Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 21, 2023

Crypto Market Update

Written by Van

Table of Contents

Market Trends and Analysis

• Digital Asset Market Outflows Reach $55 Million
• Vitalik Buterin's $1 Million Ethereum Transfer Sparks Speculation
• Bitcoin Speculators Face Losses; Long-Term Holders Unaffected
• XRP's Recovery Influenced by Whale Accumulation

Regulatory and Legal Updates

• FBI Seizes $1.7 Million in Cryptocurrency
• Blockchain Capital Co-Founder Files Lawsuit Over $6.3 Million Loss
• Bitget Updates KYC Requirements to Comply with Regulations
• Gemini Urges Dismissal of SEC Lawsuit

Crypto Exchanges and Platforms

• Binance Clarifies Euro Withdrawals Suspension via SEPA
• Friend.tech Generates More Fees Than Bitcoin and Uniswap
• Coinbase's $150 Million Bond Buyback Meets Resistance
• Token Unlocks Worth Over $120 Million This Week
• Terra's Official Website Compromised; LUNA Price Drops

NFT and Blockchain Technology

• Dogecoin Developer Questions Proof of Stake Transition
• Milady Maker NFT Collection Reaches New ATH
• NFT Company RECUR to Shut Down Operations

Digital Asset Market Outflows Reach $55 Million

According to a weekly report by CoinShares, the digital asset market experienced significant outflows of $55 million following the disappointment caused by a delay in the approval of a US spot-based ETF by the US Securities & Exchange Commission. Bitcoin recorded outflows of $42 million, while Ethereum saw outflows of $9 million. 

Altcoins like Polygon, Litecoin, and Polkadot also experienced outflows. Canada and Germany were the most affected by the sell-off, while Switzerland and Australia reported minor inflows. The total assets under management declined by 10% to $32.3 billion.  

Vitalik Buterin's $1 Million Ethereum Transfer Sparks Speculation

Vitalik Buterin, the founder of Ethereum, transferred 600 ETH, worth $1 million, to the prominent crypto exchange Coinbase, a move that has drawn attention to the Ethereum market cap and its potential impact. 

This move has sparked speculation among the crypto community, with some interpreting it as a possible sign of an impending market downturn. However, Buterin still holds a significant amount of Ethereum in his primary wallet, leaving observers unsure of his intentions.

Bitcoin Speculators Face Losses; Long-Term Holders Unaffected

According to recent research, Bitcoin speculators are facing significant losses, with approximately 88.3% of their held supply (2.26M BTC) currently at an unrealized loss. On the other hand, long-term holders (LTHs) remain largely unaffected, with their aggregate balance reaching a new all-time high. 

This separation between sensitive speculators and seasoned hodlers indicates a divergence in market sentiment. At the time of writing, BTC has recovered to $26,000 after dropping below this level during the day. 

XRP's Recovery Influenced by Whale Accumulation

XRP experienced a recovery in crypto price after a recent market crash, largely influenced by the accumulation activity of large whales, reflecting the volatility in the market. Despite this, short-term sentiment remained negative. XRP's social engagements increased, and there was a significant uptick in whale transactions. 

The futures market mirrored the spot market, with bullish traders dominating during price rises. The overall mood surrounding XRP has been positive since a partial win in the legal battle against the SEC, although the battle is still ongoing.  

FBI Seizes $1.7 Million in Cryptocurrency

The FBI has seized around $1.7 million worth of cryptocurrency between March and July 2021. The majority of the seized digital assets were Ethereum (ETH) tokens, followed by stablecoins and other cryptocurrencies like Bitcoin and Monero. The seizures largely occurred in the states of Florida and Virginia, with Binance accounts being a significant source of the confiscated funds.

Blockchain Capital Co-Founder Files Lawsuit Over $6.3 Million Loss

Bart Stephens, co-founder of Blockchain Capital, has filed a lawsuit against hackers who allegedly carried out a SIM swap attack resulting in the loss of $6.3 million worth of cryptocurrency. The hackers impersonated Stephens' brother, gained access to his account, and transferred the funds to their own wallets. 

Stephens is seeking compensation and a jury trial. The hackers attempted to withdraw additional funds from Stephens' cold wallet but were unsuccessful. They also funneled the stolen funds through decentralized exchanges to make them harder to trace.

Bitget Updates KYC Requirements to Comply with Regulations

Cryptocurrency derivatives exchange Bitget is updating its Know Your Customer (KYC) requirements in order to comply with global regulatory guidelines, a move that traders will closely watch on cryptocurrency charts for potential market reactions. 

Starting from September 2023, newly registered users will be required to complete level 1 KYC verification in order to access services on the platform. Users who fail to complete the process will have limited functionality on the exchange. This move follows similar updates by other exchanges such as KuCoin and OKX.

Gemini Urges Dismissal of SEC Lawsuit

Gemini is urging a federal judge to dismiss the Securities and Exchange Commission's (SEC) lawsuit against the exchange. Gemini argues that the SEC did not provide conclusive evidence that the exchange sold unregistered securities. 

The SEC claimed that Gemini Earn and the Master Digital Asset Loan Agreement qualify as securities, but Gemini's lawyers argue that the SEC cannot substantiate these claims. Gemini has requested an oral hearing in its bid to have the case dismissed.

Binance Clarifies Euro Withdrawals Suspension via SEPA

Binance has suspended euro withdrawals and deposits via SEPA due to issues related to the payment system. The exchange's customer support said it did not have a specific time frame for restoring SEPA transfers, adding that its payment provider "can no longer support these transactions". 

The move comes after Binance's current euro banking partner, Paysafe Payment Solutions, announced it would discontinue support for the crypto exchange. Binance then said the customer support message was "sent in error" and the SEPA service will continue until 25 September.

Friend.tech Generates More Fees Than Bitcoin and Uniswap

Friend.tech, a social app developed on Base, has generated more fees than Bitcoin and Uniswap in the past 24 hours. The platform denies leaking a database of 101,000 Ethereum addresses linking Twitter IDs to wallets. Users expressed concerns about potential doxxing but friend.tech claims their wallets require multiple signatures to spend crypto. 

The platform saw rapid growth, reaching 44,000 users in five days after launch. Friend.tech founders, 0xRacerAlt and Shrimppepe, have been linked to failed NFT project Kosetto, according to social media platform X. 

The project, which launched last December, consisted of 1,689 tradeable NFT wearables on Ethereum. Its floor price is currently 0.01 ETH ($17), with no sales recorded since February. Friend.tech has generated interest from the crypto community with its decentralised social application.

Coinbase's $150 Million Bond Buyback Meets Resistance

Coinbase's offer to buy back $150 million worth of bonds has not generated much interest, indicating that investors believe there is more potential upside for the notes. So far, $50 million worth of bonds have been tendered, and the final decision can be made until September 1. Despite regulatory concerns, Coinbase's recent earnings report beat analysts' estimates, and its shares are still up over 100% this year.

Token Unlocks Worth Over $120 Million This Week

Avalanche, Lido, and Yield Guild Games are unlocking tokens worth over $120 million this week. Yield Guild Games will release the largest amount, with 6.6% of its circulating supply, while Avalanche will unlock $100 million worth of AVAX tokens, and Lido will release 8.5 million LDO tokens. Other smaller token unlocks are scheduled for Acala, 1inch Network, and Pendle.

Terra's Official Website Compromised; LUNA Price Drops

The official website for the Terra (LUNA) project has been compromised and is being used as a phishing platform to collect users' sensitive data, causing concerns among investors and affecting crypto coin prices. 

Users are warned not to interact with the domain. The cause of the compromise is unknown, but some speculate it may be a domain take-over. The price of LUNA has dropped over 23% in the past week, and the lack of explanations and solutions from Terra could impact investor trust.

Dogecoin Developer Questions Proof of Stake Transition

Dogecoin lead developer Mishaboar has expressed doubts about moving to a Proof of Stake (PoS) blockchain consensus. He argues that a PoS transition is not a "sensible approach" and could lead to power imbalances, increased control by exchanges, and regulatory challenges. Mishaboar believes that the benefits of a PoS consensus can be achieved through other solutions. The debate over PoS versus Proof of Work (PoW) has sparked discussions about the future of Dogecoin.

Top Altcoin Gainers and Losers

Gainers:

Rollbit Coin RLB (+17.63%)

Akash Network AKT (+13.53%)

Optimism OP (+2.89%)

Losers:

THORChain RUNE (-7.59%)

XDC Network XDC (-6.21%)

SHIBA INU SHIB (-5.72%)

NFT Market Map

Milady Maker NFT Collection Reaches New ATH

The Milady Maker NFT collection reached a new ATH floor price of 4.468 ETH, surpassing its previous high of 4.44 ETH. However, the values of MAYC and Bored Ape NFTs are facing significant drops, with the latter decreasing from a 128 ETH peak to 23.59 ETH. The popularity of certain NFT collections like Milady has been influenced by social media influencers and meme culture.  

NFT Company RECUR to Shut Down Operations

NFT company RECUR has announced plans to shut down its operations due to the bear market. Users have until November to withdraw their NFTs and USDC, and the platform will go offline at the withdrawal deadline. RECUR raised $50m in a Series A funding round two years ago and partnered with Paramount to offer digital collectibles. The company cited "unforeseen challenges and shifts in the business landscape" as the reason for the closure.

This article has been refined and enhanced by ChatGPT.