Crypto News: Ethereum Worries, Atomic Wallet Hack, INJ, LDO, & MORE!!

[Music] foreign Bureau Weekly News Roundup here are the top stories in crypto this week crypto Market drop coins and tokens experience an explosive rally thanks to elections in Turkey before crashing in response to multiple macro factors which way is the market headed next ethereum concerns emerge dormant wallet addresses wake up after East Wales start staking and the community discusses liquid staking protocol centralization what does this

mean for eth fun for everyone another crypto exchange is rumored to be insolvent following the reported arrest of a key defy CEO while Atomic wallet users report missing funds everything you need to know crypto layoffs accelerate nanson Gemini and finance announce Mass layoffs despite the recent crypto rallies suggesting that the crypto industry continues to struggle how will this impact the market and a closer look at

last week's top performing cryptos and where they could be headed next all this and More in just a moment good morning afternoon or evening thank you for tuning in my name is Guy none of what follows is financial advice and here is the news last week the crypto Market rallied out of the gates and then fell flat on its face the initial rally is widely believed

to have been because of the tentative debt ceiling deal that was reached by U.S politicians over the weekend however the rally has a much clearer correlation to the outcome of turkey's elections for context crypto is very popular in Turkey this is primarily because of the inflation the country's currency has seen over the last few years this inflation has its roots in president erdogan pressuring the central

bank to lower interest rates to fight inflation when it should really be raising them instead if you look closely at crypto prices you'll notice that they started to pump right after erdogan won the runoff elections last Sunday this was predicted by macro analyst Western Nakamura who had found that the crypto Bull Run in 2020 began because of capital flight out of the Turkish lira into BTC

unfortunately this time the capital flight was insufficient to kick-start another bull market just a few days later crypto prices fell back to where they were prior to the election this correction appears to have been due to concerns about the possibility that the tentative debt ceiling deal wouldn't be passed it appears that crypto recovered after U.S politicians in both the House and Senate passed the debt ceiling

deal but the recovery didn't result in another rally this could have been because there was lots of hawkish rhetoric coming from the FED increasing investor expectations of another rate hike this month what's interesting is that there appears to have been a sudden sell-off in eth relative to BTC after President Biden finally signed the debt ceiling bill into law on Saturday this sell-off only lasted about eight

hours but it seems to have marked a short-term high in the East BTC hinting of further downside now this is interesting because the last time the debt ceiling was raised was back in December 2021. in the six months that followed the U.S treasury refilled its bank account by sucking liquidity out of the markets it appears that eth was the hardest hit by this and it only

bottomed out when the treasury was finished obviously this wasn't the only Factor impacting eth's price at the time but it could foreshadow similar price pressures in the coming months we'll be doing a video about exactly what the debt ceiling could mean for the crypto Market later this week so make sure you're subscribed and ping that notification Bell now BTC likewise appears to be at a pivotal

point in its price action its price recently painted yet another head and shoulders and the Bollinger band indicator is squeezing both on the daily taken together this suggests there could be lots of volatility in btc's price this week most likely to the downside you can learn more about how to do technical analysis by subscribing to our dedicated trading Channel using that link up in the top

right but back to eth some of you may have seen that lots of Ico era wallets have become active after being dormant for years the most recent one had been dormant since 2015 and was sitting on 8 000 eth at Ico 8000 eth was worth just two and a half thousand dollars today that 8 000 eth is worth almost 15 million dollars naturally there's been no

shortage of theories about why these dormant wallet addresses have suddenly woken up these range from the possibility that the person had found the long-lost seed phrase to their wallet to the possibility that they are preparing to dump their eth for a massive profit however it's more than likely that these early etholders are waking up so they can start staking their ease ethereum validators can currently earn

over eight percent per year by staking youth eight percent on 15 million dollars worth of eth works out to a whopping 750 000 per year in passive income that is money now this is something that Celsius seems to be hyper aware of because the bankrupt crypto platform recently decided to self-stake the more than 460 000 if it had recently unstaked from Lido Finance with an eth

stack worth over 800 million dollars Celsius will make over 64 million per year let's just hope that money goes to the creditors and not to the lawyers the eight percent plus staking rewards for each have resulted in a record amount being staked over the last month according to stakingrewards.com around 16 of east's total Supply is now being staked this number will likely continue to rise if

the staking rewards remain high there's just one problem and that's that many eth stakers are opting to use centralized exchanges and liquid staking protocols to stake their eth as reported by decrypt the amount of heat being staked with Lido Finance increased over 12 percent in the last 30 days leading to concerns of Staker centralization ethereum veterans have recently started sounding the alarm warning that if this

trend continues ethereum's censorship resistance could suffer that's because authorities could potentially start to pressure liquid staking protocols to comply with financial regulations such as kyc on eth stakers on that note some of you might recall that there was a rumor back in March that Lido Finance had been served by the SEC presumably on the grounds that the regulator believes the ldo token is a security luckily

these rumors have remained just that but this could change if Lido continues to grow thankfully the ethereum community is actively discussing solutions to this growing problem one solution is to create new liquid staking protocols that compete with Lido some have suggested orchestrating a vampire attack essentially incentivizing each stakers to switch to a different protocol others have pointed out that the bigger problem is the difficulty of

staking eth in the first place for reference you need 32 eth to run an ethereum validator along with expensive hardware and a bulletproof internet connection the problem there is that you can't use regular staked in D5 protocols and speaking of defy a protocol called multi-chain has been having some issues recently for those unfamiliar multi-chain is a D5 protocol that makes it possible to transfer tokens between

almost any blockchain according to D5 llama it supports over 50 blockchains and holds 1.5 billion dollars in crypto a couple of weeks ago rumors started to circulate that members of the multi-chain team had been arrested in China including the CEO multichain recently confirmed that it had lost contact with its CEO and has been unable to access critical infrastructure as a result causing issues for the protocol

what's scary is that on-chain data revealed that the multi-chain team had started sending large amounts of the protocol's multi-token to crypto exchange gate dot IO this led to speculation that the exchange was somehow connected to the protocol which led to concerns about its solvency what's even scarier is that some users reported having issues withdrawing their assets from gate.io leading to insolvency concerns in response gate issued

a statement insisting that there are no solvency concerns and that users can verify this themselves using the exchanges proof of reserves gate also pointed out that it was in the process of registering with Hong Kong's regulator to offer crypto trading to retail investors in the territory now logically The Exchange wouldn't be doing this if it was truly insolvent because the regulator would immediately identify these issues

and reject their registration application you can learn more about Hong Kong's retail crypto regulations using the link in the description I digress now another crypto entity that's been under scrutiny lately is atomic wallet one of the most popular mobile and browser wallets a few days ago users of the wallet started reporting that all their funds had somehow been drained Atomic wallet subsequently confirmed these reports in

the Twitter post Unchained sleuth Zack xbt has been closely tracking the drainage and his most recent update suggests that at least 35 million dollars of crypto has been stolen from users chances are this figure will be a lot higher by the time you see this video it's unclear how many users have been affected more importantly it's still unclear what the origin of the exploit is over

the weekend Atomic wallet provided an update that the team is working closely with blockchain security companies and blockchain analytics companies to try and identify the issue and track where all the stolen funds are going it's widely believed that the exploit is related to the issues that crypto auditing company leased Authority found in atomic wallet early last year the thing is that Atomic wallet apparently patched those

issues right after still it's possible that there are other issues that even least Authority didn't pick up my guess is that the exploit has something to do with all the supposedly high-value scam coins that are being sent to crypto wallets I recall seeing some of these in my Atomic wallet a couple of years ago and I know of many people who tried to claim these scam

tokens only to have their wallets drained what we could be seeing is the same thing but on a much larger scale hundreds of atomic wallet users claiming a scam coin and the exploiter only steamed the funds of some of them years later in any case it's an evolving situation and I'll be sure to keep you updated as more details come to light for now I strongly

suggest moving any crypto you have on a hot wallet to a cold wallet preferably a hardware wallet note that you should always do this with crypto you're not actively trading you can check out the coin Bureau deals page for discounts on the best hardware wallets out there link is down below now if all of the above wasn't bad enough it looks like crypto companies are still

struggling to make ends meet despite the recent crypto rally blockchain analytics company nanson recently announced that it would be laying off 30 of its Workforce in what its CEO is calling a difficult decision the company explained that there were two reasons for the downsizing the first is that it had scaled too quickly and had started focusing on things that were not part of its core product

the second is that the crypto Market has taken a toll on the company's individual and institutional revenue streams what stood out to me was that the company confirmed that it had enough Runway to continue operating with its current team for quote several years call me crazy but this suggests that nanson believes the crypto bear Market will continue to drag on for much longer than many are

expecting another crypto company that recently cut its Workforce is Gemini now this makes sense considering that the Exchange took an indirect hit when crypto hedge fund three arrows Capital went down this is because it used Genesis trading for its earn product the end result of this is that 900 million dollars is stuck in limbo to add insult to injury The Exchange is also being sued by

the SEC according to kaiko Gemini has seen the second largest decline in trading volume among the largest crypto exchanges since late last year bittrex experienced the largest Decline and it recently announced it would be winding down its U.S operations funnily enough bittrex is now also being sued by the SEC regardless some crypto media Outlets are starting to speculate whether Gemini could be at risk of bankruptcy

this is unlikely considering that the Winklevoss twins are extremely wealthy something that even these reports acknowledge the two co-founders recently lent 100 million dollars to Gemini to keep it going and it's a similar story with binance which is of course the largest cryptocurrency exchange by a wide margin The Exchange will reportedly be cutting 20 of its Workforce in June but its Chief Communications officer recently clarified

that this is a quote regular Talent density audit sounds a bit like a rapid unscheduled disassembly if you ask me anyway at the same time he suggested that the layoffs were related to The increased regulatory scrutiny that binance has been facing recall that the exchange was recently sued by the cftc it's believed that the settlements for this and other lawsuits will cost The Exchange a pretty

penny ironically enough binance CEO CZ had warned users to stay away from crypto exchanges that are laying off employees back in November to be fair The Exchange is still hiring for hundreds of positions this suggests that the upcoming layoffs could just be Finance getting rid of its underperforming employees even so it's clear that crypto companies of all kinds are struggling and recent reports suggest that binance's

market share has been falling this will likely eat in to binance's bottom line and if crypto market conditions continue to deteriorate the talent density audits could turn into actual layoffs so turning to the charts we can see that btc's price is slowly but surely approaching the Bollinger band moving average on the weekly you'll notice that btc's price has stayed above this key moving average since the

start of the year if BTC breaks below it it could mean many weeks of red last week's top performing cryptos were Lido Finance injective protocol Quant Network mexy's MX token and pancake swap starting with Lido Finance its ldo token appears to have rallied in response to the news that the amount of eth being staked with Lido continues to rise make a dow also announced that the

amount of Lido staked being used to collateralize dye increased by more than 25 percent last week it looks like it will be a make or break week for ldo because it's pushing up against a key price level and also the Bollinger band moving average on the weekly if ldo gets above it we could see many more weeks of green if it gets rejected we could as

with BTC see multiple weeks of red next up we have injective protocol whose inj coin appears to have rallied in response to the news that the decks had integrated polygon assets but the project had released a new mainnet upgrade and had completed its first hackathon not bad for one week's work inj continues to be in a very strong medium-term uptrend which could continue for another week

or two however its weekly price action appears to be painting a falling three methods Candlestick pattern this is a bearish reversal pattern that could result in a retest of recent lows as for Quant Network meanwhile qnt appears to have rallied in response to the news that the project will be participating in various cbdc presentations and initiatives in contrast to inj qnt's medium-term price action looks fairly

poor it's below the key Bollinger band moving average on the weekly and appears to be in the middle of a squeeze as well this squeeze could send qnt much higher or much lower being below the moving average suggests the latter when it comes to Maxi's MX token it's not entirely clear why it's pumping it appears to be related to the exchange's recent meme coin listings because

MX is an exchange token there's not much point in analyzing its price because it ultimately depends on what Maxi is doing and finally we have pancake swaps cake token which appears to have pumped in response to the news that the decks had launched a crypto game called pancake protectors to be blunt cake looks 10 times worse than qnt on the weekly chart it was recently squeezed

down to its lowest price since listing on binance and this downward momentum is showing no signs of slowing down I suspect this has something to do with the continued decline in busd's market cap now as a reminder if you enjoy these weekly best performers then you have to subscribe to our Insider telegram Channel there you get a daily rally report of the best performing coins link

is of course in the description and that is all for today's coin Bureau weekly crypto review so if you enjoyed it you know what to do hit that like button subscribe button and Bell icon too if you're looking to help those games grow then the coin Bureau deals page is where you should go there are thousands of dollars in bonuses trading discounts and products to help

you trade like a pro you can find the link to that resource and many others in the description below thank you so much for watching and I'll see you all in next week's episode foreign [Music]