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Crypto Daily Roundup, 03 Oct: Could October's Bull Run Boost Crypto?

03-Oct-2023 By: Lokesh Gupta
Crypto Daily Roundup

Top Gaining Cryptocurrencies within the past 24 hours

Cryptos with the Top Gainers in the last 24 hours

TOP 5 Gainers

Indices LTP Change (%)
Bitcoin SV $40.82 14.27%
Gala $0.01563 3.47%
eCash $0.00002726 1.72%
EOS $0.6071 1.27%
dYdX $2.08 1.02%

Crypto News Key Highlights:

Silvergate Bank's collapse in 2023 was attributed to its heavy reliance on risky crypto deposits and ineffective senior management, according to the Federal Reserve's Office of Inspector General. The bank's shift towards crypto clients and rapid growth left it vulnerable, with most deposits uninsured and non-interest bearing. Additionally, nepotism within its leadership undermined risk management. Silvergate voluntarily liquidated, sparing government intervention to repay depositors.

Ava Labs, the developer behind Avalanche, has launched Firewood, a blockchain data storage solution aimed at improving efficiency. This open-source project aims to replace the Merkle Tree system, addressing slow growth-related issues. Firewood promises more efficient data organization, offering a viable alternative to tools like LevelDB and RocksDB. Integration into Avalanche and performance benchmarks are also on the horizon. This development comes as the AVAX token faces pressure from a bear market and SEC scrutiny.

The FBI has warned of the "Phantom Hacker" scam, targeting crypto investors, particularly senior citizens. Scammers pose as tech support and financial institution representatives, manipulating victims into transferring funds. In contrast, crypto-related crime has declined, ransomware attacks are on the rise, extorting $175.8 million more by June 2023 compared to 2022.

Crypto investment products saw a net inflow of $21 million, ending a six-week drought and signaling renewed investor confidence. Bitcoin led the resurgence with a $20.4 million inflow, while Solana continued to impress with $5.1 million. However, Ethereum faced its seventh consecutive week of outflows, earning the title of the "least loved" altcoin. Geographical trends showed Europe and Canada embracing crypto, while the US displayed mixed sentiment, pulling out $19 million. Blockchain equities also experienced outflows, mirroring a broader tech sector trend.

Around $200 million worth of various cryptocurrencies are set to be unlocked in October, potentially impacting the bullish momentum in the crypto market. Notable unlocks include SUI on October 3, IMX on October 7, APT on October 12, ApeCoin on October 17, Axie Infinity on October 20, and Optimism OP on October 30. A total of 31 crypto projects have scheduled unlocks for the month, potentially affecting market dynamics.

The Bank of Russia provided an update on its digital ruble pilot, indicating that it's progressing as planned with real operations, including wallet openings, citizen transfers, and QR code payments. The pilot will expand next year to include more participants and legal entity transfers. The digital ruble is gaining interest among Russian citizens, with expectations for mainstream adoption by 2025.

At Cosmoverse 2023, the Cosmos Hub community will explore new tokenomics for $ATOM, its native cryptocurrency. Supported by AADAO, independent teams have developed concepts to strengthen the Cosmos Hub's role as the Interchain's Schelling Point. The changes emphasize community involvement, incremental proposals, and independent teams' contributions, fostering inclusivity and decentralization in decision-making. The Cosmos Hub, focusing on interoperability, offers IBC, the Cosmos-SDK, and interchain security, enabling a network of connected blockchains known as "The Internet of Blockchains."

Silvergate Bank collapsed due to an over-reliance on volatile cryptocurrency deposits and ineffective senior management marred by nepotism, per a Federal Reserve review. Rapid, unchecked growth, especially towards crypto customers, and the consequential risky financial practices, were identified as primary factors in its voluntary liquidation in 2023.

Kenyan lawmakers urge halting Worldcoin's crypto project over privacy issues, criticizing its iris-scanning data acquisition and potentially inducing user consent through monetary rewards. Despite a government suspension, Worldcoin persists online. The parliament advocates for stringent crypto regulations, IP blacklisting, and potential legal actions against the controversial project.

Also read - 24 Crypto Update, 02 Oct: Crypto Market Plunges as Bears Take Control

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