A Week In Crypto (27 Nov - 3 Dec 2023)

Welcome back! This week we will share how one U.S. Space Force official believes Bitcoin may play a role in national defense, a federal judge calls out SEC attorneys, and Bitcoin to $100k in 2024?! Closing out this week’s letter is our weekly token watch, tokens am I watching or buying this week, and weekly crypto memes. Enjoy!

Bitcoin’s Potential for Assisting the U.S. Space Force

Space Force officer offers Bitcoin strategy in national defense

Source: Assad Jafri, CryptoSlate, 2023

An officer in the U.S. Space Force, Major Jason Lowery, has presented a groundbreaking perspective on Bitcoin that extends its relevance beyond finance, reaching into the realms of national defense and cybersecurity.

In a comprehensive letter addressed to the Defense Innovation Board, Lowery proposed that Bitcoin and analogous proof-of-work (PoW) protocols carry significant strategic importance. He urged the government to explore their potential applications within military strategies.

Within the context of an offset approach to military strategy—historically involving the use of technological advancements to counterbalance adversaries—Lowery positioned Bitcoin and its underlying technology as contemporary tools. He suggested that they could redefine the landscape of cyber warfare and defense.

Lowery introduced the concept of Bitcoin as a pioneering "macrochip," transforming the global electric power grid into a resource-intensive computer. This innovative approach, he argued, introduces physical costs into the digital domain, offering a new method of securing data across the internet.

By challenging conventional paradigms of cybersecurity, this strategy could revolutionize the enforcement of digital security by introducing real-world physical costs as deterrents in cyberspace.

Lowery emphasized the urgency for the U.S. to recognize and adapt to Bitcoin’s potential as a strategic offset in cybersecurity. Failure to do so, he warned, could impact the global balance of power in an era where digital systems are increasingly vulnerable.

In his role as the U.S. National Defense Fellow and Deputy Director of Technology & Innovation at Space Launch Delta 45, Lowery's nuanced understanding of national defense and digital technology underscores the need for the U.S. to explore and integrate these technologies into defense strategies. He strongly recommended that the Defense Innovation Board advise the Office of the Secretary of Defense to prioritize the investigation of Bitcoin and similar technologies for national defense and cybersecurity, ensuring the U.S. maintains its position as a global superpower in an evolving digital landscape.

SEC Reprimanded by U.S. Judge

Federal judge threatens SEC attorneys with sanction for “false and misleading pretenses”

Source: Elizabeth Napolitano, , CoinDesk 2023

A federal judge has issued a stern warning of potential sanctions against Securities and Exchange Commission (SEC) attorneys, citing their "false and misleading" arguments that led to a temporary restraining order against crypto firm Debt Box. U.S. District Judge Robert Shelby from the U.S. District Court in Utah expressed concerns over the SEC's attorneys allegedly making "misleading" statements regarding Debt Box's purported attempts to transfer assets overseas, which resulted in a court freezing the project's bank accounts. Judge Shelby emphasized that these "misrepresentations" not only compromised the integrity of the case's proceedings but also inflicted "irreparable harm" on Debt Box.

Sanctions, potential penalties for knowingly providing false information or violating court procedures, were indicated as a possible consequence. In civil law, these penalties often take the form of monetary fines. The initial temporary restraining order imposed on Debt Box in August was later lifted when the company demonstrated that it had not moved funds outside the U.S. or closed its bank accounts as alleged by the SEC. The judge has given the SEC two weeks to respond to his concerns. The SEC's lawsuit against Debt Box, filed in July, accused the company of orchestrating the sale of unregistered securities called "node licenses," misleading investors about cryptocurrency mining capabilities.

The potential sanctions against SEC attorneys for "false and misleading" arguments in the Debt Box case could have significant implications for the crypto space. This development raises questions about the regulatory clarity and practices within the SEC when dealing with cryptocurrency-related cases. If proven, the misrepresentations by SEC attorneys may undermine the credibility of the regulatory authority and contribute to a perception of arbitrary enforcement. This could intensify the calls for a more transparent and consistent regulatory framework for cryptocurrencies, fostering an environment where companies and investors alike can operate with a clearer understanding of legal expectations. Additionally, this incident may prompt a reevaluation of the SEC's approach to investigations and legal proceedings involving crypto projects, emphasizing the importance of fair and factual representations in regulatory actions. Overall, the outcome of this situation could shape the regulatory landscape for cryptocurrencies, potentially influencing how authorities engage with the industry in the future.

Bitcoin to $100k in 2024

Crypto experts point to the start of the bull run ahead of expectations

Source: Arjun Kharpal, CNBC 2023

Key figures in the cryptocurrency sector are heralding the commencement of a new bullish trend, with a growing chorus predicting fresh all-time highs for Bitcoin in 2024, potentially surpassing the $100,000 mark. Bitcoin has already demonstrated a robust performance, surging over 120% this year, with optimism prevailing for the trend to extend into the upcoming years.

Pascal Gauthier, CEO of Ledger, expressed hope for the coming years, stating that 2023 was a preparatory phase for the anticipated bull run in 2024 and beyond. Despite facing challenges such as exchange collapses and legal issues involving major industry players, the resolution of these issues is seen as a pivotal moment for the crypto market.

David Marcus, CEO of Lightspark, emphasized the need to transition from the speculative phase to a focus on technology and problem-solving within the crypto space. Marcus, formerly associated with Facebook's Diem stablecoin project, is now dedicated to enhancing Bitcoin as a payments network.

Two significant developments are capturing investor attention. First is the growing anticipation of the approval of a Bitcoin exchange-traded fund (ETF), potentially attracting larger traditional investors. Gauthier sees this as a signal of Bitcoin's mainstream acceptance. The second development is the scheduled Bitcoin halving in May 2024, historically associated with supply constraints and potential market rallies.

Bold predictions for Bitcoin's performance in 2024 include Standard Chartered's call for $100,000, driven by anticipated ETF approvals. Matrixport, a crypto financial services firm, projects Bitcoin reaching $63,140 by April 2024 and $125,000 by the end of the next year. The expectations are buoyed by factors such as supportive macroeconomic conditions, potential interest rate cuts, and Bitcoin's perceived role as a safe-haven asset.

While industry leaders express confidence in Bitcoin's strong fundamentals, caution is advised regarding potential hurdles, such as ETF rejections, which could impact the trajectory of the anticipated rally.

Crypto Fear and Greed Index

Token Watch: Weekly Top Movers In the Top 100

Tera Luna Classic (LUNC), Coin #58, 34.4%, $0.00019785   

Ordi (ORDI), Coin #74, 16.9%, $5.42

Bittensor (TAO), Coin# 39, 13.1%, $339.28

Radix (XRD), Coin #99, -8.5% $0.053680

Leo Token (LEO), Coin #25, -5.3%, $3.68

Pyth Network (PYTH), Coin #84, 5.1%, $0.434512

Weekly Watchlist: Interesting Altcoins of the Week

1. Illuvium (ILV) - Trading today at $109.83 but its all time high (ATH) in 2021 was ~$1,923. One token in my gamefi portfolio. Currently ~1.5 million on the waitlist for the game. Strong potential for future growth. ILV experienced wild price action last cycle and the game continues to develop. I’m usually not a buyer of individual game tokens but ILV won me over…

2. Beam (BEAM) - $40.6 million market cap gaming token built upon the Avalanche (AVAX) blockchain. BEAM is the core of the governance of Merit Circle DAO. A crypto gaming token, BEAM offers fast execution times and low transaction fees for in-game asset trades and other gaming operations.

3. Enjin Coin (ENJ) - $299.4 million market cap. Currently trading at ~.31 with an ATH of $4.85. ENJ was the world’s first gaming NFT ecosystem dating back to 2018. ENJ continues to revolutionize how players may own, trade, and engage with in-game items. I believe there is huge potential here. Not financial advice of course…

Crypto Meme Corner

Source: Google Images

Thanks for tuning in. Remember to do your own research, protect your digital assets, and none of this is financial advice. Until next week,

-The Token Mindset

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