Coin360 Daily Dispatch | Crypto Market Updates & Highlights | November 15, 2023
Crypto Market Update
Table of Contents
Market Dynamics and Investments
- Randstorm Vulnerability Threatens Crypto Wallets
- US PPI Drop Affects Bitcoin's Struggle at $37,000
- BlackRock's Falsely Linked 'iShares XRP Trust' Causes Stir
- Ethereum's Value Peaks Amid Whale Activity and Fraud Concerns
Exchange and Platform Updates
- Blockchain.com's Growth Despite Valuation Dip
- Poloniex Restarts Services Post $100M Hack
- PancakeSwap's Gaming Marketplace Boosts Web3 Games
- Hex Trust Receives Crypto Custody License in Dubai
- OKX Partners with Komainu for Secure Asset Trading
Regulatory and Institutional Developments
- Crypto Market Welcomes Net Capital Inflow After 17 Months
- Boyaa Interactive Invests $100M in Cryptocurrencies
- MAS Initiates Project Guardian for Asset Tokenization
- Binance Japan to Expand Token Listings
- Kazakhstan Debuts Digital Tenge, Impacts Crypto Access
- Commerzbank Acquires Crypto Custody License in Germany
- Vitalik Buterin's Plasma Endorsement Lifts OMG Network
- DYDX Token's Pre-Unlock Surge Amidst Inflation Concerns
- LayerZero Labs' Innovative ColorTrace and wstETH Features
- Tech Giants Decentralize Ethereum's Infura Network
Stablecoin and DeFi Sector
- Circle Ventures Invests in Sei to Boost USDC Ecosystem
- Nexo Launches User-Friendly Futures Trading Platform
- Aave Tackles Code Vulnerability Across DeFi Space
Individual Cryptocurrency Performance
- Solana's Surge Fueled by Institutional Interest
Digital Collectibles and NFTs
- NHL's Digital "Collectibles" Avoid NFT Label
- Mutant Ape Planet Founder Admits to NFT Fraud
- NFT Market Witnesses Surprising Trading Volume Surge
- OpenSea Users Targeted in Phishing Scam
Randstorm Vulnerability Threatens Crypto Wallets
A cybersecurity firm, Unciphered, identified a vulnerability named "Randstorm" impacting crypto wallets generated via web browsers between 2011 and 2015. This issue, affecting Bitcoin and other cryptocurrencies, poses a potential risk to $2.1 billion in assets. Users are advised to transfer funds to more recently generated wallets. The vulnerability is considered exploitable, prompting the need for caution.
US PPI Drop Affects Bitcoin's Struggle at $37,000
In October, the US Producer Price Index (PPI) dropped 0.5% monthly, marking a 1.3% year-on-year rise. Bitcoin struggled to break $37,000 due to softer US inflation, China's economic challenges, and regulatory uncertainties, leading to a $121 million liquidation in futures contracts. However, Glassnode co-founders predict a bullish turn for Bitcoin and altcoins, influenced by upcoming US CPI data.
BlackRock's Falsely Linked 'iShares XRP Trust' Causes Stir
A fake "iShares XRP Trust" fund filing emerged, misleadingly associated with BlackRock Inc. and listed on the Delaware government website. This hoax, mirroring a legitimate BlackRock filing for an Ethereum Trust, led to a 15% surge in XRP prices, which later dropped. BlackRock News denied the filing, and Bloomberg's Eric Balchunas confirmed its falsity.
The Delaware Secretary of State reported the incident to the DOJ. In a related development, an XRP influencer criticized those behind this misinformation, noting the temporary price impact and expressing hope for their capture and punishment.
Ethereum's Value Peaks Amid Whale Activity and Fraud Concerns
Nocturne v1 launched private accounts on Ethereum, enhancing transaction privacy. Meanwhile, investigations revealed Ethereum's substantial ties to Chinese investors, raising concerns about network independence and ethical standards.
Blockchain.com's Growth Despite Valuation Dip
Blockchain.com recently secured $110M in Series E funding, led by Kingsway Capital, lowering its valuation from $14 billion to less than half. Despite market volatility, the platform continues to grow, boasting 37 million users and facilitating over $1 trillion in transactions, highlighting its significance in the crypto sector.
Poloniex Restarts Services Post $100M Hack
Poloniex has resumed deposit and withdrawal services after a $100 million hack, engaging a top-tier security firm to enhance security. The platform is yet to disclose a reimbursement plan for affected users. Justin Sun confirmed the firm's healthy financial position and intention to fully reimburse affected funds.
PancakeSwap's Gaming Marketplace Boosts Web3 Games
PancakeSwap has launched a gaming marketplace allowing developers to create games with web3 elements. It will support nine blockchains, and already features two games, Pancake Protectors and Pancake Mayor, attracting over 25,000 daily users. The exchange holds nearly 15% of the DEX market share and generated $5.97 billion in spot trading volume in October.
Hex Trust Receives Crypto Custody License in Dubai
Hex Trust obtained a full Virtual Asset Service Provider license in Dubai, enabling it to offer crypto custodial services to institutional clients and sophisticated investors. The company aims to expand its global presence and sees significant potential for digital asset growth in the Middle East.
OKX Partners with Komainu for Secure Asset Trading
OKX collaborates with Komainu and CoinShares to offer segregated asset trading, aiming to mitigate counterparty risks and attract institutional adoption of digital assets. Partners provide secure custody and address legal and regulatory concerns, reinforcing trust for institutional traders. This partnership emphasizes the importance of compliance and management of assets for institutional investors.
Crypto Market Welcomes Net Capital Inflow After 17 Months
For the first time in 17 months, the crypto market sees a net capital inflow as the supply of top stablecoins has turned positive, indicating increased liquidity and potential buying pressure. This is driven by bitcoin doubling in value and expectations for the approval of a bitcoin-based ETF.
Boyaa Interactive Invests $100M in Cryptocurrencies
Boyaa Interactive, a Hong Kong-listed gaming company, plans to acquire $100 million in cryptocurrencies (BTC, ETH, USDT, and USDC) to boost its Web3 strategy. This move underscores Hong Kong's emergence as a digital asset hub, supported by the government's efforts to facilitate virtual asset transactions.
MAS Initiates Project Guardian for Asset Tokenization
The Monetary Authority of Singapore (MAS) has launched Project Guardian with 17 institutions to advance asset tokenization. Five pilots explore digital asset trades and cross-border solutions. MAS is developing GL1 and INM for seamless global trading of tokenized assets, collaborating internationally.
Binance Japan to Expand Token Listings
Binance Japan plans to list 13 new tokens, including Near and Optimism, bringing its total listings to 47, the most in Japan. The tokens are scheduled for listing on Nov. 27 and are classified as eligible for a simplified assessment process by the Japan Virtual and Crypto Assets Exchange Association.
Kazakhstan Debuts Digital Tenge, Impacts Crypto Access
Kazakhstan launches digital tenge, conducting its first CBDC transaction in Almaty. The digital currency is accessible globally, interoperable with Visa and Mastercard, and designed for smart contracts and international trade by 2025. Kazakhstan's rapid CBDC implementation has affected access to foreign crypto exchanges and prompted appeals from crypto miners regarding tax rates.
Commerzbank Acquires Crypto Custody License in Germany
Commerzbank has obtained a crypto custody license in Germany, becoming the country's first full-service bank to do so. This milestone emphasizes the bank's commitment to digital assets, aligning with the growing momentum of the crypto landscape in Germany.
DYDX Token's Pre-Unlock Surge Amidst Inflation Concerns
DYDX token surged 20% ahead of a $500 million unlock; its recent move to a Cosmos-based layer-1 blockchain enables revenue rewards for validators. However, concerns over inflation, as well as incentives for staking, have arisen as the company prepares for a significant token unlock in just over two weeks.
LayerZero Labs' Innovative ColorTrace and wstETH Features
LayerZero Labs launched ColorTrace, simplifying onchain token attribution, offering solutions for single-chain coloring, cross-chain transfers, and maintaining token value consistency. Additionally, LayerZero introduced wstETH cross-chain transfers, improving accessibility. The company raised $120 million in a Series B funding, tripled its valuation to $3 billion.
Tech Giants Decentralize Ethereum's Infura Network
Tech giants like Microsoft and Tencent have joined Consensys to decentralize the Infura network, a vital access point for Ethereum in the DeFi sector. The move aims to prevent outages in Web3 services, including MetaMask, enhancing hosting solutions for DApps. Scheduled for Q4, the decentralized network will offer failover support and increase censorship resistance.
Circle Ventures Invests in Sei to Boost USDC Ecosystem
Circle Ventures, the venture arm of stablecoin issuer Circle, has made an undisclosed investment in Sei to expand the USDC ecosystem. The investment aims to integrate USDC stablecoin onto Sei for efficient global transactions and enhance digital asset market liquidity. This move aligns with Circle's efforts to strengthen the USDC ecosystem through strategic partnerships and technological improvements.
Nexo Launches User-Friendly Futures Trading Platform
Nexo has launched a user-friendly Futures Trading platform to simplify futures trading for crypto beginners. The platform includes interactive learning and quizzes, offers up to 50x leverage, low fees, and over 70 assets.
Futures trading involves making contracts to buy or sell crypto at a predetermined future date and price, making it a way to engage in crypto without owning the actual coins but requires an understanding of market trends and can be riskier than conventional crypto holding.
Aave Tackles Code Vulnerability Across DeFi Space
Aave identified a vulnerability in its code, leading to asset freezes and market interventions. Multiple Aave forks were contacted for protection advice, with major forks like Spark and Radiant collaborating closely. Aave's proactive approach aims to prevent exploits and maintain trust in the DeFi space.
Solana's Surge Fueled by Institutional Interest
Solana's SOL surged 20% to over $63 at one point, with trading volumes exceeding $3.5 billion. Optimism rose post-Sam Bankman-Fried's trial, despite FTX's potential sale of SOL tokens. Institutional investment increased, evidenced by Grayscale's SOL Trust premium. ARK Invest's Cathie Wood suggested Solana's technical superiority over Ethereum.
NHL's Digital "Collectibles" Avoid NFT Label
The NHL has joined companies like Disney and Dapper Labs in avoiding the term "NFT" for its digital assets, instead labeling them as "collectibles". The NHL Breakaway platform allows fans to trade, display, and collect digital hockey highlights. The league previously partnered with Upper Deck for a similar venture. Other sports leagues like the NBA, MLB, and NFL are also exploring digital collectibles.
Mutant Ape Planet Founder Admits to NFT Fraud
Aurelien Michel, founder of Mutant Ape Planet NFT, pleaded guilty to wire fraud, facing up to five years in prison and $1.4M in forfeiture. Accused of orchestrating a rug pull, he admitted to defrauding NFT holders, with potential involvement in other rug pull scams.
NFT Market Witnesses Surprising Trading Volume Surge
The NFT market saw a significant surge, reaching a four-month high in trading volumes as of November 10. This upswing contradicts earlier media claims of NFTs being worthless. Popular collections, notably Cryptopunks, experienced notable gains, with a rare punk sold for $1.1M by Yuga Labs co-founder Wylie Aronow.
This rise is partly attributed to the NFT community's proactive stance and the influence of media portrayals. However, the spike in activity largely stemmed from airdrop farmers driven by the Blur marketplace's airdrop campaign, which offered BLUR tokens to active participants.
Despite this, the overall number of NFT traders remains low, suggesting a lack of new entrants into the market.
OpenSea Users Targeted in Phishing Scam
OpenSea users have reported a widespread email phishing campaign targeting both users and developers, including fake NFT offers and developer API risk alerts. The attack follows a previous security incident, and users are advised to exercise caution regarding email authenticity and avoid clicking on suspicious links.
This article has been refined and enhanced by ChatGPT.