Introduction

In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of April 17. Our focus will be on the following developments:

• SEC Charges Bittrex and Calls 6 Tokens Securities
• Elon Musk’s TruthGPT
• Trump Drops S2 of His NFT Collection
• Nike releases an NFT Collection
• First-Ever US Nuclear-Powered BTC Mining Plant Goes Live

SEC Charges Bittrex and Calls 6 Tokens Securities

On Monday, the United States Securities and Exchange Commission (SEC) filed a lawsuit against crypto exchange Bittrex, accusing the platform of failing to register as an exchange, broker-dealer, or clearing agency. The SEC also identified six cryptocurrencies as securities, which could potentially be used as pivotal assets in the enforcement action against Bittrex.

The SEC’s complaint against Bittrex centers around the platform’s failure to register, which is a requirement for offering securities to customers in a regulated manner. To establish that Bittrex offered securities, the SEC needs to demonstrate that at least one of the tokens made available by the exchange is indeed a security.

SEC Chairman Gary Gensler has previously stated that the label of security applies to almost all cryptocurrencies except for Bitcoin. However, the SEC has specifically identified six tokens as examples of “crypto-asset securities” in the Bittrex lawsuit. These tokens include OMG Network (OMG), Dash (DASH), Monolith (TKN), Naga (NGC), Real Estate Protocol (IHT), and Algorand (ALGO). SEC has even indicated that there will likely be more, describing the lineup as a “non-exhaustive list.”

It is worth noting that none of the six tokens’ issuers are named as defendants in the Bittrex lawsuit, and the SEC has not announced any separate charges against them. This legal tactic is similar to the inclusion of coins in other lawsuits brought by the SEC. By making claims that tokens are securities without suing the actual tokens themselves, the SEC is asserting that they all fall under the classification of securities using the Howey Test. Read more on this here. 

Elon Musk’s TruthGPT

Tech entrepreneur and SpaceX CEO Elon Musk is reportedly developing an artificial intelligence language model called “TruthGPT” that he claims will seek maximum truth and aim to understand the mysteries of the universe. Musk made this announcement in an interview with Fox anchor Tucker Carlson on April 17. 

Musk’s announcement comes just weeks after he signed a petition calling for a pause on research related to Large Language Models (LLMs) to evaluate safety concerns. However, Musk believes that his new AI model could be the best path to safety, stating that an AI that cares about understanding the universe is unlikely to pose a threat to humans because we are an interesting part of the universe.

While Musk’s vision of a truth-seeking AI may sound appealing, he also expressed concerns about what he perceives as “left-wing” bias in the AI industry. Musk claims that current language models like ChatGPT are programmed by left-wing experts who train chatbots to lie and that this is a problem that his new model will seek to address.

Musk’s announcement raises important questions about the role of bias and objectivity in AI development. While it is true that some language models may exhibit bias, it is also important to recognize that AI models are only as good as the data they are trained on. Musk’s claims about left-wing bias may reflect his political views and should be scrutinized with a critical eye. Read more on this here. 

Trump Drops S2 of His NFT Collection

A second collection of Non-Fungible Tokens (NFTs) featuring former United States President Donald Trump has sold out, just one day after its initial launch on April 18. The collection, titled “Trump Digital Trading Cards Series 2,” featured 47,000 digital collectibles priced at $99 each, netting a whopping $4.65 million. The NFTs were minted on the Polygon blockchain and designed by artist Clark Mitchell.

Traders who purchased 47 tokens would be eligible for a dinner with Trump at his Mar-a-Lago estate in Florida, while those who purchased 100 would not only win the dinner but also a unique one-of-a-kind collectible with new rarity traits. Furthermore, the developers of the collection claim that each autographed card is digitally hand-signed by the former president.

Despite the hype surrounding the launch of the second collection, the secondary market for Trump Trading Cards appears to have cooled off this time around. With the price of ETH hovering around $2,000, the returns on the second collection seem to be lower for holders in terms of speculation and utility. The first collection, which boasted multiple sweepstakes featuring opportunities to win real-life experiences such as a Zoom call with Trump himself, a dinner in Miami, or a cocktail hour at Mar-a-Lago, may have set the bar too high for the second collection. Read more on this here. 

Nike releases an NFT Collection

Global sportswear giant Nike is set to launch its first Non-Fungible Token (NFT) sneaker collection on its Swoosh platform. The collection, named Our Force 1 (OF1), is a nod to Nike’s iconic Air Force 1 design. The digital sneaker collection will be available for purchase on May 10 through the Swoosh platform, but select users received airdropped “posters” on April 18, granting them early access to the sale on May 8.

OF1 comes in two digital boxes, the Classic Remix, and the New Wave, with each box type corresponding to different designs, including one co-created by four Nike fans in January. The price of each box is set at $19.82, a tribute to the year the Air Force 1 sneaker was first released. 

Holders of the OF1 boxes will be able to open them at a later date. Nike has also stated that each NFT will come with a paired 3D file that holders can use to “express themselves in new ways,” with plans to add broader utility, including “exclusive physical products or experiences,” in the future.

By offering so many OF1 NFTs at a relatively low and fixed price point, Nike seems to be taking an egalitarian approach to the sale. This, coupled with the element of community involvement, appears to be designed to prioritize community participation in Swoosh, as opposed to generating quick returns. Read more on this here.

First-Ever US Nuclear-Powered BTC Mining Plant Goes Live

TeraWulf, a US-based cryptocurrency mining company, announced that it has successfully energized its 50-MW stake in the Nautilus Cryptomine facility, marking the first-ever US nuclear-powered Bitcoin mining plant. This achievement is a milestone in the development of sustainable energy sources for cryptocurrency mining. The Nautilus facility is unique in that it is powered by over 91% zero-carbon energy.

The successful deployment of TeraWulf’s 50 MW share in phase one of the nuclear-powered Bitcoin mining facility – ahead of schedule – marks a significant milestone for the company. With the option to add 50 MW of mining capacity at the Nautilus facility in future phases, TeraWulf is well-positioned for growth. 

As per WatcherGuru, TeraWulf’s Lake Mariner location already has 60 MW of operational capacity and is in the final stages of construction on Building 2, which will increase Lake Mariner’s operational capacity to over 110 MW in the coming weeks. Combined, TeraWulf expects to have a total operational capacity of 50,000 miners (5.5 EH/s) in Q2 2023, presenting approximately 160 MW of power demand.

The use of nuclear power in cryptocurrency mining has long been touted as a potential solution to the industry’s significant carbon footprint. With more than 91% zero-carbon energy powering its mining facilities, TeraWulf’s facility sets a new standard for sustainability in the industry. Furthermore, the company’s expansion plans will enable it to continue to push the boundaries of environmentally conscious mining while also increasing its overall capacity and profitability.