Here’s what happened in crypto today

Today in crypto, thousands of savers face potential losses after a $2.7 million shortfall was discovered at Ziglu, a British crypto fintech that entered special administration, Bitcoin retail interest is lagging despite the asset reaching new all-time highs. Meanwhile, Pump.fun ICO has raised $500 million.

Collapsed crypto firm Ziglu faces $2.7M deficit amid special administration

Thousands of savers face the grim prospect of losing their investments after administrators uncovered a 2 million pounds ($2.7 million) shortfall at Ziglu, a British cryptocurrency fintech that collapsed earlier this year.

The company, which suspended withdrawals in May, was placed into special administration last week amid mounting concerns over its financial management, according to a Sunday report from The Telegraph.

Ziglu attracted around 20,000 customers with promises of high-interest returns, particularly through its “Boost” product, which offered yields up to 6%. Launched in 2021 during a period of low interest rates, Boost became popular due to its higher returns.

However, the product was not protected or ring-fenced, allowing the company to use customer funds for day-to-day operations and lending activities. Following the Financial Conduct Authority’s (FCA) intervention in May, withdrawals were frozen, leaving savers locked out of their money for weeks.

Source: Ziglu

Bitcoin retail interest ‘almost nowhere to be found’ as BTC taps highs

Bitcoin has reached consecutive record highs this week, yet retail investors seem reluctant to jump back into the market, according to a crypto researcher.

However, demand for spot Bitcoin exchange-traded funds (ETFs) is surging, with Thursday and Friday recording daily inflows of over $1 billion, the first time this has happened on two consecutive days.

Bitwise head of research André Dragosch said in an X post on Friday, “Bitcoin is at new all-time highs but retail is almost nowhere to be found,” pointing to the lack of Google search interest in “Bitcoin” despite the asset setting consecutive all-time highs this week.

Memecoin launch platform Pump.fun raises $500M in ICO

Pump.fun, a memecoin launch platform, raised $500 million in an initial coin offering (ICO) on Saturday, with an 18% allocation for institutional investors, and 15% set aside for retail traders.

The PUMP token sold out in a matter of 12 minutes, according to Pump.fun, drawing praise from investors, venture capitalists, and industry professionals for showcasing the power of internet capital markets to raise large sums in a short period of time.

PUMP token distribution. Source: Pump.fun

“Today you learned that you can launch a business onchain, become massively successful, and scale it without requiring traditional finance,” CEO of Helius Labs Mert Mumtaz wrote.

The platform’s successful ICO could signal the return of the capital formation strategy that peaked in 2018 before facing regulatory headwinds under Gary Gensler’s Securities and Exchange Commission (SEC).