Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 24, 2024

Crypto Market Update

Table of Contents

Bitcoin and Ethereum Updates

• China Stimulus Lifts Bitcoin Price Forecast to $78,000
• Ethereum Hits Four-Week High Amid Whale Activity
• Ethereum ETFs Face Massive Outflows, Bitcoin Sees Inflows

Market Growth and Token Launches

• Polymarket Aims to Raise $50M Amid U.S. Election Betting Surge
• Celestia Raises $100M to Scale Blockchain Network

Crypto Platforms and Exchange Updates

• Bybit Launches Shariah-Compliant Islamic Crypto Account
• Kraken Expands in Europe With Dutch Acquisition

AI and Blockchain Collaborations

• Ocean Protocol Partners With Zero1 Labs for AI-Driven Services

Regulation and Compliance Developments

• Waters and McHenry Push for Stablecoin Regulatory Framework
• Circle Unveils Compliance Engine for On-Chain Solutions
• SEC Charges TrueCoin and TrustToken Over Fraudulent Sales

High-Profile Legal Cases

• Diddy and SBF Held at Brooklyn Detention Center

Exchange Security and Scalability

• Binance Denies Data Breach Allegations Amid User Record Leak Rumors
• Treasure DAO Migrates to ZKsync for Improved Scalability

Token Movements and Market Impact

• GSR Markets Deposits 5 Million EDU Tokens on Binance

China Stimulus Lifts Bitcoin Price Forecast to $78,000

China's $140 billion stimulus boosted Bitcoin's price forecast to $78,000, although it’s currently under $64,000, triggering optimism despite China's crypto restrictions. Meanwhile, CryptoQuant reported Bitcoin's supply in profit exceeding its 365-day moving average, indicating potential for further gains following an 8% price rise after the U.S. Federal Reserve's rate cut. A 10-year dormant Bitcoin whale moved $77 million in BTC, further stirring market interest. This activity aligns with recent developments, with whales becoming active amid favorable liquidity conditions from central bank actions globally.

Ethereum Hits Four-Week High Amid Whale Activity

As ETH reached a four-week high of $2,700, the market response varied. Earlier today, a wallet tied to bankrupt Genesis sent 5,000 ETH ($13 million) to FalconX, while still holding $424 million. Meanwhile, according to Glassnode, Ethereum whales bought 70,000 ETH worth $185 million, pushing prices from $2,295 to $2,640, potentially exceeding $3,000. Since mid-September, Ethereum’s onchain fees jumped from $1 to $7.06, with swaps costing $37.69 and NFT sales $63.70. These fees have risen despite ETH supply constraints introduced by the London hard fork, limiting inflation to 0.367% annually.

Ethereum ETFs Face Massive Outflows, Bitcoin Sees Inflows

Ethereum ETFs faced massive outflows of $79.21M, with $80.6 million from Grayscale's ETHE, while Bitcoin ETFs saw $4.56 million in net inflows. Despite these outflows, ETH and BTC prices remained stable. Cathie Wood’s Ark Invest sold $2.8 million of its Bitcoin ETF shares for rebalancing.

Polymarket Aims to Raise $50M Amid U.S. Election Betting Surge

Polymarket aims to raise $50M amidst a surge in 2024 U.S. election betting, with nearly $1 billion at stake. The company plans a token launch to simplify event validation and potentially boost revenue, while trading volume hit $472M in August. However, regulatory scrutiny and previous fines from the CFTC pose challenges. 

Celestia Raises $100M to Scale Blockchain Network

Celestia Foundation has raised $100 million in a funding round led by Bain Capital Crypto, bringing the total project financing to $155 million. The investment will support the scale-up of the network to 1-gigabyte blocks. This precedes the upcoming major token unlock event, where 17.68% of the TIA supply, worth $1.1 billion, will be distributed. 

Bybit Launches Shariah-Compliant Islamic Crypto Account

Bybit has launched its first Shariah-compliant Islamic crypto account, featuring spot trading with 75 compliant tokens, DCA bot, and Spot Grid Bot, aimed at Muslim users. The initiative ensures adherence to Shariah principles and aligns with Islamic finance. This launch coincides with Bybit's expansion and official licensing in Turkey, showcasing a commitment to regulatory compliance and technological advancement, including partnerships with local banks.  

Kraken Expands in Europe With Dutch Acquisition

Kraken is expanding across Europe with the acquisition of Coin Meester (BCM), a prominent crypto broker in the Netherlands. The move extends Kraken's footprint in the Dutch market and grants virtual asset service provider (VASP) licenses in France and Poland. Accelerating expansion in anticipation of the MiCA regulation, Kraken now offers regulated VASP services in several European countries.  

Ocean Protocol Partners With Zero1 Labs for AI-Driven Services

Ocean Protocol has partnered with Zero1 Labs to enhance decentralized AI and data services. The collaboration enables Zero1 Labs' incubated projects to access a global data marketplace and privacy tools, while Ocean Protocol focuses on integrating AI technologies. Additionally, the token merger with SingularityNet and Fetch.ai aims to create the Artificial Superintelligence Alliance. 

Waters and McHenry Push for Stablecoin Regulatory Framework

Democratic Rep. Maxine Waters aims to strike a "grand bargain on stablecoins" with Republican Rep. Patrick McHenry before 2024 ends, seeking a regulatory framework that prioritizes consumer protections and strong federal oversight. The bill, in the works since 2022, must involve the Federal Reserve and require stablecoins to have safe reserves. Time is running out in Congress, with McHenry set to retire in January. 

Meanwhile, SEC Commissioner Hester Peirce, known as "Crypto Mom," recently criticized the SEC for delaying the acknowledgment that crypto tokens are not securities by default. Peirce emphasized the detrimental impact of regulatory uncertainty on the crypto and finance sectors, urging the SEC to provide clear guidelines to foster innovation in the industry.  

Circle Unveils Compliance Engine for On-Chain Solutions

Circle's Compliance Engine, announced by CEO Jeremy Allaire, assists companies in building compliant on-chain solutions, addressing stringent regulatory demands like FATF's Travel Rule. It includes transaction screening to detect risky transfers and monitoring high-risk behaviors. The tool supports various blockchains and implements pay-as-you-grow pricing to streamline developer operations.

SEC Charges TrueCoin and TrustToken Over Fraudulent Sales

TrueCoin LLC and TrustToken Inc. were charged by the SEC for fraudulent and unregistered sales of TrueUSD investment contracts. The SEC accused them of misleading investors about the stablecoin's backing, resulting in substantial risks. The companies settled without admitting guilt, agreeing to pay around $700,000 in penalties. Deceptive marketing practices were emphasized.

Diddy and SBF Held at Brooklyn Detention Center

Diddy and Sam Bankman-Fried are at the Metropolitan Detention Center in Brooklyn, housed in a unit with 19 to 20 inmates, including high-profile defendants and cooperators. Diddy faces sex trafficking charges, and Sam Bankman-Fried is a former crypto executive facing seven criminal charges. Other high-profile inmates have also been held at this detention center.

Binance Denies Data Breach Allegations Amid User Record Leak Rumors

Yesterday, reports indicated a potential Binance data breach, allegedly exposing 12.8 million user records. However, Binance denied the claims, stating that their security team examined the situation, confirming no data leak. The alleged breach remains unverified, suggesting it may be a scam. The reliability of the source, FireBear, on the dark web is questioned.

Treasure DAO Migrates to ZKsync for Improved Scalability

Treasure DAO has greenlit the migration to ZKsync for improved scalability, security, and support for blockchain-based games. The organization is anticipating the launch of a public testnet called Topaz and the mainnet within the next 1.5 to 2 months. Additionally, Treasure DAO is looking to execute a token swap to facilitate the smooth transfer of assets to the new blockchain. Working closely with over ten blockchain games, the aim is to ensure a smooth transition without disrupting ongoing gameplay or development efforts.  

GSR Markets Deposits 5 Million EDU Tokens on Binance

In the last 24 hours, GSR Markets deposited 5 million EDU tokens ($3.2M) on Binance, causing the EDU token price to fall by 6%. GSR continues to hold 820,000 EDU tokens worth nearly $500,000. The quick change in strategy signals a potential downtrend as the token's value dropped to $0.5972, before rebounding to $0.6977 today.