7-Day Market Moves

Last week, Bitcoin (BTC) went up by 2.85% and Ethereum (ETH) gained 5.23%. This morning, Bitcoin hit a high of $31,371, the highest it's been since June 2022.

The investment company BlackRock, revised their application for a Bitcoin Exchange Traded Fund (ETF) this week. The original application didn't meet the SEC's expectations, prompting BlackRock to make necessary amendments. They've enlisted Coinbase to monitor the market activity of the ETF. Despite recent legal actions by the SEC against Binance.US and Coinbase, other companies are still keen to get their Bitcoin ETFs approved.

Among altcoins, Polygon's Matic token made notable gains of 10.18% over the past week. This growth comes despite the upcoming removal of Polygon and other tokens from the Revolut digital bank platform for U.S. users.

Zooming out, the June PMI marks the eighth month in a row of contraction, coming in lower than the projected 47.0 and raising concerns about a potential recession, according to Reuters.

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As for U.S. economic policy, New York Federal Reserve President John Williams is set to give a speech on Wednesday, potentially providing insights into the Fed's inflation perspective. The Fed's next rate meeting is scheduled for July 26, with the CME FedWatch Tool predicting an 89.9% chance of a 25-basis-point rate increase. Meanwhile, the probability of no rate increase has shrunk to 10.1%.

BTC and ETH are HODLing

Bitcoin has been showing some strong resilience, maintaining stability above the $30,500 support level and initiating a slow but steady climb above the $30,820 resistance. The momentum even pushed BTC to break through the $31,000 barrier, and it's currently trading above $30,850.

A key trend in the BTC chart to note is a bullish trend line forming, suggesting BTC may be preparing for another rally. Currently, BTC faces resistance near the $31,350 level. However, if it manages to clear this hurdle, we could see it soar, with $32,000 being the next significant resistance point. A successful break above this could see BTC aim for $32,500 or even $33,200.

Ethereum (ETH) has been holding strong above the $1,850 support level and has recently started a fresh upward trend, even outperforming Bitcoin. Currently, ETH is wrestling with the resistance at $1,975, but if it can break through, it could shoot towards the $2,000 level. If Ethereum slips below the support at $1,950, we could see it drop towards $1,930, and if the decline continues, $1,900 or even $1,880 might be in the cards.

Listings

Delisting

Poloniex delisted 15 tokens, LBank delisted 4. See the delisted tokens here.

Ongoing IDO/ICO

Upcoming IDO/ICO

Bitcoin Depot Makes Its NASDAQ Debut

TL: DR

• Bitcoin Depot, the top crypto ATM operator, debuted on Nasdaq, doubling its share price post an $885 million merger.
• The company controls 20% US and 17.6% global crypto ATM market.
• CEO Brandon Mintz sees opportunities for sector consolidation due to market fragmentation.
• The company aims to expand ATM installations at major retailers and regional chains.

Bitcoin Depot, the world's leading operator of cryptocurrency ATMs, made a striking debut on the Nasdaq on Monday. After merging with special purpose acquisition company GSR II Meteora (GSRM) in a deal valued at $885 million last August, the company's share price more than doubled in pre-market trading. With this listing, the Atlanta-based firm, now trading under the ticker "BTM", made history as the first crypto ATM operator to grace a major U.S. stock market.

Crypto ATMs, like the ones operated by Bitcoin Depot, allow users to buy cryptocurrencies directly with cash or debit cards and then transfer the digital assets into a specific wallet.

Bitcoin Depot, which commands a 20% share of the U.S. crypto ATM market and 17.6% worldwide (based on Coin ATM Radar data), isn't stopping at 6,000 machines. CEO Brandon Mintz sees a vast potential for growth and consolidation in this sector, as it remains "highly fragmented."

He also shared that there hasn't been much M&A activity in the crypto ATM space compared to other sectors of the crypto and blockchain industry. As part of their growth plan, Bitcoin Depot will continue installing ATMs at various retail locations, building on the success of having established ATMs at more than 2,000 Circle K stores in the last two years.

In other news,

• Coinbase shares surge after more ETF partnerships revealed. Read more.
• Gemini’s Winklevoss threatens DCG with lawsuit within 72 hours. Read more.

Hive Blockchain to Enable AI Training

TL: DR

• Hive Blockchain plans to provide customers with access to its data centers for AI training, prioritizing privacy over rivals like OpenAI.
• The announcement boosted Hive's shares as miners seek new opportunities amidst changing economics.
• Competition with tech giants like Amazon and Google poses a challenge for mining operations.
• Hive aims to capitalize on AI with its GPU fleet, potentially generating significant revenue.

Hive Blockchain, a major Bitcoin mining farm, has unveiled its plans to tap into the AI market by providing customers with access to its data centers for large language AI model training. The company asserts that its solution offers superior privacy compared to competitors like OpenAI's ChatGPT. During an earnings call, Hive's CEO, Aydin Kilic, emphasized the growing concern among companies about uploading sensitive client data to public models and highlighted Hive's offering as a privacy-focused alternative. By allowing businesses to maintain data ownership and privacy while leveraging AI workloads on their GPUs, Hive aims to attract privacy-conscious customers.

The announcement resulted in a 2% increase in Hive's shares before the market closed, reflecting the interest of miners in exploring the AI sector as mining economics continue to impact profitability. The AI industry is currently experiencing a surge and attracting investors from around the world. However, it remains uncertain whether mining operations can effectively compete with tech giants like Amazon Web Services and Google, which possess decades of experience and economies of scale in managing high-quality, customer-oriented data centers.

Hive, known for its extensive fleet of 38,000 GPUs initially used for Ethereum mining, has repurposed some of its graphics processing units for mining altcoins. The company plans to offer the remaining GPUs for rent-as-a-service, targeting the AI training market. With an expected run rate of $1 million per year, Hive aims to capitalize on this opportunity.

Azukigate: Angry Holders Demand Refund, Lose More to a Hack

TL: DR

• Azuki NFT holders formed Azuki DAO, demanding a $38 million refund from Chiru Labs for perceived duplication in the Azuki Elementals project.
• Azuki Elementals NFTs' value plummeted from 2 ETH to .878 ETH.
• Hackers exploited a flaw in Azuki DAO, stealing 35 ETH ($68,659).
• Despite the setback, Azuki DAO plans legal action against Azuki's founder and Chiru Labs.

Azuki DAO, the Justice League of irate Azuki holders have found themselves deeper in the red after hackers exploited their DAO for tens of thousands of dollars.

This group was formed in response to a contentious spin-off NFT project, Azuki Elementals, launched by the creators of the original Azuki NFT collection. Despite an initially successful launch, Azuki Elementals was later criticized for bearing a striking resemblance to the original collection. After a quick price drop from 2 ETH to 0.878 ETH, a group of 74 self-proclaimed "diamond Azuki holders" formed the Azuki DAO, aiming to take action against the creators, Chiru Labs, for alleged deception.

This retaliation had an unexpected outcome. Shortly after the group's decision to sue the pseudonymous Azuki founder, Zagabond, and demand a $38 million refund, their DAO was exploited due to a contract flaw. The group confirmed that two hackers managed to pilfer 35 ETH, equivalent to roughly $68,659.

However, this setback hasn't stopped the group's determination. The Azuki DAO has reportedly rectified the contract's vulnerability and is consulting with Legal DAO, a Web3 legal collective, on how to press legal charges against Zagabond and potentially compel Chiru Labs to return the revenue from the Azuki Elementals drop. While the group is unsure of the outcome, they remain confident in applying pressure on Chiru Labs. As the drama unfolds, not all Azuki holders are on board with the DAO's approach, suggesting the dissenters may not represent the broader community's interests.

In other news,

• BAYC 's floor price falls by 90%. Read more.
• DIOR to launch digital twin NFT sneakers. Read more.
• Credit Suisse is launching Ethereum NFTs with the Swiss Football Association. Read more.

Revolut Delists Polygon, Solana and Cardano

TL: DR

• Revolut plans to delist SOL, MATIC, and ADA for U.S. users after the SEC classified these as securities.
• Users must sell these tokens by September 18, or Revolut will do so.
• The tokens' values have not recovered to pre-lawsuit levels.
• Robinhood, eToro, and Bakkt have taken similar delisting steps.

UK-based fintech company, Revolut, announced it's set to delist three major crypto tokens—Solana (SOL), Polygon (MATIC), and Cardano (ADA)—for its U.S. customers. This action follows the SEC’s classification of these tokens as securities last month. Users have until September 18 to sell these tokens, after which Revolut will sell any remaining holdings at the market price and credit the proceeds to users' accounts. The firm cited "changing laws and regulations around cryptocurrency" in the U.S. as the driving factor for the decision.

Despite Revolut not directly mentioning the SEC's recent legal wranglings with Binance and Coinbase, the crypto market has undoubtedly felt the ripples. SOL, MATIC, and ADA, with a combined market capitalization of over $24 billion, haven't managed to rebound to their pre-lawsuit levels since the SEC's ruling. It appears the regulatory winds are strong enough to unsettle other trading platforms as well.

Trading platforms are erring on the side of caution to avoid crossing paths with regulators. Robinhood announced a similar move, opting to stop supporting SOL, MATIC, and Cardano by June 27. Shortly after, eToro informed its U.S. customers about the halt on purchasing MATIC and three other targeted altcoins, though they would still be allowed to sell and hold them. Revolut, in turn, revealed it offers token access via digital services provider Bakkt, which also decided to delist these tokens due to regulatory uncertainty.

In other news,

• Thailand and Singapore ban Exchanges from offering staking and lending services. Read more.
• Belarus bans P2P transactions. Read more.

Crypto Infrastructure Projects Steals Spotlight from NFT and Gaming Funding

TL: DR

• VC focus shifts from NFT and gaming to crypto infrastructure.
• Bear market conditions prompt this change.
• Interest in infrastructure remains high despite funding dips.
• Notable June deals include Mythical Games' $37M round and Neutron's $10M seed round.

According to The Block Research, crypto infrastructure has overtaken NFT and gaming as the hottest area for VC deals in web3. Until recently, the NFT/Gaming sector was the go-to spot for VC investments since June 2021, boasting a solid 23-month streak. However, the tables turned last month as investors turned their focus towards foundational companies and projects.

The ongoing bear market conditions appear to be the driving force behind this shift. Investors are now laying more emphasis on infrastructure, a sector that remains resilient despite a dip in funding for the overall sector from its previous highs. "Its level of interest has been as high — and in some cases greater than the peak bull market where funding was at its highest," said John Dantoni, The Block's research director.

June witnessed some notable deals in this space, including a $37 million Series C1 raise by Mythical Games and a $10 million seed round for the Cosmos blockchain Neutron, led by Binance Labs and CoinFund.

In other news,

• Ubisoft reveals a new game on Oasys blockchain. Read more.