From Lido DAO Legal Battle Amid Crypto Market Turmoil to Bitcoin ETF Prospects

Stay informed about the latest occurrences in the cryptocurrency realm, covering daily trends and events affecting Bitcoin valuation, blockchain technology, DeFi, NFTs, Web3, and crypto regulations.

Source: capital.com

Lido DAO Faces Class Action Lawsuit in California

In a significant legal development, a former investor has initiated a class action lawsuit against Lido DAO, alleging that the decentralized autonomous organization misled the public by engaging in an unregistered securities offering. Filed in a San Francisco District Court on Dec. 17, the lawsuit asserts that Lido DAO is responsible for losses incurred by investors during the crypto winter. The complaint accuses the DAO of offloading tokens on unsuspecting investors during the bear market, highlighting that Lido DAO initially operated as a general partnership of institutional investors before seizing a potential exit opportunity by selling tokens to the public. Notably, Lido DAO currently boasts over $19 billion in crypto assets locked in its contracts, solidifying its position as the largest liquid staking derivative platform, as reported by DeFiLlama.

Impact of the U.S. Spot Bitcoin ETF on Crypto Exchanges

Anticipation is building within the crypto community regarding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. However, analysts caution that this development might bring unwelcome consequences for cryptocurrency exchanges, particularly impacting transaction fees. According to ETF analysts, including Nate Geraci, President of ETF Store, a spot BTC ETF could lead to a bloodbath for crypto exchanges like exchanges due to decreased transaction fees. Although Bitcoin proponents like Jan3 CEO Samson Mow foresee the approval driving Bitcoin's value to unprecedented heights, experts like Geraci and Bloomberg ETF analyst Eric Balchunas highlight potential challenges for centralized exchanges.

Numerous industry observers foresee the possibility of a spot BTC ETF commencing trading in early 2024. Coupled with Bitcoin's imminent block reward halving projected for April, Blockstream CEO Adam Back envisions this event as a catalyst that could propel BTC to $100,000. Optimistic Bitcoin proponents, such as Jan3 CEO Samson Mow, go even further, suggesting that the approval of a spot Bitcoin ETF in the U.S. could lead to a surge, potentially elevating Bitcoin to $1 million within the days to weeks following the ETF approval.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.