Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 24, 2023

Crypto Market Update

Table of Contents

Banking and Regulatory Updates

• BlackRock's Vanishing Bitcoin ETF Fuels Market Rally
• DCG Addresses NY Attorney General's Lawsuit Amid Debt Recovery
• Binance's UK Chief Exits Amid Regulatory Heat
• Proposed IRS Crypto Data Collection Sparks Privacy Debate

Crypto Exchange and Platform Developments

• Nym Technologies Unveils $300M Fund for Web3 Security
• MicroStrategy's Bitcoin Boom Contrasts El Salvador's Losses
• SEC Reviews Grayscale's Bid for Ethereum ETF
• Astar, Startale, and KDDI Explore Blockchain in Customer Experience
• dYdX Reveals Code for Decentralized V4 Platform Pre-Launch

Market Trends and Analysis

• Meme Coin Surge Follows Bitcoin's Market Recovery
• FTX's Bankman-Fried to Showcase Financial Expert in Trial
• Regulatory Hurdles Slow DeFi Growth in North America: Chainalysis
• Mastercard Eyes Self-Custody Wallet Collaborations
• NFL Rivals' Marketplace Thrives with Tech Giants' Approval

BlackRock's Vanishing Bitcoin ETF Fuels Market Rally

BlackRock's Bitcoin ETF, initially listed on the DTCC with the ticker IBTC, stirred market excitement but later reportedly vanished from the list. A crypto-wide rally liquidated $323 million in short positions, with Bitcoin's price peaking at $35,000. 

The asset's market dominance hit a 2.5-year high of 54%. The rally was partially fueled by optimism around potential ETF approvals, though the SEC's stance remains uncertain.

DCG Addresses NY Attorney General's Lawsuit Amid Debt Recovery

Digital Currency Group (DCG) claims to have cooperated with the New York Attorney General's investigation prior to being blindsided by the lawsuit. DCG denies any wrongdoing and says the complaint contains no compelling factual allegations. 

DCG also discussed its debt repayment and recovery claims in relation to the Genesis bankruptcy. The company remains committed to reaching a fair outcome for all parties. In addition, DCG mentioned the court win for Grayscale, which allows for the potential conversion of GBTC to an ETF pending SEC approval.

Binance's UK Chief Exits Amid Regulatory Heat

Jonathan Farnell, Binance's UK chief, exits amid FCA's tightened crypto ad rules. Meanwhile, Binance challenges the U.S. CFTC's authority, arguing U.S. laws shouldn't govern its global operations. Both events highlight escalating regulatory pressures on the crypto exchange.

Proposed IRS Crypto Data Collection Sparks Privacy Debate

The IRS has proposed new data-collection requirements for crypto service providers, including names and Social Security numbers. Critics argue that this expands financial surveillance and raises concerns about privacy. The estimated tax revenue from these requirements has been disputed, with initial estimates of $28 billion over 10 years reduced to $2 billion.  

Nym Technologies Unveils $300M Fund for Web3 Security

Privacy firm Nym Technologies has launched a $300 million funding program, the Nym Innovation Fund, to support projects building security-focused infrastructure for Web3. The fund will draw capital from investors like Polychain and Huobi Incubator and will prioritize projects that focus on Web3 privacy tools and services, including Web3 wallets, RPC protocols, and open-source initiatives.  

MicroStrategy's Bitcoin Boom Contrasts El Salvador's Losses

MicroStrategy enjoys a $745M unrealized profit with 158,245 BTC, bought at an average of $29,870. Bitcoin peaked at $35,198 after a 17.5% surge. In contrast, El Salvador still faces nearly $20M in unrealized losses on 3,062 BTC, bought at around $40,595 each, despite Bitcoin's rally to $35,000.

SEC Reviews Grayscale's Bid for Ethereum ETF

The US Securities and Exchange Commission (SEC) is reviewing an application by Grayscale Investments to convert its Grayscale Ethereum Trust (ETHE) into an exchange-traded fund (ETF). The move would enable investors to gain exposure to Ether without directly holding crypto assets. 

This follows the SEC's approval of Bitcoin futures ETFs earlier this year and Ethereum futures ETFs more recently. The SEC's decision on spot crypto ETFs could have a significant impact on the mainstream adoption of digital assets.

Astar, Startale, and KDDI Explore Blockchain in Customer Experience

Singapore-based Astar Network and Startale Labs have entered preliminary talks with Tokyo-based KDDI Corporation to drive adoption of blockchain technology and pioneer unique Web3 customer experiences. The partnership will explore non-fungible tokens (NFTs), Web3 products, and the applications of Astar zkEVM powered by Polygon. The collaboration aims to enhance KDDI's service and foster a creator economy through Web3 technology.

dYdX Reveals Code for Decentralized V4 Platform Pre-Launch

Crypto derivatives exchange dYdX has open-sourced the code for its upcoming decentralized v4 platform, in order to receive community feedback before launching the mainnet. The exchange, which currently has a total value locked of $364 million, plans to transition from being an Ethereum layer-2 to becoming an appchain using the Cosmos SDK. 

The key feature of dYdX v4 will be its complete decentralization, with the dYdX chain fully open source and trading not collecting fees. The exchange's native token will also be migrated onto v4.

Meme Coin Surge Follows Bitcoin's Market Recovery

The recent market-wide recovery, led by Bitcoin's rise above $35,000, has sparked a renewed interest in meme coins. Ethereum gas fees have also surged, indicating strong demand. Popular meme coins like PEPE, BITCOIN, and SPX saw significant price jumps, indicating strong on-chain trading activity. However, the rise of meme coins in the past has often preceded bearish reversals in Bitcoin.

FTX's Bankman-Fried to Showcase Financial Expert in Trial

FTX's Sam Bankman-Fried plans to present financial expert witness Joseph Pimbley in his defense. Pimbley, a seasoned financial expert, will focus on Alameda's line of credit fluctuations, account balances for non-Alameda, non-FTX users, and data extracted from FTX's database. This is in response to government witness testimonies in the ongoing trial.  

Regulatory Hurdles Slow DeFi Growth in North America: Chainalysis

Chainalysis reports that regulatory uncertainty hinders DeFi growth in North America. Decline in crypto activity attributed to decreased transaction volume and mainstream adoption. Their 2023 Global Crypto Adoption Index aims to gauge grassroots crypto adoption across countries. 

The index is a blend of five sub-indexes, each focusing on different aspects like centralized exchange activity, retail transactions, and DeFi protocols, all weighted by factors like PPP per capita. Top countries include India, Nigeria, and Vietnam. 

Mastercard Eyes Self-Custody Wallet Collaborations

Mastercard is considering collaboration with self-custody wallet firms such as MetaMask and Ledger. The company believes that offering payment cards can help these wallet providers increase user numbers and loyalty, while also allowing cardholders to spend their cryptocurrency balance easily. 

Mastercard is also exploring new models for global issuance using stablecoins and fast chains. The company plans to release franchise standards to ensure consumer protection, price competition, and transaction monitoring. The first market for a new card program could be the EU or UK.

Top Altcoin Gainers and Losers

Gainers:

Mina MINA (+64.61%)

Conflux CFX (+39.91%)

Pepe PEPE (+26.16%)

Losers:

Chainlink LINK (-3.22%)

Bitcoin SV BSV (-2.56%)

Uniswap UNI (-1.80%)

NFT Market Map

NFL Rivals' Marketplace Thrives with Tech Giants' Approval

The blockchain game NFL Rivals has gained nearly 3 million players and seen an increase in revenue since the start of the NFL season. Mythical Games' CEO, John Linden, stated that the game's in-game marketplace is becoming fully operational with the support of Apple and Google app store policies. The approval from both tech giants has resulted in a significant increase in transaction volume. NFL Rivals is free to play and utilizes the Mythos blockchain.

This article has been refined and enhanced by ChatGPT.