Decentral Block Post

Zooko Wilcox is stepping down as the CEO of Electric Coin Company, the team behind privacy-focused cryptocurrency Zcash (ZEC).

ECC announced a change in leadership on Monday, with Josh Swihart promoted to replace Wilcox.

Swihart previously worked at ECC as one of the firm’s vice presidents of growth from October 2018 to August 2023 but took four months off working as a part-time investor at investment services firm Denver Angels in Colorado, according to LinkedIn.

“We feel confident in Josh’s leadership — in finding product-market fit, unlocking new partnerships and collaboration, improving Zcash usability and increasing adoption,” ECC said in a Dec. 18 post.

“In addition to a vision for ECC and an optimistic passion for Zcash, Josh has a strong entrepreneurial, technical and product background,” the firm added.

The S&P 500 Index (SPX) rose 2.49% last week, extending its string of weekly gains to seven weeks, the longest such winning streak since 2017. However, Bitcoin (BTC) could not maintain its momentum and succumbed to profit-booking by the bulls. Trading resource Material Indicators said in an X (formerly Twitter) post that “ year-end profit taking and tax loss harvesting” will prevail in the short term.  

However, a crash is unlikely because several analysts expect the United States Securities and Exchange Commission to approve one or more spot Bitcoin exchange-traded fund (ETF) applications in January. If that happens, it could prove to be a game-changer for the sector.

VanEck CEO Jan van Eck said in an interview with CNBC that Bitcoin is likely to hit a new all-time high in the next 12 months. He expects Bitcoin to become an accompaniment to gold.

What are the important levels that could arrest the fall in Bitcoin and altcoins? Let’s analyze the charts to find out.

S&P 500 Index price analysis

The S&P 500 Index witnessed a strong bull move in the past few days, which carried the price above the overhead resistance of 4,650 on Dec. 13.

Update December 18, 2023 10:09PM UTC: The Zilliqa mainnet has been restored and is now fully operational. 

The $383-million Zilliqa ecosystem is experiencing disruptions due to a “critical situation” impacting the network.

According to a Dec. 18 post by developers, the Zilliqa blockchain faces a “technical issue that has resulted in an interruption to block production.” Blockchain data shows that daily transactions on Zilliqa subsequently plunged by roughly 50% to 30,906, compared to an average of 61,000 in the past few days.

Activity has since paused, with the last transaction occurring at around 11 am UTC, with no new blocks being produced since then. “The team are working hard to recover the network,” wrote Matt Dyer, Zilliqa’s CEO, in a follow-up.

Related: Zilliqa teases Web3 gaming console, Funko teams up with Warner Bros

Irys, a prominent layer-2 network within the Arweave ecosystem, allegedly has plans to fork the Arweave network with the intent to “drop the dataset and reset the token supply,” according to a Dec. 17 post by Arweave founder Sam Williams.

He alleges that despite the existence of a safe upgrade mechanism with Arweave, Irys developers plan to proceed with a hard fork that “appears to be a play motivated by greed.” The Arweave founder wrote:

“Given this situation, Arweave intends to remove the Irys bundlers from the trusted set on the main Arweave gateways. This will lead to significant delays before user data is available.”

In a rebuttal post the same day, Irys developers stated, “Are we developing new provenance tech? You bet your ass we are,” accusing Arweave developers of “active censorship” in response to alleged efforts to “deplatform Irys from Arweave.” Developers added, “Stay tuned to this space; we have plenty of powerful new features we’re thinking through, and we can’t wait to share them.”

In the past two days, the Arweave token has lost over 20% of its value and is now trading at $8.90, partly due to the unveiling of the allegations. Irys is currently the largest layer-2 network on Arweave, accounting for over 90% of the blockchain’s 16 million daily transaction volume. However, the network’s volume has fallen by 31% since the allegations surfaced.

The Solana memecoin frenzy continues as a trader turns $226,000 into well over $1.6 million by gambling on a token with a beanie-wearing dog as its mascot. 

Between Dec. 13 and 15, a crypto trader bought over 19 million Dogwifhat (WIF) tokens, a dog-themed memecoin, as it debuted on the markets within the Solana network. According to blockchain analytics firm Lookonchain, the trader bought the tokens at an average price of $0.01137. Currently, the tokens’ total value hovers at around $1.69 million, making the trader about $1.47 million in profits within five days. 

As a new wave of interest hits the Solana ecosystem, memecoins based on the network have started to deliver massive gains. On Dec. 8, a dog-themed memecoin called Bonk (BONK) became the third-largest memecoin by market capitalization, joining fellow dog-themed memecoins Shiba Inu (SHIB) and Dogecoin (DOGE) in the top three and overtaking Pepecoin (PEPE), the frog-themed memecoin. 

Bonk’s price jumped by 370% in the 30 days leading to Dec. 11, going from $0.0000028 to $0.00002 at the time of writing. The token outpaced the growth of fellow dog memecoins SHIB and DOGE, which grew 20% and 35% in the same period. 

Related: Trader allegedly saw over 5,000x gains after Ankr protocol hack

Blockchain-based lending has regained momentum in 2023, with the value of active tokenized private credit now sitting at $582 million — a staggering 128% increase from a year ago.

While still far from its peak of $1.5 billion in June 2022, according to data from real-world asset loan tracker RWA.xyz, the resurgence could signal that loan-seekers are looking for blockchain-based alternatives to traditional financiers amid a recent rise in interest rates.

The current average percentage rate is 9.64% for blockchain-based credit protocols, while financiers have been offering small business bank loan interest rates between 5.75% and 11.91%, according to a Dec. 1 report by NerdWallet.

The loans being taken out aren’t small either. RWA.xyz has tracked $4.5 billion in blockchain-based loans across 1,804 deals, which means the average loan comes out at about $2.5 million.

One of the most noteworthy loan-seekers of late is United Kingdom-based asset management firm Fasanara Capital, which took out a $38.3 million loan from Clearpool at a sub-7% base annual percentage yield (APY).

A Solana Saga phone appears to have sold for as much as $5,000 on eBay — more than eight times its retail cost — after a frenzy to pick up a free memecoin airdrop caused the devices to sell out on the official website for the first time.

According to a Dec. 16 listing on the online marketplace eBay, two unopened, in-box phones have recently sold, listed for $5,000 or “best offer,” while another device has sold for $3,316 or “best offer.”

An additional 20 devices managed to sell for over $2,000 over the weekend, a more than $1,400 markup on the original $599 price tag on the Solana Mobile website.

Since the device launched on May 8, each new Saga phone has come with a free 30 million Bonk (BONK) token airdrop. Last week, traders began noticing that a price surge in Bonk meant that the free airdrop had become more valuable than the device itself, causing the phone to sell out as of Dec. 16.

Buyers of these scalped Saga phones are likely a bet that the price of the memecoin will continue to appreciate even further. In the last 30 days, Bonk surged nearly 800% as the token gained mass traction among memecoin enthusiasts and opportunistic traders.

Bitcoin’s (BTC) eight-week winning streak is likely to end as the price is down nearly 4% this week. The recent weakness indicates profit-booking by traders but it does not change the short-term uptrend. The pullback will also help reduce the froth that may have been building.

After the initial shakeout, strong hands are likely to re-enter the crypto market as the macro environment remains bullish for risk-assets. The decision by the Federal Reserve to pause rate hikes and possibly reduce rates in 2024 could further boost demand for crypto products.

However, nothing goes up in a straight line. After sharp rallies, traders generally book profits and shift their focus to other coins. As Bitcoin takes a breather, traders' are likely to turn their attention to select altcoins.

What are the coins that may attract buyers in the short term? Let’s look at the charts of the top-five cryptocurrencies that are showing promise.

Bitcoin price analysis

Bitcoin is getting squeezed between the 20-day exponential moving average ($41,370) and the downtrend line. This sets the stage for a sharp breakout within the next few days.

Bitcoin’s (BTC) rally has been taking a breather for the past few days but its strong rally in 2023 has not gone unnoticed. A survey of United States financial services companies by crypto firm Paxos showed that 99% of the firms were putting as much or more focus on crypto projects this year as compared to previous years.

Analysts are increasingly bullish on Bitcoin and the crypto space in 2024. Bitwise senior research analyst Ryan Rasmussen made ten predictions for the crypto industry in 2024 in an X (formerly Twitter) post on Dec. 13. He believes Bitcoin will soar to $80,000 in 2024 and “more money will settle using stablecoins than using Visa.”

Along with crypto-specific issues, expectations of rate cuts by the Federal Reserve in 2024 are adding to the bullish sentiment. Arthur Hayes, the former CEO of crypto exchange BitMEX, reiterated his bullish view on crypto in an X post on Dec. 14. He said that the fiat was “a filthy piece of trash” and there was no reason not to be long crypto.

What are the vital support levels that could arrest the fall in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin has been stuck between the downtrend line and the 20-day exponential moving average ($41,221) for the past few days. This tightening of the price action suggests that a range breakout is possible in the short term.

Memecoin hopefuls have been snapping up Solana’s crypto phone in droves after a recent price hike for Solana memecoin Bonk (BONK), which has risen more than 1,100% in the last 30 days. 

Since the Solana phone was launched on May 8, new owners have been able to claim a free 30 million airdrop of the memecoin, but a recent rise in the token’s price has presented an interesting arbitrage opportunity for buyers.

“Solana phone sales have > 10x’d in the past 48 hours, and are now on track to sell out before the new year,” wrote Solana co-founder Raj Gokal in a Dec. 15 post to X (formerly Twitter).

At current prices, the 30 million BONK airdrop is worth an astonishing $877 — $278 more than the current $599 price tag of the Saga phone — making it one of the more bizarre arbitrage opportunities available for crypto enthusiasts. 

Bonk has posted an outsized gain of 1,100% in the last 30 days, according to CoinGecko. The recent price performance saw Bonk’s market cap flip that of competitor memecoin Pepe. Memecoins are not often known for their stability.

The token of decentralized finance protocol SafeMoon has fallen 31% in five hours after the company behind it filed for bankruptcy.

SafeMoon officially applied for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” in a Dec. 14 filing to the United States Bankruptcy Court for the District of Utah. The voluntary petition was filed by attorney Mark Rose, with Judge Joel Marker assigned to the case.

A screenshot of a letter to employees purportedly written by the firm’s chief restructuring officer surfaced on Reddit, explaining that its bankruptcy run was why it could no longer pay employee wages before the filing.

“You will need to file a claim in the bankruptcy court for your unpaid wages,” the document read.

The latest blow comes only a month after the U.S. Securities and Exchange Commission charged SafeMoon, its founder Kyle Nagy, its CEO John Karony, and its chief technology officer Thomas Smith, with violating securities laws in what the regulator described as “a massive fraudulent scheme.”

Bitcoin (BTC) faced a sharp correction on Dec. 11, plummeting as much as 8% to a four-month low at $40,150, wiping out the gains of the past seven days. 

This drop in BTC’s price has triggered a marketwide reevaluation, prompting a debate on the potential for altcoins to spearhead the next significant rally in the cryptocurrency landscape.

Market experts and analysts believe the recent price crash is a part of the ongoing price cycle, and after two months of a bullish surge, a correction was inevitable.

Analysts’ insights into Bitcoin’s recent pull-back

Will Clemente, a crypto analyst and co-founder of Reflexivity Research, interpreted the market correction as a means to shake out weak positions and reduce the highly leveraged crypto markets, attributing this volatility to a necessary phase in market evolution.

Additionally, Kaleo, co-founder of the LedgArt nonfungible token (NFT) project, took to X (formerly Twitter) to express their belief that the recent downturn was “nothing more than a healthy correction after a massive parabolic extension.”

Bitcoin (BTC) and altcoins are a no-brainer bet in the current macro climate, Arthur Hayes says.

In a post on X (formerly Twitter) on Dec. 14, the former CEO of exchange BitMEX said that investors have “no excuse” to short crypto.

$1 million Bitcoin still in play in 2024 "great pivot"

Going long crypto is the key to success as markets bet on the United States Federal Reserve lowering interest rates next year, Hayes argues.

On Dec. 13, at the latest meeting of the Federal Open Market Committee (FOMC), Fed policymakers voted to continue a freeze on interest rate hikes.

While broadly expected, a subsequent speech and press conference with Chair Jerome Powell sparked talk of impending rate cuts — an event known as a “pivot” in policy.

Update (Dec. 14 at 2:45 pm UTC): This article has been updated to clarify that Ledger has reportedly fixed the issue.

The front end of multiple decentralized applications (DApps) using Ledger’s connector, including Zapper, SushiSwap, Phantom, Balancer and Revoke.cash were compromised on Dec. 14. Nearly three hours after the security breach was discovered, Ledger reported that the malicious version of the file had been replaced with its genuine version around 1:35 pm UTC.

Ledger is warning users "to always Clear Sign" transactions, adding that the addresses and the information presented on the Ledger screen are the only genuine information. “If there’s a difference between the screen shown on your Ledger device and your computer/phone screen, stop that transaction immediately.”

SushiSwap chief technical officer Matthew Lilley was among the first to report the issue, noting that a commonly used Web3 connector was compromised, allowing malicious code to be injected into numerous DApps. The on-chain analyst said the Ledger library confirmed the compromise where the vulnerable code inserted the drainer account address.

Lilley blamed Ledger for the ongoing vulnerability and compromise on multiple DApps. The exec claimed that Ledger’s content delivery network was compromised, with JavaScript being loaded from the compromised network.

Gemini Earn creditors are fuming over a proposed reorganization plan that could see their promised Bitcoin (BTC) payouts effectively slashed to about 30% of what they’re worth at current market rates.

In a post on X (formerly Twitter), Gemini Trust revealed it sent creditors an email on Dec. 13 outlining the proposed plan, which has now been put up for a vote.

Under the proposed plan, creditors will receive a payout equal to their Earn crypto balances as of Jan. 19, 2023 — the date that Gemini’s cryptocurrency lending partner Genesis Global Capital filed for bankruptcy.

Some observers, including Bloomberg exchange-traded fund analyst James Seyffart, described the plan as “brutal,” given that the prices of Bitcoin and Ether (ETH) were only $20,940 and $1,545 at the time. The assets have since rallied to $42,750 and $2,250, respectively, at the time of writing.

This would mean that in the worst-case scenario where creditors are given a 61% recovery, each Bitcoin that a creditor had on Earn would only be given $12,773, or 30% of what a Bitcoin is worth today.

Decentralized finance protocol Yearn.finance is hoping arbitrage traders will return $1.4 million in funds after a multisignature scripting error, resulting in a large amount of the protocol’s treasury being drained.

“A faulty multisig script caused Yearn's entire treasury balance of 3,794,894 lp-yCRVv2 tokens to be swapped,” according to a Dec. 11 GitHub post by Yearn contributor “dudesahn.”

The error occurred while Yearn was converting its yVault LP-yCurve (lp-yCRVv2) — earned from performance fees on vault harvests — into stablecoins on decentralized exchange CowSwap.

Yearn suffered significant slippage when it received 779,958 DAI yVault (yvDAI) tokens from the trade, resulting in a 63% fall in liquidity pool value from its treasury — relative to lp-yCRVv2’s spot price at the time.

Yearn confirmed the $1.4 million figure in a note to The Block.