Token Chronicle - Week 1 August 2024

Top cryptos

Meme of the week

Quick bites:

• Futu Securities, the largest online broker in Hong Kong, has launched Bitcoin and crypto trading. The platform has 22 million customers.

• Bybit is ceasing its services in France.

• Morgan Stanley has informed its wealth management advisors that they can now offer BTC ETFs.

• This weekend, the market recorded a loss of $2.9 trillion due to fears of a global recession (plus tensions between Israel and Iran/Lebanon).

• The bill for the US Strategic Bitcoin Reserve has been officially introduced.

• Donald Trump declares that crypto is a modern form of currency; "If we don't do it, China will."

• Upbit, the largest crypto exchange platform in South Korea, has announced the listing of Pendle.

• According to Reuters, the Bank of Japan will hold an emergency meeting to discuss international financial markets.

• Starting August 7, Morgan Stanley's 15,000 financial advisors will be able to offer BTC ETFs to their clients.

• Metaplanet announces raising approximately $69.55 million to buy more BTC.

• Diego Oliva, the CEO of Starknet Foundation, resigns.

• Grayscale launches two new crypto investment funds for SUI and TAO.

• Ripple is fined $125 million for its sales of XRP to institutional investors, but transactions on crypto exchanges are deemed legal. The SEC had initially demanded $2 billion in the case.

• The Brazilian SEC approves the launch of the world's first Solana Spot ETF.

Market update: Major panic on global financial markets from Friday to Monday with a crash that also impacted crypto (with BTC going down to $48K before returning to $55K afterwards). This resulted from a global panic about an upcoming recession fueled by the following elements: disappointing US employment statistics, worse-than-expected quarterly results for tech stocks, an increase in interest rates in Japan (leading to a gain in the yen’s value against the dollar, which is largely justified given the recent weakness of the yen), a prolonged wait for a US rate cut, and the Middle East conflict between Israel and Iran/Lebanon. However, there are no really bearish fundamentals in the crypto market (nor much in the stock market either). There are currently no major indicators showing an end to the bull market. Bitcoin continues its consolidation between $54,000 and $69,000. As long as it doesn’t fall below this range, there’s no reason to worry. The number of BTC in ETFs has never been higher. As for Ethereum, there is a lot of movement related to investors who were stuck in the Grayscale Trust, so we will need to wait a few more weeks before determining the trend. However, this has led to major liquidations in the crypto market (over a billion dollars in 24 hours). All traditional markets were affected: US, EU, and especially in Asia with Japan being the most impacted (but recovered well on Tuesday).

Main points this week:

• BTC Reserve Bill in the US: The US BTC reserve project is taking shape with a proposed bill. It aims to reduce the national debt of $35 trillion by accumulating 1 million BTC over 5 years. This is also a topic of discussion in Hong Kong; if such a measure is taken in the US, many countries are expected to follow (the US is still seen as a leader/innovator in many areas).

• Bybit Exits French Market: The crypto exchange Bybit is closing its doors to French users. Bybit announced that its services will soon no longer be available to French investors. The platform did not specify the exact reasons behind this decision, other than "recent regulatory developments by the French regulator." However, to put things in context, Bybit has been on the blacklist of the Autorité des marchés financiers (AMF) since October 2022.

• Sell Pressure from Jump Crypto: Heavy selling pressure from Jump Crypto in ETH and USDT, which could indicate a potential liquidation.

• Genesis Creditor Repayments: Billions of dollars in crypto distributed as Genesis repays its creditors. After filing for bankruptcy in January 2023, the crypto lending company Genesis has begun repaying its creditors. However, these repayments will only cover an average of 64% of the amount owed, mostly in cryptocurrencies.

• Google Antitrust Lawsuit: Google (GOOG) loses a historic antitrust lawsuit in the US, causing its stock to plummet. Google was accused of violating competition laws by forcing service providers to install its applications by default, paying huge sums ($26 billion last year alone) to app publishers, phone manufacturers, and telecom companies. The fine amount is not yet known but could be substantial given the sums involved. This decision is symbolic, showing that tech giants with certain hegemony, like Meta and Nvidia, could also be challenged.

• Kamala Harris Adds Crypto Experts to Campaign: Kamala Harris integrates crypto experts into her campaign team to counter Donald Trump. In an effort to improve the Democratic Party's image in the crypto ecosystem, Harris has enlisted two cryptocurrency specialists, David Plouffe and Brian Nelson. The goal is to prevent sector players from rallying behind her rival Donald Trump, who presents himself as the "pro-crypto" candidate.

• Nasdaq and BlackRock Push for Ethereum ETF Options: Ethereum spot ETF: Nasdaq and BlackRock join forces to advocate for options trading. Following the launch of several Ethereum spot ETFs in late July, Nasdaq Exchange has partnered with asset manager BlackRock to request the Securities and Exchange Commission (SEC) to open options trading on these ETFs. This initiative aims to democratize investment in this cryptocurrency. The request comes just two weeks after the SEC approved 9 Ethereum spot ETFs in the US. In comparison, the SEC has not yet approved options trading for Bitcoin spot ETFs launched earlier this year. The regulator is now examining the proposal, with a final decision expected by April 9, 2025.

Discover a tool: Let’s talk about a token analysis tool that I find quite nice and easy to use/understand: Bubblemaps (Bubblemaps | Home)

Bubblemaps is a pioneering supply auditing tool for DeFi tokens and NFTs that simplifies on-chain data through unique visual representations (bubbles basically). This tool helps users investigate wallet connections, check historical data, and anticipate potential risks such as rug pulls (when the project owner leaves with the money).

Key Features:

• Visualization of Holders: Bubblemaps enables users to see the distribution of major token holders through colorful bubble visuals, making complex data easier to understand.

• Interconnected Wallets: The tool reveals how wallets are interconnected, allowing users to identify clusters of wallets that hold significant portions of the supply. This can highlight centralization risks and potential manipulations.

• Transaction Tracking: Users can track when tokens were acquired and sold by specific wallets, which helps in anticipating potential market movements and avoiding scams.

• Historical Data Analysis: Bubblemaps allows users to view historical data, tracking changes in wallet holdings over time. This feature is particularly useful for following the actions of founders or large investors.

Use Cases:

1. Detecting Manipulations:

   • By examining clusters of interconnected wallets, users can identify suspicious activities such as wash trading or coordinated dumping, which are common tactics to inflate token prices or manipulate markets.

2. Evaluating Decentralization:

   • The tool helps assess how decentralized a token’s ownership is, providing insights into governance risks. For instance, it can show if a single entity controls enough tokens to influence decisions in supposedly decentralized protocols.

3. Due Diligence:

   • Investors can use Bubblemaps for due diligence, ensuring that a significant portion of a token’s supply is not concentrated in a few hands, which could pose a risk of sudden price drops if those holders decide to sell.

Partnerships and Integrations: Bubblemaps is integrated with various platforms and ecosystems, including OpenSea, Solana, Fantom, and BNB Chain. These partnerships enhance the tool's utility across different blockchain networks and NFT marketplaces, making it a versatile choice for investors and analysts in the crypto space.

Conclusion: Bubblemaps stands out as an essential tool for anyone involved in DeFi or NFT investments. Its ability to visualize complex blockchain data and uncover hidden connections between wallets makes it a powerful resource for ensuring transparency and making informed investment decisions.

Let’s talk about: The Cross-chain interoperability protocol (CCIP) from Chainlink. As I went to a Chainlink Labs/AWS event last Friday in Hong Kong, we discussed that project and It reminds me how essential this will be for the future of blockchain and RWA.

Chainlink CCIP is a revolutionary protocol designed to enable seamless, trustless data and value transfer across various blockchain networks. It aims to simplify the process of connecting different blockchains, providing a unified interface for decentralized applications (dApps) and web3 entrepreneurs to meet all their cross-chain needs. Basically, it will enable to connect the private blockchains of different financial institutions and then enables the tokenization of their financial products (cutting the intermediaries, making financial processes quicker and cheaper).

How It Works:

1. Unified Interface:

   • CCIP provides a single, easy-to-use interface through which users can transfer data, tokens, or both across multiple blockchain networks. This eliminates the complexity of interacting with different protocols and standards specific to each blockchain.

2. Data and Token Transfer:

   • The protocol supports both data and token transfers, enabling users to send information or assets from one blockchain to another without compromising security or efficiency.

3. Security-First Design:

   • Built with a security-first mindset, CCIP ensures that all cross-chain transactions are secure and trustless. This means that users do not need to rely on intermediaries or centralized entities to facilitate their transfers, reducing the risk of fraud or manipulation.

Revolutionary Impact on Blockchain and Real-World Assets (RWA):

1. Interoperability:

   • CCIP addresses one of the major challenges in the blockchain space: interoperability. By enabling different blockchains to communicate and transact with each other, it enhances the overall utility and scalability of blockchain technology.

2. Integration of Real-World Assets (RWA):

   • With CCIP, real-world assets can be tokenized and transferred across different blockchains seamlessly. This opens up new possibilities for decentralized finance (DeFi), where assets like real estate, commodities, and other physical goods can be represented digitally and traded on blockchain networks.

3. Enhanced Efficiency:

   • The protocol reduces the friction and inefficiencies associated with cross-chain transactions. This streamlined process can lead to faster, more cost-effective transfers, making blockchain technology more accessible and practical for a wider range of applications.

4. Trustless Ecosystem:

   • By ensuring that all transfers are trustless, CCIP enhances the security and reliability of blockchain networks. Users can confidently engage in cross-chain transactions knowing that their data and assets are protected by robust security measures.

Future Prospects:

• DeFi Expansion:

  • CCIP is expected to play a crucial role in the expansion of DeFi by enabling a more interconnected ecosystem where different financial products and services can interact seamlessly across chains.

• Global Adoption:

  • As blockchain technology continues to gain traction globally, CCIP's ability to facilitate cross-chain transactions will be instrumental in driving widespread adoption and integration of blockchain solutions in various industries.

For more information, please consult: Cross-Chain Interoperability Protocol (CCIP) | Chainlink

Join me on Twitter: @Token_Chronicle

Disclaimer: The information disclosed here does not constitute an investment advice ; it is for informational purposes only and does not constitute investment advice. You should do your own research while investing in crypto and only invest money you are ready to lose.