Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | November 18 - November 24, 2023

Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments

Bitcoin:

• Weekly change: +4.43%
• BTC rose over $37,600 early on Monday.
• Bitcoin stabilized between $37,100 - $37,500 following Argentina's Presidential Election and Javier Milei's victory, known for his Bitcoin support.
• Santander Private Bank launches Bitcoin and Ethereum trading for Swiss clients, as reported on Monday.
• CoinShares reported a $175.6 million total inflow into crypto products last week, with Bitcoin attracting $154.7 million.
• Glassnode noted increased BTC in exchange wallets, suggesting a potential market pause.
• Over 70% of BTC supply remained untouched for a year, showing long-term holder reluctance to sell.
• The Bernstein Report predicted Bitcoin's market cap could exceed $3 trillion by mid-2025 amid geopolitical instability.
• The U.S. Thanksgiving week featured major macroeconomic data and Federal Reserve minutes.
• Bitcoin dropped to $36,500 on Tuesday amid ETF uncertainty, Binance settlement news, and SEC’s legal action against Kraken.
• BTC rebounded 4% to $37,900 on Wednesday after Binance news but fell due to inflation concerns from Fed minutes. 
• Mt. Gox creditors were said to receive billions of USD in BTC and BCH payouts this year, contributing to the drop.
• Thursday saw renewed Bitcoin ETF excitement, pushing BTC near $38K.
• PlanB reported 87% of Bitcoins profitable as of late November, with modest unrealized gains and Bitcoin trading around $37,190.
• Bitcoin briefly hit $38,000 on Friday, its highest since May 2022, amid quiet traditional markets post-U.S. Thanksgiving.
• Market anticipation of the BTC ETF raised prospects of volatility and a potential rise to $40,000 over the weekend.

Ethereum:

• Weekly change: +7.15%
• ETH began its upward trend on Monday, peaking at $2,064 that evening.
• Subsequently, ETH dipped below $2,000, despite Ethereum Exchange Supply hitting a 5-year low.
• BlackRock's ETH ETF filing on Nov 15 caused a price surge, leading to increased ETH withdrawals to cold storage.
• On Tuesday, the US Department of Justice, alongside the CFTC and Treasury, announced significant cryptocurrency enforcement actions, resulting in a dip in Ethereum's price.
• Wednesday saw ETH fall below $1,950, influenced by the broader market reaction to Mt. Gox news and Fed minutes.
• ETH then sharply rose to $2,090.
• It fluctuated between $2,050 and $2,090, reaching over $2,100 on Friday, a level not seen since May 2022.
• 200 Ethereum whales now hold 62.76 million ETH, valued at $124.1 billion, comprising 52% of the circulating supply.
• This reflects a 30.3% increase in ETH holdings from last year, marking the highest network growth since July 2023.
• A CryptoQuant analyst noted significant buying in Ethereum futures, with around $700 million injected into the market.
• Token Terminal projects Ethereum's price could hit $36,800 by 2030, based on total addressable market projections.

Altcoins:

• Poloniex confirmed hacker's identity, offered final $10M bounty.
• Osaka Digital Exchange in Japan set to initiate digital securities trading.
• Mastercard and AI firm Feedzai partnered to combat crypto fraud.
• Atomic Wallet sought dismissal of $100M hack lawsuit, citing no U.S. connections.
• AI Tokens surged on Musk’s X Corp's xAI shareholding and OpenAI incident.
• Kronos Research suspended trading during $25M API key hack probe.
• DYDX V3 faced targeted attack, YFI price manipulation allegations, and criticism for centralized response.
• SingularityNET and DFINITY Foundation collaborated for AI models on smart contracts.
• Pyth Token launched with nearly $500M valuation, airdropped to 90,000 wallets.
• Celsius's recovery hindered by SEC's request for more asset details.
• Apple faced lawsuit over restricting crypto in P2P payments.
• dWallet Labs identified validator flaw risking $1B in crypto.
• Fantom Foundation awarded $1.7M bounty for averting $170M loss.
• Bittrex announced closure by Dec 4, advised user withdrawals.
• Aragon DAO voted to fund legal action against its founders.
• PancakeSwap suggested veCAKE launch to enhance governance and liquidity.
• Circle introduced 'bridged USDC standard' for new network deployment.
• Lugano city integrated Polygon into its crypto payment system.
• Genesis filed $689M lawsuit against Gemini for alleged misconduct.
• UNI's price surged 20% as Uniswap Governance sought increased voting power; DeFi market value reached 14-month peak.
• Raiffeisen Bank in Austria planned crypto trading for retail customers.
• Singapore's central bank issued regulations to curb crypto speculation.
• Lido's node operator InfStones decided to rotate validator keys post-vulnerability.
• Dutch exchange Bitvavo received authorization to operate in France.
• UK investment funds approved for tokenization.

Binance Settles for $4.3 Billion Over Violations

Binance settled with the U.S. for $4.3 billion over money laundering and terror financing violations. This follows intense scrutiny since 2018, leading to CEO Changpeng Zhao's guilty plea and resignation. The fines are split among various U.S. departments, including FinCEN, OFAC, and the CFTC. 

Despite these challenges, Binance remains a key player in the crypto market but plans to exit the U.S. market. This settlement underscores the growing importance of regulatory compliance in the cryptocurrency industry.

SEC Sues Kraken Over Unlicensed Securities Trades

The SEC has sued Kraken, alleging unlicensed securities trades and commingling of customer funds. Kraken denies these claims, arguing that the assets in question aren't 'investment contracts' and that the alleged commingling is merely the use of earned fees. 

Kraken's co-founder, Jesse Powell, criticizes the SEC, suggesting crypto firms leave the U.S. due to regulatory challenges. He warns of the high costs of legal battles with the SEC and implies that such actions could push crypto businesses out of the U.S., potentially reshaping the global crypto industry's dynamics.

Tether Freezes $225 Million in USDT for Legal Issues

Tether recently froze $225 million in USDT linked to human trafficking, collaborating with the DOJ and OKX exchange, showcasing blockchain's traceability in deterring crime. Concurrently, Tether's bank partner, Britannia Financial, faces a lawsuit over a disputed $1 billion deposit related to Tether. 

The U.S. DOJ also seized $9 million in USDT from "pig butchering" scams, further highlighting Tether's involvement in legal and regulatory issues. Additionally, Tether and Bitfinex chose not to oppose a FOIL request, affirming their commitment to transparency while stressing the importance of responsible information disclosure in the crypto industry.

Heco Chain Bridge Hack Leads to $97 Million Loss

The Heco Chain bridge hack on November 22, 2023, led to a massive $97 million loss. Initially, $86.6 million in cryptocurrencies like ETH, SHIB, and LINK were stolen. Subsequently, HTX exchange reported similar activities, incurring a $23.4 million loss. In response, HTX moved funds to secure wallets and halted withdrawals. The hackers targeted HTX Global wallets, converting assets into Ether. 

Justin Sun, an investor in HTX, committed to compensating users. This incident, involving both Heco Chain and HTX, underscores significant security vulnerabilities in cryptocurrency operations and the urgent need for enhanced protective measures.

KyberSwap Suffers $46.5 Million Crypto Heist

KyberSwap faced a $46.5 million crypto heist, impacting Ethereum, Arbitrum, and others. The exploit targeted its concentrated liquidity feature, leading to significant losses including $20.78 million in wETH. The attacker used a flash loan for manipulation, profiting 2,859 wstETH ($6.7 million). KyberSwap's Total Value Locked (TVL) plummeted by 68%, from $134 million to $7 million. 

In response, KyberSwap advised fund withdrawals and offered a $5 million bounty for the return of stolen assets. The incident underscores DeFi vulnerabilities and the emerging trend of post-exploit negotiations, highlighting the need for robust security in the DeFi ecosystem.

dYdX Loses $9 Million in Insurance Fund Attack

dYdX, a decentralized exchange, suffered a $9 million loss from its insurance fund due to a market manipulation attack, significantly impacting YFI's open interest and price. The attack led to a 35% YFI price drop within an hour. In response, dYdX increased margin ratios for certain markets and is working with exchanges to investigate, offering bounties for useful information. 

They're also reporting to the FBI, drawing criticism for a centralized approach. The incident caused a 15% drop in DYDX token value and a 38% fall in YFI price. No user funds were impacted, and the insurance fund retains $13.5 million.

Legal Battles Surround Terraform Labs and Do Kwon

Terraform Labs and former CEO Do Kwon are embroiled in a legal battle with the SEC over the UST stablecoin depegging. Former Terraform Labs CEO Do Kwon faces potential extradition to the US or South Korea after a Montenegro court ruling. The decision rests with Montenegro's Justice Minister. 

Kwon, linked to the collapse of TerraUSD and Luna, is wanted in both the US and South Korea for financial crimes. He is also serving a four-month sentence in Montenegro for passport forgery. The crypto industry has seen increased scrutiny, with other CEOs facing legal troubles. 

Worldcoin Market Shifts Amid OpenAI Leadership Changes

Worldcoin (WLD) saw dramatic market shifts amid OpenAI's leadership changes, peaking at $2.6 then dropping to $1.84. Significant transactions, like GSR's 1.83 million WLD move and an anonymous whale's 1.1 million WLD transfer to Binance, heavily influenced these fluctuations. 

OpenAI's restructuring, including Sam Altman's dismissal and Emmett Shear's CEO appointment, echoed in Worldcoin's market behavior. Despite broader market turbulence and internal issues at OpenAI, Worldcoin demonstrated market resilience, with only a modest decline from its peak. 

FTT Token Fluctuates Amid FTX and OpenAI Dynamics

FTT, FTX's native token, experienced a 12% drop after Anthropic, backed by FTX, rejected a merger with OpenAI, amidst leadership changes at OpenAI. Shortly after that, it surged over 40% as Binance faced legal issues, with traders moving from Binance Coin to FTT. 

Sam Bankman-Fried (SBF), former FTX CEO, had his release request denied, remaining jailed until his March sentencing after being found guilty on multiple fraud counts. Adapting to prison life, SBF navigates a new economy using mackerel packets as currency, reflecting his dramatic shift from a crypto mogul to an inmate learning prison economics.

BLUR Token Surges 88% Amidst Market Changes

BLUR token recently witnessed a staggering 88% price increase, largely driven by its Season 2 airdrop, the resignation of Binance CEO Changpeng Zhao, and the Binance listing today, marking a 200% rise in 42 days with $21 million invested in 51.3 million BLUR tokens. Despite a bearish RSI, the market outlook remains positive. 

Concurrently, the Ethereum project Blast, claiming Layer 2 status, has locked over $335 million and gathered 140,000 staked ETH but faces skepticism for lacking key Layer 2 features and operational network, with its legitimacy questioned by Polygon engineer Jarrod Watts. Blast's future depends on fulfilling its technological promises amid security concerns for staked assets.

Mt. Gox to Repay Creditors in Massive Settlement

Mt. Gox, the Tokyo-based cryptocurrency exchange that collapsed in 2014, is set to begin repaying its creditors shortly, with the process expected to extend into 2024. Creditors will receive 142,000 Bitcoin (BTC), 143,000 Bitcoin Cash (BCH), and ¥69 billion, totaling over $5.67 billion. The repayment, delayed multiple times, was initially scheduled for October 31, 2023, but has been postponed to October 31, 2024. 

This repayment follows the loss of about 850,000 BTC to hackers in 2014, impacting around 24,000 users. The reintroduction of these assets into the market could potentially exert downward pressure on BTC prices, similar to concerns raised over FTX's plans to sell $100 million in cryptocurrencies weekly and the U.S. government's sale of 40,000 BTC from Silk Road seizures.

Avalanche's C-Chain Hits Transaction Record Highs

Avalanche's C-Chain has set record transaction highs, reaching 2.3 million daily, driven by ASC-20 tokens, similar to Bitcoin Ordinals. This surge has increased transactions to over 40 per second, with costs around $0.05 each. Meanwhile, Colony Lab is investing $10 million in Avalanche, including buying 500,000 AVAX tokens and initiating a validators program. 

This investment also extends to the Colony Avalanche Index, supporting Avalanche's long-term growth and expanding its blockchain use cases. These developments signify a significant boost in Avalanche's transaction activity and ecosystem expansion.

Top Weekly Altcoin Gainers and Losers

Gainers:

Blur BLUR (+98.64%)

Bittensor TAO (+63.59%)

KuCoin Token KCS (+27.78%)

Immutable X IMX (+26.64%)

Radix XRD (+26.26%)

Losers:

Rollbit Coin RLB (-14.82%)

Fantom FTM (-13.55%)

Polygon MATIC (-9.25%)

THORChain RUNE (-8.71%)

Cosmos ATOM (-6.86%)