Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 21, 2023
Crypto Market Update
Written by Van
Table of Contents:
Cryptocurrency Market Developments
- Tornado Cash DAO Falls Victim to Manipulative Attack, TORN Plunges
- Declining Activity Witnessed on Arbitrum's Perpetual Platforms
- Meme Cryptocurrency Pepe Surpasses BNB's Trading Volume
Legal and Regulatory Updates
- Internal SEC Emails Cast Doubt on XRP's Howey Test Status
- Forensic Accountant Discovers Hidden Bitcoin in Divorce Case
Economic Analysis & Financial Institutions
- Federal Policies Enhance Cash Withdrawal Risk, says Hedge Fund Manager
Blockchain Innovations and Partnerships
- Acredius Launches on Cardano, Boosting ADA's Ecosystem
- Cross-Chain Investment Fund Announced by Algorand, Solana, and Polygon
- Mordinals' Implementation Raises Concerns Over Monero's Privacy
Tornado Cash DAO Falls Victim to Manipulative Attack, TORN Plunges
The DAO of privacy-focused crypto mixer Tornado Cash was taken over by an unidentified attacker, who used fake votes to handle some aspects of Tornado Cash. This does not affect the actual Tornado Cash protocol. The TORN token slumped as much as 40%. Community members are proposing solutions to revert changes made to the code.
Declining Activity Witnessed on Arbitrum's Perpetual Platforms
Arbitrum experienced a surge in activity, particularly on perpetual platforms such as GMX, with a market cap directly correlated to its growing number of users. However, activity has been declining steadily over the past few weeks, with a decrease in daily active addresses and transactions. The current price of ARB is $1.638, with sellers in control and a net outflow of money from the token. The velocity of ARB has also fallen, indicating a decrease in trading frequency with no observed network growth improvement.
Meme Cryptocurrency Pepe Surpasses BNB's Trading Volume
Pepe, the meme cryptocurrency, surged 12% at one point and outpaced BNB's 24-hour trading volume. PEPE's market cap has been down 60% from the all-time high of $0.00000431, but its number of holders surpassed 100,000 in just 22 days.
Forensic Accountant Discovers Hidden Bitcoin in Divorce Case
A forensic accountant helped uncover the undisclosed Bitcoin stash of a New York man, which he intended to hide from his wife during their divorce proceedings. The husband's 12 BTC stash was worth roughly $500,000, and he will have to part ways with some of his holdings.
Internal SEC Emails Cast Doubt on XRP's Howey Test Status
Internal SEC emails suggest that XRP may not meet all elements of the Howey Test, which is used to determine if a transaction qualifies as an investment contract and thus, a security. The information was revealed by legal commentator John Deaton, who questioned why Ripple's legal team did not give more prominence to the emails in their legal briefs. The emails may be a statement from a senior SEC staff member or an SEC official referencing another person's analysis of XRP.
Federal Policies Enhance Cash Withdrawal Risk, says Hedge Fund Manager
Hedge fund manager Hendry has told Stansberry Research that the Federal Reserve's monetary policy has increased the risk of customers facing restrictions on the amount of cash they may withdraw, and that the probability of such measures has risen. Hendry added that the combination of low savings rates and Fed rate hikes has made money market funds more attractive, encouraging savers to withdraw funds from banks.
Acredius Launches on Cardano, Boosting ADA's Ecosystem
Swiss fintech platform Acredius has launched on Cardano's blockchain, allowing investors to use ADA to invest in small and medium-sized businesses, as well as deploying smart contracts for tokenization of loans. This collaboration will enhance Cardano's ecosystem and provide new impetus for the ADA token. The ADA price has been trading below $0.4.
Cross-Chain Investment Fund Announced by Algorand, Solana, and Polygon
Algorand, Solana, and Polygon have partnered to launch a $50 million cross-chain investment fund. The Cross-Chain Ecosystem Investment Fund will invest in start-ups using the Wormhole cross-chain messaging protocol. The fund's participants include Algorand Foundation, Solana Foundation, Polygon Ventures, Aptos Labs, Circle, and Jump Crypto. Wormhole has already powered the transfer of over $35 billion worth of tokens, but cross-chain security issues have plagued the industry. The new investment fund may spur developers to create solutions to these challenges.
Mordinals' Implementation Raises Concerns Over Monero's Privacy
Mordinals, a modified implementation of Bitcoin Ordinals on the Monero blockchain, allows users to inscribe arbitrary data alongside transactions. The protocol raises concerns over Monero's privacy and decentralization, as it could impact the network's ring signatures and storage requirements for nodes. However, some argue that updates could fix the risks. While NFTs could increase utility for Monero, its anonymity and decentralization ethos conflict with provenance and markets, making Mordinals unlikely to gain traction without significant utility.
Top Altcoin Gainers and Losers
Pepe PEPE (+5.96%)
Casper CSPR (+4.92%)
Kava KAVA (+2.90%)
Theta Network THETA (-3.23%)
Radix XRD (-3.19%)
Bitcoin SV BSV (-2.64%)
NFT Market Map
Pudgy Penguins' new "Phygital" Toy Collection & Experience on Amazon resulted in over $500,000 in sales and 20,000 individual toys sold in the first two days, beating out legacy brands. The project's goal is to bring millions of users into the Web3 space. Pudgy Penguins is among the few Ethereum-based projects to have raised $9 million this year.
This article has been refined and enhanced by ChatGPT.