🚨 Inside Trader at OpenSea is going to Prison!

Good morning!

Happy Wednesday! Friend.tech, which we covered on Monday, has continued to surge in popularity, crossing the 100,000 user mark. The crypto community has been engaged in a passionate debate, pondering whether Friend.tech is poised to become the next major trend or if it's merely another passing fad.

Additionally, intriguing data has emerged indicating that nearly 90% of Bitcoin's short-term holders find themselves in a position of loss. Furthermore, the realm of NFTs is witnessing an intense clash between two prominent sports card companies.

Let’s dive in! 👇

Markets

friend.tech Crosses 100,000 Users As Crypto Community Debates Its Longevity (2 minute read)
With all Crypto trends, one fundamental question arises: how long will the hype last? A recent newcomer to the scene, friend.tech, is generating some buzz. This innovative platform introduces tradable tokens linked to users' profiles on Twitter / X. Possessing one of these tokens opens the gateway to a private chat room with the token-holder. Interestingly, friend.tech has managed to gather over 100,000 users in just under two weeks since its launch, according to reliable data from the Dune dashboard. Unlike other contemporary crypto fads such as liquid staking tokens and the incorporation of real-world assets, friend.tech differentiates itself by merging social interaction with financial utility. While memecoins have unquestionably dominated the social aspect of 2023's crypto landscape, none have dived into the realm of individual connectivity quite as profoundly as friend.tech.

Nearly 90% of Bitcoin Short-Term Holders Are Underwater, Onchain Data Show (2 minute read)
Recent onchain data indicates that a considerable portion of Bitcoin's short-term holders are facing a dip in the value of their holdings after a recent price drop. Following a decline of over 10% to $26,200 last week, marking the cryptocurrency's most significant drop since November, approximately 88.3% of the supply under the control of short-term holders (defined as entities holding coins for less than 155 days) now finds itself in a state of unrealized losses, as per data compiled by Glassnode.

Tech

What Happens to Football NFTs Now That Panini Lost Its License? (5 minute read)
A legal showdown between two prominent sports card companies has sparked discussions about the role of digital collectibles like NFTs in this arena. In a surprising move, the NFL Players Association has opted to terminate its contract with Italian collectibles company Panini S.p.A ahead of schedule, in favor of their competitor, Fanatics. Fanatics, renowned for its licensing agreements with MLB, NBA, and NFLPA, as well as its acquisition of Topps for $500 million, finds itself in an ongoing legal clash with Panini. However, amid this turmoil, the fate of minted NFL NFTs remains relatively unchanged, according to Ross Feingold, special counsel at Titan Attorneys-at-Law in Taipei.

Coinbase and Circle look for USDC boost amid declining supply (3 minute read)
Coinbase is set to secure a minority stake in Circle, the issuer of the stablecoin provider, while Circle will assume full control over USDC's governance. USDC has proven to be a profitable venture for both companies, with Circle boasting a revenue of $779 million in the first half of the year, and Coinbase's interest-related income for Q2 reaching $201.4 million, a considerable jump from $32.5 million in Q2 2022. The decision to avoid expanding CENTRE, the initial consortium approach, comes as no surprise given these impressive figures. Under the new agreement's terms, revenue sharing will be based on the quantity of USDC minted or distributed. While the original consortium strategy had its merits in a smaller, more competitive crypto market, the current revenues are too substantial to split for what would likely be only marginal gains from external assistance in boosting USDC adoption.

Misc

OpenSea manager accused of insider trading sentenced to 3 months in prison, $50K fine (2 minute read)
Former OpenSea product manager Nathaniel Chastain has been handed a three-month prison sentence by a federal judge for wire fraud and money laundering tied to insider trading on the platform. The announcement from the United States Department of Justice on August 22 revealed that Chastain not only faces imprisonment but also three months of home confinement, three years of supervised release, a $50,000 fine, and the forfeiture of unlawfully obtained Ether from his nonfungible token (NFT) trades. While he is expected to surrender himself on November 2, Chastain's legal team is preparing to challenge the ruling and seek bail. The judge emphasized a balance between upholding the law and recognizing mitigating factors, acknowledging Chastain as a first-time offender with potential prospects ahead.

BlockFi fights FTX, 3AC claims to billions in disputed creditor funds (2 minute read)
In the midst of the crypto tumult, BlockFi, the beleaguered crypto lender, is mounting its defenses against FTX and Three Arrows Capital's pursuit to recover billions from pre-collapse transactions. BlockFi's claims, unveiled in Monday's court documents, suggest it was ensnared by the maneuvers of ex-FTX CEO Sam Bankman-Fried's enterprise, alleging that FTX, in collusion with sister firm Alameda Research, orchestrated a sophisticated fraudulent ploy to misappropriate customer funds and deceive investors. BlockFi's assertion details a scenario where it was deceived into extending loans of over $1 billion worth of digital assets to Alameda Research. In response, as BlockFi navigates its ongoing liquidation process initiated in May, the lender is vigorously contending FTX's over $5 billion claim, asserting that the erstwhile crypto exchange has no rightful claim to these funds.

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