Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 30, 2023

Crypto Market Update

Table of Contents

Market Trends and Predictions

• Bitcoin's Volatile November Outlook
• VanEck Reapplies for Bitcoin ETF
• DeFi Hits Three-Month High in Asset Value
• Crypto Funds See Surge in Net Inflows

Regulatory and Legal Updates

• Global Regulators Test Asset Tokenization
• UK Treasury Unveils Crypto Regulations
• Terraform Labs Fights SEC Fraud Case

Banking and Institutional Moves

• K-Bank Acquires Thai Crypto Exchange Satang
• Zodia Custody Expands in Hong Kong
• Andreessen Horowitz's Mega Fund Plans

Country-Specific Developments

• Salvadoran President Files for Reelection

Crypto Exchanges and Platforms

• Snowtrace.io to Shut Down Amid High Costs
• Celestia Mainnet and TIA Token Launch
• Animoca Partners with Saudi's NEOM Fund

Tech and Innovation

• Connext Criticizes LayerZero's Bridge
• VanEck's Bold Predictions for Solana

Controversies and Scandals

• SBF's Controversial Stance on Regulation

Social Media and Community

• Elon Musk's New Policy for Platform X

NFTs and Gaming

• Court Favors BAYC in NFT Copyright Case
• Stepn and Steve Aoki Launch NFT Sneakers

Bitcoin's Volatile November Outlook

Bitcoin's price hovers around $34,500, buoyed by potential U.S. ETF approval and strong network fundamentals. However, macro uncertainties and the Fed's upcoming decision add volatility. Options market shows bullish sentiment, but a $20,000 crash scenario lingers. November has a 60% chance of being bullish based on historical data.

VanEck Reapplies for Bitcoin ETF

Investment firm VanEck has reapplied for a Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission. This comes after the agency withdrew VanEck's previous request. The spot Bitcoin ETFs offer investors an easier way to access Bitcoin and are seen as a more secure option. Rival firm BlackRock has also refined its own offering for a spot Bitcoin ETF.

DeFi Hits Three-Month High in Asset Value

The total value of assets locked in DeFi protocols has reached a three-month high of $42 billion, driven by rising asset prices and fresh inflows from participants seeking to generate yields. Transactional volume across DeFi protocols has also surged, with $4.4 billion recorded on Oct. 24. However, there are risks in the sector, as a slide in the price of ether could trigger significant on-chain liquidations.

Crypto Funds See Surge in Net Inflows

Crypto-focused investment funds received $326 million in net inflows last week, driven by optimism over the approval of a spot bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), according to CoinShares. 

Bitcoin funds accounted for 90% of the inflows, while funds holding ether experienced $6 million in net outflows. Solana investment vehicles saw the largest net inflows among altcoins, receiving $24 million.

Global Regulators Test Asset Tokenization

Regulators in Singapore, Japan, the UK, and Switzerland are collaborating on tests for asset tokenization in areas such as fixed income and asset management. The project aims to discuss legal and accounting treatment, identify risks and policy gaps, and develop common standards for digital asset market design. The regulators also plan to facilitate industry pilots through regulatory sandboxes.

UK Treasury Unveils Crypto Regulations

The UK Treasury has released its proposed regulations for cryptoassets and stablecoins, with a focus on fiat-backed stablecoins for payments. The regulations will be implemented in stages and will address issues such as oversight, financial stability, and consumer protection. The Treasury also plans to regulate broader crypto-related activities such as trading and custody. It aims to introduce legislation in early 2024.

Terraform Labs Fights SEC Fraud Case

Crypto company Terraform Labs and its co-founder, Do Kwon, have asked a US federal judge to side with them in a fraud case brought by the Securities and Exchange Commission (SEC). They argue that the SEC has failed to prove that the company was offering securities. 

Terraform is currently fighting with the agency over the core questions surrounding the digital assets industry. The company is also seeking to dismiss testimony from experts enlisted by the SEC and opposes the agency's request to question Kwon. 

K-Bank Acquires Thai Crypto Exchange Satang

K-Bank, Thailand's fourth-largest bank, has acquired a majority stake in the parent company of local crypto exchange Satang. The acquisition was worth 3.7 billion Thai baht ($102.8 million) and was made through K-Bank's subsidiary, Unita Capital. Satang will be renamed Orbix Trade Company Limited. 

K-Bank has also established three new subsidiaries focused on digital asset custody, fund management, and blockchain infrastructure development. The acquisition comes after K-Bank launched a $100 million tech venture fund and its competitor, Siam Commercial Bank, established a blockchain subsidiary. Siam Commercial Bank also attempted to acquire a majority share in a local exchange but backed out due to regulatory concerns.

Zodia Custody Expands in Hong Kong

Standard Chartered-backed digital asset custodian, Zodia Custody, is expanding its services in Hong Kong due to the high demand from institutions in the market. The company has recently expanded in other Asia Pacific jurisdictions such as Australia and Singapore. Zodia Custody is registered with the UK's Financial Conduct Authority.

Andreessen Horowitz's Mega Fund Plans

Venture capital firm Andreessen Horowitz is planning to raise $3.4 billion for its next early-stage funds, with new growth, crypto, and bio vehicles expected in 2025. The firm has been active in the blockchain space through its a16z crypto arm, investing in companies like Coinbase and MakerDAO. Venture capital flow into crypto has slowed during the bear market, with August seeing the lowest monthly volume since January 2021.

Salvadoran President Files for Reelection

Salvadoran President Nayib Bukele, a pro-Bitcoin advocate, has filed for reelection in the upcoming 2024 presidential election. While he enjoys strong public support, critics argue that his bid violates the country's constitution. 

Bukele's party, New Ideas, has a significant backing, and his government has implemented tech-friendly policies to boost the economy. His popularity is also attributed to his tough stance against criminal gangs, resulting in a significant reduction in the country's homicide rate. The election is set for February 4, 2024. 

Snowtrace.io to Shut Down Amid High Costs

On November 30, Snowtrace.io, an AVAX blockchain explorer tool, will shut down its website powered by Etherscan's EaaS toolkit. The decision is speculated to be due to the high annual subscription fees, estimated between $1-$2 million. Users are advised to save their backup information before the shutdown.  

Celestia Mainnet and TIA Token Launch

Celestia's mainnet and TIA token are launching, with listings on Binance, KuCoin, and Bybit. A 60 million token airdrop is planned. TIA is trading at $3.15 on Helix, valuing the project at $3.1 billion. The network aims to be a modular platform for new blockchain development.

Animoca Partners with Saudi's NEOM Fund

Animoca Brands, a metaverse and gaming venture capital firm, is partnering with Saudi Arabia's NEOM Investment Fund to develop Web3 initiatives. NEOM plans to invest $50 million in Animoca to support the development of Web3 service capabilities. This investment marks a potential turnaround in the Web3 venture capital sector.

Connext Criticizes LayerZero's Bridge

Cross-chain bridging protocol Connext has criticized LayerZero for deploying a bridge for stETH without support from the token's issuer, Lido. Connext argues that proprietary cross-chain protocols create risks for asset issuers and tokenholders. The company calls for the adoption of open and public technology standards.

VanEck's Bold Predictions for Solana

Solana's native cryptocurrency, SOL, surged above $32 and asset management firm VanEck predicts a wide range of possible valuations for SOL by 2030, ranging from $9.81 to $3,211.28. The report also suggests Solana has the potential to challenge Ethereum's dominance and become the first blockchain with over 100 million users. However, caution is advised as technical indicators signal a potential price decline.   

SBF's Controversial Stance on Regulation

Disgraced crypto executive SBF, founder of FTX, expressed disdain for regulators despite publicly supporting crypto regulation. The trial revealed his derogatory remarks and conflicting statements. FTX's collapse and missing funds led to a failed acquisition by Binance.  

Elon Musk's New Policy for Platform X

Elon Musk has announced a new policy for X, the platform formerly known as Twitter, to tackle misinformation. Users who post misleading content that is later rectified by fact-checking will no longer receive payment for engagement. Musk also plans to introduce a monthly fee to combat bot activity, though this has sparked mixed reactions. The success of these strategies will determine the future of X.

Top Altcoin Gainers and Losers

Gainers:

Rollbit Coin RLB (+11.03%)

THORChain RUNE (+6.59%)

BitTorrent New BTT (+5.54%)

Losers:

ApeCoin APE (-3.76%)

FTX Token FTT (-3.48%)

Flow FLOW (-3.44%)

NFT Market Map

Court Favors BAYC in NFT Copyright Case

In a landmark copycat lawsuit, NFT artists Ryder Ripps and Jeremy Cahen have been ordered by a U.S. district court to pay $1.57 million to Bored Ape Yacht Club (BAYC) creators, Yuga Labs. The judgment was based on copyright infringement claims. BAYC has gained significant value, with 1.32 million ETH traded since April 2021. 

Stepn and Steve Aoki Launch NFT Sneakers

Mobile game Stepn has partnered with electronic musician Steve Aoki to release a collection of digital sneakers as Solana NFTs. The collaboration, tied to Aoki's NFT-based membership club, A0K1VERSE, will feature 300 collaborative sneakers in four different designs. 

The NFTs will be available for purchase on the MOOAR marketplace, with 60 editions of each design being released. Stepn is a move-to-earn game where users can buy NFT sneakers, connect them to their phones, and earn rewards for physical activity.

This article has been refined and enhanced by ChatGPT.