Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 19, 2023

Crypto Market Update

Written by Van

Table of Contents

Banking and Investment Updates

• Nomura's Big Bet on Bitcoin Adoption
• Hodlnaut Rejects $30M Buyout from OPNX
• Optimism's Third Airdrop: A Success Story
• BlackRock's Take on Federal Reserve's Next Move

Crypto Exchanges and Platforms

• FTX's Family Ties: Behind-the-Scenes Drama
• Circle Expands USDC to Polkadot Ecosystem
• DWF vs Wintermute: Market Manipulation Allegations
• SEC vs Binance.US: Judge Says No
• Legal Woes for FTX and Binance.US

Regulatory and Country-Specific Developments

• Thailand's Crypto Tax: A Double-Edged Sword
• Fed's Losses Could Boost Crypto Demand
• UK's Crypto Seizure Bill Nears Approval

Market Trends and Price Analysis

• Bitcoin's Price Rollercoaster: The Mt. Gox Effect
• Ethereum's Staking Dilemma
• Canto's Migration to Ethereum Layer 2
• Tether's $1 Billion Liquidity Boost for Tron

Community and Cultural Impact

• Honda's NFT Adventure in the Metaverse
• Nouns DAO Split: A Community Divided
• Stoner Cats NFT: SEC's Million-Dollar Fine

Nomura's Big Bet on Bitcoin Adoption

Nomura, Japan's largest investment bank, has launched the Bitcoin Adoption Fund, offering institutional investors direct exposure to Bitcoin. The long-only fund is the first in a series of digital adoption investment solutions by Nomura's digital asset subsidiary, Laser Digital Asset Management. 

With over $500 billion in assets, Nomura is a trusted financial giant in Japan. The fund aims to capture the long-term potential of Bitcoin amid a growing interest in Bitcoin-based investment products globally.  

Hodlnaut Rejects $30M Buyout from OPNX

The interim judicial managers of Hodlnaut have rejected a $30 million buyout offer from OPNX. The offer included Flex (FLEX) tokens, which have lost 90% of their value. Concerns were also raised about the lack of cash injection, repayment timeline, and payment details for creditors.  

Optimism's Third Airdrop: A Success Story

Optimism has successfully distributed its third airdrop, distributing over $26 million worth of OP tokens to 31,870 unique addresses. The airdrop targeted users who delegated their tokens' voting power to incentivize active participation in governance. This is the third airdrop from Optimism, and more are planned in the future.

BlackRock's Take on Federal Reserve's Next Move

BlackRock expects Federal Reserve Chair Jerome Powell to pause interest rate hikes at the next Open Markets Committee Meeting, keeping the door open for future hikes. Rates are predicted to stay in restrictive territory until mid-2024 before the central bank recalibrates them towards a neutral position.

The Fed is unlikely to cut rates this year unless there is a deterioration in the economy, lower GDP, and a lower unemployment rate. High interest rates are expected to lead to an increase in the issuance of junk bonds by companies.

FTX's Family Ties: Behind-the-Scenes Drama

Sam Bankman-Fried's parents have been sued by the FTX Bankruptcy Estate for allegedly misappropriating millions of dollars from the cryptocurrency exchange. A new court filing in the bankruptcy case of crypto giant FTX suggests that the father of FTX CEO Sam Bankman-Fried played a behind-the-scenes role in running the company. 

The filing alleges that Bankman's father, Joe Bankman, was paid a $200,000 salary by FTX's US division but expected to receive $1 million annually. The filing also claims that Bankman-Fried gifted his parents $10 million and a $16.4 million property in The Bahamas.

Circle Expands USDC to Polkadot Ecosystem

Circle has launched the native version of its USDC stablecoin on the Polkadot ecosystem. This expands the availability of the stablecoin to new blockchains and allows users to redeem it 1:1 for US dollars. Polkadot-based projects like Centrifuge, HydraDX, and Moonbeam are now offering USDC to users. USDC is already available on other blockchains including Ethereum, Solana, and Tron.

DWF vs Wintermute: Market Manipulation Allegations

Crypto firm DWF has denied allegations of market manipulation made by rival Wintermute in the ongoing feud between the two companies. Wintermute claims that DWF manipulates markets rather than providing liquidity, while DWF insists that market dynamics drive anomalies in the crypto industry. DWF recently received a large token transaction from Abracadabra-Money, prompting further speculation and conversation about potential market manipulation.

SEC vs Binance.US: Judge Says No

A U.S. district judge has rejected the SEC's request to inspect Binance U.S. documents. The request was related to access to documentation and communication with custodial service providers. The judge also asked for more documentation from Binance U.S. and expressed doubts about the exchange's control over its assets.

Binance.US CEO Changpeng Zhao (CZ) claimed that Binance.US never used Ceffu or Binance Custody, contradicting the SEC's concerns. However, a confidential document submitted by Binance.US stated that Ceffu's software made up the majority of their wallet technology. The SEC referred to Ceffu as a "mysterious Binance-related entity," and criticized BAM for not fully understanding its role.  

Thailand's Crypto Tax: A Double-Edged Sword

Thailand plans to tax foreign income from cryptocurrency traders as part of its efforts to pay for economic stimulus measures. The tax would target Thais and foreign nationals living in the country for over 180 days a year. The move has raised concerns among expats and financial experts, who worry it could alienate private bankers and financial institutions. 

The tax policy could also discourage foreign investment. The government has proposed a 10,000 THB airdrop to eligible citizens using blockchain wallets, which will cost an estimated 2 trillion baht.

Fed's Losses Could Boost Crypto Demand

The US Federal Reserve has reported $100 billion in losses due to interest payments surpassing earnings. This could lead to increased demand for Bitcoin and other cryptocurrencies as a hedge against inflation. The US government's debt ceiling and unsustainable levels of debt further support this trend.  

UK's Crypto Seizure Bill Nears Approval

The UK's Economic Crime and Corporate Transparency Bill has moved to the final stages of approval by the House of Lords. If passed, the bill will give local authorities more power to freeze and confiscate crypto assets associated with crime. It aims to quickly seize crypto assets used for money laundering, drug trafficking, cybercrime, and terrorism. Currently, such assets can be frozen but not seized unless there is an arrest or conviction.

Bitcoin's Price Rollercoaster: The Mt. Gox Effect

Bitcoin's recent price bounce is attributed to rumors of a delay in Mt. Gox repayments until 2024. QCP Capital predicts a short-lived spike and a target of $22,000 on BTC’s cryptocurrency charts by October. However, global risks, including a potential U.S. government shutdown and rising oil prices, may weigh on the crypto market. 

As BTC reached $27,000 for the first time in two weeks, shaking up crypto coin prices, long-term Bitcoin holders are accumulating coins sold by short-term holders, as shown by on-chain data. Short-term holders are offloading their assets, while long-term holders are capitalizing on the opportunity to buy. Over 10,000 bitcoins have been transferred from exchanges to cold wallets.  

Ethereum's Staking Dilemma

The Merge upgrade has not only made Ethereum more energy-efficient but has also significantly impacted the Ethereum market cap due to its surge in staking popularity. However, this increase in staking is posing challenges to the network's capacity. Data suggests that up to 50% of all Ether tokens could be staked by May and potentially 100% by December 2024. 

To address the issue, Ethereum developers have agreed to cap the number of new validators joining the network. The reliance on staking has grown due to its reliable returns in the crypto market, but the situation may make it difficult for new players to enter the staking market. 

An Ethereum whale also deposited 6,000 ETH, worth $9.96 million, on the Kraken crypto-exchange. This often indicates bearish market sentiment, but some believe Ethereum's price may experience a bull run. 

Canto's Migration to Ethereum Layer 2

Canto, a Cosmos-based layer 1 network, plans to migrate to Ethereum as a layer 2 network. The move resulted in a 13% increase in the CANTO token price at one point. Canto will utilize the Polygon Chain Development Kit to build a zero-knowledge rollup on Ethereum Layer 2. Other networks are also embracing Ethereum's layer 2 ecosystem, with specialization and growth observed in various domains.  

Tether's $1 Billion Liquidity Boost for Tron

Blockchain trackers have identified a $1 billion authorization of Tether (USDT) in Tether's Treasury, which will provide liquidity for the Tron network. Tether's CTO clarified that the tokens will be used for ongoing TRON issuance requests and chain swaps, and that the authorization is not an actual issuance. With a market cap exceeding $83 billion, Tether dominates the stablecoin sector, setting the standard for crypto price stability.

Top Altcoin Gainers and Losers

Gainers:

Toncoin TON (+7.12%)

GMX GMX (+5.19%)

Conflux CFX (+4.08%)

Losers:

Nexo NEXO (-1.66%)

Rollbit Coin RLB (-0.89%)

FTX Token FTT (-0.64%)

NFT Market Map

Honda's NFT Adventure in the Metaverse

Honda has announced a partnership with Animoca Brands Japan and other companies to engage fans in the Web3 and metaverse through the distribution of NFTs. This follows Honda's previous foray into the Web3 world with the creation of its metaverse in the Fortnite video game. 

Animoca Brands has also reported a significant surge in deferred revenue and has invested in AI startups. Additionally, Animoca Brands subsidiary Darewise Entertainment has announced the launch of a new Bitcoin-based metaverse crypto.

Nouns DAO Split: A Community Divided

More than half of Nouns DAO members defected to a "forked" version of the project, resulting in a significant outflow of assets and a sell-off. The forked Nouns DAO saw its treasury decrease from 16,750 to 7,700 ether in just three days due to ragequitting. Despite this, the idea behind the Nouns fork is still seen as useful in protecting minority token holders.

Stoner Cats NFT: SEC's Million-Dollar Fine

Stoner Cats NFT collection, associated with a six-episode animated TV show, faced a $1 million fine from the SEC for illegally selling unregistered assets. Despite being delisted from major NFT marketplaces like Opensea and Blur, the collection's floor price surged by 209%. Legal implications for NFTs and celebrity endorsements in the space are being reevaluated.  

This article has been refined and enhanced by ChatGPT.