Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 3 - June 9, 2023

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Jun 9 2023

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Weekly360

Coin360 weekly crypto news, cryptocurrency updates, market movement

Crypto Weekly Market Update

Written by Van

Crypto Market Weekly Update: SEC Actions Impact Bitcoin and Altcoins, Market Capitalization Declines

Bitcoin and Ethereum Drop as SEC Targets Binance and Coinbase

Bitcoin fell 0.68% to $26,655, while Ether dropped 0.94% to $1,845 in the past week.
SEC lawsuits against Binance and Coinbase resulted in price declines for most top 10 non-stablecoin cryptocurrencies.
Bearish sentiment and thin liquidity caused Bitcoin to lose $1,100 immediately, dropping 4% to the lowest level since March 17.
Ethereum, though not deemed a security, was still affected, sliding to its lowest level since May 26 before rebounding. The largest Ethereum whales, excluding exchanges, have been steadily accumulating ETH and now hold a combined 31.8 million ETH ($59.47 billion), according to on-chain analytics firm Santiment.

Altcoins Experience Bloodbath, but Recover

Altcoins faced a significant drop after Bitcoin's decline, with futures traders losing $292 million in long liquidations on June 5.
Bitcoin and non-"securities" altcoins began recovering despite SEC and Binance-Coinbase drama.

SEC Actions and Crypto Market Capitalization

Total crypto market capitalization decreased 4.4% to $1.116 trillion in the past week.
Cryptocurrencies labeled as "securities" by the SEC, such as Binance Coin (BNB) and Cardano (ADA), suffered heavy losses.
BNB fell 14.61% to $260, ADA dropped 13.52% to $0.31, Polygon (MATIC) slid 11.81% to $0.79, and Solana (SOL) declined 8% to $18.9.
Controversy arose regarding Ethereum's security classification after SEC actions, sparking debates within the crypto community. Jack Dorsey's comment on Ethereum as a security triggered a feud among crypto industry figures.
The cryptocurrencies that were listed as “securities” in the latest lawsuits:

BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, COTI, CHZ, FLOW, ICP, NEAR, VGX, DASH, NEXO.

SEC's Recent Actions and Community Response

Binance, IOG, and Solana Foundation reject the SEC's claim that BNB, ADA, and SOL are securities.
Robinhood said they were conducting a review of the potential delisting of tokens that were mentioned in the SEC lawsuits, including SOL, ADA, MATIC.
The SEC has taken eight cryptocurrency-related enforcement actions in the past six months.

Global Economic Factors and Market Outlook

Investors fear a global recession, limiting upside potential for risk-on assets like stocks, cryptocurrencies, and emerging markets.
Eurozone entered a recession, potentially impacting the European Central Bank's interest rate decisions.
Billionaire Ray Dalio warns of high inflation and excess debt in the US.
Negative macroeconomic data from China and Japan adds to concerns. On June 6, China reported a decrease of 4.5% in imports compared to the previous year. On June 7, Japan revealed a quarter-over-quarter shrinkage of 0.3% in their gross domestic product.

Labor Market and Central Bank Impact

Initial jobless claims in the US rose to 261,000, suggesting a loosening labor market.
Fear and Greed index for the crypto market remains neutral at 50, indicating limited impact from SEC actions.
US Bitcoin supply declines by 11%, with Asian markets picking up the reduced activity.
SEC's regulatory stance redirects demand for cryptocurrencies but does not affect overall demand.

SEC Files Lawsuit Against Binance Amid Crypto Controversy

The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng Zhao (CZ), alleging that Binance operated as an unlicensed stock exchange and violated securities laws. This follows previous allegations by the Commodity Futures Trading Commission (CFTC) in March. Binance denies the allegations. The lawsuit has led to a drop in Bitcoin's price and increased withdrawals from Binance. The SEC seeks to freeze Binance.US assets, impacting the ability to withdraw funds. The lawsuit has broader implications for the cryptocurrency industry and has affected other companies like Coinbase. The crypto community has rallied to defend Binance. More details here.

Cryptocurrencies included as "securities" in the SEC's lawsuits

Coinbase Faces SEC Lawsuit over Unregistered Securities

The U.S. Securities and Exchange Commission (SEC) also filed a lawsuit against cryptocurrency exchange Coinbase, accusing it of operating as an unregistered broker and offering unregistered securities. The SEC claims that several tokens offered on Coinbase's platform qualify as securities, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO. The lawsuit comes amid increased regulatory scrutiny of the crypto industry. The outcome of this case could have significant implications for the regulatory landscape and the practices of other crypto exchanges and platforms. More details here.

Global Leaders Divided over Cryptocurrency Regulations

Global leaders are clashing over the regulation of stablecoins, with the G-7 leaning towards regulation and the G-20 demanding stricter restrictions. Australia's Commonwealth Bank is implementing measures to enhance customer protection for crypto exchanges, while the UK's FCA plans to enforce stricter rules for crypto services. US lawmakers are calling for tax regulations in the crypto industry. The SEC has increased its enforcement actions after the collapse of FTX, and the Philippines has delayed the implementation of its crypto framework. The EU's MiCA law has been published, establishing a comprehensive regulatory framework for cryptocurrencies in the European Union. More details here.

Atomic Wallet Suffers Major Hack, $35 Million Stolen

Atomic Wallet, a centralized storage and wallet service, suffered a hack resulting in the theft of approximately $35 million worth of various tokens. The incident raises concerns about the security of user funds and the effectiveness of security measures in centralized storage services. Prior warnings were issued about potential vulnerabilities in Atomic Wallet, and investigations have led to the discovery of a crypto mixer called Sinbad.io as the likely destination for the stolen funds. Recovery efforts are underway, but it may be challenging for affected users to retrieve their funds. More details here.

Arbitrum Experiences Outage, Locking $2.2 Billion in Crypto

Arbitrum, an Ethereum layer 2 scaling solution, experienced a two-hour outage due to a software bug affecting its sequencer, leaving over $2.2 billion in crypto locked in dapps. The sequencer malfunction prevented batches of transactions from being forwarded to the Ethereum mainnet. Despite the incident, Offchain Labs, the company behind Arbitrum, described the system as "working as intended." This highlights the reliance on centralized sequencers in layer 2 solutions and the ongoing challenges of decentralization. The incident did not require Ethereum to process transactions as a fallback. However, trust in Offchain Labs remains necessary until more decentralized solutions are developed.

Tether Invests in El Salvador's Bitcoin-Friendly Renewable Energy Project

Stablecoin issuer Tether is investing in El Salvador's $1 billion renewable energy project to support the country's adoption of Bitcoin. The investment will help power future Bitcoin mining operations in the country. Tether's chief technology officer believes that El Salvador is leading the way in sovereign Bitcoin adoption, comparing it to the European Union's adoption of the euro. The investment is part of a strategy to create value through energy production and use it for Bitcoin mining. Tether also addresses environmental concerns, stating that most Bitcoin mining is done using renewable energy and excess energy can be utilized.

Terraform Labs Co-Founder Faces Legal Troubles

Do Kwon, co-founder of Terraform Labs, scored a minor victory in his passport fraud case in Montenegro, but South Korean prosecutors announced their intention to freeze Kwon's $13 million held in Swiss bank accounts. Kwon faces criminal proceedings from both US and South Korean authorities for his role in the Terra Luna collapse and could serve 40 years if convicted in South Korea before extradition to the US. Kwon is also alleged to have connections to Montenegro's former finance minister and faces ongoing scandal in the Balkan nation.

Crypto VR Sector Surges Ahead of Apple's VR Headset Reveal

Cryptocurrency's virtual reality (VR) sector saw a surge on June 5 ahead of Apple's anticipated VR headset reveal. Apple's stock price has risen 7.4% in the last two weeks, matching the trend in virtual reality and metaverse crypto tokens. Decentraland (MANA) is the largest VR-related token, up 5.4% despite the wider crypto market losing 1.5%. Wilder World (WILD) was the top gainer, soaring 18.8% in 24 hours and 119% in 30 days, as of June 5. The metaverse sector has suffered during the crypto winter but recent gains suggest a shift. The market cap for metaverse tokens is $8.65 billion.

Optimism Network Completes 'Bedrock' Upgrade, Enhancing User Experience

The Optimism network has completed its "Bedrock" upgrade, reducing deposit times, lowering fees, and enhancing security. The upgrade aims to create a scalable "Superchain" of Web3 networks using Optimism's software. Gas optimizations have resulted in a 40% reduction in data availability fees, leading to lower gas fees for users. The upgrade also enables faster deposit times and implements a two-step withdrawal process for increased security. The development of the OP Stack will continue, allowing developers to build customized blockchain networks. Coinbase's Base network will join the Superchain.

Circle Singapore Secures Major Payment Institution License

Circle Singapore has obtained a Major Payment Institution license from the Monetary Authority of Singapore (MAS). The license allows the company to offer digital payment token services, cross-border money transfers, and domestic money transfers in Singapore. Circle Singapore is affiliated with Circle Internet Financial, the issuer of USDC stablecoin. MAS has proposed stablecoin rules that include capital and reserve requirements for issuers and restrictions on activities like lending and staking.

Top Weekly Altcoin Gainers and Losers

Gainers:

Terra Classic LUNC (+15.33%)

FTX Token FTT (+10.94%)

Lido DAO Token LDO (+6.87%)

Bitget Token BGB (+5.96%)

Ripple XRP (+4.08%)

Losers:

Sui SUI (-21.10%)

Conflux CFX (-18.52%)

Algorand ALGO (-16.06%)

Trust Wallet Token TWT (-15.74%)

Binance Coin BNB (-14.65%)

NFT Market Map

NFT Market Interest Declines, Sellers Dominate Trading

Recent data indicates a waning interest in the NFT market, with sellers dominating trading by dumping 92% of Ethereum volume into bids. Both trading volume and the number of traders have significantly declined in recent days. OpenSea continues to lead in NFT trades, but Blur has the largest share of trading volume. Interest in NFTs on Polygon and Solana has decreased, resulting in fewer active wallets and lower transfer volume. The Mutant Ape Yacht Club (MAYC) collection has also experienced a drop in sales. These trends have led to a substantial decrease in NFT trades on Ethereum, resulting in reduced gas usage.

Illuvium and GameStop Launch Joint NFT Collection

Illuvium has partnered with GameStop to launch a 20,000 NFT collection called "Illuvitars" on June 12. The NFTs represent a specific avatar of an Illuvial with a distinct expression and possess a power rating determined by rarity. GameStop-branded "Illuvitar" NFTs will be included in the collection, which can be traded on the Illuvi decentralized exchange. NFT holders will also get early access to Illuvium's creature collector games, Illuvium Overworld and Illuvium Arena. GameStop's NFT marketplace is powered by Ethereum layer 2 scaling solution Immutable X, but daily fee revenue reportedly fell to $4,000 in August 2022.

Louis Vuitton Merges Luxury with NFTs in 'Treasure Trunks' Collection

Louis Vuitton is releasing an NFT collection called "Treasure Trunks" that combines physical and digital elements. By owning these trunks, users gain access to future products, experiences, and a community. This move explores the potential of NFTs and enhances the luxury ownership experience, bridging the gap between the virtual and physical realms. The collection is part of Louis Vuitton's "Via" initiative, symbolizing an exclusive pathway to coveted products and experiences. The VIA Treasure Trunk is priced at €39,000 per piece and will be produced in limited quantities. Fans can join the waiting list and have the opportunity to purchase a trunk on June 16.

AliExpress and the Moment3! Team Up for NFT Launch

AliExpress, the global online retail platform of Alibaba Group, will launch 5,555 NFTs on June 25 in partnership with NFT project "the Moment3!". The Moment3! aims to connect with real-world businesses and offer NFT owners benefits beyond collectible value. This move follows AliExpress' integration into Shopping.io and acceptance of multiple cryptocurrencies as payment methods. Notably, AliExpress does not sell to customers in mainland China due to the government's ban on cryptocurrency transactions and warnings about NFT speculation.

Kraken Opens NFT Marketplace, Offers Fee-Free Trading

Kraken has launched its NFT marketplace, offering over 250 unique NFT collections. A notable feature is the absence of transaction fees regardless of market conditions. Users can bid on NFTs with fiat or cryptocurrencies, and the platform aims to be user-friendly for non-crypto traders. The marketplace supports Ethereum, Solana, and Polygon, and is compatible with MetaMask and Phantom wallets.

This article has been refined and enhanced by ChatGPT.

Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 3 - June 9, 2023

Crypto Weekly Market Update

Table of Contents:

Regulatory Developments

Crypto Security Incidents

Investment and Partnerships

Legal Issues in the Crypto World

Technology Advancements and Updates

Crypto Market and Trading Platforms

Trends in the NFT Market