Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 24, 2024

Whale Activity, Macro Factors, and Bitcoin ETFs Drive Volatility and Predictions

Bitcoin rebounded to $40,000, boosting its market cap by $30 billion. Whale activity, particularly on Bitfinex, contributed to this surge, with Bitcoin trading at a significant premium. Arthur Hayes highlighted macroeconomic factors, not GBTC outflows, as key drivers of Bitcoin's volatility. 

Bitcoin ETFs experienced minor net outflows of $100 million, while BlackRock added 4,080 Bitcoins. CryptoQuant's CEO advised accumulating Bitcoin, citing derivative market sales as the price drop's cause. Some analysts foresee Bitcoin surpassing $46,000 post-halving, despite recent market corrections.

Ethereum ETFs: SEC Resistance vs. Industry Optimism

The SEC's rigid stance against spot Ethereum ETFs contrasts with the optimism among issuers and analysts. While internal resistance within the SEC is strong, industry leaders like JPMorgan and Bloomberg's Eric Balchunas offer varied approval odds, from cautious to optimistic. SEC Commissioner Hester Peirce suggests a smoother path, akin to Bitcoin ETFs. Major firms like BlackRock and Fidelity await decisions on their applications, with the crypto community keenly anticipating outcomes between May and August.

Celsius Network's Ethereum Strategy Amid Bankruptcy

Celsius Network transferred nearly $40 million in Ethereum to Coinbase, part of a larger $621 million deposit strategy amid bankruptcy. This move, involving 540,029 ETH, aims to settle debts with creditors. Ethereum's price shows cautious movement. Concurrently, Geth's Ethereum client share dropped to 78.8% due to centralization concerns, sparking fears of a critical bug potentially impacting validators' staked Ether and network stability.

SEC's Firm Stance in Ripple's XRP Case

The SEC refutes Ripple's objections in their legal tussle, focusing on Ripple's financial data and XRP sales contracts for compliance and penalty assessments. Analysts doubt a near-term spot XRP ETF approval, pointing to the ongoing SEC case and lack of an XRP futures ETF. RippleX nears launching the XRP Ledger EVM sidechain, featuring enhanced UI and bridging capabilities. Ripple and GCC Exchange have confidentially settled a $15 million dispute over XRP transfer payments.

Snowden's Support for Tornado Cash Co-Founder

Former CIA contractor Edward Snowden supports legal fund for Tornado Cash co-founder Roman Storm, facing money laundering charges. He urges public contribution, asserting "Privacy is not a crime." The DOJ accused Storm and colleague Roman Semenov of laundering over $1 billion, threatening open-source software development. Snowden also ridiculed JPMorgan CEO Jamie Dimon over the SEC's Bitcoin ETF approval.  

Solana Labs Unveils SPL Token Extensions

Solana Labs has introduced token extensions for the SPL token standard on the Solana network. These extensions bring advanced features such as augmented token interactions, transfer fees for every swapped token, and zero-knowledge proof-powered confidential transfers. Major firms like Paxos and GMO-Z.com Trust Company have already leveraged the new token extensions.  

GAMEE's GMEE Token Theft on Polygon

On January 22, GAMEE's GMEE token contracts on Polygon were compromised, resulting in the theft of 600 million GMEE tokens worth $15.28 million. The tokens were converted to ETH and MATIC through decentralized exchanges, causing GMEE's price to drop from $0.02554112 to as low as $0.00897251 before recovering. GAMEE plans to support affected users and provide ongoing updates.  

0x Labs' Gasless Swaps API: Tx Relay

0x Labs released an API, Tx Relay, enabling "gasless swaps" for exchanges, reducing failed trades and obfuscating gas fees. The shift to intents-based systems in DeFi allows users to express trade desires without managing on-chain actions. Tx Relay has been used by Robinhood, Matcha, and Coinbase Wallet, and is compared to intent-based systems by 0x’s director of product management.  

Rabby Wallet's New Points Program

Rabby Wallet has launched a points program to incentivize users, including those who previously used Metamask Swap. Users can earn points through referrals, swapping, and using the gas top-up feature. The program aims to attract users to the multi-chain DeFi wallet from DeBank and aligns with the trend of Web3 projects using points for rewards and future token airdrops.  

Radiant Capital's Repayment Plan Post-Exploit

Radiant Capital has begun repaying $4.5 million debt from a flash loan exploit. An initial payment of 1,190 Ether ($2.6 million) has been made, with 720 ETH ($1.6 million) remaining. Repayment will take ~90 days using OpEX funds and may involve DAO reserve funds. The exploit affected the Arbitrum USDC lending pool, equivalent to 1.3% of total value locked.  

Global Illicit Financial Flows Unmentioned in Crypto Report

A Nasdaq report reveals $3 trillion in illicit funds flowing through the global financial system in 2023, facilitating crimes such as drug and human trafficking and terrorist financing. Despite this, the report did not mention cryptocurrencies as conduits for these illicit funds. Tether and stablecoins, however, were mentioned in relation to illicit activities.  

Nexo's $3 Billion Claim Against Bulgaria

Nexo, a cryptocurrency lending platform, seeks $3 billion in damages from Bulgaria after a failed criminal investigation. The company's claim, submitted to the World Bank's ICSID, follows dropped charges against its executives. Nexo alleges reputational damage and lost opportunities, including a potential IPO and a major sports partnership, totaling billions in potential value.  

South Korean Prosecutors Target Crypto Platform Executives

South Korean prosecutors have issued an arrest warrant for Bang, a significant figure in the investigation of withdrawal suspensions at Delio and Haru Invest. The alleged involvement of B&S Holdings, majority-owned by Bang, in the suspension of services has led to charges of fraud and breach of trust. Complaints from affected customers have prompted travel restrictions for key members of the implicated firms.  

"Donald Trump" Wallet's Meme Coin Windfall

A wallet labeled "Donald Trump" saw its TRUMP meme coin holdings, initially worth a few thousand dollars, skyrocket to over $1 million. This surge is linked to speculative bets on Trump's presidential campaign. The wallet, also holding ether and wrapped ether, peaked at $4 million. Trump's indirect crypto engagement and political endorsements significantly influenced the token's value.

Dogwifhat's Rise Following Bitget Listing

Dogwifhat (WIF), a Solana meme coin, soared by 46% to $0.3214 following its listing on Bitget, boosting its market cap to $332 million. Solana (SOL) also rose by 5.84%, trading at $86.87. The surge in WIF and other Solana-based meme coins like BONK, which gained 7.5%, reflects the growing interest in these assets on platforms like Binance and Bybit.

Top Altcoin Gainers and Losers

Gainers:

Manta Network MANTA (+29.06%)

Bittensor TAO (+22.01%)

IOTA MIOTA (+14.55%)

Losers:

Siacoin SC (-13.48%)

Frax FRAX (-1.82%)

Chiliz CHZ (-1.56%)