Ripple’s Dubai Breakthrough, Binance’s Billion-Dollar Deal & SEC’s ETF Delays
Good morning, everyone. Today, I’m checking in from Miami, catching up on listener questions and diving into the latest crypto news. Let's get right into it.
Lessons from the Crypto Trenches
A listener, Alberto, shared his experience of getting scammed out of $1,500 on an Arbitrum token but also turning $400 into $900 in a week. This highlights a crucial lesson: mistakes are inevitable in crypto. Many consider losses as "tuition fees"—learning experiences that come with understanding wallets, trading, and researching projects. While scams are painful, they can also serve as valuable learning moments for traders navigating the crypto ecosystem.
Another listener, Jackson, asked how to start a crypto account after getting denied by Crypto.com. A fellow listener suggested Exodus, which doesn’t require personal identification. While decentralized exchanges (DEXs) and non-custodial wallets offer workarounds. Non-KYC platforms come with risks, including potential fraud and lack of regulatory protections.
Silk Road, Ross Ulbricht, and the Ethics of Crypto Privacy
A Canadian listener raised the contentious issue of Ross Ulbricht and the Silk Road. While some argue that Ulbricht’s platform was merely a decentralized marketplace, others see him as an Escobar-level drug kingpin who facilitated illicit trades, including weapons and assassination services.
This case mirrors discussions surrounding Tornado Cash, a crypto mixing service. While privacy is a fundamental right, authorities argue that such platforms enable illicit activities like money laundering and terrorism financing. The debate remains unresolved: should developers be held accountable for how their technology is used? The implications stretch beyond crypto and into broader discussions about free speech, privacy, and regulation.
Bitcoin as a Reserve Asset?
Listener Keith weighed in on the idea of seized Bitcoin being held as a reserve asset. He questioned whether it makes a difference if governments hold Bitcoin for future gains versus selling it for immediate profit. Some jurisdictions, like El Salvador, are already treating Bitcoin as a long-term treasury asset, while in the U.S., seized Bitcoin is often auctioned off. The core issue here is whether governments should embrace crypto as a strategic reserve or liquidate it for short-term benefits.
The Business of Creating Cryptocurrencies
A listener, Alex, asked how individuals who create cryptocurrencies make money. The primary ways include:
Pre-Mining or Allocating Tokens: Many developers retain a portion of the tokens before launch, allowing them to profit if the token gains value. However, excessive allocation can be seen as a red flag by investors.
Liquidity Provision on DEXs: By providing liquidity for decentralized exchanges (DEXs), creators can earn fees on trading volume. This is a common way to bootstrap liquidity and sustain token trading activity.
Staking Rewards in Proof-of-Stake Networks: Developers and early adopters who stake tokens in proof-of-stake (PoS) projects can earn rewards over time, generating passive income while securing the network.
Transaction Fees and Utility: Some cryptocurrencies, especially those designed for smart contracts or DeFi applications, generate revenue through transaction fees. These fees are distributed to validators, developers, or governance treasuries.
Meme coins like Dogecoin, Pepe, and Floki have thrived by leveraging online culture and community hype. While some started as jokes, their developers have monetized them through exchange listings, branded merchandise, and partnerships. The key takeaway? If you're thinking of launching a token, focus on utility, transparency, and long-term sustainability.
Crypto vs. Traditional Investing: How Long Should You Hold?
Another listener asked about holding periods for investments. The real question isn't how long to hold but what your goals are. Some prioritize long-term security over high-risk, high-reward plays. Whether investing in the S&P 500 or Bitcoin, the approach should align with financial objectives rather than blindly following market trends.
Should Beginners Use a Wallet or Brokerage Account?
For newcomers, using a brokerage or ETF (e.g., Bitcoin or Ethereum ETFs) is a straightforward way to gain exposure. However, learning how to use a self-custodied wallet is a valuable skill. While it may seem complex, understanding how to manage private keys and decentralized transactions is crucial in the evolving digital economy.
Crypto News Roundup
Ripple Expands in Dubai: Ripple secured a license to provide crypto payments in the Dubai International Finance Center (DIFC). The UAE’s proactive regulatory approach has attracted major crypto firms, positioning the country as a hub for digital assets.
SEC’s Crypto Stance Softens: The SEC has delayed decisions on multiple ETF applications, including those for Dogecoin, XRP, Solana, and Litecoin. Analysts remain optimistic about approval, with projected chances as follows:
Litecoin ETF: 90%
Dogecoin ETF: 75%
Solana ETF: 70%
XRP ETF: 65% The final decisions are expected by October.
OKX’s European Expansion: OKX acquired a firm with an MIFID2 license, positioning itself to offer regulated derivatives in the EU.
Binance’s $2 Billion Investment: Binance secured its first institutional funding from Abu Dhabi-based MGX, focusing on AI, blockchain, and fintech innovations.
Bolivia Embraces Crypto for Energy Imports: Facing a fuel crisis and dwindling USD reserves, Bolivia is using cryptocurrency to settle energy imports.
Russia’s High Net-Worth Crypto Experiment: The Bank of Russia proposed allowing individuals with over $1.14 million in investments to trade crypto, despite maintaining a restrictive stance on general crypto transactions.
Crypto Prices (as of 9:27 AM EST)
Bitcoin: $82,903 (-0.5% 24h, -8% weekly)
Ethereum: $1,899 (-0.5% 24h, -16% weekly)
XRP: $2.33 (+5% 24h)
BNB: $603 (+8% 24h)
Solana: $126.35 (+1.1% 24h)
Cardano: $0.731 (-2.6% 24h)
Dogecoin: $0.17 (+0.2% 24h)
Total Market Cap: $2.7 trillion (-0.3% 24h)
Bitcoin Market Cap: $1.64 trillion
Ethereum Market Cap: $229 billion
Happy HODLing, everyone.