Weekly Update: 30th of October

Hodl Team
30 October 2024
Welcome to our weekly update, where we provide insights into the latest developments in the digital assets market.

What happened between the 23rd and 30th of October?

  • Microsoft plans to vote on a proposal to add Bitcoin to its balance sheet in its December shareholder meeting. Read more
  • According to the Wall Street Journal, stablecoin issuer Tether is being criminally investigated by US agencies. Read more
  • Collapsed exchange FTX settles Bybit lawsuit for $228 million. Read more
  • The AI sector in the digital assets market experienced a boom as investors combined memes with AI. Read more

Microsoft to vote on Bitcoin investment

On the 24th of October, a filing by Microsoft with the Securities and Exchange Commission (SEC) revealed that shareholders would vote in their December shareholder meeting if the firm should add Bitcoin to their balance sheet for further diversification. The idea is proposed by the National Center for Public Policy Research (NCPPR), an American conservative think tank and shareholder of Microsoft. Although it's an exciting development for a firm as big as Microsoft to play around with the idea, the board of directors has already stated that shareholders should vote against the proposal. So, the chances are incredibly small that Microsoft will add Bitcoin to their balance sheet anytime soon.

Supposedly, Tether is being investigated

On the 25th of October, the Wall Street Journal (WSJ) reported that stablecoin issuer Tether, the firm behind USDT, is being criminally investigated for the use of Tether by third parties to fund illicit activities or launder money generated by those activities. Moreover, according to the WS, the Treasury Department is considering sanctioning Tether as its asset is being used by sanctioned entities. However, the news publishers didn’t mention any sources. Tether has denied all the allegations with its CEO Paolo Ardoino stating “As we told the WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”

FTX settles Bybit lawsuit for $228 million

On the 24th of October, collapsed digital exchange FTX settled its lawsuit with exchange Bybit. The legal battle started in November 2023 when FTX filed a $1 billion lawsuit against Bybit and Mirana,  an investment division of the Bybit exchange. According to FTX, both organizations prematurely withdrew almost $327 million in cash and digital assets just before FTX's eventual demise by using "VIP" access and a tight connection with FTX management. Through this settlement, Bybit will enable FTX to sell around $53 million worth of BIT tokens to Mirana and withdraw $175 million in digital assets that were stored on the exchange. These funds will be used to repay former customers and creditors.

AI sector gains momentum

During the week of October 23–30, the AI sector within the digital asset industry gained momentum as the AI chatbot ‘Truth Terminal’ drew strong investor interest. Initially launched earlier this year as a Twitter bot promoting the fictional ‘Goatse Gospel’ religion, Truth Terminal later led to the creation of the GOAT meme token, with the chatbot itself accumulating over $800,000 in assets. The project gained notoriety in July 2024 after a substantial Bitcoin donation from venture entrepreneur Marc Andreessen. Influential figures like Coinbase CEO Brian Armstrong and BitMEX founder Arthur Hayes commented on the project’s impact, even suggesting separate wallet configurations to grant the bot greater autonomy. This convergence of AI and meme coin sectors sparked a surge in AI-meme coins and boosted interest in AI projects overall.

In other digital assets news

  • Denmark’s Tax Law Council recommends introducing a bill that will tax investors on their unrealized crypto gains, beginning as early as 2026.
  • The Dutch government is looking for public input on a draft that would require crypto service providers to disclose client data with the tax office under EU legislation.

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