Coin360 Daily Dispatch | Crypto Market Updates & Highlights | April 24, 2024

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Crypto Market Update

Table of Contents

Market and Asset Updates

• Bitcoin's Market Dynamics Amid Expected Weak US Dollar
• Ethereum ETF Strategies by BlackRock and Grayscale
• CBN Clarifies Crypto Policy Amid Binance Controversies
• Former Binance CEO Faces Stiff Sentencing Recommendation
• Solana Meme Coins BONK and WIF See Price Surges

Platform and Corporate Movements

• Hedge Funds Capitalize on Memecoin Markets
• Robinhood Expands Crypto Trading in New York
• Tesla Maintains Bitcoin Holdings Despite Financial Setbacks
• Coinbase Eyes NBA Playoffs for Major Ad Campaign

Regulatory and Legal Developments

• Legal Actions Brew Against ZKasino Co-Founders
• OneCoin Connected Bank Fraud Leads to Arrest
• Do Kwon's Legal Battles Intensify After Terra Collapse
• Australia and Indonesia Collaborate on Crypto Taxation
• Ripple Restructures U.S. Operations Amid Regulatory Shifts

Tokenomics and Technical Advances

• Renzo Protocol Experiences ezETH Price Instability
• Stablecoin Usage Surges Amid Regulatory Developments
• Chainlink Promotes Interoperability with New Protocol
• Worldcoin's Global Expansion Amid Regulatory Talks
• Starknet Addresses Sybil Attacks in Crypto Airdrops

Industry Trends and Partnerships

• BlackRock’s HBAR Miscommunication Causes Market Fluctuation
• Jupiter's Mobile Expansion to Enhance Solana Ecosystem
• Yuga Labs Faces Criticism Over World Economic Forum Partnership
• DeGods Considers a Solana Reunion Amidst Community Buzz

Bitcoin's Market Dynamics Amid Expected Weak US Dollar

Bitcoin's price action is closely tied to shifts in the US dollar, as traders anticipate further gains if the dollar weakens despite the recent drop to $64,700. Additionally, the return of Mt. Gox-era Bitcoin valued at over $9 billion has raised concerns about potential market volatility due to the large overhang of Bitcoin being reintroduced. In contrast, Arthur Hayes predicts a significant rise in Bitcoin's value, suggesting a bullish crypto market backed by continued fiat devaluation. 

Concurrently, the Bitcoin issuance rate has dropped below gold's post-halving, as per Glassnode, marking a significant shift towards Bitcoin becoming a scarcer asset. The third-largest Bitcoin wallet has been notably active, purchasing 1,400 more BTC last month, reflecting strong institutional interest as potential preparatory moves for ETF investments were indicated. This came as the Hong Kong Bitcoin and Ether ETFs launch is coming up on April 30.

Ethereum ETF Strategies by BlackRock and Grayscale

BlackRock and Grayscale have amended their Ethereum ETF applications following SEC delays, with BlackRock proposing cash-based transactions for its iShares Ethereum Trust, and Grayscale aiming to convert its Ethereum Trust into an ETF. BlackRock's Bitcoin ETF, IBIT, has seen significant growth, ranking among the top ten U.S. ETFs with over $15 billion in inflows and managing assets worth $18.15 billion. It holds 274,469 BTC, demonstrating strong market acceptance of cryptocurrencies as legitimate investments.

CBN Clarifies Crypto Policy Amid Binance Controversies

The Central Bank of Nigeria (CBN) refuted issuing directives to freeze accounts associated with crypto transactions, specifically targeting those involving Tether on P2P platforms, contradicting an earlier lift of a ban that had prohibited banks from facilitating crypto exchanges due to the naira's devaluation and a 29.9% inflation rate. 

Meanwhile, Binance's Tigran Gambaryan remains jailed in Nigeria's Kuje prison on charges of money laundering and tax evasion, with his bail hearing postponed until May 17. The situation escalated after a high-profile escape by a fellow Binance executive, intensifying scrutiny over Binance's activities in Nigeria amidst government accusations of currency speculation.

Former Binance CEO Faces Stiff Sentencing Recommendation

The U.S. Department of Justice (DoJ) has recommended a 36-month jail sentence for former Binance CEO Changpeng Zhao for money laundering violations, citing willful breaches of U.S. law. This sentence exceeds the guidelines which suggest 18 months. Zhao pleaded guilty to charges in a settlement in November 2023, agreeing to a $4.3 billion penalty for Binance and a $50 million fine for himself. 

Concurrently, Zhao has apologized for his actions in a letter to the judge, taking full responsibility. Ahead of his sentencing, 161 letters, including those from family and notable individuals, have been submitted advocating for leniency, highlighting Zhao's integrity and philanthropic efforts.

Solana Meme Coins BONK and WIF See Price Surges

Solana meme coins BONK and WIF are defying the market trend with notable price gains. BONK surged 13.5% in 24 hours due to a significant token burn proposal approval, while WIF saw an 8.5% spike with promising technical indicators. Both coins exhibit bullish momentum despite recent corrections, presenting potential resistance and support levels for traders.  

Hedge Funds Capitalize on Memecoin Markets

Hedge funds are diving into memecoins, attracted by exceptional returns despite their speculative nature. Stratos's fund achieved a 137% Q1 return from Dogwifhat, a Solana-based memecoin. Although some funds make minimal investments, entities like Pantera view memecoins as long-term players. Stratos reported a 109% net gain, mainly through Solana and memecoin investments, stressing their limited correlation to other asset classes and substantial upside. Memecoins are gaining infrastructure support, with advanced futures markets and improved liquidity, fostering hedge fund interest and investment.

Robinhood Expands Crypto Trading in New York

New York residents can now trade Shiba Inu (SHIB), Avalanche (AVAX), and Compound (COMP) on Robinhood, expanding the platform's list to 11 cryptocurrencies in the state. The addition comes after last June's delisting of three tokens due to regulatory concerns. Following the announcement, AVAX, SHIB, and COMP experienced modest price decreases of approximately 2% to 4%.  

Tesla Maintains Bitcoin Holdings Despite Financial Setbacks

In Q1 2024, Tesla reported a 15% revenue drop and a 50% earnings plunge, with its first negative cash flow since 2020. However, the company retained its entire Bitcoin portfolio amid industry volatility. It now holds one of the largest public corporate Bitcoin stakes, worth over $1 billion, albeit facing potential risks due to market instability and its own financial difficulties.  

Coinbase Eyes NBA Playoffs for Major Ad Campaign

Coinbase reportedly plans to launch a $15 million TV ad campaign during NBA playoffs, aiming to attract sports fans to crypto. The commercials emphasize the inefficiencies of traditional payment systems using a pizza analogy. They will air on ESPN, ESPN2, TNT, and ABC, showcasing how crypto offers a faster, more efficient financial alternative.  

Legal Actions Brew Against ZKasino Co-Founders

A group of investors formed a Telegram called "ZKasino Legal Task Force" to take legal action against the co-founders of ZKasino after they allegedly swapped around $33 million in Ether for their native token and went dark. Allegations include the misuse of funds, false advertising of their blockchain technology, and the uncertain status of the native token.  

OneCoin Connected Bank Fraud Leads to Arrest

William Morro has been arrested and charged for bank fraud in connection with the OneCoin crypto scheme. He transferred $35 million in funds linked to OneCoin from China to Hong Kong in 2016 and moved over $6 million to a U.S. account. Morro pled guilty to conspiracy to commit bank fraud and is associated with the boyfriend of OneCoin founder Ruja Ignatova.  

Do Kwon's Legal Battles Intensify After Terra Collapse

Do Kwon, Terraform Labs co-founder, faces extradition from Montenegro to the U.S. or South Korea over Terra's collapse and fraud charges related to TerraUSD. Legal disputes involve "bizarre" interpretations, involving Minister of Justice. Terra's collapse caused $40 billion in losses, affecting the crypto market. Jury findings in both the U.S. and South Korea hold Kwon liable for fraud.    

Australia and Indonesia Collaborate on Crypto Taxation

Indonesia and Australia's tax authorities signed an information-sharing pact to enhance crypto asset taxation. The collaboration aims to identify taxable assets efficiently, promoting economic growth through equitable taxation. Indonesia's proactive regulation in the crypto sector includes a licensing sandbox. Australia is involved in an OECD initiative for global crypto tax framework development, fostering tax transparency.  

Ripple Restructures U.S. Operations Amid Regulatory Shifts

Ripple shifts U.S. operations from XRP to USDT following a court ruling related to securities laws. Monica Long, Ripple's President, announced the change to legally approved stablecoins for U.S.-based services. Ripple reorients sales contracts for ODL customers through its Singapore subsidiaries to mitigate U.S. regulatory constraints. Financial details reveal dependency on XRP sales and significant losses pre-SEC lawsuit.  

Renzo Protocol Experiences ezETH Price Instability

Renzo Protocol's ezETH suffered price depegs following the end of airdrop farming, with incidents leading to quick recoveries but causing significant trader profits and losses. A single trader made nearly $400,000 in two hours from ezETH's depeg. The wider sell-offs were driven by the conclusion of Season 1 Airdrop and low liquidity, notably affecting prices on Uniswap. Renzo's introduction of REZ tokenomics and forthcoming ezPoints claims add layers to its ecosystem. Despite the setbacks, Renzo remains a significant player in liquid restaking, with a robust user base and substantial total value locked.

Stablecoin Usage Surges Amid Regulatory Developments

The number of stablecoin addresses has increased by 15% to over 93.6 million, with Tether (USDT) leading the market. Active stablecoin addresses surpassed 26 million, mostly on TRON and Binance Smart Chain, while Ethereum and Solana account for the majority of transfer volume. According to S&P, the proposed U.S. stablecoin regulations could diminish Tether's dominance, inspiring traditional banks to enter the market. If approved, the bill may limit non-licensed institutions to a $10 billion stablecoin issuance, potentially boosting U.S.-issued stablecoins and giving rise to new digital asset custody providers.  

Chainlink Promotes Interoperability with New Protocol

Chainlink's Cross-Chain Interoperability Protocol (CCIP) aims to enhance cross-chain smart contracts' interoperability across nine blockchain networks, facilitating token transfers and contract messaging. CCIP, integrated with the Transporter app, addresses vulnerabilities in cross-chain bridges, enabling secure transactions. It targets the financial sector, aiding in unlocking a $500 trillion asset opportunity.  

Worldcoin's Global Expansion Amid Regulatory Talks

Worldcoin plans to increase its WLD token supply by 19%, pumping 1.5 million tokens weekly for six months, totaling 36 million, with a current market value of ~$200 million. This expansion targets non-US institutional sales. Meanwhile, in Malaysia, Worldcoin executives met with officials amid privacy concerns, discussing potential collaborations and strategic expansions. These meetings involve key figures from Malaysia's digital economy sector, emphasizing Worldcoin's commitment to privacy through data-minimal design, as acknowledged by Ethereum co-founder Vitalik Buterin.

Starknet Addresses Sybil Attacks in Crypto Airdrops

Starknet Foundation reopened STRK airdrop claims for three user groups previously unable to claim due to issues like asset mislabeling on LidoFinance and RocketPool, affecting over 700 million tokens. Meanwhile, a surge in fake farm accounts or Sybil attacks has been noted across various crypto projects, with Degen and Bitget Wallet implementing measures against such abuses. Sybil attacks involve using scripts or bots to create numerous fake accounts, manipulating token distributions and inflating project valuations, although this also led to advances in user verification and fair airdrop practices.

BlackRock’s HBAR Miscommunication Causes Market Fluctuation

Hedera's HBAR token surged 113% after news broke that BlackRock's fund was tokenized on the platform. Later, BlackRock clarified it was not directly involved in this move, as per a BlackRock spokesperson’s response to Decrypt via email, causing a 38% drop in HBAR's value. Despite this, BlackRock's CEO has supported tokenization efforts, emphasizing the legitimacy it brings to the industry.  

Jupiter's Mobile Expansion to Enhance Solana Ecosystem

Jupiter, a top Solana DEX aggregator, acquired Ultimate Wallet for mobile expansion, aiming to attract millions of users. The beta launch is set for May, offering high-speed on-chain trading experiences. With a $10 billion weekly trading volume, Jupiter aims to introduce a native mobile wallet and launch a new mobile application, also boosting Solana's growth.