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

Crypto Market Update

Written by Van

Table of Contents

Crypto Market and Blockchain Updates

• Visa Embraces Solana for USDC Payments
• Coinbase Ups Debt Buyback Amid SEC Litigation
• Nima Capital's SYN Token Sale Sparks Controversy
• KEB Hana Bank and BitGo Boost Korean Crypto Services

Crypto Exchanges and Platforms

• Axie Infinity Token Holders Face Losses
• MetaMask Unveils Cash Out Feature
• Connext Network Airdrop Exploited for Quick Profit
• Massive Ethereum Transfer to Coinbase
• Swyftx Rewards Users for Learning Crypto Scams
• Uniswap Whale Causes UNI Token Fluctuations
• Speculation Rises Over XRP Transfers on Binance
• Stake Casino Reopens After $41M Hack

Banking and Regulatory Updates

• Genesis Global Shuts Down OTC Trading Platform
• Tether Climbs the Ranks in US Treasury Holdings
• Circle Expands USDC to Layer 2 Networks

Country-Specific Developments

• Bitcoin Price Dips Amid Oil Production Cuts
• Filecoin Chosen for Cardiac Research Data Storage
• Lido on Solana Faces Financial Crunch

Future Tech and Innovations

• Vitalik Buterin Envisions Mobile Full Nodes
• Casio Enters Metaverse with Virtual G-Shock
• Sorare Debuts 3D Football Player Cards

Visa Embraces Solana for USDC Payments

Visa has expanded its support for USD Coin (USDC) payments settled on the Solana blockchain. The integration of USDC into Visa's ecosystem allows for faster cross-border settlement and provides more options for merchants to receive funds.

Visa has been experimenting with USDC since 2021 and has carried out pilots with issuers and acquirers. The move marks a key step in bridging traditional finance with Web3.

Meanwhile, investors have been withdrawing funds from cryptocurrency investment products but are still showing interest in Solana (SOL), with $700,000 invested in the coin over the past week. This makes SOL the most popular altcoin among investors, with year-to-date inflows totaling $26 million.

In contrast, investors have been pulling money out of Polygon and Ethereum. Additionally, cryptocurrency charts are buzzing as last week saw trading volumes soar above the average, hitting a robust $2.8 billion. Solana is a blockchain used for decentralized applications and has been gaining traction recently.

Coinbase Ups Debt Buyback Amid SEC Litigation

Cryptocurrency exchange Coinbase has increased its debt buyback offer from $150 million to $180 million. The offer is for the repurchase of its 3.625% senior notes due in 2031. As of now, $50 million in notes have been accepted, and $211 million in notes remain tendered.

Coinbase reported a net loss of $430 million for Q1 2022 and a decrease in customer count, causing a sell-off of its stock and bonds. However, it managed to beat estimates in August with a reduced net loss of $97 million. The exchange is currently involved in litigation with the SEC. 

Nima Capital's SYN Token Sale Sparks Controversy

Venture capital firm Nima Capital has allegedly sold over 9M SYN tokens, leading to speculation and scrutiny from market observers and developers. Synapse Labs, the creator of the SYN token, confirmed the sale and stated that it is investigating the activity. Nima Capital's website is currently offline.

In March, Nima Capital was named as a liquidity provider under a proposal, providing $40M of stablecoin liquidity in return for various benefits. The price of SYN has since fallen by approximately 9%. The protocol’s TVL also fell by 18.26% to $114M in the past 24 hours.

KEB Hana Bank and BitGo Boost Korean Crypto Services

South Korean bank KEB Hana has partnered with BitGo to enhance their digital asset services and promote crypto adoption. BitGo will open a branch in South Korea in 2024.

South Korea has been proactive in creating a favorable regulatory environment for cryptocurrencies, passing legislation and forming investigation teams to ensure investor protection. The country aims to establish itself as a major crypto hub in Asia. 

Axie Infinity Token Holders Face Losses

Axie Infinity's native token, AXS, has seen a decline in value, causing significant losses for token holders. Data shows that 99.54% of AXS addresses are currently in a state of loss. Despite this, the game continues to exhibit positive on-chain metrics, and investors remain optimistic about its growth potential. However, the project faces challenges in returning to its all-time high.

MetaMask Unveils Cash Out Feature

Popular hot wallet MetaMask has introduced a "cash out" function that allows users to convert their cryptocurrencies into fiat currency and have the funds sent to their bank accounts.

The feature currently supports ETH on Ethereum mainnet and is available in the US, UK, and parts of Europe, with plans to expand to Layer 2 networks in the future. Additionally, converted fiat can also be added to users' PayPal balances.

Connext Network Airdrop Exploited for Quick Profit

The Connext Network protocol is under scrutiny after a wallet exploited its native token airdrop with a sybil attack, claiming more than 200 tokens by creating multiple wallets. The wallet quickly converted the tokens into USDT and ETH, making a profit of $38,000. The attack caused the airdrop user interface to go offline and there were 57,000 registered wallets for the airdrop.

Massive Ethereum Transfer to Coinbase

The Ethereum market cap is making waves as nearly half a billion USD has been shuttled to Coinbase, marking the highest on-chain transaction volume since June. The transfers, totaling 300,000 ETH, were distributed to multiple wallets after hitting a hot wallet.

Additionally, an anonymous whale has been buying Ethereum on the dip since July, acquiring almost 10,000 ETH during the recent price drop.

Swyftx Rewards Users for Learning Crypto Scams

Australian crypto exchange Swyftx launches "Earn and Learn" platform, rewarding users for completing crypto scam courses. The platform will help users identify different scams and give them a checklist to assess token utility.

The first 4,000 people to complete the first course will receive AUD 5 in Bitcoin, with AUD 100 total rewards available to each participant over the next 12 months.

Uniswap Whale Causes UNI Token Fluctuations

Today, a Uniswap whale deposited 850,000 UNI tokens into Binance, worth approximately $3.76 million. The same whale received 5.44 million UNI tokens with a combined value of around $24 million. This transaction caused a surge in UNI token inflows on Uniswap. Crypto coin prices are in the spotlight as the price of UNI faces a 1% drop, nudging it into oversold territory.

Speculation Rises Over XRP Transfers on Binance

The cryptocurrency tracking platform WhaleAlert reported a $20.3M withdrawal of XRP tokens from Binance, the world's largest crypto exchange. However, it was later revealed that the tokens were transferred to another wallet within Binance.

This led to speculation about a market move, but the XRP price actually declined after the transfer. Similar large transfers of XRP have been occurring in recent weeks, but it is uncertain whether they signal a shift in the market or are routine exchanges.

Stake Casino Reopens After $41M Hack

Crypto casino Stake has reopened withdrawals after a reported $41 million hack. Reports indicate on-chain activity by the attacker, and security firms have confirmed the theft. The stolen funds include approximately $15.7 million on Ether, $7.85 million on Polygon, and $17.75 million on Binance Smart Chain. Stake has yet to confirm if the funds are missing. 

Genesis Global Shuts Down OTC Trading Platform

Genesis Global Trading, a US-based spot crypto trading business, will be shutting down its over-the-counter trading platform. The closure is voluntary and for business reasons, and all trades must be settled by September 21, with accounts being closed by the end of the month. The company's derivative trading services will continue to operate.

Tether Climbs the Ranks in US Treasury Holdings

Tether, the stablecoin issuer, now holds $72.5 billion in US Treasury bills, making it one of the top 22 holders globally. This places Tether above countries like Spain, Mexico, Australia, and the United Arab Emirates.

Tether's exposure demonstrates the growing importance of USDT in emerging markets as a safeguard against inflation in national currencies. 

Circle Expands USDC to Layer 2 Networks

Stablecoin issuer Circle has deployed USDC on Layer 2 networks OP Mainnet and Base, expanding the availability of the dollar-backed stablecoin. Businesses can now use on/off-ramps for USDC on these networks without bridging through the Ethereum network, potentially reducing fees. USDC is now available on a total of 11 blockchains.

Bitcoin Price Dips Amid Oil Production Cuts

Crypto price fluctuations are evident as Bitcoin's value dips below $25,700 at one point, hitting its lowest level since mid-March. Crypto analyst Will Clemente describes the current state as apathetic, pointing out low trading volume and Google search trends.

Additionally, the extension of oil production cuts by Saudi Arabia and Russia suggests higher oil prices, potentially leading to increased inflation and interest rates, which could have a bearish effect on bitcoin prices. The next official U.S. inflation report will be released on September 13. 

Filecoin Chosen for Cardiac Research Data Storage

The Victor Chang Cardiac Research Institute in Australia has chosen Filecoin as its preferred method for storing its extensive research data. The institute has stored around 137 terabytes of cardiac research data with Distributed Storage Solutions, a provider on the Filecoin network.

Filecoin offers cost savings compared to on-premises storage systems and cloud-based solutions. The decentralized nature and emphasis on data integrity make Filecoin suitable for the institute's needs. Filecoin has onboarded 1.5 exabytes of data, equivalent to 1.7 billion gigabytes.

Lido on Solana Faces Financial Crunch

Lido on Solana may have to shut down unless it receives financial support from the Lido DAO community. The project is seeking funding of $1.5 million over the next year to sustain its operations and expand. The team has made significant progress but is facing a financial deficit.

If funding is not secured, the project will wind down and cease operations in early 2023. On the contrary, the total value of assets locked (TVL) in liquid staking projects has reached almost $20 billion, outpacing other decentralized finance sectors.

Lido's Ethereum TVL has surged to an all-time high of 8.63 million, despite a previous setback. The growth is attributed to the Ethereum Shanghai upgrade and regulatory actions against centralized staking providers.

Vitalik Buterin Envisions Mobile Full Nodes

Ethereum co-founder Vitalik Buterin believes that future upgrades to the network could allow full nodes to run on mobile devices, improving decentralization and scalability. Currently, full nodes require powerful hardware, leading to centralization.

Buterin highlighted the concept of "stateless clients" using "Verkle Trees" as a way to reduce hardware requirements for running full nodes. However, he acknowledged that there are technical challenges to implementing this and that it may take several years.

Other challenges mentioned include the need for a more widespread distribution of staked ETH and improved documentation for developers and users. Buterin also emphasized the importance of scalability, with progress being made through the adoption of rollup solutions.

Top Altcoin Gainers and Losers

Gainers:

NEO NEO (+6.12%)

Stacks STX (+5.11%)

Solana SOL (+4.86%)

Losers:

Rollbit Coin RLB (-5.49%)

Toncoin TON (-5.36%)

Mantle MNT (-3.80%)

NFT Market Map

asio Enters Metaverse with Virtual G-Shock

Casio is launching Virtual G-Shock, a blockchain-based program in partnership with Polygon Labs, to expand its G-Shock watch brand into the metaverse.

The program will begin with the release of 15,000 free-to-mint G-Shock Creator Pass NFTs, allowing holders to access the program's Discord channel and enter a co-creation competition to design variant passes.

The NFTs will be minted on Polygon and will be available for users with a Casio ID from September 23-26, followed by a public mint from September 26-29. Casio aims to introduce its watch brand to virtual and online worlds.

Sorare Debuts 3D Football Player Cards

Fantasy sports platform Sorare has launched 3D digital football player cards with integrated augmented reality (AR) capabilities. Users can interact with their 3D cards via the SoRare App, whether at a stadium or at home. The cards will be available for auction from 13 September and feature players from the English Premier League. 

Sorare also launched a global scavenger hunt to appeal to a wider audience of sports fans. The company has over 5 million users across 180 countries and is valued at $4.3bn.

This article has been refined and enhanced by ChatGPT.