Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 17, 2023

Crypto Market Update

Written by Van

Table of Contents

Crypto Market and Technology Updates

• Shibarium Launch: Technical Glitches Trap $2.5 Million
• CME Group Expands Crypto Rates for Asian Investors
• Bitcoin Dips Below $28,000 Amid Regulatory Delays
• Ripple Fights Back Against SEC's Provisional Appeal

Regulatory and Legal Developments

• Singapore Police Seize $735 Million in Laundering Crackdown
• Philippine Police Warn of Crypto Gaming Fraud Risks
• Genesis Pays $175 Million to Alameda in FTX Agreement
• BlockFi Resumes US Crypto Withdrawals After Court Order

Stablecoins and Exchange News

• Stablecoin Market Cap Hits Lowest Point Since 2021
• Tether Ends USDT Support on Select Blockchains
• Sei Blockchain Airdrop Leads to 24% Drop in Value
• Grayscale Investments Gears Up for ETF Team

Blockchain and Decentralized Finance (DeFi)

• Avalanche Foundation Grants $3 Million to Dexalot
• Connext to Launch Native Token Next on September 5

NFTs and Collectibles

• BAYC NFT Prices Drop Amid Sotheby's Lawsuit
• McDonald's Singapore Offers Grimace NFTs in Giveaway

Shibarium Launch: Technical Glitches Trap $2.5 Million

Shiba Inu's Shibarium launch faced technical difficulties, affecting the crypto coin prices, with $2.5 million trapped on the bridge contract. Issues included nonfunctional Remote Procedure Call and block scanner. There were warnings of potential scams. Shiba-related tokens like SHIB and BONE suffered losses.

According to its lead developer, funds remain secure, and efforts are underway to address the issues and scale infrastructure. 

CME Group Expands Crypto Rates for Asian Investors

CME Group is set to launch bitcoin and ether reference rates for Asian investors, in addition to its existing rates for London and New York. The CME CF Bitcoin Reference Rate APAC and CME CF Ether-Dollar Reference Rate APAC will be available from 11 September.

The move comes as 37% of CME Group's total crypto volume this year has traded outside of US hours, with 11% coming from the Asia Pacific region. The rates will be published at 4 pm Hong Kong and Singapore time.

Bitcoin Dips Below $28,000 Amid Regulatory Delays

The crypto price of Bitcoin dropped below $28,000 for the first time in two months. The sell-off is attributed to the delay in approving Bitcoin ETF applications by regulators. Other cryptocurrencies, including Ethereum, Dogecoin, and Shiba Inu, also experienced decreases in value.

Before dropping under $28,000, Bitcoin's value fell to its lowest point since June 21, reaching $28,346, as risk aversion on Wall Street grows. Bearish bets in bitcoin futures have increased, with funds being net short by the most since April 2022.

Concerns about the macro outlook, rising bond yields, and a lack of positive developments in the crypto market have contributed to the selling pressure. 

Ripple Fights Back Against SEC's Provisional Appeal

Ripple has filed an appeal against the SEC's request to file a provisional appeal, stating that the court's decision does not have any legal control issues and the SEC has not provided sufficient justification for their disagreement. The immediate appeal is unlikely to resolve the case.

Singapore Police Seize $735 Million in Laundering Crackdown

Singaporean police have arrested 10 foreign nationals suspected of money laundering and seized assets worth approximately $735 million, including cryptocurrencies. The police also seized 94 properties, 50 vehicles, and 35 bank accounts. Singapore remains committed to regulating the cryptocurrency industry and finalized rules governing stablecoins earlier this week.

The Monetary Authority of Singapore emphasized the need to strengthen anti-money laundering measures.

Philippine Police Warn of Crypto Gaming Fraud Risks

The Philippine national police have warned citizens about cryptocurrency gaming schemes and play-to-earn games, citing the high risk of fraud and scams. They specifically mentioned how victims are lured into fake rewards on fraudulent gaming apps and have their money stolen via malware.

The police also highlighted the risks associated with market volatility and economic barriers of entry in crypto gaming. While the police did not label Axie Infinity a scam, they noted its vulnerability to market headwinds and highlighted last year's major hack in which $622 million was stolen from user funds.

Genesis Pays $175 Million to Alameda in FTX Agreement

Crypto exchange FTX and Genesis Global Trading have reached an agreement for Genesis to pay $175 million to Alameda Research, which will help confirm its bankruptcy plan. Genesis also waived all other claims against FTX.

The agreement resolves claims made by both parties and eliminates the need for litigation in the FTX bankruptcy proceedings.

BlockFi Resumes US Crypto Withdrawals After Court Order

Crypto lending firm BlockFi has resumed crypto withdrawals for eligible US users following a court order. The firm had halted withdrawals after filing for bankruptcy but later sought court authorization to return user funds. 

The withdrawals currently only apply to US-based users who meet certain criteria. International users are still awaiting further developments. BlockFi has also received conditional approval for its restructuring plan and is working towards repaying users.  

Stablecoin Market Cap Hits Lowest Point Since 2021

The stablecoin market cap has been decreasing for 17 months and is now at its lowest point since August 2021, standing at $124 billion. The drop in market cap is attributed to the low volatility of Bitcoin and Ethereum.

Tether dominates trading with almost 70% of the total volume, while FDUSD has seen a surge in supply since its Binance launch, reaching a value of $305 million. 

Tether Ends USDT Support on Select Blockchains

Stablecoin issuer Tether is discontinuing support for USDT on the Bitcoin, Kusama, and Bitcoin Cash blockchains. The company remains committed to the Bitcoin ecosystem and will focus on the RGB protocol for future growth. Users can redeem tokens as usual and swap them for USDT on other chains.

Tether may revisit issuing USDT on Bitcoin via Omni if there is an increase in usage. Ethereum and Tron currently dominate USDT supply.

Sei Blockchain Airdrop Leads to 24% Drop in Value

The recent airdrop of tokens for early adopters of the Sei blockchain resulted in disappointment as recipients sold their holdings, leading to a 24% drop in the value of the SEI token, as reflected in the cryptocurrency charts.

Complaints were made about the small allocations, prompting the Sei Foundation to triple the number of eligible wallets for the airdrop.

Grayscale Investments Gears Up for ETF Team

Digital currency asset manager, Grayscale Investments, is hiring for its ETF team, ahead of an imminent ruling in its lawsuit against the SEC regarding the rejection of its proposal to convert its flagship fund into a spot bitcoin ETF.

The outcome of the ruling could impact the regulator's review process for other asset managers' filings for spot bitcoin funds. A win for Grayscale would be seen as positive for the sector.

Avalanche Foundation Grants $3 Million to Dexalot

The Avalanche Foundation will provide up to $3 million in AVAX tokens to Dexalot, a decentralized exchange built on Avalanche. This initiative is part of Avalanche's Multiverse, an incentive fund for new subnets. Dexalot aims to replicate the centralized exchange experience through its decentralized on-chain app.

The funds will be distributed over 12 months based on the subnet reaching milestones.

Connext to Launch Native Token Next on September 5

Blockchain interoperability project Connext will launch its native token, Next, on September 5. The token will be airdropped to early users across several blockchains and will have utility as a governance tool for Connext's ecosystem.

The project is partnering with Tokensoft to offer a cross-chain airdrop service that allows recipients to claim tokens without needing to bridge or pay additional gas fees.

Top Altcoin Gainers and Losers

Gainers:

Rollbit Coin RLB (+11.83%)

THORChain RUNE (+6.00%)

Cosmos ATOM (+1.55%)

Losers:

SHIBA INU SHIB (-11.36%)

Bitcoin SV BSV (-6.99%)

Conflux CFX (-6.89%)

NFT Market Map

BAYC NFT Prices Drop Amid Sotheby's Lawsuit

The prices of Bored Ape Yacht Club (BAYC) NFTs have dropped, raising questions about NFT popularity. NFT sales hit a 31-month low at $221.2 million in August. Sotheby's is being sued by BAYC investors who claim the company helped Yuga Labs deceive them. Sotheby's denies the allegations, and Yuga Labs dismisses the lawsuit as opportunistic.  

McDonald's Singapore Offers Grimace NFTs in Giveaway

McDonald's in Singapore is launching a giveaway of 2,000 NFT collectibles featuring the fast food icon Grimace. The NFTs will be available for free through the McDonald's mobile app and cannot be transferred or sold once minted.

This article has been refined and enhanced by ChatGPT.