Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | September 9 - September 15, 2023

Crypto Weekly Market Update

Written by Van

Table of Contents

Crypto Market Overview

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

Crypto Market Introductions

• Franklin Templeton Steps into Bitcoin ETFs
• FTX Liquidation Causes Market Volatility
• Crypto Heists Hit CoinEx and Remitano
• Vitalik Buterin's X Account Hacked, NFTs Stolen

Innovations and Adaptations

• MetaMask Snaps: A Leap in Wallet Customization
• PayPal Enables Crypto for Web3 Merchants

Banking and Institutional Engagement

• Deutsche Bank Joins Crypto Custody Trend
• Nasdaq Files for Ethereum ETF

Missteps and Recoveries

• Bitcoin Miner Returns Excessive Transaction Fee to Paxos

Regulatory Landscape

• SEC Investigates Binance US for Transparency Issues
• Stoner Cats NFTs Face SEC Penalty
• Friend.tech Outperforms NFTs in Trading Volume

NFT News

• Milady Maker NFT Project Suffers Exploit

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

Bitcoin:

• Weekly change: +0.34%
• BTC ranged from $25.7K to $26.2K over the weekend.
• Monday's UTC morning saw BTC dip to nearly $25K due to FTX's $3B asset liquidation, hitting its lowest since mid-June.
• Glassnode's on-chain data revealed 83.7% of short-term Bitcoin holders were in unrealized loss.
• BTC rebounded to $25.9K as analysts downplayed the sell-off's long-term impact.
• On Tuesday, BTC hit $26.4K after Franklin Templeton filed for a US Bitcoin ETF.
• "Shrimps," or small BTC investors, have been buying the dips, per on-chain data.
• BTC stayed at $26K, unfazed by August's 0.6% CPI rise and YoY inflation at 3.7%.
• BTC hit a September high of $26,721 despite rising US inflation on Thursday afternoon.
• After Deutsche Bank's Taurus partnership for digital asset services and Standard Chartered's Zodia Custody launch in Singapore, BTC heads over to increased institutional adoption.
• BTC slid back to $26.3K amid a two-month peak in profit-taking on Friday.

Ethereum:

• Weekly change: -1.71%
• ETH faced greater price swings than BTC this week.
• Sunday saw ETH dip to nearly $1,600 from $1,637.
• Post-FTX news, ETH plummeted to $1,540 on Monday, its lowest since mid-March, amid lowest fees since November 2022 and inflationary supply.
• Tuesday brought ETH to $1,613 after Nasdaq's SEC application for a Hashdex Ethereum ETF.
• Glassnode data showed ETH addresses in profit fell to 53.5% on Tuesday, down from 70% in May & July.
• ETH's active addresses hit near-record levels on Thursday, pushing it to a weekly high of $1,637.
• Friday's Holesky testnet delay barely moved ETH, which dipped to $1,622.
• Glassnode indicates a $13B net capital loss for ETH recently, signaling investor capitulation.
• It came as Bitfinex reported a $55B capital drain from the crypto market in August.

Altcoins:

• Sushi DEX expanded to Aptos Blockchain.
• Arbitrum price hit a record low as whales sold off ARB tokens; Optimism overtook its market cap.
• ApeCoin sank 42% in a month.
• AXS surged 20% last Thursday, likely due to a short squeeze and high trading volumes.
• opBNB, a BNB Smart Chain layer 2, went live.
• Binance announced the burn of idle BUSD tokens.
• Cardano's Midnight sidechain was set for a Devnet launch 'soon.'
• Cosmos Hub added liquid staking; Lido Finance partnered with Axelar and Neutron.
• France certified 'finfluencers,' including crypto experts.
• Ex-Celsius CEO sought FTC suit dismissal.
• Google Cloud became LayerZero's default oracle.
• Hedera's new Stablecoin Studio and Bithumb listing fueled a 9% HBAR rise.
• Sui's zkLogin offered ecosystem access via Google, Facebook, Twitch.
• Huobi Global rebranded to HTX for global expansion.
• Polygon 2.0 outlined MATIC to POL conversion.
• Manta Network launched L2 Manta Pacific for zk adoption.
• Metis aided PolyNetwork exploit victims and enhanced its cross-chain structure.
• Astar Network launched zkEVM Layer 2, powered by Polygon.
• TON Foundation and Telegram partnered for crypto wallet integration.
• Google boosted Zilliqa's infrastructure and validation.
• Genesis to shut down trading services across all entities.

Franklin Templeton Steps into Bitcoin ETFs

Global investment firm Franklin Templeton has entered the Bitcoin ETF market, filing with the SEC for an ETF that will be listed on the Cboe BZX Exchange. Coinbase Custody will serve as the custodian for the Bitcoin assets. Although the SEC is expected to review the filings by mid-October, a final decision may not be reached until March 2024. 

The filing highlights Bitcoin as the primary constituent of the ETF, utilizing the CME's CF Bitcoin Reference Rate for pricing. This move could open the door for mainstream investors to access cryptocurrencies in their brokerage accounts.  

FTX Liquidation Causes Market Volatility

FTX, a prominent crypto entity, caused a market sell-off as it sought regulatory permission to sell $3.4 billion worth of cryptocurrency assets. FTX also faced legal battles with LayerZero, aiming to recover $21.37 million in lost assets. 

Their planned liquidation will be managed by Galaxy Digital, and the announcement led to temporary volatility, causing fluctuations in crypto price across the board. The Delaware Bankruptcy Court has approved the liquidation plan, which will be phased in with a cap on weekly token sales, ensuring transparency and fair proceedings.  

Crypto Heists Hit CoinEx and Remitano

CoinEx and Remitano have both fallen victim to crypto heists. CoinEx faced a staggering loss of up to $70 million, suspected to be linked to the Lazarus Group, sending shockwaves through cryptocurrency charts. CoinEx has pledged to compensate users for their losses. 

On the other hand, Remitano suffered a $2.7 million heist, potentially as a result of an internal conspiracy, and has remained silent about the incident. The Lazarus Group has been associated with various high-profile crypto hacks, causing losses of over $1.7 billion in the past year.  

Vitalik Buterin's X Account Hacked, NFTs Stolen

The shocking hacking incident of Vitalik Buterin's X account highlights the hidden risks in the crypto world, with $691,000 stolen, primarily in the form of Non-Fungible Tokens (NFTs). The attack was facilitated through a SIM-swap tactic, exposing vulnerabilities in phone number-based password resets. This incident shines a spotlight on the broader cybersecurity challenges that can influence crypto coin prices in the industry, with previous attacks on Terra blockchain and allegations against T-Mobile. 

A noticeable decline in transaction fees and on-chain engagement has contributed to a concerning trend in Ethereum market cap. These factors contribute to a concerning downward trend in Ethereum's trading volume and market capitalization. 

MetaMask Snaps: A Leap in Wallet Customization

Consensys has introduced MetaMask Snaps, allowing for greater customization of MetaMask wallets through third-party-developed features. This marks the first time MetaMask is interoperable with other layer 1 blockchains such as Bitcoin, Solana, Cosmos, and layer 2 StarkNet. Snaps also enable notifications for decentralized apps (dapps) within MetaMask, without requiring users to share personal information. 

The transaction insights Snaps provide added security by warning users about potential mistakes or scams. Consensys plans to make Snaps permissionless in the future, allowing for decentralized vetting and publication. This new functionality aims to enhance user experiences and encourage community feedback for future developments.  

PayPal Enables Crypto for Web3 Merchants

PayPal has launched a new feature called PayPal On and Off Ramps, allowing web3 merchants in the US to accept cryptocurrency payments. Users can convert their crypto into USD directly from their wallets to their PayPal balance, providing a seamless way to buy, sell, and shop with cryptocurrencies. 

The integration with PayPal's payment platform offers fraud management, chargeback security controls, and tools. This feature is now available to web3 merchants and supports MetaMask, a popular crypto wallet and browser extension.  

Deutsche Bank Joins Crypto Custody Trend

Deutsche Bank, a long-standing banking giant with assets of nearly $1.5 trillion, has announced that it will be providing custody services for cryptocurrencies to its institutional clients. This move aligns with the growing trend of banks embracing the crypto industry, with other major institutions such as Standard Chartered, BNY Mellon, and Societe Generale already offering similar services. 

Deutsche Bank's partnership with Swiss crypto firm Taurus will allow them to offer secure custody and support tokenized assets in the digital asset ecosystem. Although the bank remains cautious about crypto trading, its interest in blockchain technology has been consistent since 2017.  

Nasdaq Files for Ethereum ETF

Nasdaq has filed with the SEC to list the Hashdex Nasdaq Ethereum ETF, which will hold both spot ether and futures contracts. The fund aims to reflect the daily changes in the price of the Nasdaq Ether Reference Price and will invest in ether, ether futures contracts on the CME, cash, and cash equivalents. 

By diversifying its holdings, the fund aims to reduce susceptibility to price manipulation in the spot market. The SEC has delayed decisions on filings for spot crypto funds. Other firms, such as Ark Invest and 21Shares, have also applied for spot ether ETFs.  

Bitcoin Miner Returns Excessive Transaction Fee to Paxos

A Bitcoin miner recently returned over $500,000 in BTC transaction fee overpayment to Paxos, as confirmed by blockchain data from Mempool. Initially, the crypto community was puzzled by a transaction that paid a large fee to move a smaller amount of money.

Paxos later claimed responsibility for the mistake, assuring users that their funds were safe and acknowledging the error. Despite suggestions to distribute the money to other miners, the miner ultimately chose to return the funds to Paxos, which was confirmed on September 15th.  

SEC Investigates Binance US for Transparency Issues

The U.S. Securities and Exchange Commission (SEC) has accused Binance US of a "lack of transparency" during its investigation into the crypto exchange. The SEC alleged that Binance US's holding company, BAM, has only produced 220 documents during the discovery process, including "unintelligible screenshots." 

The SEC also raised concerns about customer assets falling under the control of Ceffu, a wallet custody software service owned by Binance Holdings Ltd. The SEC has sued Binance and its CEO for alleged securities violations, including breaking U.S. securities laws and operating as an unregistered exchange. Several top executives have also departed from Binance US.  

Top Weekly Altcoin Gainers and Losers

Gainers:

Kaspa KAS (+22.73%)

Toncoin TON (+11.00%)

Bitcoin Cash BCH (+10.33%)

VeChain VET (+9.19%)

Render Token RNDR (+7.11%)

Losers:

ApeCoin APE (-19.12%)

Arbitrum ARB (-13.57%)

Internet Computer ICP (-12.79%)

Klaytn KLAY (-12.25%)

IOTA MIOTA (-12.24%)

NFT Market Map

Stoner Cats NFTs Face SEC Penalty

Stoner Cats NFTs have been classified as unregistered securities by the SEC, resulting in a cease-and-desist order and a $1 million civil penalty for Stoner Cats 2 (SC2). Some critics, including Ripple's Stuart Alderoty, question the legitimacy of the settlement, citing concerns about enforceability. 

Other crypto companies have settled with the SEC to avoid legal battles, while Ripple and Grayscale have chosen to challenge the agency in court. This marks the SEC's second action against NFTs, potentially extending their jurisdiction over all NFTs. Impact Theory also settled with the SEC for $6 million in a similar case.  

Friend.tech Outperforms NFTs in Trading Volume

Friend.tech had surpassed NFTs for the third time in trading volume, reaching $12.3 million on September 9. This achievement was accompanied by a surge in activity, with a record daily inflow of 4.06k ETH. In contrast, the NFT market is facing challenges due to collectors downsizing their collections and increased regulatory scrutiny from the SEC. Friend.tech is a decentralized social network that allows users to purchase "keys" for access to exclusive content and chat rooms. 

The NFT market has experienced a significant decline, with trading volume dropping by over 81% and monthly sales decreasing by 61% between January 2022 and July 2023. The SEC's recent enforcement actions against NFTs have further impacted market sentiments towards them.  

Milady Maker NFT Project Suffers Exploit

The Milady Maker NFT project on Ethereum has experienced a significant exploit, resulting in the diversion of around $1 million in fees from the Remilia Corporation. Charlotte Fang, co-founder of the project, stated that only Remilia's revenue from their experimental finance art project, Bonkler, was compromised, and user assets and reserves are safe. 

The attacker also took control of multiple social media accounts. Fang has identified the individuals involved and intends to pursue legal action to recover the stolen funds. The Milady NFT collection gained attention after receiving public endorsement from Tesla CEO Elon Musk.  

This article has been refined and enhanced by ChatGPT.