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Hey, welcome to today's Crypdonuts newsletter. If you haven't yet already, follow us on Twitter!

Top news today:

• ApeCoin hits all-time low

• Judge rejects Ripple ruling precedent

• Our Litecoin predictions are becoming reality

📈 MARKETS: PAST WEEK

• It’s a sea of red in the markets today, with bad news around every corner. Bitcoin and ether fell after news of possible fraud charges by the Department of Justice against Binance.

• Stocks were in no better spot, with Fitch downgrading its long-term credit rating for the US from AAA to AA+.

DONUT HOLES

Hole lotta news…

• BALD token rugpull may have links to Sam Bankman-Fried

• Worldcoin is being investigated by German data watchdog

• Curve's founder DeFi stress threatens global liquidations

• Michael Saylor is planning to buy $750M more of bitcoin

• Coinbase has changed how it makes money since IPO

NFTS

ApeCoin hits all-time low

While crypto seems to be shaking off its last-year blues, the NFT market looks somewhat less vibrant. It's witnessing a decline in prices, causing a fair bit of disappointment for those who dived headfirst into the NFT pool.

This slump hits particularly hard for Bored Ape Yacht Club (BAYC), the undoubted king of NFT-land.

If you're not quite up to speed, here's a brief on BAYC:

• A collection of monkey-themed NFTs created by Yuga Labs

• Went from 0.08 ETH to an astonishing 130 ETH (1,625x gain)

• Top stars like Justin Bieber and Neymar even jumped on the Bored Ape bandwagon

• Collaborated with Adidas, while Otherdeed gave Gucci a shot

But it seems the BAYC party might be winding down. Prices for BAYC-associated projects are dropping, and Apecoin ($APE), an offshoot of BAYC, just hit its all-time low.

Here's a look at the numbers:

• BAYC - 82 ETH → 32 ETH (-61%)

• MAYC - 18.6 ETH → 6.2 ETH (-66%)

• BAKC - 10 ETH → 2.4 ETH (-76%)

• Otherdeed - 2.1 ETH → 0.9 ETH (-55%)

• $APE - $3.64 → $1.78 (-51%)

As per Messari's report, the recent downturn in the market picked up speed during a significant token unlock of $APE coin, resulting in around 10% of the circulating supply being released last quarter. Half of this newly unlocked supply was immediately sold off, impacting both $APE and BAYC.

Some investors are expressing disappointment with Yuga Labs, the creators of BAYC, saying they are not living up to the hype. Time will tell if their twist of metaverse games and their packed bank accounts will be enough for them to make their return to glory.

REGULATIONS

Judge rejects Ripple ruling precedent

So, the legal drama in the crypto world thickens. Our hopes for the Ripple case serving as a precedent for other cases may be fading away, with it being dismissed in a recent lawsuit.

In their argument that selling UST and LUNA wasn’t a securities offering, Terraform Labs pointed towards the ruling in the Ripple v. SEC case to bolster their argument.

However, Judge Rakoff wasn't having any of it. 

He reiterated that the Howey test, which is used to determine whether a transaction involves investment contracts, doesn't care about the investor's status - whether institutional or retail. What matters is the promise of profits, leading him to dismiss Terraform Labs' argument.

This verdict was a letdown for many in the crypto community who were optimistic that the Ripple ruling could be used as a beneficial precedent for at least a couple of years.

• There were hopes that the SEC's hardline approach towards crypto exchanges like Coinbase and Binance would soften due to the Ripple ruling.

• Tuesday’s decision has given the SEC a green light to continue its aggressive stance, potentially dampening the mood in the crypto industry.

ALTCOINS

Our Litecoin predictions are becoming reality

Remember our previous chit-chat about Litecoin and its intriguing halving routine? If it slipped your mind, here's a little refresher:

• Litecoin tends rally in anticipation of a halving

• Only to plummet 70~80% in the subsequent ~2 years

• Eventually goes up 1,500~14,000% afterwards

Based on this pattern, we made a prediction: Post-halving, expect Litecoin to drop more than 50% over the next two years, then rally back up with a tenfold increase.

The halving event happened just yesterday, and so far, our prediction seems to be holding water. Litecoin took a swift 9% dip from $94 to $86, seemingly en route to our projected $40~50 zone.

We're now in the waiting period. Will the patience be rewarded? That's something only time can tell.

Please remember that this is not financial advice. Do your own research and take full responsibility for your investments.

🐦 TWEET OF THE WEEK

💰 REWARD QUIZ

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