Ethereum Fees Decline to Lowest Levels in Four Years

Ethereum transaction fees have fallen dramatically, reaching a level not witnessed since 2020, which indicates a significant decrease in network activity. This notable decline highlights a shift in on-chain demand for Ethereum.

Gas prices have also seen a significant reduction, with the median gas price falling to 1.61 Gwei, and even dipping to 1.19 Gwei on February 17. This drop marks the lowest gas fees recorded in over four years, with the exception of a brief decrease in late 2024.

The transaction volume on Ethereum has similarly suffered, as indicated by the seven-day average dropping to $4.19 billion, a staggering 46% decline from the week prior. Instead of enhancing network usage, the reduced fees seem to reflect a diminishing interest in Ethereum transactions.

ETH’s value has also plummeted since the beginning of the year, losing 18% and falling behind several major alternative coins. Analysts have pointed out that lower transaction fees often relate to reduced speculative trading activities, which could suggest a bearish outlook for Ethereum moving forward.

Tether’s Bold Move: $1.24 Billion Investment in Energy Sector

Tether is once again in the news, but this time, it’s not just about cryptocurrencies. The company is acquiring a 51% stake in Adecoagro for a whopping $1.24 billion. This investment signals Tether’s intention to diversify its portfolio beyond digital assets and into the energy sector.

Adecoagro is recognized for its contributions to agriculture, bioenergy, and renewable energy sources. By investing in this company, Tether not only aims for profitability but also emphasizes sustainability. Given that the blockchain sector consumes substantial energy, Tether’s focus on renewable solutions could revolutionize its image within the industry.

This strategic investment could be transformative. Tether is positioning itself as a leader in green energy innovation, striving to mitigate the energy consumption concerns tied to cryptocurrencies. As a prominent player in digital finance, Tether’s shift towards sustainability could attract more acceptance from mainstream investors and regulatory bodies.

By integrating renewable energy resources into its operations, Tether is advocating for broader acceptance of cryptocurrencies. With governments and institutions criticizing the environmental impact of crypto, Tether aims to make digital assets more appealing through this proactive stance on sustainability.

Brazil Leads the Way with the World’s First XRP ETF

Brazil has made a remarkable leap in cryptocurrency adoption by approving the first-ever XRP-based exchange-traded fund (ETF). Managed by Hashdex, this fund will be listed on the B3 stock exchange, providing investors with direct exposure to XRP.

The ETF, designated as the Hashdex Nasdaq XRP Index Fund, is currently in its preparatory phase, with the launch date yet to be confirmed. Administration of the fund will be handled by the Brazilian brokerage firm Genial Investimentos.

Silvio Pegado, Ripple’s Managing Director for Latin America, commended Brazil’s regulatory framework. He pointed out that the practical applications of XRP and rising institutional interest make it an ideal candidate for an ETF. Pegado believes that Brazil’s progressive approach could pave the way for further innovations within the crypto landscape.

With Brazil’s crypto market expanding rapidly, the approval of this ETF aligns well with recent trends. A Chainalysis report highlighted that from July 2023 to June 2024, approximately $90 billion in digital assets were deposited by Brazilian users, with stablecoins comprising nearly 60% of total volume, while Bitcoin, Ether, and other altcoins made up the remainder. As cryptocurrency adoption soars, Brazil is solidifying its status as a significant entity in the global crypto economy.

SafeMoon CTO Admits Guilt in Multi-Million Dollar Fraud Case

Thomas Smith, the Chief Technology Officer of SafeMoon LLC, has pled guilty to his involvement in a substantial cryptocurrency fraud scheme. He acknowledged his role in conspiracy charges related to securities and wire fraud, which included misleading investors and misappropriating funds from SafeMoon’s liquidity pool.

Smith formally entered his plea on February 20 in a Brooklyn federal court. The court has recommended that U.S. District Judge Eric Komitee accept his plea. The charges are serious—wire fraud conspiracy can incur a maximum sentence of 20 years, while securities fraud conspiracy can lead to 25 years.

Filed by the U.S. Department of Justice and the SEC in November 2023, the case also implicates SafeMoon’s CEO Braden John Karony and project founder Kyle Nagy. Prosecutors accuse them of duping investors by falsely asserting that SafeMoon’s liquidity pool was locked while they secretly accessed and misused the funds.

Authorities allege that over $200 million was siphoned from SafeMoon’s liquidity pool, with reports indicating that those funds were used for luxury real estate and upscale vehicles. At its peak, SafeMoon’s market capitalization reached between $5.7 billion and $8 billion, but it suffered a nearly 50% drop in value in April 2021 when news emerged regarding the liquidity pool.

Strategy Raises $2 Billion to Bolster Bitcoin Holdings

Strategy, formerly known as MicroStrategy, is set to raise $2 billion through a convertible debt offering aimed at expanding its Bitcoin reserves. This initiative underscores the company’s unwavering commitment to cryptocurrency investments.

On February 18, the firm announced details of the offering, which consists of private sales of convertible senior notes due in 2030. These notes will be made available to institutional investors in accordance with Rule 144A of the Securities Act. The specific terms will depend on market conditions; however, the company has made it clear that the funds are intended for general corporate purposes, particularly for acquiring more Bitcoin.

The notes will be unsecured and will feature a 0% interest rate. Investors will have the option to convert them into cash, shares of Strategy’s Class A stock, or a combination thereof. Additionally, an option is available for initial buyers to purchase an extra $300 million in notes. Starting in 2027, Strategy may choose to redeem the notes for cash if its stock price exceeds 130% of the conversion price. Investors can also request repayment in cases of major corporate changes or on March 1, 2028.

Bybit Experiences Historic $1.4 Billion Crypto Hack

Bybit has been the victim of the largest hack in cryptocurrency history, losing a staggering $1.4 billion in digital assets. This breach has reverberated throughout the crypto community, being described by experts as the most significant theft ever recorded in the sector.

ZachXBT, an on-chain investigator, was the first to identify suspicious outflows, prompting further investigation into multiple addresses receiving substantial transfers. Bybit later confirmed that unauthorized Ethereum had been transferred out of its cold wallets, attributing the cybersecurity breach to a masked user interface spoofing attack. Despite the enormity of the loss, the exchange assured clients that other wallets were secure.

Bybit’s CEO, Ben Zhou, addressed the incident, explaining that the hackers had manipulated the transaction interface, presenting a legitimate address to deceive signers into authorizing the transfer. However, the actual signing message altered the smart contract logic of Bybit’s ETH cold wallet, effectively allowing the hackers to gain control and redirect the funds to an unknown address.

Zhou reassured customers that withdrawals were not compromised and called upon blockchain experts to assist in tracking the stolen assets. The crypto community has since come together to investigate the breach and aid in recovery efforts.

Sam Bankman-Fried Claims Political Bias Influenced Fraud Sentence

Sam Bankman-Fried, the disgraced founder of FTX, insists that his 25-year prison term was the result of political interference. In a recent interview conducted from the Metropolitan Detention Center in Brooklyn, he criticized the presiding judge, the Department of Justice, and the Biden administration’s overall approach to cryptocurrency regulation.

In an interview with The New York Sun, Bankman-Fried voiced his frustrations regarding U.S. District Judge Lewis Kaplan’s decisions, arguing they were politically charged. He echoed sentiments akin to those of former President Donald Trump, accusing Kaplan of bias.

Furthermore, he claimed that previous FTX executives who cooperated with prosecutors received leniency due to their Democratic affiliations. He suggested that his trial was symptomatic of a broader political agenda operating within the DOJ under President Joe Biden.

Once a significant contributor to Democratic campaigns, Bankman-Fried has distanced himself from the party, criticizing the administration’s regulatory measures that he believes are detrimental to the crypto industry. He also stated that his financial support for Biden was an effort to counteract progressive influences, a stance he no longer upholds.

Argentine President Refutes Allegations Following $LIBRA Collapse

Javier Milei, the president of Argentina, has dismissed claims of impropriety in the fallout following the collapse of $LIBRA, a cryptocurrency that surged in value before crashing after his social media endorsement. He contends that his post was not an endorsement and blames political adversaries for exploiting the situation for their own purposes.

Last Friday, Milei shared a post on X (formerly Twitter) about $LIBRA, indicating that the endeavor aimed to strengthen Argentina’s economy by supporting small enterprises. His message included a link to a website selling the token, accompanied by his signature phrase, “Long live freedom.” Following his endorsement, the cryptocurrency’s value skyrocketed, only to plummet shortly after, resulting in significant losses for investors. The president subsequently deleted the post, stating he had doubts about the project’s validity.

During a segment on Todo Noticias, an Argentine news outlet, Milei defended his actions, asserting that he had acted in “good faith.” He compared the investment opportunity to gambling, arguing investors were aware of potential risks. He firmly stated that merely disseminating information does not equate to endorsing a financial product.

Milei’s administration further clarified that he had no involvement in the creation or promotion of $LIBRA. The controversial post was removed to avoid misunderstandings, but this incident has sparked backlash from political rivals, who accuse him of acting irresponsibly.

Frequently Asked Questions

What caused the significant drop in Ethereum transaction fees?

Ethereum transaction fees have dropped drastically due to reduced network activity, which indicates declining demand for on-chain transactions.

How is Tether’s investment in Adecoagro affecting the crypto market?

Tether’s $1.24 billion investment in Adecoagro signals a shift towards renewable energy solutions in the crypto sector, addressing concerns over energy consumption and enhancing the industry’s sustainability image.

What is the significance of Brazil’s approval of the XRP ETF?

Brazil’s approval of the first XRP-based ETF signifies a progressive regulatory approach and enhances institutional investment opportunities in the crypto market, reflecting the growing acceptance of digital assets in mainstream finance.