Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 11, 2024

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Crypto Market Update

Table of Contents

Market Updates

• Bitcoin Surges, Retraces Amid Market Movements
• Ethereum Peaks, Trades Lower Post-CPI Data

Regulatory and Legal Updates

• SEC Ends Paxos Investigation Without Action
• CFTC Chair Confirms Bitcoin, Ethereum as Commodities
• BitMEX Anticipates No Further AML Fines

ETF and Investment News

• Solana ETFs Face Critical Approval Deadline

Corporate Developments

• Terraform Labs to Sell Subsidiaries Post-Bankruptcy
• Binance to Reduce Stake in Gopax Amid Regulatory Issues
• Lyra Finance Launches Leveraged ETH Exposure Vault

Market Behavior and Trends

• Shiba Inu Whales Withdraw Trillions of Tokens
• Argentina's ARG Token Soars After Copa America Success
• Upbit and Bithumb List New Altcoins
• EigenLayer Faces Sybil Attack Threats
• Coinbase Ventures Boosts Stake in Aerodrome Finance

Events and Conferences

• Trump's Bitcoin Conference Appearance Signals Crypto Shift

Security and Fraud

• Compound and Celer Networks Hit by Front-End Attacks
• Inferno Drainer’s Stolen ETH Blocked by Railgun

Company Fundraising and Expansion

• Tanzanian Fintech Nala Secures $40 Million Funding
• Hamster Kombat Plans Second Airdrop

NFT and Blockchain Updates

• Mocaverse Leads NFT Sales with MOCA Token Airdrop

Bitcoin Surges, Retraces Amid Market Movements

Bitcoin briefly surged to $59,516 following positive U.S. CPI data but quickly retraced. Germany transferred over 15,000 BTC to exchanges, reducing its holdings to 7,925 BTC ($454.2M) at the time of writing, sparking criticism. Speculators held 2.8M BTC at a loss during a recent four-month low of $53,500. 

Bitcoin long-term holders remained resilient despite the price drawdown, showing minimal selling at a loss. Capriole Investments founder Charles Edwards predicted a potential BTC price drop due to miner pessimism, with a bottom possibly weeks away. Meanwhile, traditional investors are buying the dip via spot Bitcoin ETFs, signaling confidence in future gains.

Ethereum Peaks, Trades Lower Post-CPI Data

Ethereum's price peaked at $3,196 following the CPI release but currently trades at $3,117. Earlier today, global fintech firm Elwood deposited 26,811 ETH worth $83.17 million on Binance and withdrew 24,463 ETH worth $75.88 million. Spot ETH ETFs might launch soon, as per Bloomberg analysts, and Polymarket users bet on a 90% chance of Ether ETF approval by July 26. 

Justin Sun acquired another 1,614 ETH for $5 million at $3,097 per token, totaling 362,751 ETH since February 8, 2024. Ethereum ETFs could attract up to $10 billion in inflows, potentially driving ETH to new highs by early Q4, according to MV Global’s managing partner.

SEC Ends Paxos Investigation Without Action

The SEC has closed its investigation into Paxos regarding the BUSD stablecoin, opting not to pursue enforcement action. This decision, influenced by a recent court ruling favoring Binance, dismisses claims that BUSD qualifies as an unregistered security. Paxos views this resolution as pivotal for market certainty in the stablecoin sector.

CFTC Chair Confirms Bitcoin, Ethereum as Commodities

In testimony before the US Senate, CFTC Chair Rostin Behnam reaffirmed Bitcoin and Ethereum as commodities, emphasizing the need for enhanced regulatory oversight to protect investors. He cited a recent Illinois court ruling and highlighted gaps in current regulations for digital assets, proposing legislative measures to ensure robust market supervision and investor safety.

BitMEX Anticipates No Further AML Fines

BitMEX expects no further fines for its past AML violation in the US, regarding the DOJ's BSA charge as resolved with founders already paying substantial penalties in 2022. They seek an expedited sentencing hearing, asserting compliance improvements since. The exchange continues operations unaffected by this issue.

Solana ETFs Face Critical Approval Deadline

Bloomberg analyst Eric Balchunas predicts that Solana ETFs face a critical approval deadline by mid-March 2025, with the outcome heavily influenced by the U.S. presidential election in November. If President Biden wins, approval prospects are uncertain, contrasting with former President Trump potentially favoring their approval, citing his pro-crypto stance.

Terraform Labs to Sell Subsidiaries Post-Bankruptcy

Terraform Labs, facing bankruptcy, plans to sell four subsidiaries to comply with a $4.5 billion SEC settlement. The companies for sale include Pulsar Finance, Station, Enterprise, and Warp, aiming to maximize value for creditors. This move follows legal troubles and a drastic decline in its token value since its peak in 2022.

Binance to Reduce Stake in Gopax Amid Regulatory Issues

Binance is nearing completion of a deal to sell the majority of its stake in Gopax, reducing its ownership from 72.6% to possibly as low as 10%. The move aims to address governance concerns raised by South Korean regulators, following previous challenges in acquiring the exchange due to regulatory hurdles.

Lyra Finance Launches Leveraged ETH Exposure Vault

Lyra Finance has launched the sUSDeBULL vault, offering leveraged exposure to ETH through a partnership with Ethena. Depositors can earn 2.5x yields on sUSDe when ETH prices rise, using an automated options strategy. Lyra's total-value locked has grown significantly this year, spurred by innovations like liquid restaking token deposits.

Shiba Inu Whales Withdraw Trillions of Tokens

Shiba Inu (SHIB) whales have withdrawn a staggering 6.57 trillion tokens from exchanges over the past month, contrasting with a reduction of 5.53 trillion tokens by top exchange wallets. This significant shift signals growing confidence among large non-exchange holders, potentially setting the stage for positive price movements amid improved market sentiment.

Argentina's ARG Token Soars After Copa America Success

The Argentina Football Association's ARG token saw a 30% increase following Argentina's entry into the Copa America final. With a 107% increase to $2.32, it reached a market value of $27.85 million, driven by $23.57 million in trading volume, making it the most traded soccer fan token globally.

Upbit and Bithumb List New Altcoins

Upbit and Bithumb, South Korea's top exchanges, announced the listing of Galxe (GAL) and Polymesh (POLYX) respectively. GAL will be traded on Upbit with KRW pairs on the Ethereum network, while POLYX will be on Bithumb with KRW pairs on the Polymesh network. Both altcoins saw price increases; GAL rose by up to 30%, while POLYX increased by 12%.

EigenLayer Faces Sybil Attack Threats

EigenLayer is grappling with a significant threat from Sybil attacks during its Season 2 airdrop. Reports indicate up to 50% of delegations may be fraudulent, originating from clustered wallets. This undermines fair token distribution and security promises, impacting the protocol's integrity and market value, which recently saw a decline in locked value due to these issues.

Coinbase Ventures Boosts Stake in Aerodrome Finance

Coinbase Ventures has significantly increased its stake in Aerodrome Finance (AERO), acquiring 4.7 million tokens valued at $2.7 million. This investment underscores Coinbase's bullish stance on automated market makers and projects built on the Base chain. The move follows Aerodrome's rapid growth, with its token price surging 500% post-acquisition.

Trump's Bitcoin Conference Appearance Signals Crypto Shift

Former President Donald Trump's upcoming appearance at the 2024 Bitcoin Conference signals a notable shift in stance towards cryptocurrencies. Scheduled for July 27 in Nashville, Tennessee, Trump aims to discuss crypto policies amidst growing support from key industry players. His attendance underscores a renewed interest in digital assets despite previous skepticism. Following the announcement of Donald Trump's attendance at Bitcoin 2024 in Nashville, Trump-themed meme coins surged dramatically.

Compound and Celer Networks Hit by Front-End Attacks

Compound Finance and Celer Network recently suffered 'front-end' attacks, where hackers redirected users to malicious sites posing as legitimate platforms. Compound, a major DeFi player managing over $2B in assets, and Celer, facilitating cross-chain transactions, both issued alerts after the breaches were detected. Such attacks exploit website vulnerabilities rather than blockchain flaws, emphasizing the ongoing security challenges in the crypto space.

Inferno Drainer’s Stolen ETH Blocked by Railgun

Inferno Drainer attempted to launder $530,000 worth of stolen ETH through Railgun but was blocked. Railgun's PPOI system detected the attempt, forcing the tokens back to the attacker's wallet. This highlights Railgun's efficacy in preventing unauthorized transactions, using zero-knowledge cryptography for enhanced privacy in decentralized app transactions.

Tanzanian Fintech Nala Secures $40 Million Funding

Tanzanian fintech startup Nala has secured $40 million in a Series A funding round led by Acrew Capital, with participation from DST Global, Norrsken22, and HOF Capital. The funding will bolster their B2B payment platform Rafiki and support expansion beyond Africa, following a successful $10 million seed round in 2022.

Hamster Kombat Plans Second Airdrop

The founders of Hamster Kombat, pioneers in Telegram's "clicker" game genre, trace their origins back to 2013 in crypto. Inspired by Notcoin's success, they plan a second airdrop following this month's debut, aiming to educate and engage 1 billion users globally. Despite challenges like bot control, their ambitious goal includes fostering financial literacy and blockchain adoption through gameplay.