🤯 Trading volumes plummet to 4-year low!

All Things Flooz newsletter is for innovators, creators and traders.

Flooz

7 min read Jun 6, 2023


Talking points

  • ✈️ Japanese NFT market taking off

  • 🚨 May-day for rug pulls

  • 🤯 Trading volume hits 4 year low

WTF is happening❓

FUD has been circulating the crypto world over the past few weeks, with Binance and Coinbase being the most recent… As a result, it has been difficult for many investors to know what to do next.

Breaking news 🚨

The crypto industry is currently facing a turbulent phase and is under intense scrutiny. Around the world, countries are grappling with economic downturns, while regulatory actions from the SEC target leading crypto platforms to put a halt fiat deposits.

Additionally, the XRP lawsuit is reaching its conclusion, exchanges in the US are being forced to shut down, and several nations are imposing strict restrictions on crypto banks. Moreover, accounting firms are showing reluctance to collaborate with crypto startups, exchanges are rapidly delisting tokens, and the Federal Reserve is gearing up to launch their own CBDC known as "Fed Now," which aims to rival PayPal.

All eyes are on these developments, as the crypto industry navigates through challenging circumstances.

Our perspective? The SEC and the Fed appear to be employing a strategy similar to China's prior to the introduction of their own CBDCs. They first implemented a ban on cryptocurrency usage and then introduced their CBDC.

Interestingly, after two years, Hong Kong SAR is now embracing Bitcoin and other crypto assets—assets that the US currently considers securities and illegal to trade.

Hong Kong embraces crypto even as debate rages on what it is...

China banned cryptocurrency trading in 2021 and Hong Kong turned frosty on the industry as a result, even though it was home to several early cryptocurrency businesses, including the now-bankrupt FTX, more can be read about the defeat of the exchange here.

It is not implausible to anticipate a similar sequence of events unfolding at present. This sequence of negative occurrences may persist for the foreseeable future.

At Flooz, our hope is that these developments will ultimately lead to greater clarity within the industry, with a unified rulebook for everyone, particularly in the United States.

XRP-friendly lawyers argue that a favorable Ripple outcome could “undermine the entire basis” for the SEC’s case against both Coinbase and Binance, explore more here.

Is it fair to say our first bear market is here? Let us know via Twitter!

As a result, we’ve seen Bitcoin under $20K and over $30K this year and now we are currently in between, waiting patiently on its next move.

As general faith in the market turns, everyone must be wondering if BTC is a good bet, here’s a little insight into what we might see next 👇

Whatever happens next, remember to have a plan and do your due diligence where possible.

✈️ Japanese NFT market taking off

Japan's largest airline group holding company, All Nippon Airways (ANA), is taking flight into the world of non-fungible tokens (NFTs) with a marketplace that's ready to fly.

In a dazzling move that merges the realms of aviation and blockchain, ANA has unveiled the ANA GranWhale NFT Marketplace.

This digital wonderland offers a captivating collection of aviation photography, digital collectibles, and more, all powered by the Ethereum blockchain. It's time to fasten your seatbelts and witness the future of NFTs!

ANA has partnered with renowned aviation photographer Luke Ozawa, who has spent an impressive half-century immortalising planes through his lens. His extraordinary work takes centre stage as the inaugural NFT collection on the marketplace.

Prepare to be amazed as you explore the captivating world of aviation through the lens of a true artist.

ANA NEO, the subsidiary of ANA dedicated to crafting immersive digital experiences within the ANA ecosystem, spearheads this groundbreaking initiative.

With the launch of the ANA GranWhale NFT Marketplace, they are paving the way for new connections with customers and revolutionizing the aviation industry through the power of NFTs. Prepare to embark on a journey like no other!

Alongside Luke Ozawa's remarkable photographs, you'll find two stunning digital 3D airplanes, including a customized Boeing 787 that took flight in 2011. Additionally, dive into the enchanting world of Airbits, a generative art collection featuring pixelated airline pilots. Let your imagination take flight!

ANA Holdings, a trailblazer in the aviation industry, isn't stopping at NFTs. They are soaring into the metaverse with ANA Gran Whale, a remarkable metaverse travel experience. Passengers' flight histories will be seamlessly integrated into their digital avatars, adding a touch of magic to their virtual adventures.

Now that’s dope!

ANA is not alone in their crypto-infused endeavours. They join a growing list of airlines embracing the power of blockchain and NFTs.

Earlier this year, a low-cost Argentinian airline made waves by partnering with a pioneering NFT ticketing company. Together, they offer e-tickets as NFTs on the Algorand blockchain. It's an exciting time to witness the convergence of aviation and crypto innovation!

As ANA pioneers the fusion of aviation and blockchain through their GranWhale NFT Marketplace, we can't help but feel the adoption is growing.

Fasten your seatbelts and get ready for a thrilling ride into the digital skies of NFTs.

🚨 May-day for rug pulls

According to a thrilling report from security firm De.Fi, the cryptocurrency market encountered a turbulent month in May. We witnessed scams and hacking incidents that caused a collective loss of over $54 million!

But fear not, my brave hodlers, there's a silver lining! Compared to April's losses of $101.5 million, it seems our community is getting smarter about security.

Funds lost & recovered May 2023

January was the best month so far this year, but since, it has increased significantly as seen above. There is a massive positive that May was the best month since the start of the year, so a good sign for sure.

However, the concerning part is that only in March ($1.5M) and April ($2.3M) was there any recovered funds. Now, let's delve into the highlights of this captivating saga. Prepare for some heart-wrenching losses. Fintoch, the unfortunate protagonist, experienced the largest blow, losing a staggering $31.7 million due to a smart contract exploit.

Meanwhile, Jimbo Protocol on Arbitrum fell victim to a rugpull, bidding farewell to $7.5 million. And poor Deus Finance on BNB had $6.2 million vanish in a smart contract exploit. Cue the dramatic music!

But wait, there's more drama to unpack!

Tornado Cash, Mother, WSB Coin, Linda Yaccarino, Block Forest, SNOOKER, and land all made their mark in this crypto tale, with losses ranging from $145,000 to $733,000. It's like a crypto soap opera, with twists and turns at every corner!

Funds Lost by Chain May 2023

As you can see above, Binance chain was the heaviest hit ($37.1M), with Arbitrum coming in second ($10.6M) and finally Ethereum third ($2.1M).

The reigning champions of mischief, the rug pulls, stole the show with a stunning twelve cases and losses totalling an eye-watering $37 million. Not far behind, exploits made their presence known in nine cases, resulting in losses of $8.8 million. And let's not forget about flash loan Attacks, slyly creeping in with five cases, inflicting significant losses of $8.9 million. They sure know how to make an entrance!

Amidst the chaos, governance tokens emerged as the primary target, enduring a staggering 19 cases and losses totalling $3.3 million. Decentralized exchanges (DEX) faced three cases, resulting in losses of $4 million.

But the real shocker? Stablecoins took the biggest hit, losing a whopping $6.2 million in a single case. It's like a wild crypto rodeo, folks!

Thankfully, other categories such as yield aggregators, gaming and Metaverse applications, NFTs, and centralized crypto platforms emerged unscathed. Borrowing and lending protocols also remained untarnished.

Some interesting data for sure! Also a big reminder of the dangers when navigating the crypto space. So always do your due diligence, friends.

🤯 Trading volume hits 4 year low

Trading volumes on centralized exchanges have taken a nosedive, plummeting to their lowest levels in over four years. The reason? Well, it seems like the regulators in the United States have been cracking down on the crypto world, causing quite a stir.

According to a recent report from the brilliant minds at CCData, spot and derivatives trading volume in May suffered a 15.7% decline compared to the previous month. And guess what? This marks the second consecutive month of dwindling crypto trading activity. Yikes! Now, before you start worrying too much, keep in mind that this data only covers up until the end of May. So, we can't fully gauge the impact of the recent SEC lawsuits against big players like Coinbase and Binance.

Speaking of Binance, they seem to be feeling the heat more than others. They experienced a significant decline in trading volumes, surrendering even more of their market share. In May, their total market share dropped to a mere 43%, down from a peak of 57% back in February.

The experts at CCData attribute this decline to Binance's decision to remove zero-fee trading for USDT pairs. But hey, let's not forget that increased regulatory scrutiny from the U.S. is also squeezing them tight. It's like being caught between a rock and a hard blockchain!

While Binance laments their loss, other crypto exchanges are reaping the rewards. Bullish, ByBit, and BitMEX are celebrating as they each gained more than 1% in market share between March and May. The saying "one exchange's loss is another's gain" has never been truer!

But wait, there's more!

The SEC recently decided to sue Binance and its CEO, Changpeng Zhao, for allegedly failing to register as a securities exchange and offering unregistered securities. Talk about legal fireworks! Within just 24 hours of the news breaking, over $778 million was withdrawn from Binance. Scary stuff, right?

The aftermath of the SEC lawsuit brought about an unexpected twist. The top three decentralized exchanges (DEX) experienced a mind-boggling 444% surge in trading volume within just 48 hours.

Talk about a swift response to the chaos! It seems like the crypto community is always ready for action.

Now, here's an interesting twist… while overall trading volumes have been waning (mainly in spot trading), the market share of derivatives trading on centralized exchanges has actually increased.

Derivatives now represent a whopping 79.5% of the entire crypto market. That's a 1.2% rise from April. So, it's not all doom and gloom in the derivatives department!

It is definitely getting scary and with so much unknown still, it is a good time to remind you not to keep your assets on exchanges. Not your keys, not your coins!

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