Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 14, 2023

Crypto Market Update

Written by Van

Table of Contents

Banking and Regulatory Updates

• FedNow Partners with Hedera-Based Dropp for Blockchain-Based Payments
• Coinbase Enters Canadian Market with Peoples Trust Collaboration
• Bitcoin Price Momentum and Market Analysis
• Digital Asset Funds Rebound with $28.5 Million Inflows

Crypto Exchanges and Platforms

• DAI Stablecoin Supply Reaches 5-Month High
• PayPal Launches Cryptocurrency Hub for Crypto Conversion
• Kraken Ventures Seeks $100 Million for Second Fund
• CoinDesk Lays Off 45% of Editorial Staff Amid Investment Deal
• Binance Lists CYBER and SEI, Prices Expected to Surge

Country-Specific Developments

• Former President Trump's Cryptocurrency Holdings Revealed
• Chinese Man Sentenced for Purchasing USDT

Market Trends and Analysis

• Bernstein Report Highlights Impact of Crypto ETFs
• Goldman Sachs Predicts Federal Reserve Interest Rate Cuts
• Whale Buys 1.27 Million Arbitrum Amid Price Decline
• Traders Flock to Memecoin HarryPotterObamaSonic10Inu

Crypto Projects and Innovations

• DeFiChain Founder Proposes Plan to Boost DFI Token Value
• Chiliz Plans Upgrades to Smart Contracts
• The Sandbox Unlocks $133 Million Worth of SAND Tokens
• Gemini's Exclusive XRP Giveaway Campaign
• Curve DAO Reduces Annual Emissions by 15.9%

Legal and Criminal Activities

• Zunami Protocol Suffers $2.1 Million Exploit
• Hut 8 Reports $18.3m Revenue Decline in Q2 2023
• Former FTX CEO Transferred to Federal Jail
• Viral Memecoin BALD's Deployer Moves ETH

NFT News

• Coca-Cola Launches "Masterpiece" NFT Collection on Base

FedNow Partners with Hedera-Based Dropp for Blockchain-Based Payments

Dropp, a micropayments platform built on the Hedera Hashgraph, has been added to the Federal Reserve's showcase for its payment service, FedNow. Dropp allows merchants to accept payments as low as a penny, making micropayments more accessible.

FedNow is a new instant payment service developed by the Federal Reserve. Although inclusion in the showcase suggests growing interest in distributed ledger technology, the Fed has stated that inclusion does not imply endorsement.

Coinbase Enters Canadian Market with Peoples Trust Collaboration

Coinbase has entered the Canadian market with a strategic collaboration with Peoples Trust Company, offering Interac payment rails to allow seamless Canadian Dollar deposits and withdrawals. Coinbase is offering a 30-day trial of its new subscription-based product, Coinbase One, to attract Canadian users.

The move comes after Binance withdrew from the Canadian market in May citing regulatory guidance as a hindrance to its continued operations. Coinbase sees Canada as a priority market with significant growth opportunity and is making significant investments to help Canadians access the benefits of cryptocurrency.

Bitcoin Price Momentum and Market Analysis

Bitcoin's price reached a four-day high near $29.6K, gaining momentum as the Wall Street trading week began. Despite the relatively flat weekend, there is speculation of increased activity in the market. Bitcoin is looking to surpass resistance at $29,700 for a potential breakout.

The US dollar's recent strength has stalled, potentially impacting crypto market performance. Traders anticipate a breakout or rejection in the stock market. The supply held by long-term Bitcoin (BTC) holders has reached a record high of 14.6 million BTC, demonstrating strong confidence in the asset.

Meanwhile, short-term holders have been selling their BTC, resulting in their supply dropping to a low of 2.56 million BTC. The overall market is experiencing low volatility, with the Bollinger Bands range at multi-year lows. Glassnode experts believe that the market may remain stagnant in the upcoming weeks, characterized by a lack of major price movements. 

Digital Asset Funds Rebound with $28.5 Million Inflows

Digital asset funds saw a rebound in inflows of $28.5 million last week, driven primarily by bitcoin. This comes after three weeks of outflows and is attributed to favorable U.S. inflation data, reducing the likelihood of a September rate hike.

XRP funds also continued their positive streak with 16 consecutive weeks of inflows, while other cryptocurrencies like Ether, Uniswap, and Solana also saw notable inflows. 

DAI Stablecoin Supply Reaches 5-Month High

The supply of the DAI stablecoin has reached a 5-month high of 5.35 billion. This increase comes as users, including Justin Sun and OlympusDAO, rush to take advantage of the higher returns in Maker deposits.

Maker's annualized revenue has also hit a two-year high of $165.4 million, as the DAI supply continues to rise. The rise in revenue can be attributed to the temporary increase in annual yields from 3.19% to 8% and the rise in the short-term US Treasury yield.

PayPal Launches Cryptocurrency Hub for Crypto Conversion

PayPal has announced a new feature that allows users to convert its stablecoin, PYUSD, and other crypto assets. The company has launched a Cryptocurrency Hub service that enables the sale and purchase of cryptocurrencies as well as other functionalities through PayPal and PYUSD.

PayPal's launch of the Cryptocurrency Hub service is not just as a move to gain a market foothold but also to influence the crypto price dynamics by enabling the sale and purchase of cryptocurrencies. It recently launched PYUSD, the first stablecoin from a major US financial institution, and the cryptocurrency hub will allow users to interact with Bitcoin and other cryptocurrencies.

Kraken Ventures Seeks $100 Million for Second Fund

Kraken Ventures, the venture capital arm of crypto exchange operator Kraken, is seeking to raise $100 million for its second fund. The firm's first fund closed at $65 million in 2021.

Despite a challenging climate for crypto VC, Kraken Ventures aims to support startups through their full journey from initial capital to IPO. The firm has a strong relationship with Kraken and has previous investments in staking infrastructure, liquid staking, custody, and Ethereum scaling.

CoinDesk Lays Off 45% of Editorial Staff Amid Investment Deal

Crypto media company CoinDesk has laid off 45% of its editorial staff as its parent company Digital Currency Group (DCG) plans to bring in strategic investors.

DCG is reportedly close to finalizing a $125 million deal to sell a stake in the company, led by crypto investor Matthew Roszak, while retaining a stake. CoinDesk's CEO stated that the layoffs were necessary for the company's financial stability and to proceed with the deal. CoinDesk is also looking for new investors for its crypto exchange Luno.

Binance Lists CYBER and SEI, Prices Expected to Surge

Binance announced to list CYBER and SEI on its exchange today. SEI has the backing of Coinbase Ventures and Jump Capital. CyberConnect is a web3 social network focused on digital identity and content control, while SEI is a general-purpose blockchain network with a unique consensus mechanism. The listing of CYBER and SEI on Binance is expected to significantly affect crypto coin prices, leading to speculations of a potential price surge.

Former President Trump's Cryptocurrency Holdings Revealed

Former US President Donald Trump reportedly holds between $250,000 and $500,000 in cryptocurrency, specifically Ethereum. The funds are connected to a cryptocurrency wallet that is believed to be linked to the non-fungible tokens (NFTs) his campaign launched as part of his 2024 bid for the White House.

This move undoubtedly contributes to the strength of the Ethereum market cap, despite his previously negative views on cryptocurrencies. In contrast, some Republicans, such as Miami Mayor Francis Suarez and Florida Governor Ron DeSantis, have been supportive of crypto adoption.

Chinese Man Sentenced for Purchasing USDT

A Chinese man named Mr. Chen has been sentenced to nine months in prison, deferred for a period of one year, and fined 5,000 yuan ($689) for purchasing 94,988 Chinese yuan ($13,067) worth of USDT for an acquaintance. The Fuzhou Mawei People’s Procuratorate convicted him of "offense of concealment and concealment of crime." The crackdown on cryptocurrency activities in China has been strict since the beginning of the year.

Bernstein Report Highlights Impact of Crypto ETFs

A report by brokerage firm Bernstein highlights the potential impact of crypto exchange-traded funds (ETFs) on cryptocurrency charts, stating they stimulate demand and attract investors. Bernstein projects that the spot Bitcoin ETF market could account for 10% of Bitcoin's market capitalization in the next two to three years. 

Goldman Sachs Predicts Federal Reserve Interest Rate Cuts

Goldman Sachs economists predict that the Federal Reserve may begin a series of interest rate cuts by the end of June 2024.

They believe that the current interest rate stance may be too restrictive and that the Fed may need to cut rates as inflation rates approach the central bank's target. This prediction is in line with market expectations.

The timing of the rate cuts could be positive for the Bitcoin market, particularly with the upcoming deadline for spot Bitcoin ETF filings and the Bitcoin halving in April 2024. However, it remains to be seen how macro events will continue to impact the Bitcoin price.

Whale Buys 1.27 Million Arbitrum Amid Price Decline

A whale spent $1.47m buying 1.27 million Arbitrum (ARB) over two days, according to Lookonchain. ARB's price has since declined by 1.72% to $1.14, and weakened by more than 2% against Bitcoin. However, its weekly performance remained in the green zone at +0.27%, and its market cap of $1.46bn ranked it as the 36th largest cryptocurrency.

Traders Flock to Memecoin HarryPotterObamaSonic10Inu

The lack of movement in the top ten cryptocurrencies has caused traders to flock to memecoins. HarryPotterObamaSonic10Inu is leading the rally, with a 25% surge in the past 24 hours. The token attributes its success to the collapse of the influencer coin meta and a new memecoin paradigm dependent on community creativity and marketing. The total market cap of the top ten memecoins is now $18.3 billion.

DeFiChain Founder Proposes Plan to Boost DFI Token Value

DeFiChain founder Dr. Julian Hosp has proposed a plan, called DFIP, to increase the value and demand of the platform's native token, DFI, by over $1 million.

The plan involves wrapping other cryptocurrencies onto the DeFiChain decentralized exchange, staking major cryptocurrencies to earn rewards, and seeking a risk-free yield on backed stablecoins. The rewards earned will be used to purchase and burn DFI tokens, driving up their scarcity and value. The plan aims to generate significant demand for DFI with minimal risk.

Chiliz Plans Upgrades to Smart Contracts

Leading sports blockchain Chiliz is planning upgrades to its smart contracts, including a change to allow factory contracts to deploy without whitelisting, and fixing inaccuracies in voting power and delegated amount calculations.

Since launching on the mainnet in May, Chiliz has achieved significant growth, with 1.6 billion transactions, 200,000 wallet addresses, and over 5 million blocks. However, its price has remained relatively stagnant.

The Sandbox Unlocks $133 Million Worth of SAND Tokens

The Sandbox has unlocked 332 million SAND tokens worth $133 million, representing around 16% of the circulating supply. The next unlock is scheduled for Feb. 14, 2024, releasing approximately 205 million tokens for the team, company reserve, and advisors.

Throughout their journey, The Sandbox has partnered with the British Museum to enhance players' access to historical and cultural artifacts. 

Gemini's Exclusive XRP Giveaway Campaign

Gemini, a major centralized exchange, is giving away 4,000 XRP tokens daily as part of a campaign exclusive to verified customers in the United States. The tokens will be credited to winners' accounts within three days. Gemini's recent association with XRP has brought attention and questions about the platform's reliability.

Curve DAO Reduces Annual Emissions by 15.9%

Curve DAO (CRV) has reduced its annual emissions rate by 15.9% through a deflationary move. The protocol's preprogrammed schedule to reduce its emissions rate appears strategic, following a major exploit weeks ago that led to a significant selloff. At the time of writing, CRV is changing hands at a price of $0.5822.

Zunami Protocol Suffers $2.1 Million Exploit

DeFi yield aggregator Zunami Protocol has suffered an exploit resulting in losses of over $2.1 million. Security firm PeckShield detected the ongoing attack, which was a price manipulation issue, and warned users not to buy certain tokens.

The vulnerability had been identified two months ago but the communication about it was an "unpleasant experience," according to SlowMist, another security firm.

Hut 8 Reports $18.3m Revenue Decline in Q2 2023

Bitcoin miner Hut 8 reported a $18.3m decline in revenue during Q2 2023, compared to the previous quarter. The Toronto-based firm posted revenue of $14.3m and mined 399 Bitcoin, but sold only 396 for $10.9m during the quarter.

Hut 8 also reported a loss of $12.4m and self-mined BTC balance of 9,136 BTC, valued at $274m. The company attributed the decline to an increase in mining difficulty, operational issues and electrical problems. Hut 8's merger with US Bitcoin is set for a shareholder vote on 12 September.

Former FTX CEO Transferred to Federal Jail

Sam Bankman-Fried, the former CEO of FTX, has been transferred to a federal jail in Brooklyn after his $250 million bail bond was revoked by a judge. Bankman-Fried is facing fraud charges and stands accused of witness tampering and leaking a private diary. His trial is scheduled to begin on October 2.

Viral Memecoin BALD's Deployer Moves ETH

The deployer of viral memecoin BALD moved 7,000 ETH worth $12.9m back to Ethereum from Base, with $4.13m in 2,237 ETH remaining on Base. There's $3.7m in ETH bridging back to Ethereum, and 2,100 ETH was deposited on Kraken. BALD grew to over $80m in market cap before the token deployer withdrew liquidity in an apparent rug pull, leaving holders with worthless coins. The suspected identity of the BALD deployer is @milkyway16eth, who went private after the info came to light.

Top Altcoin Gainers and Losers

Gainers:

Hedera Hashgraph HBAR (+16.49%)

Conflux CFX (+6.42%)

Radix XRD (+6.29%)

Losers:

Rollbit Coin RLB (-25.05%)

FLEX FLEX (-4.59%)

XDC Network XDC (-4.51%)

NFT Market Map

Coca-Cola Launches "Masterpiece" NFT Collection on Base

Coca-Cola has launched its "Masterpiece" NFT collection on the Ethereum Layer 2 network Base, featuring classic and modern artworks. The collection combines iconic works from leading artists with contemporary pieces, all intertwined with the famous Coca-Cola bottle. The NFTs are available for purchase on the mint.fun platform and the collection draws from Coca-Cola's recent "Masterpiece" ad. This launch is part of Coinbase's "Onchain Summer" initiative to showcase the capabilities of the Base network.

This article has been refined and enhanced by ChatGPT.