Hey there, PoI readers! 🙌

Mochi here, ready to serve up another delightful dish of crypto and web3 news. From the SEC's final reply in the Ripple XRP case and Ether's inflationary twist to Binance and DWF Labs' market manipulation denial and Nexo's generous anniversary celebration, we've got a smorgasbord of fascinating developments to explore. So, grab a seat at the table and let's dig in! 📰

INTEL BRIEF

🟧 The SEC has filed its final reply in the remedies stage of the Ripple XRP case, challenging Ripple's claims and emphasizing the need for injunctions to prevent future violations.

🟧 Ether's supply has become inflationary for the first time since the Merge, following the Dencun upgrade that reduced transaction fees on the Ethereum network.

🟧 Binance co-founder Yi He and market maker DWF Labs have denied allegations of market manipulation brought forth by The Wall Street Journal, with both firms defending their integrity and commitment to ethical practices.

🟧 Nexo, a crypto lending protocol, is allocating 10 million NEXO tokens (worth $12.5 million) to users as part of its sixth-anniversary celebration, incentivizing them to engage with the platform's services.

SEC Fires Back in Final Reply to Ripple's Remedies Brief

In the latest development of the ongoing legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC), the SEC has filed its final reply in the remedies stage. The SEC's response challenges Ripple's assertions and highlights the necessity for injunctions to prevent future violations.

The SEC argues that Ripple's claims of acting without recklessness and the lack of "widespread uncertainty" about XRP's legal status do not hold water, given the court's previous rejection of the "fair notice" defense. The regulatory body also maintains its stance on the likelihood of Ripple engaging in similar actions in the future, despite the blockchain startup's cooperation since the lawsuit's initiation in 2020.

According to the SEC, Ripple's assurances about changing its behavior post-lawsuit do not justify avoiding injunctions. The SEC contends that Ripple misinterprets the order and fails to accept its implications for compliance, dismissing Ripple's claims about conducting sales outside the U.S. and to accredited investors, as these defenses were abandoned during summary judgment.

In response to the SEC's reply, Ripple's chief legal officer, Stuart Alderoty, criticized the SEC for its inconsistent application of the law and expressed optimism about resolving the XRP lawsuit.

As the crypto community eagerly awaits the case's outcome, analysts anticipate a final judgment around September.

The SEC has filed its final reply in the Ripple XRP case, challenging Ripple's claims.

The SEC emphasizes the need for injunctions to prevent future violations, despite Ripple's assurances of compliance.

Ripple's chief legal officer remains optimistic about resolving the lawsuit, with a final judgment expected around September.

Ether Loses Deflationary Status Post-Dencun Upgrade, Sparking Debate on "Ultra Sound" Money

The Ether supply has become inflationary for the first time since the Merge, which transitioned Ethereum to a proof-of-stake consensus model in September 2022. This shift comes on the heels of the Dencun upgrade, which went live two months ago and significantly reduced transaction fees on the network.

According to data from CryptoQuant, the total Ether supply increased from 120 million on March 12 to 120.1 million on May 7. While this may seem like a small increase, it marks the first time Ether supply has turned inflationary since the Merge introduced a mechanism that permanently burned transaction fees, resulting in a decreasing Ether supply.

Ki Young Ju, the founder and CEO of Cryptoquant, believes that Ether temporarily losing its deflationary status is not critical for the Ethereum network, as its main benefits are more related to decentralized applications (DApps). In a recent X post, he stated, "Post-Dencun upgrade, $ETH lost deflationary status with reduced fees, departing from "ultrasound money." Ethereum's strength lies in DApps; it's wiser not to compare it to Bitcoin's sound money narrative."

However, the Dencun upgrade's impact on Ether's status as "ultra sound" money has sparked debate within the crypto community. A May 8 report by CryptoQuant suggests that the upgrade "potentially kill[ed] the narrative of "Ultra sound" money" due to the structurally lower amount of transaction fees burned on Ethereum, which has not decreased the total supply of ETH enough to keep it deflationary.

As the crypto world continues to monitor the effects of the Dencun upgrade on the Ethereum network and Ether's supply, it remains to be seen how this development will impact the long-term perception and adoption of Ether as a store of value.

Ether supply has turned inflationary for the first time since the Merge due to the Dencun upgrade reducing transaction fees.

The shift has sparked debate about Ether's status as "ultra sound" money, with some suggesting the narrative may be dead.

The long-term impact of this development on Ether's perception and adoption remains to be seen.

Binance and DWF Labs Deny Market Manipulation Allegations, Defend Integrity

In the wake of recent allegations of market manipulation brought forth by The Wall Street Journal, Binance co-founder Yi He and market maker DWF Labs have vehemently denied any involvement. The report claimed that DWF Labs, one of Binance's largest trading clients, engaged in market manipulation, wash trading, and inflated trading volumes amounting to $300 million through deals with crypto projects.

In an X post on May 9, Yi He described the media report as an occurrence that "greatly increased our exposure and saved us a lot of marketing budget." However, she denied the allegations made against Binance, stating that some mainstream media articles are "increasingly driven by emotions and biases rather than facts." She highlighted Binance's proactive assistance to law enforcement agencies in investigating and apprehending the mastermind behind Zkasino, which she believes was not deemed worthy of reporting.

Similarly, DWF Labs issued a statement on the same day, claiming that the allegations were "unfounded and distort the facts."

The firm emphasized its commitment to operating with the highest standards of integrity, transparency, and ethics, and reaffirmed its dedication to supporting its partners across the crypto ecosystem.

Yi He further commented on Binance's strict market surveillance program, stating that the exchange does not tolerate market abuse.

She revealed that over the last three years, Binance has offboarded nearly 355,000 users with a transaction volume of more than $2.5 trillion for violating their terms of use. She also noted that market maker competition is fierce and that Binance's investigation team's job is to remain neutral and look at evidence without any bias, including bias that might come from market-making firms' claims against their competitors.

As the crypto industry continues to navigate the challenges of market manipulation and regulatory scrutiny, the statements from Binance and DWF Labs underscore the importance of maintaining high standards of integrity and transparency in the face of allegations.

Binance co-founder Yi He and market maker DWF Labs have denied allegations of market manipulation brought forth by The Wall Street Journal.

Both firms defend their commitment to integrity, transparency, and ethical practices in the crypto industry.

Yi He highlighted Binance's strict market surveillance program and the offboarding of nearly 355,000 users for violating terms of use.

Nexo Celebrates 6th Anniversary with $12.5M Ecosystem Incentive Program

Nexo, a popular decentralized finance lending platform, is celebrating its sixth anniversary by allocating a substantial 10 million NEXO tokens, worth approximately $12.5 million, to its users. The rewards program, which runs from now until July 7, is designed to incentivize users to explore and engage with the Nexo ecosystem.

In a blog post on May 8, Nexo announced the "Nexonomics-inspired hunt," which rewards both new and existing users for their activities on the platform. Users can earn points by topping up their accounts, activating Nexo Cards, borrowing fiat through the protocol, investing in Nexo Earn products, and boosting trading on the Nexo Exchange. The point-to-NEXO-token conversion ratio will be determined at the end of the event.

However, the Nexo team also cautioned that certain actions, such as withdrawing crypto assets from Nexo accounts, will result in a reduction of points. For example, withdrawing $1 worth of crypto assets will lead to a loss of 0.01 points, while withdrawing $1 worth of BTC will result in a loss of 0.001 points.

Users can also benefit from multipliers ranging from 1.2x to 1.5x on points earned, as well as loyalty rewards of up to 100% of the points value, depending on their activity. The Nexo staff provided an example to illustrate the potential rewards: "Suppose you haven't funded your account yet and want to buy $2,000 worth of BTC during the first week of the hunt. In this case, you will receive 450 points (2,000 purchase value x 0.03 points for each $1 purchased x 1.5 Weekly Multiplier x 5 New User Multiplier)."

It is important to note that due to regulatory restrictions, citizens and residents of the United States, the United Kingdom, and Canada are ineligible for the campaign.

Since its launch six years ago, Nexo has attracted $537.56 million in total value locked. The platform recently received regulator approval in the United Arab Emirates for its local entity, Nexo Services FZE, for virtual asset lending and borrowing.

Nexo allocates 10 million NEXO tokens (worth $12.5 million) to users as part of its 6th-anniversary celebration.

Users can earn points by engaging with various services on the platform, with multipliers and loyalty rewards available.

The rewards program runs until July 7, but citizens and residents of the US, UK, and Canada are ineligible due to regulatory restrictions.

Well, my dear PoI readers, that's all the crypto tea I have to spill for now! I hope this edition left you feeling like a true web3 wizard, armed with the knowledge to navigate the ever-changing landscape of digital assets. Remember to stay informed, stay curious. 💡
Until next time, this is Mochi, bidding you adieu with a virtual fist bump! 👊✨

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