Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 20, 2024

Crypto Market Update

Table of Contents

Bitcoin and ETFs

• Bitcoin Surges Above $67,500 Amid ETF Demand
• US Bitcoin ETFs Attract $1.05 Billion in Inflows

Ethereum and SEC Developments

• SEC Decision on Ethereum ETFs Expected Soon
• Vitalik Buterin Discusses Ethereum's Decentralization Challenges

Exchange Updates

• Binance Prioritizes Smaller-Cap Projects for Listings
• Kraken Won’t Delist Tether’s USDT in Europe

Legal and Regulatory News

• Judge Rules Against Craig Wright in COPA Case
• Gemini to Return 97% of Frozen Assets by May

Leadership and Corporate Changes

• Grayscale Appoints Peter Mintzberg as CEO
• Justin Drake Joins EigenLayer, Sparking Debate

Token and Market Performance

• Gnosis Token GNO Surges Amid Buyback Proposal
• Notcoin Faces Severe Value Decline Post-Launch

Security and Exploits

• Pump.fun Exploiter Gets Caught

NFT Market Highlights

• Fantasy Top Leads NFT Market Sales

Bitcoin Surges Above $67,500 Amid ETF Demand

Bitcoin is trading near $68,000, reflecting an over 5% increase since May 13. The demand for Bitcoin ETFs surged. U.S. regulatory developments, such as potential SEC decisions on spot ether ETFs and upcoming legislative actions, are influencing crypto markets. Despite a recent decline in new Bitcoin wallet addresses, falling to levels not seen since 2018, there are signs of a potential market recovery driven by innovative protocols, increased venture capital interest, and small investors selling their coins to whales.

US Bitcoin ETFs Attract $1.05 Billion in Inflows

As of May 20, 2024, US spot Bitcoin ETFs saw net weekly inflows of $948.3 million, with total inflows reaching $1.05 billion over the past two weeks. Fidelity's FBTC led with $344.5 million, followed by Ark Invest’s ARKB with $243.7 million. Bitcoin whales have accumulated $16.8 billion in BTC since ETF launches in January, marking significant institutional adoption. Despite the bullish sentiment, some analysts argue that ETFs are pulling money into traditional finance, not benefiting DeFi.

SEC Decision on Ethereum ETFs Expected Soon

Multiple sources report the SEC’s imminent decision on spot Ethereum ETFs. Analysts expect a rejection, with approval odds around 30%-40% by the end of May. Bloomberg analysts lowered approval chances from 70% to 35%. Significant whale activity includes a 15K ETH ($46M) transfer to Kraken, raising concerns about price drops. Despite skepticism, some experts remain cautiously optimistic. The SEC’s approval of 19b-4 filings and delays with S-1 forms are key hurdles. Ethereum trades around $3,100, reflecting market anticipation.

Vitalik Buterin Discusses Ethereum's Decentralization Challenges

Vitalik Buterin, Ethereum’s co-founder, discusses decentralization challenges in Ethereum: MEV, staking complexities, and node hardware requirements. He proposes MEV minimization and quarantine methods, advocates for tech to reduce staking entry barriers, and emphasizes decentralization preservation while scaling Ethereum. Buterin calls for continuous improvement to ensure Ethereum's uniqueness is respected.

Binance Prioritizes Smaller-Cap Projects for Listings

Binance urged small and medium projects to address the trend of low float and high fully diluted valuations (FDVs), aiming to enhance the blockchain ecosystem by supporting projects with strong fundamentals. It came as Binance Research estimated $155 billion in token unlocks between 2024 and 2030, posing risks of unsustainable price appreciation and significant selling pressure. In a strategic shift, Binance now prioritizes smaller-cap projects for listings, requiring a Minimum Viable Product (MVP), an active team, and sustainable community token allocation.

Kraken Won’t Delist Tether’s USDT in Europe

Cryptocurrency exchange Kraken confirms it won't delist Tether's USDT stablecoin in Europe following the impending MiCA regulation. Amid SEC's lawsuit, Kraken seeks to dismiss the claims to avoid impacting US financial regulations. The focus on stablecoins leads to a discussion about Tether's dominance over USD Coin due to its earlier launch and significant trading volume.  

Judge Rules Against Craig Wright in COPA Case

On May 20, 2024, U.K. Justice James Mellor ruled against Craig Wright in the COPA vs. Craig Wright case, stating Wright lied and forged documents in an effort to prove he is Satoshi Nakamoto. The judge declared Wright's actions as a serious abuse of the court's process, leading to a significant win for the open-source community.  

Gemini to Return 97% of Frozen Assets by May

Gemini will return 97% of frozen assets in-kind to Earn users by the end of May. Assets frozen since November 2022 due to Genesis's bankruptcy. Users will receive assets they lent into Earn, plus appreciation. Genesis got Court approval to return $3 billion. The New York Attorney General reached a $2 billion settlement with Genesis for defrauding investors through the Gemini Earn program. The agreement mandates the return of funds to investors and prohibits Genesis from operating in New York. Letitia James accused Genesis of deceitful practices, with investors sending over $1.1 billion to the platform.  

Grayscale Appoints Peter Mintzberg as CEO

Grayscale Investments has appointed Peter Mintzberg as CEO, effective August 15, 2024. He, currently Global Head of Strategy for Asset and Wealth Management at Goldman Sachs, will also join Grayscale's Board of Directors. Mintzberg succeeds Michael Sonnenshein, who steps down to pursue other interests. CFO Edward McGee will serve as interim principal executive officer. Sonnenshein expanded Grayscale from $60 million to $30 billion in assets under management, and led a historic court victory against the U.S. Securities and Exchange Commission (SEC). 

Justin Drake Joins EigenLayer, Sparking Debate

Justin Drake, an Ethereum researcher, sparking conflict concerns by joining EigenLayer, a staking startup, with a substantial financial incentive in EIGEN tokens. Debate surrounds Drake's impartiality and potential influence on research objectivity. Drake defends transparency, focusing on risks associated with restaking. Widely discussed Ethereum Foundation staff engagements raise general crypto space conflict issues.  

Gnosis Token GNO Surges Amid Buyback Proposal

Gnosis token GNO surged as Thanefield Capital proposed a $30 million buyback to realign its market value with the intrinsic book value. The initiative earned community support, with co-founder M. Köppelmann emphasizing the need for a buyback growth program. GNO's price rose 20% at one point, currently at $319, reflecting positive market sentiment. Karpatkey will manage the buyback. 

Notcoin Faces Severe Value Decline Post-Launch

Notcoin (NOT) faces severe value decline, plummeting over 85% in its debut week despite Telegram’s notable endorsements. Airdropped tokens flood the market, causing price turbulence. Staking platform introduction aims to stabilize prices, but analyst forecasts further price dip. Market cautious as short-term outlook remains uncertain.  

Pump.fun Exploiter Gets Caught

Jarret Dunn, a former Pump.fun employee, was arrested for exploiting the crypto platform, causing $1.9 million in losses. He admitted to the attack on social media. Pump.fun stated he abused his access, resulting in the significant loss. Dunn tweeted about being charged with theft and urged users to withdraw funds. He was released on bail but faces mental health issues and legal proceedings.