This week saw several surprising developments for the crypto ecosystem—some positive, some troubling. 

On Monday, an Ethereum NFT of the photo that inspired the Dogwifhat meme and eventual multi-billion dollar meme coin phenomenon sold at auction—for a whopping $4.3 million worth of ETH. 

That selling price instantly made Dogwifhat the most expensive meme-inspired NFT ever sold, dethroning Doge, the previous reigning champ in that category. The price of Dogwifhat spiked over $3 but has settled around $2.25 as of writing.

The eye-popping sale points to the resurgent health of the meme coin economy and the potential full-throated return of the NFT market. 

The South Korean owners of Achi, the dog featured in the Dogwifhat meme, later divulged that the payday from the NFT sale was far, far more than they ever anticipated. Path, the pseudonymous facilitator of the Dogwifhat NFT sale, told Decrypt the same.

The same day as Dogwifhat’s historic sale, Binance found itself embroiled in a minor controversy after accusations circulated on Twitter that an employee of the company may have been behind a suspiciously timed purchase of a new meme coin, BOME, that was shortly thereafter listed on the crypto exchange—a development that sent the token’s price surging.

The hubbub—which was partially fueled by the secrecy surrounding how Binance makes key decisions about which coins to list on its platforms—soon grew large enough that the company felt obligated to respond. 

In a statement posted on Binance’s Chinese-language Twitter account, the company referred to the matter as the “so-called BOME rat warehouse” incident and said it had conducted an internal investigation that concluded that the transaction in question had not been made by a Binance employee. 

Twitter users still argued, though, that Binance should be more transparent about its token listing process. BOME, for example, was listed only two days after its creation—a fairly unusual move in an industry where such decisions often take months. 

The greatest surprise of the week came on Wednesday, however, when reports surfaced that the Ethereum Foundation—the Swiss organization that maintains the network’s technical operations—is currently under investigation by an unnamed “state authority.” 

While the state authority in question has not yet been officially confirmed, subsequent reports confirmed that the U.S. Securities and Exchange Commission (SEC) has also been subpoenaing American crypto firms about their relationships with the Ethereum Foundation—prompting fears that the SEC could be preparing a hail mary assault on the Ethereum network itself. 

Some Twitter users immediately brushed off the news, likely emboldened by the SEC’s recent string of crypto-related setbacks in federal court. 

Others, though, cautioned that—-regardless of prior results—the prospect of a U.S. government-backed effort to censure one of the most important technical teams in the crypto ecosystem was no laughing matter.  

Edited by Ryan Ozawa.