Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 3, 2024

Crypto Market Update

Table of Contents

Bitcoin and Ethereum Updates

• Bitcoin Dips Below $58K Amid Economic Concerns
• Ethereum Revenue Drops 99% After Upgrade

Regulatory and Legal Matters

• SEC Charges Galois Capital Management Over FTX Losses
• Binance's Gambaryan Seeks Bail Amid Money Laundering Charges

New Products and Innovations

• 21Shares Introduces Secure 21BTC Wrapped Bitcoin
• Aave and Sky Launch New DeFi Integration
• Arbitrum Stylus Launches with WebAssembly Support

Market Trends and Developments

• Matter Labs Cuts Workforce Amid ZKsync Demand Drop
• Terraform Labs Moves $62M BTC Linked to Do Kwon
• Hacker Launders $6.5M from WazirX Theft
• Sonic Labs Integrates Chainlink Data Feeds and CCIP
• Ton Coin Price Crash Caused by API Glitch

Regional and Platform Updates

• SK Telecom and Hana Financial Invest in BitGo Korea
• Solana Foundation Defends Decentralization Claims

Community and Proposal Updates

• Justin Sun’s SunPump Implements Onchain Buyback
• Reddit Proposes Zero-KYC Mechanism for Crypto Transfers
• Vega Protocol to Retire Blockchain and Launch NEB Token

NFT Market Insights

• Report Shows 96% of NFTs Are 'Dead'

Bitcoin Dips Below $58K Amid Economic Concerns

Bitcoin dropped below $58K, with Ether at a 7-month low, driven by poor U.S. economic data and inflation concerns. Analysts from Bitfinex predicted a potential 20% BTC decline post-Fed rate cuts but viewed September's price dip as a buying opportunity. Meanwhile, a whale accumulated over $500M in BTC, signaling bullish sentiment, while QCP Capital forecasted a potential rally in October, highlighting the historical trend of nearly 30% gains. Despite bearish September trends, the period from October to April has historically yielded strong returns for BTC.

Ethereum Revenue Drops 99% After Upgrade

Ethereum's revenue plummeted 99% post-Dencun upgrade due to increased competition from Layer-2 (L2) scaling solutions. The upgrade reduced transaction fees for L2 solutions, leading to a dramatic drop in Ethereum's network revenue. Additionally, the reduced demand for ETH raised its supply and challenged the deflationary narrative, making Ethereum an inflationary currency again.  

SEC Charges Galois Capital Management Over FTX Losses

The US SEC charged Galois Capital Management for violating the Investment Advisers Act, as it held crypto assets with FTX instead of a qualified custodian. Approximately half of the fund's assets were lost due to FTX's collapse. Galois misled investors about redemption policies. The firm will pay a $225,000 fine, benefitting harmed investors, and received formal censure. 

Binance's Gambaryan Seeks Bail Amid Money Laundering Charges

Binance's Tigran Gambaryan seeks bail in Nigeria due to deteriorating health conditions while facing money laundering charges. Medical records indicate a need for surgery, but crucial reports are missing. Binance CEO and Gambaryan's wife plea for his release, emphasizing his non-decision-making role in the company. Nigerian authorities blame Binance's exchange facility for crashing the Naira's value by over 50%.  

21Shares Introduces Secure 21BTC Wrapped Bitcoin

21Shares launches 21BTC, a secure Wrapped Bitcoin (WBTC) alternative on Ethereum, offering cold storage of Bitcoin without bridge requirements. Addressing WBTC's challenges, 21BTC focuses on security and interoperability, partnering with Flow Traders for added security protocols. The launch aims to enhance DeFi integration and liquidity, benefiting from the Onyx platform's efficient asset management. 

Aave and Sky Launch New DeFi Integration

Aave and Sky collaborate through the Sky Aave Force to integrate USDS and sUSDS on Aave, enhancing DeFi yield opportunities. Sky's proposal introduces Sky Savings Rate incentives, pre-airdrop of SPK token, and a Direct Deposit Module for Aave's Lido Market, aiming to boost USDS adoption and broaden RWA integrations, fostering growth and revenue synergy. 

Arbitrum Stylus Launches with WebAssembly Support

The mainnet launch of Arbitrum Stylus by Offchain Labs enables DApp development with WebAssembly languages, improving performance and reducing gas fees. Stylus allows developers to use familiar coding languages, running programs up to 70 times faster than EVM. Meanwhile, the upcoming Arbitrum Security Council election, occurring every six months, aims to reinforce blockchain governance. Despite a recent 2.97% ARB price drop, the election could impact cryptocurrency value significantly. 

Matter Labs Cuts Workforce Amid ZKsync Demand Drop

Matter Labs, the creator of Ethereum Layer 2 protocol ZKsync, downsized its workforce by 16% due to a significant drop in demand for its ZKsync Era protocol. Active ZKsync users decreased from 455,000 in April to around 92,620. The move aims to realign operations with market changes, especially the rise in demand for ZK Chains amidst challenging times for Matter Labs due to decreasing ZKsync activity.  

Terraform Labs Moves $62M BTC Linked to Do Kwon

Terraform Labs wallet moved $62M BTC, linked to co-founder Do Kwon, amid legal turmoil. Kwon faces extradition with unclear responsibility for the recent $62M Bitcoin transfer. Legal battles in US and South Korea involve fraud and bankruptcy charges, with a settlement agreement of $4.5 billion. Situation remains uncertain as court proceedings continue.  

Hacker Launders $6.5M from WazirX Theft

On September 3, the hacker who stole over $235 million from Indian crypto exchange WazirX moved $6.5 million through Tornado Cash to launder the stolen funds. Blockchain security firm Cyvers revealed this transaction, highlighting 26 transfers totaling 2,600 ETH. WazirX also accelerated the withdrawal period, allowing users to access 66% of their balances in INR tokens.  

Sonic Labs Integrates Chainlink Data Feeds and CCIP

Sonic Labs, formerly Fantom Foundation, has integrated Chainlink Data Feeds and CCIP through the Chainlink SCALE program. This empowers Sonic developers to create secure, scalable DeFi apps, and facilitates blockchain interoperability. Chainlink's product suite, including Data Feeds and CCIP, provides robust security, reliability, and a proven track record within leading DeFi protocols. 

Ton Coin Price Crash Caused by API Glitch

After suffering a 94% plunge due to a CoinMarketCap glitch, the TON's price rapidly plummeted from $5.28 to $0.31, causing significant community panic. A faulty API caused the pricing discrepancy, leading to a sell-off and a subsequent 7.48% decline. Amidst negative market sentiment, caution is advised, especially with ongoing concerns about hacks and arrests.  

SK Telecom and Hana Financial Invest in BitGo Korea

South Korea's telecom and financial giants, SK Telecom and Hana Financial, acquired significant shares in BitGo Korea, aiming to institutionalize cryptocurrency in South Korea. BitGo is in the process of obtaining a virtual asset service provider license. The country's significant role in the global cryptocurrency market is evident from its most-traded fiat currency pair status. 

Solana Foundation Defends Decentralization Claims

The Solana Foundation's defense of decentralization centered around the argument that coordinating a patch does not equate to centralization, given the network's 1,500 block-producing nodes operated by individual entities. This rebuttal came in response to claims of centralized network operations and cited the network's validators and open-source patch coordination. 

Justin Sun’s SunPump Implements Onchain Buyback

Justin Sun's SunPump community decided to implement a 100% onchain buyback and burn process, moving away from burning liquidity pool tokens due to community misunderstanding. This new approach aims for transparency and simplicity, eliminating complexities of LP token burning. SunPump also surpassed Pump.fun's daily revenue and token creation. 

Reddit Proposes Zero-KYC Mechanism for Crypto Transfers

A Reddit user has proposed the "Zero-KYC Assurance Mechanism for Fiduciary Money Transfer" (ZKAM-FMT) to enhance security in P2P crypto markets without relying on traditional KYC processes. ZKAM-FMT aims to prevent MitM scams, addresses the balance between security and privacy, and involves challenges in integrating with banking websites. The proposal offers a fresh approach to scam prevention but faces implementation challenges. Additionally, it raises the debate around KYC and age-based fraud prevention in the crypto industry.  

Vega Protocol to Retire Blockchain and Launch NEB Token

Vega Protocol plans to retire its blockchain and introduce a new token, NEB, through the Nebula project. The proposal includes suspending VEGA token support, offering NEB token swaps, and providing incentives for validators. Despite strong voter support, criticisms on dilution have surfaced. VEGA token's price has declined significantly, impacting its market performance.