Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 2, 2023

Crypto Market Update

Table of Contents

Regulatory and Banking Updates

• Coinbase Secures MPI License in Singapore
• High-Stakes Trial Awaits Former FTX CEO Sam Bankman-Fried
• IMF Proposes Crypto Risk Assessment Matrix
• UK's FCA Fines ADM for AML Failures

Crypto Market Trends

• Bitcoin Price Skyrockets, Liquidating Shorts
• Solana's TVL Hits New 2023 Highs
• Crypto Industry Faces Worst Quarter of 2023
• Digital Asset Inflows Break Six-Week Slump
• Key Events in This Week's Economic Calendar

Crypto Exchanges and Platforms

• Massive Token Unlocks Scheduled for October
• Chia Network Cuts Workforce Amid Banking Woes
• Friend.tech Rakes in Millions in Revenue
• Chainlink Unveils Low-Latency Data Streams
• First Ether Futures ETFs Hit the Market

Whale and Market Activity

• FTX Hack Attacker Moves Millions in ETH
• Frax Finance Faces Whale-Driven Sell Pressure

Innovations and Collaborations

• IOTA 2.0 Promises Digital Autonomy
• Walmart Partners with Pudgy Penguins, Boosts Volume

Coinbase Secures MPI License in Singapore

Cryptocurrency exchange Coinbase has received a Major Payment Institution (MPI) license from Singapore's central bank, allowing it to expand its digital payment token services in the country. The license permits institutions to offer payment services without adhering to transaction volume limits. 

Coinbase received in-principal approval to expand its digital asset services in Singapore last October. The exchange also recently gained regulatory approval for perpetual futures trading from the Bermuda Monetary Authority and acquired an equity stake in USDC stablecoin issuer Circle Internet Financial.

High-Stakes Trial Awaits Former FTX CEO Sam Bankman-Fried

Sam Bankman-Fried, former FTX CEO, faces a high-stakes trial with seven fraud charges, as legal experts predict a strong case for the prosecution. Meanwhile, claims surface that he considered paying Donald Trump $5 billion to avoid a presidential run. Both legal and political dramas unfold.

IMF Proposes Crypto Risk Assessment Matrix

The IMF's working paper proposes a country-level assessment matrix (C-RAM) for identifying crypto risks and policy responses. The matrix helps assess the potential impact on the macroeconomy and identifies indicators of risks. It highlights the risks associated with El Salvador's adoption of Bitcoin as legal tender. Regulators are urged to respond to potential risks in the crypto sector.  

UK's FCA Fines ADM for AML Failures

The UK's Financial Conduct Authority has fined ADM Investor Services International $7.8 million for anti-money laundering (AML) failures, citing concerns about the misuse of the firm's services for money laundering. The penalty follows previous warnings and the company's failure to implement adequate AML controls. The FCA has been cracking down on AML compliance in the cryptocurrency and NFT sectors.  

Bitcoin Price Skyrockets, Liquidating Shorts

The surge in Bitcoin's price past $28,000 has shaken up the crypto price landscape, marking its highest level in 2 months. This bullish surge liquidated over $100 million in short positions, leaving traders in disbelief. 

Analysts point to various factors like ETF optimism and seasonality as catalysts. On-chain data reveals that key Bitcoin wallets, often called "sharks" and "whales," have been accumulating, adding fuel to the rally. However, there's caution in the air, as some believe this could be a short-lived "upside wick."

Solana's TVL Hits New 2023 Highs

Solana's TVL hitting $338.82 million has set new 2023 highs, making waves in the crypto coin prices with a 30% increase. The crypto community is buzzing with speculation, especially as the FTX estate, holding a massive stash of SOL, got the green light for liquidation. Despite the TVL surge, Solana's price still lags behind its annual peak.

Crypto Industry Faces Worst Quarter of 2023

The crypto industry lost $685.5 million in Q3, making it the worst quarter in 2023 as web3 losses reached $1.4 billion year-to-date due to hacks and fraud. Exploits on Mixin Network and Multichain accounted for nearly half of the total losses. 

DeFi platforms, particularly Ethereum, were the most targeted, suffering $499.8 million of Q3 losses. Recovery efforts have been initiated, with Mixin Network offering hackers a $20 million "bug bounty" to return stolen funds.

Digital Asset Inflows Break Six-Week Slump

After a six-week outflow streak, digital asset investment products saw a turnaround with net inflows of $21 million, a noteworthy shift in cryptocurrency charts. Bitcoin dominated with $20.4 million in inflows, Solana continued to shine with $5.1 million, while Ether experienced outflows of $1.5 million for the seventh consecutive week. 

Regional divergence was seen, with Europe and Canada seeing inflows while the U.S. witnessed outflows. Blockchain equities had outflows of $8.4 million.  

Key Events in This Week's Economic Calendar

This week's economic calendar includes speeches from Federal Reserve Chair Jerome Powell and ECB President Christine Lagarde. The Sam Bankman-Fried trial begins, and the possibility of a US Ethereum futures ETF approval looms. Crypto markets have seen positive momentum, with a total capitalization of $1.15 trillion and Bitcoin surpassing $28,000.  

Massive Token Unlocks Scheduled for October

In October, Axie Infinity will release 15.1 million AXS tokens worth $71.8 million. Optimism will unlock 24.2 million OP tokens worth $35.3 million, and Aptos will release 4.5 million APT tokens worth $26 million. These token unlocks contribute to a total of $215 million worth of tokens released this month. Avalanche is set for a significant $93.5 million token unlock in November.  

Chia Network Cuts Workforce Amid Banking Woes

Blockchain platform Chia Network has laid off more than a third of its workforce in an effort to reestablish a lost banking relationship with Credit Suisse. The company had hoped to list as a public company but was delayed by the collapse of its banking partner. 

Chia has secured a new banking relationship with a US institution and is currently in negotiations with the Securities and Exchange Commission (SEC). The company is also considering selling some of its own token, XCH, as a backup source of funding.

Friend.tech Rakes in Millions in Revenue

Friend.tech, a social application built on the Base Layer 2 network, has earned over $18.4 million in revenue in less than two months. Sniper bots on the platform have accumulated over $5.9 million, accounting for 34% of the total creator revenue. The platform has also seen significant growth in other metrics, with a total value locked of $52.31 million and over 305,000 users.

Chainlink Unveils Low-Latency Data Streams

Blockchain data oracle provider Chainlink has launched a new product called Data Streams, aimed at reducing network latency. The product, now in early access on layer 2 platform Arbitrum, combines low latency market data and automated execution to enable fast and user-friendly derivative products. 

Additionally, Chainlink has introduced new decentralized computing capabilities with Functions Beta and Automation 2.0 on the main network, allowing developers to connect decentralized applications to any API and automate high-value jobs at a lower cost.

First Ether Futures ETFs Hit the Market

Multiple exchange-traded funds (ETFs) based on ether futures have been launched by ProShares, VanEck, and Bitwise. These ETFs are the first of their kind and provide investors with exposure to the performance of ether futures, offering an alternative to direct cryptocurrency investment.

UBS Asset Management is piloting a tokenized money market fund in Singapore, in collaboration with the Monetary Authority of Singapore (MAS). Using Ethereum-based smart contracts, the test aims to enhance fund liquidity and access. The initiative is part of MAS's Project Guardian, but experts caution that mass adoption of tokenization could take years.

In anticipation of the likely approval of Ethereum Futures ETFs, crypto whales are stockpiling ETH, significantly impacting the Ethereum market cap. Significant withdrawals and stakings of ETH from Binance have been observed, with amounts ranging from $7.2 million to $16 million. This uptick in activity coincides with a bullish sentiment in ETH's price, which has gained over 11% recently.

FTX Hack Attacker Moves Millions in ETH

An attacker associated with the FTX hack moved $38 million worth of ETH through privacy tools like THORChain and RailGun. The wallet still holds $287 million in assets, causing concerns about the selling pressure on ETH's price.  

Frax Finance Faces Whale-Driven Sell Pressure

Frax Finance (FXS) is experiencing sell pressure from whales with outflows of 1.42 million tokens. The market reaction suggests short-term profit-taking, while on-chain data shows a slowdown in retail demand. However, Frax Finance's Total Value Locked increased by 5.17% to $444 million, and developer activity grew by 12.5% in the last 30 days.  

IOTA 2.0 Promises Digital Autonomy

Distributed ledger technology IOTA has introduced IOTA 2.0, a protocol that aims to provide digital autonomy for everyone. It will enable easy transfers, secure and tokenize assets, and create new digital ecosystems. The launch of the Shimmer EVM Public Smart Contract Chain has already taken place, and the upcoming release of IOTA 2.0 is expected to be a turning point for the blockchain. 

The IOTA network will undergo a fork with the upgrade to the Stardust protocol, resulting in two separate networks. The IOTA Foundation will only support the IOTA Stardust network in the future.

Top Altcoin Gainers and Losers

Gainers:

Bitcoin SV BSV (+22.72%)

Rollbit Coin RLB (+14.08%)

eCash XEC (+9.57%)

Losers:

Maker MKR (-7.06%)

GMX GMX (-5.44%)

Frax Share FXS (-3.84%)

NFT Market Map

Walmart Partners with Pudgy Penguins, Boosts Volume

Last week, Walmart announced their collaboration with Pudgy Penguins, resulting in a 241% surge in trading volume for the NFT project. Pudgy Penguins generated $3.32 million in volume between Sept. 24 and Oct. 1, the highest since July, following the news.  

This article has been refined and enhanced by ChatGPT.