Nexo, a company offering digital asset services, has won initial approval as a licenced entity in Dubai from the region’s Virtual Assets Regulatory Authority (VARA), it announced Tuesday.
Crypto Lender Nexo Seeking $3B in Damages From Bulgaria
Nexo has accused the country of making “wrongful and politically motivated actions…involving unjustified and oppressive criminal investigations.”
Bitcoin’s 2024 Forecast: From $60,000 To $500,000, Top Experts Share Bold Predictions
As the crypto market marches into 2024, various industry experts and financial analysts have recently cast their respective Bitcoin (BTC) predictions for the year.
Among the voices offering insights, Mark Mobius of Mobius Capital Partners LLP stands out for his historically accurate predictions.
Having correctly forecasted Bitcoin’s fall to $20,000, Mobius now envisions a climb to $60,000 by the year’s end. This optimism is further mirrored by Youwei Yang, chief economist at crypto mining firm Bit Mining, who projects a high of $75,000 for Bitcoin in 2024.
Yang’s predictions hinge on a combination of the upcoming Bitcoin “halving” event, which is expected to constrain supply, and the potential inflow of institutional investments following a spot ETF approval in the US.
The Catalysts Behind The Predictions
The notion of a spot Bitcoin ETF approval in the US is a central theme in these bullish forecasts. The expectation of such an event has stirred excitement within the crypto community, drawing parallels to similar financial instruments and their impact on associated markets.
James Butterfill, head of research at CoinShares, believes that a spot ETF approval in the US would mark a “significant change” in the digital asset landscape, potentially integrating cryptocurrencies more closely with traditional financial markets. As for the prediction, Butterfill noted:
Estimations suggest that a 20% investment increase from current assets under management (around US$3 billion) could potentially propel Bitcoin prices to US$80,000.
Butterfill additionally pointed out that potential interest rate reductions by central banks might significantly contribute to an increase in Bitcoin’s value.
2024 Bitcoin Predictions above $100,000
Raising the prediction bar, Antoni Trenchev, co-founder of the cryptocurrency exchange Nexo and a well-known Bitcoin advocate, maintains his prediction that Bitcoin could soar to $100,000 in 2024. Despite initially projecting this target for 2022, Bitcoin’s price took a downturn instead of hitting the anticipated high.
Reaffirming his stance, Trenchev attributes his renewed $100,000 forecast for 2024 to the upcoming Bitcoin halving and the possible green light for several spot Bitcoin ETFs in the US. Trenchev anticipates that these two factors will act as a dual catalyst, driving Bitcoin’s value to the $100,000 mark, with prospects of even higher peaks in 2025.
Trenchev, however, cautions about the volatile journey towards this target, predicting fluctuations and significant dips along the way.
In addition to Trenchev’s projections, Standard Chartered and University of Sussex finance professor Carol Alexander also envisions Bitcoin potentially hitting $100,000 in 2024. Alexander suggests this is contingent on the capacity of market maker algorithms from major financial institutions like Blackrock and Fidelity to moderate market volatility.
Echoing these sentiments, Matrixport, a firm specializing in crypto financial services, projects that Bitcoin will hit $125,000 by the end of the year. The firm noted:
Based on our inflation model, the macro environment is expected to remain a robust tailwind for crypto. Another decline in inflation is anticipated, prompting the Federal Reserve to likely initiate interest rate cuts. Combined with geopolitical crosscurrents, this healthy dose of monetary support should push Bitcoin to new highs in 2024.
Venture capital firm CoinFund offers one of the most ambitious predictions, with managing partner Seth Ginns forecasting Bitcoin’s value to range between $250,000 and $500,000 in 2024.
Ginns attributes this potential surge to factors like the declining correlation with the dollar and real yields, the anticipated impact of newly launched BTC spot ETFs in the US, and the excitement over possible ETH spot ETFs.
Featured image from Unsplash, Chart from TradingView
Nexo’s Money Laundering Investigation in Bulgaria Closed Due to Lack of Evidence: Report
The Bulgarian Prosecutor’s Office reported to have said that it found “no evidence of criminal activity,” adding that “no evidence of tax offenses or computer fraud was found against the defendants, either.”
Nexo to Phase Out Cashback for UK Exchange and Card Transactions as FCA Rules Approach
Nexo is joining Bybit and Paypal in withdrawing some services from the U.K. in response to incoming promotion rules.
Nexo launches crypto Mastercard for EEA citizens
The card is only available to citizens of the 30-country European Economic Area.
Nexo joins sanctions association as regulatory scrutiny increases
Nexo looks to keep pace with regulatory requirements by implementing new certification requirements for its compliance team.
Nexo in Court With a Co-Founder Over $12M in Missing Assets
Nexo says its former managing partner left with a hardware wallet full of the company’s crypto.
Ohio Joins $22.5M Multistate Settlement Against Crypto Lender Nexo
The North American Securities Administrators Association and the U.S. Securities Exchange Commission already announced in January that a settlement had been reached.
Nexo shutters US Earn product a month after settling with regulators
The shutdown of Nexo’s earn product follows from a multi-million dollar settlement the firm paid last month with U.S. regulators.
Nexo Pays $45M In Penalties And Settles With US Authorities
The US Securities and Exchange Commission (SEC) has levied a $45 million fine on Nexo Capital Inc. The SEC explains the reason for the fine in a tweet,
Today we charged Nexo Capital Inc. with failing to register the offer and sale of its retail crypto asset lending product, the Earn Interest Product (EIP). To settle charges, Nexo agreed to pay $22.5 million and cease its unregistered offer and sale of the EIP to U.S. investors.
The $22.5 million fine for selling EIP to US investors. Moreover, the $22 million fine will go through settling the claims by State Regulatory Authorities. The SEC Chairman, Gary Gensler, reinforces that crypto organizations must comply with its policies. Failure to do so will allow the SEC to hold the defaulters accountable.
What Is EIP And Why The Fine?
Starting in June 2020, Nexo is marketing and selling its Earn Interest Product (EIP) in the USA. Nexo operates so that it lends money to its customers, and interest becomes its primary source of income. Nexo uses this interest income to pay interest on its loans further. However, several states in the USA alleged that Nexo’s earn-interest service is not registered as a Security.
As a result, the states of California, Oklahoma, Vermont, South Carolina, Kentucky, and Maryland took the company to court. They demanded a cease-and-desist order on the company’s EIP service.
The SEC order says that Nexo used its EIP service to fund interest payments and inject it into its other businesses. Moreover, the SEC holds Nexo at fault because their EIP Security fails to meet the requirements for an exemption from the regulatory authority.
Today we charged Nexo Capital Inc. with failing to register the offer and sale of its retail crypto asset lending product, the Earn Interest Product (EIP). To settle charges, Nexo agreed to pay $22.5 million and cease its unregistered offer and sale of the EIP to U.S. investors.
— U.S. Securities and Exchange Commission (@SECGov) January 19, 2023
Even though Nexo agrees to pay the fine and stop the EIP service, they have not confirmed the allegations. In response to the penalty, Nexo also published a settlement tweet confirming that they agree to a no-admit-no-deny settlement.
Nexo has reached a final landmark resolution with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), consisting of all 50 U.S. States & 3 territories and the Attorney General of New York.
https://t.co/modjbPsOdV
— Nexo (@Nexo) January 19, 2023
Further, Nexo’s Co-Founder Antoni Trenchev says,
We are content with this unified resolution which unequivocally puts an end to all speculations around Nexo’s relations with the United States. We can now focus on what we do best – build seamless financial solutions for our worldwide audience.
SEC Is Getting More Vigilant And Strict
Noting some of the SEC’s previous actions on crypto companies, it can be said that it is tightening the noose. In February 2022, SEC fined BlockFi $100 million for its unregistered securities offerings. The BlockFi fine acted as a warning for several other crypto firms offering similar products.
A Cornerstone Research finds several proceedings in which the SEC holds crypto companies accountable for their services, solutions, and actions. Over 30 such enforcement proceedings came under the chairmanship of Gary Gensler in 2022. Similar to the Nexo case, the SEC also charged Gemini for its unregistered service in the form of sales of securities.
Troubled crypto lender Vauld gets extended creditor protection
The company claims that the negotiations with potential crisis managers entered the “advanced stage.”
Law Decoded, Jan. 9-16: Gemini, Bithumb, Nexo are fresh targets for regulation and prosecution
While the FTX saga continues to make headlines, last week brought a plethora of new troubles for crypto companies in the United States, Europe and Asia.
Nexo sues Cayman Islands financial regulator over VASP license
The crypto lender claimed that the Cayman Islands Monetary Authority had placed “too much weight” on regulators’ enforcement actions in its decision to deny registration.
Nexo investigation is not political, says Bulgarian prosecutors
A spokesperson for Bulgaria’s chief prosecutors denied claims that the investigation was prompted by the company’s political donations.
Bulgarian authorities charge four individuals following raid on Nexo office: Report
Following the Jan. 12 raid on its Sofia offices, Nexo described prosecutors’ actions as a “kick first, ask questions later” approach.
Nexo dodges $219M bullet just days before FTX’s solvency crisis
The firm withdrew its remaining balance from FTX at the 11th hour and topped weekly fund outflows from the troubled exchange.
Insolvency not in ‘Nexo’s reality,’ says co-founder during AMA
Co-founder Kalin Metodiev stated that comparisons between Celsius, Voyager and Nexo are “very far from reality” and that the firm is focused on building in a sustainable way.
NEXO risks 50% drop due to regulatory pressure and investor concerns
Analysts fear NEXO price could come under pressure if regulatory action in the United States begins to intensify.
Nexo ‘surprised’ by state regulators’ actions, says co-founder
Kalin Metodiev emphasized that Nexo has been navigating through conversations with regulators for the past couple of years to ensure compliance, and was surprised that this news was “thrown out there in public.”
