Coin360 Daily Dispatch (Apr 26, 2023): Crypto Market Updates & Highlights
Apr 26 2023
Crypto Market Update: US Crypto Community Accuses SEC Chairman Gary Gensler of Hypocrisy Over Cryptocurrency Classification
Written by Van - Perfected by ChatGPT
The US crypto community has accused Gary Gensler, Chairman of the Securities and Exchange Commission, of hypocrisy after a video of him from 2018 emerged in which he said cryptocurrencies were not securities. Gensler was a former professor at Massachusetts Institute of Technology before he became chair of the SEC. The video shows Gensler stating that “three-quarters of the market is non-securities, it’s just a commodity, cash, crypto.” Gensler’s view has prompted criticism from some quarters of the crypto community, including Erik Forhees, founder of ShapeShift and Farokh Sarmad, founder of Web3 podcast Rug Radio.
Apple Removes Bitcoin White Paper from Latest MacOS Beta Version
Apple has removed the original Bitcoin white paper from its latest beta version of MacOS, while a US appeals court has ruled that Apple violated California’s Unfair Competition Law by prohibiting developers from using alternative payment methods besides Apple’s App Store. The decision could open up the possibility for direct purchases of NFTs through iOS apps and use of cryptocurrency in app transactions.
Binance.US Drops $1.3 Billion Voyager Digital Purchase Plan Amidst Regulatory Uncertainty
Binance.US has abandoned plans to purchase crypto lender Voyager Digital for $1.3 billion, citing a “hostile and uncertain regulatory climate” in the US. Voyager confirmed it would now proceed with direct distributions to customers from its Chapter 11 plan. The US federal government had previously approved Binance’s bid to buy up the remaining assets of Voyager but the SEC and New York’s financial regulator had attempted to halt the deal.
Deloitte to Hire 300 Cryptocurrency Experts in Bid to Expand Expertise in Booming Industry
Deloitte is seeking to employ 300 cryptocurrency experts in the US, with most of the job options having been posted a week ago, based on LinkedIn data. Almost all top accounting exchange “Big Four” companies are looking for professional candidates with expertise in the burgeoning field. Deloitte’s job titles in this area include Blockchain & Digital Assets Manager, Tax Manager, Blockchain & Cryptocurrency, and Tax Manager, Blockchain & Cryptocurrency in NFTs.
Google’s Cloud Storage-Based Solution to 2FA Raises Security Concerns
Google’s update to its authenticator app, which allows users to retain access to two-factor authentication (2FA) by storing a “one-time code” in its cloud storage, has been criticised for making users more vulnerable to hackers. Cybersecurity developer Mysk and a Reddit user have both warned of the additional complications with Google’s cloud storage-based solution to 2FA. This could prove problematic for users who rely on 2FA to access crypto-exchange accounts and other financial services. SMS 2FA is considered the “least secure” form of authentication by Coinbase, which encourages the use of authenticator apps.
Miami International Holdings Subsidiary M7 Holdings to Acquire FTX’s LedgerX for $50M
Miami International Holdings (MIH) subsidiary M7 Holdings is set to acquire FTX’s US-based crypto derivatives exchange LedgerX for $50m, subject to court approval. MIH’s exchange, Miami International Securities Exchange, introduced a suite of crypto derivatives last year after partnering crypto data provider Lukka. The deal is expected to enhance MIAX’s crypto footprint. FTX’s US affiliate acquired LedgerX last year for an undisclosed sum.
RLB NÖ-Wien and Bitpanda Partner to Offer Cryptocurrency Investment Services
Austrian cooperative banking company Raiffeisenlandesbank Niederösterreich-Wien (RLB NÖ-Wien) is launching cryptocurrency investment services through a partnership with Bitpanda. The move forms part of a broader move to offer investment services to its customer base and will allow RLB NÖ-Wien’s customers to invest in various assets with one euro or more. Bitpanda will provide the software as a service to allow the purchases of over 2,500 assets, including bitcoin and ether. Trading is expected to be available by the end of the year.
Decentralized Exchange MerlinDEX Hacked, Loses $1.4M in Stablecoin USDC
Decentralized exchange (DEX) MerlinDEX, based on Ethereum’s layer 2 protocol zkSync and audited by CertiK, was hacked, leading to the loss of $1.4 million in stablecoin USDC. CertiK claims it was a potential private key management issue rather than an exploit, and it is investigating. Blockchain security firm Peckshield has reported that the hacker is already sending some of the stolen funds to exchanges. MerlinDEX has urged users to revoke their wallets/sign permission and follow its instructions.
Phantom Wallet Adds Support for Ethereum and Polygon on All Platforms
Phantom Wallet, the leading retail-facing self-custody cryptocurrency wallet on Solana, announced support for Ethereum and Polygon for all browsers, Android, and iOS users. The wallet aims to provide a convenient way for users to manage their assets across various networks and offers additional tools for interacting with assets while providing a powerful user experience.
Bitcoin Nears $30,000 Amid US Banking Woes and Inflation in Argentina
Bitcoin nearly touched \(30,000 as US banking woes fueled investor uncertainty. First Republic Bank's \)100 billion deposit reduction saw former BitMEX CEO Arthur Hayes predict a dangerous chain reaction of insolvencies, benefitting both Bitcoin and gold from lack of clarity. This also led to expectations for the Federal Reserve to inject more money into the economy. In Argentina, Bitcoin’s value against the peso has reached over ARS 6.3 million due to spiraling inflation.
Over \(48 million in short positions were [liquidated](https://www.coinglass.com/LiquidationData) in the past four hours as Bitcoin surged 8.7% to trade near \)29,700. Binance and OKX saw the most volume of short liquidations, with over \(11 million each. Some analysts forecasting consolidation next as “OI got properly wiped.” Others were confident of the overall uptrend, with one trader saying Bitcoin was ready for \)40,000 after passing the crucial breaker of $27,800.
Source: Byzantine General/ Twitter
Circle CEO Urges Congress to Address Concerns on US Dollar’s Survival
Circle has released a new protocol that allows for the transfer of USD Coin (USDC) between Ethereum and Avalanche without third-party bridges, aiming to tackle fragmentation in the Web3 ecosystem. However, the market value of USDC has declined from almost \(56 billion to just under \)31 billion since March, losing almost \(13 billion since \)3.3 billion in reserves used to underpin the stablecoin were lost in the defunct Silicon Valley Bank. Circle CEO Jeremy Allaire believes investors are de-risking out of the US due to regulatory and banking sector concerns and urges Congress to address concerns about the US dollar’s survival in light of blockchain technology.
XRP’s Market Capitalization Rises by $1.3 Billion Amid Market Correction Surge
XRP’s market capitalization has increased by \(1.3 billion to \)24.88 billion, making it the fourth largest cryptocurrency asset. The surge was caused by a 6.5% rise in XRP’s price, which had fallen due to a market correction. XRP’s price is currently at \(0.47, with potential to test the \)0.55-$0.6 zone. The outcome of the SEC lawsuit against Ripple will determine XRP’s future prospects, with no significant advancement noted as the deadline approaches.
Arbitrum Completes Distribution of $120 Million in ARB Tokens to Projects, Whales Increase Stakes
Arbitrum has completed a distribution of over \(120 million worth of its [ARB](https://coin360.com/coin/arbitrum-arb) tokens to projects built on its network. On-chain data shows 90 million ARB tokens were sent to over 131 decentralized autonomous organizations, with [NFT](https://coin360.com/nft) marketplace TreasureDAO and [GMX](https://coin360.com/coin/gmx-gmx) receiving the most at \)12 million. SushiSwap, Balance, Uniswap, Curve and Dopex also received allocations.
Large token holders, or whales, have been adding to their stacks of Arbitrum governance tokens. One address holding 1.95 million tokens, worth roughly \(2.7 million, received \)200,000 in ARB from Binance, while another address holding 1.78 million tokens, worth \(2.5m, purchased \)146,000 worth of ARB at $1.34 per token.
Solana Blockchain Teams Up with OpenAI’s ChatGPT for Enhanced Accessibility
Solana Blockchain will soon be accessible to OpenAI’s ChatGPT users through an open-source plugin. The feature will enable users to check wallet balances, transfer Solana-native tokens and buy nonfungible tokens. Users can retrieve a list of owned NFTs attached with metadata through the chatbot. Solana Labs plans to provide AI tool developers with $1 million in funding on the blockchain. Meanwhile, OpenAI announced on Apr 25 that ChatGPT users can turn off their chat history and download data through the chatbot’s “export” option, in compliance with privacy laws.
Avalanche’s Cortina Upgrade Boosts Innovation, But Investors Remain Skeptical
Avalanche’s Cortina Upgrade has been launched on its mainnet, bringing linearization for the X-Chain, simpler fee distribution for validators, and an increased 15M gas limit on the C-Chain for smart contracts and DeFi apps. The number of transactions has increased by 46% in the last 10 days, and the average TPS has increased to 22 from 15. However, despite this, investors showed more short positions than long on AVAX in the last 24 hours. At press time, AVAX is up 6.48%.
AWS Teams Up with Cronos Labs to Boost Blockchain Adoption in Web3 Sector
Amazon Web Services (AWS) has partnered with blockchain startup Cronos Labs to support development of DeFi, GameFi, SocialFi, and Infrastructure applications. The announcement triggered a 13% surge in the native token of CRO Protocol Labs. AWS and Cronos Labs seek to boost blockchain technology adoption in the Web3 sector. Meanwhile, rumors that Amazon plans to launch an NFT marketplace have surfaced again. Although the company’s CEO has expressed interest in NFTs, an Amazon spokesperson denied any immediate plans to accept cryptocurrencies as a means of payment.
AAVE’s Q2 On-Chain Metrics Indicate Negative Sentiment and Decline in Investor Interest
Aave’s Q1 revenue remained stable, with interest earnings of \(305,000 in Q1 despite a decrease in daily active users by 34%. Their [market cap](https://coin360.com/glossary/market-capitalization) exceeded \)1 billion with $350 million in outstanding loans, however, Q2 saw a decline in on-chain metrics indicating negative sentiment in the market. Investor interest was dampened with a considerable decline in supply held by top addresses, showing a reduction in trust in AAVE, while the total number of token holders increased. At the time of writing, token price declined by over 16% in the past week.
SUI Token Launches on May 3 Following Successful Token Sales
The SUI token, native to the Sui blockchain, will be released on May 3 following token sales on Bybit, OKX, and Kucoin. Each exchange offered 225 million tokens with a maximum allocation of 10,000 per user. Sui developers previously stated that there would be no token airdrop, disappointing some users. The first project to go live on the mainnet will be Suiswap, a decentralized exchange and liquidity staking protocol. Sui Network signed an agreement with Alibaba Cloud to improve user experience for blockchain validators.
Summary of Market Events and Price Action
As a summary of today’s events and price action in the market, it is crucial to note the following key points:
- SEC chair accused of crypto hypocrisy
- Apple drops Bitcoin paper
- Binance drops Voyager purchase amid regulation doubts
- Deloitte hiring 300 experts to expand crypto expertise
- Google’s 2FA solution raises security concerns
- M7 Holdings to acquire LedgerX for $50M
- Bitpanda and RLB NÖ-Wien offer crypto investment services
- MerlinDEX hacked, loses $1.4M in USDC stablecoin
- Bitcoin nears $30,000 amid US banking woes
- XRP’s market cap rises $1.3B amid market correction
- Arbitrum distributes $120M in ARB tokens to projects
- Solana partners with ChatGPT for enhanced accessibility
- Avalanche upgrade boosts innovation, investors skeptical
- AWS teams up with Cronos Labs for blockchain adoption
Top Altcoin Gainers and Losers
Gainers:
Render Token RNDR (+31.77%)
Radix XRD (+28.32%)
Injective INJ (+25.16%)
Losers:
XDC Network XDC (-0.31%)
Tether Gold XAUT (-0.21%)
Binance USD BUSD (-5.19%)
NFT Market Map
Blockchain-enabled mobile video game NFL Rivals, which allows users to trade NFL player non-fungible tokens (NFTs), has launched on the Polkadot blockchain. The first NFL licensed crypto game will be the first blockchain-powered mobile video game to access the “highly lucrative market of mobile gaming,” according to Mythical CEO John Linden, who said an audience in excess of 10 million players is hoped for this year. The game’s soft launch attracted 150,000 players, and it can be downloaded from Apple and Google stores.
