Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 28, 2024

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin's Bullish Signs Amid Market Volatility
• Ethereum's Impressive May Surge and ETF Prospects
• Global Crypto Investment Inflows Hit Record High
• Mt. Gox Bitcoin Movement Sparks Market Panic
• Pepe Coin Price Drop After Developer Sales

Celebrity Scandals and Investments

• Celebrity Memecoin Scandal: Jenner and Rich the Kid
• Semler Scientific's Bitcoin Investment Boosts Stock
• Metaplanet's Bitcoin Acquisition Strategy

Crypto Exchange Controversies

• Binance's Alleged Gopax User Claim Sale
• KuCoin Partners with Allen & Overy for Legal Defense

Political and Regulatory Developments

• Trump's Bitcoin Solution for National Debt
• ESMA Classifies MEV as Market Abuse
• Hong Kong's SFC to Inspect Crypto Trading Platforms
• Former FTX Executive Ryan Salame Sentenced

Blockchain and DeFi Innovations

• Solana Validators' Incentive Plan Approved
• Turbo Memecoin's Rapid Growth and Risks
• Chainlink's LINK Token Surges on SWIFT Collaboration
• Uniswap's Balance Sheet and New Fee Distribution Plan
• Aave's New Blockchain Launch Announcement
• Starknet's Catalyst Program to Boost DeFi Innovation

Milestones and Partnerships

• Notcoin's Market Cap Surpasses $1 Billion
• Google Cloud and Fantom Deepen Partnership
• FLOKI Achieves Major Milestone in TVL
• DWF Labs' Investment in Milady Meme Coin
• The Sandbox Launches DAO for Governance
• TRON's Cross-Chain Interoperability with LayerZero

Technology and Tools

• Ethereum Name Service's Proposed ENSv2 Redesign
• Maple Finance's New Syrup Platform for USDC Lending
• Dune Catalyst Simplifies Blockchain Data Management
• Sphere Labs' Bank-to-Wallet Telegram Extension
• Ledger Stax Hardware Wallet Finally Ships
• P2P.org's Restaking API Integration
• Sinohope's 108% Recovery of FTX Funds
• Based Doge Exploited on Base Network

Bitcoin's Bullish Signs Amid Market Volatility

Bitcoin is exhibiting strength despite recent price dips due to Mt. Gox coin movements, with bullish factors including strong U.S. stock performance, political support, and the approval of spot Ether ETFs. CryptoQuant's analysis suggests the bull market isn't over, with the MVRV ratio indicating further potential gains. Bitcoin's price briefly exceeded $70,000 before dumping, with a significant 2.23% premium in South Korea. Investment inflows into Bitcoin products reached $1 billion last week, driven by institutional interest and long-term holders accumulating.

Ethereum's Impressive May Surge and ETF Prospects

Ethereum has surged nearly 30% in May, its best performance since February's 46% rise, driven by the approval of Ethereum ETF 19-b filings, recovering from April's 17% drop. The SEC's decision on the spot Ethereum ETF is expected by June 17, 2024, which could further boost its market. Grayscale's spot Ether ETF faces potential $110 million daily outflows due to high redemption rates, raising market stability concerns. Ether options open interest is dominated by calls, reflecting a bullish markecture. However, concerns for a potential sell-off loomed among traders as Ethereum exchange netflow recently spiked to a 4-month high.

Global Crypto Investment Inflows Hit Record High

Global crypto investment inflows have reached a record $14.9 billion YTD, driven by Bitcoin ETFs with $1.01 billion last week. Ethereum ETFs saw $35 million inflows, boosting positive sentiment. Total digital asset ETPs valued at $98.5 billion, with weekly trading volumes up 28% to $13.6 billion. In the US, inflows were $1.03 billion, while Hong Kong saw $29 million outflows last week. Other large-cap assets like Solana and Litecoin also saw significant inflows.

Mt. Gox Bitcoin Movement Sparks Market Panic

Today, Mt. Gox moved 141,686 BTC ($9.6 billion) to three addresses, consolidating 142,846 BCH ($67.24 million), triggering market panic as BTC dropped to $68,000 from $70,000. However, Former CEO Mark Karpelès confirmed no Bitcoin sales are imminent, with repayments expected by October 31, 2024. Concurrently, a $289 million USDT transfer from Binance occurred, contributing to BTC's price dropping over 4% amid market fears of a sell-off.

Pepe Coin Price Drop After Developer Sales

Pepe Coin's price dropped 4% at one point after developers reportedly sold 21.49 billion PEPE, raising concerns about market stability. The developer team has sold 282.8 billion PEPE since February, despite still holding 2.52 trillion PEPE.  The timing of the sales has led to speculation about the developer's intentions, with some arguing it's a strategy to capitalize on high prices while others believe it's for liquidity and development. 

Celebrity Memecoin Scandal: Jenner and Rich the Kid

Caitlyn Jenner and Rich the Kid alleged that memecoin collaborator Sahil Arora scammed them by dumping tokens from the JENNER and RICH launches. Jenner's token peaked at a $43M market cap before falling 52.8%. Roxo, a crypto sleuth, identified Arora as the orchestrator behind multiple celebrity token scams, including Soul Ja Boy and Kazumi. Despite the allegations, Jenner continues to promote her token.

Semler Scientific's Bitcoin Investment Boosts Stock

Semler Scientific's stock surged 30% after announcing Bitcoin as its primary treasury reserve, investing $40 million in 581 Bitcoin. The company believes Bitcoin is a reliable store of value and inflation hedge, citing its scarcity and potential for outsized returns. Semler's first-quarter revenue declined 13% to $15.9 million, but net income rose 22% to $6.1 million. 

Metaplanet's Bitcoin Acquisition Strategy

Metaplanet Inc., a publicly traded Japanese company, has resolved to purchase an additional ¥250 million (approximately $1.6 million USD) worth of Bitcoin, bringing their total holdings to an undisclosed amount.  The company plans to hold Bitcoin for both long-term and short-term purposes, with accounting methods adjusted accordingly to reflect market fluctuations. This recent acquisition follows a series of similar moves by companies globally, highlighting the growing acceptance of Bitcoin as a valuable asset class.

Binance's Alleged Gopax User Claim Sale

Binance allegedly sold Gopax user claims in Genesis Global at a discounted price without crapproval, potentially costing investors tens of millions of won. The sale was made to a third party in August 2023, and the transaction was concealed by Binance and Gopax. The claims were sold for less than half their face value, and the remaining 50% of GOFi debt is now estimated to be valued at over 100 billion won. 

KuCoin Partners with Allen & Overy for Legal Defense

KuCoin has partnered with the multinational law firm Allen & Overy (A&O Shearman) to handle lawsuits filed against it by the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC). The CFTC accused KuCoin of illegal commodity transactions without proper registration, while the DOJ alleged violations of the Bank Secrecy Act and failure to implement effective KYC and AML procedures.

Trump's Bitcoin Solution for National Debt

Donald Trump is exploring Bitcoin as a solution to the $ 35 trillion US national debt. Bitcoin Magazine CEO David Bailey, advising Trump's campaign, proposes pro-crypto policies including an executive order. Trump's pro-crypto stance, a shift from past skepticism, has garnered support from prominent figures in the crypto community. Trump's potential return to office could significantly impact the crypto industry. 

ESMA Classifies MEV as Market Abuse

The European Securities and Markets Authority (ESMA) has classified Maximumctable Value (MEV) as a clear example of market abuse under its proposed technical standards for the Markets in Crypto-Assets (MiCA) regulation. This means that regulated crypto businesses in the EU will need to detect and report instances of MEV through “suspicious transaction or order reports” (STORs). ESMA's draft standards also suggest a collaborative approach to enforcement, urging both EU and international authorities to cooperate on sanctioning market abuse. 

Hong Kong's SFC to Inspect Crypto Trading Platforms

Hong Kong's Securities and Futures Commission (SFC) will conduct on-site inspections of crypto trading platforms that have applied for a license as an important compliance deadline of June 1, 2024 approaches. By this date, all crypto platforms in Hong Kong must be either licensed or "deemed-to-be-licensed" to continue operating legally.

Former FTX Executive Ryan Salame Sentenced

Former FTX executive Ryan Salame was sentenced to 7.5 years in prison a fined $11 million for conspiracy charges related to illegal political contributions and operating an unlicensed money-transmitting business. Salame's actions, deemed to undermine public trust in US elections and the financial system, were part of a larger scheme involving FTX and Alameda Research. This sentence pales in comparison to the 25-year sentence given to former FTX CEO Sam Bankman-Fried for similar crimes. 

Solana Validators' Incentive Plan Approved

Solana validators will receive 100% of priority fees, a change designed to incentivize network security. The proposal, SIMD-0096, passed with 77% approval, boosting SOL by 1.6% in 24 hours. While the change increases inflation by 4.6%, supporters argue it eliminates side deals and promotes transparency. Some critics, however, believe it benefits validators at the expense of a deflationary mechanism. 

Turbo Memecoin's Rapid Growth

Turbo, a memecoin created using ChatGPT, has surged in value by 2,262% in three months, reaching a market capitalization of $638 million. Its success is attributed to a community-driven approach, innovative AI technology, and the broader memecoin trend. However, investors should be aware of the inherent risks associated with memecoins, as hype can fade quickly, potentially leading to significant losses.  

Chainlink's LINK Token Surges on SWIFT Collaboration 

Chainlink's LINK token has seen a surge of over 10% in the past day before pulling back, becoming one of the top performers among major cryptocurrencies. The price increase is likely due to positive news surrounding Chainlink's collaboration with the SWIFT payments platform, which will be highlighted at the upcoming Consensus conference. Additionally, Chainlink's co-founder expressed optimism about the future of Ethereum and other digital assets following the approval of Ethereum ETFs. The network has also announced progress in integrations across multiple blockchains, contributing to the bullish sentiment around LINK.

Uniswap's Balance Sheet and New Fee Distribution Plan

The Uniswap Foundation has disclosed a $41.41 million balance sheet, comprising fiat, stablecoins, and 730,000 UNI tokens, ahead of a crucial vote on a new fee distribution plan. The plan aims to incentivize liquidity providers and key participants in the Uniswap network, while the SEC threatens enforcement action over Uniswap's UNI and LP tokens.

Aave's New Blockchain Launch Announcement

Aave, a leading DeFi lending protocol, plans to launch its own blockchain called "Aave Network" after completing its V4 upgrade. This was revealed by Stani Kulechov, Aave's founder, who hinted that the network could go live by next year or earlier. The Aave Network aims to become the primary hub for Aave and its GHO stablecoin, promising unprecedented growth for the DeFi sector.

Starknet's Catalyst Program to Boost DeFi Innovation

Starknet, an Ethereum layer-2 scaling solution, launched 5 million token incentive program called Catalyst to support its ecosystem. The program will distribute 20 million STRK tokens to the top 21 projects based on metrics like TVL, fees, active users, and security audits. The grants aim to accelerate innovation in DeFi, gaming, and other blockchain applications on Starknet, which currently boasts over $1 billion in TVL. 

Notcoin's Market Cap Surpasses $1 Billion

Notcoin's market cap surpassed $1 billion after launching "earnings missions" that allow users to earn tokens passively by completing quests. The token surged 44% in a day and 7453% in a week, with a $1.2 billion trading volume. It is now ranked among the top 100 cryptocurrencies by market cap.

Google Cloud and Fantom Deepen Partnership

Google Cloud is deepening its partnership with Fantom by providing Fantom developers access to its infrastructure and AI services. Fantom developers will gain access to Google Cloud's resources and capabilities, including cloud infrastructure, AI capabilities, and security enhancements. Additionally, Google Cloud will become a validator on Fantom's upcoming Sonic network.

FLOKI Achieves Major Milestone in TVL

FLOKI has achieved a major milestone with its Total Value Locked (TVL) reaching $820 million, surpassing other meme coins like DOGE, SHIB, and PEPE. This impressive TVL, driven by Floki Staking and FlokiFi Locker, reflects investor confidence in the FLOKI ecosystem. The price of FLOKI has risen by 4.3% in the last 24 hours, with its market cap and trading volume also increasing significantly. 

DWF Labs' Investment in Milady Meme Coin

DWF Labs, a market maker company, reportedly sent $5 million USDT to the Milady Meme Coin (LADYS) developer address, potentially indicating an OTC agreement. This investment led to a 17% price increase for LADYS. 

The Sandbox Launches DAO for Governance

The Sandbox has launched its decentralized autonomous organization (DAO) called The Sandbox DAO, with a 25 million SAND treasury. This will allow SAND and LAND (NFT representing in-game plots) owners to vote on platform projects and propose improvements, enhancing transparency and community involvement in the platform's governance.

TRON's Cross-Chain Interoperability with LayerZero

TRON integrated with LayerZero to enable cross-chain interoperability for its blockchain, enhancing its dApps expansion to over 70 networks. With 1.8 million daily active users, TRON holds a 50% market share of USDT. LayerZero's anti-Sybil strategy, aimed at preventing multiple airdrop claims, caused controversy by labeling Merkly as a Sybil farming app despite being a valued ecosystem participant. This strategy aims to ensure airdrop tokens reach genuine users but has led to tensions in the DeFi community over the necessity and fairness of such measures.

Ethereum Name Service's Proposed ENSv2 Redesign

The Ethereum Name Service (ENS) proposed a major redesign called "ENSv2" to transform its domain name protocol into a layer-2 network, potentially utilizing Matter Labs' ZK Stack technology based on zkSync. This overhaul aims to revamp ENS's registry system, prioritizing privacy, security, and reducing transaction fees close to zero.

Maple Finance's New Syrup Platform for USDC Lending

Maple Finance launched the Syrup platform and SYRUP token, enabling permissionless USDC lending to institutions with 15% yields. Users receive syrupUSDC LP tokens and "Drips" rewards. The MPL token will migrate to SYRUP. Maple, with $45M TVL, focuses on Real World Assets and offers boosted rewards for locked stablecoins.

Dune Catalyst Simplifies Blockchain Data Management

Dune, a Web3 data analytics platform, has launched Dune Catalyst, an enterprise-grade service designed to simplify blockchain data integration and management. It offers two solutions: a fully managed integration service and a self-serve hosted solution, enabling seamless access to blockchain data and facilitating community growth and insights.

Sphere Labs' Bank-to-Wallet Telegram Extension

Sphere Labs, a blockchain developer focused on facilitating stablecoins for businesses, has announced a new bank-to-wallet fiat on-ramp and off-ramp as a Telegram extension. The extension will allow Telegram users to transfer funds between their bank accounts and cryptocurrency wallets within the Telegram app for a 0.1% fee. The service targets expanding financial services to developing countries and leverages Telegram's large user base, especially in India.

Ledger Stax Hardware Wallet Finally Ships

Ledger has finally started shipping its new Ledger Stax hardware wallet to customers who pre-ordered it over a year ago, after facing significant delays from its original release date in March 2023. The extra time allowed Ledger to refine the operating system with more features, and the device was designed in collaboration with Tony Fadell, the creator of the iPod, to enhance the user experience while maintaining Ledger's security standards.

P2P.org's Restaking API Integration

P2P.org, an Ethereum validator and staking provider, has integrated a new Restaking API that allows users to automatically restake their staked Ether (ETH) on protocols like EigenLayer. This enables intermediaries to offer their users the ability to maximize staking rewards and participate in future airdrops by restaking directly through P2P.org's platform. The API combines staking rewards, restaking rewards, validator incentives, and airdrop opportunities into a single integration point.

Sinohope's 108% Recovery of FTX Funds

Sinohope, a Hong Kong investment firm owned by Huobi co-der Leon Li, will recover over 100% of its $18.1 million stuck on FTX. Sinohope sold creditor claims to Ceratosaurus Investors LLC for $19.5 million, achieving a 108% recovery ratio. This comes amidst a surge in FTX creditor claims' value due to the crypto bull market, with estimates ranging from 129% to 143%.

Based Doge Exploited on Base Network

Based Doge, a memecoin on the Base network, was exploited on May 27, resulting in the loss of 91.4 million BOGE tokens. The attack mirrored the previous Normie exploit, where a faulty function allowed an attacker to mint new tokens and crash the price.  This resulted in a significant price drop for BOGE, with the market cap losing over $2.8 million in value. The attacker gained approximately $16,926 from the exploit.