Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 31, 2023
Crypto Market Update
Written by Van
Table of Contents:
Regulatory and Legal Developments
- China's Crackdown on Cryptocurrency: Trust Reserve Arrested
- Regulatory Woes Force Bybit's Exit from Canada
- Insider Trading Charges Settled by Former Coinbase Manager
- FTX Spends $100 Million on Legal Fees amid Bankruptcy
Crypto Exchanges and Workforce Changes
- Binance Lays Off Employees, Focuses on Business Restructuring
- Paxful Announces Roshan Dharia as Interim CEO
- Crypto Bear Market Forces Nansen to Reduce Workforce
Market Trends and Asset Movements
- Ether Transactions Raise Money Laundering Suspicions
- Bitcoin Faces Pressure Amid Economic Fluctuations
- Optimism Token Suffers Due to Significant Unlock
Funding Rounds and Startups
- MoonPay Raises $555 Million, Founder Allegedly Profits
- Magic Secures $52 Million Funding Led by PayPal Ventures
Blockchain Infrastructure and Partnerships
- Deutsche Telekom Joins as Validator on Polygon's Network
- XDC Network Partners with SBI VC Trade for Japan's Finance Market
- Mercedes-Benz Collaborates on NFT Collection with Fingerprints DAO
- Japanese Airline ANA Enters NFT Marketplace
Legislative Wins for Cryptocurrency
- Texas Advocates Celebrate Victory with Pro-Bitcoin Legislation
China's Crackdown on Cryptocurrency: Trust Reserve Arrested
Law enforcement in China has reportedly arrested the team behind Trust Reserve, the issuer of a Yuan-backed stablecoin and a Hong Kong Dollar-backed token. The arrest followed rumors of Multichain's team being arrested, and the news comes as Hong Kong and Beijing take different approaches to cryptocurrency regulation. Hong Kong is working on establishing a crypto ecosystem and collaborating with the UAE, while Beijing remains cautious about digital assets.
Regulatory Woes Force Bybit's Exit from Canada
Cryptocurrency exchange Bybit is leaving the Canadian market due to regulatory developments. This follows the trend of exchanges like Binance exiting Canada. Bybit's decision highlights the challenges faced by crypto platforms operating in the country. The stricter regulations require platforms to obtain approval and conduct due diligence checks. While Coinbase remains committed to Canada, the diverse strategies of exchanges reflect the industry's perspectives on regulatory challenges.
Insider Trading Charges Settled by Former Coinbase Manager
Former Coinbase product manager Ishan Wahi and his brother settled insider trading charges with the U.S. SEC. They agreed to disgorge gains and pay interest. Both pleaded guilty to related criminal charges. The settlement ends a court case questioning whether nine cryptocurrencies were securities. The SEC argues most cryptocurrencies are securities, while the industry disagrees and wants clearer guidance. The SEC did not charge the issuers or Coinbase with violations tied to the tokens in question.
FTX Spends $100 Million on Legal Fees amid Bankruptcy
FTX has paid over $100 million to lawyers and consultants in its bankruptcy case, with Sullivan & Cromwell being the highest earner. The company also reported $105 million in earnings from token sales and holds $2.03 billion in banks. FTX has 107 employees, down from 320.
Binance Lays Off Employees, Focuses on Business Restructuring
Crypto exchange Binance has laid off underperforming employees and those not fitting the company culture. The company is reviewing its top staff and evaluating which products and business segments to prioritize. The exchange plans to continue hiring despite the reported layoffs, aiming to fill hundreds of open roles. The CEO had previously mentioned plans to double the headcount in 2022 and increase staff by 15% to 30% in 2023.
Binance is reportedly considering allowing institutional clients to secure their collateral outside the exchange to reduce counterparty risk. It is in talks with potential intermediaries but no final arrangement has been reached. The move comes amidst regulatory crackdown and after FTX's collapse last year.
Paxful Announces Roshan Dharia as Interim CEO
P2P bitcoin marketplace Paxful has appointed Roshan Dharia as interim CEO, tasked with improving operations and exploring strategic options. Former CEO Ray Youssef criticised the appointment on Twitter. Youssef recently stepped down from the role after a disagreement with co-founder Artur Schaback.
Crypto Bear Market Forces Nansen to Reduce Workforce
Blockchain analytics platform Nansen is reducing its workforce by 30% due to an aggressive hiring phase and the prolonged bear market in crypto. Severance packages will be provided. Crypto industry layoffs have slowed but continue to occur. Other crypto firms, including Coinbase, Kraken and ConsenSys, have also carried out layoffs.
Ether Transactions Raise Money Laundering Suspicions
Social media influencers are asking for Ether (ETH) in exchange for nothing, sparking theories of money laundering. One wallet address called “yougetnothing.eth” has received more than $1 million worth of ETH in 24 hours. The trend has received negative feedback from the community, with some suggesting it could be a money laundering attempt. Former SEC chief John Reed Stark has warned influencers who manipulate crypto prices will eventually face penalties.
Bitcoin Faces Pressure Amid Economic Fluctuations
Bitcoin faces selling pressure as Federal Reserve Bank of Cleveland President Loretta Mester supports ongoing liquidity tightening. Weak Chinese data and a potential debt ceiling deal also impact risk assets. However, Bitcoin is in a transition phase towards a state of equilibrium before the next bull market top, according to Glassnode's latest on-chain metrics tool. Long-term holders are preparing for better times ahead, with the tool tracking sentiment among those holding BTC for at least 155 days. Bitcoin remains in a narrow range, having acted within a $5,000 corridor for almost three months.
Optimism Token Suffers Due to Significant Unlock
The cryptocurrency Optimism (OP) has experienced a bearish trend due to a significant token unlock, leading to selling pressure. The recent $600 million token unlock caused a 20% drop in OP's value, with another unlock of $32.9 million expected in June. OP's price has fallen to $1.37, a 50% decline from its 2023 highs. A further drop below $1.3 could occur, resulting in a 10% decrease.
MoonPay Raises $555 Million, Founder Allegedly Profits
Crypto payment startup MoonPay raised $555 million at a $3.4 billion valuation in its Series A round. However, $150 million was alledgely used to buy shares from existing shareholders, including co-founder and CEO Ivan Soto-Wright. MoonPay confirmed the secondary sales but declined to comment on the matter. Soto-Wright purchased a $38m mansion in Miami weeks after the round.
Magic Secures $52 Million Funding Led by PayPal Ventures
San Francisco-based wallet-as-a-service provider Magic has raised $52 million in a funding round led by PayPal Ventures, bringing their total funds raised to over $80 million. Magic's software is used by brands in various industries, and with the funding, they aim to increase adoption and expand functionality in the European Union and Asia-Pacific region.
Their software development kit enables users to create wallets using different logins and offers features like authentication, fiat on-ramps, NFT minting, and checkout. The company is compliant with various regulations and has generated over 20 million unique wallets to date.
Deutsche Telekom Joins as Validator on Polygon's Network
Deutsche Telekom will become a validator on Polygon's infrastructure, strengthening Ethereum's Layer 2 network. The partnership aims to enhance network security and decentralization. Additionally, Polygon's Zk EVM network achieved a milestone in transaction volume, and liquidity protocols Gamma and Clober have boosted liquidity on the network.
XDC Network Partners with SBI VC Trade for Japan's Finance Market
XDC Network's strategic partnership with SBI VC Trade aims to enhance trade finance efficiency in Japan. XDC is the digital asset that powers XinFin's Hybrid Architecture, which facilitates seamless transactions and positions XDC as a leading global player in the blockchain industry. The Japanese finance trade sector is strategic to the expansion of the XCD ecosystem.
Mercedes-Benz Collaborates on NFT Collection with Fingerprints DAO
Digital art organization Fingerprints DAO is collaborating with artist Harm van den Dorpel and Mercedes-Benz to release a generative art NFT collection called "Maschine." The collection features 1,000 unique tokens and explores themes of velocity and perception.
Mercedes-Benz NXT plans to release three core collections and peripheral projects within its NFT ecosystem. The collaboration aims to bridge the gap between digital and traditional art and highlight the possibilities of Web3 technologies. The sale opens as a Dutch auction on June 7.
Japanese Airline ANA Enters NFT Marketplace
Japanese airline All Nippon Airways (ANA) has launched an NFT marketplace, ANA GranWhale, in collaboration with its subsidiary ANA Neo. The platform will feature collections by aerial photographer Luke Ozawa and will expand with more NFT products. ANA aims to enhance the customer experience and explore the intersection of airlines and Web3.
Texas Advocates Celebrate Victory with Pro-Bitcoin Legislation
Bitcoin policy advocates in Texas celebrated victories with the passage of pro-mining bill SB 1929 and defeat of anti-mining bill SB 1751. The legislation supports Bitcoin mining operations, enhances grid reliability, reduces emissions, and establishes a proof-of-reserves regime. Public miner stocks surged, and the community remains optimistic for future growth in the industry and favorable Bitcoin-related policies in the US.
Top Altcoin Gainers and Losers
Quant QNT (+12.98%)
XDC Network XDC (+10.78%)
The Graph GRT (+10.13%)
Pepe PEPE (-23.24%)
Optimism OP (-18.63%)
Fantom FTM (-14.13%)
NFT Market Map
Sotheby's will auction off 37 "Grails" NFTs previously owned by the crypto hedge fund 3AC, expecting to generate over $5 million. The auction features NFTs from well-known generative artists and follows a previous sale of seven "Grails" works for $2.5 million.
This article has been refined and enhanced by ChatGPT.