Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 25, 2024

Crypto Market Update

Table of Contents

Market and Trading Updates

• Whale Investors Drive Bitcoin Closer to $65K Resistance
• Ethereum Stagnates Amidst Speculation and ETF Delays
• Bitcoin ETFs See Fourth Consecutive Day of Net Inflows
• Chainlink Predicts $10 Trillion Tokenized Asset Market by 2030
• Golem’s $337M Ethereum Move Sparks Community Panic
• Vitalik Buterin Praises Celo for Surpassing Tron in Stablecoin Use

Banking and Institutional Developments

• Visa Launches Blockchain Platform With BBVA
• Société Générale Partners With Bitpanda for Euro Stablecoin
• Assetera and Polygon Launch Europe’s Tokenized Asset Market
• Hermetica Launches Synthetic Dollar USDh on Stacks L2

Regulatory and Legal Updates

• SEC Accuses TrueUSD of Misleading Investors Since 2022
• Congress Urges SEC to Allow Banks to Custody Crypto
• Caroline Ellison Sentenced for Role in FTX Collapse
• MakerDAO Pauses Wrapped Bitcoin Offboarding Amid Concerns

Crypto Exchange and Platform News

• Binance Offers Pre-Market Spot Trading and Aids Scam Probe
• Hamster Kombat Reveals Roadmap, Token Buybacks, and Airdrop
• WalletConnect Launches WCT Token Airdrop to Boost Engagement
• Jupiter DEX to Vote on 215M Token Airdrop Distribution
• Wintermute Proposes $145M Allocation for Arbitrum Partnerships

Technology and Innovation

• Theta Labs Introduces EdgeCloud for Mobile Users
• XProtocol Introduces Blockchain-Operated DePIN Smartphone
• A16z’s AminoChain and Citrea Secure Major Investments

Country-Specific Developments

• eToro Enables Direct Crypto Trading for German Users
• Worldcoin Expands World ID Verification to Three New Countries

Security and Hacks

• WazirX Hacker Nears Laundering of $230 Million in Stolen Funds
• Banana Gun Promises Full Refund After $3M Hack

Platform Policy Changes

• Telegram Wallet Restricted for UK and U.S. Amid Restructuring

Whale Investors Drive Bitcoin Closer to $65K Resistance

Bitcoin approached $64,755 driven by whale investors who accumulated $270 million worth of BTC, balancing out miner sell-offs of $16 million, but it has lost momentum and fell close to $63,000 at the end of the day. Meanwhile, the M2 money supply grew by nearly 1% in August, aiding asset price increases like the S&P 500 hitting 5,735 and gold reaching $2,670. Bitcoin still faces resistance at $65,000 with significant sell orders, despite bullish macroeconomic trends like central bank easing in the U.S. and China. Traders are cautiously optimistic about a potential breakout, with comparisons to previous price "chops" hinting at possible gains in October.

Ethereum Stagnates Amidst Speculation and ETF Delays

As of November 2023, Ethereum's transaction demand is primarily driven by speculative activities, with decentralized exchanges like Uniswap accounting for over 90% of fees, according to CoinShares. Despite the network's expanded ecosystem, Ether's value has stagnated between $2,500-$2,700. Polymarket bettors overwhelmingly (85%) doubt Ethereum will hit a new all-time high by 2024. The SEC delayed its decision on Ethereum ETF options to November, further impacting market sentiment amidst regulatory scrutiny.

Bitcoin ETFs See Fourth Consecutive Day of Net Inflows

On September 25, 2024, US spot bitcoin ETFs saw their fourth consecutive day of net inflows, totaling $136 million. BlackRock's IBIT led with $98.8 million in inflows, while ether ETFs returned to positive daily flows of $62.51 million. Yesterday’s inflows totaled 2,132 BTC, with IBIT making up 1,548 BTC, according to HeyApollo data. This amount is nearly five times the daily mined supply of approximately 450 BTC.  

Chainlink Predicts $10 Trillion Tokenized Asset Market by 2030

Chainlink's report predicts the tokenized asset market to reach $10 trillion by 2030, drawing on insights from 21.co and a joint study by BCG and ADDX. Key findings include the current value of tokenized assets at $118.57 billion, primarily dominated by Ethereum. The report highlights factors contributing to market growth, such as institutional interest, blockchain integration, and a supportive regulatory framework. Despite a positive outlook, challenges related to audit standards, asset valuation, and regulatory compliance may impede the market's $10 trillion forecast. Ongoing lawsuits to crypto firms like Coinbase by the United States Securities and Exchange Commission may also present obstacles.  

Golem’s $337M Ethereum Move Sparks Community Panic

Golem moved 135,000 ETH worth $337 million to Coinbase and Binance for a solo staking test, not for a massive sell-off. The use of centralized exchanges was crucial for a controlled environment. Although reassured later, delayed communication worsened community speculation. Increased transparency could have averted the initial panic.

Visa Launches Blockchain Platform With BBVA

Visa has launched the Visa Tokenized Asset Platform (VTAP) to assist banks in issuing fiat-backed tokens and exploring blockchain use cases on platforms like Ethereum. The key highlight is the planned live pilot with Spanish bank BBVA in 2025. This enables the creation of fiat-backed tokens powered by smart contracts for real-world asset exchange. 

Vitalik Buterin Praises Celo for Surpassing Tron in Stablecoin Use

Vitalik Buterin praised the Celo blockchain for surpassing Tron in stablecoin active addresses in September 2024. This uptick was driven by popular apps like Minipay and Valora. Celo's transition from a standalone EVM-compatible Layer 1 to an Ethereum Layer 2 blockchain is set to enhance its network capabilities and integrate more closely with Ethereum, empowering the community for innovation. Additionally, major stablecoin issuers like Tether and Circle contributed to the surge in Celo's adoption, leading to a significant price surge of over 25% to $0.678 along with a 700% increase in daily trading volumes.  

Société Générale Partners With Bitpanda for Euro Stablecoin

Société Générale, a prominent French bank, has partnered with Bitpanda to offer EUR CoinVertible, a Euro-denominated stablecoin. The collaboration aims to enhance the global adoption of the stablecoin. They are working towards integrating digital assets into European markets, emphasizing the potential of stablecoins in bridging traditional finance and the digital asset economy. Furthermore, SG-FORGE plans to launch EUR CoinVertible on the Solana network to enable fast, secure, and low-cost digital transactions.  

Assetera and Polygon Launch Europe’s Tokenized Asset Market

Assetera collaborates with Polygon to launch Europe’s inaugural tokenized RWA market, utilizing Ethereum's Polygon network for sustainable growth. The platform democratizes financial services with regulated, smart contract-driven trading of tokenized assets. By opting for Polygon, Assetera ensures scalability and security, fostering partnerships with major web3 projects to enhance liquidity and asset listings. 

Hermetica Launches Synthetic Dollar USDh on Stacks L2

Hermetica's synthetic dollar USDh integrates into Stacks L2, offering a 25% yield, paving the way for Bitcoin DeFi, tapping into the $360 billion opportunity, and securing $2 million in TVL. Nomic's nBTC launch on Berachain streamlines Bitcoin use in DeFi. The integration uses a proof-of-liquidity model, enabling direct BTC conversions and creating opportunities for innovative DeFi products.

SEC Accuses TrueUSD of Misleading Investors Since 2022

The SEC alleged that TrueUSD (TUSD) hasn't been fully backed by U.S. dollars since 2022. TrustToken and TrueCoin, charged with misleading investors, settled with the SEC by paying $700k. By September 2024, 99% of TUSD’s collateral was invested in speculative offshore funds, often facing redemption delays. TUSD’s market cap plummeted 87%, and it depegged from USD in early 2023. Rumors link Justin Sun to TUSD ownership. TrustToken and TrueCoin’s penalties included $163k each in fines and over $340k in disgorgement.

Congress Urges SEC to Allow Banks to Custody Crypto

42 US Congressmen are pressuring the SEC to permit banks to custody cryptocurrency, opposing SAB 121's guidelines, arguing it contradicts accounting norms, and urging to expand investor options. Meanwhile, SEC Chair Gensler keeps facing criticism for omitting digital assets from testimony amid calls for clear crypto regulations. Concerns included enforcement methods, lack of guidelines, and regulatory uncertainties highlighted by lawmakers.  

Caroline Ellison Sentenced for Role in FTX Collapse

Caroline Ellison, former Alameda Research CEO, was sentenced to two years in prison for her involvement in the FTX collapse. Despite her cooperation and role in convicting Sam Bankman-Fried, she was ordered to forfeit $11 billion. Judge Kaplan emphasized accountability over leniency, signaling a strict stance against financial crimes.

MakerDAO Pauses Wrapped Bitcoin Offboarding Amid Concerns

Sky, formerly Maker, reconsiders offboarding Wrapped Bitcoin (WBTC) after BA Labs advises pausing the plan due to clarified concerns with BitGo's role. With commitments from BitGo to notify changes in WBTC custody and keys, an executive vote on the new recommendation is scheduled for Oct. 3. WBTC exposure decreased to $170 million.  

Binance Offers Pre-Market Spot Trading and Aids Scam Probe

Binance has introduced a groundbreaking pre-market spot trading service, offering users early access to tokens before official listings. Unlike competitors, Binance's service involves trading "actual tokens" rather than derivatives. It operates in collaboration between Binance Spot and Binance Launchpool, allowing users to trade selected tokens with restrictions until the official listing. It came as Binance partnered with India’s Enforcement Directorate to aid in uncovering a $47.6 million gaming scam. Victims were enticed into online betting and gaming, only to have their funds seized. Binance provided crucial intelligence that traced the funds and led to the arrest of four individuals.

Hamster Kombat Reveals Roadmap, Token Buybacks, and Airdrop

Hamster Kombat revealed its roadmap through 2025, focusing on NFT integration, new games, and token buybacks. As of September 26, 2024, Hamster Kombat had over $14.1 billion locked on Binance Launchpool, with 1.3 million users engaging in BNB staking. The project has onboarded over 300 million users and prepares for a major airdrop, with 131 million eligible participants. Binance supports the game’s growth, and trading for the HMSTR token started on September 26, 2024, at 12 UTC.

WalletConnect Launches WCT Token Airdrop to Boost Engagement

WalletConnect is launching a WCT token airdrop, aiming to boost user engagement and decentralization. 50 million WCT tokens will be distributed to users who register by October 17, 2024, based on their activity within the WalletConnect ecosystem. The tokens allow for proposing and voting on network changes, promoting community engagement and incentivizing contributions.  

Jupiter DEX to Vote on 215M Token Airdrop Distribution

Jupiter DEX plans to vote on the excess 215M JUP tokens from a recent airdrop, constituting around 6% of the circulating supply. The options include using them for Active Staking Rewards, burning them for deflation, or storing in a multi-sig wallet. Community engagement and voting play a pivotal role in decision-making.  

Wintermute Proposes $145M Allocation for Arbitrum Partnerships

The Wintermute Governance proposal suggests allocating 250 million ARB, approximately $145 million, from the Arbitrum DAO to enhance the Arbitrum Foundation’s Strategic Partnership Program. With a 99% approval rate in the current vote, the Foundation's proven track record, $3.6 billion TVL, and previous successful partnerships form the basis for the proposal.  

Theta Labs Introduces EdgeCloud for Mobile Users

Theta Labs introduces 'EdgeCloud for Mobile,' enabling Android users to contribute spare GPU power to the Theta EdgeCloud network and earn TFUEL tokens. The app supports AI research in various fields by leveraging a decentralized infrastructure that cuts GPU costs by over 50%. Additionally, it implements VOD_AI for video object detection on consumer-grade mobile devices. 

XProtocol Introduces Blockchain-Operated DePIN Smartphone

XProtocol, leveraging the Ethereum layer-2 network Base, introduces XForge as the pioneering node-operated DePIN smartphone, merging blockchain capability with mobile convenience. Users engaging with the DePIN network through XForge can earn rewards and crypto incentives. This innovative Android device marks a significant advancement by enabling direct participation in blockchain operations. 

A16z’s AminoChain and Citrea Secure Major Investments

A16z's first DeSci investment AminoChain raised $7M, connects medical institutions, built a decentralized biobank, and a Layer 2 network. Citrea secures $2.7M seed funding from Galaxy Digital, driving Bitcoin as settlement layer, pioneering DeFi through innovative technologies. Initia, a Layer 1 blockchain and a platform for interwoven optimistic rollups, raises $14M in a Series A, bringing the fully diluted token valuation to $350M.

eToro Enables Direct Crypto Trading for German Users

eToro has launched direct crypto trading in Germany through a partnership with DLT Finance, enabling spot trading for German users. The new service offers features like limit orders and stop-loss options. Privacy and security remain a priority, and users must accept updated terms and complete the verification process to access the new features.  

Worldcoin Expands World ID Verification to Three New Countries

Worldcoin has expanded its World ID verification to Guatemala, Malaysia, and Poland to address the growing demand for secure online identity verification and combat AI-driven fraud. The introduction of the Face Auth feature adds an extra layer of security to the verification process, ensuring only verified users can access their World App wallet.  

WazirX Hacker Nears Laundering of $230 Million in Stolen Funds

The WazirX hacker is close to laundering $230 million stolen funds using Tornado Cash. Only $6 million worth of ether remains. WazirX, compromised by the hack, struggles with fund recovery and criticism. Binance denies involvement. The exchange filed for restructuring with over 45% of its reserves stolen. Recovery efforts face limited success and criticism. 

Banana Gun Promises Full Refund After $3M Hack

Banana Gun confirmed a $3 million loss from a hack targeting experienced traders, ultimately affecting 11 users. The attack exploited a vulnerability in the trading system, prompting the company to disable its bots. All affected users will receive full refunds without selling tokens. Enhanced security measures were implemented to prevent future attacks, emphasizing user protection and trust restoration.  

Telegram Wallet Restricted for UK and U.S. Amid Restructuring

The temporary restriction on the Telegram Wallet for UK and U.S. users is due to a corporate restructuring and regulatory adjustments. Users can withdraw funds without fees during this period. Telegram's policy changes and data sharing with authorities aim to deter criminal activities, emphasizing user protection and discontinuation of certain platform features.