Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 16, 2023

Crypto Market Update

Written by Van

Table of Contents

Banking and Regulatory Updates

• PayPal Halts Crypto Purchases in the UK Until 2024, Partners with Ledger
• US CFTC Chairman Calls for Clear Crypto Regulation
• Dubai's VARA Imposes $2.7 Million Penalty on OPNX

Crypto Market Insights

• Bitcoin Speculators Own Least BTC Since All-Time High
• Valkyrie and Volatility Shares Target Ether Futures ETF
• Mantle Network Surpasses $40 Million in TVL
• RocketSwap and SwirlLend Report Financial Losses
• THORChain Suspends Core Functions Due to Vulnerability
• SEI Token Soars 12% on Coinbase Listing, Reaching $1.6bn Trading Volume
• Arbitrum to Release $1 Billion Worth of ARB Tokens

Crypto Exchanges and Platforms

• BitGo Secures $100M in Funding for Global Expansion
• ConsenSys Launches Ethereum Scaling Solution Linea
• Coinbase Granted Permission to Offer Crypto Futures

Country-Specific Developments

• Trump's Crypto Holdings Revealed in Leaked Report

Blockchain and NFT Innovations

• ZetaChain Raises $27 Million for Interoperability Focus
• Taiwanese Celebrity Jeffrey Huang's $10 Million NFT Collection
• Adidas and BAPE Collaborate on Limited-Edition NFT Sneakers

PayPal Halts Crypto Purchases in the UK Until 2024, Partners with Ledger

Due to stricter rules by the UK's Financial Conduct Authority (FCA), PayPal will temporarily halt crypto purchases in the UK until early 2024. Existing crypto assets can be kept or sold, but new purchases will be disabled from October 1.

Meanwhile, Ledger has partnered with PayPal to offer a seamless and secure platform for US customers to access cryptocurrencies, and the Ethereum market cap continues to show significant growth. Despite regulatory challenges, Ledger aims to provide secure digital currency transaction platforms. 

US CFTC Chairman Calls for Clear Crypto Regulation

Rostin Behnam, Chairman of the U.S. CFTC, has called for a regulatory solution to address the lack of clarity in the cryptocurrency market, stating that most cryptocurrencies are commodities. Behnam's stance contradicts that of SEC Chairman Gary Gensler, who believes most cryptocurrencies are securities.

Behnam argues that Congress should pass a bill to give the CFTC more oversight powers for the commodity token market. After Behnam's comments, the price of Bitcoin dropped.

Dubai's VARA Imposes $2.7 Million Penalty on OPNX

Dubai's crypto regulator, the Virtual Asset Regulatory Authority (VARA), has imposed a $2.7 million penalty on OPNX, a venture by the founders of Three Arrows Capital, for alleged violations in promoting virtual assets. VARA also fined the founders and CEO 200,000 Emirati dirhams ($54,451) for not adhering to marketing regulations.

The $2.7 million fine remains unpaid, and VARA intends to take further measures against OPNX. Earlier in May, VARA reprimanded OPNX for advertising its platform without restrictions for Dubai residents.

Bitcoin Speculators Own Least BTC Since All-Time High

Bitcoin speculators currently own the least BTC since the all-time high of $69,000. Short-term holder supply has declined to just 2.56 million BTC, indicating a potential market that is "top heavy." However, long-term holders continue to increase their holdings, reaching an all-time high of 14.6 million BTC. This suggests that overall investor conviction in Bitcoin remains high. 

Valkyrie and Volatility Shares Target Ether Futures ETF

Asset management firm Valkyrie has filed for an Ether futures ETF with the U.S. SEC, a move that could have a substantial impact on the crypto price. Volatility Shares plans to list its Ether Futures ETF (ETHU) on October 12, becoming the first Ethereum futures exchange-traded fund in the US market, a significant event for those tracking crypto coin prices.

This move follows the successful listing of their Bitcoin-linked ETF, and experts believe they are poised to beat rivals to offer the highly anticipated Ether ETF. 

Mantle Network Surpasses $40 Million in TVL

Mantle Network, a Layer 2 blockchain operating on Ethereum, has surpassed $40 million in total value locked (TVL) within a month of its launch. One contributing factor is the native decentralized exchange, Agni Finance, which has locked over $23 million.

Additionally, around 5,000 addresses have bridged nearly $56 million from Ethereum to Mantle. The network's growth has been fueled by the trend of Layer 2 chains launching and the capital rotation from Ethereum's mainnet.

Mantle's DAO-led ecosystem has also approved a $200 million fund to support early-stage apps on Ethereum Layer 2.

RocketSwap and SwirlLend Report Financial Losses

RocketSwap and SwirlLend, two cryptocurrency projects operating on Coinbase's Base layer2 network, have reported severe financial losses due to external threats. SwirlLend saw its funds decrease from $784,000 to $49,200, while RocketSwap acknowledged a security breach but has not disclosed the financial damage.

The attackers transferred funds from Base to Ethereum. Both platforms are taking measures to address the vulnerabilities and mitigate the risks.

THORChain Suspends Core Functions Due to Vulnerability

THORChain, one of the oldest DeFi projects, suspended core functions due to a code vulnerability in a TSS library maintained by BNB Smart Chain. This halted a strong rally of THORChain's RUNE token, which dropped 3% and then recovered on the day.

The team has a patch ready but is waiting for other projects to prepare their own patches. The release of a new lending product had driven a 60% rally in THORChain's RUNE liquidity token. Thorswap also attracted whales due to bypassing transaction size restrictions and offers discounts.

In addition to whale demand, the rally of THOR token was also fueled by token burns as the DEX planned to burn 7.5 million THOR tokens.

SEI Token Soars 12% on Coinbase Listing, Reaching $1.6bn Trading Volume

Sei Network, a layer 1 protocol, experienced a 12% increase in its native cryptocurrency SEI after being listed on Coinbase. Sei claims to be the fastest blockchain in the industry and has gained popularity in South Korea with increased trading on Bithumb and Upbit exchanges.

The SEI token, launched during Sei Network's Mainnet beta phase, recorded a trading volume of $1.14 billion on its first day, with Binance and Upbit leading in trading activity. 

Arbitrum to Release $1 Billion Worth of ARB Tokens

Ethereum layer 2 scaling solution Arbitrum plans to release over $1 billion worth of ARB tokens in March 2023. The tokens will be unfrozen in a staggered manner over a four-year period, with the initial release unlocking 87% of the circulating supply.

Unlocks can negatively impact token prices, and the release will continue every four weeks for the following four years. At the time of writing, ARB is trading at $1.09, down 4.68% for the day.

BitGo Secures $100M in Funding for Global Expansion

BitGo, a decade-old crypto custodian, has secured $100m in Series C funding at a $1.75bn valuation, a development that may be reflected in cryptocurrency charts for investors tracking the company's growth. 

The California-based firm plans to use the funds for strategic acquisitions and global expansion. The news comes after BitGo's planned $1.2bn acquisition by Galaxy fell through in 2022. BitGo has recently seen a 60% increase in new clients and a 20% growth in assets under custody.

ConsenSys Launches Ethereum Scaling Solution Linea

ConsenSys has launched its Ethereum scaling rollup Linea, which has processed over three million transactions and bridged $26 million in Ether. Linea is a zero-knowledge Ethereum Virtual Machine (zkEVM) scaling solution that offers lower transaction costs and higher throughput for decentralized applications (DApps) on the Ethereum ecosystem.

It supports a variety of Web3 use cases and integrates with ConsenSys' MetaMask wallet. Linea's ERC-20 token bridge is also live, allowing ERC-20 tokens to be bridged and accessible through the scaling solution.

Coinbase Granted Permission to Offer Crypto Futures

Coinbase has been granted permission by the National Futures Association to operate a Futures Commission Merchant, allowing it to offer regulated and leveraged crypto futures alongside traditional spot trading. Coinbase is the first crypto-focused platform in the US to offer such services.

Trump's Crypto Holdings Revealed in Leaked Report

A leaked disclosure report reveals that former US President Donald Trump accumulated nearly $3 million worth of cryptocurrency in his Ethereum wallet, despite previously criticizing cryptocurrencies. Trump also netted $4.9 million from an NFT licensing deal. The updated filings raise the approximate value of Trump's crypto holdings to $2.8 million.

ZetaChain Raises $27 Million for Interoperability Focus

ZetaChain, a Layer 1 blockchain focused on interoperability, has raised $27 million in a funding round featuring investors such as Blockchain.com, Jane Street Capital, and Human Capital.

The platform aims to establish a new standard for blockchain interoperability by allowing users to manage their assets and data across multiple blockchains more easily. ZetaChain plans to launch its mainnet soon and already has over 27,000 decentralized app contracts deployed on its network.

Top Altcoin Gainers and Losers

Gainers:

FLEX FLEX (+15.45%)

Rocket Pool RPL (+2.30%)

Kaspa KAS (+1.67%)

Losers:

Rollbit Coin RLB (-13.25%)

Terra Classic LUNC (-12.17%)

GMX GMX (-11.04%)

NFT Market Map

Taiwanese Celebrity Jeffrey Huang's $10 Million NFT Collection

Taiwanese music celebrity and tech entrepreneur Jeffrey Huang, known as "Machi Big Brother," reportedly holds NFT collections worth over $10 million, including 108 BAYC, 266 DeGods, 94 QQL Mint Passes, and 78 MAYC NFTs.

His entire portfolio, consisting of close to 3,200 NFTs from 98 different collections, is valued at approximately $12 million. Huang recently dropped his legal case against crypto sleuth ZachXBT, who promised to return leftover funds from the legal defense donations.

Additionally, Huang caused a crash in the Bored Ape Yacht Club's floor price through a series of sales and purchases. 

Adidas and BAPE Collaborate on Limited-Edition NFT Sneakers

Adidas Originals and BAPE have partnered on a limited-edition sneaker collaboration called the Triple-White Forum 84 BAPE Low. The sneakers will be auctioned off alongside a "digital twin" NFT version, which can potentially be worn in the metaverse.

Only 100 ETH NFTs will be available, which can be exchanged for the corresponding pair of sneakers.

The auction will take place on the Adidas Collect platform from August 22 to 25, with the winners able to redeem their tokens for the physical shoes and digital twin starting on September 26.

This article has been refined and enhanced by ChatGPT.