Dump and Pump 🎢

Plus, 🤯 Flash crash chaos, 😬 Crypto firms hit hard by SEC, 💫 2021 stars shine again, and more!

November 25, 2024

Good Monday! I’m Juan Aranovich, managing editor of Unchained.

In today’s edition:

  •  🌊$585M wiped out

  • 🤯 WBTC hits record low

  • ⚖️ $426M average fine — crypto penalties soar under Gensler

  • 💵 Cantor Fitzgerald buys in

  • 🏛️ SEC shuffle continues

  • 🤔 CBDCs, sanctions, and crypto — Bessent’s big agenda ahead

  • 🎉 2021 tokens see a comeback

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What’s Poppin’?

By Sage D. Young, Veronica Irwin and Tikta

Crypto Liquidations Top $500 Million as Bitcoin Falters

Major cryptocurrencies saw a volatile 24 hours as liquidations across centralized exchanges topped $500 million.

Data from CoinGlass shows that of the day’s $585 million in crypto liquidations, $468 million came from traders in long positions as bitcoin fell to an intraday low of $95,830 late on Sunday.

The largest single liquidation order took place on Binance on a BTC/USDT pair valued at $13.24 million.

Over a shorter time frame of four hours, Sandbox’s native token SAND accounted for the majority of crypto liquidations. GameFi tokens appeared to defy the broader market selloff, with SAND gaining as much as 65% over 24 hours. 

After the sell-off, bitcoin quickly rebounded and is now changing hands for $98,100.

WBTC Sinks Under $5,000 in Flash Crash on Binance

The price of Wrapped Bitcoin (WBTC) saw a sharp and sudden drop to an all-time low of $5,200 on crypto exchange Binance before quickly rebounding to above the $97,800 mark.

The flash crash took place on Nov. 23. One of the primary causes of flash crashes is a sudden shortage of buyers in the market, known as a liquidity crunch, or market manipulation tactics such as spoofing, where traders place fake orders to manipulate prices.

Last week, Coinbase said it would delist WBTC citing failures to meet its listing standards. WBTC custodian BiT Global accused Coinbase of doing so in order to propel its own product, Coinbase Wrapped BTC (cbBTC).

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Over Half the SEC’s $8.2 Billion in Record Penalties Came From Terraform Labs

The U.S. Securities and Exchange Commission (SEC) collected $8.2 billion in financial remedies this year — the highest amount in SEC history. Around 52% of that amount is attributable to the SEC’s jury trial win against Terraform Labs and its co-founder and CEO Do Kwon.

“The Division of Enforcement is a steadfast cop on the beat, following the facts and the law wherever they lead to hold wrongdoers accountable,” said SEC Chair Gary Gensler in a statement on Nov. 22.

Gensler is set to step down from his position on Jan. 20, 2025.

According to a report from Social Capital Markets, the SEC’s 11 enforcement actions on crypto firms in 2024 resulted in an average fine of $426 million, far surpassing the average fine in prior years.

Howard Lutnick’s Cantor Fitzgerald Acquired 5% Ownership Stake in Tether: Report

Howard Lutnick, who is President-elect Donald Trump’s pick for commerce secretary as well as the CEO of Cantor Fitzgerald, has reportedly secured a deal for the financial services firm to acquire a 5% ownership stake in stablecoin issuer Tether.

The Wall Street Journal reported that the equity stake was potentially valued at as much as $600 million.

Cantor Fitzgerald's involvement lends credibility to Tether, which has faced scrutiny over its reserves and regulatory compliance. 

The report cited a business associate of both firms saying that Lutnick will use his political clout to try to defuse threats facing Tether. However, another spokesperson called the notion that Lutnick might use his new position to influence legislation “laughable.”

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When Democratic SEC Commissioner Jaime Lizárraga announced on Friday that he planned to step down from the agency on Jan. 17 because of his wife’s health issues, the crypto community jumped to the conclusion that Trump would have sole discretion to choose two SEC commissioners — one to replace outgoing chair Gary Gensler, and the other to replace Lizárraga. 

However, that appears unlikely to be the case now. 

Donald Trump has nominated hedge fund manager Scott Bessent for the role of Treasury Secretary, according to a post from Trump on Truth Social Friday.

As Secretary, Bessent would be one of the most important voices after Trump himself on the United States economy, and would have the power to sanction foreign crypto projects, as well as play a role in pursuing or discouraging the creation of a central bank digital currency (CBDC). Cabinet nominees are almost always approved by the Senate. However, Trump posted on Truth Social earlier this month that he could use recess appointments to push through his nominees in a “timely manner” if the Senate delays the process. 

Tokens that pumped in the most recent crypto bull market in 2021 — namely, Ripple Labs’ XRP, Stellar Lumens’ XLM, and Cardano’s ADA — are outpacing the market over the past day after the chairman of the US Securities and Exchange Commission, Gary Gensler, announced on Thursday that he will be resigning from his position on Jan. 20. 

Daily Bits… ✍️✍️✍

  • 💸 Memecoin promoters on Pump.fun sparked outrage by using NSFW shock content, including extreme acts and explicit videos, to attract investors, drawing sharp criticism from the crypto community and raising concerns about moderation.

  • 🔒 Alexey Pertsev, Tornado Cash developer sentenced for money laundering, had his detention extended by a Dutch court, complicating his ability to prepare an appeal against his five-year prison sentence.

  • 🚫🇫🇷 Polymarket blocked access for French traders after the country's gaming authority launched an investigation into its compliance with gambling laws, highlighting regulatory challenges for prediction markets.

  • 📊 Cboe Global Markets announced the launch of cash-settled index options tied to spot Bitcoin ETFs on Dec. 2, offering institutional and retail investors a simplified way to hedge or speculate on Bitcoin's price movements.

  • ✂️ Sky Mavis, creator of Axie Infinity, laid off 21% of its staff in a move to refocus on core products and prepare for accelerated growth in 2025, despite claiming strong financial health.

The $$$ Corner…

  • 🌱 Former Coatue fintech head Michael Gilroy and Coinbase board member Gokul Rajaram are co-founding a venture firm, which is aiming to raise $500 million  — with the formal fundraising process starting in 2025 — to invest in early-stage fintech and software startups.

What Do You Meme?

📈 Your Market Update 📉

  • BTC is up 1.3%, trading at $98,136

  • ETH is up 5.1%, trading at $3,490

  • BTC dominance: 55.24%

  • Crypto market cap: $3.51T

*All data as of today, 07:40 am ET. Source: CoinGecko

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