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Crypto News Digest - Quick-read versions of cryptocurrency updates

Bitwise CIO believes market has not priced in future demand for Bitcoin post-halving

Bitwise CIO Matt Hougan challenges the Efficient Markets Hypothesis (EMH) regarding Bitcoin’s price ahead of its halving, suggesting it underestimates potential demand increases. Hougan argues that while EMH accounts for known factors like the supply cut, it can’t predict future market demand shifts. He highlights the transition from forced to willing sellers post-halving, indicating a possible significant price surge if demand exceeds expectations. This insight challenges traditional economic models, emphasizing the uniqueness of the crypto market and the need for investors to consider unforeseen demand dynamics.. Source

Hong Kong-based HashKey to cease Binance-related transactions amid policy change

HashKey to end Binance transactions from May 17, citing policy changes. Despite the move, whitelisted unhosted wallet addresses remain supported. This decision follows HashKey’s earlier restriction on third-party exchange deposits, with Binance being the temporary exception. HashKey, a licensed Hong Kong exchange, continues to expand, recently gaining regulatory approval for a Bitcoin ETF and launching a global trading platform licensed in Bermuda. Meanwhile, Binance faces regulatory challenges globally but is making compliance strides in India and Dubai..

Chainalysis proposes $10 million Polkadot partnership to provide analytics solutions

Chainalysis proposes a $10 million partnership with Polkadot to enhance DOT token tracing and regulatory compliance. This includes monitoring risky actions, providing on-chain intelligence for institutions, and preventing fines. Despite its potential benefits, the proposal has seen limited support within the Polkadot community, with a significant vote against it. The partnership aims to boost Polkadot’s market presence and safeguard against regulatory repercussions, with voting concluding by May 16.. Source

Human Rights Foundation launches Finney Freedom Prize to reward contributions to Bitcoin for 110 years

The Human Rights Foundation launched the Finney Freedom Prize on Bitcoin’s fourth halving day to honor achievements in Bitcoin and human rights, reflecting Hal Finney’s vision of technology as a liberation tool. The inaugural prize was posthumously awarded to Finney, an early Bitcoin developer and advocate for civil liberties, recognizing his contributions from 2009 to 2012. The prize, supported by a 33 BTC fund, will be awarded every four years on Bitcoin halving days, with 28 awards planned over the next 110 years. Laureates are chosen for their educational efforts, technological contributions, promotion of decentralization, and efforts to enhance Bitcoin’s… Read More »Human Rights Foundation launches Finney Freedom Prize to reward contributions to Bitcoin for 110 years

IRS draft tax form for crypto defines unhosted wallets as brokers

The IRS targets unhosted crypto wallets in its draft 1099-DA reporting form, raising concerns among industry experts about privacy, security, and the feasibility of enforcement. Critics argue the IRS’ approach fails to consider the operational realities of unhosted wallets, potentially implicating end users in stringent KYC procedures. Despite these challenges, the form includes provisions for brokers on reporting transaction IDs and wallet addresses, with exceptions for transactions not conducted on-chain. The draft, part of ongoing efforts to regulate crypto under the 2021 Infrastructure Act, is still open for comments, indicating rules are not yet finalized.. Source

FTX investors agree to drop civil lawsuit against SBF if he snitches on celebrity promoters

FTX investors might drop claims against Sam Bankman-Fried for his cooperation against celebrities in a $1.3 million lawsuit involving Tom Brady and others, accused of promoting a Ponzi scheme. Bankman-Fried’s support includes sharing details about FTX-related entities and his investments. This proposed settlement, acknowledging his participation as valuable, awaits judge’s approval. This comes after Bankman-Fried’s conviction and 24-year sentence in a separate criminal case.. Source

AI and blockchain: A match made in heaven or hell

AI and blockchain technologies are merging, creating a burgeoning market with AI-linked crypto tokens now valued at $26.4 billion, a significant rise from $2.7 billion. This fusion offers new investment avenues, with AI crypto revenue predicted to hit $10.2 billion by 2030. Despite its infancy, this merger promises enhanced security and efficiency through real-time risk detection and immutable data records. However, it also raises substantial privacy and security concerns, necessitating ethical and safety standards to ensure these technologies benefit humanity. Global initiatives are underway to regulate AI development and ensure its safe integration with blockchain.. Source