Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 17, 2024

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Crypto Market Update

Table of Contents

Market Fluctuations and Predictions

• Bitcoin Price Fluctuates Amid Key Events and Factors
• Ethereum ETFs Predicted to Push ETH Price Over $5,000

Performance and Inflows

• US Bitcoin ETFs Report Strongest Performance in Six Weeks

Options and Risk Management

• Deribit’s New Election-Related Bitcoin and Ether Options

New Funds and Investments

• Grayscale Launches Decentralized AI Fund for Accredited Investors
• German Government Sells Seized Bitcoin from Movie2K Case

Blockchain and Token Developments

• TON Teleport BTC Launches; TRON-Based USDT Issuance Surpasses $60B
• Worldcoin Extends Token Lock-Up Period, Faces Manipulation Allegations
• Nigeria Pivots Blockchain Policy for Economic Advancement
• Hong Kong Finalizes Stablecoin Regulatory Framework

Institutional Innovations

• State Street Corp. Explores Stablecoin and Deposit Token Creation
• XBTO Launches Team for Tokenizing Real World Assets
• Arca and Securitize Partner to Tokenize U.S. Treasury Fund Shares

Network Upgrades and Technical Developments

• Starknet to Launch Version 0.13.2 with Enhanced Features

Cryptocurrency Surges and Trends

• XRP Surges 52% in July Amid Bullish Market Trends

Grants and Support Programs

• Maelstrom Launches Bitcoin Developer Grant Program

Security and Data Breaches

• Fractal ID Data Breach Affects 0.5% of Customers

NFT Market Updates

• Trump to Launch Fourth NFT Collection Amid Rising Demand
• OpenSea Gains Market Share in NFT Marketplace Battle

Bitcoin Price Fluctuates Amid Key Events and Factors

Bitcoin experienced significant fluctuations due to several key events and factors. It dropped 3% to $63,000 following Mt. Gox's transfer of over 190,000 BTC ($12 billion) to various wallets, and a broader market equity sell-off. Despite this, BTC has rebounded to $64,300 after hitting $66,000 due to optimistic market sentiment surrounding Donald Trump's pro-crypto VP pick, JD Vance. 

Over 36% of the Bitcoin owed to Mt. Gox creditors has already been distributed, raising concerns about potential sell-offs. However, large holders or "whales" continue accumulating BTC, with recent awakenings of dormant addresses containing significant amounts of Bitcoin. Analysts remain bullish, projecting BTC might reach $70,000 amid a favorable macro environment and potential Fed rate cuts expected in September.

Ethereum ETFs Predicted to Push ETH Price Over $5,000

Bitwise CIO Matt Hougan predicted Ethereum ETFs would push ETH's price over $5,000, emphasizing structural advantages such as a 0% short-term inflation rate and the absence of miner selling pressures. He projected $15 billion in ETF assets within 18 months. Meanwhile, FLOKI and PEPE memecoins surged, gaining 1,228% and 2,006% respectively in H1 2024, and are expected to continue their rally post-ETH ETF launch on July 23, as per Bloomberg’s Eric Balchunas.

US Bitcoin ETFs Report Strongest Performance in Six Weeks

US Bitcoin ETFs showed their strongest performance in six weeks, with significant inflows reported. On Tuesday, they continued a winning streak with $422.5 million in total inflows, led by BlackRock's iShares Bitcoin Trust with $260 million. This marks their best run since early June, reflecting sustained investor confidence and momentum.

Deribit’s New Election-Related Bitcoin and Ether Options

Deribit's new Bitcoin and Ether options tied to the U.S. elections have received positive feedback from crypto traders. These options, expiring just after the November 4 elections, aim to manage risk amid expected market volatility. Traders see them as crucial for hedging strategies during this pivotal event in the financial landscape.

Grayscale Launches Decentralized AI Fund for Accredited Investors

Grayscale Investments launched its Decentralized AI Fund, offering accredited investors exposure to decentralized AI protocols. The fund's composition includes Near (32.99%), Filecoin (30.59%), Render (24.86%), Livepeer (8.64%), and Bittensor (2.92%). It focuses on three categories: decentralized AI services, solutions to centralized AI problems, and critical AI infrastructure. The fund undergoes quarterly rebalancing and aims to capitalize on the growing interest in AI and decentralized technologies, despite cooling valuations compared to the previous year's AI boom.

German Government Sells Seized Bitcoin from Movie2K Case

The German government has successfully sold nearly 50,000 bitcoins seized in the Movie2K film piracy case, yielding $2.9 billion. This significant crypto selloff aims to manage assets pending legal outcomes, leveraging exchanges like Bitstamp, Kraken, and Coinbase for the transactions. The fate of these funds remains uncertain amidst ongoing legal proceedings.

TON Teleport BTC Launches; TRON-Based USDT Issuance Surpasses $60B

TON, supported by Telegram, launched TON Teleport BTC to facilitate secure Bitcoin transfers and DeFi participation. Meanwhile, TRON-based USDT issuance surpassed $60 billion. In June 2024, OKX processed $63.31 billion in trade volume, and TON’s total value locked reached $773 million. OKX added support for The Open Network (TON) in its wallet service, marking its 100th blockchain integration. 

Worldcoin Extends Token Lock-Up Period, Faces Manipulation Allegations

On July 16, 2024, Worldcoin announced extending the lock-up period for 80% of its WLD tokens from three to five years, reducing the daily unlock rate by 40%. This led to a 68% price surge, peaking at $3.20. However, allegations of price manipulation emerged, with accusations of insider trading and market manipulation by the team, criticized as the “biggest scam token” by crypto investigator ZachXBT.

Nigeria Pivots Blockchain Policy for Economic Advancement

Nigeria is pivoting its blockchain policy to enhance sectors like land registration, healthcare, and education. The National Information Technology Development Agency (NITDA) revamped its Blockchain Steering Committee, aiming to integrate expert insights for a comprehensive strategy. This initiative underscores Nigeria's push to adopt blockchain for economic advancement and technological innovation nationwide.

Hong Kong Finalizes Stablecoin Regulatory Framework

Hong Kong's Financial Services and the Treasury Bureau (FSTB) and the Monetary Authority (HKMA) have finalized plans for a new regulatory framework aimed at stablecoin issuers. Following extensive public consultation, including 108 submissions, the proposed regime aims to enhance financial stability and regulatory oversight. It aligns with international standards and seeks to foster a responsible stablecoin ecosystem in Hong Kong.

State Street Corp. Explores Stablecoin and Deposit Token Creation

State Street Corp. is exploring the creation of its own stablecoin and deposit token, aiming to facilitate blockchain-based payments. This initiative follows previous moves into digital assets, including launching crypto ETFs in partnership with Galaxy Asset Management. The firm's interest underscores growing institutional adoption and innovation in the cryptocurrency sector.

XBTO Launches Team for Tokenizing Real World Assets

Crypto trading firm XBTO has launched a dedicated team for tokenizing real world assets, starting with corporate debt issuance and plans to expand into sectors like real estate. This initiative aims to democratize access to capital markets, offering faster settlements and greater transparency through blockchain technology.

Arca and Securitize Partner to Tokenize U.S. Treasury Fund Shares

Arca has partnered with Securitize to tokenize shares of its U.S. Treasury Fund, marking a significant move in the digital asset space. This collaboration allows Arca to list its fund’s shares as digital securities on a FINRA-registered trading platform, enhancing liquidity and accessibility for investors in tokenized real-world assets.

Starknet to Launch Version 0.13.2 with Enhanced Features

Starknet is set to launch version 0.13.2 in August, promising faster transactions at no extra cost, enhanced developer tools, and a higher throughput capacity. This upgrade aims to lower fees, increase transactions per second (TPS), and achieve 2-second transaction finality. Meanwhile, StarkWare has successfully verified the first zero-knowledge proof on Bitcoin's Signet test network using its STARK verifier. This milestone leverages the OP_CAT technical proposal, demonstrating potential for broader computational applications.

XRP Surges 52% in July Amid Bullish Market Trends

XRP surged 52% in July, outperforming major cryptocurrencies, with a bullish triangle pattern and doubled futures interest, indicating anticipated price volatility. Traders are optimistic about continued gains, contrasting recent downtrends. Ripple CEO Brad Garlinghouse criticized US politics for turning crypto into a partisan issue. Ripple moved 150 million XRP tokens, sparking market speculation. Despite regulatory uncertainties, XRP's price rally continues, reaching multi-month highs and stirring investor interest amid ongoing legal battles.

Maelstrom Launches Bitcoin Developer Grant Program

Arthur Hayes' Maelstrom has launched a Bitcoin developer grant program, offering grants ranging from $50,000 to $150,000 per applicant. Grants will be issued monthly over 12 months in cryptocurrencies like BTC, USDC, or USDT. The initiative aims to support Bitcoin's technical development, enhancing its resilience and scalability.

Fractal ID Data Breach Affects 0.5% of Customers

Approximately 0.5% of Fractal ID’s 1 million customers were affected by a recent data breach, impacting Gnosis Pay and other crypto projects. The breach, traced to an operator's compromised account, exposed sensitive user data like names and IDs. Fractal ID, a key KYC service provider, swiftly addressed the breach but concerns remain over data security.