Daily Report | OSL's cooperative products account for 88% of the market share of the first batch of spot virtual asset ETFs in Hong Kong; UK Prime Minister Sunak will announce his resignation on Friday morning local time; today's Crypto Fear and Greed Index is 29, hitting a nearly one-year low
July 5th News OverviewOrganizer: Luan Peng ChainCatcher
Important News:
- Matrixport: U.S. presidential election years are usually favorable for stocks and Bitcoin
- OSL's cooperative products account for 88% of the trading volume of Hong Kong's first batch of spot virtual asset ETFs
- Former Mt. Gox CEO: Glad to see Mt. Gox customers finally starting to receive Bitcoin
- Token and NFT launch platform Monad Pad announces completion of $945,000 seed round financing, with participation from Sneaky Ventures and others
- Multiple MT.GOX creditors report receiving BTC/BCH repayments
- Bloomberg ETF analyst: Currently "lack of confidence" in launching Ethereum ETF around July 15
- Documentary "Vitalik: The Story of Ethereum" trailer to be released on July 23 in Zora Mint format
- UK media: Prime Minister Sunak to announce resignation on Friday morning local time
"What important events happened in the last 24 hours"
Matrixport: U.S. presidential election years are usually favorable for stocks and Bitcoin
According to Matrixport, U.S. presidential election years are usually favorable for stocks and Bitcoin. Last year, we demonstrated Bitcoin's performance during the U.S. elections in 2012, 2016, and 2020. By July of this year, Bitcoin has risen 39% year-to-date, and although an average return of 192% for the year seems difficult to achieve, Bitcoin is following the election year pattern. The year-to-date return rates for Ethereum and Bitcoin are 49% and 43%, respectively, far exceeding the Nasdaq (22%) and S&P 500 (16%). Despite political and macroeconomic tailwinds, traders may choose high-interest tokens and wait for better re-entry opportunities. The Federal Reserve may indicate its intention to begin a rate-cutting cycle at its meeting on July 31.
Since its launch in April 2024, the Hong Kong digital asset ETF market has shown significant growth, with trading volume and assets under management (AUM) continuously expanding. As of the time of publication, the daily trading volume of Bitcoin (BTC) spot ETFs reached HKD 114 million, while the daily trading volume of Ethereum (ETH) spot ETFs reached HKD 33.76 million, indicating increasing investor interest in Hong Kong's digital asset ETFs and growing investment activity.
OSL Digital Securities Limited, as a leading licensed digital asset trading platform under OSL Group (863.HK), has been appointed as the virtual asset trading platform and sub-custodian for Huaxia Fund and Harvest International's first Bitcoin and Ethereum spot ETFs. The trading volume of the first batch of spot Bitcoin and Ethereum ETFs launched by its issuer partners Huaxia Fund (Hong Kong) and Harvest International (HGI) accounts for over 88% of the total trading volume in the Hong Kong ETF market. "OSL is continuously driving regulated digital asset innovation into the next phase, including staking services and tokenized fund products. " OSL Chairman and CEO Pan Zhiyong stated that OSL's success as a leading ETF custody and trading platform reflects its strategic vision and operational excellence. As the market continues to grow, OSL is committed to creating new solutions and maintaining its position as a trusted partner in digital asset investment.
Former Mt. Gox CEO: Glad to see Mt. Gox customers finally starting to receive Bitcoin
Former Mt. Gox CEO Mark Karpelès stated on platform X that Mt. Gox customers are finally starting to receive Bitcoin. He said, "After more than ten years, I wasn't sure if this would really happen, but we finally did it. It's been a long journey, and I'm glad to see that we are finally close to our goal, just a little bit more to go…"
Token and NFT launch platform Monad Pad announced on platform X that it has completed a $945,000 seed round financing, with participation from institutions such as CMS, CSPDAO, CapitalZephyrus, vvvdotnet, FOMO, exnetworkcap, Sneaky Ventures, and Legion Ventures.
Additionally, according to Web3 asset data platform RootData, Monad Pad is a token and NFT launch platform built on Monad, empowering creators, investors, and collectors.
Multiple MT.GOX creditors report receiving BTC/BCH repayments
Several MT.GOX creditors in Japan have reported receiving BTC/BCH repayments from MT.GOX, with funds entering their Bitbank or Kraken exchange accounts. The BCH in the Bitbank account is displayed as BCC. Additionally, some have reported receiving cash payments sent via international wire transfer.
Bloomberg ETF analyst: Currently "lack of confidence" in launching Ethereum ETF around July 15
Bloomberg ETF analyst James Seyffart previously stated that he and his colleagues believed that with the improvement of the application process, a spot Ethereum ETF might be launched around July 15. However, he now expresses "lack of confidence" in this timeline, adding that there is currently no official approval timetable, and the SEC's corporate finance department is "taking time" to approve each fund.
However, another Bloomberg ETF analyst, Eric Balchunas, believes that all signs indicate "the Ethereum ETF will still launch this month," as Bitwise has been able to modify its application earlier than the expected deadline of July 8.
Documentary "Vitalik: The Story of Ethereum" trailer to be released on July 23 in Zora Mint format
Linda Xie, co-producer of Ethereum Stories, stated on platform X: "The Ethereum Stories documentary has been in production for over three years and is about to be shared with the world. We will release the feature documentary 'Vitalik: The Story of Ethereum' and the 'Ethereum Stories' short film series. A big thank you to our Mirror crowdfunding supporters for making this possible." Additionally, she mentioned that before the mainstream debut of the documentary on traditional streaming platforms, a complete crypto-native release will be launched, including on-chain tickets and over 250 global IRL premieres.
The specific minting and release plan is as follows:
Phase 1: The documentary will be released on July 23 in Zora Mint format, with the top 20 minters receiving premiere tickets, credits, and other rewards;
Phase 2: On July 26, presale movie tickets will be launched on the Base chain;
Phase 3: Global release will begin on September 18;
Phase 4: The film will continue to screen until the fall of 2024;
Phase 5: Major streaming platforms will launch by the end of 2024 or in 2025.
UK media: Prime Minister Sunak to announce resignation on Friday morning local time
According to Jinshi, multiple UK media outlets, including the Daily Mail, reported that Prime Minister Sunak will announce his resignation on Friday morning local time.
According to CCTV News, exit polls from the UK House of Commons elections on the evening of the 4th local time showed that the Labour Party, led by Keir Starmer, won a majority of seats in the House of Commons and will become the ruling party in the UK.
Today's Crypto Fear and Greed Index is 29, hitting a nearly one-year low
According to alternative data, today's Fear and Greed Index has dropped significantly from yesterday's 44 to 29, hitting a nearly one-year low.
Max Resnick, head of research at SMG, stated on social media: "MEV is fundamentally about control. Proposers can control which transactions are included in blocks and in what order they are included. In other words, MEV is about censorship and reordering. The good news is that solving this problem is possible.
The first step is to address censorship resistance by establishing multiple parallel proposers; the second step is to address the reordering issue. Once a multi-proposer architecture is in place, proposers can reach consensus on a set of unordered transactions, and the execution layer is responsible for ordering them using deterministic rules."
In response, Vitalik Buterin remarked: "Wouldn't this lead people to flood the chain with transactions to collect MEV, thereby maximizing the chance of being first? So you would still get 'MEV auctions,' but with more negative externalities on the protocol.
We saw this during the ICO era in 2017 when some projects tried to ban transactions with gas fees over 50, resulting in a lot of on-chain spam."
"What are some great articles worth reading in the last 24 hours"
The massive compensation from Mentougou, the German government's reduction of BTC holdings, and other factors have caused the crypto market to plunge.
Today at noon, BTC briefly fell below $54,000 (currently reported at $54,300), hitting a low of around $53,200, marking a new low since February 26 of this year, with a maximum drop of over 10% in 24 hours. Bitcoin has also dropped about 10% in two days.
The entire altcoin market is also experiencing a major disaster. ETH fell to a low of $2,806, with a 24-hour drop of over 8%; SOL fell to a low of $120.65, with a 24-hour drop of over 5%.
The relatively strong PEPE and TON have also seen significant declines. PEPE and TON's 24-hour drops exceeded 15% and 7%, respectively.
The bulls' psychological defense line is once again being challenged. Coinglass data shows that over $660 million in liquidations occurred across the network in 24 hours, primarily from long positions, with liquidation amounts reaching $565 million, including over $212 million in BTC and over $167 million in ETH. The total open interest in Bitcoin contracts across the network continues to decline, with a drop of over 10% in the past 24 hours.
The ongoing decline has caused cryptocurrency panic sentiment to hit a nearly one-year low. According to Alternative data, today's cryptocurrency Fear and Greed Index is 29 (down from 44 yesterday).
Locked "paper wealth" faces "hellish difficulty" cycle for VCs
Retail investors attribute their losses to "high FDV (future discounted value) and low circulation" token issuance strategies, believing that VCs and project parties are colluding, and the large-scale unlocking of tokens has impacted the crypto market.
Meanwhile, VCs are "protesting," defining this cycle's primary market as "hellish difficulty." Li Xi, a partner at LD Capital, stated that while they are showing profits on paper this year, it is all just paper value because their shares remain 0 unlocked. Apart from the "gathering" VCs, most VCs are just "big leeks" taking over.
ChainCatcher interviewed several representatives from the VC industry to explore the current survival status of VCs.
Many VCs cited six reasons leading to the current exit dilemma. Some VCs indicated that in the current market environment, not investing has become the best strategy.
Q2 DApp Report: Usage up 40% to a record high, social sector performs excellently
The DApp industry performed exceptionally well in Q2 2024. Since the beginning of this year, it has witnessed a series of positive developments and is experiencing a bullish trend, with no signs of slowing down. However, this bullish sentiment is reflected in fundamental metrics and user engagement rather than token prices. Since the end of Q1 2024, Bitcoin has already dropped by 12%. This article focuses not on token prices but on analyzing the broader outlook to understand user behavior and trends within the ecosystem.
Mt.Gox crash hits, BTC drops 10% in 24 hours, falling below $54,000, where is the bottom?
Today at noon, Bitcoin briefly fell below $54,000 USDT, hitting a low of $53,269 USDT, marking a new low since February 26 of this year, with a maximum drop of over 10% in 24 hours. As of publication, it has currently rebounded to $64,600 USDT. The altcoin market is even more "tragic," with an average drop of around 10%. The real-time market data from OKX is as follows:
- ETH fell to a low of $2,806 USDT, currently reported at $2,881.61 USDT, with a 24-hour drop of 8.01%;
- SOL fell to a low of $120.65 USDT, currently reported at $126.74 USDT, with a 24-hour drop of 6.38%;
- PEPE fell to a low of $0.000008221 USDT, currently reported at $0.000008326 USDT, with a 24-hour drop of 12.58%;
- OP fell to a low of $1.22 USDT, currently reported at $1.3232 USDT, with a 24-hour drop of 13.36%;
- STRK fell to a low of $0.4488 USDT, currently reported at $0.4951 USDT, with a 24-hour drop of 15.76%;
CoinGecko data shows that due to the overall market decline, the total market capitalization of cryptocurrencies has shrunk to $2.08 trillion, with a 24-hour drop of 9%.
In terms of derivatives trading, Coinglass data shows that in the past 24 hours, the total liquidation amount across the network has reached $678 million, with the vast majority being long position liquidations amounting to $588 million. Among them, BTC liquidations amounted to $226 million, and ETH liquidations amounted to $166 million.
How to get through the crypto market's garbage time?
Recently, an article titled "How to Get Through Historical Garbage Time" has become very popular.
What is historical garbage time?
In short, it refers to moments in history when certain periods contradict economic laws, and individuals find it difficult to change the situation, making the overall trend seem destined to fail.
For example, Japan's economic stagnation for thirty years after the bubble burst in the 1990s, where young people had no opportunities, and both national and personal development faced ceilings.
For example, the period of stagflation in the U.S. from 1970 to 1982, characterized by high inflation, high unemployment, and low economic growth.
For example, the Soviet Union from 1979 to 1989, which continues to this day in Russia.
A grain of dust from the times, falling on an individual, is like a mountain.
In the face of great trends, individuals are always insignificant. Buffett became the "stock god" because he was born in the U.S. and invested in U.S. stocks; the rise of China's wealthy class rode the wave of China's reform and opening up over the past 40 years; some people gained dozens of times or even higher returns by investing in altcoins/MEME coins because Bitcoin's rise boosted market sentiment and brought in incremental funds…
But if the entire market or country is facing headwinds, no matter how hard individuals try, it is futile.
In the investment market, "garbage time" is particularly vivid.
Taking Bitcoin as an example, most of the gains are concentrated in just a few months, and the increases within those months are concentrated in just a few days.
