Crypto News Today: Court Reverses NFT Insider Case, Grayscale Launches IP Trust, ETH Treasuries Surge

NFT Insider Ruling Reversed, Grayscale Eyes IP Token, and Corporates Boost Ethereum Holdings
Crypto News Today: Court Reverses NFT Insider Case, Grayscale Launches IP Trust, ETH Treasuries Surge
Written By:
Kelvin Munene
Reviewed By:
Sankha Ghosh
Published on

Overview:

  • A federal appeals court has reversed the conviction of former OpenSea product manager Nathaniel Chastain over alleged insider trading of NFTs.

  • Grayscale has introduced a new single-asset trust focused on the IP token of the Story blockchain, aiming to bring intellectual property rights on-chain.

  • Corporate treasuries now hold over $100 billion in digital assets, primarily Bitcoin and Ether, reflecting greater institutional interest in the crypto market.

The crypto market today witnessed some exciting developments as a US federal appeals court overturned a landmark insider trading conviction involving NFTs. Meanwhile, Grayscale has introduced a trust for the IP token, and corporate crypto treasuries have surpassed the $100 billion mark amid rising Ether demand.

Appeals Court Overturns OpenSea NFT Insider Trading Conviction

The United States Court of Appeals for the Second Circuit has reversed the conviction of Nathaniel Chastain, a former product manager at OpenSea, over alleged insider trading of non-fungible tokens (NFTs). The ruling issued on Thursday stated that the jury received flawed instructions that allowed them to convict Chastain for unethical conduct rather than for violating traditional property laws.

The appeals panel agreed with Chastain’s argument that confidential business information used to select which NFTs would be promoted on OpenSea did not constitute property under federal wire fraud statutes. The panel emphasized that misappropriating intangible information not tied to a recognized property interest could not support a fraud conviction.

Chastain was convicted in 2023 of wire fraud and money laundering. He was sentenced to three months in prison and fined $50,000. Prosecutors have alleged that he made a profit from advanced knowledge of NFT listings by trading them using an anonymous wallet. Hastain appealed in 2024, stating that his activities did not meet the legal definition of property fraud. This recent ruling of the court highlights the role of law in the changed digital asset practices that courts continue to adapt.

Grayscale Launches New IP Token Trust for Story Protocol

Grayscale has launched a new single-asset trust focused on IP, the native token of the Story blockchain. This launch aims to bring intellectual property rights on-chain. The new investment product, called the Grayscale Story Trust, allows accredited investors to gain exposure to the IP token, which has risen sharply since its February launch.

Story is a Layer 1 blockchain protocol that aims to tokenise intellectual property through non-fungible tokens that can be programmed with licensing and attribution rules. Such programmable NFTs enable creators and companies to control rights, royalties, and usage in a manner that maps to intellectual property law. The protocol has already carried out more than 1.7 million transactions and serves more than 200,000 monthly users.

Grayscale has observed that investor interest in IP is rising as artificial intelligence increases concerns over unauthorized use of creative content. The Story ecosystem is backed by some of the largest investors, such as a16z crypto, Samsung Next, and Polychain Capital, and has raised more than $140 million. At the time of writing, the IP token is being offered at approximately $6.40 with a market cap of $2 billion.

Corporate Treasury Crypto Holdings Exceed $100 Billion

According to a new report launched by Galaxy Research, corporate treasuries are now managing digital assets totaling over $100 billion. This is an indication of increased institutional involvement in the crypto market, especially in Bitcoin and Ether purchases.

Bitcoin is the most-held Bitcoin-based asset, with businesses possessing over 791,000 BTC, equaling an estimate of nearly $93 billion. These holdings comprise almost 4% of the circulating Bitcoin. Ether has even become a subject of increasing attention, as the corporate treasuries have begun to gain possession of about 1.3 million ETH worth more than $4 billion.

Also Read: Bitcoin News Today: Metaplanet Adds 780 BTC, Leads Asia in Corporate Holdings

In addition to direct treasury holdings, Ether is gaining traction through spot exchange-traded funds (ETFs), which have seen 19 straight days of net inflows. Since July 3, ETH ETFs have accumulated $5.3 billion in assets. This buying trend, combined with treasury strategies that include staking, has positioned Ether as an emerging institutional asset class.

According to analysts at Standard Chartered, institutional investors will eventually own as much as 10% of all ETH in circulation. They cite flexibility in staking and adaptation of Ether into the financial systems within corporations as among the key factors that have led to such adoption. Ether is trading at a price slightly lower than the highest ever, but still at a range boosted by increasing demand both in ETFs and strategic corporate purchases.

Also read: Ethereum News Today: ETH Rallies Toward $4K as Analysts Forecast Possible $5K Breakout

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