- Coinstack
- Posts
- FTX Reaches $200M Settlement With IRS
FTX Reaches $200M Settlement With IRS
The IRS initially claimed FTX owed more than $44 billion in taxes, but the amount was later reduced. Plus the top news, stats, and funding rounds of the week in crypto.
Learn More at www.fyde.fi
Issue Summary: Welcome back to Coinstack, the weekly newsletter for institutional crypto investors and industry insiders. We review the top news, stats, and reports in the digital asset ecosystem for our 250k weekly subscribers. This week, FTX reached a $200M settlement with the IRS, CZ began a four-month prison sentence, Coinbase accused the SEC of trying to destroy the crypto industry, and big new venture rounds came in for Babylon ($70M) and Fortunafi ($9.5M).
Price performance since we began writing Coinstack in January 2021
Published by Coinstack Partners
Coinstack Partners helps crypto/web3 companies raise funding from crypto venture capital firms and family offices for Series Seed/A/B/C rounds of $1M to $50M. The firm has relationships and access to all of the top 300 crypto venture capital firms across North America, Asia, and Europe. To discuss venture capital fundraising services for your company, please review our deck and schedule a free consultation.
Thanks to Our 2024 Coinstack Sponsors…
Fyde introduces AI-driven 'Liquid Vaults' to help crypto investors consistently lock in gains, earn yield, and stay liquid. Liquid Vaults are tokenized bundles of assets that can be traded and transferred, and use AI to mitigate risks. This innovation allows Fyde’s users to grow their crypto holdings faster with less volatility. To learn more, visit: Fyde Protocol or follow @FydeTreasury.
Become a Coinstack Sponsor
To reach our weekly audience of 250,000 crypto insiders, view our sponsor deck and schedule a call to discuss sponsoring Coinstack.
💵 Weekly Crypto Fundraises & Deals
Here are all the crypto fundraises we heard about this week, ranked by size…
🗞️ Crypto News Recap: The Top 5 Stories
Welcome back to This Week in Crypto… everything you need to know in one scannable format. Here are the top 5 stories of the week…
⚖️ FTX reaches $200M settlement with IRS on tax bill: According to a June 3 filing, the exchange and the IRS agreed to settle a $24 billion tax dispute. The IRS initially claimed FTX owed more than $44 billion in taxes, but the amount was later reduced. The settlement depends on the court’s approval of FTX’s reorganization plan.
👨⚖️ Binance founder CZ begins four-month prison sentence as the country's richest inmate: Binance founder Changpeng Zhao, a.k.a CZ, has reported to a low-security California facility in order to begin his four-month federal prison term as the country's richest inmate.
⚖️ Coinbase accuses the SEC of trying to destroy the crypto industry in final push to get the agency to write rules: An appeals court should order the U.S. Securities and Exchange Commission to start writing rules for crypto, Coinbase argued in its final push for rulemaking.
👩⚖️ FTX lawyers and advisors charged over $500 million in bankruptcy process so far: FTX lawyers and advisors have seen over $500 million in fees approved from the estate as the bankruptcy costs keep rising.
🚀 LayerZero adds Solana to its cross-chain bridge network: LayerZero, an interoperability protocol for cross-chain asset transfers, has announced the addition of Solana to its network of more than 70 blockchains.
Coinstack Daily
We’re launching a new daily edition Coinstack that covers all the day’s news and funding announcements. If you’d like to join our daily edition, subscribe here.
💬 Tweet of the Week
Source: @pythianism
📊 Key Stats of the Week
Here are the most important and interesting stats in crypto this week...
1. Polymarket MAUs going vertical
Source: @tokenterminal
2. Here's how much onchain profit L2s earned in May
Onchain profit = Revenue from L2 gas fees - Costs of posting batches and verifying proofs on L1
1. Base - $6.98M
2. Optimism - $1.57M
3. Scroll - $1.35M
4. Arbitrum - $802k
5. Linea - $612k
Source: @0xKofi
3. We have crossed $160b of stablecoin issuance (over 90% in tether and usdc) with $2-3T+ in monthly volumes.
Source: @jamesjho_
4. Tokenized treasuries are approaching $1.5b of issuance
Source: @jamesjho_
5. The ALT buy signal has reached its lowest point since 2021 meaning its the best time to buy ALTs. Expect a huge reversal in the 2H of 2024
Source: @1995research
6. Top Moving Coins From the Top 100
📝 Highlights from the Top Crypto Reports
Here are the top highlights from the best crypto research reports this week…
About the Author: Cole DeRousse serves as a Research Assistant at 1995 Digital Asset Research, where he blends technical research with social investing strategies. His primary focus is on fostering the growth of the Web3 community and ecosystem, aiming to awaken people to the transformative power of Web3 apps and technologies. This is an excerpt from the full article, which you can find here.
Introduction
The phrase "Winners average winners," popularized by HsakaTrades and akin to "let your winners ride" from the 'All in Podcast,' underscores a crucial investment strategy in the digital assets space. It suggests that rather than cashing out, investors should focus on compounding gains by continuing to invest in their best-performing assets. The rationale is simple: identifying a winning asset is challenging, and once you have a winner, its potential to outperform the market (in our case btc/eth) can be significant, especially if it leads its respective buzz narrative sector and is a bull trend versus its BTC and Eth pair. This strategy embodies the 20IQ trading style with the simple thesis of ‘Strong Coin = Good Coin’, which ironically 150iq market participants do the same because they understand that the strongest coin is usually the cycle leader for the respective narrative. In this report, we go through the 3 hottest narratives and the cycle leader based on relative strength which embodies the ‘winners average winners’ strategy.
AI Narrative Cycle Leader - Render
AI Sector: In the realm of Artificial Intelligence, Render (RNDR), partnered with Apple, stands out for its significant traction and integration in AI features like Chatgpt and graphic rendering. Nosana (NOS) on Solana follows as an exceptional candidate, resembling an early-stage RNDR, exclusively available on Jupiter—a promising factor for those looking to replicate Render’s success trajectory. Lastly, Prime Echelon, an innovative AR/VR card game, rounds out our AI sector picks, leveraging the increasing popularity of immersive gaming experiences to establish its market position.
Honorable Mention: Oasis Network ($ROSE): For this honorable mention, I want to spotlight Oasis Network, which is carving a niche in decentralized data governance and privacy-enhancing technologies. Although $ROSE has not yet distinguished itself as a top performer, it possesses all the makings of one. The partnerships with industry giants like Meta and Google Cloud underline its legitimacy and potential in the AI field—distinguishing it from many projects that promise much but deliver little. Furthermore, Oasis's development activity surpasses that of other AI contenders, such as Tao, setting a robust pace in project advancements. Led by Dawn Song, a renowned AI researcher who consults for figures like Elon Musk and Vitalik Buterin, the project's leadership, active development, and high-profile collaborations collectively signal that $ROSE could emerge as a frontrunner in the AI sector as the broader market begins to appreciate its underlying value and technological contributions.
🎧 Top Crypto Podcasts of The Week
Here are the crypto podcasts that are worth listening to this week...
Additional Coinstack Sponsors
Hive Digital is a leader in providing SEO and PPC services. If you want to expand your organic presence and paid leads from Google and Facebook, get a proposal from Hive Digital at www.hivedigital.com.
💬 Join The Coinstack Telegram Community
Join our Telegram Channel here to chat with our community, ask questions, and learn more about the future of money as we move to a decentralized internet and the creation of a new open global monetary system that works for everyone.
💬 The People We’re Following Closely on Twitter
📚 How To Get Started With Crypto Learning
Crypto: Explain It Like I’m 5 (Article)
Bankless - The DeFi community (Substack + Podcast + Discord)
Understanding Polkadot - The Next Generation Blockchain Tech (Website)
Blockgeeks Video Tutorials (Video)
The Coinstack Website (Website)
2008 Bitcoin Whitepaper (PDF)
2013 Ethereum Whitepaper (PDF)
Tracking the most important blockchain stories of the 2020s, including a decentralized internet and the creation of a new open global monetary system that works for everyone. As always, published for informational purposes only. Please do your own research. Just our opinions. Not intended as financial advice as we are not financial advisors. We may own some of the digital assets we write about as we believe strongly in the sector. Please do your own research. Published and written weekly by Ryan Allis and Mike Gavela.
Coinstack is a news and analysis newsletter for the digital asset industry. None of the information here is a recommendation to invest in any securities or other types of investments. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in loss.
Comments and thoughts are welcome on our Telegram channel:
Website at Coinstack.co
Substack at Coinstack.substack.com
Twitter at twitter.com/coinstackcrypto
Telegram channel at t.me/thecoinstack
Sponsors: See our Coinstack sponsor deck
Please share with your friends and colleagues.
Learn More at www.fyde.fi