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Binance's Betrayal: Broken Beliefs, Backroom Bargains
Binance sucks and VanEck's MEMECOIN Index
Jonathan Morgan
May 09, 2024
OVERVIEW
Binance's Betrayal: Broken Beliefs, Backroom Bargains
Just take a look at the total and altcoin market cap images below, and you’ll see how congested this market is. So far, no major signals that this market will drop or pop. That means we just keep watching. 👀
In today’s Litepaper: a very big, damning report from the WSJ about Binance’s ass-hattery and betrayal. 📰
Also on deck: A look at VanEck’s MEMECOIN Index and how well it’s outperforming the broader crypto market.
Before we dive in, here’s today’s crypto market heatmap:
And here’s a look at crypto’s total and altcoin market cap YTD:
NEWS
Binance Full Of B.S. 💩
You know what pisses me off about crypto? It’s not the greedy assholes, they’re everywhere. What pisses me off are the individuals and organizations that use the principles of crypto to their own ends. They use the rallying cries of fairness, transparency, and decentralization. When governments or regulators target them, they rally the crypto community to stand with them. 😡
Some of these false paragons stand up with their white robes of faux virtue, stand on their soapboxes, and rally the masses to their cause. And while we’re watching them, they’re behind our backs, picking our pockets and fleecing our trust.
Mt. Gox, Quadira, OneCoin, Bitconnect, Squid Token, SBF, FTX, BitClub, Do ‘Con’ Kwon, Terra, Celsius, Voyager, Three Arrows Capital, Justin Sun, HEX, Richard Hatch. What do all of these people and entities have in common?
They are all part of a problem that crypto is supposed to address: centralized control. Time and time again, when shit hits the fan in crypto, it’s because of a centralized entity with single or small-group control. 🤦♂️
And that brings us to one of the latest wolves in sheep’s clothing: Binance.
This fantastic investigative story is from the WSJ’s Angus Berwick and Elaine Yu.
If Binance were a Marvel movie, it might be cast less as a hero and more as a double agent—professing to fight market manipulation while playing host to it. Here's the scene: a global crypto behemoth pledges to shield users from financial rogues. Fast-forward and it's not the market manipulator who gets ousted but the whistleblower exposing the shenanigans.
Profit Over Principles 💸
Enter a VIP client, a Lamborghini aficionado with a penchant for market meddling, spotlighting the divergence between Binance's promises and its actions. The crypto exchange, which prides itself on user safety, apparently saw no evil when profits were at stake. The surveillance team—finance veterans from the likes of Bank of America and Citadel—was enlisted to cleanse the system. They uncovered a smorgasbord of banned activities: VIPs engaging in pump-and-dump schemes and wash trading, blatantly flouting Binance's own rules. Instead of heralding a new era of compliance, the company chose to ax the investigator who dared to flag a top client's tactics.
Things get more shady under the sharp eye of the SEC. They stumbled upon hidden trading accounts purportedly used by Binance to manipulate market prices covertly. This discovery was a cannonball through the facade of Binance's proclaimed integrity. The company maintains its stance, touting a "robust surveillance framework" that supposedly catches market abuse. However, the actions taken—or not taken—speak volumes about its priorities.
The Rise of DWF Labs 🧪
The screwjob escalates with the arrival of DWF Labs on Binance's trading stage. Led by Andrei Grachev, this trading firm quickly slithered into Binance's VIP echelons, enjoying perks and privileges reserved for ultra-elite traders. DWF was not your average market participant; they employed strategies to artificially inflate trading volumes and prices. Proposals from DWF to potential partners boasted of their ability to manipulate market perceptions and generate 'artificial volume' to attract unwary traders.
Consequences and Reflections 🪞
Despite clear violations flagged by the investigation, Binance chose profit over protocol. The surveillance team's thorough reports on DWF's manipulative tactics led to internal conflict, resulting in the dismissal of the very team that sought to uphold market fairness. The subsequent reduction in the investigative team's size and influence paints a grim picture of an exchange that is more concerned with its bottom line than with fostering a fair market. 🔴
Again, make sure to read the full story from the Wall Street Journal’s Angus Berwick and Elaine Yu - fantastic piece of investigation and reporting on Lienance. I mean Binance.
STOCKTWITS CONTENT
New “Trends With Friends” 🍿
Stocktwits co-founder Howard Lindzon chops it up with pals JC Parets and Phil Pearlman every Thursday on "Trends With Friends."
NEWS
VanEck’s MEMECOIN Index = Awesome 🐶
It’s been out since 2021, but VanEck's MarketVector MEMECOIN index looks like it might have finally caught on to the memecoin crowd.
Dubbed the MarketVector Meme Coin Index and trading under the ticker MEMECOIN, this new financial instrument has quickly caught the eye of both enthusiasts and skeptics alike.
Click to enlarge.
The index is made up of the six dominant meme coins. Currently, the index is made up of:
How is this index performing? Pretty damn well. 😱
Click to enlarge.
MEMECOIN is up +195.22% YoY and +135.41% YTD.
Total Crypto Market Cap is up +35.70% YTD and +128.32% YoY.
Altcoin Market Cap is up +29.10% YTD and +83.11% YoY.
Altcoin Market Cap (excluding $ETH) is up +27.66% YTD and +75.38% YoY.
MarketVector's initiative captures $44.67 billion of the total $51 billion market cap attributed to meme coins, as reported by CoinGecko. And according to how it’s performing relative to the broader crypto market, not a bad idea to keep an eye on it. 👁️
NEWS
Crypto News In Three Sentences 📰
🌐 Tether Co-Founder Champions Tokenized Fiat
Tether ($USDT) co-founder William Quigley proclaimed tokenizing fiat currencies as the greatest innovation since fiat itself, predicting a significant shift towards tokenized economies within the next decade. Speaking at the FT Crypto and Digital Assets Summit, Quigley highlighted the potential of tokenized money to enhance traditional fiat by possibly offering yields on holdings, a feature not currently possible with traditional banking or stablecoins like Tether (guess he’s never heard of a CD before). Cointelegraph has more.
🇪🇺 EU Considers Crypto for Mainstream Funds
The European Securities and Markets Authority (ESMA) is exploring the inclusion of cryptocurrencies like Bitcoin ($BTC) in the region’s €12 trillion UCITS investment sector, known for its mutual and exchange-traded funds. Broader consultations will conclude in August and could allow for diversified investment portfolios while adhering to stringent EU regulations. Unlike direct crypto-focused funds, UCITS aims for a balanced investment approach. From Finbold.
🐋 Ethereum Whale's Significant Market Moves
An Ethereum ($ETH) whale has significantly impacted the market by withdrawing 6,030 ETH from Binance, signaling strong confidence in the asset’s future as Ethereum approaches the key $3,000 mark. Some speculate the outflow is part of a broader strategy to convert ETH to stETH to increase liquidity on as-of-yet unknown DeFi platforms. More from U.Today.
🔏 NEAR Protocol’s Mysterious Social Media Activity Raises Hack Concerns NEAR Protocol’s ($NEAR) X account exhibited unusual behavior with cryptic messages and a dark-themed redesign, sparking concerns among the crypto community about a potential security breach. The sudden shift to enigmatic posts and visual changes, reminiscent of past crypto social media hacks, has left users and blockchain investigators on high alert for possible hijacking. CrptoNews has more.
🍽️ Trump’s NFT Dinner Invite at Mar-a-Lago Former President Donald Trump has turned his legal troubles into a marketing opportunity, offering a dinner at Mar-a-Lago to supporters who purchase at least 47 of his mugshot-themed NFTs. This move blends real-world engagement with digital collectibles, showcasing a unique approach to monetizing political and celebrity status through blockchain technology. From NFTGators.
🔗 Euclid Protocol Launches Cross-Chain Liquidity Solution
Euclid Protocol announced the launch of a shared liquidity layer that connects disparate blockchain ecosystems like Cosmos ($ATOM), Solana ($SOL), and EVM-based chains, using Nibiru Chain’s Virtual Settlement Layer. This approach hopes to resolve the fragmented liquidity issues prevalent in DeFi by allowing seamless asset transfers across platforms without physical relocation. More from CryptoBriefing.
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