The first day of inflows into Grayscale Investments’ GBTC has come after withdrawals of almost $17.5 billion since the introduction of Bitcoin ETFs in January.
For the first time, Grayscale Investments has seen net positive inflows for the Grayscale Bitcoin Trust (GBTC). This follows almost four months of nonstop withdrawals following its January conversion to a Bitcoin exchange-traded fund (ETF).
According to Farside early statistics, Grayscale’s GBTC had inflows of $63 million on May 3 following outflows of around $17.5 billion since the introduction of the 11 spot Bitcoin ETFs on January 11.
Franklin Templeton’s Bitcoin ETF (EZBC), among the other funds tracked thus far, saw its largest-ever inflow of $60.9 million.
With $102.6 million, Bitwise Bitcoin Fund (BITB) came in second, while Invesco Galaxy Bitcoin ETF (BTCO) came in third with $33.2 million. Meanwhile, Fidelity Wise Origin Bitcoin Fund (FBTC) led the day’s inflows.
Pseudonymous crypto investor DivXman informed his followers that the GBTC was the “primary source” of sell pressure across all spot Bitcoin ETFs, but “the tides” may be reversing. The cryptocurrency community has been speculating about how the turn in events would effect Bitcoin’s (BTC).
In a tweet from May 3, he informed his 20,800 X followers, “That effectively means a significant decrease in sell pressure and additional increase in demand while ETFs collectively are buying more BTC than miners can create.”
On the same day, cryptocurrency trader Jelle told his 80,300 X followers that a new all-time high for Bitcoin was imminent.
“60 million dollars worth of inflows for Grayscale’s ETF. The halving chop will come to an end, and 6-figure Bitcoin will follow shortly after.”
In response to the news, cryptocurrency trader Jordan Lindsey mentioned the price of Bitcoin and said it is “obviously responding both to outflows and inflows.”
As of the time of writing, the price of bitcoin was $62,840, up 4.91% from the previous day, according to statistics.
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Grayscale’s continuous withdrawals since the introduction of the 11-spot Bitcoin ETFs have been caused by a number of variables. The high costs of GBTC in comparison to other ETFs on the market is one factor. The costs for other ETFs are all less than 1%, however GBTC charges 1.5%.
Franklin Templeton is now the least expensive, at 0.19%. The sale of significant quantities of GBTC shares by insolvent cryptocurrency companies FTX and Genesis in an attempt to pay off creditors is another major factor.
According to a Cointelegraph story from April 6, Genesis sold almost 36 million GBTC shares for $2.1 billion in order to buy 32,041 Bitcoin.
Sybil farmers have the opportunity to “self-report” using LayerZero in the sake of longevity
With the promise of obtaining “15% of their intended allocation,” LayerZero Labs provided users with the opportunity to self-report in an effort to reduce the negative effects of excessive airdrop farming, or sybil activity.
It seems like LayerZero Labs has no interest in engaging in sybil activities or excessive airdrop farming.
“We believe it is in the protocol’s best interest to distribute tokens to durable users, not sybil farmers,” the developer posted to X on Friday.
We believe it is in the protocol’s best interest to distribute tokens to durable users — not sybil farmers.
If you are a sybil, you have two options:
– Self-report sybil addresses for 15% of your intended allocation. No questions asked. The deadline to do so is May 17th.
– Do… pic.twitter.com/Kme9ZKckC7
— LayerZero Labs (@LayerZero_Labs) May 3, 2024
Additionally, LayerZero Labs provided an incentive in an effort to lessen the negative effects of sybil activity.
“We are giving all sybil users an opportunity to self-report within the next 14 days in return for 15% of their intended allocation, no questions asked,” it stated.
The creator of a cross-chain communication protocol is LayerZero Labs. It finished the first snapshot on Thursday, presumably about a possible airdrop distribution to community members. The team stated in a visual posted on X that the snapshot, or the last moment at which transactions count toward airdrop eligibility, was completed on May 1, 2024, at 11:59:59 p.m. UTC.
Airdrops are typically part of a larger plan to incentivize early adopters and create decentralized governing authority inside a network. Overuse of airdrop farming, also known as sybil activity, is when someone uses hundreds or even thousands of addresses to acquire tokens with the intention of very immediately dumping them.
If LayerZero Labs succeeds in appealing to the sense of justice among Sybil users, only time will tell. The deadline for self-reporting is May 17, according to a blog post by the developer.
Additionally, the creator said in the same blog post: “If you think you are a sybil, you are most likely a sybil.”
Although the precise benefits for using the network are unknown, the possible airdrop’s date coincides with a previous announcement by LayerZero Labs that a token launch is planned for the first half of 2024.
Has the price of SHIB topped? 211B Shiba Inu dumped at Coinbase?
Shiba Inu attracted a lot of attention once more as its price increased. 211 billion SHIB were transferred to Coinbase during this upswing, raising questions about the token’s potential future price movement.
In an extraordinary turn of events, a sizable quantity of SHIB was dumped into Coinbase, a well-known cryptocurrency exchange, despite Shiba Inu’s notable price recovery over the previous 24 hours. One of the most well-known dog-themed meme tokens has seen a wave of negative sentiments surge in response to this.
According to on-chain statistics, Shiba Inu, the self-described “killer of Dogecoin,” had two significant sell-offs today, May 4, raising investor fears about SHIB’s potential future price swings. Here is a deeper look at the price movement and on-chain statistics for the coin right now.
Wallets transfer 211B coins to Coinbase, increasing pessimistic attitudes
Notably, 211 billion SHIB were dumped to Coinbase in the last day, according to data from the on-chain tracker The Data Nerd. Together, the two wallets with the addresses “0x6a43..” and “0xef01” moved the $5.16 million in SHIB that was previously stated.
This has mostly resulted in unfavorable investor emotions because wallets seem to be gloomy about the meme coin’s future price trajectory, even after SHIB’s noteworthy surge over the last day. It’s important to remember that CoinGape media already highlighted a crucial resistance level for Shiba Inu around $0.00002315.
The wallets’ massive SHIB offloading may have been prompted by the coin’s recent topping of this level, maybe as a result of profit-taking actions. Still, this story has sparked a wave of negative thoughts about Shiba Inu, and more conjecture is brewing as on-chain and whale data highlight divergent views in the larger cryptocurrency space.
Shiba Inu price recovery maintains investor optimism
At the time of writing, the price of the Shiba Inu token had increased 8% over the previous day and was trading at $0.00002470. SHIB’s derivatives volume shot up 7.55% as its market cap increased 6.98%. This mainly indicated that there was some purchasing pressure in the market, while Coinglass showed that the open interest of the token increased by a noteworthy 12.66% to $64.54 million.
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In addition to the significant selloffs previously indicated, market data further cast the token in a speculative light. That being said, it’s important to note that recent development efforts related to the meme coin provide greater hope for SHIB’s next cryptography enterprise. The Bor and Heimdall hard fork, which Shiba Inu just announced, increased transaction and block processing costs on Shibarium even more. However, whale activity on the coin, as previously highlighted by CoinGape Media, also fuels expectations of future price increases for Shiba Inu.
All of the aforementioned information suggests that SHIB may still be able to provide investors with long-term benefits, even though there may be some short-term volatility. It’s also important to remember that there hasn’t been a post-halving surge for altcoins, whereby they have imitated BTC’s parabolic ascent, which is further preparing the way for Shiba Inu’s future extraordinary gains.
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