Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 2, 2023

Crypto Market Update

Written by Van

Table of Contents

Cryptocurrency Updates

• Litecoin's Block Reward Halving: An Analysis
• MicroStrategy's $750m Stock Sale to Purchase Bitcoin
• Bitcoin's Market Response to MicroStrategy and Macroeconomic Factors
• Binance's Controversial $90 Billion Business in China
• US Credit Rating Downgraded to AA+ by Fitch

Crypto Exchanges and Platforms

• KuCoin Pool to Halt Bitcoin and Litecoin Operations
• Scammers Target Voyager Digital's Customers Amid Bankruptcy
• Uniswap Removes HEX from Its Interface
• Abracadabra Finance to Hike Interest Rates on $18m Loan
• Kaspa's KAS Token: 76% Gain and Exchange Listing Campaign
• Huobi's Financial Road to Recovery with Tron's Justin Sun
• Google Cloud Joins Celo Network as a Validator

Regulatory and Country-Specific Developments

• Spot Bitcoin ETF's Approval Chances Rise to 65%
• Major Asset Managers File for Ether Futures ETFs in the US
• Kenya Suspends Worldcoin Activities over Data Concerns
• India Leads G20 in Developing Global Crypto Rules

Blockchain Technology and Innovations

• Sui Network Introduces Native Liquid Staking in Upgrade
• Hyundai and Kia Adopt Hedera Network for CO2 Monitoring

Crypto Market Trends

• ApeCoin's Decline: Bored Ape Yacht Club's NFT Collection
• GameStop Withdraws Crypto Wallets Due to US Regulations

Litecoin's Block Reward Halving: An Analysis

Litecoin has successfully undergone its block reward halving, reducing the miner's reward from 12.5 LTC to 6.25 LTC. This event occurs roughly every four years and is designed to make Litecoin more valuable by increasing its scarcity. The total supply of Litecoin is capped at 84 million LTC.

The price of Litecoin has historically exhibited movement before and after halving events. The halving process can also impact miners, particularly due to Litecoin's dual-mining relationship with Dogecoin.

Merge-mining could be a solution to maintain network security as newer crypto assets with higher block rewards may be merge-mined within the same pools.

MicroStrategy's $750m Stock Sale to Purchase Bitcoin

US software company MicroStrategy plans to sell up to $750m in stock, some of which will be used to buy more bitcoin. As of June 27, 2023, the firm already owned 152,333 BTC, or around 0.0078% of the cryptocurrency's overall supply. If it were to invest the full $750m in bitcoin, it could buy around 25,000 coins at current prices. 

Bitcoin's Market Response to MicroStrategy and Macroeconomic Factors

Bitcoin surged to nearly $30,000 on the back of MicroStrategy's Q2 results, but fell 2.4% amid uncertain macroeconomic conditions. Experts are divided on whether robust economic data will divert investments away from Bitcoin or if its fixed supply and institutional appeal will make it resilient. 

Funding rates for Bitcoin have reached their highest levels since February 2023, indicating a bullish market sentiment, but also raising the risk of a potential long squeeze.

Additionally, there has been a significant sell-off in the Bitcoin market over the past six days, largely driven by Bitcoin whales, as evidenced by large transactions over $10M and the influx of 15,000 BTC back onto exchanges. The accumulation trend score suggests that Bitcoin whales are in a distribution mode.

Binance's Controversial $90 Billion Business in China

According to the Wall Street Journal, Binance has conducted $90 billion worth of business in China, which is its biggest market. The exchange operates a $80.6 billion futures market and a $9.4 billion spot market in the country, despite the Chinese government's ban on cryptocurrency.

The report also alleges that Binance collaborates with Chinese authorities to identify potential criminal activity and has 900,000 active users in China. However, Binance has denied these claims, stating that its website is inaccessible to users in China.

US Credit Rating Downgraded to AA+ by Fitch

Fitch has downgraded the US credit rating from AAA to AA+ citing anticipated fiscal deterioration, a high and growing government debt burden, and an erosion of governance. The stock market has not been significantly impacted by the downgrade, with investors mainly focused on upward momentum.

The US Treasury plans to borrow about $1 trillion in Q3, the most ever borrowed in any third quarter. The jobs picture remains strong, with ADP reporting an employment change of 324k. The momo crowd is aggressively buying stocks, gold, and bitcoin, while smart money remains inactive.

KuCoin Pool to Halt Bitcoin and Litecoin Operations

KuCoin Pool, a crypto mining pool for bitcoin and litecoin, will halt operations from August 15, citing a shift in business strategy. KuCoin Pool is currently ranked as the 8th largest for bitcoin mining and the 11th largest for litecoin mining. Users are advised to migrate to alternative mining pools before the suspension takes effect.

Scammers Target Voyager Digital's Customers Amid Bankruptcy

Voyager Digital's customers were targeted by scammers during the defunct crypto lender's bankruptcy proceedings. The scams were designed to extract data from customers who were awaiting repayment from the firm, with fake websites set up to drain digital wallets. 

Law enforcement agencies and bankruptcy officials are investigating. The platform's native token VGX lost more than 10% of its value following the latest development.

Uniswap Removes HEX from Its Interface

The SEC has sued Richard Heart, founder of HEX, for selling unregistered securities and defrauding investors. In response, Uniswap has removed HEX from its interface and ceased trading. The SEC claims that HEX is an unregistered security and accused Heart of defrauding investors. Uniswap cited legal considerations for its decision.

Abracadabra Finance to Hike Interest Rates on $18m Loan

Abracadabra Finance plans to raise interest rates from 18% to 200% on an $18 million loan to Curve Finance founder Michael Egarov, aiming to protect itself from bad debt. If approved, the proposal might increase selling pressure on the already stressed CRV market. Binance market makers intervened after a CRV exploit caused the token to crash, doubling bid-side market depth and averting liquidation fears. 

Kaspa's KAS Token: 76% Gain and Exchange Listing Campaign

Kaspa's KAS token has gained 76% in the past month, with most of the gains recorded in the past three days. The cryptocurrency has launched a campaign to secure a Tier-1 exchange listing, with a target of raising $30,000 in USDT and KAS.

The money raised will be used to pay listing fees and run a marketing campaign to attract new users and increase liquidity.

Huobi's Financial Road to Recovery with Tron's Justin Sun

Huobi, a crypto exchange, has incurred losses over the past four quarters. However, Justin Sun, advisor and Tron founder, expects Huobi to break even in Q3 and achieve a slight profit in Q4. The losses were attributed to excessive spending on marketing, ads, and payroll. 

In contrast, the Sun-related crypto group, including Huobi and Tron, posted a combined profit of $85 million in Q2, with revenues of $193 million and expenses of $108 million. Huobi aims to return to profitability after implementing cost-cutting measures.   

Google Cloud Joins Celo Network as a Validator

Google Cloud has become a validator on the Celo network, joining other contributors such as Deutsche Telekom. The move is part of Celo's migration to an Ethereum layer 2 solution and strengthens the long-standing relationship between Google Cloud and Celo. 

Google Cloud's Blockchain Node Engine will facilitate node operations for Celo participants and help streamline the transition to the Ethereum ecosystem. Celo's token, CELO, saw a 6% rise following the news.

Spot Bitcoin ETF's Approval Chances Rise to 65%

The chances of a spot Bitcoin ETF gaining approval in the US have risen to 65% from 1% previously. This is attributed to developments in the Ripple vs. SEC case and the upcoming Grayscale lawsuit.

Analysts believe that Grayscale's victory over the SEC could lead to simultaneous approvals of spot Bitcoin ETF filings by the end of the year. Various institutional giants, including BlackRock, have recently filed for spot Bitcoin ETFs. 

Major Asset Managers File for Ether Futures ETFs in the US

Six major asset managers, including Grayscale and VanEck, have filed applications to launch Ether futures ETFs in the United States. The filings propose funds investing in ETH futures contracts traded on the Chicago Mercantile Exchange.

The applications come following a trend of asset managers seeking to launch Bitcoin ETFs, with BlackRock among them. 

Kenya Suspends Worldcoin Activities over Data Concerns

Kenya has suspended Worldcoin activities due to concerns over data collection methods, potentially impacting one of the project's largest user sign-ups. However, Worldcoin's social dominance has increased, and the price of WLD has surged by 3.85%.

Worldcoin plans to expand via iris-scanning technology, but has faced difficulties in signing up users and scrutiny over data collection methods. Investigations and bans have been imposed in some countries. 

India Leads G20 in Developing Global Crypto Rules

India, as the head of the G20 group of nations, is advocating for the development of global rules for cryptocurrency assets. India has released an input note proposing a path for coordinated rules, in line with guidelines from the Financial Stability Board and the International Monetary Fund. 

The note includes action points for regulatory arbitrage, assessing risks, and implementing oversight and consumer protection measures. Other international organizations, such as the FATF and OECD, have also developed regulatory frameworks for crypto assets.

Sui Network Introduces Native Liquid Staking in Upgrade

Blockchain platform Sui Network, developed by Mysten Labs, has introduced native liquid staking with its latest network upgrade. This feature allows token holders to receive derivative tokens proportional to the value of their staked Sui tokens, providing greater utility and decentralization. Unlike other networks, Sui does not rely on third-party liquid staking protocols.

Hyundai and Kia Adopt Hedera Network for CO2 Monitoring

Hyundai and Kia have partnered with the Hedera Network to introduce an AI-enabled CO2 Emission Monitoring System. This blockchain-based solution tracks carbon emissions throughout the supply chain, providing accurate data on operations. The adoption of Hedera technology by these automakers demonstrates an increasing trend in blockchain adoption. The price of HBAR, the native token of Hedera Network, experienced a brief surge following the announcement.   

Top Altcoin Gainers and Losers

Gainers:

XDC Network XDC (+18.77%)

FLEX FLEX (+11.00%)

Kaspa KAS (+7.82%)

Losers:

Litecoin LTC (-6.53%)

Uniswap UNI (-5.97%)

Bitcoin Cash BCH (-5.92%)

NFT Market Map

ApeCoin's Decline: Bored Ape Yacht Club's NFT Collection

ApeCoin (APE), associated with the Bored Ape Yacht Club NFT collection, hit an all-time low of $1.77 before recovering to $1.84, down 9% in the past week. The decline was influenced by declining interest in PFPs, legal issues faced by Yuga Labs, and a negative response to the Otherside game sneak peek. APE has dropped over 93% from its peak of $26.70 in April 2022.   

GameStop Withdraws Crypto Wallets Due to US Regulations

GameStop is removing its support for crypto wallets due to regulatory uncertainty in the United States. The wallets were introduced just a year ago and allowed users to manage crypto and NFTs. The move follows a crackdown on crypto-related companies by regulators and lawmakers.

This article has been refined and enhanced by ChatGPT.