Coin360 Daily Dispatch | Crypto Market Updates & Highlights | December 19, 2023

Bitcoin Price Fluctuates Amid ETF Optimism

Bitcoin's price rebounded above $43,000, spurred by ETF optimism and negative trader sentiment, before retracing to $42,000. Large holders accumulated 20,000 BTC, setting a monthly record. Meanwhile, Bitcoin options open interest on CME reached a historic high, reflecting increased market liquidity and a bullish outlook, with futures traders betting on 2024 rate cuts.

BlackRock's Bitcoin ETF Strategy and Market Impact

BlackRock pivots to cash redemptions for Bitcoin ETF pursuit, adopts ticker IBIT. 7RCC enters the race with a unique Bitcoin-ESG offering. Ark Invest refines strategy, while Grayscale faces uncertainty. Marketing heats up as Bitwise enlists Jonathan Goldsmith. Potential SEC approval for spot Bitcoin ETF bodes well for liquidity and bullish market predictions, with targets set at $200,000.  

SEC Delays Ethereum ETF Decisions, Stirring Market Concerns

The SEC delayed decisions on Ethereum ETFs, raising investor concerns. Bloomberg's Seyffart hints at a potential SEC shift, viewing Ethereum as a commodity. The Ethereum PoW development team disbanded post-Merge, moving towards decentralized governance, while the ETHW token's value and market cap have significantly declined.

Senator Warren Criticizes Blockchain Association's Regulatory Stance

Senator Elizabeth Warren accused the Blockchain Association of undermining efforts to address crypto's potential financing of terrorist organizations. She raised concerns about the industry's resistance to regulations and the revolving door between government and crypto firms. This follows debates on crypto's use in funding terrorism and the employment of former government officials in the crypto industry.  

Surging Interest in Solana Reflected in Google Searches and Fees

Solana's search volume on Google surged by 250% over the past two months, indicating a growing interest in the cryptocurrency. Additionally, Solana has seen a significant increase in inscriptions, surpassing 1 million. On December 16 alone, 287,000 inscriptions were minted. This boom in activity also led to a notable rise in Solana's network fees, with a 77% increase in monthly fees and a peak daily fee of nearly $300,000 in December. 

The increase in fees and inscriptions may positively impact the value of SOL, Solana's native token, which has recently seen a growth of 23.18% over 30 days. This growth is especially noteworthy as Solana burns 50% of its fee revenue, potentially creating deflationary pressure on SOL. 

Binance and CZ Fined Heavily in Anti-Money Laundering Case

The U.S. Court ordered Binance and its ex-CEO, Changpeng Zhao (CZ), to pay significant fines to the CFTC, totaling $2.85 billion. This comes after their guilty plea in a $4.3 billion anti-money laundering case. CZ personally owes $150 million, and faces a potential 10-year prison term. The settlement includes substantial disgorgement and transaction fee repayment, emphasizing compliance failures and U.S. customer solicitations.

Revolut Pauses UK Crypto Purchases Due to FCA Regulations

Revolut will temporarily pause UK Business crypto purchases from Jan. 3 due to FCA rules coming into effect on Jan. 8. This decision coincides with the FCA's efforts to enhance customer protection in crypto investments. The pause will not affect existing holdings or selling crypto. Other firms have similarly paused crypto offerings in response to the FCA regulations.  

Spanish Police Disrupt ISIS Crypto Financing Network

Spanish police dismantled a network financing ISIS through crypto, leading to the arrest of five individuals across Spain. The two-and-a-half-year investigation, part of "MIYA," involved collaboration with twelve countries' intelligence and security services. The network allegedly facilitated at least two thwarted attacks, had global reach, and was involved in indoctrination and recruitment.  

Extradition Uncertainty for Terraform's Do Kwon

Former Terraform CEO Do Kwon faces extradition to the US and South Korea. Montenegro appellate court revoked an extradition ruling due to a procedural error and ordered a retrial. The US SEC and South Korea both have pending charges against Kwon. His custody in Montenegro has been extended, with uncertainty about the final extradition decision.  

Blast Network's Record TVL Boosts Ethereum and DeFi Confidence

Blast Network, a Layer 2 scaling solution for Ethereum, has achieved a record-breaking Total Value Locked (TVL) of over $900 million, indicating growing institutional confidence in Ethereum and DeFi. The surge is attributed to the protocol's scalability, security, and user-friendly features. Blast aims to launch its mainnet in February 2024, offering attractive yields for early access members.  

Lisk's Transition to Ethereum Layer 2 for Enhanced Scalability

Lisk is transitioning to become an Ethereum Layer 2 solution using Optimism’s OP Stack and Gelato’s rollup platform. The move aims to improve scalability and accessibility, offering up to 90% lower fees. LSK token migration to Ethereum will enhance its usability across various dApps and DeFi protocols, with an initial airdrop and continued reward mechanisms planned.  

EigenLayer Expands Ethereum Staking with Increased Deposit Cap

EigenLayer, an Ethereum staking protocol, has increased its global deposit cap to 500,000 ETH due to high demand, with deposits exceeding $900 million. The protocol now supports six additional Ethereum liquid staking tokens, including osETH, swETH, OETH, EthX, WBETH, and AnkrETH. 

Since the cap increase, over 88,000 ETH, worth nearly $200 million, has been restaked in these new tokens, with swETH and EthX being the most popular. This surge in interest is partly driven by the expectation of a native token launch and a points reward program.

INJS Halts Inscriptions Minting on Injective Blockchain

INJS, an inscriptions marketplace on the Injective blockchain, halted inscriptions minting after concerns about fees and unverified wallets. The team promised to refund users and plans to re-launch later. INJS aimed to introduce INJRC-20, a token standard for simplifying inscription processes on Injective blockchain.  

Hacker Sells Binance's Law Enforcement Request Software

A hacker is selling Binance's law enforcement request software for $10,000 after compromising email credentials of police officers in Uganda, the Philippines, and Taiwan. The software can access emails, phone numbers, transaction IDs, and wallets, posing a cybersecurity risk. Binance is settling a $2.7 billion fine for money laundering violations.  

Certik Alerts OKX Wallet Users of Critical iOS App Vulnerability

Certik issued a warning to OKX Wallet users about a critical RCE vulnerability in the iOS app. OKX swiftly released an update in response. It is unclear if any funds were stolen. Recent hacks include $114M from Poloniex, $100M from HTX and Heco bridge, and $35M from Atomic wallet. Ledger's Connect Kit exploit led to a $484,000 loss.  

Genesis Obtains Court Order to Preserve DCG Ownership

Genesis, a bankrupt crypto lender, has successfully obtained a court order preventing Digital Currency Group (DCG) from selling or reducing its ownership until the bankruptcy proceedings conclude. This is crucial to preserve tax benefits linked to around $700 million worth of operating losses. These benefits are contingent on Genesis remaining part of DCG's tax-consolidated group.  

Friend Tech Teases V2 Amid Declining User Engagement

Friend Tech released a teaser for V2 amid a significant decline in user activity and transactions. Daily transactions have plummeted by 99% since September, with protocol inflow and fees following suit. The platform has seen a drastic reduction in active buyers, new users, and total value locked. Security issues, including scammers and bot activity, also persist.  

FTX Bahamas Unit Agrees on Asset Redistribution with U.S. Team

The liquidators of FTX's Bahamas unit have reached an agreement with the U.S. bankruptcy team, allowing for the pooling and redistribution of assets to FTX.com's worldwide customers. This paves the way for asset realization, subject to court approvals, following the commingling of client and corporate funds and the recent fraud conviction of FTX's founder, Sam Bankman-Fried.  

Top Altcoin Gainers and Losers

Gainers:

Sei SEI (+47.50%)

WOO Network WOO (+18.42%)

Helium HNT (+15.91%)

Losers:

Osmosis OSMO (-7.40%)

THORChain RUNE (-4.52%)

Arweave AR (-3.53%)