Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 18, 2023
Table of Contents
Market and Regulatory Updates
- Fidelity Tweaks Bitcoin ETF Application Amid SEC Scrutiny
- Sam Bankman-Fried Faces Trial Over FTX's Downfall
- Reddit Axes Blockchain Rewards, Tanking Token Value
- Vitalik Buterin Refutes Ether Dumping Claims as Whales Dominate
- Warren Leads Charge Against Crypto-Financed Terrorism
Country-Specific Developments
- Hong Kong Residents Wary of Crypto After JPEX Scandal
- France Passes Sorare Law for Crypto in Gaming
Crypto Exchanges and Platforms
- Floki Aims for DeFi Credibility with New Staking Feature
- Coinbase Advanced Unveils Perpetual Futures Contracts
Payment and Token News
- Roblox Debunks Rumors of XRP Payment Integration
- Sui Token Plummets Amid Supply Manipulation Accusations
Social Media and Community
- Platform X Charges New Users to Combat Spam
- Yuga Labs Restructures, Doubles Down on Metaverse
Fidelity Tweaks Bitcoin ETF Application Amid SEC Scrutiny
Fidelity amends its Bitcoin ETF application, focusing on risk factors and market volatility. SEC Chair Gary Gensler confirms ongoing reviews of multiple Bitcoin ETF applications but remains non-committal. Michael Novogratz of Galaxy Digital Holdings predicts Bitcoin ETF approval in 2023.
SEC's increased communication with ETF applicants suggests a more favorable environment. Analyst Benjamin Cowen warns of a potential 50% BTC price drop ahead of the 2024 halving, citing historical patterns. Bitcoin's current price hovers around $28,500, influenced by both ETF developments and market sentiment.
Sam Bankman-Fried Faces Trial Over FTX's Downfall
FTX's former CEO, Sam Bankman-Fried, is on trial facing multiple charges, including fraud and conspiracy. Key evidence reveals FTX's hefty sponsorship deals: $100 million with Riot Games, $42 million with Tomorrowland, and $25 million with Coachella. The prosecution argues that Bankman-Fried's spending was reckless and contributed to FTX's downfall.
Court exhibits that Bankman-Fried's lawyers tried to exclude have been mostly allowed, shedding light on his management style and alleged misuse of customer funds. A witness in the trial, Katz, highlighted the discrepancy between FTX's public statements on crypto investor protection and its actual practices.
Reddit Axes Blockchain Rewards, Tanking Token Value
Reddit is discontinuing its blockchain-based Community Points reward system, causing a sharp decline in related token values. The decision is attributed to high Ethereum fees and technical challenges. Users are outraged, and Kraken's co-founder criticizes Reddit for devaluing tokens without offering alternatives. Overall sentiment is negative, with significant financial and community impact.
Vitalik Buterin Refutes Ether Dumping Claims as Whales Dominate
Ethereum co-founder Vitalik Buterin denies selling Ether for personal gain since 2018, countering asset dumping claims. Meanwhile, Ethereum whales, holding over 1 million ETH, now control 32.2% of the supply, the highest since 2016. Despite this concentration, selling by whales persists.
Data shows a "striking difference" in holding behaviors between Bitcoin and Ethereum whales. Ethereum staking is at an all-time high with 27.6 million ETH staked, but the asset's price continues to decline, currently at $1,570.
Warren Leads Charge Against Crypto-Financed Terrorism
U.S. Senator Elizabeth Warren and 101 other lawmakers are pushing for a crackdown on crypto-financed terrorism. They're demanding plans from top security officials on how to tackle this issue.
Meanwhile, the Bank of England is grappling with persistent inflation, making U.S. rate hikes more likely. Across the pond, the EU has adopted new crypto tax rules requiring firms to share customer data with tax authorities. These rules also cover stablecoins and NFTs and will be effective 20 days after their official publication.
Hong Kong Residents Wary of Crypto After JPEX Scandal
According to a preliminary survey conducted by The Hong Kong University of Science and Technology, 41% of Hong Kong residents do not want to hold virtual assets after the JPEX scandal. The survey also found that only 8% of respondents plan to invest in virtual assets, with most preferring to own tokens or invest in exchange-traded funds. The survey was conducted from September 28 to October 20, 2023.
France Passes Sorare Law for Crypto in Gaming
The French National Assembly has passed a law, known as the Sorare law, which establishes the first regulatory framework for video games that incorporate non-fungible tokens (NFTs) and crypto-driven monetization schemes. The law aims to strike a balance between promoting innovation among French startups and protecting users.
The legislation creates a new regulatory framework specifically tailored to crypto games, distinguishing them from gambling and traditional video games. The law will now be examined by the Constitutional Council, and opponents have raised concerns that it gives preferential treatment to crypto games over online casinos.
Floki Aims for DeFi Credibility with New Staking Feature
Developers of Floki (FLOKI) plan to introduce a staking feature and a new utility token to increase investor interest in the ecosystem. Users will be able to earn the new token by staking FLOKI tokens for a period of time, which will reduce the amount of FLOKI tokens in circulation and add value. The project aims to transition from being a meme coin to a serious DeFi project.
Coinbase Advanced Unveils Perpetual Futures Contracts
Coinbase has announced that its Advanced customers outside of the US and UK will have access to perpetual futures contracts on Bitcoin, Ethereum, Litecoin, and XRP. The futures contracts will be settled in USDC, a stablecoin pegged to the US dollar, and will initially offer up to 5x leverage. Coinbase aims to provide global retail customers with access to derivatives trading through its Coinbase Advanced platform.
Roblox Debunks Rumors of XRP Payment Integration
Roblox has denied rumors that it will support XRP payments, stating that the claims are "inaccurate." The rumors began when payments processor BitPay tweeted about using Ripple's XRP token for Xsolla payments in supported games, including Roblox. However, Roblox clarified that it does not enable cryptocurrency payments and that BitPay's tweet contained incorrect information.
Sui Token Plummets Amid Supply Manipulation Accusations
The native token of the Sui blockchain, SUI, experienced a sharp drop, falling to an all-time low of $0.367 before recovering slightly to $0.377. The decline comes amid reports that the Sui Foundation manipulated the token's supply. The foundation denied the accusations but is facing scrutiny from South Korean regulators.
Platform X Charges New Users to Combat Spam
Social media platform X (formerly known as Twitter) has introduced a new subscription scheme in New Zealand and the Philippines to combat spam bots and increase revenue. New users in these countries will be charged $1 to open an account, and will need to verify their phone number.
Those who pay the fee will have full access to the platform, while non-paying users will have read-only access. The move has received mixed reactions, with some pointing out that spammers can easily circumvent the fee by using VPNs or obfuscating their locations.
Top Altcoin Gainers and Losers
Gainers:
Rollbit Coin RLB (+8.03%)
Trust Wallet Token TWT (+4.82%)
Radix XRD (+4.69%)
Losers:
Conflux CFX (-4.54%)
IOTA MIOTA (-4.27%)
Frax Share FXS (-3.67%)
NFT Market Map
Yuga Labs Restructures, Doubles Down on Metaverse
Yuga Labs, the force behind Bored Ape Yacht Club (BAYC), has wrapped up its restructuring, focusing on its metaverse project Otherside. CEO Daniel Alegre announced the move, emphasizing the technical and creative challenges of building an "immersive metaverse."
The reorg leaves Yuga with over 120 employees focused on specific goals. Generous severance packages were offered to those exiting the company. Amidst this, Yuga faces skepticism from a U.S. appeals court regarding a trademark lawsuit and a class-action lawsuit involving BAYC investors.
This article has been refined and enhanced by ChatGPT.
