Coin360 Daily Dispatch | Crypto Market Updates & Highlights | February 1, 2024

Bitcoin Price Reacts to Fed's Rate Decision

Bitcoin's price dipped to $42,300 following Federal Reserve Chair Jerome Powell's remarks at the FOMC press conference, indicating no imminent interest rate cuts. The Fed maintained its benchmark rate at 5.25%-5.5%, with the market adjusting its expectations for future rate cuts. Powell's comments led to a decline in risk assets, including cryptocurrencies, and a pullback in U.S. equities. 

Bitcoin, while down in the immediate aftermath, is consolidating between $42,000 and $44,000, with key support levels identified below $40,000. The crypto market showed a modest decline, reflecting disappointment in the Fed's less dovish stance.

Ethereum ETF Prospects and Development Funding

Bloomberg's Seyffart sees possible SEC approval for Ethereum ETFs in the near future, while TD Cowen suggests a delay to 2025 or 2026. Ethereum Protocol Guild calls for 1% token supply donations to support core development, gaining support from over 150 members and attracting backing from EtherFi and VanEck. VanEck commits to pledging 10% of potential Ether ETF profits.  

Binance Contends with Legal Challenges and Expansion

Binance faces lawsuit for allegedly facilitating financial transactions for Hamas. Content leak on GitHub revealed sensitive information, leading to swift action. Binance launched an Inscriptions Marketplace to expand its token offerings and challenge OKX. Following regulatory settlements and leadership changes, Binance regained market dominance, capturing nearly 50% of the market share.  

Solana's Surge Post Jupiter Airdrop

Following the Jupiter airdrop, Solana's transactions surged to over 3,000 per second, impacting ping time. Jupiter's 24-hour trading volume exceeded $688 million, with its DEX aggregator recording $1.38 billion in volume. The airdrop distributed 1 billion JUP tokens, resulting in a $808 million market cap. 62.9% of tokens were claimed across 450,000 addresses.  

Stride and Aevo's Token Airdrops and Developments

Stride plans a 5 million STRD token airdrop, worth $18 million, over 150 days to stTIA holders through two phases. Eligibility expands to Osmosis and Neutron blockchains after 5 days, with unclaimed tokens returning to the community pool. Aevo announces a native token release and farming program, and Ribbon Finance evolves into Aevo, allowing a 1:1 exchange of tokens.  

Ripple Hack Traced and XRP Security Enhancements

The unauthorized transfer of 237.68 million XRP from the Ripple co-founder’s hack, valued at $117.4 million, was traced to exchanges, with 25 million XRP in a new wallet. Nik Bougalis suggested bolstering XRP security with multi-signature support. Kraken's legal win allows informing XRP buyers about a class action, impacting data privacy in crypto. The case accuses Ripple of selling XRP as an unregistered security, influencing the SEC's case. 

Growth in Digital Asset Sector's AUM

In January 2024, the digital asset sector experienced a 1.53% increase in assets under management (AUM) to $50.7 billion. Average daily trading volumes surged by 224% to $2.19 billion, attributed to new U.S. ETFs. Grayscale's outflows slowed down, and new entrants like BlackRock and Fidelity rapidly gained AUM, reshaping the market landscape.  

Crypto Political Donations and Bipartisan Support

Coinbase and Ripple donated $45M to Fairshake, which has raised $85M for pro-crypto politicians. The PAC supports bipartisan pro-crypto candidates but slightly favors Democrats. Not all donors' amounts are confirmed, and more details on contributors will be disclosed soon. Fairshake has spent more on Democratic candidates and supported prominent Republican figures in crypto legislation.  

Clusters: A New Multi-Chain Naming Protocol

Delegate and LayerZero are launching Clusters, a multi-chain naming protocol addressing address fragmentation and domain squatting. It aims to provide a unified identity layer across Ethereum, Solana, and other blockchains. LayerZero's messaging layer will facilitate Clusters' operation. Delegate, previously Delegate Cash, secures $993 million across 182,500 wallets and is used by top NFT projects.  

Celsius' Final Payouts and Closure

Celsius' restructuring plan, approved by 98% of creditors, led to over $3 billion distributed. Ionic Digital, a new Bitcoin mining entity, acquired Celsius' mining assets, targeting 12.7 EH/s and planning to go public. Altcoins were converted to major cryptocurrencies, and Ethereum holdings liquidated, with 18,000 ETH transferred to Coinbase. Celsius' app and website will be shut down.

DeFiance Capital's Legal Victory in Singapore

DeFiance Capital won a Singapore dispute with Three Arrows Capital as the judge acknowledged a trust protecting its assets. The collapse of 3AC caused collateral damage, impacting DeFiance. Liquidators alleged they operated as one entity, but DeFiance argued that their operations were separate. The ruling marks a positive step for the firm's resolution of the issue.  

FTX's Bankruptcy Plan Faces Opposition

FTX bankruptcy plan uses a 2012 bitcoin price to repay customers, triggering widespread opposition. Execs found guilty of diversion and misappropriation, with Alameda Research cited for improper activities. Bankruptcy claims surpass $2 quintillion, vastly exceeding global wealth. Attorneys hope for IRS and SEC subordination to enable customer repayment, but astronomical government fines pose a significant challenge. 

Cube.Exchange Raises $12M in Series A

Cube.Exchange, a hybrid crypto trading platform, secured $12 million in Series A funding led by 6th Man Ventures, bringing its valuation to $100 million. The platform, not yet public, focuses on trader protection and supports off-chain order matching with on-chain settlement. It aims to expand its team, secure licenses, and offer various token rewards.  

Bybit's Licensing Move in Hong Kong

Bybit has applied for a license as a virtual asset trading platform in Hong Kong. The move aligns with the city's favorable stance on cryptocurrencies and its growing appeal to the industry. Hong Kong's conducive regulatory environment is also fostering interest in cryptocurrency exchange-traded funds, indicating an emerging trend in the sector.  

Top Altcoin Gainers and Losers

Gainers:

Chainlink LINK (+8.08%) 

Pyth Network PYTH (+7.88%) 

Mina MINA (+5.90%) 

Losers:

Jupiter Space Station JUP (-25.58%) 

FTX Token FTT (-25.31%) 

Sui SUI (-8.41%)