Grayscale Introduces New Crypto Funds: Bittensor and Sui
Grayscale Investments has unveiled two new funds aimed at the burgeoning sectors of decentralized artificial intelligence and scalable blockchain technology. The Grayscale Bittensor Trust will invest in the TAO token associated with the Bittensor protocol, while the Grayscale Sui Trust will focus on the SUI token from the Sui blockchain. These funds are exclusively available to accredited investors and are intended to be listed on secondary markets, with a 2.5% annual management fee and no initial charges.
Polkadot Struggles to Surpass $5 Threshold
Polkadot’s price (COIN:DOTUSD) experienced a decline of over 17% last week, dropping to $3.75 before a slight recovery to $4.54. The asset is currently facing significant resistance at the $5 mark, with technical indicators reflecting a pronounced bearish trend. The Directional Movement Index (DMI) reveals substantial selling pressure, and Polkadot’s price remains below both short and long-term moving averages, indicating hurdles to a robust recovery.
Nexera Hit by $1.8 Million Exploit, Halts Trading
Nexera, previously known as AllianceBlock, faced a security breach that led to a theft of approximately $1.8 million, as reported by Cyvers. The NXRA token contract has been paused, and trading on decentralized exchanges has been suspended, with platforms such as Kucoin and MEXC also ceasing operations. Following the exploit, the NXRA token plummeted by 45%, trading at $0.034417. The attacker, linked to other security breaches, now possesses 32.5 million NXRA tokens and $555,000 worth of USDT.
USDC Integration in Arbitrum’s Orbit Chains
Arbitrum and Circle have joined forces to allow USD Coin (USDC) to function as a gas token on Orbit Chains, a scalability solution built on Ethereum. This integration is anticipated to streamline transaction processes, enhancing both efficiency and predictability while providing greater stability and accessibility. Since January, Orbit Chains have accepted ERC20 tokens for gas fees, and the addition of USDC is expected to enhance the experience for users and developers alike.
Contrasting Trends in Bitcoin and Ethereum ETFs
On August 6, bitcoin exchange-traded funds (ETFs) observed outflows totaling $148.6 million, marking a third consecutive day of declines. Fidelity’s ETF experienced outflows of $64.5 million, Ark’s ETF saw $28.9 million, Franklin Templeton recorded $23.0 million, and Grayscale’s ETF had $32.2 million in outflows. Conversely, ethereum ETFs attracted $98.4 million in inflows, with BlackRock’s ETF leading the way at $109.9 million, followed by Fidelity’s ETF with $22.5 million. Grayscale’s ETF noted outflows of $39.7 million, while other ethereum ETFs showed minimal changes.
MVRV Indicates Potential Recovery
Bitcoin’s price (COIN:BTCUSD) dipped by 1.5% within 24 hours, settling at $55,149 after reaching an intraday high of $57,757.15. This decline followed remarks from Bank of Japan Deputy Governor Shinichi Uchida about maintaining current interest rates, which alleviated some investor anxiety. Meanwhile, the altcoin Solana (COIN:SOLUSD) rose above $150 before settling at $145.38, posting a slight gain of 0.8%. The recent downturn of stocks from the “Magnificent Seven,” including major firms like Nvidia and Microsoft, adversely affected bitcoin’s valuation. A correlation exists between these stocks and bitcoin, suggesting that further declines in equities could diminish investor interest in cryptocurrencies. Continued stock market pressure might drive bitcoin below the $50,000 threshold, with speculations of a further drop to $40,000. However, Fernando Pereira from Bitget mentioned that the MVRV (market value to realized value) ratio indicates that traders’ accumulated losses have surpassed those seen during the FTX collapse, hinting at a potential short-term bottom and a more tranquil market week ahead.
PlusToken Fund Movement Sparks Market Anxiety
Wallets associated with the PlusToken Ponzi scheme, which defrauded investors of $4.2 billion, initiated transfers of significant amounts of ether (COIN:ETHUSD) on Wednesday. A total of over 2,800 ETH was moved to a new wallet, raising concerns about potential selling pressure in the market. This transfer comes on the heels of the seizure of tokens by Chinese authorities in 2020 following the operators’ arrests.
Bitcoin Mining Sees Growth in July, Led by Marathon Digital
In July, the top 11 bitcoin mining companies increased their total production by 10.9%, mining 3,217 BTC. Marathon Digital Holdings (NASDAQ:MARA) topped the list with 692 BTC, followed by CleanSpark (NASDAQ:CLSK) with 494 BTC, and Core Scientific (NASDAQ:CORZ) with 411 BTC. Riot Platforms (NASDAQ:RIOT) reported a notable 45% increase, mining 370 BTC. Core Scientific was the sole company not to boost its output. Despite the sector’s combined market capitalization of $21 billion, challenges remain due to the impending halving and increasing mining difficulty, with an adjustment expected on August 15.
Ripple Seeks to Advance Blockchain in the Middle East Through New Partnership
Ripple is partnering with the DIFC Innovation Hub to promote blockchain adoption across the Middle East. This collaboration aims to connect developers and institutions within the DIFC innovation ecosystem, which hosts over 1,000 companies. Additionally, Ripple is contemplating the establishment of a new independent XRPL Foundation to oversee the XRP Ledger community and its development, following the transition of the previous foundation to the Inclusive Financial Technology Foundation (INFTF), which now encompasses a broader technological focus.
Jump Trading’s Ether Sales May Signal Market Correction Conclusion
Jump Trading is actively offloading Ether (COIN:ETHUSD), having sold over 11,500 ETH valued at approximately $29 million, with plans to sell an additional $48 million. The firm retains 21,394 Wrapped Lido Staked ETH (COIN:WSTETHUSD), worth $63 million, suggesting a potential decrease in selling pressure. As the recent market correction drove Ether to five-month lows, signs of recovery may soon emerge.
Telegram’s Role in Promoting Widespread Cryptocurrency Adoption
With its extensive global user base, Telegram is poised to facilitate the entry of new users into the cryptocurrency space. Ruslan Fakhrutdinov from X10 emphasized that the platform could seamlessly onboard new investors through its Mini App for digital trading. Telegram’s user-friendly interface and familiarity could play a significant role in achieving the first billion cryptocurrency users and fostering mass adoption through accessible solutions.
Li.Fi Expands Into Solana to Boost Cross-Chain Functionality
The DeFi protocol Li.Fi is expanding its operations into the Solana ecosystem, aiming to enhance cross-chain interactions and improve the user experience for decentralized applications (dApps). This move follows a recent $10 million hack affecting the Ethereum and Arbitrum networks, which the team has since addressed. The integration with Solana will facilitate asset swaps and bridging via Mayan and CCTP, in addition to collaborating with the DEX Jupiter. Li.Fi also plans to support future SVM chains.
Tonkeeper Introduces Signer App for Enhanced Security of Crypto Assets
The Tonkeeper wallet has launched the Signer app, designed to secure private keys on the Ton blockchain. This app aims to reduce hacking risks by storing encrypted keys externally from the wallet itself. It offers two operational modes: one prioritizing convenience and the other focusing on maximum security via an offline device. Daniel Cawrey from Tonkeeper emphasized that the app introduces an extra layer of defense against theft and transactional errors.
Blockchain Technology Cuts Costs and Errors in Aviation Operations
A study conducted at Heathrow Airport has demonstrated that blockchain technology can lead to a 7% reduction in cargo handling costs for airlines. By enhancing operational efficiency, blockchain solutions can diminish response times and communication errors by up to 90%. The ongoing digitalization of processes and the cost savings from eliminating outdated systems could revolutionize an industry currently plagued by over $1.6 billion in annual losses due to inefficiencies.
Bitstamp Partners with Stripe to Simplify Crypto Purchases in Europe
Bitstamp has entered into a partnership with Stripe to streamline the acquisition of cryptocurrencies such as Bitcoin within the European Union. As of August 7, users can convert fiat currency into cryptocurrency through the Stripe platform, which provides an optimized checkout experience and nearly instantaneous settlement. Stripe offers two options for its conversion services: an embeddable widget and a hosted platform. Bitstamp will oversee conversions across various cryptocurrencies, thus expanding its Bitstamp-as-a-Service offering.
Mox Launches Cryptocurrency ETFs in Hong Kong
Mox, a subsidiary of Standard Chartered, has launched bitcoin (COIN:BTCUSD) and ether (COIN:ETHUSD) exchange-traded funds (ETFs) on its new investment platform in Hong Kong. The company also plans to enable direct cryptocurrency investments through a licensed exchange. Mox offers competitive fees, charging 0.12% for ETFs listed in Hong Kong and a mere 0.01% for those in the U.S., making it an attractive option for clients seeking lower costs.
Chinese Investors Find Ways Around Crypto Ban
Despite China’s stringent regulations against cryptocurrencies, investors are finding innovative methods to engage with the market. Many are utilizing VPNs and peer-to-peer (P2P) trading platforms to buy and sell cryptocurrencies on exchanges like OKX and Binance. Activities like airdrop farming and P2P trading remain popular, despite the legal risks involved. While the ban is clear in its intention, it does not entirely obstruct access to the market, and speculation about a potential reversal of the ban remains unlikely given China’s focus on promoting the digital yuan.
IMF Acknowledges El Salvador’s Progress in Bitcoin Adoption
The International Monetary Fund (IMF) has reported that the risks associated with El Salvador’s adoption of bitcoin (COIN:BTCUSD) as legal tender have not materialized as anticipated. On August 6, an IMF delegation led by Raphael Espinoza indicated progress in discussions with the country, which are centered on enhancing public finances and increasing transparency. While potential risks have yet to surface, there is an acknowledgment of the necessity for improved governance and risk mitigation in the financial sector. El Salvador continues to grow its bitcoin reserves, currently valued at approximately $332 million.
Federal Reserve Report Shows Compliance Among Ethereum Block Builders with Tornado Cash Sanctions
A recent report from the Federal Reserve Bank of New York indicates that, despite some residual activity, Ethereum block builders have generally adhered to sanctions imposed on Tornado Cash (COIN:TORNUSD). The favorable court ruling for the Office of Foreign Assets Control (OFAC) in August 2023 has fostered greater compliance, although some resistance to censorship remains. Usage of Tornado Cash has significantly declined since the U.S. Treasury Department enacted restrictions in August 2022.
Eisenberg Seeks to Overturn Verdict in Mango Markets Exploitation Case
Avraham “Avi” Eisenberg has filed a motion to overturn his conviction for fraud and commodity manipulation associated with the Mango Markets incident. In a memorandum dated August 5, he argues that the verdict is flawed due to legal and evidential issues while also contesting the court’s jurisdiction. Convicted in April, Eisenberg asserts that his actions constituted a legal trading strategy rather than criminal behavior. Sentencing, initially scheduled for July 29, has yet to take place.
