Coin360 Daily Dispatch | Crypto Market Updates & Highlights | November 1, 2023
Crypto Market Update
Table of Contents
Market Trends and Predictions
- Bitcoin's ETF-Driven Surge and Whales' Mixed Signals
- Ethereum's Complex Landscape: Growth, Layer 2s, and Vitalik's Move
Regulatory and Legal Updates
- SEC Targets SafeMoon in Latest Crypto Lawsuit
- Binance Cuts Ties with Advcash Amid Russian Exit
- PayPal's Limited UK Crypto License
- Record-Breaking Tips to CFTC's Whistleblower Program
- Closing Arguments in SBF's Fraud Trial
- Oyster Protocol Founder Sentenced for Tax Evasion
Security and Vulnerabilities
- Onyx Protocol's $2.1M Security Breach
- Frax Finance Recovers from Domain Hijacking
- Taiwan Police Seize $324M in Crypto Laundering Case
Exchanges and Trading Platforms
- World App's Success and Privacy Concerns
- Coinbase Dives into Crypto Futures Trading
- Hashflow Introduces Trading Fees and Redistribution
- Token Unlocks in Aptos, Avalanche, and Hashflow
Banking and Corporate Involvement
- HSBC and Ant Group Test Tokenized Deposits
- MakerDAO's $250M Move to Protect DAI's Peg
Stablecoins and DeFi
- Aave's Struggle to Stabilize GHO Stablecoin
Privacy and Data Security
- Nym and NEAR Team Up for Enhanced Privacy
- WalletConnect Complies with US Sanctions on Russia
NFT and Community Updates
- October's NFT Market Trends and Upcoming Events
- Adidas and Bugatti's Web3 Soccer Shoe Auction
Bitcoin's ETF-Driven Surge and Whales' Mixed Signals
In October, Bitcoin saw a 28% uptick, hitting a 17-month high of $35,000, largely fueled by ETF enthusiasm. On the flip side, the Invesco Galaxy Spot Bitcoin ETF's listing on the DTCC website hints at broader financial acceptance and a less grim regulatory future.
Market experts predict a 90% chance of ETF approval by January 10, 2024, which could catapult Bitcoin to $150,000. Meanwhile, Bitcoin whales are showing mixed behavior; some are selling, signaling a possible price correction, while others have accumulated over $600 million in BTC within a week.
Ethereum's Complex Landscape: Growth, Layer 2s, and Vitalik's Move
Fund managers are eyeing Ether for its promising growth, with nearly 45% favoring it over Bitcoin, despite a recent $10 million fund outflow, according to a CoinShares survey. Meanwhile, Ethereum's mainnet is reclaiming its mojo, as Layer 2s see a 32% drop in transaction speed.
Adding a twist to the tale, Ethereum co-founder Vitalik Buterin transferred 100 ETH, worth $181,000, to Coinbase, sparking speculation about his next move. These developments collectively sketch a complex yet fascinating narrative for Ethereum's current standing and future prospects.
SEC Targets SafeMoon in Latest Crypto Lawsuit
The Securities and Exchange Commission (SEC) has filed a lawsuit against SafeMoon and its top officials, accusing them of perpetrating a massive fraudulent scheme through the unregistered sale of the crypto asset security.
The SEC alleges that SafeMoon falsely assured investors that the token would be locked in the liquidity pool, but large portions of the pool were never locked. The officials are also accused of misappropriating funds for personal purchases and manipulating the market. The SEC has been cracking down on crypto companies recently, but has faced pushback from the courts in some cases.
Binance Cuts Ties with Advcash Amid Russian Exit
Cryptocurrency exchange Binance plans to end its partnership with Belize-based payments firm Advcash, which was used to move funds between sanctioned Russian banks and the exchange. The move comes after Binance announced its exit from Russia due to legal scrutiny. Advcash denies facilitating the movement of funds between sanctioned banks and Binance.
PayPal's Limited UK Crypto License
PayPal has secured a license from the UK's Financial Conduct Authority (FCA) to offer specific crypto services as of October 31, 2023. However, the license comes with restrictions, including a halt on onboarding new customers and limiting existing ones to hold and sell functions.
The company can't expand its crypto offerings, such as staking or DeFi activities. This move follows PayPal's temporary suspension of crypto purchases for UK users in early October. The UK is emerging as a significant player in the crypto market, with London named the world's most crypto-ready city.
Record-Breaking Tips to CFTC's Whistleblower Program
Whistleblowers have submitted a record-breaking 1,530 tips to the Commodity Futures Trading Commission (CFTC) in 2023, with the majority of these tips relating to cryptocurrency. Tips involved allegations of pump-and-dump schemes, false representations of money-making opportunities, and refusal to honor withdrawal requests.
CFTC Commissioner Christy Goldsmith Romero highlighted the importance of the agency's Whistleblower Program in combating fraud and protecting customers. The CFTC has awarded $16 million to whistleblowers in the past fiscal year.
Closing Arguments in SBF's Fraud Trial
The prosecution in Sam "SBF" Bankman-Fried's trial has wrapped up its closing arguments, accusing the former FTX CEO of fraud and conspiracy. He faces up to 115 years in prison if convicted. Meanwhile, millions of dollars in crypto assets have been moved from FTX and Alameda wallets amid the ongoing court proceedings.
The defense argues that Bankman-Fried made "terrible mistakes" in good faith, while the prosecution presented extensive evidence, including nearly 20 witnesses who claim he deceived investors and commingled funds.
Oyster Protocol Founder Sentenced for Tax Evasion
Amir Bruno Elmaani, the founder of Oyster Protocol, has been sentenced to four years in prison for tax evasion. Elmaani admitted to secretly minting and selling tokens while not paying income tax on the profits, causing tax losses of over $5.5 million. He also made extravagant purchases, but reported zero income to the tax authorities. He has been ordered to pay $5.5 million in restitution.
Onyx Protocol's $2.1M Security Breach
Onyx, a decentralized finance protocol, was hit by a security breach resulting in a loss of over $2.1 million. The attacker exploited a "precision loss" vulnerability in Onyx's code. The scheme involved a flash loan of ETH, swapped for PEPE, to manipulate exchange rates.
This flaw traces back to an older version of Compound V2 that Onyx uses. The attacker has laundered 700 ETH ($1.25 million) through Tornado Cash. The exploit mirrors a similar attack on Hundred Finance last year.
Frax Finance Recovers from Domain Hijacking
Frax Finance's domain was briefly hijacked, but the team has regained control with assistance from their domain registrar. DNS hijacking, where users are redirected to a malicious site, is becoming more common in the crypto space. No user funds were stolen in this incident. The team is awaiting a full investigation from their domain registrar to determine what happened.
Taiwan Police Seize $324M in Crypto Laundering Case
Taiwan police have dismantled a money laundering group involved in a major crypto-related case, seizing $324.2 million USDT. The group allegedly instructed victims to transfer funds to dummy accounts, then channeled the illicit funds to overseas crypto exchanges or traders. One suspect has been arrested, along with three others, and several pieces of evidence, including luxury vehicles and drugs, have been seized.
World App's Success and Privacy Concerns
Worldcoin's mobile World App has been downloaded over 4 million times, making it potentially one of the top software wallets. The project also claims to have over 1 million monthly users, double the number from six months ago. However, concerns about privacy have led to criticism and an order to stop operating in Kenya.
Coinbase Dives into Crypto Futures Trading
Coinbase Financial Markets has launched crypto futures trading for eligible US traders, allowing them to trade futures contracts for bitcoin and ether. The contracts are designed with retail traders in mind and offer lower upfront capital requirements. The move is seen as a way for Coinbase to supplement declining spot trading volumes and build additional revenue streams.
However, the launch comes as the company remains embroiled in a legal battle with the US Securities and Exchange Commission over allegations of operating as an unregistered exchange.
Hashflow Introduces Trading Fees and Redistribution
Multi-chain decentralized exchange (DEX) Hashflow has introduced trading fees on its platform, with 50% of the fees being redistributed to users staking its native HFT token. The remaining 30% will go to the community treasury for HFT buy-backs, and 20% will be used to cover operating expenses. The move comes after Uniswap Labs began collecting fees on trades executed through its front-end interface, causing UNI token prices to drop.
Token Unlocks in Aptos, Avalanche, and Hashflow
In November, crypto projects Aptos, Avalanche, and Hashflow are set to unlock a combined value of over $450 million in tokens. Aptos leads with a $172.9 million unlock, followed by Avalanche at $106.9 million, and Hashflow with $41.3 million. The tokens will be distributed among core contributors, investors, and community members. Market reactions to previous unlocks have been mixed, with Aptos and Avalanche seeing price increases, while Hashflow experienced a decline.
HSBC and Ant Group Test Tokenized Deposits
HSBC and Ant Group have tested tokenized deposits in a sandbox arranged by the Hong Kong Monetary Authority. The test involved the issuance, transfer, and redemption of deposit tokens on a blockchain platform. HSBC aims to explore the potential of blockchain and tokenization in corporate treasury management. They are also involved in central bank digital currency initiatives.
MakerDAO's $250M Move to Protect DAI's Peg
MakerDAO had to use half of its $500 million Coinbase Custody account to protect the peg of its stablecoin DAI after a series of liquidations. The company transferred $250 million into DAI's peg stability module to maintain the reserve.
The incident highlighted the permissioned process used by MakerDAO to refill its reserves. If the reserves run out, DAI's price could deviate from its dollar peg. Efforts are being made to automate the process using smart contracts.
Aave's Struggle to Stabilize GHO Stablecoin
Aave's GHO stablecoin has consistently traded below its $1 peg since its launch in July. Aave's Liquidity Committee plans to use actively managed liquidity on Maverick Protocol and other DeFi platforms to bring GHO back to its peg. The committee will leverage Maverick's static pools to enforce buy/sell walls and gradually move GHO towards its peg.
The lack of flexibility in GHO's interest rate and the absence of good yield options have contributed to its struggle to maintain its peg. Aave governance is considering adding wGHO as collateral and providing a staking option to incentivize users to hold GHO and stabilize it at $1.
Nym and NEAR Team Up for Enhanced Privacy
Nym Technologies and the NEAR Foundation have partnered to enhance privacy and encryption in the NEAR ecosystem. Nym's mixnet privacy infrastructure will be integrated into the NEAR blockchain to protect user data and transactions from cyber threats.
The collaboration aims to enable users to interact with NFTs, DeFi protocols, and dApps in a private manner. The Nym mixnet encrypts and conceals traffic across the NEAR ecosystem to ensure transactional data and personal information are secure. The partnership reflects a shared vision for privacy in the web3 space.
WalletConnect Complies with US Sanctions on Russia
WalletConnect has restricted access to its product in Russia due to the sanctions guidelines imposed by the US Treasury's Office of Foreign Assets Control (OFAC). The move is in response to OFAC's expectations that virtual currency operators should be responsible for avoiding sanctions violations.
The company also clarified that it had temporarily restricted access for Ukraine IP addresses that were impacted by sanctions but had not blocked any other non-sanctioned countries.
Top Altcoin Gainers and Losers
Gainers:
Rollbit Coin RLB (+17.06%)
Solana SOL (+15.18%)
NEAR Protocol NEAR (+14.29%)
Losers:
BitTorrent New BTT (-4.99%)
Radix XRD (-4.01%)
Maker MKR (-3.55%)
NFT Market Map
October's NFT Market Trends and Upcoming Events
As per Forkast, October was a significant month for non-fungible tokens (NFTs), with over $300 million in sales. Although total transactions slowed down, it still resulted in a nine-week high for global NFT sales. However, trade profits remained largely negative. SoFi platforms faced struggles, with declining total value locked (TVL) and accusations of mishandling funds.
Wash sales reached a 15-week high of $58 million. NFT parties, such as Nightmare Run and Ape Fest 2023, are set to take place this week. Notable NFT collections include Bored Ape Yacht Club, The Captainz, AOIEngine, and CryptoPunks. Ethereum NFTs had a majority of wash sales. Solana and Bitcoin also had notable NFT sales.
Adidas and Bugatti's Web3 Soccer Shoe Auction
Adidas and Bugatti are collaborating to auction off a limited number of soccer shoes inspired by Bugatti's car design. The shoes will come with a digital twin and will be listed for sale on Adidas' web3 platform. Bids can be placed using MoonPay and the auction will take place between November 8 and 11.
This article has been refined and enhanced by ChatGPT.
