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News/Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 6, 2024

Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 6, 2024

Van Thanh Le

May 6 2024

last month6 minutes read
Coin360 daily crypto news, cryptocurrency updates, market movement

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Crypto Market Update

Table of Contents

Market Updates and Trends

  • Bitcoin Rebounds Amidst Lower Volatility
  • Bitcoin Celebrates Billionth Transaction Amidst Rising Runes
  • Ethereum Burn Rate Hits Record Low
  • Ethereum Stablecoin Transactions Surge in April
  • Country Meme Coins Gain Popularity Before Olympics
  • Worldcoin Sees Major Uptick Amid Controversial Campaign

Regulatory and Legal Issues

  • Robinhood Faces SEC Scrutiny Over Crypto Listings
  • Cartier Heir Accused in Major USDT Laundering Case
  • Coinbase Faces Lawsuit Over Alleged Unregistered Securities
  • Mango DAO Approves Controversial Buyback Plan
  • BTC-e Founder Admits to Massive Bitcoin Laundering

Technological and Platform Innovations

  • Axelar’s Interchain Amplifier Enhances Blockchain Connectivity
  • MetaMask Introduces Smart Transactions to Reduce Fees
  • Sui Network Refutes Misleading Claims About Token Supply
  • Bitfinex CTO Denies Data Breach Allegations
  • Crypto.com Hits 100 Million Users Milestone
  • Coinbase Base Chain Witnesses Surge in Crypto Thefts

Financial Instruments and Investment

  • Hong Kong ETFs Attract Significant Investments
  • Crypto VC Funding Continues Strong in 2024
  • Hermetica Launches Bitcoin-Backed USDh with High Yield
  • Justin Sun Dominates Swell L2's Liquid Staking

Scams and Security Issues

  • Fake GNUS Token Hack Leads to Major Losses
  • ZeroLend's Token Airdrop Draws Criticism and Attention

Social and Cultural Impact

  • South Korea Excludes Crypto from Amended Donation Law
  • Jack Dorsey Exits Bluesky, Project Thrives Under New Leadership
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Bitcoin Rebounds Amidst Lower Volatility

Bitcoin has shown a robust recovery over the weekend, increasing by over 10% to surpass $65,000 before being rejected and pulling back to $63,500 today. The coin begins a bullish week with expectations to retest critical support levels as derivatives markets stabilize and the derivatives side shows health, with the open interest to market cap ratio at its lowest since February, indicating lesser volatility. 

Solana outpaces Bitcoin and Ethereum with a nearly 5% increase, pushing its price to $154 as the rest of the market experiences modest movements. It happened as a Bitcoin wallet from Satoshi Nakamoto's time woke up and transferred $43.9 million, sparking speculation. Experts believe it's likely early miners or investors cashing out. Inactive wallets from over a decade ago hold around $121 billion, with some recently becoming active, possibly for profit.  

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Bitcoin Celebrates Billionth Transaction Amidst Rising Runes

Bitcoin recently achieved its 1-billionth transaction, showcasing its robustness and capacity to handle transactions securely without central oversight, achieving this milestone faster than traditional payment giants like Visa. However, challenges like scalability, high transaction fees, and environmental concerns remain. Meanwhile, Bitcoin Runes has surpassed BTC in daily transaction volumes, dominating the Bitcoin network with significant network fees contributing to miners' revenue. Despite this, challenges in maintaining profitability have led miners to upgrade technologies and sell mined Bitcoin to fund growth.


Ethereum Burn Rate Hits Record Low

The Ethereum network has experienced a drastic reduction in daily ETH burn, reaching an all-time low of 610 ETH. This decline is attributed to the significant drop in average gas fees, which has resulted in fewer ETH being burned. The reduced burn rate impacts Ethereum's deflationary nature, potentially leading to a brief inflationary period.  

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Ethereum Stablecoin Transactions Surge in April

Ethereum saw unprecedented stablecoin volume in April, driven mainly by DAI, reaching nearly $1.2 trillion, with $636 billion from DAI alone. Notable transactions, including flash loans, spiked volumes. Meanwhile, less than 10% of stablecoin transaction volumes stem from real users, with Visa revealing only $149 billion of April's $2.2 trillion total being organic. Tether (USDT) and USD Coin (USDC) lead the market, comprising 75% and 22% of the $150 billion total stablecoin supply, respectively. Despite high total volumes, real user engagement remains relatively low, highlighting the disparity between total and organic transactions.


Country Meme Coins Gain Popularity Before Olympics

Country meme coins named after countries have surged in popularity ahead of the Paris Olympics. With 47 country coins tracked, trading volume reached nearly $18 million, total market cap near $110 million. American Coin (USA) leads with an $83 million market cap, soaring 74,000%. Other top performers include Palestine Coin (PALESTINE) up 764%, France Coin (FRA) and UK Coin (UK) growing 120% and 145% respectively.  


Worldcoin Sees Major Uptick Amid Controversial Campaign

Worldcoin (WLD) rallied nearly 19% at one point and was among the top gainers today. The project aims to build a blockchain for verified human identities using iris biometrics. Its controversial ad campaign drew attention despite facing criticism over data privacy concerns. WLD token unlocks will accelerate after July 2024, and Worldcoin is offering grants to attract Web3 developers.

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Robinhood Faces SEC Scrutiny Over Crypto Listings

Robinhood received a Wells Notice from the SEC concerning its crypto business, signaling possible enforcement for alleged securities law violations. The SEC's actions stem from Robinhood's disputed listings, which it asserts are not securities. Robinhood officials expressed disappointment over the notice but remain confident about their legal stance. The situation has impacted Robinhood's stock, with a notable 7.8% decrease. This controversy follows SEC's broader regulatory focus on cryptocurrency businesses, including previous notices to other firms.


Cartier Heir Accused in Major USDT Laundering Case

Maximilien de Hoop Cartier, scion of the Cartier jewelry dynasty, is accused of money laundering for a Colombian cartel. He allegedly used Tether (USDT) in over-the-counter trades with shell companies. USDT's appeal lies in anonymity and speed. Cartier faces four serious charges and is held in Miami alongside his Colombian associates.  


Coinbase Faces Lawsuit Over Alleged Unregistered Securities

A class-action lawsuit filed against Coinbase by investors alleges the company sold unregistered securities, violating California securities laws. The suit names Coinbase Global Inc. and CEO Brian Armstrong as defendants. If found guilty, Coinbase could face penalties and damages, impacting its future and setting a precedent for crypto regulation in the US.  


Mango DAO Approves Controversial Buyback Plan

Mango DAO faced controversy over a buyback plan designed to benefit an alleged FTX estate buyer. The proposal, led by DonDuala, triggered suspicion of a backdoor deal due to FTX tokens being transferred before the plan's proposal. Despite pushback, the amended buyback proposal passed, and a subsequent plan was announced to repurchase more tokens.  


BTC-e Founder Admits to Massive Bitcoin Laundering

BTC-e founder Alexander Vinnik has admitted to laundering over $9 billion in Bitcoin through the exchange from 2011 to 2017. The platform processed transactions totaling $9 billion, involving over one million users worldwide, with more than $4 billion in Bitcoin laundered. Vinnik's sentencing, similar to other crypto cases, is pending judicial determination.  


Axelar’s Interchain Amplifier Enhances Blockchain Connectivity

Axelar's Interchain Amplifier has onboarded Stacks, Moonriver, Hedera Network, and Iron Fish for a devnet-phase pilot. This smart-contract-based toolkit enables permissionless connectivity across various blockchain networks, including Bitcoin, Ethereum, EVM chains, IBC, and more. Founded in 2020, Axelar raised $35 million in funding and is backed by prominent investors such as Binance and Coinbase.  

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MetaMask Introduces Smart Transactions to Reduce Fees

MetaMask, the leading Ethereum wallet, is introducing Smart Transactions to combat the negative impact of MEV strategies. The feature uses a virtual mempool to protect users and runs simulations to minimize fees. It addresses the massive problem of wasted funds and predatory practices, setting the stage for a transformative shift in how MetaMask processes Ethereum transactions.  


Sui Network Refutes Misleading Claims About Token Supply

Sui Network refutes misleading claims about its token supply, emphasizing that locked SUI tokens are held by third-party custodians. Mysten Labs, the project's developer, has no access to the Sui Foundation's locked tokens. The foundation aims to utilize these tokens to support various initiatives. With a max supply of 10 billion, the circulating supply is expected to increase to about 3.6 billion over the next year.  

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Bitfinex CTO Denies Data Breach Allegations

Bitfinex's CTO dismissed FSociety's claim of a database breach as "fake," emphasizing no ransom request was made. Allegations stemmed from a curated list of logins, not a direct breach. Key details include only 5,000 user matches out of 22.5k records and no plaintext storage of passwords at Bitfinex. This incident represents a false claim without actual data compromise.


Crypto.com Hits 100 Million Users Milestone

Crypto.com, a major cryptocurrency exchange, has achieved a significant milestone, surpassing 100 million users globally. The company, founded in 2016, emphasizes regulatory compliance and security. Its user base surged after the adrenaline-fueled Formula 1 Crypto.com Miami Grand Prix in 2022. CEO Kris Marszlek highlighted the brand's iconic partnerships and emphasized the platform's global regulation leadership. 


Coinbase Base Chain Witnesses Surge in Crypto Thefts

In April, Coinbase’s Base chain experienced a significant 145% surge in crypto thefts, with 2 of the top 10 largest single thefts occurring on the platform, according to Scam Sniffer. Overall, there was a 46% reduction in theft compared to March, with 34,619 victims losing more than $38.6 million. The report also notes a 1,900% increase in scammer activity since January.  


Hong Kong ETFs Attract Significant Investments

Hong Kong's spot Bitcoin ETFs, including those from China AMC, Bosera International, and HashKey Capital, amassed $230 million AUM in the first week, with Ethereum variants at $43 million. These ETFs, outperforming futures ETFs by nearly 80%, could exceed $1 billion AUM by year-end. 

Richard Byworth hinted that these ETFs might soon open to mainland Chinese via Stock Connect, potentially triggering a significant capital inflow. Current arrangements like the Shanghai and Shenzhen Stock Connects, and the QDII scheme, already facilitate investment from mainland China to Hong Kong. Including Bitcoin ETFs could attract $25 billion of capital, enhancing financial integration between Mainland and Hong Kong.


Crypto VC Funding Continues Strong in 2024

In April 2024, cryptocurrency venture capital funding surpassed $1 billion for the second consecutive month, according to RootData. Over 604 funding rounds accrued $3.67 billion this year, on pace to exceed 2023's total. Notable investments include a $225 million infusion into Monad. Blockchain infrastructure leads with $1.7 billion in funding, decentralized autonomous organizations trailing at just $3 million.  


Hermetica Launches Bitcoin-Backed USDh with High Yield

Hermetica is set to launch USDh, the first Bitcoin-backed synthetic dollar with a 25% yield. This aims to offer Bitcoiners the opportunity to earn yield on U.S. dollars, backed by Bitcoin, without involving the traditional banking system. Hermetica's CEO asserts that the yield is sustainable, derived from Bitcoin futures demand. This aligns with the growing trend of Bitcoin-native DeFi, projecting substantial growth in the coming years.  


Justin Sun Dominates Swell L2's Liquid Staking

Justin Sun's $376 million eETH deposit into Swell L2 constitutes 46.6% of its total deposits, reflecting substantial participation in liquid restaking. This underscores a broader trend of prominent figures leveraging innovative staking solutions and the growing interest in liquid staking protocols like EigenLayer and Ether.fi. Sun's strategic emphasis on supporting such platforms signals a potential shift in the cryptocurrency landscape.  


Fake GNUS Token Hack Leads to Major Losses

The fake GNUS token hack drained $1.3M via Uniswap; attacker minted fake tokens on Fantom, bridged to Ethereum, and sold, causing GNUS price to plummet by 95%. Allegations of a premeditated rug pull emerge. Fantom's decline from $7B TVL to $120M, compounded by Multichain issues, and legal action against those involved is ongoing.  


ZeroLend's Token Airdrop Draws Criticism and Attention

ZeroLend launched a crypto airdrop of ZERO tokens, distributing 18% of the total supply to the community. The event included early ZERO token holders and Zero Gravity points converted to ZERO, aiming to bridge multiple blockchain networks. However, criticism arose over uneven token distribution, prompting vigilance against potential scams, while ZERO is being traded on centralized cryptocurrency exchanges.  


South Korea Excludes Crypto from Amended Donation Law

South Korea's amended donation legislation excludes cryptocurrencies, despite their global popularity in charitable giving. The new law allows for innovative donation methods like stablecoins and blockchain vouchers, aiming to modernize the process. However, this move diverges from the global trend and may limit charitable innovation in the country, potentially impacting its charities and donation drives.  


Jack Dorsey Exits Bluesky, Project Thrives Under New Leadership

Bluesky, a decentralized social network initiated by Jack Dorsey, announced his departure without providing a public rationale. The platform, now flourishing with over 5.5 million users, prioritizes meaningful conversations and authentic engagement. Former Zcash developer Jay Graber leads the project, which launched a social media app in 2023 and saw rapid growth in 2024.   

Top Altcoin Gainers and Losers

Gainers:

Ethena ENA (+7.85%

Jupiter Space Station JUP (+5.58%

dogwifhat WIF (+5.03%

Losers:

Helium HNT (-6.67%

Bonk BONK (-6.16%

Stacks STX (-4.73%)

NFT Market Map

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This article has been refined and enhanced by ChatGPT.

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