SBF Takes The Stand 🏛️

GM. This is Degen Scoop. It’s Monday, here’s what happened over the weekend:

• SBF Takes The Stand 🏛️

• Analysts Confident in Bitcoin ETF Approval 😃

• Binance Giving Up Market Share 😲

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Sam Bankman-Fried, Founder of FTX, Testified in His Trial

FTX founder Sam Bankman-Fried (SBF) began his defense against criminal charges, claiming that he neither committed fraud or misused customer funds from FTX. While acknowledging mistakes, he emphasized that he did not engage in intentional wrongdoing. He believed Alameda Research was permitted to borrow customer funds based on the terms of service. Yes, this is his claim.

The testimony aimed to create distance between himself from certain operational details as he maintains that no fraudulent activities occurred. He clarified that some customer funds were routed to Alameda due to FTX's initial challenges in securing its bank account since it was a primary market maker for FTX in its early days.

The defense aims to underscore that FTX did not impose restrictions on the use of borrowed funds as long as risk management criteria were met. Additionally, SBF discussed key events in 2022, addressing Alameda's losses, insolvency concerns, and a bug-related negative balance. Despite these challenges, he maintained his belief in Alameda's net positive position and expressed a willingness to pledge personal assets to address shortcomings.

The Approval of A Spot Bitcoin ETF Becomes More Likely, According to Cantor Fitzgerald

Cantor Fitzgerald analysts are beginning to express increased confidence in the approval of a spot ETF directly investing in Bitcoin. We here at Degen Scoop are very bullish on the potential of a spot ETF and do also believe there’s a very real chance of it being approved in 2024; even Europe has a spot ETF.

Recent revisions to ETF applications, including BlackRock's filing, have analysts optimistic about the SEC approval. They note that the inclusion of a surveillance-sharing agreement in BlackRock's filing addresses the SEC's criteria, allowing Nasdaq to monitor for potential market manipulation. Put simply, it’s clear that the institutions are putting in the final touches to ensure these approved.

The analysts also note the court decision favoring Grayscale in its bid to convert its trust into an ETF, overturning the SEC's rejection. It’s very telling that the SEC is not appealing the decision paving the way for a spot ETF. Most importantly, if an ETF were to be approved it’ll likely pump the price and streamline the process for adoption as well as adding credibility to the industry.

Binance Continues To Lose Market Share, Other Exchanges Take Advantage

Once Bitcoin broke $35K, it breathed new life into an industry that has endured a long bear market. But one thing is clear: with Bitcoin having doubled off its lows we’re already in the the next bull market. This has not been the case for Binance, who had been the dominant centralized exchange for some time now.

Binance has been losing market share over the past year, dropping from a commanding 74% among exchanges not supporting USD in December 2022 to 50% this month. The exchange has been plagued by outflows, losing ground in Europe, and lost the heads of Binance UK and Binance US.

Binance is far from dead, but the weakness is very clear. In the meantime other exchanges have been taking advantage of the opportunity and gaining market share, signaling a shift in trader preferences. Despite claims otherwise from the founder CZ, the reality is that Binance is hurting.

The BIGGEST NFT Sales Over the Weekend:

Notable Threads You Might Have Missed:

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.