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Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | November 16 - November 22, 2024

<h2>Market Turmoil and Allegations of Insider Trading</h2>The recent launch of Ai16z DAO’s ELIZA token on November 19, 2024,&nbsp;<a href="https://x.com/lookonchain/status/1858839531153486121">sent shockwaves</a> through the crypto community, igniting backlash and market upheaval. The token’s&nbsp;<a href="https://coin360.com/glossary/market-capitalization">market cap</a> soared to $80 million within an hour, eclipsing the community-backed eliza token that had debuted just four days earlier.&nbsp;This meteoric rise came at a cost—eliza’s value plummeted by 50%, plunging from its peak of $0.0915 to $0.032. The community’s frustration was palpable, as many felt blindsided by Ai16z’s abrupt pivot, contradicting earlier assurances that no official token would be launched.<figure class="image image_resized" style="width:85.25%;"><img alt="tweet_1858839531153486121_20241120_023539_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1858839531153486121_20241120_023539_via_10015_io_11zon_dc2b41f311.jpg"><figcaption>Source: X</figcaption></figure>The situation spiraled further when a flurry of counterfeit ELIZA tokens surfaced, exploiting the hype. Scammers hijacked legitimate DEXScreener links, misleading traders into purchasing fake coins for several hours. These scams underscored vulnerabilities in the&nbsp;<a href="https://coin360.com/glossary/decentralised-finance">DeFi</a> space, leaving investors reeling from financial losses.The controversy deepened when Shaw, a key figure in Ai16z DAO, revealed that the ELIZA launch was a last-minute decision to meet internal deadlines. Just ten days prior, he had suggested that Eliza’s tokenization was a challenge for developers but reiterated that Ai16z had no token plans.&nbsp;However, on November 16, an independent team launched the ai16zeliza token, which swiftly gained traction, reaching a $50 million market cap by November 19. Although Shaw neither endorsed nor disavowed this initial token, he&nbsp;<a href="https://x.com/Wahndo_/status/1857963229483581921">acknowledged</a> the transfer of 70 million tokens to the Ai16z treasury, further muddying the waters.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Scandals and Strategic Trades Define the Launch</h2>Allegations of insider trading soon emerged. A&nbsp;<a href="https://coin360.com/glossary/crypto-wallets">wallet</a> linked to an Ai16z managing partner reportedly&nbsp;<a href="https://twitter.com/Nate_Rivers/status/1858774467973181763">sold significant amounts</a> of the original eliza token before the ELIZA launch, raising suspicions of market manipulation.&nbsp;<figure class="image image_resized" style="width:85.5%;"><img alt="tweet_1858774467973181763_20241120_024514_via_10015_io.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1858774467973181763_20241120_024514_via_10015_io_085ebba29c.png"><figcaption>Source: X</figcaption></figure>Meanwhile, one trader strategically capitalized on the frenzy, transforming a $1,900 investment into $3.67 million&nbsp;<a href="https://twitter.com/lookonchain/status/1858790236786225649">within hours</a> by trading ELIZA. Despite these controversies, the new token stabilized at a $59 million market cap, while its predecessor has recovered to around $31 million.<figure class="image"><img alt="eliza.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/eliza_bd14dadda6.png"><figcaption>Source: Dexscreener</figcaption></figure>Adding to the drama, Ai16z promised a 10% airdrop of ELIZA tokens to holders of the original eliza. Yet, the gesture did little to placate the community, which accused Shaw of poor management and betraying their trust. Critics labeled the move as opportunistic, arguing that Ai16z prioritized internal goals over its commitment to decentralization.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>AICombinator: A Silver Lining?</h2>In the wake of this fallout, Ai16z and Ryze Labs introduced the AICombinator initiative. Backed by a $5 million fund, AICombinator aims to support AI-driven crypto projects by providing early access to the Eliza framework and financial resources for developers. This initiative is set to revolutionize sectors such as decentralized governance, gaming, and finance, blending blockchain with AI innovation.Shaw defended the dual launch strategy, asserting that it aligns with Ai16z’s mission to foster decentralized AI development. However, critics, including&nbsp;<a href="https://coin360.com/coin/tron-trx">Tron</a> founder Justin Sun, remained skeptical. Sun publicly&nbsp;<a href="https://x.com/justinsuntron/status/1858832012997513580">backed the original eliza</a> token, securing its listing on the&nbsp;<a href="https://coin360.com/coin/huobi-token-ht">HTX</a> exchange in an effort to stabilize its market position.<figure class="image image_resized" style="width:85.26%;"><img alt="tweet_1858832012997513580_20241120_024030_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1858832012997513580_20241120_024030_via_10015_io_11zon_7b650d19c9.jpg"><figcaption>Source: X</figcaption></figure>The ELIZA saga highlights the challenges of balancing innovation with community trust. As Ai16z leans into AI-led venture capital, the controversy underscores the necessity of clear communication and ethical leadership in the rapidly evolving blockchain space.This article has been refined and enhanced by ChatGPT.

Robot between rival AI girls on digital field

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Ai16z’s ELIZA Token Launch Triggers Community Outrage

<h2>Shanghai Court Ruling Sparks Crypto Debate</h2>A&nbsp;<a href="https://mp.weixin.qq.com/s?__biz=MzA3MjcxNDM5OQ==&amp;mid=2650784656&amp;idx=1&amp;sn=12cb5b68872ef0e5a8135b9709b5c356&amp;scene=21&amp;poc_token=HB45P2ejJJmXRjydGf0lOSi1QF3yuCIsHualIBNr">landmark ruling</a> from the Shanghai Songjiang People’s Court has reaffirmed that cryptocurrency ownership is not illegal in China, clarifying its status as personal property under Chinese law. The Nov. 18 judgment, delivered by Judge Sun Jie, establishes that while cryptocurrencies hold “property attributes,” their use is restricted to personal ownership and as virtual commodities rather than legal tender or investment tools.The ruling emerged from a dispute involving two companies over an initial coin offering, an activity explicitly banned in China. Judge Sun highlighted that while individuals are permitted to hold digital assets, businesses remain barred from engaging in any form of crypto investment, trading, or token issuance. She emphasized that virtual currencies lack legal tender status but retain property value, writing, “Although it is not illegal for an individual to simply hold virtual currency, commercial entities cannot participate in virtual currency investment transactions or even issue tokens on their own at will.”This nuanced legal position aligns with regulatory provisions issued by the People’s Bank of China and other authorities, which strictly control crypto-related business activities while avoiding a complete prohibition on personal ownership. Analysts suggest the judgment underscores the Chinese government’s continued wariness of cryptocurrencies as a potential destabilizing force in the financial system.The ruling has sparked optimism among global crypto enthusiasts, with many interpreting it as a subtle softening of China’s stringent stance.&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a> advocate&nbsp;<a href="https://x.com/maxkeiser/status/1859553310082040006">Max Keiser</a> hailed it as a sign of Bitcoin’s growing influence, while&nbsp;<a href="https://x.com/elindinga/status/1859562991001252012">Eliézer Ndinga</a>, VP at 21Shares, pointed out that the legal framework for personal crypto ownership in China remains unchanged. Ndinga noted that China’s policy differs significantly from historical precedents like the United States’ 1933 Executive Order 6102, which prohibited gold ownership.Adding to the speculation of a potential shift, Nano Labs, a Chinese crypto mining chip manufacturer, has reportedly begun accepting Bitcoin payments. Despite ongoing restrictions on commercial activities, these developments coincide with Bitcoin’s meteoric rise, trading above $98,000 according to Coin360 data, bolstered in part by Donald Trump’s re-election victory.While China maintains its cautious approach, this ruling is seen by many as a recognition of the inevitability of digital assets, reinforcing their role as a legitimate form of personal property in the face of stringent commercial prohibitions.This article has been refined and enhanced by ChatGPT.

Robot building pastel digital tower under glowing law-inspired sunrise

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Cryptocurrency Declared Personal Property in China; Business Use Remains Prohibited

<h2>Critical Bug Halts Network Operations</h2><a href="https://coin360.com/coin/sui-sui">Sui</a> Network encountered its first significant outage since launching its mainnet, disrupting operations for two hours on November 21, 2024. The incident, which began at 9:15 AM UTC, was attributed to a bug in the transaction scheduling logic. This issue caused validator nodes to crash, halting block production entirely.&nbsp;While the Sui Foundation quickly confirmed the issue and <a href="https://twitter.com/SuiNetwork/status/1859569509687849469">deployed a fix</a> within two hours, the outage exposed critical vulnerabilities in the network’s infrastructure, sparking industry-wide discussions about the platform's resilience.<figure class="image"><img alt="tweet_1859569509687849469_20241122_015053_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1859569509687849469_20241122_015053_via_10015_io_11zon_5c718292ca.jpg"><figcaption>Source: Sui Network/ X</figcaption></figure>Adding to the concerns, security firm ExVul suggested that an additional DOS (Denial of Service) bug linked to an integer overflow might have exacerbated the issue. Reports indicated the vulnerability’s details were available on GitHub, accompanied by a proposed patch.&nbsp;This speculation raised questions about the network’s preparedness and the rigor of its pre-launch testing. Historical context reveals that while Sui experienced minor disruptions during testnet phases in March and June 2024, this marked the first major incident affecting its mainnet.The impact on Sui’s ecosystem was immediate and tangible. Block production was entirely frozen during the downtime, prompting major exchanges like&nbsp;<a href="https://coin360.com/exchange/upbit">Upbit</a> to suspend&nbsp;<a href="https://coin360.com/coin/sui-sui">SUI</a> token deposits and withdrawals. Market reaction was equally swift, with SUI’s price plunging by 11% to approximately $3.40.&nbsp;Although it later stabilized at around $3.60 after recovery efforts, the incident highlighted the fragility of blockchain networks in responding to unexpected bugs. Over the past 30 days, SUI had climbed 75% in value, making the sharp drop a stark reminder of how technical issues can disrupt even high-performing assets.<figure class="image"><img alt="chart (2).png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/chart_2_c55c1d2e2b.png"></figure>Critics seized the opportunity to question Sui's robustness. Comparisons to&nbsp;<a href="https://coin360.com/coin/solana-sol">Solana</a>, often cited as a competitor, emerged, with some industry voices pointing to the "Solana Killer" label as premature. Crypto YouTuber&nbsp;<a href="https://x.com/EverythingAjay/status/1859538961464533471">Ajay Kashyap</a> was among those expressing skepticism, while proponents of Sui emphasized the speed of recovery and noted that other networks have faced far longer outages.<figure class="image"><img alt="tweet_1859538961464533471_20241122_014957_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1859538961464533471_20241122_014957_via_10015_io_11zon_ad0512281b.jpg"><figcaption>Source: Ajay Kashyap/ X</figcaption></figure>This event underscores broader challenges in blockchain technology. Synchronization failures among validator nodes and software bugs like those seen on Sui highlight the need for more rigorous testing. However, the network's quick resolution of the issue and partial market recovery showcased its resilience and the critical role of validators and community collaboration in mitigating disruption.&nbsp;Lessons drawn from this incident point to the importance of exhaustive testing and proactive engagement with open-source contributors to strengthen blockchain infrastructure against future challenges.This article has been refined and enhanced by ChatGPT.

Humanoid robot mending cracks on a glowing network grid

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Sui Network Recovers from Two-Hour Downtime Caused by Scheduling Bug

<h2>Investment Firms Bet Big on Solana’s Future</h2>Four prominent investment funds—VanEck US, 21Shares, Bitwise Invest, and Canary Funds—have filed with the Chicago Board&nbsp;<a href="https://coin360.com/glossary/options-contracts">Options</a> Exchange (CBOE) to launch exchange-traded funds (ETFs) centered on&nbsp;<a href="https://coin360.com/coin/solana-sol">Solana</a> (<a href="https://coin360.com/coin/solana-sol">SOL</a>). These filings mark a significant move, reflecting growing institutional interest in simplifying crypto investment for mainstream audiences. The CBOE, a pivotal hub for financial products, adds credibility to these ambitious ETF plans.<figure class="image"><img alt="tweet_1859897778048204853_20241122_205432_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1859897778048204853_20241122_205432_via_10015_io_11zon_20cb1c55b1.jpg"><figcaption>Source: @SolanaFloor/ X</figcaption></figure>Solana ETFs represent a practical investment tool, allowing investors to gain exposure to the cryptocurrency without the complexities of managing digital wallets or private keys. By functioning much like traditional stock market investments, ETFs reduce the barriers to entry for those hesitant about navigating crypto's technical intricacies. This approach, if approved, could appeal to a broader audience, particularly those seeking convenience and security in their financial ventures.<figure class="image"><img alt="tweet_1810410517522944415_20241122_205257_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1810410517522944415_20241122_205257_via_10015_io_11zon_b4cd93c696.jpg"><figcaption>Source: @NateGeraci/ X</figcaption></figure>Solana’s rapid rise underscores its appeal. With a&nbsp;<a href="https://coin360.com/glossary/market-capitalization">market capitalization</a> exceeding $122 billion at its latest all-time high of $263, SOL has positioned itself as the third-largest cryptocurrency globally. Its robust blockchain infrastructure, characterized by high-speed transactions and lower costs, has driven adoption across various industries. Solana processes over 50 million transactions daily, generating more than $540 million in revenue in 2024 alone. Its popularity among developers and projects has bolstered its reputation as a leading blockchain platform.<figure class="image"><img alt="chart.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/chart_c049cc3b8c.png"></figure>The timing of these filings is noteworthy. Just days prior, Bitwise Asset Management&nbsp;<a href="https://coin360.com/news/bitwise-solana-etf-plans">registered a statutory trust</a> in Delaware, signaling progress toward a spot Solana ETF. These actions highlight the surging interest in Solana as an asset and the broader trend of streamlining access to cryptocurrency investments. Should these filings gain approval, they could usher in a new wave of crypto investment options, potentially prompting other funds to follow suit.This strategic pivot by major financial institutions reinforces the belief that Solana’s innovation and scalability hold long-term promise in the rapidly evolving digital asset landscape. While regulatory hurdles remain, the momentum behind Solana ETFs signals a significant step toward integrating cryptocurrencies into traditional investment frameworks.This article has been refined and enhanced by ChatGPT.

Interacting robot displays Solana innovation through minimalistic digital visuals

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Four Funds Aim to Make Solana ETFs a Reality

<h2>Market Surge and Speculation on Future Policy</h2>Gary Gensler’s announcement of his resignation as SEC Chair sent ripples through both regulatory circles and the cryptocurrency industry. Confirmed by the SEC on November 21, 2024, Gensler will&nbsp;<a href="https://x.com/GaryGensler/status/1859658192298574096">step down</a> on January 20, 2025, aligning his departure with Donald Trump’s return to the presidency.&nbsp;<figure class="image"><img alt="tweet_1859658192298574096_20241122_220448_via_10015_io.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1859658192298574096_20241122_220448_via_10015_io_507c18ef67.png"><figcaption>Source: Gary Gensler/ X</figcaption></figure>Gensler’s tenure, beginning in 2021, was marked by an aggressive regulatory stance that saw over 100 enforcement actions targeting cryptocurrency companies and projects. His insistence that approximately 10,000 tokens register as securities drew sharp criticism from the crypto community, despite his claims of fostering industry cooperation through measures like spot&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a> ETF approvals.The announcement triggered a wave of reactions on Crypto Twitter, ranging from celebration to mockery. Prominent figures like billionaire&nbsp;<a href="https://x.com/mcuban/status/1859665273260999137">Mark Cuban</a> shared Leonard Cohen’s “Hallelujah,” while House Majority Whip&nbsp;<a href="http://v">Tom Emmer</a> bluntly tweeted, “Good riddance.” Shapeshift CEO&nbsp;<a href="https://x.com/ErikVoorhees/status/1859669241731088766">Erik Voorhees</a> questioned the legacy of investor protection under Gensler, whose resignation tweet amassed over 4 million views and 21,000 likes within hours.&nbsp;Political shifts add another layer to the narrative, with Summer Mersinger, a Republican CFTC commissioner, emerging as a potential successor. Her appointment could herald a more crypto-friendly regulatory era, aligning with Trump’s vision of making the U.S. “the crypto capital of the world.”News of Gensler’s resignation coincided with a historic crypto market rally. Bitcoin reached a record-breaking $99,000, commanding over 60% market dominance as the total&nbsp;<a href="https://coin360.com/glossary/market-capitalization">market capitalization</a> soared to $3.44 trillion. Altcoins posted significant gains, with&nbsp;<a href="https://coin360.com/coin/solana-sol">Solana</a> (<a href="https://coin360.com/coin/solana-sol">SOL</a>) hitting $263, an 11% daily increase attributed to reduced regulatory uncertainty and a surge in spot SOL ETF filings.&nbsp;<figure class="image"><img alt="Coin360.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/Coin360_5a1a42f78f.png"></figure><a href="https://coin360.com/coin/xrp-xrp">XRP</a> surged 25% to $1.42, buoyed by optimism surrounding&nbsp;<a href="https://coin360.com/coin/xrp-xrp">Ripple</a>’s legal battle with the SEC, while&nbsp;<a href="https://coin360.com/coin/cardano-ada">Cardano</a> (<a href="https://coin360.com/coin/cardano-ada">ADA</a>) rose 12% to $0.893, marking its highest level since April 2022.&nbsp;<a href="https://coin360.com/coin/stellar-lumens-xlm">Stellar</a> (<a href="https://coin360.com/coin/stellar-lumens-xlm">XLM</a>) mirrored XRP’s upward trajectory with an 18% climb to $0.288, and&nbsp;<a href="https://coin360.com/coin/cronos-cro">Cronos</a> (<a href="https://coin360.com/coin/cronos-cro">CRO</a>) jumped 14% to $0.20.&nbsp;<a href="https://coin360.com/coin/ethereum-eth">Ethereum</a> lagged slightly, gaining 8% to $3,418, still trailing its all-time high by 30%.Market optimism extends to speculation about regulatory changes under new leadership. Trump’s reported interest in creating a dedicated White House post for cryptocurrency policy has fueled hopes for less stringent oversight and broader adoption.&nbsp;The community’s enthusiasm reflects a belief that a shift away from Gensler’s confrontational approach could unlock new growth avenues for the crypto sector. As the market celebrates its unprecedented highs, the industry watches closely for signs of a transformative policy shift that could redefine the future of digital assets.This article has been refined and enhanced by ChatGPT.

Robot climbs glowing token stairs in swirling pastel aurora

Gary Gensler Resigns as SEC Chair: A Crypto Era's Turning Point

Market Surge and Speculation on Future Policy

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Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | November 16 - November 22, 2024

Ai16z’s ELIZA Token Launch Triggers Community Outrage

Cryptocurrency Declared Personal Property in China; Business Use Remains Prohibited

Sui Network Recovers from Two-Hour Downtime Caused by Scheduling Bug

Four Funds Aim to Make Solana ETFs a Reality