Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 5, 2023

Crypto Market Update

Table of Contents

Regulatory and Legal Updates

• DOJ Targets Jets Linked to Ex-FTX CEO
• Solana Validators Subsidized: Impact on SOL Prices
• Bitcoin Struggles to Break $28,000: The Factors
• Taiwan Trader Wins Big in Crypto Tax Lottery

Crypto Exchanges and Platforms

• Friend.tech and StarsArena Face Security Woes
• Hong Kong Stock Exchange Unveils Synapse
• JPEX Scandal Spurs Hong Kong Crypto Task Force

Investment and Fundraising

• Crypto Fundraising Hits Three-Year Low
• Sui Foundation's $51M Ecosystem Fund

Market Trends and Metrics

• Ethereum Fees Drop: A Sign of Rebound?

Country-Specific Developments

• Dutch Court Rules on Crypto Company Fees
• Ledger Cuts Workforce Amid Economic Strain

NFT and Community Updates

• OpenSea Sales Volume Hits Yearly Low
• Trump's NFT Sales Skyrocket Amid Speculation
• Doge-Inspired Statue and Community Plans

DOJ Targets Jets Linked to Ex-FTX CEO

The DOJ is after two luxury jets linked to Sam Bankman-Fried, former FTX CEO, amid legal tussles over their true ownership. Meanwhile, ex-FTX exec Zane Tackett dismantles SBF's defense, citing poor risk mitigation and accounting at FTX. Adam Yedidia, SBF's former roommate, reveals an $8-billion error in FTX's code, while another report from Tackett mentions stumbling upon millions in unclaimed airdrops at FTX. 

Solana Validators Subsidized: Impact on SOL Prices

Over 90% of Solana validators are allegedly heavily subsidized by the Solana Foundation and Alameda Research, leading to concerns about the long-term impact on SOL prices. The Solana co-founder responded by emphasizing the importance of online votes and the significance of their votes in securing the network, rather than the stake held by each validator.

Bitcoin Struggles to Break $28,000: The Factors

Bitcoin's recent attempt to break past $28,000 fizzled, with factors like on-chain metrics and macroeconomic pressures playing spoilsport. While traders were optimistic about tackling the $30,000 resistance, three key metrics—spot market volumes, derivatives, and confidence in a spot Bitcoin ETF—indicate weak support. Additionally, warnings from the Federal Reserve about economic downturns add to the bearish sentiment.

Taiwan Trader Wins Big in Crypto Tax Lottery

A trader on Taiwan's MaiCoin Max cryptocurrency exchange has won $310,000 through a monthly tax receipt lottery. Retailers in Taiwan are required to give customers an official receipt, which doubles as a lottery ticket number. This incentivises tax compliance and allows authorities to capture tax revenue from cryptocurrency trading.

Friend.tech and StarsArena Face Security Woes

Friend.tech saw a 7.8% drop in Total Value Locked (TVL) due to mass withdrawals, largely influenced by user Hanwei Chang's liquidation of 43 fractional tokens. Meanwhile, StarsArena, a similar platform, patched an exploit after losing funds to a malicious attack. Both platforms have faced security issues, putting their user bases on high alert.

Hong Kong Stock Exchange Unveils Synapse

The Hong Kong Stock Exchange is launching "Synapse," a settlement platform powered by smart contracts. It will accelerate trades for international investors in Mainland Chinese stocks and streamline post-trade flows. The platform will be deployed on Stock Connect, with average daily turnover of RMB109.3 billion in H1 2023.  

JPEX Scandal Spurs Hong Kong Crypto Task Force

JPEX crypto exchange is under fire for pushing a DAO dividend plan that allegedly converts user assets without consent. Meanwhile, Hong Kong authorities have formed a crypto task force in response to the JPEX scandal, aiming to crack down on illicit activities. The exchange is accused of defrauding people of around $178 million.

Crypto Fundraising Hits Three-Year Low

In Q3 2023, crypto fundraising reached a three-year low, with just under $2.1 billion raised across 297 deals, according to Messari. This marks a significant decline from the peak of $17.5 billion in Q1 2022. Additionally, investors are focusing on early-stage projects and infrastructure investments rather than user-facing applications.  

Sui Foundation's $51M Ecosystem Fund

The Sui Foundation has announced a $51.3 million ecosystem fund to support the development of its DeFi ecosystem and on-chain central limit order book-based platform, DeepBook. 

The funds will be used to provide grants to developers of DeFi applications and support the on-chain CLOB platform. The foundation aims to emulate the high-frequency trading capabilities of Nasdaq and centralized exchanges through the swift transaction speed of the Sui network.

Ethereum Fees Drop: A Sign of Rebound?

Ethereum's network fees have dropped to their lowest levels since November 2022 at $1.13, indicating a potential price rebound. Crypto analytics firm Santiment suggests that lower fees may lead to a rise in utility and price. Additionally, the amount of ETH outside exchanges has reached an all-time high, while the launch of ETH futures ETFs has generated anticipation in the market.

Dutch Court Rules on Crypto Company Fees

A Dutch court has ruled that the country's central bank, De Nederlandsche Bank (DNB), cannot impose supervisory costs on crypto companies that registered in 2020. However, the court disagreed with complaints that crypto companies were unfairly charged fees in 2020. 

The plaintiffs can appeal the ruling. Separately, the recent EU MiCA laws impose compliance costs on crypto exchanges operating in the EU, with penalties for noncompliance reaching up to 12.5% of an exchange's annual turnover.

Ledger Cuts Workforce Amid Economic Strain

Crypto hardware wallet manufacturer, Ledger, has cut 12% of its employee workforce due to "macroeconomic headwinds." The decision was made to ensure the longevity of the business amid limited revenue generation. Ledger recently partnered with Sotheby's to provide its hardware wallet to top NFT collectors.

Top Altcoin Gainers and Losers

Gainers:

Toncoin TON (+7.52%)

Aave AAVE (+6.10%)

THORChain RUNE (+5.94%)

Losers:

Radix XRD (-8.40%)

Gala GALA (-6.79%)

Kaspa KAS (-4.90%)

NFT Market Map

OpenSea Sales Volume Hits Yearly Low

In September, sales volume for Ethereum and Polygon NFTs on OpenSea hit their lowest point this year. Ethereum sales fell by 98% since February, while Polygon sales dropped by 95%. The number of traders and monthly trading volume on Blur outpaced OpenSea.  

Trump's NFT Sales Skyrocket Amid Speculation

Donald Trump's second NFT collection has experienced a 381% increase in sales within the last 24 hours, amid speculation that he may become the Speaker of the House of Representatives. Trump has acknowledged the requests but stated he is not interested in the role. The NFT collection features Trump in various poses and settings and currently has 6,709 owners.  

Doge-Inspired Statue and Community Plans

An engaged NFT community plans to unveil a statue in Sakura, Japan, on November 2 to honor Kabosu, the dog that inspired the Doge meme. The community also hopes to place the statue on the moon in the future and aims to become the online gathering place for the Doge and meme community. Moreover, the community is working on a doge documentary and donates to charities through the proceeds from their NFT collections.

This article has been refined and enhanced by ChatGPT.