Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 30, 2024

Crypto Market Update

Table of Contents

Crypto Market Overview

• Bitcoin Faces Mixed Market Outlook Amid Q4 Speculation
• Vitalik Buterin Pushes for Ethereum Alignment
• Crypto Funds See $1.2B Inflows, Led by Bitcoin ETFs
• FTX Token Surges on False Repayment Rumors

Crypto Exchanges and Platforms

• Bithumb Plans Nasdaq Listing in 2025
• Binance’s Zhao Eyes Blockchain, AI, and Biotech
• Binance and Coinbase List New Token Eigen
• Ethena Community to Vote on Ethereal DEX Integration
• Zilliqa Network Faces Critical Bugs, Plans Fix

DeFi and Blockchain Projects

• Trump-Endorsed WLFI Project Launches KYC for Investors
• ANZ Partners with Chainlink, ADDX for Tokenized Assets
• Kin Capital Launches $100M Tokenized Real Estate Fund
• Onyx Protocol Restructures After $3.8M Exploit

Token Sales and Unlocks

• October Sees $1.3B Token Unlocks for Sui, Aptos, Celestia
• GraFun Launchpad Generates $250M in Trading Volume
• SEC Charges Mango DAO Over Unregistered MNGO Sales

Layer-1 Blockchain Developments

• TON Captures Over 50% of Layer-1 Transactions
• Christie’s Auctions First Bitcoin Ordinal, "Ascend"

Country-Specific Crypto Developments

• Ohio Senator Proposes Crypto for State Tax Payments

NFT Market and Gaming

• NFT Sales Plummet in September Amid Market Scrutiny
• Pudgy Penguins Launches Arcade Game to Boost NFT Appeal

Bitcoin Faces Mixed Market Outlook Amid Q4 Speculation

Bitcoin faces a mixed market outlook. Currently trading at around $63,400, it saw a 3-week winning streak but corrected after encountering resistance at $66,000. Analysts predict a bullish Q4, citing an 82% historical probability, with potential for Bitcoin to surpass $75,000. Despite this, retail interest remains low, with Coinbase app downloads ranking 438, and short-term holders in decline. Social sentiment is notably bullish, almost double bearish posts, potentially hindering an all-time high. Institutional flows into Bitcoin ETFs increased, signaling possible rally continuation, though caution is advised amidst market volatility and sentiment shifts.

Vitalik Buterin Pushes for Ethereum Alignment

Vitalik Buterin proposed "Ethereum Alignment" to unite the ecosystem. He defines key metrics including open source and standards, decentralization, security, and positive-sum contributions to Ethereum. Buterin envisions the need for independent entities like L2beat to track the alignment criteria to maintain decentralization and inclusivity in the Ethereum ecosystem. 

It came as both Buterin and the Ethereum Foundation have been offloading their ETH balance. In late September, Vitalik Buterin transferred 649 ETH to Paxos, adding to his ongoing selloff streak totaling 1,300 ETH in 12 days. The Ethereum Foundation has also sold over $10 million worth of ether this year, with a recent sale of 100 ETH contributing to the total.

Crypto Funds See $1.2B Inflows, Led by Bitcoin ETFs

Crypto funds experienced significant inflows, totaling $1.2 billion, primarily driven by U.S.-based Bitcoin ETFs. This surge was led by BlackRock’s ETFs, which now hold 924,768 BTC. Bitcoin ETFs now account for over 4% of Bitcoin's total supply, becoming the second-largest holders after Satoshi Nakamoto. Additionally, Ethereum funds broke a five-week outflow trend, adding $87 million, signaling renewed investor interest in digital assets.

FTX Token Surges on False Repayment Rumors

The native token of bankrupt FTX, FTT, surged by 50% fueled by false rumors of upcoming repayments, reaching a value of $2.75, notably retracing to $1.88. This surge, attributed to FTX's bankruptcy proceedings, led to a 56% increase over the past week and a 71% rise in the last month, with trading volume exceeding $360 million. 

Despite false repayment rumors, the court has not approved any repayment plan, and a scheduled hearing on FTX’s restructuring plan is set for Oct. 7, with potential repayments for claimants under $50,000 by late 2024. FTX's proposed repayment plan, facing resistance from creditors, allocated 18% of proceeds to special shareholders, causing considerable outrage among creditors, with expectations of recovering only 10-25% of their assets.

Bithumb Plans Nasdaq Listing in 2025

Bithumb, South Korea’s second-largest crypto exchange, revealed plans for a potential Nasdaq listing in the second half of 2025, appointing Samsung Securities as its primary underwriter. This new IPO initiative follows its unsuccessful attempt to list on Korea’s KOSDAQ market in 2020. Bithumb reported robust earnings in the first quarter of 2024 and holds a significant market share in South Korea’s crypto market. If successful, Bithumb will join a limited number of crypto firms pursuing public listings in the US, emphasizing crypto's growing role as a legitimate asset class.  

Binance’s Zhao Eyes Blockchain, AI, and Biotech

Changpeng Zhao, Binance's founder and former CEO, plans ambitious investments in blockchain, AI, and biotech. His Giggle Academy initiative offers free grade 1-12 education, blending gamification and blockchain. Zhao's charity focus and book writing aim to make a positive impact. BNB price fluctuations coincided with CZ's release, reflecting his continued influence. 

Binance and Coinbase List New Token Eigen

Binance and other exchanges announced the listing of Eigen layer (EIGEN) on October 1st, 2024, supporting spot trading for the asset, aligning with previous successful token listings. However, the seed tag assigned to EIGEN signifies high risk and volatility. Coinbase and BitMart also plan to list EIGEN, offering increased trading options for users.  

Ethena Community to Vote on Ethereal DEX Integration

The Ethena community is set to vote on integrating Ethereal DEX, seeking community approval to manage USDe stablecoin positions. Ethereal proposes a 15% token allocation to ENA holders. The DEX promises high-performance architecture capable of processing 1 million transactions per second. Integration could boost USDe liquidity and adoption within the Ethena ecosystem.  

Zilliqa Network Faces Critical Bugs, Plans Fix

The Zilliqa blockchain faced critical bugs from Sept 27-29, halting block production. Despite ongoing disruptions, the network is being restored for validators. Unrelated to Zilliqa 2.0 upgrade, a permanent fix is underway. Zilliqa’s recent troubles coincide with a drop in ZIL value and a partnership with EMURGO for increased interoperability.  

Trump-Endorsed WLFI Project Launches KYC for Investors

World Liberty Financial, endorsed by the Trump family, has introduced KYC verification on its website, limiting access to pre-qualified and accredited US investors due to regulatory constraints. The project's governance token, WLFI, will be distributed with 63% available to the public. Donald Trump Jr. and Eric Trump promoted the DeFi project, aiming to make America a crypto stronghold. Traders on Polymarket have exchanged over $1 billion on the Trump vs. Harris market, with Harris leading by one point. 

ANZ Partners with Chainlink, ADDX for Tokenized Assets

ANZ Bank partners with Chainlink and ADDX to explore tokenized real-world assets within MAS's Project Guardian. The initiative aims to pioneer asset tokenization in various sectors globally. ANZ plans to leverage private blockchains to facilitate tokenized asset exchange, citing blockchain fragmentation as a challenge. Chainlink's CCIP technology is vital for scaling transactions with tokenized assets. 

Kin Capital Launches $100M Tokenized Real Estate Fund

Asset manager Kin Capital launches a $100 million tokenized real estate fund on Chintai Network, offering a 14%-15% target yield. The fund holds real estate trust deeds, with a $5 million initial tranche and a projected annual return of 14%-15%. Chintai, a blockchain focused on real-world assets, facilitates instant settlements.   

Onyx Protocol Restructures After $3.8M Exploit

After a $3.8 million exploit, Onyx plans toaunch Onyx Core, supported by the community. Proposal OIP-46 garnered unanimous community backing on September 29 and will be implemented on October 1. The restructuring involves shutting down the Ethereum-based lending market, reimbursing lenders, and introducing a revised white paper. Onyx Protocol will run as a closed-ended lending protocol on Onyx Core. Additionally, the proposed restructuring aims to secure Onyx Protocol from future attacks. In the first three quarters of 2024, losses from crypto hacks exceeded $2.1 billion, with centralized finance operators being the biggest target.  

October Sees $1.3B Token Unlocks for Sui, Aptos, Celestia

In October, Celestia, Sui, and Aptos are set to unlock $1.3 billion worth of tokens. Sui will release 64.19 million tokens on October 1. Aptos will unlock 11.3 million tokens on October 11, while Celestia's 175.56 million token unlock on October 30 follows a $100 million funding round. 

GraFun Launchpad Generates $250M in Trading Volume

GraFun, a memecoin launchpad supported by Floki and DWF Labs, generated over $250 million in trading volume within 24 hours on PancakeSwap. Their "Fair Curve" model aims to reduce fraud and price manipulation. BabyBNB reached a $132 million market cap post-launch and was listed on MEXC and Gate. Floki owns over 40% of GraFun. The BNB chain is viewed as a potential hub for memecoin activity due to its speed, cost-effectiveness, and scalability, supported by a 6% surge in FLOKI's value after CoinDesk reported on the launch. 

SEC Charges Mango DAO Over Unregistered MNGO Sales

The SEC charged Mango DAO and Blockworks Foundation for unregistered sales of MNGO tokens, raising over $70 million. They acted as unregistered brokers, endangering investors by bypassing federal securities laws. The settlement includes a penalty of nearly $700,000, destruction of MNGO tokens, and a halt on future sales, awaiting court approval.  

TON Captures Over 50% of Layer-1 Transactions

In September 2024, The Open Network (TON) emerged as a leading Layer-1 solution, capturing over 50% of all Layer 1 transactions driven by major token launches. TON reached 212.5 million transactions but was overtaken by Solana. Bitget predicts "de-Telegramization" and expects strong performance from Toncoin despite a 45% TVL decline. TON's regulatory scrutiny due to Telegram's CEO arrest has caused price and TVL plunges. 

Christie’s Auctions First Bitcoin Ordinal, "Ascend"

Christie’s is auctioning the first Bitcoin Ordinal, "Ascend," by artists Ryan Koopmans and Alice Wexell, which is estimated to bring in up to $65,000. The 1-of-1 piece was created as part of The Wild Within project and portrays a decaying sanatorium in Georgia, inscribed on a satoshi mined on March 24, 2021. The Ordinals protocol allows non-financial data inscriptions on the Bitcoin blockchain, driving new projects and artwork. Bitcoin Ordinals saw a resurgence with significant collection gains last week. 

Ohio Senator Proposes Crypto for State Tax Payments

Ohio State Senator Niraj Antani introduced a bill to legalize Bitcoin and other cryptocurrencies for tax payments in Ohio and its local subdivisions. The legislation also allows state universities and public pension funds to invest in cryptocurrencies, aiming to promote technological advancement and economic development. This move reflects a growing interest in using crypto for state payments nationwide.