Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 21, 2024

Crypto Market Update

Table of Contents

Market Updates

• Bitcoin's Price Stays at $60K Amid Market Volatility
• Ethereum Whale Sells 15K ETH for $132M Profit
• BlackRock's ETH ETF Surpasses $1B in Inflows
• Brazil Approves Second Solana ETF Amid US Regulatory Delays
• ONDO Finance Faces Bearish Trends Amid US Rate Cuts

Regulatory and Legal Developments

• Prometheum Expands Custodial Offerings with UNI and ARB
• Binance Faces Lawsuit for Alleged Role in Crypto Laundering
• Terraform Labs Faces Bankruptcy After SEC Settlement

Country-Specific Developments

• Tether Partners with UAE Firms for AED-Pegged Stablecoin
• Malaysia Destroys $452K in Bitcoin Mining Rigs
• El Salvador Certifies 80K Employees in Bitcoin Management

Crypto Platforms and Exchanges

• Binance Adds DOGS to Launchpool, Delays Trading Launch
• SunPump Memecoin Generates $1.1M in 11 Days
• ZKsync Era Revenue Drops After Token Airdrop
• Blast Network Faces TVL Decline Amid Operational Issues

Blockchain and Technology Innovations

• Conflux and China Mobile Launch Blockchain Video Ringtones
• Starknet to Deploy v0.13.2 Update with Parallel Transactions
• Nym Technologies Launches NymVPN Open Beta for Privacy
• MakerDAO's Chronicle Launches RWA Oracle with M^0
• Aptos Partners with Myco for Decentralized Streaming
• ENS Labs Partners with Dentity for On-Chain Credentials
• Aethir Partners with Return Entertainment for Smart TV Gaming
• Xai Partners with Gauntlet for Decentralized Governance

Product Launches and Updates

• SafePal Launches SFPlus Staking Dapp with Flexibility
• YieldNest Introduces ynLSDe for Liquid Restaking on EigenLayer

Security Incidents

• "jaredfromsubway.eth" MEV Bot Resurfaces with Enhanced Attacks
• Crypto Whale Loses $55M in DAI Due to Phishing Attack
• McDonald's Instagram Hacked to Promote Solana Token

Stablecoins and DeFi

• USDD Removes 12K BTC from Collateral Without DAO Approval

Investment and Funding

• A16z Leads $80M Funding Round for Story Protocol

NFT and Gaming Innovations

• Stepn Go Partners with G-Shock for NFT Sneakers
• NFT Market Value Drops 97% Since 2022 Peak

Bitcoin's Price Falls Below $60K Amid Market Volatility

Bitcoin's price fell below $60,000 before coming back to this level, despite increased selling pressure as reflected in rising exchange reserves and net deposits. It still traded flat as U.S. jobs data revealed 818,000 fewer jobs added than previously estimated, signaling economic fragility, and Mt. Gox transferred approximately $75 million worth of bitcoin to Bitstamp following another significant transfer of $700 million to an unknown wallet. 

Concurrently, Bitcoin's market dominance surged to 56%, fueled by long-term holders securing daily profits of $138 million, maintaining stable prices amid volatility. Short-term holders, facing unrealized losses, triggered a 15% plunge in early August due to market overreaction. Bitcoin's over-the-counter (OTC) desk balances surged by 60,000 BTC in the past month, totaling 370,000 BTC currently held. This increase suggests significant offloading by large holders, potentially signaling market volatility ahead.

Ethereum Whale Sells 15K ETH for $132M Profit

Ethereum's market dominance has decreased by 1.5% since November 2022, while Bitcoin's has risen from 38% to 56% of the total crypto market. A "diamond hand" Ethereum whale sold 15,000 ETH, profiting $132 million after holding 96,639 ETH since September 2022. Meanwhile, Ethereum co-founder Vitalik Buterin proposed the "Plurality" philosophy to address blockchain governance issues, emphasizing decentralization and collaboration. This aligns with ongoing efforts like Cardano’s Chang Hard Fork aimed at enhancing governance and scalability. The ETH price was facing resistance at $2,700, and could potentially fall below $2,500.

BlackRock's ETH ETF Surpasses $1B in Inflows

BlackRock’s iShares Ethereum Trust (ETHA) became the first Ethereum ETF to surpass $1 billion in net inflows, while Grayscale’s ETHE struggled with $37 million in outflows, contributing to a total $440.5 million net outflow across all Ethereum ETFs. Meanwhile, spot Bitcoin ETFs saw positive inflows for eight out of the last ten days, with BlackRock's IBIT leading with a $55.4 million inflow, bringing its total to $20.5 billion since January.

Brazil Approves Second Solana ETF Amid US Regulatory Delays

Brazil continues to lead in crypto innovation with the approval of its second Solana ETF, managed by Hashdex. This move solidifies Brazil's position as a pro-crypto market. However, Solana (SOL) struggles amid uncertainties in the U.S. ETF market, where regulatory delays hamper approval. Despite these challenges, Brazil's proactive stance boosts Solana's global profile.

ONDO Finance Faces Bearish Trends Amid US Rate Cuts

Kaiko Research warns that ONDO Finance faces bearish trends due to waning hype around real-world asset projects and anticipated Fed interest rate cuts in September. The project's ONDO token surged earlier on BUIDL collaboration with BlackRock but has since declined, trading at $0.67. Investment inflows may further dwindle amid changing US rate policies.

Prometheum Expands Custodial Offerings with UNI and ARB

Prometheum, an SEC-registered crypto platform, has expanded its custodial offerings by including Uniswap (UNI) and Arbitrum (ARB) as digital asset securities, expanding its custody beyond Ethereum's ETH. This move aligns with SEC guidelines, despite industry debates. Prometheum aims to start custodial services in September, emphasizing compliance with U.S. securities laws for digital assets. While the firm asserts transparency and cost savings, its approach contrasts with peers. Notably, SEC Chair Gary Gensler views Prometheum as a model for compliant crypto operations.

Binance Faces Lawsuit for Alleged Role in Crypto Laundering

Binance and its former CEO, Changpeng Zhao (CZ), are facing a new class-action lawsuit alleging they facilitated the laundering of stolen cryptocurrency. Filed in Seattle, the lawsuit claims Binance failed to prevent money laundering when stolen funds were sent to the exchange to obscure their origins. Plaintiffs argue that Binance's involvement undermines the transparency of blockchain transactions, potentially impacting the efficacy of blockchain analytics. This legal action underscores ongoing regulatory challenges within the cryptocurrency industry regarding security and transparency.

Terraform Labs Faces Bankruptcy After SEC Settlement

Terraform Labs faces a crucial bankruptcy hearing on September 19, 2024, after a $4.5 billion SEC settlement, potentially leading to liquidation. On August 21, 2024, Roman Ziemian, co-founder of FutureNet, was arrested in Montenegro for a $21 million crypto scam. Both Terraform Labs and FutureNet are entangled in legal battles, facing severe penalties and possible life sentences for their leaders.

Tether Partners with UAE Firms for AED-Pegged Stablecoin

Tether has announced a partnership with UAE-based firms Phoenix Group PLC and Green Acorn Investments Ltd. to launch a stablecoin pegged to the United Arab Emirates dirham (AED). This move aims to facilitate seamless cross-border transactions and capitalize on the UAE's growing crypto sector. The stablecoin will be fully backed by liquid reserves in the UAE.

Malaysia Destroys $452K in Bitcoin Mining Rigs

Malaysian authorities destroyed 985 bitcoin mining rigs valued at $452,500, using a steamroller as a public display of their crackdown on power theft linked to crypto mining. This action follows recent arrests of seven individuals for similar offenses, amidst concerns over substantial energy losses estimated at $777 million due to crypto mining activities from 2018 to 2023.

El Salvador Certifies 80K Employees in Bitcoin Management

El Salvador's National Bitcoin Office has launched a program to certify 80,000 government employees in Bitcoin management and public policy. The initiative aims to enhance strategic understanding and governance skills related to Bitcoin's role as legal tender. The comprehensive training, conducted virtually over 160 hours, includes modules covering various concepts and laws pertinent to Bitcoin adoption. 

Binance Adds DOGS to Launchpool, Delays Trading Launch

Binance has added DOGS to its Launchpool, marking its 57th addition. DOGS will commence trading on August 26, with 94% of tokens in circulation. The token received 8 million airdrop requests, prompting a trading launch delay to accommodate demand. Staking rewards favor BNB holders with 85% of the pool. FDUSD stakers receive 15%.

SunPump Memecoin Generates $1.1M in 11 Days

SunPump, a Tron-based memecoin deployer, generated $1.1 million in revenue within 11 days of its launch, creating over 18,000 tokens. It happens as Tron's daily revenue has surged to $3.84 million, surpassing Ethereum and Solana, driven by SunPump. Meanwhile, DEXScreener, a chart and data aggregator, earned $5.4 million over 30 days, averaging up to $250,000 per day. It ranks among the top 15 revenue generators in DeFi, ahead of platforms like Aave. 

ZKsync Era Revenue Drops After Token Airdrop

ZKsync Era's daily revenue dropped drastically to $6,800 following its token airdrop, down from $746,000 previously. The ZK token, part of this ecosystem, has seen a 64.06% decline year-to-date, mirroring similar struggles among Layer 2 projects. Meanwhile, Aave has launched Aave V3 on the Era mainnet, utilizing ZKsync technology to enhance scalability and security in DeFi. Partnering with Chainlink for price feeds, this move aims to foster privacy-focused applications and attract institutional users. The deployment supports assets like USDC and USDT, with plans for liquidity mining and governance incentives through the ZKsync ecosystem.

Blast Network Faces TVL Decline Amid Operational Issues

Blast Network, an Ethereum layer-2 scaling solution, is facing significant challenges with a sharp decline in Total Value Locked (TVL) and daily active users. Recently, its TVL dropped by 62%, accompanied by a loss of $300 million in liquidity. Daily active users fell to 27,800, contrasting sharply with competitors like Base and Arbitrum. Issues include a problematic airdrop, community dissatisfaction, and operational flaws like extended fund withdrawal times. Prominent projects like Pacmoon are exploring alternatives due to Blast's perceived lack of community support and development issues.

Conflux and China Mobile Launch Blockchain Video Ringtones

Conflux (CFX) has teamed up with China Mobile's Migu to launch blockchain-based video ringtones, marking a significant move in digital art collectibles. This collaboration aims to introduce innovative products like blockchain-based video ringback tones and digital identities to China Mobile's vast user base. The first release, 'MIGO and His Friend ConFi', is set to debut soon, leveraging Conflux's TreeGraph blockchain technology. 

Starknet to Deploy v0.13.2 Update with Parallel Transactions

Starknet is set to deploy its v0.13.2 update on mainnet in a week, following a successful testnet launch. This update introduces parallel transaction processing, allowing simultaneous handling of multiple transactions for improved network efficiency. Despite a slight token price drop, Starknet anticipates significant community growth with upcoming staking mechanisms aimed at enhancing decentralization and security.

Nym Technologies Launches NymVPN Open Beta for Privacy

Nym Technologies has launched the NymVPN open beta, introducing advanced privacy features like anonymous zk-nym registration. This decentralized VPN aims to enhance online anonymity by utilizing zero-knowledge credentials and noise-generating networks. It offers multi-hop architecture to prevent tracking and man-in-the-middle attacks, setting a new standard in privacy protection for online activities.

MakerDAO's Chronicle Launches RWA Oracle with M^0

MakerDAO securer Chronicle is launching its real-world asset (RWA) oracle in collaboration with M^0, an Ethereum-based stablecoin minting protocol. This integration aims to enhance transparency by verifying off-chain collateral balances, crucial for minting the M stablecoin. Chronicle's role as an independent validator strengthens M^0’s security measures, supporting its scalability ambitions to manage billions in assets.

Aptos Partners with Myco for Decentralized Streaming

The Aptos Foundation has partnered with Myco, a Web3 streaming platform, aiming to decentralize streaming services. This collaboration includes integrating Myco's platform with the Aptos blockchain and launching a native token in Q4 2024. Myco plans to transition its infrastructure fully to Aptos, supporting decentralized streaming and enhancing Web3 capabilities. 

ENS Labs Partners with Dentity for On-Chain Credentials

ENS Labs has partnered with Dentity to enhance real-world credentials using blockchain technology. The collaboration aims to integrate verifiable credentials on-chain, bridging the gap between offline and online identities. This initiative seeks to provide secure, transparent, and easily verifiable identity solutions within the Web3 ecosystem.

Aethir Partners with Return Entertainment for Smart TV Gaming

Aethir partners with Return Entertainment for smart TV gaming, using decentralized GPU infrastructure to enhance streaming-based experiences. The collaboration aims to tap into the vast market of nearly one billion smart TVs globally, integrating cloud gaming to make high-quality games accessible with basic internet. Aethir boasts the largest fleet of Nvidia H100 Tensor Core GPUs in web3.

Xai Partners with Gauntlet for Decentralized Governance

Xai, a leading Layer 3 network in gaming, partners with Gauntlet to develop decentralized governance and treasury strategies. Gauntlet will implement stake-weighted governance for Xai DAO, manage liquidity, and deploy pricing strategies for ETH staking and stablecoins. This collaboration aims to enhance community initiatives and support growth in the web3 gaming ecosystem.

SafePal Launches SFPlus Staking Dapp with Flexibility

SafePal has launched SFPlus, a new staking dapp and hub enabling users to stake its native token SFP. This non-custodial wallet feature allows staking without lockup periods, providing users flexibility to stake or unstake SFP at any time. Stakers earn loyalty bonuses and participate in reward pools. SFPlus integrates with SafePal's ecosystem, offering real-world benefits like account tier upgrades for CeDeFi banking. It also supports tokens from platforms like TON, aiming to enhance utility and safety in Web3 interactions. 

YieldNest Introduces ynLSDe for Liquid Restaking on EigenLayer

YieldNest introduces ynLSDe, a new liquid restaking token on EigenLayer, aiming to boost yields from platforms like Lido, FRAX, Origin Protocol, and Mantle. This innovative token allows users to earn additional rewards by staking assets in YieldNest’s pool, enhancing liquidity and tradability in the decentralized finance (DeFi) ecosystem.

"jaredfromsubway.eth" MEV Bot Resurfaces with Enhanced Attacks

The notorious "jaredfromsubway.eth" MEV bot has resurfaced with enhanced capabilities to conduct more sophisticated attacks on crypto protocols. Previously known for executing profitable arbitrage and "sandwich" attacks in early 2023, the bot has been upgraded to execute multi-layered sandwich attacks on DeFi platforms. These attacks involve scheduling transactions before and after a victim's transaction to manipulate prices, thus generating profits at the expense of other users. The upgraded bot is using advanced techniques like liquidity manipulation in Uniswap V3 pools, making its strategies harder to detect and analyze.

Crypto Whale Loses $55M in DAI Due to Phishing Attack

A crypto whale has lost $55.47 million in DAI due to a sophisticated phishing attack. The incident, analyzed by blockchain analytics firm Lookonchain and cybersecurity firm CertiK, involved the unauthorized transfer of a Maker vault's ownership. The attack utilized a phishing technique known as Inferno Drainer, exploiting smart contract vulnerabilities to redirect assets to the attacker's address. This event underscores ongoing security challenges in the crypto sector, despite efforts to enhance protections against such exploits.

McDonald's Instagram Hacked to Promote Solana Token

McDonald's Instagram account was reportedly hacked to promote the Solana-based token 'Grimace'. The promotional stunt briefly inflated Grimace's market cap to $20 million before it sharply plummeted below $1 million. This incident highlights vulnerabilities in social media security and the risks associated with speculative crypto investments promoted through unconventional channels.

USDD Removes 12K BTC from Collateral Without DAO Approval

USDD, an algorithmic stablecoin on Tron, reportedly removed 12,000 BTC from its collateral without DAO approval, despite claims of DAO governance. Justin Sun promoted USDD as a Terra alternative integrated with TRON but abandoned it after Terra-Luna's failure. The DAO has only conducted one vote in its history, raising transparency concerns.

A16z Leads $80M Funding Round for Story Protocol

A16z led an $80M funding round for Story Protocol, raising its valuation above $2B. BSX Exchange secured $6.2M to expand its DeFi derivatives platform, planning a token launch by year-end. Soulbound, a web3 gaming platform, raised $4M to enhance social gaming and partnerships. Story Protocol aims to tokenize intellectual property, addressing AI-related IP theft. BSX achieved over $4B in trading volume, while Soulbound focuses on social interactions in gaming.