Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | August 10 - August 16, 2024

Crypto Weekly Market Update

Table of Contents

Market Movements and Trends

• Crypto Weekly Recap

BlackRock and Tether Developments

• BlackRock Surpasses Grayscale in Crypto ETF Holdings
• Tether Faces $3.3 Billion Lawsuit from Celsius

Exchange and Token Updates

• Coinbase Introduces cbBTC, Challenging WBTC's Dominance
• MetaMask and Mastercard Launch Global Crypto Debit Card
• Grayscale Launches Fund Focused on MakerDAO's MKR Token
• TON Ventures Raises $40 Million for TON Blockchain Projects

Layer 2 and Protocol Developments

• Arbitrum DAO Approves Liquid Staked ARB Token Proposal
• Uniswap Labs Surpasses $50 Million in Front-End Fees

Regulatory and Compliance Updates

• Binance Settles Compliance Issues and Resumes Global Operations
• EigenLayer Faces Controversy Over Airdrop Policy

Country-Specific Crypto Initiatives

• Worldcoin Partners with Malaysian Government for Digital ID

Exchange Hack and Recovery

• WazirX Nears Completion of Post-Hack Trade Reversals

Political and Financial Disclosures

• Trump Discloses $7 Million Earnings from NFTs and Crypto

NFT Market Trends

• NFT Trading Resurges on Solana, Ethereum, and Bitcoin
• Solana’s DeGods NFT Collection Sees 179% Monthly Surge
• Sotheby’s to Auction CryptoPunk and Beeple NFT

Crypto Weekly Recap

Bitcoin:

• Weekly change: -4.5%
• BTC fell to $58,000 from $61,800 after institutional investors stopped receiving USDT from Tether Treasury, leading to market fears of a bearish turn.
• Spot BTC ETFs saw a $3.44M outflow as of August 15, compared to $169.03M in the week of August 9 and $80.69M in the week of August 2.
• BTC briefly reclaimed $60,000 during the Trump-Elon Musk conversation on X but traded flat without discussing crypto.
• Later, BTC surged past $61,500 after dipping to $58,700 due to a $2B transfer from a Mt. Gox-associated wallet.
• BTC remained around $61,500 until July’s CPI showed inflation dropping to 2.9%, with the price then falling to $59,000 as the market reacted.
• The US government’s transfer of 19.8K BTC to Coinbase Prime contributed to the price drop, though the funds might not be sold immediately.
• Bitcoin and Ethereum saw reduced capital inflows, with $6 billion moving to stablecoins, indicating market caution, according to Glassnode.
• Kamala Harris's crypto town hall faced criticism for lack of engagement, but her election odds surpassed Trump’s by 10%. Trump named Howard Lutnick to lead his potential transition team.

Ethereum:

• Weekly change: -3.47%
• Spot ETH ETFs saw a second week of inflows, with $836.54K this week and $104.76M last week.
• Digital asset investment products had $176M in inflows during a market correction. Ethereum led with $155M, its best performance since 2021.
• ETH dropped from $2,700 on Sunday to a weekly low of $2,528 on Monday, while the SEC delayed the Hashdex Bitcoin-Ethereum ETF decision again.
• Fear grew as a whale continued a $154M dumping spree with a 5K ETH deposit to OKX. However, other whales were buying, including one who purchased 5,000 Ether for over $12.8M, and another who accumulated nearly $100M in ETH in under two months.
• Ethereum gas fees hit a five-year low as Layer-2 adoption surged, making transactions cheaper. Ethereum’s inflation increased with 57,000 new tokens added in the past 30 days as of Tuesday.
• After an initial drop, ETH recovered to $2,700 by the end of Monday, traded between $2,600 - $2,700 until Wednesday, then spiked to $2,760 before falling to $2,646 within two hours after the CPI release.
• ETH dropped further to $2,538 on Thursday night due to broader market reactions to large BTC transfers by the US government.
• The bearish trend persisted with a $39.21M outflow from ETH ETFs on August 15, raising concerns about further dumps.

Altcoins:

• NYSE American LLC withdrew its proposal to list and trade options on spot Bitcoin ETFs.
• DRW disclosed nearly $200 million in crypto ETF holdings, primarily in ETHE.
• El Salvador’s Bitcoin City port transformation secured $1.6 billion in investment.
• BlackRock considered launching a native L2 network compatible with Ethereum.
• Optimism developed a native interoperability system for Layer 2 chains.
• A crypto user mistakenly paid a $90K fee for a $2K ETH transfer.
• Crypto startup funding grew to $2.7B in Q2 despite a drop in the number of deals.
• SushiSwap reported growing bad debt on the defunct Kashi Lending platform.
• The Lido community voted to bring stETH to the BNB Chain.
• NetMind.AI entered a strategic partnership with io.net to enhance AI solutions.
• Symbiotic launched its devnet, planning a full mainnet in Q3.
• deBridge Finance launched an airdrop checker tool.
• Bybit and DMCC extended their partnership to strengthen Dubai’s crypto ecosystem.
• Euler allocated $4M for security, conducting 29 code audits for v2.
• 83% of transactions on Jupiter Aggregator failed.
• Helium partnered with major U.S. carriers to offload traffic.
• Bithumb allowed customers to open bank accounts via its app.
• The SEC accused NovaTech of orchestrating a $650 million crypto fraud.
• Three Arrows Capital liquidators sued Terraform Labs for $1.3B.
• Singapore’s DBS bank rolled out a blockchain-powered ‘treasury tokens’ pilot.
• Theta Labs received a U.S. patent for off-chain verification of distributed computing tasks.
• Binance.US faced a renewed lawsuit over alleged HEX price manipulation.
• Hamster Kombat skipped VC fund offers and criticized 'exit liquidity' practices.
• Kelp DAO launched ‘Gain Vault’ to maximize L2 airdrop rewards.
• Pump.fun achieved a record monthly high of $28.73M in agreement income.
• Hedera partnered with Copper to enhance institutional access to HBAR tokens.
• Curve Finance marked its 4th anniversary by reducing CRV emissions.
• ezBtc's founder misappropriated $9.5M in crypto funds.
• Tether invested $3 million in Kem app to boost Middle East financial inclusion.
• Coinbase re-entered Hawaii following state regulatory changes.
• Exodus expanded wallet capabilities with Blockchain.com integration.
• ASX faced a lawsuit over statements about its abandoned blockchain project.
• Crypto.com became an official UEFA Champions League partner.
• Nigeria’s $37M USDT freeze linked to MEXC and KuCoin hot wallets.
• dYdX enabled permissionless listing with a new update.
• Solana Meme Coin Gigachad rose after a meme model endorsement.
• Neon EVM introduced a new loyalty points program.
• Renzo entered Solana liquid restaking, launching ezSOL on Jito.
• User activity on Near dropped to a multi-month low.
• Six Malaysians were charged with kidnapping, demanding $1M in Tether as ransom.
• Tokenized RWA reached $3B without including stablecoins.
• A man was sentenced to prison after spending most of $6.9M mistakenly sent by a major crypto exchange.
• Users claimed ZKasino still hasn’t returned ETH months after claims opened.
• Cronos zkEVM debuted on Alpha Mainnet on ZKsync.
• Circle planned to enable NFC contactless payments for USDC on iPhones.
• A memecoin mastermind likely made $3M from ‘Celeb meta’—ZachXBT reported.
• Bitfinex partnered with Ledger-backed Komainu to enhance crypto trading and custody.
• MANTRA and Novus Aviation Capital led the way in tokenizing aviation assets.
• ZynCoin launched ‘Comfy,’ a physical collectible that earns tokens as rewards.
• Vitalik Buterin donated over $500K in animal-themed coins to charity.
• Base completed Chainlink rollout with data streams and VRF.
• Aave's token price retook $110 as weekly borrowers hit an all-time high.
• Phantom wallet fixed a balance display bug after user concerns.
• Aavegotchi Studio revealed a 'Members Only' Ethereum Layer-3 gaming chain.
• Raise partnered with WalletConnect to offer crypto payment options.
• Justin Sun bet on memecoins with a Tron-based token generator.
• DOGS airdrop date was confirmed with 400 billion tokens.
• The world’s third-largest pension fund invested $80M in MicroStrategy and Coinbase.
• The IMF proposed an 85% power tax hike on crypto and AI data centers.
• The Shiba Inu team announced the official launch date for Shibarium Liquid Staking.
• Synapse's price soared as Binance unveiled futures listing.
• DePin token Aethir surged following South Korean exchange listings.
• Telegram's coin PAAL AI slumped amid crypto whales’ sell-offs.
• BANANA token hit a weekly high after an $8.68M burn and 50x leverage futures launch.
• Sahara Labs raised $37 million in strategic funding.
• Chaos Labs raised $55M as demand grew for on-chain risk management.
• Ion Protocol raised $4.8 million to unlock native yield on rollups and appchains.
• Sling Money raised $15 million in Series A for its stablecoin-based global payment app.
• ParaFi Capital led a $10M Series A into Parfin, a permissioned Ethereum Layer 2 developer.
• Ethereum L2 Essential raised $11 million in Series A funding.

BlackRock Surpasses Grayscale in Crypto ETF Holdings

BlackRock's ETFs have surpassed Grayscale's in Bitcoin and Ether holdings, marking a pivotal moment in crypto markets. As of August 15, 2024, BlackRock controls $21.217 billion, edging out Grayscale's $21.202 billion. This shift is driven by strong net inflows into BlackRock's ETFs and significant outflows from Grayscale's funds. Meanwhile, Goldman Sachs and Morgan Stanley have played key roles, with their investments contributing to a 30% rise in spot Bitcoin ETF holdings in Q2 2024. This trend underscores growing institutional confidence in digital assets despite market volatility, signaling broader acceptance and investment in crypto ETFs.

Tether Faces $3.3 Billion Lawsuit from Celsius

Tether is facing a significant legal battle against Celsius, involving a $3.3 billion lawsuit over alleged mishandling of Bitcoin collateral. Celsius claims Tether improperly sold its Bitcoin at a loss during a market downturn, exacerbating Celsius's financial collapse. Tether disputes these claims, arguing it acted within contractual bounds to protect its interests. The outcome of this lawsuit could redefine stablecoin operations and regulatory standards in the cryptocurrency industry, influencing how firms manage collateral and financial disputes. With both parties entrenched in a legal and financial tussle, the case underscores the high stakes and regulatory scrutiny facing stablecoin issuers like Tether.

Coinbase Introduces cbBTC, Challenging WBTC's Dominance

Coinbase has announced the launch of cbBTC, a new tokenized Bitcoin derivative aimed at competing with WBTC. Backed 1:1 by Bitcoin held in Coinbase custody, cbBTC operates on the Base layer-2 blockchain, targeting enhanced transparency compared to WBTC. With nearly 156,608 BTC worth approximately $9.5 billion already tokenized across ecosystems, cbBTC aims to leverage Coinbase's institutional trust to capture market share in DeFi. While praised for its transparency and institutional backing, cbBTC faces skepticism over potential centralization risks compared to WBTC's established integration in DeFi protocols. Its success hinges on addressing security concerns and regulatory challenges in the evolving crypto landscape.

MetaMask and Mastercard Launch Global Crypto Debit Card

MetaMask has partnered with Mastercard to launch a new crypto debit card, enabling users to spend cryptocurrencies like USDT, USDC, and WETH at Mastercard-accepting merchants globally. The MetaMask Card integrates with users' self-custody wallets, converting crypto to fiat instantly for purchases. Initially rolling out in the EU and UK, with plans for broader availability, the card aims to bridge blockchain and traditional finance seamlessly. This collaboration marks a significant step in crypto adoption, offering security and convenience in everyday transactions. Users can check eligibility through their MetaMask wallets, with a waitlist available for future updates.

Grayscale Launches Fund Focused on MakerDAO's MKR Token

Grayscale launched a fund focused on MakerDAO's MKR token, allowing accredited investors to participate. MakerDAO, a major DeFi platform, currently manages over $7 billion in assets, though its TVL has decreased from $18 billion in 2021 to $4.9 billion. Concurrently, BitGo's CEO reiterated the company's autonomy from Justin Sun amid MakerDAO's decision to reduce its exposure to wrapped Bitcoin (wBTC), driven by concerns over centralized control by BiT Global. Despite MakerDAO's motion, existing wBTC positions will not be liquidated, and the volume of wBTC redemptions remains stable.

TON Ventures Raises $40 Million for TON Blockchain Projects

Ian Wittkopp and Inal Kardan, former members of the TON Foundation, have launched TON Ventures, a venture capital firm focused on the TON blockchain ecosystem. They raised an initial fund of $40 million to support early-stage projects within this ecosystem. Injective integrated with the TON blockchain, enabling interoperability between INJ and TON, enhancing DeFi opportunities on both platforms. Binance added TON to its Launchpool, offering 7,650,000 TON (about $51 million) for staking rewards, with 85% allocated to BNB stakers. TON also partnered with Pyth Network to integrate real-time price data into its blockchain, enhancing gaming and DeFi applications.

Arbitrum DAO Approves Liquid Staked ARB Token Proposal

Arbitrum DAO has approved a temperature check staking proposal, with 91% support from over 25,000 participants, to introduce a liquid staked ARB token (stARB). This proposal aims to enhance governance, increase ARB token utility, and mitigate governance risks. Arbitrum remains the largest Layer 2 network, with a total value locked of $15.3 billion. This follows the Offchain Labs Tandem launch, an incubator division to foster innovation within the Arbitrum ecosystem. Tandem aims to support blockchain infrastructure projects by providing resources, mentorship, and strategic partnerships. 

Uniswap Labs Surpasses $50 Million in Front-End Fees

Uniswap Labs surpassed $50 million in cumulative front-end fees, driven by a fee increase from 0.15% to 0.25% in April, marking a thirteenfold rise since January. Meanwhile, Uniswap facilitated $54 billion of the $154 billion in July’s DEX swap volume. On August 15, 2024, Uniswap Labs announced a $2.35 million auditing competition for its v4 protocol, the largest in DeFi history, aiming to patch vulnerabilities before the launch. Uniswap v4 introduces customizable liquidity pools with "hooks" and aims to reduce fees by consolidating pools into a single contract, despite controversy over its licensing model.

Binance Settles Compliance Issues and Resumes Global Operations

Binance's global compliance efforts continue, marked by cooperation with international regulators. The exchange has resumed operations in India after settling a $2.25 million fine for non-compliance with anti-money laundering regulations. On August 14, 2024, Binance agreed to pay $1.76 million to Brazil's Securities Commission to settle a probe over unauthorized derivatives offerings. Earlier in August 2024, Venezuela blocked Binance due to a dispute over presidential elections. Starting September 2, 2024, Binance will convert delisted tokens, including XMR and TRIBE, to USDC, with users advised to withdraw these tokens before the deadline. 

EigenLayer Faces Controversy Over Airdrop Policy

EigenLayer, a leading Ethereum restaking protocol, experienced a $351 million outflow in 24 hours due to controversy over its airdrop policy, revealed on August 14, 2024. Allegations of extortion, where projects like Renzo and Ether.fi were pressured to provide airdrop tokens to EigenLayer employees, sparked debates. Despite EigenLayer’s denial and policy changes in May 2024, the protocol’s total value locked (TVL) declined. Additionally, EigenLayer is set to launch permissionless ERC-20 token support on its mainnet next week, enhancing crypto-economic security, with user interface updates expected by late Q3 2024.

Worldcoin Partners with Malaysian Government for Digital ID

Worldcoin and Tools for Humanity have partnered with the Malaysian government to enable Malaysians to digitally prove their humanity using Worldcoin's orbs. The memorandum of understanding (MoU) includes plans for local orb manufacturing and integration of World Chain with Malaysia's blockchain infrastructure. Despite privacy concerns, the initiative offers WLD token rewards for participants. In other news, the Ecuador Central Bank issued a stark warning as Worldcoin (WLD) adoption rises in the nation. They emphasized that cryptoassets are not legal tender and prohibited as a means of payment in Ecuador. 

WazirX Nears Completion of Post-Hack Trade Reversals

WazirX announced that it is nearing completion of trade reversals and restoring balances after a July 18 cyberattack that resulted in a $230-$234 million loss. The exchange's scheduled maintenance aimed to finalize these reversals and cancel trades made after the hack. Users expressed frustration over continued withdrawal restrictions, while WazirX faced scrutiny for delayed responses. The bounty program to recover funds received 344 entries. WazirX is migrating assets to new multisig wallets and working with partners to secure funds, while the hacker converted $150 million to Ether.