Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 7, 2024

Crypto Market Update

Table of Contents

Market Movements and Investments

• Bitcoin Struggles to Reclaim Key Price Levels Amid Market Volatility
• Jump Trading Moves ETH Causing Significant Price Drop
• Bitcoin ETFs See Outflows While Ethereum ETFs Attract Inflows
• BlackRock Plans Options for Ethereum ETF in Partnership with Nasdaq

Banking and Regulatory Updates

• Mox Bank Launches Bitcoin ETFs in Hong Kong
• Wells Fargo to Offer Bitcoin ETFs to Select Clients

Key Figures and Companies

• Michael Saylor's Bitcoin Holdings Surpass $1 Billion
• Grayscale Launches Blockchain and AI Trusts
• Meltem Demirors Aims to Raise $75 Million Through New Funds

Country-Specific Developments

• IMF Acknowledges Progress in El Salvador's Bitcoin Strategy
• CoinDCX Launches Crypto Investors Protection Fund in India

Platform Updates and Innovations

• Uniswap Foundation Reports $36.81 Million in Assets
• Nexera Protocol Exploit Leads to Significant Token Loss
• SOL Rebounds and Hits All-Time High Against ETH
• Ethena Labs Integrates Solana into Ecosystem
• Arbitrum Integrates USDC for Orbit Chain Gas Fees
• WOO X Launches Prelaunch Perpetual Futures Market
• Synthetix Founder Unlocks Funds to Aid Former Treasurer

Security and Privacy

• Unizen Hacker Launders $2 Million via Tornado Cash
• MetaTrust Labs and ChainSwap Partner for Blockchain Security

Crypto Projects and Tokens

• Binance Labs Invests in Solana Restaking Protocol Solayer
• Nearly All Tokens on Binance Decline, Except Jupiter's JUP

Political and Social Influences

• Eric Trump Endorses Crypto, Hints at Major Announcement

Venture Capital and Funding

• Andrena Secures $18 Million to Develop Decentralized Wireless Network

Industry Reports and Trends

• AI DApps Surge in Market Share, Surpassing Gaming

Bitcoin Struggles to Reclaim Key Price Levels Amid Market Volatility

Facing a 3% loss to trade below $55,000, Bitcoin still aimed to reclaim $57,000 after a 14% drop in early August, influenced by macroeconomic factors. Cumberland invested $95 million into the market amid this downturn. Bitcoin traders showed cautious optimism with hopes of a $58,000 CME gap fill, despite the risk of death crosses and thin liquidity. Analysts predicted potential rebounds with the Fed possibly injecting $30 billion monthly into the economy. Bitcoin whales accumulated $22.8 billion BTC in July, and CryptoQuant’s on-chain data suggested continued buying by whales and some malicious actors. Bitcoin needs a $59,100 weekly close to maintain bullish momentum, although resistance remains.

Jump Trading Moves ETH Causing Significant Price Drop

On August 5, 2024, Jump Trading moved $116.7 million in ETH, causing a 20% price drop to under $2,100. Concurrently, the Plus Token Ponzi scheme reactivated, moving 789,533 ETH. By August 7, Jump Trading allegedly moved another $29 million in ETH, with plans to sell up to $80 million, potentially impacting ETH prices further. Currently, ETH is trading around $2,352, reflecting a 6.19% decrease in the last 24 hours.

Bitcoin ETFs See Outflows While Ethereum ETFs Attract Inflows

On August 6, Bitcoin ETFs in the US saw significant outflows totaling $148.5 million, with major funds like Fidelity and Grayscale experiencing substantial withdrawals. In contrast, Ethereum ETFs attracted $98.4 million in inflows, led by BlackRock's ETHA, signaling renewed investor interest despite recent market volatility. This shift underscores evolving sentiment toward cryptocurrencies among institutional investors.

BlackRock Plans Options for Ethereum ETF in Partnership with Nasdaq

BlackRock, in partnership with Nasdaq, plans to introduce options for its recently approved Ethereum ETF. Filed with the SEC, the proposal aims to amend regulations to facilitate options trading on the iShares Ethereum ETF Trust, subject to SEC, OCC, and CFTC approval by April 9, 2025. This move could provide investors with additional ways to hedge portfolios against Ethereum price movements.

Mox Bank Launches Bitcoin ETFs in Hong Kong

Standard Chartered's Mox Bank has introduced Bitcoin ETFs on its platform, becoming Hong Kong's first virtual bank to do so. The ETFs include Bitcoin and Ethereum, offering a competitive trading fee of 0.12% with no additional costs. This move aims to attract more retail investors in the region's growing crypto market.

Wells Fargo to Offer Bitcoin ETFs to Select Clients

Wells Fargo plans to enable its financial advisors to offer Bitcoin ETFs to select clients, following in the footsteps of Morgan Stanley. This move aims to meet increasing client demand for cryptocurrency investments. The decision comes after Morgan Stanley approved its brokers to recommend Bitcoin ETFs in brokerage accounts, aiming to broaden access to digital assets among institutional investors. Wells Fargo's strategy mirrors this approach to capitalize on the growing interest in Bitcoin ETFs among financial institutions.

Michael Saylor's Bitcoin Holdings Surpass $1 Billion

Michael Saylor's Bitcoin holdings have surpassed $1 billion, highlighting his steadfast commitment to the cryptocurrency despite recent market fluctuations. Saylor, chairman of MicroStrategy, confirmed his personal ownership in excess of $1 billion worth of Bitcoin, emphasizing its long-term value amid market uncertainties. His optimism extends to MicroStrategy's plan to invest an additional $2 billion in Bitcoin, reflecting confidence in Bitcoin's future as a reserve asset.

Grayscale Launches Blockchain and AI Trusts

Grayscale has expanded its investment offerings by introducing two new trusts focused on blockchain and AI innovations. The Grayscale Bittensor Trust will invest in Bittensor's TAO token, while the Grayscale Sui Trust will focus on Sui's SUI token. These additions aim to provide investors with exposure to cutting-edge technologies in decentralized AI and smart contract blockchains. The move follows Grayscale's recent launch of a decentralized AI-focused digital asset trust, further diversifying its portfolio, which now manages over $7 billion in crypto assets across 20 different trusts.

Meltem Demirors Aims to Raise $75 Million Through New Funds

Meltem Demirors, former CoinShares CSO, aims to raise $75 million through two new venture funds, Crucible Capital Fund I and Crucible Capital Fund 1-A. According to SEC filings, the funds seek $45 million and $30 million respectively, with Demirors leading as Managing Member. This move underscores growing interest in crypto-related venture funding amid market expansion.

IMF Acknowledges Progress in El Salvador's Bitcoin Strategy

The International Monetary Fund (IMF) acknowledged progress in El Salvador's Bitcoin strategy, noting that anticipated risks haven't materialized. Discussions have focused on enhancing transparency and governance to mitigate potential financial instability. El Salvador's initiatives include a Bitcoin-linked visa and mining projects, contributing to its growing Bitcoin reserves.

CoinDCX Launches Crypto Investors Protection Fund in India

CoinDCX has launched the Crypto Investors Protection Fund (CIPF) in India, allocating an initial 50 crore INR to enhance security in the local crypto market. This fund aims to compensate users in rare instances of security breaches or adverse events. CoinDCX plans to fund the CIPF annually with 2% of its brokerage income, with potential increases over time to ensure adequate user asset protection. The initiative includes robust security measures like multiparty computation (MPC) and advanced encryption to safeguard user data and assets.

Uniswap Foundation Reports $36.81 Million in Assets

As per its Q2 report, the Uniswap Foundation holds $36.81 million in cash and stablecoins, with 680,000 UNI tokens, and plans to allocate $26.12 million for grants and $10.69 million for operating expenses through 2025. In Q2 2024, it approved $3.2 million in new grants and disbursed $2.48 million, totaling $7.55 million committed and $5.27 million disbursed.

Nexera Protocol Exploit Leads to Significant Token Loss

The Nexera protocol recently fell victim to a $1.8 million exploit, leading to a 48% drop in NXRA token value. The attack, exploiting a proxy contract vulnerability on August 7, resulted in tokens being converted to Ether and transferred to Binance Smart Chain. Nexera is investigating, with concerns heightened by links to previous DeFi hacks.

SOL Rebounds and Hits All-Time High Against ETH

SOL rebounded 38% from recent lows, trading above $150 to hit an all-time high against ETH before giving up some of the gains. Solana-based memecoins saw significant gains with a 30% surge at one point in the past 24 hours, driven by optimism surrounding potential SOL ETFs. Leading the charge were tokens like POPCAT and WIF, up 25%, and smaller tokens like MUMU and CATDOG, up 30%. This contrasted with declines in major memecoins on other blockchains. Solana network volumes doubled to $3.3 billion, generating $750,000 in daily fees. The market's confidence in SOL's resilience and the anticipation of a forthcoming ETF underscored the ecosystem's robust performance amid broader market volatility. 

Ethena Labs Integrates Solana into Ecosystem

Ethena Labs integrates Solana into its ecosystem, adding SOL as collateral for its USDe stablecoin. The move aims to counter declining market capitalization, enhancing adoption with cross-chain interoperability via LayerZero. USDe holders on Solana can stake tokens for rewards, potentially boosting engagement amid competitive stablecoin rankings. Li.Fi, a DeFi protocol, expands to Solana to improve dApp interactions across blockchains. Integrating with Solana via Phantom wallet enhances asset management with in-app swapping and bridging options through Wormhole and Circle’s CCTP. 

Arbitrum Integrates USDC for Orbit Chain Gas Fees

Arbitrum has partnered with Circle to integrate USDC (USD Coin) for Orbit Chain gas fees. This collaboration allows Orbit Chains, part of Arbitrum's Ethereum layer-2 network, to use USDC as a custom gas token, enhancing transaction efficiency and user convenience. By leveraging USDC, a stablecoin, Orbit Chains aim to provide more predictable gas costs and simplify interactions within their ecosystem. This integration is expected to increase liquidity and accessibility for projects on Arbitrum, reducing barriers to entry and supporting further development of decentralized applications (DApps) on Orbit Chains.

WOO X Launches Prelaunch Perpetual Futures Market

WOO X launched a prelaunch perpetual futures market for upcoming tokens, allowing traders to speculate on prices before official launch. The platform vets projects based on due diligence and liquidity expectations. The first offering, ORDER token by Orderly Network, saw a 5% price decrease post-listing. WOO token prices rose 4.5%, outperforming the CoinDesk 20's 2.5% gain.

Synthetix Founder Unlocks Funds to Aid Former Treasurer

Synthetix founder Kain unlocked $6.5 million from an Illuvium vesting contract, reportedly sending $86,000 to the former treasurer, SynthaMan, who faced liquidation amid the recent crypto market downturn. On-chain data revealed additional donations totaling $112,000, assisting SynthaMan after losing all SNX holdings. Synthetix's TVL stands at $237 million, down significantly from previous highs.

Unizen Hacker Launders $2 Million via Tornado Cash

PeckShield reported the Unizen hacker laundered over $2 million via Tornado Cash, converting 865.4 ETH. Similarly, the Rain exchange hacker laundered 1,155 ETH ($2.9 million) through Tornado Cash. Both incidents highlight ongoing cybersecurity challenges in the crypto sector and the effectiveness of Tornado Cash in obscuring fund origins.

MetaTrust Labs and ChainSwap Partner for Blockchain Security

MetaTrust Labs and ChainSwap have partnered in a $1 million deal aimed at advancing cross-chain financial privacy and blockchain security. This strategic collaboration will focus on developing cutting-edge tools to enhance the safety and efficiency of cross-chain transactions, leveraging advanced AI technologies and security protocols to ensure robust Web3 infrastructure.

Binance Labs Invests in Solana Restaking Protocol Solayer

Binance Labs has invested in Solayer, a Solana restaking protocol that has quickly become the 13th largest on Solana, with over $150 million in total value locked (TVL). Solayer allows users to restake their assets for additional rewards, leveraging its sSOL-raw and sSOL tokens. The investment aims to fuel Solayer's growth, scaling its team and expanding its ecosystem integration.

Nearly All Tokens on Binance Decline, Except Jupiter's JUP

According to Coin98 Analytics, in 2024, nearly all tokens listed by Binance are in decline except for Jupiter's JUP, which has surged 21.2%. The downturn underscores issues with the airdrop distribution model, increasingly popular but often criticized for opaque allocation methods. Most tokens, like Aevo's AEVO down over 90% since listing, reflect investor skepticism and market volatility. Despite these challenges, Jupiter's success on Solana, with significant TVL and a record airdrop, contrasts sharply with broader market struggles. This trend raises questions about the sustainability of current token distribution strategies.

Eric Trump Endorses Crypto, Hints at Major Announcement

Eric Trump endorsed crypto on X, hinting at a major announcement soon, while Kamala Harris’ election odds rose to 47%, posing a threat to Trump's pro-crypto plans. Harris’ anti-crypto VP pick, Tim Walz, raises concerns about her crypto stance. The pro-crypto super PAC, Fairshake, plans to spend $25 million supporting 18 pro-crypto House candidates, split evenly between Republicans and Democrats. The PAC has raised $203 million for the 2024 elections, showing significant political investment in crypto.

Andrena Secures $18 Million to Develop Decentralized Wireless Network

Andrena has secured $18 million in an extended Series A round led by Dragonfly, with participation from CMT Digital, Castle Island Ventures, Wintermute Ventures, 6th Man Ventures, and ParaFi. The funding will accelerate development of its Solana-based DAWN, aiming to create a decentralized autonomous wireless network enabling users to sell internet access.