The Last Fortnight in Crypto - October (Part 2)

Ethereum Gas Fees Hit New 2023 Low Amidst DeFi and NFT Activity Decline

Ethereum's gas fees hit a new low for 2023 on October 8, dropping to 8.8 Gwei, the lowest since October 2022. This decline is attributed to reduced activity in DeFi, NFTs, layer-2 networks, and Telegram bots.

NFT trading volumes have fallen to two-year lows, and Telegram trading bots have seen decreased activity. Even major players like Uniswap, 1inch, and MetaMask have reduced their gas consumption. Top gas spenders and layer-2 networks also spent 30% less than the previous week.

Ethereum turned inflationary in September 2023 as gas fees dropped. Ethereum's supply is growing at a daily rate of around 1,450 ETH, resulting in an annual inflation rate of 0.44%. The "ultrasound money" meme, which once emphasized Ethereum's anti-inflationary nature, is now in question. These changes are significant in the cryptocurrency world, and their implications for Ethereum's future remain to be seen.

Cointelegraph Apologizes for False Bitcoin ETF News

Cointelegraph has issued a formal apology to its readers for mistakenly posting unverified news about a spot Bitcoin ETF on social media. The incident highlighted the importance of source verification and maintaining journalistic integrity in cryptocurrency reporting.

The misinformation originated from an unverified screenshot shared on the X platform, falsely claiming that the SEC had approved BlackRock's iShares spot Bitcoin ETF. While Cointelegraph did not publish an article with this incorrect information, it was erroneously shared on social media without the necessary verification and editorial approval.

Here's a brief timeline of events:

• The rumor was brought to Cointelegraph's attention at 13:17:30 UTC through a Telegram channel.
• An employee posted the unverified report on X at 13:24:16 UTC.
• Readers reported the issue, leading to internal discussions.
• An edit was made to clarify the unconfirmed nature of the information at 13:54:14 UTC.
• Cointelegraph promptly reached out to relevant parties and removed the post.
• Confirmation that the report was incorrect came at 14:32:23 UTC, leading to a retraction.

Cointelegraph deeply regrets the error and is taking measures to prevent such incidents in the future. They are conducting an audit of their social media management processes, emphasizing source verification before posting breaking news. They are also engaging in discussions with employees and making structural changes to ensure accurate and responsible reporting.

This incident underscores Cointelegraph's commitment to journalistic standards in the cryptocurrency community.

Australian Government Proposes Licensing for Crypto Exchanges

Australia is moving to regulate the cryptocurrency sector by proposing a licensing requirement for crypto exchanges. Here's what you need to know:

Licensing Requirement: Cryptocurrency exchanges in Australia will need an Australian financial services license (AFSL), aligning them with existing financial service laws.

Financial Thresholds: Exchanges must meet financial thresholds like holding $5 million in digital assets and/or $1,500 for individual users.

Operational Standards: Exchanges must meet solvency and cash reserve requirements, submit financial records, and ensure effective dispute resolution.

Minimum Standards: The digital assets industry will adhere to minimum standards for contracts, custody, and risk management.

International Alignment: The regulations aim to match global standards and reduce the risk of market collapses.

Concerns: Delays in implementation have raised concerns about the industry's competitiveness and user protection.

Consumer Protection: Licensing will help protect consumers from scams and ensure money transfers go to reputable operators.

Positive Progression: Industry leaders see this as a positive step, ensuring a level playing field for crypto platforms.

Australia's move towards cryptocurrency regulation aims to enhance accountability, security, and trust in the sector, in line with traditional financial services.

Sam Bankman-Fried Faces Uphill Battle Against Fraud Charges

In a trial that's captured the cryptocurrency world's attention, Sam Bankman-Fried, the former crypto mogul, is facing increasingly challenging prospects as he fights criminal fraud charges. The trial, now in its third week, has seen prosecutors marshal compelling testimony and documentary evidence against him.

Key Highlights:

Strong Prosecution Case: Government lawyers have presented damaging testimony and evidence from multiple insiders, portraying Bankman-Fried as the mastermind behind a scheme to divert billions of dollars in customer funds toward personal expenses and risky investments.

Lack of Credibility Challenges: So far, Bankman-Fried's defense team has failed to raise substantial questions about the credibility of the prosecution's witnesses or their accounts. Legal experts believe the case has only grown stronger for the prosecution.

Inner Circle Testimonies: Key witnesses from Bankman-Fried's inner circle have portrayed him as a manipulative swindler who directed one of the largest financial frauds in history. Testimony from Caroline Ellison, the CEO of his crypto hedge fund, Alameda Research, was especially impactful. She recounted the fraudulent actions, with prosecutors backing her account with documentary evidence.

Challenges for the Defense: Bankman-Fried's defense team appeared to struggle during cross-examination, with their efforts to discredit the witnesses falling short. The defense has faced unfavorable rulings from Judge Lewis A. Kaplan, adding to their difficulties.

The Future: As the trial continues, Bankman-Fried's attorneys may be seeking to extend the proceedings, giving him more time to consider the prosecution's evidence. The crucial decision on whether Bankman-Fried will testify himself is looming and could be a make-or-break moment for his defense.

In this straightforward fraud case, the prosecution's evidence has built a strong case against Bankman-Fried, who now faces an uphill battle as the trial progresses. His decision on testifying will be a high-stakes gamble that could determine the trial's outcome.