Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 16, 2023

Crypto Market Update

Table of Contents

Market Trends and Analysis

• Bitcoin Price Volatility Amid ETF Rumors
• Optimism Surrounds Grayscale's Bitcoin ETF
• Binance's 25th BNB Token Burn

Legal and Regulatory Updates

• SBF's Fraud Trial and the Collapse of FTX
• Uniswap v4's Controversial KYC Feature
• TrueUSD Security Breach Exposes Customer Data
• Tether's Crackdown on Terrorist Wallets
• Genesis Subpoenaed Over terraUSD Collapse
• Binance Halts UK Customer Onboarding
• Australia's Upcoming Crypto Legislation

Crypto Exchanges and Platforms

• Ferrari Dives into Crypto Payments
• BC Technology Mulls Sale of OSL Exchange
• Solana's Strategic Partnership with DMCC
• Haru Invest's Server Shutdown Controversy
• Kraken's Educational Marketing Campaign
• Upbit Singapore's Regulatory Milestone
• FTX and Coinbase's Staking Strategies

Country-Specific Developments

• Dfinity's Blockchain Solution for Recycling
• Manta Pacific's Transition to Polygon

NFT & Gaming

• BIGTIME Token's Volatile Market Surge

Bitcoin Price Volatility Amid ETF Rumors

Bitcoin's crypto price spiked to $30K due to false rumors of a spot ETF approval, leading to $81M in short positions and $31M in long positions being liquidated. With no urgency to liquidate, the U.S. government's holdings in Bitcoin are a significant factor in crypto coin prices, currently valued at around $5.4B. 

Shark and whale Bitcoin wallets have seen an 8.12% increase since early 2022, as per cryptocurrency charts. Geopolitical tensions and upcoming Fed speeches are adding to market volatility, but aren't expected to significantly impact crypto markets. Ray Dalio warns of a 50% chance of a major global conflict affecting markets.

Optimism Surrounds Grayscale's Bitcoin ETF

GBTC's discount to NAV has dropped to 15.9%, its lowest since December 2021, signaling increased optimism for SEC approval of a spot Bitcoin ETF. The SEC chose not to appeal against Grayscale's proposal to convert its Bitcoin trust into an ETF. Analysts predict a 90% chance of SEC approval by January 10. 

Grayscale is operationally ready for the conversion, and the court will issue its final mandate within seven days. ARK Invest is also a strong contender, having updated its Bitcoin ETF prospectus. BTC price rose to $28,000 following the SEC's decision.

Binance's 25th BNB Token Burn

Binance has completed its 25th quarterly burn of BNB tokens, removing approximately $453 million worth of tokens from circulation. The burn program aims to decrease the supply of BNB and potentially increase its price. However, the BNB token is currently testing a key support level, which could lead to capitulation if broken.

SBF's Fraud Trial and the Collapse of FTX

Sam Bankman-Fried (SBF) is on trial for fraud and conspiracy charges related to the collapse of his crypto exchange, FTX. His defense argues that his ADHD medication, Adderall, is essential for his focus during the trial. Zac Prince, former CEO of BlockFi, testified that BlockFi's bankruptcy was due to FTX and Alameda Research, claiming a loss of $1 billion. 

Nishad Singh, former FTX engineering director, testified about SBF's unilateral financial decisions, including a $1-billion investment in K5 Global. Singh, along with other former FTX executives, pleaded guilty to fraud charges.

Uniswap v4's Controversial KYC Feature

Uniswap v4's new KYC (Know Your Customer) hook is causing a stir in the crypto community. This hook allows for KYC checks before trading in token pools, sparking debates about regulatory whitelisting. Rolled out as an opt-in feature by a community developer, the KYC process uses a nonfungible token (NFT) for verification. 

While some see it as a compliance tool for projects, critics argue it could lead to labeling non-KYC transactions as illegal. The G20 recently accepted a crypto regulatory roadmap, tightening regulations. Uniswap v4, set for early 2024 release, will limit access to governance-approved entities.

TrueUSD Security Breach Exposes Customer Data

Stablecoin issuer TrueUSD has experienced a security breach that exposed the personally identifiable information of some of its customers. The breach involved former service provider TrueCoin, which informed TrueUSD of an account change made by a compromised support vendor. TrueCoin's internal systems were not compromised, and TrueUSD has recommended that customers monitor their accounts for suspicious activity.

Tether's Crackdown on Terrorist Wallets

Tether froze 32 addresses linked to terrorist activities in Israel and Ukraine, involving $873,118 in USDT. The action was in partnership with Israel’s National Bureau for Counter Terror Financing. 

Tether's CEO, Paolo Ardoino, emphasized that crypto transactions are traceable, aiding in blocking funds for terrorism. The company has frozen $835 million in USDT to date, mainly from hacks. Israel seized crypto wallets with millions for Hezbollah. Cybercriminals are shifting from Bitcoin to stablecoins for easier laundering.

Genesis Subpoenaed Over terraUSD Collapse

Crypto lender and trading company Genesis has been ordered by a New York court to comply with a subpoena related to the collapse of the terraUSD stablecoin. The company has allegedly failed to respond to previous requests for information. 

The failure of terraUSD caused shockwaves in the crypto markets, leading to a lawsuit by the Securities and Exchange Commission against Terraform Labs and co-founder Do Kwon for misleading investors.

Binance Halts UK Customer Onboarding

Cryptocurrency exchange Binance will temporarily stop accepting new customers from the UK after its promotions partner, Rebuilding Society, was restricted by the Financial Conduct Authority (FCA) last week. Existing UK users will still have access to current services if they have completed the necessary tests. 

Binance is currently searching for a new FCA-authorised partner in the UK. The FCA's new crypto promotions rules came into effect on 8 October. Failure to comply with these rules could result in a criminal offense.

Australia's Upcoming Crypto Legislation

Australia's Treasury has announced that it plans to release draft legislation covering licensing and custody rules for crypto asset providers by 2024. Once the legislation becomes law, exchanges will have 12 months to transition to the new regime. 

The proposal aims to establish a regulatory framework for the crypto industry in Australia and provide consumer protection. It also suggests that crypto exchanges holding more than AUD 1,500 ($946) of any one client or more than AUD 5 million ($3.15 million) in total assets would require an Australian Financial Services licence.

Ferrari Dives into Crypto Payments

Luxury car brand Ferrari has begun accepting cryptocurrency payments in the US and plans to expand the service to Europe, according to Enrico Galliera, the firm's chief marketing and commercial officer. Ferrari is collaborating with crypto payment processor BitPay and may work with other providers in different regions. 

The payments will be immediately converted into fiat currencies to protect Ferrari from the volatility of cryptocurrencies. Tesla briefly accepted Bitcoin payments in 2021 but suspended the service due to environmental concerns.

BC Technology Mulls Sale of OSL Exchange

Hong Kong-based company BC Technology Group is considering the sale of its crypto exchange OSL for a valuation of HKD 1 billion ($128 million). The company may choose to sell parts of OSL's business rather than the entire entity. 

OSL offers prime brokerage, exchange, and custody of crypto assets, as well as infrastructure for financial institutions to offer digital asset trading. BC Technology has won a crypto license in Hong Kong, under the region's new regulatory regime introduced in June.

Solana's Strategic Partnership with DMCC

Solana Foundation partners with Dubai Multi Commodities Centre (DMCC), a UAE free economic zone, to offer tech and business support to DMCC Crypto Centre members. Solana's existing partners gain special treatment in DMCC. 

The partnership aims to elevate blockchain education and business opportunities. As of September 2023, Solana ranks 10th globally with $359 million in total value locked. DMCC's ecosystem also includes Bybit, DWF Labs, and 23,000 other companies.

Haru Invest's Server Shutdown Controversy

Haru Invest, a crypto yield platform, plans to suspend its server to cut maintenance costs, which make up a significant portion of its fixed expenses. CEO Hugo Lee announced the move but hasn't confirmed a definite plan. 

The decision follows the company's suspension of withdrawals in June 2023 and has sparked community discontent. Critics question the actual cost of server maintenance, citing industry averages. The firm is also facing a class-action lawsuit and accusations of fraudulent activities.

Kraken's Educational Marketing Campaign

Cryptocurrency trading platform Kraken is launching its largest marketing campaign to promote the transformative aspects of crypto, rather than focusing on get-rich-quick messaging. 

The campaign aims to educate people about digital assets and will initially launch in the US and UK before expanding globally next year. Kraken hopes to capitalise on recent growth and distinguish itself from rivals like Binance and Coinbase, which have faced regulatory challenges in the US.

Upbit Singapore's Regulatory Milestone

South Korean cryptocurrency exchange Upbit's Singapore entity has received in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) to offer regulated digital payment token services. 

This approval reflects the exchange's commitment to building trusted digital asset businesses in Singapore and contributing to the country's position as a leading hub for financial businesses. Upbit Singapore was established in 2018 and received exempt status from holding a license under the Payments Services Act in 2020.

FTX and Coinbase's Staking Strategies

FTX liquidators have actively staked a hefty $150 million in Ethereum and Solana tokens, utilizing Figment as their staking service provider. On the flip side, Coinbase reveals a cooling interest in Ether staking. For the first time since the Shanghai upgrade in May, the Ethereum blockchain validator queue has emptied out, signaling a leveling off in investor demand for Ether staking.

Dfinity's Blockchain Solution for Recycling

The Dfinity Foundation, a contributor to the Internet Computer blockchain, is working with consultancy firm Roland Berger to develop a global standard for incentivizing recycling activities. 

The initiative, known as Voluntary Recycling Credits (VRC), aims to address the low recycling rates for global plastic waste and will use blockchain technology to create a transparent, auditable, and secure record of recycling credits and transactions. Dfinity will build a product on the Internet Computer for buying, selling, and trading recycling credits.

Manta Pacific's Transition to Polygon

Manta Pacific, a Layer 2 blockchain within the Manta Network, is moving from Optimism's OP Stack to Polygon's Chain Development Kit (CDK) in order to become a zkEVM validium. The transition will allow for faster finality, enhanced security, and interoperability with Ethereum. Manta Pacific aims to simplify ZK dapp development and plans to integrate Celestia's data availability layer to reduce transaction fees.

Top Altcoin Gainers and Losers

Gainers:

Bitcoin SV BSV (+14.36%)

Rollbit Coin RLB (+11.85%)

Bitcoin Cash BCH (+6.91%)

Losers:

Loom Network LOOM (-22.90%)

Trust Wallet Token TWT (-4.32%)

Rocket Pool RPL (-2.45%)

NFT Market Map

BIGTIME Token's Volatile Market Surge

The native token of blockchain-based game Big Time, BIGTIME, has surged 250% in just five days. However, analysts remain skeptical as the token's market performance may be short-lived, and the game is becoming inaccessible to new players due to the rising prices of non-fungible tokens (NFTs) needed to collect BIGTIME. 

The token's fully diluted value relative to its market cap is also quite high, suggesting a potential supply inflation and sell-side pressure.

This article has been refined and enhanced by ChatGPT.