Litecoin’s X Hack, USDT Movies, & Animecoin
Before diving into the news, let’s address some listener questions. Jeremy asked about government Bitcoin auctions and whether bidders can pay more than market price. Technically, yes, but it’s unlikely since most people wouldn’t overpay for Bitcoin they could buy cheaper on the market. Let’s break down how these auctions work.
Government auctions are typically conducted by agencies like the U.S. Marshals Service, selling seized assets through platforms like GovDeals and GSA Auctions. Bidders pay with wire transfers or other verified means, and while open to the public, these auctions rarely result in Bitcoin selling for more than market value unless there’s a unique collectible aspect.
Martin, possibly from Bulgaria, reminded us that Bulgarian authorities seized 213,519 Bitcoin in 2017. While worth $500 million then, it’s valued at approximately $19.3 billion today. However, the Bulgarian government’s use of this Bitcoin remains unclear, sparking speculation that they may be holding.
Finally, Edward I think joked about risk management, emphasizing the classic “buy low, sell high” approach. Simple advice, but emotions often lead traders to do the opposite. Let’s dive into today’s news.
Litecoin’s Social Media Hack
On January 11th, Litecoin’s official X (Twitter) account was compromised. Hackers promoted a fraudulent token claiming to be a Litecoin-Solana hybrid, directing users to scam links. The Litecoin team regained control and removed the compromised account. Unfortunately, these incidents are part of a growing trend targeting crypto projects on social media, with scams ranging from phishing links to fake airdrops.
My Take: Social media hacks highlight the critical need for cybersecurity in the crypto space. Platforms and projects must prioritize securing accounts to protect users from these increasingly sophisticated scams.
Singapore Blocks Polymarket
Singapore’s Gambling Regulatory Authority (GRA) has blocked access to Polymarket, citing its operation as an unlicensed gambling service under the 2022 Gambling Control Act. This adds to Polymarket’s challenges, including a $1.4 million CFTC settlement in 2022 and an FBI raid on its CEO’s home in 2024. Despite these hurdles, Polymarket continues to grow, with 350,000 monthly users in December 2024.
My Take: Polymarket is an interesting platform where governments around the world, as well as citizens, are trying to come to grips with its implications. Should a company be allowed to profit from betting on the overall state of affairs in a country, or should there be regulations governing it?
Trader Cobb on Markets
The crypto market is maintaining its position above critical support levels, with $91,000 highlighted as a pivotal price point for Bitcoin. This level is being closely monitored, as a break below it could lead to a swift drop to $84,000, potentially within days. While short-term volatility has been a factor, the overall macro trend for Bitcoin remains bullish, supported by its dominance in the market at 58.34%. This dominance underscores a cyclical pattern, as Bitcoin continues to hold significant influence over the broader market dynamics.
The total cryptocurrency market cap currently sits at $3.18 trillion. Within this, the market cap excluding Bitcoin is at $1.33 trillion, indicating that altcoins are declining at a faster rate than Bitcoin. These movements are reflected in the recent volatility observed in Bitcoin's dominance chart, which has shown fluctuations throughout November and December before stabilizing around the 58% range.
Trading activity has also seen increased market pullbacks. Weekly timeframes have shown some retracement, with traders reporting instances of being stopped out due to sudden price reversals. Despite this, the monthly trend remains upward for both Bitcoin and the broader market, suggesting continued strength in the long-term outlook. Historical patterns reveal that the market tends to perform well following major bullish catalysts, with momentum building over time.
The broader sentiment emphasizes the importance of perspective. While short-term fluctuations can create challenges, the overarching trend points to sustained growth, particularly as markets continue to build on their higher timeframes. This indicates that while short-term volatility might persist, the long-term potential for Bitcoin and the crypto market as a whole remains strong.
Tether Expands into AI Filmmaking
Tether, the dominant stablecoin issuer with $137 billion in circulation, is diversifying into AI-driven filmmaking. The company has hired 30 specialists and aims to grow to 200 by mid-2025. This move aligns with Tether’s broader strategy of integrating AI technologies into its operations, including data services, tokenization, and lending.
My Take: Tether’s pivot into AI filmmaking is unexpected but demonstrates the company’s ambition to diversify. While intriguing, it raises questions about its core focus and whether this venture aligns with its expertise.
Animecoin’s Fandom Revolution
Arbitrum and Azuki’s collaborative Animecoin project unveiled its tokenomics, dedicating 50.5% of its 10 billion token supply to community initiatives. Animecoin aims to create a decentralized ecosystem centered on anime culture, uniting over a billion fans worldwide. The token’s price surged by 111% following the announcement.
My Take: Animecoin is a creative example of how blockchain can transform niche communities into decentralized networks. If executed well, it could redefine fan engagement and ownership.
Crypto Market Prices
Bitcoin: $91,160 (-4% 24H)
Ethereum: $3,025 (-7.5% 24H)
XRP: $2.43 (-2.5% 24H)
BNB: $671 (-3% 24H)
Solana: $175 (-7% 24H)
Dogecoin: $0.32 (-5.3% 24H)
Cardano: $0.912 (-8% 24H)
Tron: $0.22 (-7.2% 24H)
Total Market Cap: $3.11T (-6.3%)
Bitcoin Dominance: $1.8T
Ethereum Dominance: $364B
Final Thoughts: A Bloody Market Start
January has been a challenging month for crypto, with widespread losses across the board. We await clarity from regulatory and macroeconomic developments, resilience will remain key. Stop the Dry January, have a drink and impulsively smash the buy button (joking).
Happy hodling, everyone!