'Groundhog Day' in Crypto as Bitcoin Again Plunges Following New Record

The world's largest crypto briefly rose above $70,000 Friday, but immediately tumbled about 5% to below $67,000

It's deja vu all over again for bitcoin (BTC) bulls, who for the second time this week barely had a few seconds to celebrate a surge to a new-all time high before prices quickly reversed sharply lower.

In the morning hours of U.S. trading, bitcoin took out the Tuesday record of about $69,200 and rose to $70,136, CoinDesk Bitcoin Index (XBX) data shows. But within seconds, selling took hold and less than one hour later, the price had tumbled about 5% to as low as $66,500.

Hong Kong launches Project Ensemble to support tokenization with wCBDC

 The HKMA’s latest CBDC project will look at tokenized deposits in tokenized asset transactions.

The Hong Kong Monetary Authority (HKMA) will launch a project to create a new wholesale central bank digital currency (wCBDC) to support tokenization. Dubbed Project Ensemble, it could result in the issuance of a “live” CBDC if there is sufficient interest, the HKMA said in an announcement.

The project will center around innovative infrastructure for interbank settlement using wCBDC. Its initial focus will be on tokenized deposits, that is, tokenized commercial bank money, for use in transactions with tokenized assets. The first step in the project will be the creation of a sandbox that will research and test:

Pig-butchering crypto scams made over $75b, University of Texas professor reveals

 A recent study conducted by University of Texas professors indicates that pig-butchering crypto scams may have siphoned off tens of billions of dollars.

A new study led by University of Texas finance professor John Griffin and graduate student Kevin Mei suggests that pig-butchering crypto scams may have drained over $75 billion from victims around the globe. The research, conducted over four years from January 2020 to February 2024, involved tracking the flow of funds from over 4,000 victims to the predominantly Southeast Asia-based scammers.

Pig-butchering scams typically begin with unsolicited text messages, enticing individuals into fraudulent crypto investments, and resulting in substantial financial losses.

U.S. Regulators Can Influence Tether’s Offshore Usage: JPMorgan

Tether’s (USDT) dominant position as the largest stablecoin faces regulatory challenges and risks from various authorities and jurisdictions as they seek to impose more transparency and compliance on stablecoins.

The stablecoin is vulnerable due to its dependence on the American market and pending regulations. Despite Tether’s headquarters not being based in the U.S., regulators can exert influence over its offshore usage through the Office of Foreign Assets Control (OFAC), JPMorgan (JPM) said in a research report Thursday. 

Blowfish exposes new ‘aqua, vanish’ bit-flip drainers on Solana

 Web3 security company Blowfish recently detected a pair of sophisticated Solana (SOL) transaction drainers capable of executing elusive bit-flip attacks.

The firm’s Feb. 9 analysis details how these drainers — dubbed aqua and vanish — can alter a condition in on-chain data post-transaction signature by the user’s private key. 

These dangerous scripts lurking under the transactional radar are being peddled on the dark web, offering scammers a scam-as-a-service toolkit.

The Blowfish examination highlights the drainers’ adept use of the on-chain authority provided to decentralized apps (dapps), enabling them to switch from transaction facilitators to malicious account-draining entities.

Unlicensed crypto exchanges face shutdown in Hong Kong

 Hong Kong’s financial regulator has issued a warning to cryptocurrency exchanges: obtain a license or shut down.

The Securities and Futures Commission (SFC) said that all crypto trading platforms operating in the city must apply for a license by the end of the month. All exchanges that fail to do so will be shut down by May 31.

The SFC’s ultimatum is part of a broader effort to bring cryptocurrency trading into the regulatory fold.

Last June, Hong Kong opened up a licensing regime for crypto exchanges as part of the city’s plans to develop its market into a regional digital assets hub.

Latest Solana Meme Coin ‘LAMBO’ Pumps Up 1000x in 24 Hours and This Low Cap Gem Might Be Next

 LAMBO has become the latest Solana meme coin to enjoy a massive listing on the Raydium DEX this week, with its price experiencing a 1000x surge yesterday.

However, as is usually the case with most Solana meme tokens, LAMBO has since corrected heavily, with its price currently down by 52% in the past 24 hours.

Such a reduction doesn’t bode well for the token’s future, and with other new coins offering stronger fundamentals and more utility, most traders will probably prefer to look elsewhere.

Indeed, one new altcoin gaining lots of momentum right now is Sponge (SPONGE), which is in the process of launching the second version of its token, with millions already staked in it.