Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 3, 2023

Crypto Market Update

Table of Contents

Crypto Market Trends

• Ether ETFs Launch but Struggle with Volume
• Legal Drama Unfolds for Former FTX CEO
• Chainalysis Cuts Staff to Focus on Government Contracts
• Celsius Ex-CEO Faces Trial Amid Company Revival

Banking and Regulatory Updates

• Binance Faces Class-Action Lawsuit Over Market Monopoly
• Calls to Remove Fake Satoshi Account on X
• Binance to Phase Out BUSD Lending and Borrowing
• Tether's Growing Presence on Exchanges

Crypto Exchanges and Platforms

• Rollbit's Revenue Surge and Token Burn Program
• SIM Swap Attacks Hit Friend.Tech Users
• Orbiter Finance Addresses Rug Pull Accusations

Tech and Development

• OP Labs Debuts Testnet for Optimism Superchain
• StarkWare Delays StarkNet Token Unlocks

Market Volatility and Analysis

• Bitcoin Value Takes a Nosedive

Miscellaneous

• Su Zhu's Bungalow Transforms into Eco-Farm
• Sotheby's and Ledger Team Up for NFT Auctions

Ether ETFs Launch but Struggle with Volume

Nine ether futures-based exchange-traded funds (ETFs) launched on Monday, with five holding only ether futures and four holding a mix of bitcoin and ether futures. However, the ETFs saw lacklustre trading volumes, with the most popular, VanEck's Ethereum Strategy ETF, trading just shy of 25,000 shares for a total volume of $425,000. In comparison, the ProShares Bitcoin Strategy ETF reported trading volume of more than $1 billion on its first day. ETH responded by falling from $1,700 to $1,655.

Legal Drama Unfolds for Former FTX CEO

Sam Bankman-Fried, the former FTX CEO, is embroiled in a high-stakes legal battle. His lawyers are pushing to exclude testimonies from FTX users, arguing that such evidence is premature and could sway the jury unfairly. Meanwhile, jury selection is underway, with potential jurors being screened for biases, especially those related to crypto investments. 

Bankman-Fried also faces mounting legal bills and has sued his insurance provider, CNA, for failing to cover these costs. The trial, which includes charges like wire fraud and money laundering, could result in a sentence of over 100 years if he's convicted.

Chainalysis Cuts Staff to Focus on Government Contracts

Crypto analytics firm Chainalysis is laying off about 150 employees, or about 15% of its staff, as it retreats from the commercial market and focuses on government contracting. The firm is looking to shift its focus to the public sector, which accounts for 70% of its revenue.

Celsius Ex-CEO Faces Trial Amid Company Revival

The former CEO of Celsius, Alex Mashinsky, is set to face a criminal trial in September 2024 for allegedly misleading investors and defrauding users. He remains free on a $40-million bail. On the flip side, Celsius plans a comeback with a hefty $450 million in seed funding. Both stories signal turbulent times and pivotal moments for the crypto lending firm.

Binance Faces Class-Action Lawsuit Over Market Monopoly

Binance and its CEO Changpeng Zhao are facing a class-action lawsuit in the District Court of Northern California, alleging that they attempted to monopolize the crypto market through damaging strategies against competitor FTX. 

The lawsuit focuses on statements made by Zhao on Twitter that allegedly caused a significant drop in FTX's price, leading to its bankruptcy. Both Binance and FTX are also facing separate SEC actions, highlighting regulatory pressures in the crypto industry.

Calls to Remove Fake Satoshi Account on X

The crypto community is urging Elon Musk to remove an account claiming to be Satoshi Nakamoto on X. The community believes the account violates the platform's terms of service by using a deceptive identity. The true identity of Nakamoto remains unknown, with various individuals claiming to be him over the years.  

Binance to Phase Out BUSD Lending and Borrowing

Binance is shutting down its borrowing and lending services for Binance USD (BUSD) stablecoin by October 25. This is part of the phased termination of BUSD support by February 2024. BUSD was one of the largest stablecoins, with a peak market capitalization of $23 billion in November 2022, but has since fallen to $2.23 billion. BUSD withdrawals have been suspended on several blockchains, and users are encouraged to convert their balances into fiat or other cryptocurrencies.  

Tether's Growing Presence on Exchanges

Tether's presence on exchanges has jumped to 24.7%, indicating growing interest from investors. The increase in USDT holdings and stablecoin inflows suggest confidence in the crypto market and a desire to seize opportunities. Bitcoin's recent surge also adds to market optimism.  

Rollbit's Revenue Surge and Token Burn Program

Crypto platform Rollbit generated $38 million in revenues last month and burned over 1.2% of its RLB tokens as part of its "buy and burn" program. Token prices jumped 8% initially before settling for weekly gains of nearly 40%. 

The platform allows users to trade tokens with leverage and offers sports betting and arcade games. Earlier this year, Rollbit announced that a portion of fees generated from its various services would be used to purchase and burn RLB tokens.

SIM Swap Attacks Hit Friend.Tech Users

Friend.Tech users have reported falling victim to SIM swap attacks, with attackers draining thousands of dollars' worth of tokens. Two users claimed to have been targeted, resulting in over $70,000 of ethereum being stolen. The Friend.Tech code itself was not exploited and no users are currently at immediate risk. Some users have called for additional security features, such as two-factor authentication, to prevent future attacks.

Orbiter Finance Addresses Rug Pull Accusations

Decentralized cross-chain bridge platform Orbiter Finance addresses accusations of a rug pull and explains the issues with transactions and the disappearance of its Discord account. The team assures users that customer funds are safe and that failed transactions will be executed as soon as possible. The platform allows for fast and low-cost transactions of Ethereum native assets across various protocols.

OP Labs Debuts Testnet for Optimism Superchain

OP Labs has launched a testnet fault-proof system on the Optimism Goerli network. The modular system aims to achieve decentralization and security for OP Stack-based networks. It consists of three components and allows for custom-built fraud prevention systems. The goal is to create a diverse and secure Optimism Superchain ecosystem.  

StarkWare Delays StarkNet Token Unlocks

Ethereum Layer 2 developer StarkWare has postponed the first unlocks of its native StarkNet (STRK) token to April 2024. The delay, which affects core contributors, early supporters, and employees, is intended to allow the company to focus on building its technology. The total supply of STRK tokens is ten billion.

Bitcoin Value Takes a Nosedive

Bitcoin's value plummeted below $28K, contributing to a broader crypto market loss of nearly $32B in a day. The dip follows a brief surge above $28K, with analysts suggesting Bitcoin could hit as low as $12K before a significant rally. Traditional financial market volatility, rising bond yields, and DXY nearing 107 are also impacting crypto prices.

Su Zhu's Bungalow Transforms into Eco-Farm

Su Zhu's former $35M luxury bungalow in Singapore has been transformed into an eco-friendly urban farm, run by the Habitat Collective. The property features educational tours, composting sessions, and fine dining. The house was bought in 2021 and was intended to be sold in 2022. Zhu, co-founder of 3AC, was recently arrested while attempting to flee the country. Liquidators are trying to recover assets owned by the firm.  

Top Altcoin Gainers and Losers

Gainers:

Rollbit Coin RLB (+8.55%)

FTX Token FTT (+5.96%)

Gala GALA (+5.82%)

Losers:

Bitcoin Cash BCH (-7.42%)

Bitcoin SV BSV (-7.09%)

Aave AAVE (-6.40%)

NFT Market Map

Sotheby's and Ledger Team Up for NFT Auctions

Ledger has partnered with Sotheby's to offer free limited edition wallets to winners of Sotheby's NFT auctions. Ledger will cover the costs of the wallets for one year and provide educational content. Sotheby's has reported $100 million in NFT sales in 2021.

This article has been refined and enhanced by ChatGPT.