Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 17, 2023

Crypto Market Update

Table of Contents

Exchange and Platform Updates

• Binance.US Changes USD Withdrawal Terms
• Scroll Launches Ethereum's Layer 2 Main Network
• Coinbase Cuts 80 Non-USD Trading Pairs
• BNB Chain Debuts Greenfield Storage Network
• Roblox Incorporates XRP for In-Game Buys
• Immutable Postpones IMX Token Vesting
• Forj Unveils ApeCoin's Ape Accelerator
• Fantom Foundation Wallets Compromised

Regulatory and Legal Developments

• Israel Targets Binance Accounts Linked to Hamas
• Lido Finance Ends SOL Token Staking Requests
• SEC Steps Back from Grayscale's Bitcoin ETF Battle
• FTX Proposes Settlement for Asset Disputes

Market Trends and Price Analysis

• Bitcoin Hovers at Key $28K Support Level
• Bitcoin Tops Weekly Crypto Fund Inflows
• Everscale Token Takes 20% Hit After Theft

Decentralized Finance (DeFi) and NFTs

• Platypus Finance Recovers Most Breached Assets
• Uniswap Introduces Controversial Swap Fee
• OMA3 Forms NFT Royalty Protection Group
• NFT Empowers Global Freezing Order

Binance.US Changes USD Withdrawal Terms

Binance.US has updated its terms, discontinuing direct USD withdrawals. Users can now convert USD to stablecoins or other digital assets for withdrawal. The platform reiterated that digital assets aren't FDIC-insured. This follows a trend of Binance.US facing challenges with its fiat on-ramps and off-ramps, including a temporary suspension of USD deposits earlier this year.

Scroll Launches Ethereum's Layer 2 Main Network

Scroll, a layer 2 solution for Ethereum, has launched its main network to enable cheaper and faster transactions on the blockchain. The network uses zero-knowledge technology and is compatible with the Ethereum Virtual Machine, making it easier for developers to migrate their applications. Scroll is expected to significantly scale Ethereum.

Coinbase Cuts 80 Non-USD Trading Pairs

Coinbase has axed 80 non-USD trading pairs to boost liquidity, affecting cryptos like Bitcoin and stablecoins like Tether. This move aligns with their early October plans and follows a similar action in mid-September. 

Users can still trade using more liquid USD order books. The cut pairs were a minor part of total trading volume. This comes as Coinbase's Q3 spot trading volumes plummeted 52% YoY. Meanwhile, Binance's spot market share also dipped, falling to 34% in September 2023.

BNB Chain Debuts Greenfield Storage Network

BNB Chain has launched the Greenfield storage network on its mainnet. Greenfield is a decentralized data storage network that offers cross-chain programmability and data access controls. It also allows users to create a data marketplace for trading or selling data. During testing, the network facilitated over 200,000 on-chain transactions involving 150,000 unique wallet addresses.

Roblox Incorporates XRP for In-Game Buys

Roblox now accepts XRP for in-game purchases, thanks to a partnership with BitPay and Xsolla. The gaming platform has 200M monthly and 65.5M daily active users, with a Q2 revenue of $680.8M. On the other hand, Ripple's new job posting for a shareholder communications senior manager hints at a possible IPO. 

The role involves direct communication with shareholders and IPO preparation tasks. Both developments indicate growing mainstream adoption of XRP despite Ripple's ongoing SEC lawsuit.

Immutable Postpones IMX Token Vesting

Immutable, an Ethereum layer-2 NFT scaling solution, has postponed the vesting of 125 million IMX tokens, valued at $67 million, until July 2024. The delay aims to bolster long-term sustainability. 

Immutable's co-founder, Robbie Ferguson, revealed the company has over 200 funded games and a four-year runway for its 270 staff. The firm plans to launch its zero-knowledge Ethereum Virtual Machine (zkEVM) and cross-rollup liquidity.

Forj Unveils ApeCoin's Ape Accelerator

NFT creators platform Forj has launched the Ape Accelerator, a community-led accelerator and launchpad funded by the ApeCoin DAO. The accelerator aims to drive adoption for the Bored Ape Yacht Club-themed token by supporting projects already in operation. 

The launchpad will allow ApeCoin holders to support projects that emerge from the accelerator and offer funding opportunities. The platform is the first of its kind, with all decisions made by the decentralized ApeCoin community.

Fantom Foundation Wallets Compromised

Blockchain security analyst Certik has reported that the foundation wallets of the Fantom blockchain were drained on both Ethereum and Fantom. The FTM wallet lost $470,000 while the Ethereum wallet lost $187,000. Following the exploit, the FTM price dropped by 4.8% to $0.1778. The stolen funds have been transferred to a wallet that holds around $7 million worth of ether.

Israel Targets Binance Accounts Linked to Hamas

Israel froze 100 Binance accounts suspected of links to Hamas, intensifying Binance's legal woes amid the Israel-Palestine conflict. U.S. regulators also allege Binance-Hamas connections. The actions have impacted Binance's trading volumes and led to the barring of new UK users due to regulatory changes. 

Meanwhile, reports of Hamas using crypto could hinder Coinbase's lobbying efforts for friendlier U.S. legislation. Israeli authorities had previously seized 190 Binance accounts linked to Hamas and ISIS since 2021.

Lido Finance Ends SOL Token Staking Requests

Decentralized liquid staking platform Lido Finance will no longer accept new requests for staking the solana (SOL) token following a vote by Lido DAO members. Existing SOL tokens can be unstaked until February 2024. The decision was made due to high costs and difficult market conditions.

SEC Steps Back from Grayscale's Bitcoin ETF Battle

The SEC has decided not to appeal a court ruling favoring Grayscale's Bitcoin ETF application. This follows a year-long legal battle where Grayscale aimed to convert its Bitcoin Trust into a spot Bitcoin ETF. Although the SEC's non-action opens the door for review, it doesn't guarantee approval. The initial court decision labeled the SEC's delays as "capricious," giving them a 45-day window for an en banc hearing, which they let pass.

FTX Proposes Settlement for Asset Disputes

FTX Trading Ltd and affiliated debtors have reached a proposed settlement for customer property disputes in their Chapter 11 case. The plan aims to return 90% of lost assets to customers, but court approval is required. Customers who knew about FTX's misuse of customer funds will be excluded from recovering lost assets. The plan will be filed on December 16.

Bitcoin Hovers at Key $28K Support Level

Bitcoin's price is hovering around a crucial $28K support level, signaling a defining moment for its future trajectory. Market analysts are closely watching this price point, which has been a battleground since early 2021. 

Meanwhile, Bitcoin's market dominance has soared to a 31-month high of 51%, indicating renewed interest and reduced selling pressure. False news about BlackRock's iShares Bitcoin Spot ETF led to a price spike and subsequent drop, affecting investor sentiment and causing significant liquidations.

Bitcoin Tops Weekly Crypto Fund Inflows

Bitcoin leads in crypto fund inflows with $16M last week, pushing year-to-date to $260M. Solana and XRP also gain, adding $3.7M and $420K respectively. Ethereum sees a $7.4M outflow. Globally, Germany dominates with $16.1M inflows, while Sweden records a $7.5M outflow. Bitcoin's price briefly surged past $30K due to an unconfirmed ETF rumor. Current trading at $28,049, up 4.3% in 24 hours.

Everscale Token Takes 20% Hit After Theft

Everscale's (EVER) token price plummeted by 20% following the team's announcement of a token theft. Market cap stands at $50.4 million, ranking 388th in the crypto space. While some suspect a rug pull, data shows a 13% decrease in total value locked (TVL) from $2.7M to $2.33M, making a rug pull less likely.

Platypus Finance Recovers Most Breached Assets

Platypus Finance, a DeFi protocol, recovered 90% of assets lost in a recent security breach. The net loss was confined to 18,000 Avalanche tokens, valued at $167,400. The hacker returned the funds voluntarily, averting legal action. 

The protocol, which runs on the Avalanche blockchain, had previously lost $2.23 million in flash loan attacks. This marks the third attack on Platypus this year, with earlier losses amounting to $157,000 and $8.5 million. All liquidity pools are currently halted for a security audit.

Uniswap Introduces Controversial Swap Fee

Uniswap, a leading decentralized exchange, has stirred the pot by introducing a 0.15% swap fee on specific tokens like ETH, USDC, and WETH. The move aims to fund ongoing development but has sparked backlash, particularly for neglecting UNI token holders. Critics argue it's a value siphon, benefiting equity holders over token holders. 

The fee applies only on Uniswap's mainnet and supported layer 2s. Some see the fee as a necessary step for sustainability, while others criticize it for undermining the governance token, UNI. The token's price has been largely unaffected, currently trading at $4.10.

Top Altcoin Gainers and Losers

Gainers:

Kaspa KAS (+6.94%)

OKX OKB (+6.09%)

ApeCoin APE (+4.83%)

Losers:

THORChain RUNE (-6.70%)

Klaytn KLAY (-5.86%)

Uniswap UNI (-5.84%)

NFT Market Map

OMA3 Forms NFT Royalty Protection Group

The Open Metaverse Alliance for Web3 (OMA3) has formed a working group to standardize and protect creator royalties on NFT marketplaces. The group includes companies such as Yuga Labs and Magic Eden, and aims to ensure the survival of creator royalties and maintain an interoperable online ecosystem. Recent decisions by NFT marketplaces to stop enforcing creator fees have threatened the adoption of royalties.

NFT Empowers Global Freezing Order

London-based financial investigative agency Intelligent Sanctuary has been granted permission by a Singapore court to issue a global freezing order using a non-fungible token (NFT) developed by Mintable. 

The NFT includes a worldwide freezing order granted by the court, allowing investigators to trace millions of stolen cryptocurrencies. Mintology.app, Mintable's B2B services brand, worked with Intelligent Sanctuary on the development of the NFT.

This article has been refined and enhanced by ChatGPT.