Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 19, 2024

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin Surges Above $63K After Fed Rate Cut
• Ether Bounces Off Long-Term Support Despite Struggles
• Bitcoin ETFs Face Outflows Amid Ethereum Withdrawal
• Binance Sees 40% Surge in Institutional Interest

Key Financial Movements

• Trump Buys Bitcoin While Paulson Warns of Tax Risks
• DZ Bank and Commerzbank Launch Crypto Trading Services
• Rari Capital Settles With SEC After Major Exploit
• WisdomTree Launches Tokenization Platform for RWAs
• Core to Launch Bitcoin Yield ETFs in U.S.

Country-Specific Developments

• Louisiana Accepts Bitcoin for Utility Payments

Crypto Exchanges and Platforms

• Hut 8 Expands Partnership With Bitmain for Mining Boost
• Silvergate Capital Files for Chapter 11 Bankruptcy
• Solana Unveils Seeker Smartphone, Broadening Crypto Utility

Token and Coin News

• Helium Faces Backlash Over v3 Upgrade and Token Supply
• Whale Activity Drives POPCAT Token Surge
• Aave Community Opposes Offboarding WBTC Amid Restructuring
• Sui Network TVL Surges, Token Price Soars

Security and Regulation

• Worldcoin Tests Facial Recognition for Security Boost
• Hackers Steal $243M Using Social Engineering Tactics
• Banana Gun Trading Bot Suffers Major Security Breach
• Ethena Labs Reports Front-End Exploit on Website
• WazirX Struggles to Recover From Massive Hack
• X Accounts Hacked to Promote Fake Memecoin Schemes

Web3 and DeFi Developments

• CertiK Ventures Invests $45M in Web3 Security Tools
• Drift Labs Raises $25M for Solana DEX Expansion

Platform and Technology Announcements

• Coinbase Adds ZetaChain and Aleo to Trading List
• UNKJD Soccer and Puma Collaborate on Mobile Gaming
• Parallel Studios Introduces New NFT Shooter Game
• Doodles Celebrates Rubik’s Cube Anniversary With Collectibles

Bitcoin Surges Above $63K After Fed Rate Cut

Bitcoin surged above $63,000 following a 50 bps Fed rate cut, boosted by strengthened U.S. labor and manufacturing data. Initial jobless claims decreased to 219,000, continuing jobless claims fell to 1.829 million, and the Philadelphia Fed Manufacturing Index rose to 1.7 in September. Whales signaled confidence as net BTC inflows remained positive, peaking at 27K BTC in June. BlackRock's Bitcoin white paper highlighted its potential as a geopolitical hedge, spurring a 6% price rally. 

MicroStrategy moved 4,922 BTC after issuing $875M in notes to acquire more Bitcoin, increasing its holdings to 244,800 BTC. Bitcoin bulls aim for $64,000 as institutional shorting slows, and 88% of HODLers are in profit as per IntoTheBlock data, with analysts eyeing higher price targets.

Ether Bounces Off Long-Term Support Despite Struggles

Ether bounced off the 200-week simple moving average, signaling long-term bullishness despite short-term struggles. During the recent 5.24% surge to $2,445, a whale sold $24.7M in ETH. Ethereum’s DApp volume fell 19%, impacting the network’s value narrative, while competitors like Solana saw growth. Ethereum’s staking yield of 3.3% lags behind rivals, with only 28.5% of ETH staked. The decrease came as developers plan to split the ambitious Pectra upgrade into two parts to reduce risks, with the first phase expected in early 2025.

Bitcoin ETFs Face Outflows Amid Ethereum Withdrawal

On September 19, Bitcoin ETFs faced $52.7 million in outflows despite a Fed rate cut, while Ethereum ETFs saw $9.8 million in net withdrawals. Meanwhile, Hong Kong could approve staking for Ethereum ETFs by year-end, aiming to revive the market after zero inflows. US Ethereum ETFs underperformed with $615 million in net outflows.

Binance Sees 40% Surge in Institutional Interest

Binance's CEO Richard Teng reports a 40% surge in institutional and corporate investors, citing growing interest post Bitcoin and Ethereum ETF introductions. Teng anticipates increased institutional involvement with clearer regulations, expecting liquidity boosts. Institutional inflows following the ETF approvals drove Bitcoin to a record $73,000. Nate Geraci foresees further growth.  

Trump Buys Bitcoin While Paulson Warns of Tax Risks

Donald Trump made his first Bitcoin purchase, buying a burger at PubKey Bar in New York. Meanwhile, hedge fund billionaire John Paulson stated that if Kamala Harris wins the November 2024 election, he and others will withdraw investments due to concerns over her proposed 25% tax on unrealized gains, potentially leading to market crashes and a recession.

DZ Bank and Commerzbank Launch Crypto Trading Services

DZ Bank announced it would offer crypto trading to 700 cooperative bank clients through Boerse Stuttgart Digital. Commerzbank also launched Bitcoin and Ethereum trading for corporate clients via Crypto Finance. Additionally, over 40 global banks, including JPMorgan, Santander, and Deutsche Bank, joined Project Agora, led by BIS, to modernize cross-border payments using tokenization and smart contracts.

Rari Capital Settles With SEC After Major Exploit

Rari Capital settled with SEC for unregistered securities and operating as an unlicensed broker. Co-founders agreed to fines and a five-year ban. The platform generated $2.32 million in revenue by charging a 10% performance fee. It ceased operations in 2022 after suffering multiple exploits, including a $80 million loss. Rari merged with Fei Protocol in December 2021.  

WisdomTree Launches Tokenization Platform for RWAs

WisdomTree has launched the WisdomTree Connect platform, enabling tokenization of real world assets (RWAs). The platform will enhance B2B opportunities, offering digital funds across multiple blockchains. It integrates fiat-to-crypto conversions, plans to add additional blockchains, and facilitates easy trading for institutional and retail users. Notably, financial giants like BlackRock and Franklin Templeton are actively involved in this tokenization movement. 

Core to Launch Bitcoin Yield ETFs in U.S.

Core plans to launch Bitcoin yield ETFs in the US within five years, leveraging its non-custodial BTC staking product and hybrid consensus model. Valour's ETP offering 5.65% yield serves as a milestone, as Core aims to enter the US market, pending regulatory changes. Messari reports a 1,032% increase in DeFi TVL, largely attributed to Core's innovations.  

Louisiana Accepts Bitcoin for Utility Payments

Louisiana has become the first U.S. state to accept Bitcoin for utility payments, targeting a tech-savvy demographic and aiming for more payment flexibility and freedom. The move could inspire other states to follow suit and prompt discussions on federal crypto regulations, showcasing cryptocurrencies as practical everyday tools with potential global implications.

Hut 8 Expands Partnership With Bitmain for Mining Boost

Hut 8 expands its partnership with Bitmain through the launch of the U3S21EXPH, a next-gen ASIC miner. The deployment will boost Hut 8's hash rate by 80% through a 15 EH/s hosting agreement, leveraging in-house infrastructure. The collaboration seeks to bridge engineering gaps and integrate AI into data center operations, indicating a strategic focus on efficiency and innovation.  

Silvergate Capital Files for Chapter 11 Bankruptcy

Silvergate Capital Corporation, parent company of Silvergate Bank, filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware. The filing reveals assets ranging from $100 million to $500 million and liabilities between $10 million and $50 million. The company's reorganization plan aims to fully pay specific debts but would cancel certain claims related to common stock and securities lawsuits.  

Solana Unveils Seeker Smartphone, Broadening Crypto Utility

Solana has unveiled the Seeker smartphone, offering rewards similar to the Saga, with over 140,000 pre-orders. General Manager Emmett Hollyer clarified that it's not just a memecoin phone, focusing on new experiences and a broad use case range. Seeker features upgraded hardware and a decentralized app (DApp) store, fostering emerging narratives and airdrops. It aims to enable crypto utility while providing an open app store for innovative crypto apps, differentiating it from giants like Apple and Google. Rewards spotlighted in the sales pitch, emphasizing a diverse range of crypto-integrated experiences.  

Helium Faces Backlash Over v3 Upgrade and Token Supply

Helium's native token, HNT, faced a 15% drop before easing the losses due to backlash over the Helium v3 upgrade proposal, mainly criticized for increasing the maximum token supply. This sparked community concerns about value dilution. Technical indicators indicate a bearish trend, with the potential for further price decline unless crucial support levels hold.  

Whale Activity Drives POPCAT Token Surge

The POPCAT token has surged in value due to substantial whale activity and high-frequency trading on Bybit, Gate.io, and MEXC. The token's daily volume has exceeded $168M, leading to its entry into the top 100 gainers list. Despite the potential for a Binance listing, the token remains risky with unpredictable price movements and constant whale activity.  

Aave Community Opposes Offboarding WBTC Amid Restructuring

The Aave community opposes offboarding WBTC despite its looming restructure led by Bitgo and involving Justin Sun. LlamaRisk proposed reducing WBTC's maximum LTV ratio to $0, but Aave's community remains largely unconcerned, emphasizing the importance of supporting legitimate users and taking cautious, measured actions. Meanwhile, Sky, formerly MakerDAO, is swiftly moving to offboard WBTC due to perceived counterparty risks.  

Sui Network TVL Surges, Token Price Soars

The Sui Network witnessed a remarkable surge in Total Value Locked (TVL) to $810.5 million on September 19, marking a substantial 283% year-to-date increase. Simultaneously, the SUI token soared over 30% in the past week, reached a trading price of $1.33, outperforming other crypto assets following the Grayscale Sui Trust launch and USDC integration announcement. 

Worldcoin Tests Facial Recognition for Security Boost

Worldcoin is testing facial recognition technology on its World App to enhance security for its 15 million users. The "proof-of-humanity" project verifies personhood through iris-scanning orbs and awards WLD tokens. Despite facing regulatory scrutiny in some jurisdictions, Worldcoin aims to improve its image and adhere to data privacy regulations.  

Hackers Steal $243M Using Social Engineering Tactics

Hackers stole $243 million in crypto from a Genesis creditor using social engineering. Two criminals, Greavys and Box, were arrested. $43.5 million of the stolen funds were linked to Wiz. Investigations by ZachXBT and authorities led to freezing assets totaling $9 million and return of over $500,000 to the victim, with ongoing actions to recover more.  

Banana Gun Trading Bot Suffers Major Security Breach

Popular Telegram-based trading bot Banana Gun faced a major security breach, with up to 36 wallets exploited for 536 ETH. The token, BANANA, fell from $43 to $40.34, causing it to crash. The bot remains offline pending investigation, with users advised to cease trading and transfer assets to new wallets. Losses are estimated at $1.9M. The exploit coincided with the NEIRO token craze, impacting 43% of the bot's activity. It is one of the biggest producers of DEX traffic, with lifetime accrued volume of $6.7B. 

Ethena Labs Reports Front-End Exploit on Website

Ethena Labs reported a front-end exploit on its website, advising users to avoid interacting with the platform. The domain registrar account was compromised but ensured that the Ethena protocol and all customer funds remain secure. Security firm Blockaid warned users to disconnect wallets, and Metamask cautioned against fake sites. 

WazirX Struggles to Recover From Massive Hack

WazirX is still struggling to recover from the July 2024 hack, where hackers stole $235 million. Despite recovery efforts, 43% of the stolen funds are considered irrevocably lost. The hacker has moved over $33 million to Tornado Cash, further complicating fund recovery. Meanwhile, WazirX continues to blame custody provider Liminal, which denies any responsibility, and Binance, which also disclaims ownership or control over WazirX. Investigations and legal actions are ongoing, but significant funds remain unrecovered.

X Accounts Hacked to Promote Fake Memecoin Schemes

Several X accounts were hacked to promote fake memecoin schemes, including Decentraland's MANA airdrop and Solana's HACKED, with scammers netting just $8,000. The Church of Smoking Chicken Fish, a memecoin-turned-church, collapsed amid rug-pull accusations, with its leader ousted after promoting another failed coin, BigTittyChicken, causing community uproar.

CertiK Ventures Invests $45M in Web3 Security Tools

CertiK Ventures unveiled a $45 million investment plan to drive development within the Web3 ecosystem, aiming to promote integration and security. Additionally, the company introduced free community tools, Token Scan and Wallet Scan, at the Token2049 event to enhance security for users' assets. CertiK, backed by prominent investors, has provided security services to more than 4,700 projects worldwide, including Web3 networks and companies like Ripple and Binance, protecting approximately $360 billion in assets.  

Drift Labs Raises $25M for Solana DEX Expansion

Drift Labs, a decentralized exchange platform on Solana, raised $25 million in a Series B round, led by Multicoin Capital and joined by Blockchain Capital, Primitive Ventures, and Folius Ventures. The funds will support expansion and the development of spot and derivatives trading, a prediction market, and doubling the staff to 50. Since its launch in November 2021, Drift has attracted 200,000 users and has amassed over $50 billion in cumulative volume, aiming to become the "Robinhood of Crypto." The platform distinguishes itself with its distinctive product, perpetual futures trading, which allows users to bet on an asset's future price, currently reaching $52.5 billion in total funding raised, demonstrating significant growth and a strong brand identity. 

Coinbase Adds ZetaChain and Aleo to Trading List

Coinbase added ZetaChain and Aleo to its experimental assets list, allowing trading only for native versions. ZetaChain, with 3.78M accounts, raised $27M but trades below initial sale levels. Meanwhile, on September 20, 2024, MEW, a Solana-based memecoin, surged 28% after an Upbit listing, reaching $0.0054 and a $480M market cap.

UNKJD Soccer and Puma Collaborate on Mobile Gaming

UNKJD Soccer and Puma have joined forces to enhance the mobile gaming experience by integrating Puma's licensed content into the game. The collaboration introduces Puma-inspired characters, skins, and exclusive tournaments, aiming to attract new players and provide incentives for existing ones. This partnership strengthens Puma's presence in the gaming space and supports UNKJD Soccer's goal to reach a global audience.

Parallel Studios Introduces New NFT Shooter Game

Parallel Studios, creators of Ethereum NFT card game Parallel, introduce "Project Tau Ceti," a 3D first-person shooter game on the Base gaming network B3. B3.fun, specializing in gaming, is the platform for Tau Ceti. The game will leverage Parallel's NFT avatars and is set for PC alpha testing in 2025, with potential mobile and console adaptations to follow.