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Movement: Multi-Chain Layer 2 Targets Korea

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Movement Labs is a startup project that raised $38 million in Series A funding earlier this year and its Layer 2 blockchain called Movement has recently gained global attention.

The two founders, Rushi Manche and Cooper Scanlon used to be the students of Vanderbilt University. They first met in college, where they recognized each other’s fascination with blockchain technology and quickly bonded, dreaming of building a business together, which led them to drop out of college in 2022 and found the company.

Even though the mainnet hasn’t launched yet, Movement is attracting market interest for three main reasons:

First, they use the Move, which is a programming language developed by Meta (formerly Facebook) when they were still in the blockchain business. Meta abandoned its blockchain business due to regulatory issues, and former employees from related departments created Aptos and Sui.

Movement Labs co-founder Rushi Manche at Korea Blockchain Week. Source:Korea Blockchain Week

The second reason is that they belong to the “Layer 2” sector, which was highly popular in the crypto industry from last year to early this year. Layer 2 is widely used to maintain Ethereum’s security while lowering transaction costs. It has advantages in attracting initial users or selling tokens due to high investor interest.

The final reason is that they aim to be a “multi-chain” Layer 2 that can transfer assets across multiple blockchains. The Ethereum Layer 2 market is already quite saturated, but there hasn’t been a notable success case for a multi-chain project, which is a relatively unexplored area in the market.

The team has already made significant progress in technology development. They launched a public testnet in late July, and in recent tests, they recorded a maximum of 12,000 transactions per second. Currently, the Layer 2 with the highest TPS on Ethereum is Polygon at about 190 TPS.

Both founders sat with BeInCrypto in a recent interview and said that multiple financial institutions have shown interest to their project.

Q. What area will Movement specialize in as a Layer 2?

We plan to focus on absorbing stablecoin demand. It’s an area with high market demand, and if transactions can be made much faster using Layer 2, we think there will be more users. We’re also very interested in the gaming sector. In particular, we want to try onboarding users to gaming on mobile devices. 

Q. What advantages does Movement have compared to other Layer 2s? 

It’s fast, has overwhelming performance, and is efficient in responding to hacking.

Q. Many Ethereum Layer 2s have been introduced, but they often fail to maintain impressive results after the initial hype. How does Movement plan to address this issue?

That’s right. The Layer 2s that have come out so far haven’t significantly improved the user experience of Ethereum. Speed and transaction processing volume are basics, but they weren’t supported, and they didn’t drive substantially more usage. We believe we’ll get different results because we’ve solved these problems.

Read more: Aptos Crypto (APT): A Guide to What it Is and How it Works

Q. The U.S. presidential election has sparked a debate about blockchain/crypto industry policy. As Meta’s example showed, the regulatory environment has a lot to do with the crypto industry.

Among the discussions around the world about crypto, the most important thing is policy. In the U.S., government support has a huge impact on project growth. It’s important to have clear regulations in place, as it determines the direction of token launches and project foundations. It’s also necessary for the government to provide a single set of guidelines in case of disputes between stakeholders in the process of using the app.

Q. You seem to be showing a lot of interest in the Asian market. Tell us about the direction of your global business.

We are very community-centered, with more than 20 developer communities around the world, including in Asia, such as Vietnam and Thailand. We’re looking to activate them in other countries as well.

We are focusing on emerging markets because they have a high growth rate. We want to give users from different chains the opportunity to cross over to emerging markets. Our vision is to have a global community, where experts learn new languages, and they bring users from all over the world.”

Q. Movement Labs is the Official Conference Partner of this year’s Korea Blockchain Week. This was not the case for conferences elsewhere in Asia around the same time, are you particularly interested in Korea?

Looking at the success of Aptos (APT) and Sui (SUI), Korea seems to be a country where the Movement ecosystem can settle well. The consumer ecosystem seems to be a strength. Most Move projects have done well in Korea so far. That’s why we became an official partner of KBW this time. Korean investors seem to be very interested in apps using the Move language.

We are actively collaborating with Korean game companies, we are discussing with one or two teams, and we’re talking with one company about mobile apps. Regarding mobile apps, we’re very interested in how to implement an environment where Gen Z can be onboard.

Disclaimer

In compliance with the Trust Project guidelines, this opinion article presents the author’s perspective and may not necessarily reflect the views of BeInCrypto. BeInCrypto remains committed to transparent reporting and upholding the highest standards of journalism. Readers are advised to verify information independently and consult with a professional before making decisions based on this content.  Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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VanEck Sets Stage for BNB ETF with Official Trust Filing

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Global investment management firm VanEck has officially registered a statutory trust in Delaware for Binance’s BNB (BNB) exchange-traded fund (ETF). 

This move marks the first attempt to launch a spot BNB ETF in the United States. It could potentially open new avenues for institutional and retail investors to gain exposure to the asset through a regulated investment vehicle.

VanEck Moves Forward with BNB ETF 

The trust was registered on March 31 under the name “VanEck BNB ETF” with filing number 10148820. It was recorded on Delaware’s official state website.

VanEck BNB ETF Filing
VanEck BNB ETF Filing. Source: State of Delaware Official Website

The proposed BNB ETF would track the price of BNB. It is the native cryptocurrency of the BNB Chain ecosystem, developed by the cryptocurrency exchange Binance.

As per the latest data, BNB ranks as the fifth-largest cryptocurrency by market capitalization at $87.1 billion. Despite its significant market position, both BNB’s price and the broader cryptocurrency market have faced some challenges recently.

Over the past month, the altcoin’s value has declined 2.2%. At the time of writing, BNB was trading at $598. This represented a 1.7% dip in the last 24 hours, according to data from BeInCrypto. 

BNB Price Performance
BNB Price Performance. Source: BeInCrypto

While the trust filing hasn’t yet led to a price uptick, the community remains optimistic about the prospects of BNB, especially with this new development.

“Send BNB to the moon now,” an analyst posted on X (formerly Twitter).

The filing comes just weeks after VanEck made a similar move for Avalanche (AVAX). On March 10, VanEck registered a trust for an AVAX-focused ETF. 

This was quickly followed by the filing of an S-1 registration statement with the US Securities and Exchange Commission (SEC). Given this precedent, a similar S-1 filing for a BNB ETF could follow soon.

“A big step toward bringing BNB to US institutional investors!” another analyst wrote.

Meanwhile, the industry has seen an influx of crypto fund applications at the SEC following the election of a pro-crypto administration. In fact, a recent survey revealed that 71% of ETF investors are bullish on crypto and plan to increase their allocations to cryptocurrency ETFs in the next 12 months. 

“Three-quarters of allocators expect to increase their investment in cryptocurrency-focused ETFs over the next 12 months, with demand highest in Asia (80%), and the US (76%), in contrast to Europe (59%),” the survey revealed.

This growing interest in crypto ETFs could drive further demand for assets like BNB, making the VanEck BNB ETF a potentially significant product in the market.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP Recovery Stalls—Are Bears Still In Control?

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XRP price started a fresh decline from the $2.20 zone. The price is now consolidating and might face hurdles near the $2.120 level.

  • XRP price started a fresh decline after it failed to clear the $2.20 resistance zone.
  • The price is now trading below $2.150 and the 100-hourly Simple Moving Average.
  • There is a connecting bearish trend line forming with resistance at $2.120 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair might extend losses if it fails to clear the $2.20 resistance zone.

XRP Price Faces Rejection

XRP price failed to continue higher above the $2.20 resistance zone and reacted to the downside, like Bitcoin and Ethereum. The price declined below the $2.150 and $2.120 levels.

The bears were able to push the price below the 50% Fib retracement level of the recovery wave from the $2.023 swing low to the $2.199 high. There is also a connecting bearish trend line forming with resistance at $2.120 on the hourly chart of the XRP/USD pair.

The price is now trading below $2.150 and the 100-hourly Simple Moving Average. However, the bulls are now active near the $2.10 support level. They are protecting the 61.8% Fib retracement level of the recovery wave from the $2.023 swing low to the $2.199 high.

XRP Price

On the upside, the price might face resistance near the $2.120 level and the trend line zone. The first major resistance is near the $2.150 level. The next resistance is $2.20. A clear move above the $2.20 resistance might send the price toward the $2.240 resistance. Any more gains might send the price toward the $2.2650 resistance or even $2.2880 in the near term. The next major hurdle for the bulls might be $2.320.

Another Decline?

If XRP fails to clear the $2.150 resistance zone, it could start another decline. Initial support on the downside is near the $2.10 level. The next major support is near the $2.0650 level.

If there is a downside break and a close below the $2.0650 level, the price might continue to decline toward the $2.020 support. The next major support sits near the $2.00 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.10 and $2.050.

Major Resistance Levels – $2.120 and $2.20.



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Experts Raise Red Flags Over Finances

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Circle’s initial public offering (IPO) filing has raised concerns among industry experts, who are sounding alarms over the company’s financial health, distribution costs, and valuation. 

While the move marks a significant step toward mainstream financial integration, experts’ skepticism casts doubt on the company’s long-term prospects.

Analysts Highlight Red Flags With Circle IPO

On April 1, BeInCrypto reported that Circle had filed for an IPO. The company plans to list its Class A common stock on the New York Stock Exchange (NYSE) under “CRCL.”

Circle’s IPO filing reveals revenue of $1.67 billion in 2024, a notable increase from previous years. However, a closer examination of the company’s financials has uncovered some challenges.

Matthew Sigel, Head of Digital Assets Research at VanEck, noted that revenue increased 16% year over year. Yet, at the same time, the company reported a 29% decrease in EBITDA year over year, indicating a decline in operational profitability. Additionally, net income fell by 42%, reflecting a significant drop in overall profitability.

Circle Financial Data
Circle Financial Data. Source: X/MatthewSigel

Sigel pointed out four factors contributing to the decline in these financial metrics. He explained that the company’s rapid expansion and new service integrations negatively impacted net income. 

Furthermore, the discontinuation of services like Circle Yield reduced other revenue streams. This, in turn, exacerbated the decline in profitability. 

“Costs related to restructuring, legal settlements, and acquisition-related expenses also played a role in the decline in EBITDA and net income, despite overall revenue growth,” Sigel added.

Importantly, he focused on Circle’s increased distribution and transaction costs. Sigel revealed that the cost rose due to higher fees paid to partners like Coinbase and Binance.

A related post by Farside Investors on X (formerly Twitter) shed further light on these expenses.

“In 2024, the company spent over $1 billion on “distribution and transaction costs,” probably much higher than Tether as a % of revenue,” the post read.

This prompts speculation that Circle may be overspending to maintain its market share in the competitive stablecoin sector. The company’s historical performance further fuels skepticism.

Farside Investors added that in 2022, Circle recorded a staggering $720 million loss. Notably, the year was marked by significant turmoil in the crypto industry, including the high-profile collapses of FTX and Three Arrows Capital (3AC). 

This suggests that Circle may be vulnerable to market shocks. Thus, it calls into question the company’s risk management capabilities—especially in the inherently volatile crypto market.

“The gross creation and redemption numbers are a lot higher than we would have thought for USDC. Gross creations in a year are many multiples higher than the outstanding balance,” Farside Investors remarked.

In addition, analyst Omar expressed doubts about Circle’s $5 billion valuation. 

“Nothing to love in the Circle IPO filing and no idea how it prices at $5 billion,” he questioned.

He drew attention to several concerns, including the company’s gross margins being severely impacted by high distribution costs. The analyst also pointed out that the deregulation of the US market is poised to disrupt Circle’s position. 

Additionally, Omar stressed that Circle spends over $250 million annually on compensation and another $140 million on general and administrative costs, raising questions about its financial efficiency. He also noted that interest rates—core income drivers for Circle—will likely decline, presenting additional challenges.

“32x ’24 earnings for a business that just lost its mini-monopoly and facing several headwinds is expensive when growth structurally challenged,” Omar said.

Analysis of Circle's Finances Ahead of IPO
Analysis of Circle’s Valuation Ahead of IPO. Source: X/Omar

Ultimately, the analyst concluded that the IPO filing was a desperate attempt to secure liquidity before facing serious market difficulties.

Meanwhile, Wyatt Lonergan, General Partner at VanEck, shared his predictions for Circle’s IPO, outlining four potential scenarios. In the base case, he forecasted that Circle would capitalize on the stablecoin narrative and secure key partnerships to drive growth. 

In a bear case, Lonergan speculated that poor market conditions might lead to a Coinbase buyout.

“Circle IPOs, the market continues to tank, Circle stock goes with it. Poor business fundamentals cited. Coinbase swoops in to buy at a discount to the IPO price. USDC is all theirs at long last. Coinbase acquires Circle for something close to the IPO price, and they never go public,” Lonergan claimed.

Lastly, he outlined a probable scenario where Ripple bids up Circle’s valuation to a staggering $15 to $20 billion and acquires the company.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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