Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 7, 2023
Crypto Market Update
Written by Van
Table of Contents:
- Binance.US Defends against SEC's Asset Freeze Motion
- Senators Criticize SEC's Lawsuit against Coinbase
- Janet Yellen Advocates for Increased Cryptocurrency Regulation
- Robinhood Considers Delisting Tokens amid SEC Lawsuits
Crypto Exchange Developments
- Bitcoin Holders Unfazed by Binance and Coinbase Lawsuits
- SEC Lawsuits Dent Wealth of Binance and Coinbase CEOs
- DEX Trading Volumes Skyrocket Following SEC Legal Actions
Country-Specific Crypto Developments
- Circle Singapore Obtains MPI License from MAS
- Philippines Delays Crypto Legal Framework Amid Market Failures
Cryptocurrency Market Analysis
- Investors Shift Focus to Bitcoin and Stablecoins, Glassnode Reports
- Stacks Token Surges amid Regulatory Pressures
- Aave's Gho Stablecoin Nears Ethereum Mainnet Launch
Crypto Community Discussions
- Jack Dorsey Defends Bitcoin in Ether Security Debate
- Sweat Economy Plans Vote on 2.5 Billion Inactive Tokens
Crypto-Related Business Moves
- FTX Mulls Sale of Stake in AI Firm Anthropic
- Apple Acquires AR Startup Mira Following Vision Pro Launch
Blockchain Network Updates
- Optimism Network Completes 'Bedrock' Upgrade
Binance.US Defends against SEC's Asset Freeze Motion
Binance.US responds to the SEC's motion to freeze its assets, calling it unwarranted and assuring users their assets are safe. Meanwhile, the South Korean financial regulator has halted Binance's acquisition of Gopax due to the enforcement action taken against it by the SEC. Gopax may lose its last hope of recovery. Meanwhile, the US SEC alleges that Binance sent a foreign affiliate of Paxos nearly $20 billion of commingled funds in 2021. The declaration alleges that Binance and its CEO controlled several accounts at the defunct Silvergate and Signature Banks. Check the latest updates here.
Senators Criticize SEC's Lawsuit against Coinbase
US Senators Cynthia Lummis and Bill Hagerty criticize the SEC's lawsuit against Coinbase and suggest it could harm consumers and the industry. Coinbase CEO Brian Armstrong emphasizes the company's differences from Binance and clarifies the lawsuit against Coinbase is related to the classification of commodities or securities. Check the latest updates here.
Janet Yellen Advocates for Increased Cryptocurrency Regulation
U.S. Treasury Secretary Janet Yellen has called for additional regulation of cryptocurrencies, citing identified risks and the need to protect investors. Yellen expressed support for regulatory agencies using existing tools and urged Congress to swiftly address regulatory gaps. The comments follow recent lawsuits filed by the U.S. Securities and Exchange Commission against Binance and Coinbase for alleged securities law violations.
Robinhood Considers Delisting Tokens amid SEC Lawsuits
Robinhood is considering delisting tokens named in SEC lawsuits against Binance and Coinbase due to concerns about unregistered securities, which are Cardano (ADA), Solana (SOL), and Polygon (MATIC). The lack of disclosures in the digital asset space was highlighted during a congressional hearing. Industry witnesses discussed the need for disclosures and suggested third-party analysis firms could provide the necessary information for investors. The debate centered around how to provide transparency and value assessments for crypto assets.
Bitcoin Holders Unfazed by Binance and Coinbase Lawsuits
Bitcoin holders remain stable amid Binance and Coinbase lawsuits, with on-chain data showing no panic selling despite BTC hitting three-month lows. Investors have displayed resilience and a lack of desire to withdraw funds from exchanges, contrasting with past events like the FTX implosion. Other cryptocurrencies saw a rebound today, except for those mentioned as “securities” in the SEC lawsuits against Binance and Coinbase. BNB becomes the hardest-hit cryptocurrency among the top 10 altcoins by market cap with a -7.45% drop. ADA (-6.92%), SOL (-4.02%), and MATIC (-4.52%) also see a sharp decline.
SEC Lawsuits Dent Wealth of Binance and Coinbase CEOs
The SEC's lawsuits against Binance and Coinbase have caused the wealth of their CEOs to decline significantly. Binance CEO Changpeng Zhao's wealth has shrunk by $1.4 billion, while Coinbase CEO Brian Armstrong's net worth has declined by $361 million. The SEC's actions have also resulted in a $50 billion drop in crypto markets, but the asset class has since recovered.
The SEC's regulatory actions may be motivated by protecting the banking industry, which sees decentralized digital assets as a threat. SEC Chair Gary Gensler has expressed the belief that the U.S. dollar is sufficient and there is no need for additional digital currencies.
DEX Trading Volumes Skyrocket Following SEC Legal Actions
Trading volumes on decentralized exchanges (DEXs) have surged by almost $800 million in the past two days, with the median trading volume across the top three DEXs increasing by 444% in 48 hours. This growth comes as crypto investors respond to recent legal actions taken by the US Securities and Exchange Commission against Coinbase and Binance. Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC) saw significant volume increases. Curve, a stablecoin-focused DEX, experienced a trading volume spike of 328%.
Circle Singapore Obtains MPI License from MAS
Circle Singapore has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), allowing it to offer digital payment token services, cross-border money transfers, and domestic money transfers in the country. Circle Singapore is affiliated with Circle Internet Financial, the issuer of USDC stablecoin.
Philippines Delays Crypto Legal Framework Amid Market Failures
The Philippines' financial regulator has delayed the introduction of a legal framework for the crypto industry due to market failures in 2022. The Securities and Exchange Commission (SEC) is working on guidelines to ensure investor protection and may issue the framework by the end of 2023. The country's central bank and the SEC have been warning against engaging with unregistered or foreign crypto exchanges. Despite regulatory challenges, the Philippines remains an attractive destination for crypto and ranks 10th worldwide in terms of crypto adoption.
Investors Shift Focus to Bitcoin and Stablecoins, Glassnode Reports
Glassnode's report suggests investors are shifting towards stablecoins and Bitcoin. Altcoins face a crucial turning point between positive and negative breakout. Bitcoin has a higher market share than Ether in perpetual swaps. Tether has absorbed outflows from other stablecoins, reaching a new supply high. Capital rotation is moving away from high-risk altcoins towards stablecoins and Bitcoin. Bitcoin's dominance percentage has encountered resistance, potentially leading to an altcoin rally.
Stacks Token Surges amid Regulatory Pressures
Stacks (STX) token has surged over 24% in two days, defying the market downturn. The token's success can be attributed to two factors: its SEC qualification under Regulation A+ and its role as a Bitcoin layer for smart contracts. STX has evaded regulatory pressures and become an approved investment avenue. However, future regulatory developments and market dynamics remain uncertain.
Aave's Gho Stablecoin Nears Ethereum Mainnet Launch
Aave's stablecoin, Gho (GHO), is closer to its Ethereum mainnet launch with proposed features: V3 Ethereum Facilitator for lending against collateral deposits, and FlashMinter Facilitator for flash loans. Both proposals are in the discussion phase. Gho is a decentralized stablecoin backed by a basket of cryptocurrencies, set to generate revenue for the Aave DAO.
Jack Dorsey Defends Bitcoin in Ether Security Debate
Bitcoin advocate Jack Dorsey engaged in a Twitter war over whether Ether (ETH) is a security. The discussion involved Udi Wertheimer and Gabor Gurbacs, and was prompted by the SEC filing lawsuits against Binance and Coinbase for offering unregistered securities. Dorsey also emphasized the importance of focusing on Bitcoin development.
Sweat Economy Plans Vote on 2.5 Billion Inactive Tokens
Fitness DApp Sweat Economy plans a governance vote on 2.5 billion inactive SWEAT tokens, constituting around 13% of the total supply. Users can decide whether to recover, transfer, burn, fund operations, or support future launches. A minimum of 75,000 votes are needed, and the vote will last for seven days.
FTX Mulls Sale of Stake in AI Firm Anthropic
Cryptocurrency exchange FTX is reportedly considering selling its stake in Anthropic, a rival of OpenAI. FTX holds over $500 million worth of shares in Anthropic and Perella Weinberg is said to be discussing the potential sale with investors. The launch of OpenAI's ChatGPT has fueled interest in generative AI, with Microsoft and Google investing billions in the technology. Anthropic recently raised significant funding and announced advancements in its AI chatbot.
Apple Acquires AR Startup Mira Following Vision Pro Launch
Apple has confirmed the acquisition of augmented reality startup Mira, following the launch of its new virtual reality product line, Apple Vision Pro. The hands-free, smartphone-powered headsets developed by Mira are designed for industrial applications, such as manufacturing and defense. Apple's Vision Pro is set to hit the market in early 2024 and is priced at $3,499. The company has not disclosed the investment made for the acquisition of Mira.
Optimism Network Completes 'Bedrock' Upgrade
The Optimism network has completed its "Bedrock" upgrade, which reduces deposit times, lowers fees, and enhances security. The upgrade is part of a larger effort to create a scalable network of Web3 networks based on Optimism's software. Gas optimizations have led to a 40% reduction in data availability fees on Ethereum, resulting in lower gas fees for users. The upgrade also allows for faster deposit times and implements a two-step withdrawal process for increased security. The long-term goal is to build a multi-network "Superchain" using modular proof systems.
Top Altcoin Gainers and Losers
Stacks STX (+6.17%)
XDC Network XDC (+3.50%)
Radix XRD (+1.92%)
ApeCoin APE (-9.51%)
Kava KAVA (-8.31%)
Render Token RNDR (-8.21%)
NFT Market Map
Noel Gallagher's High Flying Birds and the Foo Fighters are competing for the top spot on the UK Album Charts. To gain an advantage, Gallagher is releasing an NFT version of his album "Council Skies" through Serenade, featuring exclusive content and environmentally friendly blockchain technology. Muse previously topped the charts with a Serenade NFT release.
This article has been refined and enhanced by ChatGPT.