Coin360 Daily Dispatch | Crypto Market Updates & Highlights | February 29, 2024

This article comes to you with the generous support of Stake.com. Discover the excitement and rewards that await you at Stake.com with a 200% deposit bonus!

Crypto Market Update

Table of Contents

Crypto Market Overview

• Bitcoin's Monumental Surge Amid Economic Indicators

Ethereum's Market Dynamics

• Ethereum's Resilience and Investor Confidence

Emerging Trends in ETFs

• Explosive Growth in Bitcoin ETF Popularity

Crypto Exchanges and Platforms

• Gemini's Historic Cryptocurrency Repayment Effort
• Exchange Outages Highlight Crypto Market Sensitivity
• Morgan Stanley Eyes Spot Bitcoin ETFs
• Speculation Swirls Around Bezos' Crypto Move

Regulatory Actions and Legal Affairs

• SEC Cracks Down on Terraform Labs

Blockchain Innovations and Integrations

• Wormhole Revolutionizes Cross-Chain Transfers
• OKX Enhances DeFi Access with Uniswap Integration

Security Concerns and Responses

• Rising Tide of Crypto Hacks and Scams
• Shido Token's Vulnerability Exposed
• Seneca Protocol Recoups Stolen Funds

Global Initiatives and Investments

• IOTA Commits to Startup Growth in UAE and Africa

NFTs and Gaming

• NFT Royalties Enforcement Shapes the Market
• Gods Unchained Expands to Mobile Gaming
• Parallel Card Game Launches Open Beta

Bitcoin's Monumental Surge Amid Economic Indicators

The Federal Reserve's preferred inflation gauge indicated a 0.4% month-over-month increase, contributing to Bitcoin's recovery above $63,000 before going down to $62,000. Bitcoin miners' reserves plummeted to their lowest since 2021, reflecting a trend of asset offloading in anticipation of the halving event. A staggering $34 billion in Bitcoin changed hands during a five-day rally, marking an epic price rally. 

Newbie Bitcoin whales recorded unprecedented unrealized profits of $7.3 billion, underscoring the lucrative gains from the asset's recent surge. Yesterday, Bitcoin logged its biggest single-day gain since October, with market-neutral bets yielding three times that of U.S. Treasury notes, signaling strong market optimism. 

The U.S. government moved $922 million worth of seized Bitcoin, coinciding with the asset's price breaking the $60,000 mark. Lastly, Bitcoin spot trading volume on centralized exchanges reached $34 billion, the highest level since the FTX collapse, highlighting the growing trading activity and market interest.

Ethereum's Resilience and Investor Confidence

Ethereum's price stabilizes around $3,340 after last night’s crash. A significant increase in Ethereum staking and a decrease in exchange balances highlight growing investor confidence. Prominent trader Peter L. Brandt's optimism for Bitcoin and Ethereum amidst US debt concerns reflects a shift towards digital currencies as future monetary systems. Ethereum's intensified buying activity targets a major resistance at $3.6K, aiming for a new all-time high. The collective sentiment underscores a bullish outlook for Ethereum, backed by technical and on-chain analysis, despite potential volatility and corrections.

Explosive Growth in Bitcoin ETF Popularity

Bitcoin ETFs have surged in popularity and trading volume, outpacing the top two equities ETFs with more individual trades, according to a Bloomberg analyst. Launching in January, these ETFs, particularly noted by Bloomberg's Eric Balchunas, indicate significant retail investor activity with most transactions on the smaller side. This trend is described as Bitcoin's "IPO moment," making it easily accessible to investors. U.S. Bitcoin ETFs set a new record with a $7.7 billion trading volume on February 28, doubling the previous record. BlackRock’s iShares Bitcoin ETF led with $3.35 billion in trades. 

Gemini's Historic Cryptocurrency Repayment Effort

Gemini commits to returning over $1.1 billion in cryptocurrencies to Earn users, diverging from repaying in historic dollar equivalent, a historic settlement. An agreement with NYDFS requires over $1 billion to be returned to customers and a $37 million fine. Allegations include inadequate due diligence and misleading representations in the high-yield Earn program, with Genesis Global Capital defaulting on about $940 million worth of loans.  

Exchange Outages Highlight Crypto Market Sensitivity

Coinbase experienced technical glitches during Bitcoin's surge to $64,000, causing panic among users with zero balance displays. CEO Brian Armstrong attributed the chaos to overwhelming traffic. Similar issues reportedly affected Binance and KuCoin. The incident, occurring before the Bitcoin halving event, underscored the crypto market's sensitivity to exchange reliability during market movements.  

Morgan Stanley Eyes Spot Bitcoin ETFs

Morgan Stanley is evaluating adding spot bitcoin ETFs to its brokerage platform, following the SEC's approval. The move could potentially drive significant investment into these products. The bank previously offered wealthy clients access to bitcoin funds in 2021, indicating a growing interest in crypto-related investments within traditional financial institutions.  

Speculation Swirls Around Bezos' Crypto Move

Rumors suggest Jeff Bezos sold $8.5 billion in Amazon stock to buy Bitcoin, fueling speculation about his involvement in crypto. The speculation is based on unconfirmed sources and billionaire FOMO. Bezos has not confirmed, and no solid evidence supports the claim. 

SEC Cracks Down on Terraform Labs

The SEC accused Terraform Labs of diverting $166 million to a law firm before court decisions. The regulator seeks to recover $81 million from legal payments. It alleged the funds were transferred suspiciously before bankruptcy. The legal team also represents Terraform’s former CEO, Do Kwon, facing legal issues related to the Terra/Luna collapse and alleged investor deception.  

Wormhole Revolutionizes Cross-Chain Transfers

Wormhole introduces native token transfers (NTT) for cross-chain transactions, aiming to preserve token properties and address liquidity fragmentation. Unlike existing methods, NTT enables direct transfer of native tokens between blockchains, maintaining ownership and customizability. NTT is seen as a pivotal step in blockchain evolution, offering long-term solutions for decentralized finance.  

OKX Enhances DeFi Access with Uniswap Integration

OKX has integrated Uniswap's API into their DEX, offering gas-free trading through "Snap." This enables simpler token swapping and access to UniswapX's liquidity. Users pay no gas fees as liquidity providers cover the cost. The integration aims to eliminate slippages, MEV attacks, and failed transactions, enhancing DeFi user experience and expanding on-chain use cases.  

Rising Tide of Crypto Hacks and Scams

In 2024, cryptocurrency losses to hacks and rug pulls surpassed $200 million, a 15.4% increase from 2023, with Ethereum being the most targeted chain. February saw a 50% decrease in stolen funds from January, with notable losses from attacks on PlayDapp and FixedFloat. "Pig butchering" crypto romance scams surged 85 times since 2020, with doubled revenue from 2022 to 2023. A WalletConnect survey revealed varied experiences with crypto-related losses among users in the US and UK.  

Shido Token's Vulnerability Exposed

Shido's token plummeted 85% due to an exploit, resulting in the withdrawal of over 4.3 billion tokens worth approximately $35 million. Similar Web3 projects fell victim to thefts, with a reported $38.9 million stolen in January 2024. The vulnerability of blockchain projects was underscored, prompting concerns within the cryptocurrency community.  

Seneca Protocol Recoups Stolen Funds

Seneca Protocol recovers 80% of $6 million stolen in an exploit through negotiations and a bounty offer. Attacker returned $5.3 million in ETH, keeping 20% as a bounty. Remaining funds moved to new addresses. Protocol activates recipient address holding $5.4 million. Collaboration with security providers and law enforcement ongoing.  

IOTA Commits to Startup Growth in UAE and Africa

The IOTA Ecosystem Foundation has committed $10 million to startups in the UAE and Africa, focusing on digital trade and tokenization. Following its registration in the UAE, IOTA saw a 43% increase in its native token value. Initial investments will be directed towards trade technology startups, aiming to streamline global trade transactions.