Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 12, 2023

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Jun 12 2023

last year4 minutes read

Markets360

Crypto Market Update

Written by Van

Andreessen Horowitz Opens First International Office in UK
Crypto Trading Volume Plummets 43% on Robinhood in May
Solo Bitcoin Miner Earns $160,100 in Rare Mining Feat
Record Outflows from Ethereum ETPs Post-Merge, Says CoinShares
Sberbank to Launch Cryptocurrency Trading Services in June
21Shares Launches High-Risk Lido DAO ETP in EU
Solana Contemplates Hard Fork Amid SEC Regulatory Troubles

Market Updates

Hyblock Capital Global Bid and Ask Indicator Drops 20%
ShibaSwap's Liquidity Plummets to Record Low
Curve Finance Founder Deposits $24M to Mitigate Liquidation Risk

Country-Specific Developments

IOG Restructures, Transforms into Venture Studio
University of Toronto Partners with Ripple for XRP Ledger Validator
Court Deems Galaxy Digital's Termination of BitGo Acquisition 'Clean'
Venus Protocol Faces Potential Liquidation Amid SEC Lawsuit

Security and Community News

Crypto Subreddits Go Private in Protest Against Reddit
Security Flaw Leads to $800K Loss for Sturdy Finance
Impulse Team Scams $5 Million in Crypto Giveaways

Entertainment and Blockchain

Mariah Carey-Backed Geojam Signs Deal with WME

Bank of China's BOCI Issues Tokenized Security on Ethereum

Bank of China's investment bank, BOCI, has issued a tokenized security worth $28 million on the Ethereum blockchain, becoming the first Chinese financial institution to do so in Hong Kong. The issuance is part of the bank's efforts to promote digital transformation and innovative development in Hong Kong's financial industry. This move follows the release of new crypto industry guidelines in Hong Kong and China's recent white paper on web3 innovation.

Mark Cuban Criticizes SEC's Lack of Clarity on Crypto Registration

Investor Mark Cuban has criticised the US Securities and Exchange Commission (SEC) for failing to offer clarity on a registration process for cryptocurrency firms. In a tweet, Cuban claimed that the SEC's "Framework for 'Investment Contract' Analysis of Digital Assets" document does not include such a process, making it "near impossible to know what is or is not a security in the crypto universe.” The document includes requirements under federal securities law, though critics have argued that it clarity.

Bitcoin Drops Below $26,000 as Investors Brace for SEC Actions

Bitcoin traded below $26,000 as investors prepare for the SEC's regulatory actions against crypto exchanges. Despite regulatory actions against Binance and Coinbase filed by the SEC, long-term Bitcoin holders remain steadfast in their conviction. Glassnode reveals that only 0.004% of long-term holders' supply has been sent to exchanges, as they believe in Bitcoin's potential to revolutionize the finance industry. Furthermore, Bitcoin's accumulating whales are increasing holdings by 1,000 BTC per day, despite falling prices, creating a bullish divergence and suggesting a strong rebound is possible, according to Santiment.

SEC Labels Algorand and Flow as Securities, Prices Dip to ATL

The US Securities and Exchange Commission has designated Algorand (ALGO) and Flow (FLOW) as securities, causing them to hit all-time price lows. Both have slightly rebounded since with ALGO up over 12.5% and FLOW recovering just over 10.5%. The regulator also labelled 16 new cryptocurrencies as securities, including Internet Computer (ICP), and caught up Solana (SOL), Cardano (ADA) and Polygon (MATIC), but their creators have rebuffed the SEC's claim.

Tether Transfers $750 Million USDT to Binance for Liquidity

Tether's treasury sent Binance $750 million USDT in three batches. The exchange will directly swap 750 million USDT-TRX for USDT-ETH with Tether to ensure stablecoin liquidity across all chains. Tether also minted 1 billion USDT tokens to replenish its inventory on the Ethereum blockchain. The reasons behind the swap are not clear, but Tether reassured the community that the total supply of USDT will not decrease. Tether aims to enhance trust in its ecosystem and rebalance the liquidity base of USDT on Ethereum.

Andreessen Horowitz Opens First International Office in UK

Venture capital firm Andreessen Horowitz (a16z) plans to open its first international office in the UK, aligning with US companies expanding abroad. The move is seen as a response to increasing regulatory actions against crypto firms in the US. The firm aims to establish a predictable business environment and will continue advocating for clear regulations in the US. Additionally, a16z will launch a Crypto Startup School in London to support entrepreneurs in the Web3 space.

Crypto Trading Volume Plummets 43% on Robinhood in May

Robinhood reported a significant decline in crypto trading volume in May, down 43% from the previous month and 68% from the previous year. Daily average trading revenue for crypto also dropped, with a decrease of 22% in May and 53% year-over-year. The platform recently delisted three tokens, ADA, MATIC, and SOL, after they were named as securities by the SEC in lawsuits against Coinbase and Binance. Robinhood attempted to register as a special-purpose broker for digital assets but was unsuccessful.

Solo Bitcoin Miner Earns $160,100 in Rare Mining Feat

A solo bitcoin miner using Solo CKPool software solved a block and earned 6.175 BTC ($160,100), a rare feat considering the current difficulty of mining. Solo CKPool returns 98% of rewards to the miner, making it attractive for both small and large mining setups. The odds of this miner's success were estimated at one in 5,500.

Record Outflows from Ethereum ETPs Post-Merge, Says CoinShares

The largest outflow of funds from Ethereum ETPs since the Merge in September 2022 was recorded last week, according to CoinShares. The data shows outflows worth $36 million, representing 0.6% of assets under management. Bitcoin ETPs lost a total of $52 million, while digital asset investment products registered outflows worth $88 million overall. A sustained period of outflows from such products could be related to cautious investor sentiment driven by central banks' monetary policy.

Sberbank to Launch Cryptocurrency Trading Services in June

Russian banking giant Sberbank is set to offer cryptocurrency trading services to its customers, allowing them to buy, sell, and trade digital assets. The bank aims to launch these services in June and plans to issue digital financial assets transactions in the future. Sberbank has been actively involved in blockchain technology and aims to bring more money into the bank through the cryptocurrency market.

The bank's investment arm also plans to introduce Russia's first blockchain-based exchange-traded fund. While the Russian government has been hesitant about private cryptocurrencies, Sberbank is pushing ahead with its platform development.

21Shares Launches High-Risk Lido DAO ETP in EU

Swiss provider 21Shares has introduced an exchange-traded product (ETP) that allows investors to gain exposure to Lido DAO, the largest participant in the liquid-staking ecosystem. The ETP, available in 22 EU countries, is marked as high risk due to market, regulatory, and secondary market risks, among others. Lido currently dominates the liquid staking derivatives market, with over $13 billion ETH staked.

Solana Contemplates Hard Fork Amid SEC Regulatory Troubles

Solana faces regulatory troubles, as the SEC has labeled SOL as a security. The possibility of a hard fork is being discussed in the Solana community as a solution to protect it from regulatory actions and to prevent SOL token dumping caused by FTX bankruptcy. The idea is not supported unanimously, facing challenges such as the community splitting between two tokens.

Hyblock Capital Global Bid and Ask Indicator Drops 20%

Key crypto market liquidity metric, the Hyblock Capital global bid and ask indicator, fell by 20% on Saturday. This resulted in paper-thin order books and is likely the result of alternative cryptocurrencies crashing. Thin liquidity could lead to traders struggling to execute large orders at stable prices and increased volatility in the market.

Hyblock Capital.webp — Source: Hyblock Capital

ShibaSwap's Liquidity Plummets to Record Low

ShibaSwap's liquidity has plummeted to an all-time low of $21.78 million, attributed to falling token prices, particularly SHIB and BONE, and the withdrawal of funds from the platform. Additionally, trading volumes surged by $5.96 million on June 10, leading to ShibaSwap collecting $17,870 in commissions within a 24-hour period.

Curve Finance Founder Deposits $24M to Mitigate Liquidation Risk

Curve Finance founder Michael Egorov has deposited $24 million worth of Curve DAO (CRV) tokens to Aave to mitigate liquidation risk of a $65 million stablecoin loan. His collateral for the Aave loan is 277 million CRV tokens, accounting for 32% of the total circulating supply. The deposit improved Egorov's health rating from 1.3 to 1.5, reducing the risk of liquidation. The potential for mass liquidation with such a large collateral could cause market disruption and a drop in CRV token price.

IOG Restructures, Transforms into Venture Studio

Cardano developer Input Output Global (IOG) has undergone a restructuring, resulting in layoffs and the transformation into a "venture studio" with a smaller core business model. Spinoff divisions such as Lace, Prism, and Cardano-related infrastructures will be established. The restructuring primarily affected executive staff, while CEOs have been hired for Midnight and RealFi, with further staff recruitment expected. The new model aims to facilitate the spinout of 3-5 companies annually, delegating strategy and commercial aspects to the spinouts.

University of Toronto Partners with Ripple for XRP Ledger Validator

The University of Toronto is partnering with Ripple to establish an independent XRP ledger validator. The initiative is part of Ripple's University Blockchain Research Initiative (UBRI) and aims to support blockchain and crypto technology research in Canada while providing students with technical skills. Ripple has invested over $2 million in Canada's universities and colleges through UBRI. The University of Toronto joins other Canadian UBRI partners, and the move comes as the US tightens regulations in the crypto industry. Ripple praises Canada's approach to regulation and aims to cultivate talent in the country's technology hub.

Court Deems Galaxy Digital's Termination of BitGo Acquisition 'Clean'

Galaxy Digital's termination of its planned acquisition of BitGo was deemed a "clean termination" by a Delaware Chancery Court. BitGo plans to appeal the decision, claiming that Galaxy wrongfully terminated the agreement. The court ruled in favor of Galaxy, stating that BitGo failed to provide compliant financial statements. The decision came shortly after BitGo announced its intention to acquire Prime Core Technologies.

Venus Protocol Faces Potential Liquidation Amid SEC Lawsuit

The Venus Protocol, a DeFi lending platform on the BNB Chain, faces potential liquidation due to a significant position in Binance Coin (BNB) created by hackers. The falling price of BNB, triggered by the SEC's lawsuit against Binance, puts the position close to liquidation. A November proposal allows the BNB Chain core team to take over the position to minimize market impact. Venus has confirmed the team has already sent $30 million in tether to the designated wallet. The potential liquidation could have significant repercussions for Venus and its tokens, XVS, VRT, and VAI.

It happened as open interest in BNB futures contracts reached its highest level since January at 1.57 million BNB ($360 million). The increase in open interest suggests a bearish trend, with negative funding rates indicating a bias for bearish positioning.

Crypto Subreddits Go Private in Protest Against Reddit

Crypto subreddits, including r/Bitcoin and r/CryptoCurrency, went private for 48 hours to protest against Reddit's decision to prevent the use of third-party applications. The move impacts the community's ability to create and use third-party tools predominantly used for moderating content and interactions. Reddit CEO Steve Huffman backed the decision, citing the need for being "a self-sustaining business".

Security Flaw Leads to $800K Loss for Sturdy Finance

Decentralized Finance protocol Sturdy Finance lost over $800,000 in ETH due to a security flaw and price manipulation. The attacker used a reentrancy attack to exploit a flawed price oracle and siphon funds. Prompt action from Sturdy Finance couldn't prevent the attack. The incident highlights the ongoing dangers of decentralized finance and the importance of strong security measures.

Impulse Team Scams $5 Million in Crypto Giveaways

A crypto giveaway scam run by the Russian-speaking group Impulse Team has stolen over $5 million since 2021. The operation tricked users on social media platforms into believing they had won a crypto giveaway, convincing them to open an account and make an initial deposit. Trend Micro estimates that $5 million worth of USDT was paid to the scam websites. The group promotes the scam on cybercrime forums and offers a paid subscription service for scammers. In another incident, hackers allegedly bribed a Russian detective with $28 million worth of bitcoin to protect their illegal assets.

Mariah Carey-Backed Geojam Signs Deal with WME

Geojam, a social media platform supported by Mariah Carey and utilizing AI and blockchain technology, has signed with Hollywood talent agency WME. WME aims to secure brand deals for Geojam and explore opportunities for creators to engage with their fans. Geojam allows users to create and share content while earning its native token. Prominent musicians like Tyga, Machine Gun Kelly, and Carey are among Geojam's backers.

Top Altcoin Gainers and Losers

Gainers:

Sui SUI (+10.61%)

Cosmos ATOM (+5.53%)

Aptos APT (+4.56%)

Losers:

Rocket Pool RPL (-6.62%)

Radix XRD (-5.68%)

Curve DAO CRV (-4.77%)

NFT Market Map

An update called "recursive inscriptions" will soon be deployed for Ordinals, a version of non-fungible tokens (NFTs) on the Bitcoin blockchain. This update allows inscriptions to reference other inscriptions, making it more efficient to store files like unique traits for generative art. It could potentially enable on-chain video games, applications, generative art, and smart contracts on Bitcoin.

The BRC-721E token standard was recently introduced, allowing the transfer of Ethereum-based NFTs to Bitcoin. As of Monday, Ordinals has generated 1,702 BTC ($44.13 million) in fees, with a total of 11.6 million inscriptions.

This article has been refined and enhanced by ChatGPT.