💀 SEC attack! This is not over yet…

What's going on with the market, things to come for crypto, ideas, and more.

What's up, our loyal crypto enthusiasts and fans? This is the buidlbee crypto community team, which is also worried about what's going on and the uncertainties. However, it's not all that dark. You have to know how to pull it off and work toward the future. That's what we want to help you with.

Here's today's letter menu:

  • SEC escalation: why is the U.S. government doing this, and what do experts think;

  • The mysterious SmartMoney continues to make money even in an unpredictable market. Keep an eye on his new bets;

  • SHIB technical analysis: can the meme token break the resistance line?

  • New quest from Polyhedra.

What has happened in the last 24 hours:

  • The Bedrock update has been successfully deployed on the Optimism network;

  • The U.S. Securities and Exchange Commission (SEC) is asking the court to freeze the assets of Binance and CZ.

  • Coinbase has received an injunction to sue from 10 U.S. states.

  • NFT marketplace Mint Square will stop operating as of June 30.

  • Robinhood may delist tokens named in the SEC lawsuit against Binance and Coinbase: SOL, ADA, MATIC, FIL, SAND, NEAR, BNB, BUSD, COTI, and many more.

SEC — escalating attack on leading crypto exchanges

The absurdity of what's going on is that the US government is officially using Coinbase to sell its Bitcoins (previously confiscated) and simultaneously suing Coinbase for illegal cryptocurrency trading.

The SEC was probably somewhat disappointed after yesterday's attack on the world's first and second crypto exchanges, as 24 hours later the price of Bitcoin had fully recovered its initial losses, returning to around $27k. So on Wednesday, the decision was made to increase the level of pressure on the crypto industry.

Expanding the attack on Coinbase

  • In addition to the federal indictment, ten U.S. states are suing Coinbase. Coinbase also has 28 days to prove that it is not violating Alabama's laws (out of the 11 states in the indictment).

  • New Jersey immediately fined Coinbase $5 million.

  • Nevertheless, Coinbase Global says it will "continue to operate as normal" while the lawsuits are pending. Clearly, the business suffered a major reputational blow, with over $1B withdrawn from the exchange during the day.

Many Twitter readers rightly sneer at the SEC's accusations:

So, let me get this straight. The SEC says that “Coinbase has operated as an unregistered broker since 2019”. Yet Coinbase IPOd in April 2021. So you’re telling me that the SEC let an "unregistered broker" IPO - after carrying out due diligence? Well done Gary.

Expansion of attack on Binance

This morning, the SEC requested that a court urgently freeze the assets of Binance. In addition to Binance US, the SEC is asking the court to freeze all Binance assets, including personal CZ.

CZ itself clarifies on Twitter that the asset freeze request is solely for Binance US. Just a couple of hours later, a U.S. court granted the SEC's request to freeze the assets of Binance US.

The blow to altcoins

Yesterday, we predicted that altcoins listed by the SEC might soon face a massive dump.

Today, the Robinhood platform said it will delist the tokens mentioned in the SEC lawsuit against Binance and Coinbase this week, including Solana, Polygon, and Cardano.

Solana's value correction is a good example of how investors have reacted to the SEC's threats and the actual designation of it as an illegal security in the United States:

🙄 What's going on?

Cardano founder Charles Hoskinson has expressed concern that the ultimate goal of the lawsuit against leading exchanges is to artificially destabilize the crypto market and clear space for the creation of a government-owned digital currency (CBDC) aligned with a select group of powerful banks.

According to Hoskinson, everything that is happening goes beyond a mere discussion of compliance with the law. He believes it represents a conceptual disagreement over the existence of cryptocurrencies and their basic principles of decentralization.

Recall that $ADA is also on the list of illegal securities from the SEC, so the entire Cardano business in the U.S. could be arrested at any time.

The SEC attack has greatly increased DeFi trading volumes

Total daily trading volume on decentralized exchanges has increased by nearly $800 million over the past two days.

  • Average trading volume on the three largest decentralized exchanges (DEX) jumped 444% in the past 48 hours as investors were spooked by recent regulatory lawsuits against cryptocurrency exchanges Coinbase and Binance.

  • According to CoinGecko, total daily trading volume on Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC), which account for 53% of DEX's total trading volume in the last 24 hours, increased by more than $792 million between June 5 and 7.

  • In addition, trading volume on Curve, which allows you to trade stablecoins, was up 328%. Generally speaking, the DeFi industry is now experiencing a strong rebound and an influx of new funds from the centralized market, benefiting from the conflict between the leading CEX and the regulator.

💲 Ideas

🔔 [1] SmartMoney buys Ethereum

Yesterday we talked about another SmartMoney trade that bought $OP at the very bottom. Optimism's blockchain successfully completed a network update today, with the token up 5% overnight.

And then, early this morning, SmartMoney bought Ethereum. This time his trades are analyzed by Chinese analyst @EmberCN, who is also surprised by the luck of this trader. So far, since SmartMoney entered the market, ETH is up about 3%.

🔔 [2] Shiba Inu (SHIB): for better or worse?

In recent weeks, the Shiba Inu (SHIB) token hasn't been able to overcome the resistance level of $0.00000890. After the breakout, a bullish trend could have started, but a bearish candle appeared instead. The general downtrend for Shiba Inu continues, leading it back to the lower boundary of the short-term downtrend channel in the $0.00000780 range.

According to MonoCoinSignal's technical analysis, maintaining support in the $0.00000780-$0.00000700 range is very important for SHIB as it can contribute to a strong recovery of the cryptocurrency.

If the Shiba Inu token goes lower, it can cause a prolonged decline.

🔔 [3] Polyhedra's perks

The Polyhedra team has launched a new quest to celebrate its partnership with Layer Zero, which is valid through June 30. Polyhedra Network provides trustless and highly efficient interoperability solutions for asset transfers, message passing, and data sharing between various Web2 and Web3 systems.

What to do:

Let's hodl on together! The situation on the market right now is not easy, but sooner or later everything will settle down. So don't do anything rash, so you won't regret it later. To the moon! 🤘

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