The Breakdown First Five - Tuesday, April 30, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Hong Kong ETFs Disappoint

Spot crypto ETFs commenced trading in Hong Kong but volumes massively underperformed expectations. Three Bitcoin ETFs saw a collective $8.5M in volume, while the three ETH products managed only $2.5M. The combined $11M in volume fell short of estimates between $100M and $250M. By way of comparison, US based ETFs managed $4.6B in volume on their first trading day. 

4. Record Low Hashprice

Bitcoin hash price has hit a record low, dropping to 10% below previous lows from November 2022. Enthusiasm for Runes and the lucrative fees that came alongside has dried up, leaving average Bitcoin transaction cost at just $7, down from more than $100 on halving day. We’re now at the point where the average Bitcoin miner is hashing at a loss, which will make for some tough decisions. Blocktime has slowed down suggesting a drop in hashrate is coming. 

3. Lopp Ruins Jacuzzi

Casa CTO Jameson Lopp has attacked the Bitcoin testnet in an attempt to make a point. Lopp has been warning of testnet vulnerabilities and suggesting fixes but received little response. So he decided to carry out a trivial attack, using 20 lines of code and $1 of electricity to render the testnet unusable. Developers are now focused on solutions rather than ignoring the problem, but some are incensed that Lopp decided to ruin the jacuzzi. 

2. Samourai Founder Pleads Not Guilty

Samourai wallet founder and CEO Keonne Rodriguez has pleaded not guilty to charges of conspiracy to commit money laundering and operate an unlicensed money transmission business. He has been released on a $1M bond and prohibited from making crypto transactions. Fellow co founder William Hill is still being extradited from Portugal. This is the first indication the founders intend to fight the case which has ignited the Bitcoin community. 

1. CZ Sentencing Hearing

CZ will face sentencing in a Seattle court later today. The DOJ have requested 36 months in prison, calling his actions a “willful violation” of US law. CZ has apologized for his conduct, stating that this will be his “only encounter with the criminal justice system”. His team are requesting probation, noting that no one has ever been imprisoned purely for failing to operate AML procedures. Polymarket is handicapping a 50% chance that CZ gets less than a year.