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The Daily: Elon Musk's Dogecoin class action lawsuit win, BlackRock's first spot Bitcoin ETF net outflows since May and more

The Daily: Elon Musk's Dogecoin class action lawsuit win, BlackRock's first spot Bitcoin ETF net outflows since May and more

The BlockThe Block2024/08/30 16:34
By:James Hunt

Elon Musk wins the dismissal of a class action lawsuit, which alleged his comments manipulated the Dogecoin market.BlackRock’s IBIT spot Bitcoin ETF logs its first daily net outflows since May.Gnosis Chain community members evaluate their gas token choices amid MakerDAO’s pivot to Sky.The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

It's Friday! In today's newsletter, Elon Musk wins a Dogecoin class action lawsuit, BlackRock's IBIT logs its first daily net outflows since May, Gnosis Chain members reevaluate their gas token choices amid MakerDAO's pivot and more.

Meanwhile, Securitize CEO Carlos Domingo predicts tokenized treasuries will dethrone stablecoins as the institutional collateral of choice on the latest episode of The Scoop podcast.

Let's get started.

Elon Musk cleared in Dogecoin class action lawsuit

Elon Musk and his businesses Tesla and SpaceX won the dismissal of a class action lawsuit on Thursday, which alleged Musk's comments manipulated the Dogecoin market.

  • U.S. District Judge Alvin Hellerstein dismissed the lawsuit with prejudice, meaning it was permanently rejected.
  • In June 2022, investors sued Musk, Tesla and SpaceX, claiming their Dogecoin-related activities had defrauded them.
  • The lawsuit also alleged that Musk's social media posts about becoming Dogecoin's CEO and his suggestion of putting a Dogecoin on a SpaceX flight to the moon were misleading.
  • "These statements are aspirational and puffery, not factual and susceptible to being falsified," Judge Hellerstein wrote in the order, adding that no reasonable investor could rely upon them.
  • The judge found no clear basis for the claims of market manipulation or insider trading by Musk or his companies.
  • Dogecoin has traded flat over the past 24 hours at around $0.10, according to The Block's DOGE Price Page , with a market cap of $14.8 billion.

BlackRock's IBIT logs first daily net outflows since May

BlackRock's IBIT, the largest spot Bitcoin ETF with $21.2 billion in AUM, witnessed its first negative flows since May 1 , generating $13.5 million in net outflows on Thursday.

  • U.S. spot Bitcoin ETFs experienced $71.8 million in combined net outflows for the day, continuing a three-day negative streak totaling more than $300 million.
  • Grayscale's GBTC continued its outflow streak with $22.7 million leaving the fund on Thursday, while Fidelity's FBTC, Bitwise's BITB and Valkyrie's BRRR also saw significant outflows.
  • Ark and 21Shares' ARKB was the only spot Bitcoin ETF to record net inflows, adding $5.4 million.
  • Total net inflows since the funds began trading in January currently stand at $17.8 billion.
  • Meanwhile, the U.S. spot Ethereum ETFs saw $1.7 million in net outflows on Thursday after reporting modest positive flows the day before.
  • The Ethereum funds have witnessed $477.4 million in total net outflows since launching last month.

Gnosis Chain community members reevaluate gas token choices amid MakerDAO pivot

Gnosis Chain community members are reconsidering its gas token options after MakerDAO's rebrand to Sky and its planned introduction of the upgradeable USDS stablecoin as an optional alternative to DAI.

  • Gnosis operates a sidechain that currently uses a bridged version of DAI, called xDAI, to cover gas fees on the network.
  • Concerns have been raised over USDS's potential ability to freeze wallet addresses, contradicting Gnosis' commitment to decentralization.
  • However, MakerDAO previously clarified that the current version of DAI will continue to exist for the "foreseeable future."
  • Alternatives being discussed by Gnosis Chain members include adopting decentralized stablecoins like RAI and LUSD or Gnosis' native token, GNO, for gas fees.
  • Discussions are still in the preliminary stages, and no formal proposals have yet been made.

SafeDAO eyes turning on revenue streams from ecosystem integrations

SafeDAO contributors have proposed implementing a licensing fee model for protocols integrated into the Safe Wallet.

  • SafeDAO governs smart account infrastructure that secures nearly $60 billion in assets, offering tools for managing crypto holdings across Ethereum-based apps.
  • The proposal, initiated by the Safe Ecosystem Foundation, is SafeDAO's first move toward monetizing its ecosystem to generate dedicated revenue streams.
  • The initial focus would be on monetizing the swaps feature within Safe Wallet, with projected annual revenues of $2.5 million through licensing fees.

Bitcoin volatility likely to ease as market anticipates Fed rate cuts

QCP Capital analysts predict a decline in bitcoin price volatility as market participants prepare for the potential start of a rate-cutting cycle by the U.S. Federal Reserve next month.

  • Upcoming U.S. economic data, including U.S. nonfarm payrolls, are expected to provide greater clarity on the likelihood and scale of rate cuts at the next Federal Open Market Committee meeting on Sept. 18, the analysts said.
  • However, market participants are hedging against potential near-term downside risks for both bitcoin and ether, as indicated by the skew toward puts in derivatives markets, they added.

Looking ahead to next week

  • U.S. markets are closed on Monday for Labor Day. U.S. jobless claims data will be released on Thursday. Eurozone GDP and U.S. nonfarm payroll figures are due on Friday.
  • Korea Blockchain Week, AI Crypto Summit and ETH Warsaw 2024 all get underway over the next seven days.

 

Never miss a beat with  The Block's daily digest  of the most influential events happening across the digital asset ecosystem.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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