Coin360 Daily Dispatch | Crypto Market Updates & Highlights | March 7, 2024

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Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin Sees Record Spot Trading and Miners' Revenue
• Tesla's Bitcoin Portfolio Expands Mysteriously
• Ethereum Attracts Massive Purchase and Prepares for Dencun Upgrade
• Digital Currency Group Fights $3 Billion Fraud Claim
• MicroStrategy Ramps Up Bitcoin Investment via Convertible Debt
• BlockFi and FTX Reach Major Settlement Agreement
• South Korea Pursues Terraform Labs Co-Founder's Extradition
• SEC Criticized Over Crypto Enforcement Approach

Investment and Funding

• Pantera Capital Eyes Discounted Solana Tokens from FTX
• ANKR Token Rallies on NVIDIA Conference Participation
• Arizona Explores Bitcoin ETFs for State Retirement Funds

Blockchain and Crypto Adoption

• BitMEX Co-Founder Backs SHIB Names Project
• Uniswap's UNI Token Soars with Governance Proposal Support
• Wormhole Launches Token Airdrop for Ecosystem Decentralization
• Avalanche Transitions Stakers to Core Stake Platform
• Greek Stock Exchange to Use Sui Blockchain for Fundraising

Banking and Financial Services Integration

• SafePal Enters Banking Sector with Swiss Bank Partnership

NFT and Token Market Trends

• NFT Market Faces Downturn Amid Crypto Rally

Bitcoin Sees Record Spot Trading and Miners' Revenue

Bitcoin's retail interest has surged, pushing BTC spot trading volume to a 12-month high with a peak daily volume of $46.26 billion on centralized exchanges. Miners enjoyed their second highest revenue day ever, nearing $76 million, driven by Bitcoin's rally to new all-time highs. A 5% dip could potentially liquidate $2 billion of Bitcoin longs, highlighting the market's volatility. 

Meanwhile, the short-term holder realized price nears $50,000, indicating the acquisition cost follows Bitcoin's price increases. In South Korea, the Bitcoin kimchi premium reached a 27-month high of 10.32%, suggesting a bullish sentiment among local investors, though it might signal an impending price correction after the FOMO period. $1.5 billion in Bitcoin reportedly exchanged hands as the price regained $66,670, demonstrating the significant movement within the market.

Tesla's Bitcoin Portfolio Expands Mysteriously

Tesla's Bitcoin holdings have increased to 11,509 BTC, up from 9,720 reported in the last earnings call. The company initially bought $1.5 billion worth of Bitcoin in 2021, but subsequently sold a significant portion. Speculation surrounds whether Tesla is repurchasing Bitcoin or if the recent change is due to an accounting error. SpaceX also holds Bitcoin.

Ethereum Attracts Massive Purchase and Prepares for Dencun Upgrade

A massive 97,276 ETH purchase by PulseChain has sparked widespread speculation, highlighting strong demand for Ethereum despite questions about the project's motives. Ethereum whales' continued accumulation could potentially drive ETH's price towards $4K, supported by optimistic market sentiment and significant activity on platforms like Magic Eden. The upcoming Dencun upgrade, expected to drastically reduce rollup costs and enhance Ethereum's efficiency, signifies a pivotal moment for Ethereum's scalability, with the potential to make layer-2 transactions considerably cheaper. 

Meanwhile, over 1.5 million ETH have been burned pre-Dencun, indicating a deflationary trend that could positively impact Ethereum's long-term value. However, SEC Chair Gary Gensler's reluctance to classify Ethereum definitively as a security amidst pending spot ETF applications underscores regulatory uncertainties that could influence Ethereum's future trajectory.

Digital Currency Group Fights $3 Billion Fraud Claim

Digital Currency Group (DCG) and CEO Barry Silbert filed a motion to dismiss a $3 billion lawsuit by the NY Attorney General’s Office, countering fraud allegations related to the Gemini Earn investment program. DCG denies wrongdoing, settled with the NYAG, invested in Genesis, and vows to vigorously fight the claims while focusing on industry growth.  

MicroStrategy Ramps Up Bitcoin Investment via Convertible Debt

MicroStrategy increases convertible debt offering to $700 million to buy more Bitcoin, leading to a 3% surge in stock value. With a 80% increase since January, the company aims to attract institutional buyers. The debt is structured with an initial conversion rate of $1,497.68 per share, signaling MicroStrategy's strong confidence in Bitcoin as a strategic asset.  

BlockFi and FTX Reach Major Settlement Agreement

BlockFi and FTX have agreed on a $875 million settlement, including $185.2 million for BlockFi's customer claims against FTX debtors and a separate $689.3 million claim against Alameda Research. BlockFi will receive $250 million after FTX's bankruptcy plan confirmation. This resolution aims to address financial setbacks and discord between the two entities.  

South Korea Pursues Terraform Labs Co-Founder's Extradition

South Korea's National Police Agency has requested Interpol's help to extradite Terraform Labs co-founder Kwon Do-hyeong, after a Montenegro court ruled he could be extradited to face charges related to Terra's collapse in May 2022. Kwon, arrested in Montenegro for using a fake passport, faces fraud charges in both the U.S. and South Korea, with significant investor losses worldwide. South Korea's extradition request preceded the U.S., giving it priority. Kwon, detained for a year, denies fraud allegations. His extradition is expected after March 23, following a four-month sentence for falsified documents.

SEC Criticized Over Crypto Enforcement Approach

SEC Commissioners Peirce and Uyeda criticized the SEC's crypto enforcement policies after the ShapeShift settlement. The $275,000 settlement followed allegations of offering unregistered securities. The SEC's determination of investment contracts was criticized as arbitrary and opaque. Commissioners argued that the SEC's actions harm innovation and entrepreneurship without protecting investors, emphasizing the need for clarity.   

Pantera Capital Eyes Discounted Solana Tokens from FTX

Pantera Capital plans to raise funds to purchase $250 million worth of Solana tokens from the bankrupt FTX exchange at a 57% discount. The investment requires a minimum commitment of $25 million per investor and includes a four-year vesting period, a 0.75% management fee, and a 10% performance cut. FTX aims to repay investors through asset liquidation.  

ANKR Token Rallies on NVIDIA Conference Participation

The ANKR token surged by nearly 20% following the announcement of its CEO and CTO's participation at NVIDIA's GTC 24 Conference. NVIDIA's recent earnings were strong, exceeding analyst expectations, with Q4 revenue up 22% from Q3. The company also has an optimistic outlook for Q1 of fiscal 2025, expecting revenue of around $24 billion.  

Arizona Explores Bitcoin ETFs for State Retirement Funds

The Arizona State Senate has passed a resolution for ASRS and PSPRS retirement funds to evaluate adding Bitcoin ETFs. Spearheaded by Republican Senator Wendy Rogers, the initiative aims to assess the feasibility and benefits of digital asset investments. The resolution requires a comprehensive report and has advanced to the state House for further review.   

Greek Stock Exchange to Use Sui Blockchain for Fundraising

The Greek stock exchange, ATHEX, aims to utilize the Sui blockchain for its new electronic book building (EBB) tool, created in partnership with Mysten Labs. EBB will enable companies to list transferable securities and raise funds. Sui Network, known for high transaction volumes and low fees, launched its mainnet in May 2023 and collaborated with the American University of Sharjah to promote blockchain technology education.  

BitMEX Co-Founder Backs SHIB Names Project

BitMEX co-founder Arthur Hayes endorses SHIB Names, signifying the growing influence of "dog money." Shiba Inu's SHIB Names offer personalized domain names, reflecting the community's expansion. Early access allows users to secure unique SHIB identities using diverse payment options. Additionally, users can benefit from a one-time 69% discount for up to 20 SHIB Names.  

Uniswap's UNI Token Soars with Governance Proposal Support

Uniswap's UNI token surged 46% to $17, its highest in two years, with a 120% trading volume increase. The proposal for fee redistribution and governance upgrade has gathered significant community support. A whale accumulated $12.5 million in UNI over 48 hours, and Uniswap's network activity saw a substantial rise, indicating growing ecosystem adoption.  

Wormhole Launches Token Airdrop for Ecosystem Decentralization

Wormhole announces a 617 million token airdrop to enhance ecosystem decentralization. The airdrop follows a positive audit by the Uniswap Foundation’s Bridge Assessment Committee, affirming Wormhole's security. W tokens aim to incentivize community contribution and enable token-based governance, representing a transition to a decentralized and community-driven operational model across over 30 blockchains. 

Avalanche Transitions Stakers to Core Stake Platform

Avalanche is discontinuing its web wallet, prompting stakers to transition to the Core Stake platform. This will not affect staking rewards. Core Stake offers advanced features and direct staking to validating nodes. 57% of AVAX's circulating supply is staked, with rewards at 8.51%, though showing a recent decrease. 

SafePal Enters Banking Sector with Swiss Bank Partnership

Crypto wallet provider, SafePal, has ventured into banking by investing in Swiss bank Fiat24, launching a virtual crypto Visa card, and an in-app banking gateway. Users can open compliant bank accounts with USD Coin (USDC) as the default deposit currency, enabling real-world use of digital assets. Additionally, the crypto Visa card is compatible with major payment platforms.