Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 15, 2024

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin Faces Pressure Amid $1.4 Billion Options Expiry
• BlackRock Surpasses Grayscale in Crypto Asset Management
• NYSE Withdraws Proposal for Bitcoin ETF Options
• Marathon Digital Buys $250 Million in Bitcoin, Stock Surges

Crypto Wallets & Platforms

• Phantom Wallet Resolves Bug Affecting Balance Visibility
• Uniswap Labs Launches $2.35 Million Auditing Competition
• Circle to Launch NFC Payments for USDC on iPhones
• Tokenized Real-World Assets Reach $3 Billion in Value
• Cronos zkEVM Launches on Ethereum's Mainnet
• LI.FI Integrates ThorChain for Native Bitcoin Swaps
• BANANA Token Surges After $8.68 Million Burn
• MANTRA and Novus Partner to Tokenize Aviation Assets
• Bitfinex and Komainu Partner to Enhance Trading Security
• Aavegotchi Studio Unveils Exclusive Ethereum Layer-3 Gaming Chain
• ZynCoin Launches Physical Collectible Rewarding $ZYN Tokens
• B3.fun Launches Game Discovery Platform on Base Mainnet
• OKX Integrates Solana's Blinks Technology Into Wallet

Charitable Contributions

• Vitalik Buterin Donates $500K in Memecoins to Charity

Market Movements & Token Performance

• PAAL AI Faces Significant Price Decline Amid Whale Sell-Off
• Aave's Token Surges as Active Borrowers Hit Record High
• EigenLayer Leads Restaking Market with $12.9 Billion TVL

New Projects & Investments

• Donald Trump Jr. Launches "The Defiant Ones" Telegram Channel
• Chaos Labs Raises $55 Million for DeFi Risk Management Tools

Blockchain & DeFi Developments

• Base Integrates Chainlink's Data Streams and VRF Products

Regulatory & Banking Updates

• Ecuador's Central Bank Warns Against Worldcoin Adoption
• Merlin's Assets Plummet Amid Market Challenges
• Binance Resumes Operations in India After $2.25M Settlement
• WazirX Announces Maintenance After $230M Hack

Legal & Crime News

• ZKasino Accused of Exit Scam by Users
• Investor Nets $30M in Solana Pump-and-Dump Scam
• Malaysian Nationals Charged in Cryptocurrency Kidnapping Case
• Australian Man Sentenced for Spending $6.9M Mistakenly Sent by Crypto.com

Auctions & Collectibles

• Sotheby’s to Auction CryptoPunk and Beeple NFT

Bitcoin Faces Pressure Amid $1.4 Billion Options Expiry

On August 16, 2024, over $1.4 billion in Bitcoin options are set to expire, which may push Bitcoin’s price below $56,000 due to significant sell pressure. Additionally, the U.S. government transferred 10,000 BTC (nearly $1 billion) to Coinbase, spread over three transactions, leading to a 5% drop in Bitcoin’s price. These events underscore the market's sensitivity to large-scale transactions and the influence of institutional actions on cryptocurrency prices.

BlackRock Surpasses Grayscale in Crypto Asset Management

Bitcoin ETFs saw an $81.36 million outflow, while Ethereum ETFs gained $10.77 million. BlackRock surpassed Grayscale in crypto assets, managing over $22 billion, with its IBIT ETF holding $21 billion. Grayscale’s ETHE fund faced $2.3 billion in outflows. Morgan Stanley sold nearly all its GBTC shares, reallocating $187 million to BlackRock’s IBIT. 

NYSE Withdraws Proposal for Bitcoin ETF Options

NYSE American LLC has withdrawn its proposal to list and trade options on spot Bitcoin ETFs, including the Bitwise Bitcoin ETF and the Grayscale Bitcoin ETF. This decision follows a delay in SEC action on the proposal, indicating potential regulatory considerations. Other exchanges, like Cboe, have also adjusted their applications amidst evolving regulatory landscapes.

Marathon Digital Buys $250 Million in Bitcoin, Stock Surges

Marathon Digital's stock surged after the company announced it had purchased $250 million worth of Bitcoin following the sale of senior convertible notes. This move highlights the company's bullish outlook on Bitcoin's future prospects amidst ongoing market developments.

Phantom Wallet Resolves Bug Affecting Balance Visibility

Phantom wallet, a popular Solana-based crypto wallet, swiftly addressed a bug affecting balance visibility, calming fears of potential hacks. Users reported missing tokens, prompting quick investigation and resolution by Phantom. Despite the incident not impacting funds, the issue highlighted security concerns. Phantom has grown rapidly since its 2021 launch, reaching over 7 million active users by integrating Bitcoin support. Despite competition, it remains popular within Solana, though recent imitations have surfaced, posing risks to users.

Uniswap Labs Launches $2.35 Million Auditing Competition

Uniswap Labs has launched a $2.35 million auditing competition for its upcoming Uniswap v4 protocol, touted as the largest in DeFi history. The initiative aims to enhance security by funding independent reviews of smart contracts and the Universal Router system, crucial for ERC-20 token and NFT swaps. Scheduled to start on September 4, the competition seeks to identify and fix vulnerabilities before v4 goes live.

Circle to Launch NFC Payments for USDC on iPhones

Circle plans to launch NFC contactless payments for USDC on iPhones, leveraging Apple's newly accessible NFC technology. This move aims to enable seamless USDC transactions directly from blockchain-enabled iPhone wallets, expanding beyond traditional payment apps. The integration will initially roll out in several key markets, offering broader accessibility and functionality for digital asset transactions.

Tokenized Real-World Assets Reach $3 Billion in Value

Tokenized real-world assets (RWA) have surged to approximately $3 billion in value, excluding stablecoins, showcasing significant growth in DeFi and institutional use. Primarily serving large-scale traders and institutions, RWAs encompass commodities, government bonds, and limited real estate. Despite niche adoption in real estate, tokenized assets are predominantly leveraged for DeFi liquidity and institutional portfolios, highlighting their evolving role in blockchain finance.

Cronos zkEVM Launches on Ethereum's Mainnet

Cronos Labs, partnering with Matter Labs, launches Cronos zkEVM on Ethereum's mainnet, marking a significant milestone in Layer 2 scaling. The zkEVM integrates with ZKsync, enhancing Ethereum's scalability and usability with triple yield benefits for users. The alpha mainnet phase will precede a beta phase, supported by a robust ecosystem and a pioneer program incentivizing community engagement and adoption.

LI.FI Integrates ThorChain for Native Bitcoin Swaps

LI.FI has integrated ThorChain to enable native Bitcoin swaps with EVM chain assets, streamlining BTC accessibility through its API. This integration allows users to directly purchase BTC within their wallets and applications, eliminating friction and enhancing DeFi platforms and enterprise solutions. LI.FI plans to expand support to Bitcoin Layer 2 solutions, aiming to broaden its integration capabilities across the Bitcoin ecosystem.

BANANA Token Surges After $8.68 Million Burn

The BANANA token surged to a weekly high following an $8.68 million burn of 200,000 tokens, reducing supply by 2%. Simultaneously, Binance announced the launch of BANANA futures with 50x leverage on August 15, leading to a 129.79% increase in trading volume. Open interest also rose by 3.82%, reaching $8.54 million, indicating growing market interest and activity.

MANTRA and Novus Partner to Tokenize Aviation Assets

MANTRA and Novus Aviation Capital have teamed up to tokenize aviation assets, aiming to enhance market liquidity and accessibility. This partnership leverages MANTRA’s blockchain infrastructure to introduce fractional ownership, making high-value aviation assets more accessible to a broader investor base. The initiative targets innovation within the $200 billion aviation financing sector.

Bitfinex and Komainu Partner to Enhance Trading Security

Bitfinex and Komainu have partnered to enhance crypto trading security. The collaboration aims to offer institutional investors a secure environment using Ledger Tradelink technology for off-exchange trading and settlement. This move integrates Komainu's regulated custody services with Bitfinex’s advanced trading features, enhancing liquidity and security in the digital asset market.

Aavegotchi Studio Unveils Exclusive Ethereum Layer-3 Gaming Chain

Aavegotchi Studio has unveiled Geist, an exclusive Ethereum Layer-3 gaming chain dubbed "Members Only". Built with technology from Arbitrum, Base, and Alchemy, Geist aims to address pain points in crypto gaming while offering unique benefits to users. This initiative seeks to enhance the gaming experience through enhanced scalability and functionality on the Ethereum network.

ZynCoin Launches Physical Collectible Rewarding $ZYN Tokens

ZynCoin has launched "Comfy," a physical collectible designed as an aluminum tin for storing Zyn nicotine pouches. This product aims to appeal beyond crypto enthusiasts by offering rewards in $ZYN tokens. Proceeds from sales will fund token buybacks, potentially enhancing $ZYN's value. Comfy represents ZynCoin's strategy to broaden its community and engagement through innovative collectibles.

B3.fun Launches Game Discovery Platform on Base Mainnet

B3.fun, founded by ex-Coinbase team members, has launched its game discovery platform, BSMNT.fun, on the mainnet. The platform, built on Base, Coinbase’s Layer 2 network, supports Ethereum-based games and plans to integrate others like Solana. With over 367,000 testnet wallets and 47 million transactions, it aims to bridge Web2 and Web3 gaming, focusing on Asian markets like South Korea and Japan.

OKX Integrates Solana's Blinks Technology Into Wallet

OKX integrates Solana's Blinks technology into Ethereum-compatible chains via its wallet, enabling URL-deployed smart contracts across web platforms. Blinks, developed by Solana, allow for on-chain transactions directly from URLs, enhancing user interaction with blockchain applications. OKX aims to support applications across both Solana and EVM ecosystems, leveraging its multi-chain wallet integration.

Vitalik Buterin Donates $500K in Memecoins to Charity

Vitalik Buterin donated over $500,000 worth of animal-themed memecoins to an animal welfare charity. He converted 200 ETH from these coins and shared the donation receipt, urging the community to send similar token funds directly to charities. This action follows Buterin's criticism of celebrity memecoins, emphasizing the need for crypto to serve public good. The donation sparked discussion about the impact of celebrity involvement in crypto projects.

PAAL AI Faces Significant Price Decline Amid Whale Sell-Off

PAAL AI, the Telegram-based cryptocurrency, faced a significant setback as its price plunged 10% at one point in the past 24 hours, marking a 77.50% decline from its peak in March. The sell-off, driven by crypto whales, has hampered network growth and raised bearish signals, potentially pushing PAAL's price further down to $0.14 unless accumulation increases.

Aave's Token Surges as Active Borrowers Hit Record High

Aave's token surged 9% to $110 as its weekly active borrowers hit a record high, reaching approximately 40,000 users. This spike reflects renewed market confidence, with Aave's native cryptocurrency rebounding strongly from recent lows, up over 65% year-to-date. The platform's positive futures funding rate signals growing optimism among traders, despite increased market volatility and higher liquidation volumes this month.

EigenLayer Leads Restaking Market with $12.9 Billion TVL

EigenLayer leads the restaking market with a TVL of $12.9 billion, up 11% in a week, mainly in Wrapped Ether (WETH). The protocol is expanding crypto-economic security by introducing Permissionless Token Support, allowing any ERC20 token to be restaked. This update enhances network security flexibility and is set for mainnet deployment soon.

Donald Trump Jr. Launches "The Defiant Ones" Telegram Channel

Donald Trump Jr. has announced the launch of "The Defiant Ones" Telegram channel, teasing their upcoming crypto project amidst speculation. Contrary to rumors, the project is not a memecoin but focuses on digital real estate within decentralized finance (DeFi). The announcement aligns with recent trademark filings indicating broader financial services involvement.

Chaos Labs Raises $55 Million for DeFi Risk Management Tools

Chaos Labs, founded in 2021, raised $55 million in Series A funding led by Haun Ventures. The New York-based startup specializes in on-chain risk management tools for decentralized finance (DeFi), catering to protocols like Aave and Solana. With plans to enhance its platform, Chaos Labs aims to automate risk assessment in a volatile DeFi landscape.

Base Integrates Chainlink's Data Streams and VRF Products

Base, the Layer 2 network from Coinbase, has integrated Chainlink's Data Streams and VRF products, completing its suite of offerings. Data Streams enable DeFi protocols to access low-latency market data, enhancing user experiences. VRF provides secure random number generation for smart contracts. Base boasts significant adoption, hosting 3.47 million active addresses and handling 4.06 million transactions daily, with $6.22 billion in total value locked.

Ecuador's Central Bank Warns Against Worldcoin Adoption

Ecuador's Central Bank warned against Worldcoin (WLD) adoption, noting the $7 billion in crypto transactions over a year, and stressed that USD is the only legal currency. Concurrently, Worldcoin, struggling with user acquisition, partnered with Flojo for a $15 drink discount for iris scans, raising privacy concerns and facing global backlash.

-Merlin's Assets Plummet Amid Market Challenges

As of August 2024, Merlin, a blockchain previously promoted as a top Bitcoin Layer 2 solution, has seen its assets plummet by 63% since July, with its main exchange, MerlinSwap, suffering an 88% drop in total value locked. Merlin’s tokens, MERL and MP, have also lost 84% and 90% of their value, respectively. Total value locked decreased from $3.8 billion in June to $2.1 billion, representing a 44% decline. Despite these challenges, the broader DeFi sector remains robust, with TVL up 54% this year.

Binance Resumes Operations in India After $2.25M Settlement

Binance has resumed operations in India, fully compliant with local anti-money laundering laws after settling a $2.25 million penalty. The exchange registered as a reporting entity with India's FIU-IND, allowing it to offer its full range of services to Indian users through its website and app. This move underscores Binance's commitment to regulatory compliance and market expansion.

WazirX Announces Maintenance After $230M Hack

WazirX, the Indian crypto exchange recently hacked for over $230 million, has announced scheduled maintenance to restore user account balances and address issues stemming from the breach. This follows accusations from users about potential fraud and concerns over the exchange's operations. The maintenance period aims to mitigate financial impacts and enhance security measures amidst ongoing scrutiny and user discontent.

ZKasino Accused of Exit Scam by Users

Users allege that ZKasino has not returned ETH deposited months ago, despite promises through a signup app. The project, accused of an exit scam, pledged refunds via a new app but instead transferred ZKAS tokens without returning funds. Efforts to contact the team for comment remain unanswered.

Investor Nets $30M in Solana Pump-and-Dump Scam

Reports emerged of Sahil Arora, a Dubai-based investor, netting $30 million through a pump-and-dump scam using Solana’s Pump.fun platform. Arora launched celebrity tokens, exploiting their audience for liquidity. Despite Pump.fun generating $5.3 million in daily fees, only 0.002% of tokens reached $1 million market cap. Arora's alleged fraudulent activities span across various celebrities.

Malaysian Nationals Charged in Cryptocurrency Kidnapping Case

Six Malaysian nationals, including a married couple, face charges for kidnapping a Chinese citizen and demanding a ransom of 1 million USDT. The abduction occurred near Kuala Lumpur, and all suspects have pleaded not guilty. Malaysian authorities are also pursuing additional suspects linked to a broader criminal syndicate involved in cryptocurrency-related crimes, highlighting ongoing concerns about such activities in the region.

Australian Man Sentenced for Spending $6.9M Mistakenly Sent by Crypto.com

A 39-year-old cryptocurrency enthusiast in Australia, Jatinder Singh, has been sentenced to three years in prison for spending most of $6.9 million mistakenly sent by Crypto.com. The funds were intended as a $65 refund but were mistakenly typed as $6.91 million. Singh spent $4 million on property and luxury items, while his partner transferred $2.64 million. Both were apprehended after seven months, with Singh receiving a reduced sentence due to pre-trial detention.