Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 25, 2023
Crypto Market Update
Written by Van
Table of Contents:
Acquisitions and Investments
- Fahrenheit Consortium Secures Bid for Bankrupt Crypto Lender Celsius
- Worldcoin Raises $115M for World ID and Crypto Wallet Expansion
- Ripple Acquires Bitstamp Shares to Boost International Expansion
Network Security and Vulnerabilities
- Celer Patches Network Vulnerability Exposed by Jump Crypto
Regulatory and Legal Updates
- Terraform Labs Co-founders to Stay in Custody Amidst Extradition Requests
- Sushiswap, Lido Await Vote Outcome over Stolen Crypto Dispute
- Binance Seizes $4.4M Linked to North Korean Illicit Fundraising
Crypto Market Trends
- Stablecoin Market Shrinkage Poses Challenge to Crypto Recovery
Media and Publicity
- China's CCTV Retracts Crypto Compliance Video After Binance CEO Comment
Protocol and Platform Updates
- Binance Suspends Deposits Over Multichain Protocol Concerns
- Circle Launches Euro Coin on Avalanche for Faster Payments
NFT and DeFi Developments
- Binance Introduces NFT Loan Feature for Instant Liquidity
- Blur's Blend Captures 82% of NFT Lending Market Amidst Concerns
Fahrenheit Consortium Secures Bid for Bankrupt Crypto Lender Celsius
The Fahrenheit Consortium has won the bidding process to acquire crypto lender Celsius, which filed for bankruptcy in July 2022. Fahrenheit, consisting of Arrington Capital, US Bitcoin Corp, and Proof Group Capital Management, will need to deposit $10 million in cash within three days to secure the sale. They will gain control of $450-500 million worth of liquid crypto, Celsius' institutional loan portfolio, staked crypto, and mining operations managed by US Bitcoin. US regulators may still intervene despite approval from Celsius and creditors.
Worldcoin Raises $115M for World ID and Crypto Wallet Expansion
Worldcoin raises $115 million in Series C round led by Blockchain Capital to support its World ID and crypto wallet. Co-founded by OpenAI's CEO, the project aims to tackle problems arising from the growing complexity of artificial intelligence. It has already onboarded over 2 million users and is preparing to launch a blockchain protocol in the next few weeks. The WorldApp, a gas-free crypto wallet, was launched in May, and enables users to hold and transfer USD Coin, Dai, Ether, Worldcoin and Wrapped Bitcoin.
Ripple Acquires Bitstamp Shares to Boost International Expansion
Ripple has acquired shares in Bitstamp, a European cryptocurrency exchange, as part of its international expansion strategy. The transaction was revealed in Galaxy Digital's quarterly report, which stated that Ripple purchased the shares from crypto hedge fund Pantera Capital. Ripple CEO Brad Garlinghouse has previously expressed the company's intention to use its $1 billion reserves for acquisitions. The move has led to speculation about Ripple's plans for its On-Demand Liquidity (ODL) and Liquidity Hub (LH) solutions, and it aligns with the company's goal of expanding globally.
Celer Patches Network Vulnerability Exposed by Jump Crypto
Celer, a cross-chain interoperability protocol, has patched a vulnerability in its State Guardian Network (SGN) after it was disclosed by Jump Crypto. The vulnerability could have allowed a malicious validator node to manipulate the network. No funds were lost, and Celer plans to propose a bug bounty grant to Jump Crypto. The article highlights the prevalence of vulnerabilities in the DeFi space, with $2.73 billion stolen by hackers from DeFi projects.
Terraform Labs Co-founders to Stay in Custody Amidst Extradition Requests
Terraform Labs co-founder Do Kwon and former CFO Han Chong-joon will remain in custody in Montenegro as prosecutors appeal their release on bail. Kwon faces extradition requests from the US and South Korea, as well as charges in Singapore, and could face up to 40 years' imprisonment in South Korea.
Sushiswap, Lido Await Vote Outcome over Stolen Crypto Dispute
Tensions have escalated between decentralized finance (DeFi) projects Sushiswap and Lido as they await the outcome of a vote to return stolen crypto. Sushiswap seeks the return of 40 ETH ($72,000) from Lido's treasury after a hack, but a governance proposal failed to reach quorum. A second proposal is currently underway, but participation has been low, leading to increased tensions between the two projects. Sushiswap accused Lido of theft, while Lido claims Sushiswap failed to properly audit the exploited smart contract. Both projects have faced regulatory issues recently.
Binance Seizes $4.4M Linked to North Korean Illicit Fundraising
Binance seized $4.4 million in cryptocurrency linked to North Korean organizations engaged in illicit fundraising for their hacking operations. The funds were intended for the Pyongyang University of Automation and the North Korean Technical Reconnaissance Bureau. North Korean IT professionals based in Russia and China often contribute their salaries to fund these entities. The US government and Binance collaborated to block this funding. Binance has been criticized for insufficient measures against cybercriminals, but they assert their commitment to preventing such activities.
Stablecoin Market Shrinkage Poses Challenge to Crypto Recovery
The stablecoin market has been shrinking for the 14th consecutive month, with its total market capitalization dropping to $130 billion in May, the lowest level since September 2021. This trend is seen as a sign of capital leaving the digital asset space and poses challenges for the recovery of cryptocurrency prices.
Analysts argue that the contraction of the stablecoin market indicates deteriorating liquidity, which hinders investment and speculation. The decline in stablecoin trading volume on centralized exchanges also contributes to the overall decrease in liquidity. However, TrueUSD (TUSD) has bucked the trend, experiencing increased trading volume due to promotion by Binance, making it the second most traded stablecoin on centralized exchanges.
China's CCTV Retracts Crypto Compliance Video After Binance CEO Comment
China's state-affiliated media CCTV aired a video about cryptocurrency compliance in Hong Kong and a Solana-based memecoin, but removed it from its platform a day after Binance CEO CZ called it a "big deal." Hong Kong recently allowed licensed virtual asset platforms to offer services to retail traders, sparking speculation about China's crypto stance. China has maintained a hostile stance toward foreign cryptocurrencies and promotes its central bank digital currency, the digital yuan.
Binance Suspends Deposits Over Multichain Protocol Concerns
Binance suspended deposits for 10 bridged crypto coins, including AVA-ETH and FTM-ETH, due to concerns about the Multichain protocol. Fantom Foundation also halted liquidity provision with its MULTI tokens on SushiSwap but believes assets are secure due to multi-party computation protocol. Multichain accounts for a significant portion of the value locked on the Fantom blockchain. Rumors of the Multichain team's arrest in China and unexplained downtime have caused uncertainty.
Circle Launches Euro Coin on Avalanche for Faster Payments
Stablecoin issuer Circle has launched Euro Coin (EUROC) on Avalanche, offering faster and more efficient payments and financial services for developers and users. EUROC is fully backed with euro reserves, increasing its liquidity and allowing users to transact in euros alongside USD Coin (USDC). Circle has also introduced a protocol for cross-chain transfers of USDC between Ethereum and Avalanche.
Binance Introduces NFT Loan Feature for Instant Liquidity
Binance is launching a non-fungible token (NFT) loan feature called Binance NFT Loan, allowing users to borrow ETH by using their NFTs as collateral. The service offers competitive interest rates, instant liquidity, zero gas fees, and liquidity protection. Initially, it will support Ethereum loans and NFTs from specific collections, with plans for future options. Binance aims to provide liquidity options for NFT holders while expanding its NFT offerings to stay competitive in the crypto space.
Blur's Blend Captures 82% of NFT Lending Market Amidst Concerns
Non-fungible token (NFT) marketplace Blur's lending platform, Blend, has captured 82% of the total lending volume market share. In its first 22 days, Blend accumulated $308 million in trading volume, witnessing a 3,945% increase. However, concerns about market stability and price volatility have been raised due to Blend's high trading volumes.
Additionally, DappRadar highlights wash trading as a concern, urging transparency and avoiding manipulative practices. Despite these concerns, Blur's total value locked has increased to $146 million, while the NFT market's trading volumes reached $466 million.
Top Altcoin Gainers and Losers
Render Token RNDR (+10.62%)
Lido DAO Token LDO (+4.42%)
The Sandbox SAND (+4.02%)
Flare FLR (-4.85%)
Synthetix SNX (-4.18%)
Conflux CFX (-3.98%)
NFT Market Map
Magic Eden, a multi-chain NFT marketplace, is shifting its focus back to Solana with its "Chapter II" initiative. The platform will aggregate listings from competing marketplaces, open-source its smart contract, and remove the "co-sign" feature. The relaunch includes a temporary "maker fee" of -0.25%, effectively paying users to buy and sell NFTs. Magic Eden faces competition from Tensor but currently holds a lead in trading volume. The moves address criticisms of closed-source code and limited composability opportunities, though the status of the escrow contract remains unclear.
This article has been refined and enhanced by ChatGPT.