Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 9, 2023

Crypto Market Update

Table of Contents

Regulatory and Banking Updates

• FCA Flags Crypto Firms in the UK
• Bitcoin Dips Amid Middle East Tensions

Legal and Governance Issues

• FTX's Controversial Insurance Fund and Legal Woes
• Former OpenSea Employee Accused in AnubisDAO Scandal

Country-Specific Developments

• Upbit Faces Surge in Hacking Attempts
• Crypto Investment Inflows Skyrocket, Led by Bitcoin and Solana

Crypto Exchanges and Platforms

• Ethereum Foundation Wallet Triggers ETH Price Drop
• Bitmain Halts Salary Payments Amid Cash Flow Crisis
• HTX Hacker Returns Stolen ETH, Rewarded by Exchange
• Deribit to Launch Linear Options on XRP, SOL, and MATIC

Market Trends and Financial Health

• Ethereum's Supply Rises Due to Lower Transaction Costs
• Yuga Labs Faces Royalty Revenue Drop, Losing to Blur

FCA Flags Crypto Firms in the UK

The UK's Financial Conduct Authority (FCA) has flagged 143 crypto firms as "non-authorized," urging locals to steer clear. In response to new regulations, many of these firms have updated their platforms to include risk disclaimers and a 24-hour cooling-off period for new users. 

Meanwhile, major exchanges like Coinbase, OKX, and Binance are partnering with UK-regulated firms like Archax and Rebuilding Society to continue serving UK customers under the new FCA rules. These partnerships aim to get financial promotions approved, ensuring compliance with the FCA's updated guidelines.

Bitcoin Dips Amid Middle East Tensions

Amid Middle East tensions affecting financial markets, Bitcoin's value dipped to under $27,500. The geopolitical unrest also led to a surge in oil prices and a stronger U.S. dollar. 

Meanwhile, the crypto community in Israel has mobilized to create Crypto Aid Israel, a multi-signature wallet initiative to help war-affected citizens. The fund accepts multiple cryptocurrencies and is supported by Israeli banks and crypto firms like Fireblocks and MarketAcross.

FTX's Controversial Insurance Fund and Legal Woes

FTX's co-founder Gary Wang revealed that the exchange's insurance fund size was artificially inflated using random numbers and daily trading volume, not reflecting the actual fund balance. 

Meanwhile, prosecutors in Sam Bankman-Fried's trial deem his $500M stake in AI startup Anthropic as irrelevant, focusing instead on allegations of wire fraud and misappropriation of FTX customer deposits. Both cases spotlight governance and transparency issues in the crypto space.

Former OpenSea Employee Accused in AnubisDAO Scandal

A former OpenSea employee has been accused of involvement in the AnubisDAO rug pull, but OpenSea denies any knowledge of his alleged activities. AnubisDAO raised $60M in 2021 before the funds were sent to different wallets, resulting in losses for investors. Critics question the validity of the accusations.  

Upbit Faces Surge in Hacking Attempts

In the first half of this year, Upbit, South Korea's largest exchange, dealt with nearly 160,000 hacking attempts, averaging 879 per day. The parent company, Dunamu, reported the findings to the National Assembly, but specific attack methods were not disclosed. 

Last year's attempts were 73,200 cases, making this year's attempts 2.17 times higher. Upbit is known for its high trading volumes and speculative rallies on listed tokens.  

Crypto Investment Inflows Skyrocket, Led by Bitcoin and Solana

Crypto investment is booming, with Bitcoin and Solana leading the charge. Bitcoin saw a four-fold increase in inflows to $43 million, while Solana raked in $24 million, its highest since March 2022. Trading volumes for crypto exchange-traded products surged 37%. 

Europe dominated the inflow scene, contributing 90% of total investments. Meanwhile, Ethereum's new futures-based ETFs had a lukewarm reception, pulling in just under $10 million.

Ethereum Foundation Wallet Triggers ETH Price Drop

Ether crypto price, along with Ethereum market cap, dropped by 3.4% after a wallet belonging to the Ethereum Foundation sold a portion of its allocated tokens. The wallet swapped over 1,700 ETH for $2.7 million in USDC, causing ETH to extend losses by 1.8% in the past 24 hours. The Ethereum Foundation has not yet disclosed its intentions for the proceeds.

Bitmain Halts Salary Payments Amid Cash Flow Crisis

Chinese Bitcoin ASIC manufacturer Bitmain has reportedly paused employee salary payments for September due to a lack of positive cash flow. The company is known for its Antminer ASIC series and had a 70% market share at its peak. Co-founder Jihan Wu settled an ownership dispute with Micree Zhan earlier this year.  

HTX Hacker Returns Stolen ETH, Rewarded by Exchange

The hacker who exploited crypto exchange HTX last month has returned the stolen funds of approximately 5,000 ETH. HTX paid the hacker a "whitehat bonus" of 250 ETH ($400,000) as a reward for returning the funds. The hacker also provided a message advising the exchange on improving its security measures.

Deribit to Launch Linear Options on XRP, SOL, and MATIC

Deribit, a cryptocurrency derivatives exchange, plans to offer "linear options" on XRP, SOL, and MATIC starting in January. The company aims to apply for a brokerage license in the European Union and plans to relocate to Dubai. 

Despite low market volatility, Deribit remains optimistic about increased volatility in January. The exchange holds an 85% market share in the options space, primarily serving institutional clients.

Ethereum's Supply Rises Due to Lower Transaction Costs

The global supply of Ethereum (ETH) has increased by 30,000 ETH in the past 30 days due to a decline in transaction flow on the Ethereum network. Lower gas fees on the network have resulted in less ETH being burned, leading to concerns about Ethereum's long-term financial health. 

However, Ethereum's core developers do not appear to be worried about the development and consider it insignificant in the grand scheme of things.

Top Altcoin Gainers and Losers

Gainers:

dYdX DYDX (+1.31%)

Tether Gold XAUT (+0.89%)

Losers:

Rollbit Coin RLB (-11.13%)

FTX Token FTT (-7.56%)

Ocean Protocol OCEAN (-7.48%)

NFT Market Map

Yuga Labs Faces Royalty Revenue Drop, Losing to Blur

Yuga Labs, a top NFT studio, experienced a significant decline in quarterly royalty revenue, dropping from $8.7 million to $2.5 million, following Blur's introduction of a 0.5% royalty fee. Blur's incentives and lower transaction costs attracted traders, redirecting user activity from higher-fee platforms like OpenSea. This shift reshaped the NFT marketplace.  

This article has been refined and enhanced by ChatGPT.