SEC Wins Case Against Terraform Labs; Bitcoin Halving's Impact on Profitability; Solana's Record Transaction Fail Rate
Summary:
The U.S. SEC has won a civil case against Do Kwon and Terraform Labs, holding them responsible for defrauding investors. In contrast, the Bitcoin halving won't necessarily decrease miners' profitability, according to Acheron Trading's CEO, Laurent Benayoun. On the other hand, Solana's non-vote transaction failure rate has reached a record high of 75% due to the recent surge in activity on the network, leading to a diminished user experience.
The civil lawsuit brought on by the U.S. Securities and Exchange Commission (SEC) against Terraform Labs and its former head, Do Kwon, has concluded, culminating with a jury decreeing Kwon and his now-defunct firm responsible for investor defraudment. Following rapid deliberation, the decision was announced shortly after reports circulated concerning the SEC's assertions during the trial that Terraform was founded on dishonesty. The SEC's enforcement director, Gurbir Grewal, voiced his satisfaction at the jury's finding of Kwon and Terraform Labs culpable for substantial cryptocurrency deception. He stated that they both misled investors about the security of their cryptocurrency asset and the so-called algorithmic stablecoin, Terra USD. Furthermore, they provided false information concerning a widely used payment application that utilized Terraform's blockchain for transactions. Terraform Labs dramatically fell apart in May 2022 when its algorithmic stablecoin collapsed, causing a broad impact throughout the cryptocurrency industry. Meanwhile, Kwon, arrested in Montenegro last March, continues to stay there after his extradition got canceled on April 5.
Contrary to popular belief, the profitability of Bitcoin mining isn't assured to go down after the imminent Bitcoin halving. Laurent Benayoun, Acheron Trading's CEO, shared with Cointelegraph that miners' earnings might not necessarily decrease following the halving. This is due to an anticipated rise in network fees balancing out the decrease in mining rewards. The Bitcoin halving slated for April 20 will bring down block issuance rewards from 6.25 BTC to 3.125 BTC. In prior halvings, this decrease forced smaller mining entities out of the competition. However, things might pan out differently after the 2024 halving due to the rise in network fees spurred by Ordinals inscriptions and Bitcoin-native decentralized finance (BTCFi).
Meanwhile, Solana, a blockchain network, has experienced a record high failure rate for its "non-vote" transactions, reaching 75%. The sudden surge of activity caused by the recent meme coin craze on Solana is to blame. Despite complaints by users about failed transactions and a decline in user experience, advocates maintain that the data is being misinterpreted. Data from Dune Analytics reveals that on April 4, more than 75% of all "non-vote" Solana transactions failed. Addressing this issue, Helius CEO and a staunch Solana supporter, Mert Mumtaz, objected to the assertion that 75% of transactions were unsuccessful, affirming that most of these failed "non-vote" transactions were simply "bot spam.
Published At
4/5/2024 11:17:48 PM
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