Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 8, 2023

Crypto Market Update

Written by Van

Table of Contents:

Crypto Market Overview

• Crypto Market Shows Gains Amid Weak Chinese Trade Numbers
• Optimism, Hedera, and Solana Outperform Ethereum in the Past Month
• Cardano Whales Accumulate to Highest Level Since September 2022
• Tether Experiences Major Redemption Amidst Launch of PayPal's PYUSD

Crypto Exchanges and Platforms

• Security Concerns Surround PayPal's Stablecoin Amid Rise of Imposter Tokens
• Kraken Introduces Trading for Reddit's BRICK and MOON Tokens
• Huobi Global to List PayPal's Stablecoin PYUSD
• Coinbase's Base Integrates Chainlink Price Feeds for DeFi Integration
• Bitstamp Discontinues Trading Certain Tokens for US Customers
• Binance Becomes First Licensed Crypto Exchange in El Salvador
• Blockchain.com Obtains Payments License from Monetary Authority of Singapore
• Cypher Protocol Freezes Smart Contract After $1 Million Exploit

Regulatory and Banking Updates

• Bank of England Confirms Plans for Systemic Stablecoin Regime
• Coinbase Buys Back $150 Million of Its 2031 Senior Notes

Company Performance and Developments

• Circle Launches Public Beta for Programmable Wallets
• Galaxy Digital Sees 54% Decline in Q2 Trading Revenue
• Peer Inc. Releases Blockchain-Based Social App

Security and Fraud in the Crypto Market

• AI System Can Eavesdrop on Keyboard Through Audio Recordings

NFT Market

• Top 15 Ethereum NFT Traders Earn Over $300 Million in Profits
• NFT Thefts Drop by 31% in July Amid Declining Market Sentiment

Crypto Market Shows Gains Amid Weak Chinese Trade Numbers

On Tuesday, crypto markets posted gains as long-dated government bond yields dropped following weak Chinese trade numbers. Bitcoin rose 2.78% to $29,700, with Ripple, Solana, Cardano, and Polygon also showing gains.

PayPal's announcement of its stablecoin, PYUSD, received muted response but is seen as a significant development bridging traditional finance and crypto. 

Optimism, Hedera, and Solana Outperform Ethereum in the Past Month

According to cryptocurrency market intelligence platform Messari, Optimism (OP), Hedera (HBAR), and Solana (SOL) were the top smart contract performers against Ethereum (ETH) in the past month. OP performed the best with a 42% gain, followed by HBAR with a 28% gain, and SOL with a 9% gain.

As for prices, OP was trading at $1.72, HBAR at $0.05839, and SOL at $23.36. ETH experienced a 0.16% loss and was trading at $1,828.02.

Cardano Whales Accumulate to Highest Level Since September 2022

Cardano (ADA) whales holding 100K-10 million ADA have accumulated to their highest level since September 2022, with an additional $116.1 million in ADA acquired since May 21, 2023. ADA's on-chain transaction volume has been increasing, reaching levels not seen since September 2021.

ADA's price and trading volume have also shown slight growth in the past 24 hours. However, ADA needs to recover its 7-day performance, which is currently down by 4+%. From a technical perspective, ADA's price needs to surpass certain resistance levels to invalidate the bearish outlook. 

Tether Experiences Major Redemption Amidst Launch of PayPal's PYUSD

Tether recently saw one of its largest redemptions since the FTX collapse, with approximately 325 million USDT redeemed. However, the circulating supply remains near record highs at around 83 billion, indicating strong demand. The USDT/USD redemption rate has fallen below 10bp over the past 24 hours, the lowest since the FTX collapse, potentially signaling a change in market behavior. 

The launch of PayPal's PYUSD stablecoin with a market cap of $26 million does not appear to be directly linked to the redemptions.   

Security Concerns Surround PayPal's Stablecoin Amid Rise of Imposter Tokens

Concerns about PayPal's stablecoin include potential centralization attack vectors, freezing account balances, and censorship capabilities. However, some Ethereum supporters see PayPal's adoption as a validation of smart contract use on the blockchain. Imposter tokens with the ticker PYUSD appeared on Uniswap after PayPal's ERC-20 stablecoin announcement.

PayPal confirmed the legitimate contract address but stated plans to only offer PYUSD through its platform. The tokens on Uniswap are likely scams. 

Kraken Introduces Trading for Reddit's BRICK and MOON Tokens

US-based crypto exchange Kraken has introduced trading for Bricks (BRICK) and Moons (MOON) on its spot and derivative markets. Deposits via the Arbitrum Nova network are accepted, while others will be lost.

BRICK and MOON are paired with USD and EUR in the spot market, with distinct parameters for each token. MOON debuted as part of Reddit's Community Points initiative, while BRICK launched under the r/FortNiteBR subreddit. 

Huobi Global to List PayPal's Stablecoin PYUSD

Crypto exchange Huobi Global plans to list PayPal's new dollar-pegged stablecoin, PYUSD, on its platform. Huobi will offer PYUSD/USDT trading pairs with zero trading fees and has invited PayPal to issue PYUSD on its Tron network. Huobi aims to become the first exchange to support the launch of PYUSD.

Coinbase's Base Integrates Chainlink Price Feeds for DeFi Integration

Coinbase's Base, in partnership with Chainlink, integrates price feeds for streamlined DeFi integration. Coinbase collaborates with brands like Coca-Cola and Atari for on-chain collectibles prior to Base mainnet launch. Uniswap version 3 on Base witnessed over 10,000 transactions within a day.

The public launch of Base is imminent with $100 million worth of assets already transferred. Uniswap on Base emerges as the fourth-largest decentralized exchange by volume. 

Binance Becomes First Licensed Crypto Exchange in El Salvador

Binance becomes the first licensed crypto exchange in El Salvador, securing Bitcoin and Digital Assets Services Provider licenses. It aims to leverage this achievement to navigate international regulatory challenges and gain approval in other foreign markets. Binance faces obstacles in multiple countries and has lost key executives.

The exchange's recent proof-of-reserves report shows sufficient funds, but its USDC reserve movements after Silvergate's collapse sparked discussions. On-chain data suggests Binance started converting its USDC reserves into Bitcoin and Ether after Silvergate collapsed on March 12. 

Bitstamp Discontinues Trading Certain Tokens for US Customers

Bitstamp will discontinue trading AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL for its US customers, citing regulatory pressure. Existing orders will be cancelled, but affected assets can still be held and withdrawn. The change will take effect from August 29, 2023.

Bitstamp aims to raise funds for expansion in Asia and Europe, with plans to launch derivatives trading in Europe and extend its market presence in Asia. Galaxy Digital Holdings will advise on the fundraising initiative to fuel growth and offer new products and services to retail and institutional crypto clients.

Blockchain.com Obtains Payments License from Monetary Authority of Singapore

Blockchain.com has obtained a payments license from the Monetary Authority of Singapore (MAS), enabling the exchange to offer digital payment token services to institutional and accredited investors. This makes Blockchain.com the twelfth provider to receive a license in Singapore.

MAS has been actively promoting Singapore as a cryptocurrency hub and has introduced rules to enhance customer protections in the industry. Funding commitments have also been made to support the fintech sector.

Singapore-based crypto firms ranked third globally in terms of startup funding in Q2 2022, according to a report by Galaxy Digital. 

Cypher Protocol Freezes Smart Contract After $1 Million Exploit

Solana-based decentralized futures exchange Cypher Protocol froze its smart contract after an estimated $1 million exploit. The team is investigating the cause and has reached out to the hacker for a potential return of stolen funds. 

The alleged hacker transferred stolen funds to Binance's Solana USDC address and has received NFT requests to return the funds. Marginfi, a co-host of Cypher Protocol's mtnDAO hacker house event, clarified that it remains independent and unaffected by the attack.

Bank of England Confirms Plans for Systemic Stablecoin Regime

The Bank of England (BoE) has confirmed its plans to implement a systemic stablecoin regime, as stated in a recent consultation response. Under the proposed system, systemic stablecoins would be supervised by both the BoE and the Financial Conduct Authority (FCA).

Respondents and the government also supported extending the accountability framework to cover systemic stablecoins. The UK government intends to work with regulators to review its approach. The BoE is expected to publish its rules on systemic stablecoins later this year.

Coinbase Buys Back $150 Million of Its 2031 Senior Notes

Cryptocurrency exchange Coinbase is buying back $150 million of its 2031 senior notes at a 35.5% discount. The exchange's debt securities have been trading at a discount due to concerns about its ability to repay. Coinbase also faces an SEC lawsuit over alleged unregistered securities exchange operation.

In Q2 2023, Coinbase reported $3.3 billion in long-term debt, $5.2 billion in cash and equivalents, and a 40% increase in customer crypto deposits.

Circle Launches Public Beta for Programmable Wallets

Circle is launching a public beta for Programmable Wallets, enabling developers on Avalanche, Ethereum, and Polygon to integrate wallets into their apps. APIs allow developers to create customized wallets. Circle CEO Jeremy Allaire revealed that 70% of USDC adoption is global, with Asia, Latin America, and Africa as key regions.

Concerns about liquidity are being addressed by expanding banking and liquidity networks. The decline in USDC adoption may be due to alternative stablecoins and relaxed regulations in non-US markets, showcasing the global embrace of digital currencies. 

Galaxy Digital Sees 54% Decline in Q2 Trading Revenue

Galaxy Digital, the crypto firm founded by Michael Novogratz, saw a 54% decline in trading revenue in Q2, primarily due to lower net realized gains on digital assets. However, the company reduced its losses compared to the same period in 2022 and ended the quarter with a strong liquidity position.

The asset management division saw a significant increase in revenue, and operating expenses were cut.

Peer Inc. Releases Blockchain-Based Social App

Peer Inc. has released a social app called Peer, which aims to offer new methods of interaction and exploration. The app combines location sharing, 3D maps, and blockchain technology to provide users with a game-like experience of the real world. The goal is to create a social network centered on discovery, community-building, and real-world activities. The company plans to integrate AI and other innovations in the future.

AI System Can Eavesdrop on Keyboard Through Audio Recordings

Researchers at the Universities of London, Durham, and Surrey have developed an AI system that can eavesdrop on a keyboard through audio recordings, achieving 93-95% accuracy in detecting pressed keys. The algorithm analyzes sound frequencies over time to associate patterns with different keystrokes, and the researchers found that the AI's performance only slightly decreased when tested on keyboard sounds in Zoom calls. 

While the technique could compromise data security, it also highlights the potential for AI algorithms to extract insights from new forms of data. Various countermeasures, such as changing typing style or using touchscreen keyboards, are suggested to protect against this type of attack.

Top Altcoin Gainers and Losers

Gainers:

Pepe PEPE (+9.69%)

Hedera Hashgraph HBAR (+8.01%)

SHIBA INU SHIB (+6.41%)

Losers:

FLEX FLEX (-10.31%)

GMX GMX (-4.03%)

Rocket Pool RPL (-3.10%)

NFT Market Map

Top 15 Ethereum NFT Traders Earn Over $300 Million in Profits

The top 15 traders in the Ethereum NFT market have collectively earned over $300 million in profits. These traders primarily invested in blue-chip NFT collections like Cryptopunks, Bored Ape Yacht Club (BAYC), and Art Blocks. Larva Labs' Cryptopunks accounted for 70.6% of the total profits, while the top earner, "Seths," made $101.6 million. The report emphasizes the importance of early investments and diversification for success in the NFT market.   

NFT Thefts Drop by 31% in July Amid Declining Market Sentiment

NFT thefts have dropped by 31% in July, with a total of $1.73 million worth of NFT assets stolen. The decrease in thefts may be linked to declining NFT sales and market sentiment, with a 40% drop in sales volume and a 29% decline in trading volume. The FBI has warned the NFT community about cyber attacks and urges victims to report suspicious activities.   

This article has been refined and enhanced by ChatGPT.