• Coinstack
  • Posts
  • SEC's Crypto Enforcer David Hirsch Quits

SEC's Crypto Enforcer David Hirsch Quits

David Hirsch, head of the SEC’s Crypto Asset and Cyber Unit, has left the agency after nine years. Plus the top news, stats, and funding rounds of the week in crypto.

Author

Ryan Allis
June 19, 2024

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, the SEC's Crypto enforcer David Hirsch quit, Gemini announced it will pay $50M in settlement with NY attorney general's office, Terraform Labs announced it will dissolve after a $4.5B SEC settlement over LUNA, and big new venture rounds came in for Renzo ($17M) and Layer3 ($15M). 

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…

Amphibian Capital, managing $70M+ AUM, is a fund of the world's leading hedge funds. +11.20% net YTD with their USD fund, +9.29% net YTD in their ETH fund (80.01% in USD terms). They target consistent risk-adjusted returns for long-term BTC & ETH holders. Learn more: www.amphibiancapital.com.

1995 Digital Asset Research pushes the boundaries of conventional investment wisdom, uncovering hidden market secrets to provide you with a truly unique and unmatched edge. Our emphasis on broader market cycles and in-depth analysis of on-chain crypto projects aims to help you achieve your investment goals. With our actionable insights, market research, and Web 3 tech tutorials, we empower you in the crypto universe, awakening you to the immense power of digital assets.

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…

Back to Basics: Navigating Market Cycles for Clearer Investment Decisions
by Digital Asset Research

1995 Digital Asset Research serves actionable insights, market research, and Web 3 Tech Tutorials for informed investing. This is an excerpt from the full article, which you can find here.

Whenever a market starts to play tricks on you always go back to square one. Start with the simplest analysis and build out from there.

The first step when addressing any market is figuring out the structure. Are we in a structural bull market or a structural bear market? It’s a pretty simple way to look at the market but it can save you a lot of money.

If the markets are making higher highs and higher lows, you are in a bull market. If the market is making lower highs and lower lows you are in a bear market. It’s really that simple. From there you can determine the shorter swing moves to capitalize on but that generally tells you if you should be long or short.

There seems to be a lot of confusion still on where we are at in the cycle whether it’s stocks or cryptos.

Cryptos have been in a 90 plus day consolidation period which has a lot of people second guessing this bull market. Stocks on the other hand are even more surprising given that they are in a strong uptrend making record highs last week yet the market is still in a state of fear.

There is a strong disconnect right now with the way people perceive things and the way that they actually are. The reality is that the market is in a very strong bull trend. However, people don’t quite feel it because of the effects that inflation has had on household’s bottom line.

Just last week the market hit all time highs yet consumer sentiment on the economy came in at its lowest level since December 2022. In short there is a large disconnect between the what the markets are telling us and what the everyday person will tell us.

And although the everyday citizen may still be feeling the effects of high inflation we ultimately have to respect what the markets are telling us and that is that we are still in the early stages of a huge bull market.

Below is a weekly chart of the S&P500

There isn’t much to analyze about this chart. It’s a clearly strong bull market that just made record highs last week. This week the most important economic data coming out will be some employment numbers towards the end of the week.

Nothing stands out here to me as a red flag. We have covered the seasonality and the cycles of this chart in the previous weeks (hint: they are bullish). We also don’t have any important dates this week. The next date to watch will be the 22nd of June which is a natural date being the start of summer.

That may be another buying opportunity if the market makes a small correction here.

🗞️ 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… 

  1. ⚖️ U.S. SEC's Crypto Enforcer David Hirsch Quits: Hirsch was the chief of the crypto asset and cyber unit in the Division of Enforcement at the U.S. SEC.

  1. 🧑‍⚖️ Crypto exchange Gemini to pay $50 million in settlement with NY attorney general's office: Crypto exchange Gemini agreed to pay $50 million worth of digital assets to Gemini Earn investors as part of a settlement announced by the New York Attorney General on Friday. 

  1. ⚖️ Terraform Labs to Dissolve After $4.5 Billion SEC Settlement Over LUNA, UST: “Terraform Labs always intended to dissolve at some point, and that point is now,” Amani wrote on Twitter (aka X) “We will be winding down operations completely.”

  1. 🚀 Tether launches token 'supported' by Swiss-stored gold as part of new line of synthetic crypto: Tether, the world's biggest supplier of dollar-pegged stablecoins, announced it is unveiling a new category of crypto called "tethered assets."

  1. 🚜 Fyde just rolled out their Telegram App: Users can now farm FYDE points directly on Telegram, complete tasks for bonus points, and be rewarded for referring more friends! All users qualify for the $FYDE airdrop coming imminently.

📊 Key Stats of the Week

Here are the most important and interesting stats in crypto this week...

1. NEAR is a leading chain for mainstream end users, with the bulk of its network activity coming from applications in the consumer vertical.

Source: @OurNetwork

2. Lido generates the most Fees out of all applications in crypto

Source: @tokenterminal

3. NEAR Continues to Lead among its L1 peers, with its All-Time High 2.3M Daily Active Addresses

Source: @OurNetwork

4. Aerodrome, a Base-native DEX, generates more fees than the underlying L2.

Source: @tokenterminal

5. TVL on NEAR grows more than 2x in 2024 to $280M+

Source: @OurNetwork

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

Now is the time to LOCK IN like Davis Clarke aka the most ‘Locked In’, guy on the internet. The Total 3 fractal from Oct and Nov of 2020 is nearly identical to what we currently see from Total 3 at the time of writing on June 13th, 2024. The craziest part about this fractal is that it has been insanely correlated on a time basis, if this fractal were to play out we should see some relief in crypto markets heading into the weekend. We have had June 18th as one of the most important days of the year based on our Gann Analysis. We expect June 18th to be a major inflection point in markets. If we break out of this range by June 18th it will confirm a very exciting summer for crypto investors.

Here is the fractal overlayed with where we are and a comparison to XRP in Oct/Nov 2020. You can see this where we are now in Total 3 looks identical to the final low for XRP before it went on its infamous 2020 bull run. In a previous report, we showed the BNB chart and noted how it has already made new highs. Could BNB be showing the hand of the market for XRP and Total 3 in general? It sure seems that way, the confluence with 2020 is uncanny, and as long as Total 3 holds the April 13th low the bullish thesis this fractal suggests remains our base case.

As I mentioned above the craziest thing about these fractals is how correlated they are time-wise. If this fractal continues to play out you would want to get your bets placed before July because the markets WILL NOT be waiting around for you. Remember all the bears on your timeline, take a good hard look, remember thier pfp’s bookmark their midwit IQ takes, and realize you need to be greedy when others are fearful and take contrarian high-conviction bets NOW while sentiment is in the gutter. Stay composed, be like Chicken Joe, and position with size now so you don’t have to fomo in later.

🎧 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 for blockchain, DeFi, Web3, and crypto companies. 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

📰 The Coinstack Newsletter:

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:

Please share with your friends and colleagues.