7-Day Markets Watch

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Last week, BTC experienced a slight dip, with a 1.15% decrease, lingering around the $26,000 mark, according to CoinMarketCap. This downturn comes despite a brief spike to $28,000 last Tuesday, driven by news of Grayscale Investment and the U.S. SEC. Meanwhile, Ether also saw a 1.58% weekly loss. Other top cryptocurrencies showed mixed trends, with XRP standing out with a 0.61% gain, despite being down 3.01% over the week.

On the investment front, digital asset products recorded a minor outflow of $11.2 million in the week ending September 1, a notable decrease from the $168 million outflow seen the previous week, as per a CoinShares report. Despite this, the trading volume of these products soared to $2.8 billion, a significant year-to-date increase. 

The total crypto market capitalization slightly contracted by 0.56% to $1.04 trillion, while trading volumes increased by 20.65% to $23.77 billion.

In macroeconomic news, all eyes are on the Federal Reserve's upcoming meeting on September 20 to discuss the current interest rates, which are at their highest level in 22 years. The CME FedWatch Tool predicts a 93% chance of maintaining the current rates, a rise from 78% on August 28. Further updates are expected from official speeches this Thursday and the release of the U.S. services PMI data for August on Wednesday.

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Eyes on the Price(s)

Bitcoin is experiencing a downward trend, struggling to rise above the $26,200 mark. Currently trading below $26,000, it faces immediate resistance at $25,650 and $26,000 levels. If it manages to surpass the $26,200 resistance, it might pave the way for a recovery towards $26,500 or potentially $27,000. However, failing to breach the $26,000 barrier could see it spiraling down further, with critical support levels at $25,350 and $25,000, and a potential dip to $24,500.

Similarly, Ethereum is also showing signs of a bearish trend, unable to sustain a recovery above the $1,650 zone. Currently trading below $1,640, it encounters resistance at $1,630 and $1,640 levels. A successful move above $1,640 could propel it towards the $1,670 or even $1,700 zone. However, if it fails to clear the $1,640 hurdle, a further decline could be on the horizon, with support levels at $1,610 and $1,600, and a potential fall to $1,580 or even $1,540.

Listings

Delistings

Binance delists 10 altcoin pairs, and Changelly delists BUSD.

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Ongoing IDO/ICO

Upcoming ICO

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Binance's Leadership Shuffle

TL: DR

• Binance's Global Head of Product, Mayur Kamat, steps down.
• Kamat significantly expanded Binance's user base during his tenure.
• Binance grapples with regulatory scrutiny and lawsuits in the U.S.
• Kristen Hecht was appointed as Binance's new Deputy Chief Compliance Officer.

🚪 Executive Exodus: Binance is witnessing another high-profile exit. Mayur Kamat, the Global Head of Product, has stepped down, marking the latest in a series of top brass departures at the exchange. Kamat, who joined Binance in January 2022, played a significant role in doubling the user base to over 150 million within 18 months, thanks to the introduction of various product offerings. His tenure, characterized by the launch of successful features such as Feed, Tax, and CeDeFi, leaves a legacy of substantial growth at the company.

🌩️ Navigating Regulatory Hurdles: Binance is currently sailing through turbulent waters, facing increased scrutiny from regulatory bodies worldwide. The U.S. SEC and CFTC have both targeted the exchange with lawsuits, alleging various violations and putting CEO Changpeng "CZ" Zhao in the hot seat. Despite the mounting challenges, Zhao maintains a defiant stance, accusing critics of spreading fear, uncertainty, and doubt (FUD) and asserting Binance's strong position in regulatory compliance. 

🔄 Leadership Reshuffle: Amidst the turmoil, Binance is undergoing a leadership metamorphosis. Following a series of executive exits in July, the company is focusing on bolstering its compliance efforts. Last month, Kristen Hecht stepped up as the new Deputy Chief Compliance Officer and Global Money Laundering Reporting Officer, indicating a strategic shift in the company's approach to navigating the complex regulatory landscape.

In other news,

• Despite facing increased regulatory scrutiny and legal troubles, Binance’s CZ, believes that Binance is "way ahead of the game" when it comes to regulatory compliance in the United States.
• Singapore's new president and former central bank chairman, thinks that crypto 'slightly crazy'.
• According to a new Kucoin report, half of the people in Turkey now own cryptocurrencies.

Stake's Security Breach

TL: DR

• Crypto betting platform Stake loses $40 million in a security breach.
• Unauthorized transactions involved the conversion of stolen assets to Ethereum.
• Stake founder emphasizes limited reserves in vulnerable hot wallets.
• The company, endorsed by Drake, works to restore trust and bolster security.

🔓 Security Breach at Stake: Crypto betting platform Stake encountered a significant security breach, losing about $40 million in funds. The unauthorized transactions occurred early Monday morning, Eastern Time, involving substantial amounts of Ethereum, Tether, USD Coin, and DAI. Stake confirmed the breach, stating that the transfers were unauthorized and originated from the platform's hot wallets, which are known for their vulnerability to hacks. Stake assured users that their funds are secure.

🔍 Investigation Underway: Blockchain security firms flagged the transactions as suspicious, initiating a flurry of investigations to trace the culprits. The stolen stablecoins were promptly converted into Ethereum, a popular digital asset, complicating the tracking process. Stake founder Ed Craven noted that the platform maintains minimal crypto reserves in hot wallets to mitigate potential losses from such incidents. The company is working to secure the affected wallets and resume operations shortly.

📈 Stake's Background: Established in 2017 by Ed Craven, Stake has grown to become one of the largest gambling companies globally, with gross gaming revenues of $2.6 billion last year. The platform, endorsed by celebrities including rapper Drake, who signed a $100 million annual endorsement deal in 2022, faces a significant challenge in restoring user trust and enhancing security measures following the breach.

In other news,

• The platform has reopened deposits and withdrawals and resumed services for users only five hours after the hack.
• South Korea plans to submit a bill to track and freeze cryptocurrencies and other virtual assets used by North Korea.

Gala Games Legal Drama

TL: DR

• Gala Games' CEO and director sue each other over allegations of financial misconduct involving millions in GALA tokens.
• The legal battle caused a 5% dip in GALA token value within 24 hours.
• Thurston seeks $750 million in damages, while Schiermeyer demands the return of allegedly stolen tokens plus damages.
• The company continues its operations in the Web3 gaming sector amidst the ongoing dispute.

🥊 Gala Games Founders at Legal Loggerheads: In a high-stakes courtroom drama unfolding in Utah, Gala Games' CEO Eric Schiermeyer and director Wright Thurston are suing each other, with both lawsuits filed on Thursday. Schiermeyer accuses Thurston of siphoning off $130 million in GALA tokens through his company, True North United Investments, which holds a significant stake in Gala Games. The CEO alleges that these tokens were later dispersed across multiple wallets controlled by Thurston and sold through a series of intricate transactions between September 2022 and May 2023.

💼 Counter Lawsuit: Meanwhile, Thurston counters with allegations of corporate waste against Schiermeyer, accusing him of unilateral decision-making and misuse of company assets amounting to millions of dollars, often for personal gains. Thurston is seeking a hefty $750 million in damages, claiming Schiermeyer misappropriated at least $600 million from the company's coffers. Schiermeyer's suit demands the return of the allegedly stolen GALA tokens, along with additional damages.

📉 Market Reaction: The legal battle has sent ripples through the market, causing a more than 5% dip in GALA's price within 24 hours, with the token currently trading at approximately $0.01657233. Despite the ongoing legal turmoil, Gala Games continues to be a prominent player in the Web3 gaming sphere, boasting a diverse portfolio of live and in-development titles, including the recently launched Champions Arena.

AI Quickies

• Following the footsteps of crypto.com, Binance and OKX, Bybit has just launched and AI tool that generate trading insights and answer technical questions from its market data.
• OpenAI has unveiled a Canva plugin for ChatGPT. This strategic move aims to simplify the process of creating visuals such as logos, banners, and more for businesses and entrepreneurs. We tried creating a banner for today’s newsletter, and it gave us some templates to edit. This is one of the suggested templates. Not exactly the response we were expecting.

• Are their worst fears becoming real, despite the prolonged WGA strike, the Indie film maker Pigeon Studio is using AI to streamline its workflow.
• Back to (IVY) school: Yale University welcomes the use of ChatGPT.
• Cathie Wood of Ark Invest is sold on a possible Bitcoin/AI convergence.

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Casio's NFT Timepiece Ticks on Polygon

TL: DR

• Casio partners with Polygon Labs to launch virtual G-SHOCK watch and NFT community access passes from September 23.
• Community members can propose and vote on designs for the G-SHOCK creator pass.
• The collaboration aims to foster seamless and carbon-neutral transactions on the Polygon platform.
• The initiative joins a series of brand collaborations on Polygon's network, marking G-SHOCK's 40th anniversary.

Casio, the renowned Japanese electronics maker, is stepping into the web3 space. The company is teaming up with Polygon Labs to introduce its iconic G-SHOCK watch as a virtual entity, initiating with a series of community access passes represented as NFTs. Starting from September 23, enthusiasts can snag one of 15,000 exclusive G-SHOCK creator passes, which not only serve as a ticket to a specialized Discord channel but also allow holders to have a say in the design of the pass itself.

This move isn't out of the blue; Casio recently sought trademark protection for virtual clothing and watches, and NFT-backed stores, indicating a strategic pivot towards the digital domain. The collaboration with Polygon, known for its speedy transactions and carbon-neutral operations, seems to be a match made in heaven, promising a seamless and user-friendly experience. Casio aims to foster a collaborative environment where the community can actively participate in shaping the future of the G-SHOCK brand, which recently celebrated its 40th anniversary.

Casio's venture mirrors the steps of other big names like Adidas, DraftKings, and Starbucks, who have already marked their territory in the Polygon ecosystem. Despite a recent dip in trading volumes of Polygon-based NFTs, the entrance of another global brand in the space signals a sustained interest and growth in the web3 sector. Keep an eye out for the collection if you're in one of the many countries it's launching in, including the U.S., UK, Japan, and several others.