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  • 10/11/24: MicroStrategy's End Game 🏦🏛️😭

10/11/24: MicroStrategy's End Game 🏦🏛️😭

Top News

  1. MicroStrategy wants to be the world’s leading Bitcoin bank

  2. SEC charges Cumberland for acting as unregistered dealer

  3. DeeKay gets hacked, had photo of seed phrase in Google Drive

Specs’ Insights

1. MicroStrategy wants to be the world’s leading Bitcoin bank

⌐◪-◪ → Michael Saylor just told analysts at Bernstein that he wants MicroStrategy to become the world’s leading Bitcoin bank worth over 1 trillion dollars.

Their strategy is simple: borrow money at low rates and use it to buy Bitcoin, where they expect returns of 30-50% a year for the next decade. Bullish.

For context, the company has been aggressively buying Bitcoin since 2020 and currently holds 252,220 Bitcoin worth over $15B — 1.2% of Bitcoin’s total supply. At a certain point, they’re going to have to change their name to macrostrategy.

2. SEC charges Cumberland for acting as unregistered dealer

⌐◪-◪ → The SEC just filed a lawsuit against Cumberland DRW for operating as an unregistered broker-dealer, and crypto Twitter is NOT happy about it.

Cumberland is one of crypto’s largest market makers and liquidity providers — buying and selling cryptocurrencies like Bitcoin, Ether, Solana, Polygon, and more. They make the market more efficient and facilitate large institutional investments.

The SEC alleges that since 2018, Cumberland has been, “operating as an unregistered dealer in more than $2 billion of crypto assets offered and sold as securities.”

The company has already responded to the SEC, criticizing their “enforcement first approach” and accusing them of stifling innovation in digital assets. Furthermore, the company said they are not making any changes to their business operations or the assets in which they provide liquidity — punk.

It’s starting to feel like Gary’s getting desperate. Even SEC commissioner Mark Uyeda called their approach to crypto a disaster.

3. DeeKay gets hacked, had photo of seed phrase in Google Drive

⌐◪-◪ → Today is a sad day. DeeKay, one of the kindest and most inspiring people in our space, just got hacked and lost all of his funds.

Fortunately, the hacker didn’t take any of his art, ownership of his smart contracts, or his NFTs (including a CryptoPunk) — ZachXBT has been helping DeeKay rescue those assets.

While this is certainly a tragedy, it’s a stark reminder to NEVER store your seed phrase online. DeeKay, unfortunately, stored a picture of his handwritten seed phrase on Google Drive, which probably led to his demise.

I have no doubt DeeKay will bounce back from this stronger than before; his charisma and energy cannot be killed.

If you’re not sure where to start with wallet security, read @punk6529’s thread on the Three Address Protocol (TAP).

If you’re confused, join Specs.Chat — we have some seasoned veterans in the chat who can help you stay safe on the internet.

Everything Else

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  • Scroll integrates Chainlink’s CCIP for cross-chain token transfers

  • DYdX Trading founder Antonio Juliano returns as CEO after 6 months

  • Ethena picks BlackRock’s BUIDL and others for $46M RWA investment

  • Crypto whale loses $35M in phishing attack

  • Justin Sun elected as prime minister or crypto micro nation Liberland

  • Ryan Salame adds “inmate at FCI Cumberland” to his LinkedIn

  • Binance pre-market trading goes live

  • Hyperliquid trader reveals $15.1M loss

🏦 Wallstreet & VC

  • BlackRock hits record $11.5T AUM

  • Ripple releases enhanced crypto custody services for banks

  • World Liberty Financial seeks to raise a $300M round

  • PiP World raises $10M to launch blockchain-baed game PiP Trader

  • Yala raises $8M to build bitcoin-backed yield-earning stablecoin, YU

🏛️ Legal & Regulatory

  • Trump’s lead over Harris on Polymarket grows to 13%

  • Commissioner Uyeda calls SEC’s approach to crypto is a disaster

  • FBI made $14,500 in profit from their memecoin NextGenAI

  • Razzlekhan should spend 18 months in prison says prosecutors

  • Sen. Hagerty shares draft stablecoin regulation bill

  • FTX customer sues hedge fund he sold his claims to

  • Ripple files notice of cross-appeal in ongoing litigation with SEC

  • Bitnomial exchange sues SEC for overreach

  • SEC settles with Rimar Capital for lying to investors about AI trading

  • Tezos staker Josh Jarrett sues IRS over token rewards tax policy

🌎 Rest Of The World

🖼️ NFTs & Metaverse

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