Chain Reactions: Elon Musk seeks dismissal of Dogecoin lawsuit; Liberal senator wants swift crypto regulatory action
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Afternoon, Coinheads. Rounding up a final look at the crypto market for the day, plus a few news items, including Elon Musk calling for a Dogecoin lawsuit to be dropped and a new crypto regulation bill being pushed by Liberal Senator Andrew Bragg.
But first, let’s just quickly check in with probably the biggest two factors that drive the crypto market. Fear and Greed.
As the index’s compilers, alternative.me note, there are two simple assumptions behind this market sentiment tracker:
Greed is prevalent at the moment. Although we’re still quite a ways off “Extreme Greed”. Does this then mean that the market’s about to dip a little? Highly possible, if not likely, according to some of the traders and analysts we regularly follow. Those same analysts are still fairly bullish mid to long term, however.
• Elon Musk has reaffirmed his belief in Dogecoin (DOGE). Or at least lawyers acting on his behalf have, describing it as a “legitimate cryptocurrency” and calling for a US$258 billion Dogecoin-manipulation-themed lawsuit against Musk to be thrown out on the grounds it’s a “fanciful work of fiction”.
Musk was accused by a group of investors of running a pyramid scheme to support Dogecoin and intentionally driving up its price to make billions of dollars in profit.
Per a Reuters report:
“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion,” Musk’s lawyers said. “This court should put a stop to plaintiffs’ fantasy and dismiss the complaint.”
How’s DOGE faring today, by the way? Not so great over the past 24 hours, actually, with an 8% dip. At least it’s still maintaining its top-10 crypto major status, though and is up about 5% over the past week.
• Australian Liberal Senator Andrew Bragg has introduced a new private bill titled the “Digital Assets (Market Regulation) Bill”. Given the uncertain regulatory climate for crypto globally, there is a sense of urgency among the crypto industry to put innovation-friendly regulations in place and at least attain clarity.
Bragg was instrumental last year in drafting a detailed set of recommendations for the regulation of the space in Australia, which was formed with heavy consultation from several local crypto industry entities and the peak body Blockchain Australia. There is a clear sense of frustration from Bragg, and many within the industry in Australia, that the Labor government has been too slow to react with its crypto token-mapping exercise and regulatory plans.
— Senator Andrew Bragg (@ajamesbragg) March 30, 2023
Bragg says that Australia has been “losing the race to regulate” under a Labor government, adding:
“Australia can be a digital asset hub whilst protecting digital asset consumers. But we must act now.”
• German Stock Exchange Boerse Stuttgart is set to provide crypto custody through licensed subsidiary Blocknox, reports Bitcoin.com and other global crypto media.
Boerse Stuttgart is the second-largest stock exchange in Germany and one of the largest in Europe and will soon, reportedly, be approved to offer European banks, brokers, asset managers, and family offices with both trading and custody solutions for crypto-asset offerings.
With the overall crypto market cap at US$1.2 trillion, down about 2% over the past 24 hours, here’s the current state of play among top 10 tokens – according to CoinGecko.
Bitcoin has lost that US$28k psychological level of support it was hanging onto all weekend. Whether it regains it quickly this week might well depend on how Wall Street shapes up overnight (AEDT).
And on that, according to Stockhead‘s non-fungible Christian “They Still Love Me in China” Edwards, things could be, amazingly, looking up in global markets because of three things, and I quote:
That’s all well and good and cause for some crypto-market-correlated hopium.
Christian caveats, however, that: “it’s still way too early to close the case on contagion for this particular outbreak of FINANCIAL-19”. Read his highly informative Trader’s Diary for more on all you need to know for the week ahead from a macro perspective.
• Lukso (LYXE), (market cap: US$129 million) +6%
• Flex Coin (FLEX), (mc: US$246 million) +4%
• Synthetix Network (SNX), (mc: US$832 million) +3%
• Stacks (STX), (mc: US$1.22 billion) +1%
• Aptos (APT), (mc: US$2.06 billion) +1%
• Floki (FLOKI), (market cap: US$328 million) -10%
• Conflux (CFX), (mc: US$747 million) -9%
• Kaspa (KAS), (mc: US$670 million) -7%
• Loopring (LRC), (mc: US$440 million) -7%
• Shiba Inu (SHIB), (mc: US$6.3 billion) -6%
Some pertinence and randomness that stuck with us on our morning moves through the Crypto Twitterverse.
It hasn’t been the best 24 hours for layer 2 Ethereum scaling project Arbitrum, given the amount of confusion, dissent and poor communication based around its governance proposal AIP-1. See this morning’s Mooners and Shakers for some details on the controversy.
Arbitrum discord server right now. 😂 pic.twitter.com/6Gsi83EoSI
— Duo Nine ⚡ discord.gg/ycc (@DU09BTC) April 2, 2023
It now appears that the project’s Foundation is re-thinking the original proposal after community backlash and will break it up into more digestible topics and proposals. The team noted this afternoon:
“AIP-1 is too large and covers too many topics. We will follow the DAO’s advice and split the AIP into parts. This will allow the community to discuss and vote on the different subsections.”
gm to everyone…
Except for the guy hoping for “one more dip” because a 12 month bear market wasn’t long enough for him to get his shit together. 😂 🤦🏻♂️
☕️ 👌 😘
— Bitcoin Archive (@BTC_Archive) April 3, 2023