Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 13, 2023
Crypto Market Update
Written by Van
Table of Contents:
Regulatory and Legal Developments
- Gensler's Old Stance on Crypto Securities Resurfaces Amid Enforcement Actions
- eToro Delists Four Cryptocurrencies Amid SEC Legal Action
- Binance to Convert Delisted Cryptos into Stablecoins Amid SEC Lawsuit
- Hinman's Past Ethereum Dialogue Used in Ripple's SEC Defense
- Ripple Calls for Investigation into Former SEC Official's Actions
- UK's FCA Proposes Rules to Prevent Crypto Misrepresentation
Cryptocurrency Market Updates
- Bitcoin Stability Amid Expected Fed Rate Hike Pause
- BTC, ETH, and Stablecoins Gain Dominance Following U.S. Regulatory Actions
- Massive BLUR Token Unlock Spurs Market Speculation
- Bitcoin's Illiquid Supply Reaches All-Time High Amid HODLing Trend
Crypto Platform and Exchange Developments
- Polygon Announces ZK-Rollup-Powered Layer 2 Chain Architecture
- Haru Invest Suspends Operations Amid Service Partner Issue
- Uniswap Unveils Draft Code for Uniswap v4 to Enhance Liquidity Creation
- BlockFi Set to Resume Customer Withdrawals This Summer
- Jump Trading Seeks to Move TerraUSD Manipulation Lawsuit
Crypto-Branded Product and NFT News
- Adidas Originals and FEWOCiOUS to Launch NFT-Sneaker Collection
Gensler's Old Stance on Crypto Securities Resurfaces Amid Enforcement Actions
A video of Gary Gensler, now chair of the US Securities and Exchange Commission, has resurfaced in which he says Bitcoin, Ether, Litecoin and Bitcoin Cash are not securities. The video, from 2018, predates his appointment to the SEC. However, since then, the regulator has initiated a number of enforcement actions on cryptocurrencies, with Gensler suggesting all cryptos except bitcoin are securities.
eToro Delists Four Cryptocurrencies Amid SEC Legal Action
Social investing platform eToro will delist Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC) for its U.S. customers due to legal action by the SEC. Existing positions can still be held and sold. The move follows Robinhood's delisting of Cardano's ADA, Solana's SOL, and MATIC.
Binance to Convert Delisted Cryptos into Stablecoins Amid SEC Lawsuit
Hinman's Past Ethereum Dialogue Used in Ripple's SEC Defense
Former SEC director William Hinman planned to speak with Ethereum co-founder Vitalik Buterin in 2018 to understand how the Ethereum Foundation operates. Hinman's 2018 speech asserting that Ethereum's native asset did not require regulation as a security has been cited by Ripple Labs in their defense against the SEC's allegations. The SEC has recently filed lawsuits against Ripple Labs, Coinbase, and Binance.
Ripple Calls for Investigation into Former SEC Official's Actions
Ripple is calling for an investigation into former SEC official William Hinman after documents in an ongoing lawsuit revealed edits and correspondence about a 2018 speech on crypto regulation. The documents include comments from the Trading and Markets Department on Hinman's 2018 speech, which stated that bitcoin and ether were not securities. Ripple believes the speech created confusion and wants it removed from the SEC's website. Ripple CEO Brad Garlinghouse criticized Hinman's decision to proceed despite pushback.
UK's FCA Proposes Rules to Prevent Crypto Misrepresentation
The UK's Financial Conduct Authority (FCA) has proposed rules to discourage the promotion of cryptocurrencies as an inflation hedge. The FCA argues that limited-supply cryptocurrencies like Bitcoin lack sufficient data to support such claims, and their volatility can mislead investors. The rules include a ban on free non-fungible token (NFT) giveaways and call for stablecoin issuers to demonstrate legitimate claims of stability or links to fiat currency. The FCA aims to ensure accurate marketing and prevent misleading claims in the crypto industry.
Bitcoin Stability Amid Expected Fed Rate Hike Pause
Bitcoin remained stable around $26,000 despite a brief spike to $26,500 following the US Consumer Price Index print. Markets expect the Federal Reserve to pause its rate hike cycle on 14 June after the Federal Open Market Committee meeting. The odds of a pause stood at over 90% according to CME Group’s FedWatch Tool. Trading firm QCP Capital believed the Fed would not raise rates further. Michaël van de Poppe, founder and CEO of trading firm Eight, flagged $25,000 as a potential downside entry point.
BTC, ETH, and Stablecoins Gain Dominance Following U.S. Regulatory Actions
Bitcoin (BTC), Ether (ETH), and stablecoins have gained dominance in the crypto market following the recent U.S. regulatory crackdown. Their combined market capitalization now represents 80.5% of the total cryptocurrency market. Smaller tokens, known as altcoins, experienced a significant sell-off after the U.S. Securities and Exchange Commission (SEC) deemed several tokens securities in lawsuits against major crypto exchanges. The legal battle may impede capital inflows to these assets and strengthen the investment case for BTC and ETH as safer options.
Massive BLUR Token Unlock Spurs Market Speculation
Approximately 196 million BLUR tokens will be unlocked on June 14, increasing the circulating supply by 40%. The unlock includes allocations to core contributors, investors, and advisors. Speculation about the market impact has caused BLUR's price to decline. Other projects, including BIT, LOOKS, APE, and IMX, will also have unlocks soon.
Bitcoin's Illiquid Supply Reaches All-Time High Amid HODLing Trend
Bitcoin's illiquid supply has reached an all-time high of 15.17 million, with 72% of the circulating supply being illiquid due to hodling. In the past month, 131,000 Bitcoin have become illiquid at the fastest rate since 2023, with only the Luna crash and FTX collapse seeing more coins become illiquid at such a pace.
Polygon Announces ZK-Rollup-Powered Layer 2 Chain Architecture
Gensler's Old Stance on Crypto Securities Resurfaces Amid Enforcement ActionsPolygon has announced its plan to build Polygon 2.0, a network of zero-knowledge-powered Layer 2 chains. This architecture aims to enable secure and instant cross-chain interactions among Layer 2s, facilitating scalability without fragmenting liquidity or reducing security. Polygon aims to establish the "Value Layer of the Internet" through interconnected chains leveraging ZK-Rollups.
Haru Invest Suspends Operations Amid Service Partner Issue
Haru Invest, a crypto investment platform, has suspended deposit and withdrawal requests due to an issue with a service partner. The company is investigating the issue and seeking a contingency plan. The CEO stated that the office in Seoul is empty for employee-safety reasons. The platform has over 80,000 members worldwide and offers up to 12% yield on its Earn Plus product. Further updates are expected.
Uniswap Unveils Draft Code for Uniswap v4 to Enhance Liquidity Creation
Uniswap has unveiled the draft code for Uniswap v4, aiming to enhance liquidity creation and token trading on-chain. The protocol, currently the largest decentralized exchange, plans to introduce "hooks" in v4, allowing users to make trade-off decisions. It will also support dynamic fees, on-chain limit orders, and time-weighted average market making. Notably, v4 reduces pool creation gas costs by 99% and consolidates all pools into a single contract, resulting in significant gas savings for token swaps.
BlockFi Set to Resume Customer Withdrawals This Summer
Crypto lender BlockFi expects to allow customer withdrawals this summer after completing essential testing. The company plans to update user interfaces to facilitate fund withdrawals and enable clients to move their digital assets to external wallets. Withdrawals will be processed in batches, and users are encouraged to set up external wallets. BlockFi halted withdrawals in November due to uncertainties from Alameda Research and FTX, and the deadline for developing a bankruptcy exit plan has been extended to July 6.
Jump Trading Seeks to Move TerraUSD Manipulation Lawsuit
Jump Trading, a Chicago-based trading firm, has requested to move a lawsuit accusing it of manipulating the price of TerraUSD (UST) from Illinois to California. The suit alleges that Jump entered into an agreement with Terraform Labs to rescue UST prices and make a huge profit. Jump argues that the case should be consolidated with an ongoing case in California, citing convenience and efficiency. The judge's decision is still pending.
Adidas Originals and FEWOCiOUS to Launch NFT-Sneaker Collection
Adidas Originals and NFT artist FEWOCiOUS are collaborating on a digital NFT release tied to real sneakers. The collection includes an NFT and an artist-designed physical sneaker, with 4,500 Trefoil Flower Mint Passes available for minting on OpenSea starting June 22. The release will be segmented into tiers, offering early access and discounted prices to holders of specific NFTs. The mint price ranges from 0.2 ETH to 0.25 ETH, and holders of the Trefoil Flower Mint Pass will receive a physical sneaker and a Digital Twin NFT. Shipping of the sneakers will begin in September.
Top Altcoin Gainers and Losers
Terra Classic LUNC (+6.87%)
Internet Computer ICP (+6.55%)
Fantom FTM (+5.74%)
XDC Network XDC (-3.55%)
Quant QNT (-2.70%)
Kava KAVA (-2.62%)
NFT Market Map
NFT sales have dropped by over 20% compared to the previous week, following weeks of consecutive gains. Ethereum-based NFT sales accounted for 54.91% of the market share, but also experienced a 34% decline. Bitcoin-based NFTs still hold the second position in terms of sales. The top five most expensive NFTs sold this week consisted of two Ethereum-based and three Bitcoin-based tokens. While NFT sales were lower in April compared to March, May saw an increase in sales.
This article has been refined and enhanced by ChatGPT.