Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 27, 2024

Crypto Market Update

Table of Contents

Bitcoin and Major Altcoins

• Bitcoin Faces 2.5% Decline, Analysts Predict Further Drop

ETF and Futures Market

• Spot Bitcoin ETFs See Positive Inflows Amid Ethereum Decline
• CME Group to Launch Bitcoin Friday Futures

Tokens and Community Developments

• Toncoin and Notcoin Plunge After Telegram CEO's Arrest
• MakerDAO Rebrands to Sky, Launches USDS Stablecoin
• Aave Labs Proposes GHO Stability Module Enhancement

Hedge Funds and Institutional Investments

• Hilbert Group to Launch $200M Bitcoin Hedge Fund

Bankruptcy and Legal Issues

• Celsius Repays $2.53B to Creditors Amid Bankruptcy
• SEC Charges Abra for Offering Unregistered Securities
• SEC Charges Brothers in $60M Crypto Ponzi Scheme

Crypto Exchanges and Platforms

• Binance Faces Backlash Over Alleged Palestinian Fund Freeze
• Coinbase's Base Network Surpasses 1 Million Daily Addresses

DeFi and Lending Markets

• Centrifuge Launches Lending Market with Coinbase's Base
• Polyhedra Integrates Flare with zkBridge for Cross-Chain DeFi

Scaling Solutions and Integrations

• Polygon's Miden Solution Integrates QED Protocol's WebGPU API

On-Chain Investments and Yield

• Ondo Finance Launches USDY on Arbitrum with 5.35% APY

Venture Capital and Fundraising

• Space and Time Labs Raises $20M in Series A Round
• Solana Optimistic Network Concludes Funding Round
• Solayer Labs Secures $80M Valuation in Seed Round

Blockchain and AI Innovations

• KOR Protocol Launches AI-Enabled Music Streaming Service

NFTs and Digital Collectibles

• Donald Trump Releases Fourth NFT Collection

Bitcoin Faces 2.5% Decline, Analysts Predict Further Drop

Bitcoin fell to $62,000 today, as consolidation continued, leading to a 2.5% decline within 24 hours. Ethereum and major altcoins, including AVAX, LINK, and UNI, also experienced losses. Analysts are wary of further declines, with some predicting a possible drop below $60,000, potentially triggering a liquidation cascade towards $50,000. Despite the downturn, some traders remain optimistic about a parabolic rally based on historical patterns. Bitcoin's performance in September is expected to remain weak, as highlighted by recent market trends and selling pressure on Binance.

Spot Bitcoin ETFs See Positive Inflows Amid Ethereum Decline

On August 28, 2023, Spot Bitcoin ETFs in the U.S. recorded an eighth day of positive inflows, with BlackRock’s IBIT leading at $224.1 million. Meanwhile, Spot Ethereum ETFs saw a 55% drop in trading volume, with $13 million outflows and price consolidation around $2,586 after a 4.41% decline.

CME Group to Launch Bitcoin Friday Futures

Chicago Mercantile Exchange (CME) Group is set to launch Bitcoin Friday futures (BFF) on September 30, sized at one-fiftieth of a Bitcoin, offering small-sized contracts to cater to retail investors' interest in cryptocurrency futures. These smaller contracts will be cash-settled every Friday and are aimed at providing investors with a cost-efficient way to gain exposure to Bitcoin. 

Toncoin and Notcoin Plunge After Telegram CEO's Arrest

Toncoin (TON) and Notcoin (NOT) plunged by over 20% since Telegram CEO Pavel Durov’s arrest, while a major liquidity provider reportedly sold off 350,000 TON, exacerbating the price drop. French authorities charged Durov with complicity in various cybercrimes, including drug trafficking and child pornography. In response, hacker groups launched DDoS attacks on French websites, and the TON community adopted the “Resistance Dog” memecoin avatar, causing its price to surge 140%. A petition for Durov’s release garnered over 300,000 signatures, while India scrutinized Telegram's operations.

MakerDAO Rebrands to Sky, Launches USDS Stablecoin

MakerDAO, a leading DeFi protocol, rebranded to Sky ahead of launching USDS stablecoin on September 18. USDS will succeed DAI and SKY will replace MKR, but both existing tokens will remain in circulation. Users have the option to convert their cryptocurrencies, with MKR tokens exchangeable for 24,000 SKY tokens and DAI tokens for one USDS. Endgame overhaul aims to enhance accessibility. 

Aave Labs Proposes GHO Stability Module Enhancement

Aave Labs proposes enhancing GHO Stability Module by integrating BlackRock’s BUIDL. The update aims to optimize capital efficiency by leveraging surplus USDC to mint BUIDL tokens, providing on-chain access to traditional financial assets. It enables 1:1 USDC swaps, monthly dividends, and may expand yield sources into real-world assets with technical modifications. 

Hilbert Group to Launch $200M Bitcoin Hedge Fund

Hilbert Group partners with Xapo Bank to launch a $200 million Bitcoin hedge fund, set to launch in September 2024. The fund aims to allow corporates, businesses, and professional investors to generate returns in Bitcoin through institutional-grade structured credit arrangements. It will offer lower fees than Hilbert's standard hedge funds and is expected to grow significantly in the next year. 

Celsius Repays $2.53B to Creditors Amid Bankruptcy

Celsius has distributed $2.53 billion to 251,000 creditors in bankruptcy proceedings, repaying two-thirds of eligible customers. However, 121,000 creditors are yet to claim their funds, with around 64,000 owed less than $100. The bankruptcy administrator is retrying distributions via Coinbase, aiming to incentivize claims for smaller amounts.

SEC Charges Abra for Offering Unregistered Securities

The U.S. SEC has charged crypto lending platform Abra for offering unregistered securities through its lending product, Abra Earn. Launched in July 2020, the platform allowed investors to earn interest on deposited cryptocurrency. With approximately $600 million in assets, 40% from U.S. investors, Abra has agreed to settle without admitting wrongdoing, facing potential civil penalties.  

SEC Charges Brothers in $60M Crypto Ponzi Scheme

The SEC charged brothers for a $60 million crypto Ponzi scheme involving a fake trading bot. They duped 80+ investors with promises of high returns. The scheme lasted from January 2023 to June 2024, during which $53.9 million was misused for personal luxuries. The SEC seeks penalties and freezes assets to stop the fraud.  

Binance Faces Backlash Over Alleged Palestinian Fund Freeze

Binance faced backlash for allegedly freezing Palestinian crypto funds at Israel’s request, which Binance denied, claiming only accounts linked to illegal activities were affected. Concurrently, Binance urged U.S. intervention to secure the release of Tigran Gambaryan, a former U.S. federal agent detained in Nigeria, amid concerns over his health and unjust detention conditions.

Coinbase's Base Network Surpasses 1 Million Daily Addresses

Coinbase's Base layer-2 network achieved a significant milestone by surpassing 1 million daily active addresses. It outpaced competitors like Arbitrum and exhibited record-high transactions, processing over 4 million in 24 hours. With a growing market share of approximately 17%, the network accounts for 84% of daily active addresses on Uniswap, showcasing strong adoption. Additionally, the recent Basenames launch attracted 200,000 users within its first week, demonstrating a promising start.  

Centrifuge Launches Lending Market with Coinbase's Base

Centrifuge launches a lending market with Coinbase's Base and Morpho Vaults, using tokenized Treasury bills. The market offers instant liquidity for borrowing against assets like Centrifuge's Anemoy fund. It is the first permissioned lending market utilizing Coinbase Verifications on Ethereum, aiming to enhance token utility and accessibility in the institutional asset lending space.  

Polyhedra Integrates Flare with zkBridge for Cross-Chain DeFi

Polyhedra's integration of Flare with zkBridge strengthens cross-chain DeFi capabilities. Leveraging LayerZero, zkBridge ensures secure and efficient transactions on over 30 networks. Using zkSNARKs, it enhances security, reduces verification costs, and allows for seamless data transfers, enabling developers to create advanced financial applications within Flare's growing DeFi ecosystem.  

Polygon's Miden Solution Integrates QED Protocol's WebGPU API

Polygon's Miden scaling solution has integrated QED Protocol's WebGPU API, aiming to accelerate transaction proving on client devices by up to 10 times. This collaboration with QED aims to enhance scalability, reduce transaction fees variance, and expand the types of decentralized applications. Miden's upcoming launch will be a significant addition to Polygon's suite of scalability solutions.  

Ondo Finance Launches USDY on Arbitrum with 5.35% APY

Ondo Finance has launched USDY on Arbitrum, offering a 5.35% APY to non-US investors. USDY is integrated with Camelot and Dolomite and represents 17% of the Arbitrum DAO's treasury. Having quickly integrated USDY, Arbitrum has become a major DeFi platform with more than $15.5 billion locked in value. This launch marks an impactful step for Ondo in advancing RWA adoption on-chain and providing a compliant, high-yield product. 

Space and Time Labs Raises $20M in Series A Round

Space and Time Labs, a Microsoft-backed startup, raised $20 million in a Series A financing round led by Framework Ventures, Lightspeed Faction, Arrington Capital, and Hivemind Capital, bringing its total funding to $50 million. Meanwhile, Gameplay Galaxy secures $24M seed round with Blockchain Capital and Merit Circle's backing. Funds support Trial Xtreme development, featuring blockchain-based asset ownership. Web3 gaming sees a resurgence in VC interest, with $1.1B invested in Q2 2024. 

Solana Optimistic Network Concludes Funding Round

The Solana Optimistic Network (SOON) concluded a funding round for its layer-2 scaling solution on August 27. The "co-builder" round involved individual investments from key figures in the industry, aiming to fortify products like SOON Stack and SOON Mainnet.

Solayer Labs Secures $80M Valuation in Seed Round

Solayer Labs, the developer of the Solana restaking protocol, secured an $80 million valuation through a $12 million seed round led by Polychain Capital. The protocol allows users to earn additional rewards by restaking their assets in actively validated services (AVSs). Solayer, which claims to be the 13th largest protocol on Solana, plans to expand its team and integrate new protocols. Additionally, it intends to launch its native token in the future.  

KOR Protocol Launches AI-Enabled Music Streaming Service

KOR Protocol, supported by Animoca Brands, has launched KOR Player, a streaming service featuring an AI-enabled sound library for music remixing. The platform integrates AI to authenticate music and pay royalties in crypto. It aims to address music copyright issues and enable new distribution channels. The startup has garnered 550,000 users and has Japanese telecommunications giant KDDI as an early supporter.