Justin Bieber’s NFTs suffer 95% devaluation
Justin Bieber, famous singer and international star, has been facing losses since joining the notorious Bored Ape Yacht Club (BAYC) of the NFT world last year. The two NFTs he acquired have suffered a 95% devaluation and are now worth much less than what they initially paid. NFTs have gained popularity as a vehicle for speculation in 2021, but Bieber’s have been criticized for not being particularly rare. The liquidity of NFTs has also been decreasing, resulting in a drop in prices recently.
Traders migrate to centralized venues in the crypto market
Traders are increasingly migrating from decentralized to centralized trading venues in the cryptocurrency market. Monthly volumes of decentralized exchanges versus centralized exchanges declined from 22% to 16.8% between May and June, and fell further to below 14% in early July. Increased institutional interest in cryptocurrencies, driven by BlackRock’s (NYSE:BLK) bitcoin ETF order, has attracted investors to centralized venues. This marks a shift from previous interest in “memecoins” and highlights the entry of institutions into the crypto space.
Coinbase increases market share despite SEC lawsuit
Despite the SEC’s lawsuit against Coinbase (NASDAQ:COIN), the company achieved its highest market share since January 2023 in June, according to data from Kaiko. Coinbase has consistently controlled around 50% of trading activity on US regulated exchanges, but saw its market dominance rapidly increase to 64% in June, when the SEC charges were filed. Other American platforms such as Kraken and Bitstamp have also increased their market share. While facing the lawsuit, Coinbase still established partnerships with traditional financial institutions, indicating a growing acceptance of cryptocurrency companies in the mainstream financial sector. On the other hand, Binance US market share dropped sharply to less than 1% following the SEC lawsuit and lack of liquidity due to disruption of USD payment channels by its banking partners.
Supply of Bitcoin and Ethereum on exchanges drops, according to Goldman Sachs
According to a report by Goldman Sachs (NYSE:GS), there was a drop in June in the supply of bitcoin (COIN:BTCUSD) and ether (COIN:ETHUSD) on exchanges, as stricter regulations and crime concerns have led holders to prefer self-custody. BTC supply dropped 4%, hitting the lowest level since November 2020, while ETH supply dropped 5.8%, reaching levels not seen since May 2018. This trend is driven by regulations, cyberattacks and the preference in own custody. The report also highlighted that there was an increase in BTC miner inventory sales in June, and address activity for BTC and ETH rose by 9.8% and 48.2% respectively compared to the previous month.
Solana registers increase in the total amount blocked in liquid staking
The Solana ecosystem has seen a significant increase in the total blocked amount (TVL) in liquid staking protocols, with a 91% increase since the beginning of the year. Protocols such as Marinade Finance, Lido, Jito, JPool and Socean now collectively hold $187 million in staked Solana tokens (COIN:SOLUSD), representing 69% of the total TVL on the Solana network. This growth can be attributed to the overall rise of the category of Liquid Staking Derivatives (LSDs) in the crypto space, driven by the demand generated by staking on Ethereum. Marinade Finance is a leader in the Solana ecosystem with 62% market share.
Cameron Winklevoss public ultimatum to CEO of Digital Currency Group
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, has given a public ultimatum to Barry Silbert, CEO of Digital Currency Group (DCG), regarding debt restructuring. In an open letter, Winklevoss laid out Gemini’s “best and last offer” to settle the debt, giving Silbert just two days to respond. The dispute between Winklevoss and Silbert began when Genesis, DCG’s parent company, halted withdrawals and filed for bankruptcy. Winklevoss claims Genesis owes $1.2 billion to Gemini Earn users. In his final offer, Winklevoss proposed a five-year payment plan of $1.465 billion. If the offer is not accepted, Gemini threatens to take legal action against DCG and Silbert.
Bitget launches cryptocurrency lending product
Crypto derivatives trading platform Bitget is launching its Crypto Loans product, aimed at attracting users unhappy with traditional lending institutions. The product allows users to obtain loans backed by cryptocurrencies, using a digital asset as collateral. Bitget has simplified the lending process by providing finance based on the market value of the pledged collateral, with automatic disbursement and specific interest rates. The platform also supports fast withdrawals and quick review of loan applications. Bitget recently acquired a controlling stake in BitKeep Wallet and launched a $100 million venture fund.
Huobi fixes vulnerability that exposed user assets
Cryptocurrency exchange Huobi has resolved a vulnerability that exposed users’ assets for two years. A hacker discovered that Huobi accidentally published a file containing Amazon Web Services (AWS) credentials in June 2021, leaking contact and account information for 4,960 users. This data breach could have been exploited for cryptocurrency theft, but the hacker notified Huobi, who revoked the credentials and resolved the issue. The exchange claims that the breach did not involve sensitive information or affect the security of users’ funds.
ERC 7265 standard proposal seeks to strengthen security of DeFi protocols
A group of Ethereum community members proposed the ERC 7265 standard to improve the security of DeFi protocols. This standard would introduce a “circuit breaker” that would allow DeFi protocols to add a layer of protection to their smart contracts to stop the transfer of tokens in the event of a hack. The goal is to mitigate losses caused by DeFi attacks, which already total nearly $3 billion. The proposed standard needs to be accepted and implemented by the Ethereum core team after approval by the community.
DMG announces preliminary june mining results
DMG Blockchain Solutions, a blockchain and cryptocurrency company offering sustainable and vertically integrated solutions, announced preliminary June mining results, with the extraction of 53.2 bitcoins and a hash rate of 0.71 EH/s. The company also disclosed that it holds 509 bitcoins, but faces restrictions on access to around 49 bitcoins and 45 ethers due to a regulatory investigation into the Prime Trust, in which DMG has a stake. The company does not expect this situation to affect its operations or business plans. In addition, DMG has granted stock options to employees and directors.
Hong Kong considers launching its own stablecoin
Hong Kong is considering launching its own stablecoin, called HKDG, to compete with established stablecoins like USDT (COIN:USDTUSD) and USDC (COIN:USDCUSD). The proposal, co-authored by prominent figures from academia and industry, aims to strengthen Hong Kong’s position on the digital currency scene. The HKDG would be backed by government foreign exchange reserves, boosting financial innovation and reinforcing Hong Kong’s leadership in the blockchain sector. While private institutions can also issue Hong Kong dollar-linked stablecoins, the proposal advocates a bolder government approach to ensure greater credibility and lower risk. The introduction of the HKDG would bring benefits such as de-dollarization, injecting liquidity into financial markets and facilitating the digitization of traditional assets. Despite the potential risks, the benefits of the HKDG outweigh the drawbacks, and the issuance of this stablecoin could strengthen Hong Kong’s role as an international financial hub.
Cryptocurrency exchanges in South Africa will be required to obtain licenses
South Africa’s Financial Sector Conduct Authority (FSCA) has announced that all cryptocurrency exchanges operating in the country will be required to obtain licenses by the end of the year. This measure is intended to regulate the expanding industry and protect South African consumers from the risks associated with cryptographic transactions. FSCA has already received around 20 license applications and the deadline for submitting applications is November 30th. Companies that continue to operate without a license may face enforcement actions, such as closures or fines. In addition, the FSCA is also committed to educating consumers about cryptocurrencies and raising awareness of the risks involved.
Jinan implements digital yuan payments on all bus routes
Jinan, capital of eastern China’s Shandong province, has implemented yuan digital payments on all bus routes, encouraging the adoption of the Chinese central bank’s digital currency. The city piloted two bus lines and, following success, rolled out the new payment method to the entire bus network. Passengers who choose to pay with the digital yuan will receive fare discounts. This initiative is part of efforts to promote the use of the digital yuan in the country, which include paying salaries of public servants and its use in international trade.
UK passes cryptocurrency seizure law in crimes
The United Kingdom took a step forward in the fight against economic crimes and corporate transparency with the approval, by the upper house of Parliament, of the Bill that will allow the seizure and freezing of cryptocurrencies used in criminal activities. While no changes have been made to the project’s cryptographic issues, modifications have been made to address terrorism cases and assist in identifying crime-related cryptocurrencies. Additionally, an amendment will make it possible for courts to order the seizure and freezing of cryptocurrencies involved in criminal offences. The next step is for the bill to return to the House of Commons for the final stages before it is enacted into law.