Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 30, 2023
Crypto Market Update
Written by Van
Table of Contents:
- Tether and Bitdeer Launch Sustainable Mining in Uruguay
- US Abandons Proposed Crypto Miner Electricity Tax
- Bitcoin Faces Monthly Loss Amid US Dollar Strength
- Bitcoin Trades at Discount on Binance Australia Following Regulations
- Large Token Unlocks Anticipated for Optimism and Sui
- Russia Abandons National Crypto Exchange, Seeks Multiple Regulations
- Huobi Applies for Virtual Asset Exchange License in Hong Kong
- ECB Finalizes Digital Euro Prototypes Amid Controversy
Crypto Exchanges and Platforms
- BKEX Suspends Withdrawals Amid Money Laundering Concerns
- Binance Reopens TORN Deposits Post Tornado Cash Attack
- Qredo Launches Affordable Self-Custody Wallet for Institutions
Security and Exploits
- dWallet Labs Discovers Vulnerability in Tron Multisig Accounts
- EDE Finance Exploited, Attacker Returns Funds
Crypto Assets and Tokenomics
- MakerDAO's DAI Reduces Centralization with USDC Decrease
- KuCoin's Unexplained Ethereum Transfer Sparks Speculation
NFT and Metaverse
- Sony and Astar to Invest in Web3, NFT and Metaverse
- New Token Standard Introduced for Cross-Chain NFT Transfers
Tether and Bitdeer Launch Sustainable Mining in Uruguay
Tether is launching a Bitcoin mining operation in Uruguay to support its Bitcoin strategy. The move is motivated by Uruguay's high percentage of renewable electricity generation. Tether aims for sustainability and has a dominant position in the stablecoin market. Bitdeer also initiated a carbon-free mining operation.
US Abandons Proposed Crypto Miner Electricity Tax
A proposed tax on electricity for cryptocurrency miners in the US has been removed in the debt ceiling deal between President Biden and House Speaker McCarthy, according to Congressman Warren Davidson. The tax aimed to impose a 30% levy on the energy used by crypto miners.
Shares of listed crypto miners have since rebounded, and some US states have even proposed legislation to protect the industry. The debt ceiling deal is expected to be voted on by lawmakers on May 31.
Bitcoin Faces Monthly Loss Amid US Dollar Strength
Bitcoin is facing its first monthly loss since December, with prices down about 5% for the month. The US Federal Reserve's hawkish stance on interest rates and the strengthening US dollar have contributed to Bitcoin's decline. Capital has been leaving the crypto market, and stablecoin market capitalization is at a 20-month low.
Bitcoin whales and sharks have accumulated 93,000 BTC (worth $2.6 billion) since April, but their buying has stagnated recently as they remain cautious about the cryptocurrency's future. The supply distribution indicator shows their influence on the market.
Bitcoin Trades at Discount on Binance Australia Following Regulations
Bitcoin traded at a 20% discount on Binance's Australian platform due to the closure of fiat off-ramp services and the withdrawal of AUD holdings by users. Binance's derivatives license was revoked in Australia, and the exchange is under investigation by multiple US authorities. Binance Australia's banking partner, Cuscal, severed ties, and Westpac stopped allowing deposits to Binance.
Large Token Unlocks Anticipated for Optimism and Sui
Optimism and Sui will have large token unlocks worth $650 million, with Optimism seeing a 114% increase in circulating supply and Sui a 13% increase. Wintermute has transferred Optimism tokens worth $4.31 million to a Binance exchange wallet ahead of the token unlock that will release $587 million worth of tokens into the market.
The OP tokens, accounting for 9% of the total supply, will be released on May 31. Wintermute has already sold 5.9 million tokens for $10.6 million and still holds 15.37 million OP, worth around $23.4 million.
Russia Abandons National Crypto Exchange, Seeks Multiple Regulations
The Russian government has abandoned plans to launch a national cryptocurrency exchange and instead aims to regulate multiple crypto trading platforms. Russia's Ministry of Finance did not support the plan. The central bank is expected to supervise the exchanges, which will facilitate cross-border transactions.
Major Russian crypto companies prefer a regulatory framework for such organizations. The idea of a national exchange was deemed infeasible, and concerns were raised about government oversight and privacy. Russia is developing legislation targeting the crypto industry and central bank digital currency.
ECB Finalizes Digital Euro Prototypes Amid Controversy
The European Central Bank (ECB) has finalized prototypes for a digital euro and is considering whether to develop it further. The ECB is open to innovation but skeptical about using distributed ledger technology. The prototypes faced controversy due to Amazon's involvement, but the ECB downplayed its significance.
The ECB's prototype uses a centralized model based on unspent transaction outputs. Lawmakers are skeptical about the digital euro's benefits and its lack of programmable money features. Other jurisdictions, including the Bank of England, are also considering central bank digital currencies.
Huobi Applies for Virtual Asset Exchange License in Hong Kong
Huobi, a cryptocurrency exchange, has applied for a virtual asset exchange license in Hong Kong. The new division, Huobi HK, will allow customers to trade crypto spot pairs. Other exchanges, including OKX, also plan to apply for a similar license. Hong Kong recently implemented a crypto licensing regime to foster innovation and protect investors.
BKEX Suspends Withdrawals Amid Money Laundering Concerns
Crypto exchange BKEX suspended withdrawals due to money laundering involving users' funds. The exchange is cooperating with law enforcement agencies and aims to restore normal operations while protecting users' rights. Centralized exchanges have come under scrutiny following FTX's collapse last year and Hotbit's recent shutdown.
Binance Reopens TORN Deposits Post Tornado Cash Attack
Binance has reopened TORN deposits after an attack on Tornado Cash DAO. The exchange also moved Tornado Cash into its Innovation Zone for close monitoring. The attacker minted over 1 million TORN tokens, valued at over $4 million, but the actual protocol was not impacted.
Qredo Launches Affordable Self-Custody Wallet for Institutions
Crypto storage technology firm Qredo has launched a cheap, open-source self-custody wallet platform for institutional traders. The platform utilizes multi-party computation (MPC) for improved control over team permissions and approval processes. Qredo aims to address the need for open-source, on-chain custody systems that are affordable.
The company has been developing custody and wallet products for over four years, serving over 85,000 users globally. They saw a surge in asset movements to self-custody following the collapse of FTX, securing nearly $30 billion in crypto assets.
EDE Finance Exploited, Attacker Returns Funds
Decentralized exchange protocol EDE Finance was exploited for around $580,000, with the attacker manipulating token prices. The attacker returned over $400,000 worth of USDC and USDT after the project admitted to manipulating prices. The EDE token was down 14% to $0.5767.
dWallet Labs Discovers Vulnerability in Tron Multisig Accounts
A zero-day vulnerability in Tron multisig accounts has been discovered by dWallet Labs, which could have allowed attackers to bypass the multisignature mechanism and sign transactions with a single signature. The vulnerability was reported to Tron in February and fixed days after.
MakerDAO's DAI Reduces Centralization with USDC Decrease
Circle's USDC stablecoin backing MakerDAO's DAI has decreased to 23.6% from 50% last August, reducing concerns about DAI's centralization. DAI's backing now includes real-world assets like U.S. government bonds, Gemini's GUSD, and Paxos's USDP stablecoin. However, the shift to U.S. treasuries is seen as a form of centralization.
The MakerDAO community has approved a $1.6 billion USDC deposit to Coinbase Custody, and another RWA proposal is in the voting phase. DAI will still be subject to U.S. regulations via companies like Coinbase and BlockTower.
KuCoin's Unexplained Ethereum Transfer Sparks Speculation
KuCoin mistakenly sent a large amount of Ethereum (ETH) to the burn address, raising questions about the motive behind the transaction. The incident, which occurred in September 2021, involved over 3,500 transactions of USDT and ETH. The reasons behind the transfer remain unknown, leading to various hypotheses and speculation.
Sony and Astar to Invest in Web3, NFT and Metaverse
Sony is partnering with Astar to invest in Web3, NFT, and metaverse companies through an incubator program. They have narrowed down the selection to 19 projects, which will participate in a demo day event in June. Sony is inviting large firms interested in these technologies to attend and provide mentoring and resources. Japanese Prime Minister Fumio Kishida sees these sectors as growth engines for the national economy.
New Token Standard Introduced for Cross-Chain NFT Transfers
Ordinals.market, Bitcoin Miladys NFT collection, and Xverse Bitcoin wallet have introduced the BRC-721E token standard, allowing ERC-721 tokens to be transferred from Ethereum to the Bitcoin network. The new standard burns ERC-721 NFTs on Ethereum and creates a recreated version on Bitcoin. NFT sales on Bitcoin declined while Ethereum NFT sales increased.
Top Altcoin Gainers and Losers
IOTA MIOTA (+15.04%)
Injective INJ (+11.74%)
Quant QNT (+11.65%)
Pepe PEPE (-11.16%)
Flare FLR (-10.48%)
Fantom FTM (-9.19%)
NFT Market Map
An NFT report by DappRadar reveals wash trading and token farming practices amid declining trading volumes. Bored Ape Yacht Club experiences significant growth in trading volume, driven by wash trading. NFT market faces contraction, with Blur gaining market share. Ethereum dominance challenged, and investors cautious due to oversupply and declining funding.
Top NFT projects, including Doodles and Invisible Friends, have lost up to 95% of their value in Ether, with the value of blue-chip NFT collections falling by over 40% on average. However, some investors remain unfazed and believe it is the right time to invest. The number of blue chip NFT holders has increased by more than 90% over the past year, despite the financial setbacks.
This article has been refined and enhanced by ChatGPT.