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News/Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 8 - June 14, 2024

Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 8 - June 14, 2024

Van Thanh Le

Jun 14 2024

last month6 minutes read
Coin360 weekly crypto news, cryptocurrency updates, market movement

Crypto Weekly Market Update

Table of Contents

Crypto Market Updates

  • Crypto Weekly Recap

Major Hacks and Security Incidents

  • Curve Finance Founder Faces Massive Liquidations
  • UwU Lend Suffers $19.5 Million Hack
  • OKX Hit by SIM-Swap Attack, $633 Million Stolen
  • Holograph Hacked, 1 Billion HLG Tokens Minted

Token and Coin Developments

  • zkSync Token Launch Faces Backlash Over Airdrop
  • Andrew Tate's DADDY Coin Surges Amid Insider Trading Suspicions

Blockchain Network and Protocol Updates

  • Solana Cracks Down on Sandwich Attacks
  • Terraform Labs Hands Control to Terra Community

Regulatory and Market Insights

  • Stablecoin Sector Sees Significant Growth
  • South Korea Introduces New NFT Regulations

NFT Market Trends

  • Ethereum NFT Traders Drop Below 4,000 Daily

Art and Culture in Crypto

  • Beeple's Latest Artwork Satirizes Crypto and Celebrity
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Crypto Weekly Recap

Bitcoin

  • Weekly change: -7.60%
  • BTC dropped from $71.5K last Friday to $69K following a strong U.S. jobs report. It fluctuated around this level until Monday noon, surged past $70K, then slumped awaiting the FOMC meeting and US inflation report.
  • Crypto investment products saw $2 billion in inflows last week. The U.S. spot Bitcoin ETF had $1.8 billion in net inflows, with Bitcoin investment products adding $1.97 billion globally. (source)
  • Bitcoin dropped to $66.3K on Tuesday due to thin bid liquidity. U.S.-listed spot BTC ETFs saw a total outflow of over $64M on Monday, breaking 19 consecutive days of inflows. The opening week of June saw significant BTC purchases by these ETFs, rivaling May's total.
  • Bitcoin whales accumulated $950 million worth of BTC amid market panic, moving coins to self-custody, indicating a potential bullish trend. (source)
  • BTC recovered to near $70K on Wednesday after the CPI report but failed to reclaim this level. The U.S. Consumer Price Index (CPI) remained unchanged in May, surpassing expectations of a 0.1% increase. Core CPI rose 0.2% in May, beating forecasts. The Federal Reserve did not cut rates in June, diverging from other global banks.
  • US spot Bitcoin ETFs saw $101 million in net inflows on Wednesday as BTC dropped below $66K on Friday. The PPI print for May was lower than expected, indicating waning inflation, but crypto assets remained relatively unaffected.
  • Bitcoin ETFs experienced $226M in outflows on Thursday, led by Fidelity's FBTC with $106M withdrawn. BlackRock's IBIT saw a net inflow of $18M. Other major outflows included Grayscale's GBTC at $62M and Ark Invest's ARKB with $53M withdrawn, marking the third day of outflows this week.
  • A sharp fall was fueled by miners' selling. Bitcoin miners sold 1,200 assets on June 10, the highest number since late March. Miners' reserve holdings often reflected market sentiment, influencing trends. (source)
  • Despite strong inflows into Bitcoin ETFs, their market price impact was stifled by hedge funds' short strategies. These funds used a "cash-and-carry" tactic, buying long spot positions while shorting futures contracts, neutralizing ETF buy-side inflows. (source)
  • After a strong jobs report, JPMorgan and Citigroup moved their rate cut predictions from July to September or December. (source)
  • BTC continued to attract institutional interest: Bitcoin ETF holdings surpassed $70B, equating to 5% of all BTC supply (source), ICBC called Bitcoin digital gold and Ethereum digital oil in the latest research report (source), Major entities held over 4 million Bitcoin, accounting for 27% of supply (source), Metaplanet disclosed a $1.6M BTC purchase (source), MicroStrategy planned a $500M stock sale to buy more Bitcoin (source).
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Ethereum

  • Weekly change: -10.62%
  • ETH traded between $3.5K and $3.7K before dropping to $3,445 on Tuesday.
  • Ethereum's mega-whale addresses holding 10,000+ ETH increased by 3% in three weeks, indicating higher buying pressure. (source)
  • Ethereum (ETH) saw its best week of inflows since March, reaching $69 million.
  • It briefly rose to $3.6K post-CPI before falling to a weekly low of $3,428.
  • On Wednesday, long-term holders bought 298,000 ETH as prices dipped below $3,500, valued at $1.34 billion, despite an 8.49% weekly decline. (source)
  • Coinbase saw the year's largest Ethereum outflow, exceeding $1 billion, with over 336,000 ETH moved. (source)
  • SEC Chair Gary Gensler hinted at spot Ether ETF S-1 approvals by summer 2024, suggesting a longer timeline than anticipated. (source)
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Altcoins


Curve Finance Founder Faces Massive Liquidations

Michael Egorov, founder of Curve Finance, faced severe financial losses as CRV token values plummeted, triggering substantial liquidations. Initially securing $141 million in CRV for $95.7 million in stablecoin loans across platforms like Inverse and Aave, Egorov's collateral dropped to $33.9 million post-liquidation. The crisis, exacerbated by CRV's record lows, saw Egorov's holdings dwindle by 78%, impacting DeFi protocols significantly. Despite partial aid from external sources, the event underscores the volatility and risk inherent in leveraging crypto assets for large-scale borrowing, posing challenges even for experienced figures in the cryptocurrency space. 

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UwU Lend Suffers $19.5 Million Hack

UwU Lend, a prominent DeFi lending platform, fell victim to a devastating $19.5 million hack. Conducted via flash loans manipulating stablecoin prices, the exploit swiftly drained $20 million, converting stolen assets into 4000 ETH. Founder Michael Patryn (0xSifu) paused operations, offering a 20% bounty for return of funds. The incident underscores DeFi's susceptibility, adding to $473.22 million in industry losses by May 2024. Despite immediate protocol halts and investigation pledges, ongoing vulnerabilities persist, demanding fortified security and crisis communication protocols across DeFi platforms to thwart future cyber threats effectively.


OKX Hit by SIM-Swap Attack, $633 Million Stolen

On June 9, 2024, OKX faced a SIM-swap attack compromising user accounts, resulting in over $633 million in outflows. Hackers exploited OKX's 2FA vulnerabilities, prompting an investigation and user compensation. OKX announced mandatory Google Authenticator integration to enhance security. SlowMist identified the attack's method, highlighting API key creation for unauthorized transactions. OKX confirmed on June 12, 2024, that affected users were fully reimbursed and security measures were strengthened. Despite the breach, OKX pledged to assume responsibility if platform faults were confirmed.


Holograph Hacked, 1 Billion HLG Tokens Minted

On June 13, Holograph was hacked, leading to the minting of 1 billion HLG tokens worth $14 million. This incident caused HLG’s price to plummet by 80%, from $0.014 to $0.0064, and its market cap dropped to $10 million. Holograph patched the vulnerability and involved law enforcement. Suspicions point to a rogue developer, as on-chain analysis identified the ENS wallet acc01ade.eth. The hacker converted HLG tokens to Tether shortly after the exploit. Holograph, an omni-chain tokenization platform, had raised $3 million in its latest funding round in April.

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zkSync Token Launch Faces Backlash Over Airdrop

The zkSync token launch encountered severe backlash due to Sybil attacks during its airdrop. Critics highlighted unfair token distribution, with nearly 90% of participants excluded from rewards. This controversy triggered a significant drop in zkSync's Total Value Locked (TVL), plummeting from nearly $200 million to about $128 million. Users withdrew assets in protest against perceived inequities, affecting market sentiment. 

Despite zkSync's emphasis on transparency and community feedback, the incident underscores challenges in maintaining trust and fair governance within decentralized networks. Moving forward, addressing these issues will be crucial for zkSync to restore confidence and stabilize its market position.


Andrew Tate's DADDY Coin Surges Amid Insider Trading Suspicions

Andrew Tate's DADDY coin saw a 209% surge in value as of June 13, 2024, raising suspicions of insider trading. Blockchain analytics firm Bubblemaps identified that insiders allegedly acquired 30% of the coin’s supply before Tate’s promotion, holding over $45 million in unrealized value. Similarly, Iggy Azalea’s MOTHER token, also based on Solana, reportedly experienced insider trading, with 10% of its supply sold by an insider on May 29. The rise of these memecoins contrasted with Solana's struggle, as new addresses on its network dropped from 26.65 million in May to 11.09 million in June.


Solana Cracks Down on Sandwich Attacks

Solana recently took action against validators involved in sandwich attacks, a form of front-running exploit. They've removed these operators from their delegation program and revoked their stakes, though they can still operate on the network independently. Concurrently, Solana prepares for its v1.18.15 mainnet upgrade to tackle congestion issues exacerbated by meme coins. 

This upgrade integrates certificate authority certificates, includes bug fixes, and optimizes scheduler performance. Market response was positive at that time, with SOL prices rising 5.3% to $160.38. Analysts foresee potential gains, bolstered by Solana's efforts to enhance network security and operational integrity amidst market challenges.

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Terraform Labs Hands Control to Terra Community

Terraform Labs ceased operations, transitioning control to the Terra community. This move aimed to empower the community to steer Terra's future after significant challenges. On June 12, 2024, a US judge approved Terraform's $4.5 billion settlement with the SEC, addressing fraud allegations involving misleading investors. Meanwhile, Ripple is contesting a $2 billion SEC fine, proposing a $10 million cap. Ripple argues the penalty is excessive compared to Terraform's case, stressing the need for consistent regulatory actions and fairness.

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Stablecoin Sector Sees Significant Growth

Recent reports highlight the evolving landscape of stablecoins, emphasizing key trends and regulatory impacts. Over the past 90 days, the stablecoin sector saw $16 billion in inflows, marking significant growth. Ripple CEO announced a new stablecoin, RLUSD, positioning it as a robust competitor in the market. Blast's rebasing stablecoin, USDB, now ranks 9th among dollar-pegged tokens, reflecting its rising prominence. 

Asymmetry Finance launches afUSD, an on-chain synthetillar rivaling Ethena's USDe, utilizing Ampleforth's supply adjustment mechanism for price stability and greater security. Australia's Treasury plans to include stablecoin regulations in a new crypto bill, aiming to enhance market oversight. The EU's MiCA regulation is accelerating the adoption of EUR-backed stablecoins, setting new standards for market integrity and transparency.

Top Weekly Altcoin Gainers and Losers

Gainers:

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Notcoin NOT (+13.20%

Akash Network AKT (+8.06%

Toncoin TON (+6.23%

Uniswap UNI (+4.21%

Gnosis GNO (+1.11%

Losers:

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dogwifhat WIF (-29.18%

Gala GALA (-27.36%

Celestia TIA (-26.96%

Bonk BONK (-25.12%

Render Token RNDR (-24.29%

NFT Market Map

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South Korea Introduces New NFT Regulations

South Korea's Financial Services Commission (FSC) has introduced new regulations for non-fungible tokens (NFTs), aiming to clarify their status under the Virtual Asset User Protection Act starting July 19th, 2024. The framework categorizes NFTs based on fungibility and intended use, with virtual assets facing similar rules as cryptocurrencies. Unique, low-value NFTs may receive lighter scrutiny, while those resembling securities will follow stricter guidelines. 

Compliance with the Specific Financial Information Act is crucial for businesses dealing in NFTs to avoid penalties. Despite challenges, South Korea anticipates significant NFT market growth, projecting a rise from $938 million in 2022 to $4 billion by 2028.


Ethereum NFT Traders Drop Below 4,000 Daily

According to The Block, the number of daily Ethereum NFT traders has dropped below 4,000 for the first time since June 2021, marking a significant decline from its peak of over 80,000 in February 2022. This downturn reflects broader challenges in the NFT sector, despite occasional bright spots like partnerships and new releases. 

Ethereum, historically dominant for NFTs, faces competition from cheaper alternatives. While major collections still reside on Ethereum, its prominence has waned. The future of NFTs on Ethereum remains uncertain, requiring innovative collections or platforms to revive interest and activity in the market.


Beeple's Latest Artwork Satirizes Crypto and Celebrity

Beeple's latest artwork, "Mother and Daddy (2024)," parodies Iggy Azalea and Andrew Tate in a digital finance and celebrity culture mashup. Inspired by Grant Wood's "American Gothic," the piece features Tate and Azalea adorned with Solana tattoos amidst green stock market candles. 

Accompanied by a detailed white paper, the artwork critiques capitalism, highlighting how figures like Azalea and Tate leverage digital platforms for global influence through memecoins like MOTHER and DADDY. This satire underscores the intersection of celebrity, finance, and technology in contemporary society, emphasizing the evolving landscape of American capitalism.

This article has been refined and enhanced by ChatGPT.

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