Reddit buys Bitcoin, Ethereum, and MATIC, reveals new IPO filing with the SEC
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Social media giant Reddit has revealed in its IPO filing that it has begun investing some of its excess cash reserves in Bitcoin and Ether. While the amounts are currently immaterial, this move signals Reddit’s belief in the long-term potential of crypto.
This week, a consortium of major crypto companies and advocates including Coinbase and Andreessen Horowitz (a16z) filed a preemptive lawsuit against the Securities and Exchange Commission. The suit, led by the newly-formed Crypto Freedom Alliance of Texas (CFAT), asserts that the SEC lacks authority to regulate secondary crypto asset transactions in Texas as securities trades.
European Central Bank officials doubled down on their long-standing Bitcoin criticism, arguing that the crypto has failed as a decentralized global currency and instead become an asset plagued by manipulation and fraud. They liken the situation to “the naked emperor’s new clothes,” emphasizing their stance that Bitcoin’s fair value remains zero.
Today’s Newsletter
- Reddit buys Bitcoin, Ethereum, and MATIC, reveals new IPO filing with the SEC
- Bitcoin ETF approval comparable to ‘naked emperor’s new clothes,’ ECB officials say
- Coinbase, a16z take SEC to court over ‘unlawful’ crypto overreach
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ADOPTION
Reddit buys Bitcoin, Ethereum, and MATIC, reveals new IPO filing with the SEC
In its SEC filing to go public, Reddit disclosed purchases of Bitcoin, Ether, and Polygon’s MATIC token. With over 50 million daily users, Reddit’s backing could lend further mainstream credibility to the crypto space.
This strategic move positions Reddit alongside prominent corporations like MicroStrategy and Tesla, which have also embraced digital assets. Reddit’s crypto and blockchain move build on its history of rewards tokens like Moons and Bricks in the past. While those programs were discontinued, Reddit sees potential in offering custom NFT avatars. [cryptobriefing]
BITCOIN
Bitcoin ETF approval comparable to ‘naked emperor’s new clothes,’ ECB officials say
In a blog post, ECB advisors Ulrich Bindseil and Jürgen Schaaf contended Bitcoin is still rarely used for payments, has exorbitant costs and energy usage, and remains dominated by criminal activity. They warned that another boom-bust cycle could have massive collateral damage. This follows a November post where they predicted Bitcoin was headed toward “irrelevance.”
Despite the influx of billions of dollars into these ETFs and the subsequent price rally of Bitcoin, ECB advisors argue that this does not validate Bitcoin as a good investment. As the central bank develops a digital euro, the ECB has incentives to criticize decentralized cryptos. However, the inability to acknowledge Bitcoin’s appeal to many retail investors worldwide shows a disconnect that could influence future policy approaches. [coindesk]
REGULATION
Coinbase, a16z take SEC to court over ‘unlawful’ crypto overreach
Instead of waiting to become a target of SEC enforcement actions, CFAT aims to compel the SEC to clarify its regulatory stance through this litigation. If successful, the suit could provide the crypto industry with much-needed certainty about the SEC’s jurisdiction. The alliance hopes to settle a key question – whether resales of coins like Bitcoin are investment contracts subject to securities law.
Historically, the SEC adopted a relatively hands-off approach to the nascent crypto sector. However, the landscape shifted dramatically following the ICO boom of 2016-17, leading to increased scrutiny and regulatory actions. But recent Ripple and Grayscale wins against the regulator revealed cracks in the SEC’s legal theories. Now a Texas lawsuit led by Coinbase, a16z, and others seeks to widen these cracks and achieve court clarity limiting the SEC’s ability to enforce securities law against crypto resales. [decrypt]
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Other News
Uniswap’s UNI jumps 60% on proposal to reward token holders in major governance overhaul. [coindesk]
Next Week’s Token Unlocks
- DYDX is set to unlock $108M, corresponding to an 11% supply increase, and holds a market cap of $977M.
- OP has an upcoming unlock of nearly $87M, which will result in a 2.5% increase in supply, set against a market cap of $3.4B.
- PRIME’s upcoming unlock of $20M will increase supply by 4.9%, against a market cap of $413M.
- SUI has an unlock of $15M on the horizon, amounting to a 0.8% increase in supply, with a market cap of $1.8B.
- ZETA will see an unlock of $14M, equating to a 2.6% rise in supply, with its market cap standing at $532M.
- MANTA will unlock $9.3M, increasing supply by 1.2%, with a market cap of $760M.
- YGG will undergo an unlock of $8.8M, equating to a 5.5% rise in supply, with a market cap of $158M.
- AGIX will see an unlock of $7M, amounting to a 0.7% boost in supply, with a market cap of $1B.
- GMT will experience an unlock of $6M, leading to a 1.3% increase in supply, with a market cap of $456M.
- NYM is preparing for an unlock of $5M, resulting in a 3.6% increase in supply, set against a market cap of $143M.
- AKT’s unlock of $2M represents a 0.25% supply boost, against a market cap of $891M.
Data powered by Token.unlocks.
Diego
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