Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 10, 2023
Crypto Market Update
Written by Van
Table of Contents:
Regulatory Updates and Legal Actions
- Massive Crypto Market Drop Triggered by SEC Lawsuits and Rumours
- Crypto.com Halts Institutional Services in U.S. Amid Regulatory Concerns
- US CFTC Wins Landmark Case Against DeFi Organization, Ooki DAO
- Revised U.S. Stablecoin Bill Revealed, Indicates No Digital Dollar Plans
Crypto Exchanges and Market Manipulation
- Well-Timed BNB Sell-Off Preceded SEC's Action on Binance
- Alleged Market Manipulation Before Major Tokens' Price Crash
- Potential SHIB Whale Activity Signals Market Redistribution
Technological Advancements and Blockchain Updates
- Ethereum's Success Roadmap Revealed by Co-founder Vitalik Buterin
- Optimism's Bedrock Upgrade Slashes Ethereum Layer 2 Transaction Fees
- Ava Labs Introduces Avalanche Arcad3 for Traditional Game Developers
Crime, Security and Scam
- Arrests in Connection with Historic Mt Gox Bitcoin Heist
- Prominent Crypto Twitter Accounts Compromised by Phishing Scams
- Social Media Platforms Accused of Enabling Crypto Scams
- Nigeria Imposes 10% Tax on Crypto Gains with New Law
Market Behavior and Investor Trends
- Crypto Whales Hold onto Stablecoins, Await Market Reentry
Massive Crypto Market Drop Triggered by SEC Lawsuits and Rumours
Major tokens such as Solana, Polygon, and Cardano fell over 20% in the past 24 hours after the SEC filed lawsuits against Binance and Coinbase, leading to speculation of major crypto funds selling their holdings. DOGE, TRX, LTC and DOT slid by 11%, while other top tokens, including BNB and XRP, also fell over 6%. Bitcoin and Ethereum dropped 3.28% and 5.23%, respectively. The declines pushed weekly losses for these tokens up to 34%.
The altcoin market is facing a downturn, and nearly $300 million in futures have been liquidated. Speculation arose about major crypto funds selling their holdings, specifically Scimitar Capital, leading to illiquid market conditions. The SEC filed lawsuits against Binance and Coinbase, impacting the market. The SEC's list of 13 cryptocurrencies considered securities and Robinhood's delisting of certain tokens are also contributing factors.
Crypto.com Halts Institutional Services in U.S. Amid Regulatory Concerns
Singapore-based crypto exchange Crypto.com will stop offering its services to institutional clients in the U.S. due to limited demand and the current market landscape. Retail investors will not be affected. This decision coincides with the lawsuits against Binance and Coinbase by the U.S. SEC for alleged securities law violations.
US CFTC Wins Landmark Case Against DeFi Organization, Ooki DAO
The US CFTC has obtained a default judgment against Ooki DAO, a decentralized autonomous organization, ordering it to permanently shut down and pay a fine of $643,542 for offering illegal trading services. The court's decision sets a precedent by classifying DAOs as "persons" under the Commodity Exchange Act and holds them accountable for violations. The case challenges the belief that decentralized finance platforms are immune to regulatory scrutiny.
Revised U.S. Stablecoin Bill Revealed, Indicates No Digital Dollar Plans
The US House Financial Services Committee has released a revised draft of a stablecoin bill, reflecting bipartisan collaboration. The bill seeks to establish regulations for stablecoins, granting authority to the Federal Reserve while maintaining state-level oversight. The proposed legislation requires further discussions and approvals. The removal of clauses related to a digital dollar indicates ongoing uncertainty about a central bank digital currency (CBDC) in the US. The bill represents progress but requires comprehensive examination before becoming law.
Well-Timed BNB Sell-Off Preceded SEC's Action on Binance
Ahead of the SEC's crackdown on Binance, well-timed sell orders for BNB tokens worth $37 million were placed on Binance. The open interest for BNB also increased by nearly $30 million before the SEC's announcement. The price of BNB dropped over 9% following the SEC's actions. Traders who bet on the price decrease profited. The SEC did not comment on the trades made prior to the lawsuits.
Alleged Market Manipulation Before Major Tokens' Price Crash
Market makers Jump Trading and Cumberland reportedly sent millions worth of Polygon (MATIC) tokens to exchanges before a 30% price drop, potentially contributing to the decline. Similar movements were observed with Cardano (ADA) and Solana (SOL) tokens. Allegations of tokens being securities in SEC filings against Binance and Coinbase may have affected prices. Matrixport expects further selling of major tokens due to thin trading volumes and reduced activity from market makers.
Potential SHIB Whale Activity Signals Market Redistribution
Over 4 trillion SHIB tokens worth $31 million were moved to Binance, suggesting a whale may be looking to sell. SHIB's price decline caused a decrease in the number of SHIB millionaires and a more even distribution, with only 1,207 addresses currently holding at least $1 million worth of tokens. The majority of SHIB holders are currently experiencing losses, with only 11% in profit, and further price drops could lead to fewer millionaires.
Ethereum's Success Roadmap Revealed by Co-founder Vitalik Buterin
Vitalik Buterin, co-founder of Ethereum, has outlined a roadmap for the blockchain's success. He calls for three crucial transitions: Layer 2 scaling, wallet security enhancement, and privacy measures. Buterin warns that without these changes, Ethereum's decentralization and sustainability could be at risk.
Optimism's Bedrock Upgrade Slashes Ethereum Layer 2 Transaction Fees
The recent Bedrock upgrade by Optimism, a Layer 2 network on Ethereum, has reduced transaction fees by 56%, resulting in savings of almost $150,000 for users. The upgrade optimized batch compression and used Ethereum as a data availability layer. Average transaction fees on Optimism have dropped from $0.57 to $0.16, although this metric can fluctuate due to Ethereum transaction fees. Optimism's approach bundles multiple transactions together and utilizes the OP Stack to enable faster and cheaper transactions.
Ava Labs Introduces Avalanche Arcad3 for Traditional Game Developers
Ava Labs has launched Avalanche Arcad3, a program for traditional game developers to explore blockchain game integrations. Partners include Japanese metaverse and entertainment firms Gree and Gumi. The program aims to connect Web2 game makers with esports organizations and Web3 game studios on the Avalanche blockchain, offering guidance on regulatory compliance and implementing NFTs, prize pools, esports marketing, and in-game tokens. The program also provides support for Web2 partners to break into crypto gaming and market the change to gamers.
Arrests in Connection with Historic Mt Gox Bitcoin Heist
The US Department of Justice has arrested two Russians, Alexey Bilyuchenko and Aleksandr Verner, for hacking the Mt Gox Bitcoin exchange. The hackers stole 647,000 BTC, worth over $17 billion, belonging to customers. Mt Gox declared bankruptcy in 2014, and its CEO was previously arrested. The accused laundered the stolen BTC through other exchanges and offshore accounts, resulting in the transfer of $6.6 million. The Russians face charges of money laundering and operating an unlicensed money service business, with potential prison sentences of up to 25 years.
Prominent Crypto Twitter Accounts Compromised by Phishing Scams
Prominent figures in the crypto space, including the founder of Pudgy Penguins and the CTO of OpenAI, have had their Twitter accounts hijacked by scammers promoting phishing scams. The group has stolen nearly $1 million worth of cryptocurrency. Some of the attacks were the result of SIM swaps, while others may have involved a Twitter admin panel. The scammers targeted accounts of individuals such as DJ Steve Aoki and crypto critic Peter Schiff. Slow response times from Twitter Support allowed some of the scam tweets to remain up for extended periods. The blockchain sleuth, ZachXBT, recommended using security keys instead of SMS-based two-factor authentication.
Social Media Platforms Accused of Enabling Crypto Scams
The European Consumer Organization (BEUC) accuses social media platforms, including Instagram, TikTok, Twitter, and YouTube, of enabling cryptocurrency scams. The watchdog calls for stricter advertising rules and a ban on influencers promoting crypto products. The report coincides with the EU's approval of the Markets in Crypto Asset (MiCA) legislation to regulate the sector and protect investors. Some platforms have taken measures against scams, but the risk has increased with deepfakes.
Nigeria Imposes 10% Tax on Crypto Gains with New Law
Former Nigerian President Muhammadu Buhari signed the Finance Act, 2023, into law, introducing tax reforms including a 10% tax on gains from digital asset disposal. The legislation aims to enhance fiscal transparency, boost revenue, and recognize cryptocurrencies as legitimate assets. The move indicates Nigeria's recognition of the economic potential of digital assets and the need for tax contributions. Crypto experts suggest clear guidelines, education, and support from the government. Cooperation with crypto exchanges is crucial for tracking capital gains and enforcing tax regulations.
Crypto Whales Hold onto Stablecoins, Await Market Reentry
Whales in the cryptocurrency market are holding onto stablecoins rather than cashing out, indicating they are waiting for the right moment to reenter the market, according to Santiment. Holdings of Tether, USD Coin, and DAI by major stakeholders have increased, suggesting they are not ready to exit crypto entirely. Movement of dormant stablecoins could signal impending market movement, and despite recent declines in stablecoin market caps, whales are poised to help propel the market when the time is right.
Top Altcoin Gainers and Losers
Bitget Token BGB (+1.70%)
Terra Classic LUNC (+0.97%)
Tether Gold XAUT (+0.34%)
Conflux CFX (-36.55%)
Polygon MATIC (-35.27%)
Sui SUI (-35.15%)
NFT Market Map
Ether.fi's Ether.fan collection introduces NFTs representing staked ETH, allowing owners to earn staking rewards. The NFTs consist of character art, flair indicating the staked amount, and a color-coded border indicating staking duration. Stakers can withdraw or increase their stake. The project aims to support Ethereum decentralization and increase the number of nodes. The collection will be available on Arcade.xyz's lending platform, except for U.S. users due to regulatory concerns.
This article has been refined and enhanced by ChatGPT.