Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 12, 2023
Crypto Market Update
Written by Van
Table of Contents:
Macro Market Updates
- US Inflation Drops, Bitcoin Stabilizes, and Markets React
- ETH Staking Reaches 20% Despite Regulatory Concerns
- US DOJ Moves Bitcoin Linked to Silk Road
- South Korea to Require Crypto Disclosure in New Accounting Rules
- LBRY Inc Fined for Securities Law Violations
Cryptocurrency Exchanges & Platforms
- Coinbase Introduces Encrypted Messaging with XMTP Partnership
- FTX Customer Claims Portal Offline Amid Legal Battles
- Osmosis Launches Supercharged Liquidity to Boost Capital Efficiency
- Starknet's 'Quantum Leap' Upgrade Enhances Ethereum's Transaction Speed
- Lookonchain Detects Significant Curve DAO Token Movements
- Upcoming Token Unlocks for ApeCoin, Immutable, and Aptos
- Aptos Network Announces v1.5 Upgrade Amid Stable Token Prices
Legal and Regulatory Developments
- Legal Opinions Differ on LBRY v. SEC Ruling Impact for XRP
- Celsius Sues StakeHound over Unreturned Tokens
- Rise of Duplicate Tokens Raises Market Manipulation Concerns
- Fantom Foundation Endorses Alternative Bridge Solutions After Security Incidents
Blockchain & Cryptocurrency Adoption
- 7-Eleven Launches Slurpee NFTs on Polygon Network
- Cool Cats NFT Project to Develop Games with Licensed IP
- On-Chain Music Startup Sound.xyz Launches NFT Platform
US Inflation Drops, Bitcoin Stabilizes, and Markets React
US inflation rate in June fell to 3%, core rate dropped to 4.8%. Despite this, Fed is expected to hike rates. Bitcoin rose before stabilizing around $30,500. Traditional markets reacted positively. Ethereum traded at nearly $1,900.
Falling inflation seen as bullish, rising rates impacted stocks and crypto. Bitcoin's lack of reaction suggests market cycle placement.
ETH Staking Reaches 20% Despite Regulatory Concerns
Ether (ETH) staking has reached 20% of all tokens locked up, but inflows have slowed due to regulatory concerns. Investors have deposited 23.9 million ETH, accounting for a fifth of the token's supply. Flows decreased after regulatory scrutiny on centralized exchanges, but decentralized staking protocols have seen growth.
US DOJ Moves Bitcoin Linked to Silk Road
Bitcoin once linked to the Silk Road is on the move after the US Department of Justice (DOJ) sold $215 million worth on Coinbase. The DOJ is now transferring 9,825 BTC ($302.2 million) to unused addresses. These pending transactions are facing delays, potentially due to low fees. The government has missed out on $5.6 billion by selling rather than holding BTC.
South Korea to Require Crypto Disclosure in New Accounting Rules
South Korea's financial markets regulator, the Financial Services Commission (FSC), has announced that domestic companies will be required to disclose their cryptocurrency holdings starting in January 2024. This requirement is part of the country's new accounting rules aimed at enhancing accounting transparency in virtual asset transactions.
The FSC stated that companies will need to provide detailed information on token details, business models, internal accounting policies, token classification, book value, and market value of their cryptocurrency holdings.
LBRY Inc Fined for Securities Law Violations
LBRY, Inc, the company behind the LBRY protocol, has been found liable for violating US securities laws. The company has been fined $111,614 and must register with the SEC to offer unregistered securities. The LBRY token collapsed by nearly 18% following the ruling. LBRY, Inc plans to wind down its operations.
Coinbase Introduces Encrypted Messaging with XMTP Partnership
Cryptocurrency exchange Coinbase has partnered with startup XMTP to introduce an encrypted messaging service for users of its Coinbase Wallet. The feature supports Ethereum addresses that can be easily read, instead of lengthy character strings. Coinbase users can also make cryptocurrency payments through the messaging service.
FTX Customer Claims Portal Offline Amid Legal Battles
Crypto exchange FTX's customer claims portal went offline just an hour after its launch, hindering users from making claims online. However, alternative options such as a digital form and traditional mail were offered for claim submissions.
FTX is currently facing bankruptcy proceedings and legal battles, with a debt of over $3 billion. Former CEO Sam Bankman-Fried is set to begin a trial in October. The relaunch of FTX.com has been discussed but no concrete plans have been shared.
Osmosis Launches Supercharged Liquidity to Boost Capital Efficiency
Osmosis, the largest decentralized exchange (DEX) protocol on the Cosmos network, has introduced a new feature called "supercharged liquidity" to improve capital efficiency. Liquidity providers can now concentrate their capital on specific price ranges, potentially leading to more efficient use of funds.
The feature is similar to concentrated liquidity found on Ethereum DEXs like Uniswap. Osmosis plans to offer a 5% migration bonus to encourage liquidity providers to transition to the new system.
Starknet's 'Quantum Leap' Upgrade Enhances Ethereum's Transaction Speed
Blockchain scalability project Starknet has deployed its "Quantum Leap" upgrade, significantly increasing transactions per second (TPS) on the Ethereum blockchain. TPS peaked at 90 during testing, with consistent performance at 37 TPS.
The time needed to confirm and report a transaction was about 10 seconds, slightly higher than expected. Starknet plans further upgrades to reduce transaction fees and shorten block intervals.
Lookonchain Detects Significant Curve DAO Token Movements
Onchain analytics platform Lookonchain has identified significant transactions involving Curve DAO (CRV) tokens. Four newly created wallets withdrew 10.2 million CRV, worth $8.12 million, from Binance.
Speculation suggests institutional investors may be behind the transactions, potentially indicating a buying opportunity for CRV tokens. Some respondents downplayed the significance of the transactions, while others highlighted the relatively small volume.
Upcoming Token Unlocks for ApeCoin, Immutable, and Aptos
APE will see $29.95 million (4.2% of supply) unlocked, IMX will have $12.67 million (1.7% of supply) unlocked, and APT will have over $32 million (2.16% of supply) unlocked on 12 August 2023. These unlocking events may significantly impact the respective cryptocurrencies.
Aptos Network Announces v1.5 Upgrade Amid Stable Token Price
The Aptos network plans a v1.5 upgrade for its blockchain, focusing on fungible asset standards. APT token saw a 3% price drop, staking rewards reduced by 1.5% annually. Despite unlocking tokens, APT remained stable around $7, with market trends and bitcoin volatility anticipated to affect altcoins.
Legal Opinions Differ on LBRY v. SEC Ruling Impact for XRP
Legal experts have commented on the implications of the final ruling in the LBRY v. SEC case for XRP. Lawyer John Deaton views the recent ruling in SEC v. LBRY as a positive development, stating that the decision to exclude LBRY's secondary sales from the category of securities is "better than nothing".
However, lawyer Bill Morgan argues that the ruling is what the SEC wants, as it avoids deciding on the issue of secondary market sales. Deaton maintains that while not a sweeping victory, the ruling is preferable to an unfavorable one and provides some relief for the community.
Celsius Sues StakeHound over Unreturned Tokens
Cryptocurrency lender Celsius Network has filed a lawsuit against liquid staking platform StakeHound, claiming that StakeHound failed to return $150 million worth of tokens. Celsius is seeking the return of 40 million MATIC, 66,000 DOT, 25,000 staked ETH, and 35,000 ETH from StakeHound.
Celsius argues that StakeHound's demand for arbitration violates the US Bankruptcy Code. Celsius has been working to restructure since filing for bankruptcy almost a year ago and recently presented a restructuring plan.
Rise of Duplicate Tokens Raises Market Manipulation Concerns
Tokens like SQUID2 and SHIB2 have concentrated token holdings and interconnected wallets, while the risks of investing in these tokens outweigh the potential returns. Developers and insiders tend to benefit while average investors suffer.
Fantom Foundation Endorses Alternative Bridge Solutions After Security Incidents
The Fantom Foundation has endorsed Axelar and LayerZero as alternative bridge solutions after suspicious security incidents involving the Multichain bridge, which led to large amounts of crypto assets being transferred under suspicious circumstances. The foundation aims to diversify into other bridge solutions and is waiting for an official statement from Multichain.
Top Altcoin Gainers and Losers
FTX Token FTT (+11.51%)
Conflux CFX (+7.44%)
BitDAO BIT (+5.59%)
Mina MINA (-3.05%)
Stellar Lumens XLM (-2.85%)
Avalanche AVAX (-2.32%)
NFT Market Map
7-Eleven Launches Slurpee NFTs on Polygon Network
Convenience store chain 7-Eleven is launching its first NFT digital collectible for Slurpee fans on the Polygon network. Customers can create and customize their own Slurpee NFTs through a mobile device.
The move aims to engage customers and offer a unique experience. 7-Eleven is also launching a limited-time merchandise collection and offering discounts to mark the occasion.
The company's foray into digital collectibles reflects mainstream retailers adopting digital artwork and could pave the way for future customer engagement and loyalty programs.
Cool Cats NFT Project to Develop Games with Licensed IP
Cool Cats, a popular NFT project, has licensed its IP to develop three new games with nWay, iCandy, and Sync Studios. The games will be released within the next nine months and include a competitive multiplayer arcade game, a browser-based 2D endless runner game, and a mobile match-3 puzzle game.
Cool Cats aims to develop into a globally known character brand and content company. Other NFT collections are also exploring gaming and entertainment opportunities to monetize their IP.
On-Chain Music Startup Sound.xyz Launches NFT Platform
Sound.xyz, an on-chain music startup, has launched its artist-first NFT platform after raising $20m in Series A funding. Sound has paid out $5.5m in total to 500 artists in its closed beta phase. Andreessen Horowitz led the funding round.
This article has been refined and enhanced by ChatGPT.