Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 1 - June 7, 2024

Crypto Weekly Market Update

Table of Contents

Crypto Market Updates

• Crypto Weekly Recap
• Thailand Approves First Bitcoin ETF
• Roaring Kitty Sparks GameStop Frenzy Again
• Robinhood Buys Bitstamp for $200 Million
• Kraken Eyes $100 Million Funding Round

Token and Price Movement

• BNB Chain Token Breaks $700 Barrier
• Iggy Azalea's Token Soars Amid Celebrity Crypto Slump
• Meme Coins See Major Updates and Price Surges

Exchange and Platform Developments

• Binance Reinstates Mastercard Crypto Purchases
• Bybit Allows Crypto Trading for Chinese Expats

Regulatory and Legal News

• DMM Bitcoin Raises $320 Million for Hack Reimbursement
• McDonald's Launches Metaverse in Singapore
• Sotheby's Auctions Unique Bored Ape NFT
• UK Nationals Charged in Evolved Apes NFT Scam
• Dapper Labs Settles NBA Top Shot Lawsuit

Crypto Weekly Recap

Bitcoin

• Weekly change: +3.98%
• BTC stayed above $70,000 this week, driven by positive ecosystem developments and potential Fed rate cuts, boosting investor confidence despite mixed US economic signals. Spot Bitcoin ETFs saw strong net inflows, indicating bullish sentiment.
• Digital asset investment products attracted $2 billion in inflows during May, marking their fourth consecutive week of growth. source
• BTC nearly hit $70,000 on Monday with news of Australia's first spot Bitcoin ETF launching Tuesday and a demand zone between $66,900 and $68,900, where over two million addresses hold 1.1 million BTC. source
• On Tuesday, Bitcoin surged to near $71,000, rallying meme coins like ORDI, DOG, and PUPS as the Thai SEC approved its first Bitcoin ETF. Short-term holder profits dipped by 32%, indicating potential upward movement. source
• Bitcoin rose amid a cooling US job market and bullish futures trading sentiment. The latest JOLTS report showed job openings at a three-year low of 8.06 million, signaling potential hiring slowdown. Stable layoffs and quit rates suggested ongoing job growth.
• On Thursday, Bitcoin surged past $71,000, its highest since May 21, following a near-record flow day for US spot Bitcoin ETFs with $887 million net inflow, the second-highest since their January debut.
• Bitcoin whales dominated the market, controlling over 40% of the total supply, as shown by on-chain data. Since mid-March, large holders with balances over 1,000 BTC steadily accumulated assets. source
• Rumors of Bybit opening access to Chinese investors (later clarified as Chinese expats, not residents) boosted market sentiment.
• On Friday, Bitcoin struggled below $72,000 amid spot selling and short positions buildup. US Bitcoin ETFs saw an 18-day streak of net inflows, and BlackRock's IBIT spot Bitcoin ETF surpassed 300,000 BTC in AUM just five months after launching, with institutions like Semler Scientific committing to buy more. source
• In May, the US added 272,000 jobs, surpassing estimates and showing a robust employment market, leading to a slight rise in the unemployment rate to 4.0%. Economic softness, inflation concerns, and rate cuts in Europe and Canada caused investors to reconsider Fed policy. Bitcoin dipped to $70,600 before bouncing back. Previously, the European Central Bank (ECB) had cut interest rates to 3.75%, aligning with Canada, Sweden, and Switzerland, and anticipating the Federal Reserve (FED).
• Bitfinex analysts anticipated Bitcoin's bull market peaking in Q4 2024, based on historical data showing market tops usually after halving events. The current market value to realized value ratio (MVRV) was around 2.56, with historical peaks above 3.2. Bitfinex projected Bitcoin to reach at least $120,000 this cycle but cautioned against overestimating targets. source
• Willy Woo, an on-chain analyst, predicted a potential rally to $75,000 if Bitcoin broke the resistance at $72,000. source

Ethereum

• Weekly change: +1.4%
• ETH didn't go straight up like BTC but still increased.
• ETH rose on Monday to over $3,800, then pulled back, and rose to nearly $3,900 again on Thursday.
• $3 billion ETH left crypto exchanges after the SEC approved spot ETFs. source
• The main story for ETH this week was spot Ethereum ETFs. K33 Research predicted they could absorb over 1 million ETH in the first 5 months. source
• The Ethereum ecosystem saw a surge, with daily active users increasing almost ninefold since 2020. Despite Ethereum's mainnet having fewer active users, the ecosystem evolved with layer-2 networks. VanEck analysts raised their price target for Ethereum to $22,000 by 2030, citing its revenue potential and expected approval of spot Ether ETFs, signaling growth. source
• This was a week of new altcoin ATHs. BNB, FLOKI, and BRETT were the most notable, recording ATHs. FLOKI and BRETT's impressive moves sparked interest in dog-themed memecoins and Matt Furie's universe memecoins, fueling increases in BENDOG and ANDY.
• As the weekend neared, there was a surge in new Chinese memecoins, creating Chinese versions of popular memecoins like PEPE, FLOKI, SHIB, DOGE, and Boy's Club members, alongside popular Asian memes like Tuzki, Biao, and Quby, and parody/Politifi memecoins of famous Chinese people. This was likely due to Bybit opening to Chinese investors, and Bitcoin environmental analyst Daniel Batten revealed China never officially banned Bitcoin mining. source

Altcoins

• Ethena’s USDe hit $3 billion supply in four months, surpassing FDUSD.
• Frax Finance X account was hacked, CEO suspected an inside job at Elon Musk’s office.
• OKX expanded to the Netherlands with a new crypto exchange and wallet.
• Dubai financial regulator updated crypto token rules for funds.
• Matter Labs dropped controversial ‘zero-knowledge’ trademark effort.
• Bitcoin Layer 2 Ark Protocol's team formed new firm as a Lightning Network competitor.
• StarkWare raised $1 million to scale Bitcoin with zero-knowledge proofs.
• Notcoin market cap surpassed Lido DAO and Celestia, eyeing the top 50.
• Linea planned decentralization after halting block production due to $7M Velocore breach.
• OKX user claimed to have lost $2 million in a deep fake AI scam.
• Japanese blockchain Astar proposed $38M token burn.
• Deutsche Bank partnered with Bitpanda for streamlined crypto transactions.
• Australian regulator scolded over 'misleading' release, must pay costs as Block Earner avoided penalty.
• Interest for ‘Onchain’ term on Google hit record high in May.
• Polygon Labs acquired Toposware, pushing total ZK investment to $1B.
• Avail secured $43M in Series A for Web3 unification.
• IOTA partnered with LayerZero for new EVM-compatible Layer 2.
• FTX might settle its $24 billion IRS tax bill for $200 million.
• Misyon Bank launched tokenization solution on Avalanche.
• M^0 secured $35M Series A round for stablecoin issuance network.
• Coinbase debuted Smart Wallet, aiming to bring 1 billion users to crypto.
• Mina mainnet upgrade unlocked privacy applications.
• Bitget partnered with Sumsub to combat deepfakes scams.
• New Texas Stock Exchange got backing from BlackRock and Citadel, aiming for 2025 launch.
• DWF Labs dumped 7 million TOKEN as TOKEN price jumped 29%.
• Aave topped $20 billion in deposits amid record revenue and fee switch discussions.
• Crypto firms on alert after Tether CEO warned of email list breach.
• Binance, ShapeShift, Kraken refused $9B compensation for Bitcoin SV delisting.
• Crypto startups secured $777 million from VC funds in May.
• ZK-Rollup Taiko airdropped token and reached a $2 billion fully-diluted valuation.
• Paxos International launched yield-bearing stablecoin Lift Dollar (USDL).
• 2x Ether ETF arrived in US, stealing spotlight from traditional spot options.
• Tezos activated 16th upgrade ‘Paris’, boosting throughput and performance.
• Turkey debunked speculation of taxing crypto and stock returns.
• Dora Factory unveiled DORA airdrop for Cosmos Hub stakers.
• EigenLayer TVL surged to $20B, becoming the second-largest DeFi protocol after Lido.
• Survey revealed 90% of Worldcoin users in Spain supported service return.
• Vitalik Buterin-backed Nocturne protocol shut down operations overnight.
• The Sandbox raised $20M at a $1B valuation, SAND rose 4.5%.
• Ondo Finance’s TVL exceeded $500 million after RWA tokenization hearing in Congress.
• Arthur Hayes unstaked nearly $10M worth of PENDLE.
• Core Scientific upheld deal with CoreWeave amid rejecting a $1 billion ‘unsolicited’ buyout.
• Unstoppable Domains and Blockchain.com planned DNS-enabled Web3 domain '.blockchain'.
• Judge might impose ‘extraordinary’ response to Craig Wright’s lies of up to 7 years in prison.
• Franklin Templeton explored altcoin-based private fund with staking rewards.
• Illuvium to launch on 25th of July with new features.
• Gemini tapped Kaiko for enhanced cryptocurrency derivatives trading.
• Telegram debuted TON-linked in-app digital payment token ‘Stars’.
• Base flipped Optimism (OP) as biggest L2 in OP Stack.
• DYdX to complete v5 upgrade next week.
• Sky Mavis recovered $5.7M from Ronin Bridge hack.
• Wormhole launched staking and governance for W token holders.
• Zilliqa 2.0 upgrade enhances speed and cross-chain compatibility.

Thailand Approves First Bitcoin ETF

Thailand's SEC approved the ONE Bitcoin ETF Fund of Funds Unhedged (ONE-BTCETFOF-UI), marking the country's first Bitcoin ETF. Scheduled for distribution from May 31 to June 6, 2024, it targets wealthy and institutional investors. The ETF invests in 11 global Bitcoin funds, emphasizing liquidity and security. With Bitcoin's historical annual return averaging 124% over 11 years, the fund suggests limiting Bitcoin exposure to 5% for an estimated 8.90% annual return. The approval aligns Thailand with global markets, offering new investment avenues. 

Roaring Kitty Sparks GameStop Frenzy Again

Keith Gill, also known as "Roaring Kitty," revitalized the GameStop frenzy with a $300 million position, potentially making him the first GME billionaire. His Reddit post revealed staggering holdings, triggering a $5 billion surge in GameStop's market cap and doubling its stock value. Memecoins like GME, KITTY, and ROAR skyrocketed by over 200%, alongside a surge in Wall Street-themed meme coins. Gill's influence dates back to 2019, igniting the 2021 short squeeze. Despite volatility, his strategic approach earned praise from crypto traders. 

Robinhood Buys Bitstamp for $200 Million

Robinhood's groundbreaking $200 million acquisition of Bitstamp, a renowned cryptocurrency exchange, signifies a pivotal move in its crypto expansion strategy. The acquisition aims to fortify Robinhood's global presence by tapping into Bitstamp's established market positions in Europe and Asia. 

By integrating Bitstamp's diverse offerings such as institutional lending and staking services, Robinhood seeks to attract institutional clientele. Despite regulatory challenges, this acquisition propels Robinhood's trajectory as a full-fledged financial services provider in the crypto sphere, intensifying competition with industry giants like Coinbase and Binance.

Kraken Eyes $100 Million Funding Round

Kraken, a US-based cryptocurrency exchange, is eyeing a final funding round, potentially exceeding $100 million, as it mulls over the prospect of going public with an IPO. Recent interest from investors, coupled with a shift in US regulatory attitudes towards digital assets, has spurred discussions about crypto companies going public. 

Kraken has been contemplating an IPO since 2021, but previous market downturns and regulatory hurdles slowed its progress. However, with more favorable regulatory winds and a projected revenue of $1-2 billion this year, Kraken is actively seeking a successful IPO, possibly in the near future.

BNB Chain Token Breaks $700 Barrier

On June 5, 2024, BNB Chain's token surged to $711 from $625.26 the previous day, marking its first breach of $700 in three years. Key drivers include increased activity on Binance’s Launchpad and Launchpool, heightened trading volumes reaching over $4 billion, and significant gains in BNB Chain-based tokens like FLOKI and PancakeSwap’s CAKE. Trading volumes surged 124%, with the BNB ecosystem seeing an 8% rise in locked value. 

Iggy Azalea's Token Soars Amid Celebrity Crypto Slump

As of June 7, Iggy Azalea's "MOTHER" token reached its ATH and turned $3K into $9M for a trader at a $200M market cap. Most celebrity tokens, including Caitlyn Jenner's "JENNER," Rich the Kid's "RICH," and Davido's "DAVIDO," have plummeted over 66%. 

"MOTHER" is the exception, driven by Azalea's active promotion. However, Vitalik Buterin criticized these tokens on June 5 for lacking substance and societal value. One example, the "HULK" token, crashed 85% due to insider selling. Hogan denied involvement, claiming his social media was hacked. These trends highlight the volatility and speculative nature of celebrity-endorsed cryptocurrencies.

Meme Coins See Major Updates and Price Surges

Besides the excitement surrounding GME and Roaring Kitty's related coins, other meme coins have also seen massive updates and price action this week. As of June 2024, institutional holdings of meme coins have surged since January, with significant investments in DOGE, SHIB, and PEPE. DWF Labs made a substantial $12 million purchase of FLOKI, indicating strong interest in the coin leading to its ATH a few days later. The bitcoin-based meme coin DOG is experiencing a meteoric rise, nearing a $1 billion market cap. 

Donald Trump’s crypto portfolio has unexpectedly grown to $30 million, largely due to unsolicited donations of various meme coins from supporters. Boden token saw a substantial increase of over 10%, while Tremp gained 5% following the listing of Solana-Politifi tokens on Kraken. BRETT token experienced an all-time high after listing on KuCoin, reflecting heightened market activity. Additionally, a significant player in the crypto space, known as a whale, has been identified as a major force behind the meme coin BEER, further fueling market speculation and interest.

Binance Reinstates Mastercard Crypto Purchases

Binance reinstated crypto purchases via Mastercard, indicating a potential easing of regulatory issues. On June 17, 2024, Binance will delist OMG Network, Waves, Wrapped NXM, and NEM, affecting their trading pairs and services like Binance Earn and Margin. Following the delisting announcement, the prices of these altcoins dropped significantly. 

Binance co-founder Yi He denied responsibility for a $1 million trading loss from a hacked account on June 3, 2024, attributing it to the user's compromised device. This week, Binance also announced IO.NET (IO), a decentralized AI computing and cloud platform token, as its 55th Launchpool project.

Bybit Allows Crypto Trading for Chinese Expats

Bybit, a major cryptocurrency exchange, has announced that Chinese expatriates can now trade crypto on its platform. The move comes after reports suggested Bybit was allowing Chinese residents to open trading accounts. Bybit aims to meet the increasing demand for secure and user-friendly crypto trading platforms among Chinese expats. 

This expansion allows overseas Chinese users to register and enjoy the same benefits as existing users. Bybit reaffirms its commitment to complying with applicable regulations in the markets it operates in and expresses hope for further expansion in regions like Hong Kong, UAE, and the EU.

DMM Bitcoin Raises $320 Million for Hack Reimbursement

Japanese crypto exchange DMM Bitcoin plans to raise $320 million to reimburse victims of a recent hack. The exchange will secure loans and increase capital to cover the losses. DMM Bitcoin, a subsidiary of DMM Financial, will receive support from its parent company. The funds will be used to purchase Bitcoin and refund affected users. The cause of the hack, which resulted in over $305 million in losses, is under investigation. DMM Bitcoin aims to keep users updated on the situation.