Welcome to today’s edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:
- STRK Plummets 53% Amid Token Issuance Criticism
- Circle Ends USDC Minting on Tron Network
- VanEck Bitcoin ETF Records 1,400% Spike in Trading Volume
- MetaMask Launches Security Alerts Amid Rising User Base
STRK Plummets 53% Amid Token Issuance Criticism
Starknet’s STRK tokens experienced a significant drop, losing 53% of their value upon trading commencement, amidst criticism over its token issuance strategy. Initially priced at around $5, the tokens faced a steep decline, particularly in light of upcoming substantial token unlocks. This downturn is attributed to early recipients offloading their allocations immediately.
Starknet, an Ethereum roll-up platform utilizing zero-knowledge proof technology, allocated a substantial portion of STRK’s supply for community incentives and development. However, the scheduled token unlock for the team and investors in April 2024 has stirred controversy, leading to worries about possible selling pressure.
Circle Ends USDC Minting on Tron Network
Circle announced it will cease minting USDC on the Tron network to maintain the token’s trust and safety. The decision, effective immediately, is part of Circle’s broader strategy to ensure USDC’s reliability. While specific reasons for discontinuing Tron support weren’t disclosed, Circle emphasized its ongoing assessment of blockchain suitability as part of its risk management.
The company will support USDC transfers to other blockchains for its Circle Mint business customers until February 2025 and advises retail users to transfer their Tron-based USDC to supported blockchains. This move follows controversies surrounding Tron and its founder, including legal actions and allegations of connections to questionable activities.
VanEck Bitcoin ETF Records 1,400% Spike in Trading Volume
VanEck’s Bitcoin ETF experienced an unexpected 1,400% surge in daily trading volume, reaching $258 million on February 20, with around 32,000 individual trades, significantly higher than its usual activity. This spike has puzzled market analysts, including Bloomberg’s Eric Balchunas, who speculated that a social media influencer might have driven this “retail army-ish” movement.
Meanwhile, WisdomTree’s Bitcoin ETF also saw a substantial increase in trading volume. These anomalies occurred shortly after VanEck announced a fee reduction for its ETF, amidst generally high but not extraordinary volumes in leading funds like BlackRock’s iShares Bitcoin ETF.
MetaMask Launches Security Alerts Amid Rising User Base
MetaMask has enhanced its security features by extending real-time alerts for potential threats to over 30 million users across major blockchains, including Ethereum, Linea, BNB Smart Chain, Polygon, Arbitrum, Optimism, and Avalanche. Initiated in April 2023 and launched on Ethereum in January 2024, this feature aims to protect users from malicious transactions by simulating and analyzing transaction patterns for risks. Developed in collaboration with Blockaid, the security alerts have already proven effective, safeguarding assets from notable phishing scams.
Other breaking news
- Stellar Introduces Smart Contracts Following Bug Fixes Delays
- Uniswap v2 Rolls Out on Six New Chains
- Hack VC Secures $150M for New Fund, Targets Web3 and AI Startups
- Puffer Protocol Attracts $1B in Deposits in 3 Weeks
- Michael Saylor: “Bitcoin Is the Exit Strategy”; No Plans to Sell
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