversify risk by spreading it across various Ethereum LSDs while also earning additional yields through Yearn's veCRV position. Some users have questioned the need for exposure to multiple LSDs, while others have said that yETH's proposal is too similar to existing projects like unshETH, a project that we wrote about this week. The poll will continue for another three days to gauge community interest before a binding vote via snapshot is considered. One user, Hardwood, questioned why Yearn contributors feel the need to copy ideas from other projects and that it would only segregate liquidity, exacerbating the problem that the proposal is trying to solve. The fact that a bluechip DeFi protocol is looking to incorporate an LSD index only validates our thesis that there is market demand for unshETH's product.
- The US Securities and Exchange Commission (SEC) has summoned Tron Foundation's founder, Justin Sun, as well as rapper Soulja Boy and YouTuber Austin Mahone, to respond to a civil complaint about unregistered securities offerings from Tron and BitTorrent. Sun is accused of orchestrating a scheme to artificially inflate trading volumes of Tronix by engaging in over 600,000 wash trades between multiple crypto exchanges, paying for celebrity endorsements without disclosing them as paid spokespeople, and selling unregistered securities. If the trio fail to respond within 21 days, the SEC will enter a judgment by default against them. Previous celebrities who settled similar civil charges with the SEC include Akon, Lil Yachty, and Lindsay Lohan, who agreed to disgorge their earnings without admitting or denying the SEC's findings. The SEC has asked a court to bar Sun and his companies from ever offering securities again, forfeit their proceeds plus interest, and pay civil penalties. The regulatory body also wants Soulja Boy and Mahone to be banned from receiving money for future endorsements of digital assets and to pay their own penalties. Sun was last seen in Hong Kong promoting Tron.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Ethereum continues to show above-average relative strength following its Shapella upgrade, and ETHBTC has now officially broken back above recent February lows which represented an important near-term resistance level. Given that ETHBTC has officially exceeded former highs from early April, it's expected that this recent uptick in above-average relative strength for Ethereum likely continues vs. Bitcoin. Ethereum has near-term technical targets at roughly $2400 by late April, and it's thought that ETHBTC should push higher to test and potentially exceed the mid-March highs. Such a development would cause an even greater amount of strength in ETHBTC. Overall, this past week looks to have been pivotal in jump-starting Ethereum's relative strength, and Friday's movement looks to be a constructive development that can allow this to continue.
Daily Important Metrics
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All metrics as of April 14, 2023 12:09 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $584B | $30,201 | ↓ -0.89% | ↑ 82% | |
 ETH | $248B | $2,060 | ↑ 2.92% | ↑ 72% | ↓ -10% |
 ADA | $15B | $0.4283 | ↑ 2.31% | ↑ 74% | ↓ -8.78% |
 DOGE | $12B | $0.0861 | ↓ -1.36% | ↑ 23% | ↓ -60% |
 MATIC | $11B | $1.14 | ↑ 0.88% | ↑ 50% | ↓ -32% |
 SOL | $9.4B | $23.88 | ↓ -3.16% | ↑ 141% | ↑ 59% |
 DOT | $7.7B | $6.57 | ↑ 0.02% | ↑ 51% | ↓ -31% |
 LINK | $3.9B | $7.58 | ↑ 2.06% | ↑ 37% | ↓ -46% |
 NEAR | $1.9B | $2.17 | ↓ -1.41% | ↑ 70% | ↓ -12% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -36% | $17.57 | ↓ -0.73% | ↑ 112% | ↑ 30% |
| BITW | ↓ -57% | $11.74 | ↓ -0.25% | ↑ 119% | ↑ 36% |
| ETHE | ↓ -46% | $10.55 | ↑ 0.67% | ↑ 122% | ↑ 39% |
| BTCC | ↑ 0.14% | $5.62 | ↑ 0.36% | ↑ 85% | ↑ 3.17% |
News
DOSE OF DEFI
CoinDesk Yearn's Staked Ether Token yETH Gets Mixed Results on Govenance Poll The non-binding poll seeks to do a temperature check of sentiment toward launching yETH. |
Coin Telegraph Uniswap launches iOS mobile wallet in select countries The decentralized exchange had previously stated that Apple was not allowing the app to be listed on the App Store. ... |
REGULATION
The Block SEC summons Justin Sun, Soulja Boy and YouTuber Austin Mahone over Tron The BitTorrent owner, YouTube singer and 'Crank That' rapper have 21 days to reply in court to charges made by the U.S. markets regulator . ... |
NFTS
Bitcoin.com Mastercard Launches NFTs to Support Emerging Musicians Through Web3 Technologies According to Mastercard, the payments giant has launched non-fungible tokens (NFTs) that grant access to the Mastercard Artist Accelerator program, designed to ... |
Decrypt.co Goblintown Creator Trashes NFT Artwork, Disables Trading in Royalties Stand Goblintown NFTs went viral last year after holders rambled about piss. Now some of them are unhappy with the creator's surprise moves. |
The Block Bored Ape whale says they were scammed out of millions after also announcing the sale of more than two dozen of the popular NFTs created by Yuga Labs. ... |
PRODUCT UPDATES AND PARTNERSHIPS
CoinDesk Solana’s Crypto-Ready ‘Saga’ Smartphone Goes on Sale May 8 Solana's crypto smartphone, called Saga, represents a bet on mobile as the future of crypto adoption. |
INVESTMENT PRODUCTS
CoinDesk Ondo Finance Plans Yield-Generating Stablecoin Alternative For Institutional Investors The new stablecoin-like token, OMMF, will be backed by conventional money market funds and is available only to qualified purchasers and accredited investors. B... |
HACKS, EXPLOITS, AND SCAMS
The Block Bitrue exploited for $24.4 million in tokens The exploiter swapped for 8,858 ether but kept most of the stolen SHIB and HOT tokens. The post Bitrue exploited for $24.4 million i... |
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