Bitcoin exchange supply may vanish in 9 months

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Bitcoin exchange supply may vanish in 9 months

According to a recent Bybit report, Bitcoin’s supply on exchanges is predicted to be exhausted within nine months due to the upcoming Bitcoin halving event, which will cut the supply issuance by 50%, and the persistent accumulation by U.S. Bitcoin ETFs. The report suggests that with only 2 million Bitcoins left in centralized exchanges and a daily inflow of $500 million to Bitcoin Spot ETFs, the remaining Bitcoin reserves on exchanges could deplete rapidly.

Exchange reserves of Bitcoin have already dropped to a near three-year low, as per CryptoQuant data, with just 1.94 million BTC available as of April 16. This decrease in supply coincides with a broader market downturn, which has seen Bitcoin’s price fall over 10% in the past week. Despite this, Bybit anticipates a price recovery post-halving due to the impending supply squeeze.

Institutional interest in Bitcoin continues to grow, with a notable increase in Bitcoin allocations by both crypto-native firms and traditional institutions. Bybit’s asset allocation report highlights that institutions are now allocating an average of 40% of their total assets to Bitcoin, while retail investors are averaging a 24% allocation. The report also indicates that more institutions are likely to invest in Bitcoin as they become more comfortable with newly approved investment products like Bitcoin Spot ETFs.

Worldcoin debuts human-focused World Chain network

Worldcoin has unveiled World Chain, a blockchain network emphasizing a human-first approach to Web3, aiming to improve efficiency and utility. The network, which has already seen over 10 million World IDs and 75 million transactions, is designed to scale as a layer 2 solution alongside Ethereum. World Chain will prioritize human users to prevent congestion typically caused by bots competing for block space.

Tiago Sada, Worldcoin’s head of operations, explained that World Chain will offer an open network with a unique feature: prioritizing transactions from verified World ID holders. This approach ensures human users’ transactions are processed swiftly, while bots and heavy users will fill the remaining block space. Verified users will also benefit from a gas allowance, reducing entry barriers for new participants by making initial transactions gas-free.

Worldcoin is preparing for a full launch of World Chain in the summer, following a developer preview. The project has been enhancing privacy measures and compliance, making its orb software open-source, and introducing a personal custody privacy feature. These developments come as Worldcoin addresses global regulatory scrutiny and aims to ensure its platform is secure and responsibly accessible.

OMNI token suffers 55% drop post-airdrop

The Omni Network’s native token, OMNI, experienced a significant price drop of 55% within 18 hours following its airdrop to testnet users and select NFT holders. The airdrop distributed 3 million OMNI tokens, which is 3% of the total supply, to community contributors. The token’s market capitalization plummeted from $560 million to $267.5 million, with the price falling from $53.80 to around $24. Concurrently, a fraudulent token with the same name underwent a “rug pull,” with its value collapsing entirely.

The airdrop allocated half of the tokens to early testnet participants and community members, while the rest were shared among EigenLayer restakers and holders of certain NFT collections, such as Pudgy Penguins. The eligibility for the airdrop was based on a snapshot taken on April 3. The Omni Network has also reserved a significant portion of OMNI tokens for ecosystem development and future public launch incentives.

In addition to the legitimate airdrop, a scam involving a fake OMNI token emerged, leading to a $398,000 exit scam. The counterfeit token’s creators dumped an enormous amount of the fake OMNI for 132 Wrapped Ether (WETH), as reported by blockchain security firm PeckShield. This incident serves as a reminder of the risks associated with airdrops and the importance of due diligence in the cryptocurrency space.

Binance obtains full Dubai VASP license

Binance has secured a Virtual Asset Service Provider (VASP) license in Dubai, marking a significant regulatory milestone for the cryptocurrency exchange. The license was granted after Binance co-founder Changpeng Zhao relinquished his voting rights in the Dubai-based entity, a move that aligns with the exchange’s efforts to comply with global regulatory standards. This development comes after Binance faced intense scrutiny and agreed to a multi-billion dollar settlement with U.S. authorities over Anti-Money Laundering violations.

The Dubai Virtual Assets Regulatory Authority (VARA) required Zhao to step back to avoid conflicts with Binance’s recent U.S. legal settlement. Despite Zhao’s reduced role, he retains ownership of the parent company of Binance’s Dubai operations. The full VASP license allows Binance to expand its services in the United Arab Emirates, a region keen on establishing itself as a hub for Web3 and digital asset innovation.

Binance’s acquisition of the full license in Dubai is a strategic move for the company’s growth, especially as it seeks to diversify its presence globally. The license, initially granted as a minimal viable product in September 2022, now enables Binance to offer a broader spectrum of digital asset services to both retail and institutional investors in the region. This step is part of the UAE’s broader initiative to transition from a fossil fuel-reliant economy to a more diversified, tech-driven one, with a focus on cryptocurrency and blockchain technology.

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