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Weekly Crypto Wrap: 24th April 2024

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Rachael Lucas
Weekly Crypto Wrap: 24th April 2024

TLDR

  • Anzac Day Remembrance: Lest we forget.
  • Mobile app update: Fiat and crypto withdrawals are now available.
  • The Bitcoin Halving 2024: It’s a wrap!
  • Bitcoin’s resilience shines amid market volatility.
  • Blackrock's spot Bitcoin ETF joins exclusive club after 70 straight days of growth.
  • Australian inflation shows signs of moderation in Q1 2024.
  • JPMorgan CEO Dimon optimistic on US economy, calls for harmony.

Anzac Day Remembrance on April 25th

On Anzac Day, we pay tribute to the courage and sacrifice of those who have served and continue to serve in the Australian and New Zealand armed forces.

It is a day of remembrance, reflection, and gratitude for the bravery and resilience displayed by our servicemen and women in times of conflict and peacekeeping missions.

As we gather in spirit to honour their legacy, let us also reaffirm our commitment to upholding the values of friendship, loyalty, and selflessness that define the Anzac spirit.

Lest we forget.

CEO’s corner

The Yin and Yang of Defi: Where empowerment meets responsibility.

Op-Ed co-authored by Caroline Bowler, CEO & Charlie Sherry, Head of Finance of BTC Markets.

In the world of decentralised finance (DeFi), we find ourselves at the crossroads of empowerment and responsibility.

DeFi, a disruptive force challenging traditional power dynamics, ventures to the core of our economic structures through financial services, all while operating beyond the grasp of any single entity.

The allure of DeFi lies in the autonomy it affords individuals or groups, a stark contrast to the centralised control prevalent in traditional finance. Yet, this empowerment comes hand in hand with a weighty responsibility.

For every advantage DeFi offers, there exists a corresponding challenge. We acknowledge these contradictions and explore pathways for the industry's progression.

Read the full article here.

BTC Markets announcements

BTC Markets named as a finalist in the 2024 Finnies for ‘Excellence in Crypto.’

BTC Markets has made the final cut for the 2024 Finnies for Excellence in Crypto and Digital Currencies/Wallets/Exchanges, reaffirming our dedication to innovation and exceptional service.

The Finnies, Australia's premier annual fintech awards, honour achievements across the fintech industry and its supporting services.

Congratulations to the entire team at BTC Markets for their dedication and hard work in making it to the finals. Additionally, in 2022, our CEO Caroline Bowler was honoured with the Fintech Female Leader of the Year award, further highlighting our commitment to excellence in the crypto sector.

ICYMI: Mobile app update: Fiat and crypto withdrawals are now available.

Last week, we unveiled the latest update to our mobile app, introducing a convenient and secure feature for fiat and cryptocurrency withdrawals. This empowers users to effortlessly withdraw balances and track transfer statuses through a comprehensive history list.

This feature is now live in our latest release. Update your mobile app from the App Store (iOS) or Google Play Store (Android).Discover more about this exciting mobile app update here.

'Guess the Bitcoin Halving Date' winners announced.

Our 'Guess the Bitcoin Halving Date' competition has officially concluded. Congratulations to @enthusiast_xrp, @_dccc07, and @TBG9270584 for correctly commenting on our X post and winning AU$100 worth of Bitcoin each!

Thank you to everyone who participated in our social media event and stayed tuned for further promotions.

Ticker News ‘Crypto Corner’: BTC Markets CEO Caroline Bowler talks RWA with Lisa Wade from DigitalX.

In the latest episode of 'Crypto Corner' on Ticker News, BTC Markets CEO, Caroline Bowler and Mike Loader engage in an in-depth discussion with Lisa Wade, CEO of DigitalX.

Join us as we explore real-world asset tokenisation (RWA). Step into the future as we investigate the transformative power of fractionalised assets spanning various classes like cash, properties, commodities, venture capital, private debts, and bonds.

Tune in to our YouTube channel or Ticker News to watch the latest episode.

BTC Markets CEO explores DeFi risks and Web 3 tokenisation at Money 20/20 Asia.

This week, our CEO Caroline Bowler participated in Money 20/20 Asia in Bangkok, alongside prominent figures in the global finance industry.

Yesterday, she engaged in a thought-provoking panel titled ‘When the Earth and Moon Collide: Risk Lessons from DeFi’, moderated by René Michau, Global Head of Digital Assets at Standard Chartered. Alongside panellists Christine To, Head of Treasury at Parity, and Dina Mainville, President of Collisionless, Caroline provided valuable insights into the risks associated with decentralised finance (DeFi).

Tomorrow, Thursday, 25th April, Caroline will join David Packham, Founder and CEO of Chaintai Network Services, on a panel discussion titled ‘Web 3: The Pros and Cons of Tokenisation’. This segment will be facilitated by Khai Lin Sng, Co-Founder and Chief Investment Officer at Alta Alternative Investments.

As discussions around Web 3 and tokenisation continue to shape the future of finance, Caroline's participation underscores BTC Markets' commitment to exploring and understanding the opportunities and challenges presented by emerging technologies.

BTC Markets in the news

Cointelegraph: Where will Bitcoin's price be at the next halving in 2028?

Caroline Bowler, the CEO of BTC Markets told Cointelegraph that she was looking to external predictions from investment banking firms such as Standard Chartered which said the price of Bitcoin could reach as high as $200,000 by the end of 2025.

“In the short window of time we’ve seen with ETF involvement, there has been ongoing support for that thesis,” she said.

The Block: Crypto in red after Israeli missiles reportedly hit Iran.

“Continued geopolitical unrest may fuel further risk-off sentiment in financial markets, potentially leading to continued selling pressure on cryptocurrencies as investors seek safer assets,” BTC Markets’ Head of Marketing Rachael Lucas told The Block. “This could overshadow the bull run that cryptocurrencies have been experiencing in the first quarter of the year.”

On the other hand, Lucas said there is also a chance that investors could later turn to Bitcoin and other cryptocurrencies as an alternative store of value in case tensions further arise in the region.

The Bitcoin Halving

The Bitcoin Halving 2024: It’s a wrap!

The recent Bitcoin Halving event, marking another significant milestone in the crypto space, showcased diverse perspectives on its implications within the community.

On April 20th, as the 840,000th block was mined, the Bitcoin network underwent its fourth halving, reducing mining rewards from 6.25 BTC per block to 3.125 BTC.

Amidst this milestone, industry leaders offered insights into the event's broader impact and its resonance within the crypto ecosystem.

BTC Markets Bitcoin Halving

Emin Gün Sirer, Founder of Avalanche, offered nuanced perspectives on the halving, highlighting both its technological implications and its broader market effects. While acknowledging the halving's discrete nature as potentially detrimental from a security standpoint, Gün Sirer also recognized its role in stimulating market speculation and renewed interest in crypto assets. He forecasted substantial growth for the crypto space, suggesting a potential tenfold increase in the long run.

Paolo Ardoino, CEO of Tether, tempered expectations regarding immediate price impacts following the halving, emphasising broader market sentiments and the potential influence of spot Bitcoin exchange-traded funds (ETFs). Despite the halving's iconic status, Ardoino suggested that its pricing effects were likely already factored in, with the real focus lying in the adoption of ETFs by institutional investors.

Justin Hyun, Director of Investments at The Open Network (TON) Foundation, underscored the halving's significance in highlighting the immutable nature of code within the crypto ecosystem. As newcomers experienced the halving's automated execution without human intervention, Hyun emphasised its role in illustrating the decentralised ethos of crypto, where code dictates operational rules.

Mick Roche, a Senior Trader at Standard Chartered's crypto arm, Zodia Markets, highlighted the prevailing geopolitical landscape's influence, suggesting that current events, such as the perceived easing of tensions in the middle east, exert a more substantial impact on Bitcoin's price dynamics compared to the halving.

Eric Demuth, CEO of Bitpanda, echoed this sentiment, emphasising Bitcoin's growing reliance on broader market sentiments. He noted the absence of a clear pattern of retail trading activity surrounding the halving, underscoring the increasing convergence between crypto and traditional markets. Demuth emphasised the overlap in investor demographics, highlighting the shared interest among individuals trading stocks and tech equities in the crypto space.

Additionally, the anticipation surrounding U.S. regulatory approval for spot Bitcoin ETFs was cited as a significant factor in Bitcoin's recovery from previous downturns in 2022, further illustrating the intertwined relationship between regulatory developments and cryptocurrency market dynamics.

The halving event, while a technical milestone, serves as a broader reminder of crypto's foundational principles and its potential for future growth and adoption. As the industry continues to evolve, the halving remains a testament to the resilience and innovation driving the crypto space forward.

Source: BTC Markets Bitcoin Halving

State of crypto

  • Bitcoin’s resilience shines amid market volatility.
  • NYSE considers 24-hour trading model in response to crypto market trends.
  • Spot Bitcoin ETFs continue net inflows after a rough last pre-halving week.
  • Bitcoin ETFs demand turns negative around Bitcoin Halving.
  • Blackrock's spot Bitcoin ETF joins exclusive club after 70 straight days of growth.
  • Fidelity Digital Assets revises medium-term outlook for Bitcoin.

Bitcoin’s resilience shines amid market volatility.

Despite facing significant market turbulence over the weekend, Bitcoin managed to reclaim most of its lost ground by the end of the week, albeit closing with a 1.10% loss on Monday.

On Friday, Bitcoin reached a low point of US$59,600, attributed to escalating geopolitical tensions in the Middle East. Currently, Bitcoin is trading positively, showing a 2.82% increase for the week.

Bitcoin surged to a peak of US$67,232 this week, buoyed by upward momentum in the US markets. This momentum was underscored by the S&P's break from a six-day losing streak, a feat not observed since early October 2022.

Furthermore, the NASDAQ also found support, breaking a three-day losing streak.

NYSE considers 24-hour trading model in response to crypto market trends.

Amidst the continuous trading landscape of cryptocurrency markets, reports emerge of the New York Stock Exchange (NYSE) contemplating a shift towards 24/7 operations. Recent surveys conducted by the NYSE's data analytics team reveal a notable investor interest in the availability of overnight trading options.

The idea gained momentum after the surge in retail investors was observed during and post Covid-19 lockdowns, prompting discussions around potential adjustments to trading hours to accommodate evolving market dynamics.

Spot Bitcoin ETFs continue net inflows after a rough pre-halving week.

Spot Bitcoin exchange-traded funds (ETFs) witnessed a resurgence in net inflows following a challenging period preceding Bitcoin's block-reward halving. Notably, the Fidelity Wise Origin Bitcoin Fund recorded substantial net inflows, indicating continued institutional interest in Bitcoin investment products.

Despite fluctuations in market sentiment, the cumulative net inflow into U.S.-traded spot Bitcoin ETFs underscores sustained investor confidence in the asset class, amidst ongoing regulatory developments and market volatility.

Spot Bitcoin ETF Total Net Flows

Source: TheBlock.co

Bitcoin ETFs demand turns negative around Bitcoin Halving.

In the wake of Bitcoin's fourth halving event, spot Bitcoin ETFs experienced a shift in demand dynamics, with net inflows tapering off after a period of sustained growth. While initial predictions suggested a potential supply shock post-halving, geopolitical tensions and broader market uncertainties appear to have tempered investor appetite for Bitcoin ETFs.

However, industry experts remain optimistic about the long-term prospects of Bitcoin ETFs, anticipating renewed demand as market conditions stabilise and regulatory clarity emerges.

Blackrock's spot Bitcoin ETF joins exclusive club after 70 straight days of growth.

BlackRock's spot Bitcoin ETF continues to make headlines, registering net inflows for the 70th consecutive day. This achievement propels the ETF into the ranks of the most successful exchange-traded funds in history, reflecting sustained investor confidence and institutional adoption.

With a notable increase in assets under management (AUM), BlackRock's ETF underscores the growing significance of cryptocurrency investment products within the broader financial landscape.

Fidelity Digital Assets revises medium-term outlook for Bitcoin.

In a notable shift, Fidelity Digital Assets updates its medium-term outlook for Bitcoin from positive to neutral, citing evolving market metrics and valuation indicators. The Bitcoin Yardstick, akin to traditional stock valuation metrics, suggests Bitcoin is trading at fair value, signalling a potential shift in market dynamics.

While short-term bullish momentum persists, long-term holders' actions and profit-taking behaviours warrant a cautious approach, reflecting the nuanced sentiment prevailing within the crypto market.

The weekly crypto close on Tradingview*

Crypto market sees varied performances, Chainlink and Cardano lead gains.

Chainlink (LINK) and Cardano (ADA) lead with 6.93% and 6.84% gains, followed by Litecoin (LTC) at 5.36% and Ripple (XRP) at 4.19%.

However, Ethereum (ETH), Avalanche (AVAX), Bitcoin (BTC), and Solana (SOL) experience minor losses of 0.31%, 0.53%, 1.43%, and 1.78%, respectively.

Overall, the total crypto market capitalisation declines by 0.18%, ending the week at US$2.319 trillion.

Weekly crypto close

*The weekly trading stats as of Monday, April 22th at 10:00 am AEST, based on data from Tradingview in USD.

Year-to-date in the crypto space from TradingView*

The year-to-date performance summary for selected cryptocurrencies is as follows:

  • Bitcoin (BTC) leads with an impressive gain of 57.48%, maintaining its status as a store of value.
  • Solana (SOL) follows closely behind with a solid increase of 54.57%.
  • Ethereum (ETH) shows a resilient performance with a gain of 41.63%.
  • Litecoin (LTC) holding onto a gain of 18.09%, indicating renewed investor interest.
Year to date

*Year-to-date performance as of Thursday, April 24th at 11:15 am AEST approximately. Based on data from Tradingview in USD.

Crypto Fear& Greed Index

Fear and greed index

Source: alternative.me

The week ahead: economic events

April 24th: Germany Ifo Business Climate Index. United States Durable Goods Orders.

April 25th: Germany GfK Consumer Climate. United States GDP Growth Rate.

April 26th: Japan Interest Rate. United States Core PCE Price Index MoM, Personal Income and Personal Spending.

April 29th: Germany Inflation Rate.

April 30th: China NBS Manufacturing PMI and Caixin Manufacturing PMI. France GDP Growth Rate, GDP Annual Growth Rate and Inflation Rate. Germany GDP Growth Rate and GDP Annual Growth Rate. Italy GDP Growth Rate, GDP Annual Growth Rate and Inflation Rate. Euro Area GDP Growth Rate, GDP Annual Growth Rate and Inflation Rate.

May 1st: Japan Consumer Confidence.

May 2nd: United States ISM Manufacturing PMI, Job Openings and Fed Funds Interest Rate. Australia Balance of Trade.

Market reflections

Overview

In Q1, Australia's inflation began to moderate, reflecting a potential easing of economic pressures. Deloitte's outlook for the Australian economy suggests a period of anticipation as the nation navigates evolving conditions. Despite market expectations, Australian employment experienced an unexpected decline, indicating a divergence from projected trends. Meanwhile, JPMorgan CEO Dimon expressed optimism regarding the US economy but emphasised the need for harmony amidst potential risks. In Japan, the annual inflation rate aligned with market forecasts, signaling stability. However, Germany's manufacturing sector encountered challenges, highlighting deteriorating conditions. The United Kingdom witnessed a decrease in its annual inflation rate, alongside flat retail sales volumes, suggesting a cautious economic landscape.

Australia

  • Australian inflation shows signs of moderation in Q1 2024.
  • Deloitte outlook portrays a state of economic anticipation in Australia.
  • Surprise dip in Australian employment defies market expectations.

Inflation moderates, but insufficient for the anticipated rate cut.

The latest data from the Australian Bureau of Statistics reveals a moderation in inflation, though not as pronounced as market projections, potentially delaying prospects for an imminent interest rate cut by the Reserve Bank.

Annual consumer price index (CPI) figures slowed from 4.1% in December to 3.6% in March, slightly surpassing market expectations of 3.5%. On a quarterly basis, the CPI surged from 0.6% to 1%, also exceeding market forecasts.

While these figures bring inflation closer to the RBA's target range of 2-3%, they may not prompt immediate rate adjustments. Education and healthcare costs emerged as primary contributors to the quarterly increase, with education fees showing the strongest rise since 2012 and medical expenses typical for the March quarter due to fee reviews and adjustments in subsidy thresholds.

However, housing and insurance costs persist as significant inflationary pressures, with insurance premiums reaching their highest annual increase since 2001 and rental costs marking their most substantial rise since 2009.

Deloitte outlook portrays a state of economic anticipation in Australia.

While population growth drives momentum, challenges like geopolitical disruptions and stagnant homebuilding complicate the path to growth. Despite a gradual decline in inflation and resilient labour market indicators, debates swirl around the timing of interest rate adjustments.

The housing crisis looms large, exacerbated by supply-demand disparities and cost escalations. Regional disparities persist, with varied economic trajectories across states and territories.

Queensland and Western Australia show resilience, while New South Wales and Victoria grapple with mortgage burdens. Strategic policy responses and sustained investments are crucial for steering Australia towards sustained prosperity amidst ongoing uncertainties.

Unexpected dip in Australian employment in March.

In March, Australian employment witnessed an unforeseen downturn, diverging from market projections and signalling a shift in labour dynamics.

This unexpected reversal, the first since December 2023, saw a decline in part-time roles, partially balanced by an uptick in full-time positions.

Despite a slight increase in the seasonally adjusted unemployment rate to 3.8%, the labour market exhibits resilience, underpinned by consistent patterns in full-time employment and workforce engagement.

Global

  • JPMorgan CEO Dimon optimistic on US economy, calls for harmony.
  • Japan's annual inflation rate eases, aligning with market forecasts.
  • Germany's manufacturing sector faces challenges, signalling deteriorating conditions.
  • United Kingdom’s annual inflation rate decreases, as retail sales volumes remained flat.

JPMorgan CEO Dimon optimistic on US economy, highlights risks and calls for government harmony.

JPMorgan CEO Jamie Dimon, expressed confidence in the robustness of the US economy, citing strong employment and healthy consumer finances at an event hosted by the Economic Club of New York.

Dimon described the economic boom as "unbelievable," while cautioning about potential economic risks such as rising national debt, inflation, and geopolitical conflicts. Despite his optimism, Dimon emphasised the importance of practitioners in government and called for a more harmonious relationship between lenders and regulators.

He also discussed his surprise at the resilience of oil and gas prices amidst geopolitical tensions. While Dimon has been urged to run for president, he joked about needing an "anointment" for the role.

Additionally, he advocated for bipartisan representation in government and praised Indian Prime Minister Narendra Modi's achievements in poverty reduction.

Japan's annual inflation rate eases, aligning with market forecasts.

In March 2024, Japan's annual inflation rate eased to 2.7%, aligning with market forecasts. This decline from February's peak of 2.8% reflected slower price increases across various sectors. Particularly noteworthy was the moderation in transport, clothing, furniture, healthcare, communication, and culture and recreation prices.

However, stability persisted in food, housing, education, and miscellaneous prices. Of significance, fuel and light prices experienced their smallest drop in a year, attributed to government energy subsidies set to expire in May.

Additionally, the core inflation rate fell to 2.6%, slightly below expectations. On a monthly basis, consumer prices rose by 0.2%, marking the largest increase since October, following two months of stagnant prices.

Germany's manufacturing sector faces challenges, signalling deteriorating conditions.

Contrarily, Germany's manufacturing sector faced challenges in March, with the PMI slipping, signalling deteriorating conditions. This marked the sharpest decline in five months, driven by reductions in employment and purchases, despite improved supplier delivery times.

While new orders and output declined at a slower pace, purchasing costs experienced a notable drop, albeit easing for the fourth consecutive month. Factory gate charges fell faster due to heightened competition.

Despite these hurdles, manufacturers expressed renewed optimism regarding growth prospects over the next 12 months.

United Kingdom’s annual inflation rate decreases, as retail sales volumes remained flat.

In the United Kingdom, the inflation rate decreased to 3.2% year-on-year in March 2024, down from 3.4% in the prior month, though slightly surpassing market expectations of 3.1%. This decline, the lowest since September 2021, was mainly influenced by a deceleration in food inflation. Additionally, prices for restaurants, hotels, and recreation rose at a slower pace. Housing costs continued to decline, while transport prices rebounded marginally.

The annual core inflation rate, excluding volatile items, also dropped to 4.2%, the lowest since December 2021. Meanwhile, monthly consumer prices remained steady.

Shifting focus to retail sales, volumes remained flat in March, missing market expectations of a 0.3% growth, following a revised 0.1% rise in February. Although sales of automotive fuel increased by 3.2% and non-food stores saw a 0.5% rise, these gains were offset by declines in food stores and non-store retailers.

On a quarterly basis, trade increased by 1.9% in the three months to March compared to the previous quarter. Furthermore, on a yearly basis, retail sales rebounded with a 0.8% rise, following a revised 0.3% decline the month before. Despite this, sales remain 1.2% below pre-pandemic levels in February 2020.

Crypto news

Victory Securities reveals proposed fees for Bitcoin and Ether ETFs.

Victory Securities, a Hong Kong investment firm, has revealed the proposed fees for Bitcoin and ETH exchange-traded funds (ETFs) despite the Hong Kong Securities and Futures Commission not yet publishing the list of approved ETF issuers.

If approved by the SFC, Victory Securities proposes fees for ETH and Bitcoin ETF shares in the primary market, ranging from 0.5% to 1% of the total transaction, with a minimum fee of US$850.

For secondary market transactions, online fees are set at 0.15% and telephone fees at 0.25%. These fees are comparable to existing US spot Bitcoin ETFs (ranging from 0.19% to 0.90%) and even lower than Grayscale Bitcoin Trust's 1.5% fee.

Hong Kong recently approved spot ETFs for Bitcoin and ETH. Three offshore Chinese asset managers, including Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), plan to launch their spot Bitcoin and ETH ETFs following this approval.

Trade ETH/AUD on BTC Markets.

Ripple fights back against US$2b SEC fine, calls it "intimidation".

Ripple Labs filed a rebuttal to the Securities and Exchange Commission's (SEC) proposal of nearly US$2 billion in penalties. The SEC had suggested this fine for Ripple's sale of XRP to institutional investors.

However, Ripple argues that the appropriate penalty should be closer to US$10 million. Ripple's Chief Legal Officer, Stuart Alderoty, stated that “the SEC’s ask is just more evidence of its ongoing intimidation against all of crypto in the U.S." Ripple remains confident that the judge will handle the final remedies phase fairly.

The SEC has accused Ripple of illegally raising US$1.3 billion through XRP sales, claiming it's an unregistered security. Last year, Judge Analisa Torres ruled some sales didn't violate securities laws due to a blind bid process, but others did. The SEC alleges Ripple made billions from unregistered sales to institutions. Ripple says it adjusted its sales process after the court ruling to address concerns.

Trade XRP/AUD on BTC Markets.

Solana shows signs of recovery amidst market volatility.

Solana, after enduring a steep decline of almost 40% from its peak of US$210 on March 18th to US$122 on April 13th, has shown signs of recovery. From April 20th, it hovered around US$150, finally surpassing this mark on April 22th, reaching a high of US$157.

The number of active addresses for Solana hit a low of 1.15 million on April 11th, remaining relatively steady until April 15th, when it began to rise. Conversely, non-vote transactions sharply decreased from their recent high of nearly 35 million on April 15th to 23.5 million, aligning with support levels from December. The total value locked (TVL) increased from its low of US$3.46 billion on April 18th, rising back above US$4 billion as of April 22nd.

Despite positive recovery signs, SOL faced resistance near US$200, suggesting a potential corrective phase. If the uptrend ends, SOL might face another downturn towards US$80. However, breaking above the US$174 level could signal a new upward trend.

Buy SOL/AUD on BTC Markets.

Regulation roundup

Thai SEC to ban unlicensed crypto exchanges.

Thai authorities have decided to block unlicensed cryptocurrency exchanges to combat money laundering and online crimes. The Securities and Exchange Commission will provide a list of these exchanges to the Ministry of Digital Economy and Society.

This measure was announced by Thai SEC Secretary-General following a meeting of the Technology Crime Prevention and Suppression Committee on April 19th.

The decision was influenced by similar actions taken in India and the Philippines, where offshore exchanges not complying with local regulations were banned.

The Thai SEC has advised cryptocurrency investors to withdraw their funds from unregistered platforms ahead of an upcoming ban to minimise the impact on the public.

Investors are warned about the risks of using services from unlicensed digital asset operators, including scams and potential involvement in money laundering.

They are encouraged to verify the license registrations of platforms using the SEC Check First application before making investments.

Popular offshore exchanges like Binance, Coinbase, KuCoin, Kraken, and OKX do not operate legally in Thailand based on government data.

Compliance conversations

Memecoin scams surge amid investor FOMO.

The number of memetoken presales surged fivefold from February to March, data from crypto security firm Blockaid indicates.

In March, one-third of the 369 presales were flagged as scams by the company. Blockaid cofounder Ido Ben-Natan explained that scammers exploit investors' fear of missing out (FOMO).

Ryan found himself caught in one such scam with Rebel Satoshi. Despite initial confidence in its

legitimacy, he soon grew suspicious as the developers’ altered terms and failed to deliver on promises. The token's price plummeted shortly after launch, leaving investors questioning its validity.

Investigations revealed numerous red flags, indicating potential scam activity.

Unfortunately, Ryan's experience is not unique. Token presale scams, where developers vanish with investors' funds, are on the rise.

These scams often masquerade as legitimate projects, using glossy marketing tactics and fake partnerships to deceive investors.

While there are warning signs to watch for, such as anonymous developers and lack of transparency, many investors overlook them in their quest for quick profits.

Some even resort to automated trading techniques, increasing their exposure to scams.

Despite the risks, Ryan remains undeterred. While he acknowledges his own responsibility in falling victim to a scam, he remains optimistic about the potential of legitimate memecoins.

As the cryptocurrency market continues to evolve, the need for industry-wide standards to protect investors becomes increasingly apparent. Until then, investors must remain vigilant and informed, lest they fall prey to the allure of crypto FOMO and its accompanying scams.


The ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

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Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

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Weekly prices are accurate as of 10:00 AM AEST on 22/04/2024.

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