Kalam Crypto #100: Illicit use of crypto drops 40% & FTX sells $1B worth of BTC

“Injustice anywhere is a threat to justice everywhere.” Martin Luther King Jr.

Ahlan wa sahlan, and welcome to the 100th edition of CoinMENA's weekly newsletter, Kalam Crypto. A new report by Chainalysis shows that illicit uses of crypto decreased by 40% year over year, FTX sold off $1 billion worth of bitcoin from GBTC, Tether became the 11th largest holder of bitcoin, and the first even Bitcoin-only conference is coming to Dubai. All that and more on this week’s Kalam Crypto.

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Global News 🌍

Illicit uses of crypto declines by 40%: In 2023, illicit cryptocurrency transactions amounted to over $24 billion, constituting 0.34% of the total transaction volume, as estimated by blockchain intelligence firm Chainalysis in its annual crypto crime trends report. This figure is nearly 40% lower than the previous year.

Tether becomes 11th largest holder of Bitcoin: Tether Reportedly Bought 8.9K Bitcoin for $380 million and is now the 11th-largest BTC Holder. The stablecoin issuer announced in May 2023 that it would start buying bitcoin to diversify the backing of its USDT stablecoin. To shift away from cash and cash-like assets such as U.S. Treasury bonds backing its USDT stablecoin, Tether announced in May 2023 that it would start allocating as much as 15% of its profits into bitcoin. USDT is the world's largest stablecoin with a market capitalization of over $95 billion.

Bitcoin ETF update: New spot ETFs have amassed over 94,000 bitcoins valued at over $4 billion. However, while the new funds, issued by the likes of BlackRock and Fidelity, have seen inflows, billions of dollars worth of bitcoin have been pulled out of GBTC. A report by Coindesk suggests that FTX, the bankrupt cryptocurrency exchange, has sold nearly $1 billion in shares from Grayscale's GTBC fund. The Grayscale spot bitcoin ETF has notably led in trading volume among its peers, with substantial outflows reaching $2.8 billion. GBTC’s sell-off is expected given it was trading at over 40% discount to net asset value (NAV) last year. 

Keep an eye on 👀

Bitcoin is already the second-largest commodity ETF in the world after bitcoin. Gold ETFs hold $96.3bn & launched 21 years ago. Bitcoin ETFs hold $27.5bn & launched less than 2 weeks ago. Gold has been a store of value for 5,000 years. Bitcoin has been a speculative store of value for 15 years.

Local News 📍

The First Bitcoin Only Conference in Dubai: Bitcoin Oasis Dubai (February 8-9, 2024): For the first time, an intimate circle of global leaders of the bitcoin industry, private sector, and governmental bodies will get together in Dubai to discuss the transformative potential of bitcoin. Space is limited, so attendees will need to apply through the event’s website to book their spots. If you consider yourself a bitcoiner, this is an event you don’t want to miss!

Blog of The Week ✍️

Check out our first report from our partnership with Onramp Bitcoin titled “Why Did Satoshi Create Bitcoin?”. You can download the full PDF here or from our blog website.

CoinMENA News 🗞️

🏆1,000 USD Referral Competition: The user with the highest number of successful referrals (invited who verify their accounts) will win the $1,000 prize! Here's how it works:

• 📤Share Your Link: Invite your friends, family, and colleagues to join CoinMENA using your unique referral link. 

• ✅Verification Bonus: Both you and your invited friend will earn $5 each when they successfully verify their account.

• 🏆Top Referrer Prize: The user with the highest number of successful referrals (invited who verify their accounts) will receive a $1,000 prize!

This competition starts today and is ongoing until the end of the month (January 2024). Good luck!

Tweet Of The Week 🐥

Quiz Corner ✅ 

Last week’s question: What is the purpose of the collaboration between CoinMENA and Onramp?

The correct answer is b) To provide MENA investors with high-quality Bitcoin educational resources.

What makes direct bitcoin ownership better than investing in a Bitcoin ETF?

A) Direct Ownership

B) No management fees

C) 24/7 trading

D) All the above See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/