Crypto Market UpdateTable of ContentsMarket OverviewBitcoin Hits $65K Amid Market OptimismGenesis Creditor Offloads 12,100 ETH for $31MU.S. Spot Bitcoin ETFs Continue Strong InflowsKamala Harris Backs U.S. Leadership in BlockchainRegulatory and Legal UpdatesSEC's Gensler Stresses Investor Protection in CryptoSouth Korea Fines Worldcoin for Privacy ViolationsTokenization and Real-World AssetsGuggenheim Tokenizes $20M Commercial Paper on EthereumTaurus, Aktionariat Bring Tokenized Shares to Swiss SMEsCrypto Platforms and ExchangesPayPal Enables Crypto Buying for U.S. MerchantsCoinbase Supports ZKsync and Moonwell, Drives Volume UpWazirX Gets $230M Debt Repayment ExtensionStablecoins and New TokensEthena Labs Partners With BlackRock for New StablecoinHamster Kombat Token Launches, Faces Airdrop ControversyBlockchain Ecosystem DevelopmentsAvalanche Announces $40M Retroactive Grant ProgramCore Blockchain's Total Value Locked Surges to $411MAirdrops and Market ActivityLayerZero Airdrop Sparks Daily Activity SurgeStudy Shows 88% of Airdrop Tokens Drop in ValueHacks and ExploitsTruflation Loses $5.2M in Malware AttackOnyx Protocol Exploited, Loses $3.8MInnovations in Web3 and MusicAudius Transforms Web3 Music With Stablecoin PaymentsCommunity and Market ResponsesMoodeng Coin Soars Before Pullback on Insider ConcernsIndustry Challenges and WithdrawalsRevolve Labs Cancels Bitcoin Mining Facility Amid ProtestsSunPump Launches NFT Platform on TRONUK Gambling Commission Accuses Sorare of Unlicensed GamblingBitcoin Hits $65K Amid Market OptimismBitcoin surged above $65,000, marking its highest level since August 2. The rally was driven by favorable U.S. labor indicators and China's pledge to bolster its economy through additional stimulus measures. Analysts cautioned that sustaining the $65,000 mark is pivotal, with potential significant downward pressure if not maintained. Investor interest increased, with $496.7 million flowing into Bitcoin ETFs since last Wednesday. According to IntoTheBlock, over 90% of BTC holders are in profit, leading to potential sell-offs as experienced previously in July. Interest rate cuts by the Federal Reserve contributed to the bullish sentiment. Short positions saw over $154 million liquidated. However, whale investors recently offloaded $1.28 billion worth of BTC, indicating possible price corrections ahead.Genesis Creditor Offloads 12,100 ETH for $31MAccording to Arkham Intelligence, the Genesis creditor at wallet address 0x999…46E sold 12,100 ETH for $31.4 million in three days, post receiving large repayment in August. Despite major liquidation events, Ethereum has remained stable above $2,600. Bullish sentiment is noted in the futures market, hinting at an anticipated ETH price surge to $3,000. U.S. Spot Bitcoin ETFs Continue Strong InflowsU.S. spot Bitcoin ETFs saw their fifth consecutive day of net inflows, totaling $105.8 million, with BlackRock's IBIT leading the way. Ether ETFs also experienced inflows of $43.23 million. Notably, the SEC delayed a decision on trading options for certain Ethereum ETFs. Kamala Harris Backs U.S. Leadership in BlockchainKamala Harris emphasized the U.S. leading in blockchain and AI to outperform global competitors, stressing innovation and consumer protection. Predictions vary from Bitcoin falling to $30,000 to reaching $90,000, influenced by the election outcome. Rising national debt could favor Bitcoin adoption regardless of the election results, creating a promising environment for its growth. SEC's Gensler Stresses Investor Protection in CryptoSEC Chair Gary Gensler emphasizes that investor protection is critical for the survival of the crypto industry, citing collapses of firms like FTX and Celsius as cautionary examples. Gensler reiterates that most cryptocurrencies are securities, making an exception for bitcoin. He refrains from commenting on Kamala Harris and Donald Trump's stance on crypto. South Korea Fines Worldcoin for Privacy ViolationsSouth Korea fined Worldcoin and Tools for Humanity a total of $860K for violating privacy laws regarding iris data collection. Worldcoin owes $550K for handling sensitive information and overseas transfers, while TFH owes $287K for breaching biometric data obligations. Corrective orders include obtaining separate consent for iris data and ensuring transparency in data processing. Guggenheim Tokenizes $20M Commercial Paper on EthereumGuggenheim Treasury Services tokenized $20M of commercial paper on Ethereum with Zeconomy, citing "massive demand" for digital assets. This move aligns with the trend of real-world asset tokenization in the growing crypto sector. The P-1 rated issuance signals Guggenheim's venture into the $12B RWA market, leveraging its $300B AUM and previous crypto involvement. Taurus, Aktionariat Bring Tokenized Shares to Swiss SMEsTaurus and Aktionariat have teamed up to enable trading of tokenized shares from Swiss SMEs on the Taurus Digital Exchange (TDX), projected to go live in November. The collaboration will improve liquidity access for Swiss SMEs, and the first issuer will be RealUnit Schweiz, aiming to enhance accessibility and liquidity for investors. PayPal Enables Crypto Buying for U.S. MerchantsPayPal introduced new functionality for U.S. business clients, enabling the buying, holding, and selling of cryptocurrencies. This supports U.S. merchants to transfer cryptocurrencies on-chain to external eligible wallets, reflecting the company's strategy to increase crypto utility for U.S. clients. The journey began in 2020, advancing to the launch of the PayPal Stablecoin (PYUSD) in 2023. Coinbase Supports ZKsync and Moonwell, Drives Volume UpIn the past few days, several listings popped up. Coinbase enhanced trading support for ZKsync and Moonwell, sparking volume surges. CoW Protocol rallied over 14% after its Coinbase listing on Tuesday. Catizen (CATI) perpetual futures launched on Coinbase International during a volatile phase post-airdrop, with CATI peaking at $1.11 before falling to $0.72. WazirX Gets $230M Debt Repayment ExtensionWazirX was granted a 4-month, $230 million debt repayment extension by a Singapore court following a hack in July. The exchange must disclose wallet addresses, respond to user queries, reveal its accounts, and ensure independent voting. WazirX is in restructuring and negotiation discussions with potential partners. Users are unlikely to fully recover their assets. Ethena Labs Partners With BlackRock for New StablecoinEthena Labs is launching a new stablecoin, UStb, in partnership with BlackRock's tokenized U.S. Treasuries fund, BUIDL. UStb will operate independently from Ethena's existing stablecoin, USDe, offering a distinct risk profile. USDe, backed by derivative hedging strategies, faced redemptions in August. Ethena intends for UStb to provide an alternative margin collateral on partnered centralized exchanges. The BUIDL fund, which UStb will be backed by, has quickly grown to become the largest tokenized U.S. Treasuries fund, with over $522 million in assets under management since its launch in March. UStb aims to mitigate risks associated with USDe and enhance its stability during challenging market conditions.Hamster Kombat Token Launches, Faces Airdrop ControversyHamster Kombat’s HMSTR token launched on September 26, trading on exchanges like Binance and OKX with a high of over $0.013. The airdrop faced controversy due to distribution issues, with some users receiving as little as $10. Despite the controversy, Tonkeeper wallet added support for HMSTR, allowing transaction fees via HMSTR starting October 1. The token's market cap is around $458 million. Only 60% of the total 100 billion HMSTR tokens have been distributed, with 15% reserved for future distribution.Avalanche Announces $40M Retroactive Grant ProgramAvalanche unveiled Retro9000, a $40 million retroactive grant program supporting its Avalanche9000 upgrade, encouraging developers to build Layer 1 networks or technical tooling on its testnet. This aims to bootstrap an L1 ecosystem, lowering financial and hardware barriers, fostering DeFi, real-world assets, and gaming appchains, and promoting interoperability through interchain messaging. Core Blockchain's Total Value Locked Surges to $411MThe Core blockchain, a Layer 2 scaling solution for Bitcoin, has seen a remarkable rise in Total Value Locked, reaching $411 million. This growth positions it as a leading Bitcoin L2 solution. Core's approach addresses Bitcoin's scalability issues, offering faster and cheaper transactions while leveraging Bitcoin's security, paving the way for innovation and competition in the Bitcoin scaling ecosystem. LayerZero Airdrop Sparks Daily Activity SurgeLayerZero's latest airdrop announcement spurred a 433% surge in daily activity to 98,000 messages. The strategic focus on rewarding committed users and excluding idle participants led to a 16.8% ZRO price increase, reaching $5.19. Surpassing $4.99 could trigger a rally to its all-time high of $5.60. 80.39% of addresses are currently in profit. Study Shows 88% of Airdrop Tokens Drop in ValueA recent study by KeyRock Trading reveals that 88.7% of airdrop tokens experience price declines after 90 days. Ethereum and Solana tokens show better resilience, with up to 25% maintaining or increasing in value. Larger airdrops foster stronger community ownership, outperforming smaller distributions and leading to long-term stability. Truflation Loses $5.2M in Malware AttackTruflation, a Coinbase-backed blockchain inflation data platform, suffered $5.2 million malware attack. Approximately $5.23 million was lost from its treasury multisignature and personal wallets, with additional losses on other chains. The TRUF token fell 15.6% before partially recovering. No customer funds were compromised, and Truflation is working with industry partners and law enforcement to protect funds. Onyx Protocol Exploited, Loses $3.8MOnyx Protocol, a Compound Finance fork, suffered a $3.8 million loss in a hack exploiting a known code vulnerability, highlighting widespread security concerns in DeFi projects. The attack leveraged a precision issue in the forked Compound V2 code, resulting in the siphoning of various digital assets. Similar vulnerabilities have affected other Compound forks, emphasizing the need for enhanced security measures in the crypto industry. Audius Transforms Web3 Music With Stablecoin PaymentsAudius, a decentralized music streaming platform, revolutionizes Web3 music by offering stablecoin payments to artists and introducing a 10% community revenue-sharing model. Artists gain full control over pricing and revenue, with early successes exceeding traditional streaming models. Audius challenges Spotify and Apple Music, signaling a significant shift in the music industry. Moodeng Coin Soars Before Pullback on Insider ConcernsMoodeng, a Solana-based memecoin inspired by a viral Thai baby hippo, surged 42.34% in market cap to over $146M before pulling back. An early trader turned $800 into $3.5M within weeks. The coin’s value nearly hit $0.148, with trading volumes up 38%. Insider trading concerns arose as similar 1000x returns were noted in related projects.Revolve Labs Cancels Bitcoin Mining Facility Amid ProtestsRevolve Labs withdrew its plan for a Bitcoin mining facility in Windom, Minnesota after residents raised concerns about noise pollution and its impact on home values. The facility aimed to bring in a service fee of $35,000 per month, but faced objections due to noise pollution issues. Similarly, a Norwegian facility was shut down due to noise complaints, causing a 20% increase in energy bills. Top Altcoin Gainers and LosersGainers:Wormhole W (+17.45%) SHIBA INU SHIB (+16.28%)Based Brett BRETT (+13.70%)Pepe PEPE (+11.91%)BEAM (onbeam) BEAM (+11.20%)Losers:Bittensor TAO (-6.54%)Arweave AR (-2.76%)Helium HNT (-1.68%)Fellaz FLZ (-1.55%)Aave AAVE (-1.08%) NFT Market MapSunPump Launches NFT Platform on TRONSunPump, in partnership with APENFT, launched NFT Pump on TRON to pioneer a fair NFT trading platform. Users can buy NFTs with TRX from September 26. Despite initial challenges with network outage, SunPump has thrived, generating $1 million revenue and forming a $10 million fund for project support, contributing to TRON's ecosystem growth. UK Gambling Commission Accuses Sorare of Unlicensed GamblingThe UK Gambling Commission has accused Premier League crypto sponsor Sorare of unlicensed gambling, with a court hearing scheduled for October 4. Sorare disputes the allegation, stating that the gambling laws have been wrongly applied to their fantasy football game. This marks a rare instance of the commission using its powers for such charges. This article has been refined and enhanced by ChatGPT.