Cryptocurrency prices seem to be improving as the index pushes above the 50-day line. Bitcoin is up nearly 13% this week and is trading above $23,000 for the first time since mid-June. Ethereum recovered the $1,600 level, which it also lost in the middle of last month. But NFTs didn’t see the same boost, and market volume was on track for its worst month in a year. In other crypto news, the House Financial Services Committee plans to implement new stablecoin rules next week. and Coinbase (coins) back to the SEC regarding an insider trading investigation.
Crypto News: NFT Trading Volume
It seems that people are tired of Bored Monkeys. Data collected from The Block shows monthly NFT market volume at its lowest level since last July. NFT trading volume stood at $368.98 million so far this month, just slightly higher than last year’s $366.75 million. Market volume fell 93% from a January peak of $16.57 billion to $1.04 billion in June. About 74% of the decline occurred between May and June.
Even NFT scammers seem to have lost interest. The LooksRare market is famous for its wash trading, where individuals trade among themselves to artificially inflate asset prices and volumes. LooksRare volume fell from $11.1 billion in January to $214.34 million in June. So far, LooksRare’s volume is $89.48 million for the month.
Excluding LooksRare, the total NFT market volume was $279.5 million through July. OpenSea is the largest market and has a sales volume of $228.96 million. That’s down 67% from $696.73 million last month and well below May’s trading volume of $2.6 billion.
And Bosen Ape Yacht Club doesn’t get the same hype. It is the third highest collection of NFTs with a total trading volume of $2.3 billion. But it fell to $38.2 million in July from a peak of $346.7 million in January.
The House Financial Services Committee aims to advance the stablecoin bill as soon as July 27, according to a report from Bloomberg. The current draft bill requires issuers to maintain 100% reserves and stablecoins bar loans to customers. This will cover bank and non-bank issuers. And the Federal Reserve will license and insure nonbank stablecoin issuers. The bill will also set new rules on what assets can be used as pegs to maintain value and prevent commercial companies from issuing coins. Finally, the proposed decision would change the asset’s name to “payment stablecoin.”
Coinbase Blasts SEC
In crypto news related to the Securities and Exchange Commission, ex Coinbase product manager was charged with wire fraud on Thursday in a $1.5 million crypto insider trading scheme. Prosecutors said Ishan Wahi, who worked on the asset listing team, advised his brother and a friend about cryptocurrencies that Coinbase would add. The group traded 25 different tokens before at least 14 public listing announcements since late summer, and hid profits in various anonymous wallets, authorities said.
The SEC filed a civil complaint against them, arguing that nine cryptocurrencies are traded as securities. Seven of those nine are listed on Coinbase. Chief Legal Officer Paul Grewal hit back at the SEC in a blog post Thursday.
“Coinbase does not list securities on its platform. Period.” he wrote. Grewal said there is a rigorous review process to ensure securities are not listed, which the SEC assesses.
The company also filed a petition for rulemaking with the SEC Thursday to provide a clear regulatory framework for digital asset securities.
Last month, authorities charged a former OpenSea employee with using insider information to profit from NFTs.
Follow Harrison Miller for more news and stock updates on Twitter @IBD_Harrison.
You may also like: