Crypto Highlights: Scammer Impersonates Bermuda Premier, Insider Rug Pull Hits Libra Token, NYSE Proposes ETH Staking in Grayscale ETFs

Scammer Impersonates Bermuda Premier and Promotes Fake Token

In a recent crypto scam, a fraudster posing as Bermuda's Premier, David Burt, launched a fake profile on the social media platform X to promote a fraudulent token called the "Bermuda National Coin." The scam quickly gained attention, with the profile amassing over 51,000 followers despite being a clear impersonation.

Once Burt became aware of the scam, he alerted users on X and raised concerns with both the platform and its owner, Elon Musk. However, as of the latest updates, the fraudulent account remains active and continues to mislead users. The fake profile also displayed a grey checkmark, which is typically reserved for government officials, prompting questions about how the account was verified in the first place.

Libra Token Endorsed by Argentine President Milei Crashes After $107 Million Insider Rug Pull

The Libra (LIBRA) token, which received endorsement from Argentine President Javier Milei, turned into a financial disaster after insiders orchestrated a massive rug pull. In a shocking turn of events, $107 million was siphoned from the project within hours of its launch, sending the token's value plummeting by nearly 94%.

Onchain intelligence firm Lookonchain reported that at least eight wallets linked to the Libra team cashed out large sums, including 57.6 million USDC and 249,671 Solana (SOL), amounting to $49.7 million. The Libra token, which had reached a market cap of $4.56 billion just hours after its debut, collapsed to a market cap of only $257 million by the following day.

The token's surge began shortly after a now-deleted post from President Milei, which endorsed the Libra project and shared a website and contract address. Following the crash, Milei deleted his endorsement and issued a statement blaming political opponents for trying to exploit the situation for political gain, calling them "vile politicians."

NYSE Proposes Rule Change to Allow Ethereum Staking in Grayscale ETFs

In another significant development, the New York Stock Exchange (NYSE) has proposed a rule change that would allow asset manager Grayscale to introduce Ethereum (ETH) staking within its spot Ethereum exchange-traded funds (ETFs). The proposal, filed with the U.S. Securities and Exchange Commission (SEC) on February 14, seeks approval for staking activities within both the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH).

If approved, Grayscale would be able to stake Ether within these funds, earning staking rewards which would be considered income for the funds. However, the filing made clear that Grayscale would not promise or guarantee any specific level of returns for investors. Additionally, the staking activities would not be classified as "delegated staking" or "staking as a service."

The proposal marks a significant move in the evolving landscape of cryptocurrency and traditional finance as it opens the door for institutionalized staking within exchange-traded products.

In Summary

Today’s events in the crypto world highlight both the promise and the pitfalls of the industry. From scams and rug pulls to major institutional moves, the space remains volatile yet ripe with potential. As the crypto market continues to mature, these events underscore the need for robust regulation, transparency, and due diligence to protect investors and ensure the integrity of the space.