Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 14, 2023

Crypto Market Update

Written by Van

Table of Contents:

Crypto Exchange Developments

• Binance Retracts from Cyprus, Focuses on Larger European Markets
• Binance.US in Talks with SEC to Avoid Complete Asset Freeze
• Bitcoin Supply on Exchanges Hits Five-year Low
• Arbitrage Bot Profits $3.24 Using $200 Million Flash Loan
• Ribbon Finance Opens Public Access to Aevo Derivatives Exchange
• Bankrupt Bittrex Allowed to Enable Customer Withdrawals

Cryptocurrency Market Updates

• Retail Holders Increasing Share in Bitcoin Circulating Supply
• The Graph Decides to Migrate from Ethereum to Arbitrum
• Shiba Inu Whale Makes $10 Million Addition, Fuels Price Uptrend
• Arbitrum Sees Record High Usage Post-Airdrop, Surpasses Ethereum
• Ripple's Legal Battle with SEC Continues as XRP Price Drops
• Atomic Wallet Users Lose $100M to Lazarus Group's Theft

Crypto Services and Platforms

• Strike Expands Lightning Network-Based Service to Mexico
• Delio Suspends Withdrawals Due to Haru's Fund Freezing Issue

Regulatory and Policy Developments

• Blockchain Australia Challenges Banks Over Crypto Payment Restrictions
• ApeCoin DAO Scrutinized for High Payouts, Community Disconnection

Binance Retracts from Cyprus, Focuses on Larger European Markets

Binance will pull out of Cyprus and focus on its larger markets in France, Italy, and Spain as it strives to comply with the European Union's upcoming Markets in Crypto-Assets (MiCA) regulatory framework. The exchange has been "under examination for application for deregistration" in Cyprus, according to the state regulator. 

It came as the SEC's lawsuits against Binance and Coinbase caused a sell-off in the crypto market. Binance's Secure Asset User Fund (SAFU) decreased by 10% to $861 million. BNB and BTC, the main assets in the fund, declined by 20% and 6% respectively. Binance CEO CZ denies rumors of selling BTC to support BNB, dismissing claims based on on-chain data.

Binance.US in Talks with SEC to Avoid Complete Asset Freeze

Binance.US and the Securities and Exchange Commission (SEC) are working on a deal to avoid a complete asset freeze, according to Bloomberg News. U.S. District Judge Amy Berman Jackson referred the parties to a magistrate judge to find a compromise. The SEC had filed a lawsuit against Binance.US, alleging legal violations and seeking an asset freeze. The judge emphasized the potential consequences of a complete shutdown for both the company and the digital asset markets.

Bitcoin Supply on Exchanges Hits Five-year Low

Bitcoin supply on exchanges has hit a five-year low, with just 6.4% of the total Bitcoin supply currently held in the wallets of all centralised exchanges. Investors are continuing to move their coins to self-custody, with the trend towards decentralisation a positive development for the asset. To prevent further decline, Bitcoin must stay above the support zone between $22,785 and $23,595. Currently, 69.4% of Bitcoin wallets are at a loss, while 28.9% are in profit.

Arbitrage Bot Profits $3.24 Using $200 Million Flash Loan

An arbitrage bot borrowed $200 million worth of DAI from MakerDAO using a flash loan and made a $3.24 profit after fees. The bot exploited MakerDAO's DssFlash contract and used the borrowed DAI to obtain WETH, which was then used to buy Threshold Network (T) before being sold on Balancer. While flash loans have been involved in previous exploits, this transaction was profitable after accounting for fees.

Ribbon Finance Opens Public Access to Aevo Derivatives Exchange

Singapore-based Ribbon Finance has launched Aevo, a derivatives exchange, to the public. Aevo had been in a "gated" phase, requiring users to hold an "exchange pass" NFT for access. The platform now offers bitcoin perpetual futures and options in addition to ether derivatives. Aevo aims to provide a user experience similar to centralized exchanges, targeting the conversion of users from centralized platforms to decentralized exchanges. The platform utilizes layer 2 Ethereum optimistic rollup technology and a cloud-hosted server for the order book, making it non-custodial but potentially subject to censorship.

Bankrupt Bittrex Allowed to Enable Customer Withdrawals

Bittrex, a bankrupt crypto exchange, has received a court order allowing it to enable customer withdrawals. The US Justice Department had opposed the request, but the court ruled in favor of Bittrex. However, it remains unclear whether customer claims take precedence over the government's. Bittrex halted its US operations in April due to regulatory uncertainties and lack of support from lawmakers. The Securities and Exchange Commission (SEC) had accused the exchange of operating an unregistered securities exchange.

Retail Holders Increasing Share in Bitcoin Circulating Supply

Retail holders of Bitcoin have increased their relative share of the circulating supply from 13.7% following the collapse of Terra LUNA token to 17.54% as of 13 June, according to on-chain analytics firm Glassnode. This shows smaller entities, composed of Shrimps and Crabs, gaining prominence after the FTX bankruptcy episode, as well as increased demand for self-custody. 

The Bitcoin network has seen an unprecedented spike in daily transactions, executed typically by retail holders of the coin, driven by low-value transactions. The number of coins in self-custody has also gradually risen, indicative of the network-wide accumulation trend. 

The Graph Decides to Migrate from Ethereum to Arbitrum

Blockchain indexing protocol The Graph is migrating from Ethereum to the Arbitrum network to reduce gas fees, increase transaction speed, and improve accessibility. The move follows discussions dating back to November 2021, with gradual steps taken to exit Ethereum and transition users to Arbitrum. Protocol rewards will shift gradually to Arbitrum before fully transitioning.

Shiba Inu Whale Makes $10 Million Addition, Fuels Price Uptrend

A big whale in the Shiba Inu community has added $10 million in SHIB, becoming the largest holder. The Puppynet blockchain testnet has surpassed 20 million transactions, potentially impacting the price of SHIB and BONE. The release of a metaverse for the memecoin community is generating excitement, although no launch date has been announced. SHIB's price is showing signs of an upward trend after a recent dip.

Arbitrum Sees Record High Usage Post-Airdrop, Surpasses Ethereum

Arbitrum's airdrop has spurred higher transaction and user numbers, leading to an all-time high for the Ethereum layer 2 network. The trend has continued post-airdrop, with network usage surpassing that of Ethereum on some days, according to a report by blockchain analytics firm Nansen. Transaction fees have risen too, while the value of USD spent per transaction has remained higher than before. 

Ripple's Legal Battle with SEC Continues as XRP Price Drops

Ripple's legal battle with the SEC continues as XRP drops 4.6% following the release of the Hinman documents. Ripple seeks to use a 2018 speech by former SEC Director Bill Hinman to challenge allegations of selling unregistered securities. XRP initially surged 6% after the release of the emails, but Ripple's chief legal officer claims Hinman "invented factors" and calls for an investigation. Unfortunately, the price jump has been erased.

Atomic Wallet Users Lose $100M to Lazarus Group's Theft

Digital asset tracking firm Elliptic has reported that users of Atomic Wallet have suffered losses exceeding $100 million, with over 5,500 compromised wallets. The breach is believed to be the work of the Lazarus Group, connected to North Korea, and marks the first major crypto theft by the group since 2022. Elliptic has frozen over $1 million in stolen assets and is working to recover them. Atomic Wallet has yet to provide an explanation for the losses, causing frustration among affected users.

Strike Expands Lightning Network-Based Service to Mexico

Strike, a digital payments firm, is expanding its Lightning Network-based cross-border payments service to Mexico, aiming to provide cheaper and faster transactions for remittances from the US. The service, Send Globally, allows US dollars to be received as pesos in the recipient's bank account. This move follows Strike's recent expansion in Latin America and its establishment of a global headquarters in El Salvador.

Delio Suspends Withdrawals Due to Haru's Fund Freezing Issue

Korean crypto lending service Delio has suspended withdrawals due to funds being stuck in Haru, a crypto investment company that recently halted its own withdrawals. Delio's CEO stated that the issue arose from increased withdrawals following Haru's suspension. Delio offers lending and borrowing services with advertised yields of up to 10.7%.

Blockchain Australia Challenges Banks Over Crypto Payment Restrictions

Blockchain Australia, an industry body, is challenging the recent restrictions imposed by Australian banks on cryptocurrency payments. They aim to address the issue with data and are organizing a roundtable discussion with policymakers. The organization plans to educate consumers about crypto and scams, urging banks to offer opt-in protection and targeted approaches instead of blanket restrictions.

ApeCoin DAO Scrutinized for High Payouts, Community Disconnection

ApeCoin DAO, associated with ApeCoin, is under scrutiny for its high payouts and lack of community involvement. The controversy arose after an organizational chart revealed salaries of up to $75,000 per month. Critics question the justification and express concern about the leadership's disconnect from the community. The issue has sparked a debate about decentralized governance in the Web3 community.

Top Altcoin Gainers and Losers

Gainers:

Uniswap UNI (+9.17%)

Trust Wallet Token TWT (+9.02%)

Terra Classic LUNC (+7.19%)

Losers:

Radix XRD (-6.70%)

Monero XMR (-3.13%)

Curve DAO Token CRV (-2.24%)

NFT Market Map

NFT marketplaces continue to improve their offerings amidst falling prices and volumes. Sudoswap launched v2, Blur cracked down on wash traders, Kraken launched its NFT trading platform, and LooksRare unveiled a liquidity mining program. Despite the underperformance of top NFTs, developers compete to capture NFT market share in anticipation of a future bull season. 

Snoop Dogg is launching an NFT project, the Snoop Dogg Passport Series, which will allow fans to access behind-the-scenes content of his tour. The rapper has been actively involved in the Web3 space, previously proclaiming himself as the anonymous NFT collector "Cozomo de' Medici" and co-founding the Web3-powered live-streaming platform Shiller.

This article has been refined and enhanced by ChatGPT.