Daily News | US Department of Justice Responds to CZ Incident; Blast Mode Was Questioned by VC Institutions; DYDX, 1INCH and Other Tokens See Large Unlocking This Week

2023-11-27, 04:06

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## Crypto Daily Digest: The US Department of Justice Responds to the CZ Incident; The Blast model was questioned by VC institutions
Firstly, let's keep an eye on the progress of the CZ incident. On November 26th, the US Department of Justice responded to the CZ defense team's statement in the latest court documents that they face a "brief" sentence and no motive to escape. The government has clearly stated that according to criminal guidelines, CZ can be sentenced to a maximum of 18 months in prison, and prosecutors can seek a maximum statutory sentence of 10 years.

The document mentions that although CZ has family connections and has not been imprisoned, the punishment he faces will have a significant impact on him. Based on this, the US government believes that its proposed measures to restrict CZ travel during confession and sentencing are reasonable and necessary, aimed at ensuring that CZ can assume legal responsibility within the US and reducing its potential risk of escape.

The Layer 2 Network Blast contract address launched by Pacman, the founder of BLUR, the most popular NFT platform recently, currently holds a total asset value of over $500 million.

Among them, ETH worth $439 million was deposited into the Lido protocol, and $61.81 million was deposited into the Maker protocol. And with this kind of data, this pattern, and the growing questioning voices in the current community, it is clear that projects with CX patterns pose significant unknown risks until they are actually implemented. Even Paradigm, a well-known VC firm that invested in Blast, cannot sit still.

Dan Robinson, Partner and Research Director of Paradigm, recently stated on social media that Paradigm disagrees with Blast's decision to activate its bridge before the Layer 2 network and ban withdrawals for three months, and believes that this has brought bad omens to other projects, and that most sales activities will reduce the efficiency of serious teams.

Robinson stated that Paradigm has expressed their concerns to the Blast team, but "there are still many points of disagreement," but Paradigm will take its responsibility in the ecosystem seriously.

The X account of the founder of another popular SocialFi project, Friend.tech, cannot be displayed. According to community analysis, the X account @0xRacerAlt of Friend.tech founder Racer is suspected to have been canceled and is currently showing as "non-existent." According to DefiLlama data, Friend.tech TVL fell to $33.2 million, a drop of over 36% from its historical high of $52.04 million on October 2.

According to News. <a href="/ru/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, after soaring to over $18 per transaction twice last week, the transaction cost of Bitcoin has decreased. As of November 24, the average cost per transaction is approximately $5.89, and the median cost per transfer is $2.86. In October, miners received $885 million in rewards and expenses.

As of November 25, 2023, miners have earned a total of $945 million, including transaction fees and subsidies. As of 4:00 PM Eastern Time on Saturday, excluding subsidies, miners have accumulated $124.98 million solely from expenses. This number is close to the 2023 transaction fee revenue record of $125.92 million set in May.

According to Token Unlocks data, 9 projects will undergo token unlocking this week, with a total release value of over $600 million. Among them:

Dydx (DYDX) will unlock approximately 152 million tokens worth approximately $520 million in the next seven days, accounting for 84.41% of the circulating supply;

Sui (SUI) will unlock approximately 82.42 million tokens worth approximately $52.34 million in the next seven days, accounting for 8.54% of the circulating supply;

At 16:00 (UTC) on November 30th, <a href="/ru/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a> (OP) will unlock approximately 24.16 million tokens worth approximately $43.73 million, accounting for 2.74% of the circulating supply;

At 12:00 (UTC) on December 1st, <a href="/ru/price/1inch-1inch" target="_blank" class="blog_inner_link">1inch</a> (1INCH) will unlock approximately 98.74 million tokens worth approximately $35.03 million, accounting for 9.48% of the circulating supply;

At 14:00 (UTC) on November 27th, Yield Guild Games (YGG) will unlock approximately 16.69 million tokens worth approximately $6.27 million, accounting for 5.48% of the circulating supply;

At 0:00 am (UTC) on November 29th, Nym (NYM) will unlock approximately 25 million tokens worth approximately $3.91 million, accounting for 4.1% of the circulating supply;

At 0:00 am (UTC) on November 28th, SingularityNET (AGIC) will unlock approximately 9.39 million tokens worth approximately $2.9 million, accounting for 0.76% of the circulating supply;

At 7:00 (UTC) on December 1st, Acala (ACA) will unlock approximately 27.43 million tokens worth approximately $1.62 million, accounting for 3.31% of the circulating supply;

At 12:00 (UTC) on December 3rd, Tornado Cash (<a href="/ru/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>) will unlock approximately 175,000 tokens worth approximately $665,000, accounting for 4.62% of the circulating supply.

## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/1701066789BTC.png)
The weekly trend continues with six consecutive weeks of gains, showing signs of a potential slowdown. Within the converging triangle pattern, two possible scenarios are outlined: a breakout above $37,980 with targets at $40,500 and $42,015, or a bearish move breaking the uptrend, with caution around the $40,000 level to avoid disrupting the market structure.

### ETH
![](https://gimg2.gateimg.com/image/article/1701066809ETH.png)
The 4-hour chart breaks above a significant downtrend, forming a short-term bottoming pattern. If bearish structures hold, a retest of $1,857 is possible. Aggressive bearish positions should be cautious near resistance. Bullish trend watchers await a breakthrough of resistance, aiming for $2,135, with a potential target at $2,381.

### KP3R
![](https://gimg2.gateimg.com/image/article/1701066828KP3.png)
Leading DeFi protocol KP3R has dropped 96.45% from its all-time high of $2,065, with a significant support level at $40.05. The departure of the project founder aligns with market signals of potential turnover. This week is expected to continue retracing to $64.05 and $52.98, with a long-term strategy aiming for a return to previous highs.

## Macro: Expectations of interest rate cuts may further boost gold prices; Focus on core PCE data for this Thursday
During the shortened trading week due to the Thanksgiving holiday in the United States, investors remain optimistic that the Federal Reserve will not further raise interest rates and may begin cutting rates in the first half of 2024.

With the expansion of market breadth, all three major US stock indices have risen for the fourth consecutive week and are expected to achieve their best monthly performance in over a year. Gold closed above the critical $2,000 mark, marking the second consecutive week of gains.

On the other hand, due to the release of some hostages in the Gaza Strip reducing the geopolitical risk premium, oil prices fell on Friday. However, as the OPEC+meeting decided on the 2024 production reduction protocol, oil prices still saw their first weekly increase in over a month.

In the coming week, with the upcoming key US inflation report and OPEC+meeting, it is expected that market volatility will intensify again next week.

The final speeches of several Federal Reserve officials, including Powell, before the silent period will become the focus of market attention. The latest meeting minutes of the Federal Reserve shows that policymakers collectively believe that maintaining interest rates unchanged is appropriate, reaffirming their caution and readiness to further tighten policies in the event of unexpected upward inflation.

The market's response to this has been lackluster, almost certain that the Federal Reserve has ended its interest rate hike cycle, but officials are unwilling to explicitly state this before they are confident that inflation will not rebound. The swap contracts linked to the Federal Reserve's meeting period continue to indicate that the possibility of further interest rate hikes by the Federal Reserve is close to zero. According to the FedWatch tool of the Chicago Mercantile Exchange, the likelihood of the Federal Reserve cutting interest rates before May next year has slightly increased from about 57% before the meeting minutes were released to about 64%.

Phillip Streible, Chief Market Strategist at Blue Line Futures, stated that due to weak data released this week, this should lead the Federal Reserve to shift towards a more dovish stance, leading to a deterioration in the US dollar index's performance and potentially becoming a positive factor for gold prices. The German commercial bank wrote in a report that the rise in gold prices is due to hopes that the Federal Reserve will not further raise interest rates, as the latest economic data is quite disappointing. Meanwhile, the bank believes that the current upward potential of gold seems limited, as its economists expect the first interest rate cut to be implemented in the middle of next year, which means that only then can gold continue to remain above $2,000.

Next week, there may be both good and bad news for the US economic data. The real estate market will become the focus at the beginning of the week. On Wednesday, the expected annualized GDP growth rate for the third quarter is expected to slightly increase from 4.9% to 5.0%. The strong growth of the US economy in the third quarter is not surprising, as retail sales were strong, unemployment rates were low, and wage growth was strong during this period. The second correction of this data is not expected to trigger a strong reaction in the market. The November ISM manufacturing PM released on Friday is expected to slightly increase, but will still remain within the contraction range.

The real highlight is a set of data on Thursday, including the core PCE price index and personal income and expenditure. The PCE data is a favored inflation indicator by the Federal Reserve, which will help explain the extent of the anti-inflation process and validate the pricing of interest rate cuts in the market. The overall year-on-year growth rate of PCE in the United States in October is expected to slow down from 3.4% to 3.1%, while the core PCE is expected to slow down from 3.7% to 3.5%.

From a month-on-month perspective, it is expected that the overall and core PCE growth rates will be 0.1% and 0.2% respectively. Any further cooling of price pressure will make it increasingly difficult for the Federal Reserve to control market expectations for interest rate cuts. In addition, personal income and expenses are expected to slow down in October, with a month-on-month growth of only 0.2%, indicating that consumers are tightening their belts at the beginning of the new quarter after spending heavily in the summer.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>