Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 13, 2024

Crypto Market Update

Table of Contents

Bitcoin and Ethereum Market Updates

• Bitcoin Rises Despite Trump-Musk Silence, Mt. Gox Moves Funds
• Ethereum ETFs See Record Inflows Amid Market Pressure

Legal and Regulatory News

• Three Arrows Capital Sues Terraform Labs for $1.3 Billion
• SEC Charges NovaTech Founders for $650 Million Crypto Fraud
• Binance.US Faces Legal Action Over HEX Price Manipulation
• ezBtc Founder Misuses $9.5 Million for Personal Gambling
• Tether Invests $3 Million in Kem to Boost Crypto Adoption

Crypto Exchanges and Platforms

• Coinbase Resumes Operations in Hawaii After Regulatory Shift
• Wazirx Reversing Trades After $230 Million Cyberattack
• Grayscale Launches Fund Focused on MakerDAO's MKR Token
• Kelp DAO Launches Gain Vault for L2 Airdrop Optimization
• Uniswap Labs Exceeds $50 Million in Front-End Fees
• Aurora Labs Integrates Bitcoin with NEAR via Light Client

Banking and Institutional Developments

• DBS Bank Pilots Multi-Currency Treasury Tokens with Ant International
• Hedera Partners with Copper for Institutional HBAR Access

Industry Innovations and Patents

• Elon Musk's X Hit by DDoS Before Trump Interview
• Theta Labs Secures Patent for Off-Chain Distributed Computing
• Helium Partners with U.S. Carriers for Decentralized Network Offloading
• Curve Finance Reduces CRV Emissions to Combat Inflation
• Essential Raises $11 Million for Intent-Based Ethereum Layer 2

Company and Token Developments

• Hamster Kombat Rejects VC Funding, Launches HMSTR Token
• BlackRock Explores Ethereum Layer 2 Network for Tokenization
• Solana Whale Sells $84 Million in Tokens Since January
• Pump.fun Surpasses $28 Million in Revenue Amid Memecoin Frenzy

Bitcoin Rises Despite Trump-Musk Silence, Mt. Gox Moves Funds

Bitcoin was trading above $61,000, showing an increase after a Trump-Musk interview that avoided crypto discussions. This happened with significant bid liquidity of around $58,000 as Japan's stock markets rebounded. Meanwhile, a wallet linked to Mt. Gox activated, moving a small amount from its $1.96 billion holdings, with 67.7% of the repayment process completed without impacting Bitcoin prices. New Bitcoin investors face severe stress, with metrics indicating significant unrealized losses, potentially exacerbating market volatility. The Short-Term Holder MVRV ratio is particularly low, marking the largest unrealized losses since the 2022 bear market, reflecting negative sentiment among recent investors.

Ethereum ETFs See Record Inflows Amid Market Pressure

Over the past week, Ethereum (ETH) ETFs marked historic inflows, with BlackRock leading at $168.55 million. Grayscale's Ether ETF saw its first daily inflow, ending a 14-day outflow streak. Ethereum rallied to $2,700, driven by $4.93 million in net inflows. Despite this, BlockTower Capital liquidated $25 million in ETH on August 13, adding to bearish pressure alongside a whale selling 48,500 ETH in a month. However, renewed buying from other investors suggests potential recovery if ETH breaks the $2,700 resistance.

Three Arrows Capital Sues Terraform Labs for $1.3 Billion

Liquidators for Three Arrows Capital have filed a $1.3 billion lawsuit against Terraform Labs, alleging market manipulation that led to significant losses after the 2022 crash. The suit claims Terraform artificially inflated Luna and TerraUSD prices before their collapse, impacting 3AC's financial stability. Terraform filed for bankruptcy in January 2024 amidst ongoing legal challenges.

SEC Charges NovaTech Founders for $650 Million Crypto Fraud

The SEC has charged Cynthia and Eddy Petion of NovaTech for orchestrating a $650 million crypto fraud involving over 200,000 investors. Operating from 2019 to 2023, they promised high returns but used new investments to pay off old ones, benefiting themselves and top promoters. The SEC seeks penalties including injunctions and disgorgement.

Binance.US Faces Legal Action Over HEX Price Manipulation

Binance.US faces revived legal action over alleged manipulation of HEX token prices. A U.S. appeals court reinstated a class-action lawsuit claiming Binance.US and CoinMarketCap manipulated HEX's price, impacting its market position and value significantly since its peak. The court found jurisdiction and validated claims under the Commodity Exchange Act, setting the stage for further legal proceedings.

ezBtc Founder Misuses $9.5 Million for Personal Gambling

The BC Securities Commission uncovered that ezBtc's founder misused $9.5 million in crypto funds, primarily for personal gambling. The exchange, once a key player in Canada, promised secure transactions but dissolved in 2022, leaving investors unable to access their assets. This incident underscores risks in unregulated crypto exchanges, emphasizing the need for due diligence in choosing platforms.

Tether Invests $3 Million in Kem to Boost Crypto Adoption

Tether is investing $3 million in Kem, aiming to introduce USDT and boost crypto adoption across the Middle East. The MENA region, with a $389.8 billion crypto economy, is a focus due to economic challenges. Tether's move seeks to improve financial inclusion, targeting expatriates and underserved businesses by integrating crypto into Kem's platform.

Coinbase Resumes Operations in Hawaii After Regulatory Shift

Coinbase has resumed operations in Hawaii following regulatory changes, enabling residents to trade and manage cryptocurrencies on its platform. The state's decision to exempt crypto firms from the money transmitter license requirement paved the way for Coinbase's return. Hawaii users now benefit from features like staking, offering potential annual yields up to 12% on selected assets.

Wazirx Reversing Trades After $230 Million Cyberattack

Indian crypto exchange Wazirx is nearing completion on reversing trades following a $230 million cyberattack. Withdrawals remain suspended as legal experts aid in formulating a recovery plan. The exchange has launched a bounty program attracting 344 participants to help retrieve stolen funds. Users express concerns over delayed access to their assets amidst ongoing recovery efforts.

Grayscale Launches Fund Focused on MakerDAO's MKR Token

Grayscale has launched a new fund centered on MakerDAO's MKR token, targeting accredited investors. This move expands their portfolio beyond Bitcoin and Ethereum, following recent trusts for other tokens like TAO and SUI. MakerDAO, known for its decentralized lending and Dai stablecoin, plays a significant role in the DeFi space, managing over $7 billion in assets.

Kelp DAO Launches Gain Vault for L2 Airdrop Optimization

Kelp DAO has launched the 'Gain Vault,' aimed at optimizing L2 airdrop rewards. This new initiative simplifies access to Layer 2 airdrops through synthetic tokens, allowing users to consolidate their investments and maximize earnings across DeFi strategies. The vault automates reward management and leverages partnerships with L2 protocols and DeFi platforms for enhanced returns.

Uniswap Labs Exceeds $50 Million in Front-End Fees

Uniswap Labs has achieved a significant milestone, surpassing $50 million in cumulative front-end fees. These fees, starting at 0.15% last October and increased to 0.25% in April, have soared from $3.7 million earlier this year to over $50.6 million. Uniswap remains a dominant force in decentralized exchanges, handling $54 billion in July alone, a third of the DEX market. Users can opt for fee-free alternatives like 1inch, Cowswap, and Paraswap, though Uniswap's platform continues to lead with 25.7% of DEX activity.

Aurora Labs Integrates Bitcoin with NEAR via Light Client

Aurora Labs has launched a Bitcoin Light Client, integrating Bitcoin with NEAR Protocol for the first time. This client, acting as a NEAR smart contract, enables NEAR dApps to validate Bitcoin transactions. With added chain signature services, native Bitcoin bridges are facilitated, allowing seamless BTC transfers between networks, enhancing web3 interoperability.

DBS Bank Pilots Multi-Currency Treasury Tokens with Ant International

DBS Bank launches a pilot for "DBS Treasury Tokens" in collaboration with Ant International, aiming to enhance multi-currency treasury and liquidity management. Powered by DBS' permissioned blockchain, the initiative speeds up intra-group transactions and boosts cash flow visibility. This project supports Ant International's efforts in optimizing financial operations across global markets.

Hedera Partners with Copper for Institutional HBAR Access

Hedera has partnered with crypto custodian Copper to enhance institutional access to HBAR tokens. Copper will offer custody and staking services for HBAR, facilitating entry into Hedera's DeFi ecosystem through ClearLoop and Connect platforms. With a client base including over 300 institutions, Copper aims to bolster liquidity and accessibility for institutional investors interested in decentralized finance opportunities on Hedera.

Elon Musk's X Hit by DDoS Before Trump Interview

Elon Musk claimed X (formerly Twitter) faced a massive DDoS attack just before his interview with Donald Trump, delaying the event. Despite the attack, around 120,000 users joined the stream. The interview, which focused on immigration, foreign relations, and criticism of President Biden, notably avoided any mention of cryptocurrencies, disappointing many. 

Theta Labs Secures Patent for Off-Chain Distributed Computing

Theta Labs has secured US Patent 12,056,730 for off-chain verification of distributed computing tasks, marking a significant stride in decentralized computing. This innovation promises enhanced efficiency in handling complex tasks like AI model training, leveraging smart contracts and Edge Nodes. Theta Network's EdgeCloud platform is set to advance applications in smart grids, IoT, and cloud gaming.

Helium Partners with U.S. Carriers for Decentralized Network Offloading

Helium, powered by Solana, teams up with top U.S. carriers to trial decentralized network offloading, aiming to decentralize telecommunications infrastructure. Initial tests with two major carriers saw 185,378 subscribers and 2,675 GB data transferred, showcasing potential for reduced costs and enhanced network resilience in the future.

Curve Finance Reduces CRV Emissions to Combat Inflation

Curve Finance celebrates its fourth anniversary with a strategic reduction in CRV emissions, aiming to combat inflation and bolster token value. Annual emissions drop from 274 million to 162.7 million CRV, reducing daily emission to 375,000 CRV. The move stabilizes supply and governance, prompting a 10% surge in CRV's value amidst broader market challenges.

Essential Raises $11 Million for Intent-Based Ethereum Layer 2

Intent-centric Ethereum Layer 2 Essential has secured $11 million in Series A funding, structured with equity and token warrants. Led by Archetype, investors include IOSG Ventures and Spartan Group. Essential pioneers an intent-based Ethereum Layer 2 approach, aiming to enhance scalability and user experience with a planned mainnet launch in 2025.

Hamster Kombat Rejects VC Funding, Launches HMSTR Token

Hamster Kombat, a popular play-to-earn crypto game, has rejected VC funding, criticizing it as "exit liquidity" behavior. With 200 million users since April and 53 million Telegram subscribers, it plans to launch the HMSTR token for players. The game aims to prioritize innovation and user value over traditional funding practices in the Web3 space.

BlackRock Explores Ethereum Layer 2 Network for Tokenization

BlackRock is exploring the possibility of launching its own Layer 2 (L2) network compatible with Ethereum, aiming to expand tokenization efforts. The investment giant, known for its focus on Bitcoin and Ethereum, could introduce a proprietary L2 solution to enhance control over security and operations. However, building and securing bridges between Ethereum and L2 remain key challenges amid regulatory and technical complexities.

Solana Whale Sells $84 Million in Tokens Since January

A Solana whale has been systematically selling off SOL tokens since January, recently depositing $2.8 million worth into Coinbase. This brings their total sales for the year to $84 million. The whale opted for a dollar-cost averaging strategy, selling tokens gradually over time rather than in a single large transaction. This approach helps mitigate risks associated with market volatility.

Pump.fun Surpasses $28 Million in Revenue Amid Memecoin Frenzy

Pump.fun achieved a groundbreaking milestone with a record monthly revenue of $28.73 million during July. Surpassing Ethereum in 24-hour revenue by generating $864,000, the platform capitalized on retail interest in meme coins on Solana. The success also stemmed from celebrity memecoin launches, reinforcing its position amidst the memecoin frenzy.