The Breakdown First Five - Tuesday, May 28, 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. Celebrity Coin Debacle

We’re now at the point in the cycle where Caitlyn Jenner launches a memecoin. The Kardashian adjacent celebrity launched a memecoin over the weekend in collaboration with a serial rug artist, to predictable results. Bizarre AI videos were debunked in real time, but ultimately the coin really was endorsed by Jenner. She claimed the rug wasn’t her intention and has now claimed she was scammed. Crypto continues to be the most bizarre industry ever. 

4. Mt Gox Wallets Moving

The Mt Gox distribution appears to have begun, with over $7B worth of Bitcoin moved from Mt Gox wallets so far. The wallets have been dormant since 2014. The final date for the distribution is in October. The Mt Gox distribution has been one of the largest overhangs in the market for almost a decade, but it appears the day is finally here. We’ll have to see how the market digests with over $9.4B worth of unlocked supply. So far, Bitcoin is down 2% on the news. 

3. EU Looking At MEV

Following shortly after the first criminal case involving MEV, the European Union will consider MEV under draft standards for its MiCA rules. Rulemakers are querying whether MEV in all its forms should be considered illegal market abuse. It’s unclear how regulators would actually enforce a rule against MEV, but this may be a starting point for more granular rules of the road. Feedback is requested over the coming month. 

2. Coinbase Pushes Appeal

Coinbase have filed their final documents seeking to appeal their SEC lawsuit. The highly unusual interlocutory appeal would deal with a single aspect of the case, whether or not tokens are investment contracts even if they have no contractual rights attached. Coinbase argues that the Supreme Court has never found this to be the case, making the question ripe for appeal. The recent House votes on FIT21 also muddies the waters. 

1. Trump Doubles Down on Crypto

Former President Trump has reinforced his position as the pro-crypto candidate. At the Libertarian Party Convention, Trump said he will ensure that the future of Bitcoin and crypto is made in the USA. He also committed to protecting the right to self custody. The biggest cheer of the night came when Trump said he would free Silk Road founder Ross Ulbricht on the first day of his presidency. Industry figures are increasingly getting behind the Trump candidacy.