Coin360 Daily Dispatch | Crypto Market Updates & Highlights | March 27, 2024

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Crypto Market Update

Table of Contents

Bitcoin and Ethereum Updates

• Bitcoin Tumbles After SEC vs Coinbase Debate
• Ethereum Whales Active as Vitalik Proposes Changes

Legal and Regulatory News

• Coinbase's Legal Battle with SEC Escalates
• KuCoin Outflows Spike After Legal Scrutiny

ETFs and Institutional Moves

• Spot Bitcoin ETFs Gain Momentum, Hashdex Renames ETF
• 21Shares Introduces TON Staking ETP on SIX Exchange

Tokenization and Asset Management

• Tokenizing Gold and Diamonds: HSBC and Avalanche Lead

Emerging Crypto Projects and Technologies

• AI Crypto Projects Eye Groundbreaking Merger
• ETHFI Token's Meteoric Rise in Crypto Market
• Mantle Coin's Value Soars Amid Whale Accumulation
• Near Protocol Boosts Interoperability with Chain Signatures
• Sui and Revolut Collaborate on Blockchain Awareness
• Nomura's Laser Digital Unveils Polygon MATIC Fund
• ICP Community Backs Decentralization with $80M Pledge

Platform and Gaming Developments

• OKX Reaches Settlement with Malta's Financial Authority
• peaq Raises $15M to Decentralize Physical Infrastructure
• Illuvium Lands $12M for Blockchain Gaming Growth
• Elixir Games Nets $14M for Decentralized Gaming Ecosystem
• Munchables Game Recoups $62M Lost in Exploit
• Arbitrum to Host Azuki's AnimeChain Ecosystem

Bitcoin Tumbles After SEC vs Coinbase Debate

Bitcoin faced a notable decline following a court decision favoring the SEC against Coinbase, causing a drop over 4% to $68,796 and significant liquidations before reclaiming $69,000. Before the drop, its price surged past $71,000 as Hong Kong eyed the approval of spot ETFs and the positive inflow from spot Bitcoin ETFs in the U.S., highlighting a potential market catalyst. Furthermore, a massive consolidation of 2,000 Bitcoin, valued at nearly $140 million, raised sell-side liquidity concerns, marking significant market movements. 

Ethereum Whales Active as Vitalik Proposes Changes

Staked Ethereum reached a weekly high with significant whale activity, including a 12,800 ETH transaction to the Beacon Chain. Deposits outpaced withdrawals, with 23.9 million ETH staked since the Shanghai upgrade versus 10.1 million withdrawn. Interest in staking surged, although the ratio of ETH staked to total supply declined from 30% to 26%, influenced by price fluctuations. 

Meanwhile, Ethereum's Vitalik Buterin proposed higher penalties for large-scale validators to improve network decentralization. This addresses the risk of correlated failures among large stakers or pools, aiming to discourage centralized validator operations and promote a more distributed network structure.

Coinbase's Legal Battle with SEC Escalates

Coinbase's SEC lawsuit moves forward as courts deny most dismissal motions, highlighting the exchange's operation as an unregistered broker, exchange, and clearinghouse. The ruling affirmed SEC's claims against Coinbase for facilitating crypto-asset securities transactions without proper registration, while granting Coinbase's motion regarding its Wallet application. Max Keiser supports the SEC, deeming all cryptos except Bitcoin as unregistered securities. Meanwhile, Coinbase plans to enhance USDC reserves on Base, boasting over $1 billion TVL, promising lower fees and faster settlements. 

KuCoin Outflows Spike After Legal Scrutiny

The indictment against KuCoin and its founders for violating anti-money laundering regulations led to a $1.2 billion outflow within the first 24 hours since the news. Crypto assets such as USDT, ETH, and BTC were withdrawn to mitigate risks. Despite legal challenges, KuCoin maintains sufficient reserves, with a reported $4.889 billion balance. The exchange reassures users of the safety of their assets amid regulatory scrutiny and market volatility.  

Spot Bitcoin ETFs Gain Momentum, Hashdex Renames ETF

The U.S. welcomed its eleventh spot Bitcoin ETF with Hashdex's conversion of its bitcoin futures fund into a spot ETF, trading under the ticker DEFI, holding 5,500 bitcoins and a small number of futures contracts with a 0.90% expense ratio. U.S. spot Bitcoin ETFs saw $418M in net inflows, led by BlackRock and Fidelity, with Fidelity recording its largest daily inflow since March 13. 

In contrast, Grayscale's Bitcoin Trust faced outflows. Meanwhile, in Hong Kong, firms like VSFG and Value Partners applied for the region's first spot Bitcoin ETF licenses, indicating a growing demand for cryptocurrency investment products in Asia and marking a significant step towards financial innovation and investor interest in the cryptocurrency market.

21Shares Introduces TON Staking ETP on SIX Exchange

The 21Shares Toncoin Staking ETP (TONN) recently listed on the Swiss SIX Exchange, offering investors staking rewards for the Telegram-endorsed token, TON. Staking TON provides passive income without the need for node management. 21Shares, a crypto asset manager, reached over $5 billion in assets under management, demonstrating significant growth and market influence.  

Tokenizing Gold and Diamonds: HSBC and Avalanche Lead

HSBC has launched the HSBC Gold Token in Hong Kong, a pioneering move into the tokenization of real-world assets, regulated by the SFC, aiming to blend the inherent value of gold with blockchain benefits. 

Meanwhile, diamonds have joined the trend of asset tokenization with a new fund on the Avalanche network, enabling investors to access a $1.2 trillion natural resource through a tradable fund. This fund, listed on Oasis Pro Markets and eligible for IRAs, represents a significant step towards democratizing investments in previously opaque and inaccessible assets like diamonds, alongside other tokenization endeavors by financial giants and an ERC-3643 token standard for asset management on blockchains. 

AI Crypto Projects Eye Groundbreaking Merger

Three leading decentralized AI projects – Fetch.ai, SingularityNET, and Ocean Protocol – have proposed a merger to establish the Superintelligence Collective. The ASI token, if approved, could rank among the top 20 cryptocurrencies, with a fully-diluted valuation of $7.5 billion as of March 26, accelerating progress toward AGI and ASI.  

ETHFI Token's Meteoric Rise in Crypto Market

ETHFI, a newly launched governance token for the Ether.fi network, has seen an impressive surge of nearly 3,000% in less than two weeks, reaching an all-time high of $7.07. This rally has established ETHFI as a leading staking narrative, attracting attention from the Ethereum community and significant transactions from top holders.

Mantle Coin's Value Soars Amid Whale Accumulation

Mantle (MNT) price surged by over 40% to reach an all-time high of $1.47, driven by significant accumulation by whale addresses and a 187% spike in retail investor participation. Whales added over 11 million MNT worth $12.7 million in a single day, while retail investor activity reached a record high. If the bullish momentum persists, the altcoin's rally may continue.    

Near Protocol Boosts Interoperability with Chain Signatures

The Near Foundation has introduced chain signatures and multichain transactions through a partnership with EigenLayer, boosting interoperability and user experience on the Near Protocol. Despite a 40% reduction in its workforce, Near Protocol has seen a 1,902% surge in active wallets, maintaining a strong presence in the Web3 space with growing user activity and application rankings.  

Sui and Revolut Collaborate on Blockchain Awareness

Sui and Revolut have partnered to raise blockchain awareness among Revolut's 40 million customers globally, fostering Sui's growth in Europe. Sui will use Revolut's Learn program to educate users and recently surpassed $700 million TVL. The SUI token surged by nearly 19% in 24 hours, trading at $2.15, with a 30% rise in a month.  

Nomura's Laser Digital Unveils Polygon MATIC Fund

Laser Digital, a subsidiary of Nomura, has launched an institutional fund in partnership with TruFin, offering exposure to Polygon's MATIC token and staking yields. The fund targets large financial entities and provides liquid staking services through TruFin's TruStake solution, outperforming Lido with a 5% annual yield. It will initially be available to U.K.-based investors.  

ICP Community Backs Decentralization with $80M Pledge

In 2023, the Internet Computer community pledged nearly $80 million worth of ICP tokens for decentralization efforts, with over 6.5 million ICP tokens committed. The Service Nervous System framework played a crucial role in this, benefiting projects such as OpenChat and witnessing significant growth in blockchain gaming. Additionally, the pivot to AI led to a 50% surge in ICP prices.  

OKX Reaches Settlement with Malta's Financial Authority

OKX quietly settled a 304,000 euro goodwill penalty with the Malta Financial Services Authority regarding regulatory failings connected to its Okcoin Europe subsidiary. The agreement included appointing an independent third-party to assess the exchange's governance. Specific details of the failings were not disclosed by either party, maintaining a level of confidentiality in the settlement process.  

peaq Raises $15M to Decentralize Physical Infrastructure

DePIN platform peaq, a German startup, secured $15 million in a Series A round led by Generative Ventures and Borderless Capital. With over 20 projects, peaq aims to decentralize physical infrastructure with blockchain technology. Industry initiatives include energy systems, supply chains, telecommunications, and data storage. The market valuation for DePIN is projected to reach $3.5 trillion in four years, and the funds will primarily support ecosystem expansion and solution development for developers.  

Illuvium Lands $12M for Blockchain Gaming Growth

Illuvium, an Ethereum-based gaming platform, secured a $12 million investment, bringing its total funding to $60 million. The investment aims to expand gaming offerings, including three interconnected game titles and an NFT-based profit-sharing system. Additionally, a potential airdrop distribution worth $25 million is anticipated, while the user base exceeds one million players.  

Elixir Games Nets $14M for Decentralized Gaming Ecosystem

Elixir Games secured $14 million in seed funding from backers including Square Enix, the Solana Foundation, and Shima Capital to develop a decentralized gaming ecosystem. The funding will support the expansion of Elixir's launcher platform, the launch of the ELIX token, and the establishment of a Launchpad & Incubation Program for crypto game developers. Additionally, Elixir will initiate a season pass campaign on April 4 offering $750,000 in prizes through game tournaments and promotions.  

Munchables Game Recoups $62M Lost in Exploit

Munchables, a game on Ethereum Layer 2 Blast, recovered $62 million lost in an exploit, thanks to a developer returning all funds voluntarily, involving no ransom. A breach in the game's contract system was exploited, leading to the unauthorized withdrawal of about 17,414 ETH, equivalent to nearly $62.5 million. 

ZachXBT uncovered that four developers connected to the exploit, recommended each other for jobs within Munchables, and were likely the same person. They regularly moved funds to the same exchange addresses. Following the recovery, Munchables initiated refund processes for affected users, ensuring all user funds are secure and that related rewards will be distributed. Blast, hosting Munchables, is a rapidly growing Layer-2 solution with significant value and upcoming airdrops.