Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 14, 2024

Crypto Market Update

Table of Contents

Market and Price Movements

• Bitcoin Drops 4% Amid Market Uncertainty and Silk Road Transfers
• Jump Trading Transfers 17,049 ETH, Sparking Market Concerns
• Blackrock Bitcoin and Ethereum ETFs See Significant Inflows
• DRW Holdings Reveals $195M in Crypto ETF Investments

Crypto Products and Innovations

• MetaMask and Mastercard Launch Ethereum Debit Card
• Coinbase Unveils cbBTC, Challenges WBTC Amid Layer 2 Growth
• TON Ventures Launches $40M Fund for TON Blockchain Projects
• Renzo and Jito Team Up for Solana Liquid Restaking Token
• dYdX Introduces Permissionless Listings and MegaVault Liquidity Tool
• Neon EVM Launches Loyalty Points Program for Ecosystem Engagement
• Aethir Token Surges 35% After Upbit and Bithumb Listings
• Offchain Labs Launches Arbitrum-Focused Incubator Tandem

Crypto Exchanges and Security

• WazirX Terminates Custody Agreement Post $235M Hack
• Binance Settles With Brazil Over Unauthorized Derivatives Trading
• GM Token Loses $100M Market Cap Amid Technical Glitches
• Exodus Reports 80% Revenue Increase Despite $9.6M Net Loss

Meme Coins and Market Sentiment

• Meme Coin Kamala Horris Gains 10% Ahead of Crypto Town Hall
• Solana Meme Coin Gigachad Surges 21% After Endorsement

Regulatory and Legal Developments

• ASIC Sues ASX Over Misleading Blockchain Project Statements
• Nigeria Freezes $37M in USDT, Citing Money Laundering Concerns
• Sahara Labs Raises $37M for Decentralized AI Platform
• ParaFi Leads $10M Investment in Ethereum Layer 2 Developer Parfin

Partnerships and Strategic Moves

• Sling Money Secures $15M Funding for Stablecoin Payment App
• Crypto.com Partners With UEFA Champions League
• Unstoppable Domains Partners With Farmsent to Launch ".farm"

Bitcoin Drops 4% Amid Market Uncertainty and Silk Road Transfers

Bitcoin’s price dropped 4% from its daily high, falling from $61,500 to $59,000 despite July’s CPI headline inflation decreasing to 2.9% from 3% in June. The U.S. government moved $600 million in seized Silk Road Bitcoin to Coinbase, adding to market uncertainty, following a $2 billion transfer in late July. Mt. Gox, the defunct exchange, transferred $2 billion in Bitcoin, raising market concerns, though the move was anticipated. Additionally, over $1 billion in USDT was withdrawn from crypto exchanges, signaling a possible risk-off sentiment among investors, potentially leading to further market declines.

Jump Trading Transfers 17,049 ETH, Sparking Market Concerns

Jump Trading transferred 17,049 ETH valued at $46.44 million from Lido, sparking market concerns about a potential sell-off. Analysts debate whether this move indicates strategic liquidity management or signals market manipulation. Despite fears raised by some, data suggests the transfers may be part of routine trading activities rather than a deliberate attempt to crash the market.

Blackrock Bitcoin and Ethereum ETFs See Significant Inflows

Blackrock's Bitcoin and Ethereum ETFs saw significant inflows on Tuesday, with Bitcoin ETFs receiving $38.94 million and Ethereum ETFs attracting $24.34 million. Blackrock's funds led the influx, with its Bitcoin fund securing $34.55 million and its Ethereum fund adding $49.12 million. Meanwhile, Grayscale's Bitcoin Trust experienced an outflow of $28.65 million. Overall, the day's activities pushed the total assets in Bitcoin ETFs to $55.34 billion and Ethereum ETFs to $7.65 billion, reflecting ongoing investor interest despite market fluctuations.

DRW Holdings Reveals $195M in Crypto ETF Investments

DRW Holdings disclosed it holds over $195 million in crypto ETFs, with $150 million invested in the Grayscale Ethereum Trust (ETHE), marking significant institutional interest in Ethereum. This makes ETHE DRW’s third-largest holding after funds tracking the S&P 500 and gold. Despite the broader crypto ETF market’s focus on Bitcoin, DRW’s Bitcoin holdings are more diversified, spread across funds by Ark, 21Shares, BlackRock, and others. 

Meanwhile, Goldman Sachs disclosed holdings of approximately $418 million in spot bitcoin exchange-traded funds (ETFs) as of June 30, per its recent SEC filing. The firm's largest holdings include nearly 7 million shares of BlackRock’s iShares Bitcoin Trust, valued at $238.6 million, making it the fund’s third-largest holder. Additional holdings include shares from Fidelity and Grayscale, reflecting its significant investment in the cryptocurrency market.

MetaMask and Mastercard Launch Ethereum Debit Card

MetaMask and Mastercard have launched a new debit card that allows users to spend directly from their Ethereum wallets. Accepted wherever Mastercard is, the card converts crypto from MetaMask wallets into fiat currency at the moment of transaction. This integration aims to simplify cryptocurrency payments and enhance accessibility for Ethereum users in everyday transactions.

Coinbase Unveils cbBTC, Challenges WBTC Amid Layer 2 Growth

Coinbase unveiled cbBTC, challenging WBTC's dominance after Justin Sun's firm BiT Global gained control of WBTC custody. Concerns about centralization risks have emerged, with calls for permissionless alternatives. Coinbase’s cbBTC has yet to demonstrate its potential impact. Meanwhile, Ethereum's Layer 2 networks hit a record of 12.42 million daily transactions, showcasing rapid scalability advancements. These networks now hold more stablecoins than Solana and Binance Chain combined, with 150% and 94% more, respectively. 

TON Ventures Launches $40M Fund for TON Blockchain Projects

TON Ventures, founded by former TON Foundation members Ian Wittkopp and Inal Kardan, has launched with a $40 million fund dedicated to supporting projects within the TON blockchain ecosystem. The fund aims to invest in startups across decentralized finance, gaming, advertising, and regulated financial products utilizing TON blockchain technology. On August 20, 2024, OKX will list the DOGS meme coin, which has already gained significant popularity, especially within Telegram's ecosystem. 

Binance recently added Telegram’s TON coin to its Launchpool and introduced the “Super Earn” initiative, with users staking BNB and FDUSD to farm TON. Additionally, the Telegram game TapSwap, which has millions of players, introduced a new city builder mode, "Tappy Town," enhancing its play-to-earn mechanics and integrating it further with TON.

Renzo and Jito Team Up for Solana Liquid Restaking Token

Renzo has teamed up with the Jito Foundation to enter the Solana liquid restaking sector, aiming to introduce ezSOL on Jito's platform. This collaboration allows Renzo to offer a liquid restaking token (LRT) on Solana, leveraging Jito's MEV-enhanced validator network to enhance rewards for users who stake their assets. ezSOL is set to launch next month and will support various DeFi protocols on Solana, providing users with opportunities to maximize their earnings through restaking strategies.

dYdX Introduces Permissionless Listings and MegaVault Liquidity Tool

dYdX has introduced updates to its chain, including permissionless token listings and MegaVault, a new liquidity tool. This allows users to list tokens on its platform without prior approval and ensures liquidity across all markets via a master liquidity pool. The MegaVault also enables users to deposit funds and earn revenue from market-making activities automatically. These updates aim to enhance accessibility and liquidity management on the dYdX platform. 

Neon EVM Launches Loyalty Points Program for Ecosystem Engagement

Neon EVM launches a new loyalty points program, rewarding users for on-chain interactions within their ecosystem. Over 60 million points will be distributed to early adopters, NFT holders, and partners. The initiative aims to boost engagement and adoption, aligning with Neon's strategy to integrate Ethereum-compatible dApps onto Solana and expand its blockchain interoperability solutions.

Aethir Token Surges 35% After Upbit and Bithumb Listings

Aethir (ATH) token surged 35% following its listing on South Korea's Upbit and Bithumb exchanges. This move was driven by demand from AI and gaming sectors, though concerns about long-term sustainability linger. ATH started trading at $0.087, aiming to surpass its previous high of $0.146 amidst volatile trading conditions.

Offchain Labs Launches Arbitrum-Focused Incubator Tandem

Offchain Labs launched Tandem, an incubator division focused on nurturing projects within the Arbitrum ecosystem. Tandem aims to accelerate innovation by providing resources, mentorship, and launch strategies to blockchain infrastructure projects leveraging Arbitrum’s technology stack. This initiative seeks to foster the development of decentralized applications and scalable protocols, supporting Arbitrum's growth in web3.

WazirX Terminates Custody Agreement Post $235M Hack

WazirX, an Indian crypto exchange hit by a $235 million hack, has terminated its asset custody agreement with Liminal. They're now moving funds to new multi-signature wallets for enhanced security post-breach. WazirX blames Liminal for the incident, citing compromised custodial interfaces, while Liminal denies responsibility, sparking a dispute over security lapses.

Binance Settles With Brazil Over Unauthorized Derivatives Trading

Binance will pay $1.7 million to settle with Brazil's securities regulator over unauthorized derivatives trading. The Brazilian Securities Commission (CVM) rejected a previous lower settlement offer from Binance. This marks a resolution after earlier orders for Binance to cease such services in Brazil.

GM Token Loses $100M Market Cap Amid Technical Glitches

Over $100M was swiftly erased from GM token's market cap during its tumultuous launch, sparking outrage among investors. The presale-backed project, gm.ai, faced technical glitches with its Anchor protocol, preventing token unstaking and contributing to a rapid price drop of over 80%. This catastrophic event underscores the risks in unverified token launches.

Exodus Reports 80% Revenue Increase Despite $9.6M Net Loss

Exodus reported an 80% year-over-year revenue increase to $22.3 million in Q2 2024, driven by its exchange aggregation service, which contributed 89% of revenue. However, the company posted a $9.6 million net loss due to lower digital asset prices. Operationally, Exodus saw its monthly active users rise to 1.5 million, with a 78% increase in exchange provider volume to $1.05 billion. Exodus also integrated with Blockchain.com for on-ramp services, enhancing its wallet capabilities.

Meme Coin Kamala Horris Gains 10% Ahead of Crypto Town Hall

Kamala Horris (KAMA), a meme coin, surged 10% as Democrats prepare for a crypto-focused Town Hall, boosting Harris's odds on Polymarket. Despite this, Harris's stance on crypto remains ambiguous, sparking debate over Polymarket's political bias. Critics question its accuracy in predicting political sentiment amid ongoing speculation about Harris's policy intentions.

Solana Meme Coin Gigachad Surges 21% After Endorsement

Solana-based meme coin Gigachad surged 21% following an endorsement from a popular meme model, supported by a sports brand collaboration. Gigachad's price rise reflects growing celebrity endorsement and community interest in meme-based cryptocurrencies.

ASIC Sues ASX Over Misleading Blockchain Project Statements

The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against the Australian Securities Exchange (ASX), alleging the exchange made misleading statements about its abandoned blockchain project. ASX had claimed its CHESS replacement project with blockchain was on track, but ASIC contends these statements were inaccurate. The project faced delays and challenges, leading ASX to pause and eventually abandon it. ASIC's lawsuit underscores the importance of transparency in major market initiatives like these. ASX is reviewing the allegations and has acknowledged the seriousness of the proceedings.

Nigeria Freezes $37M in USDT, Citing Money Laundering Concerns

Nigeria's government has frozen $37 million in Tether's USDT stablecoin held across four crypto wallets, citing suspicions of money laundering and terrorism financing. The Economic and Financial Crimes Commission (EFCC) secured the freeze from an Abuja Federal High Court, targeting wallets linked to individuals under investigation. These wallets, including those connected to exchanges like MEXC and KuCoin, are part of a broader crackdown following protests against governance issues in Nigeria. The identities of the wallet owners remain undisclosed as investigations continue.

Sahara Labs Raises $37M for Decentralized AI Platform

Sahara Labs, a crypto-AI startup, secured $37 million in funding co-led by Pantera Capital and Polychain Capital. The investment aims to advance Sahara AI, a decentralized platform ensuring fair compensation for AI contributors and privacy preservation. The round included backers like Binance Labs and Samsung Next, bringing Sahara's total funding to $43 million.

ParaFi Leads $10M Investment in Ethereum Layer 2 Developer Parfin

ParaFi Capital has led a $10 million Series A funding round into Parfin, an Ethereum Layer 2 developer focused on enterprise solutions like tokenization and CBDCs. Parfin's Rayls network, designed for institutional use, integrates DeFi capabilities while ensuring compliance through KYC measures. The funding aims to expand Rayls' reach globally, with plans for further Series A financing.

Sling Money Secures $15M Funding for Stablecoin Payment App

Sling Money, a global payment app leveraging stablecoins, secures $15 million in Series A funding led by Union Square Ventures, Ribbit Capital, and Slow Ventures. The app facilitates instant cross-border transfers using Pax Dollar (USDP), promising low to no fees across 50+ countries in Europe and Africa.

Crypto.com Partners With UEFA Champions League

Crypto.com has partnered with the UEFA Champions League, marking a significant milestone in crypto adoption. As the league's official global sponsor, Crypto.com aims to leverage its association with one of the world's largest sports leagues to expand its user base, which has already grown to over 100 million. This move is expected to increase mainstream awareness and potentially bring new capital into the crypto market.