Crypto Market UpdateWritten by VanTable of ContentsLegal and Regulatory UpdatesBankman-Fried Faces Jail Time; Appeal PendingThree Arrows Capital Co-founder Escapes Contempt ChargesSenator Lummis Files Brief Supporting Coinbase Against SECSEC Initiates Proceedings on Bitcoin ETF; Decision AwaitedRCMP Calls for Digital Asset Storage System TenderCryptocurrency Trends and InvestmentsInvestors Favor SHIB over Bitcoin; Analysts Remain OptimisticGMX Token Faces Selling Pressure; v2 Beta LaunchedInstitutional Interest in XRP Ledger Surges Despite Legal ChallengesCrypto Platforms and TechnologyCurve Finance Plans Reimbursement after $62 Million BreachBankrupt Voyager Sells Crypto to Pay Users in USDDeBank Introduces Layer-2 Blockchain; Mainnet Expected in 2024Aave DAO Approves CRV Token Acquisition; Concerns RaisedJustin Sun Capitalizes on MakerDAO Yield OpportunitiesWorldcoin Offers WLD Token Reservation through OrbNFTs and Digital AssetsMoonPay Faces Updated Lawsuit over NFT Value InflationFC Barcelona Secures Investment for Web3 InitiativeDeGods NFT Collection Sees Surge in SalesEthereum's NFT Minting Declines by 79%; Market Future UncertainBankman-Fried Faces Jail Time; Appeal PendingFTX founder Sam Bankman-Fried has been denied a request to delay detention and could spend at least two months in jail before his trial. He is accused of trying to intimidate a key witness and will have a court date on October 2nd. Bankman-Fried's lawyers' appeal may determine his detention status. Three Arrows Capital Co-founder Escapes Contempt ChargesCo-founder Kyle Davies of Three Arrows Capital (3AC) has avoided contempt charges in the bankruptcy case against the defunct crypto hedge fund. His lawyers presented evidence that he renounced his U.S. citizenship in 2021 and became a citizen of Singapore. As a non-U.S. citizen residing outside the country, the bankruptcy judge determined that the court lacked jurisdiction over Davies. The judge suggested that the foreign representatives could pursue legal action in Singapore. Senator Lummis Files Brief Supporting Coinbase Against SECSenator Cynthia Lummis has filed an amicus brief supporting Coinbase's motion to dismiss the SEC's lawsuit against the firm. Lummis argues that the SEC is trying to establish itself as the main authority on cryptocurrency and circumvent the political process.She questions the SEC's authority in claiming that most crypto assets are securities and argues against its regulation-by-enforcement approach. Other crypto advocacy groups have also filed an amicus brief in support of Coinbase.SEC Initiates Proceedings on Bitcoin ETF; Decision AwaitedThe US Securities and Exchange Commission (SEC) has not approved or denied the spot bitcoin ETF proposed by Ark Invest and 21Shares. Instead, the SEC has initiated proceedings to determine whether it should approve or deny the proposal. The SEC has 240 days to make a decision, with the next ruling or delayed decision expected on November 11.RCMP Calls for Digital Asset Storage System TenderThe Royal Canadian Mounted Police (RCMP) has announced a tender for businesses to create a digital asset storage system to accommodate the seizure of criminally obtained cryptocurrencies and non-fungible tokens (NFTs). This comes following rising crypto-related crime in Canada and the adoption of crypto-tracking software by local police.The storage system must have specific features, such as the ability to process transactions for the top 20 cryptocurrency blockchains and support new blockchains in the future. The deadline for applicants is September 21, 2023.Investors Favor SHIB over Bitcoin; Analysts Remain OptimisticInvestors are showing caution in Bitcoin as they pour money into Shiba Inu (SHIB), a meme-focused cryptocurrency. SHIB futures open interest has more than doubled to $101.65 million this month, indicating new money entering the SHIB market. This pattern has historically preceded weakness in Bitcoin. Nevertheless, analysts believe that Bitcoin may still continue its upward trend. GMX Token Faces Selling Pressure; v2 Beta LaunchedGMX, the native token of the decentralized perpetual exchange, is experiencing intense selling pressure, with prices down 13% in a week and monthly losses reaching 18%. However, the TVL remains stable at over $534 million, mostly on Arbitrum and Avalanche.Whales selling large amounts of GMX could create uncertainty and influence others to sell as well. On a positive note, GMX recently launched v2 beta, introducing enhancements and support for more assets. Institutional Interest in XRP Ledger Surges Despite Legal ChallengesInstitutional interest in cryptocurrency investment products based on the XRP Ledger has led to a surge in assets under management, reaching an estimated $76 million. This comes despite ongoing legal challenges, including a recent ruling determining that XRP is not necessarily a security.The SEC has revealed its intent to appeal the ruling and Ripple has until August 16 to respond. The XRP Ledger has been experiencing over 1.2 million transactions per day, surpassing Ethereum in daily transactions. XRP's market capitalization has also dropped by nearly $10 billion from its peak this year.Curve Finance Plans Reimbursement after $62 Million BreachCurve Finance aims to reimburse users affected by a recent $62 million breach. 79% of funds have been recovered, and efforts are underway to assess and distribute proportions to impacted users. The incident exploited vulnerabilities in versions 0.2.15 to 0.3.0 of the Vyper compiler. Restitution process ongoing. Bankrupt Voyager Sells Crypto to Pay Users in USDBankrupt crypto firm Voyager transferred 1,500 ETH and 250 billion SHIB to Coinbase, part of its efforts to sell off remaining cryptocurrencies and pay users in USD. Previously, users could claim and withdraw 35.72% of their tokens or be paid in USD. Voyager's wallet address holds $81.63m worth of cryptocurrency.The firm started processing withdrawals in June and aims to sell its remaining tokens soon. At its height, Voyager had 3.5 million users and was a crypto lending platform listed on stock markets globally.DeBank Introduces Layer-2 Blockchain; Mainnet Expected in 2024Blockchain platform DeBank has introduced DeBank Chain, a new layer-2 blockchain built on Optimism's OP Stack. DeBank Chain is an optimistic rollup that claims to have significantly reduced the L1 data storage gas cost.The platform aims to become an asset layer for social media and plans to roll out its Mainnet in 2024. DeBank also plans to expand its messaging app, DeBank Hi, into a social media platform called DeBank Stream.DeBank is one of several projects building on Optimism's OP Stack, including Coinbase's Base, Magi Protocol, and BNB Chain.Aave DAO Approves CRV Token Acquisition; Concerns RaisedAave DAO has approved a proposal to acquire 5 million CRV tokens using 2 million USDT from its treasury, signaling support for the DeFi ecosystem. The acquisition aims to boost secondary liquidity for Aave's stablecoin, GHO, but raises concerns about increased exposure to CRV-related risks. The proposal was passed with 58% of the votes in favor. Justin Sun Capitalizes on MakerDAO Yield OpportunitiesTron founder Justin Sun's crypto wallet conducted large transactions and deposited funds into MakerDAO to capitalize on yield opportunities. The wallet transferred significant amounts of crypto into an intermediary address before depositing 67,000 wstETH into MakerDAO and borrowing $59.8 million in Dai stablecoin.This move was prompted by MakerDAO increasing the savings rate on Dai, leading to significant capital inflows on the platform. Additionally, Sun purchased 5 million CRV tokens following a hack incident.Worldcoin Offers WLD Token Reservation through OrbCryptocurrency initiative Worldcoin has introduced a reservation function that allows unverified users to reserve their WLD tokens. The reservation can be made through the World App and remains active for a year, after which users can claim their tokens via the iris-scanning tool called the Orb.The Worldcoin project aims to establish a unique human database using biometric identification to distinguish humans from bots in the digital era. The project has faced regulatory challenges in Kenya, Argentina, and the UK.Top Altcoin Gainers and LosersGainers:Rollbit Coin RLB (+16.18%)ApeCoin APE (+10.38%)SHIBA INU SHIB (+7.97%)Losers:Maker MKR (-3.06%)Curve DAO Token CRV (-2.74%)Rocket Pool RPL (-2.51%)NFT Market MapMoonPay Faces Updated Lawsuit over NFT Value InflationA class action lawsuit alleging that crypto payments firm MoonPay conspired with Bored Ape Yacht Club creator Yuga Labs and celebrities to inflate the value of NFTs has been updated to include a confidential witness and former MoonPay employee. Sotheby's auction house has also been added as a defendant, accused of misleading people about the buyer of 101 Bored Apes.Ethereum's NFT Minting Declines by 79%; Market Future UncertainThe DeGods NFT collection, hosted on the Ethereum blockchain, experienced a remarkable surge in trading volume and sales with over 1,000 successful transactions and a value exceeding 7,800 ETH ($14 million) within 24 hours. This happened after the project announced the launch of season 3 of its collection.However, the surge has not yet influenced the broader Ethereum NFT trade volume, which remains relatively unchanged at approximately $97,000. Source: The BlockFC Barcelona Secures Investment for Web3 InitiativeSpanish soccer club FC Barcelona has secured a €120 million ($132 million) investment from Libero Football Finance AG and Nipa Capital B.V. for its Web3 initiative, Barça Vision. The investment will be used to integrate digital content, including NFTs and the metaverse, into the club's strategy.FC Barcelona has been active in the NFT space, partnering with Chiliz blockchain and launching its own NFT collection. The investment is expected to close in Q4 2023, pending approval from FC Barcelona shareholders.DeGods NFT Collection Sees Surge in SalesThe number of NFTs minted on Ethereum has decreased by 79% since the beginning of the year, dropping from over 10,000 per day in January to below 3,000 in August.Various factors are contributing to this decline, including increased competition from other blockchain networks, market uncertainty due to crypto price volatility, and the saturation of supply relative to demand. The decline in NFT creation on Ethereum is significant and historical, suggesting it is not just a normal post-bubble slump.The bear-market in crypto may be a contributing factor, but the bursting of the speculative bubble in the NFT market and a lack of demand are driving the decline. The future recovery of the market remains uncertain.This article has been refined and enhanced by ChatGPT.