Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 17, 2024

Bitcoin's Volatility Amid Fed Speculation and High-Profile Transfers

Bitcoin's price initially rebounded above $43,000 amid Federal Reserve rate pause speculations. Later, JPMorgan CEO Jamie Dimon's criticism coincided with a drop to $42,400, before BTC saw a slight recovery to $42,500 at the time of writing. Grayscale transferred $795 million in BTC to Coinbase, impacting prices. Bitcoin saw its first weekly 'golden cross,' while miners sold over $450 million in BTC.

Ethereum's Growth and Technical Developments Stir the Market

Ethereum's dominance over Bitcoin grows with a 22% surge, driven by new addresses and dropping exchange supply. The Dencun upgrade, featuring proto-danksharding, is tested on Goerli, aiming to reduce costs and storage demands. Buterin clarifies that L2s using Celestia are validiums, not true rollups, stirring debate.

Binance's Market Dynamics and DEX's Steady Rise

In 2023, Binance's market share fell to 48.7% due to regulatory challenges, with CEO Changpeng Zhao's resignation leading to a significant dip. Concurrently, OKX gained 4.3% market share, and Bybit gained 2.2%. Decentralized exchanges remained stable, with DEX Orca seeing significant growth to 9.22%, and PancakeSwap V3's launch boosting its trading volume.  

US Treasury Temporarily Eases Crypto Reporting Requirements

The US Treasury and IRS have temporarily halted new digital asset reporting requirements, granting relief to businesses until specific regulations are formalized. This pause does not alter existing rules for reporting cash transactions exceeding $10,000. Cryptocurrency brokers face increased scrutiny, and proposed regulations may require reporting sender details, sparking industry concerns.  

Terraform Labs' Legal Battle and SEC Scrutiny

The SEC v. Terraform Labs trial has been rescheduled to March 25, as Do Kwon remains in Montenegro awaiting potential extradition. The case involves allegations of a "multi-billion dollar crypto asset securities fraud." Pretrial motions have progressed, with the SEC and Terraform receiving judgments related to unregistered securities and security-based swaps.  

FTX Legal Battles Continue with Family Involvement

FTX's lawsuit against Sam Bankman-Fried's parents seeks dismissal. The lawsuit alleges they benefited from FTX's misconduct, seeking to claw back cash and gifts, including a $16.4 million Bahamas villa. The parents' lawyers argue that claims are based on their relationship with their son and fail to allege underlying breach or actual knowledge of misconduct. 

Bitcoin ETFs Boom with Institutional Investments

ProShares filed for five Bitcoin ETFs, following SEC's nod to 11 spot Bitcoin ETFs. Spot Bitcoin ETFs recorded $1.8 billion in daily volume on January 16, surpassing all 2023 ETFs combined. Spot Bitcoin ETFs in the US witnessed over $10 billion in trading volumes, indicating robust institutional interest. 

BlackRock's iShares Bitcoin Trust attracted $700 million in three days, while Grayscale's fund saw over $1.1 billion in outflows, likely due to higher fees. BlackRock acquired 11.5k BTC amid a bearish market. ARK Invest invested $15.9 million in its own Bitcoin ETF, moving away from ProShares Bitcoin Strategy ETF and Grayscale Bitcoin Trust.  

Multichain CEO Returns, Addressing Asset Security Concerns

Zhaojun He, Multichain's CEO, resurfaced on Telegram after being detained by Chinese authorities since May 2023. This sparked hope among investors seeking clarity on their assets, which were moved to unknown addresses without consent during his absence. The situation began when Chinese police, investigating a scam, tracked stolen funds to Multichain. Most node operators were arrested, and their access and keys were seized. Fantom, a major user and victim, is working with law firms to recover assets, but faces legal challenges in China.

Socket Protocol's Security Breach and Asset Recovery Efforts

Socket Protocol, a cross-chain interoperability platform, recently faced a significant security breach, resulting in a loss of $3.3 million. The exploit targeted users with infinite approvals to Socket contracts. Socket responded by pausing all affected contracts and advising users to revoke approvals to prevent further losses. The largest individual loss recorded was $656,945. 

The breach was attributed to a faulty smart contract update implemented three days prior to the incident. Socket has since resumed operations, assuring that the affected contract is paused and the damage contained. They are prioritizing the recovery of stolen assets and cautioning users against phishing scams by fake Socket accounts.

Ripple Eyes Global Expansion Amid Regulatory Hurdles

Ripple CEO Garlinghouse revealed plans for a global IPO due to a "hostile" regulatory environment in the US. The company halted intentions for an IPO amid an ongoing legal battle with the SEC. However, he hinted at potential reconsideration under new SEC leadership. Ripple also announced a $1 billion stock buyback initiative for early investors.  

Polygon Faces Controversy Over Token Transfer and Staking

A significant transfer of 7.6 million MATIC tokens from an unknown wallet to the Polygon Staking platform has sparked controversy. Allegations of irregularities in Polygon's staking program surfaced, with the platform accused of deviating from its announced token allocation plan. The situation has led to a decrease in MATIC price and trading volume. 

Uniswap's Strategic Move for Long-Tail Asset Capture

Uniswap allocates $300K for v4 development, aims to capture long-tail assets. V2 manages $1.8B in total value locked. Grant duration is two years, extendable based on KPIs. Recipient must achieve 5% TVL through tokens launched via the new front end ($150M). Uniswap v3 surpassed BTC in daily fee generation. V4 introduces on-chain limit orders and auto-compounded LP fees.  

Chiliz and Klaytn Tokens Surge Amid M&A Speculation

Chiliz and Klaytn tokens surge over 10% at one point today on M&A hopes as Chiliz plans aggressive M&A strategy, while Klaytn and Finschia Foundation propose a merger, aiming to create a Web3 powerhouse in Asia with over 420 DApps. CHZ once rallied 10% to over $0.11, KLAY once rose 14.7% to $0.228, and FNSA token drops 6% in the past 24 hours.  

Theta Labs Partners with NHL for NFT Fan Engagement

Theta Labs and Vegas Golden Knights partner for NFT fan experiences. NFTs unlock various benefits including game tickets, memorabilia, and VIP experiences. The Knights, 2023 NHL champions, aim to engage fans and monetize new opportunities. Theta, a top 75 crypto project, powers this with its blockchain and Web3 platform. THETA token's market cap stands at $1.08 billion, ranking 72nd.  

Cardano's ADA Faces Criticism and Defense

K33 Research criticizes Cardano's ADA, highlighting its limited presence in stablecoin market and alleged lack of meaningful DeFi activity. They question ADA's utility and future, likening Cardano to projects that fell into irrelevance. In response, Charles Hoskinson dismisses the critic, raising concerns about Cardano's future trajectory.  

Top Altcoin Gainers and Losers

Gainers:

Bittensor TAO (+15.82%)

Render Token RNDR (+8.21%)

Chainlink LINK (+6.78%)

Losers:

Celestia TIA (-6.65%)

Blur BLUR (-5.39%)

Stacks STX (-4.99%)