Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 8, 2023
Crypto Market Update
Written by Van
Table of Contents:
Crypto Exchanges and Lawsuits
- Binance US Retains USDT Trading Pairs Amid SEC Pressure
- Coinbase Remains Steadfast Despite SEC Lawsuit
- Crypto Trading Volumes Plummet, Binance Hardest Hit
Crypto Regulations and Policies
- G-7 and G-20 Diverge on Cryptocurrency Regulations
- FCA Announces Stricter Crypto Regulations in the UK
- Commonwealth Bank Limits Payments to Crypto Exchanges
Crypto Market Updates and Trends
- Bitcoin Supply Moves from West to East
- Crypto User Base Grows to 417.5 Million in 2023
- BNB Pressured Amidst SEC Lawsuit
Blockchain and Crypto Developments
- Ethereum Developers Agree on 'Dencun' Upgrade Details
- Resilient EOS Network Continues to Grow Despite Challenges
- Enjin Launches Mainnet to Boost Web3 Adoption
- Ankr Launches AppChains on Microsoft's Azure Marketplace
- Curve Finance Supports Wrapped Staked Ether as Collateral
Legal Challenges and Controversies
- US Government Challenges Bittrex's Bankruptcy Plan
- Lawsuit Dismissed Against DeFi Platform PoolTogether
- LUNA Co-founder Investigated Over Alleged Political Ties
Decentralized Technologies and Adoption
- World Mobile Tests Decentralized Wireless Tech in Africa
- Arbitrum's Two-Hour Outage Exposes Centralization Concerns
Crypto and NFT Collaborations
- Puma Partners with NBA Star for NFT Sneaker Release
Binance US Retains USDT Trading Pairs Amid SEC Pressure
Binance US decided to keep all USDT Advanced Trading pairs after announcing to remove over 100 trading pairs and pausing its OTC trading portal due to legal pressure from the SEC. The platform assures users that their assets are safe and the changes will take effect on June 8. The SEC has also ordered Binance US to freeze its assets and repatriate customer funds within 10 days. The lawsuit alleges commingling of funds between Binance and Binance US.
Coinbase Remains Steadfast Despite SEC Lawsuit
Coinbase CEO Brian Armstrong has confirmed that the exchange will not shut down its staking services despite the Securities and Exchange Commission's (SEC) lawsuit against the company. Coinbase's Chief Legal Officer Paul Grewal stated that the exchange has no plans to delist any tokens named in the SEC's complaint and remains confident in its original analysis. Coinbase has seen a surge in users unstaking their staked ether (cbETH) following the SEC's lawsuit. Around 39,550 cbETH ($75 million) has been redeemed, with a net outflow of 29,900 cbETH ($56.8 million). Despite this, Coinbase remains the second-largest entity in terms of staked ether, with 2.3 million ether ($4.2 billion).
Crypto Trading Volumes Plummet, Binance Hardest Hit
Crypto trading volumes on centralized exchanges have fallen to their lowest levels in over four years, with Binance hit the hardest, according to CCData. The decline in trading volumes has been attributed to regulatory pressure from the US. However, the market share of derivatives trading across centralized exchanges increased to 79.5% of the entire crypto market.
G-7 and G-20 Diverge on Cryptocurrency Regulations
Global leaders are working on universal rules and standards for the cryptocurrency sector. While the Group of Seven (G-7) economies are open to allowing and regulating stablecoins, emerging economies in the Group of Twenty (G-20) are calling for tougher restrictions or even prohibitions due to concerns about the impact on monetary policy. Differences between the two groups could hinder the acceptance of global norms for stablecoins. The G-7 is aligned with the Financial Stability Board's recommendations, while the G-20 is awaiting a synthesis paper from the IMF and FSB.
FCA Announces Stricter Crypto Regulations in the UK
The UK's Financial Conduct Authority (FCA) has announced stricter regulations for crypto services, including a cooling-off period for first-time investors and a ban on refer-a-friend bonuses. The FCA aims to enhance investor awareness of risks and provide sufficient time for informed decision-making. Crypto companies must verify individuals' knowledge and experience, provide transparent risk warnings, and ensure fair and clear advertisements. These regulations align with the ongoing scrutiny faced by the crypto industry worldwide. The FCA is seeking feedback on additional guidelines until August 10.
Commonwealth Bank Limits Payments to Crypto Exchanges
Australia's Commonwealth Bank (CBA) will reject or temporarily withhold payments to crypto exchanges, implementing a monthly limit of A$10,000. The move aims to reduce scams and losses suffered by customers. CBA is also sharing its anti-scam technology with other organizations. Australian banks are taking measures to protect customers from crypto-related scams, while the government works on regulating the industry. CBA had previously halted a trial program allowing users to buy cryptocurrencies within its banking app.
Bitcoin Supply Moves from West to East
Bitcoin supply has been shifting from the United States to Asia since mid-2022, according to Glassnode. The research indicates a decrease of over 10% in the amount of Bitcoin held and traded by U.S. entities, while Europe's share remains stable. The trend suggests a redistribution of Bitcoin from west to east, with a significant increase in supply dominance observed during Asian trading hours. This shift coincides with major geopolitical developments, such as Hong Kong allowing crypto trading and regulatory challenges faced by U.S. exchanges.
Crypto User Base Grows to 417.5 Million in 2023
The number of cryptocurrency users has reached 417.5 million in 2023, with a YoY growth of 36.88%. Asia has the highest number of users at 260 million, followed by North America at 54 million. Africa and Europe have seen a decline in users. Factors driving the growth include FOMO, mainstream adoption, accessibility, acceptance as payment, and adoption in emerging markets. Despite challenges like regulatory uncertainty, the crypto market has experienced growth. Asia's dominance is influenced by adoption in banking and financial sectors. Stricter regulations in North America and Europe may lead to losing business to Asia.
BNB Pressured Amidst SEC Lawsuit
The BNB bridge hackers' collateral position of 924,821.42 BNB, valued at $236 million, could be liquidated if the BNB price drops further to $220. The attack comes amidst the ongoing lawsuit filed by the SEC against Binance, accusing the exchange of commingling customer funds and covertly transferring them to a separate company controlled by its CEO. The SEC lawsuit and the recent hack have put significant pressure on Binance, leading to decisions such as the removal of trading pairs and a temporary pause on the OTC Trading Portal.
Ethereum Developers Agree on 'Dencun' Upgrade Details
Ethereum developers have agreed on the details of the upcoming network upgrade called "Dencun." The upgrade includes five Ethereum Improvement Proposals (EIPs) aimed at increasing data storage and reducing fees. The key feature, EIP-4844 (proto-danksharding), will scale the blockchain and decrease gas fees. The upgrade will happen by the end of 2023, and rigorous testing will now commence. The upgrade consists of simultaneous upgrades on the execution and consensus layers, known as "Cancun" and "Deneb," respectively.
Resilient EOS Network Continues to Grow Despite Challenges
The EOS network, which had the largest initial coin offering (ICO) in history, faced fines, allegations of market manipulation, and disappointment with its performance. However, the EOS Network Foundation (ENF) was formed to rebuild the project. The community's resilience played a significant role in reviving the platform, which continues to cater to 100 million transactions per day and has seen positive developments like the launch of its EVM mainnet and securing a $60 million investment.
Enjin Launches Mainnet to Boost Web3 Adoption
Enjin has launched its new mainnet, Enjin Blockchain, to increase Web3 adoption. The blockchain will integrate NFT creation and transfer functions into its foundational code and offer new features such as Fuel Tanks and Discrete Accounts. Enjin's Polkadot parachain, Efinity, has also been forked to the new mainnet.
Ankr Launches AppChains on Microsoft's Azure Marketplace
Blockchain infrastructure provider Ankr has launched its enterprise blockchain creator tool, AppChains, on Microsoft's Azure Marketplace. The tool allows companies to quickly launch customizable blockchains for Web3 strategies, with the option to deploy the Polygon Supernet initially. Ankr has witnessed strong demand from institutional clients in areas such as banking, central bank digital currencies, and gaming. The partnership with Microsoft will help test, deploy, and scale Web3 projects seamlessly. Ankr is also the approved infrastructure partner for building on the BNB Chain, Polygon, and Avalanche ecosystems.
Curve Finance Supports Wrapped Staked Ether as Collateral
Curve Finance has added support for wrapped staked Ether (wstETH) as collateral, allowing users to mint its stablecoin, crvUSD. The new feature allows users to borrow crvUSD by putting up wstETH as collateral, with a 6% borrowing rate. The platform also supports staked Frax Ether (sfrxETH) as collateral. The addition of these collaterals is available on the beta version of Curve Finance.
US Government Challenges Bittrex's Bankruptcy Plan
Bittrex, a bankrupt crypto exchange, faces a legal challenge from the U.S. government over its proposal to return customer funds. The government argues that the plan improperly favors certain creditors and that ownership issues should be addressed before confirming the bankruptcy plan. Bittrex holds $50 million in customer cash and $250 million in crypto, and its Maltese operating company has $120 million in customer funds. Previous government interventions have halted similar crypto bankruptcy plans. A hearing on Bittrex's proposal will take place on June 14.
Lawsuit Dismissed Against DeFi Platform PoolTogether
A U.S. judge dismissed a lawsuit against DeFi platform PoolTogether, stating that federal court is not the appropriate venue and the plaintiff lacked standing. The judge suggested pursuing claims in state court. The DeFi community raised $1.4 million through an NFT sale to fund the legal defense.
LUNA Co-founder Investigated Over Alleged Political Ties
Terra Luna (LUNA) co-founder Do Kwon is under investigation by the Special State Prosecution in Montenegro for alleged political ties with Milojko Spajic, the leader of the Europe Now political party. Kwon reportedly sent a letter claiming friendship and donations to Spajic, raising concerns about criminal charges and the potential impact on the upcoming elections. Spajic denies the claims and says he reported Kwon to the authorities. The investigation follows Kwon's arrest in Montenegro in March, and South Korea and the US are seeking his extradition.
World Mobile Tests Decentralized Wireless Tech in Africa
World Mobile has completed field tests of its decentralized wireless (DeWi) technology in Kenya, Mozambique, and Nigeria, bringing it closer to a full rollout across Africa. The tests utilized TV White Space equipment and SpaceX's Starlink satellite internet system. World Mobile aims to provide affordable and reliable internet access to underserved areas using complementary technologies and a blockchain-based network. The company recently launched its commercial network in Zanzibar and plans to extend its services to more countries.
Arbitrum's Two-Hour Outage Exposes Centralization Concerns
Arbitrum, a layer 2 scaling solution for Ethereum, experienced a two-hour outage due to a software bug affecting its sequencer. This left over $2.2 billion in crypto locked inside dapps. The incident highlighted the reliance on centralized sequencers and the need for further decentralization in layer 2 solutions. Despite the outage, Arbitrum described the system as "working as intended." The incident raises concerns about censorship resistance and the trade-off between performance and risk in rollup solutions.
Puma Partners with NBA Star for NFT Sneaker Release
Sports apparel company Puma is collaborating with NBA player LaMelo Ball and NFT project Gutter Cat Gang on a limited-edition sneaker release. The sneakers will be sold as NFT collectibles on OpenSea and can later be redeemed for physical sneakers. Ball signed a multi-year endorsement deal with Puma in 2020. Puma aims to gain cultural prominence in the basketball sneaker market, currently dominated by Nike.
Top Altcoin Gainers and Losers
Terra Classic LUNC (+6.26%)
Stacks STX (+4.00%)
ImmutableX IMX (+3.70%)
Lido DAO Token LDO (-6.93%)
Klaytn KLAY (-4.93%)
Algorand ALGO (-4.59%)
NFT Market Map
Luca Netz, CEO of NFT collection Pudgy Penguins, plans to launch a Web3 licensing marketplace called Overpass in June. Overpass aims to simplify NFT licensing by using blockchain technology and offering tangible revenue streams. It allows companies to license IP directly from holders, providing a scalable way for holders to earn money.
Coinbase launched the 'Stand with Crypto' NFT collection in April, with over 140,830 NFTs minted so far. The collection aims to advocate for sensible crypto policies and features a blue shield symbolizing unity. NFT holders can take actions to support crypto advocacy, and mint fees will be donated to vetted organizations. The rise in interest coincides with legal battles between the SEC and Coinbase and Binance.
This article has been refined and enhanced by ChatGPT.