Friday🌑Web3 Roundup: SEC Action on Immutable, Tether's Impressive Profits, Bitcoin ETFs Surge, and Coinbase's Earnings Fallout

Happy Friday! As the week wraps up, we’re diving into the latest highlights in the Web3 space that are shaping the future of finance and technology. From regulatory actions that could impact the crypto landscape to impressive profit reports from major players, there’s a lot to unpack. Today, we’ll explore how the SEC is taking aim at Immutable, Tether’s soaring profits, the remarkable growth of U.S. Bitcoin ETFs, and the recent decline in Coinbase shares following disappointing earnings. Let’s get started on this exciting journey through the world of Web3!

1. SEC targets Immutable with a Wells notice.

Web3 gaming firm Immutable received a Wells Notice from the SEC, indicating plans for legal action over claims that tokens like IMX are securities. The notice followed the company's first-ever interaction with the SEC and provided little detail about the investigation. Immutable believes the focus is on 2021 IMX token listings and private sales. The announcement caused IMX’s value to drop over 13%, falling to $1.16. Immutable criticized the SEC’s approach, calling it unclear and unjust. Despite these challenges, the company is confident that the IMX token does not classify as a security and is prepared to contest the claims.

SEC Goes After Another Crypto Firm, Slaps Immutable With Wells Notice

The firm’s IMX token is down over 13% at $1.16 following the announcement.

CoinDeskCallan Quinn

2. Tether's Q3 profits soar to $2.5B, total 2024: $7.7B.

Tether continues to set new records, posting $2.5 billion in profit for Q3 2024, bringing total earnings for the year to $7.7 billion. The stablecoin giant now holds $105 billion in cash and equivalents, mostly in US Treasury bills, positioning it among the world’s top 18 holders of US debt. USDT circulation has surged by nearly 30% this year, reaching $120 billion. Tether’s strategic investments, including Bitcoin and various startups, have also contributed to its robust financials. Despite past regulatory issues, Tether has strengthened its collaboration with US authorities, celebrating its 10-year milestone with significant market influence and stability.

Tether posts $2.5B in Q3 profits, with 2024 earnings reaching $7.7B

Tether posted $2.5 billion in earnings in the third quarter, with a consolidated profit of $7.7 billion in the first nine months of 2024.

CointelegraphAna Paula Pereira

3. US Bitcoin ETFs reach half of gold’s holdings in a year.

Bitcoin exchange-traded funds (ETFs) in the U.S. have rapidly gathered $70 billion in assets since launching in January 2024, now holding over half the assets of gold ETFs, which have been around for 20 years. Daily inflows for Bitcoin ETFs range from $192 million to $893 million, highlighting a surge in mainstream interest in digital assets. Compared to gold, Bitcoin is gaining traction as a “safe haven” asset due to its limited supply and independence from traditional finance. Despite market volatility, experts remain optimistic about Bitcoin’s performance, with predictions of continued strength as the year closes and the U.S. election approaches.

US Bitcoin ETFs Amass Over Half of Gold’s Holdings in First Year - Decrypt

In just 10 months, spot Bitcoin ETFs have amassed over 50% of the assets held by gold ETFs, which have been around for two decades.

DecryptSebastian Sinclair

4. Coinbase shares plummet 15% post-earnings.

Coinbase shares fell 15.3% on Thursday, marking the steepest drop in over two years, after reporting weaker-than-expected third-quarter earnings. The stock closed at $179.25, reducing its 2024 gains to just 3%. The crypto exchange missed net income estimates, posting $75 million compared to the expected $112.2 million, with revenue also down from the previous quarter. Despite this, Coinbase announced a $1 billion share buyback plan, signaling confidence in its future. The company remains optimistic about the pro-crypto sentiment among U.S. political leaders and has pledged $25 million to support pro-crypto candidates for the 2026 midterm elections.

Coinbase drops 15% after earnings, posts worst day in more than two years

Coinbase slid a day after reporting weak earnings and gave a tepid revenue outlook.

CNBCTanaya Macheel

As we conclude this week’s exploration of the Web3 landscape, it’s clear that the market is in a state of rapid evolution, marked by significant challenges and remarkable opportunities. With the SEC’s scrutiny of companies like Immutable and the impressive financial performance from Tether, the landscape continues to shift. Meanwhile, the rise of Bitcoin ETFs demonstrates growing mainstream interest in digital assets, even as Coinbase grapples with market pressures. Stay tuned as we continue to monitor these developments and their implications for the future of finance and technology.

WEB3 AI ML