Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 29, 2023
Crypto Market Update
Written by Van
Table of Contents:
- House Committee Approves Stablecoins and Crypto Custody Acts
- Senators Reintroduce Bill to Combat Crypto Illicit Activities
- Indian Supreme Court Calls for Clarity on Crypto Regulation
Crypto Crime and Legal Actions
- UK Court Convicts Crypto-Linked Drug Gang
- US DoJ Seeks to Revoke FTX Founder's Bond
- Kannagi Finance Suspected of Rug Pull, Investors Left Reeling
Crypto Market Trends
- Bitcoin Whales Hint at Market Shift, Experts Anticipate Recovery
- Bitcoin and Ethereum Dominate as Stablecoins Decline
Blockchain and Crypto Projects
- IoTeX Launches W3bstream Devnet for Cost-Effective DePINs
- Arbitrum DAO Considers Grant Program Proposals
- Japan Blockchain Association Proposes Crypto Tax Revisions
Social Media and Crypto
- X Launches Revenue Sharing, Crypto Payments on Horizon?
NFT Market Updates
- CryptoPunks NFT Value Plummets Amid Market Challenges
- Azuki's Elemental Launch Triggers Price Drop, Market Skepticism
House Committee Approves Stablecoins and Crypto Custody Acts
The House Financial Services Committee has passed the Clarity for Payment Stablecoins Act, a bill that grants more power to state legislators to license payment stablecoin issuers. The legislation also includes some federal policies, such as requiring the Federal Reserve to have input in issuing requirements.
The bill received bipartisan support, with select Democrats and all committee Republicans voting in favor. The bill will now move to the House floor. In addition, the committee advanced the Keep Your Coins Act, which prohibits federal agencies from using digital currencies for lawful transactions and protects crypto users who opt for self-custody.
Senators Reintroduce Bill to Combat Crypto Illicit Activities
Senator Elizabeth Warren, along with three other senators, has reintroduced a bill aimed at cracking down on the use of cryptocurrencies for illicit activities. The Bank Policy Institute, which represents major banks like Bank of America and Citibank, supports the legislation, stating that the existing anti-money laundering framework should include digital assets.
The bill would expand requirements for digital asset wallet providers, miners, validators, and other participants in the crypto market, and would also require cryptocurrency ATM operators to provide updated physical addresses of their kiosks to FinCEN. Warren has been a vocal advocate for stricter regulation of cryptocurrencies.
Indian Supreme Court Calls for Clarity on Crypto Regulation
The Indian Supreme Court has directed the Union government to clarify whether or not it plans to establish a federal agency to investigate crypto-related crimes. The Court criticised the lack of regulation and an agency to handle crypto cases and urged the government to take action. India has been grappling with regulatory uncertainty in the cryptocurrency sector.
UK Court Convicts Crypto-Linked Drug Gang
A UK court has sentenced a gang of 12 individuals to a combined total of 88 years in prison for running a £4.6m ($5.2m) drug operation. The gang used friends and family members of incarcerated members to launder profits through cryptocurrency exchange Coinbase. The leader of the gang, Amir Khan, converted £1.65m of the ill-gotten funds into cryptocurrency, some of which may never be recovered.
US DoJ Seeks to Revoke FTX Founder's Bond
The US Department of Justice (DoJ) has filed a submission to a federal judge to revoke Sam Bankman-Fried's bond. Bankman-Fried, the disgraced founder of FTX, shared the private diary of former Alameda CEO Caroline Ellison with the New York Times.
The DoJ claims that Bankman-Fried's actions go beyond his right to defend himself and amount to an attempt to intimidate witnesses and interfere with a fair trial. Bankman-Fried's trial is scheduled to begin on October 2, 2023.
Kannagi Finance Suspected of Rug Pull, Investors Left Reeling
Decentralized yield aggregator Kannagi Finance is suspected of conducting a rug pull, causing its total value locked to drop from $2.13 million to $0.17. The project's audit was completed by SolidProof in June. The project's website has expired, and its social media accounts have been deleted.
Bitcoin Whales Hint at Market Shift, Experts Anticipate Recovery
Bitcoin whales have deposited $275 million in BTC to exchanges as per @whale_alert, potentially pointing to large-volume sales and market crash potential. Long-term investor positions have reached a one-month low. According to Kaiko, Bitcoin and Ethereum's volatility is at a two-year low, pointing to potential long-term holding.
Indicators hint at potential price recovery despite bearish sentiment. Rachel Lin, CEO of derivatives decentralized exchange SynFutures, sees BTC's dip below $30,000 as a short-term correction. Crypto firm Santiment sees potential price rise with Bitcoin now trading at $29,313.
Bitcoin and Ethereum Dominate as Stablecoins Decline
In Q2 2023, Bitcoin and Ethereum's combined market share increased to over 70% of the total cryptocurrency market capitalization, the highest since April 2021. During the same period, stablecoin market cap declined by 7% to $128 billion due to regulatory actions against major stablecoins.
Ethereum's Shapella upgrade led to increased staking, with staked Ethereum reaching 23.54m ETH by the end of June, a 48.4% increase. Layer 2 networks, like zkSync, also saw significant growth, indicating increased adoption for scalable and efficient transactions. Bitcoin's daily average transactions tripled due to the rise of NFTs.
IoTeX Launches W3bstream Devnet for Cost-Effective DePINs
IoTeX has launched W3bstream Devnet, a cost-effective and efficient infrastructure for building decentralized physical infrastructure networks (DePINs). DePINs integrate blockchain and decentralized applications (dApps) with physical systems such as supply chains and energy grids. W3bstream Devnet aims to reduce development costs and expedite the go-to-market process for DePIN dApps.
IoTeX claims that the construction of DePIN projects can now be completed in weeks at a fraction of the cost. Several projects, including Drife and React Network, will utilize W3bstream Devnet. The DePIN market is estimated to reach $3.5 trillion by 2028.
Arbitrum DAO Considers Grant Program Proposals
Arbitrum DAO is considering two governance proposals to launch grants programs, collectively requesting around $5 million worth of ARB tokens. The grants will fund ecosystem development, with ARB token holders having the power to decide which programs receive funding. Additional entities on Arbitrum, like the trading DEX Camelot, have also sought multi-million dollar token allocations.
Japan Blockchain Association Proposes Crypto Tax Revisions
The Japan Blockchain Association (JBA) has requested the government revise the country's crypto tax system, claiming it hinders the growth of web3 businesses. JBA suggests a 20% flat rate for personal transactions and canceling taxes on crypto transaction profits. The association also wants to eliminate year-end unrealized profit taxation on third-party-issued tokens.
X Launches Revenue Sharing, Crypto Payments on Horizon?
Twitter, now known as X, has launched ad revenue sharing for eligible creators globally. Creators with a minimum of 15 million impressions, 500 followers, and a Blue verification subscription will be eligible for payouts.
Stripe will be the payment processor for the payouts, but X has not announced any plans for crypto payments. There is speculation that Dogecoin and Bitcoin will be among the first cryptocurrencies supported by X.
Top Altcoin Gainers and Losers
Maker MKR (+6.09%)
Quant QNT (+5.05%)
SHIBA INU SHIB (+4.46%)
XDC Network XDC (-6.50%)
Immutable X IMX (-5.68%)
Stellar Lumens XLM (-2.87%)
NFT Market Map
CryptoPunks NFT Value Plummets Amid Market Challenges
CryptoPunks, a "blue chip" NFT project, experienced a 60% drop in value within one week, facing challenges in the NFT market. The floor price for CryptoPunks NFT collections dropped to 47.69 ETH from a peak of 114 ETH during the 2021 NFT bull market.
Sales volume declined by 60%, and transactions decreased by 64%. Additionally, the number of unique active wallets decreased by about 20%, and CryptoPunks' monthly sales volume dropped from $30.43 million to less than $10 million by the end of June.
Azuki's Elemental Launch Triggers Price Drop, Market Skepticism
Azuki's attempt to recoup prices with the launch of Elementals resulted in a 63% drop in floor prices for NFTs within the collection. Despite a successful launch and over $30 million in sales, holders were dissatisfied with the items received, triggering market skepticism.
The floor price of Elementals also decreased further, jeopardizing Azuki's position in the top 10 collections by market capitalization. However, Ethereum remained the leading blockchain for NFT sales.
This article has been refined and enhanced by ChatGPT.